The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( TheStreet) -- Spending increased by 0.8% in February, the most in seven months, but incomes only increased by 0.2%. More importantly, real disposable income declined by 0.1%, the third such decrease in the last four months. As a consequence, the savings rate fell out of bed to 3.7% from 4.3%, the lowest level since August 2009. Therefore, the small rebound in manufacturing and huge increase in spending by the consumer is ersatz and unsustainable. The problem is that consumer debt has now started to increase once again at a time when it desperately needs to contract. The Europeans have taken a small step toward addressing their problems. They are trying desperately to embrace fiscal austerity, but in the meantime have also been dealt a huge dose of monetary madness from the European Central Bank. Taking only a halfhearted dose of the appropriate medicine for your economy won't fix the problem. For evidence, look at the Eurozone manufacturing purchasing managers' index. It fell to 47.7 in March, declining in Spain, France and even Germany. Perhaps most troubling was hat the unemployment rate in the Eurozone rose in February to 10.8%, the highest level in nearly 15 years. However, household inflation in the Eurozone was 2.6% in March, well above the ECB's 2% target rate. By only addressing their fiscal imbalances Europeans will have to battle a recession that is also accompanied by inflation, instead of enjoying the ameliorating effect provided through falling prices. Follow TheStreet on Twitter and become a fan on Facebook. In contrast to Europe, the U.S. hasn't gone one inch toward fixing the crumbling foundation of our fiscal imbalances. For example, the Treasury Department said the deficit in March totaled $198.2 billion, an all-time record for that month. That left the amount of red ink through just the first half of 2012 at $779 billion! The Congressional Budget Office forecasts a deficit of $1.17 trillion for the entire 2012 fiscal year, which began Oct. 1.