This page has been archived and commenting is disabled.

First Egypt ... Now Spain?

George Washington's picture





 

Gerald Celente predicted in February that the Middle Eastern and North African protests would spread to Europe:

It is not solely the Middle East that is destined to experience episodes of violent upheaval. What is transpiring in the Arab world will spread throughout many European states. While the call to arms will be spoken in different tongues, the underlying causes will be the same.

In December 2010 (before Tunisia made the headlines) we issued a Trend Alert titled, “Off With Their Heads!” in which we predicted a “long war between the people and the ruling classes.” We noted that, “Anyone questioning the intensity of the people’s seething anger is either out of touch or in denial.”

It wasn’t Arab anger that led us to that forecast – it was the student and worker revolts spilling into the streets of Europe. The imposition of draconian austerity measures – higher taxes, tuition hikes, lost benefits, curtailed services, public sector job cuts – had young and old raging against a rigged system that paved the way for the privileged and punished the proles.

Though millions marched through the streets of Athens, Brussels, Dublin, Lisbon, London and Madrid, when the protests ended, the governments were barely shaken, let alone toppled. Unlike the autocratic Arab regimes, where the tight grip of repression could only be broken by violence, in the “democratic” West the illusion of representation and placating government promises mitigated the violence.

Both the press and politicians assumed the protests would run their course, people would accept their fate, and, like it or not, suffer the consequences. The protests, however, have not run their course. The economic toll of austerity and unemployment continues to ravage the lower and middle classes. As we wrote in the Winter 2011 Trends Journal, “It will only be a matter of time before a series of final-straw events breaks the public’s back, setting off uncontrollable uprisings, coups (bloodless and/or military), riots and revolts throughout the financially battered world.”

Indeed, the protests in Madrid, Spain are eerily similar - if smaller and shorter - to Tahir Square, Egypt:

undefined

undefined


As I wrote in December 2008:

Housing bubbles are now bursting in China, France, Spain, Ireland, the United Kingdom, Eastern Europe, and many other regions.

I noted in 2009:

Citigroup is projecting that unemployment in Spain will rise from its current 17.9% to 22% next year.

Spain's unemployment is largely driven by the bursting of its housing bubble.

I warned last year that - because the Spanish government had taken on the debt of its giant banks - it was in line as one of the dominoes to fall from the European debt crisis.

Instead of helping the Spanish people and small businesses, the government has bailed out its big banks and then implemented austerity measures to try to dig its way out of its fiscal hole.

That's why people are protesting.

As I wrote last November:

Niall Ferguson, Marc Faber, and SocGen's Edwards and Grice predicted 9 months ago that the European debt crisis would eventually spread to America.

But the question of what country the "contagion" might spread to next is really the wrong question altogether.

The real question is whether the wealth of the people around the world will continue to be shoveled into the bottomless pit of debts held by the big banks, or whether the people will prevail and the giant banks and bondholders will be forced to take a haircut. See this, this and this.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 05/21/2011 - 22:52 | Link to Comment JR
JR's picture

Large populations of Europeans, and now Americans, are discovering that the austerity that they face is because politicians sold out to the crooked investment banks; banks that will have no part in sharing the losses. That’s a recipe for revolution.

George, on another topic, here is belated praise and many thanks for your extensive work on the Building 7 column.  I was not able to respond at the time.

The government and media responses are frightening; telling.  Just suppose, for example, with government and media locked in concert like this, President Obama’s long form birth certificate is in fact a fabrication.  Is the tyranny we face so complete that even this could never be widely revealed?

Sat, 05/21/2011 - 21:54 | Link to Comment mkkby
mkkby's picture

"The imposition of draconian austerity measures – higher taxes, tuition hikes, lost benefits, curtailed services, public sector job cuts – had young and old raging against a rigged system that paved the way for the privileged and punished the proles."

Nothing but a needed change.  The world has obviously had too many babies for too few resources.  Now all those mooching off the gov credit card are being cut off.  I say good.  The sooner they stop getting free meals, the sooner the world gets back to a sustainable population.

Human beings are no smarter than locusts that multiply until they use every resource.  Better to have some pain now, than a massive "event" someday when things are even more out of whak.

Sat, 05/21/2011 - 20:14 | Link to Comment TooBearish
TooBearish's picture

Peeps - Germany digs the Euro as the DM would have blasted to the moon taking away the relative cheapness of the currency to spur the German export economy.  I am sure some of the PTB in old line Germany are licking their chops at the prospect of acquiring some Mediterranean real estate or even a large tract on the Atlantic.

