Courtesy of Google translate and my friend Bran who sends links nearly every day from Spain, please consider
Spain's net foreign debt for the first time exceeded one trillion eurosNote: The Google translation says billion. The correct translation is trillion, and I modified the references below.
The latest figures from the Bank of Spain show that the net debt-the difference between what foreigners due to Spain and which in turn owes Spain abroad, not only not reduced but increased. In fact, at the end of the second quarter of 2011 for the first time broke the trillion euro barrier. In relative terms, this means a foreign debt equivalent to 93.7% of GDP, six points more than in 2010.International Investment Position of Spain was, in particular, at 1.02 trillion euros, the highest ever level. In gross terms, external debt also has picked up , to 1.77 trillion euros, the second worst record in the series, surpassed only very slightly, and by data from the first quarter of 2010. The cause? The increased borrowing by the public and the financial system.As a result of these developments, Spain's foreign debt now accounts for 163% of GDP. Spain, thus, has become the second country in most major foreign debt of the world, behind only the U.S., as recently published McKinsey . Below are Australia, Brazil and Italy. The ranking of Mckinsey, in any case, does not include Portugal, which, according to data from the central bank, would be over Spain, although its weight in the global economy is much smaller.
Net External Debt Position
Take a good look at that chart.
Spain has 41% of the external debt of the US on an economy about 9% as big. Does anyone think that will be paid back? When?
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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