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It's Not Just Greece: Total European Debt Hits New All Time High
With all the talk of Greek debt unsustainability (and now, thanks to Jack Lew and the IMF, forgiveness), one would think that Greece - whose debt/GDP is set to rise to 238% according to Citi - is the only country in Europe which has debt problems. It's not, and as the latest data from Eurostat confirms, as of Q1 2015, European debt rose to €9.4 trillion from €9.3 trillion, which is a new record high debt/GDP of 92.9%, up from 92.0% the previous quarter.
It wasn't just the Euroarea of 19 EUR member nations that saw their debt increase: the broader European Union of 28 countries also saw its debt rise, and by a far more noticeable €300 billion, from €12.1 trillion to €12.4 trillion.
As Eurostat reports, "The highest ratios of government debt to GDP at the end of the first quarter of 2015 were recorded in Greece (168.8%), Italy (135.1%) and Portugal (129.6%), and the lowest in Estonia (10.5%), Luxembourg (21.6%) and Bulgaria (29.6%)."
Besides the averages, debt/GDP increases were recorded in 15 European countries; debt declined in 12 countries most notably in Greece where it declined by just over 8%. Courtesy of the Third Greek bailout we no know this won't last.
Finally, in addition to Greece, at least 4 other countries have debt/GDP of over 100%, with Spain and France on the verge of entering the triple digit club. Of course, none of these number include total government pension benefit and retirement liabilities. Adding those would push the ratios higher by another 200-300%.
Source: Eurostat
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Yes, but "debt is money", so this is a good thing right?
LMFAO!!!!
Fuck em.
Save us Eurogirl.....you're our only hope.
She sure is promiscuous one.
Be mindful she is someone's daughter.....just sayin.
I think Comet Girl can save us.
Aussie rock:
https://www.youtube.com/watch?v=kXrlyAc_Ij4
promiscuos? a girl that protests against QE? a... monetary conservative?
"Winthorpe, just think of the Loan Origination Fees."
The debt-induced global deflation. Yee-haw. Oil has been the first to take the hit. How many liters of gasoline can you buy on 60 euros a day AND eat food? Where's the bounce-back? Not going to happen.
Cash is king. Get as much as possible. Bury it. DON'T store the coordinates in your smart-phone. Oh, another tip: Take a heavy-duty garbage bag and cut disks out of it 1/2 inch larger than the diameter of a canning-lid jar top. Put the plastic disk under the canning lid and then screw on the retaining ring. The lids will rust and then your cash will get wet otherwise. The rings will rust too, but they will rust in place and won't fall off.
With enough cash saved up, you can say "fuck 'em" with confidence. (Arable land at the top of a watershed, guns and ammo, and an extended family are even better.) Besides, saving and not spending will only accelerate the collapse of the parasitic banker infestation. Most parasites are smart and don't tax their host's ability to survive. Not the human ebola called the banking elite. Greedy, yes; smart, no.
Financially, we're all fuckin br/oke.
.
Spiritually, we're 'lost' more than ever...
So catching up with the US?
perhaps, but your question reminds me of Zeno's paradox of Achilles and the Tortoise
the 19 eurozone countries, which have roughly the population of the US, have in total a gov debt of € 9.5 trillion, with a ratio to GDP of 93%
taken together, all 28 EU countries, (half a billion souls) have in total a gov debt of € 12.4 trillion, with a ratio to GDP of 88%
meanwhile, the ECB is also trying to catch up, and if Draghi succeeds, he'll clock an ECB total of 3 trillion (again, because they went down to 2.2)
we'll see. (the US clocked 18 and the FED clocked 4.5)
It's so sad that Russia, with only 14% Debt/GDP is so "Isolated" and its economy "Destroyed"?
For our US friends: /s
Incidentally, at the "Old" exchange rate of 1 EUR=1.40 USD the totals are quite similar? But, as you note, that was before Goldman Sachs, sorry I meant Draghi, "Got with the Programme" and entered fully into the "Fiat 99% Wealth Destruction prolong the Ponzi and back the Banksters" Game?
