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Spain: The Ultimate Doomsday Presentation

Tyler Durden's picture


Since we have grown tired of variations on the theme of "The Pain in ...." (having been guilty of encouraging it ourselves), we will spare readers this triteness, and instead summarize the attached must read slidedeck from Carmel Asset Management as the ultimate Spanish doomsday presentation. Naive and/or idealistic Spanish readers are advised to resume sticking their heads in the sand, and to stay as far away as possible from the attached 54 pages, which prove without any doubt why not only was Greece the appetizer (have your UK law:non-UK Law divergence trade on yet?) but why things in Europe are about to get far, far worse, as the Hurricane shifts to its next preferred location, somewhere above and just south of the Pyrenees.

In summary, here are Carmel's five reasons why Spain's problems are worse than the market anticipates:

1. Spain’s national debt is 50% greater than the headline numbers

Spain’s debt-to-GDP balloons from 60% to 90% of GDP with regional and other debts

2. Spain’s housing prices will fall by an additional 35%

Spain built one house for every additional person added to the population during the past two decades; the fall will decrease GDP by ~2% each of the next two years

3. Spain has “zombie” banks with massive loans to developers and to homeowners

Banks have not begun to realize losses and are vastly undercapitalized

4. Spain’s economy has not stabilized and will continue to deteriorate

Spain has the highest unemployment in the developed world, one of the highest overall debt loads, and the most uncompetitive labor market in Europe

5. The EU will not have the firepower or political will to bail out Spain

Rescue fund headline numbers are misleading and count capital that is not yet committed

And here are the problems that will manifest themselves over the next 12 months:

  • Spain’s true debt burden will pass the 90% “tipping point” identified by Rogoff and Reinhart
  • Housing prices will fall further and faster than anticipated (consensus is 15%; CAM estimate is 35%)
  • Banks underestimate the residential real estate loan defaults (consensus estimate is 2.8% vs. CAM estimate of 11%)
  • Expected housing price depreciation and loan defaults will deepen Spain’s recession (additional 2% contraction in 2012 and 2013)
  • Spain will need to refinance €186.1 Billion in 2012 alone

End result: surging CDS and/or plunging bond prices, if faith in the sovereign CDS market continues to be at rock bottom lows courtesy of ISDA nearly blowing its own head off.

Full presentation:



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Sat, 04/07/2012 - 13:58 | 2324722 Silver Bug
Silver Bug's picture

The debt crisis is going to continue to get worse across the western world. There is no option except QE to infinity at this point.

Sat, 04/07/2012 - 14:48 | 2324742 DormRoom
DormRoom's picture

yeah, but QE & Oeperation Twist  allows the Central Banks to transfer risk/debt to its balance sheet, increasing money reserves, but not money.  As long as the velocity of money is low, they can keep keep on doing this, and contain inflation.  Though there will may be leakage (oil/commodity speculation), currency inflows to the BRICS, stoking inflation there.


The intent is to keep the yield curve low (Operation Twist), and provide market liquidity (QE) for  businesses & incentivize government to borrow & spend, as household deleverage.  They can fulfill the price stability side of the mandate.  But full employment requires assistance from the fiscal authority.


Keep in mind that the worries about a credit crunch have dissipated sine QE.x.  As of yet, no borrowing from the government despite record low rates from Operation Twist.


Also, it's not like the Fed is going into this blind.  Japan experienced the same liquidity trap in the mid to late 90s.  The problem with Japan was that the series of stimulus were continually below necessary levels.  So if the US can provide a SINGLE LARGE enough dose (relative to GDP) of stimulus, it can probably side-step Japan's debt problem.

Sat, 04/07/2012 - 14:51 | 2324827 JPM Hater001
JPM Hater001's picture

I've heard this velocity of money argument against hyper-inflation developing but I think it's important to remember that there is no 0-60% governor. Money sure seems to be moving quicker to me. About 11% and I don't think we are really prepared for fuel prices to hit consumption. What we consume now was manufactured 4 to 6 months ago.

Thanksgiving average fuel price was 3.31. Today of course 3.93.

That's almost 19%. Now imagine that companies have trimmed to offset but that has ended. They have to pass value eventually on for the benefit of the shareholders. That may happen slowly or nearly all at one. Much higher than 19% and you are into month over month double digits....especially with ben's printing fiesta.

Sat, 04/07/2012 - 15:33 | 2324897 Non Passaran
Non Passaran's picture

... over a period of 20 years.

Which CB does NOT have such plan?
Nothing to see here...

Sat, 04/07/2012 - 15:37 | 2324908 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The dollar has lost 98% of its purchasing power over its lifetime.  So a 33% loss on its % of purchasing power means what?

Easy math:  The dollar is dead - Long live the dollar.

Sat, 04/07/2012 - 16:01 | 2324938 The Big Ching-aso
The Big Ching-aso's picture



Sounds like you think 'balance sheets' don't mean shit.  If so, why can't I transfer all my debt to a 'balance shit' too?

Sat, 04/07/2012 - 21:49 | 2325390 derek_vineyard
derek_vineyard's picture

only in a dorm room will fed policies be believed

dorm room gunna git a rude welcome to this real world

Sun, 04/08/2012 - 18:29 | 2326706 Ayreos
Ayreos's picture

Spain can only go down, it's all about Italy. The EU can take spain by queezing their all, but not if Italy pushes more shit into the fan.

Sat, 04/07/2012 - 16:01 | 2324941 Straying from t...
Straying from the flock's picture

It is the normalcy bias that keeps us from standing up for ourselves.  Separate yourself from the herd.  Soon there will be a new paradigm and those not aware will be fodder for the masses.  People do many odd things when you take away their future.

Sat, 04/07/2012 - 16:45 | 2324999 macholatte
macholatte's picture


The EU will not have the firepower or political will to bail out Spain



"The answer is simple: In today's world, we cannot afford the luxury of staying in our own mental backyards."

IMF chief calls on US for more cash


Sat, 04/07/2012 - 18:13 | 2325110 TBT or not TBT
TBT or not TBT's picture

Let's stay in our physical backyard then. 


We get 80% of our oil from this hemisphere, and could get all of that way, by weeding out our mental backyards enough to duh, deregulate and enable shale and oil sands imports, just for starters.  Let the GD MF pansy Europeons fight with the whole of the Eurasian continent over the oil from Shoddy Retardia and Northern Kleptistan(formerly Russia).

Sun, 04/08/2012 - 10:54 | 2326090 hungarianboy
hungarianboy's picture

In the meantime gold will be dumped all over the place :)


Sat, 04/07/2012 - 21:11 | 2325341 killallthefiat
killallthefiat's picture

33%?  I want gold at $10000 now.  Don't care but I want it noooooooowwwwwwwwwwwww.

Sat, 04/07/2012 - 15:36 | 2324902 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

V is relavent in terms of p, the price index.  Bernanke is fixing prices, and he touched on this during his GW lecture. 

