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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:

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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.

 


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Sat, 05/21/2011 - 22:14 | Link to Comment Sam Clemons
Sam Clemons's picture

So assume it is fake - nothing is going to happen because TPTB won't let it. 

 

This definitely should make us wonder WHY he was placed there, and what else is coming.

Sat, 05/21/2011 - 20:28 | Link to Comment Fiat2Zero
Fiat2Zero's picture

Do you get tired of being right and only having the tin-foil hat wearing brigade believe you? I for one put my tin-foil hat on and salute you sir!

Sat, 05/21/2011 - 20:11 | Link to Comment NewThor
NewThor's picture

Tyler Durden got junked.

100% proof Ben Bernanke reads ZeroHedge.

 

 

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

I find that a little hard to swallow TD.

You, like most of your readers, have seen this building most of your adult life.  You knew it would all come to an end.  Maybe you didn't know it was Greece, or Spain, or the LinkedIn IPO, but the details never matter when a country maxes out its credit cards, the end is inevitable.

What wasn't apparent to me until a few years ago, was that global trade has made everything so much worse.  It used to be that some countries sat out a recession/depression, or at least entered into it earlier or later than their counterparts, so that countries could aid each other, if for nothing else than there was an economy somewhere that needed to trade because they weren't in the same cycle.  Global trade put every economy in the same cyclical pattern.

We are learning what happens when all systems are linked on a global scale.  You lose any robustness of a normal global economy.  Everyone experiences the same problems everywhere, at the very same time.  Efficiency isn't always good.  A deuce and a half is robust, a Lambergini is efficient.  If some sand gets in the truck's tank, it may still run.  If one grain of sand is ingested in a high performance sports car, not a good thing.  Efficiency is real bad when you can't quantify your risks, which is the core reality of economics.

Anyway.  TY for a great job.  We all know the End Game, but we just don't know the when.

Sat, 05/21/2011 - 19:48 | Link to Comment DosZap
DosZap's picture

What wasn't apparent to me until a few years ago, was that global trade has made everything so much worse.  It used to be that some countries sat out a recession/depression, or at least entered into it earlier or later than their counterparts, so that countries could aid each other, if for nothing else than there was an economy somewhere that needed to trade because they weren't in the same cycle.  Global trade put every economy in the same cyclical pattern.

 

Should have been obvious Bro...............

Thank the  formation of the United Nations, and J D Rockefeller..........this was the GRAND experiment as THE way  to end all wars.

 

Interdependence on each other, would create a financial/business relationship.

 

Thus why go to war?,if you did you were only shooting yourself in the foot.

 

The idiots,(idealists,NWO Crowd) failed to realize that as Individual nation states one could catch the Pox, and not spread it to all the others.

 

Now, all are in the same house.

 

When one catches it, ALL GET IT.

There is a NO fullback position...................

Sat, 05/21/2011 - 22:09 | Link to Comment New_Meat
New_Meat's picture

"... There is a NO fullback position..................."

However, Jerry Jones is hiring Fullbacks, Tailbacks, and Scatbacks, if they can meke the 'boyz able to play football.

;-) - Ned

Sat, 05/21/2011 - 20:41 | Link to Comment Bringin It
Bringin It's picture

An efficient economy would not have the Fed.

Sat, 05/21/2011 - 19:38 | Link to Comment Bringin It
Bringin It's picture

An efficient economy would not have the Fed.

Sat, 05/21/2011 - 16:30 | Link to Comment Tater Salad
Tater Salad's picture

Glen Beck has been predicting the contagion of these uprisings for years now.  He's the first one that saw this starting in the East and then spreading to Europe.  Eventually, yes even the U.S. will have to deal with the idiots born every 30 seconds.

P.S. Egypt went from dictatorship to military dictatorship.  What happens when you topple a democratic state?  Yeah, that sounds so fantastic, I'm sure it will be unicorns and glitter.

Tards!

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

sadly the wages of the damned...

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

what? the two tier euro? or fun and games in Madrid?

Sat, 05/21/2011 - 15:47 | Link to Comment falak pema
falak pema's picture

Here we go ...two tier Euro ...or its bust!

Sat, 05/21/2011 - 16:39 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

I asked some acquaintences if they heard about the protests in Spain.  They thought I was talking about a punker band. 

Everyone knows how this all ends, right?  This is going to be the worlds greatest non-surprise ever.  For those who were sleeping in their history class, it all ends in default, because it has ALWAYS ended in default. 

Sun, 05/22/2011 - 17:33 | Link to Comment rsi1
rsi1's picture

The protests are NOT about austerity, even though the media tries to blame them on that, they are about people being sick and tired of the political system of the country, where two super incompetent and highly corrupt parties blame each other all the time and critizise each other while doing absolutely nothing other than that. It is of course not the only country that has this issue, but the high unemployment, construction bust, etc.. has made this feeling stronger and hence the protests, to have real leaders and politicians for once.

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