Portugal Votes In Symbolic Ouster Of Failed Government, As IMF Is Now In Charge

Tyler Durden's picture

(This is the latest article in the Congress of Berlin 2.0 series, seeking to expose the ongoing scramble to "recolonize" an insolvent Europe according to the whim of the banking kleptocarcy, whose latest 'humanitarian' intervention is called a "debt-for-sovereignty" exchange . We expect many more in this series.)

Today, in a much anticipated outcome, Portugal will vote to replace the caretaker Prime Minister Jose Socrates with opposition center-right Social Democrat Pedro Passos Coelho. Alas this is largely a symbolic vote as the new guy is just a continuation of the policies of the old guy: "Passos Coelho, who cast his vote at a polling station in Amadora on the outskirts of Lisbon, where reporters by far outnumbered voters, said Portugal had to stick to the bailout terms to regain market confidence and return to growth." Even the young people understand this: "Ricardo, a voter in his late 20s, expressed a common view that any new government just has to march to the beat of the lenders' drum. "I think the election won't bring anything new because it's the IMF in charge of the country now ... Any party that gets to the government will just have to follow IMF rules, " he said." Spot on. And we wonder how long before Mohamed El-Erian, or some other actual thinker, has an op-ed discussing the pitfalls of what we have now trademarked as "The Congress of Berlin 2.0: the scramble for Europe."

From Reuters:

The Portuguese went to the polls on Sunday to elect a new government which will lead the nation through a period of deep austerity and recession after it received a 78-billion-euro (114-billion-dollar) bailout from the European Union and IMF.

The election will end a period of political uncertainty that started with the collapse of the Socialist government in March and led Lisbon to become the third country in the euro zone to seek a bailout after Greece and Ireland.

The Portuguese, who face unemployment at its highest level in three decades, are expected to reject caretaker Prime Minister Jose Socrates in the snap ballot and turn to opposition center-right Social Democrat Pedro Passos Coelho.

"In the markets, we will only have confidence if we are committed to the memorandum of understanding reached with the European Union and the International Monetary Fund," he said, adding that he was hoping for a "great result" in the ballot.

So Coehlo is worried about getting capital markets acces back: funny, so did Greece about a year ago. Now it is farther from accessing the bond markets than ever, and it has to contend with a Brussels-controlled privatization agency, which will apportion to spoils to the banking winners appropriately.

The latest opinion polls gave Passos Coelho around 37 percent support compared with 31 percent for Socrates, which will most likely mean that the Social Democrat will need to team up with the smaller rightist CDS party to form a majority in parliament.

"Both parties are strongly committed to the implementation of the bailout conditions and would easily negotiate a common economic program."

Oddly enough, none of these "leaders" understand that recovering from a massive recession, accompanied by fiscal austerity, will never work if still under the confines of a monetary regime. But they sure can try and pretend...

A center-right coalition government should be able to quickly enact reforms and austerity measures included in the bailout, such as sweeping tax hikes and deep spending cuts, to ensure the country reduces its large debts.

But Portugal's economy is expected to contract two percent both this year and next, raising tough challenges for any incoming government as the disposable incomes of the Portuguese decline and austerity takes its toll.

So far there have been few strikes and protests against the austerity, unlike in Greece and in neighboring Spain, but as the country's recession deepens that could change, analysts say.

In the meantime, the Irish Independent came out with an article titled appropriately "We will default, so let's get on with it"

Ireland will default, when it does happen we should not do it alone but
with Greece and Portugal; we should consider leaving Europe given how
badly they treat us; we need to take a scalpel to our public sector and
Ireland will take five to seven years from now to recover.

Alas, the banking syndicate will only allow this after it has succeeded in "privatizing" all the cash flow producing assets in its brand new colonies of Greece, Ireland and Portugal (soon Spain and Italy). We only wonder what role Russia will play in all of this, and more specifically, how Putin will react when he realizes what is really going on.

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mikla's picture

This will not end well.

Ireland has the right idea.  The IMF has no legal nor moral authority, and the people will soon figure that out.

HamyWanger's picture

"Ireland has the right idea.  The IMF has no legal nor moral authority, and the people will soon figure that out."

Repeating over and over the same thing won't make it happen. 

The truth is that outside of libertarian fringe groups, people are totally satisfied with the current world and by the bank bailouts. And what I assert will be confirmed by a reelection of a member of the current elite in the presidential elections to come.

mikla's picture

The truth is that outside of libertarian fringe groups, people are totally satisfied with the current world and by the bank bailouts. And what I assert will be confirmed by a reelection of a member of the current elite in the presidential elections to come.

