The original death spiral is a maneuver in competitive
figure skating. The man rotates while his partner revolves around him. He gradually straightens his arm so she is farther away from him and therefore moving more rapidly. At the same time she lowers her body so she is almost grazing the ice. This can be very dangerous, so it was nicknamed "the death spiral."
The term has been extended to aviation, in which a death spiral is truly a spinning descent which cannot be corrected. If the pilot cannot cannot
bail out, he will die in the crash.
It is also used in
entomology. If a group of army ants are separated from the main party, they may begin following each other in a circle, and they will eventually die from exhaustion.
So before long it became a
metaphor for any kind of activity with a more-or-less circular or spiraling path which will inevitably lead to some sort of ruin, such as financial or political, if not actual death. There is a type of insurance plan called the death spiral, in which the costs steadily rise due to bad planning.
The article cited talks about "a capital-raising death spiral, which could slowly and painfully consume Spain's banks from the inside out." "Capital" is an economist's fancy word for "surplus wealth." There is obviously only a finite amount of surplus wealth in any economy, or in the entire world economy. To "raise capital" means to solicit the surplus wealth of people, corporations, or an entire economy, by promising them a handsome return on their investment. If you keep taking their surplus wealth, but in so doing you fail to heal your economy and therefore they never receive a return on their investment (which would restore and increase their surplus wealth), you'll go back to them and ask for more, and you'll fail again, and eventually there will be no more surplus wealth and your economy will collapse. This is a pretty reasonable use of the term "death spiral."
No. "Damn" is a strong word that means merely "condemn." It has religious overtones but the more secular word "condemn" is commonly used to mean to express adverse judgment on someone, to pronounce someone guilty, or to sentence someone to punishment. So a "damning report" is a report which exposes flaws or crimes so severe that the subject of the report is, in effect, condemned--perhaps to ostracism, financial ruin, or actual punishment. In this case we're talking about Spain's banking system, so it has been condemned to failure.
In your daily conversation, do you always use the word "damn"? This is what I heard in your movies.
In the United States, in colloquial speech (rather than formal), the word "damn" is not considered to be profanity. Most of us use it with some regularity, although "always" is an exaggeration. We use it as an adjective, an abbreviation of "damned," which means "cursed" and originally implied "cursed by God." Its meaning has been watered down through overuse, so when I say, "That damn cop gave me a ticket for going only 11mph over the speed limit," I don't really mean that I expect God to send him to hell (especially since I'm an atheist). I just mean that I do not regard him as a nice person and I hope when he gets home his wife will be angry at him for something he doesn't even know he did.
But religion is strong in America, much stronger than in England and Australia. There are people here who regard "damn" as profanity, or at the very least impolite, and they don't use it casually. If they "damn" somebody they really mean that they hope he will rot in Hell, although tomorrow they might apologize to God and insist that they didn't really mean it.
Because of its common use, "damn" has lost its power, so people say "god-damn," usually spelled "goddamn," which is stronger. The religious people regard this as blasphemy and are highly offended when they hear it or read it. You will often find "damn" used in formal speech and writing, sometimes even by presidents, but not "goddamn."
something was off = something missed out?
To "be off" has a hundred meanings, but they have a common thread. It means to be incorrect, to have veered off course, to be not quite sane, to be in need, to have lost value, etc. In general, to say that something is off means you think there's something wrong with it, but you haven't quite figured out exactly what it is.
To flush something, such as a toilet, means to clear it out. To flush a bird means to startle it so it comes out of hiding. So I'm not sure which meaning they're using here when they say that Spain's banking problems have been flushed out. It could mean that they've been fixed, or it could mean (as you say) that they have been exposed. This is bad writing. The reader has to have a good understanding of the topic in order to interpret this sentence correctly.