In my country unborn people and dead people always vote guys like Putin so I'm sorry my friend your statement is nonsense. Democracy prevail or something like that we call dictatorships prevails. 😄
Or how come that 15 years old ppl that has it's entire life of work and pay tax ahead cannot vote but a 90 years old person that is almost at the end, get public money, doesn't produce, can vote?
As a portuguese, Im like : "ah!! Take that!" And then like: "wait a second... We are worse... And our economy is dependent on spain's ability to import.....shit...."
But for my understanding you are doing better that us now, we are stronger because we are bigger and are next to France, but at least Portugal change the laws, so I think you will be doing better maybe in the next 20 or 30 years. The good thing about Portugal is that because is a smaller country can change faster and be more dynamic than Spain.
@@MrValent88 I don't think that the size matters, but the fact that Portugal is an Hypercentralized nation allows for Faster Change an reform. Despite the current portuguese prime minister being alérgic to the word "reform".
@@MrValent88 Portugal is probably the most corrupt of all European countries. There is no chance of any reform. Corruption took over the Portuguese society as a cancer. From higher to lower lever is basically everywhere. The funny part is that many look at Portugal as an unique economic example of success.....what a joke. There is only one place left for large part of the politicians and many business man in Portugal, Jail!!!!
Replace Spain with any other country in the world. Cheap cash in the last 15 yrs caused many countries to borrow like there s no tomorrow. But Spain at least is self sufficient in food and its warm climate helps in energy crisis. That’s why I moved from the UK to Spain.
yes, in summer with air conditioning everywhere it helps a lot to save energy In winter with temperatures at 0 degrees at night it is also very economical
@@Enterao If you live in Northern Spain, you dont have that problem. Also air condition is optional. You dont die from it, you can die from winter cold without a heater in your home though.
Spain needs to stop employing so many public sector workers that want the “job for life” and don’t actually do much. It’s ridiculous when I have to go to the town hall to complete simple tasks for things that could easily be done online.
Spanish here. Public workers and politicians have a long incestuous relationship. Politicians get in debt and spend irresponsibly, public workers and administrations get over fed as their systems get bloated with redundancies and inefficiencies. Both live off each other. Socialists here have long boasted about increasing public spending as if that was a good thing. But all that money comes from sacrificing growth, from the pockets of productive workers and businesses.
@@Seathal after 20 years growing several businesses i n Spain I finally give up and am likely emigrating. im actually sill waiting to be offered a jab ffs too lol
@@PazLeBon according to the UN Spain is projected to loose up to 9.4 million people by 2050 because of lack of pay, low birth rates and people emigrating to find work and now with the coming energy crisis the EU will be so expensive to live in that’s it’s not worth it especially when according to the EU the EU as a whole lost people except for France and Sweden.
@Zarp Sterr it seems you are still looking at currency as a store of wealth. The path we heading is spending capacity. Your wealth means little if the piece of meat and a bowl of rice you need to buy will only be sold to you for the exchange of something of value to the food seller. A little history. The function of currency has taken many forms ranging from precious metals to cowry beads. A currency is anything we accept within our common market. Gold is not for the common market. If we transpose this to crypto, its like spending bitcoin to buy pizza. The cost of the transaction negates it to function as a common currency. You need to educate yourself about the differences between currency, money and wealth. You speak like thrump buffet and soros who think wealth is a bank statement. And if you dig further you will find out that these money men have to survive on the concept of money cos its used for payments and repayment of depts such as taxes in a particular country or region of socio-economic region. Think like you awake.
Spain (like Greece and Italy) has refused to face up to its systemic problems and votes for populists instead of realists. It's unfortunate but I don't see things changing. Fundamentally, Spain has chosen to invest the little money it does have into its old people, rather than giving the young a chance to thrive. This attitude will slowly strangle the little life the economy has left. It's a bummer, because with enough political will it could have been avoided. * Implement a modern and competitive tax system * Fight corruptions whereever possible * Invest in the young * Embrace (controlled) immigration * Basically copy + paste Estonia
I don't want to live in Russia I mean Estonia I prefer Spain. Spain is a lot better ... Spain suck but don't suck as much as half European u ion countries .😁
@@andreasgregorfrank9057 I know you can just press a button, and print digits on a screen. Japan died in 1989. Its currency is falling fast, but they manufacture in China, and the US. The US has a weapon, you might not know about - the USD. Look into it. You can't bring up the US, and Japan in connection with the UK.
They are like a drug addict. Addicted to useing creditcard to pay for they’re addiction. And at the same time just listening to the dual brainwashing of the populist right and left who blames « the scapegoat» for all they’re problems. It’s possible that the euro don’t survive this crisis. Why should the north of europe pay for the corruption and dysfunction of the south? Mass migration also leads to further brain drain, that also leads to less productivity to pay for the elders. There need to be reform of the tax system and insentivs for the young to be more entreprenoural. Starting a business for exports should be made easy, and supported by the government in form of making it easy to fire people, and give the unemployd support ( unemployd benefits/secureity), that they can actualy live on. There also need to be freezes of the government hiring even more people that is not supported by productivity in the privat sector A mix of the best of capitalism ( the free market, and low taxes), and social security will stimulate for growt and optimism. In this way they can fix they`re own problems. There is always room for growt and optimism, but there can`t be a party based on debt. That is not sustainable.
Part of the problems of an electoral democratic system. Politictians focus on the next election, which usually is only a few years away. No one dares to plan long term and fix structural problems. Because they will be vote out of office in no time.
Our banks are solid, in 2022 we grew 5.2%, we have the lowest inflation in the euro zone, the percentage of unemployed at historic lows, the European Commission has approved our pension system, there is social peace, in 2023 we will be the Euro zone economy that will grow the most, ECB dixit, ... we are a disaster
Pure sensationalism. Absolutely no understanding of debt capital markets. Debt investors will continue to have confidence in Spain as long as it's able to service its debt. One of the key indicators of investor confidence in Eurozone countries is the spread between that country's 10Y bond and the German one, the spread for Spain is at ~ 110 bps, way below the 500bps it was during the EZ crisis of 2010-2012.
We're talking Spain here people, a country that had exclusive and unchallenged control of the Americas for three centuries, and yet was bankrupted almost every decade of those centuries despite minting 300 million silver bouillon; so you see bad wealth management is an historical pastime.
Where did you learn Spanish History Mush.....coming out with that wollo wollo about Spain.... Her Glorious Empíre lasted 4 Centuries in All ..... How long did your vile criminal oppresive Empíre lasted for.....Baraly a Century and a half...loser's Now it's your Poor old little England that is a total económic MESS...yet you make this silly videos about Spain a Country that is on the Up....while old little England is practically in Económic Ruin....and lagging about 60 years behind Spain economically....Culturally you are 120 years more or less.
Eso fue por qué los piratas ingleses y el asedio de todos los países de europa hacia España, defendíamos a la cristiandad ante los turcos , luchando con holandeses, franceses, piratas ingleses, y en el todo el planeta, colonias en los cinco continentes ,etc..
This is a realistic scenario that is already playing out across Europe and in Japan: pensioners voting en mass for the party that takes away from you to give them more.
I dont think so. Pensioners are well outnumbered by non pensioners. I think its the government that chooses to spend money on itself, the workers, crazy pension benefits, expensive programs, and corruption. Its the government people who dont care because its not their money so they spend willy nilly and waste the funds, then tax more and more. Thats the problem.
I find it strange that a Spanish channel is trying to ruin the Spanish economy on purpose. Investor confidence is incredibly important and it looks like you're pointing out all the problems the Spanish economy has on a silver platter whilst removing some important context, leaving viewers only with "Spanish government incompetent. Waste money when they not have." It's like as if Mario Draghi during the euro crisis said "welp, the ship's going down now. Have fun" instead of the reassurance he gave the markets about how everything would be resolved.
I'm in Spain now, everything seems fine, people are happy, cities are bustling and beautiful, and the days are long and bright; I see no mood of impending doom here. Mas sangria por favor! 🇪🇸 🍷
That’s what’s called the calm before the storm. Pero no te preocupes si estás quedando en una buena terraza soleada con amigos y estáis llevando copas bien frías en mano 😎🍻🍷
By the time it goes sideways it's too late, banks are shut, capital controls are in place and those who aren't the ECB get wiped out. When the ECB stops buying Spanish debt and when it increases interest rates there is a potential for a tipping point and not just Spain, I think Italy is in a more precarious position. It would be prudent for people in Spain, Greece or Italy not to keep much of their wealth in the banks of those countries. They can open accounts in other EU countries and store the cash there. Germany would be my choice.
