‘The optimists are finally silent’

It would be nice to be optimistic about Europe, but it is nigh impossible. This critical piece in the Financial Times, for the umptienth time, explains the real reason behind the ongoing European economic stagnation.

European citizens must hope that their policy makers, in Frankfurt and in Brussels, will abandon further attempts to reassure us, and abandon their one-sided mantra of structural reform. The acute, pressing problem is aggregate demand.

This article is also very much worth reading. Europe is doing worse than the Great Depression.

In the context of overwhelming evidence, I find it incredible that policy makers still stick to the stale argument of austerity and structural reform. I am not a great fan of Bob Dylan, but this lyric remains astute:

Yes, how many times can a man turn his head
Pretending he just doesn’t see ?
The answer my friend is blowin’ in the wind
The answer is blowin’ in the wind.

Yes, how many times must a man look up
Before he can see the sky ?
Yes, how many ears must one man have
Before he can hear people cry ?
Yes, how many deaths will it take till he knows
That too many people have died ?
The answer my friend is blowin’ in the wind
The answer is blowin’ in the wind.

2 responses to “‘The optimists are finally silent’

  1. Thanks very much, Mr Polku, for this post. Here in Italy the combination of continued deindustrialization, deflation, high unemployment especially among youth, and lack of investment and consumer spending proves that you may be correct in writing that Europe is approacing the disastrous consequences of the Great Depression.

    With best wishes, Alfred Gannantonio, Parma (Italy)

    • Well, it is not only my assessment. I only combine things other people also say. But things are getting worse and worse I think, even though Draghi may finally understand now

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