Greece: if austerity doesn't work... Try more austerity! | 287 comments (287 topical, 0 editorial, 0 hidden)

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=4298448

IMF softens its stance on Greece, as does Germany
Thu 16 Jun 2011
IMF softens its stance on Greece, as does Germany LONDON - According to the Financial Times, the International Monetary Fund has indicated that it is willing to disburse the next tranche of Greece's current rescue package so long as the EU makes up for any shortfall.

So I've been reading that the protests in Greece and gov't talks have come as a shock to the EU heavyweights. They are now reacting in different ways to events on the ground.

This reinforces the sense that they are only in reactionary mode. They have no one on the ground apparently who can tell them how the austerity program is going. I always assumed that they would just as well accept a Greek default brought on by popular demand, and that's why the measures were so stringent (not to mention the ethnic insults). But now it seems that, no, they just don't know what the fuck they are doing.

by Upstate NY on Thu Jun 16th, 2011 at 09:06:15 AM EST

Re: Try more austerity! (4.00 / 2)

As long as the powers that be (1) don't realise that austerity causes recession causes tax income collapse causes worsening budget deficit even with savings on expenses, (2) don't recognise that it is in their power to nuke the markets, the speculators, the rating agencies; they won't be able to stop the wave from reaching them, too, and all grand schemes they could have followed amount to foolishness.

_{*Lunatic*, n.

One whose delusions are out of fashion.}

by DoDo on Thu Jun 16th, 2011 at 01:28:40 PM EST
[ Parent ]

Nobody expected the ECB riot! (none / 1)

So I've been reading that the protests in Greece and gov't talks have come as a shock to the EU heavyweights

Because IMF riots only happen to ugly Americans. The EU is a Force-For-Good™

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Thu Jun 16th, 2011 at 03:44:50 PM EST
[ Parent ]

They just don't know WTF they are doing (4.00 / 2)

I believe I hit on the right description of them within 6 weeks of the start of the Urkrise.

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Thu Jun 16th, 2011 at 04:01:46 PM EST
[ Parent ]

The EU heavyweights (none / 1)

Who?

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Thu Jun 16th, 2011 at 04:09:50 PM EST
[ Parent ]

Bah humbug! (none / 1)

Reuters: IMF expected to pay next Greek tranche: eurozone sources

"The situation is clear: If there is a strong commitment from the Europeans to do whatever it takes to back Greece, the IMF will pay the money. And I can tell you there will be such a commitment," one senior euro zone source told Reuters.
The IMF had said disbursement of more money was contingent on a plan being finalized to guarantee Greece's funding needs into next year.
In Paris, Zhu Min, a special advisor to the IMF's managing director, said the Fund was deeply concerned by the latest political turmoil in Greece but stood ready to help if the government could win consent for its austerity plan.

(My emphasis)

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Thu Jun 16th, 2011 at 04:30:56 PM EST
[ Parent ]

Re: Bah humbug! (4.00 / 4)

Keynes said

The old saying holds. Owe your banker £1000 and you are at his mercy; owe him £1 million and the position is reversed.

Addendum to Keynes: if the bank has written CDS for £1 billion of your debt you hold the entire world economy at your mercy.

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Thu Jun 16th, 2011 at 04:33:13 PM EST
[ Parent ]

Greece: if austerity doesn't work... Try more austerity! | 287 comments (287 topical, 0 editorial, 0 hidden)

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