A a Brit living in Spain I have seen some major changes over the last 5 - 10 years. Doing deals (especially house sales) in black is very rare now, far more people are on work contracts and there has been a huge influx of young Latin Americans moving here. All of these things will assist tax revenues but of course the socialist government does like to offer lots of freebies!!!
That’s not the biggest problem, the energy costs that are coming will be to difficult for Spain to handle and according to the EU the EU as a whole has lost people again expect for France and Sweden because France basically fcked over the rest of Europe and used them as a political protect not a economic one why do you thing France has a lower inflation rate than every EU member? It’s because their economy is as involved in the EU
The main holder of Spanish debt is the European Central Bank and the money they used to buy these bonds was printed money. Hence, in case of default, the central bank will lose its investment. That will translate in less trust into the central bank and further drive down the euro. This is already happening as the neuro has been on a declining path for a few months now if not years. So bankruptcy is actually the least damaging solution. On thé long run, the euro is doomed unless its politicians start to have sensible economic policies.
The funny thing which shows the schizo political management of the ECB: they are selling like cookies their healthy german and dutch public debt to buy the toxic spanish and italian ones...
The problem here is that there's a vast number of public servants doing largely useless jobs: they can never be fired, re-purposed, or laid-off. Never. Meanwhile, being a freelancer/entrepreneur here is madly expensive, with each freelancer paying 317 euros/month in social security alone, and that's about to go way up. Spain could be viable IF they laid-off or re-purposed their vast army of public servants, or simply don't replace the retiring baby-boomer public servants, but there a massive bloc of voters who will never vote for that: those same public servants. The only solution I can see is the rest of the EU bailing them out on the strict condition that the rest of the EU takes full control of Spain's fiscal system and public sector: not very likely, but at least theoretically possible.
It's a problem of incentives. In Spain there are a handful of instutions that have been singing the same song for at least a decade, like the AIREF: The current financial setup is unsustainable and is hurting the country. All kind of measures have been proposed, but in reality political parties have no obligation to do any of that. In fact they pretty much try to silence them. We do know what's happenning, but public employees & pensioners are a big chunk of the voter base, so everything is done to keep em happy.
Mate, EU is not going to touch a thing in here, its our country. I agree with the problem you are bringing in but we fix it ourself or we dont, thats it
Remember when Greece was at 105% they said it was Armageddon for them now it seem most of the world has eclipsed this number. Before anyone responds I know diff countries can handle diff ratios but still the global rise is troubling.
I get insulted when I say many European countries have overvalued economies. Europeans countries are screwed because of lack of natural resources and the loss of manufacturing to poorer emerging economies. The only thing that good for Europe is productive farm lands but the fertilizer and natural gas disruptions will reduce agricultural output.
Loss of manufacturing wich hasn't happened by accident I have witnessed the closure of hundreds of manufacturing businesses to relocate elsewhere during the last 25 years in my opinion due to not so business friendly policies here : overregulation and hypertaxation .
I thought that European manufacturing should still be better shape then American since still had luxury cars, watches, purses, wine….to sell to the emerging markets
@@johnl.7754 the big brands can weather almost everything but smaller companies (less than 500 employees) makes the biggest part of the economy and are the ones more affected.
Well, that's quite just not true, Spain has a strong primary sector with really important agricultural exports. The country also has some important industrial assembly lines and a really strong pharmaceutical industry.
I can imagine the German crash to be even worse due to their dependence on Russia, China and their reliance on exported goods; France on the other so far they’ve been better than the rest of Europe.
@@blacklighthologram5339, what I think will factor is social security reform in both Germany and France. There was mention of an intention to increase Spanish retirement funds, ... Germany, and especially France, have yet to tackle that demographic time bomb in a sustainable way
Continuing the list with China and many other countries.. The answer can only be: mass retiree poverty. Just think it through - there is no other way, even if you try.
@@Lotterboy I sometimes contemplated the scenario of mass migration of near-free young labour. There are billions of penniless third world young people who might accept low incomes (relatively) in first world economies in return for free accommodation. Many current and approaching retirees in first world countries have houses bigger than their needs. Think back 150 years in the UK, many workers were cash poor but had a sustainable support ... serfdom?
@@neilmckay8649 i personally really like the idea. However.. :).. This approach poses several challenges: 1) The migration train would have to be gender balanced, or severe social problems occur 2) Most European countries are mentally not prepared to replace part of their culture with people of an often completely different culture. Strong cultural integration would be necessary. How realistic is that? 3) It has to be qualified immigration.. Most poor world regions with 'masses willing to leave ' don't exactly provide their population with the same level of education as Europe. But, despite all these problems: Something along these lines will probably happen - not fully replacing the declining population, but partly and thus softening retiree poverty.
Spain defaults and the other poorer European countries will fall like Dominoes.Thats why every country should have its own currency. Different currencies allow poorer countries to compete with more prosperous ones. Another problem is that the Pensions are too generous and there are simply not enough workers to support them.
While I generally agree with your analysis, I think it is a bit naive with respect to 3 key points: (1) The level of interest rates is not everything. To assess likelihood of a default, the debt structure in general is more important, more precisely how it is split between short and long term debt. If the lionshare of debt is of longer duration, they may well be less affected by short term rising interest rates as currently seen. (2) The ECB is well aware of the issue, which is why they have been discussing an anti-fragmentation tool which would basically allow them to buy sovereign debt of struggling states to keep rates low, while selling debt of “stronger” states like Germany, France or Netherlands, effectively taxing these countries. Whether (or how long) they will accept that given the current context is another matter. But in that way the ECB would effectively not increase overall debt purchases as one buy cancels one sell. (3) Cross collateralisation among nations has become a recent trend pushed by the EU and EU bureaucrats will surely advocate for that in case of struggle. What is clear is that EU institutions have created a block of overleveraged economies with a bloated and unsustainable welfare system and EU officials will fight to keep the bloc alive since their livelihood depends on it. However the current economic context is dangerous and might well be the end of the EU and the Euro as you say.
@@perfectallycromulent When half the young population can't find jobs and the other half thinks working as a barista as a cafe is their best opportunity, Spain isn't a good place.
This is more than a morality tale. Why did lenders (mostly banks in northern Europe) lend more to Spain than it was capable of spending properly? Were they expecting the EU to guarantee the debt? Also, why did Spain adopt the Euro (disguised Deutsche Mark)? It could no longer devalue its own currency. Spain did get some magnificent infrastructure for its money. High speed rail everywhere, for example. Spain is part of the European superstate which has to cover its poorer regions. In the US, the national government has long subsidized poorer regions, such as the Deep South.
EU and US are not the same. EU is not a federation, it could be, but ironically is mostly the politicians from those countries who oppose the idea... obviously, politicians who have no issue with burying their countries in debt to win one more round of elections would never accept a federalization of Europe, which would mean a high reduction of their own power and career opportunities.
This video is just aligned with the neoliberal propaganda of the last twenty years. Public spending is seen as the evil while in fact it is a term of the gdp. Actually all the EU countries not in the German sphere have experienced a dramatic drop in competitiveness due to the Euro. Secondly, why should the Spanish government not borrow as much as possible when interest rates were low, allowing the country to build better infrastructures and increase productivity? All in all nobody has forecast the pandemic and the only solution is tax increases to the elderly, in terms of income tax, tax on primary goods and services and the like.
This video is irrelevant now, the economic forecast in this video failed. Now in 2024 Spain improved a lot, did better than most EU countries. I advice everyone not to waste time watching 2 years old economic vlog.
1. Legalise and tax cannabas 2. Tax luxury goods ie. Cars over €25000, wines, beer and spirits over a certain value 3. Slightly increase income tax by a small amount 4. Follow Estonia and Look to reduce public jobs while making everything streamlined, efficient and digital. 5. Remove the red tape for construction. Actually allow the country to grow
I am in Spain. In the past year I've travelled all over the country. There is no industry apart from pig farms. The educational level is extremely poor. I am told people with skills leave for other EU countries. There is perpetual drought. The leadership appears to be corrupt. Spain cannot survive.
It seems that you have not traveled throughout Spain and forgot about the industry in the north that contributes most of the Spanish GDP, against all the nonsense that this propaganda channel says.
Other than some if the best content, I’m loving the new dress code: black tie Too good, wish other tv channels were as much fun to wash down the news Go guys
Default is easy and has no real consequences. Ask Argentina, which defaulted a half dozen times in the modern era and after some short term pain was back at the capital markets borrowing again. The reason this happens is that bond holders are sheep and often, due to laws, have to buy debt whether they like it or not (e.g., pension funds). I see not just Spain, Italy and Greece defaulting, but eventually the entire G7 including the USA. Probably all debt owed by foreigners would be defaulted on in the USA, and any debt held by small holders up to say $200k per entity would be honored by the USA in the form of a new dollar, call it the Amero.
