Via Salon, Brits are finding out that by slashing government jobs, it has had to pay more for social welfare benefits (think unemployment compensation), erasing any benefit that cuts in jobs has brought. Further, austerity has ended up adding MORE to debt borrowing, rather than reducing it, including debt as a percentage of GDP.
It's no wonder PIMCO's Bill Gross has suddenly changed his opinion about inflation, resulting from QE2's cheap money...looks like consumers aren't exactly going on a spending spree in the US, and businesses aren't expanding.
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