EUR

Ezone biggest systemic risk to world economy. FED expected to rescue with swaps.
EZone is insolvent US is not. Nobody apparently understands ( except Ben and me) why not the US but the world needs QE.

Unfortunately tax increases slow the "velocity" of money and impact upon GDP. Its a vicious circle of spiralling decline. But take heart, "we are all in this together" :-)

Spain October Retail Sales Drop 2.8%

FYI:

11/29/2010 3:53:20 AM Spanish retail sales dropped at marked pace in October as the govenment's recent VAT rate hike continued to impact sales.

Statistical office INE said retail sales fell 2.8% compared to a year ago, following the 3% fall in September. On a calendar adjusted basis, sales were down a more modest 1%.

The fall suggests the government's July hiking of the VAT rate to 18% from 16% is continuing to curb spending. The government rose the sales tax to cut its substantial budget deficit and bring it under E.U. limits...

Putko Mafani
all very simple. bernanke plays poker better than Cincinatti Kid...
Ezone is the black hole of insight lot of information in no matter what always garbage out
Ezone debt MUST be restructured or the domino effect rolls....else Ezone bankrupt

At least in Europe there are some attempts to cut down the deficits, austerity programs, etc.
in USA they are pretending everything is perfect. The time bomb is ticking.