M3 Growth for First Time Below 4.5% Reference Rate
Being complacent with the fast slowdown in money supply M3 growth to a mere 3.7%, the first time in the history of the Euro that annual M3 growth has descended below the 4.5% reference rate, Trichet concluded that:
A cross-check of the outcome of the economic analysis with that of the monetary analysis corroborates the assessment of low inflationary pressure, as money and credit indicators continue to be weak. Against this background, we expect the current episode of extremely low or negative inflation rates to be short-lived and price stability to be maintained over the medium term, thereby continuing to support the purchasing power of euro area households.I'll leave it here. For the time being the ECB can collect a good performance grade for keeping official inflation at bay.
But my fears that this will be the last summer doldrums for a while cannot disappear after I just had an interesting chat with a source in Slovakia, since this year the 16th EU nation to transact in Euros, who said the industry there is not declining but simply falling apart.
Latvia and Estonia may be only the prelude of an economic apocalypse potentially engulfing all of Europe.