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Europe's Scariest Chart Goes From Bad To Worst On Record

Submitted by Tyler Durden on 10/31/2013 09:23 -0400

The "wedge" between 'market-perception' and economic reality, that we discussed in detail last night, driven by Merkel's enabling of Draghi's excess, has never been more extreme. As Elliott's Paul Singer noted, things are indeed "wrong and dangerous" when politicians are proclaiming victories, stocks are at record highs, bonds risk is at multi-year lows and yet unemployment rates (most specifically among the under-25 youth of the region) soars back to record highs. A stunning 24.1% of young people across the entire euro-zone is unemployed; Spain (having 'exited' its nominal recession) stands at a record 56.5% youth unemployment, topped only by Greece's mind-numbing 57.3% youth unemployment record (as Greek bond yields hit 3 year lows). France and Italy also hit record highs and Cyprus' broad unemployment level has exploded from 28% a year ago to 43% now. Amid all of this, Germany's youth unemployment continues to improve to a 20 year low. Recipe for disaster?

Data: Bloomberg

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Thu, 10/31/2013 - 09:26 | 4108276 Mongo

Time to open some more McDonalds restaurants...?

Thu, 10/31/2013 - 09:28 | 4108282 DeadFred

Conscription works well too.

Thu, 10/31/2013 - 09:32 | 4108293 banzai401

With all the fuck god damn think tanks like RAND Corp, you would think this shit would have all been planned like a fucking fiddle stroke.

Obama call's it 'national service', funny Hitler called it National Service same-same, ...

Keep the kids busy, better yet, give them no alternative, turn them against the status quo, make them think they are the future, and meld them into your way of thinking, and then you have a New World Order aka 'brown shirt' working for free, .

Thu, 10/31/2013 - 09:43 | 4108327 EscapeKey

Does Corrections Corp "employment" count?

Thu, 10/31/2013 - 10:48 | 4108530 I am more equal...

Hark! what cometh over doth mountain tops?

More and more of the same.

Thu, 10/31/2013 - 09:26 | 4108278 Doña K

Don't bother updating your CV

Thu, 10/31/2013 - 09:58 | 4108354 holgerdanske

Don't worry. Many of the youths of today are functionally illiterate. You are most likely better off checking if they can make themselves understood verbally.

Thu, 10/31/2013 - 09:27 | 4108279 LawsofPhysics

I remain long sharecropping and black markets and black market currencies...

The central planners will keep "winning" right up until WWIII when they "solve" this little problem.

Same as it ever was...

Thu, 10/31/2013 - 09:28 | 4108283 6th of May

It'd be interesting to know how many under 25 year olds there are - and how many there are going to be in a few more years... due to demography and stuff...:D

Thu, 10/31/2013 - 09:29 | 4108286 banzai401

Social cohesion still holding well, compared to if the same metrics were prevalent in the hood of OOSAAA. ( usa as italians call it )

Can you imagine if 60% of the kids in the USSA were 'non-employed', ... fucking WWIII it would be,

Thu, 10/31/2013 - 09:53 | 4108357 LawsofPhysics

"Can you imagine if 60% of the kids in the USSA were 'non-employed', ... fucking WWIII it would be," - Bullshit, these kids are not that motivated.

Thu, 10/31/2013 - 09:55 | 4108360 overmedicatedun...

not working is a job too you know, ask any stay at home mom.

Thu, 10/31/2013 - 10:00 | 4108380 banzai401

Ok, so you prove the fucking point, while the Spanish or Greek kid might be pimping or whoring drugs or partaking in common crime, the un-employed american 'kid' under 40, would be home with his game-boy playing GTA, ... ok I get it,..
But this is just a symptom of how fucking far the USA will fall when the SHTF,...

I agree the rich long ago complained that 'keeping money' is way harder than 'making money', so I can sympathize with the plight of the non-employed,

Besides given that the ObamaCare penalizes income, only a fucking moron has 'income' in the new OREO obama order.

