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Greece Caught Lying By Eurostat Again, As Budget Deficit Revised From 3% Initially To Over 15% Of GDP

Tyler Durden's picture




 

It is settled: the only country that may have more pathological liars than the US, is Greece. Eurostat, whose revision of Greek GDP numbers in April was the catalyst that led to the country's insolvency and riots in early May, and subsequent bail out, is on the scene again, and has once again confirmed that Greek authorities can be relied on 100%... to lie. Reuters reports that Greece's much-revised 2009 budget deficit will be set "once and for all" by Eurostat at above 15 percent of GDP, the country's finance minister said on Wednesday. And the revision is certainly a little more than just "modest": "Remember the 2009 budget was projecting a deficit under 3 percent, then a few days before the (Oct. 4) election the reported deficit to the EU Commission was 6 percent," Finance Minister George Papaconstantinou told a conference in Cyprus. "We realised it was over 12 percent. And actually, even after the final revision by Eurostat ... which will validate Greek numbers for 2009 once and for all, it will be above 15 percent. We are talking about a five-fold difference." This is data fudging that will make not only China but the BLS blush with envy.

The response: Greek spreads surge.

The cost of insuring Greek debt against default rose on
Wednesday as risk aversion to the sovereign continued to grow
after a series of negative comments, while bonds sharply
underperformed German debt.

And more from Reuters:

Five-year credit default swaps (CDS) on Greek government debt rose to 720 basis points, up 39 bps according to data monitor Markit. This means it costs 720,000 euros to protect 10 million euros of exposure to Greek bonds. [ID:nLDE69Q14D

The ruling Socialists plan to slash the budget deficit to 7.8 percent of GDP this year and cut it further to 7.0 percent in 2011.

"On the fiscal front nothing is won yet," Papaconstantinou said, while adding: "We are on track and will continue to be on track."

Papaconstantinou told the same economic conference that the country's economy would contract by between 2.5 and 3 percent next year.

 In the 2011 draft budget, published earlier this month, the government estimated that GDP would shrink by 2.6 percent next year from a 4 percent contraction in 2010, as an austerity drive takes its toll.

The Mediterranean country's economy has been hit by tough budget cuts prescribed by a 110 billion euro ($153.5 billion) EU/IMF bailout deal agreed to pull the country out of its debt crisis.

"Growth will contract by 4 percent this year, and next year by between 2.5 and 3 percent," Papaconstantinou said.

Keep a close eye on the EURUSD: truthy Greek headlines will not cease until it is back in the 1.1x level.

 

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Wed, 10/27/2010 - 08:10 | 680004 Cursive
Cursive's picture

 

Papaconstantinou told the same economic conference that the country's economy would contract by between 2.5 and 3 percent next year.

In the 2011 draft budget, published earlier this month, the government estimated that GDP would shrink by 2.6 percent next year from a 4 percent contraction in 2010, as an austerity drive takes its toll.

 

So I guess it's a top for their standard of living then?  There are a lot of people who deserve a lump of coal for Christmas every year.

Wed, 10/27/2010 - 08:16 | 680015 Sudden Debt
Sudden Debt's picture

Yes, but they promised to never do it again this month.

And you know what? I BELIEVE THEM!

 

Wed, 10/27/2010 - 08:18 | 680032 eigenvalue
eigenvalue's picture

Are you on drugs, mate? You believe them? I'd rather believe a fairy tale.

Wed, 10/27/2010 - 08:27 | 680059 Aghast in Midlothian
Aghast in Midlothian's picture

SD's joking.

Wed, 10/27/2010 - 08:37 | 680103 Charlie Bravo
Charlie Bravo's picture

Eigenvalue, he's doing what is commonly known as "joking around"...also known as "joshing" and "trolling".....etc..etc...etc....

Charlie Bravo

Wed, 10/27/2010 - 08:13 | 680017 Leo Kolivakis
Leo Kolivakis's picture

"It is settled: the only country that may have more pathological liars than the US, is Greece."

Bwahahaha! Thanks for the morning laugh! I'll dance to that tune!

