from Wealth Cycles
Reuters put out a piece last week claiming that the unelected Goldman Sachs International Advisor, Mario Monti, who happened into the Italian Prime Minister position, “has taken the gloves off in his fight to save Italy from disaster.” This is quite misleading.
Meanwhile we have written about the fact that austerity in the European Union (EU) is virtually nonexistent. (See What Austerity Measures?) As a reminder, austerity has nothing to do with taxation, and everything to do with a reduction in spending. To live austerely means to live far below one’s means. This especially pertains to governments, spending far less than they take in.
Here is the truth on austerity in Italy. Rate of increase in debt: