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Greece Is Saved, Again, As Eurozone And IMF Reach Deal On Greek Debt/GDP of 124% By 2020
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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Cui Bono ?
"Saved" with Debt/GDP of 124% by 2020 ?!?
Saved by being burried alive... Brilliant!
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
Novel thinking. Good show!
For how long can Wile E. Coyote hang over the canyon?
The wait is sickening.
I like how no one ever publicly mentions how embarrassing a 124% debt/gdp ratio even is. Is there no more shame?
Greece raped and sodomized again.
Wash, rinse, repeat.
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? ;-)
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.
OOOPS IN 2020 at -20
. Cui Bono?
Miso Soup! ;-)
Gold Flash crash? Holy crap!!
whoa, had to open a kitco tab to see - well worth it. Wish I could crash prices like that before I go shopping...
and the fiscal cliff will miraculously dissolve at the opportune moment etc etc
Good ole KITCO and another chart malfunction.
That site really sucks sometimes.
where is the flash crash?
Data error? Shows up in silver as well.
Clearly a Marianas Trench pattern is forming in the technicals.
My Inverted Manta Ray pattern swamps your Marianas Trench pattern.
Strange ..very strange....but they bounced right back up....must be some new Chinese servers getting warmed up...testing their potential..
yeah...gotta like how they always wait until all markets are closed so there are no distractions for the algos and insiders
I'll surely trade them less Federal Reserve Notes for the same oz of gold!
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.
Even nominal that's 4% per year, averaged.
The US can't even manage 2%.
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
EURO ZONE MINISTERS, IMF, TO DECLARE MATHEMATICS INVALID
Yes, but the Greeks have many more government planners and chartists!
Must...not...let...shorts...profit
In centrally planned economies, central bankers "short" you!
At least there is no HFT intervention. And it can't be halted.
Indeed.
juist sitting here cracking walnuts, drinking a beer and chuckling at your avatar
Gold crash? Eh? Where?
Looks like it visited 1717 or so for a second then back up.
http://www.kitco.com/charts/livegold.html
Not seeing it anywhere else. Kitco on the fritz again maybe.
bullish svxy
"..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
"...and pigs might fly by 2020 too."
Pigs already do fly. Have you flown recently?
Also, if the A380 is not a "pig," nothing is.
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.
That's about when the spending reductions kick in. Of course tax increases, well those will kick in next year.....of course.
Falling off the cliff will be painless. The Ben Bernank will cushion the fall with a nice big fluffy bed of fresh cash.
I can hear the politicians now..." we have cut spending ten trilllion by 2060...."
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?
Live your myth ON Greece. Cant they add?
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/
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.
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.
I think the "fix" should really be used as in the "fix is in." And guess who's on the loser's side?
And since you went there, really, they are in quite a fix, aren't they?
124%? Damn. I think the highest the US was 130%, and that was during WWII.
Tyler, do I need your permission to use that second graph as a wallpaper on my laptop?
Are you really going to replace the President Obama's Giant Stimulus Package projected unemployment rate graph?
What is the Troika gonna do, force everyone to eat yogurt?
Greece is dead, long live Greece.
I'd replace Ooops with %$#@&! but I'm not a chartist...
Euro ramping on this charade
It ramped 30 pips alone this morning, so it's still nothing. Seems there is nobody to sell to.
Just in case no one has noticed, this upcoming 40 billion Euro tranche is not going to cover these losses to 2020. There will have to be more.
Sssst, be quiet.
You are waking up the European taxpayers.
S&P 1450 bitches
Another last minute Greek bailout non-event. Color me shocked.
If it's possible for me to to be more jaded about this I can't imagine how.
Few months back somebody posted something along the lines of "Guys, they control the currency and can manipulate and change anything. They can keep this shit going for years." Whoever that was was absolutely right.
The gift that keeps on giving. Like Herpes. See you again in 6 months, Greece.
Get ready for the futures ES fullretard explode o rama.
Fucking out of control.
A market rally tomorrow as EUR/USD rallies to above 1.30.
All is well with world now. All things are possible with self-deception.
As of 5 mins ago, up 7 pips. Not earth shattering.
An as the munchkins celebrated the death of the wicked witch of the West, the wicked witch of the East appeared to end whatever optimism they had gained. Or in this case, the witch never really dies but slides under the house and returns in a different form.
WOW - that was a close one this time!
What the hell just happened to gold?
Nothing.
Jon Nadler is having a laugh
Just keep sending more EU currency, I'm sure it will work one day!
"grow its GDP by EUR 50 billion from EUR 184 billion to EUR235 billion by 2020" - can I have what they are smoking, it's extremely strong stuff ?
50 billion over 7 yrs out of 235B is about 4%/yr, real.
The US can't even manage 2%.
Were these forecasters working for Romney too?
The squeezing of the lemons, in this case the Greek people, has just begun.
I replaced "Greek GDP" by " Facebook revenue" in the charts.
Well if Greece can do it why not Facebook ?
Where did that flash crash go? Damnit.
These aren't the charts you're looking for.
Move along.
Oh, my god, a sustainable solution was found, based on hope, more hope and even wishful thinking. I think the estimates are far too conservative, I bet annual GDP growth will be around 50 percent
I can't wait to see Pisani's reaction tommorrow.... and only see, I have to turn off the sound as soon as he utters his hourly "look, the bottom line is.... I am a totally biased permabull CNBC cheerleader.
What a relief, for a second I feared that we would have breached the symbolic but critical 125.1% of debt to GDP by April 1st 2020. 124% sounds like a much better number to forecast in 8 years from now, it is an elegant number, it follows the nice
2^n with n an integer from 0 to infinity. It is easy to remember elegant, it is just perfect. If it does not work, we can kick the can to 2030 following the same formula at 1248%.
The best i can say is that if we bailout Greece we are not stuck with all those Spiderman towels.
Wait until we have to bailout Spain, we will be up to our ears in those.
20B is a lot of prostitution.
Ring the bell agiain. Greece is saved!!!!
Greeks go out and spend like drunken sailors again. The Troika has your back.
LOL, they will never let you fail Greece. Just blow their money and you will get more, Comical.
Your ECB sugar daddy is a fool. Take him to the cleaners.
Bankers are truly artists. FInancial wizardry is an artform. Here we have a 7year projection which as time drags on will be claimed to be a hockey stick save, not as gradual slope of increasing GDP. Meanwhile the faith will be kept. Thepoliticians will have some where to hide as they shovel increasing fiat in the gaping maws of cash burn and destruction. Not until year six when the graph must go vertical for Greece's GDP to meet projections will the fraud be made clear, but by then, the current group of pols/bankers will on to their next meal, the taxpayers of the member states of the EU will be saddled w ever-more debt, and Greece will be a giant slum/welfare state with anything of value long since ransacked.
Oh, and did I mention the banks have long since pawned their worthless Greek paper onto the ECB at face-value.
You gotta love a masterpiece.
This is clerarly an "Oh, thank God" moment.
Well, I think the Oops projection is Graph of the Year.
For this year and next.
Guess they think we're dumb.
The beauty of nominal GDP and hyperinflation. The German people have been conned once again by the elite Europeans.
Greece in a Troika induced coma status.
The upcoming Europe's status?
Farcical to predict a growth rate for Greece of 5% or more when all western countries are struggling to get 2% and many less. With the Troika / IMF projections I look forward to a future headline the politicians have promised and goes something like this ...
"In the global economy we have a new shining spark on how to run a economy with 5% growth".
Now I am off to buy a mickey mouse comic to search for this headline.
What is the projected future debt with 2% growth and I am being very optimistic. THAT IS THE REALITY.