Welcome to the USSA

Sat, 04/07/2012 - 16:13 | 2324961 LawsofPhysics
LawsofPhysics's picture

You are correct sir. just ask yourself how capital controls and price fixing has worked out before? Moreover, when manufacturers and producers can not get the prices they want, they stop producing and manufacturing. History shows very clearly that you can have hyperinflation without increasing the money supply or velocity. If there is a single gallon of milk in the city, it will be fucking expensive. Especially if the producers have been long since forced out of business.

Fucking morons.

Sun, 04/08/2012 - 20:57 | 2326938 lasvegaspersona
lasvegaspersona's picture

moreover if there is a ton of gold but the owner will not part with it for any amount of cash the dollar becomes soon..

Sat, 04/07/2012 - 17:52 | 2325069 Caviar Emptor
Caviar Emptor's picture

There doesn't need to be a big pickup in th evelocity of money for pain to be acute under biflation: just like if you're standing in quicksand, even a low stool will eventually seem high and out of reach

Buying power of the dollar continues to deteriorate as the crushing combo of higher prices combines with a sagging economy (decreased pay, employment and social mobility). 

One of the key problems is that the extra liquidity "pumped into the economy" by the Fed gets sequestered into an ever diminishing number of already rich hands (which have no intention to redistribute). 

Sat, 04/07/2012 - 21:25 | 2325344 Die Weiße Rose
Die Weiße Rose's picture

to determine the value and cost of anything, I find it helps

when we convert any given volume to a smaller unit:

for example Crude Oil:

1 barrel of oil (bbl) is defined as exactly 42 US liquid gallons.

 1 barrel of oil (bbl) = 42 US gallons = 158.987294928 litres


 therefore 1 barrel of crude oil (bbl) at $100 USD per 42 US liquid gallons:

1 US Gallon of crude Oil ($100 USD ÷ 42 US Gallons) cost = $2.38 USD

1 litre of crude Oil   ($100 USD ÷ 158.99 litres) cost = $0.63 USD

1 litre of crude Oil costs about 63c

therefore Oil @ $100 USD (bbl) is cheaper than water in the US...

but then you still got to refine the crude Oil into Gasoline,

unless it is the sweet crude Oil produced in Iran,

that comes already sweet and refined out of the ground..


Sat, 04/07/2012 - 16:46 | 2324981 Atomizer
Atomizer's picture

@ DormRoom Masterbater

In the wake of the Asian financial crisis, many regimes in Asia adopted stricter provisioning requirements, as well as discretionary measures, with the objective of increasing provisioning in good times in response to rising levels of risk. Based on a final sample of 240 banks in 12 Asian economies, the evidence is that countercyclical loan loss provisioning has dominated throughout emerging Asia, most strikingly so in the case of India. Thus, loan loss provisioning did not simply become more conservative at all points in time subsequent to the Asian financial crisis, but actively leaned in a fashion that ameliorated swings in earnings and the macroeconomy.

When the BRICS stack up

Just a little info to look at before forming a Muppet Stream Media parrot reply. For example..

BRIC Members Will Not Reach Agreement: Expert

Wed 28 Mar 12 | 06:45 PM ET
Donald Straszheim, Senior Managing Director, China Research, I-S-I Group believes BRIC nations will be unable to reach a consensus at their Annual Summit due to the fundamental differences in their economies.

Sat, 04/07/2012 - 17:20 | 2325041 DormRoom
DormRoom's picture

what?  None of that is remotely relevant to the arguemnt that the US in a balance sheet recession, and a liquidity trap. 



Richard Koo provides a better argument on how the US can get out of its liquidity trap.

Richard Koo presents to the Argentine Central Bank.

Sat, 04/07/2012 - 17:15 | 2325034 CryingBear
CryingBear's picture

i junked him too but i don't know why he got junked so much. i think he has a good argument here.

Sat, 04/07/2012 - 18:52 | 2325178 Market Efficien...
Market Efficiency Romantic's picture

Velocity is a pseudo explanation trying to disrupt the mechanics of money supply. In essence it only is a measure of how well money supply finds their intended receiver and provides him with the benefits while shifting the inflation logic into the future via commodity production investment (driving prices of future basic products which much later hit the US consumer via the latest igadget price tag). Alternatively, money supply ex-post compensates the debt-driven income inflation of financial asset holders and managers (deleveraging and sovereign carry trade).

Technicall, I follow the argument of monetary action to distribute liquidity shocks over time and the need for fiscal policy to counter solvency issues.

But with all technical legitimation, look at the real effects on larger parts of society:

First, cash assets are devalued, however with a delay, so that the devaluation lever can be built over time. Hyperinflation is only the tip of the iceberg, the visible delayed consequence of prior action. That I call planned cold devaluation.

Second, real assets as the net worth of a society will be taxed significantly legitimized by the need for fiscal policy. It has to be taxation of assets, as income taxation would even further deteriorate macroeconomic dynamics via lower spending on consumption. This is planned de-facto asset deprivation.

The global scale and seeming predefined outcome suggests that this is meant to mark the tipping point towards equal men without assets, but much debt and no de-jure or de-facto sovereign power to regulate possible sanctions on defaulters.

Sat, 04/07/2012 - 19:31 | 2325232 Market Efficien...
Market Efficiency Romantic's picture

"money supply ex-post compensates the debt-driven income inflation of financial asset holders and managers"

That's the Bernanke/Draghi recursive Ponzi. A second order Ponzi to laterally shift relative wealth within society. Inflate relative class income through financial asset price balooning and financial asset management rewards, refinance it with democratically underlegitimized central bank printing and then let all of society carry the bag in form of inflation.

The large share of debt in the composition of financial asset values is by definition transitory, so how can benefits be realized and manifested, especially in the light of direct need to refinance by central banks with 'public money' now. Madoff was not acquitted even though he had committed the crimes prior to the public realization that the money was gone. This is not meant as an ethical question, though. Once the simple three-step-logic of 'privatize gain - anonymize amount - socialize loss' is politically, sharply articulated in the light of massive net worth losses, the financial sector will feel some very painful hatred from the masses.

Sat, 04/07/2012 - 18:55 | 2325181 AbelCatalyst
AbelCatalyst's picture

Yo DormRoom! Wake up and smell yourself! Good to see some plants from the FED are here trying to seed the conversation. The only issue is the people here understand the nuances of your arguments - they know that QE will lead to higher gas prices and flat incomes.

The know low interest rates will kill pensions. They know that a weak dollar means higher food prices. They know that the free market does a far superior job regulating the markets and the tinkering that you're discussing. We know that having companies with poor business models go bankrupt is a good thing - failure is an option in the real world which makes one think long and hard before one allocates their individual resources.

We know that risk is a good thing and that consequences are an essential part of life. When you remove the net people are far more cautious, more aware of what they are doing, more self sufficient. The removal of risk and consequences are toxic because risk and consequences will always show up in some form or another. The pressure will build and this tinkering by Central Planners is going to end in a very dark place.

Sadly, it all could have been avoided but now the people who are the most vulnerable will suffer for the selfish and greedy bastards who brought us to this endgame. Shame on all of us for allowing this to happen!!

The darkest hour precedes the dawn!

