The ultimate solution to Spain's National Debt Crisis

Following on from my post about fixing the Greek debt crisis, here are the numbers for Spain.

Spain's national debt currently stands at around €710 billion, that's €15,446 per citizen.

To generate that sum using fractional reserve banking, a bank would need to have 8.6967% of that sum, namely €67.7 billion.

So, suppose we set up a bank with a special "Spanish National Debt Cancellation" account. People could pay money into the account, and when the sum of €67.7 billion is reached, the account is frozen, the bank creates €710 billion out of thin air, lends the money to the Spanish government, and the entire national debt is paid off. The loan would have very favorable terms under which the government would have to pay the money back after 1000 years with 0.000% interest.

On average, each citizen would have to pay €1,343 into the account to activate the mechanism.

In 2011, Spanish taxpayers paid €25.9 billion in interest charges to the banking sector. It follows that the €67.7 billion needed to finance the scheme would be paid off in well under three years.