+1, I think only a "gone over the top" propaganda can picture Russia as isolated, and I wonder who believes this kind of talk
+1 "Incidentally, at the "Old" exchange rate of 1 EUR=1.40 USD the totals are quite similar?" funny, eh?
but don't forget that according to all "usual" measures, Europeans are poorer then Americans
and less creditworthy, which is both the source and the result, the game and it's goal, the strenght and the weakness
.
Putin and the Russian Centeral Bank have this 'under control' in a better fashion than any other country in the world. Sanctions are limiting there exposure and forcing true soveriegnty by having to be stratigically self sufficient. I see the inflationary phase that went into the Russian economy as very well planned, the 'importation of needed cheap labor, thanks to crazy Ukraine. Those gas pipelines under the Black Sea.. illusions that would never happen, mainly due to the depth of the water, 7500'.. That's a lot of pressure.
It is Greece that is the trigger to the Euro's ultimate inflation, after Germany gives up, because they are never going to get paid.. Germany will leave the Euro, they have to, and they have to follow Russia's example by killing trade deals. Nuland was right, FUCK THE EU, but for Germany, it will be, FUCK WORLD DOMINATION, because it is a broke system.
You watch.. Germany, Austria, the Swiss, the Netherlands, Norway and Sweden with the Finns trying to join in. Lithuania is firmly a US enclave and due to that Russia won't touch the others. Poland will have to side with Germany, but not as an equal just like a bunch of the others. The Ottoman Empire will rise in another form and Isreal will have to get more friendly with at least a couple of its neighbors mainly due to water issues. And perhaps the rise of the robot and the unic..
"If stupidity got us into this mess, then why can't it get us out?"
– Will Rogers
"I know that the voices in my head aren't real, but damn they come up with some good ideas"
And none of the numbers include corporate debt, personal debt, properties "in negative equity"........................
I'm fortunate enough to live in a country, Ireland, where our rising national GDP compensates for our profligate sovereign debt. This helps to downplay our sovereign debt situation.
All that GDP booked to Ireland by the accounting tricks of Intel, Google, Apple etc make our national gdp/debt appear better than it is.
"Debt pulls all spending forward."
The money created with debt creates the false sense of prosperity. As 'prosperous' as times 'use to be,' if it was created with borrowing it was fake.
This is what Doctor Faber has repeated ad nauseam but which the idiots don't want to admit. As he always says, "you can always produce lots of GDP by spending borrowed money."
If you subtract the amount of borrowings that have come into existence over the last 5 years there is in fact very little if any growth at all.
Please, as if debt and unfunded liabilities do not hit a new high everyday in the land of the free. They easily exceed $200 trillion and rise at least $7 to $10 trillion a year (Kotlikoff has them growing at $12.5 trillion a year since 2003). That works out to be $1,700,000 per taxpayer and rising at least $70,000 per taxpayer per year. In contrast, Greek debt is $65,000 per taxpayer:
Renowned economist Laurence Kotlikoff recently testified at the U.S. Senate about the runaway U.S. budget. How bad is it? Kotlikoff says, “I told them the real (2014) deficit was $5 trillion, not the $500 billion or $300 billion or whatever it was announced to be this year. Almost all the liabilities of the government are being kept off the books by bogus accounting. . . . The government is 58% underfinanced . . . . Social Security is 33% underfinanced . . . . So, the entire government enterprise is in worse fiscal shape than Social Security is, but they are both in terrible shape.” So, how much is America on the hook for in the future? Kotlikoff contends, “If you take all the expenditures that the government is expected to make, as projected by the Congressional Budget Office (CBO), all the spending on defense, repairing the roads, paying for the Supreme Court Justices’ salaries, Social Security, Medicare, Medicaid, welfare, everything and take all those expenditures into the future . . . and compare that to all the taxes that are projected to come in, and the difference is $210 trillion. That’s the fiscal gap. That’s our true debt.”
http://usawatchdog.com/financial-system-will-collapse-just-a-matter-of-w...