Good luck with that.

Rather, I assert:

  • these elections will become increasingly irrelevant; 
  • social unrest will increase; 
  • the nations will default anyway;
  • the IMF will be kicked out;
  • there will be a world-wide re-forming of the economic system.

Your assertion that things will merely continue "as-they-are" is cute, but IMHO, not persuasive.

Ponzi systems end in conclusion.  You may not like that, but so it is.

Long-John-Silver's picture

Beans, Bullets, and Bullion Bitchez!

FeralSerf's picture

Guns, gold and gonorrhea bitchez!  

UGrev's picture

Bingo.. I just doubled the size of my garden this weekend. Bullets next week and bullion beginning next month.. rinse, repeat. 

Xaqaria's picture

The most cutting blow any individual can make against the banker elite is to quit their job, stop contributing to the current economic system and spend their time instead working in their garden to feed themself.

Actually, the most cutting blow that one could strike would be to convince a sizable number of others to do the same.

Azannoth's picture

Probably but not soon enough, and when the banksters feel the boot up their ass they will start another war or other distraction to keep in power

Caviar Emptor's picture

Keep telling yourself over and over that everything will remain the same and everybody loves the way things are going, Hammy.

You're gonna need plenty of reassurance. Maybe a little hand-holding from a Conservative candidate will help. 

"A Conservative is someone who believes nothing should be done for the first time. 

wandstrasse's picture

I read Hamy's post this way: We want to be fucked, we are fucked and we will be fucked eternally.

Kayman's picture


The truth is ...people are totally satisfied with the current world and by the bank bailouts.

Whistling past the graveyard does not make a coward any braver.

The truth is, we are witnessing a series of TREATIES OF VERSAILLE, fostering resentment that may well end in blood.

As I see it, soon there will be nowhere in the world for our criminal banking scum to hide.

Keeping wanking Hamy.

Ahmeexnal's picture

The winds of war across Europe.

The kings and queens need blood from the serfs.

Some heads are gonna roll.

FeralSerf's picture

Not to worry!  It's rumoured that a new GMO turnip will provide all the blood they will ever need or want.

TorchFire's picture

Will the people figure it out? Not every country is Iceland. Critical thinking skills have been largely extinguished, especially since gen Y has passed through the education machinery. Many have no time spent as adults living outside of a heavily regulated society and very little real life basis for understanding the possibilities of liberty and sovreignty.  For all their love for and understanding of technology, they have a difficult time even grasping how such innovation came into being.  (Hint: Beneficial innovation doesnt come from the likes of the IMF....unless measured by the scale of the spoils that benefit them)  I think I know what you mean about this not ending well, but perhaps it will end very well.  Primarily because there are still enough thinkers out there who have lived many years in a much more free world and will only accept so much tyranny before they act to stop it.  They will eventually create alot of problems for TPTB.  THAT is a damn good thing, but will be slow to arrive. Much more loss and deprivation before then but that is a necessary catalyst.

FeralSerf's picture

Nope!  Most of the people will not figure it out, because they're unable to.  They've been conditioned, brainwashed to be too stupid to figure it out.   Most Americans, by far, still believe that 9/11 was caused by 19 young, stupid ragheads directed by a kidney dialysis patient in an Afghan cave.  If Americans are unable to understand something THAT obvious, how are they ever going to understand something as complicated as the grand thefts that are being perpetrated in the financial markets?  Many Americans can't even count change, let alone do their own tax returns.

The same criminals own the the banks that own the media.  Americans watch TV, what -- 4 hrs a day?  They actually respect and believe those feckless SOBs!  The criminals also own the politicians and therefor the public education system.  They also own the food industry that's poisoning them with corn sugar and partially hydrogenated veg oil. They own the "health care" and insurance industries.  The proles haven't got a fucking chance of ever getting out of their stupor.  The few that do cause problems for TPTB will be eliminated with prejudice.

Welcome to the New Dark Ages.  The Bad Guys have won.  Learn to live with it.

TorchFire's picture

The narcississm of the "bad guys" and their perceived invincibility will be their undoing.  Ultimately there will be more bad guys when the good guys become bad guys, so you are right to go long with bad guys. Keep in mind that the cyclical nature of good/bad, tyranny/liberty has been oscillating throughout the ages. All it takes to shift the scale either way is a small, brilliant minority....as your own logic gives testimony to.  I agree with much of what you say. BTW, according to one source I read, the number of hours per day that TV is on in an average U.S. home: 6 hours, 47 minutes.

