It’s just Germany. It’s just industry. The excuses pile up as long as the downturn. Over across the Atlantic the situation has only now become truly serious. The European part of this globally synchronized downturn is already two years long and just recently is it becoming too much for the catcalls to ignore. Central bankers are trying their best to, obviously, but the numbers just aren’t stacking up their way.
We’ve seen all this before, repeatedly. Part of the denial is about the nature of these things. The eurodollar’s squeeze is, at its root and most clearly at its beginning, a disinflationary pressure on industry.
It is pernicious in its own methodology, but also because it allows the official narrative this space for what sounds like a plausible rebuff.Read More »