"Unemployment in the Eurozone has reached a record high, increasing to 11.8 per cent in November, the EU's statistics office reports. Spain and Greece are suffering the most with roughly one in four workers unemployed."
"Since last autumn the Portuguese, too, have joined the swelling ranks of Europe’s discontent. The government stepped up austerity last September with more steep tax increases and public sector job cuts."
Somehow, pulling money out of the economy with austerity, and throwing 1 out of 4 into unemployment is supposed to raise the revenues to pay for additional loans to pay off current loans.
Unemployed people and shut down businesses don't pay taxes! Austerity becomes a dog chasing its tail. Declining revenues incapable of paying existing debt, and more debt to cover the shortfall. LIke the U.S., the Eurozone needs to dump borrowing money into existence and begin spending money into existence equal to the idle productive capacity of the Eurozone to utilze it. It's a system that once worked very, very well.
Probably our imitating the Eurozone is rather stupid when the results of the policy are right before our eyes.
Under the privatizied global monetary system, all money is brought into being through debt. Governments borrow non-existent money through fractional reserve banking so they can print it. There comes a time when the accumlated debt simply can't be repaid. The 300 year run of doing that has reached its payback limit.
Retired Monk - "Ideology is a disease"