Sat, 04/07/2012 - 20:26 | 2325295 centerline
centerline's picture

You are falling into the "government debts don't matter," closed-system bullshit of neo-classical economics.

Some ideas look great on paper but fail miserably because they don't account for the fact the system is captured and beholden to financial interest instead of the interests of any nation.

Also, the "massive boost in government borrowing" completely ignores the downstream effects on other currencies, import/export balance, etc...  the stuff that trade wars (and real wars) are made of.  Remember that the USD is the reserve currency.  And when it stops being the reserve currency, the party is over for the US.



Sat, 04/07/2012 - 21:25 | 2325358 GMadScientist
GMadScientist's picture

What they cannot do is convince people who have savings to invest in obviously fraudulent markets, buy houses above fair value (a.k.a re-inflate MBS bubbles), or spend money they don't have after getting raped at the pump. Pretending that saving over-leveraged people with poor math skills and a bad gambling habit is a way to manage a currency or that skewering working people with commodity price skyrocketing (even if he doesn't count it as inflation) will bring jobs back is the worst kind of cargo cultism. To say nothing of the effect this lunacy has on countries that aren't OECD debt-whores.

Sun, 04/08/2012 - 08:23 | 2325914 Chumly
Chumly's picture


Um,...well,,...never mind...

Sun, 04/08/2012 - 12:04 | 2326194 AGuy
AGuy's picture

"increasing money reserves, but not money."

Incorrect because the gov't spends the money it borrows from the Fed. This money enters the economy increasing the amount of money in circulation. Operate Twist is also increases the Money supply because the it frees up capital by providing the means for current bond holders of long dated bonds into cash.Consider that operation twist is permitting China to dump its long term bonds at a higher value then they purchased them (years ago when rates were higher). Then China uses the cash to purchase Oil, gold and other tangable assets. We have a lose-lose scenerio.

In addition, Primary dealers borrow from the Fed and purchase short term bonds creating stealth QE, since the fed is indirectly purchasing Gov't bonds. These purchases do not appear on the feds balance sheet, Yet the Fed is still purchasing gov't debt.

"The problem with Japan was that the series of stimulus were continually below necessary levels"

No the problem is that Japan choose to not fix the primary causes by permitting bad assets to be written off as loses and permit real estate prices fail to health valuations. All it did is extend the recession for 20+ years. Japan is worse shape its ever been and is closing into a Greek style crisis with too much gov't debt and no growth. No matter how much and how hard the Japanese gov't tried to stimulate it failed, again, and again, and again...

Consider that in 1925 the US suffered a terrible depression caused by a real estate bubble. but because market forces were not interfered, it lasts a mere 18 months and the economy bounced back better than before. When the market is manipulated crisises last for years if not decades (examples, the Great Depression and Japan's 20+ year recession).

At this point all this is irrelevent, The US is completely insolvent and its going to collapse. The only thing preventing a fast crash is money printing, but that can only go on for so long because the currency will eventually become worthless. The only wildcard is a engineered global war to stimulate the economy and distract the public and the rest of the world from the real issues. Next up is Iran.






Sun, 04/08/2012 - 18:19 | 2326685 steve from virginia
steve from virginia's picture


Heh, heh ...

you were doing good there, sonny w/ the QE non-inflation (it's moral hazard that causes the increase in the money supply, that and wishful thinking).

Where ye go wrong is not questioning wot the debt is to be used for. More of the same means bankruptcy!

Big problem for Spain is it borrowed so it could waste capital: it needs to borrow to obtain more capital AND service its legacy loans!

Nobody has gotten serious about this little problem so it gets bigger until someone pays attention. Greece should have caught the peep's eye but the whole matter was papered over. "Deadbeat Greeks!" the Eurocrats cry but the real culprit is peak oil.

Borrowing to buy fuel and burn it up for nothing. The world's business plan since the end of World War ... One! So ... Greece goes ... then Spain ... Then Ireland ... Japan ... China ... there is nothing to stop the process, the entire world's econmies are headed for the hopper one after the other, big ans small alike, what happened to Greece will happen to all ... Somalia, Yemen, Afghanistan.

Plan B is stringent conservation, cut fuel use by 2/3d to start. Alternative is what is underway in Spain, conservation by other means.

Tue, 06/05/2012 - 12:37 | 2496255 Troy Ounce
Troy Ounce's picture the households deleverage.... So when everything is reasonably paid off and debts are at a "normal" level the households will run back to the mall and start spending like the early days....??? American consumers are not stupid! Welll...having said that...OK

Sat, 04/07/2012 - 14:14 | 2324762 bank guy in Brussels
bank guy in Brussels's picture

Yes, as Jim Sinclair said long ago, at the end, it is the only tool in the Western toolbox:

Monetise, print, and inflate.

Mario Draghi has already started with the LTROs. They are over for the moment, but their short-term effectiveness, means More and Bigger Money Printing are next.

This was really covered well in another ZeroHedge article a few days ago, extensively quoting David Zervos at Jefferies.

Yes, Spain and Italy do menace to blow up Germany and northern Europe, because our banks, pension funds and insurance companies own the Spanish and Italian bonds.

But Germany and the north will not admit to their people that their pensions and insurance annuities cannot be paid in actual value ... which they would have to admit if they let Spain, or Italy, blow up, which would in turn blow up northern Europea.

So even the Germans, kicking and screaming, will finally consent to monetise, print and inflate ... the only strategy to prevent the Northern European citizens from seeing the truth too quickly, and the only strategy to keep Spain and Italy going in the Ponzi game as well. Great ZeroHedge piece:

Sat, 04/07/2012 - 15:30 | 2324887 The Limerick King
The Limerick King's picture



The threat of systemic collapse

From world-wide liquidity traps

Means choices are moot

There's only one route

The FED must keep open the taps

Sat, 04/07/2012 - 19:53 | 2325256 Market Efficien...
Market Efficiency Romantic's picture

I agree with most of your argument, but I wouldn't be so sure about Germany taking infinitive printing (even if successively doubled) based on the scare of facing truth. The real effects of printing and taxing assets will hit people much harder than adjustments to pension annuities, which make up only a small part of German pensions. Further, currency debasement will hurt Germans more than any other Europeans. As is the discipline in accumulating assets, the capacity to suffer in defending net worth is a German virtue.

But that's why plan B, C, and D are in the pipeline, reminding Germany of target II etc. whenever their willingness to cut off a leg to survive becomes to vivid.

Sat, 04/07/2012 - 14:19 | 2324773 Gully Foyle
Gully Foyle's picture

Another Climate change absurdity

Nasa scientist: climate change is a moral issue on a par with slavery

Prof Jim Hansen to use lecture at Edinburgh International Science Festival to call for worldwide tax on all carbon emissions

Sat, 04/07/2012 - 17:14 | 2325033 francis_sawyer
francis_sawyer's picture

These fuckers need to pull their heads out of their asses... (&, of course, brush their teeth)...

Sat, 04/07/2012 - 18:21 | 2325120 Jendrzejczyk
Jendrzejczyk's picture

With the proper apologies for stereotypes:

How 'bout a lil kiss?

