If capitalism has a poster child a black sheep and lots of problems is in Spain, full of easy to corrupt local caciques, governments after government that fail to govern, and an elite that is as much arrogant and the rest of citizens, harsh words, you bet, there is so much talent in this country of 44 million that is sickening what is happening to its government.
If today August 1rst of 2012, will be the first day of a rude awakening to the process of capitalism as interpreted today. It should be not surprise that as it stands today it is a failing system, for most but a very rewarding system for those who control corporations.
The European community is collapsing, it is difficult to pinpoint if it will be Spain local governments who will be the responsible to undo the currency treaty or it will be a massive popular movement.
As we stand today, the ECB, the Bank of Spain and the Federal Reserve have focused in bailing out the banks at the cost of tax payers.
The banks in Spain are starting to feel the injection of the ECB and Bank of Spain and the preferential treatment laws that gives them. The advantageous position of banks to be first in line to collect taxpayers receipts might turn to be the unwinding of the whole enchilada. In the next twelve month we are going to see the euro leaders behave as Sangria drunkards.
They sold the idea to the masses that save the banks and you will be saved. B.S, as most of such statements.
There is not problem that will not correlate to other in this complex pyramidal capitalist program.
Using new debt to pay old debt.....there are thing that make you go hummmmmm.
Spain regional governments are going to be confronted with a situation in which banks are first in line to collect their debts and people are going to be left behind. Taxes are controlled by the central government, but debt can be incurred by local governments at the rate that they demand and the central government rubber stamps it.
Well, the day of reckoning has arrived.
Local governments have more debt coming due and not a single one has near enough revenue to cover the interests, so a massive default is looming under their heads.
Many municipalities had fail to pay employees for a year, and still they cannot pay their interest or due principals of the past borrowing spree.
I predict that by next year around this time Spain will dealing its way out of the euro currency, at least temporarily if not definitively, most local governments will goo into default and banks will have to claim loses in their CDS's, and guess who holds most of those collateral debt obligations.......
