They have come out and admitted that their austerity program being applied to the EU is the wrong thing to do..They have discovered finally that their prediction of a 1% reduction in spending would only reduce GDP by .5%. Well OH golly gee we were wrong it is really as much as a 1.9% reduction for every 1% in spending.. Do you think that all those pitchforks in the streets or was it the increased sale of guillotines that caught their eye.
If you took time to notice how they were cutting the budgets , they were concentrated in social services area of government,,wages, retirements, health care, welfare, etc.. And they wonder why their assumptions were so far wrong... Any damn fool who has read some economics knows that the most stimuli from government spending is through social programs.. gains of 1.5 to 2% are the average, versus military spending which comes in at 1%.
Then you look at what they have been doing, bailing out banks , both in the EU and the US too. How much bang do they get for those bucks..0 zip nadda .. the banks sat on the money and put nothing into the production factors they were supposed to fund.. they even lent it back to the FED and got paid 3% interest on money the got for next to nothing..
The only money out of all the Trillions spent to turn things around only around 400 billion got put into infrastructure and hence we got a little bounce in GDP and a slight drop in unemployment..
It should have been no surprise to the IMF that their Austerity programs didn't work ,,THEY NEVER HAVE WORKED...They destroyed most of the Latin American economies in the 80's and 90,s and we can logically assume that it is now the EU and the US's turn in the barrel.
The problem facing us is that either party that wins the coming election is going to play the Austerity game.. even though the evidence from time immortal that it doesn't work is out there.. Obama may cut some less than republicans but SS and Medicare are in danger.
For sure if this nation is stupid enough to put Romney in office kiss the future of Social Secutiry , Medicare, Medicaid and pensions goodbye..
I WOULD SUGGEST WE HAVE ONLY TWO CHOICES, TO GET SCREWED WITH OBAMA OR ROYALLY SCREWED WITH ROMNEY. WHOOPIE