Sat, 04/07/2012 - 15:27 | 2324882 oogs66
oogs66's picture

or writing off debt, taking bank shareprices to zero, and starting from fresh, sustainable levels

Sat, 04/07/2012 - 15:37 | 2324907 jekyll island
jekyll island's picture

The problem with any doomsday scenario predicition is that you can only be right one time.  

Sun, 04/08/2012 - 07:27 | 2325871 EconSammie
EconSammie's picture

Back in late January I read an excellent article explaining the depth of the problems in Spain and Portugal. The author thought that an economic depression in both was looking ever more likely. As events have develloped it seems that the media is catching up with him. Here is a link to it.

Sun, 04/08/2012 - 17:08 | 2326599 smiler03
smiler03's picture

Zerohedge was months if not years ahead of Jan 2012.

Sat, 04/07/2012 - 14:00 | 2324726 DormRoom
DormRoom's picture

EU to become the United States of Germany soon.

Sat, 04/07/2012 - 14:18 | 2324770 bank guy in Brussels
bank guy in Brussels's picture

Not really. Everyone here is halfway in revolt against the EU already. We are past 'peak EU' which was in 2010.

Anti-EU parties and platforms are in the ascendancy. The EU will retreat to more of a free-trade-zone organisation, like it was ten years ago.

The big Super-Duper EU Empire plan is in decline, and the Germans will soon be forced to retreat too, by both political circumstances, and the fact the economic blowback will hit Germany shortly too.

Sat, 04/07/2012 - 14:38 | 2324785 GeneMarchbanks
GeneMarchbanks's picture

It will probably begin this year in earnest with Hollande who probably will have a more symbolic win than a real division from EU orthodoxy. Still, it is already palpable

Sat, 04/07/2012 - 14:38 | 2324809 Calmyourself
Calmyourself's picture

Good thing you have all those guns, lol...

Sat, 04/07/2012 - 18:19 | 2325119 TBT or not TBT
TBT or not TBT's picture

Nuance, European  governments have guns, serious guns made for shooting at people, and the citizens, not so much.   

Forcing utopian civilisational models and central planning values on the subjects requires it, so they got to the gun confiscation early.

Meanwhile, in the USA, gun and ammunition plants have been running three shifts since the 08 election season. 

Sat, 04/07/2012 - 19:25 | 2325224 gatorengineer
gatorengineer's picture

Your not thinking quite big enough.......  The EU and the US will become one.......  We already have in effect a monetary union with a soft peg (yes I believe there is a behind the scenes agreement to keep the euro and dollar within a rather narrrow range)........  This is largely done to poke china in the eye, and to bleed their trade reserves back to Arabia......  Ben can and will bail out Spain, initially through the IMF in a semi sterilized fashion and when that is inadequte directly......

Within the next 6 months to a year the globalists hands will be forced.  They were hoping to wait until the second coronation of Barry but I dont think the news cycle is going to co-operate.




Tue, 04/10/2012 - 21:06 | 2333307 tabasco71
tabasco71's picture

I agree. Euro is already the worlds second reserve currency, and its politicians are much more pliable than the Bric's.  With a USDEUR 'currency' the west can maintain sufficient volume to dominate against the strengthening EM currencies.

Sat, 04/07/2012 - 14:25 | 2324744 lolmao500
lolmao500's picture

Erdogan: Turkey will take 'steps' if Syria disregards ceasefire deadline

Uh oh.

Israel threatens to strike militants if Egypt fails to secure Sinai

Uh oh.

N.Korea Expected to Launch Rocket on April 14th

More Furious: U.S. Soldiers Trafficking Arms, Drugs to DEA Agents Posing as Los Zetas

Photos: U.S. Army Domestic Quick Reaction Force Riot Control Training

Sy Hersh: U.S. Funded and Trained (on U.S. soil) Iranian Group on State Dept. Terror List

Fukushima Reactor 4: Life On Planet Earth in the Balance

And in the UH OH department :

USS Enterprise must obtain IRGC permission to enter Persian Gulf: report

And in the Let's make sure a stupid race war begins in the US :

White Gunman Goes On Killing Spree In Oklahoma: 3 Black People Dead, 2 Injured

Neo-Nazis patrolling streets of Sanford, Fla., where Trayvon Martin was shot and killed: report 
Sat, 04/07/2012 - 14:09 | 2324747 SeattleBruce
SeattleBruce's picture

This management firm is betting on Spanish destruction to the tune of 300% returns...why not?!  :(

Sat, 04/07/2012 - 14:08 | 2324748 Atomizer
Atomizer's picture

For the folks over in [EU] Experimental Union, your life cycle is determined by the money changers.. Enjoy




Man of fire.



I've seen the eyes of living dead.

It's the same game - survival.

The great mass play a waiting game.

Embalmed, crippled, dying in fear of pain.

All sense of freedom gone.


Black sun in a white world.

Like having a black sun in a white world.


I have a son,

His name is Eden.

It's his birthright,

Beyond estranged time.


Give me 69 years,

Another season in this hell.

It's all sex and death as far as I can tell.


Like Prometheus we are bound,

Chained to this rock of a brave new world,

Our godforsaken lot.

And I feel that's all we've ever needed to know,

'Til worlds end and the seas run cold.


Give me 69 years,

Another season in this hell.

There is sex and death

In mother nature's plans.


Like Prometheus we are bound,

Chained to this rock of a brave new world,

Our godforsaken lot.

Sun, 04/08/2012 - 09:25 | 2325986 slowimplosion
slowimplosion's picture

I'm not sure what this is doing here, but I love me some DcD!

Sat, 04/07/2012 - 14:10 | 2324750 evolutionx
evolutionx's picture
Rumors Of An Attempted Coup Have Beijing Totally Freaked Out


China's leading military newspaper, The Liberation Army Daily, ordered soldiers to "resolutely resist the incursion of all kinds of erroneous ideas, not be disturbed by noise, not be affected by rumors, and not be drawn by undercurrents, and ensure that at all times and under all circumstances the military absolutely obeys the command of the Party central leadership, the Central Military Commission and Chairman Hu."


Sat, 04/07/2012 - 14:45 | 2324810 i-dog
i-dog's picture

*Sigh* ... the Chinese are copying everything! Now they're even copying Chairman Obomber and the NDAA (though, so far, they seem to have left out the indefinite detention and waterboarding)!!

Sat, 04/07/2012 - 14:56 | 2324836 NOTfromSanFrancisco
NOTfromSanFrancisco's picture



Who???... Oh, I see who. Hu... (o:

Sat, 04/07/2012 - 15:12 | 2324860 xcehn
xcehn's picture

Yes, the rumours. They are gloomy and should be dismissed. /s Never mind that the Chinese military's antipathy towards the 'weak pro-Western' civilian leadership is well known.

Sun, 04/08/2012 - 17:28 | 2326607 smiler03
smiler03's picture

Rumors Of An Attempted Coup Have Beijing Totally Freaked Out

It would appeat that 80% of ZH readers believe your story. Not to worry, the same website says:


Doomsday Coming, NASA Knows It : Russian Scientist

So it will all be over soon anyway.

