European leaders - "Water might be wet"

-
From the NY Times (an article charmingly titled "Austerity is not enough")
Bowing to mounting evidence that  austerity alone cannot solve the debt crisis, European leaders are expected to conclude  this week that what the debt-laden, sclerotic countries of the Continent need are a dose of economic growth.
A draft of the European Union summit meeting communiqué calls for ‘‘growth-friendly consolidation and job-friendly growth,’’ an indication that European leaders  have come to realize that austerity measures, like those being put in countries like Greece and Italy,  risk stoking a recession and plunging fragile economies into a  downward spiral.
 Really?
Really?
Earth to Captain Obvious - This has been somewhat remarkably and ridiculously obvious from Day 1 (or, if you're Paul Krugman, from the beginning of the Grand Experiment).  As I've mentioned elsewhere, if you don't have control over your own currency (hello EU countries), then there is absolutely no way that the public sector and the private sector can de-leverage at the same time, if you are not growing!
Read that again.  Think about it. Its blindingly obvious to me, to you, and to everyone, and it seems, finally to the EU leaders.

A welcome dose of reality...

Comments

Post a Comment

Popular posts from this blog

Cannonball Tree!

-
Image
Spotted this one just outside the Ravindra Kalakshetra in Bangalore .  Its called the Cannonball Tree , but is - technically (i.e., in Latin, if thats your metier) - Couroupita Guianensis , or ನಾಗಲಿಂಗ ಪುಷ್ಪಾ  in Kannada. The fruits look like Cannonballs (well, d-uh), and the flowers are really quite amazing, and pretty ludicrously distinctive...
Read more

Erlang, Binaries, and Garbage Collection (Sigh)

-
Image
The nice thing about garbage-collection is that it is makes memory management absolutely transparent to you Of course, the above is true right up to the point when it stops being transparent, at which point it does a phase change from nice to clusterf**k of biblical proportions .  There are entire posts, books, and suicide notes that have been written about this, and I have no great desire to add to them, save with the minor comment that paranoia about garbage-collection is still justified , albeit only in the edge-cases for most people. That said, I'll give you that Erlang GC is in many ways much, much better positioned in this regard than, oh, Java, but it still rears up and bites you in the butt when you least expect it. ( More information about Erlang's GC vis-a-vis Java here , and Jesper's truly excellent description of Erlang's GC here ).  A story from the past should serve to illustrate this. Once upon a time, in a magical land far far away - well, Her
Read more

Visualizing Prime Numbers

-
Image
From Jason Davies , we have El Patron de Los Primos , probably one of the coolest prime number visualizer that I've seen.  For every Natural number, he draws a periodic curve that intersects at that number and each of its multiples.  Needless to say, prime numbers are touched by only two curves (itself and 1 ). You can scroll to the right, and move up the prime food change. (The image above is a screen grab.  Go here to see the actual thing)
Read more