Posted on 07/24/2014 8:12:12 PM PDT by Lorianne
Stagnation is automatically causing debt ratios to spiral upwards yet again across a large part of the currency bloc ___ Europe's economic recovery has stalled. The EMU policy elites took a fateful gamble that global growth alone would lift the eurozone off the reefs, without the need for serious monetary stimulus or a reflation package to ensure take-off velocity.
Their strategy has failed. The Bundesbank says German growth may have slumped to zero in the second quarter. French industrial output has fallen for three months in a row. French business surveys point to an outright contraction of GDP, with a high risk of a triple-dip recession.
Stagnation is automatically causing debt ratios to spiral upwards yet again across a large part of the currency bloc. The situation is doubly delicate since the European Central Bank is no longer able to serve as a lender-of last resort for Italy, Portugal and Spain.
Germany's top court has ruled that the ECB's back-stop plan (OMT) "manifestly violates" the EU treaties, and is probably Ultra Vires. The political reality is that the OMT cannot be deployed, whatever the European Court says when it issues its own judgment long hence.
(Excerpt) Read more at telegraph.co.uk ...
What recovery? Is this like the Obamacovery? Make believe! Socialism DOES NOT work.
Europe: EMU? Really? You named it after a large, flightless bird which legendarily sticks its head in the sand at the first sign of danger?
It’s interesting to see Germany with their boot on Europe’s neck, and the Russians with their boot on Germany’s neck.
... and Obama with his pink pumps on nobody’s neck
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