Europe: For the record. German Chancellor Merkel and the European Council have changed in the last 48 hours from emphasizing austerity and the importance of adhering to agreements and goals to focusing on growth.
The two economic ideas are not mutually exclusive. Nevertheless, the growth has not been discussed in connection with south European sovereign debt. The rise of the socialists in France and the rejectionists in Greece seems to jolted the European bankers to consider potentially more innovative ideas about continental economic health besides “pay what you owe” policies.
The window of innovation will not last long because the debt exceeds the capacity to pay it down. The demographics of up to 50% unemployment among the most able cohorts of the work forces in Mediterranean European states defeat growth without statism. This is the threat.
See Also:
Chuck Spinney: Why Doesn’t Spain Understand that Integrity is Priceless?
Chuck Spinney: Europe in Crisis Rule by Troika Spain and Hungary Next
Chuck Spinney: Financial Coups Destroying Europe
Chuck Spinney: German Economic Imperialism Killing Europe?
John Steiner: Iceland Defies Banks, Recovering Rapidly
Michel Bauwens: Michael Hudson on the crucial link between democracy and debt throughout history
Mini-Me: Iceland Breaks the Back of Western Banking
Mini-Me: Iceland Triumphs Over Banks, Western Governments Continue the Charade
NIGHTWATCH: Financial Crisis Now a Crisis of Fundamentals
Mini-Me: US Dollar Out, Yuan, System D, and Open Money In + Meta-RECAP
