And we’ve all got entangled… well, never mind where!

So Friday the 13th it was indeed. The downgrading and all the outrage from Europe’s leaders and the on going joke called the European Commission. Of course, this outrage was quite misplaced since this time the rating Agencies are merely pointing out the obvious. How can you solve a debt crisis by shrinking economies, eh?

As Larry Elliott has pointed out yet again, the problem is one of Debt AS A PERCENT OF GDP! And if you have two sides of an equation you can’t simply ignore one of them! I mean the EU-Troika policy forced down our gullets has succeeded admirably in…? Well, in reducing GDP, which means that if debt remains at the same absolute level or even if it diminishes slightly, it will keep growing to a higher and higher percent of GDP.

One might be forgiven for thinking that you don’t have to be a rocket scientist to realise that much! Now, Greece’s GDP has already shrunk by 15% and looks set to achieving a 25% reduction very soon, particularly since The Frau has told us that the only way to agree to any more funding is to squeeze Greece’s GDP even further down through an even greater dose of austerity.

As to all this moral outrage at the nasty little American ratings agencies out to get us noble Europeans, in his article Ha-Joon Chang points out that this time, they’re only calling it as it is. And besides, he tells us 80% of one of these terrible agencies is in fact owned by French interests. (Ha! So much for bad American conspiracy theories.)

The whole idea of the Public Sector Involvement was flawed at the outset (see Yanis Varoufakis excellent and quite simple explanation why). So it really is quite a moot point whether the stalled talks on the PSI for Greece’s debt get started again or not. Either way it’s not going to solve the problem. In fact, it will only make it even worse.

Perhaps all we should do is brace ourselves for the inevitable crash round the corner. And that goes for the whole of the European venture and not just Greece.

Perhaps failure of the wretched PSI talks (in conjunction with the mass downgradings of the Eurozone economies) may actually be a blessing in disguise (even if it is a very good disguise as Churchill famously put it when he lost the elections after the war.)

Since if that does happen perhaps The Frau might may just be induced in the nick of time to adjust her precious knickers!