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Plunging Greek Wages Crater Q2 Disposable Income By 9.3%, Government Borrowing Rises To Record

Tyler Durden's picture





 

Can someone please explain this whole "Grecovery" concept to use because neither we, nor apparently the people of Greece which are not only unemployed and broke, but have negative savings, and collapsing wages, social benefits and disposable income, seem able to understand it.

Here is the latest absolutely disastrous news from Elstat, reporting on Q2 Greek Non-financial sector accounts

During the second quarter of 2013, disposable income of the households and non-profit institutions serving households (NPISH) sector (S.1M) decreased by 9.3% in comparison with the same quarter of the previous year, from 33.2 billion euro to 30.1 billion euro. This was mainly on account of a decrease of 13.9% in the compensation of employees and a decrease of 12.4% in social benefits received by households.

This was the biggest drop in household disposable income since Q3 2012. Is this part of the Grecovery?

Next, the savings rate of the households and NPISH sector, defined as gross savings divided by gross disposable income, was -8.7% in the second quarter of 2013, compared with -6.7% in the second quarter of 2012.

So, households are broke, unemployed, and have negative savings. But at least the stock market is up. Is this, too, part of the Grecovery?

Finally, remember that myth about the suddenly accountable and responsible Greek government, which has a primary surplus, and is living within its means? Then please explain the following:

Net borrowing of general government (S.13) during the second quarter of 2013 amounted to 14.0 billion euro, compared with 3.8 billion euro in the second quarter of 2012. The increase in the General Government deficit in the second quarter of 2013 is due to capital transfers in the context of the program of state aid to specific banks. Net borrowing of general government excluding the impact of the support to financial institutions in the second quarter 2012 amounted to 2.6 billion euro.

This was the biggest quarterly government borrowqing in well... ever. Is this the final component of the Grecovery?

And some other independent data poinst:

  • Greek 2Q Govt Deficit Widens to 16.6% of GDP From 11.0% in 1Q - obviously, this spells Grecovery
  • Greek Debt Swells to 169.1% of GDP in 2Q, Nearing Pre-PSI Levels - this definitely must be the Grecovery, right?

The good news for all the broke, unemployment, incomeless Greeks: you still have your precious Euro.

Source: Elstat

 


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Tue, 10/22/2013 - 08:06 | Link to Comment TeamDepends
TeamDepends's picture

Long feta (goats).

Tue, 10/22/2013 - 08:24 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

First it was dogs roaming the streets because no one could afford them.

 

Now I assume there will be a wave of cats next.

 

Doesn't socialism rock?

Tue, 10/22/2013 - 08:29 | Link to Comment TeamDepends
TeamDepends's picture

It is the roaming bi-peds, especially if the EBTs dry up, that keep us up at night.

Tue, 10/22/2013 - 08:48 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

I always thought the meat in those Gyros tasted funny...

Tue, 10/22/2013 - 11:53 | Link to Comment Element
Element's picture

The good news is the worst is over ... so I hear ... um, heard, sorry.

Tue, 10/22/2013 - 12:19 | Link to Comment asteroids
asteroids's picture

I don't get it either. NBG (National Bank of Greece) up 50% for the month! Opa!!

Tue, 10/22/2013 - 13:00 | Link to Comment fourchan
fourchan's picture
dont be fooled. 
this situation is the system called the fed reserve. 
the system is working perfectly. 
the system has taken 100 years to bring the only uncontrolled nation to its knees. 

the system is, if you haven't seen it yet. 

to enslave a free people to debt with paper created out of thin air, 
and capture all productive assets through boom and bust cycles the system creates.

Tue, 10/22/2013 - 09:12 | Link to Comment Escapedgoat
Escapedgoat's picture

Anyone needing CONTAINERloads just available to ship in Europe and the States.

Just keep me posted. (limited to 1 per week for the moment)

Tue, 10/22/2013 - 08:09 | Link to Comment Doña K
Doña K's picture

Government workers being paid in euros spread the faulty idea that getting out of euro it will be worse. Being so many of them they are succeeding.

Get out of the euro if you want to be liberated.

Tue, 10/22/2013 - 08:23 | Link to Comment Nothing but the...
Nothing but the truth.'s picture

No problem - print some moar fiat. Easy fix.

Tue, 10/22/2013 - 08:14 | Link to Comment Grande Tetons
Grande Tetons's picture

Croatia...behold your future. 

Tue, 10/22/2013 - 08:20 | Link to Comment kridkrid
kridkrid's picture

Don't stop there.... unfunded liabilities everywhere.... we are getting ready for a giant global reset. Wonder what it will look like on the other side?

Tue, 10/22/2013 - 08:24 | Link to Comment Ponzi Pontiff
Ponzi Pontiff's picture

"unfunded liability" = "I'll pay you afterwards.  And I promise I wont come in your mouth".

Tue, 10/22/2013 - 08:57 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

"unfunded liability" = Gladly pay you Tuesday using profits from my new website. I promise that I'll pull out, I promise, don't worry. DO-NOT-WORRY.

Tue, 10/22/2013 - 08:16 | Link to Comment KidHorn
KidHorn's picture

They'll be bailed out over and over. They know this. They owe German banks a lot of money.

Tue, 10/22/2013 - 08:36 | Link to Comment Peter Pan
Peter Pan's picture

Europe is not interested in Greeks. It is only interested in Greece. Once you understand that then everything else makes sense.

Tue, 10/22/2013 - 08:16 | Link to Comment firstdivision
firstdivision's picture

Merkel will proclaim them fixed and Draghi will demand that Greece fudge their numbers again.

