  They seem unaware that China is slowing and the US is tipping
into a second leg of the Long Slump. Last week's collapse in
America's ECRI leading indicator to -9.8 marks the end of the
V-shaped rebound. If this means what it normally means -
recession within three months - Europe must take immediate
action to prevent being drawn into a deflationary vortex.
Spiraling public debt precludes further Keynesian spending, so
this must come from central bank stimulus. Tight fiscal policy
offset by ultra-loose money is the only option for Europe, the
US, and Japan.  Continue reading at the Telegraph >