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Friday Night Tape Bomb: Spain Hikes Budget Deficit From 8.5% to 8.9%

Tyler Durden's picture


Just when we though that nobody would take advantage of the cover provided by the epic flame out of the FaceBomb IPO and the ongoing market crash, here comes Spain. Because there is nothing quite like a little Friday night action following a market drubbing and an "IPO for the people" shock in which to sneak the news that, oops, sorry, we were lying about all that austerity. Because while it came as a surprise to the market back in December when Spain announced it would post a 2011 budget deficit of 8.5% instead of the previously promised 6%, the market will hardly be impressed that Spain actually overspent by another €4.2 billion, to a brand new total of €95.5 billion of 8.9% of GDP. So Monday now has two things to look forward to: the Spanish bond margin hike on one hand courtesy of LCH.Clearnet earlier, and the fact that despite spending even more than expected, GDP growth has disappointed and the country is now officially in a double dip. Hardly what the country with the record wide CDS needs right now.

From Reuters:

Spain was forced to revise its 2011 budget deficit upwards on Friday, after three of the country's regions restated their own figures, exposing the struggle the autonomous communities have had curbing spending even ahead of deeper cuts this year.


Spain said its 2011 public deficit now came in at 8.9 percent of gross domestic product, up from the 8.5 percent initially stated. The country had already widely overshot its deficit target of 6 percent for last year.


The country's treasury department, which disclosed the new figure late on Friday, said Spain was sticking by its 2012 budget deficit target of 5.3 percent of GDP, despite the setback with last year's numbers.


The move came after three of Spain's 17 regions - Madrid, Valencia together with Castilla and Leon - earlier revealed in their budget plans for this year that their own 2011 budget deficits were higher than initially stated.


The central region of Madrid said it finished 2011 with a deficit of 2.2 of gross domestic product, rather than the 1.13 percent it had initially released. Valencia's budget deficit came in at 4.5 percent at the end of 2011, instead of 3.78 percent.


Castilla and Leon's deficit was also slightly higher than previously stated.


The three regions are among the most important in Spain - Madrid is the second largest by GDP, and Valencia the fourth.


Though the autonomous communities have already struggled to rein in spending, deeper cuts now loom, after the central government on Thursday approved their plans to cut spending by 13 billion euros ($16.54 billion) and increase revenue by 5 billion euros.


Of the 17 highly-devolved regions, only Asturias, in the north-west of Spain, had its budget rejected, meaning it will have to present a new one for approval.


The communities' commitment to savings this year will be crucial for Spain to get its overall budget on track.


Fitch said on Friday the government's approval of the regions' budget plans was positive, adding that the willingness of autonomous regions to pass structural reform had increased, but warned there was still a risk they could yet miss 2012 targets.


"We ... expect the central government to put considerable pressure on the regions to cooperate," the rating agency said. "Nevertheless, in the current economic context we consider that there is a risk that potential reforms might have a limited impact on 2012 accounts."

In other words, more rating agencies, downgrades, which as we explained a month ago means that if all rating agencies have Spain at BBB+ or below, the ECB will demand another 5% collateral for bonds posted as repo. Add that to the toxic spiral of LCH bond margin hikes, and things start to look rather bleak.

But saving the best for last:

The change comes as Spain is racing to restore confidence in its banks
and reassure investors spooked by euro zone fears that it can meet
ambitious spending targets.



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Fri, 05/18/2012 - 18:15 | 2442104 phungus_mungus
phungus_mungus's picture


Fri, 05/18/2012 - 19:15 | 2442262 Soul Train
Soul Train's picture

but, but, but, - maybe Facebook can save us.

Will Suckers load up on on FB next week?

Fri, 05/18/2012 - 22:27 | 2442676 fourchan
fourchan's picture

oh damn, lol im glad i got even shorter on this toasted crack credit addicted market today.

i cant wait until monday for the next stab southbound.

Fri, 05/18/2012 - 18:19 | 2442106 tallen
tallen's picture

Maybe 2012 will be the year the world ends afterall, the financial world. About time too.

Get your shorts ready! It's time to go diving.

Fri, 05/18/2012 - 19:06 | 2442242 Dr. Engali
Dr. Engali's picture

If things move too fast the profits from your shorts might get Corzined.

Fri, 05/18/2012 - 20:44 | 2442475 Elwood P Suggins
Elwood P Suggins's picture

Get your shorts ready! It's time to go diving.


Dumpster diving?



Fri, 05/18/2012 - 18:17 | 2442107 Global Hunter
Global Hunter's picture

I was reading right here on ZH earlier that 200mm squids withdrawn from Santander PLC UK banks today, but wait the UK bank is seperate from the Spanish Santander Bank so at least they got that going for them.  

