Germany’s Recession

[errolanderson]

Brutal industrial data released late week suggests Germany’s economy is now in-recession. Germany is the world’s 3rd largest economy. Their economic contraction may be a direct hit to the EU and a threat to global stock markets and bank liquidity .

Germany has likely been significantly impacted by the slowdown in China’s manufacturing (IMO) . . . .

[errolanderson]

Germany’s economic meltdown could have serious implications for the EU and global financial markets. Europe is already teetering on-the-brink . . . .

The European derivative world is entwined into the North American banking industry. And Brussel’s appears to have lost control of the economic stability of the EU (IMO).

[AlbertaFarmer5]

Errol, just Wanted to thank you for your posts keeping us informed of the macroeconomic situation. Too many of your posts go uncommented, So wanted to make sure you are aware that many of us are reading them And appreciate them. Even if the common theme tends to be somewhat negative, And not what we necessarily want to hear.

[farmaholic]

I generally read them, but know I don't have any value to add......

[WiltonRanch]

I echo the rest. Keep posting. I have nothing to add but read your posts

[Marusko]

I too appreciate your posts Errol, and your commentary on call of the land

[malleefarmer]

When China's central bank makes its biggest single-day cash injection into its economy, should we be comforted authorities are managing a potentially nasty slowdown, or alarmed the mountains of debt in the world's second-largest economy are only getting bigger and more dangerous?

The initial take has been cautiously optimistic, but then again a sugar-hit is often far more palatable for markets than dealing with the heartburn of stacking on more debt.

The People's Bank of China (PBOC) injected a net 560 billion yuan ($140 billion) into the economy last Wednesday, and roughly 1.1 trillion yuan ($230 billion) for the week.

[errolanderson]

When China's central bank makes its biggest single-day cash injection into its economy, should we be comforted authorities are managing a potentially nasty slowdown, or alarmed the mountains of debt in the world's second-largest economy are only getting bigger and more dangerous?

The initial take has been cautiously optimistic, but then again a sugar-hit is often far more palatable for markets than dealing with the heartburn of stacking on more debt.

The People's Bank of China (PBOC) injected a net 560 billion yuan ($140 billion) into the economy last Wednesday, and roughly 1.1 trillion yuan ($230 billion) for the week.

mallee . . . Massive demand hit in many sectors due to the fallout in China demand. Japan is now hit hard along with Germany. Despite money printing, deflationary pressures mount globally. This is now starting to feel like a run-away freight train.

Central bankers won’t know what just hit them (IMO) . . . .

[malleefarmer]

ps was a cut and paste im not that smart or articulate

[AlbertaFarmer5]

mallee . . . Massive demand hit in many sectors due to the fallout in China demand. Japan is now hit hard along with Germany. Despite money printing, deflationary pressures mount globally. This is now starting to feel like a run-away freight train.

Central bankers won’t know what just hit them (IMO) . . . .

They will probably dust off Ben Bernanke's helicopter money drop concept, coordinated on a massive global scale.

[wd9]

Good thing Canada is doing so very well

Also really appreciate your posts Errol.