Fears Rise in Europe Over Potential for Deflation - NYTimes.com

Fears Rise in Europe Over Potential for Deflation - NYTimes.com: "The problem was that, to buy the bonds, the bank had to expand the assets it held on its books. So to prove that it had not stooped to printing money, the bank promised to offset the bond purchases, which totaled 26.5 billion euros ($32.6 billion as of May 24, the most recent data available), by taking in a like amount in short-term deposits from banks. In effect, it siphoned off as much liquidity as it had added."