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Spain Plunders 90% Of Social Security Fund To Buy Its Own Debt

Tyler Durden's picture


With Spanish 10Y yields hovering at a 'relatively' healthy 5%, having been driven inexorably lower on the promise of ECB assistance at some time in the future, the market has become increasingly unsure of just who it is that keeps bidding for this stuff. Well, wonder no longer. As the WSJ notes, Spain has been quietly tapping the country's richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds - with at least 90% of the €65 billion ($85.7 billion) fund has been invested in increasingly risky Spanish debt. Of course, this is nothing new, the US (and the Irish) have been using quasi-government entities to fund themselves in a mutually-destructive circle-jerk for years - the only difference being there are other buyers in the Treasury market, whereas in Spain the marginal buyer is critical to support the sinking ship. The Spanish defend the use of pension funds to buy bonds as sustainable as long as it can issue bonds - and yet the only way it can actually get the bonds off in the public markets is through using the pension fund assets. The pensioners sum it up perfectly "We are very worried about this, we just don't know who's going to pay for the pensions of those who are younger now," or those who are older we would add.

Via Wall Street Journal: Spain Drains Pension Fund In Borrowing Spree

Spain has been quietly tapping the country's richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds, raising questions about the fund's role as guarantor of future pension payouts.


Now the scarcely noticed borrowing spree, carried out amid a prolonged economic crisis, is about to end, because there is little left to take. At least 90% of the €65 billion ($85.7 billion) fund has been invested in increasingly risky Spanish debt, according to official figures, and the government has begun withdrawing cash for emergency payments.


Although the trend has drawn little public attention or controversy, it has become a matter of concern for the relatively few independent financial analysts who study the fund, which is used to guarantee future payments of pensions.




In addition, there are worries that Social Security reserves for paying future pensioners are running out much quicker than expected.


In November, the government withdrew €4 billion from the reserve fund to pay pensions, the second time in history it had withdrawn cash. The first time was in September, when it took €3 billion to cover unspecified treasury needs.


Together, the emergency withdrawals surpassed the legal annual limit, so the government temporarily raised the cap.


"We are very worried about this," says Dolores San Martín, president of the largest association of pensioners in Asturias, a small region that has one of the highest percentages of retirees in Spain. "We just don't know who's going to pay for the pensions of those who are younger now."




After the crisis began, some of those countries began using the pension reserves for other contingencies, such covering a drop in foreign demand for their government bonds. Since the collapse of Ireland's property boom, for example, most of its pension fund has been used to buy shares of nationalized banks and real estate for which no foreign buyers could be found.


"Most of the [Spanish] fund is an accounting trick," said Javier Díaz-Giménez, an economics professor in Spain's IESE business school. "The government is lending money to another branch of government."


Spanish officials defend the heavy investment of the Social Security Reserve Fund in their government's high-risk bonds. They say the practice is sustainable as long as Spain can continue borrowing in financial markets, and they predict the economy will start to recover late in 2013, easing the debt crisis.




"With foreign investors staying away from the Spanish debt market, you're going to need all the support you can get from domestic players," said Rubén Segura-Cayuela, an economist with Bank of America-Merrill Lynch.




Spain's commercial banks already have increased their Spanish government-bond portfolio by a factor of six since the start of the crisis in 2008, and now own one-third of government bonds in circulation.


The percentage of Spanish government debt held by the Social Security Reserve Fund stood at 55% in 2008, according to official figures; by the end of 2011 it had risen to 90%. Analysts say the percentage has continued to rise, even as international agencies have lowered Spain's credit ratings.


Spain's continued use of those reserves to buy its own bonds appears to violate a rule set by government decree that mandates their investment only in securities "of high credit quality and a significant degree of liquidity."




But with unemployment now above 25% of the workforce and fewer wage earners paying in, the Social Security System is about €3 billion in deficit, according to government estimates.

And in other news, and completing the picture, if not the circle jerk, is news from Libremercado that according to the Spanish Confederantion of Employer Organizations, some 60% of the Spanish companies are now losing money. Via Google translate:

The President of the Spanish Confederation of Employer Organizations (CEOE) has estimated that "60 percent of the companies are in losses. Thing is that entrepreneurs are more thoughtful and went outside."


Joan Rosell responds well after being asked if he receives "Spanish citizens too negative" in an interview with the newspaper La Razon, who heads a special titled "2013, the recovery begins," and says that "social unrest is evident and business world is no exception. "


The president of the CEOE has considered that the private sector "has already made ??all the restructuring that had to do and the decline in employment in the private sector has virtually stopped. now is the restructuring of the public sector."


