Rajoy was hoodwinked and now Spain faces a debt deflationary spiral

Two weeks ago I told you that Spanish Prime Minister Mariano Rajoy’s humiliating defeat to Merkel had narrowed options to sovereign bailout, monetisation or default for Spain. Now that the Spanish bank bailout is unraveling and Catalonia is threatening secession, I want to revisit this theme. I believe the basic conclusions are the same but I want to update you with my thinking given the most recent events.
The boom in the periphery and bust in the core
Let me give you a roundhouse review of how...


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