{"id":40039,"date":"2018-11-02T05:44:01","date_gmt":"2018-11-02T10:44:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=40039"},"modified":"2018-11-02T05:44:01","modified_gmt":"2018-11-02T10:44:01","slug":"europe-more-than-europe-from-boom-to-the-precipice-of-recession","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=40039","title":{"rendered":"Europe More Than Europe: From \u2018Boom\u2019 To The Precipice of Recession"},"content":{"rendered":"
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Europe More Than Europe: From \u2018Boom\u2019 To The Precipice of Recession<\/a><\/h3>\n<\/div>\n
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Data dependent, they claim. They aren\u2019t. Mario Draghi at his last press conference admitted, \u201cincoming information, [is] somewhat weaker than expected.\u201d There is so much riding on the word \u201csomewhat.\u201d Because of the weasel, the head of the ECB told the assembled media policy normalization was unimpeded. He did so with a straight face.<\/p>\n

Good. Europe\u2019s QE experiment needs to end. Not because it succeeded, rather since there was no hope for it from the beginning. It was a giant waste, at best an enormous distortion. At most, it was a huge distraction from the real problem.<\/p>\n

You have to hand it to the Germans. They seem quite capable of the more serious business of economics (small \u201ce\u201d). Where Economists (capital \u201cE\u201d) like Draghi play the game of somewhat data dependent, businesses in Germany refuse license to the same luxury. They are business dependent, meaning that if things really were booming they would act that way. And if something like recession looms, the Germans would know it.<\/p>\n

And that\u2019s exactly what they\u2019ve said for much of this year particularly the past four or five months<\/a>. The global economy, which heavily influences Germany\u2019s, is heading for another downturn. For Europe as a whole, it\u2019s a whole lot of trouble.<\/p>\n

The European Union\u2019s statistical body confirms today what German sentiment has been warning about. The European economy is already<\/em> <\/strong>on the precipice of recession. The ZEW survey in September was as low as it was when Europe was last contracting. In Q3 2018, Eurostat reports that GDP expanded by just 0.16% over Q2. That was about one-third the rate in Q2, which was itself about three-quarters the gain in 2017.<\/p>\n

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Data dependent. Like the ZEW index, GDP growth was the lowest since Europe\u2019s last recession.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Europe More Than Europe: From \u2018Boom\u2019 To The Precipice of Recession Data dependent, they claim. They aren\u2019t. Mario Draghi at his last press conference admitted, \u201cincoming information, [is] somewhat weaker than expected.\u201d There is so much riding on the word \u201csomewhat.\u201d Because of the weasel, the head of the ECB told the assembled media policy […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11182,122,233,281,282,431,1044,534,661,662,1264],"class_list":["post-40039","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alhambra-investment-partners","tag-central-bank","tag-ecb","tag-europe","tag-european-central-bank","tag-interest-rates","tag-mario-draghi","tag-monetary-policy","tag-qe","tag-quantitative-easing","tag-recession"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40039"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40039\/revisions"}],"predecessor-version":[{"id":40040,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40039\/revisions\/40040"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}