There are two realities vying for attention in today’s Spain. On the one side is the grim reality facing workers, particularly Spain’s lost and betrayed generation. On the other is the government’s version of events in which conditions could not be rosier. “We are on solid ground,” said Spain’s premier Mariano Rajoy. “The recovery is here for good.”
What he failed to mention was the main reason for this supposed improvement: namely that more and more Spaniards are falling into bad old habits. Egged on by the government and media, they are once again buying lots of foreign-manufactured goods they probably don’t need with money they don’t have. That’s right: thanks to a relentless feel-good campaign, internal consumer demand is once again soaring, just as the country’s exports tumble. In four short words: not a good sign.
Read the full article @ Wolf Street.