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22 Signs That The Collapsing Spanish Economy Is Heading Into A Great Depression

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What happens when debt-fueled false prosperity disappears?  Just look at Spain.  The 4th largest economy in the eurozone was riding high during the boom years, but now the Spanish economy is collapsing with no end in sight.  When a debt bubble gets interrupted, the consequences can be rather chaotic.  Just like we saw in Greece, austerity is causing the economy to slow down in Spain.  But when the economy slows down, tax revenues fall and that makes it even more difficult to meet budget targets.  So even more austerity measures are needed to keep debt under control and the cycle just keeps going.  Unfortunately, even with all of the recently implemented austerity measures the Spanish government is still not even close to a balanced budget.  Meanwhile, the housing market in Spain is crashing and unemployment is already above 24 percent.  The Spanish banking system is a giant, unregulated mess that is on the verge of a massive implosion, and the Spanish stock market has been declining rapidly.  The Spanish government is going to need a massive bailout and so will the entire Spanish banking system.  But that is going to be a huge problem, because the Spanish economy is almost 5 times as large as the Greek economy.  When the Spanish financial system collapses, the entire globe is going to feel the pain and there will be no easy solution.

So just how bad are things in Spain at this point?

The following are 22 signs that the collapsing Spanish economy is heading into a great depression….

#1 The unemployment rate in Spain has reached 24.4 percent – a new all-time record high.  Back in April 2007, the unemployment rate in Spain was only 7.9 percent.

#2 The unemployment rate in Spain is now higher than the U.S. unemployment rate was during any point during the Great Depression of the 1930s.

#3 According to CNBC, some analysts are projecting that the unemployment rate in Spain is going to go above 30 percent.

#4 The unemployment rate for those under the age of 25 in Spain is now a whopping 52 percent.

#5 There are more than 47 million people living in Spain today.  Only about 17 million of them have jobs.

#6 Retail sales in Spain have declined for 21 months in a row.

#7 The Bank of Spain has officially confirmed that Spain has already entered another recession.

#8 Last week, Standard & Poor’s Ratings Services slashed Spain’s credit rating from A to BBB+.

#9 The yield on 10-year Spanish bonds is up around 6 percent again.  That is considered to be very dangerous territory.

#10 Two of Spain’s biggest banks have announced that they are going to stop increasing their holdings of Spanish government debt.

#11 Of all the loans held by Spanish banks, 8.15 percent are considered to be “bad loans”.

#12 The total value of all bad loans in Spain is equivalent to approximately 13 percent of Spanish GDP.

#13 Of all real estate assets held by Spanish banks, more than 50 percent of them are considered to be “troubled” by the Spanish government.

#14 That total amount of money loaned out by Spanish banks is equivalent to approximately 170 percent of Spanish GDP.

#15 Home prices in Spain fell by 11.2 percent last year, and the number of property repossessions in Spain rose by a staggering 32 percent during 2011.

#16 Spanish housing prices are now down 25 percent from the peak of the housing market and Citibank’s Willem Buiter expects the eventual decline to be somewhere around 60 percent.

#17 It is being projected the the economy of Spain will shrink by 1.7 percent this year, although there are some analysts that feel that projection is way too optimistic.

#18 The Spanish government has announced a ban on all cash transactions larger than 2,500 euros.

#19 One key Spanish stock index has already fallen by more than 19 percent so far this year.

#20 The Spanish government recently admitted that its 2011 budget deficit was much larger than originally projected and that it probably will not meet its budget targets for 2012 either.

#21 Spain’s debt to GDP ratio is projected to rise by more than 11 percent during 2012.

#22 Worldwide exposure to Spanish debt is estimated to be well over a trillion euros.

Spain is going down the exact same road that Greece went down.

Greece is already suffering through a great depression and now Spain is joining them.  The following is from a recent BBC article….

“In Spain today, a cycle similar to Greece is starting to develop,” said HSBC chief economist Stephen King.

“The recession is so deep that when you take one step forward on austerity, it takes you two steps back.”

In Spain right now there is a lot of fear and panic about the economy.  In many areas, it seems like absolutely nobody is hiring right now.  The following is from a recent USA Today article….

“The situation is very bad. There’s no work,” said Enrique Sebastian, a 48-year-old unemployed surgery room assistant as he left one of Madrid’s unemployment offices. “The only future I see is one with wages of €400 ($530) a month for eight-hour days. And that’s if you can find it.”

But Spain is just at the beginning of a downward spiral.  Just wait until they have been through a few years of economic depression.  Once that happens, millions of people begin to lose all hope.  A recent Reuters article discussed the epidemic of suicides that is happening in Greece right now….

On Monday, a 38-year-old geology lecturer hanged himself from a lamp post in Athens and on the same day a 35-year-old priest jumped to his death off his balcony in northern Greece. On Wednesday, a 23-year-old student shot himself in the head.

In a country that has had one of the lowest suicide rates in the world, a surge in the number of suicides in the wake of an economic crisis has shocked and gripped the Mediterranean nation – and its media – before a May 6 election.

And you know what?

The nightmares that we are seeing unfold in Spain and Greece right now are just a preview of what is coming to most of the rest of the world.

The next wave of the economic crisis will soon envelop the United States, Japan and the rest of Europe.

When it strikes, the pain will be immense.

But it won’t be the end – it will only be just the beginning.

The global financial system is starting to crumble.

You better get ready.

  • Jim

    What’s sad is hardly anyone is paying Attention to what’s going on i have lost friends because of telling it the way it is. People don’t want to hear it they live in a state of Normalcy bias …Well unfortunately folks are about to get an Education.

    • Jan

      Well Jim. I have lost BOTH friends AND famely. because of telling it the way it is.

      It makes me sad, but id rather try to tell them.
      In that way i know i have done what i could.

      But i often feel alone and without likeminded.

      • Kev

        Jan,and all you decent intelligent folk who are experiencing total ‘brick-wall thickness’ from friends and family when you try and get thru,please research the Tavistock institute for Human Relations.This pernicious outfit has been influencing public opinion and implementing long term conditioning and behavioural change for decades.You have a similar institute there in the States.Stanford.What they are doing is real.It matters to you and your family.

