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The Austerity Wonderfulness Of 'Great Success Story Latvia'

Tyler Durden's picture


Everything you need to know about the success of austerity, but were afraid to ask. In a little under 90 seconds, this Borat-inspired cartoon explains "Why so many central bankers, politicians, and pundits admiring 'austerity wonderfulness'?" The answer, perhaps tongue-in-cheek, is because of "Great Latvia Success Story".



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Mon, 06/18/2012 - 12:20 | 2536484 Aziz
Aziz's picture


Mon, 06/18/2012 - 12:31 | 2536522 knukles
knukles's picture

Happy Thought for the Day


As the world goes quickly to shit, we obviously can thank all of our erstwhile leaders.

Most of whom these days are from Goldman.


maniacal laughter

Mon, 06/18/2012 - 13:58 | 2536824 FeralSerf
FeralSerf's picture

Is Goldman the modern day version of the Pied Piper of Hamelin leading the children to unspeakable horrors?  Is the Pope Catholic?

"The Pied Piper of Hamelin . . . was a real man, but there was nothing enchanting about him. Quite the opposite; he was horrible, a psychopath and pederast who, on June 24, 1484, spirited away 130 children in the Saxon village of Hammel and used them in unspeakable ways. Accounts of the aftermath vary. According to some, the victims were never seen again; others told of disembodied little bodies found scattered in the forest underbrush or festooning the branches of trees."

Mon, 06/18/2012 - 15:13 | 2537065 S474NtheD3v1L
S474NtheD3v1L's picture

What are one potato say other potato?
Premise ridiculous. Who have two potato?

Latvian girl is say, "I want go America one day."
Father say, "I send you America."
Daughter is thank father. Make tears of happy. Father use for salty potato.

Father think moment, say, "Daughter, I no send you America."
Potato is more salt.


Mon, 06/18/2012 - 22:25 | 2538223 CPL
CPL's picture

Then who was phone?

Mon, 06/18/2012 - 22:37 | 2538255 A Nanny Moose
A Nanny Moose's picture

Now back to Moose and Squirrel

Mon, 06/18/2012 - 23:49 | 2538478 merizobeach
merizobeach's picture

Wonderful, thank you.  I laugh so hard I can salt potato.

Mon, 06/18/2012 - 12:32 | 2536529 Clueless Economist
Clueless Economist's picture

I, the Great Krugman, hate austerity.  Why in hell should these countries/peoples live within their means?  They should have unlimited credit to amass more and more debt.

The only solution to the debt crisis, is more debt.

Mon, 06/18/2012 - 13:18 | 2536690 Winston Smith 2009
Winston Smith 2009's picture

Austerity is required and is a good thing IF that term means governments spending only what they take in in revenues.  Perpetually living off a national credit card when politicians promise more than they can deliver must end.

However, if "austerity" means cutting services so that banks can be rescued from the consequences of the stupid, unsecured loans they made, as is the case in every country exercising austerity measures, then it's a very bad thing.  From

On "Austerity" And False Gods

I'm about to throw up listening to some of these clowns on The Hill this morning, particular Maurice Hinchey (D-NY-22) who is emitting nonsense from his pie hole as I write this.

Let's make this simple so everyone can understand.

We hear that "austerity" is bad -- and unacceptable.

It is, as it has been implemented in places like Greece, as I have repeatedly noted.

In Greece and many other cases "Austerity" is defined as pulling back government spending in the public realm but retaining the spending in the form of transferring money to the banksters who foolishly lent against nothing and, absent that support, would collapse.

What this means is that all these policies are doing is in fact stealing the production of the common man and woman and giving it to the banksters.

There is no means to avoid the contraction in the economy that must come from the removal of unsupportable debt.  When that model fails -- and it always does and must, as mathematically it is impossible to grow debt faster than production and not have it blow up in your face, all you will be faced with is the same contraction, plus more, but in the meantime your wealth and production will have been stolen to pay off the banksters!

The choices are not between "austerity" and "stimulus" or anything of the sort.

Again, there is no avoiding the contraction in both debt and GDP that must take place.  The only question is whether you'd like to allow the banksters to steal, using the power of government, more and more of your wealth and income before the contraction takes place, effectively paying off their bad bets and forcing you to cover them twice!

That's all folks.  We're not arguing over whether we should take path #1 which will result in economic contraction or path #2 which will not.

We are arguing over two paths which will both lead to severe economic contraction but in one case you will stop handing over your wealth and income to the banksters who knowingly made bad loans and accept the contraction now and in the other you will be bankrupted by these transfers under the false claim that contraction can be avoided and then take the contraction, materially increasing your pain!

