You know what I did when I heard this “news”? I laughed.
This is something I´ve been pointing out since I started writing this blog. All Spanish banks are insolvent, bankrupt, done, zombified, over the hill, caput, dead, failed institutions, and absolute deathtraps for any person stupid enough to have cash within. And this has been the case for years, so it’s not something new to suddenly put forward as “news”.
´The Circle of destruction´ which is the name of the game going on in the entire world whereas government give free freshly printed cash to big bank and those banks in turn buy government debt/bonds in an endless circle back and forth, has one of its most outlandish spokespersons in Spain.
Spanish banks have lent hundreds of billions to developers and real-estate moguls who cannot sell shit because no one wants their crap. The Spanish government has in turn guaranteed those debts with tax payer money. Banks played the lottery of derivatives markets used those guarantees and toxic loans to play. Spain’s government then gave the banks lots of cash, which the banks used to buy more Spanish debt/bonds so they could remain at derivatives casino. Then the ECB stepped in and kept buying debt, both from banks and the Spanish Government, so the spiral could continue.
An endless circle of debts, inflationary money, derivatives and bad toxic loans - how can anyone believe that it can end in any other way then total collapse and absolute madness?
Spain is done for. Completely. When this entire scam unravels we will find that there is no value left anywhere in the entire Spanish economy and that 20-25% of unemployment will seem like the rosy good old days.
Basque- Catalan- and Galician separatists and nationalists will grow immensely in power while demonstrations go over into full-out bloody riots and then over into armed conflicts. Civil war is a real possibility and very likely outcome.
And the effect, only from Spain, on the entire European and consequently the world economy, cannot be understated. Spain is the last piece of termite infested domino when tipped over all the rest will follow.
I can see the Valkyries circling over our globe like vultures right now…