Portugal's Tragic Cost Of "Remarkable" Troika Compliance

Tyler Durden's picture

It was all ponies and unicorns as the EU-ECB-IMF 'Troika' mission found 'no sign of reform fatigue' in their report today, noting the 'remarkable' nature of the fiscal adjustment. Perhaps they should have asked someone outside of the halls of government as this tragic story from The Guardian notes the Portuguese death rate rising as health and welfare cuts from the 'remarkable' austerity package are biting at the people hard. During February, there were 20% more deaths than normal and the cost cuts are blamed as a visit to the ER has more than doubled. There is a general strike, as we noted earlier, on Thursday as the leader of the unions notes "They are driving the country towards disaster". While the IMF believes that Portuguese debt is sustainable, most practicing market participants who do not have a gun to their head see full well the unsustainable nature of the Portuguese debt load seeing the IMF's position as "wishful thinking". There is a growing tension as Irene Pimentel notes "I worry that democracy is at stake" and on the people's apparent stoicism for now, "I think it will explode eventually, it is impossible for people to remain this passive."

At least Portuguese bonds are happy, and accept the culling of the Portuguese population at the altar of the euro, as a worthy supplication, worth at least 250 basis points.



Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
radch3vik's picture

Just wait for that death rate jump after the revolutions start.

bobola's picture

Where are the death numbers on that chart..??

BiggerInJapan's picture


For many years as a student in Portugal I told any1 that would listen that Portugal is rulled by scum and parasites and half of public services needed a real restructuring, the lousy education and tv have been structural pilars to a raise in mediocracy over the last 20 years.

Funny how the profitable public companies where sold and the not profitable stayed in taxpayers responsability.

In my opinion the republic needs another good revolution, nationalizing the banks and the industry that survived the bloodsuckers that where in power for the last 20 years and make that corrupt system in a true libertarian capitalism.

I supose at least 10 years of things well done are needed to recover 20 years of shit and that arent going too happen.

As a recent Portuguese expatriated I can avoid the slavery of living in Portugal with portuguese salaries paying ridiculous taxes and consuption taxes to pay stupid submarines and roads and briberies to our bloodsucker polititions that compete with GS in corruption of rules and Muppeting.

 I have it said MF's, you never going to see a dime of taxes from me, die in hell!!!

PS: extremly happy now with my civilized salary. Im going to ask a raise any way!

Filhos da Puta, Cabrões dum caralho, que comam merda da grande, com especial carinho para o pessoal da Alfandega de Lisboa(e provavelmente todas as outras), chulos e paneleiros já não vos tenho de ouvir todos os dias!!!

Harlequin001's picture

"I worry that democracy is at stake"

No shit. Democracy, or the right to 'vote yourself every welfare benefit on the planet at someone else's expense' is the cause.

Back to gold backing, one way or another...

Acet's picture

As a Portuguese expat myself, having lived outside Portugal for 15 years now, I second that.

It was already so before I left and from what I have heard things didn't change all that much since then.

That said, depending on where you are living, expect to find sleaziness, cronyism and high-level corruption:

I'm currently in the UK and it's not any better in that respect than in Portugal - UK politicians actually treat their constituents even more as muppets than Portuguese politicians and corruption is more of the "I'll help you now and you make sure you help me when I leave the state" kind rather than straight money payments, but the culture of strategic incompetence, reactive (rather than proactive) policy, giving taxpayers money or making laws to help your buddies and "we're all equal but some are more equal than others" is the same. In fact, at all levels - not just politics - the UK seems to suffer from the same flaws in management culture as Portugal (short-termism, greed, appearences-oriented rather than results-oriented, low on ethics).

I used to live in Holland and that is a far fairer and honest society. From what I've heard, germanic and nordic countries tend to be the cleanest.


vh070's picture

Funny that I was thinking about the consequences of poor government before coming across your post.  The moral hazard of tolerating filhos de puta in office for so many years is now going to make everyone comer merda da grande.  

Ghordius's picture

"culling of the Portuguese population at the altar of the euro" what drama

should we go back to gold backed currencies the problem of living within your means would not change, would it?

yes, the EUR is behaving like a gold standard for the internal trade of the eurozone - look and learn some valuable lessons since they cost so much human misery...

in the next twenty years all countries might somehow have to learn to spend only as much as they gather in taxes


the original article was written from a perspective of a country that has a National Health Service (free national health care - the UK) with a worry about a spike in deaths in another country with free national health care that is supposedly failing

so if you extrapolate, you would have to acknowledge some ten thousands of deaths every year in the US - because of a lack of a free national health care...

DrunkenMonkey's picture

"in the next twenty years all countries might somehow have to learn to spend only as much as they gather in taxes"

About bloody time !

Politicians have been demagoguing their citizens for way too long, time they felt the rough side of a rope around their nex.

Manthong's picture

"newspapers have begun to publish scare stories about people who claim to have been priced out of the public health service."

If you think your private health care is expensive just wait until it is all made "public".

jaffa's picture

The health system, also sometimes referred to as health care system or healthcare system is the organization of people, institutions, and resources to deliver health care services to meet the health needs of target populations. Thanks.

ms1408's picture


Portugal, along with Greece and Spain have learnt the hard way that capitalism simply does not work. We need to create a new system. A free and fair system where everybody gets the basic necessities they need like education, housing, cars and jobs. The people are rising up and will take what is rightfully theirs from the greedy industrialists who have conquered these countries by selling expensive goods and offering unsatisfactory-compensation job opportunities. The people are not taking it any longer - they are fed up with CORPORATIONS and they want their governments to do more.


Vegamma's picture

Cars are a necessity? So what kind of car and at what age must society provide this "necessity"?