Fri, 05/18/2012 - 21:09 | 2442527 Winston Churchill
Winston Churchill's picture

If those assetss haven't been corzined,or re-re-re-re hypoed.

There is NOTHING a banker will not do to keep their power.

Fri, 05/18/2012 - 18:17 | 2442109 midgetrannyporn
midgetrannyporn's picture

50% unemployment among Spain's youth but the bankers want austerity. Sick mofos.

Fri, 05/18/2012 - 18:23 | 2442125 Zero Govt
Zero Govt's picture

We need austerity ...a complete roll-back of Govt because those suckers are precisely why there's unemployment

Govt does not create employment, it destroys it by taxing (thieving) the productive capital out of the private sector

what part don't you understand mate?

Fri, 05/18/2012 - 18:52 | 2442207 greensnacks
greensnacks's picture

"Govt does not create employment, it destroys it by taxing (thieving) the productive capital out of the private sector"

I guess Boeing, Lockheed, General Dynamics, Northrop Grumman, Textron or Raytheon doesn't count.

Fri, 05/18/2012 - 20:01 | 2442375 Dr. No
Dr. No's picture

The gov had to steal that money from someone to redistribute to Boeing, GD, NG, ext.  If I could have kept my money I would have spent it on something else.  They didnt create jobs.  They stole money from me to redistribute.  Boeing etal are suckling at the teat.

Sat, 05/19/2012 - 00:55 | 2442823 greensnacks
greensnacks's picture

Taxes create jobs in the private sector - that was the point. It's too bad you don't get to decide how your money is spent, but I'm pretty sure commercial aviation would be non-existent and there wouldn't be this internet those kids are talking about. Smartphones? what futuristic picture film did you see that on?

Sat, 05/19/2012 - 17:28 | 2443772 mjk0259
mjk0259's picture

1930's? Almost no tax. Not many jobs either. Most econ's agree massive govt spending for the war turned the economy around. Otherwise, we would have been Marxist.

Fri, 05/18/2012 - 20:05 | 2442394 Turin Turambar
Turin Turambar's picture

Hey Einstein, at least defense spending is authorized in the Constitution.  None of the other cradle to grave crap is.

Fri, 05/18/2012 - 21:48 | 2442601 LeBalance
LeBalance's picture

standing armies are more dangerous than....

Fri, 05/18/2012 - 20:58 | 2442506 decon
decon's picture

"...what government gives it must first take away..."

John Coleman

Fri, 05/18/2012 - 22:35 | 2442686 hedgehog9999
hedgehog9999's picture

I 'm sorry but the proper technical name is Robernment which is what all these buffons around the world are, from Europe to the Americas to Asia whereas Africans have been doing that as well as they were liberated from their colonizing robernments in Europe...




Fri, 05/18/2012 - 19:15 | 2442255 midgetrannyporn
midgetrannyporn's picture

Bullshit. Without social programs the 1% would own it all and everyone else would starve to death. Even you suckle at the gubbermint teat. There's no way in hell you don't. YOU GOD DAMNED SOCIALIST!

Fri, 05/18/2012 - 20:58 | 2442502 smb12321
smb12321's picture

Get some help with anger management issues.  I can understand getting a little heated but venting like a madman over a casual comment in a damn blog is a little too much.  Calm down, get a drink and take in a movie.

Fri, 05/18/2012 - 19:45 | 2442331 boogerbently
boogerbently's picture


We think the rest of the world needs "austerity", but we need more spending!

Fri, 05/18/2012 - 20:54 | 2442492 Joe The Plumber
Joe The Plumber's picture


If the rest of the world accepts austerity we can continue to have a deficit without tears

As the only source of marginal demand and marginal credit expansion we become the liquidity providers in a deflationary world

Fri, 05/18/2012 - 20:39 | 2442468 disabledvet
disabledvet's picture

You need SOUND MONEY. In the USA when we had a gold standard and we went to war against Spain in Cuba and the Phillipines "it cost the American people a telephone tax." Now look how government responds! "DIE, GREECE, DIE!" Ridiculous. "this is not an austerity you can win." Get RID of the money printers at the ECB! YOUR MONEY IS IN GERMANY NOW!

Sat, 05/19/2012 - 02:39 | 2442874 CrashisOptimistic
CrashisOptimistic's picture

All money is printed.  Whether it is stamped onto a gold coin or onto paper doesn't really matter.  It's just a human invention.  Its value is entirely perceived and does not exist in nature.

That being said, "printing" is not evil.  All of it is printed.  Excessive printing is where there is a problem, and as mortgages default and cause a disappearance of assets from the "system" ( or if you don't want to think that mortgages are an asset then think of it as collapsed real estate value as the lost asset), it's credible to suggest that printing is replacing money, not adding to it.

That's why no hyperinflation.  It's not adding money.  It's replacing it.

Sat, 05/19/2012 - 12:38 | 2443334 James_Cole
James_Cole's picture

Nice to see a sane comment on here!

