Presenting The Interactive "Wiggle-Room Index" Or Which Countries Will Be Forced To Bail Out The Developed World

Tyler Durden's picture

Update: literally seconds after this article was posted, we receive news that the IMF will seek Saudi contribution to the European bailout fund. There you have it - you enjoy that implicit US protection Saudi emirs? It is about to cost you.

While it is best to pray that NASA will find some very rich and not so intelligent life on Mars so it can bail out the world as it sinks deeper and deeper into a untenable debt hole (which somehow can be "filled" only by issuing more debt at least according to tenured economists at ivy league institutions), a strategy of planning for a realistic outcome may not be a bad idea. The question then is who in the world has some/any spare leverage capacity to incur even more debt and use the proceeds to fund a Eurozone-American-Chinese collapse. Enter the Economist's "wiggle-room index." The publication, best known for recently introducing the "shoe thrower index" (remember the Arab Spring and how Fed induced runaway inflation generated a "democratic" revolution across MENA?) has compiled a list of those developing world countries which still have capacity to provide credible global bailout capital (in fiat form of course - after all that is the only thing that the Ponzi understands) or as the Economist says, the "emerging economies that have the most monetary and fiscal firepower." So if you are on this list (ahem China, Indonesia and Saudi Arabia) - our condolences - you are about to be dragged into the epic slow-motion ongoing collapse of the developed world, kicking and screaming, with some 44 caliber persuasion if needed, but you will be there, before it all falls apart. The time to repay all favors to Uncle Sam is

The interactive chart is as follows:

the Economist's commentary:

IF THE euro-area debt crisis worsens, it will drag down growth in emerging economies. The good news is that whereas most developed countries have little or no room to cut interest rates or to increase public borrowing, emerging markets as a group still have lots of monetary and fiscal firepower. This chart, based on an analysis by The Economist, ranks 27 emerging economies according to their policy wiggle-room.


We used five indicators to assess each country’s ability to ease monetary policy: inflation, excess credit (the growth in bank lending minus the growth in nominal GDP), real interest rates, currency movements and current-account balances.
Each country was graded on the five indicators, and the scores were then summed to produce an overall measure of monetary manoeuvrability. Next we devised a fiscal-flexibility index, combining government debt and the budget deficit.


The average of the monetary and fiscal measures produces our overall “wiggle-room index”. Countries are coloured in the chart according to our assessment of their ability to ease policy: “green” means it is safe to let out the throttle, and “red” means the brakes need to stay on. It suggests that China, Indonesia and Saudi Arabia have the greatest capacity to use monetary and fiscal policies to support growth. Chile, Peru, Russia, Singapore and South Korea also get the green light. At the other extreme, Egypt, India and Poland have the least room for a stimulus. Argentina, Brazil, Hungary, Pakistan Turkey and Vietnam are also in the red zone.

For those who don't want to go all the way to the last step, and are more curious who will pick up just the Euro tab, between the IMF and the Eurozone, here is an analysis from Reuters showing just that. Of note is that should Germany digs its heels into the mud and say "nichts mehr", then it will be up to the IMF to rescue Europe. To the tune of 61%. Which means you, America.

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lolmao500's picture

China has 3 trillion in foreign reserve currency. They have enough money to bail out just ONE country in Europe. :)

Saudi Arabia's oil is not infinite. So they would be stupid to bailout other people.

And if I were these countries, I wouldn't accept to bailout anyone if I wouldn't get control or assets as collateral.

whatsinaname's picture

Could they please take India off that list ? People like the high interest rates which encourages real saving versus 0.25%. Plus the real estate market is already on a tear fuelled by cheap overseas carry money !!

Ahmeexnal's picture

Why does the rest of the world have to pay for the idiocy of the euro-oligarchs?
The rest of the world just voted. The veredict is in.
Message to europe: FOAD.

Manthong's picture

I wonder if they come up to ol' Muammar with "an offer youse can't refuse". (?)

Chupacabra-322's picture

Tick toc, tick toc.  The Elite's time is runing out.  Nowhere to run, nowhere to hide. 

Australian PM dragged to safety through a crowd of Aboriginal protesters after being ambushed in restaurant

Read more:

Australian Prime Minister Julia Gillard clung to her bodyguard as she was dragged to safety through a crowd of angry protesters in Canberra today.

"They got the gus, but we got the numbers" - Jim Morrison

Things that go bump's picture

She almost fell, and they would have had her.  She might have been roughed up, but I doubt they would have killed her. They aren't angry or hungry enough yet.  It looks like she had a good fright though.  I was reminded of the look of horror on Charles and Camilla's face when their limo was stopped and surrounded by rioters a year or two back.  They were en route to some posh event that was probably serving braised infant in truffle sauce.   Next time they are so careless I don't think they will be as lucky. 

