Friday, January 27, 2012

Treasures from the threads - Number 71 "Spanish debts in Portugal".

The following comment was to an article in this morning's Daily Telegraph, by Ambrose Evans-Pritchard, on the impossibility of Portugal surviving its present debt position, linked here:
Today 04:20 AM
Portugal has a population of 10.6 million people (of which probably only about half are economically active) and owes Euro 286 billion. There's simply no way they can trade themselves out of that position, sell assets or write more debt. Defaulting is inevitable. Currently nearly one third of that debt is owed to Spain.

The unemployment rate is Spain is over 21% and there has to be serious doubts they could sustain a Portugese default to them of Euro 100 billion. The whole pack of cards is destined to come down. It's not if, it's when.



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