 European union indeed.

Sat, 05/21/2011 - 20:52 | Link to Comment Kayman
Kayman's picture

Yeah, keeping the European Union together is a little bit like

herding cats.

Sat, 05/21/2011 - 20:49 | Link to Comment Bringin It
Bringin It's picture

Yes about the DM, but Re. I am sure some of the PTB in old line Germany are licking their chops at the prospect of acquiring some Mediterranean real estate or even a large tract on the Atlantic.

I think a lot of Germans are wishing to avoid getting ground up in another European war.

Sat, 05/21/2011 - 20:03 | Link to Comment High Plains Drifter
High Plains Drifter's picture

http://www.liveleak.com/view?i=0659676140

a call for help. the last one the caller ever made before he became dust.....

the blood from these people cries out from the ground. it must be avenged. so far the real perps have walked while we chase ghosts. How long oh Lord must we wait? How long?

Sat, 05/21/2011 - 19:30 | Link to Comment boiltherich
boiltherich's picture

The last time Spain was in this bad a position there was a civil war that killed more than a million, lasted years, and the fascists won. 

Sat, 05/21/2011 - 22:11 | Link to Comment web bot
web bot's picture

I think you've put your finger on something important here. Revolution is still in the national psyche in Spain.

Sat, 05/21/2011 - 20:30 | Link to Comment New_Meat
New_Meat's picture

ya, fascists v. communists?  Statists won.  Basques still didn't play.  Abraham Lincoln still has the stain (although, maybe I need to reevaluate the 'War of Northern Agression').  Franco be gone, train bombing changed the government to the Statist side, 'green' jobs at a cost of 2.6 +/- per real job.  Housing bubble.

Maybe you are closer than  I originally thought.

- Ned

Sat, 05/21/2011 - 21:21 | Link to Comment nmewn
nmewn's picture

Rising to the bait ;-)

"maybe I need to reevaluate the 'War of Northern Agression')."

Something everyone continually does, maybe because so many things come together into one "event".

For your review;

http://www.lewrockwell.com/orig/pearlston1.html

Most wars are fought over wealth distribution or ideology.

If ideology were the cause of this one, the Emancipation Proclamation given half way through it, would not have been worded the way it was.

Sat, 05/21/2011 - 22:26 | Link to Comment New_Meat
New_Meat's picture

yep, nay thinking that the <civil, etc.> war was about slavery.  Then it became baked that way later.

Did you see the nonsense in Time Magazine about slavery, last few weeks?

"Most wars are fought over wealth distribution or ideology."

I'm thinking that those boil down to effects of population pressures-->requirements to support the population's continuation.  That checks with both: wealth distribution matches 'continue my lifestyle', ideology matches to "I'm safe, you'll keep it up in the future."

And Spanish Civil War was certainly a test bed.  including expeditionary air forces, variously formed military groups that were targeted at various objectives.  With various support structures able to withstand combat rigor.  Or, in the case of  Franco's forces, able to "succeed".

- Ned

Sat, 05/21/2011 - 23:02 | Link to Comment nmewn
nmewn's picture

"Then it became baked that way later."

The victor gets to write the general history of it, yes. Doesn't mean its true, just one version.

For myself, I've always found it a fascinating human event that Forrest would have blacks in his personal bodyguard, his own armed escort, watching over him as he slept, if he did not trust them with his very life. Things are not always as they seem or presented...often one can learn more from what is not said, than what is.

"That checks with both: wealth distribution matches 'continue my lifestyle', ideology matches to "I'm safe, you'll keep it up in the future."

Oh yeah...normalcy. Everyone screams for change until its presented...then they want a mulligan...LOL. 

There is no doubt our government has done some egregious things in the past...but like all history, it has to be viewed in the context of the times.

Now this is our time, this is what we make of how the future will look at us...I think we, as people, are fine. I still think because we come from so many different backgrounds it makes us stronger, not weaker. And I still believe we can "suffer the slings and arrows of outrageous fortune" and survive & prosper.

Like you, I don't sweat the small stuff ;-)

Sat, 05/21/2011 - 19:01 | Link to Comment nah
nah's picture

you will obey

Sat, 05/21/2011 - 18:43 | Link to Comment TideFighter
TideFighter's picture

'Cause Hawaii is way too hot, tick, tick, tick.