After defining the first year of Mariano Rajoy in government as a year of shock, Rosell has considered that the Spanish economy remains "superfluous fat by many sides.'s Central government, regional and local. Avoid duplication. We are a country hiperregulado ".

It is not exactly clear why google translate had a problem with that last word...


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Thu, 01/03/2013 - 21:15 | 3120712 HurricaneSeason
HurricaneSeason's picture

Yes, that's why "deficits don't matter" Chris Christie thinks they do, but what the hell does he know? We haven't even paid off World War II yet. All those good jobs back then supplying the war machine were free. The beauty of it is, we borrow at least $1300 billion a year and only pay $300 billion in interest. Try that at Bank of America. The government should have to pay 39% tax on their $1 trillion profit there and hire and accounting firm to look for loopholes.

Thu, 01/03/2013 - 20:30 | 3120559 Seasmoke
Seasmoke's picture

how do you say LOCK BOX in Spanish ???......or massage my stomach ??

Thu, 01/03/2013 - 21:42 | 3120779 Chupacabra-322
Chupacabra-322's picture

Lock box = Caja Fuerte

Massage my stomach = Masaje de estomago

Thu, 01/03/2013 - 20:32 | 3120562 FiatFapper
FiatFapper's picture

That's a big wrap-around; worry when they start paying septuagenarians with BitCoins...

Thu, 01/03/2013 - 20:32 | 3120565 Jam Akin
Jam Akin's picture

Coming VERY soon to a theatre near you.  

Thu, 01/03/2013 - 21:05 | 3120686 centerline
centerline's picture

I thikn that when it goes down, it goes down all at once.  There might be some tremors here and there.  But no test of the waters.  401k's probably get grabbed first...  fucking the private sector is pretty much a given anyhow.  The end game is all public sector pensions getting wiped out in a massive default along with SS and everything else.

Thu, 01/03/2013 - 21:21 | 3120733 HurricaneSeason
HurricaneSeason's picture

The banks make the big decisions, not the president or congress. They don't want it to blow up and default. They beg China to double their currency value overnight and halve ours. The republicans, democrats and feral reserve all agree on that. It will bring factory jobs back, supposedly. It might help Boeing and Lockheed, that's about it. It'll cut their promises in half overnight. The Chinese will be more than happy to do it at some point, they're trying to add 25 million jobs a year.

Thu, 01/03/2013 - 20:37 | 3120573 Jack Burton
Jack Burton's picture

Is this not just what America has done since the Vietnam war era.

Thu, 01/03/2013 - 21:11 | 3120621 nmewn
nmewn's picture


They're just as safe as them being shoved into a filing cabinet somewhere in West Virginia.


Fri, 01/04/2013 - 03:05 | 3121270 John_Coltrane
John_Coltrane's picture

Yes, LBJ started it all financing the "great society" and vietnam war on a credit card with the huge deficit concealed by borrowing from SS.  Thus, LBJ is my candidate for the worst post war president actually born in America and thus eligible to be president (so Fabian Socialist Kenyans with counterfeit SS numbers don't count).  And for all those with very short historical memories who like to blame Bush remember, there would be no deficit without the great society programs of medicare and medicaid.  And LBJ also started food stamps.  Carter gets credit for starting the worthless Dept of Education and Energy.  Eliminate those along with TSA (Bush's baby) and you completely eliminate the deficit and would actually have cash funds to retire rather than roll over maturing bonds, thus eventually allowing a transition to a gold, not debt backed, currency.

As Reagan once said, "the ten scariest words in the English language are: I'm from the government and I'm here to help you"

And as Thatcher pointed out,  "the problem with socialism is pretty soon you run out of other people's money" 

Well we've just about run out of OPM and the Spanish did a long time ago.

Thu, 01/03/2013 - 20:38 | 3120578 KingTut
KingTut's picture

Heck, we did this 30 years ago, what's the big deal?

The so-called  $4.5T SS "trust fund" comprosied mostly of the surplus from boomer paychecks is long gone.  The government now "owes" SS that surplus.  But the government has no money (that's why they borrow over $1T per year), so our SS benefits will have to come out of new tax revenues.  But since we're $1T short already, they are just going to borrow that too.  Except that nobody will loan us the money, so we'll just print it. Nice.

