Ensemble. Or Not

The fabulous Ms B, who has been the music instructor as long at the kids have been at their local primary, somehow gets 200 kids to sing Christmas carols. In harmony.

Which is not  something the broader European Union capable of doing. Consider the right's agenda of slashing spending to reduce govt debt during a fiscal crisis and economic recession. Case Study #1: Greece, who will announce shortly the closure of 2,000 public schools. Nobody denies Greece gorged itself at the trough : we also agree that they need to get their debt:GNP ratio down, down, down. Exiting the Union an unpleasant option given the Western World's exposure to this pip squeak economy via aggressive lending.

So , then, what has happened to Greece since the German troika began 20 months ago? Unable to shift trade with a floating currency (euro) , unsurprisingly the Greece economy has collapsed 20%, and forecasted to recede a further 7% in 2012.  In 2010 Greece had about 140% public debt to GNP; Today it is 185%.

Greece doesn't produce anything the world really needs, other than sunshine and seaside property, so lenders should have never gone there. Italy, on the other hand , a different scenario : they do have a diversified economy and private wealth yet have been in the dull drums the last ten years with <1% growth.  This fine when the country can borrow at 2%; at 6-7%, where we are today , there is trouble. Unfortunately, again, austerity imposed and Italy's economy .. contracting.  Their debt ratio .. rising.