May 2 (Bloomberg) -- Greece is poised to announce an agreement with euro-region allies and the International Monetary Fund on a 120 billion-euro ($159 billion) bailout as protests mount against budget cuts that are a condition for the rescue of the debt-stricken nation...
Papandreou’s government may have agreed to additional budget cuts worth 24 billion euros, or around 10 percent of GDP, to secure the second and third year of the aid, Greece’s NET Radio said. Measures may include a three-year wage freeze for public workers and the elimination of two of their 14 annual salary payments, the ADEDY union said after a briefing with Papandreou on the talks..." --
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Comment: The bailout package is on its way. Now it is up to the Greek to tighten their belts. Won't be fun at first. Yet after a while, if they manage to do it, a miracle is in the making. Imagine: a drastic downsizing of government by a government! That is what the plan calls for. And if the Greek people manage to do it, growth and prosperity will come to Greece sooner and larger than most expect. Then it becomes clear how wrong those (mainly US) economists are who in their Keynesian blindness prophesize that downsizing of government would cause recession and unemployment. They'll be proven wrong much sooner than they think, given that the Greek are smart enough (and most of them are) that the time has come to change the game.
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