By the Daily Bell
S&P cuts Spain’s credit rating by two notches to BBB+ … Standard & Poor’s cut Spain’s sovereign debt rating Thursday by two notches, warning that the government’s budget situation is worsening and that is likely to have to prop up its banks. S&P cut the country’s rating to BBB-plus and added a negative outlook, saying it expected the Spanish economy to shrink both this year and next, raising more challenges for the government. Esther Barranco, a spokeswoman for the Economy Ministry, told Reuters: “They haven’t taken into consideration the reforms put forward by the Spanish government, which will have a strong impact on Spain’s economic situation.” S&P also said that eurozone-wide polices were failing to boost confidence and stabilize capital flows, and that the region needed to find ways to directly support banks so that governments were not forced to take on those burdens themselves.” – UK Telegraph
full article at source: http://www.thedailybell.com/3838/Spains-Collapse-is-No-Little-Thing
The dictates from Berlin regarding the Austerity measures are causing enormous hardship on people and it is also strangling any attempt by the same people to conduct business. The cost base is out of whack with local economies .We are forced to use an overpriced currency. Anywhere else in the world if you take on austerity you also devalue your currency .This has the effect of bringing down the cost of creating employment for foreign companies and with this advantage in time you offset the effects of the austerity by supplying new employment opportunities and thus create demand in the domestic economy .We have now gone through four years of severe austerity in Ireland and things are only getting worse. Austerity alone is not working !
There is no demand in the local economy, fear has taken hold and people are holding on to every penny they have for fear of getting their P45 someday. There are no realistic job opportunities for people in their 40, and without any massive investment by the government in up-skilling or re-education, things are looking bleak to say the least .We need massive investment in people and not in Banks. The faceless moneymen are now controlling the corridors of power in Brussels and democracy is losing ground.
In Ireland we are under the power of puppets that have no say in the running of our country. Even the latest text in the referendum we are about to vote on has had no Irish political input it was dictated from the ministry of finance in Berlin. The sham of going to the polls and been told we are an independent nation is an insult to the dead of 1916 who fought for an independent republic. The spineless politicians in government are nothing more than collaborators for the new masters of Europe in Berlin,
They deserve to be hounded out of office and jailed for their treachery!
- S&P slashes Spain’s debt rating (news.com.au)
- Mish/ Mike Shedlock - Spain Long-Term Debt Lowered To BBB+ From A, With Negative Outlook; 100% Certain Conditons In Spain Worsen – 27 April 2012 (lucas2012infos.wordpress.com)
- S&P Cuts Spain’s Credit Rating to BBB+ (hispanicallyspeakingnews.com)
- Spain faces crisis ‘of huge proportions’ over unemployment and banks (guardian.co.uk)
- Europe’s governments turning against austerity measures (pri.org)
- Spain sees its rating cut, but markets stay firm (rt.com)
- Spain’s recession ‘likely to deepen’ (itv.com)