Skip to comments.Spain is in 'total emergency’, the EU in total denial
Posted on 06/03/2012 7:39:52 PM PDT by Texas Fossil
After a Spanish exit from the euro, there would be nothing left to exit from.
Ive never actually heard the term total emergency before, at least not in the context of global economics. It sounds like the title of a disaster movie. When it is uttered in sober tones by the elder statesman of an advanced democracy to describe his countrys financial condition, the effect is rather startling.
The man who delivered this apocalyptic judgment, former Spanish prime minister Felipe González, being a socialist, might be expected to detest austerity programmes that require cuts to government spending. But there seemed to be few disinterested observers of Spains economy prepared to quibble with his assessment.
(Excerpt) Read more at telegraph.co.uk ...
Will there be capital flight to elsewhere in the world? Of course.
If anyone other than our Commie-in-Chief were in charge in the US, that flight would probably be to the US Dollar.
Now the question: How long have the players been planning this and are we capable of repelling the assault on our nation and the world economy.
We are not the protectors of the world economy, but if the US fails after the EU what are the consequences.
George Washington warned us against foreign entanglements in Europe. Is the nation so old that no one remembers his statements?
Who IS Spain? Government/Government Users? Catalan Opening?
Who IS the “U.S.” ?
Who IS “Greece” ?
Hug your kids and get ready.
Watch for present bank run to accelerate.
What DO you mean?
Thanks Texas Fossil.
Wouldn’t it be funny, in a sort of diabolical way, if the first and last REAL presidents of the USA were both George W?
Governments of Spain, Greece and yes of the US.
We have financial global entanglements. Have for many years. It got a lot more complicated and dirty since Smiling John Conley negotiated floating the dollar in the 1980’s. Stopped government conversion to silver.
Shudder to think of the consequences.
Other beneficiaries have been Switzerland (although the Swiss Franc has been driven up so much that the Swiss government has been forced to print to try and drive the Franc back down, it was killing their largely export oriented economy), the Canadian Dollar and the Australian dollar. Some benefit to certain South American countries that have commodity based economies but not quite so pronounced, Brazil for the most part.
I've been of the opinion that the Euro won't be allowed to fail and still am, but the level of almost hysterical rhetoric has gone mainstream, rather than remaining the purview of writers of blog headlines, so I'm going to have to take a long hard look at currency exchange rates tomorrow.
The Spanish folded like lawn chairs when the muzzies gave them a little push. Just drama queens, nothing to see here.
"Miss Me Yet?"
Spain just needs more “green jobs”. And unicorns.
Thanks for the perspective.
Ann Barnhardt has been warning for months about a collapse in the commodities trading market. Advising her customers of the past to maintain physical possession of their commodities.
And for the really wild stuff like derivatives, that is a real wild card.
Bank run? Explain. Where is it happening.
Shutdown vs. Government Extortion and/or Deficits.
I am certainly not laughing at this. It would be ironic.
Well, good gravy. After two WORLD wars, ... and Korea, ... and Vietnam? And now our marriage made in hell with China? Is that why you were careful to say "Europe" ? Because Washington would no doubt have been cool with ASIAN entanglements?
Frankly no, but I now the consequences of his demise.
“but the level of almost hysterical rhetoric has gone mainstream”
Because “We the People” whose vote is neutered, are closing wallets, big time. Wallet shutdown.
Well, those countries whose economies are based upon commodities are certainly in posession of them until sold and delivered. Food, oil, industrial and precious metals, etc.
The states within the US that have continued to do reasonably well have largely commodity oriented economies, too. Canadian provinces as well. “Old economy” stuff, tangible products that continue to have value for trade, necessities.
Not glamorous, no seven figure bonuses routinely handed out, just real. Reality appears to have become a sort of precious thing, financially.
We largely came from Europe in the beginning. We brought much of our legal system and culture from there. It was only natural to try and avoid the lessons learned from being “from” Europe.
No the world is nothing like it was when Washington lived. But his caution of dealing with where we came from is still pertinent.
As far as the “marriage made in hell with China”, I could not agree with you more.
Suspect we shall see how much the world needs the US and what we are really made of.
