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but isn't this a prelude to buying up spanish assets with the debt, when repaying becomes difficult, farmland, ports?

thin edge?

~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~

by melo (melometa4(at)gmail.com) on Mon Jul 19th, 2010 at 12:35:35 PM EST
[ Parent ]
That's why Spain should use this temporary respite from Market irrationality, German pig-headedness and EU neoliberalism to make s serious push to shift to a "new economic model". We can do two things: allow China to fund our transition from fossil-fuel dependence to renewable energy independence, or use their money to buy iPods "designed in California and made in China".

The first path leads to a potentially sustainable economic future with balanced trade, and the second leads to financial ruin maybe with an asset bubble in between.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Mon Jul 19th, 2010 at 12:39:56 PM EST
[ Parent ]
does Zapatero have enough political support on his government to pull off such a myth-busting move?

~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
by melo (melometa4(at)gmail.com) on Mon Jul 19th, 2010 at 04:08:14 PM EST
[ Parent ]
He's been talking about it for over a year, but he lacks the fiscal wherewithal (thanks, Brussels austerity!) and the economic advisors (even if they talk about sustainability and the new economic model they are neoliberals so they expect the market to do it for them). He knows what sounds good but I'm not convinced he knows how to do it.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Migeru (migeru at eurotrib dot com) on Mon Jul 19th, 2010 at 04:23:36 PM EST
[ Parent ]
But you were talking about political support and, no, his political capital has evaporated because of the debt crisis. He's also lost the support of the centre-right nationalists for other reasons.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Migeru (migeru at eurotrib dot com) on Mon Jul 19th, 2010 at 04:25:52 PM EST
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