    • gpacex

      I am with you on losing friends on this subject i have been talking about this and people look at me like i am nuts… i tell them it is a math thing and you can not defeat math forever… what you do to one side of the equal sign you must do to the other– and we as a people have tried to cheat the system and now it is time to pay the bill- and we get to pay and pay big…

    • Pat

      Well said, Jim. Since we moved to Spain 4 years ago they have steadily done their best to bankrupt this place. Housing development was deliberately made impossible. Tax laws were tightened to scare off foreign retirees from depositing money in Spanish banks. Retirees and vacationers are the life blood of Spain. Loans were tightened up for foreigners and factories were shutdown so that there would be a wave of joblessness. Those jobs were moved to China.

      My kids were forced to sing songs about how the country has no money in Spain. Why was it so important to convince the people that the economic collapse was real?

      The fact is that Spain is Europe’s playground. The sun and sea is necessary for health. As the majority of the population of Europe is over retirement age it is easy to see that Spain’s economy should be booming. But they have deliberately bankrupted it.

      All of Europe has new train systems, new airports, new infrastructure paid for by the Americans. New bridges and tunnels. New tool roads. At the same time the people have been impoverished. No hospitals, no farms, no boating, no fishing.

      I have a financial background. I tried to tell my friends and clients that something was amiss in Europe. It was obvious to me that the economies were being manipulated and there would be a crash. But I was made fun of and told that I was only a jealous American. Jealous of the progress that had been made in Europe. Friendships were lost as well.

      I believe the real target of this trumped up drama is the U.S. I believe they are softening you up for the final act which is to topple the individual, freedom loving people of America and make sure that you do not complain too much by showing you reminders of starving Europeans.

      My advice is to get away from paper currency and go to gold and silver. Not as an investment but as a hedge.

      I can tell you that Russians pay very little taxes, have tons of crime, pay half the price for everything and are employed with room to grow. Their luck is to be excluded from the E.U.

      This economic collapse is theatre…

      Goldenladyfun from Spain

    • race

      Jim…i feel your pain….people are incapable of the truth and prefer blind faith..and as a prepper, i live by this …it’s better to have and not need than to need and not have…i remind myself this daily. I visualize scenarios of handling neighbor requests for support because they preferred blind faith…i’m buying excess cases of ramen noodles as my contribution to their support. there are so many man made and natural disasters upon us that will produce the PANIC outbreak the govt and their mouthpiece MSM don’t want disclosed. they may can print money to prop up the house of cards till after the election…but they can’t control PANIC, unless they declare bank holidays…there is a reason why last month, obama ordered his cabinet to prepare for govt takeover of our infrastructure…and i quote…”POTENTIAL DISASTERS”

    • Jodi

      I know how you feel…I’ve been slammed for speaking out. They don’t want to hear about it, they think nothing bad will ever happen to America.

      • Jodi

        I figure oh well if I loose friends.

    • Graham


      Part of the “education” you relate to should also include the latest intel contained within this story, in addition to the many others imparted by Veterans Today. There are “other” truths that may be extremely hard to swallow.. but people need to awaken to them very quickly. Reality only begins where illusion ends.

      Yes, there is another can of worms awaiting to be unravelled that underlies the ongoing global financial implosion. The “Octopus” has been hard at work in many different arenas and there is one stranglehold which must be breached by awareness and truth. Exposure is all about bringing the light into the darkness.

      Having knowledge to function with foresight is far more advantageous than being left to reflect in hindsight. The more incredulous a claim, the more it should be investigated. Many people are working behind the scenes just now doing just that.

      Veterans Today:-

    • mondobeyondo

      Let them laugh. It’s going to start raining soon.
      Those same people who are laughing now, will be banging on the door of the ark, begging to be let in.
      Too late… too late.

  • Rodster

    The bad news is when more Euro Socialist govt’s go under it’s going to create a tidal wave effect here because we’ve propped up those countries just to avoid Spain, Portugal, Italy and other Eurozone countries from defaulting.

    You may want to add France another Socialist country to the list. The Socialist who’s running for office just wants to pile on more public debt.

    I think we should send Gary2 over to Europe so he can show them how to make socialism work. Obviously they are not doing it right. 🙂

    • race

      rodster, when the euro markets collapse, big US based companies whom depend on Europe for revenue, will reforecast downsized projections, requiring massive layoffs to satisfy investment shareholders. IBM, cisco, apple, some real heavy hitters…..and when japan collapes? game over…imagine the housing foreclosures, they pale compared to 2010+. in the end, the investment community has cannibalized themselves…

    • sharonsj

      It is not socialism that is the problem, it is the banks. Just as in the U.S., the banks screwed everyone and then demanded a bailout. You might pay attention to the fact that the only country to not have these problems is Iceland, which told the banks to eff off–not only did the people of Iceland not save the banks but they threw out all their politicians. We should have done the same things.

    • Gary2

      We already have socialism for the rich and wall street but brutal capitalism for the rest of us.

      KUDOS to France for voting socialist. We could use A LOT more socialism here in the USA.

      If its good enough for the rich and wall street its good enough for the rest of us.

      Also I see the minimum wage going to 9.25 per hour here. greedy MF corps like walmart can pay their staff more. F this race to the bottom capitalist crap

      • Kev

        Gary,you could do with a tad more foam on your bottom lip there.Not nearly rant-astic enough.

      • Rodster

        We’ll see what a 75% tax on the rich (1 million Euros) in France looks like in 12-18 months. It’s not going to end well. 🙂

        • 007

          Yep, 75% tax rate in France. That is just what that economy needs. That should effectively crush the economy and the few remaining employers left. The others will just move to tax friendlier countries. But at least those evil rich people will be paying their “fair share”. That should make everyone feel much better when they are homeless, hungry and in the dark.

          75% tax in France! Where do I sign up to start a business there.

      • Mal R.

        Yea, that socialist paradise is WORKING WELL for the people in Venezuela.

