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The Global Stagflation-O-Meter Brings Even More Bad News For Cyprus

Tyler Durden's picture





 

Even more bad news for Cyprus, which now has not only a depression to look forward to but a depressionary stagflation to boot. Bloomberg has ranked countries based on their risk of stagflation based on the following methodology: First, the average real Gross Domestic Product and average Consumer Price Index was calculated for each country from 2012 to 2014. Then the Stagflation Score was determined by multiplying average real GDP by average CPI if the average real GDP was negative or by dividing average real GDP by average CPI if the average real GDP was positive. The lower the score, the greater the risk of stagflation. The winner, or loser at the case may be? Cyprus was found to be most at risk of stagflation with a Stagflation Score of -4.733, followed by Portugal (-2.671), Italy (-2.133), Spain(-1.745) and Greece (-1.366). Switzerland was ranked least at risk with a score of (7.560), followed by China (2.612) and Japan (2.446).

Source: Bloomberg Brief

 


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Tue, 03/26/2013 - 08:05 | Link to Comment Shizzmoney
Shizzmoney's picture

The whole country is in RED.

Fitting, on a number of levels.

Tue, 03/26/2013 - 08:07 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Crap.....and we were hoping no one was going to notice.

Tue, 03/26/2013 - 08:13 | Link to Comment onewayticket2
onewayticket2's picture

These numbers were printed BEFORE joe biden's recent $550k per night hotel stay. 

 

Tue, 03/26/2013 - 08:25 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

No chains of sequester will hold down Uncle Joe.

 

The White House visits are still closed until further notice. Hey ya gotta start somewhere right? 

Tue, 03/26/2013 - 09:03 | Link to Comment Vince Clortho
Vince Clortho's picture

Does the $550K include Hookers and Blow?

Trying to decide if Priceline could do better.

Tue, 03/26/2013 - 08:10 | Link to Comment Aegelis
Aegelis's picture

I always play red in Risk so this means I get 5 armies per turn.

Tue, 03/26/2013 - 08:38 | Link to Comment Monedas
Monedas's picture

Switzerland is PINK .... I told you the whole world is different shades of socialist red !

Tue, 03/26/2013 - 11:49 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

What's wrong with pink or Pink?  I'm quite partial to shades of tan & pink.  Kirk out.

Tue, 03/26/2013 - 12:12 | Link to Comment JimBowie1958
JimBowie1958's picture

Ummm, why is Venezuela on the list? Is this not a list of EUROPEAN countries in danger of stagflation?

Or, worst case, is this list of the top ten worst risks globally and it just happens that the top 9 are all in Europe?

Shit. It is Global.

Fuck.

Tue, 03/26/2013 - 08:07 | Link to Comment hugovanderbubble
hugovanderbubble's picture

Draghi´s PUT = FAILED

Insert another coin Central Banks....or a should say PRINT MOAAAR money....what ever fiduciary money has ended.

 

EURUSD fair value is below 0,84

Tue, 03/26/2013 - 08:12 | Link to Comment terex
terex's picture

whatever flation, the policy will remain the same - deflate everything close but not inside Das Reich

Tue, 03/26/2013 - 08:16 | Link to Comment luckylongshot
luckylongshot's picture

Why don't the Cypriots do an Iceland and track down and jail the banksters responsible for their problems?....oh they are the ones running the ECB and IMF:

Tue, 03/26/2013 - 08:48 | Link to Comment Navymugsy
Navymugsy's picture

Head of Bank of Cyprus resigns:

http://www.cyprus-mail.com/artemi/new-bank-cyprus-head-resigns/20130326

 

Wonder where he'll spend all of his bonus money?

Tue, 03/26/2013 - 09:05 | Link to Comment Vince Clortho
Vince Clortho's picture

Soon to be Vice President of the Flux Capacitor Division of the Squid.

Tue, 03/26/2013 - 11:14 | Link to Comment Son of Loki
Son of Loki's picture
A “Deep Recession” is Coming to Cyprus

 

On the bright side, Cyprus gets to stay in the Euro “club”.  On the other hand they now get to endure a long and painful future that will make them appear just like the other depressionary economies in Europe.   Athanasios Orphanides the former governor of the Central Bank of Cyprus was Bloomberg this morning discussing the inevitable economic decline....

