http://globaleconomicanalysis.blogspot.com/2011/08/border-attacks-spanish-farmers-threaten_13.html
Hallmarks of Deflationary Times
Trade wars are hallmarks of deflationary times. Disputes between farmers in Spain and farmers in France are a case in point. When there are ample jobs, everyone is happy. When not, people blame their neighbors.
Bear in mind more austerity is coming to Spain, France, Italy, and Greece. A massive European recession is on the way, complete with rising unemployment and civil unrest, and ECB president Jean-Claude Trichet wants to hike rates. It is economic madness.
To be fair, the market should set interest rates not Central Banks.
Where would the market set rates for Europe?
I do not know, nor does anyone else, especially central bankers. However, I do know "one size does not fit all" when it comes to interest rates when countries have widely varying fiscal conditions and problems.
As one of the founding fathers of the Euro, Trichet is in a mess of his own making.
Hallmarks of Deflationary Times
Trade wars are hallmarks of deflationary times. Disputes between farmers in Spain and farmers in France are a case in point. When there are ample jobs, everyone is happy. When not, people blame their neighbors.
Bear in mind more austerity is coming to Spain, France, Italy, and Greece. A massive European recession is on the way, complete with rising unemployment and civil unrest, and ECB president Jean-Claude Trichet wants to hike rates. It is economic madness.
To be fair, the market should set interest rates not Central Banks.
Where would the market set rates for Europe?
I do not know, nor does anyone else, especially central bankers. However, I do know "one size does not fit all" when it comes to interest rates when countries have widely varying fiscal conditions and problems.
As one of the founding fathers of the Euro, Trichet is in a mess of his own making.
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