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Apparently the reports here in Greece indicate that part of the expected "constitutional reforms" include the removal of all or most constitutional protection of collective bargaining agreements. In fact we're well on the way of dismantling most labor protection laws (in the name of "competitiveness") in the feverent hope that wages will further fall to sub-poverty levels (the troika apparently seems to think that 700 Euros/month (below poverty levels even before the crisis) is excessive in a country with raging inflation. I need to write a diary about all this, as a warning, because we seem to be the guinea pig for the thirdworldization plan for most of the EU periphery....

The road of excess leads to the palace of wisdom - William Blake
by talos (mihalis at gmail dot com) on Wed Feb 2nd, 2011 at 05:11:14 AM EST
Germany may demand EU-wide end to wage-inflation link | News | Business Spectator
Germany could present the proposals, which are in draft form and may change further in the coming days, to its euro zone partners at a summit on Friday.

Berlin wants them to form part of a comprehensive anti-crisis package for the euro zone that is expected to be unveiled at another EU summit in March, although the details would only be pinned down over the next 12 months.

Belgium, Cyprus, Luxembourg and Malta all use indexation to set some domestic wages while others including Portugal relate salaries to price growth through collective bargaining agreements and negotiations.

Interestingly, in the context of debt deflation theories of recessions, Hyman Minsky actually claimed that inflation indexing is generally a bad idea. I will find the quotes and post them tonight.

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Feb 2nd, 2011 at 05:23:44 AM EST
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Shock Doctrine in action, no?

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Wed Feb 2nd, 2011 at 05:34:29 AM EST
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Yep. The natives are getting restless of course, but not fast enough I think. And there are practically no MSM of any import that are critical of the IMF government.

The road of excess leads to the palace of wisdom - William Blake
by talos (mihalis at gmail dot com) on Wed Feb 2nd, 2011 at 05:50:01 AM EST
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