Portugal Joins Spain And Greece In Lying About Its "Colossal" Deficit

Tyler Durden's picture

First Spain's Castilla La Mancha region was the first to announce it had "discovered" major debt ceiling holes, now it is Portugal's turn. The Telegraph informs that "Portugal's new leader Pedro Passos Coelho has told the nation to brace for further austerity measures after his government discovered a "colossal" €2bn (£1.7bn) hole in the public accounts left by the outgoing Socialists." And while it answers our immediate question "who's next" it certainly does not provide an answer to who's last. Because as more and more governments are changed, more and more such "discoveries" will be announced, but luckily for Europe (and then America), there are far more pressing issues that distract the populace than discoveries than in the past would have led to popular backlash. Concurrently, Portugal joins Greece in indicating that beggars can most certainly be choosers: "Mr Passos Coelho also appeared to caution the European authorities that his government will not tolerate heavy-handed interference in the country. "We want to take part in an ambitious European project and make our contribution so Europe can confront its problems in the most ambitious way, but as prime minister I will not stand by and let Europe govern Portugal," he told a party gathering." And while short-termism reigns across capital markets at least for a few more hours, the reality is that there is simply not enough money out there to plug each and every hole as it is uncovered. But that will take the market a few weeks to months to realize.

More on Portugal demanding equal terms (with who?) in Europe's resolution of the latest bankrupt state:

There is growing rancor in Lisbon over the term of the €78bn rescue by the EU and the International Monetary Fund, and the sweeping powers of the inspectors as they impose a "structural adjustment" on the economy.

The penal rate of interest charged by the EU is expected to top 5.5pc and risks trapping the country in debt-deflation. At the same time fiscal austerity, without offsetting monetary stimulus or devaluation, may tip the economy into an even deeper downturn.

EU officials are pushing hard for a 100 basis points reduction in rates on rescue loans, hoping to win backing from a reluctant Germany at an EU summit on Thursday.

The revelation of a budget hole in Portugal has echoes of what occurred in Greece in late 2009, when an audit by the new Pasok government exposed a budget deficit twice the level previously declared to the European Commission.

To recap: major lies about deficits in Greece, Spain and Portgual. But certainly all is well in Europe's core and, needeless to say, America. And if it isn't, there is always the printing press. So of all things to get sold off today (as predicted), we get the one asset that can not be printed.

Go figure.

 

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Gubbmint Cheese's picture

Well to be fair, it IS serious.. so as per the Juncker rule..

bankrupt JPM buy silver's picture

Blythe is back to work, she always seems to erase in 30 minutes what took a week to build.

www.silvergoldsilver.blogspot.com

DoChenRollingBearing's picture

Blythe is a bitch if you trade.

I just buy and hold gold, Blythe is irrelevant to me.  Other than funny xtranormal videos!

ZeroPower's picture

Youre quite the joker.

Since when does anything move in a straight vertical line, thats not a bubble? And yet you seek conspiracy theories on blythe and her silver and gold take-downs. Lol. If only you ever got to see a commodity desk somewhere and understand not only the workings of the people who trade that stuff professionally, but also the psychology involved of retail sheep - who feel the need to explain ever single large order (hint, 100 contracts in a thin market can MOVE) by some other extraneous factor.

the not so mighty maximiza's picture

The BS is gonna run out

knukles's picture

The BS gonna run out?  Howze about the money?  These numbers are no longer realistic.  They're unfathomable. 
Gives new meaning to print your way to prosperity.

SilverRhino's picture

God Damn !! Who blowtorched the Silver market in the last half hour?  

TaxSlave's picture

Torch it some more, I'm ready to buy some more junk to bury in the back yard.

Long-John-Silver's picture

You know it's going to cost you $5 to dig it back up don't you?

Bay of Pigs's picture

I can't speak for anyone else, but for me it is a sad day in American history when they have to trot the fucking President of the United States to talk the gold and silver markets down, and give a boost to the stock market and a temporary reprieve for the ever depreciating FRN.

A pathetic spectacle indeed.

Sell the news and BTFD.

 

 

DoChenRollingBearing's picture

Turd says similar Bay.  EE went after PMs moments after Owebama started talking.

I saw you over there at tf's site.  Awesome site!

knukles's picture

Blythe & Co.

Come on, perfect excuse.  A (sham) solution to the problem of the moment, meaning that stocks should rally, PM's should tank.  No longer a need for the most risk adverse assets in the world.  Why even (from a Krugmanesque point of view) with the deficit declining, then issuance declines, so bonds rally, too.

But Blythe & Co. to the best of every body's knowledge still has a big, large, size, important, out of the money, bad large loss short on in the silver market for herself and somebody has to knock down gold for the Fed/Treasury. 
And options expiration is next week.
What else is new?

Ah-oooog-ah  Ah-oooog-ah
Dive! Dive! Dive!

 

Now the real question before the house is.... how long does it take for the world to figure out this is nothing but pablum, a sham, sleight of word... and all of a sudden, it's back to the new fucked up normal.

What's the line/over/under?

unununium's picture

> God Damn !! Who blowtorched the Silver market in the last half hour? 