 

 

http://pragcap.com/a-deep-recession-is-coming-to-cyprus

Tue, 03/26/2013 - 08:18 | Link to Comment toys for tits
toys for tits's picture

Global warming shown on the map is not caused by humans.

Tue, 03/26/2013 - 08:19 | Link to Comment Cdad
Cdad's picture

It is a tragedy...all of Europe now.  I'm sure it all began with some dream like vision of unity.  I'm sure there was a chance to make it work...at some previous point.  But since Cyprus hit the windscreen, and since yesterday's absolutely ridiculous comment vomit from those they call "ministers" in the EU...it is quite clear what needs to happen now.  You can't be allowing these idiots to confiscate your savings...to prop themselves up.  It is reset time.

And the tragedy of the US markets just now...apparently unable to see anything...profits, economy, bank fraud, the destruction of the Constitution...surely, it is apparent to everyone what the S&P 500 now represents.

Good luck, all.  This is going to get very ugly...

To the cosmic bunny hole!

Tue, 03/26/2013 - 08:39 | Link to Comment new game
new game's picture

and all while the brics are meeting to end run the imf and world monetary clearing bank.(bloomberg)

hmmm, what could that be all about.

how dare you not play by our rules

bankers not seeing eye to eye

or is the old money crossed the rubicon?

but then there is that military/cia complex thingy.

hmmm, where does this go?

world running out of resources to fuel this expoential growth.

is that the real war-using monetary policies of old vs new emerging power wannabes?

all the dynamics together with skirmishes every-fucking-where...

Tue, 03/26/2013 - 08:52 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Time to roll out Agenda 22,

Tue, 03/26/2013 - 08:53 | Link to Comment kridkrid
kridkrid's picture

Nice summary. My friends mock me for my calls of WWIII, but the table is set. Who knows where patty cake turns into something that people will finally recognize as war, but from where I sit, it's already started. I think history will talk about everything together.

Tue, 03/26/2013 - 09:22 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Tankomatic.  The fact that they can't open the banks tells it all.

Tue, 03/26/2013 - 08:21 | Link to Comment BadKiTTy
BadKiTTy's picture

Multiply the made up GDP by the made up CPI if positive and divide the madeup GDP by the made up CPI if negative. 

Tue, 03/26/2013 - 08:38 | Link to Comment NoWayJose
NoWayJose's picture

Then apply the seasonal adjustment!

Tue, 03/26/2013 - 08:43 | Link to Comment onewayticket2
onewayticket2's picture

Then blame it all on the republicans and sequestration.

Tue, 03/26/2013 - 08:53 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Hard to believe a reduction in the rise of spending would cause all these problems.

Tue, 03/26/2013 - 09:07 | Link to Comment Vince Clortho
Vince Clortho's picture

Then multiply by Avogadro's Number.

Tue, 03/26/2013 - 08:22 | Link to Comment kridkrid
kridkrid's picture

GDP estimates are too high, across the board and CPI is too low. Even bad news is propaganda.

Tue, 03/26/2013 - 08:28 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Pardon me....do you have any Bernays?

Tue, 03/26/2013 - 08:37 | Link to Comment machineh
machineh's picture

Plus, the math is just brain-damaged.

Up to a point, say 2-4%, a little CPI inflation cushions the blow of shrinking GDP. It keeps homeowners' equity from shrinking as fast.

Punishing Cyprus for a projected 2% CPI is ludicrous.

Meanwhile Venezuela with 20%-plus inflation gets a pass since high inflation is used as a divisor. If Venezuela's inflation was 100%, it would make very little difference in its positive score.

If the idiot who developed this cockamamie index was workin' for me ... he wouldn't be. FAIL.

Tue, 03/26/2013 - 09:07 | Link to Comment smacker
smacker's picture

 

Agreed. But this type of analysis, based on garbage official stats, is exactly what goes on in MSM AND in government.

Tue, 03/26/2013 - 09:23 | Link to Comment onewayticket2
onewayticket2's picture

Let's leave China out of this for now.....

Tue, 03/26/2013 - 08:27 | Link to Comment All is chosen
All is chosen's picture

I note that my homeland, & cradle of pseudo-democracy, mighty Britannia is above it all.........Or did someone forget it existed?

