the real recovery fear in E.U.
Below is a chart from the Wall Street Journal article. At the top of the left side is the euro versus a basket of 20 currencies - you can see a clear strengthening.
A little below is presented, CPI, at the bottom of the deposit rate at the ECB. On the right loan banking sector to the private sector.
All graphs show a weak situation in the euro area and the need for action by the ECB. The mandate of price stability is not met, and the low activity of banks will not support a recovery in the euro area.
Pronounce article is similar. Expression of members of the ECB before few days foreshadow subsequent operations of the bank. There is just no more time to lose. Meanwhile, the Euro is still high against the dollar. ECB meeting next week.
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| chart 1. The WSJ, 2014-03-26 |
the real inflation fear in U.S.
"The weather is to blame but what happens when pent-up demand bumps up against a drought-stricken west coast unable to plant to meet that demand? The spot price (not futures speculation-driven) of US Foodstuffs is the best performing asset in 2014 - up a staggering 19%..."
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| chart 2. CRB US Spot Foodstuff Index, 2014-03-26, source: Bloomberg |
best regards,
oscarjp
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