Spanish Debt Understated?

[jclay2]

Hey guys, I was hoping rpf could help me with this. I have been trying to find sources on the net to see what the current Debt/GDP for spain is. From multiple "official" sources, it appears to me that the number is around 53% or so. Now their deficit/gdp is somewhere around 10%. The one question I have is are the spanish regions included in these deficit figures? If they were, what would adjusted numbers be? Right now, their situation according to the official story doesn't sound so horrible, relatively of course. Any sources on this would be appreciated. Thanks.

[Seraphim]

Hey guys, I was hoping rpf could help me with this. I have been trying to find sources on the net to see what the current Debt/GDP for spain is. From multiple "official" sources, it appears to me that the number is around 53% or so. Now their deficit/gdp is somewhere around 10%. The one question I have is are the spanish regions included in these deficit figures? If they were, what would adjusted numbers be? Right now, their situation according to the official story doesn't sound so horrible, relatively of course. Any sources on this would be appreciated. Thanks.

The largest problem for Spain is not that their debt burden is really bad, but that they are a service economy. The life blood of that economy is tourism and services. If things fall apart it can and will derail very quickly because per capita they simply do not produce enough.

[Stary Hickory]

The debt is ALWAYS understated just like the projected growth rates are always overstated. The government does what the government does best, lie and deceive.

[nbruno322]

The debt is ALWAYS understated just like the projected growth rates are always overstated. The government does what the government does best, lie and deceive.

http://grrrgraphics.com/data/images1/bernanke_wizard_of_debt.jpg

[hugolp]

The real problem with Spain is the size. Greece and Ireland are in worse position as a percentage, but our size makes us a very big expensive rescue. One that even Germany is not willing to do.

My opinion is that Germany will rescue us mainly through the ECB, but it will impose strong mesures on our spending so the bill is cheaper.

[Travlyr]

http://grrrgraphics.com/data/images1/bernanke_wizard_of_debt.jpg


Wow! :D Perfect Cartoon!

Nice job Ben Garrison. L. Frank Baum hid the truth in plain sight. The men behind the curtain are powerless when exposed for the frauds that they are.

[Jeez]

The real problem with Spain is the size. Greece and Ireland are in worse position as a percentage, but our size makes us a very big expensive rescue. One that even Germany is not willing to do.

My opinion is that Germany will rescue us mainly through the ECB, but it will impose strong mesures on our spending so the bill is cheaper.

Strength of German economy never ceases to amaze me they unemployment rate has actually gown down over the years and they are still strong as ever when it comes to manufacturing.

[StilesBC]

Ireland's debt/gdp was "reasonable" as well. Until, that is, they were "required" to bail out their financial sector - which was disproportionately large for the size of its economy.

If you add Spain's regional and financial debts to their federal debts, they are indeed teetering on the brink of disaster. (Which is legitimate, by the way, it's not just an arbitrary way of toying with the numbers to make it look worse than it is. They have implicitly and now explicitly backed those debts with the full faith and credit of the Spanish State).

[jclay2]

Ireland's debt/gdp was "reasonable" as well. Until, that is, they were "required" to bail out their financial sector - which was disproportionately large for the size of its economy.

If you add Spain's regional and financial debts to their federal debts, they are indeed teetering on the brink of disaster. (Which is legitimate, by the way, it's not just an arbitrary way of toying with the numbers to make it look worse than it is. They have implicitly and now explicitly backed those debts with the full faith and credit of the Spanish State).

Do you know where I could get information to calculate the real debt/gdp ratio that includes all of their guarantees?