GOOD-BYE TO THE RECOVERY OF THE EUROPEAN UNION WHILE THEY CONTINUE PROTECTING TO THE EURO

The deflation is already installed in the Euro area the prices they continue giving samples of moderation. This way, the first estimate of the IPC of January fell until 0,7% from 0,8% of December, below the expectations and very far from 2% that has marked as objective the European Central Bank (BCE), it is the lowest level from the creation of the unique currency, it is this so logical that until it seems like that deserves an analytic comment in the economic press the thing it is as simple as this to LOWER PRICES is THE ONLY FORM OF COMPENSATING THE EXCESSIVE VALUE OF THE EURO. 

The last time that the BCE acted was in fact in November, when the inflation fell yearly in rate from 1,1% to 0,7% in October. This fall of the prices in 2014 it could hinder the incipient recovery of the Euro zone of their financial crisis and of debt, with the included fear to a deflation being about. This has already passed the deflation it is no longer about he has already lodged in all the economies of the euro and I eat consequence it dominates the global economy of the own euro area. The analysts expected from stocking an IPC between 0,8% and 0,9%. Excluding energy, feeding, alcohol and tobacco, the prices to the consumption went up 0,8% in the first month of the year, according to the data of the Eurostat. In Spain, the harmonized IPC stayed in 0,3% in January. 

A long period of prices to the drop is very harmful for the group of the euro, since so much governments as companies as matters, in the middle of to pay one’s debts process are. And it is that if the prices fall, the effective weight of the debt is bigger, because there is less collection in all the environments (tax and I consummate) what complicates its refund and it still ballasts more the halting internal consumption. In fact, the European speculative fantasy of the responsible ones, on an incipient economic recovery of the Euro area, he vanishes of the real economic scenario.  

The specialists sustain an and another time some solutions totally guided to the potential of Germany but they don't realize that Germany is alone 20% of the UE so all that today benefits to Germany harms vastly to 80% remaining. The types of interest in the Euro zone are at the moment in 0,25%, for what the maneuver margin in this sense is scarce. However, the central bank could use other types of less conventional actions, as activating the purchase of sovereign funds to stimulate the economies or to acquire active to the bank entities offering this way an extra liquidity, to foment the credit and with it the consumption and the investment.  

But this is to act on speculative and not real positions in my opinion these advice they are false because so much if the BCE buys funds or active the reality will be that the debts will continue being there after a form or other the banks and national governments doubt a lot that they rush to reactivate anything before adjusting their deficits and debts for what these measures can be completely ineffective short term that is they don't doubt it where the problem is. 

The euro area and the whole alone European union has a true problem and a single solution both they are the own euro that is extremely and irrationally overvalued alone I will give them an example on what happens I have bought an automobile and I pay  20,000 €, well today this same model automobile for 7 years and it marks and above improved of equipment, I can buy it for 18,000 € which it’s the difference 10%, as much as the euro has been evaluated exactly in these 7 years 8%, adjust the offer for the necessity of sale of the concessionaires and of the market in general and they will see that him price slope is not such, but rather what attempts the market is to maintain the purchasing power of the same one, because in a crisis situation and widespread cuttings, it would be impossible to sell anything if the prices were in agreement with the solidity of the euro. 

Some economists would say to this fact that is just the opposite that today this I articulate it is more economic because with the foreign currency that is bought it is more valued and if this would be acceptable if there is not in parallel a deflation of wages, of GDP of the European countries and some ascents of sovereign debts the reality and you don't formulate them mathematics, he is telling us that you cannot continue drowning the general economy for the interest of a single economy that if it interests him that the euro this overvalued, for the simple reason that she has every time but and he finds to lend them or to sell them a big business.