The Reign In Spain May Soon Be Over

Tyler Durden's picture

From Mark Grant, author of Out of the Box

The Reign In Spain May Soon Be Over


"Double, double, toil and trouble; fire, burn; and caldron, bubble."


                  -William Shakespeare, Macbeth

Knock knock; wake up and smell but it will not be the scent of roses that will fill your nostrils this morning but the singe of burning flesh. “Wolf” has been cried so many times that no one is paying any attention but I think that the robed man with the scythe is at the door and that he is about to enter the room. I first warned about the Spanish banks in June 2010 and suggested exiting from the credit of Spain around that time and while firewalls were built and all matter of supporting statements were made to protect the fourth largest economy in Europe it was all to no avail as demonstrated quite succinctly by the comments of the Budget Minister in the Spanish Parliament this morning:

“There’s no money in the public coffers.”

I am on the record stating that to fix the problem in Spain will require approximately $350-400 billion dollars. This was my assessment of the regional debt and of their banking problems. This number did not include their national government which seemed to be in decent shape and which obviously is not. It may be that the bank problems and the regional issues overcame the national government but one thing is now quite clear; Spain is in real trouble and the $125 billion for Spain under discussion in Europe will not even come close to fixing the problem and by the looks of things the money will not be coming too soon so that Spain could actually default on some of its obligations.

The Budget Minister went on in Parliament, this morning, to proclaim that “There is no money to pay for public services” which is quite a statement to make after the Prime Minister had told everyone that Spain was fine and that only the banks were having some issues. Of course this same Prime Minister said bailing out the Spanish banks was a “Great victory for Europe” so we already know that he is suffering from some serious psychological deficiencies and needs some help. Poor Mr. Rajoy; where is Sigmund Freud when you need him?

“The European Central Bank intervened in the secondary market to buy public debt to avoid the European monetary system collapsing. Spain would have collapsed without this intervention.”


                 -Budget Minister Montoro in Parliament this morning in Madrid.

The Spanish ten year is back at 7.00% now in London and the auctions they held today were nothing short of dismal on every count. Germany may well be holding the next Spanish Inquisition soon and it is all but a certainty now that a full scale bailout for Spain is about to be debated. Watch for the arrival of the Men in Black in Madrid. Spain is the ultimate proof of what I have contended during this entire process; firewalls do not work and ring fencing the weaker countries has not done one thing, nothing, to cure the sickness of the troubled nations in Europe. Spain is now verging on disaster and you may expect a rapid infection spreading into Italy. Just remember, everything is always fine right up until the moment when it is not and I fear that the “when it’s not” moment is very close upon us now.

Recently two noted Spanish economists were interviewed. One was always an optimist and one was always a pessimist. The optimist droned on and on about how bad things were in Spain, the dire situation with the regional debt, the huge problems overtaking the Spanish banks and the imminent collapse of the Spanish economy. In the end he said that the situation was so bad that the Spanish people were going to have to eat manure. The pessimist was shocked by the comments of his colleague who had never heard him speak in such a manner. When it was the pessimist’s turn to speak he said that he agreed with the optimist with one exception; the manure would soon run out.

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GetZeeGold's picture



Spain.....has left the building.




sunaJ's picture

The snippet about the two Spanish economists is not even referenced.  If you are going to make a story about the chaos in Spain and use it as part of your powder to demonstrate that the end is at hand, at least reference the economists or the debate, or explicitly state it is a fabrication, used for effect.  Otherwise it comes across as cheap.


machineh's picture

Ditto -- I wanted to read the original in Spanish.

Absent a reference, it's a tall tale that a Spanish economist would speak of his people eating manure.

Not that there's anything wrong with coprophagia ...

SubjectivObject's picture

Whew!  I am happy to realize that I'm not as clueless as ... others ...

I am more equal than others's picture

The pain in Spain falls mainly on the plains but who is to blame?

Darth Hayek's picture

Funny, it seemed clear to me it was a dark-humored joke.  Not as big a joke as the Eurozone's ongoing financial Ragnarok, but a joke nonetheless...