Tue, 03/26/2013 - 08:28 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

They just need a Greenspam.

Tue, 03/26/2013 - 08:32 | Link to Comment Super Broccoli
Super Broccoli's picture

i'd like to see the score for belgium ! i'm sure it's pretty ugly too

Tue, 03/26/2013 - 08:34 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Don't fall for the "flation" debate.  It is beyond stupid.  Food and fuel bitchez, with 7+ billion mouths to feed there is plenty of demand and you won't see any "deflation" anytime soon, unless....

..you know your history.  History is very clear on how this turns out, hedge accordingly.

Tue, 03/26/2013 - 08:40 | Link to Comment Monedas
Monedas's picture

STAGFLATION .... Too many horny old Russians on Viagra .... not enough hot, single Cypriot honey pots !

Tue, 03/26/2013 - 08:41 | Link to Comment MFLTucson
MFLTucson's picture

Doesnt matter, the world is saved by the con artists and Gold can now be sold off, no risk of default is possible until; 6 months from now!  The sham plays on.

Tue, 03/26/2013 - 08:42 | Link to Comment LawsofPhysics
LawsofPhysics's picture

The BRICs are done with the western charade.  Big news folks, and no-one appears to be paying attention.

http://www.bloomberg.com/news/2013-03-25/brics-nations-plan-new-bank-to-...

 

Tue, 03/26/2013 - 09:07 | Link to Comment kridkrid
kridkrid's picture

They might be done with the charade, but chances are... they just want a different charade. From the article....
Goldman Sachs Asset Management Chairman Jim O’Neill coined the BRIC term in 2001 to describe the four emerging powers he estimated would equal the U.S. in joint economic output by 2020. Brazil, Russia, India and China held their first summit four years ago and invited South Africa to join their ranks in December 2010.

Clearly the vampire squid just moves from one host to another, no? And the MIC needs a couple of side that can go toe to toe, no? So in this corner, the BRICs--- and anyone else who decides to team up with BRICs... trained by Goldman Sachs and backed by the MIC VS... in this corner, Western Democracies/IMF/World Bank... trained my Goldman Sachs and baced by the MIC. Scheduled for 12 rounds.

Tue, 03/26/2013 - 09:10 | Link to Comment hooligan2009
hooligan2009's picture

europeans have proved that language, culture and rapability provides too big a barrier to any form of union.

how different is this from mormon/quaker enclaves, LA ganglands, food stamp users, big city projects etc if anyone could be bothered to measure the discrete economies of these "entities"?

Tue, 03/26/2013 - 09:21 | Link to Comment falak pema
falak pema's picture

will Putin bounce off Cyprus into Durbanistan?

Very interesting, especially after major oil deal signed in Moscow with China.

India and Brasil are they compatible with the Russia-China axis? 

Interesting times!

Tue, 03/26/2013 - 08:43 | Link to Comment Whoa Dammit
Whoa Dammit's picture

CyprIrot.

Tue, 03/26/2013 - 09:05 | Link to Comment hooligan2009
hooligan2009's picture

Cyp- RIOT more likely?

Tue, 03/26/2013 - 09:08 | Link to Comment Whoa Dammit
Whoa Dammit's picture

They will probably get both--the rot and the riots.

Tue, 03/26/2013 - 09:28 | Link to Comment francis_sawyer
francis_sawyer's picture

Cyp-PUSSY RIOT...

Tue, 03/26/2013 - 09:33 | Link to Comment NotApplicable
NotApplicable's picture

Don't you mean Cyp-iRot?

Tue, 03/26/2013 - 08:46 | Link to Comment howenlink
howenlink's picture

The red countries need to get their own helicopters.

Tue, 03/26/2013 - 08:48 | Link to Comment Sudden Debt
Sudden Debt's picture

It would be better to make a animated gif of these number for the last 10 years...

so we'll see the trend for the next.

but on the other hand... that would be a study of history to predict the future...

Tue, 03/26/2013 - 09:05 | Link to Comment hooligan2009
hooligan2009's picture

i think your animated gif remains "de rigeur" for the forseeable (no debt repayment..ever) future!

Tue, 03/26/2013 - 08:50 | Link to Comment timbo_em
timbo_em's picture

Thank God, they didn't include the triple-dip-full-QE-madness UK!

