Austerity Isn't Dead, It Will Come Back With A Vengeance

Zero Hedge:

Authored by Jonathan Rochford via NarrowRoadCapital.com,

There’s been a steady stream of recent articles claiming that austerity is dead. The “magic” of false measurements, animal spirits and money printing are used to convince the gullible that there is an easy way out.

This one from James McCormack at Fitch argues that populist politicians are responsible for killing off pragmatic economic policy.

Whilst I don’t deny the medium term tide is against austerity, the very high levels of sovereign debt mean austerity will return.

To understand why this must happen we need to deal with the three key fallacies that austerity opponents are propagating.

Cont.....