The Spanish government has tried to inject public debt instead of cash in Bankia. This operation is a variant of REPO operations made by the ECB. On the one hand, this prevented the soaring costs of financing the debt markets. On the other, opened the door to the ECB liquidity injection in Bankia by repurchasing these debt or by use as securities bounds. [...] While the game is staged tension between Spain and the ECB needed to save the political profiles of each other, the Commission has already taken the field elsewhere. Since the beginning of the Spanish crisis, the mandate of ECB has been disciplinary: not doing anything for relief debt peaks until no counterparts were deleted . [translated form the article: http://www.diagonalperiodico.net/La-intervencion-de-Espana-ya-esta.html]
Brussels has heard the call of the markets about the banking system and it seems that will give what they demand. The European Commission is studying the direct recapitalization of banks through the Permanent Rescue Fund, and a move towards unification of the banking system, as reported by the agency on Wednesday in the heat of the harsh criticism about the measures adopted to the date and the need for more and more stock shares to reduce the deficit. [Translated form the article: http://www.elconfidencial.com/economia/2012/05/30/la-ce-matiza-la-inyeccion-del-fondo-de-rescate-no-es-una-opcion-para-la-banca-de-espana-99006/]In few words, they don't know how, but Spain can be taken for rescued.
Sorry for the contempt, they know.
The states have proved unable to manage its debt
Spain has proved unable to manage its debt, taking austerity measures to plug a hole of € 8 billion when the real is more than 50 billion €. Politicians, government, inspectors and all kind of managers have been genuine inept. Not so the banks, who have made a killing spoil feast in crisis. Old School.
Europe has proved incapable of managing the state debt
The ECB says does not trust in the spanish state is determinated to inject money directly to banks. As it is shown and proved that banks lie, given the hole, to other banks, the government of Spain, Europe and markets in general; unhinged buyers who do not know what to expect. Llied to perform the operation.
The ECB already know the diagnosis and course of the disease, suffered with Greece: Bankruptcy. In this illness the hole is always greater than what they say they have estimated. It is non-refillable for several reasons:
- Continue existing housing stock, so the value of bank assets has not touched the ground.
- The relocation of companies makes products incompetent and its imported more than it is exported.
- The "capital flight" drains the money to it origin: Germany puts the bailout money> it gives banks> these deposit them in a strong economy contry, curiously Germany is favorite.
All this they knew that would happen in Greece, and still was rescued. Initially Mario Draghi, as Sanchs & Poors Advisor, was contrated to audit the country, to launch sanitation and start clipping. Mario ended up asking for a ransom of € 150 billion. The money vanished with the known capital flight and returned, as we report, Germany, Holland and some tax havens. For now its seen who is winning.
Germany is uneable to invest in operated states
Germany wears, unable to sell their products or collect debts on time. Still does not stop the locomotive.
To Germany economy at first does not interested in problems in the eurozone. It makes harms to Germany in short and medium term, but benefit in long times, possibiling to get its "vital space" at a bargain price. Could seems to exist a predetermined plan to take over the eurozone, literally. But not now: the intervened countries are in a state of neoliberal exarcebación preventing any kind of investment in their companies. Although a german manager should place in one of this compaies the Spanish oligarchies would sink their efforts, to stealing even its underwear.
The Germans oligarchs are able to orchestrate a sack of continental proportions, but judging by the lurches which has its politics and economy, and expoleados by the scourge of capitalist austerity as if it were a PIIG, this pictures is, by now, unlikely.
Europe forges another bubble to benefit investment groups
The European Institutions do not avoid, deliberately, the problems in the eurozone. Constantly accrue the problem. Gives gasoline to the arsonist, distributes money to usury like confetti, to countries that are not going to be able to return, refinaceing constantly, which is the same as was done with toxic loans and subprimes. Require a containment that crumble countries, preventing its development.
In short, they will creat another bubble in Spain. This will explode throughout europe, which is who make the money, including Germany.
As seen the European authorities and international institutions, beyond the range of governments and states, far from ending with the economic problems try to develop them. ECB, IMF, S&P stands behind whith hiden names. Names with flesh and bone one day pay.
And the solution?
For a state there are thousands of solutions, but does not like any. Featuring:
- Create productive industry with direct investment. It is required consent of Germany, who hopes not to lose exclusivity.
- Deferring repayment of loans. Impossible not to raise the interest without choke and causing capital flight that pull the money.
- Restructuring of public administration. It would mean have to fight against regional political oligarchies: Impossible.
- Increase fiscal control over businesses and companies: is preferred tax amnesty.
For a individual. As this is pure science fiction, we are confident that the solution is not the State or Europe. Under present conditions demand every man hepl himself. And that means that each of us must try to rescue himself without waiting for a preserver lead life. We in tarcoteca are anarchists, we organize. Now more than ever we look for alternatives outside the capitalist system, such as cooperatives. The truth is that there are not many.
After so many years the state will fall prey to its own barbarity.
Death to the state and long live anarchy!
For more information in spanish: http://www.cotizalia.com/en-exclusiva/2012/05/31/los-hedge-pagan-intereses-de-hasta-el-10-para-especular-contra-los-bancos-1217/