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Put Some Lipstick On This Pig And Sell-It - The EU Statement

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Fri, 12/09/2011 - 07:59 | 1962225 Housicker
Housicker's picture

Could somebody just explain to me where the money will come from to get all the financing done in 2012 if the ECB doesn't print ?

Fri, 12/09/2011 - 08:01 | 1962231 i be julia
i be julia's picture

You know what's cool?

Despite all the turmoil, I still have a very large penis.

I love to shake it in the mirror.

Don't hate me because I'm beautiful.


Fri, 12/09/2011 - 08:10 | 1962247 LeBalance
LeBalance's picture

this is definitely a senator.

Fri, 12/09/2011 - 09:09 | 1962419 falak pema
falak pema's picture

could it be a Pelosi or a Bachmann who loved big frankfurters...?

This is the sort of thing a woman would say, no man dares say his dikk is big, as there is always one that is bigger. Life teaches you that. But a woman...can exercise poetic licence ad infinitum in this domain!

"I'm the fastest gun in the west!"

Fri, 12/09/2011 - 11:04 | 1962769 smore
smore's picture

Penis size and IQ are negatively correlated.


Fri, 12/09/2011 - 08:47 | 1962364 AntiLeMaire
AntiLeMaire's picture

Hmmm, sure.

  • Because the Eurozone (EZ) countries as a whole are creditors, whereas the UK and US are debtors.
  • And the EZ has a trade surplus, whereas both US and UK have trade deficits.
  • And the Debt/GDP ratio for EZ is lower than 85% on average, whereas for the US that ratio is > 100% and for the UK that ratio is > 150%.
  • And the FY2011 expected government deficits are less than 5% in EZ on average and more than double that in UK and US.


Something along those lines perhaps?


Fri, 12/09/2011 - 08:00 | 1962226 silver500
silver500's picture

The agreement is the same as the original entry agreement except the punishments are not specified

Original entry Criteria:

Government finance 

Annual government deficit:

The ratio of the annual government deficit to gross domestic product (GDP) must not exceed 3% at the end of the preceding fiscal year. If not it is at least required to reach a level close to 3%. Only exceptional and temporary excesses would be granted for exceptional cases.

Government debt:

The ratio of gross government debt to GDP must not exceed 60% at the end of the preceding fiscal year. Even if the target cannot be achieved due to the specific conditions, the ratio must have sufficiently diminished and must be approaching the reference value at a satisfactory pace.


Fri, 12/09/2011 - 08:00 | 1962229 oogs66
oogs66's picture

But they have the media pushing it hard

Fri, 12/09/2011 - 08:10 | 1962248 Popo
Popo's picture

...and they've agreed to hold 2 meetings, sorry "Euro Summits" every year.

This is what happens when the idiots are in charge:  They agree to have meetings.   

Fri, 12/09/2011 - 08:17 | 1962270 oogs66
oogs66's picture

Summit coordinator is the job to get

Fri, 12/09/2011 - 08:00 | 1962228 williambanzai7
williambanzai7's picture

This is a ploy to get through the Holidays without having to work.

Fri, 12/09/2011 - 08:04 | 1962232 i be julia
i be julia's picture

My cock is larger than yours.

So put that in your pipe and smoke it.

Tune in, turn on, and drop out.

Just saying.


Fri, 12/09/2011 - 08:10 | 1962251 LeBalance
LeBalance's picture

nope, this is Sarkozy....or Corzine.

Fri, 12/09/2011 - 08:12 | 1962255 Danielius
Danielius's picture

You certainly seem to have a center of focus.  Are you certain you are adding comments on the correct site? 

Fri, 12/09/2011 - 08:04 | 1962234 Josephine29
Josephine29's picture

The problem is as explained below.

There was a proposal towards more fiscal control

General government budgets shall be balanced or in surplus; this principle shall be deemed respected if, as a rule, the annual structural deficit does not exceed 0.5% of nominal GDP.

Quite how they are going to achieve this objective I am not sure and it looks very “pie in the sky”. For example if we look at France it has needed two recent extra austerity packages to get its budget deficit back on track to hit 4.6% of Gross Domestic Product in 2012 and 3% in 2013. So exactly how would she achieve a balanced budget? Also if you consider the state of Europe’s economy let me pose a wider question is aiming for a balanced budget right now even a good idea?

Actually there is some debate already as to whether this proposal is even legal so it may turn out to be as (in)effective as the 1997 Stability and Growth Pact which this new proposal seems to mimic in many ways.



