Austerity Plans a Huge Flop

[zenwalk]

You're a trust fund kid aren't you?

What's coming? I'd like to hear it from you. I'm neither a trust funder nor a kid. Wouldn't mind being either though.

[dsummoner]

Actually, the last four years has validated the Keynesian model. Again and again, they said, if you go down this path you will see sluggish growth, the possible return to recession, and you probably won't be able to reign in your deficit because the policies you are implementing are counter productive to that very goal.

No. What the last four years have done is show government propping up its cronies in the investment banking sector with QE/ZIRP/toxic waste purchases at par. The excess liquidity at virtually no risk is going through the investment banks and into pumping up the equities markets and certain commodities markets. There has been a gross decoupling between Main Street and Wall Street and the banks will have to be bailed out in perpetuity (until the currency is sufficiently debased as trigger a paradigm shift).

[kandace]

The best way to save the EU economy is to dam the Strait of Gibraltar and create a massive source of hydroelectric energy.