"ZH, grooming more sheep than ever before TM"


Edit: I should rephrase my TM statement as it is directed at stupid readers, not the Superb ZH.

"ZH readers, growing the flock", doesn't sound as good though.

Sat, 04/07/2012 - 14:12 | 2324756 Sudden Debt
Sudden Debt's picture

So Spain has 90% debt to GDP... So what!?! The US has 107% "officially"!

Sat, 04/07/2012 - 14:23 | 2324781 GeneMarchbanks
GeneMarchbanks's picture

Spanish media is mostly broadcast within Spain. Don't ask questions, mainstream media says so. Obey and you'll be accepted.

Sat, 04/07/2012 - 14:57 | 2324837 JPM Hater001
JPM Hater001's picture

Yes but ours has been filter through the miracle of reserve currency. We could go into the tens of hundreds without a problem just so long as we stay the worlds reserve currency we're just fine!

Sat, 04/07/2012 - 17:22 | 2325044 SeattleBruce
SeattleBruce's picture

"just so long as we stay the worlds reserve currency we're just fine!"


Well, that last bit's debatable...

Sat, 04/07/2012 - 14:13 | 2324760 goforgin
goforgin's picture

Yet another stupid doomer article that offers absolutely no solution ever, except for forced austerity. Yes austerity makes perfect sense after 40-years of credit expansion? Not! You are all doomed, except when you're not.  Someone should read Debt: The First 5000 years by David Graeber.

Sat, 04/07/2012 - 14:18 | 2324769 resurger
resurger's picture

you are so fucking wrong, there is a solution, the first word starts with a "D"


Sat, 04/07/2012 - 14:23 | 2324783 goforgin
goforgin's picture

I was predicting the current predicament 10-years ago. Ever hear of Long Waves Forum?



Sat, 04/07/2012 - 15:37 | 2324906 Coast Watcher
Coast Watcher's picture

Cripes, I haven't seen that mentioned in years. Were you a member, too? I never posted much, but enjoyed readig it. Was Freddy Hutter a regular there?

Sat, 04/07/2012 - 20:39 | 2325304 centerline
centerline's picture

Haven't heard of it.  Sound interesting.  Can you please share a little more about this?  Also looking for more reading material.  Thanks.

Sun, 04/08/2012 - 09:38 | 2326011 Coast Watcher
Coast Watcher's picture

I don't think the Long Waves forum that I knew is active anymore. It was active back in the late '90s, early Oughts, then IIRC it closed after the owners got tired of all the flame wars. I did a quick search last night and couldn't find it or a successor.

Sun, 04/08/2012 - 12:41 | 2326230 SeattleBruce
SeattleBruce's picture

Interesting preview of Debt: The First 5,000 Years on Amazon here:

Sun, 04/08/2012 - 21:19 | 2326972 zorbathefreak
zorbathefreak's picture

Smoke another one, brah!

Sat, 04/07/2012 - 14:34 | 2324803 goforgin
goforgin's picture

I should say: typical brain dead commentator. Do you ever think for yourself?

Sat, 04/07/2012 - 15:22 | 2324872 goforgin
goforgin's picture

There has to be more than 6 of you? YOU. You are the first ones who will goose-step around the block, first ones to send off your neighbors to concentration camps and then rob their possessions. I read in the real history books all  about you. You are sociopaths that seek to profit at the expanse of the many and lap at this absurd idea of austerity.

Sat, 04/07/2012 - 16:34 | 2324986 Calmyourself
Calmyourself's picture

Try decaf..  If that doesn't work liberal application of PB to brain pan..

Sat, 04/07/2012 - 16:41 | 2324995 narapoiddyslexia
narapoiddyslexia's picture

Peanut butter?

Sat, 04/07/2012 - 19:25 | 2325225 Calmyourself
Calmyourself's picture

The three precious; AU,AG, PB...

Sat, 04/07/2012 - 17:56 | 2325006 New World Chaos
New World Chaos's picture

Who said anything about austerity?  Resurger's D-word is Default.  Least pain for the people, most pain for the banksters.  See Iceland.

Sat, 04/07/2012 - 18:14 | 2325114 ebworthen
ebworthen's picture

Jubilee, and peanut butter.

Sun, 04/08/2012 - 12:49 | 2326238 SeattleBruce
SeattleBruce's picture

"I read in the real history books all  about you."

Goforgin - you may not actually know everything (about us), and we surely don't know everything about you.  I'm looking over the preview of the Debt book you referred to and it looks quite good from a historical perspective, although the author seems inclined toward anarchism perhaps, don't know yet.  Thanks for the suggestion.

Sun, 04/08/2012 - 14:45 | 2326437 Lednbrass
Lednbrass's picture

Do you get up early in the morning to practice this level of colossal stupidity, or is it a natural gift? If it comes on its own, you are a true prodigy of idiocy.

Yeah, the people most concerned about and most against the ever growing reach of authoritarian central power are the ones to worry about.  You really dont understand politics or philosophy, do you? Yours is the blind support of a sports fan for a team, nothing you say gives any indication that you have even the remotest idea of history or the difference in political ideologies.

"An Oppressed Victims Guide to Historical Deconstruction" is not a valid source Sparky.

Sat, 04/07/2012 - 14:59 | 2324838 NOTfromSanFrancisco
NOTfromSanFrancisco's picture



Why should we bother to read it then if we are all doomed?... Unless of course, we're not...

Sat, 04/07/2012 - 16:19 | 2324969 i_call_you_my_base
i_call_you_my_base's picture

I downed you not so much for your ideas, but for your use of "Not!". That was interesting about twenty years ago when Wayne's World was still popular. I think the only people who do that now are forty year-old housewives.

Sat, 04/07/2012 - 14:17 | 2324765 resurger
resurger's picture

how much gold Sapin has? i dont think they have much ... i need the link for EU gold holdings which was posted by Tyler earlier.

if they have less than 50 tonnes, no bailout

Sat, 04/07/2012 - 14:26 | 2324788 bank guy in Brussels
bank guy in Brussels's picture

Think a little over 1000 metric tonnes for Spain ... interestingly, little Portugal has lots, nearly about the same I think, with less than one-fourth the population of Spain.

Would be funny if Germany and the ECB start to confiscate the Spanish etc. gold as part of one of these shady Greek-style 'bailout' deals ...

And then when they went to the New York Fed basement to pick up the gold, they found it wasn't there! Ha!

Tim Geithner maybe just shrugging his shoulders ... maybe he'll say the NY Fed lent the gold to MF Global and Corzine ... it was 'hypothecated' ... and then 'vaporised', ha!

Sat, 04/07/2012 - 14:44 | 2324817 HardlyZero
HardlyZero's picture

I believe "the Gold" will be the "red line".  How many times has Portugal and probably Spain been through these before ?  Why do you think they have Gold in the first place ?

Sat, 04/07/2012 - 14:58 | 2324839 GMadScientist
GMadScientist's picture

Ask the Aztec and Inca.