Though what is stated here is true, this video lacks nuance. Castellón airport was built by the regional government not the central one. This is important as the video implies that the 2% budget surplus was wasted by the central government. Also, in line with many international forecasts, it was believed that the recession would be 'a soft landing'. Hence the central government's Keynesian public works stimulus drive (Plan E) which resulted in a large part of the budget deficit. Agregate demand is still demand. Though I do not doubt that much money was wasted and misspent, these issues are many shades of grey rather than black and white. Finally, many of Spain's problems result from being essentially a federal system which encourages duplication and waste.
There is one factor missing in this video, that has a massive influence on the topic: inflation. If currency loses 10% of value each year, also the dept shrinks 10%. This has an impact on all the numbers discussed in this video and it's a pity that it is not taken into account at all.
Inflation also means that most people become poorer, and there is less much less money in the economy to keep businesses afloat, and peoples savings disappear.
That would be at least partially correct if we were talking about moderate inflation. However we are not. The correct term for what is actually happening is Stagflation, where you have inflation that is accompanied by a stagnant economy instead of growth. Inflation is normal and natural and wanted because it is supposed to be a byproduct of economic growth, ie a rising tide carries all boats including wages and prices. However that is not what is occurring. In this case you have rising inflation in prices that is not accompanied by inflation in wages. The inevitable byproduct of populist/socialist voters and mismanagement by politicians. There is unfortunately no way out of this short of an intense reset of the economy by massively raising interest rates, lowering public spending, and getting a more economically friendly tax scheme in place. However this is basically impossible now that debt levels have reached the levels that they have.
The Spanish economy will grow in 2022, 4.3% of GDP and it is estimated that it will grow between 1.2% to 2.1% in 2023, twice the average of the European Union despite the war. If that is a bankruptcy, then much of the world's rich countries already collapsed.
The US also spends a lot more than it has earned. That's why it has a deficit and booming debt crisis. The also prefers to defer whatever problems it has and pretend that it does not exist. The US too is a nation that has dodged all of its obstacles and has indebted its future generations. Just because Spain is the "most vulnerable Western nation, thanks to following the US lead, they're al in the same boat and that boat is taking on water.
The triffin dilemma means the US can’t solve its problems without making everyone else’s worse which has the potential to make the US problems much worse still.
What of Italy, or France ? Those 2 economies are even bigger than Spain’s, so if those 3 fail, the Euro is doomed.. well done UK (Brexit), got out of the EU, in the nick of time !!
Yeah, young people often earn €1000-€1200 a month after tax. The average age to leave home is 30 or maybe even 31 now! And that's also one reason why the birth rate is incredibly low - young people can't even afford to support themselves let alone a baby. Instead of fixing this problem the government just imports people from abroad.
Spain is weak ever since their empire collapsed. Despite the problems Mexico has its better for doing anything except security. Nowadays you see a lot of Spanish and Argentinians moving to Mexico.
Spain rank is 27 in human development index, Mexico is 86 I could continue making comparisons, but it is too absurd to compare a developed country with a developing one, it is a waste of time
And mexicans movibg to Spain..students and rich people searching security..you don,t have. What kind a country could be one Who citizens need to wear pistols or bodegueros in their cars to feel them safety..and what about corrupción.. mexicans Police picking money from anyone. No man..the only spanish Who move to México are the ones Who work in spanish companies there
Seems like the wealthy European countries who never joined, left, or maintained their national currency may dodge a huge bullet. So perhaps Brexit was not so bad! Norway and Switzerland would not be affected that much and the Nordic countries Sweden and Denmark who are part of the EU but do not use the Euro can escape however Denmark needs to stop pegging their currency to the Euro. Finland should have never adopted the Euro and should have opted out just like it’s Nordic neighbors that are part of the Union!
The EU members who do not use the Euro are still bound to it through the European Exchange Rate Mechanism II (like Denmark), or have agreed to an obligation to join the Eurozone (like Sweden).
@@Andreas_42 Denmark 🇩🇰 is stubborn with its peg policy! They should have learned from Switzerland 🇨🇭 that formerly pegged their francs to Euro but decided to free float when the last euro crisis happened in 2008. Being a money oriented country I was surprised Switzerland would peg their currency in the first place since their currency was already considered hard and reputable even as a free floater and it’s much more expensive to peg but since they had a lot of foreign reserves I guess they thought they could afford to do so! Sweden 🇸🇪 like the Czechia 🇨🇿 meet the economic qualifications to adopt the euro but are pushing off some other requirements and stalling through national referendums to postpone using the euro!
@@JeroenBIG well it was kind of Germany’s fault since they felt using a single currency would make imports from these countries cheaper since they would have to pay an exchange rate fee for each transaction if each country used their own currency! Also the Germans didn’t want to accept payment of other national currencies when it came to exports and loans since they were less stable so they felt using a singular currency would avoid these risks but it was a bigger risk that they didn’t even take into consideration. Sometimes being cheap is not alway wise!
@@jon6309 Greetings from Switzerland 🙂 Denkmark is not stubborn, it is bound by the ERM II to keep its currency in an agreed upon convert range to the Euro. They are the only EU member state with a permanent opt-out option to join the Eurozone, but their national currency is nonetheless tied to the Euro. Switzerland is not part of the EU and ERM II and therefore not bound by treaties or agreements to a more or less fixed conversion rate. But my home country has an interest in a stable conversion rate, since most of Switzerlands goods and services exports go to neighboring countries. The decision made by the Swiss National Bank to go free float in 2015 was a shock for the exporting companies, since their goods and services became about 20% more expensive in the Eurozone in the whim of the moment. Luckily most of these companies were able to adept to the new situation and stay competitive. The stalling of Sweden and the Czech Republic to adopt the Euro is tolerated by the European Council (EC) for now. The obligation still exists, and at some point in the future the EC will most likely increase political pressure to fullfill the obligation. Far less likely, but still a possibility, would be the EC taking action and start proceedings for a breach of contract against those member states. But I daubt they would go these route without a very strong political backup from the Council of Ministers of the EU.
Of course it doesn't help either that the country is hotter than ever before, in a drought and having lots of wildfires! I used to envy Europeans and now I suspect they will be envying America in the future.
This video is so agressive towards spain for the wrong reasons, using the same regurgitated retoric of right wing british media. Well have a look at your own debt lol! Plenty more countries to go bankrupt before Spain, specially those touched by china's debt traps or in serious economic downturns. In Spain in the early 2000s we lived through the same bubble the US, UK and Germany had, only ours was much bigger and fueled massively by laws promoting inefficient construction projects and megaprojects of various kinds. The result? We suffered more, and we payed more for it. There was no culture of spenditure from the common lowman, just trash leadership of both parties The situation now is completely different. One could easily argue Spain is making way less political-economic mistakes than the UK, which is blindly throwing herself into conflict with US/EU over NI The title is so clickbaity and the first 8 min are spent dwelling on past mistakes. It's like talking about Germany's current situation and pulling up WWI reparations in the same video
Total rubbish. The presenter doesn't have a clue. Or is just jealous. Spain and the rest of Southern Europe have been outperforming and leading the growth in the last years. Mediterranean Momentum
No te creas todas esta mierdas, estos son canales de propaganda pagados por intereses de multinacionales que lo único que buscan es cambiar los gobiernos por otros más favorables a sus intereses. España no está en bancarota, ni mucho menos.
Blaming Spain for the end of the Euro is like blaming Japan for the end of Basel III fiat currency system . . . NO. That's wrong. The Euro, like the Basel III fiat currency system, drove itself to catastrophe all on its own and not through the misdeeds of one of its members. Stop trying to scapegoat the runt. The entire litter is to blame.
Spain's debt crisis will not lead to a Euro collapse since 40% of the debt is owned by the central bank it will either postpone payment or just forgive the debt altogether.
Yeah that’s right it’s from the magic money tree, the central bank can just keep printing money, buying the nations debts and then right it off. Why didn’t Adam’s think of that the clown, called himself an economist and he didn’t think of that simple slight of hand to keep the good times rolling. Abundance for all forever, yippee, you have solved it.
@@mikeearussi Also it is geopolitical. If the EU falls the US falls so no no will not happen. Same trash the politicians tell their people in Britain. Britain will not default, no matter how high the debt But as usual some push for the propaganda of age old economics that is not even thought anymore because it favors some people. That is the beauty of Bretton Woods. The debt is secured by the western economies and armies. Good luck collecting the debt.
Finland just announced the next government budget plan. It sounds like Finland is going to take on a lot more debt. And the The energy in Finland is limited and more expensive in this winter. What's going to happen to The Future Of Finland?
