On the basis of simple macroeconomic theory it was widely understood (and especially on this blog here, here, here, and here) that a severe austerity policy could not succeed and would bring Greece on the edge of chaos. Only the Eurocracy members and the European political class (mostly the same) thought otherwise.
Now the Spiegel Online reports that: “The austerity measures that were supposed to fix Greece’s problems are dragging down the country’s economy. Stores are closing, tax revenues are falling and unemployment has hit an unbelievable 70 percent in some places. Frustrated workers are threatening to strike back.”
Nikos Meletis, a shipbuilder they quote, concludes:
“Things are starting to simmer here. And at some point they’re going to explode.”
Read the whole paper here.