Thu, 01/03/2013 - 20:40 | 3120587 IridiumRebel
IridiumRebel's picture


Thu, 01/03/2013 - 20:44 | 3120602 Overfed
Overfed's picture

This should end well.

Thu, 01/03/2013 - 20:46 | 3120615 Silver Garbage Man
Silver Garbage Man's picture

Anybody out there that follows Zerohedge, SGT Report, Infowars ,Drudge Report, Max Keizer, Brother John,The Doc, Gerald Celente, Ranting Andy, King World News among many other very good websites Knows what is going on and you better be ready. GOLD AND SILVER. It has been ready to blow now for several years.If you get caught in this paper game IT IS YOUR FAULT.

Thu, 01/03/2013 - 23:15 | 3121018 Silver Garbage Man
Silver Garbage Man's picture

Jim Willie as well. My apologies.

Thu, 01/03/2013 - 23:36 | 3121053 DoChenRollingBearing
DoChenRollingBearing's picture


Everyone should have gotten started years ago.

Thu, 01/03/2013 - 20:52 | 3120630 stormsailor
stormsailor's picture

made me sick today, had to send off my 941 and everybody's check was less.  


you work?  well bend over we need your pennies or we will go broke.  section 8 housing recipients need new mercedes, and tbtf need more liquidity. 



Thu, 01/03/2013 - 21:43 | 3120783 XitSam
XitSam's picture

Obama needs a new vacation. Oops, he's still on the previous one.

Thu, 01/03/2013 - 21:02 | 3120647 knowless
knowless's picture


i dont see any 30% on that list.

"in the former industrial city of chicago"

just guessing the news outside of america doesn't paint as pretty a picture of our fine country. you all know there is blatant censorship in place already right?

Thu, 01/03/2013 - 20:54 | 3120653 Cabreado
Cabreado's picture

"Spain Plunders 90% Of Social Security Fund To Buy Its Own Debt"

No, not "Spain" exactly.

A relative handful who are Spaniards much later than they are de facto criminals -- once in control, now in self-preservation.

Let's not implicate the country and its citizens -- let's take advantage of every opportunity to tell the truth, and implicate false leadership.

Practice up...


Thu, 01/03/2013 - 21:11 | 3120700 Stuntgirl
Stuntgirl's picture

I know, I get frustrated at the misinterpretation of a lot that is going on in Europe.

It still needs constant clarification that the Greek bailout money goes straight to foreign banks and funds, likewise in Spain. Spanish and greek people are not spending it.

That our entitled, subsidized classes are our political classes, and we don't have the samewealth redistribution problems the US has.

PIIGS media has been and still is MUCH more manipulated than in the US,if you can imagine that, and the people are making terrible decisions because of this.

Also noteworthy for those who don't understand why spaniards and possibly greeks don't react as abruptly as americans might in similar circumstances, is that our civil war baggages are very heavy and very recent. Noone I know is without direct relatives who were tortured, killed, raped, etc, and that will really make a people force themselves back from violence as much as they can.


Fri, 01/04/2013 - 00:02 | 3121089 Notarocketscientist
Notarocketscientist's picture

A more accurate headline:




Anyone want to bet that Spanish govt officials' pension funds are not touched?

Fri, 01/04/2013 - 05:42 | 3121369 Stuntgirl
Stuntgirl's picture

Of course nobody touches govt. official's stuff.

Interestingly, In Spain, a Govt official will receive a salary from the party, a salary from the state for hatever post he's occupying, and if he/she decides to change post, will receive an INDEMNITY (for voluntary firing themselves) almost equal to their salary. This indemnity is higher than the average spanish salary.

These officials accumulate 4 or 5 government salaries while not even properly tending to one of their "jobs".

A citizens' law proposal to cut these accumulations got repealed LAST WEEK.

I also commend you on your use of "french and german BANKS", because there is a lot of anti-german feeling brewing up, and hey, guess what, the german people have nothing to do with it, they're getting shafted as well.


Thu, 01/03/2013 - 20:55 | 3120655 yogibear
yogibear's picture

Can you say revolution?

Plundering it's Social Security to pay off IMF banksters. Go long gasoline, rags, bottles, fuel oil and fertilizer!

Time to hang some people from all the trees responsible.


Thu, 01/03/2013 - 21:06 | 3120687 knowless
knowless's picture



"And, while Turzhanskiy has the freedom to associate with whom he wishes and enjoys the freedom of expression, Peifer said his client was willing to agree to have no contact with any anarchist groups as a condition of his release. "


terms of bail issued includes limitations on political affiliations.