Wed, 10/27/2010 - 08:32 | 680077 Internet Tough Guy
Internet Tough Guy's picture

Did they invite the Germans to that party? After all they are paying for it.

Wed, 10/27/2010 - 08:35 | 680092 Leo Kolivakis
Leo Kolivakis's picture

No comment...you obviously missed the point!

Wed, 10/27/2010 - 08:39 | 680114 Internet Tough Guy
Internet Tough Guy's picture

lulz. Well one of us missed the point. Party on, dude, til Germany cuts your credit card up.

Wed, 10/27/2010 - 08:52 | 680161 Charlie Bravo
Charlie Bravo's picture

Oh...I think he got the point.

PS: The party can't last forever.

Charlie Bravo

Wed, 10/27/2010 - 10:48 | 680442 schaefdogschaef
schaefdogschaef's picture

If you're really Greek I guarantee you that the Germans (and I'm a tax payer) will kick your arses.....

We're sick to be the sugar daddy for every dumb member of the EU....

Get yourself out of the shit for god sake!!!!!!!!!!!!

Wed, 10/27/2010 - 08:36 | 680094 ZeroPower
ZeroPower's picture

Besides the party islands, Greece has nothing else.

Also, some of them are pretty gay.

Wed, 10/27/2010 - 08:56 | 680169 Ratscam
Ratscam's picture

Greece has lots of olive oil, hardly any wild fish after using dynamite in the 60 is and myriads of nets all over thereafter. Hey they have lots of inarrable land. They wont even sell you an island, even if interested.

Maybe they should export their Malakas for USD 1000 each. Then again they are too hairy!

Wed, 10/27/2010 - 10:03 | 680305 MaldelBot
MaldelBot's picture

Problem solved! Fur coats and hats to sell to the Russians. 

http://www.baseinchina.com/up_files/images/2009418/633756417701900847-Wh...

That little number came from the forearm of just one woman! Think of the possibilities. OPA!

Wed, 10/27/2010 - 08:38 | 680105 Rick64
Rick64's picture

More pathalogical liars than the U.S.? Impossible.

Wed, 10/27/2010 - 10:02 | 680303 ZackAttack
ZackAttack's picture

That's a wonderful metaphor for this situation: the debtor grasshopper idles and plays in the sun, while the creditor ants toil to support them. When the credit winter comes, however...

 

Wed, 10/27/2010 - 08:14 | 680018 lizzy36
lizzy36's picture

Shocked.

Next one learn Charlie Sheen didn't have an allergic reaction.

Rainbows and Unicorns (or is that hookers and blow?) baby.

Wed, 10/27/2010 - 08:33 | 680083 Dapper Dan
Dapper Dan's picture

This is an odd article from WSJ,  any thoughts on why  the gov.  would admit something like this so soon after it happened? 

http://online.wsj.com/article/SB10001424052702303341904575577072303029174.html?mod=WSJ_hpp_sections_news#articleTabs%3Dcomments

 

Wed, 10/27/2010 - 08:39 | 680117 Charlie Bravo
Charlie Bravo's picture

Jumpin' ass crackers....that's not good!

Charlie Bravo

Wed, 10/27/2010 - 09:39 | 680264 centerline
centerline's picture

No worries.  Just co-habitating no-nuke aliens as mentioned by the poster underneath that article.  All is well.

Wed, 10/27/2010 - 08:19 | 680034 johngaltfla
johngaltfla's picture

Perhaps the Russians can loan them some of their hungry bears to eat up the excess population.

Er, never mind. The bears in the U.S. are about to feast.

Wed, 10/27/2010 - 08:20 | 680039 the not so migh...
the not so mighty maximiza's picture

This is how we do it in Greece,  proclaimed Finance Minister George Papapumpass.

Wed, 10/27/2010 - 08:21 | 680043 CitizenPete
CitizenPete's picture

Isn't Greece part of that ONE SINGLE Market in Europe?

http://www.guardian.co.uk/business/2010/oct/26/single-market-act-michel-barnier

Wed, 10/27/2010 - 08:32 | 680070 Zero Debt
Zero Debt's picture

Athens have taken an overdose of Hopium and exhibits all the symptom of a debt addict.

