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Old July 24th, 2012 #1
Alex Linder
Join Date: Nov 2003
Posts: 45,382
Blog Entries: 34
Alex Linder
Default 'Austerity'

'Greece II' opens in Spain
Spain bailout
July 22, 2012
By: Kevin Brent

As Greek Prime Minister Antonis Samaras declares the Greek economy to be in a 'Great Depression', Spain is now also spiraling down into social unrest akin to what occurred in Greece. Massive anti-austerity protests have erupted across Spain some ending in violence. The grievances of the Spanish protestors are the same as their counterparts in Greece, cutting of public services and benefits and reductions in public sector jobs. As is the case with Greeks public sector spending is what a very large segment of Spaniards rely upon for any kind of living, a way of life for most since the 1940's.

In a replay of the Greek bailouts the European Union dumped money into Spanish banks to stabilize the situation in combination with austerity measures and tax increases. As with Greece it has not stabilized anything. Spain's Ibex stock has now tumbled down the lowest in six years. And, adding insecurity to injury is German Chancellor Angela Merkel now stating that she isn't sure the euro zone can work. Comments which themselves generated a slide in the Euro the next day given that Germany is the cash cow funding current and future bailouts.

Much as was the case in the United States with the 2009 Stimulus package the bailouts in both Greece and Spain were targeted mainly at the public sector and unions using banks as the 'middle man'. As with America's 'Stimulus' it did nothing to help a sagging private sector. As long as the private sector is forced to hand over more of their profits to repay public debt of towns, cities and government programs that overspent in the first place while banks pay off bad loans and raise the bar for or cease new loans, nothing will improve. On the contrary, it will only get worse.

But you never EVER read about greedy public sector, greedy government. Only private businesses, corporations, who have to earn their money, are ever described as greedy. In the controlled media. Where government can do no wrong. And where more government is the solution to every human ill.

This method of Keynesian economics was tried during the worldwide Great Depression of the 1930's. In no nation did it work since no nation in human history has ever taxed itself into prosperity. In the name of the 'New Deal', President Roosevelt dumped enormous amounts of money into grand public projects while the private sector continued to languish in utter stagnation. Unemployment and poverty levels remained in the stratosphere until WWII. One of the least known facts about WWII is that it relieved the United States of the Great Depression almost overnight as Europe's industries were laid waste by war and America suddenly found itself with a monopoly on nearly every industry.

Spain, like Greece also has a very long and rather recent history with Fascism. Spain was the one Fascist power in Europe which escaped the ravages of WWII, remaining neutral for the duration of the war. Generalissimo Francisco Franco remained dictator until 1975. With the sudden rise of Greece's neo-Nazi Golden Dawn Party, it's not hard to imagine Fascism re-emerging in Spain. Ironically, it would be northern European powers acting in the stated interests of preserving the European Union experiment who would actually be pouring gasoline on the embers of Fascism and nationalism in both nations and perhaps others to come.
Old July 24th, 2012 #2
John in Woodbridge
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Join Date: Jan 2004
Posts: 7,749
John in Woodbridge

Only in today's world would a moron "economist" like Paul Krugman get a Nobel Peace Prize. Only someone completely insane would think that the the answer to crushing government debt is much more crushing government debt.

Itís time to stop being Americans. Itís time to start being White Men again. - Gregory Hood
Old February 12th, 2014 #3
Roger Bannon
Senior Member
Join Date: Jul 2013
Posts: 838
Roger Bannon

Move this if it would fit better elsewhere.

Old March 2nd, 2014 #4
Join Date: May 2013
Posts: 386

People can skimp whereas they have,but If they don't have,what they can skimp? Well,this know only people which are advocates of policy of skimp.
All of money which get in skimp,get in fact for repayment debts and nation budget come with new borrowing. Result of this are even more debts,poverty,misery etc whereas someone which is in this team collects wealth.

Last edited by Fico; March 2nd, 2014 at 01:44 PM.


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