Interesting

There is the possibility, as The Guardian suggests, that the European leaders want to create a deep recession in Europe to make the Southern countries more competitive because of lower costs and wages. The same approach has been followed in Latvia.

If so, strong deflation is very likely. Will the other western countries be simple observers?

All prices will decline. Interest rates would first rise sharply. Then they will decline as the deep recession becomes a reality.

Interesting scenario. Is the European Titanic doomed?

More details in my The Peter Dag Portfolio , in Dag's Exclusive market Alert, and my free educational videos on http://www.peterdag.com/.

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

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