Fri, 05/18/2012 - 20:43 | 2442473 q99x2
q99x2's picture

The "mate" part.

Fri, 05/18/2012 - 21:07 | 2442522 smb12321
smb12321's picture

You are so right.   The State can dole out salaries but it cannot create wealth (because the money it spends is either borrowed or taken from someone).   It can redistribute monies but it cannot create prosperity (because prosperity is not the same as buying things with money stolen from future generations). Austerity is now THE issue for the Left but not for the reasons stated.  It is opposed so rabidly because it directly weakens the State.

A regime with less money is also less powerful.

Fri, 05/18/2012 - 22:16 | 2442664 mjk0259
mjk0259's picture

Suppose the state taxes all income at 1% and uses the money to pay doctors to provide basic medical care for low income people that could not otherwise pay for it. Citizens overall are more healthy, more productive. Does that not create wealth? It seems to in lots of countries.

Fri, 05/18/2012 - 22:19 | 2442666 mjk0259
mjk0259's picture

Internet? Interstate highways? Satellites? GPS?

Does not the state create wealth when it standardizes things like electical power distribution, telephony, food processing, etc.

Fri, 05/18/2012 - 21:08 | 2442524 oldman
oldman's picture

@zero govt

We sat at the table together

We had a wonderful meal

We had coffee and the chocolate cake covered with vanilla ice cream

We laughed

We sang

And now here is the waiter with the check

But none of us want to pay

What to do?

Oh my, What to do?

I agree with you, of course, but the meal and the times we had were worth something

Were they not????

Have another cup of tea, Zero?                      om

Fri, 05/18/2012 - 21:57 | 2442620 Joe The Plumber
Joe The Plumber's picture

So why do I have to pay for all our fun? Why do some of you have so many excuses why it is unfair if I dont pay for all of your fun?

Sat, 05/19/2012 - 05:38 | 2442932 zippy_uk
zippy_uk's picture

Well - the meal has been had, so taxes (and spending cuts) have to be had to pay for it.

My questions are:

1. Would it not have been cheaper to go to McDonalds ?

2. Did I even get a share of the meal in the first place ?

3. Did anyone ask me a) If I wanted the meal in the first place b) What I actually wanted or c) If I could actually afford it ?

I object to having my future income taken off me without my permission for something I probably did not even benefit from. My future income can now not do it part in proping up the real economy in the future.

I think this is ZeroGovt.s point

Sat, 05/19/2012 - 15:38 | 2443602 oldman
oldman's picture


A green from the oldman because that was my first question, also.

My response to the rest is that since you still are living 'among them'----you don't get a choice, just a vote.

If you live out here with some of us who didn't want be a part of that 'system' of managing human behavior---you have truly made YOUR choice without having voted and are a do-nothing dude by default.

Welcome to the club, zippy!!!

Just remember that being free is a heavy responsibility that only 'the one' can carry.

But then, this really is all about 'the one', after all------(no one will understand this comment as I intend it)

this oldman did not wait to be asked                       om

Fri, 05/18/2012 - 20:54 | 2442493 smb12321
smb12321's picture

First, how will building more debt aid those unemployed youth?  Second, Eur has been pulling a California - increasing budgets annually despite mounting deficits. Real cuts occurred in a few states in the last couple of years but this was coupled with large tax increases.  "Austerity" is only a problem in Europe because the State has evolved into the major player in the economy with greater and greater percentages getting state help in some way or another. If it was limited in scope, austerity would never be an issue.   

Fri, 05/18/2012 - 18:18 | 2442111 Global Hunter
Global Hunter's picture

Jesus I'm going to be on edge all weekend somebody in power may blink and chose the nuclear option

Fri, 05/18/2012 - 19:31 | 2442303 Paul Atreides
Paul Atreides's picture

I could picture Nerobama hitting the 'BIG' red button if the people turned on him. He is the kind of psycopth that would risk total annihilation of the earth just to keep him and his banker buddies in power. You can see it in his marxist Kenyan eyes.

Fri, 05/18/2012 - 19:05 | 2442112 carbonmutant
carbonmutant's picture

They've been taking lessons from the Greeks...

These two are going to sign a trade deal with each other... once they're out

Fri, 05/18/2012 - 19:12 | 2442254 greensnacks
greensnacks's picture

Jerry Brown issued the same press release.

Fri, 05/18/2012 - 18:19 | 2442113 Zero Govt
Zero Govt's picture


chuckle.. and we have Fadebook.. how about Flopbook ...and Facedropped ...and Facefu**d better not!!

Fri, 05/18/2012 - 18:27 | 2442141 I should be working
I should be working's picture

How about; FACEPLANT...

