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Why Austerity?—When It Clearly Doesn’t Work | Opinion | teleSUR

February 2, 2015

Why Austerity?—When It Clearly Doesn’t Work | Opinion | teleSUR.

One Comment
  1. The fight accelerates to support Greece’s right to renegotiate their debt. a confrontation is coming…On the eve of the G20 finance ministers’ meeting in Istanbul which started Monday, many banks had their “research departments” put out notes forecasting systemic impacts if Greece is forced to leave the Eurozone, something no one in the Greek government has suggested. The real Wall Street fears being reflected, are of a derivatives blowout if Greece debt is significantly written down. But the banks forecast:

    The euro going immediately to 90 cents if Greece is forced out, with Swiss and Austrian bank failures (Morgan Stanley);
    Other countries quickly following Greece out (Citigroup);
    Multiple countries exiting the euro and runs on major European banks (a UBS Group special report issued Sunday).
    U.S. President Obama on Feb. 8 issued a contentless statement, “urging compromise” between Eurozone leaders and Greece. Typical of its duplicity was Obama’s CNN interview Feb. 7, in which he talked of a “limit to austerity”, but then indicated it hadn’t been reached in his view:

    “They probably don’t need to do an enormous amount of additional fiscal adjustment; they need to hold on to the gains from the reforms they’ve already made….”
    This is exactly the austerity disaster the Greek government insists on reversing.

    At the G20 Istanbul meeting. The one opening to sanity was French Finance Minister Michel Sapin’s comment to Reuters:

    “I think there is flexibility to find a short-term solution that would give Greece financing while a longer-term program for the country is hashed out.” Please see

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