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George.
03-03-2010, 11:47 AM
Greece is about to slash spending and do something about its deficit.

The effects of having to do so in the middle of a recession will be on display soon, and will last long. Perhaps this will conclude the "debate" about deficits in places that do not have to do so.

TomF
03-03-2010, 01:01 PM
I wouldn't count on it, George; it's a True Faith.

John Smith
03-03-2010, 01:02 PM
Guess we'll see how it works.

What's their defense budget?

George.
03-03-2010, 01:08 PM
Probably too big, with Turkey paranoia and all, but their real problem is domestic spending. Goldman's creative accounting didn't help either. :D

Kaa
03-03-2010, 01:11 PM
...but their real problem is domestic spending.

Their real problem is that they can't inflate the debt away.

Kaa

George.
03-03-2010, 01:31 PM
So if they could, the deficit would not require urgent slashing?

SMARTINSEN
03-03-2010, 02:17 PM
Their real problem is that they can't inflate the debt away.

Kaa

That is always a recourse for the Americans, though.

George.
03-03-2010, 03:28 PM
In part. In a funny way, America is China's yokemate, as much as Greece is Germany's, and cannot devalue its way out of trouble; the joys of a "common currency." :D