You too can be an IMF success story if you grind your population into penury by wearing the austerian hairshirt. And this little video (hat tip Nathan) has to skip over capture some of the extreme measures operating in Latvia, such as bankers taking souls as collateral for loans.
As Warren Mosler noted today in “The Eurozone Torture Chamber”:
Publicly, at least, they all still think the problem in the euro zone is that the public debts/deficits are too high. And to reduce debt the member nations need to cut spending and/or hike taxes, either immediately or down the road.
A good economy with rising debt and ECB support to keep it all going isn’t even a consideration.
They’ve painted themselves into an ideological corner.
And deficit spending, exacerbated by austerity, may nonetheless be high enough for it all to muddle through at current (deplorable) levels of economic performance.
This economic ‘torture chamber’ of mass unemployment can, operationally, persist indefinitely, even as, politically, it’s showing signs of coming apart.
The founders of the euro believed a single currency would work to prevent a third great war.
So they did what it took politically to get the consensus needed to create the euro. Ironically not realizing what they created to promote unity has turned out to be the instrument of social disintegration.