Marty Rothbard's picture

I found the anecdote about the economists humorous, rather than cheap.  Although, the huge amount of manure, contained by the vast majority of economists, who are Keynesians, precludes it from being true.  There is no manure shortage.


lunaticfringe's picture

It never ceases to amaze me- what people take offense to. I like my manure baked to a golden brown, crispy on the edges.

Manthong's picture

I liked the anecdote..

Though I would like to see a citation, I will accept a literary license justification.  

CPL's picture

France actually...happened on Monday and nobody noticed.

LawsofPhysics's picture

Just after Bastille Day you know, ah the irony.

TheFourthStooge-ing's picture

More than anything, the banksters and politicians fear the truth. They will do anything and betray anyone to escape from reality.

These fuckers wield the levers of power and they're more delusional and disoriented than an American Idol frequent voter after a super-sized happy meal of bath salts.

Could someone please remind me why weed is still illegal?

Monedas's picture

I feel your Spain !       Monedas      1929         "Statist filth in a stew ?  Randian filth to the rescue !"....Monedasbrother

Peter Pan's picture

Spain and Greece are the most fortunate nations in Europe. They will be the first to exit the Euro and hence the first to get on the road of recovery free of IMF, ECB and other debtors.

Monedas's picture

"Head Start Program" for the Euro-Niggahs !

Doubleguns's picture

Let me fix that for ya. Iceland is the most fortunate. They have even begun to prosecute bankers.

toncuz's picture

And since the progressive voting blue states in America have been paying through the nose for the conservative voting trailer park Republican welfare states for the past 30 years...will states like New York be the American version of "Germany"???

Let's take a look at the conservative welfare machine that's been pillaging America...

1- The trillions in off shore tax evasion scams by major corporations and the rich who evade taxes, especially DURING WAR. In any other country...this is called TREASON.

2- The US tax dollars that fund the "Faith Based Initiative" to churches across violation of the US Constitution.

3- The US taxpayer funding of the same cult houses (religion) that PAY NO TAXES while they use our infrastructure of roads, bridges, police and everything else that supports society.

4- The billions in subsidies to oil and gas companies...WHILE THEY POST RECORD PROFITS.

5- The farm subsidies that go to people like Michelle Bachmann and other Republican business people disguised as public servants.

6- The contracts to privateers making billions in the military-industrial complex who bribe Congressmen to keep perpetuating Northhrop and Halliburton.

7- The prison-industrial complex that bribes states to write strict laws that keep their jails full so they can charge $200 dollars per day per prisoner to the US taxpayer in yet another PRIVATIZATION SCAM. While government is non-profit...privateer PROFIT is worse than any goes into yachts and mansions...not your roads and bridges.

8- Billions lost in revenue because corporate executives and the rich pay 15 percent in taxes while the rest of us pay 23 percent. turns out the greatest thieving pigs of society are called CONSERVATIVES.

Ivanovich's picture

Bullish for the market, apparently.

LULZBank's picture

Markets are suffering from Stockholm Syndrome.

jover's picture

I would grill me a bankster instead of manure.


LULZBank's picture

Good substitute. They are equally full of shit.

ATM's picture

I would be grilling me some bureaucrats.

LULZBank's picture

Just the wind then?

FEDbuster's picture

Next year the mob will be chasing the bulls in Pamplona with butcher knives.

HurricaneSeason's picture

So, you're saying there is a difference?

falak pema's picture

Dip the spanish Oligarchs in it until they all die; then call in Hercules to clean out the stables. There are the Ebro, Tajo, Duero and Guadalquivir for him to use. 

Guadalquivir - Wikipedia, the free encyclopedia

I'm going long windmills in Spain! 

Beastmanager's picture

When the manure is gone, they will eat the germans

infotechsailor's picture

I get why the other europeans try to make Germany look like the bad guy here, but they have to remember just who is bailing out who .

