Amitabh Pal - Austerity is Killing Europe
April 27, 2012 The austerity fetish of those making economic decisions is killing Europe’s economy.
The last few days have provided further proof.
“Spain officially slipped back into recession for the second time in three years Monday, after following the German remedy of deep retrenchment in public outlays, joining Italy, Belgium, the Netherlands and the Czech Republic,” the New York Times reported this week.
And more bad news has followed.
“Britain slid back into recession in the first quarter of the year, according to official figures released Wednesday, undercutting the government's argument that its austerity program was working,” says today’s Times.
But those in charge seem to be eternally clueless.
“We must persevere,” said Mario Draghi, president of the European Central Bank.
Draghi’s obliviousness becomes more understandable when you look at his background. From 2002 to 2005, Draghi was managing director and European vice president of Goldman Sachs. His outlook represents that of a hard-hearted investment banker, more interested in listening to the concerns of the financial sector than of the people. Goldman Sachs has been a master of putting such folks in charge of the global economic system.
‘They’re simply the best at building political networks, and that has earned them the name ‘Government Sachs,’ ” Marc Roche, author of a book on the firm, explained to the New Internationalist magazine. “In Europe they stay clear of ex-politicians; instead they go for ex-European Commissioners and former central bankers. These work as door openers. They help the bank to get access to those in power, and they show them how the EU works.”
Read More:
