Unemployment Not Just a Problem in America … Unemployment in Spain Forecast at 22% by Next Year

Citigroup is projecting that unemployment in Spain will rise from its current 17.9% to 22% next year.

Spain’s unemployment is largely driven by the bursting of its housing bubble.

As I wrote last December:

Housing bubbles are now bursting in China, France, Spain, Ireland, the United Kingdom, Eastern Europe, and many other regions.

And the bubble in commercial real estate is also bursting world-wide. See this.

So – unfortunately – unemployment could be a problem globally.

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  • http://classlink.lcusd.net/classlink/viewfiles.php?pid=4096 Carl Herman

    We should consider the benefits of monetary reform to replace the Federal Reserve system in this context. In economics, when the private sector cannot or will not provide an important economic function, we call that "market failure." High unemployment is market failure. Therefore, if we're serious about the achieving the goal of full employment, the government should be the employer of last resort. These cost-positive public service jobs would be paid for by government-created money. As the economy expands in value, inflation should not occur. The historical examples that Ben Franklin wrote of in Pennsylvania, Napoleonic France, and Hitler's Germany give good indications this would be successful (of course, moral use of this economic might is essential). The key is managing the supply of money relative to economic and population growth.Let's now consider the failure of what we currently have, including producing full employment. According to the Federal Reserve's mission statement: "The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded. Today, the Federal Reserve's duties fall into four general areas:•conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates •supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers •maintaining the stability of the financial system and containing systemic risk that may arise in financial markets"Analysis: the Fed fails at full employment (think about this – is there any other way to win other than government employment when the private market fails to do so?). The Fed has maintained 3% of the value of the dollar since 1913 through fractional reserve lending – creating credit out of nothing and loaning it to us at interest for their profit. Interest rates should be NON-PROFIT if we're serious about the lowest rates. Supervising and regulating the ha, ha…HA HA HA HA! Sorry, I can't even continue on that one! Maintaining the stabilitee-hee, har, har! Ar HAR HAR!Ok, I'm back. The benefits of replacing the Federal Reserve and Fractional Reserve lending with monetary reform is conservatively $1 trillion every year. Click on my name and read "The Heart of Economics" for the detailed cost-benefit analysis.

  • http://Anonymousnoreply@blogger.com Anonymous

    "Did we really see what we thought we saw on 9/11?"By Dave RasdalThe Gazettehttp://gazetteonline.com/apps/pbcs.dll/article?AID=/20090706/NEWS/707069946

  • http://www.blogger.com/profile/13156080225918567393 The Grey Tiger

    Unemployment is currently at 20.5 percent in this country according to Shadow Government Statistics. It shows no signs of slacking anytime soon. Economists like Ravi Batra who say we are currently in recession but will enter a depression era next year that will last for years. I sometimes wonder how many times you have to prove sometiing wrong before you stop trying it. The current failure is the second in my life time of free market conservative economics that don't work for long.

  • http://www.blogger.com/profile/14267341272145443931 Tree

    I am surprised at this figure as I had no idea it was that bad. As an aside, it really bothers me when people think it's only America that has stumbled at the precipice (I've read articles and comments to that effect). It's just an excuse for them to express their hatred towards America and shows lack of critical thinking skills. Clearly many countries existed on smoke and mirrors as America did.

  • http://www.blogger.com/profile/07463879543887437960 MARTIN

    Hello American mates!Here in Spain we are now facing a perfect storm. This is the result of the downfall of the housing bubble, world economic crisis, and sudden stop in sales of the car industry. Firings and temporal layoffs are something usual in our country nowadays. We expect nothing good for Spanish economy in a foreseeable future. What's more, best forecasts don't see any recovery until 2011-2012.

  • http://www.blogger.com/profile/16456268028429888846 Frank

    Martin, yes. The "perfect storm" is already on America's horizon too.Sir James Goldsmith predicted ALL this in the early 1990s. His book THE TRAP contained one of the first great attacks on globalization. Too bad he is now dead. He was a true political prophet. Very interesting post about him at:Sir James Goldsmith’s 1994 Globalization Warning at The Catherine Austin Fitts Blog –http://solari.com/blog/?p=3309A quote from Sir James:"The economy, like everything else, is a tool which should be submitted to, should be subject to, the true and fundamental requirements of society. "This is the establishment against the rest of society… I am for business, so long as it does not devour society…[But] we have a conflict of interest. Big business loves having access to an unlimited supply of give away labor."In every developing nation, you have the same problem. You have a handful of people who control everything, the oligarchs. The poor in the rich countries are going to be subsidizing the rich in the poor countries."You cannot enrich a country by destroying the health of its population. The health of a society cannot be measured by corporate profitability."We have allowed the instruments that are supposed to serve us to become our masters."

 

 

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