Austerity generates unemployment, poverty and political instability

Austerity is a big mistake. The big damage is for the middle class and the workers. Austerity leads to recession; orthodox politicians and economists are responsible of that big error. They developed a theorist conception that attributes at money the cause of inflation; but this is not true. The true cause of inflation is the human egoism; the unlimited desire of wealth of speculators.

Money is only metal and paper without intrinsic value. Nations can issue without limitations all the amount of national money ---their own currencies--- that their economies need. Money is only a mean of interchange, nothing else. Observe what happen when people have more money; when people have more money is happy; buy more food, clothes, cars, travel, etc; also observe the opposite phenomenon and you will obtain the right answer about what is good and what no.

If you give more money to people ---by the increase of salaries, pensions, more and best public services--- you improve the quality of life of people, because this stimulate production and the goods and services supply increase. If, on the contrary, you restrict the amount of money in circulation you lead people to poverty and stop the economy.

The economies of Greece, Italy, Spain and Portugal do not need to restrict their public spending; if the governments of those countries insist in imposing the program of austerity, it is very likely a deep political change in those countries, because of the population pressure. Perhaps new actors will appear. New actors that are unknown in this moment but that might provoke a complete political change in those nations. A similar phenomenon happened in Latin America in the 90s years as a consequence of the economic and political impositions of the International Monetary Fund, IMF and the World Bank.

The European Central Bank, the International Monetary Fund, IMF and the authorities of the European Union are the big obstacles for the European recovery.

Soon it might come a moment when Greece, Italy, Portugal and Spain have not other option than to abandon the euro and comeback to their national currencies. It will depend of the European Central Bank, the IMF and EU attitude.

Money is only metal and paper without intrinsic value

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