But I Thought The European Recession Was Over?


Eurozone unemployment reaches new record high

BRUSSELS (AP) — The number of unemployed in the 17-nation eurozone reached a record high in September as the bloc’s nascent recovery failed to generate jobs, official data showed Thursday.

The ranks of the jobless swelled by 60,000 to a record 19.45 million, according to Eurostat, the European Union’s statistics agency. Though the unemployment rate remained steady at 12.2 percent, the previous month was revised up from 12 percent.

Nothing says a growing economy like record unemployment.  Fortunately for the Europeans, the ECB has their back!  While they might not have jobs, they going to make use their money doesn’t gain value!

The ECB may be pushed into action eventually if the inflation rate keeps dropping. Eurostat said the annual inflation rate fell to 0.7 percent in October from 1.1 percent a month earlier, marking its lowest level in about four years. The ECB is tasked with keeping inflation close to, but below 2 percent.

“Latest developments reinforce our view that the ECB will end up cutting interest rates from 0.5 percent to 0.25 percent sooner or later,” said IHS Global Insight’s analyst Howard Archer, adding the ECB might take such action as early as in December.

Because nothing says “helping” like making sure your money loses value while you don’t have a job!  Good thing the ECB is on the case! 

Oddly, and seemingly detached from the inflation rate and without ECB intervention ….

The euro dropped sharply, from above $1.3700 before the news to about $1.3615 in afternoon trading.

It seems, even without intervention, the Europeans can establish what they conceive as a proper inflation rate just by having more unemployed!  Wait…… the value of money isn’t related to inflation, is it?

Where do these bankers go to learn about economics?  Do the Greeks have a special university that teaches our central bankers about economics?  Do they go to Spain or Zimbabwe?  Who is teaching these people? 

The unemployment rate for the wider 28-nation European Union remained unchanged in September at 11 percent.

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3 Responses to But I Thought The European Recession Was Over?

  1. philjourdan says:

    It is a recovery in name only. Government spending can inflate GDP, but it does not create jobs. I guess they did not learn that from Porkulus.

  2. Bruce says:

    AEP at the UK Telegraph has a couple of good articles today on the EU economic situation, if anyone likes such things (they’re fairly wonkish).

    His point is that the ECB hasn’t been on the case and money supply has fallen into a deflationary hole. The German election may be one reason why they haven’t done anything, but since Merkel has to do a deal with the left to convert her election result into a feasible coalition, it may well be that they still feel they can’t do anything, except watch and fiddle Nerolike.

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