Economia portuguesa

Portuguese bond yields reached historical lows this week – unimaginable only a few short months ago. Surely this must be a vindication of the prevailing orthodox policies of reducing government expenditures and raising taxes as part of the government’s austerity program in order to secure external funding. Right? As proponents of a comprehensive and, as much as possible, orderly debt restructuring program for the weakest Eurozone economies, we beg to differ. The following graph seldom makes the news, but in our view is critical to understand what has been happening in the Portuguese economy in recent years and gauge the sustainability of the current situation..." (Zero Hedge analisa as "boas notícias" sobre a economia portuguesa). E sublinha: "Looking back at history, low bond yields and burgeoning external financing is not what follows after a relatively small, little diversified and highly indebted country goes bust without any significant debt restructuring. Is the current situation in Portugal the result of a successful economic policy, or are we merely setting the stage for bigger financial problems in the future? Sacrifice is hard, and it must have a reason.