Spain is in 'total emergency’, the EU in total denial

[bijou]

By Janet Daley

9:00PM BST 02 Jun 2012

Comments725 Comments

I’ve 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 country’s 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 Spain’s economy prepared to quibble with his assessment.

Forget Grexit. Greece’s teeny, tiny economy is a footnote now. As is Ireland’s decision – which seemed more like a sigh of resignation than a plebiscite – to engage in however much self-flagellation the EU gods insist on, for however long it takes. What might have seemed dramatic a week or so ago has now shrivelled in importance by comparison to the realistic possibility of a spectacular crash in the fourth largest economy in the EU. Spexit (and Spanic) are lodged in the lexicon, and have become part of the psychological reality that moves markets. The equivalent of more than £55 billion was withdrawn and transported out of Spain last month – and that was before the country’s largest bank was nationalised. No one seems to be kidding himself that the collapse of the Spanish economy could be somehow weathered and overcome, as the default of Greece might be.

There is no talk of firewalls, or of simply letting Spain go, or of the European banking system being re-capitalised to compensate for the losses that it would suffer. Nope. This is it. The cancer has now spread to the vital organs of the EU. Spain is not a peripheral Mediterranean country. It is not an insignificant player in the political project. It is not a marginal going-along-for-the-ride-and-the-free-money passenger on the euro train. Not only is its economy so large as to be indispensable, but its ties with Italy mean that the Italian economy (which is the third largest in the EU) would be fatally compromised by its fall. “Itexit” is almost unpronounceable, so perhaps it’s fortunate that it will never be required: after Spexit, there would be nothing left to exit from.  ...

http://www.telegraph.co.uk/finance/financialcrisis/9307106/Spain-is-in-total-emergency-the-EU-in-total-denial.html

[Mr Mannn]

The EU will be torn apart.
Europe's economy will crash.
Govts will fall.
and a new dictator will rise from the ashes. It was Hitler last time.

Europe simply doesn't know much about liberty or freedom. Elites have run the place instead of the people. Citizen participation in govt was never a backbone of European democracy.

With all the other messes in the world, I really don't want to invade Europe again.

[obumazombie]

The EU relied heavily on socialism. It just doesn't work in practice.

[thundley4]

With all the other messes in the world, I really don't want to invade Europe again.

But according to the DUmmies, WWII saved the US economy.

[LC EFA]

The EU will be torn apart.
Europe's economy will crash.
Govts will fall.
and a new dictator will rise from the ashes. It was Hitler last time.

Europe simply doesn't know much about liberty or freedom. Elites have run the place instead of the people. Citizen participation in govt was never a backbone of European democracy.

With all the other messes in the world, I really don't want to invade Europe again.

I'd like to say "Screw the EU" - Those pointy headed pontificating pustules have sat over there in their ivory towers for the last several decades and preached to us ignorant peasants outside europe.  All the while existing under a security arrangement paid for nearly in entirety by the US taxpayer.

They thumbed their nose at the rest of us , told us how to live , how to conduct our national affairs and then scorned us when we asked for their assistance.

**** em.

Unfortunately for the rest of us europe doesn't exist in a vacuum. Their multiple-economic crashes and the potential dissolution of the EU will further impact on the economic slowdown in China - and doubtless in the US and here as well. Triple shock to the already unstable situation that arose out of applying a band-aid fix to the "GFC", which is a bad thing all around.

This time around we might have to mind our own business at home first before rushing out to save those retards from themselves a third (or even fourth depending on how you view the cold war) time.

[obumazombie]

I'm not personally going to buy any EU bonds either. Not a good credit risk.

[USA4ME]

I still don't believe the EU will crash.  Germany will step in and work things out with France.  France wants a Eurobond, and Germany will eventually embrace the idea, but not without a tighter fiscal union.  It will then be up to Merkel to rally the others behind it, and they will.  In the shortrun though, more volatility lies ahead.

.

[bijou]

I still don't believe the EU will crash.  Germany will step in and work things out with France.  France wants a Eurobond, and Germany will eventually embrace the idea, but not without a tighter fiscal union.  It will then be up to Merkel to rally the others behind it, and they will.  In the shortrun though, more volatility lies ahead.

.

I don't see it disappearing entirely, but I can see the weaker members being cut loose to save the core members of the euro.

[Aristotelian]

With all the other messes in the world, I really don't want to invade Europe again.

You shouldn't - you, along with us in Britain, the Australians ,and other civilised countries should let the Europeans get on with whatever they want/need to get through.

[General Yahya]

I've lived in the UK/Europe for a long time. I can't believe people still support this "European Dream" bullsh!t. It's disgusting, they have all been tricked into joining a European Federation controlled by unelected socialist bureaucrats and a judiciary who's only goal is to give more rights to sex offenders, killers (both have been given the vote now) and illegal aliens (who most of the time can't be sent home as the ECJ said so). The UK should have listened to Baroness Thatcher and got out of this sh!t pot, they call the European Union. The markets will kill the EU and the euro, sooner or later and cause a Great Depression like situation for Europe. The problem with this whole system is the European political class. They are way too socialists and way, way too close to labor unions. Striking has become a national past time in many countries and their "welfare states" have become a state within a state. Where unelected bureaucrats decide who gets what, how much and when. Most of the time this welfare goes to people that shouldn't even get it (like illegal aliens who can't be sent back to their countries cause a judge at the European Court of Justice decides so). While 2ND world war veterans can't heat their homes during winter, the whole European system needs reform. I love England dearly, it's home from home for me and I have allot of respect for the Brits. But they've gone too far to the left. Labor Unions in the private sector have ripped apart the once booming industries and the public sector unions are running riot calling strikes whenever something doesn't appeal to them. I like the way Prime Minister David Cameron is moving more and more to the right again, but it's not enough. The UK need to get out of this system quickly, because the political class are in total denial. They believe with a little more time and more European bailout money (which is in fact the taxes millions of Europeans pay) they can save this union. But allot the people actually on the ground are fed up, they are tired of their laws coming from unelected and unaccountable bureaucrats instead of their own elected officials. I truly hope this European Union is remembered by people as a dumb idea that nearly killed Europe instead of the dumb idea that actually killed Europe. Because the political class over there are killing their own countries. 

[Mr Mannn]

paragraphs, Yahya

[General Yahya]

Sorry, Mr Mannn. I was ranting, forgot about paragraphs.

[JohnnyReb]

I say, this time when we take Europe we keep it all instead of just enough to bury our dead.

[Bad Dog]

I say, this time when we take Europe we keep it all instead of just enough to bury our dead.

I can see this but, what do we do with the Europeans?  They are all smelly & bad tempered.

[JohnnyReb]

I can see this but, what do we do with the Europeans?  They are all smelly & bad tempered.

Who says they'll be any left when we're done?

[zeitgeist]

But according to the DUmmies, WWII saved the US economy.

But, but, I thought (that they believed) it was FDR.  I don't think I ever recall one not toting that party line about FDR.  Now it is up to Obie Wun to save us.  From a chicken in evey pot to pot in every chicken.