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Spain's Debt Surges To Record High At Accelerating Pace

Tyler Durden's picture





 

Somewhere deep down inside the European Union's leaders must know how foolish they are with their constant proclamations that the worst of the crisis is over and that growth will return any moment now. For now, the realists in the market have to be content with hard data, and as AP reports, Spain's central bank reports the troubled nation's debt jumped to a record 88.2% of GDP in Q1 2013. The year-over-year rise is also the fastest on record - so no green shoot there as the bank notes it expects the debt burden to rise to 90.5% of GDP by the end of 2013 (but may revise that forecast - up). The raw numbers are awesome. Spain's debt was EUR 922.8 billion at the end of March - up 19.1% from a year earlier and with unemployment at 27.2% and a fourth year of recession, the more-than-doubling of debt-to-GDP in the last five years suggests the 'OMT call' may be getting closer. The stagflationary slump in Europe (inflation rising faster than expected as growth lags) continues with nearly 20 million people out of work across the region.

 

 


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Fri, 06/14/2013 - 14:17 | Link to Comment lolmao500
lolmao500's picture

Wow. In 6 years, the debt-to-gdp ratio went from 37% to 88%!! That is crazy.

Fri, 06/14/2013 - 14:18 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Indeed, perhaps we should have held some tof those bankers and paper-pushers accountable after all?

Roll the mother fucking guillotines...

Fri, 06/14/2013 - 14:24 | Link to Comment Tsunami Wave
Tsunami Wave's picture

Anyone remember the Hugh Hendry video where he on the BBC was telling Rajoy/stiglitz that they was full of shit and Spain's debt would geometrically increase? (If no debt forgiveness/restructuring happens, austerity)

Fri, 06/14/2013 - 14:29 | Link to Comment kliguy38
kliguy38's picture

forget spain......look at the U.S........Total debt public and private looks like my dick.....40 years ago

Fri, 06/14/2013 - 15:01 | Link to Comment Telemakhos
Telemakhos's picture

Yeah, austerity. About that... So what happened with los recortes, anyway? You know, the cuts that Spain imposed on the populace in such as way as to make the most painful and public ones possible first, while continuing behind the curtains to build submarines that wouldn't float? The ones where they cut not only cut the salaries of the public employees who provided the most services for the populace as a whole (hell, they even cut the police salaries)?  Weren't los recortes suposed to reduce the debt?

Fri, 06/14/2013 - 14:17 | Link to Comment pods
pods's picture

Simple, just rename the chart to "Spain Awesomeness Meter."

Problem solved.

pods

Fri, 06/14/2013 - 14:21 | Link to Comment nope-1004
nope-1004's picture

Agreed.  Management of Perceptions would dictate that their is one helluva lot of stimulus going into that economy to fight unemployment.  Good job Spain!!  Keep up the good work.

 

Fri, 06/14/2013 - 14:31 | Link to Comment Bay of Pigs
Bay of Pigs's picture

And all I read today is people bashing gold and silver, and that they suck ass now as real assets.

And where does Spanish debt fit in there? 

Fri, 06/14/2013 - 15:17 | Link to Comment tarsubil
tarsubil's picture

No kidding. I tried looking at the chart again with that title and, man, Spain is doing awesome.

Fri, 06/14/2013 - 14:17 | Link to Comment SpiceMustFlow
SpiceMustFlow's picture

That's one hell of a curve. They should just cease to exist, spin of Catalonia and Basque Region, start over.

Fri, 06/14/2013 - 14:19 | Link to Comment SheepDog-One
SheepDog-One's picture

Stellar frugal debt/GDP ratio compared to the U.S. at 106%.

Fri, 06/14/2013 - 14:21 | Link to Comment cloudybrain
cloudybrain's picture

thats heading to the moon

Fri, 06/14/2013 - 14:22 | Link to Comment bnbdnb
bnbdnb's picture

Sustainable.

Fri, 06/14/2013 - 14:24 | Link to Comment timbo_em
timbo_em's picture

"Spain [or insert any other broke eurozone country in a troika program] is doing a great job. They are on the right track."

If I had gotten just one Euro for every time I had to hear such a statement from some eurokrat since 2010, JPM's vault would have been empty by now.

It comes to no surprise that just this week the Spanish Foreign Minister called for a limitless ESM. I have no idea who would provide the unlimited capital but then again I'm no liar or idiot.

Fri, 06/14/2013 - 14:45 | Link to Comment Mark Urbo
Mark Urbo's picture

I still don't see where they get the capital to do any more QE ?

 

Who would buy bonds in this titanic looking for an iceberg ?

Fri, 06/14/2013 - 14:42 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

There is likely a secret dirty deal between Mario Draghi and Angela Merkel, to keep the euro-zone from exploding until after Merkel's election in September

But it would be quite fitting to have it all blow up in time to send Merkel back to writing her memoirs

Confessions of Madame Nein : How an Ex-Communist Became the Deutsche Bank Dominatrix

Fri, 06/14/2013 - 14:49 | Link to Comment LawsofPhysics
LawsofPhysics's picture

"Deutsche Bank Dominatrix" - not the visual I wanted going into the weekend.  Damn it.

