Like a Salvador Dali painting, the financial world becomes more and more surreal by the day. Everything that has happened since 2008 would have led to Depression of unprecedented proportions at the very least, and more likely a complete Global Economic Collapse at any other time in history. It seems that the laws of Economics have been suspended and no matter how bad things get, the world goes along its merry way, happily oblivious of the certain consequences of the actions of the powers that be that are greatly exacerbating the problem rather than resolving it. It is the equivalent of a person jumping off the Empire State building but seeming remaining suspended forever in mid-air rather than splatting all over the pavement like the coyote in a Roadrunner cartoon. But just like the laws of gravity cannot be suspended, neither can the laws of Economics; this game will have an end, a terrible end for the whole world, the only question is when will the end arrive? Just like a person jumping off the Empire State building with a blindfold would not know how close he is to the pavement, a blindfolded world does not know how soon it will crash and burn; all we can surmise is that it must happen, sooner now than later.
Wasn't it only last month that we were being told that Spain (and Italy) would not require a bailout? All of a sudden, we are now told that Spain is in a crisis of huge proportions! Don't be fooled: the crisis of huge proportions not only applies to Spain but to the whole world._______________________________________________________________
(Reuters) - Spain's sickly economy faces a "crisis of huge proportions", a minister said on Friday, as unemployment hit its highest level in almost two decades and Standard and Poor's downgraded the government's debt by two notches.
Unemployment shot up to 24 percent in the first quarter, one of the worst jobless figures in the developed world. Retail sales slumped for the twenty-first consecutive month as a recession cuts into consumer spending.
"The figures are terrible for everyone and terrible for the government ... Spain is in a crisis of huge proportions," Foreign Minister Jose Manuel Garcia-Margallo said in a radio interview.