The "no pain" path is what Greece was sold and now, after two years, the truth has become evident: the (intended) outcome was "no pain for banksters, everyone else starves."

This was not an accident -- it was in fact by design and was a fraud sold to the Greek people just as it has been sold to America!

The reason to take the contraction now is that it shuts off the theft of your wealth and income that is then given to the banksters.  Either way the contraction will come because it mathematically must.  But only through the jackboot of government and Fed intervention can you be forced to cover the banksters' bad bets by having your purchasing power stolen.

The issue before us is simply whether those who intentionally made bad loans and bad bets will be forced to eat them through removing the intentional excess liquidity (which is stealing your wealth and income every single day) or whether you will be forced to cover them as well as suffering the inevitable consequences of the contraction.

Approximately $3,000 has been stolen every year for the last four years from every man, woman and child in this country through intentional deficit spending and debasement for the benefit of these banksters, yet the economy has not recovered.  We cannot recover that which was stolen but we must stop the stealing now as this theft has and continues to damage the common American every single day it continues.

Mon, 06/18/2012 - 13:40 | 2536755 The Alarmist
The Alarmist's picture

You just don't get it! Banks are where money belongs, so it is only right that every man, woman and child is stripped of assets that they are inefficiently using so that it can better used by the banksters and their political-class accomplices.

So stop your whining and get back to work, slave!

Mon, 06/18/2012 - 12:32 | 2536530 flacon
flacon's picture

After a credit induced binge... austerity is the inevitable conclusion. Or revert to a new currency and instantly devalue the debt (currency). It's not pleasant either way.

Mon, 06/18/2012 - 12:35 | 2536539 ATM
ATM's picture

A new currency is austerity.

Mon, 06/18/2012 - 13:15 | 2536683 earleflorida
earleflorida's picture

indeed, and the new labor force is an unstoppable robotic army --- equating to 1:10000 carbon base entities programming metallica thinking wonder-bots for your futures' very existence 

all for the good of mankind is this neo-quasi anomalous zeitgeist labeling the progressive movements pseudo grand-finale du`jour... so much so, as that of an admirable trumped-up task master greasing the worlds fulcrum from its zenith with the blood of its beneficiaries?  how quaint... how beguiling apotheosis

to hold ones own currency to thy fate is but a tragedy left for the immortal phoenix?

thanks tyler

Mon, 06/18/2012 - 13:29 | 2536722 Marco
Marco's picture

It depends a bit on the definition of austerity ...

Devaluation will cause a drop in consumption, so in that respect it's austere ... but austerity has become to be defined as reducing government budgets, and that won't generally happen in devaluation. At least not in budget to GDP ratio terms.

Mon, 06/18/2012 - 13:21 | 2536699 SemperFord
SemperFord's picture

Is it just me or is her voice and accent kind of hot?

Mon, 06/18/2012 - 16:53 | 2537386 Satan
Satan's picture


Mon, 06/18/2012 - 12:22 | 2536490 Turin Turambar
Turin Turambar's picture


"I do not think that word means what you think it means."

Mon, 06/18/2012 - 12:34 | 2536534 kridkrid
kridkrid's picture

I'd like to give this a shot....

Austerity = Reducing government services in order to make minimum monthly payments... monthly payments that will continue to increase as 1. basis points inch higher on existing debt and 2. new debt is added to old as the cost of maintaining aggregate debt continues to erode the productive capacity of the real economy.

Mon, 06/18/2012 - 12:44 | 2536566 mikla
mikla's picture

You keep using that word

Mon, 06/18/2012 - 12:55 | 2536613 Herd Redirectio...
Herd Redirection Committee's picture

Its all about what expenditures are reduced.  Military spending?  Can't be touched, it is a sacred cow.

Bureaucracy?  Can't be cut.  Another sacred cow.

Subsidies to large corporations?  Can't be cut, what kind of message would that send lobbyists?  That their money is wasted on politicians?  Can't have that.

The problem with austerity is who gets to decide what is cut, and what isn't.  Because the things that benefit the most people will be cut, because by definition they DON'T specifically benefit a small group of powerful, wealthy individuals!

Living within your means is good, but living within your means so that you can make debt service payments to the world's wealthiest individuals (who acquired their wealth by criminal means, + leverage + insider trading + usury) is just concentrating power even more in the hands of a few.

Mon, 06/18/2012 - 13:08 | 2536663 flacon
flacon's picture


Inigo Montoya: I hate waiting. I could give you my word as a Spaniard. 

