The bulls in Spain struggle in vain

goldmoney.com / By Félix Moreno de la Cova / August 15, 2012

As the first “too-big-to-fail” euro-periphery nation to have caught fire, many see Spain as the pivotal battleground that will determine the eurozone’s future. Massive money printing by the European Central Bank is the only realistic way to fund a Spanish bailout, but this will unleash a giant moral hazard: why should governments in other eurozone countries persist with unpopular austerity measures once the Spanish government has been saved by the boys in Frankfurt? A slippery slope indeed, and one that leads to currency destruction and a distinct sense of dejá vù for Germany.

If Spain is not bailed out, the political bonds that bind the country to the euro could shatter as a result of popular anger and violence directed against Brussels and its allies in national and regional administration. This a variation on the Catch-22 situation facing debt-burdened economies all over the world. ECB President Mario Draghi has promised to do “all that is necessary” and sworn by his name and his power that “it will be enough”. However this will surely drive more Bundesbankers to pine for the D-Mark, as several well-placed sources have recently indicated.

In this very interesting video on the Spanish economic crisis ¿Dónde está mi dinero? (Where is my money?), Marion Mueller, María Blanco, Juan Castañeda and Miquel Roig discuss our current predicament and the broader issues surrounding banking, money and debt. They also ask random members of the public in Madrid these same questions, giving us a very good idea of what the Spanish man or woman on the street thinks are the causes and who is to blame for the crisis.

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2012-08-15 13:02:55

Source: http://silveristhenew.com/2012/08/15/the-bulls-in-spain-struggle-in-vain/