"The few that do cause problems for TPTB will be eliminated with prejudice."

So diehard cynics like you will be eliminated or will be compliant? I will just go Patrick Henry on their asses.

FeralSerf's picture

Patrick Henry didn't watch TV very much, and he was a member of TPTB in Virginia.

Diehard cynics like me will be eliminated if we get noticed and respected (fat chance!) by the proles.  Survivors will need to feign compliance if we don't believe the Party Line.

There may be some overlap on the TV watching for Americans, i.e. the little idiots watch in the morning and the bigger idiots at night.  Video game use may be changing some of these habits.  Whatever it is, it's got Americans controlled.

Very few Americans even know what narcissism means.

I agree that things will change.  The last Dark Ages only lasted a bit over 1,000 years.

Astrolabe's picture

"The narcississm of the "bad guys" and their perceived invincibility will be their undoing."

Except that most all Americans don't even know who the bad guys ARE to notice whether they're narcissistic or not!

I have learned so much from the people on this site in the last couple of months. But as an outsider I can assure you that this country is so polluted with partisanship / ideology / stupidity / apathy that even when push comes to shove - even if hunger snaps to the population to attention - they will have no idea who to blame. And even if they get wind of the correct culprits, they are ripe for instant control / distraction.


Screwball's picture

Well said FS.  I happened to look at the TV ratings today.  The the week ending last week the top 5 shows on broadcast TV were:

1 American Idol-WEDNESDAY   FOX 9.2 12,142 2 American Idol TUE SP-5/24(S) S FOX 6.4 8,351 3 Dancing with the Stars   ABC 4.7 6,189 4 DANCING W/STARS RESULTS   ABC 4.6 6,043 5 Glee

Tells us about all we need to know.

fxrxexexdxoxmx's picture

Calling hate filled murders who follow the Koran "stupid ragheads " is not polite. 

JW n FL's picture

Crusade! Bitchez!!


no worries! the rapture crowd, Baptisits and several other idiots groups make my to do list before even begining to think about rag heads.

dolly madison's picture

We gotta help them figure it out.  What I do is write on money to spread the news.  Any graffiti or flyers will help the news spread.  The more people see it, the more likely they will believe.

Xaqaria's picture

writing on money is a great idea (I had the same one recently ;) ). It's the one type of "flyer" that no one will throw away and will definitely pass on to someone else.

If you don't mind me asking, what do you write?

GeneMarchbanks's picture

Wash, rinse, repeat. This will be ongoing until it isn't. Surely, at some stage, some country will have a military coup? no?

Kayman's picture

some country will have a military coup? no?

Greece, Spain, Portugal, Russia, in that order.

Perhaps, if we are lucky, Hamy will be visiting and can tell the peasants how lucky they are to be paying interest on loans from money created out of thin air for the banking scum.


equity_momo's picture

Iceland is still the only Nation on the planet that has proven its people have balls. Everyone else : faggot-ville.

ibjamming's picture

Iceland also has only what...a million people?  And they're all white...  They have quite an advantage...not much dead weight around their neck.

Caviar Emptor's picture

Ahh but as a small country it took even more balls to break with the banks and the big bad Euro countries, IMF and US Fed. 

Bam_Man's picture


In PIG-pen countries all the "other peoples' money" is gone.

It's hilarious to watch the sheep change governments like dirty underwear hoping that more "other peoples' money" will magically appear.

FeralSerf's picture

Or that they can somehow repossess that soul they sold to the devil.  "Hilarious" might not be the best word to describe the process.  I suggest "pitiful".

The sheep don't seem to realize (yet) that that government they're "changing" to has the same owners as their last government and those owners are not the sheep.  Sheep never elect their herders.  The Flock Owners do.

AgShaman's picture

Dey wants da gold (IMF)

Nations that have some will be attacked


Caviar Emptor's picture

Perhaps we should all have symbolic votes every few weeks. Would keep the peasants from revolting. Of course it would put lots of egg on lots of faces. 

Kayman's picture

The peasants may revolt, but the banksters are revolting.

ebworthen's picture

Not much different than our situation in U.S.A.

We'll get 15 months of good capital blown on non-stop T.V. ads and wind up with two choices, neither of which will lead anywhere but the bogs of Washington, of CONgress, of a failed Judiciary, and obescience to Wall Street not the people.

BTW - Today is my one year anniversary on ZH, thanks to Tyler and all the posters and commentors, it's been a good year.

