Article #2

This article was a bit harder to comprehend then the last one. I don't know if it's because I THINK I understand the last one but in reality I don't and have the wrong idea or something else. What I understood from the article is basically that we are in the midst "of an unprecedented global deflation". What I followed the most was Brazil's current economic crisis. It was something previously discussed in class that has to do with inflation and such. Brazil has an inflation rate of over 5%. Inflation can be a good thing a the short run because it stimulates the economy and encourages consumers to spend more which can clearly be seen in the charts presented. The charts visually show peaks of high spending in February of 2009 and May of 2011. In March of 2008 and March of 2011 there are huge peaks  of employment. But after 2011 both spending and employment plummet. The author also mention that the US is connected to Brazil by a "two-way highway of financial and trade flows that penetrated right into the heart of the US economy". That goes to say connections are very important and if one goes down, the other could be pulled with it. So reading about China and its description as a "freakishly unbalanced,  credit saturated, out-of-control economy" is not very reassuring.