The Pain in Spain is mainly everywhere! Yes, thats right Spain is the new Greece, with Italy in the wings ready to dance into the financial bailout polka. Spain has gone bank run with a vengeance, just like the smart money in Greece did over a year ago. They got their EUros out because they know their banks, in this case Spanish banks, are bust. Spanish banks have seen a record 5% deposit outflow in one month from local banks. And continued deposit outflows, redeposited somewhere else in Euroland,
mostly into Germany, Switzerland, Denmark & Gold. So Spain is looking at 1.1% of total or 17 billion Euros have left the country and are not likely to return to Spain anytime soon.
Which means cash reserves at Spanish banks are gone!
Which means that Spanish banks are bust, which mean more Spanish riots.
Here is a list of wobbling Spanish banks to watch and wonder about.
BBVA (BBVA SM)
Banco Santander (SAN SM)
Bankia (BKIA SM)
Caixabank (CABK SM)
Banco Sabadell (SAB SM)
Bankinter (BKT SM)
Banco Popular (POP SM)
Spanish Bond rates climbed above 6% today. If, or when they reach 7%, Spain won't be able to
pay for them. More bailouts or collapse.
You have Mr. Rajoy, the Spanish Prime Minister has unveiled Spain's budget for 2013 and is calling for....
43 new laws to bolster the Spanish economy
Spanish reform plan is to meet pledges to Euroland partners
Approves government decree on wage bargaining for businesses
And yet the Spanish budget remains unchanged as economic forecasts call for a .05% DROP
in Spanish GDP and see taxable revenue rise 3.8% next year. To See a 5.6% rise in government spending and interests costs to jump 34% to 38.6 billion EUros.
Really!?!? Come on people. This isn't even smoke & mirrors BS. They are out and out lying and
the 25% unemployed in Spain will hit the streets. Cue the rioting. What will happen when the police realize they won't be paid either. Hmmmmmm.
Oh, lets not forget that the Spanish government is going to tap - read STEAL - 3 billion EUros
from Spanish social security reserves to fund liquidity needs. Which immediately sent the EUro to new weekly lows against the US dollar.
But that isn't the rub, nor does it explain our headline.
This is all foreshadowing what will happen in the USA. This surreal financial nightmare,
depression will hit our shores with almost no warning. One day everything will be just
fine, but the next will go kablooie!
How can that be? There are no high paying, family supporting jobs being created in America.
Without sustainable, high paying jobs, demand for goods and services, housing, manufacturing
all decline and create a depressionary spiral. Less jobs = less goods and services, less manufacturing, housing depression, etc.
Don't believe it can happen here? Watch for CONgress to call for seizing, 401k retirement accounts
to help stabilize the US debt. OMG, this has already happened. Bet you didn't know! SO.........
It is just a matter of time. It is all simple mathematics. We can't create more, gigantic debt, to pay off past debt. Won't work. We will go Weimar Republic or Zimbabwe first, then the rest of the world shuns us, then kablooie! We are immediately third world banana republic, if we are lucky.
No politician's promise - read LIE - or government resolve - read Katrina - will stop this. The only way out is to drastically cut spending immediately, and regressively raise taxes.
And this is something that the politicians will refuse to accept and will not do, and it is a remedy that the American public, 47 million of whom are on food stamps, and a whopping 48% or 149 million Americans get aid or a check from the US Government will adamantly oppose.
So get ready. Our politicians will say no one saw it coming and want to declare war on someone or somebody. Which will most likely be the American people, just like every government that is vainly trying to cling to power.
Be prepared. America is going feral.
mostly into Germany, Switzerland, Denmark & Gold. So Spain is looking at 1.1% of total or 17 billion Euros have left the country and are not likely to return to Spain anytime soon.
From Reuters:
Can you say BANK RUN?Consumers and firms continued to pull their money out of Spanish banks in August but at a slower speed than in July, with private sector deposits falling slightly more than 1 percent as Spain was sucked into the centre of the euro zone debt crisis.Private-sector deposits at Spanish banks fell to 1.492 trillion euros at end-August from 1.509 trillion euros in the previous month, hitting their lowest point since April 2008.
Which means cash reserves at Spanish banks are gone!
Which means that Spanish banks are bust, which mean more Spanish riots.
Here is a list of wobbling Spanish banks to watch and wonder about.
BBVA (BBVA SM)
Banco Santander (SAN SM)
Bankia (BKIA SM)
Caixabank (CABK SM)
Banco Sabadell (SAB SM)
Bankinter (BKT SM)
Banco Popular (POP SM)
Spanish Bond rates climbed above 6% today. If, or when they reach 7%, Spain won't be able to
pay for them. More bailouts or collapse.
You have Mr. Rajoy, the Spanish Prime Minister has unveiled Spain's budget for 2013 and is calling for....
43 new laws to bolster the Spanish economy
Spanish reform plan is to meet pledges to Euroland partners
Approves government decree on wage bargaining for businesses
And yet the Spanish budget remains unchanged as economic forecasts call for a .05% DROP
in Spanish GDP and see taxable revenue rise 3.8% next year. To See a 5.6% rise in government spending and interests costs to jump 34% to 38.6 billion EUros.
Really!?!? Come on people. This isn't even smoke & mirrors BS. They are out and out lying and
the 25% unemployed in Spain will hit the streets. Cue the rioting. What will happen when the police realize they won't be paid either. Hmmmmmm.
Oh, lets not forget that the Spanish government is going to tap - read STEAL - 3 billion EUros
from Spanish social security reserves to fund liquidity needs. Which immediately sent the EUro to new weekly lows against the US dollar.
But that isn't the rub, nor does it explain our headline.
This is all foreshadowing what will happen in the USA. This surreal financial nightmare,
depression will hit our shores with almost no warning. One day everything will be just
fine, but the next will go kablooie!
How can that be? There are no high paying, family supporting jobs being created in America.
Without sustainable, high paying jobs, demand for goods and services, housing, manufacturing
all decline and create a depressionary spiral. Less jobs = less goods and services, less manufacturing, housing depression, etc.
Don't believe it can happen here? Watch for CONgress to call for seizing, 401k retirement accounts
to help stabilize the US debt. OMG, this has already happened. Bet you didn't know! SO.........
It is just a matter of time. It is all simple mathematics. We can't create more, gigantic debt, to pay off past debt. Won't work. We will go Weimar Republic or Zimbabwe first, then the rest of the world shuns us, then kablooie! We are immediately third world banana republic, if we are lucky.
No politician's promise - read LIE - or government resolve - read Katrina - will stop this. The only way out is to drastically cut spending immediately, and regressively raise taxes.
And this is something that the politicians will refuse to accept and will not do, and it is a remedy that the American public, 47 million of whom are on food stamps, and a whopping 48% or 149 million Americans get aid or a check from the US Government will adamantly oppose.
So get ready. Our politicians will say no one saw it coming and want to declare war on someone or somebody. Which will most likely be the American people, just like every government that is vainly trying to cling to power.
Be prepared. America is going feral.
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