Money Flies Out of Spain, Regions Pressured !

• Has the Eurozone debt crisis gotten better or worse? Obviously worse! The contagion has spread to Spain and Italy. There is no way they can be bailed out without destroying the entire Eurozone! The Illuminist banksters have engineered this crisis to further their consolidation of power and financially rape the sheeple! Got physical gold yet?
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  Money flies out of Spain, regions pressured! 
  By Sonya Dowsett and Sarah White | Reuters
  MADRID (Reuters) – Spaniards alarmed by the dire state of their banks are squirreling money abroad at the fastest rate since records began, figures showed on Thursday, and the credit ratings of eight regions were cut.
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  Spain is the next country in the firing line of the euro zone’s debt crisis, with spendthrift regions and shaky banks threatening to blow a hole in state finances and pushing funding costs towards levels that signal the need for a bailout.
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  The European Commission gave new help on Wednesday, offering direct aid from a euro zone rescue fund to recapitalize Spanish banks and more time for Madrid to reduce its budget deficit.
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  That helped lower the risk premium investors demand to hold Spanish 10-year debt rather than the German benchmark on Thursday, but it remained close to the euro-era record, at 520 basis points.
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  Bank of Spain data showed a net 66.2 billion euros ($82.0 billion) was sent abroad last month, the most since records began in 1990. The figure compares to a 5.4 billion net entry of funds during the same month one year ago.
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  Spaniards are worried about the health of their banks, hit by their exposure to a 2008 property crash, and have been sending money to deposit accounts in stronger economies of northern Europe. The capital flight data predates the nationalization of Spain’s fourth biggest lender Bankia in May when it became clear the bank could not handle losses from bad real estate investments, compounded by a recession.
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  Spain’s centre-right government has contracted independent auditors to assess the health of its financial system in an effort to restore faith in its banks. Spain must lay out its restructuring plans for Bankia to the European Commission (EC), a spokesman for the EU executive arm said on Thursday. He added that a domestic solution to the country’s bank crisis would be better than a European rescue.
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  The government said on Wednesday it would finance a 23.5 billion euro rescue of the bank through the bank fund, FROB but senior debt bankers said that the syndicated bond market is currently closed for Spanish agencies.
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Debt Crisis: A $46 Trillion Problem Comes Sweeping In!

• The world is overburdened by an insurmountable mountain of debt. But the Illuminist banksters would like you to believe that more debts (bailouts) upon existing debts is the answer. It is nonsensical. You cannot solve a debt problem with more debts. The Illuminists are simply building the debt problem into an even bigger mountain and then finally crashing it. Once, the whole edifice collapses, the Illuminists will buy up the world with money they create out of thin air at dirt cheap prices!
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  Debt crisis: a $46 trillion problem comes sweeping in! 
  By Jeremy Warner, http://www.telegraph.co.uk/ 
  Bad stuff, they say, comes in threes. We’ve already got the banking and the eurozone sovereign debt crises. Next comes the corporate funding crisis.
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  Just as you thought things couldn’t get any worse, credit markets are about to be hit by a veritable tsunami of maturing corporate debt. Standard & Poor’s estimates that companies in Europe, the US and the major Asian economies require a combination of refinancing and new money to fund growth over the next four years of between $43 trillion and $46 trillion. The wall of maturing debt is unprecedented, raising the prospect of further, extreme difficulties in credit markets.
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  With the eurozone debt crisis still at full throttle, the Chinese economy slowing fast and a still tepid US recovery, it’s not clear that the banking system is in any position to deal with this incoming wave of demand.
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  As if the refinancing problem wasn’t already challenging enough, into it all stumbles the European commissioner for internal markets, Michel Barnier, to prove the old saw that there is no mess quite so bad that official intervention won’t make even worse.
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  A traditionalist French socialist by background, Mr Barnier positively revels in his job as the EU’s top financial services regulator. In a recent interview, he said that he liked the term “shareholder spring” because it implied “a regulation spring, a rule making spring”. Yes, indeed, Mr Barnier likes very much rules and regulations. He wants to regulate everything from pay to solvency. The financial crisis has given him a wide open canvass on which to paint.
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  After a crisis of the magnitude we’ve just seen, it’s perfectly right and proper, and certainly very human, to want to take immediate steps to fix the system, so as to ensure that this kind of nonsense can never happen again. There is also something to be said for striking while the iron is hot. Leave things too long, and the political will to act melts away.
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Spain Cries for Help: Is Berlin Listening?

• Spain cries for help: is Berlin listening? 
  By Michael Stott, http://uk.reuters.com/home 
  (Reuters) – Crisis is the watchword in Madrid. Take your pick – liquidity crisis, debt crisis, banking crisis, economic crisis, confidence crisis, investor crisis, jobless crisis. Spain, the ailing euro zone‘s latest problem child, has them all.
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  As the problems pile up, Prime Minister Mariano Rajoy’s five-month-old conservative administration feels like a government under siege. Nervy top officials are reluctant to speak on the record for fear of slipping up. Policymakers contradict one another. Plans keep changing. Financial markets reel amid the uncertainty. The gloom in ministry corridors is palpable.
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  The latest gaffe: after weeks insisting that one of the country’s biggest banks, Bankia, did not need fresh funds, ministers dropped the bombshell last Friday that there was a 23-billion-euro hole in the accounts. They have yet to explain clearly how they will find the money when they are already struggling to finance a spiralling national debt.
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  The effect of the Bankia news on fragile financial markets was devastating. Spanish shares dived to 9-year lows, the euro sank and investors fled Spanish government debt, pushing the yield towards the 7 per cent level at which fellow eurozone members Ireland and Portugal were forced to seek national bailouts from Brussels.
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  To hear the government tell it, outsiders have got it all wrong: Spain has lived beyond its means for too long and is now going through a painful but necessary period of adjustment to shrink its state sector, cut spending and boost competitiveness. All the right things are being done. Rajoy’s government is serious, committed and enjoys a comfortable parliamentary majority.
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  Officials say foreigners don’t understand that Spain has boosted its exports more than any other European country in the past three years, that it has reformed its labour markets, cut its costs of production and come clean about the problems in its banks, which lent too enthusiastically to finance a huge property bubble that has now burst.
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  Now, ministers say, Madrid just needs time and some help and support from its European partners to get through the most acute phase of the crisis and give the reforms time to work.
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  RUNNING OUT OF TIME AND IDEAS
  Unfortunately, time is running out.
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GotGold Report: COT is Very Bullish for Gold & Silver Prices!