European Money Aggregates - No Deflation Yet - Policy Responses to Deleveraging

A few asked me about the monetary situation in Europe, one person prefacing it with the statement that 'they are collapsing.'

Well, they are not, at least not yet. And there is nothing that says that they must. But since the person saying this has been desiring this outcome for more than ten years now, I should have known they were not. 

We are now in a global deleveraging after a massive