Sat, 05/21/2011 - 18:31 | Link to Comment Azannoth
Azannoth's picture

When you're unemployed what else are you gonna do, stit at home and wank ? Better to get some fresh air

This is a snowball effect now, more unemployment -> more protests(disruption to economy) -> more unemployment(more disruption) etc. you can't stop it now, the system has to reset

I put all my euros in silver/gold as soon as the pay check arrives(every month)

Sat, 05/21/2011 - 19:22 | Link to Comment Smiddywesson
Smiddywesson's picture

"I put all my euros in silver/gold as soon as the pay check arrives(every month)"

They just went after our federal pension funds on this side of the pond.  Oops, too late, I already took out a loan against that money and bought physical gold.  LOL

You obviously get it.  I could argue with you about the details, but I spent a lot of time involved in the two party system before I realized the details and politics are the way society puts you to sleep and takes everything you ever worked for in your life.  

Hats off to Azannoth, caster off of illusions, refugee from the Matrix, citizen of Survivastan.

Sat, 05/21/2011 - 18:28 | Link to Comment Stuck on Zero
Stuck on Zero's picture

We could use some of that contagion over here. 

Sat, 05/21/2011 - 18:36 | Link to Comment Azannoth
Azannoth's picture

It's funny that Americans can protest wars, cutting down of rain forests, benefit reductions(public unions, auto unions), but getting openy ass raped they just 'suck it in', Munger was right about Americans after all, you will suck it in till it overflows through your noses

 

2 things are going against America

- your unconditional Patriotism(openly abused by the rulers)

- you're split in Right/Left(in Europe most countries have many parties and people don't stick with 1 party for life) so instead of fighting the system you fight between your selves

- 3rd, you're completely enslaved to Israel both physically and mentally, you can't do any good to your selves when you're so openly subservient to a foreign nation with often opposing political and economical prerogatives

Sat, 05/21/2011 - 22:12 | Link to Comment Rastadamus
Rastadamus's picture

I was with you until Israel. When one states the obvious, I get mad and stop listening.

Sat, 05/21/2011 - 20:19 | Link to Comment DosZap
DosZap's picture

Azan,

Wrong,

your unconditional Patriotism(openly abused by the rulers)

 

It's not unconditional,we have no RULERS, we are Soverign citizens.They have pushed it, and trust me, they are on a lot shorter leash than they know.

When, and if the SHTF, the side that is on the original values, beliefs,and side of the Framers/Constituion will cut the silver cord.

Then all bets are off.

Sat, 05/21/2011 - 20:13 | Link to Comment Bringin It
Bringin It's picture

2 things are going against America

- your unconditional Patriotism(openly abused by the rulers)

- you're split in Right/Left(in Europe most countries have many parties and people don't stick with 1 party for life) so instead of fighting the system you fight between your selves

- 3rd, you're completely enslaved to Israel both physically and mentally, you can't do any good to your selves when you're so openly subservient to a foreign nation with often opposing political and economical prerogatives

-------------------------------------------------------------------------------------

  • Patriotism to a lot of thinking Americans (there are some) is about the protection of and adherence to the ideals and rule of law that the country was built on as embodied in the Constitution.  I would like to think that this group is growing.  Troops for example swear to protect the Constitution.  So do those Promise Keepers.  Where are those Promise Keepers?
  • Left/Right BS parties that run from the same play book? Yes.
  • enslaved to Israel? Yes

Exciting times to be alive.

Sat, 05/21/2011 - 19:59 | Link to Comment High Plains Drifter
High Plains Drifter's picture

look Azannoth, some of us try to tell them but they simply will not listen. they are lost in the fog and never will return. by the way, it is 7:06 PM here and so far, nothing is happening. what is this?  did another preacher lie to uncle HPD?  well i never....

Sat, 05/21/2011 - 19:16 | Link to Comment Smiddywesson
Smiddywesson's picture

Oh yeah Azannoth, well you are...you are...er, completly right.  Never mind.  sorry

Sat, 05/21/2011 - 19:12 | Link to Comment jm
jm's picture

I think the first two reduce to the same fundamental cause:  we are too absolutist in our views.  Even when facts hit us in the face we persist in error.  Churchill said something once to the effect that "the Americans will do the right thing... afte they have exhausted every other courses of action."

