The cover of The Economist this week is titled “That Sinking Feeling (Again)”. The article on the European Union notes that the collective GDP in the Euro Zone stagnated in the second quarter: Italy fell back into outright recession, French GDP was flat and even mighty Germany saw an unexpectedly large fall in output. Inflation has been falling steadily, and this August registered lowest in 5 years at 0.3%. Europe may be headed for deflation.