Megan Greene of Roubini Global Economics is reported as having said: “If the Spanish government does not announce further austerity measures, the markets think it is not serious about hitting its fiscal targets and shun Spanish sovereign debt. If the Spanish government does announce additional austerity measures, however, the markets fret that the swingeing cuts will push Spain further into recession and shun Spanish government debt.”
There you have it. In a nutshell. Europe’s conundrum.
In other words, this is a case of heads they win, tails we lose. Under current German dictated policy there is no way Europe will ever recover. All that will be achieved is a continual sinking into the austerity quagmire. Recession turning into depression, depression into full scale catastrophe.
Is it really so hard to see that this policy is not only leading nowhere, but is in fact causing far more damage than it seeks to amend? Can’t anyone see that we are stuck in a cul de sac without any possibility of ever getting out, like the Hotel California? Isn’t there any little boy in the crowd to shriek “Look! The King isn’t wearing any clothes!”?
But creative thinking requires imagination and a willingness to smash established concepts. It does not need rigid adherence to rules and regulations with German precision that can only lead to ruin. The ruin of Europe.
Will this be Europe’s fate?
