Telegraph: Reports on constant rumours that Spain is seeking a 208 billion pound bailout from the EU and the IMF. In the real world of Sovereign Debt its not what is real but what is thought that counts, if the Money Markets think that Spain will default they will charge more to secure the debt of Spain. At the end of the day the EU and the IMF has to ask do they have a Titanic on their hands, has the water reached E Deck, and the Ship of state will go down, if Spain cant pay her debts then she is broke, the best cure is to reboot the system in Spain, in other words Spain should default, it will mean harsh cuts, the State will have to be limited, the EU countries will have to accept the fact that the good days of the welfare state are over, the State has to be limited, it cant be the major employer within a country, that leads to Cuba or the old USSR. Spain is the test case, how much money is to much, if it is throwing money down the toilet then Spain should be allowed to go to the wall. Life is not Fair as JFK once said, it about time the EU got that basic fact.
No comments:
Post a Comment