Madam, – The financial stimulus intended to aid the Greek economy will worsen the situation there. To see the “benefits” of vast amounts of aid or easy loans, look to Africa.
A decade of cheap easy money has reduced us to this sorry state and now we are about to step over the edge and into the abyss by taking on billions more in debt. The reason easy money does not help economics can be summed up in one word: politicians. The only stimulus that works is inward investment in the private sector. The evil twin to this strategy is borrowed money for the public sector.
The IMF has always been a stooge of US government policy and since US government policy is the financial stimulus – we know who to blame for what is about to happen to the European economy. Easy money is a curse.
How do I know? An African told me. I recommend the book Dead Aid by the author Dambisa Moyo. The solution to Europe’s problems is simple. Cuts, cuts and more cuts. We must learn to live within our means. Crucially, we must not allow the public sector to use bank bailouts as an excuse to resist fiscal rectitude. – Yours, etc,