Re: Re: Demise of the Euro closer? – Ignore this if it bores you


@kgpoc wrote:

Good for the foreigners, but wow it would destroy the Spanish.

Inflation would jump 20-30% on the day of the change; gas, food, all perishable products are imported in such high quantities, it was be disastrous on a short term basis.. In the long term it will be good, but in the first few years the shift would be eye opening.

Hey if we really believe this scenario, and you really want to buy property in Spain, make sure it is a farm or farm land.

While gas in imported, I suspect Spain produces enough food to feed itself, and have enough left over for export. Spain has plenty of other stuff people will buy – at the right price – and a devaluation would help Spain sell that stuff. Any spike in inflation would be offset by increased growth. Devaluation might hurt for a few months while the economy rebalances, but it would be of overall benefit to Spain.