Fri, 05/18/2012 - 20:41 | 2442470 disabledvet
disabledvet's picture

i coined that when they pulled the IPO in January. I demand attribution! (I also used included i might add. Captain Picard actually...

Fri, 05/18/2012 - 18:23 | 2442129 zebra
zebra's picture

Bullish? Bearish?

well, let's ask Ben..


Fri, 05/18/2012 - 18:23 | 2442130 Bunga Bunga
Bunga Bunga's picture

Bullish, more spending. What those defcit hawks never get into their small brains is that never choke a running Ponzi.

Fri, 05/18/2012 - 18:26 | 2442136 zebra
zebra's picture

you must be a MMTer...


Fri, 05/18/2012 - 18:32 | 2442151 Bunga Bunga
Bunga Bunga's picture

Credit money is only a product of modern civilization, civilization itself has been a Ponzi scheme from the beginning.

Fri, 05/18/2012 - 20:56 | 2442495 Joe The Plumber
Joe The Plumber's picture


If it is still working dont fuck with it

Fri, 05/18/2012 - 18:25 | 2442134 zebra
zebra's picture

FarceBook is actually what they mean........


Fri, 05/18/2012 - 18:27 | 2442138 Agent P
Agent P's picture least 2012 will still be 5.3%.  Good work people!!!

Fri, 05/18/2012 - 18:32 | 2442139 kahunabear
kahunabear's picture

On another matter, anyone think this 12 down days in a row thing is a tail event of significance? Anyone's ass hanging out on this? I've never seen anything like it. Just wondering how big the bets are against it continuing.

Fri, 05/18/2012 - 21:14 | 2442534 smb12321
smb12321's picture

There is nothing mystical about it.  It's attributable to bad news here and abroad, distrust and uncertainty by the private sector of this administration and fear of future events.  It does not look good because all indicators seem to point downward.  If you must invest, hedge with puts.   I am mostly cash but in 5 days my NASDAQ puts have yielded $54,000 that more than makes up for any losses in the 30% I still have invested.

I saw on Kudlow that this was the first time it's happened in 40 years.     

Fri, 05/18/2012 - 21:18 | 2442543 Mentaliusanything
Mentaliusanything's picture


think controlled burn.

churn em and burn em baby

There was a movie that had a great line. something about ... Is it safe..Is it safe. Babe never understood the question but the pain in his head sure made him focus

Marathon Man is a watch  .....thus endeth the lesson!

Fri, 05/18/2012 - 18:27 | 2442140 gatorengineer
gatorengineer's picture

Puts a little more pressure on the G-8 to do more than endorse growth (spending)..........  Still not enough cover to print but another brick in the wall.....  Most likely we will see the ECB start buying spanish bonds.  Possibly the IMF as well.

Fri, 05/18/2012 - 18:32 | 2442152 Global Hunter
Global Hunter's picture

Does Jamie Dimon have any dry powder left, perhaps he can buy them?

Fri, 05/18/2012 - 19:03 | 2442237 Dr. Engali
Dr. Engali's picture

Jamie is busy covering his positions that are getting shot at in a bad tape. Namely his metals shorts.

Fri, 05/18/2012 - 21:16 | 2442540 smb12321
smb12321's picture

But "growth" to a European is not the same as "Growth" to an American.  To a European, say Hollande, growth means expanding the State - more borrowing, social welfare, etc.  In America, growth has an entirely different meaning.

Sat, 05/19/2012 - 12:25 | 2443299 falak pema
falak pema's picture

not in 1935-36 it didn't. Hollande is just anticipating that slide down. 

Fri, 05/18/2012 - 18:33 | 2442144 ebworthen
ebworthen's picture

So projected 6.0% morphed to 8.5% in December? 

I'll bet one FB share it becomes a 12% budget deficit by next December.

Fri, 05/18/2012 - 18:37 | 2442162 Chartist
Chartist's picture

one of the worst charts I see is the that's a double top with an ugly future.

Fri, 05/18/2012 - 18:37 | 2442166 Yen Cross
Yen Cross's picture

 ZIRP > zero profits.  That's my slogan for 2012. Thank GOD I unloaded 2 weeks ago!

  I might buy some G-8 Hopium on Sunday though. Fade the 23-38% fibi. if it looks good. i watched the " ASX200 and Heng Seng and Nikkei" get hammered last night!

  It's funny how China is the new punching bag. At least they don't have to monetize their debt!  3 TRILLION in F/X reserves...

Fri, 05/18/2012 - 18:37 | 2442168 Chartist
Chartist's picture

Let's call the Euro for what it is:  the Deutchmark part deux.

Fri, 05/18/2012 - 19:31 | 2442306 TJ00
TJ00's picture
Reichsmark part zwei FTFY
Fri, 05/18/2012 - 18:52 | 2442206 americanspirit
americanspirit's picture

If this is a three act play I would guess that we are still just past the curtain rising for the first act. It's gonna be a long evening - and no intermission. Sure hope you drained the weasel before you took your seat.