You must not have heard, inflation has been defined away!

Hail to the king, the king is dead.

TaxSlave's picture

And while short-termism reigns across capital markets at least for a few more hours, the reality is that there is simply not enough money out there to plug each and every hole as it is uncovered.

Print some more!  And pretend it's debt!

See?  Shortage solved.  Simple, really.

speconomist's picture

Tyler I sent you an email some weeks ago about the new Major of Sevilla (Spain) getting bills in pesetas that still haven't been paid.

NERVEAGENTVX's picture

Surprise, surprise! Maybe they can formulate a new CPI index as long as they are at it.

TradingJoe's picture

PMs had a nice run, they need to take a breather no worries there! It is the usual low volume ramp followed by a "massive" volume "sell off":))! The VIX cant go anywhere as long as the "pit traders" sell calls agains it, naked if necessary, who cares, eh?! So, give it time and don't be fooled by snakeoil salesmen (Traders):)))!

Buckaroo Banzai's picture

Boy, it sure does suck when you can't print your own currency. What were they thinking?

papaswamp's picture

Their plan may be to get kicked out. No longer responsible for paying the loans back and can crank up the printing presses.

Buckaroo Banzai's picture

The Euro was deliberately set up to be like a Roach Motel. Roaches check in, but they don't check out!

vitoox's picture

Max Keiser's yesterday news.

The Count's picture

Rome will burn.

 

 

treemagnet's picture

They can't be out of money, they still have blank checks in the vault.

papaswamp's picture

Ah so either they will get a bailout or tossed out in which case they can crank up their own printing presses. Either way ink will be the new commodity.

youngman's picture

Just wait for the end of Obama´s first and only term...his executive orders and pardons will amaze everyone...even his fellow Democrats..he will make Bill Clinton look like a boyscout...he will add trillions....by executive order

Long-John-Silver's picture

He will be known as America's first Fascist Dictator.

DoChenRollingBearing's picture

@ youngman,

What a great observation.  I am trying to imagine the scale of his pardons if / when he loses...  Wow.

+ (a truncated) $1585

Dick Darlington's picture

I'm sure the eurofanatic kleptocrats see noooooo problemos. Just throw another hundread billion euro-confettis (that they don't have) here and there and there you go! And break every possible rule, Lisbon Treaty anyone, on the way. Amazing how these non-elected pigmen can do their dirt without anyone interfering.

EscapeKey's picture

Lying about personal deficits used to be all the rage. All the cool kids did it. I never realized it would start a trend amongst governments as well.

AccreditedEYE's picture

I keep saying the same thing about the ever-growing debt holes... yet they find a way and the micro-term market momos keep moving everything up while not computing past a nano-second.

At some point, hopefully, investors will be reminded that GDP growth is what pays for all these "bailouts" and have a very painful "oh yeah.." moment. If they don't, a generation will come and go living under this mess. A real shame people don't value time as highly as they should.

monopoly's picture

I just do not get it guys. Check out TBT. This is what happens with good news? They are freaking scared to death here. Why????

Van Halen's picture

Here's the blog Weasel Zippers linking to the story where Hillary praises Greece's economic leadership...

 

http://weaselzippers.us/2011/07/19/hillary-clinton-praises-greeces-econo...

gwar5's picture

No surprise there, Hillary said her hero was Woodrow Wilson --- racist, segregationist, misogynist, progressive redistributionist, eugenicist, and birther to the Federal Reserve Act and the old money trust central banking cartel.

gwar5's picture

No surprise there, Hillary said her hero was Woodrow Wilson --- racist, segregationist, misogynist, progressive redistributionist, eugenicist, and birther to the Federal Reserve Act and the old money trust central banking cartel.

Dr. Engali's picture

Are you sure that headline shouldn't say: U.S. joins Greece in......?

EscapeKey's picture

Lying about personal deficits used to be all the rage. All the cool kids did it. I never realized it would start a trend amongst governments as well.

Van Halen's picture

Here's the blog Weasel Zippers linking to the story where Hillary praises Greece's economic leadership...

 

http://weaselzippers.us/2011/07/19/hillary-clinton-praises-greeces-econo...

scatterbrains's picture

help me close the circle on this thought...while cpi will be chained down leaving no income growth for the baby boomer bubble bitches reaching retirement age and their life savings wiped out by increases in gas, food and taxes..I know this is super duper bullish for commercial real estate but I'm not sure why..anyone have an explanation?

Lord Welligton's picture

Thursday after close of markets in Europe will be interesting.

Merkel has already said that there won't be a "once and for all" solution.

If they don't, this time, come up with something real then the shit will hit the fan.

No more kicking of cans.

No more platitudes.

No more bullshit.

 

AldousHuxley's picture

Merkel has already said that there won't be a "once and for all" solution.

 

Germany tried that before with Hitler, but it didn't work.

 

 

All is chosen's picture

I guess it must be Portugal's lack of importance, but that was last Friday's news in the BRP.

Edit: - I've never known ZH be so behind the curve, it's quite disconcerting

Tense INDIAN's picture

2 billion doesnt look collossal nowadays