Road to collapse: Spain's debt increases by 164m every day'.
The reality is that Spain is living on debt with credit from others.
Portugal's risk premium has fallen more than Spain's in the face of a huge policing crisis in the neighboring country, demonstrating that risk indicators are being hidden by a monetary policy that is being sold to us as tight but is actually very loose.
Without the massive support of Europe and the ECB, Spain would be in bankruptcy today. The government, instead of addressing imbalances, is busy embellishing data and agreeing even more spending with its partners.
The Juan de Mariana Institute has published a devastating report on Spain's wild accumulation of public debt.
It's called "debt day," that is, the day,'''free, you have a problem with reality.
Default means recognizing the lack of creditworthiness of the least risky borrower, the government, and is leading to giant layoffs and competition for many companies and families. Local corporations are the only ones with a small surplus, according to the report.
Regionally, the worst result is in La Rioja, where "debt day" comes on November 17. Catalonia reaches that date on December 12, while Madrid reaches it on December 16. The best result is in Galicia, which exhausts its revenues on December 28.
The public debt in Spain is growing at a rate of 164.8 million euros a day.
And the worst part is that beggarly public accounts are affecting the social security system. Spain's social''Social Security has the largest cash deficit in the entire European Union, and the debt of the public pension system tripled during the Sanchez years. Since October 10, all Social Security payments have been made by increasing the debt. Unsustainable. Paying pensions solely from the system's revenues would mean a reduction in monthly pension payments to Spanish pensioners by almost 60 euros.
When the government says it is raising pensions, it is actually owing pensioners' children and grandchildren. The situation is extremely worrying because political power continues to increase imbalances by tacking on the faux pas of "nothing happened". Public debt exceeds a record two trillion euros (cumulative''liabilities of public authorities, Bank of Spain), a record 1.56 trillion in calculated excess deficit, and it is only masked by the effect of inflation on the debt-to-GDP ratio. Spain continues to move into the future with a decade of deficits and stagnant debt (2008-2028).
Many will tell you this happens to everyone, and the United States is also getting into debt. The U.S. is increasing its national debt by one dollar for every dollar of economic growth. As of 2019, Spain is generating six euros of debt for every euro of GDP.
Who will he try to fool first?
The Spanish government now faces more than €20 billion in cuts. It will try to fool Brussels with fictitious tax revenue estimates and promises of higher taxes paid by you. It will try to deceive its partners as best it can by delaying spending increases. In reality, the government will have to fool everyone, including its voters, who are already feeling the tax increases on insurance, premiums, electricity, diesel and natural gas.
No, it's not happening to the entire world. Spain is the second country in Europe to increase''public debt from the end of 2019 to the first quarter of 2023. The increase, amounting to 14.6 points of GDP, far exceeds the increase seen across the European Union, where it amounted to 6 points of GDP.
Some economists assure you that the government gives us more than we pay in taxes, but this is not true because they calculate this without taking into account the accumulation of debt, i.e. cheating. As the Juan de Mariana Institute report explains, "debt masks the true cost of public spending by diverting funding into the future." "This tax illusion equates to 8,478 euros per wage earner. "
Everyone who says debt doesn't matter and deficits are useful because they live off it and have the benefit of''a constant increase in political spending. There is nothing more irresponsible than to delegate to future generations the costs of the inordinate nature of the current government. This cannot be solved by incremental measures, drastic measures will be required to reduce political spending, which has increased in the last five years and has already exceeded €38 billion annually in a country with inefficient public spending of €60 billion annually.
Debt is not free. It is a huge burden on the economy. Spain's public finances are those of a country on the brink of bankruptcy and are only being propped up because the European Union is still tolerating.
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