A scathing assessment of the lack of progress in Greece, other PIIGS and the failure of the IMF. My thanks to Brent for the tip.
A month ago I talked about this in a post titled "Send in the Clowns". I quoted a BIS report.
"What central bank accommodation has done during the recovery is to borrow time – time for balance sheet repair, time for fiscal consolidation, and time for reforms to restore productivity growth. But the time has not been well used, as continued low interest rates and unconventional policies have made it easy for the private sector to postpone deleveraging, easy for the government to finance deficits, and easy for the authorities to delay needed reforms in the real economy and in the financial
system. After all, cheap money makes it easier to borrow than to save, easier to spend than to tax, easier to remain the same than to change."
Whole societies are being wrecked, needlessly.God help us all where this is going - the blowback against the elites is going to be epic. Babies will be thrown out with the bath water. There will be hell to pay.
A month ago I talked about this in a post titled "Send in the Clowns". I quoted a BIS report.
"What central bank accommodation has done during the recovery is to borrow time – time for balance sheet repair, time for fiscal consolidation, and time for reforms to restore productivity growth. But the time has not been well used, as continued low interest rates and unconventional policies have made it easy for the private sector to postpone deleveraging, easy for the government to finance deficits, and easy for the authorities to delay needed reforms in the real economy and in the financial
system. After all, cheap money makes it easier to borrow than to save, easier to spend than to tax, easier to remain the same than to change."
Whole societies are being wrecked, needlessly.God help us all where this is going - the blowback against the elites is going to be epic. Babies will be thrown out with the bath water. There will be hell to pay.
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