Unless something changes in the next 24 hours, I expect we will hear more and more talk about default, not only of Greece but of other countries and of banks.
Mr. Krugman and his allies believe that we can grow our way out of this recession like we have in the past few.
One must conclude that the EU’s new central planners are acting as class warriors by demanding that all losses are to be suffered by economies imposing debt deflation and permitting creditors to grab assets… If Greece does not draw a line here, it will be a victory for financial and fiscal aggression imposing debt peonage.
There are two ways out of this mess: default or monetary inflation.
How the EMU works, why it is failing, and why they will resort to fiat money printing to solve it.
Financial strategists do not intend to let today’s debt crisis go to waste. The basic model follows the former Soviet Union’s post-1991 neoliberal reforms: privatization of public enterprises, a high flat tax on labor but only nominal taxes on real estate and finance, and deregulation of the economy’s prices, working conditions and credit terms.