Playing spanish event-chain, eh?
@the looser flag: As limith has already stated, flags are like booleans, a nation (or the whole world) can either have it (true) or not (false). But what you really want to know, is what it does!
So, the looser/winner flags in AAR are used to trigger not just a few historic events (like the German reparation payments, for example, the decline of the Wiemar republic, ...), but they do MUCH more. I.e. hyperinflation will happen to countries who are losers, in the case of Spain this flag is set at game start, as they were really in a deep crisis at that time, after loosing the Spanish-American war, nearly all their colonies AND a bad campaign in Morocco. However, the looser flag is not only a bad thing to have, it makes nations aspire revenge, and allows them to expand their arms industry a bit more while at peace. Also, they may deal with the great depression a bit better, if they are fascist.
These are just a few things that can happen with that flag set, if you are interested, grep through your AAR installation for the "local_flag = looser", and you will get a nice list of what it's involved in.
@dissent: I actually didn't intend to make a player go create the "Spanish Empire 2.0", so i never bothered to decrease the dissent all these DOWs give (remember: your nation is an isolationist democracy at that time, and EVERY SINGLE declaration of war involves a significant dissent hit.) But if you intend to play with your odds, and create a new superpower to have fun with during WW2, go ahead. Maybe you will have to fight the USA, though...
Oh, and while you are at it: what are you modding, besides this event? Care to share your work, so i can add it to AAR?