Fall of the Dutch

[kandrathe]

This doesn't make any sense to me. Even you have admitted that this is not the right time for austerity. If the Dutch start spending more (the only possible implication of breaking the "hard line"), then surely this can only help boost economic growth everywhere else in Europe? The "wounds" are not beginning to heal in Europe. To the contrary, economies are beginning to shrink, because every government is pursuing insane "contraction during a contraction" policies. Since nobody can devalue, the only way out of the trap is for rich (Netherlands, Germany) Eurozone countries to run deficits. In this context, a hard line is precisely the opposite of what needs to be done.

I've said that the right kind of spending is what will elevate them out of the recession. But, yes, it is the wrong time for hard line austerity, except in diverting unproductive spending into things that will help build economic growth. Unlike our government who spends their money on hookers, and lavish costume parties while Rome is burning.