Forget U.S., It's Europe Going Over the Cliff

The eurozone crisis displays every sign of being about to re-erupt. Figures from both eurozone member countries and from Brussels-based Eurostat suggest major trouble ahead. Unemployment across the single currency area has risen to a new high of 11.6 per cent, while inflation pressures remain persistent. With external devaluation denied, internal devaluation is reaping a whirlwind of weakening economic activity and falling wages across the vulnerable economies. In Spain, now with an unemployment rate of almost 26 per cent, this looks a truly toxic combination.