11 Iyyar 5772
Day 26 of the Omer
Spain's Fiscal Armageddon Will Be WarningTuesday, 01 May 2012
By Wayne Allyn Root
Pay attention to Spain.
...Spain is about to become a gigantic problem for the entire world. Unlike Greece, Spain is too big to fail, but also too big to bailout. The economic news out of Spain is very, very, very bad news for all of us. Stress the “very.”
Mark this down — soon you will tune into the news and hear about “All Spain, all the time.” By this summer (and maybe sooner) Spain will be on everyone’s lips. You will wish you never heard of Spain. Spain could take us all down.
The reason Spain is so important is because size matters. Greece is a tiny country, yet its default threatened to destabilize and destroy the entire EU economy. To prevent that default the geniuses who run the EU “saved” Greece by loaning her another $170 billion to paper over her existing $100 billion in debt. They papered over the truth — Greece has defaulted on its debts.
But Greece is a tiny country. Spain is a big country. The 12th biggest economy in the world. There isn’t enough money in all the EU to save Spain. The real question is . . . is there enough money in all the world to save Spain? Will U.S. taxpayers agree to mortgage our children’s and grandchildren’s future (already buried in our own debt) to try to save Spain?
And even if America agreed to come to the rescue, where do we get the money? Have you seen the news lately? Our GDP is collapsing. Our unemployment rate is getting worse — again. Experts say it's clear we are going into a double-dip recession. To this economist it's clear we never left the first recession.
But our problems are small compared to Spain. Spain is in catastrophic shape. They are hanging by a thread off a cliff. And the thread is fraying. Spain's unemployment is fast approaching 25 percent. That’s reported unemployment.
If we used real numbers, not manipulated fake numbers provided by government (just like Obama uses in the U.S.), it might well be closer to 40 percent. Even worse, unemployment among young adults (25 and under) is 51 percent. And, this is all before their real estate falls off a cliff. Spanish real estate hasn’t even fallen as far as U.S. real estate — yet. Are you getting the picture?
Read more on Newsmax.com: Spain's Fiscal Armageddon Will Be Warning