Mark Grant Explains The Farce, The Hustle, And The Scam

Tyler Durden's picture

Submitted by Mark Grant, author of Out of the Box and Onto Wall Street,

“All propaganda has to be popularand has to accommodate itself to the comprehension of the least intelligent ofthose whom it seeks to reach.”

                                                         -He that must not be named

When considering the financial condition of each and every country in the European Union there are certain facts that are left out and left out on purpose. It makes no difference if the methodology is right or wrong but what is not counted is every bit as important as what is counted. In my opinion, the structural deformity of the European Union is, in itself, one of the main reasons that any attempt at a fiscal or economic fix never seems to work. If the problem is not correctly identified then how can a solution for the problem be correctly conceived and then implemented and the answer is that it cannot. For each and every nation in Europe here is what is NOT counted as part of their sovereign debt or included in ANY debt to GDP ratios:

  • Contingent Liabilities
  • Derivatives
  • Sovereign Guaranteed Debt of any Corporation
  • Sovereign Guaranteed Bank Debt
  • Sovereign Guaranteed Regional or Local Debt
  • EU Liabilities that Accrue to each Nation
  • ECB Liabilities that Accrue to each Nation
  • Stabilization Funds Liabilities that Accrue to each Nation

Consequently the difference betweenwhat we are told are the debts of a country and what are the actual debts of acountry is the difference between night and day, light and dark, fantasy andreality. The fact that we are told time and time again that the Italian debt toGDP ratio is 120.1% changes nothing. It is an inaccurate figure, a distortionof the truth, and because it is repeated and repeated and repeated in theheadlines does not make it so. The worse problem may be that with enough repetitionthat those that manufacture the propaganda begin to believe it themselves andthen act upon the nonsense that they have so judiciously concocted. 


  • Italian Official GDP                                                      $1.900trillion



  • Admitted Sovereign Debt                                             $2.445 trillion
  • Loans to the Nation                                                    $   114 billion
  • Admitted Bank Guaranteed Debt                                   $   102 billion
  • Other Sovereign Guaranteed debt                                  $    90 billion
  • Sovereign Derivatives                                                  $   211 billion
  • Total National Debt                                                     $ 2.962 trillion



  • Italy’s Liabilities at the ECB                                         $ 500 billion
  • Italy’s cost for the EU Budget                                       $  19.3 billion
  • Italy’s Liabilities for the Stabilization Funds                    $ 103.6 billion
  • Italy’s Liabilities for the Macro Fin Ass. Fund                   $ 137.9 billion
  • Italy’s Guarantee of the EIB Debt                                  $  71 billion
  • Italy’s Total European Debt                                          $ 831.8 billion
  • Italy’s National and European Debt                                $ 3.794trillion
  • Italy’s Official Debt to GDP Ratio                                  120.1%
  • Italy’s ACTUAL Debt to GDP Ratio                                 200%


The Firewall Lie

Whether some proposed firewall is $760 billion or $1.3 Trillion or $13 Trillion makes no difference as in zero, nada, nothing and null. It is an IOU, a promise to pay and it is not counted in any European sovereign debt numbers nor is it counted in the figures for the European Union’s debt. It will not stop Spain or Portugal or Italy from asking for or needing money. It will not stop contagion nor will it protect any nation from the calamities of another nation. If approved by the Finance Ministers it is not approved by the European Parliaments and even if approved; it accomplishes nothing besides onemore unaccounted for contingent liability that is nowhere to be found on anyone’s books. This whole discussion is a head fake, a deception and a ruse carefully plotted out for investors in one more attempt to mislead the entire world. If you wish to be a statistic in the Greater Fool Theory be my guest but I refuse to be apart of this unadulterated scam.


“I woke, she fled and day brought back my night.”

                                                          -Edgar Allen Poe


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Dr. Engali's picture


"If you wish to be a statistic in the Greater Fool Theory be my guest"


There are a lot of stupid people with too much fiat who will continue to play.

Ghordius's picture

fully agree

though the article is again disingenuos - in Italy in the 70's the number were smaller though the proportion were roughly the same

and Italy is going through a very, very radical agenda to improve on several parts of the problem

make the comparison with the projections of the OECD with all the scenarios, pick the worst ones - still laughing about them...

or just make a comparison at all, period...

The Big Ching-aso's picture



It's almost like Don Corleone is running the whole thing but this time they have shitty actors.

francis_sawyer's picture

Wait until you see what they have in store for "THE PRESTIGE"...