Kotlikoff goes on to illustrate that the fiscal gap is increasing at an alarming rate and that delay makes our problem much worse. In 2003, just a little more than a decade ago, the fiscal gap was $60 trillion. But by last year it had catapulted to $210 trillion. The fiscal gap may not continue increasing as rapidly as it has over the past decade, but with each passing year - as Congress and the President do their best to avoid action - our hole grows deeper by substantial amounts.
http://www.brookings.edu/research/opinions/2015/04/08-federal-debt-worse...
who buys this shit?
1. taxpayers who have no fucking clue whats happening
2. balance made up out of thin-air; digital-dollars that don't exist (IMO the very definition of inflationary since your adding $$$ to the system that wasn't accounted for ... will NEVER show up in wages, but shows-up in things like rent, food, energy, healthcare, taxes, higher education, stock prices, bond prices, etc.)
im sure this ends well ... they say so, so its gotta be true
Debt is healthy though so what's the problem?
The fiat defenders are delusional. How can a debt fueled economy and monetary system not result in termination? Are they willful idiots or is that just an unspoken aspect?
yes, termination, defaults, etc. but the question is always: who? and who... not?
to this, FOFOA for once wrote it in a very short way (paraphrased): if you try to save all debt... you kill the currency
So is Nymphomania...Ask your banker if he likes nymphos. I'm sure he will tell you : Nymphos are my best hobby as its all so healthy. (Bankers are known to be ace wankers, but that is another issue).
A banker is on dope and he loves hope like a sex addict wants a nympho.
Hope is another name for Rope to hang yourself, when you are corrupt.
A nympho should be a hit and run job, where you say "goodbye don't call me I'll call you" and you never look back!
Whew, life is too short and liberty too precious to call a nympho "my best hobby!"
Fortunately oversexed men outnumber oversexed women by 8 to 3. So it still leaves us a lot of "virgin territory" to find a sugar bun who is fun.
I am making the analogy between sex and money as it turns people on the same way.
Not that I like money enuff to forget my decency. You get my gist when you can give your fist to a hungry nun who wants her butt slapped for having lewd dreams-- instead of looking for the banker's best hobby.
Penitence is what a nun does best-- but she can cook you a good mushroom omelette-- if your fist is inspired.
I'll take an omelette any day rather than having my two "eggs" burned in a nymphomaniacal orgy.
La Notte! Marcello was awesome and Antonioni inspired. Like the current saga of Ashley MAdison, the film was about an estranged, unfaithful couple; hacked out.
Whacked out by Goldman Sachs! The story of our lives!
A proper accounting for unfunded pension and medical liabilities will all but confirm the unsustainability of the system and the insanity of those that persist in holding up the cardboard facade.
Its all good, this won't impact the US, infact it will likely force ervyone with any money left into the US. As funny as it sounds its true, the money will flood into the US as the Euro and China die, but then the US dies and, well, its all over until the IMF steps in with their SDRs - saving the day. This has been the plan for 60 years now and they havn't deviated from it at all. The Eurozone makes all this much much easier, as most here know already - Greece is a proxy for the rest of the western world. But hey, it still amazes me that people spend money on water that isn't as good as what comes from their tap - even if it isn't filtered. We do what they tell us to do, subconsiously or unconsiously - the end of this fucked up system is in sight, question is what comes next and that of course is up to us.
instrinsic value of it all = 0
and they use it to confiscate real things
just gotta love those Rothchilds !
The ratio to look at is the GDP vs Banking Balance sheets-- NOT MARKED to true value.
GDP = 12 trillion Banking Balance sheets : 32 trllion.
Now tell me what happens when the private banking debt, all interconnected--- and thus lightning could strike anywhere--- cannot be redeemed?
Its worse than the public debt in terms of downside potential.
Maybe it's time to think over the blaiming of Germany? Or will you just blame Germany for any debt accumulation?
Instead of "rescuing" insolvent and broken banks, it would be far cheaper to allow those broken banks to die.
