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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Aziz's picture


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

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."

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.


A Nanny Moose's picture

Now back to Moose and Squirrel

merizobeach's picture

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

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.

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.

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!

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.

ATM's picture

A new currency is austerity.

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

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.

SemperFord's picture

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

Turin Turambar's picture


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

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.

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.

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. 


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.

toady's picture

Loves me some austerity

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.

Hannibal's picture

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

Byte Me's picture

So this is bullish for barrels?

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...

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.

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."

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...

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?

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.

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 ?

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.

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

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.


Totentänzerlied's picture

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

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.

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...

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.

New_Meat's picture

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

- Ned

TJ00's picture

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

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.

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.

GMadScientist's picture

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

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.

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.

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?

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.