Spain Is In 'Total Emergency’

[bonnie]

Spain Is In 'Total Emergency’, the EU in total denial

After a Spanish exit from the euro, there would be nothing left to exit from.

Greece in turmoil: but its significance has shrinked in comparison to the possibility of a spectacular crash in Spain, the fourth largest economy in the EU

By Janet Daley

9:00PM BST 02 Jun 2012

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 The equivalent of more than £55 billion was withdrawn and transported out of Spain last month – and that was before the country’s largest bank was nationalised.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.

With Spain’s “total emergency”, the point at which denial and bluster become absurd has been well and truly reached, but this being the EU, the gamesmanship goes on. Still the pointless demands for “decisive action” continue, even though the only action that would possibly constitute a remedy is politically untenable if member states are to maintain any pretence of democratic accountability.

[Woody]

Do you suppose this is the fault of George W. Bush?

[olger]

gotta be

[Kountzer]

Bush, Obama whoever. Prophecy is being fulfilled.

[Overaged]

I wonder what would happen if everyone started using their money the way God says to?

[olger]

That ain't a bad idear...

[phkrause]

Do you suppose this is the fault of George W. Bush?

Why should it be????? Why should it be anyones fault? Actually we do have something to blame for all this! Its called "GREED!" Besides we know from reading the GC that financial problems would be at the end times? We have no one to blame for all the ills on planet earth, but ourselves.

[Lauralea]

Reminds me of the Book of Daniel in the Bible. Speaking of the countries formed out of the Roman Empire, (The toes of the great image formed without hands, it says "They shall not cleave one to another."

[OzarkWoman]

Originally Posted By: Woody

Do you suppose this is the fault of George W. Bush?

Why should it be????? Why should it be anyones fault? Actually we do have something to blame for all this! Its called "GREED!" Besides we know from reading the GC that financial problems would be at the end times? We have no one to blame for all the ills on planet earth, but ourselves.

I think he was going for sarcasm blaming it on Bush.