Friday, August 5, 2011
Euro Debt
With weak growth there's no way Club Med countries can stay in the Euro. It's not simply a matter of balancing a budget today, governments need revenue and that comes from growth. I suspect what 'speculators' are attacking in the financial markets is Italy's moribund growth prospects as much as anything. And under the ECB staightjacket, along with domestic hostility to immigration and negative fertility rates, that won't change.
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