Fri, 06/14/2013 - 14:44 | Link to Comment Uncle Zuzu
Uncle Zuzu's picture

It's Friday, who cares?  Lets go for some Tapas.

Fri, 06/14/2013 - 14:50 | Link to Comment foxenburg
foxenburg's picture

as a matter of interest i spent a few hours at madrid airport yesterday delayed because of french atc strike. there was a coin shop on the concourse at terminal 1, but with no interesting coins, just some very overpriced commemorative ones. i asked about krugerrands and the people running the shop had never heard of them. i pulled one out and showed them - they were interested but obviously they haven't a clue about gold, bullion, etc. i live in spain and there is no awareness of gold.

 

when i went through security the woman stopped my cabin bag after xray and asked to see inside with the words "you've got a lot of gold in there?". i had 57 krugerrands but god knows how she knew it was gold. the machine must be able to recognise density?? she peeked inside the cloth bag and said "ok" and i was on my way no problems - to london gatwick.

i've moved quite a lot of kr from new york to uk and never had any questions. i have always declared on the way out and in, both directions. no-one is interested.

Fri, 06/14/2013 - 16:06 | Link to Comment SpanishGoop
SpanishGoop's picture

Two weeks ago from El Altet (Alicante) to Schiphol (Netherlands) with two undeclared 250gr gold bars in my wallet.

No problemo, they didn't even asked about it.

I think they didn't even reconized it and thought is was chocolad or marzipain.

 

 

Fri, 06/14/2013 - 18:58 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

I always get stopped with 100 oz AG.  To the point I take them out of my pack and put it in the tray outside the pack but same tray, inside its own paper bag.  They see it and peek into the paper bag but thank me for separating it outside of the pack.  It saves them running it through a second time in a separate tray and keeps it in my eyesight....

Sat, 06/15/2013 - 01:09 | Link to Comment Tsunami Wave
Tsunami Wave's picture

I one time flew to Florida, and I brought a bag of silver halves with me in my backpack. The TSA of course stopped me and searched my bag, and when they came across the big bag of silver halves the agent with the hipster glasses asked, "oh what are there? Coins? OHH do you just collect these?". And I nodded my head yes the whole time. Wow.

Fri, 06/14/2013 - 14:55 | Link to Comment sonni
sonni's picture

and in Italy the April 2013 public debt increased to EUR 2041.3 billion and the ratio Debt/GDP to 131.8%. not bad!

Fri, 06/14/2013 - 14:58 | Link to Comment Satan
Satan's picture

All the colours bled out of my Spider-Man towel.

Fri, 06/14/2013 - 15:07 | Link to Comment youngman
youngman's picture

But the interest rate is going back up...that is good for them right???? LOL....Who is buying these???  That is the criminal act.....if its the Spanish Pension funds...they deserve the losses they are about to take.....how come I bet the Fed will buy them at some point...

Fri, 06/14/2013 - 15:20 | Link to Comment EvlTheCat
EvlTheCat's picture

Escape velocity achievement unlocked!

Fri, 06/14/2013 - 15:27 | Link to Comment rucunus
rucunus's picture

divide that debt by 1,000,000,000 and you should get a reasonable estimate of the number of billionaires in spain

Fri, 06/14/2013 - 16:16 | Link to Comment Devotional
Devotional's picture

Hold your horses everyone ... they have not reached 100% yet (cough cough) according to the official (cough cough).

Fri, 06/14/2013 - 18:52 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

I don't think that the heavy stuff is going to come down for quite some time.....

Fri, 06/14/2013 - 20:00 | Link to Comment Youri Carma
Youri Carma's picture

If this isn’t a wake up call I don’t know what is?

Fri, 06/14/2013 - 21:53 | Link to Comment WTFUD
WTFUD's picture

The reign in spain slipped all the way down the drain!

Sat, 06/15/2013 - 04:04 | Link to Comment dudeman
dudeman's picture

I am not a Keynesian, but the Keynesians are right about one thing. When you have very high debt levels and you try to destroy the debt, the debt burden may actually become more unsustainable(you get caught in a trap where incomes fall faster than debts). What the Keynesians don't recognize is that transferring the debts from the private sector to the public sector just kicks the can down the road. It doesn't solve anything and it's just like a temporary sugar high. If debt/income ratios get too high, it doesn't matter what you do. In the situation that Spain is in, they will experience a collapse in their currency when they're forced to switch over to the Peseta.

Of course, different countries have different debt tolerances and borrow at different rates, but if the country's debt becomes too high for it to sustain, it doesn't matter what you do--your currency will end up collapsing one way or another.

Sat, 06/15/2013 - 10:20 | Link to Comment GERxit
GERxit's picture

"The stagflationary slump in Europe (inflation rising faster than expected as growth lags) continues with nearly 20 million people out of work across the region."

Sorry that's bollux with regard to the official inflation numbers... especially in Spain!

Take out the recent tax increases of the inflation figures and you end up with -0.5% in official numbers.

 

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