@@Aidan_AuDemografian takia ainut tuottava investointi kohde tulee olemaan hautauspalvelut. Suurimmat julkiset kustannukset liittyy myös vanhuuteen ja ne kasvavat vielä pitkälle tulevaisuuteen. Eletään sitä eläkepommia, mistä on varoiteltu joku 20 vuotta. Kukaan ei tehnyt mitään, vaikka eläkeikää olisi pitänyt nostaa nyt eläkkeelle jäävillä eikä vain nuorilla, joilla se on ~70v. 64v eläkkeelle synnyinvuodella 57. Todennäköisesti hän elää vielä ~20v eli 20v ilman työntekoa. Sotea märehdittiin myös 20v ja nyt se vasta saatiin runnottua lävitse, kun kriisi on jo päällä. Kuten näkyy säästöt perustuvat palvelujen saatavuuden heikentämiseen eli heikommat kauempana kaupungeista sitten menehtyvät helpommin. Ulkomaalaisista huippuosaajista on turha haaveilla, kun eläke maksuihin menee 25% palkasta ja veroprosentit ovat muutenkin kovat. Palkat ovat ennestään pienemmät kuin verrokki maissa ja näyttää siltä, että niitä yritetään pienentää entisestään. Joten maahanmuuttaja mitä luultavimmin valitsee mieluummin vaikka Ruotsin tai Saksan. Kuka investoi maahan, jossa vuonna 2060 kuolee 700 000 enemmän kuin syntyy? Sitä ennen kaikki nyt olevat systeemit tulevat entisestään keskittymään enemmän vanhuksiin ja suuri osa palveluista yksityistetään. Moni muu Euroopan maa kärsii ihan samasta ongelmasta, kuten Italia. Italia tosin ei ole yrittänyt kovasti estää maahanmuuttoa ja kieli on helpompi oppia. Joko Suomi luopuu kielivaatimuksista tai paikka ei houkuttele ja maahanmuuttajien on vaikea työllistyä.
Wow a year on and I am afraid you really hit It on the nail. What countries saved themselves in 2008 by printing money like crazy..... QE1, 2 & 3 ? Good work fellas!
The West, the U.S., UK, EU, plus Japan, China are doomed because of demographics and debt. Wish I could say So long and thanks for all the fish but I’m stuck here.
There is no reason for these countries to improve as the ECB can't let them fail , an infinite loop until the ECB is unable to assist the euro collapses and takes the EU with it
The gambling addict analogy is most apt. They are just one more tranche of borrowings away from a run away success economy. Its just been an unlucky streak. Most countries are not far behind the Club Med. countries so we cannot be smug.
Spains economy like Italy and so on are still set up to inflate their way out of debt via their currency. That became impossible with the euro. So either adjust how the euro works or step out and go back to the old spanish currency.
It would mean exit from EU, and they cannot afford it. Even britain is in ruins now, which was a DONOR to EU. Spain is a recipient. What would happen if they quit ? Turmoil and chaos
The problem with most developed countries is that they all want to have the social services like those in Luxembourg, Germany, Singapore,.... but they forget that they aren't wealthy enough to sustainably afford it ESPECIALLY the ones with huge populations. Solution? The politicians need votes and enslaving future generations is such a wonderful strategy. If you fight to grow the economy, if you fight for entrepreneurs, you will get tons of money to spoil the entire population. Sadly, fighting for entrepreneurs is often seen as being some sort of "rich people b***h" and no one wants to be called that at the election debates.
India doing fine in this world ,, +7% growth here in India gdp ,,, indian house hold saving is boon in india ,,27% house hold saving in india ,, we have enough food ,, only things we need successful make in india program ...all other things are running in all mannar ,,,
Italy yes, Uk and Us no. Salaries here are 46%of the salaries in the UK with cost of living that is 30% lower and 13% unemployment. In sumary w get payed 54% less and spend 30% and have much more unemployment.
It’s often strange that Southern Europe explained as bad economies. Italy Spain Portugal and Greece are on the news for malfunctioning. What about Northern Europe they don’t have sick economy or Uncle Sam Bailouts them .
We will sell more drugs to Europe Spain is fine... South American helps us a lot with that and yes making illegal money legal that's a great way of improving life probably. 😂
Spain but the s is silent
Good one
Epaña?
good play!
Hahaha
@@oppionatedindividual8256 no💀😂😭
The best part about being a politician is that the unborn don’t vote.
I think there should be an age cap for being a politician these old dogs are gonna destroy us all.
In my country unborn people and dead people always vote guys like Putin so I'm sorry my friend your statement is nonsense. Democracy prevail or something like that we call dictatorships prevails. 😄
unless it is America
Or how come that 15 years old ppl that has it's entire life of work and pay tax ahead cannot vote but a 90 years old person that is almost at the end, get public money, doesn't produce, can vote?
@@pietropasotti4418 always been the same
As a portuguese, Im like : "ah!! Take that!"
And then like: "wait a second... We are worse... And our economy is dependent on spain's ability to import.....shit...."
ability
But for my understanding you are doing better that us now, we are stronger because we are bigger and are next to France, but at least Portugal change the laws, so I think you will be doing better maybe in the next 20 or 30 years. The good thing about Portugal is that because is a smaller country can change faster and be more dynamic than Spain.
@@MrValent88 I don't think that the size matters, but the fact that Portugal is an Hypercentralized nation allows for Faster Change an reform.
Despite the current portuguese prime minister being alérgic to the word "reform".
@@MrValent88 Portugal is probably the most corrupt of all European countries. There is no chance of any reform. Corruption took over the Portuguese society as a cancer. From higher to lower lever is basically everywhere. The funny part is that many look at Portugal as an unique economic example of success.....what a joke. There is only one place left for large part of the politicians and many business man in Portugal, Jail!!!!
"And our economy is dependent on spain's ability to import.....shit...."
I guess Portugueses export will go elsewhere?
Replace Spain with any other country in the world. Cheap cash in the last 15 yrs caused many countries to borrow like there s no tomorrow. But Spain at least is self sufficient in food and its warm climate helps in energy crisis. That’s why I moved from the UK to Spain.
@@andreasgregorfrank9057 Mmm. Russia has paid off all the USSR's debts.
UK has that too. You're led by green crazies.
yes, in summer with air conditioning everywhere it helps a lot to save energy
In winter with temperatures at 0 degrees at night it is also very economical
@@Enterao If you live in Northern Spain, you dont have that problem. Also air condition is optional. You dont die from it, you can die from winter cold without a heater in your home though.
Spain needs to stop employing so many public sector workers that want the “job for life” and don’t actually do much. It’s ridiculous when I have to go to the town hall to complete simple tasks for things that could easily be done online.
couldn't agree more, even though they say that they are understaffed
Spanish here. Public workers and politicians have a long incestuous relationship. Politicians get in debt and spend irresponsibly, public workers and administrations get over fed as their systems get bloated with redundancies and inefficiencies. Both live off each other. Socialists here have long boasted about increasing public spending as if that was a good thing. But all that money comes from sacrificing growth, from the pockets of productive workers and businesses.
@@Seathal after 20 years growing several businesses i n Spain I finally give up and am likely emigrating. im actually sill waiting to be offered a jab ffs too lol
@@danielromerosol4158 gdp means little to the working class,its a misnomer
@@PazLeBon according to the UN Spain is projected to loose up to 9.4 million people by 2050 because of lack of pay, low birth rates and people emigrating to find work and now with the coming energy crisis the EU will be so expensive to live in that’s it’s not worth it especially when according to the EU the EU as a whole lost people except for France and Sweden.
I would be interested in your take on Britain. The debt seems to be growing significantly, and sterling is collapsing.
Hear hear
@Zarp Sterr it seems you are still looking at currency as a store of wealth. The path we heading is spending capacity. Your wealth means little if the piece of meat and a bowl of rice you need to buy will only be sold to you for the exchange of something of value to the food seller. A little history. The function of currency has taken many forms ranging from precious metals to cowry beads. A currency is anything we accept within our common market. Gold is not for the common market. If we transpose this to crypto, its like spending bitcoin to buy pizza. The cost of the transaction negates it to function as a common currency. You need to educate yourself about the differences between currency, money and wealth. You speak like thrump buffet and soros who think wealth is a bank statement. And if you dig further you will find out that these money men have to survive on the concept of money cos its used for payments and repayment of depts such as taxes in a particular country or region of socio-economic region. Think like you awake.
I’d like to see his take on the USA, the first 30 seconds of this video he could’ve been taking about there, or here, or many other countries.
ECB is the only way out . Keep inflating the money supply. Primary inflation. It's never going to be paid back globally. That's not in the plan. 🤔
I’m living in Spain. Too much public workers that cannot get fired than private employees.
