The IMF and German policies as well as those of Obama are absolutely brain dead. These arrogant people are LAWYERS who are clueless when it comes to economics. The IMF had acknowledged on Wednesday that it underestimated the damage done to Greece’s economy from spending cuts and tax hikes imposed in a bailout. These people do not understand the economy at all. This is the same result that would take place by imposing a gold standard – the economic destruction of society. As long as you have debt, you cannot have austerity. That seeks to support the value of the currency for the bond holders at the expense of the living standards of the people. Trying to sustain the value of MONEY creates DEFLATION on a grand scale and extracts the wealth of the people while handing it over to the bankers.
The ONLY person to ever understand this was Julius Caesar and they killed him for solving the problem (see Anatomy of a Debt Crisis). If the purchasing power of money rises, the value of assets and labor declines. If the purchasing power of money declines, we call it a boom or inflation and assets along with wages rise as does employment. Such a simple concept – but impossible to get across.
http://www.reuters.com/article/2013/06/06/us-imf-greece-idUSBRE9550M320130606