        Here’s one from the right wing lunatics at the NY Times

        Me thinks Gary will conveniently ignore this.

        • jox

          It seems that capitalism is doing far better in Sudan, or Etiopia, or Vietnam (choose the third world country that you want). Why don’t you compare apples with apples and oranges with oranges. Please compare with Sweden or Finland. Me thinks that you are going to conveniently ignore this.

          • Jeremy

            Sweden’s finance minister (Anders Borg, on forum held in DC by Charlie Rose and Christine Legarde) all but admitted Europe’s failure to create ecoonmic growth and jobs for the last 20 years, and advocated no stimulus, fiscal reform, encouragement of small business and growth-oriented policies.

            I hope you all are not giving up yet, though. The world has faced similar catastrophe during the Cold War (real threats of nuclear annihilation. We may yet endure a cataclysm, but have faith in people, and remember, world economists were predicting economic collapse in the late 1970s, too. Not all of us can, or want, to “go off the grid” (as one person told me weeks ago), or “to prep”.

            Be vigilant, well informed, but have hope.

  • mondobeyondo

    More than one out of two Spaniards under the age of 25 is unemployed.

    That is beyond scary.

    When you are unemployed for a lengthy period of time, you become disillioned. You become cynical of those government programs and agencies supposedly there to “help” you. I know. I’ve been there. I’m STILL there.

    It gnaws at you. Just why are there 30 windows available at the Department of Motor Vehicles office, and there are two clerks assisting more than 130 people? Our federal government in action? Hahahaha….

    For what it’s worth, I think it might even be better in Greece. Maybe only a 6 hour wait, with one clerk for 600 people, at their drivers’ license office. It reminds me of an old joke from the Polish crisis in the early 1980’s.

    A guy steps into a line where several hundred young women are standing. He asks them, “Is this the line for butter? Or for bread?” The response he gets is, “This is the line for pantyhose. The line for bread is two blocks down and to your left.”

    He proceeds a block and half down. Thousands upon thousands of people are waiting in this line. “Excuse me, this is the line for bread, no?”
    “I’m sorry, sir. There is no bread here. This is the line to slap the prime minister in the face…”

    Coming soon to a neighborhood near you….

    • knightowl77

      of course that prob means fewer cops to write you a ticket if you have no license…so maybe it is wash on that score

  • mondobeyondo

    Okay, we’ve got Greece, now Spain…
    Anyone else wanna join this great debt party?
    Oh yes! Italy! Come on up, l’Italia!!
    You’re next up on “The Price is Wrong”!

    You guys are selling that tower that’s about to fall over, right? That Leaning Tower of Pizza?
    Or.. [censored by Mondobeyondo – English translation: adjective indicative of an act of urination] — giggles!

    Whatever. If I had the money, I’d buy it!

    • race

      soon, japan will be added to the list…debt to gdp ratio is > 250%…an this is prior to their mass evacuation of tokyo..imagine that cost and the impact to their GDP

      • mondobeyondo

        Japan is stuck in a rut which they are unlikely to get out of anytime soon. Their birth rate is declining, and their economy has been stuck in neutral for the past 20-odd years. But they do have nice bullet trains.

  • Jodi

    Europe is falling like dominoes and all the media can talk about The White House Correspondents’ Dinner and who was invited. Mr. President, knock it off with the parties and the jokes…Americans are tired of it.

    • race

      jodi…the govt’s mouthpiece, the MSM has been instructed to cover small potatoes. they dont want us to PANIC, and close out our IRAs and banking accounts prior to the govt stealing them. i followed bob chapman’s advice…cash out and take the penalty…a bird in the hand is better than two in the bush

      • Jodi

        Yes, that is very good advice!

      • maggiemayok

        We followed Bob Chapman’s advice as well… the taxes were frightening enough. Hopefully, they won’t come try to get the rest of it… oh wait, that’s right… the rest is in silver and gold, which isn’t even real money, is it?

  • cyrus

    Things are getting bad all over the world. America will drag down the entire world. We have lived a convoluted life for far too long. Out of necessity we will get back to True Economics.

    It won’t be out of choice, it won’t be fun, cool, attractive, sexy or anything else. It will be because that is all that human nature knows. Good Luck and God bless in 2012.

  • sam montgomery

    Well there it is!!The truth and no one wants to here it…..get ready to take care of yourself AMERICA…I will pray out loud. Lord JESUS let my military contract expire before this starts so
    I can provide for my family.Without you there is no hope.Thank you Lord for saving Grace.Thank you Lord for the ones that still spread the truth.

    • Annette

      Hey, Sam! I can’t believe the times that I am living in. Yes, it is the last days. What part of the last days, I don’t know, but…it’s all there. I would guess we have five years left in America, before the collapse. But, I also think that there is an event called the “Rapture” for those who are in Christ. Keep your family grounded in the Word. Thank you for your military service. I hope to meet you in the air!

      • knightowl77

        and just in case the rapture is at the end of the Tribulation and not @ the front end you should all prepare….and if these are not end days it would still make sense to prepare for an Economic collapse or a hundred other disasters that might happen prior to the end days…Be 1 of the 5 “wise” bridesmaids and not 1 of the 5 “foolish” ones…

        • The whole point of the “Tribulation,” if you’d bother to read the Book of Revelations, is that it will be a time of great suffering and “tribulation” for Christians. Why on Earth would all the Christians in the world vanish into thin air before the time of great suffering and tribulation of Christians? Nevermind the fact that the Rapture isn’t mentioned anywhere in the Bible in any way that relates to how modern Christians interpret it, or the fact that people have been saying “These are the end times! Repent, the end is nigh!” for about 2,000 years now.

          Humans made this mess. Humans will fix this mess–one way or another.

          I wrote once that God isn’t going to come down here and do something that he gave us the tools, intelligence, and reason to do for ourselves. I’m not going to pluck an apple from a tree for you because you’re unwilling to reach up and grab one for yourself. I’m not saying YOU, specifically, are unwilling, but asking God to come fix this mess is the equivalent of asking God to grab an apple for you because you’re unwilling to.