Man in Black: No good. I've known too many Spaniards. 


Mon, 06/18/2012 - 22:55 | 2538309 A Nanny Moose
A Nanny Moose's picture

Nothing will be cut. The can will be kicked until it is full of sand, resulting in a broken which point we will become reacquainted with crawling.

Mon, 06/18/2012 - 12:23 | 2536496 toady
toady's picture

Loves me some austerity

Mon, 06/18/2012 - 12:27 | 2536502 Dr. Engali
Dr. Engali's picture

Too funny.We have been hearing that same message in the U.S since 2000 when the depression started. People are just too dumb to realize it.

Mon, 06/18/2012 - 12:31 | 2536514 Hannibal
Hannibal's picture

Hm, money is handed over to the populace, these folks spend this fiat, this fiat money is now circulating. Mission accomplished!

Mon, 06/18/2012 - 12:30 | 2536516 Byte Me
Byte Me's picture

So this is bullish for barrels?

Mon, 06/18/2012 - 13:46 | 2536776 Satan
Satan's picture

Those wooden barrels cost over 100 bucks each. I know cause my wife has our garden littered with them. At least my family won't have to go naked...

Mon, 06/18/2012 - 12:38 | 2536517 Mercury
Mercury's picture

I’m all for reacquainting people with the reality that there is no free lunch but reducing everybody to eight fingers is a little harsh.

Mon, 06/18/2012 - 13:02 | 2536644 potlatch
potlatch's picture

nice one ;)

Mon, 06/18/2012 - 14:08 | 2536859 FeralSerf
FeralSerf's picture

That brings back memories of the Hitchcock-Peter Lorre-Steve McQueen episode Man from the South.

"In this story, an elderly man named Carlos offers a boastful American boy his green Cadillac (in Alfred Hitchcock's version there is no mention of brand of car, just a "convertible") if the boy can strike his lighter ten times in a row. The catch is that if the lighter does not light ten times in a row, Carlos will cut off the man's left pinky finger. On the seventh striking of the lighter, a woman comes in the room and throws Carlos to the bed, claiming that he is mentally disturbed. He has taken forty-seven fingers from various people and has lost eleven cars--and they had to leave their country because they threatened to put Carlos away for life for this behavior. She had won everything Carlos owned long ago, including the car, and as she reaches for the car keys, the narrator sees her hand has only a thumb and one finger remaining."

Mon, 06/18/2012 - 12:32 | 2536519 Kreditanstalt
Kreditanstalt's picture

Simplistic leftist propaganda...the problem is NOT "fire, schools, police" but EXPENSIVE fires, schools, police...

It's not surprising these days to find that everyone is turning into a Keynesian socialist...

Mon, 06/18/2012 - 12:34 | 2536537 Clueless Economist
Clueless Economist's picture

When these asshat progressives bitch and moan about the fate of the poor"Police, Teachers and Firemen" who make up 2% of GOVT workers, why are the 98% of slack-jawed pencil pusher DMV types never mentioned?

Mon, 06/18/2012 - 12:47 | 2536579 Kreditanstalt
Kreditanstalt's picture

Mob rule coming up.  What do you think the masses will scream when push comes to shove...?


That's what always happens when people who are not net taxpayers are allowed to vote.

Tue, 06/19/2012 - 08:06 | 2538874 WTFx10
WTFx10's picture

Voting means nothing except to make-believe you have a say in something. It's the vote counters that decide the election and with electronic voting there can never be a mistake because computers DONT FUCK UP AND CAN NEVER BE COMPROMISED by external forces.

Oh and the Rothschild's don't control the USA either by being the primary share holders of the private FEDERAL ORGANIZED CRIMINAL RESERVE System. The INTERNATIONAL CRIMINAL BANK of SETTLEMENT World-wide CON, Fraud ,Extortion, & Assassination. It's a myth created by jew haters. Or its just a coincidence ?

Mon, 06/18/2012 - 12:47 | 2536580 Dr. No
Dr. No's picture

I never thought I would bump Krugman, but.....nice post.  I will answer if for you, DMV types make for bad politics.  By getting on a stump and screaming firemen will be layed off, politicians can get votes due to fear.  If they were to stump DMV workers will get layed off, it would be tuff to ask for a bigger budget.  As we all know, bigger budgets=promotions for bureaucrats.

