Spain Bailout Big Lie, How Can a Non-Existent Entity Bailout Spain Or Anyone Else?
Politics / Eurozone Debt Crisis Jun 14, 2012 - 12:44 AM GMTSpain’s Bailout is one big lie.
I know, I know… Spain is “saved” thanks to a €100 billion bailout.
But no one is asking just where this money will come from?
The IMF isn’t involved. Nor is the ECB.
The EFSF, which can’t even raise €10 billion without having to step in to insure it doesn’t have a failed bond auction isn’t a possibility (Germany doesn’t want it).
That leaves just the European Stability Mechanism (ESM)… except for the little known fact that only FOUR of the necessary 17 EU members have ratified legislation to even CREATE the ESM.
That’s right… the ESM doesn’t even EXIST yet.
On top of this, Spain and Italy make up 30% of the ESM’s supposed “funding.” That’s right, nearly one third of the mega-bailout fund’s capital will come from countries that are bankrupt themselves and are either already requesting bailouts (Spain) or soon will be (Italy).
Finally, and this is the REAL problem with the ESM… Germany hasn’t OK’d it yet.
In fact, German opposition leaders have stated point blank that hoping for Germany to ratify the ESM before its due date (July 1) is “completely unrealistic.”
So… Spain is going to be bailed out by a non-existent entity whose leading member likely won’t even have ratified its formation… before July 1.
Sure things could play out differently. But wasn’t Spain literally on the verge of a systemic Crisis? And we’re talking about weeks… possibly months before it gets a single Euro in bailout funds (assuming the funds even show up at all).
So I ask again… WHERE is the money going to come from? It doesn’t exist. The whole Bailout is one big lie. The funds simply are not there.
Even if they were, €100 billion is NOTHING compared to the REAL capital needs of Spanish banks. Heck, Bankia alone needs €24 billion… and that’s just ONE BANK out of Spain’s €3 trillion banking system.
Folks, if you think we’re out of the storm yet in Europe, you’re in for a very VERY rude surprise. It’s quite likely the EU won’t even exist in its current form before the summer ends.
The simple reason… THERE AREN’T ANY FUNDS LEFT TO PROP UP the €46 TRILLION toxic sewer that is the EU banking system. End of story.
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