The Soap Opera of Spanish Debt.

Oh dear. This is one of the more distressing charts I’ve seen in a while.

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This chart depicts Spain’s debt-to-GDP ratio. Spain has reached levels of debt-to-GDP not seen in over 100 years. The last time things were this bad was in the late 1800s. They had just lost the Spanish-American War, and were suffering from colonial losses.

According to Spanish news outlet El Pais, Spanish debt for the year 2012 rose at an astounding 400,000,000 euros per day; yet I recall Spanish officials claiming they had embraced austerity for most of 2012. How can this be? Chances are, they lied. Spain’s increase of debt for 2012 was 84% of GDP, obliterating their forecast of 79% at the start of last year. So far, 2013 doesn’t look any better, as Spanish debt is expected to continue climbing.

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