Austerity has failed. You won’t see that in any of the headlines from the media propaganda machine, and for a very good reason: our intellectually bankrupt governments have no “Plan B”.
The evidence of the colossal failure of Friedman Austerity is both abundant and unequivocal. Greece was an insolvent economy in steady decline when its own “austerity” was commenced. After two years of austerity it was totally bankrupt, and the economy had been so completely destroyed that even after defaulting on 75% of its debt further default already seems inevitable. Austerity transformed an economic decline into one of the most rapid economic collapses in modern history.
Then there is the UK. It began its austerity campaign shortly after Greece, but its own economic collapse is proceeding on schedule. Its monthly budget deficits continue to widen, with the UK government recently reporting its largest one-month deficit ever for the month of February. Given that the entire raison d’etre of austerity is to shrink deficits, that statistic alone is proof of the complete and utter failure of UK austerity.
However, as an added “bonus” the UK’s people also get to watch their economy being destroyed through this economic masochism. Today the UK government announced the collapse in UK retail sales. Sales plummeted 2.3% in April from March. But keep in mind that number excludes inflation. Factor in double-digit inflation (thanks to “competitive devaluation” and endless “QE”), and the actual rate-of-collapse approaches 40% when expressed as an annualized number.
What was the explanation given by the mainstream media for this austerity-induced collapse in the UK retail sector? It rained in April. Yes, that must have been it. UK residents were unprepared for April showers. Perhaps they all lost their ‘brollys’?
Meanwhile, the newest member of Europe’s Austerity Club, Spain, has already announced that it will miss its 2012 deficit target, and that it will exceed its 2013 target by at least double. More austerity. More total failure.
It should be noted that I predicted from Day 1 that all of this austerity would be a total failure, one of the easiest “predictions” in history, since there were two reasons why there was a 0% probability of success. First of all these economies are already insolvent past the point of no return...
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