Government has to react or face the living dead
We must accept that austerity without debt forgiveness simply cannot work, writes Carol Hunt
Published 17/07/2011 | 05:00
'A Tale of Two Europes," is what the international finance nerds are calling "it" -- speculating on how long it will be before the inevitable split occurs and the EU divides against itself.
"It" being the increasing evidence that all current economic strategies being pursued by the EU -- such as higher interest rates and the protection of the banks by paying back all of their debts -- are based on what is favour-able to strong economies like Germany, and to hell with peripheral countries like Ireland which deserve what they get for their stupidity.
But the more the contagion spreads -- the more countries that find themselves forced to take a "bailout" to pay off foreign banks -- the more likely it is that the central powers will have to acknowledge that austerity without debt forgiveness won't work. Either that or sit back and watch the collapse of the European economy.