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Spanish Debt-To-GDP Surges To New Record High

Tyler Durden's picture


The last 2 years have seen the clearest indication of the health of Spain deteriorate at its fastest rate on record. In spite of constant reassurances from Rajoy et al. that recovery is here, as we noted here, it's not just unemployment that is dogging Spain; and now - having risen at a stunning 25.8 percentage points in the last 2 years, as Reuters reports, Spain's debt-to-GDP has hit 93.4% - the highest level in more than a century. Of course, we should not worry... Spain has reassured investors that sees the debt-to-GDP ratio peaking at 101% in 2015 and 2016, then it's plain-sailing to nirvana.. (and do not contradict them!)



Chart: Bloomberg


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Fri, 12/13/2013 - 21:12 | Link to Comment Groundhog Day
Groundhog Day's picture

more debt equals more money yea

Fri, 12/13/2013 - 22:42 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Sure. Tell that to Argentina. 

Hee hee.  

Fri, 12/13/2013 - 23:14 | Link to Comment Serfs Up
Serfs Up's picture


Fri, 12/13/2013 - 21:11 | Link to Comment NoDebt
NoDebt's picture

Remember when we used to fear countries like Spain and Italy getting in trouble because they were "too big to bail"?

Those fears seem almost childish now- like being scared of the dark- don't they?

Fri, 12/13/2013 - 21:54 | Link to Comment Al Huxley
Al Huxley's picture

I know, this complacency that's settled over the markets is much more enjoyable.  It's so nice not to have to worry about debt anymore.

Fri, 12/13/2013 - 23:43 | Link to Comment Tabarnaque
Tabarnaque's picture

Just like Cyprus. Everything was calm until... Hell finally broke loose. The Banksters need the sheeple deep asleep before they bring them to the slaughter house in the middle of a Friday night for a weekend holocaust.

Sat, 12/14/2013 - 07:49 | Link to Comment NoDebt
NoDebt's picture

I can't believe I didn't get a single down-vote on my original post (as of this writing).  I think you guys are right.  We may be over-doing this complacency thing a bit.

Fri, 12/13/2013 - 21:24 | Link to Comment Ungaro
Ungaro's picture

Fear not, there is no amount of debt the central banksters cannot monetize. That is money-for-free: the government issues debt, the central bankers buy it and return all interest to the Treasury. When the debt matures, the government just rolls it. Sweet, huh?

Sat, 12/14/2013 - 14:14 | Link to Comment Emergency Ward
Emergency Ward's picture

Dinero ex nihilo.  The faux-secular central bankers all worship at the Church Of Fiat.

Fri, 12/13/2013 - 21:28 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

That's weird.


My son just bought a dozen condos in Madrid. 

Sat, 12/14/2013 - 16:45 | Link to Comment Its_the_economy...
Its_the_economy_stupid's picture

does that make him 12x's a citizen?

Fri, 12/13/2013 - 21:41 | Link to Comment Boondocker
Boondocker's picture

they need to learn how to cook the numbers like the fed and the bls.... slackers

Fri, 12/13/2013 - 21:41 | Link to Comment Yen Cross
Yen Cross's picture

  Lest we not forget those under(non)performing Spanish loans?

Fri, 12/13/2013 - 22:08 | Link to Comment q99x2
q99x2's picture

They should move to Uraguay.

Sat, 12/14/2013 - 03:58 | Link to Comment Non Passaran
Non Passaran's picture

Since the crisis struck they've been moving to Mexico and are pretty happy there (I talked to a guy who knows a guy...)

Fri, 12/13/2013 - 22:39 | Link to Comment Notarocketscientist
Notarocketscientist's picture

all according to krugman's plan

Fri, 12/13/2013 - 22:48 | Link to Comment akak
akak's picture

The sane in Spain are mainly on the wane.

Sat, 12/14/2013 - 11:09 | Link to Comment Temporalist
Temporalist's picture

Neo-Keynesian maniacs insanely razing Spain.

Fri, 12/13/2013 - 23:56 | Link to Comment Bunga Bunga
Bunga Bunga's picture

debt = wealth

Spaniards are getting wealthier by the day.

Sat, 12/14/2013 - 03:44 | Link to Comment Yen Cross
Yen Cross's picture

  Never quit and NEVER give up!  

    I'll die trying, before I give up!  Bitchez!

Sat, 12/14/2013 - 05:18 | Link to Comment Iam Yue2
Iam Yue2's picture

Rome, 13 Dec. (AKI) - Italy's vast public debt reached a record level of 2.085321 trillion euros in October, from 2.068722 trillion the previous month, the central bank said on Friday.

The public debt stands at around 133 percent of national economic output (GDP), highest rate in the eurozone after Greece.
Tax revenues declined to by 1.5 billlion euros in January and October this year from the same period of 2012, the Bank of Italy said.
In other news, ratings agency Standard & Poor's confirmed Italy credit rating at BBB/A-2 with a negative outlook.
The assessment reflected Italy's ''rich and diversified economy'' and the ''risk of a fragile recovery'' owing to the country's huge debt pile, S&P said.

Sat, 12/14/2013 - 20:54 | Link to Comment dermlord
dermlord's picture

Can someone in the know please explain to me how Spain and Ita;y 10 year debt is yielding only 4% now, and who is buying it, when US 10-year is almost at 4%. That spread make no sense.

Sun, 12/15/2013 - 13:16 | Link to Comment The Merovingian
The Merovingian's picture

Donde' esta la casa de pay pay?

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