This page has been archived and commenting is disabled.

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.

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 07/19/2011 - 15:22 | 1471470 Gubbmint Cheese
Gubbmint Cheese's picture

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

Tue, 07/19/2011 - 15:30 | 1471504 Sudden Debt
Sudden Debt's picture

HOLES LIKE SWISS CHEESE!

 

Tue, 07/19/2011 - 15:37 | 1471539 citta vritti
citta vritti's picture

and odors like limburger or several others - 

http://blog.hotelclub.com/top-10-stinky-cheeses/

Tue, 07/19/2011 - 15:36 | 1471527 bankrupt JPM bu...
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

Tue, 07/19/2011 - 15:38 | 1471546 JohnG
JohnG's picture

The bitch.

Tue, 07/19/2011 - 16:33 | 1471730 DoChenRollingBearing
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!

Wed, 07/20/2011 - 03:20 | 1473019 ZeroPower
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.

Tue, 07/19/2011 - 15:24 | 1471475 the not so migh...
the not so mighty maximiza's picture

The BS is gonna run out

Tue, 07/19/2011 - 15:31 | 1471507 knukles
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.

Tue, 07/19/2011 - 15:26 | 1471488 SilverRhino
SilverRhino's picture

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

Tue, 07/19/2011 - 15:28 | 1471497 TaxSlave
TaxSlave's picture

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

Tue, 07/19/2011 - 15:36 | 1471508 Long-John-Silver
Long-John-Silver's picture

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

Tue, 07/19/2011 - 15:53 | 1471599 TaxSlave
TaxSlave's picture

Yeah, I learned that here.

Tue, 07/19/2011 - 15:41 | 1471548 Bay of Pigs
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.

 

 

Tue, 07/19/2011 - 16:35 | 1471743 DoChenRollingBearing
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!

Tue, 07/19/2011 - 15:40 | 1471530 knukles
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?

Tue, 07/19/2011 - 15:51 | 1471592 unununium
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.

Tue, 07/19/2011 - 15:26 | 1471490 TaxSlave
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.

Tue, 07/19/2011 - 15:26 | 1471491 speconomist
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.

Tue, 07/19/2011 - 15:29 | 1471499 NERVEAGENTVX
NERVEAGENTVX's picture

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

Tue, 07/19/2011 - 15:30 | 1471501 TradingJoe
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):)))!

Tue, 07/19/2011 - 15:30 | 1471502 Buckaroo Banzai
Buckaroo Banzai's picture

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

Tue, 07/19/2011 - 15:39 | 1471549 papaswamp
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.

Tue, 07/19/2011 - 15:44 | 1471575 Buckaroo Banzai
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!

Tue, 07/19/2011 - 15:52 | 1471590 Buckaroo Banzai
Buckaroo Banzai's picture

dupe

Tue, 07/19/2011 - 15:31 | 1471506 vitoox
vitoox's picture

Max Keiser's yesterday news.

Tue, 07/19/2011 - 15:35 | 1471523 The Count
The Count's picture

Rome will burn.

 

 

Tue, 07/19/2011 - 15:36 | 1471526 treemagnet
treemagnet's picture

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

Tue, 07/19/2011 - 15:38 | 1471540 Long-John-Silver
Long-John-Silver's picture

With Ben Bernanke's signature on them.

Tue, 07/19/2011 - 15:41 | 1471558 buzzsaw99
buzzsaw99's picture

+1

Tue, 07/19/2011 - 15:37 | 1471533 papaswamp
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.

Tue, 07/19/2011 - 15:37 | 1471536 youngman
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

Tue, 07/19/2011 - 15:42 | 1471565 Long-John-Silver
Long-John-Silver's picture

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

Tue, 07/19/2011 - 16:38 | 1471754 DoChenRollingBearing
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

Tue, 07/19/2011 - 15:38 | 1471544 Dick Darlington
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.

Tue, 07/19/2011 - 15:39 | 1471547 Cassandra Syndrome
Cassandra Syndrome's picture

This is bullish. 

Tue, 07/19/2011 - 15:40 | 1471552 EscapeKey
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.

Tue, 07/19/2011 - 15:40 | 1471554 AccreditedEYE
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.

Tue, 07/19/2011 - 15:40 | 1471556 monopoly
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????

Tue, 07/19/2011 - 15:41 | 1471557 Van Halen
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...

Tue, 07/19/2011 - 16:32 | 1471726 gwar5
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.

Tue, 07/19/2011 - 16:33 | 1471732 gwar5
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.

Tue, 07/19/2011 - 15:41 | 1471560 Dr. Engali
Dr. Engali's picture

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

Tue, 07/19/2011 - 15:42 | 1471562 EscapeKey
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.

Tue, 07/19/2011 - 15:42 | 1471564 Van Halen
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...

Tue, 07/19/2011 - 15:59 | 1471612 scatterbrains
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?

Tue, 07/19/2011 - 16:07 | 1471638 Lord Welligton
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.

 

Wed, 07/20/2011 - 02:13 | 1472979 AldousHuxley
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.

 

 

Tue, 07/19/2011 - 16:27 | 1471681 All is chosen
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

Tue, 07/19/2011 - 16:18 | 1471683 Tense INDIAN
Tense INDIAN's picture

2 billion doesnt look collossal nowadays

Tue, 07/19/2011 - 16:28 | 1471715 gwar5
gwar5's picture

Now it's Ireland's turn, then Italy, to confess where the rest of the economic bodies are buried, undertakings courtesy of Goldman Sack, sovereign morticians.

Tue, 07/19/2011 - 16:48 | 1471807 The Count
The Count's picture

Right out of the presidents "I never had sex with that woman" mouth!

 

Tue, 07/19/2011 - 17:19 | 1471945 Cassandra Syndrome
Cassandra Syndrome's picture

INTERESTING STORY ON THE RUMOUR MILL

 

There are rumours floating in Ireland this evening that the Central Bank has been printing punts for the past couple of weeks and there is going to be a major announcement this Thursday revolving around Ireland leaving the Eurozone. I will keep you posted on this development, if any. 

Tue, 07/19/2011 - 22:24 | 1472710 bakken
bakken's picture

Hope this is true.

Tue, 07/19/2011 - 19:09 | 1472257 midnight
midnight's picture

Read again: "left by the outgoing SOCIALISTS". This is not about finance, it's about POLITICS. That "colossal" was pulled out of the new (right-wing) prime-minister ass. Then right-wing media dissing left-wing parties, oh my, so unheard of!

Tue, 07/19/2011 - 21:12 | 1472552 Buck Johnson
Buck Johnson's picture

They are just delaying the inevitable thats all. 

Wed, 07/20/2011 - 06:25 | 1473091 Version 7
Version 7's picture

Portugal has further liabilities with the so called PPPs, Public/Private Partnerships, which amount presently to around 30%+ of public debt/GDP and that are not currently on the books. They start to come due from 2013 onwards.

Do NOT follow this link or you will be banned from the site!