Sat, 04/07/2012 - 16:34 | 2324985 Harbanger
Harbanger's picture

They didn't value it as currency, so they couldn't understand all the excitement. They were introduced to the more useful bronze. 

Sun, 04/08/2012 - 12:53 | 2326249 SeattleBruce
SeattleBruce's picture

All the better to sacrifice virgins and children with when the 'gods' called...

Sat, 04/07/2012 - 14:54 | 2324834 ILikeBoats
ILikeBoats's picture

Spain had gold stolen from them before, by the Communists...


According to Wikipedia Spain has 281.6 tonnes of gold.

Sat, 04/07/2012 - 20:50 | 2325317 The Swedish Chef
The Swedish Chef's picture

A Franco era myth... The gold was payment for arms as the democratic countries of Europe regarded the coup and following savage war as internal affairs which were not to be meddle in. Since Gemany and Itlay didn´t have that view Francos forces had several re-armament sources. The government had no choice but to pay exorbitant prices for Sovjet mil surp.

Sun, 04/08/2012 - 01:52 | 2325661 JOYFUL
JOYFUL's picture

\The government had no choice but to pay exorbitant prices for Sovjet mil surp...The gold was payment for arms /

An Obummer era myth.

The Stalinists stole everything they could, and demobilized the only effective opposition the "left" had: the volunteer brigades of FAI\CNT militia who's forced withdrawal from defense of the Ebro sector signalled the collapse of Republican resistance. With the death of Durruti, the war was over, save for the rats fighting over the spoils.

Left to themselves, the Socialist\Anarchist coalition in Asturias and the Basque region had the capacity to produce adequate small arms and ammo in the Mieres and Santander munitions factories, while the CNT controlled auto factories in Barcelona were quickly retooled to roll out armored vehicles. All disabled and betrayed by the  machinations of the 5th column politico cabal of Largo Caballero and the usual useful idiots of the "Common Front."

Spain needed your beloved communists like a horse needs biting ticks. Just like earlier, in Ukrania, when the people rose, it took a dedicated alliance of Communists\Fascists to put them down again.

MFG client's funds were forfeited as rightful escrow for JPM's socially aware support of the Great Leaders' revolutionary mobilization of the Zamerican working classes' struggle for jobs n justice!.....

wheeeee, dis is fun!~,let's make up shit n call it history!

Sun, 04/08/2012 - 03:17 | 2325729 The Swedish Chef
The Swedish Chef's picture

"wheeeee, dis is fun!~,let's make up shit n call it history!"


Right back at ya... 


My family was more or less held hostage for three years by you beloved rag tag gang of socialist militias. You can sit in your moms basement with your red and black flag and dream daydreams about the glory of the Spanish anarchism but truth be told they where no better than the fascists they were fighting.


And about the thought that the republican forces should have been able to match the fascists backing from Italy and Gemany because of three factories in northern Spain... Are you really that daft? Stop reading those anarchist books and realize that Spain, if face with an enemy militarly backed by Gemany, will always need help from the outside. 


Paleto de mierda....

Mon, 04/09/2012 - 09:23 | 2325943 JOYFUL
JOYFUL's picture


You would do well to employ comebacks of your own invention, rather than those of your interlocutor...otherwise, you leave yourself open to the suspicion of being not only unable to properly research your subject, but lacking in the wit to make a case for your own argument...

Had you the least comprehension of the events of the Spanish Civil War, you would realize that the acronym FAI\CNT refers to the anarchist brigades fighting in the Republican ranks, not a "socialist militia." A mistake of such fundamental nature is a dead giveaway of the  ideologue puffed up with the misplaced pride of his imbibed factionalism. An embarrassment even unto their own, I greatly fear.

But why let facts stand in the way of an impassioned rant seemingly backed by a minor tragedy?  Your family was "more or less held hostage for three years"    ???  Do you have the slightest notion of what horrors happened to millions of families, during that debacle, that would warrant you to moderate the pathos of your supposed grievance?  NPI...hijocito! NPI!!!!

Paleto de mierda?????

I could call you chingadero, puta de madre. maldito cabron, or a thousand other insults - but to do so would serve no purpose other than to signal my discomfort with my opponents' charge[piensate!] I shall merely call you a rather mediocre intellect, with an outsized sense of grievance and entitlement...and a hectoring tone that would be well suited to the party hack whom you apparently model yourself upon.

Y al fin, the Spanish people, if faced by any enemy other than themselves, will need not do anything other than remember whence they come from, and of what stock... Suevi, Vandal, Celt, Iberic,  Basque, Berber and so on, and then act in the same spirit of resistance as Viriathus, Don Pelayo, and those many others of a tradition foreign to your spirit and intent.

Monday edit: I see yu managed to creep back & uptick yur own comment, Senor "Cocinero Sueco" -or is it Senor Cochino Sueco?  U really aren't the sharpest knife in da kitchen r u hombrecito?

Sat, 04/07/2012 - 14:32 | 2324800 Harbanger
Harbanger's picture

In the 16th century the spanish empire had most of the worlds gold.  Hopefully they buried some of it.

Sat, 04/07/2012 - 18:07 | 2325098 FeralSerf
FeralSerf's picture

Like some of the posters here, they lost much of it when it went for a boat ride.

Sun, 04/08/2012 - 17:37 | 2326626 smiler03
smiler03's picture

A Gold boating story that is actually true, Bravo!

Mon, 04/09/2012 - 11:53 | 2328165 Madrid2020
Madrid2020's picture

Spain Just got the Odyssey stash three weeks ago! 500 million in gold/silver headed to Museo Archeologico Nacional(Madrid)!  

Sat, 04/07/2012 - 23:41 | 2325510 Madrid2020
Madrid2020's picture

Literally tons of it in the Great Spanish Cathedrals and the Bank of Spain,but we would rather starve then part w/it! 

Sun, 04/08/2012 - 12:35 | 2326219 flapdoodle
flapdoodle's picture

Thats all gold leaf. The real gold was stolen by the Jesuits. Rumor has it the pope sleeps on a bed of solid gold...

Sun, 04/08/2012 - 12:40 | 2326228 Madrid2020
Madrid2020's picture

Only the alter at Seville is "gold-leaf" there is tons of solid gold everywhere,but it's not for sale.

Sat, 04/07/2012 - 14:18 | 2324771 Imminent Collapse
Imminent Collapse's picture

Sounds bullish.

Sat, 04/07/2012 - 14:19 | 2324775 GeneMarchbanks
GeneMarchbanks's picture

Every single one of those bullet points can also be applied to the US so there is really no real reason to follow this narrative since it is obviously being written by the very people who wish  to divert attention away from themselves and onto others. Once again a repeated meme for the great Unwashed to amuse themselves while I'm sure China takes the opportunity to put in real work and continue to fly under the radar.

Sat, 04/07/2012 - 14:51 | 2324823 HardlyZero
HardlyZero's picture

Yes, of course.  Its just that Spain's bullet points are primed and in the magazine, locked and loaded.  And itchy Spanish trigger finger being egged on by the Bond Vigilantes.