Fri, 05/18/2012 - 21:03 | 2442515 decon
decon's picture

I don't know about you but I syphoned the python.

Fri, 05/18/2012 - 21:10 | 2442530 Conrad Murray
Conrad Murray's picture

I hear that's how they make perl necklaces.

Fri, 05/18/2012 - 18:57 | 2442215 holdbuysell
holdbuysell's picture

I wonder what Zuckerberg will be buying with all those FRNs....

Fri, 05/18/2012 - 19:01 | 2442232 Dr. Engali
Dr. Engali's picture

Oh it's only 4 bips. I got a CNBC alert that facebook was up 3% after hours. Isn't that what's important ?

Fri, 05/18/2012 - 20:02 | 2442383 Yen Cross
Yen Cross's picture

You're being sarcastic?!

Fri, 05/18/2012 - 19:05 | 2442239 GeezerGeek
GeezerGeek's picture

I was at the grocery store today and discovered that my personal deficit had increased by a similar percentage.

Fri, 05/18/2012 - 19:14 | 2442260 junkyardjack
junkyardjack's picture

Spain even spend extra, Economy Y U No Recover?

Fri, 05/18/2012 - 19:47 | 2442339 boogerbently
boogerbently's picture

The "good" news is that this will prompt QE3 and another rally, that will give us all another chance to profit before getting out.

Fri, 05/18/2012 - 19:57 | 2442363 Paul Atreides
Paul Atreides's picture

Stop playing the game you're going to get burnt. Invest in physical assets until after this ponzi rigged fiat casino has imploded.

Fri, 05/18/2012 - 19:49 | 2442342 JeffB
JeffB's picture

What's the big deal? The U.S. budget deficit last year was 9.1% of GDP per the Congressional Budget Office, and the U.S. is the greatest economic superpower on earth.

(in billions)

$2,302.5 2011 revenues

$1,362.8 2011 deficit

$14,958.6 2011 GDP

deficit as a percent of GDP: 9.1%

deficit as a percent of total revenues: 59.19%

Come to think of it, I don't really see why this country is "the flight to quality" over against countries with budget problems.


Fri, 05/18/2012 - 20:39 | 2442463 JustObserving
JustObserving's picture

Can you please add the $6.6 trillion or so increase in unfunded liabilities in 2011?  Then the numbers get far more interesting.

Unfunded liabilties will grow by $6.925 trillion this year on a base of $118.9 trillion.

Fri, 05/18/2012 - 22:00 | 2442627 Joe The Plumber
Joe The Plumber's picture

Unfunded liabilities are like uncollateralized credit.

Get in the back of the line bitchez. If anything is left over we will let u know

Fri, 05/18/2012 - 23:53 | 2442789 JeffB
JeffB's picture

I would think that perhaps more than a few people who worked 40 or 50 years paying into that Ponzi system might consider that a suboptimal outcome.


Sat, 05/19/2012 - 10:56 | 2442779 JeffB
JeffB's picture

If my calculations are correct the ratio of (the deficit + increase in unfunded liabilities) to GDP would come to a little over 53% for 2011. Is that bad?


$6,600 2011 increase in unfunded liabilities for 2011 per JustObserving

+$1,363 2011 deficit per CBO

= $7,963 total deficit, funded & unfunded

÷ $14,958.6 GDP 2011

= 53.23%

As far as the deficit. I guess if we're forced to use GAAP we'd come up with something like:

$118,900,000,000,000 unfunded liabilities through 2011
+$6,925,000,000,000 2012 additional unfunded liabilities
=$125,825,000,000,000 total unfunded liabilities, May 2012

+ $15,734,000,000,000 debt per Debt Clock (U.S. Treasury)

= $141,558,696,000,000 total liabilities, official + unfunded

÷ 113,616,255  number of U.S. income tax payers Debt Clock

= $1,245,937.00 debt per U.S. income taxpayer, (funded & unfunded)


On the other hand, those unfunded liabilities are based on current mortality tables. Those could potentially change.

Then too, with new government programs like Obamacare and perhaps some sort of single payer retirement communities built and run by FEMA, they could potentially cut those unfunded costs considerably.



Fri, 05/18/2012 - 20:47 | 2442483 disabledvet
disabledvet's picture

Precisely BECAUSE bond traders have these clowns BY THE BALLS. You think the people with "name plates" are calling the shots with this much debt "and a license to print"? HAHAHAHAHAHA. "You work for the bond traders now" BITCHEZ! Now PAY FOR THAT CITY with your PHUCKING GOLD phuckers!

