Behold the Euroglut

What ails Europe is not “secular stagnation” or “normalisation”, but rather the much more specific problem of a “Euroglut”.

So, at least, says George Saravelos at Deutsche Bank.

His argument relates to the idea that the global imbalances which were created by Europe’s massive current account surplus are becoming the defining variables which will drive a weaker euro, low long-end yields and exceptionally flat global yield curves, as well as ongoing inflows into “good” EM assets.