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Austerity has been unrelenting, served in dosages higher even then those reserved up till now for 3d World countries. The casual reference to the 13.5 billion Euro (and rising)cuts, omits to mention that these are something like 7% of GDP over 2 years. Now, since real recession will be higher because of the measures than that projected by the troika, and since recession means extra cuts as far as they are concerned, this will probably reach 10% of GDP, in an economy on its 3d year of turbo-austerity, with a humanitarian catastrophe looming. I just hope Merkel and the troika will allow UNICEF to send food aid and not count it as social spending / taxable income - and insist it be sent off to ECB coffers.

The primary deficit reduction between 2010-2011 must have been in absolute terms a world record. Then it started stabilizing not because the cuts stopped, but because the austerity dried up the tax base, sent people out of work or to informal work in never before seen numbers, and the ridiculous taxation imposed became impossible to collect.

A war would have been less destructive to the economy and to society...

The road of excess leads to the palace of wisdom - William Blake

by talos (mihalis at gmail dot com) on Tue Sep 4th, 2012 at 06:13:53 AM EST
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