GDP accounting method is bloody joke. Most of the countries fudge the GDP number to make it as high as possible hoping to push down the debt ratio. For instance, UK includes prostitution and drug dealing into the GDP. US includes movie productions. All GDPs are bogus.
Impoverished European countries drained away to penury by debt. Banks will own anything of value eventually. People there can then just worry about paying it off, so can their kids and grandkids.
A plan that must be working out well for some people.
When you have negative interest on Government Bonds debt means nothing. In a 100 years even if the debt is a 100 times bigger one has nothing to worry about if you just but out more of those Bonds and if one is lucky everyone can retire at 30 and live on this free Money. Robots will do all the work. As Money comes out of thin Air we have found Paradise.
"The trouble with Socialism is that eventually you run out of other people's money" — Margaret Thatcher
Let's not forget who is making the banking system insolvent. Governments! These socialist governments that only borrow money, with never having a plan to pay back their debts, puts banks in a liquidity trap. What is remarkable, here we have Greece the nightmare example of what happens when Governments just spend-borrow-spend, and yet, do France, Spain, Italy and Portugal learn anything? Nope.
More Greece's to come....next!
Oh no! The sky is falling! (Insert country) ought to have never financed their deficits with such instruments. Had they increased taxes instead to finance their follies, it would be more interesting.
I WILL TAX THE NEXT GENERATION TO PAY FOR YOUR PENSIONS! VOTE ME! I'M FUCKED!
Is there any country paying down its debt....didnt think so....but gold and silver keep falling in price....go figure
The last sentence of the article is pure and (almost) unfounded propaganda: AFAIK, fiscal gaps in the Eurozone are much much smaller than in the US. France and Germany are on the same track, and Italy actually has a fiscal surplus (long term budget surplus when factoring in pensions)
This is the Europe is doing better because it's sinking at a slower rather than America, argument.
It's a cripple fight argument too.
Well, I haven't EU was fine : since we're talking long term, 1% or 2% budget gap is a lot, but there already is a small reduction compared to the numbers issued by Kotlikoff in 2012. But this is a far cry from the 10+% fiscal gap in the US,...
I would EU members have the possibility (see Spain, for example) to reduce the fiscal gap. The US, I am not so sure (citizens unwilling to pay more taxes, private pension funds which are also deep in the red, cronyism preventing fast reforms at the expense of those benefitting from current regime...)
even if you look at countries that had their debt-to-GDP ratio getting lower their ABSOLUTE DEBT STILL WENT UP
for example for lithuania total government debt (first chart) is going up YoY
http://2g.lt/
http://www.usdebtclock.org/
and
http://www.usdebtclock.org/world-debt-clock.html
Portugal private debt is 240%. Add sovereign and you get a real 369%. Then add a yearly population loss of .7% and 3M retirees. I'd say 500% debt to GDP is not out of the board.
Yes, but the food is excellent, and the weather is sensational.
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And all we hear about is the whining about Austerity.
When austerity is imposed on the bastards, because there's nothing left, then we'll hear the crying and nashing of teeth!
•?•
V-V
Debt dont matter so long as the credit is still available. Thats pretty much how most if not all governments are operating. Greece gov gets and uses credit and the debt goes on the Greek people. So for the government connected its living the dream. The people get to live in the debt shithole.
The thing is its all fiat magic. AKA theft on the grandest scale. Its the only way to keep all the plates spinning.
It can go on in this state for generations. As long as enough people are producing the things tptb need to stay in control.They can and will continue to swipe everything they want or need.
Barter is just the thing to kill the fiat beast.
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there's been sOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOoOo much
!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!! A U S T E R I T Y !!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!
It is becoming increasingly clear and necessary that there we are entering an era of GLOBAL government defaults, from local to national levels.
Investors who thought that they were LENDING their money to governments,ie expecting to get their money back eventually with interest payments up to repayment,
will be discovering that instead
they were GIFTING their money to politicians who pissed it all away, mostly on vote-buying programs for the proletariat voting majorities.
Argentina, Greece, Detroit, Venezuela, Chicago, Puerto Rico, etc, etc, etc
There always comes the time when return of principal trumps return on principal