A few reasons. First and foremost, we can print more money. Spain can't. And that's the big problem for the PIIGS, what they really need to do just print more currency. The value goes down, so does the value of the debt they have. Sure, prices go up, but that's how floating fiat currencies work.
Spain doesn't have that option. The value of their national debt is tied to the economy of Germany and France and Denmark.
Our economy is just tied to the world's largest economy, us. And we do have loads of things the rest of the world really does want. Most of all, 225 years of solid stability. Even during the civil war, the rest of the world knew where the leader of the United States was.
Where's the leader of the EU? A floating presidency doesn't make for a leader.
Sure, they could fly to some of the small economies, but none of them can absorb all that much influx of cash. The Swiss are constantly battling assaults on their economy from people trying to flee to a safe haven. The Swiss are more than happy to hold their cash...in foreign denominations, thank you very much.
Yes, it's getting harder - the increased socialism and outright embezzlement of public dollars by public employees isn't going unnoticed elsewhere. But it isn't as bad as elsewhere yet, which gives investors some confidence in the US economy overall.
So, yes, the EU can go away. The Euro can go away. The PIIGS will demand loads and loads of benefits from others, and lots of banks will take a big hit, but the US economy can and will keep on rolling on. Then again, so will the German economy, and the French economy might be shaky, but it'll keep going, and the UK will look like a genius for avoiding the whole mess in the first place.
Kick out the PIIGS, EU - Save your currency, or get ready to mint new currency - The Euro’s about to be worth a whole lot less.
From your profile:
Few men have virtue to withstand the highest bidder.
To the point.
Felt the weight of your profile was dead on for this topic of discussion.
If Europe is in de Nile, where’s Egypt?
Thanks for the good observations.
A lot of French sailboats are arriving in Florida, I can tell you that much.
I spent many years supplying small businesses. With 2 privately held distributors.
Now back in family farming operation.
In deep cow dung.
Is there a dynamic at play to cause any nation to want to jump first?
Interesting that you should say that. The first Romanov tsar of Russia was Michael I (in 1613). That lead to an old Russian peasant saying: The first tsar was Michael, and the last tsar will be Michael.
When Nicholas II abdicated in 1917, he ultimately abdicated in favor of...get ready for this...his brother, Grand Duke Michael.
Now, courtesy of you, we have an American peasant saying (remember, most Americans are peasants to our ruling elite):
The first real president was George, and the last real president was George.
Its all going according to plan.
First you create “free trade areas” via treaties, which supersede the constitutional law of individual nations.
Then, you move to a “common currency” because it would make commerce so much easier.
Then, drive the partners into crisis with their phoney money, and offer the notion that “without political union, the monetary union can’t work. And if the monetary union fails, it will be the end of the world!”
Lambs to the slaughter.
Escapees. Many are long-term cruisers, I’m sure, but many are not. They are getting out while they can, with some assets. It’s been a common dodge for decades. Sink every Rand or Franc or Euro into a yacht, then sail away and don’t return. It’s a way to avoid currency export controls, and possible hyperinflation or devaluation that may be next. Turn the digital money into a real asset, then sail away on it.
OK, in the countries where civilians are armed what happens when the public realises that they have been sold out by the Globalist Traitors (POLs)?
Is that why the UN is so desperate to disarm us?
That makes sense. How many Frenchmen really know what is happening?
Not a clue. G’night.
Have a good evening.
Wouldn’t the viability of this dodge depend on being able to sell these maxed out yachts somewhere else without taking an utter beating? Are there a lot of customers for them in, say, Florida?
I would say 40-45%. There are lots of good French. Ya’ll need to get out more.
It’s all Francisco Franco’s fault. Wait a minute: newsflash-he’s still dead.
Is that El Cid?
For the moribund economies, it won’t help and will probably hurt. The EU will try to bleed the productive economies dry in a futile attempt to salvage the whole mess.
The first semi-functional economy that gets out will feel some short term pain but will be in the best position to capitalize on the inevitable collapse in Europe.
The next one? Too late - they’ll get sucked into the black hole of socialist debt.
Regardless, this is going to get ugly. And like WWII, the trigger will be something that seems small - a proverbail straw breaking the Euro’s back. And it will quickly descend into Hell...
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