LaRouche's "Ungovernability" Warning: Is Spain Next?
<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>LaRouche's "Ungovernability" Warning: Is Spain Next?</h1><p>May 16 (LPAC)--An article by British intelligence operative, Ambrose Evans-Pritchard in the London Telegraph today raises serious questions about Spain's financial crisis. Evans-Pritchard is a hatchet-man for the Anglo-Dutch financier oligarchy, who played a leading role in 1996-1999 in running the press operations to target President Bill Clinton for impeachment. For the last several years, Evans-Pritchard has been stationed in Brussels, covering the financial world. Is he now attempting to hasten a crisis in Spain? One thing is certain--the financial hardship in Spain is a reflection of the <em>global</em> crisis identified by Lyndon LaRouche. The article by Evans-Pritchard, and Forbes magazine's report on Spain, should be read in the context of LaRouche's recent warnings that we are in a global crisis of "ungovernability" that he likened to the run-up to World War I.</p><p>In the May 16 <em>Telegraph</em> Evans-Pritchard reported that the Banco de Espana's holdings of foreign currencies and gold have fallen to 13.2bn, equivalent to 12 days of imports. Over the past two months, he says, the Banco de España has sold off 80 tons of gold, and reduced its holdings of US Treasuries, British gilts, and other investments at a similar rate. Total reserves have now fallen by two thirds from 41.5bn in early 2002.</p><p>By contrast, the overall reserves of the eurozone system have remained stable. France (76bn), Germany (86bn), Italy (59.5bn) have all kept holdings at full strength since the launch of the euro, Evans-Pritchard claims, adding that one factor is an increase in Spain's Current Account Deficit.</p><p>According to a Forbes' posting of a Thompson Financial newswire from Madrid, Spain's current account deficit increased to 8.980 billion euro in February, which is markedly up from 7.875 billion euro one year earlier. "In the two months to February , the current account deficit widened to 17.602 billion euro from 14.161 billion euro.</p><p>LPAC will be updating this story throughout the day.</p></div></body>