Fri, 05/18/2012 - 20:41 | 2442369 Landrew
Landrew's picture

I unloaded my puts today feeling a G-8 smoke and mirror was in the works. With a ramp due I will buy naked @ the money July puts on BAC, GE, Intc and Csco. There is still big market maker big dollars defending 200 day ma for now:) They just can't let go of that mark.

Fri, 05/18/2012 - 22:06 | 2442640 SmoothCoolSmoke
SmoothCoolSmoke's picture

I went to cash too, closing out TZA and SPXU ands SPY puts, except for about $5K of Spy June 130 puts.

Sombody (Fed, G8,, BO_, EU) is gonna try and pull something out of their ass Sunday night.

Sat, 05/19/2012 - 07:43 | 2442988 Ted Baker
Ted Baker's picture


Fri, 05/18/2012 - 20:49 | 2442485 q99x2
q99x2's picture

What is Spain most well known for? That's right its rain and its flies.

The Spainish. Oh I've heard of them. They are known for being very frugal and austere. Nope ain't gonna happen. Bunch of Conquistadors and Bull Fighters that's what you're dealing with there.

Fri, 05/18/2012 - 21:00 | 2442509 Yen Cross
Yen Cross's picture

 Classic " Neutonian Law" ...   Too many people on one side of the boat?   Boat tips over!

   The markets need a relief "move"...

Fri, 05/18/2012 - 21:03 | 2442516 Joe The Plumber
Joe The Plumber's picture

It is kinda funny watching those southern european peoples do what southern european peoPles do best

Spend money
Shirk work
Scam the system

I get very envious of them sometimes

Fri, 05/18/2012 - 21:38 | 2442577 oldman
oldman's picture

@Joe The------------


Life IS easy, Joe. You have good reason to be envious---all of the time; But it is truly just the climate that makes the difference-------no winter means no preparation for wnter. We do not have to work six months a year like mules because every day is the same. A couple of hours work each day here is more than enough to get the day's work done.

We are not lazy, but we don't work when there is no need to-----not having winter makes all the difference.

It took me a long time to understand this-----------but now

Life is easy                          om

Fri, 05/18/2012 - 22:01 | 2442628 FeralSerf
FeralSerf's picture

Sounds like California.

Fri, 05/18/2012 - 22:49 | 2442697 hedgehog9999
hedgehog9999's picture

Reminds me of the NY businessman that went on a fishing vacation to a tiny island in the Caribbean.....

He went out fishing for a couple of of hours with his fishing guide, then came back to the village with two big buckets of fish... Over dinner and Rum he says to the fishing guy, do you know how much money we can make if we set up a large fishing business around here by working a few extra hours a day? the fisherman puzzled says , why would I do that?

The buisnessman replies, so you can retire, spend time on the beach, go fishing when you want, spend time with family and friends, drink Rum and eat good food.

The fisherrman, even more puzzled said "I do that every day already!" no reason to work any harder!!!!!

Fri, 05/18/2012 - 21:26 | 2442553 Alexandros
Alexandros's picture

The end of the world is near.

The ten plagues of Pharaoh “have been brought upon” the USA.


World War III - The first private war in history

Those who won all battles shall lose the war

Fri, 05/18/2012 - 21:45 | 2442592 onarga74
onarga74's picture

New tourist attraction throughout Spain this summer...The Running of the Banks

Sat, 05/19/2012 - 00:06 | 2442800 JeffB
JeffB's picture

Too bad it couldn't be arranged for a special banksters running with the bulls

The Bull's Revenge


Sat, 05/19/2012 - 01:46 | 2442847 NoClueSneaker
NoClueSneaker's picture

.... burning them down after ATMs get dry even funnier ....

Sat, 05/19/2012 - 01:46 | 2442848 NoClueSneaker
NoClueSneaker's picture


Fri, 05/18/2012 - 21:49 | 2442604 Yen Cross
Yen Cross's picture

 Some Little " Mini Me" is going " Dire Straights"!  Sarah respectfully.  Read the thread.

Fri, 05/18/2012 - 23:44 | 2442773 jmc8888
jmc8888's picture

More total spent doesn't mean austerity (for the people) wasn't done.  It means on the whole more was spent.  Austerity for the people can be all sorts of things while other spending increases can be in totally different areas. 

You could ALSO have 20 percent more people needed food stamps yet they doled out 10 percent less per person (which is austerity as decreases per person, or how it effects each person singularly defines austerity) and the total amount spent goes up admist austerity. These things aren't linked like a conjoined twin.

The key is knowing WHAT the increases were on.  What we do know is that what each person was getting, was cut, thus there was austerity.   Yes the austerity could be WORSE, but hey just check out the HIV stats on Greece since they cut their medical services. Look at the prescription drug debacle there.  Spain has implemented many cuts as well. 

Lets also not forget that there are more eyes watching where there wasn't before so HOW the numbers are collected have changed, thus the numbers just on that account will be different.  There also that some countries could be 'tanking' the numbers.  Did austerity not happen if the gov't is purposefully lying about total spent? Could one part of gov't be working against another part? Sure can.

