Spanish Unemployment Soars By Most Since Lehman, Hits "Astronomical" 23.3%

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    Jan 15, 2012 7:59 AM GMT
    http://www.zerohedge.com/news/q4-spanish-unemployment-soars-most-lehman-hits-astronomical-233

    For anyone convinced that yesterday's S&P two notch downgrade of Spain to A is the last one for a while, we have some bad news: in Q4 Spanish unemployment soared by the most since the Lehman collapse, hitting what new PM Mariano Rajoy called an "astronomical" 5.4 million. This compares to 4.978 million people unemployed at the end of Q3 2011. Since the official number is not yet public and will be released on January 27 we will take his word for it. In which case it becomes clear that in Q4 the Spanish economy experienced a Lehman-like collapse, losing more than 400K people, or the most since the bankruptcy of Lehman brothers. In percentage terms this means that Spanish unemployment rose by a ridiculous 2%, or from 21.5% to 23.3%, in one quarter! And since Spain is a country of the Keynesian persuasion, we can only assume the number includes a whole bunch of meaningless birth/death and seasonal adjustments, but we'll leave it at that. Incidentally, it means that by the time the mean reversion exercise, with cost-cutting and what not is complete, Spanish unemployment will be well north of 30%, and 2 out of 3 people aged between 16 and 25 will be out of a job, if ot more. It also begs the question just what the real unemployment picture in the US, which lately has put the Chinese Department of Truth to shame, would be if reported on a realistic, unadjusted, and not "workforce contracted" basis. The chart below shows you everything you need to know.
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    Jan 15, 2012 10:18 AM GMT
    So two years of austerity measures have led to record unemployment?

    What is his point?
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    Jan 15, 2012 4:09 PM GMT
    Christian73 saidSo two years of austerity measures have led to record unemployment?

    What is his point?


    oh you must have mistakenly missed their attempts at stimulus.
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    Jan 15, 2012 4:20 PM GMT
    riddler78 said
    Christian73 saidSo two years of austerity measures have led to record unemployment?

    What is his point?


    oh you must have mistakenly missed their attempts at stimulus.


    No but that was nearly 3 years ago and it's been the austerity train ever since with the predictable results...
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    Jan 15, 2012 8:45 PM GMT
    Christian73 said
    riddler78 said
    Christian73 saidSo two years of austerity measures have led to record unemployment?

    What is his point?


    oh you must have mistakenly missed their attempts at stimulus.


    No but that was nearly 3 years ago and it's been the austerity train ever since with the predictable results...


    Oh I guess then you missed the part that the public sector got too large to finance any longer and are unable to pay for it any longer - what's worse they refuse to really deal with the situation and live within their means and now fewer and fewer people are willing to lend to them.

    Oh the costs of the liberal dream.
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    Jan 15, 2012 8:46 PM GMT
    And this is why I haven't regretted giving up my Spanish citizenship...
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    Jan 15, 2012 8:49 PM GMT
    pocketnico saidAnd this is why I haven't regretted giving up my Spanish citizenship...


    Especially considering the solution of those like Christian would be to ignore the fact that the liberal spending on government bureaucracy is entirely unsustainable and spend more in the name of stimulus and further indebt Spaniards.
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    Jan 15, 2012 8:50 PM GMT
    I hope Germany doesn't mind the high influx of Spaniards over the next few years, lol. Perhaps they can tolerate them more than they can Turks and Russians?
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    Jan 15, 2012 10:29 PM GMT
    riddler78 said
    Christian73 said
    riddler78 said
    Christian73 saidSo two years of austerity measures have led to record unemployment?

    What is his point?


    oh you must have mistakenly missed their attempts at stimulus.


    No but that was nearly 3 years ago and it's been the austerity train ever since with the predictable results...


    Oh I guess then you missed the part that the public sector got too large to finance any longer and are unable to pay for it any longer - what's worse they refuse to really deal with the situation and live within their means and now fewer and fewer people are willing to lend to them.

    Oh the costs of the liberal dream.


    Ah... more pro-Chicago school fiction. Do you ever give up? Even in the face of obvious results that austerity isn't working?

    It's not working at all in Europe and it's certainly not working in the US. Instead, we're slugging along, despite historically low tax rates, Obama cutting regulation by 5% and record corporate profits.
  • xher

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    Jan 15, 2012 10:38 PM GMT
    This shouldn't be about conservatives and liberals. Spain and much of the rest of Europe is inherently incompetent. This is just a long overdue correction.
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    Jan 16, 2012 3:00 AM GMT
    Christian73 said
    riddler78 said
    Christian73 said
    riddler78 said
    Christian73 saidSo two years of austerity measures have led to record unemployment?