You'll see some patriotic fools, but mostly it is just a learned routine, and we have a gag reflex when that routine gets perturbed. A lot of it is just supporting the status quo of welfare, pensions, retirement and other gimmes courtesy of foreign creditors not cutting the credit card.  We'll continue to live in self-righteous denial about all this until they clip the card.

All this political party stuff you talk about is a joke, in my view.  No political party ever gave a crap about anything but itself.

Regarding Israel, they are an ally, maybe not a particularly great one, but the US really can't be choosers.  I think that your view is based more on a widespread dislike of Israel than any enslavement issue.  Much of Europe, not just Germany, shares a guilt complex about the holocaust.  I think Israel is a reminder of a sore issue.  I've talked here and elsewhere to Muslims that I think are reasonably thoughtful and balanced about the Muslim hatred for Jews.  It's such a sacred cow they won't even acknowledge it or they keep it at arms length.

Sat, 05/21/2011 - 19:03 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

- you're split in Right/Left(in Europe most countries have many parties and people don't stick with 1 party for life) so instead of fighting the system you fight between your selves 

Yes we fight among ourselves. Unlike Europeans some of us actually believe we a have right to fail. After which our fellow citizens are not required to emotionally and financially support the failure.

That is difference. The right to fail. The  flip side is the right to succeed. The American Individual who then has sole and total ownership of the finances/property gained through work and effort.

Socialists believe in nothing except what they can steal from others without guilt.

It is the progressives/socialists who are responsible for destroying the American Individual.

 

Sat, 05/21/2011 - 21:56 | Link to Comment Race Car Driver
Race Car Driver's picture

 The American Individual who then has sole and total ownership of the finances/property gained through work and effort.

 

Work and effort? Sure. Some Americans work their asses off. Most working Americans have less time off than any other population on the planet.

But sole and total ownership of finances and property? Not if you live in America, you don't. You don't own your property, your house, or your retirement savings (401K... etc.)... not even your automobile. No one owns these things outright. They are licensed, titled, liened and stipulated. You can use them - but you don't own them.

Try and not pay your property taxes and see if someone with a gun doesn't eventually show up on your doorstep to toss you out. Try and drive your auto without proper tags, inspection and insurance... and see if you aren't confronted by someone with a state issued weapon to arrest and penalise you. Try and cash out your finances without paying serious taxes, penalties and interest - or even not asking permission. Lol.

Americans only own the shit they buy at Wal-Mart... and not much else.

 

 

Sat, 05/21/2011 - 18:25 | Link to Comment High Plains Drifter
High Plains Drifter's picture

http://www.youtube.com/watch?v=MvmkwbvrgBo

a sense of entitlement.

as the traveling wilburies said..

its the end of the line for these crybabies.......
no more money.

http://www.youtube.com/watch?v=cwqhdRs4jyA

Sat, 05/21/2011 - 18:02 | Link to Comment honestann
honestann's picture

Sink the banks.

Tar and feather the banksters.

Sat, 05/21/2011 - 17:54 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Riiigghht... and I'll say that in this next round the Aussie + Canadian housing pops and they too get a mob and nice protest going but they'll be polite seeing as they still have the Queen on their money or I should say currency.

 

 

 

Sat, 05/21/2011 - 18:18 | Link to Comment Kayman
Kayman's picture

Look at the numbers and only Vancouver and Toronto have insane housing prices.  This is a direct result of Chinese buying a "safe" house should the SHTF back home.

 

Sat, 05/21/2011 - 21:26 | Link to Comment Milestones
Milestones's picture

wrong person. Sorry.

Sat, 05/21/2011 - 19:59 | Link to Comment Bringin It
Bringin It's picture

It's that, but it's about getting the wash done too.

Sat, 05/21/2011 - 17:25 | Link to Comment New_Meat
New_Meat's picture
Reconquista bitchez!
Sat, 05/21/2011 - 17:19 | Link to Comment geno-econ
geno-econ's picture

Falek has a valid point as usual, but will disintegration occur smoothly or be preceeded by riots, bank failures, protectionism and the like ? A transition to regional restructuring assumes the global model and capitalism will still be embraced by the masses when in fact it contains many flaws which have caused a worldwide financial crisis pitting the halves and half nots against each other. Freedom ,equality and democracy can go just so far when you are unemployed , hungary and lose hope. Yes, it will be a rough road ahead because many on top are in denial or imbedded with current global interests without regard for the old nation state that still provides soldier warriors protecting and maintaining this global empire. Perhaps bringing back the draft is easier with mass unemployment

Sat, 05/21/2011 - 19:57 | Link to Comment Bringin It
Bringin It's picture

It's about the food.  Once people go a little bit hungry and fear for their food supply, they're ready to start following orders.

