Greece Is Saved, Again, As Eurozone And IMF Reach Deal On Greek Debt/GDP of 124% By 2020

Tyler Durden's picture

No 4:00 AM morning session this time, as the general revulsion to even pretending to work on behalf of a totally destroyed country is tangible:

  • EURO ZONE MINISTERS, IMF REACH DEAL TO CUT GREEK DEBT TO 124 PCT/GDP IN 2020 THROUGH PACKAGE OF EXTRA STEPS TOTALLING 20 PCT/GDP -OFFICIAL

Phew - great, Greece is fixed or something. The only problem, of course, as we explained earlier, is that Greece has to magically grow its GDP by EUR 50 billion from EUR 184 billion to EUR235 billion by 2020 for this 124% debt/GDP to be hit (and another EUR 20 billion in the next two years). No, really.

Behold, Europe's magic stick, which puts every "hockey stick" ever conceived to shame.

And this is how previous IMF projections of Greek economic results have fared:

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lineskis's picture

"Saved" with Debt/GDP of 124% by 2020 ?!?

Saved by being burried alive... Brilliant!

 

Looney's picture

One thing is missing in the 2-nd chart after the 2 Oops's - O-o-opa!!!

I think, it is time for Greece to declare war against China and, ten minutes later, sign an unconditional surrender.

It will be easier and faster for Greeks to learn Chinese than to change the direction of their GDP.

Oops! Oops! O-o-opa!

Looney

BraveSirRobin's picture

Novel thinking. Good show!

CH1's picture

For how long can Wile E. Coyote hang over the canyon?

The wait is sickening.

Skateboarder's picture

I like how no one ever publicly mentions how embarrassing a 124% debt/gdp ratio even is. Is there no more shame?

EnslavethechildrenforBen's picture

Greece raped and sodomized again.

Wash, rinse, repeat.

Looney's picture

Well... They (the ordinary Greeks) haven't done anything to change things via either Elections or Pitchforks. So, they must be enjoying things ju-u-ust the way they are. I guess?  ;-)

EscapeKey's picture

this is a realistic plan, and all important milestones will be executed well ahead of schedule, just like all the previous times.

and in the event this plan doesn't work out exactly as planned (hearsay!), this could in no way have been foreseen, and even so, no establishment economist will be fired as a result.

i should have become an establishment economist. even when you're completely, smashingly wrong, you can still rely on not getting sacked. ever. or admit any kind of error.

Looney's picture

.  Cui Bono?

Miso Soup!  ;-)

MsCreant's picture

Gold Flash crash? Holy crap!!

mademesmile's picture

whoa, had to open a kitco tab to see - well worth it. Wish I could crash prices like that before I go shopping...

Zer0head's picture

and the fiscal cliff will miraculously dissolve at the opportune moment  etc etc

Bay of Pigs's picture

Good ole KITCO and another chart malfunction. 

That site really sucks sometimes.

fonzannoon's picture

where is the flash crash?

fuu's picture

Data error? Shows up in silver as well.

TheCanadianAustrian's picture

Clearly a Marianas Trench pattern is forming in the technicals.

XitSam's picture

My Inverted Manta Ray pattern swamps your Marianas Trench pattern.

youngman's picture

Strange ..very strange....but they bounced right back up....must be some new Chinese servers getting warmed up...testing their potential..

spastic_colon's picture

yeah...gotta like how they always wait until all markets are closed so there are no distractions for the algos and insiders

FoeHammer's picture

I'll surely trade them less Federal Reserve Notes for the same oz of gold!

hedgeless_horseman's picture

 

 

Greece has to magically grow its GDP by EUR 50 billion from EUR 184 billion to EUR235 billion by 2020

Nothing magical about it.  Nominally, this is certainly possible, as Hyper Mario can just inflate the debt away with his Euro printing press.  EUR 50 billion may be the price of a gyros sandwich by then.

Of course, in real terms, it will never happen.

 

CrashisOptimistic's picture

Even nominal that's 4% per year, averaged.

