The Euro Doom Scenario Starts With What’s Happening In Spain Right Now
The Automatic Earth
May 21, 2011
Back In February, I saw a Dutch docudrama, entitled 2011: The Year the Euro Falls (Sorry, no English version available as far as I can see). It’s nicely made, with cameos for many -prominent- Dutch politicians, newscasters and media pundits, and based on a screenplay by the former financial expert for Holland’s Greens, Groen Links (‘links’ means left), Kees Vendrik. It paints -potential, and more or less fictional- developments in Europe in 2011.
First: Spain falls in summer. Spanish bonds are dumped, interest rates on them rise to 9%. Seemingly endless EU/IMF negotiations follow. This is not Greece or Ireland, after all (?!). These negotiations end in a deal, against a background of large-scale protests across Europe, not the least of which take place in the rich EU nations, where people are sick of bailing out the poorer periphery.