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 | 3376076 Shizzmoney
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The whole country is in RED.

Fitting, on a number of levels.

Tue, 03/26/2013 - 08:07 | 3376084 GetZeeGold
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Crap.....and we were hoping no one was going to notice.

Tue, 03/26/2013 - 08:13 | 3376095 onewayticket2
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These numbers were printed BEFORE joe biden's recent $550k per night hotel stay. 


Tue, 03/26/2013 - 08:25 | 3376106 GetZeeGold
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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 | 3376230 Vince Clortho
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Does the $550K include Hookers and Blow?

Trying to decide if Priceline could do better.

Tue, 03/26/2013 - 08:10 | 3376088 Aegelis
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I always play red in Risk so this means I get 5 armies per turn.

Tue, 03/26/2013 - 08:38 | 3376153 Monedas
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Switzerland is PINK .... I told you the whole world is different shades of socialist red !

Tue, 03/26/2013 - 11:49 | 3377278 Kirk2NCC1701
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What's wrong with pink or Pink?  I'm quite partial to shades of tan & pink.  Kirk out.

Tue, 03/26/2013 - 12:12 | 3377403 JimBowie1958
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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.


Tue, 03/26/2013 - 08:07 | 3376081 hugovanderbubble
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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 | 3376091 terex
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whatever flation, the policy will remain the same - deflate everything close but not inside Das Reich

Tue, 03/26/2013 - 08:16 | 3376101 luckylongshot
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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 | 3376188 Navymugsy
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Head of Bank of Cyprus resigns:


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

Tue, 03/26/2013 - 09:05 | 3376241 Vince Clortho
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Soon to be Vice President of the Flux Capacitor Division of the Squid.

Tue, 03/26/2013 - 11:14 | 3377020 Son of Loki
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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....

Tue, 03/26/2013 - 08:18 | 3376107 toys for tits
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Global warming shown on the map is not caused by humans.

Tue, 03/26/2013 - 08:19 | 3376109 Cdad
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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 some previous point.  But since Cyprus hit the windscreen, and since yesterday's absolutely ridiculous comment vomit from those they call "ministers" in the is quite clear what needs to happen now.  You can't be allowing these idiots to confiscate your 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 | 3376160 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 | 3376193 GetZeeGold
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Time to roll out Agenda 22,

Tue, 03/26/2013 - 08:53 | 3376199 kridkrid
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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 | 3376327 eclectic syncretist
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Tankomatic.  The fact that they can't open the banks tells it all.

Tue, 03/26/2013 - 08:21 | 3376117 BadKiTTy
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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 | 3376157 NoWayJose
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Then apply the seasonal adjustment!

Tue, 03/26/2013 - 08:43 | 3376173 onewayticket2
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Then blame it all on the republicans and sequestration.

Tue, 03/26/2013 - 08:53 | 3376196 GetZeeGold
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Hard to believe a reduction in the rise of spending would cause all these problems.

Tue, 03/26/2013 - 09:07 | 3376248 Vince Clortho
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Then multiply by Avogadro's Number.

Tue, 03/26/2013 - 08:22 | 3376122 kridkrid
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GDP estimates are too high, across the board and CPI is too low. Even bad news is propaganda.

Tue, 03/26/2013 - 08:28 | 3376131 GetZeeGold
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Pardon you have any Bernays?

Tue, 03/26/2013 - 08:37 | 3376152 machineh
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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 | 3376249 smacker
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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 | 3376330 onewayticket2
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Let's leave China out of this for now.....

Tue, 03/26/2013 - 08:27 | 3376129 All is chosen
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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 | 3376133 RaceToTheBottom
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They just need a Greenspam.

Tue, 03/26/2013 - 08:32 | 3376143 Super Broccoli
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i'd like to see the score for belgium ! i'm sure it's pretty ugly too

Tue, 03/26/2013 - 08:34 | 3376147 LawsofPhysics
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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.... know your history.  History is very clear on how this turns out, hedge accordingly.

Tue, 03/26/2013 - 08:40 | 3376162 Monedas
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STAGFLATION .... Too many horny old Russians on Viagra .... not enough hot, single Cypriot honey pots !

Tue, 03/26/2013 - 08:41 | 3376165 MFLTucson
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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 | 3376167 LawsofPhysics
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The BRICs are done with the western charade.  Big news folks, and no-one appears to be paying attention.


Tue, 03/26/2013 - 09:07 | 3376247 kridkrid
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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 | 3376260 hooligan2009
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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 | 3376323 falak pema
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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 | 3376175 Whoa Dammit
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Tue, 03/26/2013 - 09:05 | 3376239 hooligan2009
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Cyp- RIOT more likely?

Tue, 03/26/2013 - 09:08 | 3376254 Whoa Dammit
Whoa Dammit's picture

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

Tue, 03/26/2013 - 09:28 | 3376366 francis_sawyer
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Tue, 03/26/2013 - 09:33 | 3376382 NotApplicable
NotApplicable's picture

Don't you mean Cyp-iRot?

Tue, 03/26/2013 - 08:46 | 3376179 howenlink
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The red countries need to get their own helicopters.

Tue, 03/26/2013 - 08:48 | 3376184 Sudden Debt
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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 | 3376236 hooligan2009
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i think your animated gif remains "de rigeur" for the forseeable (no debt repayment..ever) future!

Tue, 03/26/2013 - 08:50 | 3376189 timbo_em
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Thank God, they didn't include the triple-dip-full-QE-madness UK!

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