Let's give another example and we'll make it easy.  Just like here in the states we could start a war with Iran, and get rid of all unemployment benefits, all food stamps, and whole lot more, yet end up spending MORE.  Would we say austerity isn't happening?  That just wouldn't be true. 

It's not about TOTAL spent.  Education cuts, medical cuts, welfare cuts, pension cuts, fewer state jobs, lower wages, and the list goes on and on that has happened in many European nations.  Sometimes the unintended consequences kick in and cuts in one area, lead to rises in others.   Lower revenue equals bigger deficits.  Both unknown unintended consequence spending increases + lower revenue = bigger deficits if those numbers are greater than the amount cut on the people.  But the cuts still did happen, even if sometimes they could implement quite as many cuts as was 'prescribed'.

The answer to fraud isn't 'let the people die', the answer to fraud is to root it out and let the people live.  We didn't get here because Greece was lazy.  We got here because of FRAUD on a systemic level around the world, pushed on us by the elite, their bankster minions, their tools in gov't, who in collaboration with the corporations sold us down the river. 

People talk about the 'unemployed' don't deserve this or that, but where are the jobs? Don't give me that bullshit unfilled job number.  That's horse crap.  I'm sure every corporation that isn't hiring says they are 'hiring', that number is as real as the BLS number.  

If the skills aren't there, where is the training? (hint: not having training didn't use to be a deal breaker)  Now it's an excuse.  Oh we have jobs, but you need to be a 10395435 level Mage on WoW along with a thirteen inch cock with more experience than the board of directors combined with impeccable references including the Pope hand written in his blood.

Lots of people with degrees who are obviously capable of being trained, aren't.  There's also going to ALWAYS be a statistical turnover number as the economy will have jobs that haven't been filled yet or what not, yet you can't say thus every 'number' means someone could have a job.  We all live in different areas, we all can't live at the same location, or have the attributes to work at every job opening, that doesn't really exist, and no one will train you to do it.  A couple million job openings for people with 10 years experience can't realistically be filled, and of course this is before the crap hits the fan again, so don't think those numbers they give out mean anything.  One could say there is some variable number out there that we can't tell via a model, that there is going to be and yet really doesn't mean these are additional jobs.  Someone retired, but the job wasn't lost....thus that's a job opening, but not a NET one.  Thus our country is nothing more than a bunch of vacuum tube ideologues who don't know how to read numbers. We don't know how to focus on the real issues.  But it really isn't that hard.  Start with understanding the limitations of numbers, and focus on the structural issues that lead to rampant fraud.

I don't see much of a distinction between an eco fascist, a printer, or an austere minded wacko.  All three are part and parcel with bringing us to an ultimate crash and assuming control over most things.  Who controls these 'different (lol) sides'? The elite.  However you want to define that. 

Besides people are always thinking in terms of the Federal Reserve system, the monetarist system our founding fathers fought against.  We used to have a system which was PM's for currency, and credit uttered from a National Bank that didn't owe anyone for creating it.  If you utter credit for wealth creating projects, the inflation caused is minimal, while the wealth and JOBS the gov't creates by fulfilling it's duty are immense.  One could even say that when gov't uttered credit is , then the gov't is actively providing the tools for each job created and thus IS helping to create jobs that way as well.  Of course gov't creates jobs, just those that are as ideological bent as any Keynesian from the other side believes THEIR dogma, just like a Keynesian believes theirs. 

When the worst thing you have to do is keep an eye on a national bank, then the system is simple to regulate.  The monetarists have a far more complex concoction going on, and we the people aren't in control of jack shit.  To them we're dumb sheep who can't possibly control such matters, and they create everything under the sun to make that a self fulfilling prophecy of junk.

People keep viewing it like the only way to do things is to borrow from a private bank money they create out of thin air, and to tax the people to pay that back.  Even people that hate our system, still think within its confines when judging things.  It's appalling, but I guess a little understandable given how much things have been obfuscated. 

How did gov't create currency before the income tax? Were our founding fathers monetarists? Hell no they weren't.  Monetarism and ALL of its subsets are nothing more than warring ideologies within the construct of the oligarchical principle.   Keynesian is losing, so Austrian is winning the 'battle'...but all of monetarism is losing the war, and the oligarchy will pull their strings and profit off either way or both given enough time and some bad decisions.  Unless we end monetarism, they win guaranteed. 

No need for austerity or printing.  Get rid of the fraud, the broken structure, and let price discovery happen.  Then let the gov't utter the credit for wealth creating projects. Space, water, energy, infrastructure, driven by scientific progress.  (guess what people we've discovered in our grand progression from caveman still less than 1 percent of the 'science' out don't give me that crap that we science can't get us further, nor the idiocy of pseudo science, since pseudo science isn't really science.)  The physical economy and what it produces is wealth.  Precious metals are a sound medium of exchange, even if it is a gold standard fiat, and a National bank that regulates the credit to foster wealth creation is the setup that works. 