          Just food for thought. I’m an atheist anyway. Believe what you want, but from what I’ve seen… It was humans that made this mess, and it’s humans that have the ability to fix it. Whether they will or not remains to be seen, but if the human race stands around begging someone else to fix it, it’s not going to get fixed.

  • ken nohe

    The Euro is a Deutsch Mark on steroid. Adopting it means that latin countries have been living way beyond their means for over 10 years. It can’t last much longer. No amount of restructuring will be enough as we can see in Greece.

    Greece needs a currency half as strong as Germany with more inflation. Italy and Spain 20 to 30% weaker and even France cannot live much longer with the current Euro. So it is indeed just a matter of time. Everybody in Europe knows it… Nobody wants to face the music.

    Will Spain be the trigger? Hard to say. Greece is already so advanced in the process of dislocation. My guess is that the current crisis will not have it’s “Austrian bank” event as in 1929. Central banks will make sure of that; they have learned from 2008. Better bet on a cascade of events moving faster than authorities can react. Spain looks like a good place for this to happen. So does Italy and eventually France 6 months after the elections. 2012 will not end peacefully.

    Recent politics has been about avoiding tough decisions. That won’t be an option in 2013. Interesting times are coming as they say in China.

    • race

      japan is the trigger/ the fatal bullet…no amount of counterfeit printing of digital dollars can save japan, the worlds third largest economy …or was…

  • mark

    Since Europe and the US have lived the socialists dream for the last 50 years on debt, we get what we have bought with the money. Not much to show for it execpt a bunch of people that think the rest of the world has to pay their way. You can’t spebd your way out of this mess. The cuts will be very painful, but the longer we what the worse it will be. Austerity is hard and the downward spiral is painful. We either default or make huge cuts and pay the money back. Which will it be?

    • Snoopy_The_Economist

      The debt can NEVER be paid back. Never let a good crisis go to waste…

    • Gary2

      no one ever cut their way to prosperity but they did spend their way to prosperity like the USA did in the 30-40’s.

      The austerity is bull crap. I did not have a seat at the table and now you want me to pay for some rich mother ************** to be bailed out? WHo does not even pay their fair share in taxes? Go ahead and try!

      • knightowl77

        you claim you had no seat @ the table….

        But you are perfectly happy to stick the debt and deficits to the next generation or the generations to come after them…As long as you get yours…What voice did they have?

        They should not have to pay for your greed anymore that you object to paying for the banks and wall st.

      • Mal R.

        “they did spend their way to prosperity like the USA did in the 30-40′s.”

        Uh not so much spongebob. Even Henry Morganthau, FDR’s Treasury Secretary and an author of the New Deal said that after all the years of FDR’s Bullcrap, it didn’t work.

        Here’s Steve Forbes and Burton Folsom on the wonders of FDR’s tax and spend successes. It’s a figment of Spongebob and Gary’s imagination.

      • Mal R.

        Gary, the only thing FDR (A DEMOCRAT) was really successful at is locking up a whole MINORITY race of US citizens without trial. Oops. Conservatives are sooo racist.

      • McKinley Morganfield

        “no one ever cut their way to prosperity but they did spend their way to prosperity like the USA did in the 30-40′s.”

        FDR’s New Deal reckless meddling and spending did NOT produce prosperity; it made the situation worse. This can not be argued, as it is undeniable. Fortunately for FDR Hitler invaded Poland and Japan attacked Pearl Harbor. When the dust settled on the rubble WW2 left the USA as the sole surviving industrial nation. The prosperity of 1950-75 was our reward as no other nation had our capacity to produce goods as efficiently as we could. Then the great decline began as our economy was no longer based on productivity and frugality. Instead it was based on consumerism, easy credit, debt, and the fact that the USD was the global reserve currency. Its game over time. Democrats, Republicans, liberals, conservatives, progressives, and so on are meaningless labels. Grow a brain and get over it because you, and many millions of others, believe in things you don’t understand.

        • Snow White

          Socialism appeals to two groups:

          1) Slackers who think they will get something for nothing.

          2) Tyrants who think they will be running the show and other assorted scum who think they will be part of the ruling class in this “classless” utopia and thus above it all. Note that most hard-line socialists are quite rich. Fidel Castro is a billionaire.

          One must note that the likes of Sweden pay little or none of their defense costs. Thhe mere existence of the USN keeps shipping lanes open and allows commerce without fear of rampaging pirates. Before someone says that Sweden et al are peaceful nations and don’t need a military, bear in mind that numerous other countries would opportunistically invade and loot such countries if there was not the threat of intervention by the likes of USA. Kind of like your home being pretty safe if you forget to close the garage door when you leave, but your neighbor is sitting on the porch cleaning his shotgun.

      • Hendrik Mills

        Sincere liberals, as I once was, as opposed to cynical, opinion-manipulating liberals, do have a real grain of truth in their complaints about the rich. The owners of large banks and large corporations have been profiting unjustly for many decades, actually at least a century and a half in America, from their own lop-sided amount of power, and from government favoritism. The sly trick that those in power today have done to make the left fight the right instead of the enemies of most of mankind–central bankers, Masons, financial manipulators, CFR types, media kingpins, academic opinion-makers–is to create the following false dichotomy: (1) Either you are for private enterprise, which must mean unfettered capitalism and international corporate power, or (2) You are for spread-the-wealth big-government and big-labor policies linked to the ideas in the Communist Manifesto. These are false choices. Private property, family autonomy, freedom in local affairs, are necessary for human freedom and happiness. Look into the philosophy of Distributism–opposed not to private property but to rapacious, concentrated private property as well as to the tyrannical omnipresence of the modern State. Distributism does not refer to any forced redistribution of property such as was practiced by Stalin with his destruction of the kulak class, or by modern American federal programs which tax the productive people to give bailouts to unproductive banks and to unproductive welfare recipients. Look into “Economics for Helen” by Hilaire Belloc, and works by G. K. Chesterton and other thinkers on distributism. It is in essence Christendom’s time-honored idea of Small is Beautiful, in a way. It was practiced to a great extent during the Middle Ages, a time unjustly maligned today. It is the protection of small, local, family-sized farms and enterprises. For such a system to work we need industrious, independent, and moral citizens. Distributism is opposed to Usury, which includes the Federal Reserve, fractional-reserve banking and other financial scams. Do some research on Distributism!

