Skip to comments.1930s medicine pushes Europe back into double-dip recession
Posted on 11/15/2012 3:27:26 PM PST by Oldeconomybuyer
The Dutch economy shrank by 1.1pc in the third quarter amid a deep housing slump, and even Austria has begun to succumb. Finlands economy has shrunk by 1pc over the last year.
Recession comes as no surprise and it is going to get worse next year, said Desmond Supple from Nomura. Europe has imposed dusted-off policies from the 1930s and they are driving peripheral countries towards depression, he said.
We are seeing a mix of pro-cyclical fiscal austerity, overly-tight monetary policy, and regulatory overkill under the Basel III bank rules that are forcing lenders to tighten credit. Europe is stuck in a bad equilibrium and it is not going to end until there is a change of course.
Prof Paul de Grauwe from the London School of Economics (LSE) said austerity measures imposed on the Club Med with no offsetting stimulus by the creditors was creating a contractionary bias to the whole system and and leading to a very dangerous situation.
France managed to stave off recession by the skin of its teeth, but that is unlikely to last after a blizzard of grim data in recent weeks and an austerity shock of 2pc of GDP coming next year.
(Excerpt) Read more at telegraph.co.uk ...
They tried to run their country on a combination of ‘credit cards’ and cheap labor from 3rd world countries. Too bad for them - they get to go under. Our elites tired the same - and we’ll go under soon too.
This. They’re stuck in the bankruptcy trap, and there’s no way out for them.
cutting the budget by 2% is “austerity shock” when they have massive deficits?
Their governments cost more than their people can [or are willing to] produce. There.
Dutch are know for contraband throughout history; their pharmaceutical companies produced 90% of the worlds illegal trade in that product line in past years; other forms of trade are not paying out the necessary money either with a recession looming worldwide. The fact that the Dutch, as has most of Europe, wasted their money by spending on things they cannot afford.
Cut taxes and spending.