What we have is grand scale fraud, that is our problem.  We can discuss the 'behavior' aspect of it afterwards, but lets get rid of the fraud first.  That's what the issue is.  Fuck everything else.  Focus on the FRAUD as the driving force behind our efforts. 

Then over the next few decades we can all discuss how we want things set up. But it makes no sense to put the cart before the horse, when the driving force breaking everything in the world is the fraud being perpetrated upon us until every gov't, just about every business, the 99 percent, pensions, safety nets, so on and so forth are completely annihilated.  It's the fraud stupid.  It's the fraud that transpires through a fraudulent structure.  Fraud occurring within Fraud. 

OF COURSE social security looks bad, that's the fraud stupid.  OF COURSE medicare looks bad, that's the fraud stupid.  OF COURSE state and federal budgets (or spending) looks bad, that's the fraud stupid.  OF COURSE pensions, infrastructure, facilities, so on and so forth look bad numberwise, it's the FRAUD STUPID.

Fraud elimination and science driven programs are the answer.  Glass-Steagall and a return to national banking.  Then once again we'll have a chance to have our republic for as long as we can keep it. 

Private business by itself isn't wealth creation.  Only creating wealth, creates wealth.  Of which private businesses can be a tool to do that, or not.  Numbers aren't wealth.  Physical stuff is wealth.  Increasing mankinds power over the universe (think electricity compared to no electricity) is wealth.  Private businesses that run within this contstruct are GREAT allocators of wealth.  But just owning a business that sells goods made in China isn't creating wealth because you made a 'profit' in the amount of fiat you collected compared to expended during the year.  Retail stores don't create wealth.  Jersey Shore doesn't create wealth. 

Of course you'll have to throw Nerobama out first before any of this can occur. No, dumbshitt romney won't be any different, and could in fact be worse.  Pick your constitutional violation of Nerobama from one of the slips of paper out of a hat and go with it.  The hat is full and you can't go wrong with any of them. 

Brutal austerity is going on all over Europe, and yet they are STILL spending more! NO that isn't an oxymoron, it just shows how fucked up the fraud has taken us.  Even implementing austerity, can't slow down the TOTAL spending.  The two are different.  Yet the fraud has now consumed just about everything.

Quantifying behavior is just as much of a guess as any statistical model.  Focus on what's real, the fraud, not on what Sigmund Fraud thinks about the behavior of people.  You throw people under the bus to elicit a more favorable behavior.  We'll never evolve if we only prey on mankinds past baser instincts.  Man is reasonable.  Use that by focusing on the fraud and not getting ahead of ourselves, and then we can move the fuck on and tackle the next set of issues.   We're stuck in groundhog day yet are worrying about something that will never be inside of groundhog day. 


American Credit System (you know what our founding fathers ACTUALLY implemented)

Sat, 05/19/2012 - 13:17 | 2443362 JeffB
JeffB's picture

You make some excellent points, but I think you err in lumping the Austrian economists in with "the monetarists".

Their theories are at odds with each other in very important ways, and the results of an economy based upon their views are at opposite ends of the spectrum.


Mises on Money by Gary North (online - .html)

The Theory of Money and Credit by Ludwig von Mises (hard copy book or pdf)

A History of Money and Banking in the United States - Murray Rothbard (pdf)

The Austrian Theory of Money By Murray N. Rothbard (pdf)

For a discussion showing the difference between government intervention vs non-intervention in (the government induced) bust cycle see Thomas Woods, Jr.'s article

The Forgotten Depression of 1920 - by Thomas E. Woods, Jr. (online article)

Why You Never Heard of the Great Depression of 1920 - by Thomas E. Woods, Jr. (YouTube talk)

Sat, 05/19/2012 - 03:06 | 2442882 Huna
Huna's picture

Very Scary story!
What ever will happen to all those little bits of spray painted copper and paper...Whoreifica!

Sat, 05/19/2012 - 09:09 | 2443047 Joe The Plumber
Joe The Plumber's picture

Lol just wait until me and others go Galt-er than we already are. Getting tired of paying for all those free lunches for others

Black market or gray market labor is cheap
Everyone can cheat a little bit on taxes
Cash is king and also anonymous
Kick back,relax, dont work so hard

Starve the beast of every little crumb

Go Galter!! Just a little bit more each year

Sat, 05/19/2012 - 16:39 | 2443711 Snakeeyes
Snakeeyes's picture

Spain plays "The Spanish Prisoner" con on the ECB and the world.

Spain, Greece, Portugal, France and the US are the masters of "The Spanish Prisoner" con.

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