Size matters

European central bankers and the US Republican Party don't understand percentages. It's that basic.

When the New York Times headlines a story, "Despite Push for Austerity, European Debt Has Soared", they should really say, Because of Push for Austerity...

The size of debt only matters when measured against the size of GDP. No matter what you do to the numerator, the denominator is essential to understanding what policy to adopt against debt. Europeans and Republicans are trying to shrink their way out of debt. They are choosing masochism over effective economic policy.

Of course, it's all the little people who do their suffering for them.