Thu, 01/03/2013 - 21:46 | 3120792 XitSam
XitSam's picture

The trees are not responsible! Time to hang all the people responsible from the trees.  :)

Thu, 01/03/2013 - 22:08 | 3120841 Salon
Salon's picture

Make this go viral. Encourage ur friends to pass it on

Here are your orders, patriot.

The plan

Thu, 01/03/2013 - 21:00 | 3120667 rjs
rjs's picture

US Plunders 100% Of Social Security Fund To Buy Its Own Debt

Thu, 01/03/2013 - 21:19 | 3120728 AndrewJackson
AndrewJackson's picture

+ 4.5 trillion!!! Our economy is such a ponzi scheme, it is just one big sad joke. To bad average joe does not have the ability to understand the whole process of enslavement they are being put through.

Thu, 01/03/2013 - 21:01 | 3120671 Insideher Trading
Insideher Trading's picture

Spain in broke?

what the fuhhh???

When the FUCK did that happen?

Thu, 01/03/2013 - 21:28 | 3120754 HurricaneSeason
HurricaneSeason's picture

They're not broke, they're overextended. Leveraged, so to speak.

Thu, 01/03/2013 - 22:55 | 3120971 inevitablecollapse
inevitablecollapse's picture

i got over-extended once and couldn't walk straight for a week...hopefully they're back in shorter order 

Thu, 01/03/2013 - 23:01 | 3120984 samsara
samsara's picture

They can't be broke,  Germany still has checks in their check book.

Thu, 01/03/2013 - 21:06 | 3120688 BuckShotJones
BuckShotJones's picture

ZH had the story on Greek Public Pension Plan being forced by law ( quietly)  to purchase bad Greek debt.  We also know our 401k,IRA and the remaining private pensions are under plans for a similar bulk purchase of US Treasuries on a ongoing basis.

California, the nation's real " Emergency Broadcast System", had CalPers do a similar large "investment" with California debt..but don't worry...

"If this had been an actual emergency, the Attention Signal you just heard would have been followed by official information, news or instructions.

"This concludes this Emergency Broadcast System Test."

Thu, 01/03/2013 - 21:07 | 3120691 vincent
vincent's picture

Been trying to convince my mother that her SS check is safe here in the USA...except for the inflation issue, which will eventually rob her of any real purchasing power.

As much as I hate it, lying to her is best. Her mind will be gone before it happens, I hope.

We're all on our own. No news for youse folks. Peace

Thu, 01/03/2013 - 21:09 | 3120695 max bucket
max bucket's picture

So the same people that got them into the mess are getting them out of it

Someone donate a compass and a packet of beef jerky quick

Thu, 01/03/2013 - 21:10 | 3120698 q99x2
q99x2's picture

Spain Plunders 90% Of Social Security Fund To Buy Its Own Debt

Thems fighten words there. Someone steals mine or my parents Social Security money and going to hunt them down.

Thu, 01/03/2013 - 22:04 | 3120833 Salon
Salon's picture

Read to the middle at least to find the grand strategy and plan.

Lots of people will be out a huntin'

Thu, 01/03/2013 - 23:32 | 3121048 hawk nation
hawk nation's picture

thanks for the article

Fri, 01/04/2013 - 08:34 | 3121480 Disenchanted
Disenchanted's picture

q99x2 said:


Thems fighten words there. Someone steals mine or my parents Social Security money and going to hunt them down.


Sorry, but legally it's not yours nor theirs. That was decided in 1960 by SCOTUS.

Flemming v. Nestor


But guess what, legally you must continue to pay your FICA taxes from your income.

Sweet, eh?

Thu, 01/03/2013 - 21:16 | 3120717 AndrewJackson
AndrewJackson's picture

Don't you love the slight of hand with these people.

Thu, 01/03/2013 - 21:19 | 3120729 Atomizer
Atomizer's picture

Lockbox Bitchez.. Another 500 million dollar dream in selling a deteriorating business model under inadequate government math formulations.


Classic Infomercials

Thu, 01/03/2013 - 21:34 | 3120766 OldPhart
OldPhart's picture

Spaniards are pikers at raiding social security -- our 'Murican government has embezzled over 1,000% of the social security funds.

