17 Apr '12, 4pm

Spain's impossible austerity programme | James Meadway

Spain's impossible austerity programme | James Meadway

The impossible demands now placed on Spain are causing market panic. That panic is leading to a drying up of credit, which in turn causes interest rates to rise. When a similar panic started before Christmas last year, the European Central Bank (ECB), under its new President, Mario Draghi, broke its own rules and authorised the flooding of European financial markets with cheap credit – the so-called “Long Term Refinancing Operation” (LTRO). The plan was to stuff banks so full of cheap cash that their borrowing and lending would continue, reducing the pressure on interest rates.

Full article: http://www.neweconomics.org/blog/2012/04/17/mission-impos...


MT @theneweconomics: Latest YouGov poll showing a sharp decline in support for austerity

MT @theneweconomics: Latest YouGov poll showing...

neweconomics.org 24 Apr '12, 4pm

After giving the Coalition the benefit of the doubt, more and more of us are waking up to the reality of austerity Britain...