Euro crisis solved? I don't think so!

by Larry Edelson

Many already think that the European sovereign debt crisis is passing. That the latest bond deal and bailout for Greece solves everything. But as far as I'm concerned, nothing could be further from the truth.

First, severe austerity measures do not create growth. So there's no way Greece can grow its way out of its debt morass, even after the latest debt write-downs.

The proof is simple math. Before the Greek crisis flared up, debt-to-GDP in Greece stood at 120%. Today — and I repeat, even after all the write-offs — Greek debt-to-GDP stands somewhere north of a whopping 160%.

That's more than 40% higher than it was at the beginning of the crisis — and the austerity measures are literally causing the Greek economy to implode, creating some of the worst social chaos we have seen in modern times.

Second, Italy, Portugal and Spain still remain vulnerable dominos. Each and every one of them is in hock way over their heads. And each and every one of them is just beginning to feel the impact of austerity measures.

Unemployment among youth is as much as 25%. Corporate and personal bankruptcies are surging. Social discontent is on the rise again. And tensions between countries within Europe are as high as ever.

Source: Uncommon Wisdom, Monday, March 12, 2012