Greece Crisis: Is Spain the next Greece??
PIGS as the financial media call the four countries: Portugal, Italy, Greece and Spain are one of the biggest risks to the current global financial stability. When much of the attention is grabbed by the troubled Greece, the Spanish economy is in reality in a position worse than that of the Greece.
While other European nations like France and Germany — and even Britain — are beginning to show signs of economic growth, Spain remains stuck in recession. Spain is the only G20 country that remained in recession in 4Q of 2009 and the IMF forecasts that it will remain so till 2011.
Some of the most worry-some statistics from Spain, which clearly highlights the risks are:
- Unemployment of around 18% while the average for EU is only 9.5
- Although lower than average Debt to GDP ratio, it has doubled in last one year, etc
There are some noted economists who believe that it will take Spain 7-8 years running the same amount of deficits to become the next Greece, however others say that the crisis is much serious than it looks at the face.
Hence, I believe that Spain’s problems coupled with debt issues of other EU countries poses a serious threat to the financial markets. We can expect more sovereign rate cuts like what has happened to Portugal and Greece last Tuesday.
Author name: Rahul Sonthalia, Research Head, Kredent
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about 1 year ago
This is only the beginning of a “Global Crash”, and America is going to bail them all out. Well the USA contributes 17.09 % to the IMF just for things like this. Why are we here in the United State expected to bail out other nations with our Taxpayers money? The USA is the single largest contributor to the IMF. Who is running our country? the second largest contributor is Japan at a whooping 6.12 % then Germany at 5.98 %, I have to ask why the USA taxpayer pays nearly triple here compared to any other country, also we foot the bill for most every war that takes place out there sending more troops and spending more money than any other nation? Why do we bail out Wall Street, our banks (and other nations banks, (IE; RBS) and Savings and loans make hand picked companies the benefactors of billions of dollars (IE; Haliburton and the most recent Wat in Iraq, or Goldman Sachs) and now we are footing the bill for Greece and soon Italy, Spain and I am sure many other to follow. The United States current deficit is 12,950,479,938,409.28 WOW and The estimated population of the United States is 308,330,763
so each citizen’s share of this debt is $42,001.91.
The National Debt has continued to increase an average of $4.14 billion per day since September 28, 2007! Concerned? We keep spending like we know that the Mayans 2012 prediction must be correct and nothing else really matters. I have to point out one over looked fact in regards to a term you probably have never heard of and that is “Force Majeure” is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, what does this have to do with anything? I will tell you, it is where the Federal reserve or the US Treasury declares “Force Majuere towards the United States national Debt, what does that mean, Well your money is now Toilet paper is what that means and everything you think you own is theirs and pretty much worthless. You see they can declare this at the tipping point, where it appears that we can not ever pay our debt back. When would this happen? We passed it just recently and they have been passing paper around like it hasn’t happened, well I believe it has! What would happen next? It’s called the 6900 series of protocols. It would start with declaring a force majeure, which would immediately be interpreted by the marketplaces as a de facto repudiation of debt. Then the SEC and the various regulatory exchanges would anticipate the market’s decline, hour by hour — when Japan’s markets opened the next day, what would happen when the European markets, and all the inter- linkages of the global markets. On the second day, US Special Forces would be dropped in by parachute in the cities where the twelve Federal Reserve district banks are located.
The origin of these protocols comes from the Department of Defense. This is contingency planning for a variety of post-collapse scenarios. Those scenarios would include, obviously, military collapse, World War III, in other words, and its aftermath. Cheery future? a lot to look forward too. It is really crazy that all the nut jobs and cardboard toting crazies might have had it right all along. Why don’t we see Glen Beck talking this up, he seem willing to push the envelope don’t he? Well I believe they count on you having your head down like a good sheep, but I am telling you to WAKE UP, check things out, for we are heading straight into a crash Globally that no one can stop, and you had better be ready. EKIM