Brahmason's Blog

As papers both in english and spanish publish today , spanish banks have apparently managed to hide 80.000.000.000 € in credits to real estate promotors .

Spain ( polititians , economists , banks and investors ) continue to believe that the only way to recovery lays in distorting reality .

Through all this turmoil on accounting both the government and the oposition forget what is more important to the country’s economy , which is the impossibility to recover growth unless the old saturated economic model based on housing speculation with very cheap labour mainly imported , will be changed by a modern model based in industry and services incorporating high added value solutions with low raw material and energy consumption .

This is the real problem because a new generation of polititians , economists and enterprisers are necessary for such a project , which inevitably would require a tax system scheme totally different than what we have .

The absence of such a model is forcing all engineers in new technologies with good professional bacground to fleed Spain in search for jobs in Europe and the USA more in accordance whith what they are prepared to perform .

Thi is paving the way for a society with yet a lower purchase power ( already 60 % are on salaries below 1000 € ) which will need many years before it justifies important foreign investments in the country .

If Spain tries to grow at a speed of 2 % the stangflationist model of the economy will need an inflation of around 5.5 % which of course is impossible to accept by european parteners because it would take us back to a never stop growing debt and deficits .

Brahmason