      • Jeremy

        Hey Gary, guess what? More people voted today for Scott Walker in the DEMOCRAT primary today than the two Democrat candidates COMBINED.

        Looks like your socialist utopia will not happen. Sorry.

  • Erin

    Really, how much longer can we keep kicking the can down the road?

    The more news I read just seems crazier and crazier. Printing more and more money thinking we can just make the problems go Poof! I mean, come on, are we living on Earth or the Twilight Zone. It’s just nuts.

    I happened to stumble onto videos of Nigel Farage and it boggles my mind when he’s talking so much sense and the other EU presidents just laugh him off, insult him or just belittle his concerns.

    The willful ignorance just has me stumped. It’s getting to the point where I almost can’t stand to investigate this anymore.

    Falling back into drinking just so that I can laugh at people thinking we’re in a recovery when it’s anything but. Because if I wasn’t drinkin’, I’d be screaming at the top of my lungs.

    • Annette

      Erin, I hope you are not turning to alcohol. But, I understand if you are. It’s not gonna help. The problems are still gonna be there. I can’t read certain parts of the news anymore. I heard about Nigel and am going to You Tube to listen to him.

    • I know the feeling Erin.
      You have to remember , this is happening by design.Most friends and family don’t want to hear it,which can be tough.You can add spouses to the list also.It’s easier to bury your head in the sand.Prepare best you can.It’s coming our way. I personally thought it would start to fall apart last fall.As long as the sheep stay asleep,it can drag on.
      It could come crashing down tomorrow, or in two years from now, hard to say, But our day is coming

    • Ameen

      @Erin: I CONSTANTLY watch Nigel Farage clips on YouTube, the man is brilliant. EVERYTHING he has predicted either has or will come to pass. The Europols behave like that because they have no ******** idea what to do. I worked with Europeans for many years: their CLASSIC response to any issue outside their narrow frame of thinking is to belittle and joke.

      • race

        check out bob chapman…..with his insider govt and defense connections, he contends a coup d’etat is a real possibility…but yes i like nigel too

    • Gary2

      why don’t we stick the can up the GOP ********************!

      • Kev

        Gary,your foaming again.

  • Glenn

    Hoe do we get prepared for this?

    • race

      start with canned foods, lots of water, guns, ammo and solar chargable appliances, and be able to barter…as one wall street insider put it…we’re about to turn back the hands of time to the late 1800s..its just a matter of how fast or how gradual the plane crash decent is going to be…

      • Ian

        prepare your heart and minds, and fill it with love and love for god. Do not store up treasures on earth as they will be plundered. In these times, if you think like a thug (i.e. stock up on guns, ammo) you will die like a thug.

        Seriously, work together and quit fomenting about “those evil unprepared people”. Dear God, that sickens me. The whole of humanity is just that, a whole. We are not seperate from one another.

  • Old Man

    What does Spain produce? Wine, olive, bull fights and a lot of cheap stuff and services.

    Has anyone bought anything of high tech, medium tach, hell – even low tech from Spain? Do they even make toasters?

    Nevertheless, given this low national skill capability, Spain borrowed umteen billion Euros. For investment? If so they have failed because what net gain has resulted from that investment? But I am sure a lot of that borrowed money is to fuel the good time.

    They had a decade of really good time. Now it’s time to pay up what you promised to repay.

    Call it austerity, call it whatever, Spain must repay the wealth it freely chose to borrow from others. Else go into national decline. Oh yes, that nasty trick about going to the New World and plunder a couple of million tons of gold from the natives won’t work anymore.

    Spanish are very religious people. Good. You have lots of time to pray. If will make you feel better but won’t change a darn thing.

    • McKinley Morganfield

      Spain invested heavily in ‘green jobs’ and the results were even worse than the bankruptcy of Solyndra.

      Check out:

      • Snow White

        2.2 jobs destroyed for each “green” job created.

    • mondobeyondo

      Can’t verify this, but I believe Spain makes closed circuit television cameras. They copied Sony’s technology, rearranged a couple letters, and introduced a product called “Nosy”. But I digress…

      Other than that, yeah. It’s pretty much olive oil and bullfights. Greece has the upper hand in the olive oil department. So that leaves… bullfighting. Ole! Ole! Heading over to Pamplona next year to buy a brand new sofa next year!

      • mondobeyondo

        Next year.. obvious typo. Sorry…

    • Bone Idle

      Spain produced a great atmosphere for other Europeans and U.K. people to retire to. Houses and the price of living were relatively cheap compared to these retirement refugees own countries – especially if you paid in Euros.
      A great amount of construction was undertaken. A supply and demand situation built up raising prices. Builders and developers borrowed heavily from Spanish banks to finance this construction.
      Now the economy has started to hit the wall – a little bit of contagion from other E.U. states.
      House prices have deflated, developers have gone broke and unpaid loans are starting to hit the Spanish banks.
      This is one of Spain’s serious internal problems.

    • Jordi

      Old man, maybe you want to think about all the manufacturing jobs that left from US to go to China? I think US is exactly on the same situation Spain is today. You aren’t producing a thing today as well, apart from huge amount of useless dollars which are not worth the paper they are printed on. Yes, Spanish are religious people and that’s why the crisis has not killed them yet: they are used to help each other. You should better learn a bit from them, before the same crisis starts to kick the US even harder.

      • Old Man

        Spain has never been a manufacturing producer while the US has. US continues to own world biggest technology (patents) and most advanced design expertise. Just that the production of many products have gone overseas to save labor cost.

        To ‘make up’ for the loss of core manufacturing, however, both US and Spain did the same thing – build houses far far beyond there is a market for. Actually, a market was fabricated from credits to buy up all the over-built housing. Both countries pushed this fake market way overboard, fueled by unfettered greed. In the end, the greed was stopped by itself, the fake housing market collapsed, the fake credit reversed to hit the banks.

