quarta-feira, 30 de março de 2011

a glimpse into the future

«[...] A rescue package will be put together by the ECB and the IMF with them effectively controlling the economy, spending and austerity measures. These will be much more severe than those planned by Portugal’s’ Socialist ruling party. The IMF in their 2010 report on sovereign debt see Portugal’s public spending growing by no more than 0.5% over 20 years with the annual deficit being reduced to 6% by 2020 with 80% of the reduction happening by 2013. This can only be achieved by massive cuts in public services, wages and jobs with a corresponding rise in taxes. Of course as we have seen in the case of Ireland and Greece this only further weakens an economy and drives the deficit wider and creates a larger debt problem which is answered by more cuts. It is a race to the bottom which will impoverish an already poor country. [...]»

[1] --- Portugal: the prospect of a full bailout and more austerity looms in 2011, LeftBanker [Dezembro 2010]