Austerity continues its disastrous course in Europe
by David Atkins
Joe Weisenthal witnesses what austerity has wrought in Europe:
But everyone predicted that this austerity would be devastating for growth, and now we see that playing out in 2013 in a wicked way.Despite the obviousness of austerity's failure in Europe and the comparative health of the U.S. economy vis-a-vis the trouble Eurozone, anti-government forces have succeeded once again in dragging us down the same path via sequestration and other terrible, regressive ideas.
While the German economy is strong, the rest of Europe just stinks, as today's PMI numbers show quite nicely....
While Germany is benefiting from strong exports, the French economy is mired in a horrible slump...
A very severe leg down is taking hold, and there's nothing anybody is doing about it.
The ECB might at some point cut rates again, which should benefit marginally. But the lack of domestic demand remains brutal.
And now politics is getting worse, as the electoral crisis in Italy shows.
The question is: Will anyone address it?
Right now most of the rhetoric is about the importance of sticking with various austerity commitments. If nobody has the guts to change direction, there will be more Italies in the future.
It's not like there aren't good alternatives.