European Construction Output Declined for Fourth Month
Domestic housing markets still weak.
Eurozone officials say they support strong dollar
I’m sure they do- they are hoping to export their way out of their recession.
EU Ministers Agree to Start Cutting Deficits in 2011
Back to their old formula- tight fiscal to keep deflationary forces at work on labor costs, to support exports.
Except that formula requires the govt to sell its currency and buy dollars, like Germany and the rest used to do,
to keep relative costs low enough to support exports.
ECB’s Bini Smaghi Says Doesn’t See ‘Any Risk’ of Inflation
Right, the deflationary forces are so severe the ECB actually hit its inflation target for the first time since inception.
German September Producer Prices Decline on Cheaper Energy
It’s not a weak dollar, it’s a strong euro as the eurozone continues to deflate.
Bundesbank Says Germany Continued Recovery in Third Quarter
Like the US, gdp stopped falling while increased productivity keeps employment from increasing.
Merkel in stand-off over tax cuts
They need to cut taxes, increase spending, and at the same time cut the deficit.
Haven’t figured out how to do that yet.
Germany Mulls Fund to Ease Labor, Health Budget
France’s Woerth May Roll Back Tax Deductions
They haven’t figured out how to do it either.
German Bonds Advance as Stock Declines Stoke Demand for Safety
Stock declines reduce chances of rate hikes
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