Eurozone Unemployment Getting Scary

Pinnacle Digest writes: Chris Ciovacco highlights, in his latest article, that one Washington insider was quoted as saying the “day of reckoning is arriving”. This insider was referring to the debt issue in the US and Europe coming to a head and inflicting a huge blow to both economies. Unemployment in the eurozone is now at its highest level since its currency was created in 2000.

It has become very clear in the eurozone. Voters are not willing to take their medicine and go through long periods of austerity - nor are politicians. With the unemployment rate across the eurozone now at 11%, pressure to stimulate growth is coming from all angles. The only country trying to prevent more stimulative spending is Germany. Up until this week, the ECB has stayed out of talks with the eurozone politicians on stimulus programs, but ECB president, Mario Draghi, couldn’t keep his silence any longer. It was reported that Draghi is now pressuring Angela Merkel of Germany to join forces with the rest of the eurozone and promote growth. Merkel risks isolating her party further if she doesn’t oblige.

Expect further stimulus in Europe soon.

In the US, Obama’s team has been in overdrive trying to prevent an all-out meltdown in the economy before the election. With unemployment figures creeping back up to 8.2%, the Obama team is busy scheduling meetings with eurozone countries in an effort to encourage an end to austerity before the market collapses entirely.

With more analyses on the fundamental dangers looming over the Western World and supportive technical analyses on the market, Chris Ciovacco’s article is a must read. Click here to read.