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Greek Cat Has An Answer For the Troika

The Saga of the Greek Cat and Austerity Cat

By two_kittehs

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Greek Tragedy

Greek Cat

Greek Cat

By two_kittehs

Troika’s Solution For Greek Cat

By two_kittehs

It seemed like the austerity cat had met his match when the Syriza government came to power in Greece. Not so fast, says the austerity cat.

For  Greece, there are no easy options, they are damned if they do and damned if they don’t. Although in my opinion, accepting a deal with more austerity just kicks the reckoning down the road. Without its own currency and with it the ability to set its own monetary policy, it is hard to see how Greece can get out of its debt trap. Five years of punishing austerity have shrunk the economy, increased unemployment. It is hard to see how this policy is good for the creditors either if they want their loans to be paid off. Or do they want to make an example of Greece so that the other indebted nations in the Eurozone like Italy  don’t dare follow Greece’s example.

Has the Austerity Cat met his Match?

Greek Kitteh stands up to the Austerity Cat

LoL by: two_kittehs

Austerity Cat is looking out for you

Austerity Cat is looking out for you

LoL by: two_kittehs (Picture by: Deebrio)

Austerity policies during a recession make matters worse, not better.  A lesson that the world learnt in  the aftermath of the Great Depression but seems to have forgotten in this century. What ails the global economy is the lack of demand, which the austerity policies have only exacerbated, take it away,Prof. Stiglitz.

With the recent elections in Greece, finally, someone with real political power is standing up to the conventional wisdom that austerity is good for the economy. You can keep  track of their progress, on the Greek finance minister’s blog.  I wish the new the Greek government all the luck, they are going to need it while navigating the shoals of the economy, including the debt and massive unemployment.