{"id":579711,"date":"2010-05-26T14:36:15","date_gmt":"2010-05-26T18:36:15","guid":{"rendered":"http:\/\/blogs.reuters.com\/james-pethokoukis\/?p=3922"},"modified":"2010-05-26T14:36:15","modified_gmt":"2010-05-26T18:36:15","slug":"why-austerity-won%e2%80%99t-fix-global-budget-mess","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/579711","title":{"rendered":"Why austerity won\u2019t fix global budget mess"},"content":{"rendered":"<p>Bond guru <a href=\"http:\/\/www.pimco.com\/LeftNav\/Featured+Market+Commentary\/IO\/2010\/Bill+Gross+June+2010+Investment+Outlook.htm\">Bill Gross<\/a> makes this point:<\/p>\n<blockquote>\n<p>Tougher sovereign budgets produce government worker layoffs, pay cuts, reduced pension benefits and a drag on consumption and the ability of the private sector to accept an attempted hand-off from fiscal authorities. Recession becomes the <em>fait accompli<\/em>, and the deficit\/GDP ratio moves ever higher because of skyrocketing risk premiums and a plunging GDP denominator. In many cases therefore, it may not be possible for a country to escape a debt crisis by reducing deficits.<\/p>\n<\/blockquote>\n<p>Me: \u00a0This certainly seems to be the case with Ireland, as it has for most countries trying this path to escape a debt trap. As I point out in this <em><a href=\"http:\/\/www.weeklystandard.com\/articles\/how-pay-down-debt\">Weekly Standard<\/a><\/em> piece I wrote, the best way to solve a sovereign debt problem is by cutting spending and boosting economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bond guru Bill Gross makes this point: Tougher sovereign budgets produce government worker layoffs, pay cuts, reduced pension benefits and a drag on consumption and the ability of the private sector to accept an attempted hand-off from fiscal authorities. Recession becomes the fait accompli, and the deficit\/GDP ratio moves ever higher because of skyrocketing risk [&hellip;]<\/p>\n","protected":false},"author":1063,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-579711","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/579711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1063"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=579711"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/579711\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=579711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=579711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=579711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}