Spain

Echoing the sentiment from his prime minister Mariano Rajoy, in a nationwide address on Tuesday night, Spain's King Felipe VI said that Spanish democracy is in a serious moment, and accuses Catalan separatist leaders of violating constitution.

"For some time now, certain officials in Catalonia have repeatedly, consciously and purposefully breached the constitution and their statute of autonomy"

Toeing the government line, the King said referendum plans were illegal, and that it is "irresponsible" to conduct risks economy.

The Catalan rebellion escalated on Tuesday, resulting in a day of "total stoppage" for the Catalan capital, in which Barcelona metro stations were closed, pickets blocked main roads and civil servants walked out on Tuesday in response to a strike called by pro-independence groups as separatist activists took to the streets of Barcelona to press home their demands for independence after winning an referendum on Sunday which despite a violent crackdown by the Spanish government, saw nearly 90% of the vote cast for splitting away from Madrid.

It's deja vu all over again.

In a repeat of yesterday's session, where US equities and the dollar levitated in a one-way trade, Tuesday's muted session - where in addition to closed China and South Korean markets, Germany's Dax is also shut for holiday - has seen early dollar and European equity strength, while the S&P is set for new record highs amid higher E-minis and a VIX that is again lower after 5 consecutive days of declines.

Authored by Pepe Escobar via The Asia Times,

Fascist Franco may have been dead for more than four decades, but Spain is still encumbered with his dictatorial corpse.

A new paradigm has been coined right inside the lofty European Union, self-described home/patronizing dispenser of human rights to lesser regions across the planet:

“In the name of democracy, refrain from voting, or else.”

Call it democracy nano-Franco style.

Submitted by Bill Blain of Mint Partners

“Reputations changeable, Situations Tolerable. Baby you’re adoreable.”

It’s the start of Q4 and October, always the most volatile month of the year – and it’s started with shock and surprise. Just a few years ago it would have been inconceivable Spain’s vibrant democracy might stumble towards the verge of dismemberment. But this morning…Spain bonds under pressure.. Anyone who thinks populism is dead is profoundly wrong. If it can happen in Spain… it can happen elsewhere.