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I guess most of that is an attempt to avoid naming the dreadful truth. For Greece there are only two significant options. Either unquestioning obediance or an exit from the Euro. Matters have progressed too far to allow anything less radical.
by oliver on Wed Feb 15th, 2012 at 10:18:22 AM EST
[ Parent ]
It's clearly gone beyond that. Unquestioning obedience will not make the debt stability analysis come out positive. Unquestioning obedience has dug them into an ever-deepening hole :

austerity -> shrinking economy -> shrinking tax base -> unsustainable debt -> da capo al fine.

The name of the game now is "humiliate them until they snap".

Hence the endlessly moving goalposts.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Wed Feb 15th, 2012 at 10:24:35 AM EST
[ Parent ]
This.

The lie (sold most vehemently of all to the German public) is that austerity measures were every going to put Greece into a position to pay off it's debt.

What was needed was a short sharp ECB intervention at the beginning to show that it wasn't going to tolerate random speculation in Eurozone government bonds - and then an EU-wide dose of fiscal spending to dig Europe out of the worst situation since the Great Depression.

Ever since Austerity was chosen as the policy response, we've been locked into a death spiral. Many on this site (including me) kept hoping that we could break out of that - but the reality is as long as people keep pretending the Austerity could work in the middle of a Lesser Depression, the more doomed we are.

by Metatone (metatone [a|t] gmail (dot) com) on Wed Feb 15th, 2012 at 10:59:29 AM EST
[ Parent ]

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