Thu, 10/31/2013 - 09:57 | 4108365 forwardho

Yes, in U.S. we give our 18-25 year olds tens of thousands of debt to keep them out of the labor pool and call it higher education.

Kind of hard for a kid to get angry with his situation while he's being payed to drink beer and get laid.

Yet like all other forms of .gov spending, it creates nothing of value, and thus is a net loss.

Thu, 10/31/2013 - 10:05 | 4108403 banzai401

But don't you know that 'edoocation' is invaluable,

This reminds me of long ago on an African 'safari', I traveled all over africa, and the common theme was 'ok, now I speak english, my family's money is gone, I have an education, but still no fucking job, ... now what?'

So hell yes, 'edooocation' has got to be the greatest fucking mind-fuck on the youth ever, ... in truth it ain't worth fucking shit, ... sure nothing wrong with understand real math or science, or language, ... but you ain't going to learn that shit in school any how, ...

But that's not the point here, in any given time the youth are always 'fucked', ... so fucking what? Smart guys look around for who is getting laid, and who is making money and imitate, ...

Thu, 10/31/2013 - 10:06 | 4108409 LawsofPhysics

Nature and the laws of physics really doesn't give a shit. let the kid who figures out how to make the beer survive while the others die. The whole reason why Nature has worked so well is because there are real fucking consequences for bad choices (genetic or otherwise). Since real consequences have been removed from all levels of our eCONomic system, this is why it is failing.

Plan/act accordingly.

Thu, 10/31/2013 - 10:50 | 4108538 Widowmaker

What makes you think this has anything to do with economics, markets or output??

It's all about corruption and subversion. These are predators not tickle-me-Elmos.

Thu, 10/31/2013 - 09:34 | 4108299 Jason T

Socialism needs to crash and burn already. ..folks in Euroland need to read Atlas Shrugged already ... I feel like I'm taking crazy pills!

Thu, 10/31/2013 - 13:30 | 4109029 cro_maat

+1 You attracted 2 NWO Fascist Trolls - congrats!

Thu, 10/31/2013 - 09:36 | 4108302 NoDebt

Record unemployment WITH .gov bennies- calm.

Record unemployment WITHOUT .gov bennies- less calm.

Thu, 10/31/2013 - 09:37 | 4108307 yogibear

If the numbers look bad then adjust the stats and exclude them. Problem solved.

It then rallies the stocks and then the politicians can boast about how well the recovery is proceeding.

It works for the US.

Thu, 10/31/2013 - 09:39 | 4108313 Oldwood

I don't get it. What could possibly go wrong?

Thu, 10/31/2013 - 09:41 | 4108318 Tom G

Dammit. They really do seem to be a master race, huh?

F***ing Germans, man. Gotta give them credit (not literally). Stupid leftist policies don't seem to negatively affect them like nearly everybody else. Same gene stock and results as the Scandies, I suppose.

Thu, 10/31/2013 - 13:34 | 4109043 cro_maat

No they have just adjusted to the new reality better than other cultures.

When the 1% are the only ones getting paid then make stuff you can sell the 1% (e.g. Mercedes, BMW, anything quality engineered and high-end).

Thu, 10/31/2013 - 09:41 | 4108320 new game

until treasuries are dumped wholesale...

Thu, 10/31/2013 - 09:46 | 4108334 hugovanderbubble

and spanish bond at 4% lololol MUHAHAHAHAHA.

SELL SPAIN WITH BOTH HANDS.

Thu, 10/31/2013 - 09:57 | 4108362 6th of May

There's something in the bushes with Germany.

I'm sure they are doing some major illicit stuff.

Thu, 10/31/2013 - 10:28 | 4108461 trader1

As a rule, the economic system is usually fairly important to an economy's success. That, after all, is what creates the conditions for a country's economic activities. In Germany, this system is a "social market economy" - on the one hand, it is based on capitalist competition, but on the other hand it still allows the state to provide social correctives.

The roots of this lie in the 19th century. "Bismarck, also known as the 'Iron Chancellor' at the time, first introduced s...ocial legislation, by creating pension schemes and health care," said Werner Schreiber, former social affairs minister in Saxony-Anhalt. That system was based on a parity principle: in other words, one half would be paid by the employee, the other half by the employer.