Spain isn’t the only country to pretend that it’s problems don’t exist
The whole world is kicking the can down the road
100pc....the debt bomb must explode....just a matter of when.
You mean the whole western world.
Well that is the way with left leaning democrat Governments. Hence most of the World is going into big debt.
I am feom Castellón! LOL
Thank you for showcasing our "airport". A clear case of the corruption era of the early 2000's we had in Spain..
Corruption you HAD in Spain? And today you are corruption free?🤔
Sanchez, must walk on water.🤣
@@maryannwaters339nobody talks about the Berlin airport right? Ah yeah, they are Germans
Spain (like Greece and Italy) has refused to face up to its systemic problems and votes for populists instead of realists. It's unfortunate but I don't see things changing. Fundamentally, Spain has chosen to invest the little money it does have into its old people, rather than giving the young a chance to thrive. This attitude will slowly strangle the little life the economy has left.
It's a bummer, because with enough political will it could have been avoided.
* Implement a modern and competitive tax system
* Fight corruptions whereever possible
* Invest in the young
* Embrace (controlled) immigration
* Basically copy + paste Estonia
I don't want to live in Russia I mean Estonia I prefer Spain. Spain is a lot better ... Spain suck but don't suck as much as half European u ion countries .😁
The UK might have to get an IMF bailout. Their debt to GDP ratio is too high.
@@andreasgregorfrank9057 I know you can just press a button, and print digits on a screen.
Japan died in 1989. Its currency is falling fast, but they manufacture in China, and the US.
The US has a weapon, you might not know about - the USD. Look into it.
You can't bring up the US, and Japan in connection with the UK.
They are like a drug addict. Addicted to useing creditcard to pay for they’re addiction. And at the same time just listening to the dual brainwashing of the populist right and left who blames « the scapegoat» for all they’re problems.
It’s possible that the euro don’t survive this crisis. Why should the north of europe pay for the corruption and dysfunction of the south?
Mass migration also leads to further brain drain, that also leads to less productivity to pay for the elders. There need to be reform of the tax system and insentivs for the young to be more entreprenoural. Starting a business for exports should be made easy, and supported by the government in form of making it easy to fire people, and give the unemployd support ( unemployd benefits/secureity), that they can actualy live on. There also need to be freezes of the government hiring even more people that is not supported by productivity in the privat sector
A mix of the best of capitalism ( the free market, and low taxes), and social security will stimulate for growt and optimism. In this way they can fix they`re own problems.
There is always room for growt and optimism, but there can`t be a party based on debt. That is not sustainable.
Part of the problems of an electoral democratic system. Politictians focus on the next election, which usually is only a few years away. No one dares to plan long term and fix structural problems. Because they will be vote out of office in no time.
Our banks are solid, in 2022 we grew 5.2%, we have the lowest inflation in the euro zone, the percentage of unemployed at historic lows, the European Commission has approved our pension system, there is social peace, in 2023 we will be the Euro zone economy that will grow the most, ECB dixit, ... we are a disaster
Could you make a similar video about the other countries such as Italy?
When is this supposed to happen tho? One year in and prediction couldn’t be more off 🤣
2 months after this comments and this still could not be more wrong
Pure sensationalism. Absolutely no understanding of debt capital markets. Debt investors will continue to have confidence in Spain as long as it's able to service its debt. One of the key indicators of investor confidence in Eurozone countries is the spread between that country's 10Y bond and the German one, the spread for Spain is at ~ 110 bps, way below the 500bps it was during the EZ crisis of 2010-2012.
Yeah, what will happen:
The EU pressuring to invest in infrastructure and the youth. Do that, and the ECB will lend Spain infinite money.
We're talking Spain here people, a country that had exclusive and unchallenged control of the Americas for three centuries, and yet was bankrupted almost every decade of those centuries despite minting 300 million silver bouillon; so you see bad wealth management is an historical pastime.
Where did you learn Spanish History Mush.....coming out with that wollo wollo about Spain....
Her Glorious Empíre lasted 4 Centuries in All .....
How long did your vile criminal oppresive Empíre lasted for.....Baraly a Century and a half...loser's Now it's your Poor old little England that is a total económic MESS...yet you make this silly videos about Spain a Country that is on the Up....while old little England is practically in Económic Ruin....and lagging about 60 years behind Spain economically....Culturally you are 120 years more or less.
😮😮😮😊😊😊
Eso fue por qué los piratas ingleses y el asedio de todos los países de europa hacia España, defendíamos a la cristiandad ante los turcos , luchando con holandeses, franceses, piratas ingleses, y en el todo el planeta, colonias en los cinco continentes ,etc..
Been seen these type of videos since the financial crisis. Even a broken watch is more accurate
This is a realistic scenario that is already playing out across Europe and in Japan: pensioners voting en mass for the party that takes away from you to give them more.
I dont think so. Pensioners are well outnumbered by non pensioners. I think its the government that chooses to spend money on itself, the workers, crazy pension benefits, expensive programs, and corruption. Its the government people who dont care because its not their money so they spend willy nilly and waste the funds, then tax more and more. Thats the problem.
Welcome to XXI: the century where the olds will devour the future of humanity without a single wink of remorse.
I feel remorse, though I have worked since I was thirteen and at 63 will never stop working.
I find it strange that a Spanish channel is trying to ruin the Spanish economy on purpose.
Investor confidence is incredibly important and it looks like you're pointing out all the problems the Spanish economy has on a silver platter whilst removing some important context, leaving viewers only with "Spanish government incompetent. Waste money when they not have."
It's like as if Mario Draghi during the euro crisis said "welp, the ship's going down now. Have fun" instead of the reassurance he gave the markets about how everything would be resolved.
Spain was forced to deindustrialize in favor of Germany and France to be accepted in the EU. So, either pay us or let us hace industry again. Sorry.
Just a quick reminder that after 1 year, Spain has not only collapsed but it is the country with the highest projected growth in Europe :)
I'm in Spain now, everything seems fine, people are happy, cities are bustling and beautiful, and the days are long and bright; I see no mood of impending doom here. Mas sangria por favor! 🇪🇸 🍷
That’s what’s called the calm before the storm. Pero no te preocupes si estás quedando en una buena terraza soleada con amigos y estáis llevando copas bien frías en mano 😎🍻🍷
By the time it goes sideways it's too late, banks are shut, capital controls are in place and those who aren't the ECB get wiped out. When the ECB stops buying Spanish debt and when it increases interest rates there is a potential for a tipping point and not just Spain, I think Italy is in a more precarious position. It would be prudent for people in Spain, Greece or Italy not to keep much of their wealth in the banks of those countries. They can open accounts in other EU countries and store the cash there. Germany would be my choice.
Maybe you want to say `Por Favor` rather than `Per Favor.`
@@RosencrantzJr perhaps he should , once the sangria drains out
@@niallsheehan474 You made my day.
Aún estamos esperando esta crisis
A a Brit living in Spain I have seen some major changes over the last 5 - 10 years. Doing deals (especially house sales) in black is very rare now, far more people are on work contracts and there has been a huge influx of young Latin Americans moving here. All of these things will assist tax revenues but of course the socialist government does like to offer lots of freebies!!!
That’s not the biggest problem, the energy costs that are coming will be to difficult for Spain to handle and according to the EU the EU as a whole has lost people again expect for France and Sweden because France basically fcked over the rest of Europe and used them as a political protect not a economic one why do you thing France has a lower inflation rate than every EU member? It’s because their economy is as involved in the EU
They're social democrats not socialists.
@@USandGlobal Spain is isolated from europe in terms of energy.
@@deezeed2817
Same difference as social democracy was a communist idea in origin just like fascism.
Very informative, and just the right balance of in depth detail.
Also, well presented and edited.
The main holder of Spanish debt is the European Central Bank and the money they used to buy these bonds was printed money. Hence, in case of default, the central bank will lose its investment. That will translate in less trust into the central bank and further drive down the euro. This is already happening as the neuro has been on a declining path for a few months now if not years.
So bankruptcy is actually the least damaging solution. On thé long run, the euro is doomed unless its politicians start to have sensible economic policies.
The funny thing which shows the schizo political management of the ECB: they are selling like cookies their healthy german and dutch public debt to buy the toxic spanish and italian ones...
There is new pig in town and its name is UK...
The problem here is that there's a vast number of public servants doing largely useless jobs: they can never be fired, re-purposed, or laid-off. Never.
Meanwhile, being a freelancer/entrepreneur here is madly expensive, with each freelancer paying 317 euros/month in social security alone, and that's about to go way up.
