This is another big issue facing Europe

The German economic boom is fuelling inflation, and prices are expected to keep rising because of Europe's one-size-fits-all monetary policy. The European Central Bank can't raise interest rates aggressively enough to curb German price pressures because that would hurt the weaker euro-zone economies.

This is another big problem facing Europe. Countries wanted to join the European union because of the low interest rates.

They could spend and borrow at little or no financial cost. The problem now is that if interest rates are not raised soon, Germany and northern Europe will have to face rising inflation.

I always believed the European Union could not work. It sure looks that way now.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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