The news is bad from Asia. The stock markets are all down. News is bad from Europe. The stock markets are all down.
Employment in Australia fell in June by 27,000 jobs. Yet Australia has been booming.
The recession’s signs are spreading.
South Korea’s central bank has announced an interest rate cut. Its stock market fell.
The Federal Reserve’s most recent minutes announced that it would not adopt QE3. American stocks fell.
The stock markets boom briefly after a weekend emergency meeting of Europe’s politicians. They make some grand announcement about a new solution to Europe’s growing banking crisis. Then a few hours, days, or weeks later, the plan unravels. There is no solution other than mass inflation. The PIIGS are bust. The northern European banks are loaded to the gills with IOUs issued by PIIGS governments. There may be a default by Greece, then Spain, then Italy. Solution: central bank inflation. The meetings accomplish nothing of substance. They are public relations stunts.
If Asia is slowing, Europe is falling, and the United States is slowing, from where will recovery come? Who is Atlas in this picture? He is AWOL.
We see three drunks staggering home after a night on the town. They are holding up each other. But one drunk — Europe — is tottering badly. If he falls, he will pull down the other two.