DorseyCecil68669's picture

my friend's aunt makes $72/hr on the internet. She has been without work for six months but last month her payment was $19183 just working on the internet for a few hours. Here's the site to read more .....

vmromk's picture

The scam is Bernanke is not in Jail.

alexwest's picture

only idiot compare 'nobody knows GDP' to debt..
only legitimate ratios are: debt/GOV REVENUES, interest on debt/ GOV REVENUES

and please,, we all know Europe is totally fucked, so stop it..
and could we have same kind of analysis for 800 lbs monkey in room called USA?


I wonder if Europe is so bad why everybody wants drive MB/BMWS/Porshes.. eat/ drink French food/beverages, dress like citizen of Milan (its Italy), and spend honeymoon in Paris.. ?

is there anyhing good here in USA?

Buck Johnson's picture

It's because in most of these countries the revenue is way down but the costs of the programs and the state continue to go up. 

walküre's picture

It's becoming painfully obvious that they really don't have any solutions. The course is irreversible. Mistakes were made a few decades in the past with a ponzi depending on perpetual growth that simply doesn't happen indefinitely. What a waste of time and good energy to keep running in circles. We need to start the debate on a RESET,a JUBILEE and it needs to happen NOW. There needs to be currency reform, a massive debt reduction and a correction of liabilities. Sure, we can all pretend that printing more money will actually solve any of the problems. I cautiously propose that even Ben Bernanke has seen the light and understands that more printing is not helping the issues. I believe it when I see it.

There is too much debt and there is too much wealth. Yes, you heard that right. Too much wealth that is invested into debt driven vehicles and the debt side can no longer support the debt, let alone increase the wealth! Bottom line is going to be that that the wealthy have to take a major haircut. I'm not talking mere billions, I'm talking trillions. Their wealth has to be reduced immensely or there won't be a future for our societies.

Gringo Viejo's picture

As Henry Gondorff said to the poker players in Doyle Lonnegan's poker game...."Hell, they wouldn't have let you in here if you weren't a chump".

"The Sting"......1973

Downtoolong's picture

This whole discussion is a head fake, a deception and a ruse carefully plotted out for investors in one more attempt to mislead the entire world.

Ultimately it comes down to one relatively small group of people having the power to tell everyone else, "This is how it's going to be". They are the bully on the third grade playground doing as the wish, "because I said so".

At some point they won't even feel the need to explain or justify their behavior anymore.


ekm's picture

If one over-produces a product there are two options:

1) The product suffers price decline

2) Nobody wants the excessive product as there is too much of it

If dollars and euros are a product of the central banks, I think we are at step 2.

dataanalytics's picture

Speaking of over production, that was one of just many of the problems the Soviet economy had- obviously. I remember listening to an interview maybe 15 years or so ago with a former, what we might call a supply chain manager (not sure what his title was) who, in one region, said he had warehouses full of new tractors, but was not allowed to 'release' them to the farmers who ordered and needed them.

Although he also said that many of the 'new' tractors' had missing parts, some had no engines, etc. But he had a quota to meet. The entire system was amazingly chaotic and unorganized and unsustainable, but managed to 'hold' together for what, about 70 years?

So the Soviet's just kept stock-piling and building new warehouses to fill up. Now, I don't know exactly how truthful he was being, but I do recall reading some similar stories.

Obviously they had to keep the factories running to keep the people employed to keep the ruse going. Until it finally collapsed.

I suppose we could draw some similar parallels to our economic system here in the U.S., even though it's disguised as a mixed free-market system. I suppose it's only a matter of time before our unsustainable system collapses as well.

ekm's picture

Do not suppose at all. I lived in that system in another eastern country and it's all true.

That's exactly what's happening at municipalities and provincial employment here in Ontario, Canada. I think US states and cities would make no difference.

In communism we called it, emplyment for the sake of employment.

MinnesotaMD's picture

I'm familiar with that too. In my country, people get paid to teach nothing for 9monthx out of year, at 4 day work weeks counting vacations and holidays. Toll booth operators stay there even though we could automate, and a guy counts takeoffs and landings uselessly at O'hare airport. Welcome to Chicago USA

Schmuck Raker's picture

I had no idea Mark Grant was Norwegian.