Tue, 10/22/2013 - 08:24 | Link to Comment shovelhead
shovelhead's picture

Goldman is working the books to make Greece solvent...again.

No problem.

Tue, 10/22/2013 - 08:17 | Link to Comment 29.5 hours
29.5 hours's picture

 

"people of Greece which are not only unemployed and broke, but have negative savings, and collapsing wages, social benefits and disposable income"

Picky picky picky. I'm beginning to detect a certain amount of negativity in the Durden clan.

 

Tue, 10/22/2013 - 08:42 | Link to Comment Nick Jihad
Nick Jihad's picture

the dream of a nation where everyone has a gummint job, dies hard.

Tue, 10/22/2013 - 08:21 | Link to Comment Ponzi Pontiff
Ponzi Pontiff's picture

"The increase [in the deficit] ... is due to capital transfers in the context of the program of state aid to specific banks"

Insolvent Government borrows in a zombie currency to give artifical life support to zombie banks - and that is the news.  WTFF?

TPTB are pissing all over the Greeks, and dont even have the decency to call it rain.

Extended bank holiday and capital controls next - "give us your richez, bitchez".

Long lampposts and piano wire ...

Tue, 10/22/2013 - 08:23 | Link to Comment Pig Circus
Pig Circus's picture

Coming here soon. Only thing that will stop the slide of DI here is if nobody signs up for Obumbled Care and only pay the fine.

Tue, 10/22/2013 - 08:24 | Link to Comment Quinvarius
Quinvarius's picture

This is basicly the worst case scenerio when you go off of a gold standard.  The bankers printing money nonstop and unrestrained for themselves, while at the same time making sure the public and economy lose all access to money.  The bankers are so scared of hyperinflation as they print the money they want, that they purposely cause a depression to delay it.  At least if they were on gold, the printing part would be limited and the people would have some savings.  But that is cool.  They pushed paper gold down 30%.  So the less intelligent can pretend gold would not have helped.      

Tue, 10/22/2013 - 08:25 | Link to Comment Sudden Debt
Sudden Debt's picture

SHEEPS MEET BBQ!!

Tue, 10/22/2013 - 08:25 | Link to Comment flacorps
flacorps's picture

Golden Dawn is illegal. And I suspect it's gaining in popularity.

Tue, 10/22/2013 - 09:22 | Link to Comment rustymason
rustymason's picture

Chryssí Avgí is the cool underground thing now. Leftist totalitarianism is so bourgeoisie.

Tue, 10/22/2013 - 09:04 | Link to Comment Escapedgoat
Escapedgoat's picture

THAT IS THE IDEA.

The Golden Dawn is the extension of the Crooks in charge in Greece. The Leader of the Arian Greek followers, before his mistress. Look at his face   

http://lefteria-news.blogspot.co.uk/2012/05/blog-post_4557.html

Also his receipt from past "Services" rendered to the Deep state   http://www.to-radar.gr/Misthodotoumenos-praktoras-tis-KUP-o-Mixaloliakos...

So the Sheeple of Greece walking right into the trap that has been setup for them really nicely.

They are going to make illegal because the fools think that, that product is independent , my arse

Tue, 10/22/2013 - 08:27 | Link to Comment wagthetails
wagthetails's picture

goes to show you just how bad US data has to be before the stock market even thinks about declining.  we are a LONG way away from that.  the result will be the same for US and Greece, but they are a couple years ahead of us...so GAME ON!

Tue, 10/22/2013 - 08:45 | Link to Comment Escapedgoat
Escapedgoat's picture

" Finally, remember that myth about the suddenly accountable and responsible Greek government, which has a primary surplus, and is living within its means?"

 

This is the Government run by Mr. SomeAreAss (Samarash) He had mismanaged/missaproprieted  (Accidentally on purpose) funds from a rich relative in New York back in the seventies.

Are we led to believe that,  that crook, is going to help the Greeks or HIMSELF?

Tue, 10/22/2013 - 08:49 | Link to Comment youngman
youngman's picture

Its funny how their stock market is doing so well......but they have farther to drop...less pay..less jobs...less tax revenues forever as people are going to a black market economy...Greece is a dying country....its not going to be fun either...

Tue, 10/22/2013 - 09:40 | Link to Comment NickStrange
NickStrange's picture

MONOTONICALLY INCREASING SEQUENCE  aka fiat money borrowed at an interest from central banks

is it FINITE or INFINITE ? :-)))

Tue, 10/22/2013 - 10:10 | Link to Comment Yancey Ward
Yancey Ward's picture

I told you the other day- Happy Talk from TPTB <i>is</i> the only true economic metric.

Tue, 10/22/2013 - 10:22 | Link to Comment yrbmegr
yrbmegr's picture

Greek government withdraws from the national economy, tax receipts fall further.  Net borrowing rises.  Withdrawal from the economy must accelerate.  National collapse will accelerate.  The most excellent way to get one's national finances in order.

Tue, 10/22/2013 - 12:37 | Link to Comment kchrisc
kchrisc's picture

Don't they have wood, nails and blades in Greece?! In a pinch, trees and ropes will do fine as well.

Tue, 10/22/2013 - 13:45 | Link to Comment SmittyinLA
SmittyinLA's picture

Prediction Golden Dawn wins more seats as direct result of mass criminal invasion and unemployment displacement by mass state subsidized alien scab labor.

Greece needs an immigrant charge law, and mass deportations.

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