    What is his point?


    oh you must have mistakenly missed their attempts at stimulus.


    No but that was nearly 3 years ago and it's been the austerity train ever since with the predictable results...


    Oh I guess then you missed the part that the public sector got too large to finance any longer and are unable to pay for it any longer - what's worse they refuse to really deal with the situation and live within their means and now fewer and fewer people are willing to lend to them.

    Oh the costs of the liberal dream.


    Ah... more pro-Chicago school fiction. Do you ever give up? Even in the face of obvious results that austerity isn't working?

    It's not working at all in Europe and it's certainly not working in the US. Instead, we're slugging along, despite historically low tax rates, Obama cutting regulation by 5% and record corporate profits.


    Lol - wow - you really are married to this idea that spending solves everything aren't you? Historically low tax rates? Depends how historical you get and whether or not you actually look at effective tax rates. The only one who seems to read fiction here is you.
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    Jan 16, 2012 3:05 AM GMT
    riddler78 said
    Christian73 said
    riddler78 said
    Christian73 said
    riddler78 said
    Christian73 saidSo two years of austerity measures have led to record unemployment?

    What is his point?


    oh you must have mistakenly missed their attempts at stimulus.


    No but that was nearly 3 years ago and it's been the austerity train ever since with the predictable results...


    Oh I guess then you missed the part that the public sector got too large to finance any longer and are unable to pay for it any longer - what's worse they refuse to really deal with the situation and live within their means and now fewer and fewer people are willing to lend to them.

    Oh the costs of the liberal dream.


    Ah... more pro-Chicago school fiction. Do you ever give up? Even in the face of obvious results that austerity isn't working?

    It's not working at all in Europe and it's certainly not working in the US. Instead, we're slugging along, despite historically low tax rates, Obama cutting regulation by 5% and record corporate profits.


    Lol - wow - you really are married to this idea that spending solves everything aren't you? Historically low tax rates? Depends how historical you get and whether or not you actually look at effective tax rates. The only one who seems to read fiction here is you.


    I'm not pro-spending or anti-cuts. It all depends on what the money is being spent on or who it's being cut from. But the idea that taxation is preventing jobs creation or investment in the US is laughable.

    Is an effective tax rate of zero to high? How about all those sweetheart tax deals where they government pays the oil companies to drill? Is that too high?
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    Jan 16, 2012 3:23 AM GMT
    Christian73 said
    riddler78 said
    Christian73 said
    riddler78 said
    Christian73 said
    riddler78 said
    Christian73 saidSo two years of austerity measures have led to record unemployment?

    What is his point?


    oh you must have mistakenly missed their attempts at stimulus.


    No but that was nearly 3 years ago and it's been the austerity train ever since with the predictable results...


    Oh I guess then you missed the part that the public sector got too large to finance any longer and are unable to pay for it any longer - what's worse they refuse to really deal with the situation and live within their means and now fewer and fewer people are willing to lend to them.

    Oh the costs of the liberal dream.


    Ah... more pro-Chicago school fiction. Do you ever give up? Even in the face of obvious results that austerity isn't working?

    It's not working at all in Europe and it's certainly not working in the US. Instead, we're slugging along, despite historically low tax rates, Obama cutting regulation by 5% and record corporate profits.


    Lol - wow - you really are married to this idea that spending solves everything aren't you? Historically low tax rates? Depends how historical you get and whether or not you actually look at effective tax rates. The only one who seems to read fiction here is you.


    I'm not pro-spending or anti-cuts. It all depends on what the money is being spent on or who it's being cut from. But the idea that taxation is preventing jobs creation or investment in the US is laughable.

    Is an effective tax rate of zero to high? How about all those sweetheart tax deals where they government pays the oil companies to drill? Is that too high?


    You and I both know ultimately it's more than a benefit to the federal government on oil taxes given that they ultimately tax the consumer. I agree that the subsidies should be removed for oil companies - but as they should be as well for these unsustainable and failing greentech firms with resources being allocated more efficiently to things like natural gas as a compromise and intermediary fuel to either nuclear or some variant of solar.

    You've always been consistently on the side of those who want to spend including the unions and the outsized pensions they negotiated with politicians with whom they paid off. As for historically high rates?

    Wrong:
    spending_and_revenue.png

    What's truly laughable is that you believe that stimulus has been successful.