Posted Jun 17, 2012 by Martin Armstrong
The Greek elections were tight. However, the private citizens beat out the government workers and have decided that for Greece to leave Europe would be a disaster. The riots of public workers protesting the austerity have not ended. The great problem faced by Greece is how to create jobs during austerity to absorb the laid-off public workers. This has never been accomplished even once in history. The USA experienced this during the Great Depression, but it was the transition from farming to skilled labor. The WPA helped only marginally in the USA. That is not an option under Austerity. The ultimate event that worked – World War II.
Greece dodged the bullet. However, it is an M16 that is taking a shot not a single revolver. Greece will not succeed following Austerity. There will be too much pain. They have to raise taxes to comply with Austerity, and that will defeat creating new jobs to absorb the laid-off government workers. The fat lady has not even begun to sing, so what we face ahead is still an economic implosion. We just have a breath of fresh air to gasp before sinking back underwater.