Spain

Greece, Spain near chaos and economic collapse

Monday, June 11, 2012 by: J. D. Heyes
Tags: Greece, Spain, economic collapse

eTrust Pro Certified

Most Viewed Articles
Popular on Facebook
CDC issues flu vaccine apology: this year's vaccine doesn't work!
Tetanus vaccines found spiked with sterilization chemical to carry out race-based genocide against Africans
Biologist explains how marijuana causes tumor cells to commit suicide
Companies begin planting microchips under employees' skin
NJ cops bust teenagers shoveling snow without a permit
Russia throws down the gauntlet: energy supply to Europe cut off; petrodollar abandoned as currency war escalates
McDonald's in global profit free fall as people everywhere increasingly reject chemically-altered toxic fast food
Chemotherapy kills cancer patients faster than no treatment at all
U2's Bono partners with Monsanto to destroy African agriculture with GMOs
FDA targets Dr. Bronner's Magic Soaps for sharing health benefits of coconut oil
Why flu shots are the greatest medical fraud in history
Flu vaccine kills 13 in Italy; death toll rises
600 strains of an aerosolized thought control vaccine already tested on humans; deployed via air, food and water
The 21 curious questions we're never allowed to ask about vaccines
Italian court rules mercury and aluminum in vaccines cause autism: US media continues total blackout of medical truth
CDC admits it has been lying all along about Ebola transmission; "indirect" spread now acknowledged
Whooping cough outbreak at Massachusetts high school affected only vaccinated students
Orthorexia Nervosa - New mental disorder aimed at people who insist on eating a clean diet

Delicious
(NaturalNews) Europe's economies have been on a fiscal collision course for years, what with more people taking from the various socialist systems around the continent than paying into them. But Greece and Spain are probably the closest to the abyss, economists warn, and are liable to plunge off the cliff any day now.

In Athens, where elections on June 17 will decide the country's place in the eurozone and, maybe, its future as a viable nation, the choices are not good. Voters and politicians must decide to accept painful, deep austerity measures aimed at reducing the country's massive debt or dropping Europe's shared currency. But so far the only thing certain about Greece is its paralysis and indecision, both characteristics of which could plunge it into chaos and calamity any day now.

"Evidence of a state tottering on the edge of complete dysfunction is apparent everywhere in Athens," says a report by The Economic Times (ET). "Traffic signals work sporadically; a sign giving the shortened hours of one of the world's great museums, the National Archaeological Museum, is haphazardly taped to the door; police officers in riot gear patrol the perimeters of the universities, where a growing population of anarchists, disaffected young people and drug addicts congregate in communal hopelessness."

Living in hell

Worse, perhaps, is the fact that most Greeks don't have any idea where they are headed as a nation. Nearly half - 48 percent - of all Greeks under the age of 24 are unemployed. Some Greeks are describing life there as "hell." And most Greeks realize that, for the foreseeable future, life in their country will remain that way.

"There is no good solution to the current crisis. Austerity will damage us for years to come, and so will the return of the drachma. Either way it will get much worse before it gets better," one Greek told ET.

Spain, meanwhile, is not in much better shape. By the second weekend in June, International Monetary Fund officials were predicting Madrid would need 40 to 100 billion euros injected into a number of banks just to remain solvent.

As Spain's fiscal crisis worsens, analysts expect the government to ask the eurozone for assistance to help recapitalize its depleted banks, Reuters reported, bringing to four the number of eurozone countries to seek assistance since the continent's debt crisis first began.

As in the case of Greece, Spain's immediate future also looks bleak. In conducting a study on how much capital Spain would need, "the IMF assumed that the Spanish economy would contract by 4.1 percent in 2012 and by 1.6 percent in 2013, unemployment would climb to 26 percent by end 2013 and that real estate values would decline by an additional 24 percent," Reuters said.

Where it all began

How did once-vibrant European economies get in such bad shape economically?

A number of economists believe the problem all started when the 16 European nations all began using the same currency in 2002.

"The shared use of the Euro caused interest rates in Spain and Ireland to plummet while the housing market continued to grow at an astonishing rate," writes consultant and political scientist Hugh Barnes. "The prices of homes increased, and many home buyers borrowed large amounts from banks that they could not afford to return, all of which created considerable instability in the banking system. Financial pundits, government leaders and banks were forced to face the fundamental reality that financial institutions cannot function if the debtors stop paying them."

Europe's debt crisis will only get worse. There's no way to avoid that. But before you worry too much about that continent, consider that U.S. debt is also spiraling out of control, and that our politicians, like those in Europe, seem incapable of stemming the fiscal hemorrhaging.

Sources for this article include:

http://articles.economictimes.indiatimes.com

http://www.reuters.com

http://www.ehow.com/info_8073152_causes-european-debt-crisis.html

Join over four million monthly readers. Your privacy is protected. Unsubscribe at any time.
comments powered by Disqus
Take Action: Support NaturalNews.com by linking back to this article from your website

Permalink to this article:

Embed article link: (copy HTML code below):

Reprinting this article:
Non-commercial use OK, cite NaturalNews.com with clickable link.

Follow Natural News on Facebook, Twitter, Google Plus, and Pinterest

Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

GET SHOW DETAILS
+ a FREE GIFT

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of NaturalNews.com, the internet's No. 1 natural health news site. (Source: Alexa.com)

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.