Wednesday, July 25, 2012

Spain Spinning into a Fiscal Free-Fall

http://economywatch.msnbc.msn.com/_news/2012/07/24/12931119-spain-teeters-on-the-edge-of-a-steep-fiscal-cliff?lite
Bailouts for Greece, bailouts for Italy, and now Spain may sniping at the Eurozone trough.

Except that the stronger EU members -- Germany at the helm - have no political moxie or financial store left for Madrid.

Buying up toxic debt was a poisonous idea to begin with.

The Euronzone wanted to establish a common currency, yet a common currency requires a common set of current economic regulations, which every member state would adhere to or be punished in turn.

Yet the culture of lay around, lay about, and lay to get pay which languishes at length in Greece and the other Mediterranean states warred against a healthy work and wealth ethic prominent in the Northern countries.

Easy pensions, tax evasion pervasive to the last, and a declining birth rate signalled that the culture of work and will had declined precipitously, and would never have fit within the more diligent market demands of a common currency supported by fiscal solvency, transparency, and integrity.

Spain cannot hope of a bailout, or the members states cannot hold onto their unique, howbeit dysfunctional, political autonomy.

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