Mon, 06/18/2012 - 14:03 | 2536639 Shameful
Shameful's picture

Tactics.  If cuts are threatened to services people want the unthinking mass of cattle ie the taxpayers will continue to open their wallets, bend over and take it.  It's not different then a military campaign, so strategy and tactics must be used.  It's a war fought by other means.

"We see, therefore, that war is not merely an act of policy but a true political instrument, a continuation of political intercourse carried on with other means. What remains peculiar to war is simply the peculiar nature of its means." -- Carl von Clausewitz

Mon, 06/18/2012 - 16:02 | 2537222 GMadScientist
GMadScientist's picture

This hat-free progressive is fine with dismantling the DEA, gutting the funding of the CIA and NSA, and eliminating the DHS.

Try again. This time with a brush that is an appropriate width for the job.


Mon, 06/18/2012 - 22:21 | 2538203 Totentänzerlied
Totentänzerlied's picture

how about the DoE, EPA, entire military, DoT, and every other department, bureau, and agency, every last one?

Mon, 06/18/2012 - 22:58 | 2538324 A Nanny Moose
A Nanny Moose's picture

I like to remind them that they paid for the police to pepper spray, arrest, and otherwise assault their OWS pals.

Mon, 06/18/2012 - 12:40 | 2536555 lasvegaspersona
lasvegaspersona's picture


Have you read Porter Stansberry's comments on the role of KA in the great depression and the furute role of its offshoot Unicredit?

anyway a historically interesting handle...

Mon, 06/18/2012 - 12:42 | 2536563 HelluvaEngineer
HelluvaEngineer's picture

Fulton County is building a new high school close to my house.  It's the size of a small university, and is all brick.  The gynmasium looks like you could fit a football field in it.  Meanwhile, there are a couple of old schools in the area that have been completely abandoned - not even moth-balled.  The steel supports on the outside are starting to rust.

Nothing but the best for the chil'ren.

Mon, 06/18/2012 - 12:49 | 2536591 New_Meat
New_Meat's picture

Swellesley, MA new HS was $200MM.  Home of David McCullough, Jr. of the "you're not special" commencement speach.

- Ned

Mon, 06/18/2012 - 12:58 | 2536620 TJ00
TJ00's picture

Nothing but the best for the builders who bribe, I mean make political contributions to, the politicians. FTFY

Mon, 06/18/2012 - 13:06 | 2536659 potlatch
potlatch's picture

I suggest returning back to the cities and finding a good, solid housing stock area, and just get real.


The suburbs are the great bubble.  Deflate them.  They are all sick dreamscapes for narcissistic boomers and their deluded kids.


In the city, we know real.

Mon, 06/18/2012 - 14:00 | 2536834 James-Morrison
James-Morrison's picture

Austerity: I walk away from mortgage, I lose a house, you lose a cash flow - but keep the house.

Austerity: I get bailed out: I keep my house, you keep your cash flow.

Mon, 06/18/2012 - 16:06 | 2537235 GMadScientist
GMadScientist's picture

In the city, most people can't fix their own toilet.

Mon, 06/18/2012 - 16:52 | 2537388 potlatch
potlatch's picture

at least we don't take that as a sign we should take out a home equity loan.  we just deal with a bad shitter.

Mon, 06/18/2012 - 13:17 | 2536687 Whoa Dammit
Whoa Dammit's picture


I live in Fulton County too. I am always shocked when I see the local TV news video of the latest student melee, not because of what happened in the school, but because the schools are now nicer and bigger than shopping malls. Then the school board whines that it has no money.

Mon, 06/18/2012 - 23:10 | 2538357 A Nanny Moose
A Nanny Moose's picture

You should get a load of my local JC. The Commie College District, comprised of 3 CC's is cutting classes, but they seem to have money for a new wing projected to cost $35M, which ended up costing $46M. A nicer campus than either of the two local universities (one private, the other brand new Cal State.)

What ever happened to sitting outside next a marble pillars, and a bird bath (read: public fountain) and simply asking questions in search of truth?

Mon, 06/18/2012 - 12:46 | 2536574 tmosley
tmosley's picture

That is often of secondary concern.  Look to the administration and bureaucracy for places to cut.  Those are dead weight, and generally the last things to get cut IE they never get cut.

Mon, 06/18/2012 - 17:42 | 2537542 Rearranging Dec...
Rearranging Deckchairs's picture

I agree with Kreditanstalt. We could probably afford most of it if they didn't have bloated pensions with ridiculous assumptions. The following makes me kind of mad.

