Spain Promises Much, Does Little And Will Tap Social Security Reserves For Funding

Tyler Durden's picture

Lots of headlines but little action. Germany will not be pleased:

  • SAENZ SAYS SPAIN PLANS 43 NEW LAWS TO BOLSTER ECONOMY
  • SAENZ SAYS REFORM PLAN IS TO MEET PLEDGES TO EU PARTNERS
  • SPAIN APPROVES DECREE ON WAGE BARGAINING
  • SPAIN APPROVES INCENTIVES FOR ENERGY EFFICIENT VEHICLES: The SEAT VOLT is coming to Ibiza!
  • SAENZ SAYS SPAIN TO PAY EU1,000 SUBSIDY PER EFFICIENT VEHICLE

The kickers:

  • SPANISH BUDGET BASED ON UNCHANGED ECONOMIC FORECASTS, SEES GDP DOWN 0.5%

In other words everything will be massively wrong for the country with the epic bank run. And the one the people have been waiting for:

  • SPAIN TO TAP €3 BILLION FROM SOCIAL SECURITY RESERVES IN ORDER TO FUND LIQUIDITY NEEDS.

Incidentally this is the same fund which has 9 months of pension reserves and is invested in... drumroll... Spanish Bonds!

And cue to the riotcam.

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Lost Wages's picture

They're just going to dip into pension reserves. Just dip their toe in. Just a little dippity dip. Nothing to worry about.

Fluffybunny's picture

Dipping into pension reserves just means they have a couple more weeks for them to try and find a solution and come up with nothing.

Lost Wages's picture

And then they will dip again to buy some more time... then another little dip. Because resistance is futile and they will be assimilated.

Debtonation's picture

So, does this mean they are going to sell their SS bond IOUs and replace them with bonds backed by bonds?  Like and IOU squared? This is getting interesting!

i-dog's picture

A repeat post (I thought it was worth it!):

The sooner that the European nation states and the US sovereign states secede from their respective central politburos, the sooner we can take control of the collapse and the direction that the Ordo ab Chao aftermath takes.

Otherwise, the globalists dictate the fall and the terms of an unconscionable aftermath.

Sofa King's picture

Looks like they are playing the "Just the Tip" game and it will feel good, they'll go all in and poof...no more social security.  Coming sure to a country near you...

seek's picture

Spain is soo slow... The US did the tapping SS for cash years ago!

SMG's picture

They say the Devil's water it ain't so sweet
You don't have to drink right now
But you can dip your feet
Every once in a little while

-  When you were young - Killers

Killtruck's picture

That reminds me of a game I used to play called "Just the Tip".

youngman's picture

So how many kids do you have now????

CPL's picture

If they put their toe in the financial Whirlpool of doom, the best they can hope is losing a leg.

 

I have it on good authority from 1950's Sci-fi adventure serials that what happens near whirlpools and quicksand.

oleander garch's picture

If this wasn't Spain, they would call it "Simpson-Bowles."  A banker-politician panacea for the rent collectors. 

aint no fortunate son's picture

And US markets explode on more promises of puppy dog kisses (Reuters)

Dre4dwolf's picture

Definition Politics:

The process of delaying a problem until it is no longer relevant.

 

Pensions, SS are going to vapoirze, I expect all of spain (every citizen) with debt to essentially default over-night, its pretty much the end of spain, they lost the monopoly game that they were playing with the other euro nations and got wiped out.... bad roll of the dice.

 

Government is probably going to be replaced/revolution because when you take the savings of your entire population and give them nothing for it back, they usually get pissed off and do something about it.

 

Big Swinging Richard's picture

That's nothing.  Just wait till Timahy and Uncle Ben start raiding the G-fund and SS here in the states once we back up next to the debt ceiling.  

CommunityStandard's picture

Already been raided.  Now we just add 0's to the treasury accounts.

tekhneek's picture

I can't see anything wrong with buying your own bonds, much less Spanish bonds!

Nothing to see here... Cue the recovery!

Debtonation's picture

This is like monetizing your own debt without actually printing money.  Genius!

donsluck's picture

Printed money? How last milleneum!

FL_Conservative's picture

Apparently this "fixed" the EUR, as the EUR/USD just swallowed the little blue pill.

j0nx's picture

Just the tip baby, just the tip.

mick68's picture

With it this bad and Germany still holding the party line, I know for certain tey have a gun to their head by the EU masters. No more wondering if the EU "Is meant to fail," for if it was, they have 101 excuses to do so right now.

kaiserhoff's picture

Sure, raid the kid's piggy bank.  That solves everything.  $20.00 on Sea Biscuit in the third race...

pods's picture

With Spiderman riding him he is a lock!

pods

hedgeless_horseman's picture

 

 

  • SAENZ SAYS SPAIN PLANS 43 NEW LAWS TO BOLSTER ECONOMY

Why not even more laws to bolster the economy that much more? 

