Tag Archives: Spain’s economy

Obama Chasing Spain’s Failure

Just last year Obama was telling America how “green” energy technology was the guaranteed pathway to energy security and independence:

“The future is here. We are poised to transform the ways we power our homes and our cars and our businesses”.

He said America risked falling behind the rest of the world in the design, production and implementation of renewable or “green” technology.  The nation he most often cited as the example for America’s green energy development to follow was Spain.

http://www.youtube.com/watch?v=t3UebL-x-sw

Spain announced on April 7, 2012 that they would halt all new renewable energy and co-generation projects.  Spain’s unemployment is running at more than 24%.  Every job created in Spain’s “green” energy sector cost 2.2 private sector jobs.

As recently as January, Spain’s Prime Minister Mariano Rajoy was making the campaign promise that he would not raise taxes.  This week he admitted that there would be a new Spanish VAT hike ranging between 18% and 21% and that budgets for local communities would have to be slashed.

“I said I would lower taxes and I am actually raising them. Circumstances change and I have to adapt to them.  The excesses of the past are being paid for right now” Rajoy said.

Thousands of people joined in a protest and marched in Madrid to support miners, who have been fighting against major cuts to industry subsidies.   Protesters supporting the miners threw objects at riot police, including fireworks, bottles and stones.  Police officers charged demonstrators and fired rubber bullets.  Five people were arrested and three people suffered minor injuries.

That is Obama’s grand vision for America?

Since Obama took office in January 2009, five million “green” jobs were promised, and as of 2010 225,000 had been created.  80% of the green loans, loan guarantees, and grants given out by Department of Energy went to Obama backers:

•SunPower, after receiving $1.5 billion from DOE, is reorganizing, cutting jobs.

•First Solar, after receiving $1.46 billion from DOE, is reorganizing, cutting jobs.

•Solyndra, after receiving $535 million from DOE, filed for bankruptcy protection.

•Ener1, after receiving $118.5 million from DOE, filed for bankruptcy protection.

•Evergreen Solar, after receiving millions of dollars from the state of Massachusetts, filed for bankruptcy protection.

•SpectraWatt, backed by Intel and Goldman Sachs, filed for bankruptcy protection.

•Beacon Power, after receiving $43 million from DOE, filed for bankruptcy protection.

•Abound Solar, after receiving $400 million from DOE, filed for bankruptcy protection.

•Amonix, after receiving $5.9 million from DOE, filed for bankruptcy protection.

•Babcock & Brown (an Australian company), after receiving $178 million from DOE, filed for bankruptcy protection.

•A123 Systems, after receiving $279 million from DOE, shipped some bad batteries and is barely operating. It cut jobs.

•Solar Trust for America, after receiving a $2.1-billion loan guarantee from DOE, filed for bankruptcy protection.

•Nevada Geothermal, after receiving $98.5 million from DOE, warns of potential defaults in new SEC filings.

That is only a partial list.

If this all sounds eerily familiar, it should.

Especially the part about how an elected politician is breaking a campaign promise to not raise taxes.  Obama said he would lower taxes and is actually raising them.   He will claim that circumstances change and American have to adapt to them.

One similarity is inescapable.  The excesses of the past are going to have to be paid.  Thanks to the failed presidency of Obama, those excesses have grown disproportionately larger.

http://mjfellright.wordpress.com/2012/07/12/obama-chases-spains-failure/

EU Unemployment: Ouch!

europe 2008 rebecca 245

European unemployment for May reached 11.1% making it the highest ever for a single currency area. Nearly, one in four adults in Spain is now unemployed but for the under 25 age group a critical 52% in Spain and Greece are unable to find work.  In total, 17.6 million people were out of work in the Eurozone in May, up 88,000 from April and 1.8 million more than 2011.

The Eurozone banks are expected to make interest rate cuts this week in an effort to improve a hemorrhaging economy.  However, confidence in the European economy continues to drop as all countries experience higher unemployment levels, except for Germany (5.6% and the under 25’s at 7.9%). Recently even German markets have experienced an economic slowdown.

One has to wonder how long the Germans will work to pay for and bail out the rest of the European Union.

 

 

Europe Won’t Work in America

Spain’s economy is under such duress that the country is prepared to request a 40 billion Euro cash injection from the Euro zone this weekend. The request comes after Fitch Ratings reduced Spain’s credit by three notches on Thursday. This move will make Spain the fourth country to need a bailout since the European debt crisis began. The Spanish banking sector’s weakness and contagion from Greece’s debt crisis have put Spain’s economy in such a precarious position that the International Monetary Fund reported a need for 90 billion Euros to entirely cleanse Spain’s banking sector.

Much has been said about the problems of Greece and how those problems will impact the Eurozone. However, the size of Spain’s economy is over four times that of Greece’s. Spain’s 11.5% share of the Euro zone’s GDP has a far greater impact on European finances than does Greece’s 2.5%.

What the world is witnessing is the collapse of the European socialist economic model; the failure of government dependency. As more people become dependent on government, fewer people are left to pay the cost.

But it goes beyond simply spending other people’s money. The socialist entitlement mentality makes people less productive. As more and more people become less and less productive, an ever-smaller minority of productive people become responsible for shouldering the burdens of a completely lopsided, unfair system. When a tiny number of productive people are required to deprive themselves of the fruits of their own labor in order to finance the lives of the remaining population, where is the incentive for them to produce?

If that is not enough, reliance on a big government nanny state makes people less responsible for themselves, less self-reliant. That is the antithesis of the American way of life.

When European settlers colonized the New World, they left the security of Europe behind in favor of North America’s unknown wilderness. They left homes, family, friends and country behind in exchange for an opportunity to build better lives for themselves. They were freed from the constraints of Europe’s restrictive class system. They openly rejected the European way by leaving.

When the British Monarchy deemed to re-impose that system on Britain’s thirteen North American Colonies, that attempt was adamantly and thoroughly rejected. Hence the Declaration of Independence, the American Revolution and the founding of the United States of America.

When America’s pioneers ventured west to traverse the Great Plains and cross the Rocky Mountains they were completely self reliant. They took care of themselves. They didn’t have, want, or need a big nanny state government to take care of them from cradle to grave.

This is the stuff of which America is made.

Because it gives them control over “the masses”, “progressives” have long sought to fashion America after the European socialist model, to make Americans more government dependent. There was FDR with the New Deal and Social Security. LBJ gave America the Great Society, Welfare Programs and Medicare. Now obama forces upon an unwilling America the crown jewel of European style socialism; government controlled medicine.

Every time obama holds a press conference he sounds exactly the way he has always sounded: he inherited the worst economic crisis since the Great Depression. his policies are working, but need more time. Congress needs to quit stalling and enact more of his policies. The private sector is doing fine but to grow the economy government needs to spend more money to create more government jobs at the state and local level.

Coming as it does on the heels of the Wisconsin recall election, where such policies were rejected, this shows precisely how out of touch obama is with the private sector, how the economy works, American history and the nature of America’s people…and with reality.

Europe won’t work in America. Neither will an out of touch narcissist who insists on imposing a long rejected European system upon America.

obama, you are fired.

http://mjfellright.wordpress.com/2012/06/08/europe-wont-work-in-america/