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Time to ditch the euro

Commentary: Debtor nations can't compete with Germany
Published on Nov 23, 2011

It is Thanksgiving here, not over there, but given the sudden silence over there you'd think they were the ones on holiday.Here we got the mild disappointment of third-quarter GDP revised down from 2.5 percent to 2 percent. Stock market Pollyannas are already spinning: Since inventories were not rebuilt in the third quarter, contributing to the downward revision, the fourth quarter is going to be hot, hot, hot! Not, not, not. Richmond and Chicago Fed metrics, as nearly every real-time indicator, show slight forward motion but no acceleration. The failure of the congressional supercommittee did no particular harm, as markets hold all politicians in contempt and expectations were already near zero. Now, we'll talk turkey -- technical, central bank turkey. Europe is out of all options except one: The European Central Bank with invented money can buy a couple of trillion euros' worth of Club Med debt. How would that be different from the Fed's "quantitative easing"? QE1 here w...

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