Greece is Now Irrelevant. Watch Spain And Germany!

• It will take a couple of months before the total/real consequences of the Greek default are revealed. Many people are celebrating a successful ‘orderly’ Greek default too soon.
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  Greece is Now Irrelevant. Watch Spain and Germany! 
  by Graham Summers, Phoenix Capital Research, http://www.zerohedge.com/ 
  Earlier this month, Spain began “rocking” the EU boat by telling the EU it wasn’t going to meet the new EU fiscal requirements.
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  Spain’s sovereign thunderclap and the end of Merkel’s Europe
  As many readers will already have seen, Premier Mariano Rajoy has refused point blank to comply with the austerity demands of the European Commission and the European Council (hijacked by Merkozy).
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  Taking what he called a “sovereign decision”, he simply announced that he intends to ignore the EU deficit target of 4.4pc of GDP for this year, setting his own target of 5.8pc instead (down from 8.5pc in 2011). In the twenty years or so that I have been following EU affairs closely, I cannot remember such a bold and open act of defiance by any state. Usually such matters are fudged. Countries stretch the line, but do not actually cross it. 
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  With condign symbolism, Mr Rajoy dropped his bombshell in Brussels after the EU summit, without first notifying the commission or fellow EU leaders. Indeed, he seemed to relish the fact that he was tearing up the rule book and disavowing the whole EU machinery of budgetary control.
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  http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100015432/spains-sovereign-thunderclap-and-the-end-of-merkels-europe/
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  Spain ultimately acquiesced here once the EU permitted it to meet more lax requirements. However, this was a definite warning shot from a BIG PROBLEM country for the EU. As I’ve noted before, Spain must be watching what’s happening in Greece and asking itself whether it wants to go through this whole process of negotiating for bailouts via austerity measures. 
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  Indeed, Spain’s economy is already disastrous. Unemployment is already 20+% without any major austerity measures having been put in place. Anecdotal reports show Spain to be an absolute disaster. Spanish banks GREATLY underplay their exposure to the Spanish housing market (“officially” prices are down 20% but most likely it’s a lot more than that).
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  … for more click here!

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