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BTW on Labor Day

From my window on Labor Day, I can see many Americans enjoying the beach.  Meanwhile in Europe, the leader of Germany has finished hiking the Alps, and the leader of France has returned from the Rivera to cobble together enough agreement to end their financial crisis.  At least, I hope so . . . it’s only been three years since this crisis began!

Thursday will be an important meeting of the European Central Bank (ECB), when they may announce their own quantitative easing or buying the bonds of weak nations, in order to hold down their borrowing costs.  Next week, the German “Supreme Court” will rule on the constitutionality of the European Stability Mechanism (ESM).  (There will be much consternation if it is declared unconstitutional, which will make the Euro drop, the dollar rise, and gold to fall.)  The following week, all the European Finance Ministers will meet to debate the recommendation to give pieces of their sovereignty to the European Commission, which should be interesting.  I think the European financial crisis is coming to a head over the next 60 days, which means the stock market could be quite volatile during this period.

Domestically, this Friday is one of two days that might determine the presidential election.  They are  September 7th and October 5th.  On those days, the Department of Labor will issue their monthly “jobs report.”  IF anybody in this country has not already decided how they will vote, they might be strongly influenced by this information.

Just remember, as you hear Republicans and Democrats warn of how bad America will be — if the other side wins — that it could be worse . . . you could be going back to work in Europe . . . or even worse, looking for work  in Europe — where unemployment is 11.3% (25.1% in Spain)!

So, ignore the American politicians — you already know how you will vote!  Instead, keep your attention on Europe . . .