This principle is still at the heart of Germany's social legislation, which, after the Second World War, expanded to include family policy, social welfare, and many other measures. Also, the social market economy includes the principle of tariff autonomy. "That means the unions and the employers negotiate salaries among themselves - without state intervention," Schreiber told DW. [source]

Germany currently has 1.1 million workers participating in short-time working programs, known in German as Kurzarbeit. They include people like Christian, who don't have enough work, but who also are nevertheless not being let go. They stay at home for days or even weeks at a time, and yet they receive 80 to 90 percent of their wages, thanks to subsidies paid by the Federal Employment Agency. [source]

During the Great Recession, short-time work programs

were most extensively used in Germany and are often

credited for having played a crucial role in dampening

the increase in unemployment there. However, Möller

(2010) challenges this view. Instead, he suggests that the

nature of the shock (which hit mostly export-oriented

manufacturing firms) as well as the initial condition prior

to the crisis, particularly a shortage of trained workforce,

high costs of layoffs and rehiring, led to strong incentives

for labor hoarding on the part of German firms.

However, even if it was not the main driving force behind

the behavior of firms, the short-time work scheme does

appear to have supported this employment-friendly

incentive in a beneficial way. [source, IMF pdf]

The United States Treasury singled out Germany for criticism in a report released on Wednesday that said Berlin’s reliance on exports was holding back its struggling partners in the European Union. The criticism echoes longstanding complaints from European economists and international banks. But it was notable because it was included in an unusual forum: a semiannual report that usually focuses on currency manipulation. The timing may reflect the United States’ wish to influence German economic policy as Chancellor Angela Merkel forms her new government after recent elections. [source]

Thu, 10/31/2013 - 10:05 | 4108401 NEOSERF

Free Iphones for all youth in countries with unemployment over 33%. Keep them surfing, texting,snapchatting, blogging and generally sedated. Works better than opium and drastically cuts the water cannon costs in those countries...

Thu, 10/31/2013 - 12:48 | 4108889 PartofOne

§ 3-303. VALUE AND CONSIDERATION.

(a) An instrument is issued or transferred for value if:

(1) the instrument is issued or transferred for a promise of performance, to the extent the promise has been performed;

(2) the transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceeding;

(3) the instrument is issued or transferred as payment of, or as security for, an antecedent claim against any person, whether or not the claim is due;

(4) the instrument is issued or transferred in exchange for a negotiable instrument; or

(5) the instrument is issued or transferred in exchange for the incurring of an irrevocable obligation to a third party by the person taking the instrument.

(b) "Consideration" means any consideration sufficient to support a simple contract. The drawer or maker of an instrument has a defense if the instrument isissued without consideration. If an instrument is issued for a promise of performance, the issuer has a defense to the extent performance of the promise is due and the promise has not been performed. If an instrument is issued for value as stated in subsection (a), the instrument is also issued for consideration.

Please explain what you mean by "free"? As far as I'm aware, nothing in this Universe is "free" (energy is exchanged/transferred, not appearing from nothing). Did not someone make the Iphones (or did they appear from nowhere)? Did not the makers of the Iphone give value and consideration to the laborers that produced the Iphone (or did they show up to work for nothing)? How would the youth receive the Iphone if they did not exchange something; either of "value" or "consideration" (or would the Iphone magically show up in the mail without the youth having to sign or promise something (i.e. "surfing, texting, snapchatting, blogging"))?

Nothing is free. NoThing is free. No Thing Is Free. NO THING IS FREE.

"Your word is your bond". You may give your endorsement either orally or in writing, either way, your bond has value (and it is traded in the primary or aftermarket; whether you like it or not).

A cat cannot make a dog. A dog cannot make a tree. Do what you do, it is part of the plan but remember that you come from the One. We are all (including the Anti-One) a Part of One. The One's will shall be done.

Thu, 10/31/2013 - 10:16 | 4108446 lolmao500

Obviously time to move to Germany to get a job.