Spain could be viable IF they laid-off or re-purposed their vast army of public servants, or simply don't replace the retiring baby-boomer public servants, but there a massive bloc of voters who will never vote for that: those same public servants.
The only solution I can see is the rest of the EU bailing them out on the strict condition that the rest of the EU takes full control of Spain's fiscal system and public sector: not very likely, but at least theoretically possible.
You sound like an American 🤔
It's a problem of incentives. In Spain there are a handful of instutions that have been singing the same song for at least a decade, like the AIREF: The current financial setup is unsustainable and is hurting the country.
All kind of measures have been proposed, but in reality political parties have no obligation to do any of that. In fact they pretty much try to silence them.
We do know what's happenning, but public employees & pensioners are a big chunk of the voter base, so everything is done to keep em happy.
Mate, EU is not going to touch a thing in here, its our country. I agree with the problem you are bringing in but we fix it ourself or we dont, thats it
Remember when Greece was at 105% they said it was Armageddon for them now it seem most of the world has eclipsed this number. Before anyone responds I know diff countries can handle diff ratios but still the global rise is troubling.
Spain Portugal Italy Greece have been on life support for ever....
And now Germany and France are also joining the life support. 😊 so good. And as a Portuguese I will love to watch the next decade.
Someone with an English accent bad mouthing Spain. Is this supposed to surprise me? Why don't you talk about the financial mess in England?
They wont because they're biased; a typical British trait. They wont ever mention that the UK economy has been deteriorating fast after Brexit.
I get insulted when I say many European countries have overvalued economies. Europeans countries are screwed because of lack of natural resources and the loss of manufacturing to poorer emerging economies. The only thing that good for Europe is productive farm lands but the fertilizer and natural gas disruptions will reduce agricultural output.
Almost as if they are doing it on purpose.
@@ollydix, M, mP,
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Loss of manufacturing wich hasn't happened by accident I have witnessed the closure of hundreds of manufacturing businesses to relocate elsewhere during the last 25 years in my opinion due to not so business friendly policies here : overregulation and hypertaxation .
I thought that European manufacturing should still be better shape then American since still had luxury cars, watches, purses, wine….to sell to the emerging markets
@@johnl.7754 the big brands can weather almost everything but smaller companies (less than 500 employees) makes the biggest part of the economy and are the ones more affected.
VisualPolitik EN made a video similar to this one back in June 2020 called "Spain and the Coronavirus".
When your whole economy is based on tourism and overpriced bags it's doomed to fail .
Well, that's quite just not true, Spain has a strong primary sector with really important agricultural exports. The country also has some important industrial assembly lines and a really strong pharmaceutical industry.
overpriced bags?
@@ivandreuxzuev9473 Spain's agricultural sector is being seriously injured by global heating and there's no sign of when or if that will improve.
Tourism can not be a basement its a weak style. Tourism is not an economy forget it.
When your knowledge is based on stereotypes you're failed already.
It would be interesting a similar video about Portugal
How does, or will in the near future, Spain compare to France and Germany, who face similar demographic pressures?
I can imagine the German crash to be even worse due to their dependence on Russia, China and their reliance on exported goods; France on the other so far they’ve been better than the rest of Europe.
@@blacklighthologram5339, what I think will factor is social security reform in both Germany and France. There was mention of an intention to increase Spanish retirement funds, ... Germany, and especially France, have yet to tackle that demographic time bomb in a sustainable way
Continuing the list with China and many other countries.. The answer can only be: mass retiree poverty. Just think it through - there is no other way, even if you try.
@@Lotterboy I sometimes contemplated the scenario of mass migration of near-free young labour. There are billions of penniless third world young people who might accept low incomes (relatively) in first world economies in return for free accommodation. Many current and approaching retirees in first world countries have houses bigger than their needs. Think back 150 years in the UK, many workers were cash poor but had a sustainable support ... serfdom?
@@neilmckay8649 i personally really like the idea. However.. :).. This approach poses several challenges: 1) The migration train would have to be gender balanced, or severe social problems occur 2) Most European countries are mentally not prepared to replace part of their culture with people of an often completely different culture. Strong cultural integration would be necessary. How realistic is that? 3) It has to be qualified immigration.. Most poor world regions with 'masses willing to leave ' don't exactly provide their population with the same level of education as Europe.
But, despite all these problems: Something along these lines will probably happen - not fully replacing the declining population, but partly and thus softening retiree poverty.
Thank you for your advice
Spain defaults and the other poorer European countries will fall like Dominoes.Thats why every country should have its own currency. Different currencies allow poorer countries to compete with more prosperous ones. Another problem is that the Pensions are too generous and there are simply not enough workers to support them.
While I generally agree with your analysis, I think it is a bit naive with respect to 3 key points:
(1) The level of interest rates is not everything. To assess likelihood of a default, the debt structure in general is more important, more precisely how it is split between short and long term debt. If the lionshare of debt is of longer duration, they may well be less affected by short term rising interest rates as currently seen.
(2) The ECB is well aware of the issue, which is why they have been discussing an anti-fragmentation tool which would basically allow them to buy sovereign debt of struggling states to keep rates low, while selling debt of “stronger” states like Germany, France or Netherlands, effectively taxing these countries. Whether (or how long) they will accept that given the current context is another matter. But in that way the ECB would effectively not increase overall debt purchases as one buy cancels one sell.
(3) Cross collateralisation among nations has become a recent trend pushed by the EU and EU bureaucrats will surely advocate for that in case of struggle.
What is clear is that EU institutions have created a block of overleveraged economies with a bloated and unsustainable welfare system and EU officials will fight to keep the bloc alive since their livelihood depends on it. However the current economic context is dangerous and might well be the end of the EU and the Euro as you say.
it seems very correkt therefore diffecult to know what happen
The end of the Euro is not far away.
Like 8 years ago I was saying that Spain is doomed, nobody believed me. Let's see the bubble burst.
Now I am saying biden has doomed American
If you said it 8 years ago, you were wrong. it hasn't happened, and it may never happen.
@@perfectallycromulent When half the young population can't find jobs and the other half thinks working as a barista as a cafe is their best opportunity, Spain isn't a good place.
@@PomaReign sure it is. try looking south for your comparisons instead of north. spain is a fantastic place, in global terms.
@@PomaReign Maybe your idea of what a good place is wrong. Jobs or not young people in Spain live much better than anywhere else in Europe.
Spain has always been an economic basket case
who bites this?
This is more than a morality tale. Why did lenders (mostly banks in northern Europe) lend more to Spain than it was capable of spending properly? Were they expecting the EU to guarantee the debt? Also, why did Spain adopt the Euro (disguised Deutsche Mark)? It could no longer devalue its own currency. Spain did get some magnificent infrastructure for its money. High speed rail everywhere, for example. Spain is part of the European superstate which has to cover its poorer regions. In the US, the national government has long subsidized poorer regions, such as the Deep South.
EU and US are not the same. EU is not a federation, it could be, but ironically is mostly the politicians from those countries who oppose the idea... obviously, politicians who have no issue with burying their countries in debt to win one more round of elections would never accept a federalization of Europe, which would mean a high reduction of their own power and career opportunities.
This video is just aligned with the neoliberal propaganda of the last twenty years. Public spending is seen as the evil while in fact it is a term of the gdp. Actually all the EU countries not in the German sphere have experienced a dramatic drop in competitiveness due to the Euro.
Secondly, why should the Spanish government not borrow as much as possible when interest rates were low, allowing the country to build better infrastructures and increase productivity? All in all nobody has forecast the pandemic and the only solution is tax increases to the elderly, in terms of income tax, tax on primary goods and services and the like.
Actually the US “south” is wealthier than the northeast now
This video is irrelevant now, the economic forecast in this video failed. Now in 2024 Spain improved a lot, did better than most EU countries. I advice everyone not to waste time watching 2 years old economic vlog.
*laugths in italian
Right, how did they forget about Italy?
Yeah, even Italy wasn't doing well
Yeah and now we are most probably gonna elect a populist who will only worsen the situation
@@WolfgangBrehm this Chanel is the English version of a Spanish channel. So, they talk a lot about spai
@@Duck-wc9de Ah that explains, thank You!
1. Legalise and tax cannabas
2. Tax luxury goods ie. Cars over €25000, wines, beer and spirits over a certain value
3. Slightly increase income tax by a small amount
4. Follow Estonia and Look to reduce public jobs while making everything streamlined, efficient and digital.
5. Remove the red tape for construction. Actually allow the country to grow
Follow Estonia and reduce the tax rates as well.
Careful with that taxing the luxury goods bit. The jobs of (middle class) people employed making those goods are at stake.
Step 6: Send out the Conquistadors to search for El Dorado and bring the gold to Spain to pay for stuff.
