Tuesday, October 20, 2015
|YOUR BEST SOURCE FOR THE UNBIASED MARKET COMMENTARY YOU WON'T GET FROM WALL STREET|
Deflation — that dreaded plague that brings economic depression, default and poverty in its wake — is definitely beginning to hammer the European Union.
You can see it in the inflation numbers: Despite the fact that the European Central Bank (ECB) is printing money like there’s no tomorrow, the inflation rate is now in negative territory.
Since April, the EU inflation rate has fallen from .3% to a negative .1% in the latest month.
The danger is that consumers will realize that they can save money by delaying purchases. At that point, catastrophe is inevitable. Tax revenues plunge. Governments find it difficult or impossible to pay their debts. A plague of defaults follows.
Some citizens may already feel caught in the grips of a depression. According to Eurostat, the EU-28 unemployment rate is stuck at a staggering 9.5%.
Worse: Growth this year has been disappointingly weak. Germany is on the way to the emergency room. France and Italy are in intensive care. And of course, Greece is still on life support.
The worst news of all is that despite interest rate cuts ... despite massive money printing ... the situation continues to get worse.
Mark my words: Barring a miracle, the European Union is racing towards a massive, crippling economic catastrophe.
Once again: This is why it’s critical that you consider investments that rise when the euro plunges ... that soar when European stocks crater ... and that spin off huge profits as trillions of euros in flight capital move into U.S. dollars and investments ... will make savvy investors rich.
Yours for supercycle survival and profits,
Senior Analyst, Weiss Research
Editor, Supercycle Trader
P.S. Although enrollment in my Supercycle Trader has now closed, I will con