Thu, 01/03/2013 - 21:37 | 3120774 Blankenstein
Blankenstein's picture


Thu, 01/03/2013 - 21:43 | 3120782 bugs_
bugs_'s picture

me hedgies if there be one thing the Spanish know about it be PLUNDER!!! arrrrrrrrr

Thu, 01/03/2013 - 21:47 | 3120793 FubarNation
FubarNation's picture

They shoud have had a lock box.

Thu, 01/03/2013 - 21:47 | 3120794 FubarNation
FubarNation's picture

Courtesty of Al "Humpy' Gore that is.

Thu, 01/03/2013 - 21:54 | 3120810 GMadScientist
GMadScientist's picture

No, it's all's "intragovernmental"... :)

Thu, 01/03/2013 - 22:00 | 3120826 Salon
Salon's picture

They owe it to themselves.


Thu, 01/03/2013 - 21:57 | 3120817 Bunga Bunga
Bunga Bunga's picture

Get over it, a government can't go bankrupt, but their people can. Why should a government give up before they looted their last resort.... was never different in history. 

Thu, 01/03/2013 - 22:19 | 3120865 Atomizer
Atomizer's picture

Based on history, Governments go bankrupt and the serfs rebuild. Top corrupt government officials either die while on the run or get brutally assassinated in public display.

Check history, nothing changes except the controlling interests telling themselves, “it won’t happen to us”.

Thu, 01/03/2013 - 23:15 | 3121017 hawk nation
hawk nation's picture

Washington politicians be afraid be very afraid

This is where america is going with 401k's confiscation and any other retirement fund they can steal

I hope they first take over all the endowment funds of the universities

Thu, 01/03/2013 - 23:18 | 3121023 Bunga Bunga
Bunga Bunga's picture

Did anywhere government ever vanish? It's still there, only people in power are replaced.

Thu, 01/03/2013 - 22:28 | 3120897 ShrNfr
ShrNfr's picture

Pues, hiperregulando is usually hyphenated as hiper-regulando. The following is the definition of hiper

hiper hypermarket


(fantástico) mega (muy_familiar); wicked (muy_familiar)

wicked has leaked out of English into Spanish. Fantastic, mega (slang), wicked (slang)

hiper-regulando is thus simply wickedly regulated in the slang meaning of wicked, alternatively hyper-regulated as one might expect.

Thu, 01/03/2013 - 22:50 | 3120958 americanspirit
americanspirit's picture

So few of the comments on this thread actually deal with the incredible subject matter. This is the stuff of armed revolution. The Spanish people must rise up and hang every one of these bastards from lamp posts - the ones they don't set on fire. There is  no turning back - this must happen. Who do these assholes think they are?

Then there's America. We just roll over, eat another cheeto, watch the TV, and snooze. Nothing happening here. Fuck us some more - we're so brain-dead we don't even feel it.

Thu, 01/03/2013 - 23:02 | 3120992 Almost Solvent
Almost Solvent's picture

Big Pharma has us brain-dead for sure.

Fri, 01/04/2013 - 00:46 | 3121148 willwork4food
willwork4food's picture

Whatever. The bastards want to pull shit like nationalizing our 401Ks and I promised my wife I won't be sending Wells Fargo their mortgage check. Mulitiply me by thousands of others and the banks have a real problem.

Fri, 01/04/2013 - 02:02 | 3121218 Terminus C
Terminus C's picture

If you are 'sending them a check (sic)' that means your money is already in the bank... which means they'll just automatically withdraw the money.  Multiply you by thousands and they'll just Corzine the fuck out of all of you.


Fri, 01/04/2013 - 02:33 | 3121248 dark pools of soros
dark pools of soros's picture

god's work

Fri, 01/04/2013 - 06:09 | 3121377 IrritableBowels
IrritableBowels's picture

That's the spirit!

Thu, 01/03/2013 - 22:51 | 3120959 Notarocketscientist
Notarocketscientist's picture

A more accurate headline:




Anyone want to bet that Spanish govt officials' pension funds are not touched?

Thu, 01/03/2013 - 23:23 | 3121035 exartizo
exartizo's picture

In a Nutshell:

Spain is using their citizens future entitlements and assets to fund profligate government spending.

So What.

The U.S. has been doing that for years.

Spain is late to the game.

Move along. Nothing to see here.

Thu, 01/03/2013 - 23:37 | 3121057 ebworthen
ebworthen's picture

Riots, war, collapse.

All thanks to the bankers.

I really can't wait for the mobs to hang the SOB's.