Mon, 06/18/2012 - 12:30 | 2536520 Bicycle Repairman
Bicycle Repairman's picture

Teeney tiny countries like Latvia and Iceland can do this and then become "free riders".  Large countries cannot.  If you want a piece of the Latvia/Iceland success story, move there.

Mon, 06/18/2012 - 12:37 | 2536548 optimator
optimator's picture

Move there and one of those beautiful blonds........................will do you in.

Mon, 06/18/2012 - 12:30 | 2536521 narnia
narnia's picture

Getting rid of public education, the department of homeland security, public fire protection, the EPA, the DoE, the FDA, the Department of AG, HUD, the CIA, the IRS, 80% of the military industrial complex & 90% reductions in federal, state & local employees & the stupid laws that justify their existence would not be austerity- it would be liberating.

Mon, 06/18/2012 - 12:46 | 2536575 lasvegaspersona
lasvegaspersona's picture


I suspect that the spending on all these 'urgently needed utilities' is part of the wad of glue and gum that is holding the economy together. Both parties made it obvious that there would/(could?) be not cuts to anything even though we borrow 45% of what we spend. I know Congress is not made of geniuses but they simply can't be as greedy or stupid as this kind of defecit spending would seem to make them. There is likely a level below which it all comes crashing quickly and we are near that level....I'm thinkin'

Mon, 06/18/2012 - 13:01 | 2536636 narnia
narnia's picture

the Executive branch is engaged in GDP management- both with spending and reporting- which doesn't mean a whole lot when you kick the tires. Congress is out campaigning.

People still believe in the $.  That's the only thing keeping the death star together.

Mon, 06/18/2012 - 12:55 | 2536610 DanDaley
DanDaley's picture

They have a different solution: they're going to get rid of you!  

Mon, 06/18/2012 - 23:12 | 2538362 A Nanny Moose
A Nanny Moose's picture

That would be rather myopic. Who the fuck is going to pay for their salaries?

Mon, 06/18/2012 - 13:03 | 2536629 rwe2late
rwe2late's picture


 Your comment mixes the completely true with the completely mistaken.

Public education should not be abolished. Nor should public fire protection. Neither should be available only to those who can directly pay for them.

Can't tell whether you also want to abolish any law protecting the quality of the  environment, food, and drugs, and any means of enforcement, because it would be "liberating". If you do advocate such, that would also be a mistake.

Otherwise, most of your other recommendations make some sense.

Mon, 06/18/2012 - 13:26 | 2536714 Zymurguy
Zymurguy's picture

Shit, let's just start with eliminating the billions we hand out to foreign nations.  Many of these cry for our protection, accept billions in dollars each year and crap on us whenever they get the chance.

Mon, 06/18/2012 - 13:31 | 2536730 prole
prole's picture

Complete separation of Church/Education and state would be a great start.

"Public Fire Protection" Socialized Fire depts, could easily be defunded yesterday to great effect. Let the departments keep the engines they are already paid for, and let the local men and women man the beasts as real volunteers. If any locality were unwilling to man/fund their own fire dept, then good, let's see how that works!

As for the .gov and food and drugs, looks like they are acting as supremely evil agents. (Your job probably) Funding/empowering and granting monopolies to the likes of Monsatan and whoever makes Ritalin, while conducting SWAT raids on small and organic farmers (anyone with the effrontery to produce healthy food, as opposed to GMO poison of Monsatan etc)

You have basically got Stalin in charge already, all that is left is to fire up the Gulags, and start starving Millions of Ukrainian Kulaks. Naturally you will be cheering this Comrade? It will be great as long as you are Commandante of the Gulag. For the prisoners, not so great

The Entire Police state should be shut down. They consider us nothing but a rabble of untermensch in desperate need of the application of a nitestick. Put them in the private sector and let them work for pay or starve. Put an end to their/your stealing.

Mon, 06/18/2012 - 16:52 | 2537360 rwe2late
rwe2late's picture

 You and others  basically contend that the only substitute for bad government is to have no government. The implicit assumption in your argument is that all government, any government, is evil and equally so. With that I disagree.

Your  black and white anarchist belief evidently also impels you

to falsely allege that anyone who does not agree with your anarchist beliefs

must be a supporter of our (USA) most corrupt and dastardly present government.

Mon, 06/18/2012 - 22:53 | 2538305 prole
prole's picture

No big deal, but you just told a complete lie, which makes you a TOTAL LIAR.

