Tue Feb 9th, 2010 at 12:18:08 PM EST
Yesterday, the FT picked up comments by the Spanish development minister, Jose Blanco.
Blanco denounces plot against Spain and the euro
While the economic vice, Elena Salgado, has traveled to London today to appease the spirits of investors, Development Minister, Jose Blanco, accused the "financial speculators" of orchestrating a plot against the euro and the Spanish market. "Nothing is happening in the world, including foreign newspaper publishers, is casual or innocent," said Blanco. The deputy general secretary of the PSOE denounced an "attack against the euro and the existence of" somewhat murky maneuvers "to avoid scrutiny of financial markets.
"Everything serves a purpose. The apocalyptic comments on the economic situation of Spain do not benefit our country. There are an attack on the euro and should be given an answer," Blanco said.
Today, famed economist Joseph Stiglitz backed up Blanco's comments. (translation mine)
In a LSE Conference yesterday, and in various interviews with British media, Joseph Stigliiz has accused speculators of trying to provoke the collapse of Greece and other eurozone countries, like Portugal and Spain.
Stiglitz's words arrive after Jose Blanco, Spanish minister of Development, accused speculators of causing the rise in the cost of Spanish debt in the markets.
"Europe should demonstrate soldarity with the countries being attacked," said Stiglitiz in the talk at LSE.
"Speculators always look for the weakest link. What's happening is the same as in Hon Kong in 1997-1998," according to Stiglitz, who received the 2001 Nobel Prize for Economics. "What Hong Kong did then was raise interest rates and intervene in the market. Europe should do the same and burn the speculators," the economist said to Sky News.
This should be fun to watch.