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They better or watch conditions deteriorate not only beyond what's tolerable but what's harsh enough to spark revolution.
Lapavitsas calls current conditions "scorched earth," "an absolute disaster," an economy that's "prostrate," unprecedented and getting worse. Discussions are ongoing about how to rise from the ashes.
The moment of truth draws closer. Other troubled Eurozone economies face their own days of reckoning. So does Germany. It's on the hook for endless billions in euro aid.
Good money is going down a black hole. Failure to supply it means forced public sector creditor haircuts. They're unavailable sooner or later.
Troubled Spain also keeps worsening. Revised data contracted more than previously reported. Sovereign debt approaches unmanageable levels. Portugal looks worse.
Five years after crisis conditions erupted, all levels of society across most industrialized countries are worse off than earlier. Debt gets more unmanageable. Servicing costs keep rising.
Among all OECD countries, sovereign debt exploded from 73% of GDP to 108% next year. It took the prior 15 years to go from 64 - 73%. Economists call this fiscal insanity.
Economists Carmen Reinhart and Kenneth Rogoff say debt matters . Delaying resolution assures tougher times. Drawing lessons from history shows how little was learned. An 80% or higher debt-to-GDP ratio represents a dangerous tipping point, they believe.
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