Pinning your straw man on me. No Problemo Comrade! I would be most happy if our corrupt and murderous government stopped murdering 13 year old boys and mothers with newborn babies. If they stopped doing that today I would be most pleased indeed! (Too late for Vicky and Sammy Weaver though)

If they stopped stealing farms from hosts of mini-rock venues, I would be most pleased indeed sir! In fact, why don't you stop the killing yourself and make me happy? I assume you have several .gov issued firearms and a badge and a license to kill (me). What do you intend to do with the millions of rounds of .40 cal BTW?

So if you have a wretched horrid .gov yeah-- as your straw man says, no gov at all is much better than that indeed, but a good .gov like Switzerland is the most preferred outcome of all. So if you are searching for anarchists to hate and demonize look elsewhere, I am a pro-government stooge (if the .gov is helpful and protects its citizens' Liberty like Switzerland)

So get to work with your next series of lies Comrade!

Tue, 06/19/2012 - 09:28 | 2539100 rwe2late
rwe2late's picture


My remarks addressed the question of whether there should be public education, fire protection, food and drug inspection.,

NOT whether the present US gov’t was doing a good job of promoting the general welfare.

You continue to conflate the two.

After stating there should be complete separation of “Education and state”, and no public fire service (and insinuating those who can’t do without it should burn), bad-mouthing US FDA controls (again conflating the specific US example with the general), you state

“The Entire Police state should be shut down“ and put in the “private sector“ (not replaced or reorganized to a better government).

Objectively, those stated beliefs are “anarchist“.

Now, VERY inconsistently with your previous remarks, you state your preferred option is to have a government like Switzerland, and therefore your comments do not support anarchism!

Lastly, you continue to prove with your baseless ad hominems that:

Your black and white anarchist belief evidently also impels you

to falsely allege that anyone who does not agree with your anarchist beliefs

must be a supporter of our (USA) most corrupt and dastardly present government.

Tue, 06/19/2012 - 18:54 | 2541105 narnia
narnia's picture

The person doing the assuming is you.  Your assumption is that politicians and government employees providing or prohibiting products and services provides a better & more cost effective result than the government not engaging in those scopes at all.  You are going to get choke slammed trying to get over that hurdle for anything I've listed.

Mon, 06/18/2012 - 23:13 | 2538370 A Nanny Moose
A Nanny Moose's picture

Nobody should be forced to pay for such "services."

Mon, 06/18/2012 - 16:54 | 2537391 potlatch
potlatch's picture

you can always tell the people who live out in the sticks.  they think zero governemtn is heaven.  dude, let me drop you off anywhere within 20 miles of where I live, and yout alk that stuff.  you are crazy.

Mon, 06/18/2012 - 22:24 | 2538213 Totentänzerlied
Totentänzerlied's picture

Yeah I hear Rothbard was quite the hillbilly.

Mon, 06/18/2012 - 12:38 | 2536523 BlueStreet
BlueStreet's picture

So I guess the alternative is kicking the can.  That's even funnier than austerity.  Or maybe we can grow our way out of this mess while still maintaining the bloated status quo.  That's even funnier yet.  





Mon, 06/18/2012 - 12:47 | 2536576 Eugene9876
Eugene9876's picture

Don't kick the can - wear a barrel!  What a slogan for success.

Mon, 06/18/2012 - 12:34 | 2536532 Greg's Liver
Greg's Liver's picture

That my why you marry a fresh 24 year old.

Mon, 06/18/2012 - 12:33 | 2536533 vegas
vegas's picture

"Rise 5.5% above crater" - fucking hilarious. If only Borat were running Europe.

Mon, 06/18/2012 - 12:35 | 2536538 francis_sawyer
francis_sawyer's picture


Mon, 06/18/2012 - 12:36 | 2536545 Eurodollar
Eurodollar's picture

My woman is latvian and I would never have gotten her if it wasnt for all this austerity sending her abroad :)

Mon, 06/18/2012 - 14:30 | 2536927 Killtruck
Killtruck's picture

I wish it would send me a broad.

Mon, 06/18/2012 - 12:48 | 2536589 Martin Silenus
Martin Silenus's picture

FEMA camp suicide rate up only 28.2%.  Success!!

Mon, 06/18/2012 - 13:43 | 2536766 The Alarmist
The Alarmist's picture

Well, suicide tends to very effective when it is done with two to the head.

Mon, 06/18/2012 - 12:51 | 2536594 Cult_of_Reason
Cult_of_Reason's picture

Typical left wing propaganda crap designed to divert and take the attention away from the truth.