USA bullet points are still in cold storage.  If included all US state debts and obligations then US debts are near 80 Trillion.

Sat, 04/07/2012 - 15:45 | 2324919 CaptainTripps
CaptainTripps's picture

bingo, US and UK are MUCH worse and yet no one talks abou it or does anything about it


like i've said before, its like they Wants to create the biggest bubble of all time now and then implode it all to usher in the NWO


the way to stop it is to declare lots of this fake banker debt as FRAUD...and their whole NWO game implodes and we arrest the motherF'ers and put them in fema camps or secret cia prisons

Sat, 04/07/2012 - 16:22 | 2324967 Babushka
Babushka's picture

To sustain such a wish you have to follow some very wicked political star rising (most probably through undeground level) as YOU are in NO power to arrest any big motherF'er and most likely to end in fema camps or secret cia prisons

Sun, 04/08/2012 - 17:40 | 2326629 smiler03
smiler03's picture

"bingo, US and UK are MUCH worse.."

I don't think you looked at all the charts very carefully.

Sun, 04/08/2012 - 13:00 | 2326261 SeattleBruce
SeattleBruce's picture

"and yet no one talks about it"


They won't talk about it, til it's all they talk about...

Sat, 04/07/2012 - 14:20 | 2324777 q99x2
q99x2's picture

A short revolution will suffice. Capture the 2000 enemies of the 7 billion and all will be well. Problem solved.

Sat, 04/07/2012 - 14:31 | 2324798 bank guy in Brussels
bank guy in Brussels's picture

Yes, it's just a few ... it's the same few hundred people popping up in interlocking patterns, on the boards of America's ruling corporations ... a few thousand members in the oligarch families, including little rascals being groomed ...

Like the British colonial empire was run by a few thousand British bureaucrats over millions of people in India or wherever ...

Or Nazi death camps killing thousands every day, run by a couple of dozen Nazis with a 'system'.

Sat, 04/07/2012 - 14:43 | 2324812 goforgin
goforgin's picture

Yes, but they had many opportunists, collaborators and 'useful idiots' that thought they too could benefit from the system. The 'game plan' is to turn off the printing presses and impose harsh austerity measures and debt-work slavery to preserve the 'status quo'. The real solution is off course jubilee--5,000 years of experience can't be wrong. It's just the time to forgive all debts, and start over again.

Sat, 04/07/2012 - 15:43 | 2324911 Babushka
Babushka's picture

Depts jubilee only applies when the bad boys connected through mutual/cultural values circling around and no troops could be drawn as everybody is enslaved ( in no fighting mood) through credit/interest driven economy....USA is in aprime military/ slaves / mining to pay a military/ to get more slaves/ to do more mining/to expand more military mode by now... would take some time/riots/hanging/ popular unrest suppressing to get there...

Sat, 04/07/2012 - 15:52 | 2324927 Babushka
Babushka's picture

Mind you Spanish are quite decent people and they will reconnect communities on the basic level very fast ...the old communistic/socialistic/historical values are still deeply engraved in many people over there, so adjustment wont be very guess. The Bankers will suck big time and the folks gonna be ok as long as they remember neighbours names and they do...

Sat, 04/07/2012 - 16:30 | 2324977 Babushka
Babushka's picture

I shit you not the guys who are going to implement new gold/silver coins to do exchange are going to be the same bankers running the same GAME...mark my words...

Sun, 04/08/2012 - 13:07 | 2326271 SeattleBruce
SeattleBruce's picture

I hope you're wrong - it will mean we've made absolutely no progress in the explosion/implosion reset time period.  I think there may be some real chance to make progress for humanity as we move through the reset, but such a statement is pretty naive, I'm afraid.  To some degree it will depend on all the millions and billions of moving parts (all of us, all the soldiers and cops, et al as well) that the few thousands that control the debt machine cannot possible control.

Sun, 04/08/2012 - 21:22 | 2326983 Madrid2020
Madrid2020's picture

Well you got one thing correct: the Spanish are indeed,decent people!

Sun, 04/08/2012 - 13:02 | 2326264 SeattleBruce
SeattleBruce's picture

"A short revolution will suffice. Capture the 2000 enemies of the 7 billion and all will be well. Problem solved."


Way harder than you make it sound...unfortunately...

Sat, 04/07/2012 - 14:44 | 2324816 debtor of last ...
debtor of last resort's picture

"Spain has the highest unemployment in the developed world"


Developed world? You really have to be in Malawi for that. The "developed world" is Monkeytown's foreclosure



Sat, 04/07/2012 - 18:12 | 2325107 ebworthen
ebworthen's picture

I would say "Detroit" but...

Sat, 04/07/2012 - 14:45 | 2324819 CitizenPete
CitizenPete's picture

... your stallion stands, in need of company...


Company is will come very soon...



Sat, 04/07/2012 - 14:47 | 2324822 debtor of last ...
debtor of last resort's picture

Spains debt will soon have to face the matador

i can smell the fear


of the debt

Sat, 04/07/2012 - 15:09 | 2324851 Harbanger
Harbanger's picture

High unemployment and hot tempers usually don't end well.

Sat, 04/07/2012 - 23:43 | 2325518 Madrid2020
Madrid2020's picture

Nations w/higher debt to GNP than Spain:France,U.K.,Belgium,Italy,Portugal,Hungary,most of eastern Europe and Germany!

Sun, 04/08/2012 - 13:09 | 2326276 SeattleBruce
SeattleBruce's picture

Wait - I though Europe was all better since the Greek haircut?!  Truly a mess, hmm?

Sat, 04/07/2012 - 14:54 | 2324833 dwayne elizando
dwayne elizando's picture

I asked Hayman capital how i could get into a CDS and they said I didn't have enough money. Turns out you need atleast $5 million to get in on that game.

Sat, 04/07/2012 - 15:31 | 2324889 oogs66
oogs66's picture

yes, you can trade E-minis, hog belly futures, but somehow not CDS.  somehow that can't be put on an exchange?  bizarre, and the CFTC should be cleaned up and start fresh with people who can accomplish something

Sun, 04/08/2012 - 13:12 | 2326285 SeattleBruce
SeattleBruce's picture

"bizarre, and the CFTC should be cleaned up" - who's gunna do that?  Corruption is 'in' right now, and especially with the current DOJJ (Department of Joke Justice.)

Sun, 04/08/2012 - 13:10 | 2326279 SeattleBruce
SeattleBruce's picture

"Turns out you need atleast $5 million to get in on that game."

Or $1.6B of other people's money will also work...:(

Sat, 04/07/2012 - 15:00 | 2324841 Marginal Call
Marginal Call's picture

So they are long credit default swaps after the way Greece played out?  Doesn't sound like all that safe of a bet.


Go long saffron.  /s

Sat, 04/07/2012 - 15:04 | 2324844 suckerfishzilla
suckerfishzilla's picture

Silver reales and Silver drachmas are two relatively safe investments out of the euro zone.  According to CCM's website they manage common stock portfolios for their clients.  Why the presentation on European sovereign debt?

