Let’s start with politics. I guess it’s less known abroad, but it’s probably more important than the economic situation. First the government. Forget about the past. Let’s start by the end. Today August 2nd 2011, one of the more complex days from an economic point of view for the hole world. Every stock market falling through like a knife in the butter. Spanish bonds at what lots of people understand as intervention level (400 basis points over German debt). This guy was planning to take a few days off. He announces he’s considering postponing those days…
… and at the end of the day he decides to leave on holidays.
Somebody just at the level of the common sense would have either not announce the postponing (considering that to postpone would be alarming for the people in the country, and that could lead to something worse like a bank run), either he would stay. What not many people would do is announce to stay but leave.
This is just an example. But we could explain he negated there was crisis up to June 2008, and he announced recovery later that year. He continued spending money we didn’t have for a couple of years. And many other things. We could even explain this government negotiated with terrorists, apparently offering political concessions to the terrorists in exchange of stop murdering.
This is the government. But the other main political party is not better.
First published here