On 30 September 2010, one day after the strikes and demonstrations across Europe with Brussels at the center, Moody’s Investor Service downgraded Spain’s debt, making it more difficult and costly for the government to borrow. The IMF immediately joined EU to criticize S & P, Fitch and Moody’s for the damage they have inflicted on government financial stability ever since the Greek crisis erupted.
So far, the EU and IMF have been throwing money at Greece and the periphery and they are prepared to keep on doing the same thing, without considering that the formula has not worked and will not work except to create a poorer middle class and labor force owing to absence of economic growth. Economic growth cannot come by recycling money from the pockets to taxpayers to the pockets of bondholders.The EU and to a lesser degree the US will drive the economy into the ground by following monetarist policies. The only solution is heavy investment in the 'real economy', especially in labor-intensive enterprises to absorb the surplus labor force and raise consumption. Otherwise, we are headed for a double-dip recession after the 2012 US elections.