Storm looming in eurozone as Spain economy falters
2012 07 27

From: PressTV.ir



Spain’s worsening economic crisis and fears that the cash-strapped country might need a bailout that the eurozone can barely afford have caused a violent economic storm in European financial markets.


Fears soared high after the interest rate on Spain’s debt bonds climbed to a record high of 7.39 on Monday causing the euro to take a nosedive versus the US dollar and China’s Yuan, a recent report by Radio France Internationale (RFI) said.

While every euro was dealt for USD 1.20, most financial and economic experts in Europe expect further fall in euro-dollar parity during the coming weeks.

Meanwhile, on Monday Moody’s Investors Service changed the outlook for the ratings of Germany, Luxembourg, and the Netherlands to negative from stable, citing the uncertainty about the eurozone’s ongoing debt crisis. If fears over the eurozone financial crisis continue to rise over the next months, Germany’s AAA-ratings as Europe’s number one economy will be lowered.

The recent development comes as financial markets believe Spain’s economic woes go far beyond the country’s ailing banks that have been grappling with major economic problems.



Global investors say the single currency area’s economic situation will remain critical considering the amount of the Spanish government’s debt, which demands capabilities beyond the current European mechanisms for assisting the eurozone member states, Greece’s worsening economic crisis and its possible exit from the 17-nation bloc, and also Italy’s falling economy. As a result, many analyst wonder whether Spain can be still considered a financially creditable state.

The bitter fact to admit is that Spain is experiencing a seriously critical economic situation with all its macroeconomic indicators having crossed the red line. Moreover, the country’s economic growth has been negative during the past nine months.


[...]


Read the full article at: presstv.ir







Related Articles
A new stage in the euro crisis
The eurozone’s religious faultline
Government by the Banks, for the Banks: The ESM Coup D’Etat in Europe
The Gang of Four: Presidents propose power of eurozone authorities over national governments


Latest News from our Front Page

The Aeon of Horus is Ending and the Elites are Nervous as their Icons are Dying
2014 04 18
I predict there is going to be a huge resurgence of interest in European indigenous spiritual traditions from Norse to Celtic/Gaelic to Slavic and so on. Millions of Europeans are going to realise that we are the victims of Christianity and New Age garbage. Their bastardised Kabbalah, the psychic force used by Crowley and the elites to cement his Aeon ...
Easter - Christian or Pagan?
2014 04 18
From: truthbeknown.com Contrary to popular belief, Easter does not represent the "historical" crucifixion and resurrection of Jesus Christ. In reality, the gospel tale reflects the annual "crossification" of the sun through the vernal equinox (Spring), at which time the sun is "resurrected," as the day begins to become longer than the night. Rather than being a "Christian" holiday, Easter celebrations date back ...
Man-Made Blood Might Be Used in Transfusions by 2016
2014 04 18
Researchers in the U.K. have created the first man-made red blood cells of high enough quality to be introduced into the human body The premise of the HBO show and book series True Blood revolves around a technological breakthrough: scientists figure out how to synthesize artificial human blood, which, as an ample new source of non-human food, allows vampires to "come ...
The Trials of the Cherokee Were Reflected In Their Skulls
2014 04 18
Researchers from North Carolina State University and the University of Tennessee have found that environmental stressors – from the Trail of Tears to the Civil War – led to significant changes in the shape of skulls in the eastern and western bands of the Cherokee people. The findings highlight the role of environmental factors in shaping our physical characteristics. ...
Our Fears May Be Shaped by Ancestral Trauma
2014 04 18
Last December, an unsettling Nature Neuroscience study found that mice who were taught to associate the smell of cherry blossoms with pain produced offspring who feared the smell of cherry blossoms, even if they had never been exposed to it before. We knew that the process was epigenetic—that it was not hard-wired in the permanent genetic structure of the mouse—but ...
More News »