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Greece Falls Into 'Death Spiral': Rising Debt, No Growth
I wonder how long this ‘death spiral’ can go on - weeks? months? Possibly weeks.
Here’s the mainstream saying what we’ve been saying for months.
Reuters,
3 October, 2011
Drowning in red ink, Greece has nowhere to turn to revive the economic growth that might put its debt on a sustainable trajectory, reassure angry foreign creditors and offer hope to its recession-weary citizens.
Instead, the country finds itself in a vicious circle—a death spiral, some would say—in which it is borrowing ever more to keep up on its existing debts, crushing growth in the process and thereby worsening its all-important ratio of debt-to-gross domestic product.
Springing the debt trap would not be a miracle cure either: a manageable level of borrowing is a necessary but not a sufficient condition for Greece to start restoring competitiveness and resume growth after three years of economic contraction.
For article GO HERE
I wonder how long this ‘death spiral’ can go on - weeks? months? Possibly weeks.
Here’s the mainstream saying what we’ve been saying for months.
Reuters,
3 October, 2011
Drowning in red ink, Greece has nowhere to turn to revive the economic growth that might put its debt on a sustainable trajectory, reassure angry foreign creditors and offer hope to its recession-weary citizens.
Instead, the country finds itself in a vicious circle—a death spiral, some would say—in which it is borrowing ever more to keep up on its existing debts, crushing growth in the process and thereby worsening its all-important ratio of debt-to-gross domestic product.
Springing the debt trap would not be a miracle cure either: a manageable level of borrowing is a necessary but not a sufficient condition for Greece to start restoring competitiveness and resume growth after three years of economic contraction.
For article GO HERE
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