Border attacks in Europe - More signs of deflation

From: Mish's Global Economic Trend Analysis

In an "eye for eye, tooth for tooth" retaliation to French farmers throwing Spanish produce in the streets, Spanish farmers have threatened to "look for French interests and cause the most damage possible."

Agrarian Association of Young Farmers in Catalonia announced Friday that blocked the return of French tourists to their country by cutting the road to La Jonquera response to the boycott of Gallic producers and recent attacks on trucks from transporting fruit Peninsula and vegetables.

Asaja coordinator in Catalonia, Albert Castelló, has said that already run out of patience, "eye for eye, tooth for tooth," and said it is absurd to continue with good words and wait for action by governments.

It has also warned that if they attack at the border now and the end of the month "automatically go looking French interests and cause the most damage possible." He called on the Catalan police to be "gatekeepers" and to defend the interests of Catalan and Spanish when these attacks occur, as has ensured that the security forces do Gauls.

Asaja has hit back against the Government for its "immobility" when taking concrete steps to defend the interests of local producers, which this week have been suffering more attacks on the border.

The European Commission has indicated it has not been formally informed of the latest attacks of French farmers against trucks carrying fruits and vegetables from Spain, but has made ​​clear that it condemns "all sorts of illegal and destructive action" and has reminded France that European Union countries should take steps to ensure the free movement of goods.

Courtesy of Google Translate please consider Spanish farmers threaten to block border with France

Hallmarks of Deflationary Times

Trade wars are hallmarks of deflationary times. Disputes between farmers in Spain and farmers in France are a case in point. When there are ample jobs, everyone is happy. When not, people blame their neighbors.

Bear in mind more austerity is coming to Spain, France, Italy, and Greece. A massive European recession is on the way, complete with rising unemployment and civil unrest, and ECB president Jean-Claude Trichet wants to hike rates. It is economic madness.

To be fair, the market should set interest rates not Central Banks.

Where would the market set rates for Europe?

I do not know, nor does anyone else, especially central bankers. However, I do know "one size does not fit all" when it comes to interest rates when countries have widely varying fiscal conditions and problems.

As one of the founding fathers of the Euro, Trichet is in a mess of his own making.

For more on the mess in Spain, please see Numerous Spanish Towns Face Bankruptcy.