In Addition To Greece, EuroStat Report Catches Portugal Lying About Its Budget Deficit As Well

Tyler Durden's picture

All hell is breaking loose in Europe on the just released EuroStat report which presents an "objective" look at various countries' realistic debt and budget deficit pictures sans governmental propaganda and lies. And while Greece is getting pounded for good reason, another country where the discrepancy between estimates and reality was even worse is Portgual, whose deficit EuroStat disclosed at -9.4%, on expectations of a -8% number. In the meantime Goldman is reaping a veritable bonanza trading 1 Year Greek CDS (which is at 900 bps) which now has a 200 bps bid/ask spread! Other entities getting bushwhacked as a result include Ireland, which is 23 wider at 173 bps (nothing flattering about the Irish in the EuroStat report either), and Banco Comercial Portugues SA which is 38 bps wider to 297. PIIGS are officially in freefall after the truth has finally set them free.

We are feverishly looking for the latest RBS report to tell us that all is well in Greece, and there all rumors of bank runs, strikes, riots, record spreads and what not are merely figments of an overzealous imagination.

Full EuroStat report.


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GerritB's picture

Spain has a -11.2 % deficit and 53 % debt

Italy -5.3 % but 115.8 % debt


Can someone explain what is worse?


Temedar's picture

As Stalin once said: "Both are worse"

A Man without Qualities's picture

What's worse is that none of this is true...

Cursive's picture

Italy has already reached debt saturation.  No more blood to squeeze.  When strategic default is your game, it's better to be first.  You get to amass a lot more debt before the banks go under.

RobotTrader's picture

I suppose we need to start spotting the next restaurant, hotel, cruise line, and REIT stock that is going to go parabolic on this news....

My guess is that Cheesecake Factory is probably going to gap up another $3

Dr. No's picture

Obviously this is a play on "let them eat cake!" with the potential euro zone breakdown.

Missing_Link's picture

SOYLENT CHEESECAKE IS PEOPLE!!!!!!!!11!!1!!one!1!!

Crab Cake's picture

That made me chuckle.... +10

tmosley's picture

The cake is a lie.

A lie....

kaiten's picture

Interesting, so the eurozone deficit was the smallest of all major developed economies, after all. Eurozone 6.3%, Japan 9%, USA 10% and UK 11,5%.

Kina's picture

Its like somebody just lifted up a rock, to reveal all the creepy crawlies beneath. Greece, Portugal, Ireland, Spain.... running hither and tither with their feelers waving around.

Divided States of America's picture

Its about who can lie the most and get their citizens to believe it. But if you want to exaggerate things, look no further than the country you live in.

Cursive's picture

C'mon give 'em a break.  These are "white lies" afterall.  LOL.

tmosley's picture

That is, they are lies told by whites.


Missing_Link's picture

Last I checked, the non-caucasian man in the White House was telling the same lies as everyone else.

The Patagonian's picture

I'm wondering if anyone has any ideas they would like to share with me.

In February I won my eight-year Veterans Administration claim at the Board of Veterans Appeals, and depending on the rating I get, I am looking at a lump-sum back payment between 70k and 200k USD.

I sincerely mean this, I thank you tax-payers for paying your taxes.  I broke my neck and lumbar on a drop zone one night at Camp MacKall from a bad parachute landing and have a couple of issues from the Panama invasion that you are supporting me with, with your .0001% of fed taxes that go to the VA.  I sincerely thank you for that, I mean that, really.  A big thank you for your taxes, it makes a difference in my life.  I'm just sorry I could not have served you longer.

Anyway, I now reside in the eurozone, Germany to be exact.  My current VA check is sent to my very conservative and boring Sparkasse bank, they don't do exotic financial instruments, which is a good thing.

But the German FDIC version of insurance only covers 50k.  I just do not know where to park my back pay and where to invest my monthly check.

If anyone has any ideas that I can take to to my bank or an external financial advisor, I'd greatly appreciate it because at the moment I am a fool with his money.

I know many will say buy PM.  But I've learned enough at ZH to buy only physical, except I really don't have a safe place to keep it.  My safe European home may not be so safe after all.

I was considering German Bunds, but if the EMU breaks apart and if Germany goes to the DM 2.0, I think I will get screwed having Bunds denominated in euro.  So what's the answer?  German blue chips?  Siemens, Eon, and Volkswagen?  Norwegian Krona?  Norwegian energy?

