The financial problems facing the eurozone are as much a consequence of rising external imbalances and divergences in competitiveness between the EMU’s core and the so-called “periphery”.
As such, we believe that a reform process based on a pillar of fiscal austerity alone risks becoming self-defeating, as domestic demand falls in line with consumers’ rising concerns about job security and disposable incomes, eroding national tax revenues.Roughly translated: cutting = less money in circulation = less consumer spending = job cuts = lower tax revenue = more cutting = .......
Death Spiral.
It's coming, and it's because Germans think they're better than everyone else.
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