Spain and UE

[VIMO]

I will try to simplify the economic situation in Spain and the reasons leading to it:

On the one hand, countries have a debt to outsiders due to previous loans, pending return.

How it has come to generate that amount of debt, in some cases, is disproportionate to the ability to pay of the debtor?. The debt is generated for a simple reason: It spends more than it is entered. But that seems a little absurd because it is known that a country produces more than it spends. So to generate debt have to spend much more than what is needed.

This has a direct relationship with the ambition of rulers who, in principle, want to "save face" with its citizens, making necessary infrastructure first and other less necessary as unused airports later. By the way have found that investments in the country they, individually, or party, can be substantial commissions.

Well, we've spent more than you need and begin to generate debt.

We have the indebted countries, now there are debts that have not reached a size manageable by the country in the short term. Obviously the debts of the countries are prorateables among its citizens.

Thus we must extend the debt for quite some time, especially since we have entered a situation where we generate no more than what we spend, so that the debt has to last long.

Extending debt based issue new debt, with debt paid with income above, but in reality, all we do is increase it even more, because as I said we now generate less than what we spend because of the critical situation in we have placed ourselves.

On the other hand our situation increasingly forces us to pay more and more interest on the debt. Why? Because lenders are taking advantage of the situation to see that we are in a hurry.

And also because no one supports us debt.

As we are in the European Union, it is logical that without relying as we are partners and share supposedly many risks and benefits. But this does not happen, why?. It's a little absurd because we pay great interest impoverish evidently Union.

The reason is because there is no European Union. The so-called European Union is a set of individual interests, where premium itself on others, and countries well treated by agents external lenders are very pleased with this deal and do not want to lose. They do not care that other countries are paying a high interest if it makes them low pay. In short they are taking advantage of us, we paid our debt and theirs.

In this situation the attitude of Merkel, Draghi, and other absolute is disloyalty to the southern countries. Otherwise we would have to conclude that they are fools, and do not think they are.

But what is not understandable is the attitude of our rulers: This submission to the dictates of you is trampling undisguised neck can not be understood. At least, if they are not interested move on without these companies, should torpedo the interests of the countries predators to keep them free out abuse. But besides the existence of the European Union, if only theoretically, provides weapons to deal with it differently, especially considering that there is not much to lose.

 

[waltky]

The pain in Spain lies mainly on the plain...

Spain: Economy is Worsening
April 26, 2013 - Spain says its economy is worsening and that it will take two years longer than first thought to meet Europe's deficit target.

Madrid said Friday it expects its economy will shrink 1.3 percent this year, instead of the one-half of one percent figure it projected earlier. The government said it expects the Spanish economy will begin to grow again in 2014. At the same time, Spain - the fourth largest economy in the euro currency bloc - said its deficit would fall this year to 6.3 percent of its national economy. That is a sharp improvement over last year, but still more than double the three percent target set by the European Union.

Spain said it would not meet the European target until 2016, two years later than promised in 2012. Prime Minister Mariano Rajoy embarked on a year of austerity measures when he took office in late 2011, but more than a quarter of the country's workers are unemployed and the troubled Spanish banking system has had to secure an international bailout.

Economic Minister Luis de Guindos said Spain's high jobless rate is the country's key political and social problem. "The data that affects Spaniards is the deterioration of the labor market. This is obviously the principle political and social problem," he said. "In fact, I would go so far as to say that this is the principle weakness of the Spanish economy. That Spain has an unemployment rate of 27 percent is the element that makes us most weak in the eyes of international markets."

Spain: Economy is Worsening