Any hints would be appreciated


Pure Evil's picture

I think the best thing you can do with our taxpayer dollars is to invest in US Treasuries.

Give back to those that have given so much.

Can't go wrong with that.

The Patagonian's picture

Everyone here seems to be against UST as a gross ponzie scheme.  Is that really wise?  The other thing I have noticed, as evidenced by the recent thread of someone not paying off their debts, is that morality is no longer a consideration in business transactions.

So to give back to those that have given so much seems a little ironic to me.  As I've given a lot, in sacrificing my physical health to the security of this nation.

So not to say that you are wrong, but from my perspective this is becoming more of a dog eat dog world where people no longer give a shit.  I'm afraid that if I do something patriotic like giving back in the form of USTs, I'm just going to get screwed further for further self-sacrifice.  Not because buying bonds in general is a suckers bet, but buying bonds under current management is. 

tmosley's picture

Invest in countries around the world to spread out your risk.  IIRC, you can open up foreign bank accounts as well.

The Patagonian's picture

I've thought about that, but I am unsure if 70-200k is enough to open a Swiss bank account.

nonclaim's picture

You might get screwed either way, so go for something that can be fought for in court, in a country where the justice framework still function and not merely exists. Bunds seem ok to park on at this point and the eventual Euro->DM2 conversion, IMHO, would be fair.

The Patagonian's picture

Hmm, maybe short term Bunds and Norwegian Krona is the way to go.

Pegasus Muse's picture

Thanks for serving.  We bought physical metals in Germany.  You can buy them through the bank.  They coordinate everything.  The bullion/coins are discretely and securely delivered to your door.  The bank charged a pretty hefty premium for their service.  You might be able to find a better deal if you ask around.

Another option is to check out digital gold currency companies.  James Turk runs .   He has an excellent reputation. 

Another issue you need to consider is the new Capital Control legislation Obama snuck into the HIRE bill.  Now US citizens must report all their assets deposited in foreign institutions if it adds up to $10K or more.     


The Patagonian's picture

Thank you, but please don't thank me for serving, I didn't do anything spectacular and the college money was good at the time.  I come from a military family so that was the thing to do, but I don't see it as something I should be thanked for.

Honestly, I don't know how the Capital Controls affect me.  VA payments from the treasury are not taxed, this is all tax-free, they don't even send me a W2 and I live off of a current 60% disability (in the eurozone, ugh, a couple of years ago I was almost homeless due to the dollar sinking.)

The proposed Tobin tax on international financial transaction concerns me, because the language I've seen so far is a tax on all international financial transactions.  I'm actually in favor of such a tax on major amounts of money being moved around but afraid that I am going to be caught up with the big fish just because my Treasury check is sent overseas by direct deposit.

Thanks for the link, I'll check that out.  I think it comes down to buying a decent home safe and somehow securing it to the apartment building as to where to store PM.  I was actually interested in the rumor here on ZH that the UN was going to issue gold coins but never heard anything further about that. 

Matto's picture

Put a small percentage into longdated out of the money put options (euro, uk or us markets - take your pick), hold a percentage of precious metals, pay off debt, get a little bungalow on the beach in SE asia, short euro banks and/or market indices, hold cash in swiss frank, canadian dollar, swedish & norwegian kroner and USD (short term), buy canadian companies that provide a good dividend (and arent exposed to housing), get ready to buy everything if the shit hits the fan. do not own a debt instrument from anyone.


(just ideas)

Kina's picture

You know things are about to get bad when the IMF comes out and says..


The IMF has declared the global recession over saying Australia has the best prospects in the developed world.

THE DORK OF CORK's picture

Estonia must be on the point of starvation given their low deficit spending - truly a shock and awe policey.

They must be relying on their great tradition of eating raw turnips and potato peelings.

Welcome to Europe boys and girls.

bigdad06's picture

Buy gold and silver, wheeeeeee!!!!!! LOL!!!

asteroids's picture

A report from a recent visitor to northern Europe said things were bad and getting worse. Health care systems are breaking down, etc.

alexdg's picture

Not entirely true. The Socialist Government in Portugal revised the deficit 3 times since summer of last year. They were lying on deficit expectations back in September'09, but this was election time; anyways... they claim the great recession screwed their expectations (back then at 5.9%). In October they were expecting 8.3-8.7% deficit for the year. In January they accounted the deficit at precisely the same number the Eurostat claims today.

Banco Comercial Portugues SA (BCP) is the largest portuguese private bank and has big operations in Greece, so getting tanked is sort of expected.