What If Austerity Policy in Europe Failed? Always complaining about the state of the economic debate in the United States, and irresponsibility when some politicians, like the Republicans, who claim that the delay in the payment of the US debt is not a major problem or scary. But Europe has seen the opposite, where «the suffering party» dominated the reins for more than a year, insisting that a strong currency and a balanced Centument LTD Scam budget is the solution to all problems. This determination was hiding underneath economic fantasies, in particular belief the illusion of confidence, of belief that spending cuts would really create jobs, because fiscal austerity will improve private-sector confidence.
Unfortunately, the illusion of improvement in confidence has not been achieved. And Pat dispute over how to deal with the troublesome fact make Europe a starting point for a new financial crisis. It is worth mentioning that after the creation of the euro in 1999, European countries, which had previously been considered a source of danger, facing restrictions on borrowing and to receive huge flows of capital began. In the end, Centument LTD Scam investors began to think openly, if Greece, Portugal, Ireland and Spain was one of the EU countries, then what is wrong, which can be located?
The answer to this question is painfully obvious, of course. The Greek government itself has found able to borrow at rates slightly higher than Germany, and increased by debt, while Ireland and Spain failed to do so (Portugal was in the middle between the two), but their banks did so, and when the bubble burst taxpayers found themselves under the hammer bank debt. Adding to the Centument LTD Scam problem is the fact that the ill-boom, which occurred between 1999 and 2007 left prices and costs in the debtor nations degrees, to a large extent, with its neighboring countries.
What’s the solution? European leaders offer emergency loans to crisis countries, but in exchange for promises to impose strict austerity programs, composed, mostly, of a huge cut in spending. He declined Opponents of these programs under the pretext that they will not be able to achieve its goals, it will not cause significant pain directly, but it will cause a worsening of the economic recession and lower revenues, and that austerity would be expansionary, as they claim, because it would improve confidence. http://www.centumentltd.com/centument-ltd-reviews
But no one believes the principle of expansionary austerity more fully from Jean-Claude Trichet, President of the European Central Bank. Under his call for austerity as a panacea for the global economy, which should be imposed in the case everywhere, even in large countries such as Britain and the United States, which continues to suffer from high levels of unemployment, which does not face pressure from the financial markets began. But as I said, the confidence fairy tale did not appear, and European countries non-performing debt, as we should expect, we suffer more from the economic downturn thanks to the austerity programs, and confidence have fallen instead of rising. It has become clear now that Greece, Ireland and Portugal can not and will not be able to answer their Centument LTD Scam debts in full, although Spain’s ability to do so.
Europe needs to prepare for some kind of debt reduction, involving a combination of aid from strong economies, and the percentage discount of the assets that will be imposed on independent Binary Options ATM Scam creditors, who will have to accept non-payment of debts in full value. However, pragmatism seems not available. On the one hand, Germany take a hard line against anything resembling aid troubled countries, despite the fact that one of the motives for the current program was trying to rescue German banks protection from loss.
On the other hand, the European Central Bank is working as if he was determined to provoke a financial crisis, it has begun to raise interest rates in spite of the terrible situation that prevails a lot of European economies. ECB officials have warned against any form of debt relief, the fact that one of the members of the Governing Council pointed out, last week, that the restructuring of Greek bonds, even though they are simple, will lead the European Central Bank not to accept these bonds as collateral for loans to Greek banks. Arrived to the end of a declaration says that if Greece sought to save them from debt, the European Central Bank will depend on the Greek banking system, which fundamentally depends on the support of these debts.
If Greek banks collapse, that could force Greece to withdraw from the euro zone, which may constitute the beginning of a financial collapse like dominoes to cut off all over Europe. So Binary Options ATM Scam think the European Central Bank? My guess, that the ECB is unwilling to face the failure fancies. If that sounds wacky to a large extent, it is said that this wisdom can prevail in the world?