Archive for the ‘Spain’ Category

EURO DREAM THREATENS TO BECOME NIGHTMARE

Sunday, August 7th, 2011

IrishTimes.com

DAN O’BRIEN

Sat, Aug 06, 2011

ANALYSIS: LAST WEEKEND the world’s attention was on Washington DC as America’s politicians peered into the abyss of sovereign default. On Sunday they stepped back. This weekend attention is on Rome and Madrid. Politicians in those two capitals are sliding towards the same abyss.

But there is a big difference between the US and the Mediterranean countries. In America, that country’s leaders walked voluntarily to the edge of the chasm for political reasons. They were not beaten to that point by the bond market.

Political leaders in Italy and Spain are in an altogether more difficult position. They are being propelled towards the precipice because confidence in their economies is draining away. They are clutching desperately for something to halt the slide. But it appears ever less likely that they can save themselves.

With each passing week it seems increasingly clear that Europe is coming to a fork in the road: one route leads to deeper integration, with very considerable political implications; the other leads down into the dark valley of disorderly disintegration. The decision on which way to go will be among the most important collective choices taken by Europeans in the post-second World War era. (more…)

Posted in Banking, Bankruptcy, Big Government, Economy, EU ( European Union), Europe, Financial Meltdown, History, Socialism, Spain, Spending | No Comments »

GLOBAL SELLOFF – AUGUST 4, 2011

Friday, August 5th, 2011

AUGUST 5, 2011

Stocks Nose-Dive Amid Global

Fears

Weak Outlook, Government Debt Worries Drive Dow’s Biggest Point Drop Since ’08

By TOM LAURICELLA

Stocks spiraled downward Thursday as investors buckled under the strain of the global economic slowdown and the failure of policy makers to stabilize financial markets.

The selling began in Europe and continued in the U.S., where stocks plunged from the opening bell. The Dow Jones Industrial Average posted its worst point drop since the financial crisis in December 2008, falling 512.76 points, or 4.31%, to 11383.68. Oil and other commodities were also hammered. Even gold was a safe haven no more as prices fell. Asian markets slid on Friday morning, with benchmark indexes in Tokyo, Australia, South Korea and Hong Kong all falling more than 3% by midday.

Stocks plunged, driving the Dow Jones Industrial Average down more than 500 points, as investors worried about the global economy and Europe’s debt crisis. Paul Vigna has details.

(more…)

Posted in Asia, Banking, Big Business, Big Government, Economy, England, EU ( European Union), Europe, Federal Reserve, Financial Meltdown, Japan, Obama Administraiton and Policy, Socialism, Spain, Spending | No Comments »

EUROPEAN COUNTRIES – TAX AND SPEND

Tuesday, July 26th, 2011

Neil Reynolds

With government spending, virtue hath its own rewards

NEIL REYNOLDS | Columnist profile | E-mail

From Monday’s Globe and Mail

Published Monday, Jul. 25, 2011 2:00AM EDT

In 1900, the governments of the world’s most advanced economies taxed and spent, on average, 10 per cent of respective GDP each year. By 2000, they taxed and spent 33 per cent – France alone taxed and spent more than 50 per cent.

In its most recent analysis of government spending, the Paris-based Organization for Economic Co-operation and Development says its 34 member countries now spend, on average, 44.6 per cent of GDP – and that 10 of them spend more than 50 per cent.

In a similar analysis of a larger block of countries, the Lausanne-based IMD Business School’s World Competitiveness Report says the number of European governments that spend more than 50 per cent of GDP has risen to 12. It puts average government spending in the world’s 58 most developed countries at 47 per cent of GDP and says the 23 biggest state spenders are all European countries. From this perspective, the very concept of limited government – from which many of our blessings flow – looks quaintly anachronistic.

Here are the WCR’s top 10 state spenders: (1) Ireland, 66.1 per cent of GDP; (2) Denmark, 58.9 per cent; (3) Finland, 56.3 per cent; (4) France, 56.2 per cent; (5) Sweden, 54.5 per cent; (6) Belgium, 53.9 per cent; (7) Austria, 52.9 per cent; (8) Italy, 51.4 per cent; (9) Netherlands, 51.2 per cent; (10) Britain, 51.0 per cent.

Europe’s increase in public-sector spending, of course, can’t be sustained. Most top-spender countries will be compelled to cut back. OECD Secretary-General Angel Gurria says bluntly: “They have no choice.” If they continue to dispense two-thirds of their respective economies, chances are they’ll live with near-zero economic growth.

If they live with near-zero growth, they’ll need to commandeer more GDP. In this spiral, they’ll never have enough GDP, never enough growth. (more…)

Posted in Banking, Bankruptcy, Big Government, Economy, England, EU ( European Union), Europe, Liberalism, Populism, Progressive Movement, Socialism, Spain, Spending, Taxation, Taxes | No Comments »