DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Eurozone leaders agree on new Greece bailout package

**Lyikmcmb** · 07-23-2011, 02:24 PM

After it was the subject of heated debates for weeks, the leaders of the Eurozone nations have agreed on a new bailout package for Greece, worth 159 billion Euros.

Too little, too late. Here's what Nobel-prize winning economist Paul Krugman wrote about it:

The Telegraph has a leaked draft of the eurozone rescue plan for Greece. The financial engineering is Rube Goldbergish and unconvincing. But here’s what leaped out at me:

9. All euro area Member States will adhere strictly to the agreed fiscal targets, improve competitiveness and address macro-economic imbalances. Deficits in all countries except those under a programme will be brought below 3% by 2013 at the latest.

OK, so we’re going to demand harsh austerity in the debt-crisis countries; and meanwhile, we’re also going to have austerity in the non-debt-crisis countries.
Plus, the ECB is raising rates.
So demand will be depressed in both crisis and non-crisis economies; this will lead to a vigorous recovery through … what?
The Serious People are determined to destroy all the advanced economies in the name of prudence.

07-23-2011, 02:24 PM	#5
Lyikmcmb Join Date Oct 2005 Posts 480 Senior Member	After it was the subject of heated debates for weeks, the leaders of the Eurozone nations have agreed on a new bailout package for Greece, worth 159 billion Euros. Too little, too late. Here's what Nobel-prize winning economist Paul Krugman wrote about it: The Telegraph has a leaked draft of the eurozone rescue plan for Greece. The financial engineering is Rube Goldbergish and unconvincing. But here’s what leaped out at me: 9. All euro area Member States will adhere strictly to the agreed fiscal targets, improve competitiveness and address macro-economic imbalances. Deficits in all countries except those under a programme will be brought below 3% by 2013 at the latest. OK, so we’re going to demand harsh austerity in the debt-crisis countries; and meanwhile, we’re also going to have austerity in the non-debt-crisis countries. Plus, the ECB is raising rates. So demand will be depressed in both crisis and non-crisis economies; this will lead to a vigorous recovery through … what? The Serious People are determined to destroy all the advanced economies in the name of prudence.
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