Rajoy must not only lead Spaniards out of their plight but also appease financial markets, who see the euro zone's fourth-largest economy as in danger of following Ireland, Portugal and Greece in having to seek an international rescue package.Cleaning up is not that easy though, because "Progressive" economies function on one basic concept ... buying votes with handouts is the quickest way to power. It's as simple as that.
The government sold bonds on Thursday with a yield of almost 7 percent -- a level of borrowing cost that led to bail-outs in other euro zone countries.
In a glimmer of good news, the Spanish stock market closed higher on the last day of trade before the election. Investors saw Rajoy as winning the race with an absolute majority, giving him a strong mandate to carry out his plans.
What happens with "Progressive" vote buying is that gradually the "Progressive" regime becomes a huge portion of GDP, but it does so by taxing and using regulatory regimes.
In the end the productive class (non-government GDP) is squeezed out and debt rises to the point that it is untenable (unless there is an endless supply of revenue via a resource). Once debt hits unsustainable levels the regime is forced to cut back ... but being that the regime has now become a massive part of GDP the result is unavoidable recession or depression. You can't remove the single biggest driver of an economy and hope that the economy will keep chugging along.
Furthermore, "Progressive" vote buying creates a massive dependent electorate. So, once the tap is shut off, populations that have been raised on "Progressive" largesse lash out ... they are like cattle who've been fed in a feed lot and don't know how to get their own sustenance ... or worse yet, can't get it because they are fenced in.
So it is that the lazy, slovenly, but intellectually arrogant hordes in Europe are having their feed cut off. For decades Western Europeans, almost to a man and woman, have looked down their noses at the rest of the world as they built a multi-generational "Progressive" house of cards.
Even the so-called strong economies, like Germany, have nothing to boast about because the strength of their economies is derived from exporting strength they get from a grossly devalued currency. That's what happens in the Euro-zone, when you tie industrial economies like Germany's to the economies of backwaters ... Germany thrives because the Euro is undervalued in relation to its economy. How else do you think Germany can be such an exporting powerhouse ... it cheats. If the Euro were to be tied to the German economy alone, it would rise 40% in a flash and plunge Germany ... and France ... and all of Europe ... into instant depression.
You were wondering why Angela Merkel is so desperate to save the Euro-zone ... weren't you? Well now you know.
So, a pox on all their houses. European smugness and political arrogance has run it's course. What's amazing, is that it took this long for the ponzi scheme to come crashing down. I'm always amazed how long "Progressive" economies can thrive on other people's money ... but eventually nature catches up. In this case the Europhiles will struggle on, keeping us all on edge for perhaps years to come ... but they've all crossed over the crest of the "Progressive" hill and are sliding down the other side ... cattle struggling to keep footing on a greasy slope where gravity is king.
Update: Spain