Fri, 01/04/2013 - 00:50 | 3121152 willwork4food
willwork4food's picture

Not just the bankers, but the lawmakers that made it possible for the bankers to do their deeds....and I'm with ya, and I'l be carrying the rope and findin' a tree.

I get first dibs.

Fri, 01/04/2013 - 02:37 | 3121251 dark pools of soros
dark pools of soros's picture

they live far away from the unwashed...  you may get their peons but the nests are out of reach


remember it is never about being rich.. that is static.  it is about creating wealth and these are the people that know how to control people to get them to control others to set up this debt money sham again ever after the great reset

they prey on human vices.. greed, vanity, etc to get everything for promises and threats


Thu, 01/03/2013 - 23:43 | 3121065 cosmyccowboy
cosmyccowboy's picture
no big deal our government has been raiding SS since the 70's and are now robbing the federal pesions!!!
Fri, 01/04/2013 - 00:03 | 3121090 michiganmaven
michiganmaven's picture

Does any of this even matter anymore? The whole system is fake but if the entire system is fake then doesnt that make it real? The government can control what it wants by regulations, taxes, or force.... hence why I do NOT want gun laws enhanced... last thing in my opinion keeping us really free... besides not like criminals buy guns legally anyways.

Fri, 01/04/2013 - 00:06 | 3121095 Mr. Hudson
Mr. Hudson's picture

How does owning a gun stop the military from arresting you and taking your property?


Fri, 01/04/2013 - 00:28 | 3121117 dwdollar
dwdollar's picture

If a large group of people carrying guns is so obsolete then why does the US government still have infantrymen?

Fri, 01/04/2013 - 00:31 | 3121133 Mr. Hudson
Mr. Hudson's picture

The military is organized. Individual Americans are not. Unless Americans are unified and organized they will be slaughtered.

Fri, 01/04/2013 - 00:40 | 3121142 dwdollar
dwdollar's picture

I doubt any civil war in America will be organized. Not at first anyway.

Fri, 01/04/2013 - 00:59 | 3121163 willwork4food
willwork4food's picture

You are right, just like the American Revolution wasn't organized, but the British military pissed off enough innocent people that it became a necessity.

Who are you Mr. Hudson? You trying to scare us?

Fri, 01/04/2013 - 01:49 | 3121210 IridiumRebel
IridiumRebel's picture erosion and not clash.

Sat, 01/05/2013 - 16:05 | 3125554 MeelionDollerBogus
MeelionDollerBogus's picture

a) because soldiers get chicken-shit about having half their men come back dead entering every single home with anyone at any time shooting back from blind spots

b) because it's worse when you're invading your own country

Military is a BLUNT tool. It's easy as fuck to FLATTEN an area. That also kind of ruins the PURPOSE of taking the land. If they want food, house, gold, silver, whatever's inside, they have to not destroy it all to pieces with heavy armory shelling. Right? Right.

That's why in Iraq soldiers keep going DOOR TO DOOR not demolishing everything. They want to recover what they can of the country to be a new colony to Uncle Sam.

Owning is not enough, of course, you must be sure how to maintain & shoot with enough accuracy under stress. Keep practicing.

Best advice, actually, is don't live in the USA anymore. It's time to run or overthrow, is how it looks from all the news coming across the border.

Fri, 01/04/2013 - 00:04 | 3121093 Mr. Hudson
Mr. Hudson's picture

Bankers read these comments and giggle. They should be shuddering.

Fri, 01/04/2013 - 00:55 | 3121159 willwork4food
willwork4food's picture

Congress have been reading these comments and are shuddering. Why do you think they purchased 1.6 Billion rounds?


Fri, 01/04/2013 - 05:41 | 3121368 Zwelgje
Zwelgje's picture

I am glad you feel good about yourself.


Fri, 01/04/2013 - 00:35 | 3121139 Powder
Powder's picture

I have to quote Dilbert's pointy-haired boss by exclaiming, "GAH! DUH!"

Fri, 01/04/2013 - 00:44 | 3121147 Herkimer Jerkimer
Herkimer Jerkimer's picture



How do we know the US isn't doing this?




Fri, 01/04/2013 - 00:54 | 3121157 CheapBastard
CheapBastard's picture

"I'll gladly pay you back Thursday, for 90% of your pension today."


"I promise."

Fri, 01/04/2013 - 01:58 | 3121216 Lord Of Finance
Lord Of Finance's picture

Ha ha!!!! I forgot about that cartoon!


