THE REAL SPANISH NATION Prostration (II)
WALKING WHERE THE BENEFIT OF "THE ECONOMY" ... INJURY AND NEARLY ALL OF U.S.
PRELIMINARY . Again the question: what makes a proceduralists getting into economy? And again I answer, even if it is procedural, I am also a citizen of two revalidation high school and University Foundation, plus a few books read and lived a few decades, the economic situation is the primary concern of the English and all my life I interested in what happens in Spain. And what happens, what is happening most important is the economic crisis and what is done by politicians and leaders during the economic crisis. I did not start this blog to talk only about issues and legal issues, having published over forty years, hundreds of articles and interviews in all media. I started and continue to say something about what happens in Spain. And if it's Zutano Mengano or next Rector of the Complutense, if Del Bosque must pay tribute to Real Madrid, where this TV is merged or not such other and even if ZP will be resubmitted as head of the PSOE list if you will Rubalcaba and even if the nationalist left is distinguished from true stories of ETA are compared with what is at stake on account of the economic crisis of the many millions of unemployed and many more people in dire . So try to understand what happens and then reporting and opinion. In addition, I offer you, as a lawyer, an observation that may be interested: note that what is at stake is not dependent on legal rules. The legal-legal-not necessarily have been created and will create in the light of decisions of power. power-political, and economic, often difficult to identify, has taken the lead . is the time of the decree-law and the absolute impairment of value of the budget, classic but outdated (in Spain, at least) key institution of tighter control of government by popular representation . The rule of law is a pipe dream for those marginal shots. Law (true) does not count. The solvency crisis (you understand it as you want: extreme illiquidity or inferiority of assets over liabilities) is not resolved under the Bankruptcy Act.
------------------------------------- To answer the questions with which ended the "post" above, should be put aside for the moment, the most important of the real exhaustion of Spain (which is what I tried in this "post" of 6 and 7 February) and focus on issues of economic crisis: Facts and measures adopted or announced. Although somewhat heavy, it makes sense to begin with, referring to the main factors of our economic reality. However, I'm not doing so, because a blog is not the means to edit short academic papers. What I will do is start at the end: I think they will do in the economic field our invaluable "leaders", once considered a danger away forced rescue, it would cost too much to the rescuers . Then at the end of this "post" summarize factors of the economic situation, hoping to understand that the early conclusion is not without solid foundations.
What I think they will do our "leaders" will produce, short and medium term , the following effects:
1 º) falling wages and purchasing power of the whole population. Operation initiated .
2 º) Decommissioning Savings, conversion of a few in Banks and acquisition (most likely by tender) by foreign creditors (banks) of the remaining are of interest. Enrichment of a few merits. Operation in progress .
3 º) Maximum way exploit any tax collection and increasing the tax burden that will fall on ordinary citizens . operation in progress, pending major improvements .
4 º) Public spending unchanged and apparently unalterable . Evidence .
5 º) public deficit unchanged and, apparently, unchanged. Conclusion obvious real factors.
6 º) Increasing public debt constant . Inescapable need leverage the state, with increasing debt .
effects in the medium to long term :
1 º) protracted crisis in the real economy , with high unemployment rates, consumption and production depressed housing unaffordable public discontent supine distraction maneuvers features secure but unimaginable, and so on. Neither I nor anyone else (Who has appeared: surely there is someone) we dare to go there (except I would guess that in the next section), since in a "crisis in L", is never clear the lower horizontal pole length, which may exceed that of the vertical.
2 º) recovery if possible, achieved by "leaders" a "good job market, we are colonized economically and foreign investment flows into . Too many variables beyond the control of Spain, would affect this " scenario", as he now says significant recovery from other countries, destabilizing alternative to Spain (influence on industrial investment and tourism), collapse or demystification of current "emerging" (China, for example), etc.
Let me explain a little more.
falling wages and declining purchasing power of the population of the Nation
snip addition to the remuneration functionary and the freezing of pensions, has already launched a large operation for common employees. Already purchased by the ZP Merkel recipe (or, rather, what he wanted or been able to understand the recipe). The launch of the idea was this: " should liquidate the relationship between wages and CPI " to go to a link between wages and competitiveness. First reaction: the Minister of Labour, the poor D. Valeriano Gómez , rejects the idea immediately, as a good trade unionist. But after 72 hours, as a good minister, begins to rectify and says something as steamy as this: "It is good that there is some relationship between how they evolve wages and prices" and " Spain, for about 30 years when wages are negotiated taking into account productivity "(note that, voluntarily or involuntarily, Gomez speaks of" productivity "instead of" competitiveness "). At first, CEOE also is shocked at the prospect of disappearing wage guarantee clauses (indexed to CPI) generally provided for in Spain for decades, collective agreements, to which the employer is well used. But after 72 hours, the CEOE , speaking through its Vice D. Arturo Fernandez, who had initially said that " competitiveness is a German theme " enthusiastically supports the idea of \u200b\u200b"wage-competitiveness." And the Bank of Spain (BoS) supports at full speed. And so does the International Monetary Fund and hundreds of experts (real or perceived) in newspapers in paper, digital, blogs, public appearances. The main unions are protesting with small mouth, delicious after obtaining financial compensation in 2010.
general dismantling of Savings Banks, permanence, like banks, only some and award a "third" of the "impractical" or "not viable".