Dcheeth2's picture

They were on their way to the Royal Variety Show, which raises money for disadvantaged children. 

And only Camilla was shook up, Old Charlie has had many sessions in the Kill House, the training ground of the SAS, so wasn't phased at all. 

Things that go bump's picture

I suppose the braised babies with truffle sauce were served at the after party then. 

Chupacabra-322's picture

@ Things that go bump, certainly wouldn't be out of the ordinary for these Lucerferians.

British royalty dined on human flesh

They have long been famed for their love of lavish banquets and rich recipes. But what is less well known is that the British royals also had a taste for human flesh.

A new book on medicinal cannibalism has revealed that possibly as recently as the end of the 18th century British royalty swallowed parts of the human body.

The author adds that this was not a practice reserved for monarchs but was widespread among the well-to-do in Europe.

brettd's picture

Remember that the French Revolution devolved w/in months to anarchy.

So too did Mao's "Cultural Revolution" which is now a motivating/embarrasment in Chinese pop culture...

That's not to say that it won't happen.


Buck Johnson's picture

They are trying to twist the ones that have no army and have money to bail out the West.  If they go to Saudi Arabi the country has to know that they won't get their money back.  Back during the 2007 and on crisis, it was reported that SAudi Arabi was wanting to pull a large chunk of their assets out of the UK and some out of the US.  They where threatened by both and they said that they would confiscate their assets as funding for terrorists if attempted and one comment (which is hard to believe but could have happened) is that they where threatend that they would be attacked.  It may be all false, but Saudi Arabi is the focal point of the Petrodollar.  And the US will not allow that to go challenged by anyone or any country. 

trav7777's picture

it's all just imaginary money.  Print it...won't make a difference in the end

Captain Kink's picture

Print, Print, Print = Buy, Buy, Buy!

: Bullish.  

Especially Silver

(threw that last bit in just for you, Trav)   ;-P  

ChickenTikka's picture

Seriously, anyone that thinks that a country, like India, run by politicians getting rich off of bribes will give a damn about protecting the West is on crack.  They don't even provide food or basic sanitation to the majority of their population.  The people in charge of the RBI will be eating rice and dal watching us starve and put on a bollywood movie to forget about it.

TruthInSunshine's picture

Haiti-Myanmar-North Korea-Sudan-Eritrea-Union Carpenters & Millwrights of Ontario Pension Fund

Otherwise known as The Group of 6 (G6)

You're up, bitchez. Save us from the inconvenient, moon-high tsunami of fiat debt that's been newly minted/digitized and is about to crash onto our majestic coasts!


*In other news, Joe Wiesenthal of BI notoriety, and a gifted Obama/Lieberman 2012 Propaganda Bundler, is whacking off because Caterpillar beat earnings due to China building ghost cities, while he conveniently nonplusses regarding all the companies that missed earnings today, such as AT&T, Bristol Meyers, Eaton, Lockheed, Raytheon, etc, (or yesterday, or last quarter - cooked books nor currency gaming not even being brought up).

Sudden Debt's picture

America's favors are 2 generations old. Nobody remembers or cares anymore.

The one that will go down kicking and screaming is America.

America can't invade the rest of the world to take all the money. It hardly has enough man to keep Irak and Afghanistan occupied en not even enough to invade Iran.

Unless they put in a draft for every man ageing 15 to 65 years old and somehow find a way to build cyborgs to help them fight the world.

It's over... better get into the silver rescue pod boys and girls.


Things that go bump's picture

A draft is going to be a hard sell, even in the event of a massive false flag. 

magpie's picture

Even with full patriotic furor it sounds like a sure recipe for Czaristic regime change

1fortheroad's picture

Not when its the only job to be had, need to think like they do.

11b40's picture

I truly do hope they try.

Things that go bump's picture

We will need an equivalent of good old Country Joe to compose a new rhyme for "Feel Like I'm Fixin to Die." 

Big Corked Boots's picture

We're working on that cyborg thing. Be patient, we have to use it on our own citizens before we get to you.


12ToothAssassin's picture

I for one welcome our new SkyNet overloards.

brettd's picture

Yep.  History to a 25 year-old starts in 1985.

Moreover, we have a new media world:  One must be able to sell the reason for invading.  

After what the USA has been through the last 10 years, that's tough sledding.

'Can you imagin POTUS invading IRAN (or any mid east nation) for oil....after kiling Keystone?

Political suicide.

earleflorida's picture

the british [50% /pm disrali/rothschild $4ml pound finance] government did that with the building of the 'suez [1859-1869] canal', and after the 99 year lease was set to  expired in ~1968 it's collateral bit the dust - an unexpected war happened

today the suez canal authority is but a non-event,... with oil circumventing the canals main purpose

collateral to anyone today, is a very sticky dereliction?

