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Spain to be the NEXT Greece
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TOPIC: Spain to be the NEXT Greece
#17126
Spain to be the NEXT Greece 2 Years, 8 Months ago Karma: 268
Well, for a while it looked like Italy had been targeted by the banksters as the next "Greece" to have its economy raped-and-slaughtered. However, when the banksters were able to parachute-in one of their own to take over the governments (without even needing an election), then SUDDENLY the attacks on Italy's debt-markets instantly stopped. (What an amazing coincidence!)

So the banksters have simply moved on to the NEXT country on their financial hit-list: Spain. They have gotten that government to cave-in to Friedman Austerity - and so its fate is sealed. Unemployment will soar. Deficits will go UP, not down, as U.S. economic terrorism just pushes the interest rates higher so that every dollar of spending (on people) which is cut out of the budget immediately becomes more INTEREST PAYMENTS for the bond-parasites.

Note that Spain announced corporate tax increases - copying the U.S. model where (official) corporate tax rates are HIGH, but only SMALL businesses pay those high rates, because all of the Oligarchs get multi-billion dollar tax-loopholes to protect them.

R.I.P. Spain !!





"Spain to Slash Spending, Raise Taxes to Cut Deficit"


www.bloomberg.com/news/2012-03-30/spain-...-to-cut-deficit.html

Spain, under threat of falling victim to the region’s debt crisis, will raise corporate taxes and slash public spending to trim the deficit this year by more than a third.

The government will cut spending by 17 percent, raise corporate tax rates and seek to boost revenue by allowing Spaniards to pay a fee of 10 percent to have the undeclared funds “regularized,” Budget Minister Cristobal Montoro said in Madrid. The 2012 spending plan seeks to reduce the budget gap to 5.3 percent of gross domestic product from 8.5 percent in 2011.

“We are in a critical situation that has forced us to respond with the most austere budget of the Spanish democracy,” Montoro said.

The yield on Spain’s 10-year bond has risen more than 50 basis points since March 2 when Prime Minister Mariano Rajoy unilaterally raised his deficit goal for 2012, as a deepening economic slump compounded a bigger-than-forecast shortfall last year. The additional austerity may deepen the second recession since 2009 that’s left the country with the euro-region’s highest jobless rate at more than 23 percent.
Historic Cuts

The 10-year yield fell 8 basis points to was at 5.39 percent at 11:05 a.m. in Madrid, leaving the difference with comparable German debt at 362 basis points, down from yesterday’s close of 365, the highest in almost four months.

The promised deficit reduction of 3.2 percentage points of GDP would be the biggest by that measure since at least 1980. That’s more than the cuts of 2.7 percentage points achieved by Rajoy’s predecessor, Jose Luis Rodriguez Zapatero, in the previous two years.

The budget plan seeks to avoid making consumers fund the cuts. The plan won’t raise value-added tax, cut pension payments or reduce civil-servants wages, Deputy Prime Minister Soraya Saenz de Santamaria said.

Rajoy riled European Union partners with his March 2 announcement at a summit in Brussels that he had raised Spain’s deficit target to 5.8 percent of GDP from the 4.4 percent initially pledged. Earlier he had attended a ceremony to sign a treaty aimed at ending the debt crisis by enforcing fiscal discipline. EU allies pushed back and got Spain to agree on March 12 to a 5.3 percent goal.

Rajoy tried to raise the target after his predecessors left him with a deficit of 8.5 percent of GDP, dwarfing the 6 percent the Socialists had pledged to the EU.
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