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Generational Dynamics Web Log for 28-Apr-2012
28-Apr-12 World View -- With 25% unemployment, Spain leads Europe in vicious downward spiral

Web Log - April, 2012

28-Apr-12 World View -- With 25% unemployment, Spain leads Europe in vicious downward spiral

Switzerland considers paying illegal aliens to leave Switzerland

This morning's key headlines from GenerationalDynamics.com.

Spain's economy keeps spiraling downward as unemployment rises to 25%
Switzerland considers paying illegal aliens to leave Switzerland
Britain's economy moves into a 'double-dip' recession
Germany's Angela Merkel angrily repudiates François Hollande's campaign promises
Greece's elections driven by anti-austerity, anti-immigrant fervor
Romania's government collapses, Czech government survives, in anti-austerity anger

Spain's economy keeps spiraling downward as unemployment rises to 25%

Spain's unemployment has risen from 8% in 2007 to 22.85% at the beginning of 2012. Friday's announcement was a further spike to 24.4% (Al-Jazeera)

Spain's unemployment has risen from 8% in 2007 to 22.85% at the beginning of 2012. Friday's announcement was a further spike to 24.4% (Al-Jazeera)

It wasn't exactly a surprise, but it was still shocking that Spain announced on Friday that unemployment had risen to 24.4% overall, with youth unemployment at 50%. On the same day, Standard & Poors ratings service lowered Spain's credit rating from A to BBB+, meaning that Spain will now have to pay more to borrow money. Analysts are saying that Spain's economy is spiraling downward out of control, and many politicians are blaming it on the "austerity" programs which they and other countries have been implementing in order to reduce their debt levels. But instead of reducing their debt levels, they're in a vicious spiral causing more debt from unemployment and higher borrowing costs. And all this has happened after the European Central Bank (ECB) has completed its LTRO program, where it "printed" €1.1 trillion since December and poured it into European banks particularly Spanish banks. As I've written many times, this is a problem with no solution except to face the greatest financial crisis in world history. As the bailouts get huger and huger, the problem is only being made worse, and the day of reckoning will be much harsher. Euskal Irrati Telebista (EITB, Basque Radio-television)

Switzerland considers paying illegal aliens to leave Switzerland

Under a controversial new proposal by the Swiss government, Switzerland would give $500 to $3000 to illegal aliens and asylum seekers to go back to their home countries, usually in northern Africa. The idea is being presented as a money-saving proposal, since it costs $150-350 per day for administrative detention, and $20,000-25,000 per person for "involuntary" deportation. According to one official, "Switzerland can save a lot of money and asylum seekers can get a new chance back in their home country and avoid being deported by force. We know that people who come here get into debt as they have to ask for help from their family and friends. Switzerland needs to give them some money to encourage them to make the step back home." Swiss Info

Britain's economy moves into a 'double-dip' recession

UK has a double-dip recession (WSJ)

UK has a double-dip recession (WSJ)

Britain unexpectedly fell back into recession in the first quarter of 2012, when gross domestic produce shrank 0.2%, after contracting 0.3% in the previous quarter. Since Britain was still trying to recover from a 2008-2009 recession, these two new quarters of negative growth officially mean that the UK is in a double-dip recession. Unemployment is at 8.3%, at the highest level since the mid 1990s. AP

Germany's Angela Merkel angrily repudiates François Hollande's campaign promises

It seems increasingly likely that Socialist Party candidate François Hollande will defeat Nicolas Sarkozy on May 6 to become the new president of France, and it appears that relations between Germany and France are going to become extremely rocky. European leaders, including German Chancellor Angela Merkel and Sarkozy signed a "fiscal austerity" pact in December, requiring states that receive bailout money to adhere to strict austerity and reform measures. 25 of the 27 EU member states signed the agreement with the UK and Czech Republic declining to do so. But Hollande has indicated that if he wins the French election, then he would demand changes to the agreement to reduce or eliminate the austerity and reform requirements. On Thursday, Merkel angrily indicated that the pact "cannot be renegotiated." Hollande replied:

"It is not Germany that will decide for the entirety of Europe. [If I win the election,] I will tell [Merkel] that the French people had made a decision that envisages a renegotiation of the pact."

Merkel has openly supported Sarkozy's reelection campaign, though there have been some recent signs that Merkel and Hollande are beginning to soften their rhetoric. Spiegel

Greece's elections driven by anti-austerity, anti-immigrant fervor

Not just France, but also Greece is holding elections on May 6. Greece has had two huge bailouts so far, and is going to require a third. A caretaker government has been in charge since last year, but its approval rating has been falling. Greece is ahead of Spain in seeing its economy spiral downwards, and people are blaming it on austerity programs required by the Germans, and by illegal immigrants. Fringe parties are gaining popularity. The neo-Nazi group Golden Dawn is rising and stands to win seats in parliament, driven by its public appearances urging Greeks to empty the country of the 400,000 illegal immigrants they blame for crime, prostitution and other ills. Southeast Europe Times

Romania's government collapses, Czech government survives, in anti-austerity anger

A wave of public anger against plans for spending cuts and tax hikes caused Romania's center-right government to lose a confidence vote on Friday. The left-leaning opposition Social Liberal Union (USL) party will now try to form a new government. If USL rolls back some of the government's austerity measures, like wage cuts or sales tax increases, then the International Monetary Fund (IMF) may pull back on its plans for future bailout payments. The government in the neighboring Czech Republic barely survived an anti-austerity confidence vote on Friday. Some 90,000 people held protests last Saturday in the biggest demonstrations in the Czech Republic since the fall of communism in 1989, and union leaders said they planned further protests, including strikes before the end of June. Reuters

(Comments: For reader comments, questions and discussion, see the 28-Apr-12 World View -- With 25% unemployment, Spain leads Europe in vicious downward spiral thread of the Generational Dynamics forum. Comments may be posted anonymously.) (28-Apr-2012) Permanent Link
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Generational Dynamics Web Log for 28-Apr-2012 28-Apr-12 World View -- With 25% unemployment, Spain leads Europe in vicious downward spiral

Spain's economy keeps spiraling downward as unemployment rises to 25%

Switzerland considers paying illegal aliens to leave Switzerland

Britain's economy moves into a 'double-dip' recession

Germany's Angela Merkel angrily repudiates François Hollande's campaign promises

Greece's elections driven by anti-austerity, anti-immigrant fervor

Romania's government collapses, Czech government survives, in anti-austerity anger

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Generational Dynamics Web Log for 28-Apr-2012
28-Apr-12 World View -- With 25% unemployment, Spain leads Europe in vicious downward spiral