Theater Of The Absurd: Greece Has Already Missed Its June Budget Target

Tyler Durden's picture

The 5th Greek bailout tranche has not been delivered yet, under the very, very strict condition that the country adhere to the terms of its pillaging by European banks, and already Greece, which has proven beyond a reasonable doubt that a country that refuses to do work, and conducts full day strikes on a whim actually does not grow, has just fallen behind a critical monthly Troica benchmark. From Dow Jones: "Greece is at risk of missing a key budget target in June, European Union experts said in a report, a sign of the uphill struggle the country faces as it tries to get its deficit reduction plans back on track. The report, prepared by European Commission budget experts with input from European Central Bank officials and published over the weekend, says that Greece could miss its June target for its primary budget balance, a measure of the government deficit that excludes interest payments on outstanding debt." And here is why the last thing anyone in Europe cares about is actual Greek growth: "Government revenue faces "significant" shortfalls that have only partially been offset by lower spending and delayed payments, the report says. "As a result, the quarterly performance criterion on the primary balance could be missed already in June." June. As in before the disbursement of cash contingent on the primary balance being met...

More:

The EU and the International Monetary Fund expect Greece's primary deficit to be 0.8% of gross domestic product at the end of this year. The Greek government hopes that austerity measures approved by the Greek parliament last week can put the country back on track to hitting that target.

So with Greece already more bankrupt than a short month ago, next up is the super-duper strict, and extremely credible, European stress test round 2 which will find that all European banks, especially those about to fail, are more solvent than they have ever been.

Which brings up the next question: in a bankrupt world in which the official newsflow is one farcical lie after another, why even bother any more.

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Reese Bobby's picture

More austerity!  Maybe cut out one meal a day and stop having kids?

Sudden Debt's picture

Or more Kids and sell them to the Africans?

 

Ahmeexnal's picture

Did Greece read the fine print on the conditions of the "bailout loan"?

Massive forced sterilization.
And no "free Tata Nano" as in India.

http://www.bbc.co.uk/news/world-south-asia-13982031

Oh regional Indian's picture

That has to the weirdest India story in a while. Become half a man, get a free four wheel motorcycle, feel like a full man again.
Firing blanks, India style.

ORI

trav7777's picture

this is a fantastic idea...they need to implement that in africa and in the USA as well, everywhere in the 3rd world.  I love the idea of incentivizing the teeming masses not to have more children.

We should give high IQ people a free car to have kids

Bob's picture

You obviously haven't been to a MENSA meeting.  Either that, or you're one of the dweebs who are always there?

max2205's picture

At least the weather is nice here in the Hamptons

MolotovCockhead's picture

No, sell them to European pedophiles......you get better price. Contact the Vatican first, Catholic priests are always interested in such deal.

trav7777's picture

Africans already can't feed their own kids without massive continual western food aid.  If that aid ever stops, tens or hundreds of millions will die

MadeOfQuarks's picture

They don't really need western food aid, but have become dependent on it because it's there. Producing food is just about the only thing they know how to do, but when you get free food why bother?

sun tzu's picture

The other choice is for the greeks to start working and making products and services that other people want. That's how the rest of the world survives. Nobody forced them to borrow money to take bailouts. They can simply default and live within their means. That means they either consume less or produce more. 

Version 7's picture

The pace of events is becoming to be so unreal, it gets more and more difficult for us folks to come up with a rational post of some sort. Reallity doesn't help indeed.

Oh regional Indian's picture

The "pace" is key. Paying attention to the general acceleration is a huge tell tell in terms of where we are headed.

ORI

http://aadivaahan.wordpress.com/2011/07/04/a-year-and-a-day-later/

LMAO's picture

If that's the case, they better get on the phone with the IMF and ECB ASAP and tell them to raise the bailout ceiling pronto.

LMAO

 

digalert's picture

IMF (verb)

definition: I 'M' Fucked

Usage: "I tried my best and now I M Fucked.

Mae Kadoodie's picture

IMF=It's My Funding...and i'll cry if I want to...(you would cry too if it happened to you)                                                                                  

Sudden Debt's picture

:)

It's My Funding, and YOU can Cry if YOU want to but we won't give a shit.

Popo's picture

Lending people absurd amounts of money is only slightly less stupid than asking people with an obviously infinite credit line, to live frugally.

This is already comical.

zeusman's picture

Were you talking about the endless line of free money to the investment firms e.g. Goldman and their subsequent irresponsible issuance of record bonuses??  Just curious..

centerline's picture

Party on before the credit line gets shut down.  Drinks for everyone!

slow_roast's picture

Can't they just value the country at $500B, cut off 1/3rd of it, and call it a day?

Maybe they can hand over the rest of the country to Libyan rebels and let them have at it.

zeusman's picture

Which brings up the next question: in a bankrupt world in which the official newsflow is one farcical lie after another, why even bother any more.

 

Why? The "Lies" are working.. No?  People all around the world still go to their local ATM's and pull out paper currency of which a dollar bill will still buy you 1 bean burrito at Taco Bell..    Fiat fast food is delicious

trav7777's picture

those still come without sawdust, right?

zeusman's picture

No sawdust but a healthy dose of genuine simulated beef.

thunderchief's picture

OK.  Greece is a country in Southern Europe.  It was where the Empire of Greece began over three thousand years ago, and where there are still still ruins such as the Parthenon and Acropolis.  There are many gods that are from this period, and some of them have as much legitmacy as many western gods today. Thankyou and have a  nice day. 

sun tzu's picture

Thanks for the history lesson. So what's your point?

nickels's picture

Trade stocks, invest in entropy.

