Well, the whole article is an “I told you so” piece. And, no, they didn’t mention Suyts, but, they did affirm what I’ve been preaching for years now, which is, in times of low GDP growth, low inflation is a good thing for an economy, not something to combat.
Central bankers around the world have been combating low inflation rates, as if an inflation rate, in and of itself will move an economy. Our central bankers, taken at their word, are exceptionally stupid people. The people believing the central bankers are even more exceptionally stupid.
So, here’s the article ….
This is a strange wording for the AP idiots. They seemed to have forgotten all of their prognostications telling us the Eurozone was poised to take off any day from now for the last several years. Any given day I could read and write about their stupidity in proclaiming the Eurozone on the precipice of economic Nirvana. Now it appears a “long way off”, as I stated for years.
But, there’s something even better in the article! …..
LONDON (AP) — The eurozone economy can’t achieve lift-off, it seems, despite a number of tail-winds.
Official figures Friday are expected to show the single currency bloc, which comprises 330 million people across 19 countries, is still growing only at a subdued rate. The consensus is it expanded by a quarterly rate of 0.4 percent in the July-September period, unchanged from the previous quarter.
In fact, growth has been around this level for over a year.
Any growth is welcome for a region that’s spent seven years firefighting financial crises. But to really bring down high unemployment, the economy needs more. That’s partly why the European Central Bank is expected to expand its stimulus in December.
In a region spreading from the Atlantic to the eastern Mediterranean, the economic outlook varies between countries.
Here are the key points of interest in Friday’s figures.
Eurozone Consumers: They’re Back
For years, eurozone consumers have been afraid to spend amid high unemployment — particularly in Greece and Spain — and government cutbacks.
This year, many consumers have gained confidence. Retail sales rose a healthy 0.6 percent in the third quarter. “Unlike 2011, the euro area domestic economy appears to be in much better shape,” said James Nixon, chief European economist at Oxford Economics.
The reasons are clear.
Oil prices have fallen sharply in the past year, lowering fuel costs and giving people more money to spend elsewhere.
Another reason is inflation is low and even negative in some countries.
Though ECB policymakers are concerned low inflation may eventually prompt consumers to delay spending in the expectation of lower prices, so far it’s a boon. Doubly so as wages are increasing in many parts of the eurozone, notably in Germany. And unemployment, though high at 10.8 percent, is edging down. …….
You can read the rest of the article at the link.
Trying to inflate the consumers’ buying power away is a massively stupid notion when one is trying to spur an economy. It always has been. And, now, the people of Europe has demonstrated that it’s best to keep inflation as low as possible in a troubled economy.
Unfortunately, for the Europeans, they’re mostly an import society, meaning the more spending, the more exporting of their wealth is occurring. This would seem like a simple notion to most people, but, for policy makers and central bankers, it’s too complicated. It’s best to purchase goods produced within the society, rather than exporting the wealth abroad.