Bill McBride at Calculated Risk is puzzled (for good reason). Maybe puzzled is the wrong word. He sees what's going on, but others appear "blind to the obvious" (or they're serving some other purpose):
This is an actual quote today from the German Finance Minister Wolfgang Schauble:"Nobody in Europe sees this contradiction between fiscal policy consolidation and growth,” Schauble said. “We have a growth-friendly process of consolidation, and we have sustainable growth, however you want to word it.”
Obviously there is a contradiction between "fiscal policy consolidation and growth". And not everyone is blind to the obvious - some people in Europe see the obvious contradiction (just look at the data).
Comment: Obviously Schauble is the worst kind of policymaker. He believes in "austerity über alles" and can't be swayed by the results. Very sad. ...