Archive for May 4th, 2012

As Goes Spain, So Goes Europe and Maybe the U.S. Too?

posted by Ida B. Wells IV @ 9:23 AM
May 4, 2012

   Observers express horror at Spain’s economic decline and what it will mean for the European Union (EU).  Economists have been warning about this for years, but apparently governments didn’t listen.  Now a major economy, Spain, is quickly unraveling, and this bodes ill for all of Europe and for the world economy.

After Germany, France and Italy, Spain is the fourth largest economy in the EU, and its unemployment rate of 24.4%, is the highest in Europe.  Chris Isidore writes for, “Spain has fallen into its second recession since 2009 as its economy shrank for the second consecutive quarter, according to a government report Monday.”  And S&P downgraded Spain’s credit.

Now Spain joins Greece, Italy, Ireland, Portugal, Belgium, the Netherlands, Cyprus and Solvenia as officially in recession.  Further, Isidore says:  “There are worries that a European recession could drag down economic growth in the United States as well as in emerging markets that export to Europe, causing a so-called hard landing in countries such as China.”

Because Spain is in such bad shape, many of its unemployed citizens are trekking to countries like Norway to look for  work.  But instead of finding work, they face language barriers, poverty, hunger, freezing weather they are not use to, and an unwelcoming nation.  So they flood charity houses for shelter and food.

Not a member of the European Union, and favored with a very good economy, Norway’s government depends on charitable organizations for indigents. quotes Norway journalist, Astrid Dalehaug Norheim “I have never seen such a distressing situation in Norway.  Many of the euro refugees live in poverty in Bergen [Spain].”

Writing for Time Magazine, Michael Schuman warns:  “How bad will the pain in Spain get? Concerns are escalating that Spain will ultimately need a bailout like Greece, Ireland and Portugal.  With emerging markets slowing down, Europe in the toilet, the U.S. recovery uncertain and energy prices high, a Spanish meltdown is exactly what the global economy doesn’t need right now.”

He also quotes Megan Greene from Roubini Global Economics:  “The fact that we’re even talking about a bailout for Spain shows how badly the economy has been mismanaged by the euro zone.”

Our sister blog,, writes about the awful conditions in Greece, and the similarities between the harsh economic times in Europe and that of Hitler’s time.  Everyone on our teams see these times as indicators of the soon to come World War III, and that it is also time for people to get closer to God.  As Bible prophecies promise:  “. . . there shall be signs . . upon the earth in the distress of nations, with perplexity . .  (Luke 21: 25).”

Did you like this? Share it:

add comment | Comments (0)...