miércoles, 12 de marzo de 2014

CAUGHT SPAIN IN AN ECONOMIC AND PRODUCTIVE BLACK HOLE



The immovable situation that we are living in the resolution of the economic-financial problems of Spain, is very simple of understanding but almost impossible of solving in the economic circumstances of Spain although the government says that the crisis has played bottom, the credo it doesn't flow, there is not creation of net employment, the pensions are paying the unemployment subsidies (the world the other way around) etc. this takes me to the reflection that our economy is caught in a heap of errors of concepts and economic and financial bases in that the actions forced correctives or not, they have not been neither they are of effective application. 

But unfortunately the economists and politicians don't find alternative and go for before that partly it is because they are measured to "refloat strong economies but in crisis", but they don't want to see our politicians and economists that Spain doesn't have economy to refloat, he has to build it that which is very different. Even knowingly of this fact, the fights already continue almost fratricidal between the believers of some or other concepts to apply, and like it is demonstrating day by day they don't work neither some neither other, because in definitive they are counteracted. 

This is a natural effect in all the things of the life, when one ascends and another low one hopelessly, in summer it is hot in winter it is cold, and this way everything works equally in this life, the bad thing is when one seeks to ascend and to lower at the same time, the result is that he stagnates in a step and there he stays, until something or somebody breaks the tendency of wanting to make the things without the due order. 

The thing is that complicated because in the bottom, nobody wants to recognize what has passed to arrive up to where we are, and if one doesn't want to have or to put in clear the origin point, neither one has clear the arrival point, said otherwise, if one doesn't know how we entered in this, neither we will know how to leave. That said the correlations doesn't work and when they take according to what measures it is very probable that these they don't prosper because there is no correlation with the cause of the problem.  

Bad that it weighs me because it is known the dislike that I profess the Chancellor Merkel, she is right when it sustains: It cannot get ready the debt with but debt" certain and believing in this maxim as in God, their theory closes in a single concept: to reduce debt. This seems and it is logical, we already have now a clear correlation we lack the other one the one that completes the reaction of lowering the debt, and here they begin to break the correlations. For an economy like the German the thing is simple, with reducing its expenses he has enough, because its generation of revenues continues being positive, its deficit is this way practically zero, so without making anything but with the time it will reduce its debt. 

But what it passes with Spain, here the thing doesn't work this way, without entering in you criticize of the because of him as, the reality is that our debts are a reality that you to feed every day more, because with the cuttings, the fall of the consumption and the unemployment every day the differential increases between revenues and costs it should be corrected with emission of but debt the attainment possibility more revenues, in Spain don't exist because there is not production of value added the German recipe for that reason it doesn't work, and therefore if we continue this way, we will get in debt more and more, because as they go reducing expenses, they also decrease the revenues and he goes this way us going up the unemployment, he deteriorates the consumption and therefore the generation of wealth, and the worst thing, the costs of the debt continue ascending (at the moment alone in quantity but soon he will also make it the cost of the interest) and we will have to pay them. 

Incited by the pressure of Germany and of the markets, to the countries problematic calls, are demanded hard sacrifices now, that which I find well, but it lacks the corresponding reaction. To the sacrifice of the expense reduction, it should be made the reactivation of the economy parallels, otherwise to the action of reducing expenses is counteracted with the one of reducing revenues, result, the action is null completely, the pursued objective, the debt, continues here and increasing. 

And I eat final point a warning to the government from Spain; you are making a mistake as always. Before increasing to create and to recompose taxes, it is necessary to create impostors, otherwise that will make it is to catch a miserable bread for today and a lot of hunger for tomorrow.  

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