Mon, 06/18/2012 - 12:58 | 2536621 Shameful
Shameful's picture

Boom bust cycle.  Maybe we should talk about the credit fueled boom that was unsustainable, for some reason people think the boom should be never ending.  As for the shrinking population, yeah, ever since collapse of the USSR.  Big part of that is Russians leaving, as Latvia has a huge Russian minority.  As to the ethnic Latvians, they can make more money in UK/Ireland/etc.  It's pretty standard in eastern Europe for the youth to move to the west for opportunity and has been going on for years.  Why isn't there an uproar about the Poles going to Germany and UK?  It's the same reason people leave their homeland to come to the US.  Maybe Mexico isn't using enough stimulus?

If someone can explain to me how Latvia can deficit spend it's way to prosperity when it already had to go to the IMF for a loan, I'd love to hear it.

Mon, 06/18/2012 - 13:46 | 2536758 Marco
Marco's picture

The alternative for Latvia was devaluation ... they chose austerity (or in newspeak "internal devaluation").

Mon, 06/18/2012 - 14:08 | 2536868 Shameful
Shameful's picture

Ah devaluation, the universal panacea!  I don't know about you but I can't wait to invest my money in a place that routinely devastates their currency.

Currency devaluations are dishonest, and for some reason investors and capital flee places where this happens.  It's hardly good for the common people either, in fact I cannot think of a single example where the common man has benefited.

Mon, 06/18/2012 - 14:48 | 2536985 Marco
Marco's picture

Meh, a country with high unemployment needs foreign customers for their exports far more than foreign investment.

It's not a panacea, but it's sometimes part of the optimal solution.

Mon, 06/18/2012 - 15:37 | 2537133 Cugel
Cugel's picture

Want to export? Cut wages. It's the same poverty either way, and you don't destroy people's savings.

Mon, 06/18/2012 - 16:44 | 2537357 Marco
Marco's picture

Renegotiating millions of contracts takes years ... in the mean time companies will cut cost in the only way open to them, by firing people. Also since wages fall, but debt doesn't everyone starts default.

So, unemployment and defaults for years ... aka a deflationary spiral. The country might come out stronger at the end, or it might be taken over by fascists before it ever gets to that point ...

Mon, 06/18/2012 - 17:02 | 2537419 Cugel
Cugel's picture

It doesn't take years, it takes urgency. The only thing interfering with that sense of urgency is the expectation of either further bailouts or devaluation.

And paying debts with devalued money is the same thing as default. Just face it -- it's the exact same povery.

Mon, 06/18/2012 - 13:15 | 2536684 jumbo maverick
jumbo maverick's picture

Hairy Latvian wife takes pants down and uses bulging biceps to massage me. I experience 5.5percent growth. Success!

Mon, 06/18/2012 - 13:34 | 2536740 Ordalium
Ordalium's picture

If u have nothing to do, u can read this one great book, written by current Latvian Prime Minister Valdis Dombrovskis

How Latvia Came Through the Financial Crisis


Mon, 06/18/2012 - 13:40 | 2536757 Observery
Observery's picture

Hi, everyone,

I am Latvian living in Latvia, male 32, from average working people family, I don't have economics background but I am actively following the developement of crisis since early days until now.  This crisis was a huge wake-up call for many Latvians!

This video is higly tendentious, giving single sided view!

1) Latvian GDP was completly virtual - made of debt fueled consumption, real estate bubble and robbing EU money transfers. Now it's over.

2) Unepmloyment?! It is ridiculous to talk about it, if You don't mention property/building bubble of several years when almost everybody who could walk and had two hands worked in construction industry - "why should I study, I can earn 2000 Eur in building" - that was Young people's motto. Bubble burst - what else could You expect then, other skill are either lost or not acquired!?

3) Talking about how bad is austerity is stupid without talking about corruption. Some expamples :

- We have most expensive bridge in the world (relatvely to size). it costed ~810 000 000 EUR!!! Credited by Deuche Bank AG.. use google translate : 

- We bailed out politicans pocket bank, where mysterious russian investors kept their money, it costed latvia 1 700 000 000 EUR! Yes, 1.7 billion!!!  


4) Why nobody today is talking baout inefficiency of goverment institutions? Combined with corruption goverment it is black hole!! I could give hundreds of ridiculouse examples.. it is just to tiresome, and I assure You this is happening until this day

So the bottom line,
Now people and business in Latvia look for every oportunity to avoid taxes, exactly because of everything mentioned above. 

Austerity is not a problem per se. If I could I would bring even MORE austerity!


Mon, 06/18/2012 - 14:51 | 2536990 24KGOLD FOIL HAT
24KGOLD FOIL HAT's picture

Thank you for the report, Observery.  The news media in the US [everywhere outside the US too] is mainly state run.  We dont get to hear what is really going on that much. 

