Chris Williamson of financial information services company Markit commented:
"Austerity in deficit-fighting countries is having an increasing impact on demand across the region. Even German manufacturing output showed a renewed decline, attributed by many firms to weak demand from southern Europe.The Center for Economic and Policy Research (CEPR) directed by Mark Weisbrot and Dean Baker wrote in March:
"As such, it is hard to see where growth will come from in coming months, unless export demand picks up strongly from countries outside of the Eurozone.
"The ECB's latest forecast of merely a slight contraction of GDP this year is therefore already looking optimistic."
"The Eurozone crisis is being used to justify the erosion of workers' rights and the implementation of policies that would increase unemployment and have devastating ripple effects on the global economy for years to come.Canada's Finance Minister Jim Flaherty says Europe must get "on a path to sustainability" and stop "pursuing sideshows such as the financial transactions tax."
"The conventional wisdom of key international institutions holds that European governments’ excessive spending on social safety nets created unsustainable levels of debt that ultimately brought about the crisis. But the crisis was precipitated, in large part, by the same institutional failures that caused the financial crisis in the United States, including lax regulations on reckless bankers and a housing bubble.
"The current failure of the European Central Bank to guarantee countries’ debts, combined with austerity policies demanded by the European Union and the International Monetary Fund, have created a downward spiral that merely exacerbates the crisis."
Flaherty's own country is about to feel pain from following the path to so-called sustainability. The words are code, of course, for celebration of globalism where business and capital dominate unions and labour and holdings of wealth become concentrated, where law and order supersedes civil rights, where corporations rank above people, where environmentalism, with concern for the land and its people, is subservient to greed and objective science is abandoned, even suppressed.
There is no better example of this new order than what Air Canada demonstrated when it decided that a small group of insiders will split a windfall of $300 million — bringing ex-President Robert Milton's take to $100 million — while newly unemployed maintenance workers hit the pavement in search of jobs. Air Canada's jets can be maintained more cheaply in South America. (See Accusations Mount over Aveos Crash Ousting 2,600 Workers at The Tyee)
The Harper Government has already decided that Europe is not prepared to to follow their advice and Flaherty states,
"...we have decided not to provide additional resources to the IMF for the eurozone."In other words, we've got oil and gas, forests, metals and minerals to feed export markets for two, three, maybe four decades to come, so fuck you, we're all right, Jack!
FURTHER READING: There is an alternative to austerity, Ryan Avent, The Economist, May 1, 2012 Recommend this post