Tangurena's picture

I suspect that Saudi bailouts will come with requirements to repeal pesky laws, such as the French ones, that ban wearing hijabs in public.

Cognitive Dissonance's picture

I got dibbs on Hong Kong. William Banzai7 lives there.

Wonder if I could leverage him for a boat load of PMs? Or at least a cute Geisha? :>)

DoChenRollingBearing's picture

I got dibs on Peru!  All you Gringos go somewhere else!  Sell me your gold at a discount first though...

Whoa Dammit's picture

I got dibs on Mexico. Only because I would like to see what happens when the banksters try to pull a MFG bankruptcy scam on the Mexican drug lords.

ucsbcanuck's picture

"Esse, you like your shit pushed in?"

BobPaulson's picture

Pardon me? Geisha? I only saw armies of pushy fillipina and vietnamese hookers in HK. I guess I should have ventured further than Wan Chai.

What about Buckeroo Banzai? He's a brain surgeon, rock star, samurai and nuclear physicist. He must be a banker too.


drink or die's picture

We need the aliens to attack us, not bail us out.

SheepDog-One's picture

Looks like the IMF has a busy knee cap cracking schedule ahead.

GeneMarchbanks's picture

You know, I'd like to just use this opportunity to ask my American friends to start an "Abolish the IMF" campaign since that Fed campaign has definitely at least shed light on these horrible institutions that are in fact doing exactly the opposite of what they were intended to be: insure stability on a global scale. This needs to start in the US. We've tried here in Europe but somehow fail.

In conclusion, I hate the IMF. Also, the World Bank and WTO.

'Update: literally seconds after this article was posted, we receive news that the IMF will seek Saudi contribution to the European bailout fund. There you have it - you enjoy that implicit US protection Saudi emirs? It is about to cost you.'

Obama needs to kiss the ring instead of just bow...

Manthong's picture

We need to open the kimona on both the Fed and the ESF and the same time end all involvement IMF and the World Bank.

This insanity has got to stop.

Irish66's picture

lots a lot of knee bending, I love to see "grown ups" beg

hedgeless_horseman's picture



Anagrams for: SICCSSRP

No anagrams found

That is dissappointing. I was hoping for CRAP SAPS, or something close.  We need another vowel, so let's hope Argentina gets its fiscal house in order.

Shitters_Full's picture

PRICCSSS.  Sorry, best I can do.

hedgeless_horseman's picture



Yeah, a U, S, and A would really help, but Argentina is probably more likely to make the list.

GeneMarchbanks's picture

Sip sip sippin on some sizzurp...

If you try to sound it out, that's the closest you get.

Seasmoke's picture

time to pay the piper on the camel

carbonmutant's picture

Banks will demand a restructuring on paying off the CDS...

lolmao500's picture
Good news! 'Senior IDF officer told cabinet Israel cannot stop Iran's nuclear program'
Snidley Whipsnae's picture


Iran is not looking on fondly while the EU takes orders from Oblamer to boycott Iranian oil... From the RT site which was being discussed earlier today on ZH. Is RT a credible site? IMO, at least as credible as US MSM... which is saying little. Take all you hear these days with large doses of the same time it's news of a sort, even if only to shed light on what the Iranian leaders are thinking.

"Pre-emptive embargo: Iran could turn off oil tap to EU"

"Iran may turn the sanctions tables by immediately stopping oil supply to Europe. The move is aimed as a response to the EU slapping an embargo on new oil contracts with Tehran. China has lashed out at the sanctions, calling them “blind pressure”.

The European sanctions, which follow a similar move by the US, provide for a grace period lasting until July 1, during which standing contracts with the Islamic Republic may be honored. However Iranian MPs are drafting a new law, which would stop short all supply to Europeans as soon as possible, according to Nasser Soudani, a member of the parliament’s energy committee."

caconhma's picture

Never allow her enemy to hit you first.

Always, choose your own time and place to hit your enemy first and do it as hard as it is possible. After all, initiative is the key to a victory.

As for Iranian, my advice, don’t be Qaddafi looking for an honorable settlement. Just imagine Qaddafi was attacking and bombing London, Paris, and Rome. After all, he and his family could be still alive.




Bagger's picture

Don't see the Saudis being too keen on being given instructions by the female head of IMF......


Irish66's picture

man love to be told what to do

narnia's picture

the House of Saud might as well be built on quicksand if the US rule by biggest gun project fails.  the SDR is an important part of that plan.

EmileLargo's picture

To be fair, she doesn't look very female.