But Estonia is not doing better. Cannabis is making people stupid, it’s a scientific fact.
I am in Spain. In the past year I've travelled all over the country. There is no industry apart from pig farms. The educational level is extremely poor. I am told people with skills leave for other EU countries. There is perpetual drought. The leadership appears to be corrupt. Spain cannot survive.
Why should they stay? to pay high taxes?
It seems that you have not traveled throughout Spain and forgot about the industry in the north that contributes most of the Spanish GDP, against all the nonsense that this propaganda channel says.
I feel that visualekonomik has just been fear mongering since they started the channel...
In Spain we’d say “Que Dios te conserve el oido, porque la vista…” Enjoy our success anyway.
Other than some if the best content, I’m loving the new dress code: black tie
Too good, wish other tv channels were as much fun to wash down the news
Go guys
For Spanish "radfems" i hope they enjoy it the most.
Default is easy and has no real consequences. Ask Argentina, which defaulted a half dozen times in the modern era and after some short term pain was back at the capital markets borrowing again. The reason this happens is that bond holders are sheep and often, due to laws, have to buy debt whether they like it or not (e.g., pension funds).
I see not just Spain, Italy and Greece defaulting, but eventually the entire G7 including the USA. Probably all debt owed by foreigners would be defaulted on in the USA, and any debt held by small holders up to say $200k per entity would be honored by the USA in the form of a new dollar, call it the Amero.
good to see Tin Tin in an economic video
Though what is stated here is true, this video lacks nuance. Castellón airport was built by the regional government not the central one. This is important as the video implies that the 2% budget surplus was wasted by the central government. Also, in line with many international forecasts, it was believed that the recession would be 'a soft landing'. Hence the central government's Keynesian public works stimulus drive (Plan E) which resulted in a large part of the budget deficit. Agregate demand is still demand. Though I do not doubt that much money was wasted and misspent, these issues are many shades of grey rather than black and white. Finally, many of Spain's problems result from being essentially a federal system which encourages duplication and waste.
I had a teacher in secondary school who moved to Spain hope she’s gonna be okay she was great
There is one factor missing in this video, that has a massive influence on the topic: inflation. If currency loses 10% of value each year, also the dept shrinks 10%. This has an impact on all the numbers discussed in this video and it's a pity that it is not taken into account at all.
Inflation also means that most people become poorer, and there is less much less money in the economy to keep businesses afloat, and peoples savings disappear.
That would be at least partially correct if we were talking about moderate inflation. However we are not. The correct term for what is actually happening is Stagflation, where you have inflation that is accompanied by a stagnant economy instead of growth. Inflation is normal and natural and wanted because it is supposed to be a byproduct of economic growth, ie a rising tide carries all boats including wages and prices. However that is not what is occurring. In this case you have rising inflation in prices that is not accompanied by inflation in wages. The inevitable byproduct of populist/socialist voters and mismanagement by politicians. There is unfortunately no way out of this short of an intense reset of the economy by massively raising interest rates, lowering public spending, and getting a more economically friendly tax scheme in place. However this is basically impossible now that debt levels have reached the levels that they have.
This is why, % of the economy, is more important, than the actual numbers. You can’t grow your way out of debt, by spending more, unproductively.
@@billpetersen298 i do the UN Part of it ok thats my Agenda.......
Hail Geneva
@@billpetersen298 yet most successful companies borrow to be successful
The Spanish economy will grow in 2022, 4.3% of GDP and it is estimated that it will grow between 1.2% to 2.1% in 2023, twice the average of the European Union despite the war. If that is a bankruptcy, then much of the world's rich countries already collapsed.
They need to get things straight with Algeria/Morocco and get the LNG flowing. They are throwing away a massive opportunity there.
Great video ! 👍😀
The US also spends a lot more than it has earned. That's why it has a deficit and booming debt crisis. The also prefers to defer whatever problems it has and pretend that it does not exist. The US too is a nation that has dodged all of its obstacles and has indebted its future generations. Just because Spain is the "most vulnerable Western nation, thanks to following the US lead, they're al in the same boat and that boat is taking on water.
US is quite different as the US Dollar is the world currency
The triffin dilemma means the US can’t solve its problems without making everyone else’s worse which has the potential to make the US problems much worse still.
The US issues its own currency, Spain does not. The situation is more akin to a US state going bankrupt.
The US has to structurally run a deficit due to it being the reserve currency in order to provide liquidity to the world. Read “Triffins dilemma”
Super interested in that second video happening. :D
What of Italy, or France ? Those 2 economies are even bigger than Spain’s, so if those 3 fail, the Euro is doomed.. well done UK (Brexit), got out of the EU, in the nick of time !!
That,s the brexiter hotest dream .it won.t gonna hapens
This Is Not Economic, It's Ideology...
I knew it was bad, but not on this scale. I googled "is XXX€ salary is good in spain?" And it said "any salary is good in spain" made me giggle
Yeah, young people often earn €1000-€1200 a month after tax. The average age to leave home is 30 or maybe even 31 now! And that's also one reason why the birth rate is incredibly low - young people can't even afford to support themselves let alone a baby. Instead of fixing this problem the government just imports people from abroad.
The very poor people can only get part time jobs that pay 500-900$ a month
Nice video! I don’t have detailed stats but, in essence, same situation in Italy
Spain is weak ever since their empire collapsed. Despite the problems Mexico has its better for doing anything except security. Nowadays you see a lot of Spanish and Argentinians moving to Mexico.
Spain rank is 27 in human development index, Mexico is 86
I could continue making comparisons, but it is too absurd to compare a developed country with a developing one, it is a waste of time
And mexicans movibg to Spain..students and rich people searching security..you don,t have.
What kind a country could be one Who citizens need to wear pistols or bodegueros in their cars to feel them safety..and what about corrupción.. mexicans Police picking money from anyone.
No man..the only spanish Who move to México are the ones Who work in spanish companies there
Seems like the wealthy European countries who never joined, left, or maintained their national currency may dodge a huge bullet. So perhaps Brexit was not so bad! Norway and Switzerland would not be affected that much and the Nordic countries Sweden and Denmark who are part of the EU but do not use the Euro can escape however Denmark needs to stop pegging their currency to the Euro. Finland should have never adopted the Euro and should have opted out just like it’s Nordic neighbors that are part of the Union!
The euro should have been without the southern countries italy, france, spain and greece
The EU members who do not use the Euro are still bound to it through the European Exchange Rate Mechanism II (like Denmark), or have agreed to an obligation to join the Eurozone (like Sweden).
@@Andreas_42 Denmark 🇩🇰 is stubborn with its peg policy! They should have learned from Switzerland 🇨🇭 that formerly pegged their francs to Euro but decided to free float when the last euro crisis happened in 2008. Being a money oriented country I was surprised Switzerland would peg their currency in the first place since their currency was already considered hard and reputable even as a free floater and it’s much more expensive to peg but since they had a lot of foreign reserves I guess they thought they could afford to do so! Sweden 🇸🇪 like the Czechia 🇨🇿 meet the economic qualifications to adopt the euro but are pushing off some other requirements and stalling through national referendums to postpone using the euro!
@@JeroenBIG well it was kind of Germany’s fault since they felt using a single currency would make imports from these countries cheaper since they would have to pay an exchange rate fee for each transaction if each country used their own currency! Also the Germans didn’t want to accept payment of other national currencies when it came to exports and loans since they were less stable so they felt using a singular currency would avoid these risks but it was a bigger risk that they didn’t even take into consideration. Sometimes being cheap is not alway wise!
@@jon6309 Greetings from Switzerland 🙂
Denkmark is not stubborn, it is bound by the ERM II to keep its currency in an agreed upon convert range to the Euro. They are the only EU member state with a permanent opt-out option to join the Eurozone, but their national currency is nonetheless tied to the Euro.
Switzerland is not part of the EU and ERM II and therefore not bound by treaties or agreements to a more or less fixed conversion rate. But my home country has an interest in a stable conversion rate, since most of Switzerlands goods and services exports go to neighboring countries. The decision made by the Swiss National Bank to go free float in 2015 was a shock for the exporting companies, since their goods and services became about 20% more expensive in the Eurozone in the whim of the moment. Luckily most of these companies were able to adept to the new situation and stay competitive.
The stalling of Sweden and the Czech Republic to adopt the Euro is tolerated by the European Council (EC) for now. The obligation still exists, and at some point in the future the EC will most likely increase political pressure to fullfill the obligation. Far less likely, but still a possibility, would be the EC taking action and start proceedings for a breach of contract against those member states. But I daubt they would go these route without a very strong political backup from the Council of Ministers of the EU.
