Europe Clings To Scorched-Earth Ideology As Depression Deepens -- Ambrose Evans-Pritchard, The Telegraph
Like the generals of the First World War, Europe’s leaders seem determined to send wave after wave of their youth into the barbed wire of tight money, bank deleveraging, and fiscal austerity a l’outrance.
The strategy of triple-barrelled contraction across a string of inter-linked countries has been the greatest policy debacle since the early 1930s. The outcome over the last three years has been worse than forecast at every stage, and in every key respect.
The eurozone has crashed back into double-dip recession. It will contract a further 0.3pc next year, according to a chastened European Central Bank. The ECB omitted mention of its own role in this fiasco by allowing all key measures of the money supply to stall in mid-2012, with the time-honoured consequences six months to a year later.
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My Comment: Predictions for this economic disaster have been voiced for a very long time .... but it is only in the past 3 years that the 'chickens have finally come home to roost'. And who is to blame for this mess but the electorate who always found it easier to elect into power politicians who made promises with borrowed money than the politicians who preached 'living within one's means' and to not go into debt. Sadly .... Europe's mess is going to impact everyone, and with the U.S. now following the same economic policy of more debt and higher taxation .... it is easy to predict that in the next year or two we will be finding the same economic crisis in the U.S..
2 comments:
I would regard the US in a worse state of affairs than Europe...
There is a difference between 1930 Great depression and today. During the Great Depression in the year 1930 the bankers and investors were committing suicide for losing the people's money while now a days the people are committing suicide while those same bankers and investors lose the people's money.
Economic Depression
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