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Self-evident though this may be, this insight has eluded such global economic institutions as the International Monetary Fund, as well as Europe's economic hegemon, Germany, when dealing with the depression that has devastated southern Europe, and Greece in particular.In confronting the economic crisis that began with the 2008 implosion of Wall Street, nations such as Greece and Spain were unable to bolster their economies by devaluing their currencies, which would have made their products more competitive. Cowed, that's what the governments of Greece and Spain did.With Germany continuing to insist on even deeper cuts, their economies stayed tanked.Greece has now experienced three years of 1932-levels of depression, with between 25 percent and 27 percent of its workers unemployed and youth unemployment stuck at a seemingly perpetual 50 percent, spiking once to 61 percent. In both Greece and Spain, much of the public has turned against the politics of austerity and the mainstream political parties that enacted them. In both nations, new parties of the left – Syriza in Greece, Podemos in Spain – lead in the polls.
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