Just two weeks ago, the mainstream media was advancing the narrative of a “recovering” Euro Zone based on a Markit PMI that still displayed contraction albeit at a slower rate.
Three weeks later, we discover that the optimistic number was an illusion. The Markit “flash” December PMI number was 46.3, which was an increase over November’s 46.2. In actuality, the PMI number decreased to 46.1.
The data shows that the Euro Zone recession is deepening. All the Euro Zone countries are relying on optimistic growth forecasts in reducing their budget deficit projections. In reality, a worsening recession will cause those deficits to rise. Mainstream media pundits are predicting the end of the eurocrisis based on these rosy forecasts, but a rise in the Eurozone bond supply is now possible with its resultant consequences.