About financial institutions and banks, in particular, are data in the Annex at the end of this "post." But, in short, the reality is that at this time is thrown on the banks, and merged (through mergers cold or SIP), a huge pressure of demands, with the support of the great Bank (support, by the way, reminds me of the old things!, the prior and immediate expropriation offered RUMASA). As I write, the demands are just realize: v. Http://www.abc.es/20110209/economia/abci-gobierno-exige-capital-basico-201102092009.html
Those who do not meet the requirements, will be at the mercy of a body dominated by the political class specialized in economy (FROB : see Annex at the end of this "post"), decision maker viabilities and infeasibility and, ultimately, of awards (probably quite healthy after the boxes with the money of all.) I'm not making this up: in COUNTRY of February 9, 2011, Vds. found an interesting article that speaks plainly of "nationalized boxes" (or is it "nazionalizadas"?) and concludes: " The privatization of public holdings [which would be the FROB after intervention] in organizations will be made by a 'competitive process' ."
Link: http://www.elpais.com/articulo/economia/Gobierno/controlara/cajas/nacionalizadas/dan/credito/elpepieco/20110209elpepieco_3/Tes
I'm going to risk predicting -no I bet out of habit- to be German financial institutions, today creditors of English- boxes between the winners of the spoliation indirect Banks .
do not like this picture
No doubt the readers and I have draft and warn that I do not like that, compared to the epic zapateril of the Nation to know to get in standing and walking, I see that will be our paths. They were not wrong the discerning readers. But I must explain.
Do I feel any attachment or conceptual vital for collective bargaining and wage guarantee clauses based on the CPI index? No. defended here that the crisis provided the occasion to put in place to "trade union" and collective agreements negotiated with them for bargaining, more flexible, between the employer and the employees of the company. What happens is that, besides being very contentious and controversial (as the nation , but with immediate impact on millions of lives) that the ratio of wages in the competition (there is abundant literature on the subject), two realities indisputable
that 1) is here taken of this relationship, the only thing that seems clear, that is, the negative : eliminate wage indexation to the CPI while brings al fresco the positive side: establish how the relationship of wages fixed by competitiveness (and according to the productivity, even if it already exists for many English, beginning, very curious and abominably, by the Judges ).
2) that the salary reduction is not a priority action in relation to the crisis. And that turned into a priority, let alone in principal and almost only, the wage reduction, as well as indecent and obscene -if not immediately see the reason for these adjectives, then the explain, is the immediate consequence impoverishment, Spain, millions workers of all kinds, who have never had a level of pay as the major eurozone countries, but much lower. Moreover, this impoverishment may well end up conspiring in favor of a less competitive.
contraargumentario See an interesting , basic but worthwhile content in: http://www.pymesyautonomos.com/reflexiones/con-salarios-mas-bajos-seremos-mas-competitivos
indecency and obscenity on the topic of wage-competitiveness main reform: Earlier I said that ZP (And others) had bought part of the "recipe Merkel." Because, in truth, the Federal Chancellor, though very interested in the salary reduction in Spain, also said something else, like the golden rule: " not spend more than you earn ." Start (and probably end) for low-wage pay cut without reducing (beyond ridiculous tweaks) public spending, huge and run riot in the very special benefit political class, is not indecent to obscenity? Data deficit spending and Public in Annex at the end of "post."
is probably very likely even be necessary to stop automatically linking wages to the CPI and, as a result, be required next salary cut, highly painful. But what may be necessary is not always legitimate for anyone who promotes it (the political and economic leader) such as when placing it first (and only, probably) of the shares on the crisis. And when, despite the illegality and impropriety of such a reform in the real historical conditions or that is undertaken, is to carry out so is perfectly understandable that, quite rightly, the public strongly rejects.
same is true of the action on the savings banks. Necessary decisive action sanitation, depoliticization and clear accountability mechanisms, does not mean that it is fairly acceptable dark concrete operation is now underway, piloted by the Ministry of Economy and the big banks, with the invaluable momentum and applause from some of our most important foreign tutors.
What is really "get and walk "
" Get up and walk "mean, in short, three things, according ZP :
1 º) has absolutely no policy of its own and be willing to second dictate that, in order to save, because that is what matters-the "nail" policy that would be a "rescue" or a big attack "markets."
2 º) Encourage immediate impoverishment of the vast majority of the English , accepting eliminating wage indexation to CPI: with this, ZP exceed, in terms of impoverishment, any known English government and even to any of the various invaders of the Iberian Peninsula.
3 º) Allow, monitor and manage a operation of hasty (and unexpected) liquidation, nationalization and privatization of the Savings Bank, to liquidate some nationalize other and assign then to the undischarged . Handling all of them, with unknown parameters, but handling by a small group of people (the leaders of FROB). No one with experience should be offered the slightest doubt that this operation determine some increase in the number of rich, delicious .
Meanwhile, the trade union or resolve to survive on their fees and their own funds (as advised the union leader's companion Frau Merkel) and political parties are less willing to sacrifice themselves and their friends. The "means" in grave crisis, with little pluralism because of the limited concentrations than any liberal, left many of the essays in the hands of "scholars" and still waiting for aid from the political and economic leaders (read big banks). Entrepreneurs who own businesses do what they can. Sometimes I even succeed in the midst of such adverse conditions. But "business leaders" are unlikely to be entrepreneurs. Continued
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