Economists, analysts and anecdotal reports from companies that supply local governments suggest there is widespread, unrecorded debt among once-free-spending local governments. Some companies are complaining that fiscally frail administrations are pressuring them to do business off the books and not immediately bill for goods and services, said Fernando Eguidazu, vice president of the Circulo de Empresarios business lobby group in Madrid.
When you go into a bank and apply for a mortgage you sign the documents in which you state, under penalty of Federal Law, that you have accurately represented your assets and liabilities.
When nations do the same thing with the assistance of various banks and other institutions, why is it that we can’t call it what it is: FRAUD?
“Investors are worried about the regions, given that there has a been precedent in Spain and other countries of debt not being recorded properly,” said Luigi Speranza, a BNP Paribas economist.
Yeah and there’s precedent on banks “helping” governments, such as Greece’s, in doing this too via various “structuring” schemes that were you to engage in them as a private citizen would result in your ass winding up in the slammer.
According to Spanish central bank data, regional and municipal governments had around €21 billion ($29.9 billion) in unpaid invoices on their books in 2010, equal to about 13% of current outstanding debt and nearly double the amount in 2003.
Who else does that? Cough-Illinois-cum-Mu-Barack-Cough.
I’m going to literally roll on the floor in laughter when this all comes out into the open and blows sky high. The fraud machine on an international basis, all involving the banksters of the world up to and including our Feral Reserve, is an outrage and that we the people of this nation, not to mention the people of Spain and elsewhere tolerate it is even more astounding.