Here are some statements paraphrased from a medical page, the word drug is substituted with the word debt:

  • You are using debt under dangerous conditions
  • Your debt use is getting you into legal trouble
  • Your debt use is causing problems in your relationships
  • You have built up a debt tolerance
  • You increase debt to avoid or relieve withdrawal symptoms
  • You have lost control over your debt level
  • Your life revolves around debt
  • You have abandoned activities you used to enjoy, because of debt
  • You continue to use debt, despite knowing it's hurting you

http://helpguide.org/mental/drug_substance_abuse_addiction_signs_effects...

 

Wed, 10/27/2010 - 08:39 | 680116 LowProfile
LowProfile's picture

Fucking brilliant.

+10^10

Wed, 10/27/2010 - 08:33 | 680075 ZeroPower
ZeroPower's picture

Whats a few % points amongst friends?

Wed, 10/27/2010 - 08:53 | 680163 A Man without Q...
A Man without Qualities's picture

It's nothing really, we should just put it down to cultural differences and move on

Wed, 10/27/2010 - 08:33 | 680080 primefool
primefool's picture

When the fraud goes viral, every one at some point realizes that they are swimming in piss ( oh yeah - they sometimes sneaked in a piss - but now everybody is doing it? ). Then people will realize that pissing in the pool must be severely punished - the way the Chinese do it. And they send an invoice for the cost of the bullet to the family.

Wed, 10/27/2010 - 08:37 | 680102 jus_lite_reading
jus_lite_reading's picture

I've been calling their BS lies for two years now. I do not trust any EU data, and more recently, I have taken a stand against the data right here in the US- mostly lies, half-truths and a large pile of fraud, thrown in for good measure.

As the cliche goes: "a system corrupt, can not stand." One high ranking Chinese official, who was later reprimanded by the Chinese gov't, said "Greece is an endless [money] pit" and they have two options, 'remain part of the EU and restructure (read: default) or leave the EU and restructure (read: default).' In other words they have no choice but to default. But that totally went against what the "official" Chinese stand on Greece was just two months before: "Greece is a sound and safe country to invest and we will continue to invest in Euro bonds."

Of course, they issued that statement to calm the fears of investors who might otherwise realize, Greece is doomed and dump that worthless paper; I'm sure China having 720 Billion Euros in Euro-trash bonds had nothing to do with that statement... I'm just saying.

What a tangled web they weave.

 

Wed, 10/27/2010 - 10:02 | 680304 treemagnet
treemagnet's picture

Wonder what the norwegians are thinking about.....something like "those lying fucking Gypsies!" maybe?

Wed, 10/27/2010 - 10:49 | 680444 Spirit Of Truth
Spirit Of Truth's picture

"This is data fudging that will make not only China but the BLS blush with envy."

Classic.

Wed, 10/27/2010 - 12:58 | 680832 AGORACOM
AGORACOM's picture

As I posted here a couple of weeks ago, Greek money and talent (no jokes) are fleeing Greece.  A friend of mine holding an excellent position in the anti-trust division stated "Greece is dead.  There is no hope for Greece over the next 10 years".

Sad for me to watch it happen but not a surprise given the deep culture of corruption that spread like a virus throughout the entire country.  There is no vision in Greece.  People will fight, cheat and steal the nearest Euro.  Planning goes as far as the weekend party and no further.

The cradle of civilization has no civility left in it.

George .... The Greek .... From Canada 

Wed, 10/27/2010 - 20:25 | 681991 Buck Johnson
Buck Johnson's picture

Also the bankers and other countries are eyeing Greece's one true commodity, and that is it's realestate.  It has at least 1500 islands that have nobody living on them.  And the other islands have a scattering of people until you get to the bigger land mass that have the majority of the population.  Will Greece sell some of it's realestate in order to get out of debt, maybe.  I see Greece defaulting and the idiots who keep giving them money thinking that they will pay them back (european union) are just throwing good money after bad.

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