The US can't even manage 2%.

hedgeless_horseman's picture

 

 

  • EURO ZONE MINISTERS, IMF, REACH DEAL TO STRIKE THE TERM 'GDP DEFLATOR' FROM ALL FUTURE PRESS RELEASES

 

Nominal GDP Growth vs. Real GDP Growth
 
GDP, or Gross Domestic Product is the value of all the goods and services produced in a country. The Nominal Gross Domestic Product measures the value of all the goods and services produced expressed in current prices. On the other hand, Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices of some base year. An example:
 
Suppose in the year 2000, the economy of a country produced $100 billion worth of goods and services based on year 2000 prices. Since we're using 2000 as a basis year, the nominal and real GDP are the same. In the year 2001, the economy produced $110B worth of goods and services based on year 2001 prices. Those same goods and services are instead valued at $105B if year 2000 prices are used.

Then:

Year 2000 Nominal GDP = $100B, Real GDP = $100B
Year 2001 Nominal GDP = $110B, Real GDP = $105B
Nominal GDP Growth Rate = 10%
Real GDP Growth Rate = 5%

Once again, if inflation is positive, then the Nominal GDP and Nominal GDP Growth Rate will be less than their nominal counterparts. The difference between Nominal GDP and Real GDP is used to measure inflation in a statistic called The GDP Deflator.
 

http://economics.about.com/cs/macrohelp/a/nominal_vs_real.htm

 

 

Bunga Bunga's picture

EURO ZONE MINISTERS, IMF, TO DECLARE MATHEMATICS INVALID

darteaus's picture

Yes, but the Greeks have many more government planners and chartists!

magpie's picture

Must...not...let...shorts...profit

Central Bankster's picture

In centrally planned economies, central bankers "short" you!

magpie's picture

At least there is no HFT intervention. And it can't be halted.

Its_the_economy_stupid's picture

juist sitting here cracking walnuts, drinking a beer and chuckling at your avatar

Quintus's picture

Gold crash? Eh? Where?

MsCreant's picture

Looks like it visited 1717 or so for a second then back up.

http://www.kitco.com/charts/livegold.html

Quintus's picture

Not seeing it anywhere else. Kitco on the fritz again maybe.

Zero Govt's picture

"..As Eurozone And IMF Reach Deal On Greek Debt/GDP of 124% By 2020."

...and pigs might fly by 2020 too.

Hell if we're going to live in LaLa Land let's go the whole hog

BraveSirRobin's picture

"...and pigs might fly by 2020 too."

Pigs already do fly. Have you flown recently?

BraveSirRobin's picture

Also, if the A380 is not a "pig," nothing is.

fonzannoon's picture

See how easy that was? They kicked that shit right to 2020. Next up, fiscal Cliff. The US will not be outdone. I say we kick that shit to 2030 at least.

FL_Conservative's picture

That's about when the spending reductions kick in.  Of course tax increases, well those will kick in next year.....of course.

BraveSirRobin's picture

Falling off the cliff will be painless. The Ben Bernank will cushion the fall with a nice big fluffy bed of fresh cash.

youngman's picture

I can hear the politicians now..." we have cut spending ten trilllion by 2060...."

Fidel Sarcastro's picture

EURO ZONE MINISTERS, IMF REACH DEAL TO CUT GREEK DEBT TO 124 PCT/GDP IN 2020 THROUGH PACKAGE OF EXTRA STEPS TOTALLING 20 PCT/GDP -OFFICIAL

...doesn't sound like anyone asked, umm, Greece(!) about this.  Will it go along or continue to ignore 70% of "planned" austerity?

Mr Fix You Up Good's picture

Live your myth ON Greece. Cant they add?

Dareconomics's picture

Greece will default, but this event will be based on politics, which are impossible to predict. How long can the north prop before there is voter backlash?

http://dareconomics.wordpress.com/2012/11/24/sustainable-greek-debt/

http://dareconomics.wordpress.com/2012/11/26/part-2-sustainable-greek-debt/

 

BraveSirRobin's picture

Come on! Do you ever fix your house just once? Of course not. It's a continuous program of maintenance. That's all that's going on here with Greece, the IMF and EU. Just maintenance. And perhaps a little ledgersheet renovation thrown in to boot. Nothing to worry about at all, really.

MsCreant's picture

You use fix as in repair. I think fix here is more like a drug addict. They are engaged in a continuous program of "fixing" their house alright.

BraveSirRobin's picture

I think the "fix" should really be used as in the "fix is in." And guess who's on the loser's side?

MsCreant's picture

And since you went there, really, they are in quite a fix, aren't they?