Deflation in Europe

Posted by Martin Armstrong

 

The British Pound is down from $1.70 US to #1.50 US and the Euro is down from $1.40 US to $1.15 US.  

 

"The deflation is Europe is massive. This will eventually stimulate the capital flows to the dollar. You can see today as the Euro declines, the US share market is rising moderately. We seem to be headed into the next two weeks that will be a period of rising stress. The higher the dollar is driven, the more likely we will see the US economy turn down with 2015.75."

 

http://armstrongeconomics.com/2015/01/22/beware-the-british-pound/

http://armstrongeconomics.com/2015/01/22/26471/

Comments

 

It looks like we will be back in a recession just in time for the 2016 election cycle. As the dollar surges exports will become difficult for US manufacturers and oil may crumble below $30/bbl.  Layoffs are already spiking in the oil producing states (Texas, N.D., etc.) and a manufacturing index for the Southeast plummeted below 50 last week, which indicates a developing recession. 

 

Obama's last year in office may resemble Bush II - full of crises and weekend meetings to put out financial fires.

I expect both parties to deny it and stick to their scripted propaganda that "all is well" until we get the kind of volatility we saw back in 2008.  At that point the jig is up. "May you live in interesting times" - old Chinese proverb - Chris Peters

 

It will be time again to vacation in Europe if the airfares go down. - Norb Leahy, Dunwoody GA Tea Party Leader