When it comes back to USSA, will it be Texas and Florida playing Germany? Or will Congress be the battlefield, as the Pelosis & Boehners battle for the money to bail out their homestates? Will some states look to borrow direct from foreigners in exchange for sweet trade deals ?

Interesting times we live in friends

ATM's picture

They won't have to battle for the money. The Bernenke will print plenty for everyone!

infotechsailor's picture

If only the Bernank would give each state 100 billion dollars, all our problems would be solved!

LawsofPhysics's picture

I have been hoping that resource-rich, producitve states would leave the union for some time now.  Texas has the only viable path from a constitutional perspective.  Atlas continues to shrug either way.

Look for those who's labor isn't worth shit to start kicking and screaming about how "unfair" everything is for the foreseeable future.

Time for humanity to learn the hard way what wealth really is, again.

Bicycle Repairman's picture

"Texas has the only viable path from a constitutional perspective."

I believe Mr Lincoln changed the constitutional perspective permanently.

LawsofPhysics's picture

Well you better go tell that to the texas institutions and new texas banks that have been buying physical gold since 2001.  I think they have their own ideas.  FYI, a significant portion of the U.S.'s volunteer military comes from texas and yes they have nukes too.  All economies are local, always have been.

Lednbrass's picture

Yep, the South in general is overrepresented in the military as are the non coastal Western states. New england is greatly underrepresented.

See Section II DoD active component, figure 16 for the regional percentages and figure 17 for per capita recruitment by state. The state by state ratios in 17 are quite interesting, the per capita ratio for Texas is far higher than any of the other large population states.

Bicycle Repairman's picture

Mr Lincoln scrabbled together a pretty good army from the northern states.  I believe they won.  And he freed the slaves.

Lednbrass's picture

This is true, but it is a very different world now.

Lednbrass's picture

In terms of dollars for all reasons received from the Federal government vs. federal dollars paid in taxes, Florida was the #2 gross recipient in the entire nation during 2010 at $75,339,258,000.

Virginia was #1 at $78,128,254,000 and California #3 at $60,455,894,000.

Texas is in the top 10 at $36,582,888,000 received over federal taxes paid.

The only significant net losers are New Jersey at -$37,952,547,000, Minnesota at -$23,634,129,000 and Delaware at -$7,251,877,000, and Illinois at -$1,071,760,000. All the other states are on the borrowed money gravy train.

2010 consolidated fund report (see Tables 13 and 14)

IRS tax collection data by state,,id=206488,00.html

LawsofPhysics's picture

Might be interesting to overlay that data with military bases and military contractors.  Dare I say it, same as it ever was.

Lednbrass's picture

There is some correlation for sure, I believe that is under the "Procurement" tables in the Funds report.

When you look at it in terms of who is in the military in the other link I put up, this is the basis for the often repeated claim that the north and left coast fund everyone else. Well, that and the fact that retirees from those areas infest the southern states in large numbers. When you look at straight up grants and who gets the free checks, it is a considerably different picture.

TNTARG's picture

Do not make mistakes: EVERY country belonging to the Eurozone PUT MONEY into the "bailout funds" like EFSM and other and of course, into the BCE.

So it isn't Germany who bailout Greece, Spain, etc. but everybody has to PAY TO THE BANKSTERS (which is what's coming on: States treasuries are beign plundered by private banks. In fact, the ECB is a private bank owned by private central banks that of course, do not belong to the States but to other banks). So there's the perversion of the System: States have to give money to the ECB and "European bailout funds" TO BAILOUT BANKS. Everybody is paying: Every taxpayer is paying among the Eurozone.  Banksters are getting richer and richer with people's money, work and suffering. And this can go on for... How long?

Cast Iron Skillet's picture

... and if the Germans don't wanna get et?

AUD's picture

the auctions they held today were nothing short of dismal on every count

I read earlier that the bid was still for twice the amount of debt on offer. Yields might be rising & their might be no money in the coffers but banks are still buying up every bid of ECB backed government debt they can get their hands on.

LawsofPhysics's picture

Yes, buying while the upper management and owners prepare their private islands for an extended stay.