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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Spanish rates

Posted by WARREN MOSLER on March 22nd, 2012

LTRO’s and bank liquidity not withstanding, Spanish rates reversed and began moving higher immediately after they thumbed their noses at the markets and announced they had decided not to take additional austerity measures to meet their immediate deficit targets.

Not being the issuer of the euro, like all the euro member nations, they are fully exposed to a Greek like liquidity crisis, as they can not spend without prior funding, much like the US states.

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3 Responses to “Spanish rates”

  1. Unforgiven Says:

    Fund domestically with PassEuro tax credits.

    Also, Pesetas are coming out of the woodwork in some towns:

    http://www.time.com/time/world/article/0,8599,2057949,00.html

    Reply

  2. Jacob Goense Says:

    You should have seen their rates when they were still the peseta issuer.

    Reply

    WARREN MOSLER Reply:

    yes, much higher, and never a funding issue

    Reply

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