Euro zone economy to shrink again … "The improved financial market situation contrasts with the absence of credit growth and the weakness of the near-term outlook for economic activity," said Marco Buti, the commission's director-general for economic and monetary affairs. "The labor market… is a serious concern," he said, in a preamble to the Commission's latest forecasts. But the damage from the 2008/2009 global financial crisis and the ensuing euro zone debt crisis has been greater than expected on the real economy, with global demand for euro zone exports one of the few saviors in terms of generating growth. Joblessness in the euro zone is set to peak at 12.2 percent, or more than 19 million people, in 2013, the Commission said, and both private and public consumption will not make any contribution to improving output, instead dragging on the economy. – Reuters
Dominant Social Theme: We need to turn to central banking for help with the Euro economy – there is simply no other way.
Free-Market Analysis: The European dialectic is alive and well in the Eurozone and beyond. Across the EU, recession (depression) spreads and we are told that the only response is a central banking one.
The EU economic morass can only be alleviated by additional easing as the spigot of additional credit is generously opened. European depression. Central bank alleviation. A box that the mainstream media constructs with constant iterations. The only question is how active central bankers will be.
The outlook raises the prospect of further interest rate cuts by the ECB to jump-start the economy by reducing the cost of lending for companies and families, although with banks reluctant to lend, any impact may be muted.
Consumer inflation is forecast by the Commission to be 1.8 percent for 2013, and with such pressures contained the ECB may feel more comfortable cutting rates to below the current 0.75 percent level.
"A cut in the main refinancing rate is not the most powerful measure the ECB could implement, but it is a step in the right direction," investment bank JP Morgan wrote in a note this week.
The Commission's overall view is a touch more pessimistic than that of the International Monetary Fund, which sees a 0.2 percent euro zone contraction this year.
Across Europe, resentment rises as technocratic plans fail. Mario Monti in Italy struggles with Silvio Berlusconi who is not by any means the first choice of those who wish to perpetuate the power of the European Union.
Spanish unemployment is filled with improbably high numbers. About half of all young people searching for work can't find it. Greece is in even worse shape. France is beginning to implode as well. Portugal is well on the way.
None of this is reported by the mainstream. It is much easier to provide what we call a dialectic, offering up simple choices and eschewing any conversation over what really happened.
The European Union is in a slump. Central bankers will have to find a way out.
It's NOT what happened. The reality is that the slump was driven by central banking – manipulated by monopoly fiat money that caused first a tremendous boom and then an ongoing bust.
We're not supposed to think outside the box: But here is a prediction … Many people ARE.
The tribes of Europe are increasingly furious, just as we predicted long ago. Again, there is under-reporting but we keep track of both riots and secession movements. Spain, especially, is splitting apart and the social fabric in Greece, France, Italy and Portugal is increasingly threadbare.
The plan – as enunciated by top EU leaders over the decades – was to create a crisis that would result in the efficient creation of a greater political union. Instead, what we call the Internet Reformation has exposed these plans and made their implementation more difficult.
It is hard to engage in a conspiracy when everyone is well aware of its existence and implementation.
Europeans are not supposed to think outside of the guidelines being set by Reuters and other mainstream media.
Sour economy/central bank easing.
The solution to the problem leaves intact the facilities of those who created the problem in the first place. But that doesn't mean they are being accepted.
The longer Europe's economic crisis drags on, the less the solutions of Money Power shall be welcomed or accepted. The dialectic has been established and promoted but increasingly Europe's seething tribes are simply rejecting it. This is a problem now and a crisis tomorrow.