Bloomberg Primes the Pump of the Deflationary Dialectic

Germany to Europe: Help Isn’t on the Way … German Finance Minister Wolfgang Schaeuble has bad news for anyone hoping the European Central Bank will ride to the rescue of the ailing euro region: Monetary policy has come to the end of its instruments. I don’t think ECB monetary policy has the instruments to fight deflation, to be quite frank. What we urgently need is investments, regaining confidence by investors, by markets, by consumers. His comments, in an interview with Bloomberg Television today, coincide with figures showing annual inflation slowed to 0.3 percent in the euro zone this month. That was the weakest rate of growth since October 2009 and marks 11 consecutive months of prices growing by less than 1 percent. The deflationary danger policy makers have been denying for months may be upon them. – Bloomberg View
Dominant Social Theme: Everything is going to be okay, really …
Free-Market Analysis: Bloomberg offers two editorials on Europe that tell us economic growth is not going well. The one above speaks to the issue of Mario Draghi’s lack of courage in terms of implementing a program of aggressive money printing.
The other one, which we excerpt below, is a kind of call to arms by Bloomberg itself – via its editorial staff – demanding that Europe’s leaders scrap the fiscal pact negotiated in 2012 that mandates certain austerity measures.
Taken together, they seem to be indicating a certain level of distress, and yet there are other ways to regard this double-barreled explosion of concern over the EU’s still-eroding economic condition.

This post was published at The Daily Bell on September 01, 2014.