Strange market action . Gold and the Euro down sharply as institutions sell anything to raise cash . Seems as if Europe, evaporating interbank lending, and eye watering funding stresses have all been forgotten. So passe , so 2011.
Yesterdays price action across asset classes seems to be saying that H1 2012 will all be about falling Chinese demand, fiscal restraint,a global growth slowdown, and commodity excoriation .Guess that means we're in a recession .
Look out for a $/€ exchange rate at 1.20 by mid-Q1. Great for tourism, German exports, and mediterranean farmers. Inflation is needed as part of a plan to prevent a €land meltdown.