Eurozone strategy is in tatters after economic recovery ground to a halt across the region and France demanded a radical shift in policy, warning that austerity overkill is driving Europe into a depression.
Growth slumped to zero in the second quarter, with Germany contracting by 0.2pc and France once again stuck at zero. Italy is already in a triple-dip recession.
Yields on 10-year German Bunds fell below 1pc for the first time in history, beneath levels seen during the most extreme episodes of deflation in the 19th century.
h/t Adrian
Sounds to me like Frances finance minister is crossing his arms with a pouty lip , in protest of having to use the word no more often then his widow heart wants to awwww poor widow baby,now he is in the corner protesting this thing called economic reality.
Seems the little socialists get upset when they run out of other peoples money and they( the specific individual) who is faced with reality doesn’t like it one widow bit. He’s just mad that him and his socialist buddies snouts are getting pulled of the publics tit. Well……..SUCK IT UP BUTTERCUT!! You helped make the mess now you help clean it up!!!
How’s that transnational centrally controlled socialism working out fer ya EU?
You live on the same continent as Russia – you witnessed the abject failure of their statist socialist centrally-controlled demand economy – but you decide mimicking that failed model was a wise choice – well, sleep with the pig you let in the house and stop whining to the rest of the world about the predictable effects of your poor choices.
Prediction – the Euro will collapse and productive EU nations will find their own currency/productivity as a saving grace against the failed EU super state. EUs unproductive welfare states will fail with the Euro – wanna buy beach front property in Greece, Spain, Turkey for a few bucks?
may they reap the fruits of their irresponsible behaviour before we do. the governments of the world are working toward destroying the current economic system in their quest for a single currency and one world government.
Nothing to see here, nothing to worry about. Let’s elect the part time drama teacher, right ROC?
It is the classic tale of the ‘Emperor Has No Clothes”. Pretty much the entire political ruling class in Euroland has embraced credit as a stimulus to recovery. Progressives there lump all wealth as accessible for their ultimate use. Unfortunately for them their arithmetic will collapse as not all wealth is convertible and the value subject to rapid depreciation in the event of panic. I am quite sure those in power are at a loss on how to pull out of this dive. They do not want to accept responsibility for what they have done but more importantly do not know how to fix it without a prolonged recession/depression.
Abe economics in Japan is yielding nothing different. Japanese economy is tanking under more debt per capita than even Euroland. Every time the Chinese sneeze the Japanese go catatonic.
Back home in North America we limp along with a population who has maxed out their credit and with a POTUS who has no grasp of how things work. It always amazes me how the majority of progressives think that everything will work out in the end. It is only because of the USA’s credit history and their ability to innovate that a serious debt crisis has not manifested. In holier than tho Canada the debt per capita is not that much better than the USA. Fundamentally our economy is weaker than the Americans because of dependence on extracting resources. In a flat line or depressed world economy demand will shrink and Canadian debt will destroy many.
As Mauldin warns we do not know what ‘black swan’ will tip the balance but it will arrive sooner than later.
Again my well thought out response has been filtered away. I cannot be bothered to re-write.
What is happening in the EU is not unique to Euroland. It is happening all around the world. It is only a question of what tips the scale first.
You have to hand it to socialists. They keep trying. Always with the they will get it right this time.
Mark @ 9:02, exactly.
“austerity overkill is driving Europe into a depression”
Stuck on failed Keynesian ideas that government spending equals production, they will never recover.
Generations of parasites evolved into an intractable Kleptocracy.
Everything that could be stolen (Politely) has been taken, now the productive have quit and are hoarding, expect ever more blatant theft, ala Greece and Cyprus.
Now they are stealing from each other, parasite versus parasite.
Soon these predatory loons will become intolerable and the massacres will begin.
Medicine, dry good and ammo.
For all the claims of “austerity” there has been little of it. Only a socialist believes government spending creates an economy.
Right on cue, we have the European war machine gearing up in the traditional hot zones. Russians in the Crimea first, then Greece and Spain will have civil wars, AGAIN, then the Frogs will be running around trying to figure out who to surrender to. The Brits will remain self-absorbed and dumber than a bag of hammers until the last possible moment as usual. The only thing that remains unclear at this point is when the Germans will rediscover their love of marching in step.
Meanwhile we shall have a few pogroms here and there throughout Europe, because blaming the Jooooos!!! for everything is almost as popular in Europe as soccer.
This time I predict we will witness the added fun of Europe death-marching all the Mooselimbs to Turkey. It isn’t where they came from, but it is possible to walk there from Germany and France so that’s where they will all end up.
I’m pretty happy to be living on the opposite side of the Atlantic from it. I’ll vote for boots, beans and bullets to be deployed -here- in North America to keep the Russians honest, but not one penny for another Canadian Expeditionary Force.
Bring back the Avro Arrow.
Reality for German manufacturing success began when the Portugal; Ireland; Greece; Spain credit ran out. As the PIGS realized the Eurozone plan of massive loans for Tourism Development projects was oversold on its benefits.
Then North American off shore tourism did not happen as the baby boomers did not retire. This because the “Great Financial Recession” hit and scared the bejesus out of everyone. The marketing efforts to encourage stay-at-home-Americans to get Passports never started and all the long range Tourism planning tanked. Cruise ships; expensive resorts; refurbished and resurrected historical sites remain empty.
Overpriced German automobiles were not being purchased by the PIGS loan facilitating bureaucrats. The truth about the Climate Change/Global Warming/Carbon Reduction Scam derailed the Carbon Exchange Teat. The Oil Speculation add-on by the ever hungry for a new gouging tool major Trading Banks was forced to be closed by the Financial Great Recession. This put the German precision tooling industry into the overpriced category with the overpriced cars.
The PIGS high level bureaucrats were not about to wear the negative G.D.P position caused by spin of the Eurozone groupies. Germany was forced to retroactively finance a decade of overpriced products built by overpaid Socialism empowered workers.
Sadly the normally adroit American business sector have been handcuffed by the baby boomer financial greed and the inept Democratic Party Policies. This is also sad for Canada because for once we did not have the “what’s in it for us entitled to their entitlement Libranos” as the Government.
Europe is ripe for picking, but Putin’s Oligarchy and China’s meritorious bureaucracy will walk away with the prize. Cheers;