It looks like things are going to get a lot worse. We’ve entered into a cycle with the markets losing confidence in Spain’s ability to get out of its property boom bust and adjusting downwards. Then we have the politicians indicating that things are going to happen which will resolve the situation to an agreeable degree. Then the markets adjust upwards. The up and down have an effect on how much interest Spain as to pay on its debts.
Now, when Spanish debts are mentioned in the MSM the size isn’t discussed but it’s widely agreed that Spain’s debt is too large to resolve. No amount of juggling, new banking system rules, IMF bods, massive quantative easing, etc.. will sort this one out simply. Things are so bad we may all have to go through our old purses and wallets, all our pockets and check down the back of the sofa. If we’re lucky and come up with enough loose change which will stave off Spain’s transformation into a third world country for about twenty five minutes. Well at least we tried.
A new development has been reported over the last couple if days. One, which might be a game changer and obviously, not a positive one since those days are looking increasingly long gone. Just say for a moment you are living in Greece or Portugal or Ireland or even Spain. Things are difficult. The economy isn’t just stagnating its collapsing. Unemployment is rampant. Bailiffs are closing in to take your house. Your car is long gone. What to do?
Easy. Go to one of the countries in the EU who are still in a good enough shape for you to throw yourself on their welfare system so you can at least survive. Maybe you can even find a job, which might pay less than it should but it’s your only hope. Now multiply this scenario by thousands or hundreds of thousands.
It’s okay though. The EU bureaucrats are working away to solve this problem as you are reading this. They are throwing together a new dictat, which will allow the closing of EU countries borders throughout Europe again if required. If? If? When more like!
Doom and gloom brought directly to your door by the caring and sharing EU, Eurozone and bankers of the world for your enjoyment and delectation. I don’t know about you but it’s been ages since I’ve enjoyed some delectation. I only wish I knew what it was.
The EU is based on a treaty, which means that any country who feel it is better to be out than in, can just say they resign and them get on with resigning. You may have noticed that countries out with the EU are doing okay or even better. On that basis why are our elected representatives not getting into the resigning bit? They are supposed to represent us and make sure they deliver the best possible way forward for us. And yet they don’t want to take us out of the EU. Why?
We are too stupid to understand why we need to remain in the EU. Our elders and betters know what’s good for us and it starts with an E followed by a U. If we left we’d lose 40% of our trade? We wouldn’t be able to sell into the EU market? Let me repeat, the EU countries are all stagnating and it won’t go away until they resolve the debt crisis in the Eurozone which will take a very long time or they’ll just go pop very messily.
We’d still have 60% of our trade and in fact we’d still have a fair bit of the 40%. We could get out there and start focusing on trading more with countries, which have growing economies.
Could getting out of the EU really be worse than things are looking at the moment?