You just settled it 'Cheap Bastard'. What we have here is global 'Wimpy economics.'

Fri, 01/04/2013 - 01:23 | 3121181 jonjon831983
jonjon831983's picture

"That's as good as money sir! Those are IOUs! Go ahead and add it up! Every cents' accounted for!"


Fri, 01/04/2013 - 02:44 | 3121257 Lord Of Finance
Lord Of Finance's picture

These policy makers are dumb. The human population is even dumber.

          It's a 'dumb and dumber' economic policy in a truly mad, mad world

Fri, 01/04/2013 - 01:26 | 3121187 TheObsoleteMan
TheObsoleteMan's picture

The poster attached to this story shows two men rolling up their sleeves, and then mentions a "circle jerk". No, more in tune with the situation {and the picture}, should be a mention of "fisted". Because that is exactly what pensioners are going to get from their trusted gubmint, fisted right up the, well, you know.

Fri, 01/04/2013 - 01:53 | 3121215 Lord Of Finance
Lord Of Finance's picture

"Spain. Who in the world taught you to do this stuff."


"It was you Uncle Sam! I learned it by watching you!"

Sat, 01/05/2013 - 16:00 | 3125545 MeelionDollerBogus
MeelionDollerBogus's picture


"These are your bonds"

"These are your bonds on heroin"

"Any questions?"

coffee SAFELY on the side table not yet in mouth... that was a close one

Fri, 01/04/2013 - 02:52 | 3121267 blindman
blindman's picture

does anyone know what the core problem is?
if you do you may have one last chance to
escape hell on earth by organising and, not
writing to but, showing up at the door of your
representative in government and educating that
person on what the core problem is and demanding
they do their job and correct the
error in their thinking and operation immediately
as "our" survival depends on a functioning system.
that would be the way to resolve the problem
before it is too late.
we live within a system and it exists to promote
survival. some may argue with that but it is
the way cultures throughout history have sustained
themselves , survived. the current system was
conceived to replace slavery and the cheep labor
it provided. it was conceived by the super rich to
make them super richer. it is a usurious ponzi scheme
cloaked in tortured probabilities and extractions.
it is not a money system anymore. repudiate the debts
i say, jubilee, before adherence to the fraud makes
us all good , law abiding, quiet and obedient,
and that to the bobble heads on the reading cue
cards, skinny and starving dead people.
it is either that or continue to let the imbeciles and
thieves rule by looting and fraud until the starvation
and homelessness destroy everything. the time has come
to use what you know concerning the core problem and
teach it to the levers of power as they have assumed
the position by virtue of their charismatic, popular
and gregarious nature. imho.
something to think about? you enjoy free speech not
because any government grants the privilege but
because it is your duty and right to speak the truth
you know to the unknowing, distracted and fatally
confused among us; to those who claim to represent
you in a legal way. if you fail to do it you are cheating
and will be punished by the gods of free speech and they
will haunt you with fears of experimenting with verbs,
the most colorful class of your vocabulary. you will
become stunted in body and mind and no one wants that
except the sick bankers.
good luck, i know you can do it and we are all counting
on you. and thank you

Fri, 01/04/2013 - 03:24 | 3121280 blindman
blindman's picture

what is all this about buying what is already your own?
if it is their debt why don't they just feed it
and groom it? if they don't like it they can then drown it
in the well. who would ever buy their own debt?
it is just a ridiculous nonsensical play of words.
goldman sacks must have invented the term, or george
orwell? that is the problem with the plural nouns ,
they quickly become unexamined gibberish, like in europe
re nations and the fed and the states.

Fri, 01/04/2013 - 06:48 | 3121381 Element
Element's picture



Spot on ... but I have a feeling other 'bond', ... er, ... 'holders', are going to require something ... more ... um, ... tangible ... in the form of a 'different' ... er, ... fiat next time ...

Whole thing is a bit odd really.

But what has even greater mystique is the 'selling' of ship loads of 'energy' to 'China', to get 'paid' for it in 'Chinese' digits. Or else we give them our digits, so they can 'pay us back' with our own digits! Which we like, and which are subtly different from other digits. the point of this escapes me for the moment but apparently if the digits build up too much this then causes all sorts of imaginary chaos to occur. And this leaves a 'market economy' somewhat demoralized, or strangely rather crippled, as now they find they can't, or rather, don't get up at 5AM every morning, to do battle with each other to swap more digits. So I'm not too sure what that's about exactly. But perhaps a smaller number of persons should get up even earlier and do battle for much longer? And as it turns out this is in fact the general consensus practice for how to deal with recalcitrant digits. But alas, the results are a bit of a mixed-bag. Also note, that at such times it's been observed that verbs tend to under-perform with inverse proportionality to the recalcitrance of digits. Which is a curious relationship, and may be an important pointer to what's really going on.