Tue, 03/26/2013 - 08:52 | Link to Comment Monedas
Monedas's picture

Maybe Oprah could open a leadership academy and charm school for old Russians on the make .... the time is right .... it's gotta be a buyers market for .... well, you know ?  Just draghi a 20 Euro note through an ATM line !

Tue, 03/26/2013 - 09:09 | Link to Comment Vince Clortho
Vince Clortho's picture

Is this the same Oprah that will be POTUS candidate in 2016?

Tue, 03/26/2013 - 09:15 | Link to Comment Monedas
Monedas's picture

Priceless !

Tue, 03/26/2013 - 08:52 | Link to Comment Seasmoke
Seasmoke's picture

Japan ?????...., I thought they invented stagflation.

Tue, 03/26/2013 - 08:56 | Link to Comment falak pema
falak pema's picture

Oh the good days of wine n roses all flow away, when thorns, broomrape, botrytis and mistletoe replace the healthy host plants of orchards and vineyards in blossom. 

Microcosm of dire days to come as austerity rage bites into the flesh of oligopolista scum; tHe worst fungus of human variety.

So that the bitter taste of economic attrition blues be dispelled enjoy a trip to wonderworld of humoristic "what le fungus" land :

» What Le Fungus? The Funniest Vineyard Clip of the Decade - Bordeaux Wine Blog from Chateau Bauduc

awesome...now imagine if the vineyard was the CYprus bank account! 

Sacre bleu! 

Tue, 03/26/2013 - 09:03 | Link to Comment hooligan2009
hooligan2009's picture

broomrape?

witches ummm brew?

Tue, 03/26/2013 - 09:11 | Link to Comment Monedas
Monedas's picture

Kim Jong-Un, Putin, Ambassador Kerry and Dennis Rodman .... alone for 30 minutes in the Nicosia airport VIP men's room ?

Tue, 03/26/2013 - 09:23 | Link to Comment imbtween
imbtween's picture

Golly but I bet they're glad they stayed, and I'm sure they'll be better off than Iceland. Cause u no, Europe.

Tue, 03/26/2013 - 10:11 | Link to Comment sunnyside
sunnyside's picture

I've sat and watched wondering how this worldwide shitpile of an economic circlejerk has kept going for the past couple of years wondering as each "event" happened, would it be the one that finaly tipped us over.  History books teach that the shooting of some minor person was the ignition for WW1.  I'm not an historian, but realize that there has to be a lot more in place than one bullet, but it was still the trigger to unleash the underlying angst.  

 

Just maybe Cyprus is it.  Or just maybe Cyprus shows what is left in the tank for kicking the problem further down the road and what is happening in Cyprus will very shortly be popping up throughout Italy and Portugal and Spain.  Don't know if this is just a "yawn" or if history is being made in front of us.

Still buying silver today.

 

Tue, 03/26/2013 - 10:16 | Link to Comment Sandmann
Sandmann's picture

"minor person" ? You are nuts. Well a "minor person" today of similar rank would be Hollande or maybe Biden or perhaps Abe.......or even David Cameron

Tue, 03/26/2013 - 10:39 | Link to Comment orangegeek
orangegeek's picture

Stagflation?  Nice word for meaning deflation.

 

Fed keeps pumping cash, but prices have stalled and few are spending.  Raising taxes doesn't help either.

 

CRB is at 295.  In 2008 it was over 470.  In 2011 the CRB was 370. 

 

Deflation folks - the desire for credit has left the building. 

 

 

Tue, 03/26/2013 - 11:55 | Link to Comment Harrison
Harrison's picture

Stagflation is not deflation. Stagflation is where you have a crapped out economy and the government is still printing like mad, causing high inflation. Jimmy Carter's presidency is the poster child; before him, economists didn't even think it was possible.

Tue, 03/26/2013 - 10:40 | Link to Comment Broomer
Broomer's picture

There's also this problem, we do know CPI, GDP and friends are always worse than government says.

So, the red should actually be a lot darker.

Tue, 03/26/2013 - 11:52 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

I don't see anyone asking the obvious question:  What about the pale blue countries, e.g. UK, Slovenia, etc.  What do these colors mean?

Tue, 03/26/2013 - 11:53 | Link to Comment Harrison
Harrison's picture

Where's the USA on the list?

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