In August a quite dramatic event occurred in Germany, and it escaped all the news cameras. No one reported on it until today. It was so quiet, but so pervasive and decisive, that no one knew about it until now.
Germans suddenly bought 3% less in the way of goods and services. The decline was sudden and dramatic.
Up until now the ECB has been raising the interest rates to prevent inflation from heating up. Now the ECB is left holding the bag. It doesn’t know what to do in its upcoming meeting. Prices have increased in the past year, but everything is recently slowing down.
The conclusion: do nothing and wait to see what the German consumers do next.