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Tuesday, July 17, 2012

Well let's get real shall we?

There is an underlying issue that we face as we travel to Spain. It is understandably going to be an interesting time to be going.


 I am not afraid of any violence or anything unsafe happening to us. Daniel talks about avoiding larger cities and urban areas where there might be protests, but truthfully, I am not going to be living like that. Of course we will be smart, and use common sense when we travel, just like we would in ANY foreign country at ANY time in our history.
I refuse to make fear-based decisions.
Here are some links that briefly helped me gain insight into a economic crisis which is complicated and achingly familiar.
http://www.npr.org/2012/06/04/154305936/economic-crisis-looms-larger-in-spain-than-greece#commentBlock

http://ebook.law.uiowa.edu/ebook/content/spanish-financial-crisis

http://online.wsj.com/article/SB10001424052702303933704577532803051571074.html?mod=googlenews_wsj

This will be an interesting time to be overseas and to experience a sea-change in the world's economy. I am certain that whatever the news source and whomever divulges the information does so with no agenda and no mandate whatsoever (insert irony). I am certain that the world news media is not going to participate in tunic-tearing and hysteria-building. I am sure that just like the Occupy Movement there are fanatics and infractores de la ley but those are anywhere. And truthfully, from what I know about the Spanish, they are a very passionate people. They win the Euro 2012  Soccer Cup and all hell breaks loose. Please explain to me the difference of the Lakers winning in the NBA Finals. Or Guns N Roses cancelling their concert one song in. The passion of a fan or of a country is revealed in many ways.
From what I understand, the Spanish are facing this current financial crisis due to a housing bubble, similar to the pus-filled one we popped in the US in 2008. The difference is, Spain is dependent on the euro. Unlike the US, Spain cannot print its own money. So while they have actually less debt than their cousins, financially they are much worse off because of their private debt is 178% of their GDP. Yes, their public debt is 56%, but the Maastricht guidelines were never inclusive of private debt.
Here in the United States. An Occupy Movement fanatic caused 10 million dollars damage to an apartment complex in my hometown. Penny Flats. He set the complex on fire. He is an arsonist. Violence and lawlessness and defiance and hatred aren't defined by a latitude or a time zone. It's a translation of the heart. Not of the language.

I am prayerful that this experience will help my children understand the importance of being financially responsible, and that there are no guarantees in life. I am positive that the country of Spain will rise above this crisis and that there are great things in the future for this country. In the meanwhile, I will look forward with great anticipation spending our money in this country. Even though sales tax and VAT taxes will tack on an estimated 30%!!! to our bill.

Travel is the only thing you buy that makes you richer---Unknown


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