AgShaman's picture

The proper way to track the US Economy is by tracking the success rate of "reality tv" shows that make it past season one and onto a second. Compare that pass/fail ratio with the pass/fail ratio of hedge funds surviving....it will clue us in to how asleep the citizenry remains.

Most of the US population has no idea of the riots and protests around the world....or of the ramping up of police state brutalities.

Congrats on your 1 year anniversary. I enjoy reading your posts.

I've a long way to go for a 1 year....maybe there will still be internet by that time. Of course it does seem like the "silencing of the problem children" is right around the corner with govt. endorsed "lip zipping" under the auspices of "internet security". ZH will no doubt become a 'prime candidate' for such a silencing via shutdown or identity verification.

Be well....stay in your "precious" positionings

XenoFrog's picture

Congratulations. Your present is to be added to the list of people who will be 'disappeared' when the crackdown starts. At least you're in good company.

slewie the pi-rat's picture

+ eb 1.0

this is hopeful:  freakin irish are catchin on, here...

Ireland will default, when it does happen we should not do it alone but with Greece and Portugal; we should consider leaving Europe given how



Kayman's picture


Congratulations on a year at fight club. The smell of blood trumps napalm in the morning.

Ideas are far more dangerous than guns.

Lionhead's picture

"(This is the latest article in the Congress of Berlin 2.0 series, seeking to expose the ongoing scramble to "recolonize" an insolvent Europe according to the whim of the banking kleptocarcy, whose latest 'humanitarian' intervention is called a "debt-for-sovereignty" exchange...)"

This is brilliant; why didn't Hitler think of this earlier in the previous Great Depression? With just financing from TPTB, he could have sucked Europe dry for cash flow, plundered & looted all their assets, given the TPTB their cut, & lived happily ever after in the new Nationalist Socialist state at the top of the pyramid.

Now, TPTB have advanced their designs & eliminated the military "middlemen." Who needs them anymore with such a dumbed down, docile & defeated population. The "3D'ers" will likely welcome this "new world order."

Bam_Man's picture

"why didn't Hitler think of this earlier in the previous Great Depression?"

Because for Hitler and his cronies the looting was not enough. What they were really after was the Lebensraum (minus the indigenous inhabitants of course).

zaknick's picture

If the wealthiest industrialists and banksters from the US, England, Germany and Switzerland where behind Hitler like jewish researcher Edwin Black proved, I don't think it was "Lebensraum" at all they were after.

FeralSerf's picture

That "Lebensraum (minus the indigenous inhabitants of course)" sounds more like Palestine.

Hitler was stupid.  Like Bush, TR and their ilk, he preferred the stick over the carrot.   It made him feel powerful knowing he had the (immediate) power of life and death over his subjects.  He didn't understand that one can steal much more -- and one has a better chance of keeping the loot -- with the (metaphoric) pen than the sword.

Kayman's picture

Hitler was stupid...one can steal much more... with the (metaphoric) pen than the sword.

True... but the criminal banksters have the same problem that Hitler saddled himself with, the same problem why Hitler continued to plunder other nations...

The game needs to be financed, and the productive assets of all indebted nations cannot carry the interest on the "loan" sharking by the IMF/World Bank/Fed Cartel.

Matrix R Us's picture

Portuguese here, also 1st time poster altough I've been lurking zh for some time now.

Passos Coelhos showed months ago that he had no problem with the way José Sócrates was governing the country, only with Sócrates himself. He will now take power and proceed to suck banker cock like the previous governments while the IMF rapes the Portuguese people.

Most of us receive money from the Portuguese states so I really don't think will eventually see people in the streets demanding their freedom but rather more bread and circus for their servitude.


Portugal lacks leadership. We need a liberal/libertarian party capable of destroying this cancer that goes by the name of Portuguese state which turned men into parasites and destroyed private iniciative. We of course also need to learn with only the fruits of our labor. A default would assure that since hopefully nobody would borrow us any money.

Mark my word, my country will never prosper until we have a new constitution. Our current one is filled with socialist bullshit like universal healthcare and redistribution of wealth...

Regards to all the good people of ZH, we live in interesting times indeed and our war is a tough one. Good luck.


sabra1's picture

just curious as to why if both parties are similar, why not have a protest vote, and not vote at all? people have the power, use it!

Matrix R Us's picture

That's what Im doing today :) I refuse to pick between shit.

Plenty of Portuguese people will not vote in this banana republic elections.

slewie the pi-rat's picture

well, thank you for lurking and for not lurking, today, b/c i like those little details of the political life which is, admittedly, pretty fuking hard to take, sometimes, no matter how many years we have logged.  your image of the bankster horn section helps!