        That is the story. But the outcome can be quite different because while Spain does not control its own currency, the US can print the world reserve dollar trillions more.

    • Paul

      My toaster is from Spain, and my coffee maker.

      The problem with these appliances is: they are 10 years old and there is no need to replace them any time soon.

      If we get a visa, we will make holidays in Spain. It’s a beautiful place.

      • Pat

        Gag me with a spoon. I guess Spain is great if you come from some poor African country or a place where the Sun doesn’t shine. I know because I live here.

        Goldenladyfun from Spain

    • Pat

      Good question, Old Man. Spain makes nothing. All of our manufacturing plants closed long before this collapse. The truth is Spain and Europe at large is a fascist state. That means that when you are in business you must have the blessing of the state. Your profits you keep. Your losses are passed on to the people.

      What Spain does have is Sun and Sea. But all that has been lost due to greed. The E.U. is the new dictator. Unelected and making orders on everyone.

      The best thing that could happen is for Spain to have its own economy. That will never happen due to greed. The people of Spain are expendable. Its the Sun and Sea that the E.U. wants.

      Goldenladyfun from Spain

      • Old Man

        The highest tech products I know Spain make is commercial jet engines from a joint-venture with GE. Many Boeing & Airbus mid-size jets use them.

        But of course, Spain as a country must make a heck of lot more stuff in order to have a high standard of living. In a world dominated by electronics and computers, Spain develops, owns and makes zilch of these. It even lost the Spanish guitar to American and Korean makers.

        The last time Spain had a great standard of living was during the Spanish Empire. Spain invented the world’s best ocean-going vessels along with advanced sailing skills in the 15th century. That gave them a head start to discover and plunder the New World. Some 50 million pounds of gold was brought back and Spain became very rich.

        What did they do with such fantastic wealth? Good times, holy wars, greed wasted all of it within a century. It never recovered from the decline, and plunged into fascist dictatorship in the 1930’s. Maybe the Spanish blood and genes is never going to give them the discipline and wisdom to compete in the 21th century.

        • Pat

          You are right on the money. Only I must add that Spain is a Fascist state masquerading as a socialist, communitarian country.


    • JasonD

      They’re pretty good at solar technology, FWIW.

  • Steve

    Do you remember when the Muzzie terrorists attacked Spain and the Socialists got elected in the next election. Yup, no surprise the Spanish Socialists took their country over the cliff.

  • matt

    Pestilence, Famine, War, Despair. The four Riders have been set loose upon the World. All will find fertile fields to plow and sow their destruction. Hatred, mistrust, anger grows daily. the reaping begins. the malstorm is nearly upon us. Crud, the reality of our situation has turned the words to dust in my mouth. Will continue narative when words to express my greaving heart for the millions who will perish no longer renders me speechless.M

    • Gary2

      don’t forget Gog and Magog! Or the Beast or the lake of fire. Come on how disappointing that you forgot them.

      • Kev

        Foam-fest imminent.

    • knightowl77

      To you and all my brethren…

      This website has a lot of info on the End Times (and they believe the end times have started) which will go over G2’s head….

      There is a video where they explain their interpretations…

      Watch and see what you think…time may be shorter than you think..

      • maggiemayok

        Daniel’s Timeline is very interesting on several levels…

  • robert lazo

    Forget about it. Just watch “The X Factor” or some TV re-runs. Nothing to see here, move along…..

  • McKinley Morganfield

    I agree that what is happening in Greece, and now Spain, is the fate that awaits all economies that have been based upon easy credit, consumerism, and of course debt piled upon debt. There is no way to grow our economy and/or tax, borrow, and print to rectify the situation. There must be a big retraction. The first step is to allow the TBTF banks and insurance companies fail and prosecute their executives for fraud and maleficence. The second step is purge DC at the ballot box. The third step is prep and find common cause with family and neighbors. We are indeed in for an interesting time.

  • jsmith

    It’s beginning to sound like Europe is entering the 1920’s. Something wicked this way comes!

    • mondobeyondo

      It’s actually looking more like a repeat of 1933.

      Before all is said and done, there’ll be a dictator or two rising out of all of this. It’s happened before. Think Hitler and Mussolini.

    • maggiemayok

      What dark beast, his hour come round at last, slouches toward Bethlehem… or something like that.

  • Steve

    Erin: 6:59 pm
    “Really, how much longer can we keep kicking the can down the road?”

    The can is all rusted out!
    It will get caught on your shoe.

  • The problem is not the crash. The crash is really the solution to all kinds of bad decisions and corruption that have built up over many years.

    “The Spanish government is going to need a massive bailout and so will the entire Spanish banking system.”

    Suppressing the crash leaves much of the bad decisions and corruption in place. A bailout is the last thing you want to fix this problem. Letting the crash happen is the best medicine. Initially Spain will be worse off, but things will start getting better in a few years. Just look at Iceland.

    • Snow White


  • Paul


    That’s the only way out.


  • Paul

    Do not tax anybody.

    Then dismiss all government workers and bureaucrats and politicians and employees of public utilities and public hospitals.

  • 1% fan

    Montezuma’s revenge.

    • Gary2

      ************ happens

      • Mal R.

        You meant “Gary happens”

        • Rodster


  • Bob

    I have been sharing for the past 3 years what this administration is doing and just went through a 6 heart bypass and people still don’t by it.
    I’m done! My health is more important than trying to convince people what is going on.
    Most I talked to loooooooove obama and will vote for him again short of dying before election.
    America get ready for an education! obama after re-election will double down and you won’t know what hit you.

  • Evie

    The people did not create the problem they were coaxed by the banks. Money was taken from their pay for retitement. The money went to the elite. Create high paying jobs pr the majority will be on welfare. No one will accept austerity to help the elite. How much did they pay into the pensions? How much are they worth considering globalizatipn os responsible for collapse?

  • Cliff Hanger

    4th largest economy in the EUROZONE, not Europe.

