by Russell D. Longcore
Catalonia is not serious about secession.
In a recent Time Magazine Online Article, The northeastern Spanish territory of Catalonia is once again threatening to secede from the nation of Spain. Catalonia is the most wealthy area of Spain. but is also under the heaviest debt load.
Catalonia and the Basque territory of northeastern Spain are long known for their desire to be independent. And they have long been denied their liberty.
Catalonia is basically saying to the government of Spain, “We’ve spent more than we earn, and we can’t service our debt. So you need to lend us more money so we can make our payments.”
Sounds familiar, doesn’t it? It’s the same song the rest of the world is singing. And when I say “the rest of the world,” I mean the West. China…a creditor nation, is buying up gold and mining gold as fast as they can.
Any fifth grade homeschooler…not government school kids…knows that you are in trouble if you are using one credit card to pay the minimum interest payments on the rest of your credit cards.
Let’s take Catalonia’s threat to its logical conclusion. The Madrid government tells them to take a hike. Then what? Even if the national government allowed them to secede without armed intervention…what is Catalonia going to do?
Are they not still indebted? What about that? The choices are (a) default and tell the creditors to pound sand, or (b) keep paying their debt service. Now, if they were not sending tons of money to Madrid, they might be able to make their payments.
And what money are the Catalans going to use? The Euro? Are they going to create their own money? What would that be? Any money not 100% backed by gold and silver is fiat money, and they are right back in financial trouble again.
Nope. I’m throwing the bullshit flag on Catalonia. All they are trying to do is extort money from the rest of Spain and the European Central Bank.
Secession is the hope for humanity. Who will be first?
DumpDC. Six Letters That Can Change History.
© Copyright 2012, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.