Spain is the victim of an international conspiracy focused on destroying the country’s economic standing and via that the euro.
That’s the plain and simple view of the Spanish government, or at least its Development minister, Jose Blanco, according to an article in Monday’s Expansion newspaper — Spain’s premier financial daily.
We’ve Google Translated the first part as follows (please excuse the autobot-ese):
Blanco denounces plot against Spain and the euro
While the economic vice, Elena Salgado, has traveled to London today to appease the spirits of investors, Development Minister, Jose Blanco, accused the “financial speculators” of orchestrating a plot against the euro and the Spanish market. “Nothing is happening in the world, including foreign newspaper publishers, is casual or innocent,” said Blanco. The deputy general secretary of the PSOE denounced an “attack against the euro and the existence of” somewhat murky maneuvers “to avoid scrutiny of financial markets.
“Everything serves a purpose. The apocalyptic comments on the economic situation of Spain do not benefit our country. There are an attack on the euro and should be given an answer,” Blanco said.
Development Minister said that a “very clear resistance” of international financial speculators, the same as “the crisis originated, to which regulate markets resistance that in its opinion, will go over.” Now that see we’re out of the crisis, do not want to better regulate the markets so you can re-do of theirs, “added White, who drew for the same reason it has launched a” very clear offensive “against Obama administration.
Blanco made these remarks in an interview on radio station Cadena Ser on the same day that the economic vice, Elena Salgado, has traveled to London to soothe investor sentiment. And precisely when asked about the arguments that expose Salgado, White said that what he will say Economy Minister is that “it is promoting and redirecting the country to try to get a path of economic growth more positive and distinct.
Which, of course, reads a little bit paranoid.
Nevertheless, according to Minister Blanco, the Spanish situation is not exceptional to the European area — bar its housing bubble, that is.
Of course, it’s not the first time a European government has blamed the poor performance of its securities, CDS and currency on a cruel plot. The CEE governments united in a similar cry of evil speculator wolf, when their currencies began faltering under pressure of the region’s euro-debt exposure back in early 2009.
Although, the lesson here is that such cries can sometimes work, as they did in the case of the CEE.
What’s more, as the CIO of one fixed-income focused investment firm told FT Alphaville last week, speculators should perhaps be mindful of exactly who they’re dealing with:
This might be a catalyst for governments looking at CDS more closely. It wasn’t really something they focused on when it happened in the corporate credit markets, but when it’s people coming after their own CDS, I suspect the views on the current format could change.