    • Michael

      Yes, you are correct. Once in a while I make a little slip like that. 🙁



    Hasn’t Gerald Celente and others (specifically Gerald) been saying that Italy, Greece, Spain, Ireland, Portugal were all in major trouble like three years ago?
    Why has the mainstream news just picked up on these stories?

    This was not directed at this writer, because Michael has been saying a lot about these events much then Gerald Celente.

    But why now are they sounding the alarms?

    Makes one wonder what they are getting us prepared for.

    • Gabe

      because MSM is controlled.
      they do no want the population to know.
      it’s that easy

  • Ivan

    If Spain is socialist, why do they have private banks?

    • Pat

      Do they? And by the way Spain and Europe as a whole is FASCIST.

  • Adam

    I’m sure most readers on this site already know this, but Spain “doubled down” on green jobs and green energy years ago. They wanted to lead the world in this field. Any liberal tells you that green energy policies work, tell them to look at Spain

    • 007

      But they produced some stylish green energy at only 10 times the cost of conventional power. I bet this puzzles the he’ll out of Obama how they went wrong.

  • Debbiejoann

    One definition for recession is unemployment 9% and above. Depression is 14% unemployment. Seems like depression is already here for much of the eurozone with no end in sight.

  • puzzled

    Erin: Want some insight on the Zombie Nation? ..This is a free book [pdf] by Charlotte Iserbyt,former gov’t education director/whistleblower. Find her videos also. This is not an easy read, but it is the only way I have found to understand the silence in America and our path to Socialism. The introduction to this vitally important book not only took my breath away, it brought on a flood of tears for us all. Godspeed Erin, and to all of you…..

  • As I read this article, it is hard for me to wrap my mind around the things that are happening in Spain. A good thing to do here is as you reread this article exchange the name “United States” for the name “Spain” and then let it sink into your mind what the implications will be for the country and for you personally as you reread this article.

  • Washington

    Mitt Romney vs Barack Obama First Debate Preview

  • Proftel

    Europe and the U.S. are today with truckloads of logs down a slope without brakes.

    • Gary2

      hey I just dropped some logs, err job creaters in the toliet!

      • Malcolm Reynolds

        Speaking of logs Gary, you are “Manos de Intestinos” physically and philosophically. Of course, you’re a democrat so you’ve got a minority Latino standing next to you. Ask them what that means.

  • David M

    What is it going to take for the Spaniards to call it a Depression? Burning cities and riots?

    • mondobeyondo

      Look how long it took George W. Bush to admit we were in a recession. In fact, I don’t believe he ever formally acknowledged it. “Significant downturn”? A “economic slowdown”? Sure got that right!

      • Snow White

        The housing bubble peaked in 2006, so we are about six years into this downturn. D.C. and the lamestream media will NEVER call it a depression.

        Question: Why is it still called “the mainstream media”? They are so far from the mainstream that they can’t even see it with binoculars.

        • Jeremy

          The beginning of the Great Recession was December 2007.

    • Kev

      Basically, for them to be bothered.

  • mondobeyondo

    Italy’s next.

    Could be around mid-July or so. But don’t take my word for it. The ol’ crystal ball hasn’t worked the same since I dropped it on the floor back in 1995.

    • mondobeyondo

      Oh, cool! The time and date stamps on my comments are correct now!! Michael, you’re a genius! hehe

  • Paranoid

    Actually the problem is Nubian Slaves. (Shortage there of) To properly temper Spanish Sword blades you must plunge them through the heart of a Nubian Slave. This whole problem started when they ran short of slaves: The Spanish sword market has gone to Sh**. And the rest of the economy has followed. Don’tbelieve me Goggle Nubian slavemarket.

  • Chris

    It is not that the global financial system is crumbling that is the main source of worry but rather the chaotic transition to the replacement ‘solution’ that will be provided by the ‘elites’ and what that replacement ‘solution’ will be. A rotten and fraudulent present system is probably better than outright slavery under a totalitarian police state. Don’t rejoice too much at the collapse because what comes next will probably be worse.

  • M
    Have you heard of ‘Freedom Reigns’ where ‘DRAKE’ talks about the upcomming takeover by the populace of all countries on the globe? No New world order.
    Will hear about the banks, government collapse within 2 months.

    • Graham


      I’m tracking the “Drake” material and that of a few others just now, including “The White Hats Report”. Purely out of sanity, I remain on the fence until profound action is taken. If this fails to materialise by the end of June, it might be a sound investment to purchase “Prozac” stock as the numerous characters that are backing this “mass arrest” stuff may end up looking for some strong medication.

      The situation in Berlin just now is certainly very interesting as the arrest of Dr. Herzog could well blow the whole Bush, Ackermann, Dewhurst and Romney affiliations out into the open. Three case numbers have already been released and more should come out this week or next. The recent arrest, questioning and release of Geithner has certainly been confirmed.

      It is also interesting that Lord James of Blackenheath stood up in the House of Lords recently and exposed what he knew about the three $5 trillion dollar transfers from the Federal Reserve to JP Morgan to HSBC then into the accounts of the Royal Bank of Scotland.

      The transactions are showing as “off books” within the RBS. The only evidence that proves the events took place are SWIFT transaction documents, of which I possess a copy of one of them. If this Lords investigation proceeds unabated, then we could see the start of a “very major” exposure and take down of a huge number of corrupt individuals.

      If the latter occurs, the speed everything will have to take place will be lightning. If arrests happen at the Bank of International Settlements in Switzerland, I would view it as a sure sign the Federal Reserve global banking cartel is finished, certainly in its existing guise. I have also been following all the talk about a new financial system (not NWO) that will be commodity backed, and the “Global Settlement Accounts”.

      Stay tuned.. as I’m sure Michael will have every aspect of it covered as it breaks in the mainstream and/or alternative media.

  • patriot alice

    Europe will print Euros like crazy and bail them out, same with Italy and the rest…Don’t worry, be happy….