Harlequin001's picture

1408, This is a spoof, has to be. No one's this fucking stupid...

Rincewind's picture

You are joking, right?

The sowjet block was highly successful and a desirable place to live, right?


lasvegaspersona's picture

a free paycheck...?!?... my motivation is slipping...I can call in sick for the first time in my life?!?...I'm feeling ill right now...Promised retirement?!?honey we are going to Vegas (well I'm already here so maybe Monaco).

Socialism is WHY these countries are in the position they are in (plus a good dose of corruption I would guess). If you think Capitalism needs fixing check out the grand and UNIVERSAL failure of socialism (or as Obama calls it 'spreading some of that wealth around'). The fundamentals of Capitalism are natural instincts and are proven to create wealth. Socialism is also a natural instinct (some penguins will steal their neighbors nest rocks if they can do so undetected). The USSR did not fail because it was evil it broke up becuase it was built on the principles you espouse. Think again..please...

Hedgetard55's picture

Troll or retard? BOTH.


Hamy/MDB,is that you?

Jake88's picture

Is this what they teach kids in school these days? Pathetic. 

Odin's picture


...while you are right in saying that many corporations today over charge their customers, you have to understand that they are only ABLE to because what we live in today is not a Free Market economy. We live in a centrally planned monetary paradigm that facilitates monopolies, and in a truly free system monopolies would eventually be forced to COMPETE and thus, lower prices... Because our banking systems are primarily designed to increase the wealth of a select few mega banks through what essentially amounts to creating value from nothing, credit and resource are slowly and indirectly sucked away from the private sector, until now we find ourselves in a market where only the established monopolies can reign free...and monopoly, whether it be in trade or money creation, never leads to a society of free individuals...

Blotsky's picture

capitalism simply does not work.

Cognitive Infiltration.


DrunkenMonkey's picture

Marxist bullshit !

Tell me you're joking .. ?

Svener's picture

Oh for crying out loud. Will this bunch ever give up? Let me know when the revolution starts, I may miss it.

Svener's picture

Oh for crying out loud. Will this bunch ever give up? Let me know when the revolution starts, I may miss it.

LongSoupLine's picture



Poor Portugal.  If only they had Dudley...and iPads.  Heck, then they could eat and stay warm.

Acet's picture

Portugal has the most hours of sun per year in the whole of Europe: no need for iPads to stay warm.


Bill D. Cat's picture

You meant visit to the EU , right ?

johnQpublic's picture

"I think it will explode eventually, it is impossible for people to remain this passive




do they get dancing with the stars there?

slaughterer's picture

Portugal has something far better than "Dancing with the Stars"  They have the Fado!

lmm166's picture

I rember listening to her music as a young boy in the early 70's in the Azores.

putbuyer's picture

I'm from Aveiro and she is amazing. Strike in Portugal on 3/22. José Manuel Barroso will see the noose when the Portuguese people wake up and realize that he has sold them down the river, for 30 pieces of silver.

lmm166's picture

Fitting music...for the condition the country is in.


Caviar Emptor's picture

Currently, people have a need to deny the depression. But that will change

k. pablo's picture

Approve this bailout or this Portuguese dies.

pies_lancuchowy's picture

with all respect Tyler, but the 'leader of the Unions' is the first person to be shot, not to be quoted

Dr. Engali's picture

Can't I be Greek instead? I like cooking with olive oil and eating gyros.

Acet's picture

You cook with olive oil in Portugal too - all Meditarranean nations use it.

That said, if you're ever down there, try "Cozido" or "Caldeirada" if you like fish.

JPM Hater001's picture

We are Siamese if you please
We are Siamese if you don't please
We are from a residence of Siam
There is no finer cat than I am

Ceteris paribus's picture

You are all missing the point the Portugese like been treated this way if they did not they would of done somthing about it ,so just sit back and whatch them die its fun. Dont forget it is coming to a city near you. 7 billion people been fucked by about 10,000 idiots in power , the human race gets what it deserves.

Jendrzejczyk's picture

US citizenism has spread to docile Portugal. A round of wolf-nipple chips for every blobberupper.

JPM Hater001's picture

Do you every wonder if the Chinese Troll's dont sit back once and a while and think...This shit is some fuck you up shit.

Matt's picture

+1 Amazing impersonation! Totally Dead on.

gwar5's picture

"Reform" is just a retro-euphemism for takeover.

Healthcare reform, banking reform,... the old school commies had lots of "reforms" and even built reform schools they called re-education camps.

kalasend's picture

I'm confused. Isn't ZH all for gov spending cut?

Cursive's picture


Speaking for myself, I'm for a return to freedom from financial tyranny of central planners. Banks are part and parcel of that tyranny.

Jake88's picture

Seems we have a banker trolling here voting you down.  Off with his head.

TMT's picture

I would say yes because ZH knows the consequences of debt and central planning.  But ZH often shows these stories as a prelude of what's coming here (and everywhere) and the human cost to the banker's fiat party.  I wouldn't say ZH is against austerity, but rather Greece et al should tell their paymasters to fuck off, default, then get on with life.  Much better for the citizens.

My take - what's going on in Portugal, Greece, etc. is a result of bloated, corrupt governments who try to spend their way to prosperity.  Sorry folks, you voted for these clowns, and now you pay the price.  It's always hard to get off the government needle.  I feel sorry for them, but fuck, what did they think the outcome would be.

GCT's picture

And TMT where else do you find it?  Defeinitely not in the main stream media.  Someone has to report it.   I read more foreign papaers then USA ones now.  All they want to talk about here is murder and mayham.  Talk about racism this and racism that.  Best of all the Repub primay zoo.  Wait the new iPad goodie goodie.

Besides where else can a person come to a site and get some great entertainment with some of the commenters posts.