I gave an interview today for SBS (Special Broadcasting Service), which is a national multicultural radio/television network in Australia. They wanted to know whether I thought the crisis in Europe had now stabilised given the Greeks avoided “chaos” by voting for New Democracy and more austerity. They also noted that the financial markets were turning on Spain and Italy. I responded by suggesting their question answered itself and that it would be better not to be seduced by the Euro elite spin that Greece is now firmly in the Eurozone and markets will stabilise with austerity. The reality is that the election outcome in Greece just ensures the Greek people will have to endure more debilitating austerity and their growth prospects are virtually zero. In that sense, they were let down by Syriza who promised the impossible – no austerity but retention of the Euro. Given the design of the EMU and the conduct of the ECB, as the currency-issuer, within that monetary union, austerity will be anti-growth and the problem will spread. But then the EC President Barroso is sick of outsiders lecturing the Europeans on how to run their economies. He said today – “this crisis was not originated in Europe”. It all depends on which crisis one is referring to. The Europeans have concocted their own crisis which made the initial “flu” originating in the US turn into something much more deadly. They are totally culpable in this and appear to require external education given the ham-fisted attempts they have made to solve the issue. I told SBS that the solutions proposed and implemented by the Euro elites to the non-problem merely exacerbate the actual problem which is the Euro itself.