"The euro zone is caught between a rock and a hard place.
The region’s leaders have two options: Member nations can let countries default, write down their debts, renegotiate bonds to an affordable repayment level and take a painful hit now, or they can squash growth for years, perhaps even decades, all in the name of austerity.
Despite its leaders’ promises to defend the monetary union, the long delay in confronting the insolvency of its most deeply indebted members suggests that Europe is choosing the latter. That’s a decision that will plague it for a long time. The continent will begin to look like Japan..."
at http://pragcap.com/europe-setting-up-to-be-the-next-japan
The region’s leaders have two options: Member nations can let countries default, write down their debts, renegotiate bonds to an affordable repayment level and take a painful hit now, or they can squash growth for years, perhaps even decades, all in the name of austerity.
Despite its leaders’ promises to defend the monetary union, the long delay in confronting the insolvency of its most deeply indebted members suggests that Europe is choosing the latter. That’s a decision that will plague it for a long time. The continent will begin to look like Japan..."
at http://pragcap.com/europe-setting-up-to-be-the-next-japan
