The hunt for money, either cash or collectibles throughout Europe, is sending money underground. The velocity of money, the number of times one dollar is spent to buy goods and services per unit of time, has dropped below even the Great Depression levels in the United States. This phenomenon is being observed across all continents. This is the definition of deflation and the path to economic, political, and social pain.
Headline: S&P lowers outlook on European Union to negative
Aug 3 Standard & Poor's Ratings Services lowered its outlook on the European Union to negative from stable as it expects that the EU would provide first-loss guarantee support for financing connected to the Juncker investment plan.
The ratings service said the outlook also reflects further downward pressure on the average weighted rating on budgetary contributors to the EU.
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