The last chance to rescue the euro

Paul Krugman:

Many discussions about how to stimulate growth amid austerity in Europe seem to see slow growth as an unfortunate side-effect of current policies. This misses the point that for some countries, it is the policy, writes Stephen Fidler.

If this article goes viral around the web, I wouldn't be surprised if the euro tanks and several European sovereign states' spreads blow out. I have busted several of them in another of a long series of "creative" economic forecasting schemes to fudge the appearance of "austerity". 

If this article goes viral around the web, I wouldn't be surprised if the euro tanks and several European sovereign states' spreads blow out. I have busted several of them in another of a long series of "creative" economic forecasting schemes to fudge the appearance of "austerity". 

By Daniela Schwarzer, who heads the research unit European Integration at the German Institute for International and Security Affairs, Stiftung Wissenschaft und Politik (SWP) in Berlin. Cross posted from Triple Crisis

George Soros, one of the most outspoken critics of Germany’s proposed austerity policies to solve the European debt crisis, said the euro is here to stay and will gain as other nations seek to devalue their currencies. Soros, who made US$1-billion shorting the British pound in 1992, said that while the causes of the euro crisis haven’t been solved, the acute phase of the turmoil is over. Germany will always do “the minimum” to preserve the currency, Soros said Thursday at the World Economic Forum in Davos, Switzerland. He forecast a “tense” two years for the euro region.

The Ernst & Young Item club reckon that, although the economy has escaped recession, it will grow by only 0.4% this year.

AUSTERITY in the euro zone has been under attack ever since the first economist representing the troika (IMF, ECB, EU) set foot on Greek soil. Actually, the troika may become more of a duoika (?), according to Athens News (via Tim Duy), because the one-sided emphasis on austerity is enervating the IMF.