[jeffkrol]

or bugs on the Oligarchs windshield if you prefer.. and a lesson:

Yet to push Greece over the edge risks instant contagion to Portugal, which has higher levels of total debt, and an equally bad current account deficit near 9pc of GDP, and is just as unable to comply with Germany’s austerity dictates in the long run. From there the chain-reaction into EMU’s soft-core would be fast and furious.

Let us be clear, the chief reason why Greece cannot meet its deficit targets is because the EU has imposed the most violent fiscal deflation ever inflicted on a modern developed economy – 16pc of GDP of net tightening in three years – without offsetting monetary stimulus, debt relief, or devaluation.
[...]
The Eurozone is addicted to a failing remedy. Even if it could get its integration act in gear, austerity, as we predicted, is only making matters worse.
[...]
So much for the idea that economists had learned from financial crises and developed better reflexes. Economics has to an increasing degree become an exercise in promoting ideologies to defend the privileges of the rentier classes. They look to be about to be hoist on their own petard. Unfortunately, a very large number of innocent bystanders will suffer along with them.

Austerity breeds austerity. Tax increases and federal spending decreases reduce economic growth, increase unemployment, and reduce the quality of life for all residents.

This is a lesson not yet learned by the Tea/Republicans, old-line economists and the media. These slow learners, by demanding a reduction in the federal deficit, effectively will make the U.S. monetarily non-sovereign, and will guarantee a return to recession if we are lucky and depression if we are not.

Greece is the bellwether. That nation demonstrates what happens to monetarily non-sovereign entities, long term. Though it is the Tea/Republicans who strive to make the U.S. monetarily non-sovereign, perhaps these politicians can be excused their ignorance. They are, after all, politicians. The economists cannot be so excused. They should know better.

Austerity breeds austerity, in the PIIGS and in America. Unless we see a dramatic change in economics understanding, the last chapters of the Age of America now are being written. These chapters will describe a life of misery for you, your children and your grandchildren.

It’s not to late to rewrite this ending. The first necessary step is to understand that a growing federal deficit is necessary — today, tomorrow and forever.

[shiner]

If only non-attributed quotes made statements true.

[jeffkrol]

Monetary Sovereignty – Mitchell

http://www.nakedcapitalism.com/2011/09/euro-sos.html

http://eurowatch.blogspot.com/2011/09/high-noon-approaching-for-greece.html

[Nesster]

But, I just became an economist (or play one online) and defined the Deficit Equilibrium Balance Theory. That is, the deficit on its own, without additional revenues, finds its own level within the economy.

So we cut spending and embrace austerity. The well known multiplier effect takes these spending cuts and returns them amply as sharply reduced revenues. The federal government is incapable of rapid response: therefore the deficit reforms itself at the appropriate level for the now trashed economy.

[boriscleto]

IMF Reports That 'Austerity' Causes Job Losses and Lower Wages | Crooks and Liars