To listen to the mainstream media, you would think Europe is about to enter some type of economic golden age, even though the situation in Spain is worsening, as the country reported its latest quarter saw the economy contracting more than it was estimated to.
As goes Spain so will go the EU, and so the idea that Spain's economic health getting worse doesn't count much to the clueless reporters, only shows how much of the koolaide they're drinking in an attempt to cover up the disaster of keynesianism, stimulus, debt, fascism and socialism.
All of these have converged and blended to create the economic disaster we're seeing around the world, one that is not even close to being solved, let alone recovering, as most in the media are asserting and reporting.
It's important to note that the irrelevant idea of market sentiment and the reality of how an economy is actually performing are two completely different things, with sentiment having no importance at all, other than to write headlines that are done to make people and politicians good about the disaster that is the global economy.
Spain's GDP dropped 0.7 percent from the third to the fourth quarter, plummeting the most in a year.
The only thing saving Spain and Prime Minister Mariano Rajoy from requesting another international bailout is a robust bond market to start the year. Investors have poured money into Spain to get the high yields offered by the country.
Unfortunately, that will do nothing to change the economy of Spain, which continues to contract, and is expected to for at least two more years, and probably more.
According to the Bank of Spain, the bond money isn't doing anything for what it identifies as "the real economy."
That's the correct assessment, as regardless of how strongly the bonds are selling, Spain's debt load continues to grow, making it the domino that could topple the region.
One bright spot in the entire mess is there are steps to cut back on taxes on entrepreneurs, which is one of the few smart moves coming out of the disaster. It should have been done long ago. But better late than never.
Other than that, there is little if any good economic news coming out of Spain, and there will be a time when it will request even more international loans, and when that happens the future of the country and the Euro zone will again put to the forefront where it belongs, as there is absolutely nothing going forward that suggests this will turn around any time soon.
It's amazing in light of this that the media continue to report Europe has turned the corner economically, when the key country of concern is getting contracting rather than growing. Only the investment in bonds keep the truth of this from going more public. That will probably end soon, and Spain will come back into the public eye where it belongs, so we can see a more accurate picture of what's really going on.
Any outlook or decision not including Spain as a major variable is one that is flawed and faulty.