Sat, 04/07/2012 - 15:06 | 2324848 I am Jobe
I am Jobe's picture

LOL. So when is the presentation for the USSA gonna take place. Not far off is it? Smartest guys on the planet, my azzzz. western World is swiming in toxic crap and denying it.

Sun, 04/08/2012 - 13:14 | 2326288 SeattleBruce
SeattleBruce's picture

Turns out you can float quite a long time in toxic crap, as long as the rest of the world bails out your boat constantly...

Sat, 04/07/2012 - 15:10 | 2324855 lolmao500
lolmao500's picture

Well Italy is working hard to compete with China...

Child labour re-emerges in Naples

In one of Europe’s poorest cities, thousands of children are leaving school to help their families make ends meet. Part of a trend that has been accentuated by the crisis, they find work in the black economy or they are recruited for sinister purposes by the mafia.

7 a.m. in San Lorenzo in the heart of Naples: the kid is struggling to carry a heavy crate of canned goods through a humid labyrinth of city streets. Dressed in his faded overalls, hoodie and and busted trainers, little Gennaro has already begun his day at work. 

No one is surprised to see him slaving away at such an early hour. In September 2011, Gennaro found work in a grocery shop. On the job six days a week and 10 hours a day, he stocks shelves, unloads orders and delivers shopping to customers in the neighbourhood.

Kids working harder than the average guy...

Sat, 04/07/2012 - 17:15 | 2325036 eddiebe
eddiebe's picture

A race to the bottom to keep the elite in their preferred lifestyle.

Sun, 04/08/2012 - 13:15 | 2326292 SeattleBruce
SeattleBruce's picture

"In one of Europe’s poorest cities, thousands of children are leaving school to help their families make ends meet."

I'm sure the IMF and ECB and FED are in FULL support of this - for the good of the children...OH??!!

Sat, 04/07/2012 - 15:22 | 2324874 ISEEIT
ISEEIT's picture


I love you Zerohedge.

I despise bullshit.

Truth makes me happy, even (especially) if it hurts.

In a world of reality drugs would go unused.

I like people too.

Sat, 04/07/2012 - 16:53 | 2325010 lolmao500
lolmao500's picture

Hell, at this point, reality is so fucked up, you don't need drugs to think you're on drugs and that this whole thing is a big hallucination.

Sat, 04/07/2012 - 15:24 | 2324876 George Orwell
George Orwell's picture

The problem with Spain is not financial.  Those things can be fixed with money.  The problem with Spain is that it will turn into Morocco/Algeria.  Spain is the dryest country in Europe.   Combine peak oil with rising temperatures and no rain, you have a problem that money cannot easily fix.

There is a serious water shortage problem in Spain.  It will get worse.


Sat, 04/07/2012 - 15:32 | 2324893 oogs66
oogs66's picture

that is truly scary, especially since a barrell of evian or poland springs actually costs a lot more than a barrell of oil?

Sat, 04/07/2012 - 17:54 | 2325073 Lednbrass
Lednbrass's picture

I have always thought it hilarious that evian is naive spelled backwards.

Sat, 04/07/2012 - 16:53 | 2325007 The Swedish Chef
The Swedish Chef's picture

Spot on. I go to Spain once or twice a year since I have family there and the water situation is catastrofic. Thankfully, Franco didn´t just build monuments to celebrate fascism but quite a few dams as well but they are all half empty today. The worst part is that winter rains seem to have turned their backs on Spain... 


I have no problem in seeing water transfers /trasfugas in Spanish) as the igniting factor of a seconf civil wars and that war will be fought for keeps.

Sun, 04/08/2012 - 03:27 | 2325733 Madrid2020
Madrid2020's picture

It rained all last week throughtout the Iberian peninsula and the reseviors are rising for all of Spain,especially Madrid! Check:Canal Isabel U.k. is in a full blown drought however.


Sat, 04/07/2012 - 22:26 | 2325436 monkeyboy
monkeyboy's picture

Dry grown vines make for great wines.

I do like my Spanish varietals.



Sat, 04/07/2012 - 23:49 | 2325527 Madrid2020
Madrid2020's picture

Nothing better than a tempranillo from Riberia del Duero or La Rioja!

Sun, 04/08/2012 - 00:12 | 2325537 Madrid2020
Madrid2020's picture

Spain has always been among the wealthiest countries on earth (fact). Madrid which is in the center has some of the best water sources and quality in Europe,the North of Spain actually has some of the highest percentage of rainfall in Europe(Galicia,Asturias,Cantabria,the Basque Country) again facts! There are thousands of rivers and streams. For the record Saudi Arabia has NOT a single stream and "manages"! Spain has more forested land than France,Italy or Germany(fact).And whole regions of Spain have more forest than the entire U.K. (again fact).Murcia and parts of Valenica are dry,but so is 75% of the American S.W. and there doesn't seem to be a major issue so relax and don't distract!

Sun, 04/08/2012 - 00:03 | 2325545 Madrid2020
Madrid2020's picture

It's the U.K. that's having a drought! 

Sun, 04/08/2012 - 13:17 | 2326295 SeattleBruce
SeattleBruce's picture

Point taken on oil - but I say this about the financial side:

"Those things can be fixed with sound, non-debt based money."

Sat, 04/07/2012 - 15:41 | 2324913 ebworthen
ebworthen's picture

Makes me want to read Don Quixote all over again.

Sat, 04/07/2012 - 16:01 | 2324939 smb12321
smb12321's picture

Ignore the GW wackos.  They're the worst advertisement for anyone serious about possible GW effects.  After Katrina, the "experts" flooded the MSM with dire warnings of massive, frequent hurricanes.  Naturally, it's been the calmest time in recorded history. 

The best comment on GW is from Berkeley physicist Richard Muller who says that over the last century the temperature has risen about 1 degree F.  The odds that half of that increase is manmade is about 90%.  That sounds reasonable since ALL creation of energy except photosynthesis involve the generation of heat.  The more energy we use, the more heat is created.  My bets are on artificial photosynethsis as the energy of the future.

Sat, 04/07/2012 - 18:22 | 2325127 FeralSerf
FeralSerf's picture

Nonsense!  Photosynthesis is a chemical process that stores energy. It doesn't create energy.  Another natural process that likewise stores energy is evaporation of water and rainfall on a higher elevation.  It doesn't involve the generation of heat either.

Do you also claim that the use of geothermal energy resources is creating more heat?

Sun, 04/08/2012 - 18:06 | 2326664 smiler03
smiler03's picture

I think the point is is that photosynthesis traps energy (sunlight) that would otherwise escape. Hence the use of algae to create aviation fuel for the US military.


U.S. Energy Department backs plan to produce algae crude oil

Read more:

Sat, 04/07/2012 - 16:42 | 2324997 Martin T
Martin T's picture

Spain is in denial and Europe as well. There are locked in a deflationary trap.

Spain needs a new economic engine given it has all been based on construction. Given they haven't got a comparable industrial base to Italy, they are indeed in big trouble.

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