Where is the Money to Finance Deficits?

Europe’s Economic Contraction Continues As Core Succumbs To Peripheral Weakness | ZeroHedge.

A plan is coming together to buy time so that Spain and Italy can reform their economies, but the proverbial fly in the ointment is that the whole continent is slipping into recession. Bond buying programs, firepower, firewalls and bazookas are great, but the economic fundamentals are rapidly deteriorating. The politicians and bureaucrats always seem to be a step behind because they are operating from rosier forecasts than the reality on the ground.

The bottom line is that recessions lead to decreased tax revenues, and every cent in projected revenues that does not materialize is more help that each country needs.

 

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