U.S. Economy Will Show Some Growth As Euro Economy Contracts

As the days progress, the strategy of George Papandreou has become increasingly clear. He does not like the terms forced on him by Eurozone bureaucrats especially French president Nicolas Sarkozy and German Chancellor Angela Merkel.Not only is he fed up with Eurocrats, he is fed up with Greek protests as well as pressure from political opposition.

New border controls are another sign of increasing protectionism in European states. It was not supposed to be this way, yet these controls represent a Vote of No Confidence in Europe

LONDON/BEIJING – China’s vast manufacturing sector expanded in December but the eurozone is probably deeper in recession, business surveys suggested on Friday. Data researcher Markit said its Eurozone Flash Composite Purchasing Managers Index, which combines both manufacturing and services sector data, showed small signs of improvement. It rose to a nine-month high of 47.3 this month, beating forecasts for 46.8.

As Spain attempts austerity by cutting back payments to regions, those regions run out of funds to pay bills.

Greek elections are set for June 17th following the impasse of the last election where no majority government formed. The "Destroy Greece to Save the Euro" clowns led by German Chancellor Angela Merkel are out in force hoping to turn the vote into a direct referendum on the Euro. The election is of course a direct referendum on the Euro, but Greek citizens are under three Fantasyland ideas. Three Fantasyland Ideas

Ireland was one of few countries to give its voters a say on passing the Merkozy referendum. A couple months ago, support for the treaty was close to 50%. Now, in spite of pro-treaty (and illegal) propaganda from the Irish government, support has fallen to a mere 30%. The Financial times reports Ireland sees support for fiscal treaty wane.

France. Explain

Cowards Win For NowWe will not get to see the precise wording of Prime Minister George Papandreou's referendum because enough cowards in the Greek parliament in conjunction with blackmail by Merkel and Sarkozy have put an end to Papandreou's regime.Thus, the on-off on-off Greek referendum is once again set to "off" this time permanently.Equity markets reacted positively to the referendum cancellation and also to the surprise rate cut by the ECB, but the euphoria will not last (except perhaps for gold).