Jambo Mambo Bill's picture

This wasn't a surprise at all... However the coming events will be entertaining to watch just like the band playing in the last moments as the Titanic sank.

Reese Bobby's picture

"You can't really dust for vomit."

- Nigel Tufnel

tao400's picture

Actually Tyler the correct question "in a farcical world...." is how to protect yourself. That really should be the discussion at this point forward. Please post articles about this. Obviously, we know that gold and silver is a solution. However, it would be nice to read an article that talks about a whole portfolio of things with a degree of subtlety that can be done to protect yourself. Faber and Rogers hint at it over and over.

zeusman's picture

Evidently short term bonds of countries deemed to big to fail (see Greece last week) appears to be a good risk free trade.

tao400's picture

I put some money in the Pimco Total return fund hoping those guys got me covered in that regard.

smiler03's picture

+1

Top German Economist invests in Greek Bonds.

"Homburg: In recent days, I myself have invested a considerable sum in Greek bonds. They will mature in one year's time and, if all goes well, produce a 25 percent return on investment. I sleep very soundly at night because I believe in the boundless stupidity of the German government. They will pay up."

http://www.spiegel.de/international/europe/0,1518,770673,00.html

Kokulakai's picture

Perhaps they will be awarded the Giosmas discount.

partimer1's picture

The whole bailout thing is the European countries give money to big European banks, just like US fed reserve give money to TBTF banks. Greece is just a conduit for this to happen.

Who the fuck in the right mind will give a red cent to Greeks, expect them to pay back?

tao400's picture

They are not in their right mind. In fact, they are freaking. The whole thing is hanging by a thread due to the derivatives. They have no other choice. Again, the question is how to protect yourself. Gold, silver, store food, invest in foreign countries. It would be nice if we knew for instance what Bill Gross, Jamie Diamond and others etc are doing. They already know what will happen.

Joebloinvestor's picture

Theater of the absurd.

The EU is funding the Greek strikes.

americanspirit's picture

What is so breathtaking about the EU machinations regarding Greece is how many more countries are equally on the verge of insolvency. It isn't even conceivable that the EU banking system could address multiple defaults occurring simultaneously or even sequentially when you look at the Keystone Cops approach they are making to this one very small country. And by the way, anyone laughing their ass off at 'those lazy Greeks' better look in the mirror - the Greeks are no more and no less addicted to the welfare state than most of the rest of the world. Coming soon to a theater near you - and I do mean you (and me too) - Meltdown.

Popo's picture

The only reason the nations of the world haven't been spending their days invading and killing one another (as has historically been the case) has been due to the 'wealth effect' of credit creation.   

Now that those days of credit expansion are over,  we will shortly be resuming our regularly scheduled activities.

Toxicosis's picture

Agree 100%.  Even though many may be on food stamps in your country, access to credit in multiple forms as here in Canada has artificially supported consumption and survivability.  When people lose their capacity for an even meager survival, desperation kicks in, and yes regularly scheduled programming vis a vis war and chaos is the treat of the week.

Toxicosis's picture

Agree 100%.  Even though many may be on food stamps in your country, access to credit in multiple forms as here in Canada has artificially supported consumption and survivability.  When people lose their capacity for an even meager survival, desperation kicks in, and yes regularly scheduled programming vis a vis war and chaos is the treat of the week.

Ghordius's picture

We have several going on

Xaqaria's picture

What nation isn't invading and killing people right now?

disabledvet's picture

Bother with not being a media enterprise to begin with?  It is said of Oracles that they themselves are a form of media so it may not be possible to ever turn off Zero Hedge whatever's one view of the site as it may simply engage in some form of tranferrence from one person to the next.  What the USA bailouts represent to me is a fighting chance for a new beginning.  What happens when Greece defaults as it now appears it was suppose to have today?

http://www.youtube.com/watch?v=IpSgK5mamAA&feature=player_detailpage

LRC Fan's picture

Greece can and should just keep taking more and more bailout money, and then when the payments come due tell everyone to fuck off.  The way things are today, the EU/China/US will keep throwing good money after bad until the problem goes away, which it never will.  I say keep spending more, missing your budget targets, lowering your GDP, and increasing your national debt, then ultimately defaulting.  Maybe that will finally implode this fucked up system of fiat, endless bailouts, and warfare/welfare bullshit. 

It's not like the normal citizens of Greece are seeing a dime of this bailout money, just like here in the US.  I didn't see a fucking penny of the TARP or AIG bailouts, yet "we the taxpayers" were supposedly paid back in full.  So I say let the governments of the world print, bailout, borrow, tax, and spend at an ever higher rate, so that the system simply collapses. 

Superslam's picture

This is getting really crazy. Whenever the fundamental weaknesses of the neofunctionalist Eurofantasy manifest themselves, the EU kicks the can some more, and the Euro goes higher with each new "solution." I can't wait until S&P says that they were just joking, and that the Greek debt restructuring is actually not a default. That should be good for another 400 pips on the EUR/USD