The Coming European Debt Wars - Defend Democracy Press
Actvism Munich Editorial Pick of the Day: Michael Hudson via DefendDemocracy
Notable excerpt from the article:
"All these debts are unpayably high because most of these countries are
running deepening trade deficits and are sinking into depression. Now
that real estate prices are plunging, trade deficits are no longer
financed by an inflow of foreign-currency mortgage lending and property
buyouts. There is no visible means of support to stabilize currencies
(e.g., healthy economies). For the past year these countries have
supported their exchange rates by borrowing from the EU and IMF. The
terms of this borrowing are politically unsustainable: sharp public
sector budget cuts, higher tax rates on already over-taxed labor, and
austerity plans that shrink economies and drive more labor to emigrate."