Do you guys never get tired of delivering failed dooming predictions?
Of course it doesn't help either that the country is hotter than ever before, in a drought and having lots of wildfires! I used to envy Europeans and now I suspect they will be envying America in the future.
Be sure of that.
nobody is envying America with your senile president Brandon
Nah
They will envy Russia instead.
This video is so agressive towards spain for the wrong reasons, using the same regurgitated retoric of right wing british media. Well have a look at your own debt lol! Plenty more countries to go bankrupt before Spain, specially those touched by china's debt traps or in serious economic downturns. In Spain in the early 2000s we lived through the same bubble the US, UK and Germany had, only ours was much bigger and fueled massively by laws promoting inefficient construction projects and megaprojects of various kinds. The result? We suffered more, and we payed more for it. There was no culture of spenditure from the common lowman, just trash leadership of both parties
The situation now is completely different. One could easily argue Spain is making way less political-economic mistakes than the UK, which is blindly throwing herself into conflict with US/EU over NI
The title is so clickbaity and the first 8 min are spent dwelling on past mistakes. It's like talking about Germany's current situation and pulling up WWI reparations in the same video
Extremely inaccurate prediction
Total rubbish. The presenter doesn't have a clue. Or is just jealous.
Spain and the rest of Southern Europe have been outperforming and leading the growth in the last years. Mediterranean Momentum
The taxes are already insanely high, especially in Catalonia, how the hell would they raise them even more?!
Taxes in Spain are not high. Check out Belgium or Germany.
@@hellomycating but they earn more there. Due to the diminishing marginal utility of money its very different to pay 40% tax on 80k than on 25k
It's just sad. Spain will always be a messed up country. Seems 2008 was not enough for us
No te creas todas esta mierdas, estos son canales de propaganda pagados por intereses de multinacionales que lo único que buscan es cambiar los gobiernos por otros más favorables a sus intereses. España no está en bancarota, ni mucho menos.
Blaming Spain for the end of the Euro is like blaming Japan for the end of Basel III fiat currency system . . . NO. That's wrong. The Euro, like the Basel III fiat currency system, drove itself to catastrophe all on its own and not through the misdeeds of one of its members. Stop trying to scapegoat the runt. The entire litter is to blame.
Correct .
Spain's debt crisis will not lead to a Euro collapse since 40% of the debt is owned by the central bank it will either postpone payment or just forgive the debt altogether.
Yeah that’s right it’s from the magic money tree, the central bank can just keep printing money, buying the nations debts and then right it off. Why didn’t Adam’s think of that the clown, called himself an economist and he didn’t think of that simple slight of hand to keep the good times rolling. Abundance for all forever, yippee, you have solved it.
@@dalane5196 Yep, I did. The EU will accept inflation if that's the price required to keep the Euro system intact. Watch and see.
@@mikeearussi Also it is geopolitical. If the EU falls the US falls so no no will not happen.
Same trash the politicians tell their people in Britain. Britain will not default, no matter how high the debt But as usual some push for the propaganda of age old economics that is not even thought anymore because it favors some people.
That is the beauty of Bretton Woods. The debt is secured by the western economies and armies. Good luck collecting the debt.
Should make same type of video for USA debt...
@@Raulsta1985 y nunca esa deuda se pagará....ni la de Japón, uk, Italia, China, etc...
Finland just announced the next government budget plan.
It sounds like Finland is going to take on a lot more debt.
And the The energy in Finland is limited and more expensive in this winter.
What's going to happen to The Future Of Finland?
Just ask sanna marin 😋
@@jamalaziz5021 she is attending a party now so she is busy 🤣🤣
(Just kidding)
Finland is toast.
@@yurichtube1162 What's your basis on this?
@@Aidan_AuDemografian takia ainut tuottava investointi kohde tulee olemaan hautauspalvelut. Suurimmat julkiset kustannukset liittyy myös vanhuuteen ja ne kasvavat vielä pitkälle tulevaisuuteen. Eletään sitä eläkepommia, mistä on varoiteltu joku 20 vuotta. Kukaan ei tehnyt mitään, vaikka eläkeikää olisi pitänyt nostaa nyt eläkkeelle jäävillä eikä vain nuorilla, joilla se on ~70v. 64v eläkkeelle synnyinvuodella 57. Todennäköisesti hän elää vielä ~20v eli 20v ilman työntekoa. Sotea märehdittiin myös 20v ja nyt se vasta saatiin runnottua lävitse, kun kriisi on jo päällä. Kuten näkyy säästöt perustuvat palvelujen saatavuuden heikentämiseen eli heikommat kauempana kaupungeista sitten menehtyvät helpommin.
Ulkomaalaisista huippuosaajista on turha haaveilla, kun eläke maksuihin menee 25% palkasta ja veroprosentit ovat muutenkin kovat. Palkat ovat ennestään pienemmät kuin verrokki maissa ja näyttää siltä, että niitä yritetään pienentää entisestään. Joten maahanmuuttaja mitä luultavimmin valitsee mieluummin vaikka Ruotsin tai Saksan.
Kuka investoi maahan, jossa vuonna 2060 kuolee 700 000 enemmän kuin syntyy? Sitä ennen kaikki nyt olevat systeemit tulevat entisestään keskittymään enemmän vanhuksiin ja suuri osa palveluista yksityistetään. Moni muu Euroopan maa kärsii ihan samasta ongelmasta, kuten Italia. Italia tosin ei ole yrittänyt kovasti estää maahanmuuttoa ja kieli on helpompi oppia. Joko Suomi luopuu kielivaatimuksista tai paikka ei houkuttele ja maahanmuuttajien on vaikea työllistyä.
with pensioners making such a high percentage of voters, it would be impossible to change course unless Spain gets out of the Euro
Dammit guys. I hate cliffhangers.
Wow a year on and I am afraid you really hit It on the nail.
What countries saved themselves in 2008 by printing money like crazy..... QE1, 2 & 3 ?
Good work fellas!
2024 and still waiting for the doomsday. 😂😂
Looking dapper 😎
What about UK?
This video has aged like milk 😂
The West, the U.S., UK, EU, plus Japan, China are doomed because of demographics and debt. Wish I could say So long and thanks for all the fish but I’m stuck here.
this can apply to any year. american tourists will save the day.
There is no reason for these countries to improve as the ECB can't let them fail , an infinite loop until the ECB is unable to assist the euro collapses and takes the EU with it
The gambling addict analogy is most apt. They are just one more tranche of borrowings away from a run away success economy. Its just been an unlucky streak. Most countries are not far behind the Club Med. countries so we cannot be smug.
7:17 Quite the echo!
Spains economy like Italy and so on are still set up to inflate their way out of debt via their currency. That became impossible with the euro. So either adjust how the euro works or step out and go back to the old spanish currency.
It would mean exit from EU, and they cannot afford it. Even britain is in ruins now, which was a DONOR to EU. Spain is a recipient. What would happen if they quit ? Turmoil and chaos
@@Robis9267
The problem with most developed countries is that they all want to have the social services like those in Luxembourg, Germany, Singapore,.... but they forget that they aren't wealthy enough to sustainably afford it ESPECIALLY the ones with huge populations. Solution? The politicians need votes and enslaving future generations is such a wonderful strategy.
If you fight to grow the economy, if you fight for entrepreneurs, you will get tons of money to spoil the entire population. Sadly, fighting for entrepreneurs is often seen as being some sort of "rich people b***h" and no one wants to be called that at the election debates.
Is there any country not collapsing according to Visual Politik?
The US, England, Australia, Canada, basically any Anglo country they are total pro Anglo
@@chinglee100 😂
Bro can you please do a similar video on india as it is at present. The media here is owned by politicians.
India doing fine in this world ,, +7% growth here in India gdp ,,, indian house hold saving is boon in india ,,27% house hold saving in india ,, we have enough food ,, only things we need successful make in india program ...all other things are running in all mannar ,,,
Where do you think he'll collect information to make video?
I mean Italy, UK and US are in similar situations.
Italy yes, Uk and Us no. Salaries here are 46%of the salaries in the UK with cost of living that is 30% lower and 13% unemployment. In sumary w get payed 54% less and spend 30% and have much more unemployment.
It’s often strange that Southern Europe explained as bad economies. Italy Spain Portugal and Greece are on the news for malfunctioning. What about Northern Europe they don’t have sick economy or Uncle Sam Bailouts them .
But they do have Uncle Sam's military protection.
‘’Courage taught me no matter how bad a crisis gets ... any sound investment will eventually pay off."
We will sell more drugs to Europe Spain is fine... South American helps us a lot with that and yes making illegal money legal that's a great way of improving life probably. 😂
Just about the smartest Bartender on RUclips