Fri, 01/04/2013 - 09:19 | 3121548 blindman
blindman's picture

the dance of the recalcitrant digits
and verbs ! sounds like an epic in the
making, a psychological thriller of treadmills
and fast automobiles marketed on information
highways so clogged up that the drivers have
to exit their vehicles and crawl on the
pavement in search of water . 2013 is going to
be a very odd year, that is my forecast.

Fri, 01/04/2013 - 04:02 | 3121312 Manipuflation
Manipuflation's picture

Just a piss pounding of the PM's so far on the overnight.  Quite a combined effort I should say.  No sale here.

Fri, 01/04/2013 - 04:50 | 3121336 cxp
cxp's picture

Capital3x says we are headed for a mid month fall in risk markets

Fri, 01/04/2013 - 05:13 | 3121348 lemarche
lemarche's picture

hiperregulado=hyperregulated. probably because does not exist as a single word in the dictionnary

Fri, 01/04/2013 - 05:15 | 3121350 lemarche
lemarche's picture

Aint that sweet? you buy your own debt at high yields, knowing that you have the power to ask for a rescue that will smash rates on that debt and that you will make a killing on that prop trade???

SURPRISED they did not buy MORE YET !

Fri, 01/04/2013 - 05:23 | 3121359 rivoniaboy
rivoniaboy's picture

We are so screwed!

Fri, 01/04/2013 - 06:08 | 3121370 Aurora Ex Machina
Aurora Ex Machina's picture

"We just don't know who's going to pay for the pensions of those who are younger now."

Yes, well, that's kind of the deal: the entire point of a "legacy" is handing down something worth running / owning. Societies fall into this. Thanks.

And I'm mostly looking at Corporations for this responsibility; yes, you, Walmart with your State funded job creation and so on.

"60 percent of the companies are in losses. Thing is that entrepreneurs are more thoughtful and went outside."

Well, that's your Oates moment right there.


Anyone else feel that it's time for a nice cup of tea and a mature discussion of this entire "work" model? Public Sector was stuffed to the gills to provide high % employment (and we can all see the problems inherent with >50% of your workforce being paid by the other 50%), and SMEs got shafted to entice the large Corporations, while places such as Saud destroy their own interior fabric by shoving the SWF profits into stability. 21st Century; why are we working on the 19th / early 20th C production / work models? They're clearly not working anymore.

Time for the new Marx / Keynes / Hayek / Mises; old models no longer apply, part of the trouble is being stuck in the past. And colonialism 2.0 in Africa isn't really the way forward.


Btw, still fairly convinced the real target is SWFs; JP Morgan's "six best men to Scylla" play is obviously a reference to the PIIGS [and France?], I'd put money on them wanting the EU being forced at some point to back-stop all the printing with SWFs of member states, with them & GS running in with their greedy little paws. But, that's all pure hypotheticated guesswork.

Fri, 01/04/2013 - 06:43 | 3121399 jubber
jubber's picture

IBEX positive nothing to see here

Fri, 01/04/2013 - 08:09 | 3121460 Catullus
Catullus's picture

Don't worry: we're defaulting on ourselves.

Fri, 01/04/2013 - 08:40 | 3121490 Arturo
Arturo's picture

This pretty much summarizes the situation:

Fri, 01/04/2013 - 08:45 | 3121496 Monedas
Monedas's picture

North Koreans don't need no bath salts to eat faces .... they have found that hunger is more than sufficient to whet their appetites to stuff face !

Fri, 01/04/2013 - 09:38 | 3121608 blindman
blindman's picture

who was talking about cost push inflation? jim grant,
jim rickards, ...kyle bass, that's the guy. cost push.
do the people at the fed and in washingham know about
this? is it supply push or cost push inflation?

Sat, 01/05/2013 - 15:52 | 3125531 MeelionDollerBogus
MeelionDollerBogus's picture

so in the year 2015 we'll be reading about the massive shortage of dog kibble in Spain?

In 2017 the sudden disappearance of all dogs?

People gotta eat somethin'

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