Portugal and Spain In Trouble Too…

Will Frankfurt (the European Central Bank) come to the rescue of Greece, or Spain, or Portugal? Maybe in the end, but not now, reports Ambrose Evans-Pritchard in The Telegraph:

“Mr Callow of Barclays said EU leaders will come to the rescue in the end, but Germany has yet to blink in this game of “brinkmanship”. The core issue is that EMU’s credit bubble has left southern Europe with huge foreign liabilities: Spain at 91pc of GDP (€950bn); Portugal 108pc (€177bn). This compares with 87pc for Greece (€208bn). By this gauge, Iberian imbalances are worse than those of Greece, and the sums are far greater. The danger is that foreign creditors will cut off funding, setting off an internal EMU version of the Asian financial crisis in 1998.

Jean-Claude Trichet, head of the European Central Bank, gave no hint yesterday that Frankfurt will bend to help these countries, either through loans or a more subtle form of bail-out through looser monetary policy or lax rules on collateral. The ultra-hawkish ECB has instead let the M3 money supply contract over recent months.”

Mr Trichet said euro members drew down their benefits in advance — “ex ante” — when they joined EMU and enjoyed “very easy financing” for their current account deficits. They cannot expect “ex post” help if they get into trouble later. These are the rules of the club.”

Amalia Rodriguez Sings Povo Que Lavas No Rio.

Hitler bombs Guernica and invades Poland. In Portugal, Salazar comes to power; in Spain, Franco. Salazar demands that all fado singers carry identity cards. Everywhere there are allied and nazi spies, looking for supporters and traitors.

It was at this time, in 1939 that the legendary fadista Amália Rodriguez made her debut at the fado house Retiro da Severa.

By then, fado had left the streets and taverns where it had begun and had entered the bourgeois venues. Amalia quickly became the most original and celebrated artist in the genre, an international star who performed everywhere, from opera houses to Broadway and Hollywood. But the government in Portugal had nothing good to say and Salazar always derided her as ‘the little creature.’

Here, Amalia sings Povo que lavas no rio (“The people who wash in the river”).
The washer women are poor and the song, like many of hers, becomes political by the very fact of her singing it, for she sang many anti-fascist poets, besides Portuguese classics, like Camoens.

“Povo que lavas no rio
Que talhas com o teu machado
As tábuas do meu caixão.

Pode haver quem te defenda
Quem compre o teu chão sagrado
Mas a tua vida não………”

— Excerpt from Povo Que Lavas No Rio,
Lyrics by Pedro Homem de Mello
Music by Alain Oulmain (a Franco-Portuguese anti-fascist poet whom she helped set free after the Portuguese secret police arrested him)

People who wash in the river/ Who with their axes hew/ The boards of my coffin/ There are those who value you…….”

Yet, of the poverty in which she grew up, she was always dismissive:

“We never complained about life. Sure, we knew there were people who were different from us, otherwise there would be no revolutions. But I never heard anybody talk about that. It’s the privileged classes who discuss that type of thing, not the poor. And, after all is said and done, there’s also class discrimination among the poor. We were like social outcasts.”

Of God she said, “Even if he doesn’t exist, I believe in Him,”