Greece "Austerity" Kicks In, Hammers Economy

This is what happens when you screw the middle class to save the Banksters. Greek recession deepens as austerity cuts kick in:

The national statistics office said the downward spiral accelerated in the second quarter as a barrage of wage and pension cuts plus tax rises sapped consumer demand.

A "significant" fall in consumption and lower investment saw the economy shrink 1.5 percent, it said, following a contraction of 0.8 percent in the first quarter to extend a recession that began in the middle of 2009.

The latest figures put the economy on track for a forecast contraction of 4.0 percent this year.

On a 12-month comparison, Greek output was down 3.5 percent in the second quarter after a fall of 2.3 percent in the first.

Worse still, and promising more pain to come, unemployment shot up to 12 percent in May from 8.5 percent a year earlier, with more than 600,000 people out of work, the statistics office said.

Less economic activity, less money available to pay back anyone. The reports says 17% of businesses in Athens have shut their far.

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