BlandJoe24's picture

Good article, but please use spell checker before publishing.  Too many wordsrunningtogether.  Thanks.


apberusdisvet's picture


"at some point they won't even feel the need to explain or justify their behavior anymore"

We have already reached that point.  Blatant manipulation of all markets; regulators playing hide the sausage with each other; MFGlobal; Dodd/Frank; the new JOBS bill; the daily pontifications of the 535 bought and paid for; the "FU America" of Obama's E.O. and the NDAA bill.  Need I say more?

Dingleberry's picture

Between Ben, the ECB and hidden swap lines, you ain't never gonna know the real deal. That's why you have to focus on your own life, with your own prices that you are paying, etc. Official numbers are lies, statistical and/or blatant.

bluebare's picture

All propaganda…”


Hitler. Fascism. The future. Is now.  There I said it.  Should I survive this heretical act of treason alive, my only hope is that they’ll serve Fruit Loops at the FEMA internment camps.


Being owned by the scammers, the fourth estate is a totally culpable enabling party to every single facet of this scam...mark to market, green shoots, unemployment, QE, stress tests, housing stats, you know, the long list of big lies.


Yesterday, after the past few month’s relentless up every day twenty-plus-percent stock market ascent on just peachy economic news—while stock markets dipped a whole half-a-percent (which it recovered by the end of the day) for the first time in months—I saw no fewer than five toadying articles by well-paid shills for the crying babies of Wall Street pleading for more QE mother’s milk on the premise that the economy and/or market is running out of steam.  WTF!!! Today, the market is up yet another half-percent on yet more just peachy economic news (such as the announcement of yet more mother’s milk for Europe) but I don’t see a single "balanced" turnaround article in the MSM decrying the unintended consequences of unneeded QE (because things are so peachy) undermining the value of the currency and driving the stock market to dizzying and dangerously unjustified new heights.


Like anyone here needs to be reminded what’s going on.  So, chalk this up as venting of unrequited revolutionary fervor.


“The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing.” Albert Einstein


NEOSERF's picture

The market cares not about such abstract long as there is an IOU, that is good enough for me, off to buy my Mega Millions ticket with my Ponzi Security check....

chinaboy's picture

Great post.

Ignore it at your own loss.

SwingForce's picture

Mark Grant has been working his calculator furiously, and I thank him for it. This is a global criminal act of fraud, I think that's where he was headed at the end. Yes, its insulting that The Banksterz & Ploiticianz think we are stupid and believe their delusions. Great work, Mark Grant.

SwingForce's picture

As for the US, there must be some sort of way I can keep Congress from signing my name to the loan agreement on the last $5 Trillion or so of DEBT.  How can they spend the money, then pass the repayment responsibility onto the American Taxpayer?

bluebare's picture

Taxation without representation helped motivate the Revolutionary War! 

I don't think we can legally do anything about single cent of the debt we have willingly or unwillingly allowed Congress to accumulate to date.  We certainly have the absolute right and the legal means to try and stop TPTB from piling on any more.  IMHO, OWS or a similar group should lead a nationwide petition drive said petition to take the form of a declaration of intent with associated Constitutional Amendment or Act of Congress so stating that we the people of the United States morally object to fiscal policies that undermine our currency, our wages, our home values, and purchasing power; reject any further accumulation of excessive and unsustainable public debts so as to threaten national security, financial solvency and shackle our unrepresented children to a future that offers nothing grander than debt slavery, at best; reject policies that favor and subsidize the wealthy who are legally enabled by the Supreme Court of the United States to buy and sell Congressional votes at the expense of the unwealthy (and a long list of grievances and related programs this would be); and  furthermore resolves to accumulate such sufficient support and legal authority through peaceful and Constitutional means so as to irrevocably absolve those who have long-suffered intolerable indignities at the hands of those who profit from egregious high crimes and abuses of power  from any further culpability for the graft, fraud, grand larceny, counterfeiting, and money laundering, that defines the operation of a government once considered by its great people to be a public trust but now is willfully and shamefully conducted with such wanton corruption by our so-called elected representatives; repeatedly, with multiple heinous actions attributed to our good names WITHOUT OUR CONSENT, that only through an act of great courage, will power, and unity of purpose can a decent, common people possibly overcome such a deeply entrenched system of perpetual wrongdoing. And so on and so and so forth.

I will gladly be the first to sign something like that in big, bold letters.


Sorry about goin' off on ya like that. I guess I didn't get out all the fervor in the first rant. It's clear that I'm losing steam here, though. Probably be all gone any minute now.  Is it still legal to pipedream in public?