Grow your own

Sat, 05/21/2011 - 16:58 | Link to Comment Sudden Debt
Sudden Debt's picture

These are only a few thousand students. This is nothing compared to Egypt.

Spain is a very democratic country and people treated well by the state.

The students that are protesting are high educated students who don't find high paying jobs after leaving school. They take that way to much fro granted!

I didn't just "GET" my first job! I had to work hard for it.

The expectations are way to high. People all think they live in a TV serie where you only have to work 1 hour a week, drive 5 different cars, get to have 2 wives and do fun things all day long.

 

Sat, 05/21/2011 - 17:01 | Link to Comment falak pema
falak pema's picture

besides there are no bulls in the streets so the corrida stays peaceful!

Sat, 05/21/2011 - 18:17 | Link to Comment Kayman
Kayman's picture

And there are no serpent girls in the streets either. Only on their computer screens.

p.s.  you are a little cheeky for a newbie at fight club.  I love the smell of new blood.

Sun, 05/22/2011 - 13:58 | Link to Comment falak pema
falak pema's picture

well I don't know how good is your cape work...but if you left hand knows what your right hand does it could help in a faena...otherwise, sadly sometimes the new blood is not bull blood...

Sat, 05/21/2011 - 16:57 | Link to Comment Kayman
Kayman's picture

May I remind everyone that mass murder of millions of people began in a beer hall in Munich.

Conditions are ripe.  Are they sufficient? I do not know.

Sat, 05/21/2011 - 19:15 | Link to Comment Smiddywesson
Smiddywesson's picture

Confused by this.  The mass murders were emprisoned by the military, not murdered.  Hitler gamed the political system.  The military didn't sweep through Germany at this point in time and perpetrate mass murder.

This is my whole point people, it takes years of craziness to remove the honor from soldiers and make them to unspeakable things in the name of honor.  There will be no use of the military against the American people for some time.  This is not 100 years ago and people know they are being used, if not an 18 year old kid, then his 30 year old sargeant.

This is a cycle change, a global financial Armageddon, and change in the mind set of the masses who trusted the system, but it is not the end of the world.  At least, not all at once.

Sat, 05/21/2011 - 17:34 | Link to Comment magpie
magpie's picture

Americans and Chinese have the Hitler and Stalin material today.

Europe might have the Evita Peron / Fidel Castro potential, nothing more, probably less (think DSK actually being elected, or German Burlesqoni.)

Sat, 05/21/2011 - 19:58 | Link to Comment Bringin It
Bringin It's picture

Many DSK's did get elected. 

Sat, 05/21/2011 - 17:06 | Link to Comment caconhma
caconhma's picture

WOW. Your brains are totally brainwashed by zionist & communist propaganda.

Sat, 05/21/2011 - 17:00 | Link to Comment falak pema
falak pema's picture

go back to the Caymans and eat tax havened usd.

Sat, 05/21/2011 - 17:14 | Link to Comment Kayman
Kayman's picture

  falak pema

My, oh my, what piercing wit we have today.

Elucidate, my little friend.

Sun, 05/22/2011 - 13:53 | Link to Comment falak pema
falak pema's picture

I'll try... whenever a guy says the US has to police... I feel like saying...no dice...especially as the Canucks can beat you guys any day of the week at ice hockey...so your beer fest analogy is fishy and smells of oriental bashing... try a plate of peking fried duck with your home made duck soup.

Sat, 05/21/2011 - 16:56 | Link to Comment sabra1
sabra1's picture

why don't they release some bulls? make it T.V. worth watching!

Sat, 05/21/2011 - 17:00 | Link to Comment Sudden Debt
Sudden Debt's picture

AND DUMPTRUCKS OF ROTTEN TOMATOES!!

 

Sat, 05/21/2011 - 16:59 | Link to Comment Arch Duke Ferdinand
Arch Duke Ferdinand's picture

Five Reasons Why Canada's four Western Provinces are the Safest Quadrant on our Planet...

http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/03/why-canadas-f...

Do NOT follow this link or you will be banned from the site!