Spain

Greece, Spain near chaos and economic collapse

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

eTrust Pro Certified

Delicious Pin It
(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

Get breaking news alerts on GMOs, fluoride, superfoods, natural cures and more...
Join over four million monthly readers. Email privacy 100% protected. Unsubscribe at any time.


Have comments on this article? Post them here:

comments powered by Disqus

Take Action: Support NaturalNews.com

Email this article to a friend

Permalink to this article:

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

Embed article link: (copy HTML code below):
Most Popular
Today | Week | Month | Year

See all Top Headlines...



GET SHOW DETAILS
+ a FREE GIFT

Now Available at ShopNaturalNews.com

O3 Essentials OraJuvenate™
A powerful, cleansing dental cream for maximum oral/dental health.
New Cancer Solutions
Over 3 hours of content covering today’s best cancer tests, how to kill cancer cells and the best diets and exercise routines.
Freeze-Dried 100% Organic Whole Corn
Our freeze-drying method preserves taste, texture and nutrients better than any other food preservation method ever invented.
Fenix TK35 Flashlight
Tough, waterproof, extremely bright and it’s touted to throw an 800+ lumen beam more than 1,000 feet into the night.
Inca Treasure Smoothie Pack
This pack of our four most popular superfoods from South America is the perfect combo pack for smoothie lovers.
Pink Himalayan Salt
This salt delivers significant levels of magnesium, zinc and selenium, with trace levels of dozens of other elements.
Pinhole Glasses - Aviator Style
Pinhole glasses are becoming famous for helping people improve their vision without the risks of laser surgery.
Oxy-Rich Facial Serum
O3 Essentials Jojoba Oxy-Rich Facial Serum is cellular nourishment for your skin. Helps smooth fine lines while enhancing tissue elasticity.
Freeze-Dried 100% Blackberry Halves
Our freeze-dried blackberry halves are grown in Serbia under strict organic standards.

Also on NaturalNews:

Health Ranger Videos
Activist music
CounterThink Cartoons
Food documentaries
FREE Special Reports
Podcasts
Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

Most Popular Stories

Flu shot kills 19-year-old, but vaccine industry still has total immunity against lawsuits
Here's a nutty fact: Eating more tree nuts lowers the risk of all-cause death by up to 20 percent
Six important facts you're not being told about lost Malaysia Airlines Flight 370
Malaysia Airlines Flight 370 now clearly a government cover-up: All evidence contradicts official story
10 other companies that use the same Subway yoga mat chemical in their buns
BLM fracking racket exposed! Armed siege and cattle theft from Bundy ranch really about fracking leases
High-dose vitamin C injections shown to annihilate cancer
U.S. treating meat with ammonia, bleach and antibiotics to kill the '24-hour sickness'
USDA to allow U.S. to be overrun with contaminated chicken from China
Vaccine fraud exposed: Measles and mumps making a huge comeback because vaccines are designed to fail, say Merck virologists
Battle for humanity nearly lost: global food supply deliberately engineered to end life, not nourish it
Diet soda, aspartame linked to premature deaths in women

25 Amazing Facts About Food

This FREE downloadable report unveils a collection of astonishing and little-known facts about the food we eat very day. Click here to read it now...

 

Resveratrol and its Effects on Human Health and Longevity - Myth or Miracle.

Unlock the secrets of cellular health with the "miracle" nutrient Resveratrol Click here to read it now...

 

Nutrition Can Save America

FREE online report shows how we can save America through a nutrition health care revolution. "Eating healthy is patriotic!" Click here to read it now...

The Healing Power of Sunlight and Vitamin D

In this exclusive interview, Dr. Michael Holick reveals fascinating facts on how vitamin D is created and used in the human body to ward off chronic diseases like cancer, osteoporosis, mental disorders and more. Click here to read it now...

Vaccines: Get the Full Story

The International Medical Council on Vaccination has released, exclusively through NaturalNews.com, a groundbreaking document containing the signatures of physicians, brain surgeons and professors, all of which have signed on to a document stating that vaccines pose a significant risk of harm to the health of children. Click here to read it now...

Health Ranger Storable Organics

GMO-free, chemical-free foods and superfoods for long-term storage and preparedness. See selection at www.StorableOrganics.com



Recommended Resources On:

Natural News trends
Health Ranger news
Natural News GMOs
Mike Adams tracker
Natural News photos
Natural News Global
Natural News in focus
Natural News connect
Natural News shocking stories
Natural News radar
GMOs
Quackwatch
Vaccines
Health freedom
Dr. Paul Offit

This site is part of the Natural News Network © 2014 All Rights Reserved. Privacy | Terms All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing International, LTD. is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. Truth Publishing assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published here. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

eTrust Pro Certified Android app on Google Play

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.