ZH has had some reports from Swiss, Argentina, Greece and Germany.  Now Latvia.  Keep them coming!

Tue, 06/19/2012 - 00:10 | 2538512 Real Estate Geek
Real Estate Geek's picture

+1 just for the proper use of tendentious.

Mon, 06/18/2012 - 13:41 | 2536759 Zola
Zola's picture

The only true part in this video was the fat banker pig. But Borat did not connect the dots unfortunately...

Mon, 06/18/2012 - 13:45 | 2536773 Monkeyfister
Monkeyfister's picture

Austerity is working AWESOMELY in Spain!

Spain needed austerity to lower its borrowing costs, so they promptly borrowed 100 billion more euros so that their banksters could light it on fire.

And people are surprised that this did not reduce borrowing costs?

Ummm... I honestly think they are shooting the Free Money Bazooka at exactly the wrong people. The Banksters are now falling all over themselves, making more and more crappy bets, shoving their Banks closer to failure-- demonstrating NEED, donchknow-- for more, and more Free Money to set on fire... But, it's OK-- only the poor people have to suffer, right?

Mon, 06/18/2012 - 14:33 | 2536935 Jack Burton
Jack Burton's picture

I want to live long enough to see the Banker fucks pay the price for their economic crimes. Do I believe I will see it? No.

Bankers contol politicians, politicians control police and military and central banks. So NO, none of us will live to see bankers pay the price!

Lativa? The model for Greece, Spain, Ireland, Italy etc. etc!

As the Russians might say in this case. "I wipe my ass with bankers!"

Mon, 06/18/2012 - 15:13 | 2537062 mantrid
mantrid's picture

interesting to see such a moronic piecie on ZH. perhaps anti-troika sentiment has burned some braines here and there.. suddenly, spending cuts are bad for economy! so spending itself must be good! raise the debt ceiling! employ the unemployed!

Mon, 06/18/2012 - 16:24 | 2537303 trx
trx's picture

Please, choose your words wisely, my friends! Remember theexcellent advice provided to us by the Latvian economic expert, Mr. P?teris Strauti?š, at the Latvian bank DnB NORD in April last year:

"Varying sentiments within the domestic market will not affect the export rates; however, exports can not be the only driving force of economic prosperity: domestic consumption also must display an ascending trend. Therefore, there still persists the peril that negative public sentiments may considerably impede improvement of the “objective” reality. This is why the observers of public processes should juggle, i.e. inform the general public about risks in gently and cautious manner to avoid any scary effects."


Got that? Juggle the information, no scary stuff!

(By the way, my commentary: Are People of Latvia Complete Idiots?)


Mon, 06/18/2012 - 16:24 | 2537304 vh070
vh070's picture

When things are this fucked up, austerity or more debt is not the solution.  Someone hit the Reset button already.  Wait… where is the reset button?

Mon, 06/18/2012 - 16:37 | 2537339 trx
trx's picture

Next to the anykey...

Mon, 06/18/2012 - 17:03 | 2537418 Debugas
Debugas's picture

the end result of austerity in the baltic states- emmigration to the west in search of any jobs is higher than Stalin moved by force to sibaria in the middle of the 20th century. 3rd lagerst lithuanian (by the number of lithuanians living in it) city is London

Mon, 06/18/2012 - 18:44 | 2537703 WhiteNight123129
WhiteNight123129's picture

Guys, I do not know about you, but isn´t it wonderfull to all be so successfull ?

Mon, 06/18/2012 - 19:21 | 2537768 GreatUncle
GreatUncle's picture

Bit like this is it not?

A full grown adult, cut the legs off then give them a cushion to sit on and watch the growth as they move from sitting on the floor to this cushion

Mon, 06/25/2012 - 21:38 | 2560197 rex-lacrymarum
rex-lacrymarum's picture

This is typical leftist clap-trap, to put it bluntly. Latvia had an unsustainable boom/bubble prior to its economic contraction. The current recovery by contrast is far more sustainable and reflects the actual level of wealth in the country. Mr. Fiore thinks they should have devalued and inflated themselves to 'prosperity' again one presumes. Since much of the country's real wealth was consumed in the boom, only inflation remains after all - since one can not spend what does not have. So the solution, according to Fiore, would be to re-create the same false prosperity that brought about the previous boom and bust cycle?  The guy is an economic illiterate, just like Krugpot and all the other Keynesian printers&spenders. 

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