BRUSSELS (Reuters) - The euro zone's overall budget gap fell last year but deficits in Greece and Portugal were higher than expected, underlining the challenges presented by their austerity programs.
The 17-member euro zone is struggling to restore confidence in its public finances and tackle a debt crisis that has forced Greece, Ireland and Portugal to seek emergency funding from the European Union and the International Monetary Fund.
When Europe adopted the Euro they accentuated the channel flow, the -nlog(n) {n=1,N} set up in Shannon theory. The periphery is just that, the periphery of the flow with more branches operating at a faster transaction rate with smaller quants. During a contraction, the number N reduces, and since the -nLog(n) have to remain within an integer to meet constant imprecision, so for the periphery, the quants become smaller, the rates faster; but reserves increase along the channel. Greece will decrease its deficit, but through the mechanism of default. But so what? The fiction that bondholders don't take defaults is just that, a fiction.
Shannon theory rules macroeconomics.
The economies, in this case the government channel across Europe, will tolerate nearly infinite amounts of volatility undr change conditions in order to maintain constant imprecision at the stable conditions.
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