  • Washington

    Federal Debt Climbs Past Annual GDP Saturday January 14th, 2012

  • wicked trader

    You can avoid reality, but you cannot avoid the consequences of avoiding reality.

  • erheault

    having been born in the depresion (1933) I still remember the early lessons taught one was stay out of debt so I owe nothing another was be frugal buy only what you need and use it untill it is no longer servisable I drive a 1999 Ford PU runs great and does all that I Need it for, Bought 40 acres then built my home on it as I had the cash never owed a dime so I have a hard time listening to you whinners about loosing homes and vacations and all of the rest on the good old credit card, I suspect that the majority of credit card holders never should of been issued a card. Also was taught that all banks are thieves and usury producers a lesson that is again being taught.
    I Will gaurentee that you will not enjoy the upcoming finincial disaster that the so called leaders have brougt forth, now is a good time to start practecing the CYA part of your lives

  • flipping psychic

    Get ready to hear the corporate media spout off about how lazy and stupid the Spanish are, and how they need “discipline”, etc, etc…

    • Snow White

      Right up until USA replaces Spain in the headline. Wait until Obama et al are openly using far more brutal oppression than what they condem in other countries to stay in power.

  • Mark

    To much Government.
    To much taxes.
    To much administration fees.
    To high costs of production.
    To much imports.
    To much loss on trading deficit.
    etc, =


    To much cracking down on black markets, creates even less supply, price increase, and now becomes even more profitable, and that means they will organize. For your own safety, please don’t get in their way.

    Give me, Freeeeeeee Dooooooome

    Vote, Ron Paul.

    • Pat

      Amen! Down with Fascism.

  • Benjik

    If a Spanish bailout is indeed coming, I wonder how much of our tax-dollars Bernanke will contribute in another round of “secret loans”….

  • It is I only

    Stupid schmucks commiting suicide.
    You suicide the bastards that brought this situation on to you!

  • Stephen

    ONCE that NYC stock market starts to crack,
    the RAPTURE OF THE CHURCH could happen at
    any time…..

    BULLS will NOT be ready………..

    they never are, are they ??????????

    Stephen >>>>>>>>>>>>>>>

  • Bernie

    The Euro will soon be history, which will raise the value of the U.S. Dollar, which will sink the stock market.

  • VyseLegendaire

    Spain is here to kick ass and chew bubble gum and its all out of gum. And its legs got blown off by an IED in the Afghan war.

  • jox

    You should notice that Spanish debt and deficit are less than in US and in UK. Your problem is that you only read and listen anglosaxon media, and they are manipulating you.

    Three long years, screaming the end of the euro every single day. And Europe is still there, Greece still inside Europe, and the euro is even more strong than the dollar. One of these days you are going to start wondering if perhaps all you read is true, or if you are being manipulated.

  • Most of what is in this article is true however the banking and housing data are not as clear as this article suggests. Frankly, the same banks who helped drive housing prices ridiculously high during the boom now refuse to give mortgages unless it is for foreclosed properties that they own. This automatically drives housing prices down. The government should place new regulations on the banks as this behavior is the number one reason for the massive lack of housing sales. Furthermore, the article does not note one single detail about immigration and emigration. Spain received over 7 million immigrants mainly from Latin America and Morocco over the last 8 years. It has one of the lowest natality rates in the world and yet grew from a population of under 40 million to 47 million during this time. Many of them were allowed to come in illegally and then offered amnesty. Now they are the largest block of people receiving unemployment benefits (what they are receiving far outweighs what they paid into the system). As soon as their benefits are running out many of them are already heading back to their homelands which in Latin America now have growing economies. The spanish government needs to require all immigrants (who have not become spanish citizens) to return to their homelands if they do not have work after a reasonable time of unemployment (for example 3 to 6 months). This would alleviate a great burden on the spanish government, unemployment benefits, the socialized health care system, education, etc… Then why don’t they do this? This kind of behavior could be interpreted as far right wing politics. Nonetheless, those immigrants who have remained in Spain are suffering while receiving now only 400 euros per month in unemployment benefits while their friends who have already returned to their homelands are prospering.

    • Snow White

      Didn’t you mean USA?

  • There is one other key element to the US and Europe’s financial woes. The unbalanced import/export exchange with the chinese who also hold much of our debt. In Spain, there is a chinese store selling chinese products on every spanish corner. Further, the chinese immigrants have been given a status that doesn’t even require their businesses to pay taxes for 5 years. They have bough up the most famous of all spanish businesses all over the nation, the spanish bar. Entire industries like shoe making have been decimated because of chinese imports (rather the dumping of cheap and crappy chinese products into the spanish economy). Regarding the China problem, Spain, Europe and the USA need quit looking the other way and learn to tell the chinese NO. While I like the chinese people overall I do not believe that the chinese government is a friend to Spain, Europe nor the western world. Change is in order and that should include renegotiating our trade agreements with the chinese government and employing tariffs on their practices of dumping trashy products into our economies. Furthermore, our own companies that are manufacturing in China should be taxed on those products and encouraged to begin manufacturing in their home countries again.

    • Snow White

      It will never happen, but USA’s trade policy should look like a mirror.

  • Jerry Parker

    My own family, all still in the UniTIGHTASStates of AmeriKKKakapeepee, is so deep in fantasy and denial that I dare not talk to any of them about such realities. They are drunk on fundamentalist-pentecostal *********** and cannot see past their pieties. I almost never reply to their Facebook messages, in fact, I seldom even open them, not for messages (crap!) nor for photos (of such losers). I believe in God (being Catholic) and still have a distant love for them, but all these troubles simply alienate us. I just thank the Lord that I had the wisdom more than half a lifetime ago to move to the Dominion of Canada, where there still is some real hope, if we can resist the tugging downward of the rest of the sinking world.

  • Steve

    This is the direct result of the Spanish Socialist government’s policies (A gov voted in due to the terrorist attacks several years ago.).

  • Salman Khan

    Now under such circumstaces faced by spain what will be the best option to get rid of , and help the people towards a modest living. Do you think taxes reforms will help, and or along with debt management new investment in some industries will be helpful.

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