These "Law-Makers" are such pussies! 

Saro's picture

 

 

  • SAENZ SAYS SPAIN TO DRILL 43 NEW HOLES IN HULL OF TITANIC TO "LET THE EXCESS WATER OUT"
  • SAENZ SAYS SPAIN TO PASS 43 NEW LAWS SO THEY CAN FIND OUT WHAT'S IN THEM
  • SAENZ SAYS SPAIN TO STAND IN BUCKET AND PULL ITSELF UP BY HANDLE

All fixed!

HaroldWang's picture

Amazing how the same old shit gets recycled, repackaged and the market acts like it's never heard of such possibilities. This is the greatest magic act of all time - market goes down, just rehash the same nonsense and presto! up she goes!

MsCreant's picture

Must be easy to put on a magic show for autistic children...or maybe retarded ones...

CrashisOptimistic's picture

You will come to understand it only when you fully embrace the reality that the world you grew up in doesn't exist anymore.  There is no market.  There is only computers, and they read headlines.

The headline phrasing is PROVIDED to the EU and they are careful to use it as specified in their announcements.  Then you get the "market" reaction desired.

It's all bullshit.  Walk away from it.  Find a farm.  The whole thing is going to fall.  No, don't try to "short" it.  Don't buy gold.  The whole thing is going to fall.  Farmland is the only hope.

TNTARG's picture

I'm placing into the markets the derivates of tickets' entrance to my farm in Patagonia. Goldman Sachs is negotiating it with great success. I'm thinking about QEasing ing ing tickets also. Ah! Long live to the finantial casino! Everything can be "collateralized" and "QEasingnized"! Many times! (By the way: the ones you have the original tickets don't have to worry: I've hired BlackWater to watch over the farm).

Induced Coma's picture

You, Sir - are on point. Sooner people wake up to this reality the better. Actually - time is short - if you're someone who hasnt got this by now - you are fecked.

 

IC

Kobe Beef's picture

 buy Microsecond Arbitrage.

[sarc]

Meesohaawnee's picture

que a AAPL ramp. distraction bitchez

LULZBank's picture

This is how it says on BBC!

Among the key points presented by Deputy Prime Minister Soraya Saenz de Santamaria were:

  • a 12% average cut in ministerial spending
  • a freeze in public sector pay for the third consecutive year
  • a new independent authority to monitor government finances
  • an increase in pensions funded by drawing on 3bn euros of reserves

 

An increase in pensions??? Positive rite?!

http://www.bbc.co.uk/news/business-19733995

Tijuana Donkey Show's picture

End of quarter coming up, and you can't have the hedgies coming up short of fees with their biggest hotel. Gotta get my 2 and 20 bitches! Oct 1 is tooooooo late. 

libertus's picture

The end game is upon us. The same shit will happen in the States when the FED is forced to raid the "SS Trust Fund" (there is nothing there...it was raided long ago.) The reaction of the people to this will tell us a lot about the strength of the revolts in Europe. If they don't hang some banksters and political whores it is full speed a head with the depression and collapse. 

john39's picture

yeah, but 401k's must look mighty appetizing to the beast....

Whiner's picture

These last EU generations have been coddled and raised by The State, "They is ruint! I'm telling you!" they can't work and never learned to pray. Coming to a town near you, Citizen.

j0nx's picture

Same thing here in the states. Welfare is more profitable than working at the local grocery and thugging is more fun than being pious and having honor. In fact it is and has been pretty much federally funded open season on Christianity here for the last decade. Anyone not invested in ammo and firearms at this point hasn't been paying attention for the past decade. It will get bad when the state economies start to drop like flies.

Nothing To See Here's picture

Of course, every economics PhD on the planet knows that you create economic prosperity by writing laws, not by producing more! Paul Krugman must be of Spanish ancestry.

youngman's picture

Actually Spain has some assinine labor laws....I am assuming that these new laws are to lesson those....but probably not....

Nothing To See Here's picture

If you really want to lessen the regulatory burden of the labor market, you repudiate laws, you don't make new ones... just sayin...

CrashisOptimistic's picture

Oil scarcity won't permit you to produce more.

Ever.

Please, folks, find a way to get to a farm.  I know how hard it is to reject the presumption that the internet is the path to riches, but it simply is not in the New Normal.

A lot of people are going to die, soon, and your only hope is to have access to and be welcome at a farm.

Bananamerican's picture

yeah, buy a farm before you buy the fucking farm!....y'allz

Dr. Richard Head's picture

Thanksfully ZH framed the message that the looting is targeting the benefits that Spainiards CONTRIBUTED TO and not entitlements.  Think of what will happen with the gray hairs in the US seeing the looting of THEIR FORCED CONTRIBUTIONS.  Lies, damned lies of the politic.  Promises that can never be kept.