Thu, 10/31/2013 - 10:19 | 4108453 shovelhead

I'm waiting for Ghordius to tell us everythings OK in Euroland because the people really really want the Euro, and really really like their overpaid Eurocrats job protection program squashing them like grapes.

At least they managed to remove the dreaded curse of crooked cucumbers from the markets, so you can't say it's not working.

The Euro will survive.

_{Even if it kills them.}

Thu, 10/31/2013 - 10:25 | 4108471 overmedicatedun...

the real failure of government: few if any modern governments trust the people, believe in the people to produce goods and services, socialism/fascism produce leaders who must lead the people and guide choices for them..and sadly this very structure will produce a population to fit the leaders vision of the people.

Thu, 10/31/2013 - 12:28 | 4108842 Ghordius

I usually point out in the Greece discussions that Greeks still want to keep the EUR, yes. plenty of evidence and polls for that

meanwhile you mix the EUR thing with the "overpaid Eurocrats" and crooked cucumbers rant, which would be the EU. two different clubs

I'm not saying that everything is OK in the eurozone. just note how a couple of Masters of the Universe are staging a bear raid on Spain

yet look again at the chart. note how Spain had over 40% of youth unemployment in 1994-5, before the EUR

then a few idiot M of the U started peddling the "the EU is like the US" and the "all the EU is like Germany" meme. and now we are paying the price

though also note in the very same chart that it was the Lehman crisis, i.e. the US sub-prime idiocy that started the whole mess. which was all about pumping money into the economy

and in the eurozone, we are staging a "cold turkey", as much as it's possible. so it's ugly. particularly compared with countries that are doing the opposite, and are still pumping money into the economy (though most of it stays in the financial systems)

we'll see, we'll see

Thu, 10/31/2013 - 10:46 | 4108520 Widowmaker

Suspend markets and print as much fraud as one wishes, it will NEVER conceal reality.

Financial racketeering is never a solution to financial racketeering.

Thu, 10/31/2013 - 10:55 | 4108551 Iam Yue2

The Germans have a lot of wealth and are focused on
keeping the world as it is, so that their wealth continues to gives power.
They don't want inflation (which erodes wealth and debt - letting the
borrowers off lightly) and they don't really care about growth.

Thu, 10/31/2013 - 11:03 | 4108579 all-priced-in

Europe needs to focus on immigration reform - if nothing else it will divert attention from their other problems.

/sarc/

Thu, 10/31/2013 - 11:12 | 4108602 Save_America1st

Those "uppity" Germans always gotta ruin the curve average for the rest of the Euro-trash, don't they? Looks like they shouldn't even be included in that graphic.

Thu, 10/31/2013 - 11:20 | 4108618 Calculus99

This really is an OUTRAGE when you put the percentages in perspective.

Youth unemployment in the Gaza strip is around 60%. Gaza is basically under the jackboot of Isreal so the figure is understandable.

But Europe with it's 10,001 advantages over somewhere like Gaza.

God these politicians are useless.....

Thu, 10/31/2013 - 12:31 | 4108848 Never One Roach

Dr. Brotherton says he’s worried that a lot of people who buy an insurance policy in rural counties may end up disappointed, “Because you’ve got a card that says you’ve got an insurance policy, that doesn’t mean you necessarily get to go see a doctor.”)

http://news92fm.com/393707/an-obamacare-problem-in-a-large-part-of-texas/

Thu, 10/31/2013 - 12:50 | 4108900 q99x2

Colleges are packed with youths around SoCal. I can barely get a parking spot at 11am and it is mid semester. Neet thing the teachers have a lot of competition so the professors are the best I've had in a long time. And, I've to meet one that has anything good to say about the Washington D.C. globalists. Colleges seem to be where the intellectuals are meeting to come up with literature art and music like they did before the French Revolution. Up my FASFA Bernanke M'Fer.

Thu, 10/31/2013 - 20:20 | 4110223 thisandthat

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/104160...

Europe's Scariest Chart Goes From Bad To Worst On Record

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