Headlines to ponder

UK maintains growth momentum

German business confidence soars

Those are two of the countries which have done the most to commit to subsequent decreases in government spending.  It would be wrong, wrong, wrong to causally attribute their growth to those spending decreases.  Still, fairly firm expectations of spending decreases don't exactly seem to be driving them under, and we do know that AD stimulation is all about credible expectations, not just the current flow of spending…

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