[Gocamino] Sobre La Crisis Mundial
Hathor821 at aol.com
Hathor821 at aol.com
Sat Mar 10 12:09:30 PST 2012
Thanks Grant for sharing this with us!
Scary...this is what happens when politicians think with their kidneys.
;)
Patricia de Miami
In a message dated 3/10/2012 12:35:55 P.M. Central Standard Time,
gaspangler at hotmail.com writes:
Sobre La Crisis Mundial..
Spain and Italy must be watching what's happening in Greece and asking
themselves whether they want to go through this whole process of
negotiating for bailouts via austerity measures.
Both countries have already had a small sampling of the austerity measure
medicine. Spain recently implemented a meager 19€ billion in austerity
measures while Italy passed 30€ billion in austerity measures in 2011...
hardly a drop out of their respective 1.06€ trillion and 1.5€ trillion
economies.
Yet, even these tiny moves resulted in protests and riots. One can only
imagine what Spanish and Italian politicians are thinking as they witness
the widespread civil unrest, country-wide strikes, and economic depression
that have occurred in Greece as a result of that country's full commitment
to the EU's austerity measure demands.
Spain's official Debt to GDP is only 64%, but its private sector debt is
at an astounding 227% of GDP. And the Spanish banking system is leveraged
at 19 to 1 (worse than Greece).
Moreover,the country is already experiencing an economic Crisis with an
unemployment rate of 20+% and an economy that has been contracting since
mid-2011 (in fact Spain's GDP just actually went negative in the first
quarter of 2012)...
So... we must consider that it is highly likely the option of simply
defaulting
is being discussed at the highest levels of the Spanish and Italian
government.
Should either country decide that austerity measures don't work and it's
simply
easier to opt for a default, then we are heading into a Crisis that will
make
2008 look like a joke.
Well, Spain just woke up and smelled the coffee:
Premier Mariano Rajoy has refused point blank to comply with the austerity
demands of the European Commission and the European Council (hijacked by
Merkozy).
Taking what he called a "sovereign decision", he
simply announced that he intends to ignore the EU deficit target of
4.4pc of GDP for this year, setting his own target of 5.8pc instead
(down from 8.5pc in 2011).
With condign symbolism, Mr Rajoy dropped his bombshell in Brussels after
the EU summit, without first notifying the commission or fellow EU
leaders.
Indeed, he seemed to relish the fact that he was tearing up the rule book
and disavowing the whole EU machinery of budgetary control.
So... if you still think the Greek PSI matters in any way, you're not
thinking
past the next 24 hours. Spain has just told the EU to "shove it." Having
seen
Greece enter a depression and get pushed around by Germany and France for
two
years, Spain's just told the EU that it's not going that route.
So... if Greece, whose economy is roughly the size of Massachusetts,
nearly
took down the European banking system... what do you think will happen
when Spain decides to it doesn't want to play ball and would rather just
default.
Fuente: www.gainspainscapital.com
Buen Camino,
Grant
http://www.ElCaminoSantiago.com
Resources for the Pilgrimage Road to Santiago
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