Sat Mar 23, 2024 11:33 pm by globalturbo
Ethan Huff ~ Panic Cash Withdrawals In Spain Drain Banks; Greece-Style Economic Implosion Now Imminent
Posted on September 25, 2012 by Gillian
NaturalNews | September 24 2012
Spain
appears poised to become the next Greece in the ongoing European Union
(EU) implosion, as Spaniards are withdrawing record amounts of funds
from Spanish banks to avoid a potential insolvency situation. According
to the New York Times (NYT), the equivalent of $94 billion was withdrawn
from Spanish banks in July, an amount that equals seven percent of the
country’s overall economic output.
Though stronger overall compared to Greece in terms of economic
diversity and debt levels, Spain is undeniably on a downward economic
spiral that is sending many of its people and their money to other
countries like England, Germany, and Singapore, where economic
conditions are much more favorable. Just like in Greece, there is a
growing fear among Spaniards that their nation could revert from the
euro to its former currency, pesetas, which would greatly devalue their
personal wealth.
“The macro situation in Spain is getting worse and worse,” said Julio
Vildosola to the NYT. Vildosola, a former senior executive at a large
multinational company, recently moved all his money — and is now in the
process of moving his entire family — to a small village near Cambridge,
England. “There is just too much risk. Spain is going to be next after
Greece, and I just don’t want to end up holding devalued pesetas.”
Spaniards pulling out their cash en masse
Vildosola’s opinion is shared by many
others in Spain who are also moving their funds and families elsewhere
in anticipation of an eventual collapse. Despite all the empty promises
being made by EU officials, including a commitment to inject 100 billion
euros into the Spanish banking system, the Spanish people, including
many from the country’s upper echelons, have lost faith in their
country’s ability to stay afloat in the long term.
“The wealthy people have already taken their money out,” says Spanish
economist Jose Garcia Montalvo about the ongoing capital flight. “Now
it’s the professionals and mid-range people who are moving their money
to Germany and London. The mood is very, very bad.”
During the recent festival of “Diada de Catalunya,” or Day of
Catalonia, which celebrates the end of the siege on Barcelona during the
War of the Spanish Succession, an estimated 1.5 million people took to
the streets to demand that Catalonia, a wealthy region of Spain that
includes the city of Barcelona, secede from the country and form its own
independent state. (http://latino.foxnews.com)
The European Central Bank recently announced that it will buy
short-term bonds from member states that agree to abide by certain rules
and conditions when applying for assistance (http://economictimes.indiatimes.com).
But Spanish Prime Minister Mariano Rajoy has announced his rejection of
these conditions, though he has yet to indicate whether or not his
country will still request a bailout. (http://www.bbc.co.uk/news/business-19553002)
Thanks to: http://shiftfrequency.com
Posted on September 25, 2012 by Gillian
NaturalNews | September 24 2012
appears poised to become the next Greece in the ongoing European Union
(EU) implosion, as Spaniards are withdrawing record amounts of funds
from Spanish banks to avoid a potential insolvency situation. According
to the New York Times (NYT), the equivalent of $94 billion was withdrawn
from Spanish banks in July, an amount that equals seven percent of the
country’s overall economic output.
Though stronger overall compared to Greece in terms of economic
diversity and debt levels, Spain is undeniably on a downward economic
spiral that is sending many of its people and their money to other
countries like England, Germany, and Singapore, where economic
conditions are much more favorable. Just like in Greece, there is a
growing fear among Spaniards that their nation could revert from the
euro to its former currency, pesetas, which would greatly devalue their
personal wealth.
“The macro situation in Spain is getting worse and worse,” said Julio
Vildosola to the NYT. Vildosola, a former senior executive at a large
multinational company, recently moved all his money — and is now in the
process of moving his entire family — to a small village near Cambridge,
England. “There is just too much risk. Spain is going to be next after
Greece, and I just don’t want to end up holding devalued pesetas.”
Spaniards pulling out their cash en masse
Vildosola’s opinion is shared by many
others in Spain who are also moving their funds and families elsewhere
in anticipation of an eventual collapse. Despite all the empty promises
being made by EU officials, including a commitment to inject 100 billion
euros into the Spanish banking system, the Spanish people, including
many from the country’s upper echelons, have lost faith in their
country’s ability to stay afloat in the long term.
“The wealthy people have already taken their money out,” says Spanish
economist Jose Garcia Montalvo about the ongoing capital flight. “Now
it’s the professionals and mid-range people who are moving their money
to Germany and London. The mood is very, very bad.”
During the recent festival of “Diada de Catalunya,” or Day of
Catalonia, which celebrates the end of the siege on Barcelona during the
War of the Spanish Succession, an estimated 1.5 million people took to
the streets to demand that Catalonia, a wealthy region of Spain that
includes the city of Barcelona, secede from the country and form its own
independent state. (http://latino.foxnews.com)
The European Central Bank recently announced that it will buy
short-term bonds from member states that agree to abide by certain rules
and conditions when applying for assistance (http://economictimes.indiatimes.com).
But Spanish Prime Minister Mariano Rajoy has announced his rejection of
these conditions, though he has yet to indicate whether or not his
country will still request a bailout. (http://www.bbc.co.uk/news/business-19553002)
Thanks to: http://shiftfrequency.com