So if they enforce any of this they will create an economic depression in Europe...

Fri, 12/09/2011 - 08:06 | 1962238 nmewn
nmewn's picture

"If they have the EUR 200 billion lying around to lend, why use the IMF?"

Everyone check under those seat cushions!!!

Oh, that would be considered from savings wouldn't it? Back to putting the debt owed on different credit card, that'll solve it...lol.

Fri, 12/09/2011 - 08:19 | 1962272 oogs66
oogs66's picture

Lol. This just seems bizarre. Central banks rule the world

Fri, 12/09/2011 - 08:11 | 1962254 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

We spent many hours over several days together discussing something. Here is your answer "nothing". As with the case of all politicians, they have to show something was done and admitting the truth is never an option.

Fri, 12/09/2011 - 08:14 | 1962260 Dick Darlington
Dick Darlington's picture

Finnish YLE reports (Google translated):

Unanimity or Finland out of the crisis fund


Minister of Jutta Urpilaisen (soc dem), the permanent crisis fund to changes there are two choices: either abstain from making a unanimous decision or Finland is not involved in the fund. He said he did not see any other options.


Fri, 12/09/2011 - 08:20 | 1962275 oogs66
oogs66's picture

Why does Finland need to be in eur?

Fri, 12/09/2011 - 08:36 | 1962317 Dick Darlington
Dick Darlington's picture

That's exactly the question finnish people are asking. Finns were never given the opportunity to vote in a referendum abt joining euro. The decision was made by one of the eurofanatics, former prime minister Lipponen. The current weak coalition led by PM Katainen, eurofanatic to the bone, is doing the exact the opposite that people want. There's a huge and growing contempt towards the undemocratic EU-dictatorship and the never ending robbing of tax payer money to "fund" the bail outs.


Judging by the relative success of the other Nordic countries who decided not to join euro, Finland would be in a much better place if it hadn't join this communist dictatorship in the first place. Finland is abt the only country which has obeyed the original Maastricht treaty (max 3% deficit, max 60% debt/GDP) and the "reward" is tens of billions of liabilities for other countries (read foreign banks) debts. And esp when looking the net debt/GDP Finland is in a league of it's own. Net debt/GDP is roughly -57% of GDP. (yes, that's a minus sign).

Total Government Net Debt (% of GDP) for Finland in year 2010 is -56.797 %

Fri, 12/09/2011 - 08:38 | 1962332 Housicker
Housicker's picture

HELSINKI, Dec 9 (Reuters) - Changes in the European Stability Mechanism (ESM) must be made unanimously, or Finland will drop out, Finnish Finance Minister Jutta Urpilainen told public broadcaster YLE on Friday.

'We will stick to this demand for unanimity,' Urpilainen was quoted as saying on YLE website.

The Finnish parliament's influential Grand Committee said on Thursday the country could not accept a change to the EU's rule of unanimous decision-making without two-thirds of its own parliamentarians agreeing to the move. The opposition parties have said they would vote against such proposal.

Fri, 12/09/2011 - 08:15 | 1962265 ucsbcanuck
ucsbcanuck's picture

The markets will be up today. That's the ridiculousness of it all.

Fri, 12/09/2011 - 08:16 | 1962267 Tense INDIAN
Tense INDIAN's picture

they dont have much of a choice either....

Fri, 12/09/2011 - 08:21 | 1962276 dbells32
dbells32's picture

Sell this market!!! 5 damn EU summits and zero accomplished...use this baseless rally in the futures to sell

Fri, 12/09/2011 - 08:21 | 1962277 The 100 Trillio...
The 100 Trillion Dollar Man's picture

Anything better than a deficit of 0.5% is considered a surplus.

Of course it is. Why didn't I think of that? How can they possibly enforce anything with such logic?

Fri, 12/09/2011 - 08:33 | 1962315 chaartist
chaartist's picture

farage reaction pls, need to get back my mood.

Fri, 12/09/2011 - 08:38 | 1962335 AntiLeMaire
AntiLeMaire's picture

Via IMF: not very brave, but quite wise...

>> “the provision of additional resources for the IMF of up to EUR 200 billion, in the form of bilateral loans, to ensure the IMF has adequate resources to deal with the crisis”.  So the EU is bailing out the IMF?  Or the EU is giving money to the IMF so it can bailout the EU? 

It is the AAA countries (mostly) that increase their IMF funding.
EU funding of IMF should be on par with or larger than US funding of IMF. But more importantly the strong EU countries only want to lend money to the weaker EU countries via such an entity like the IMF, because the IMF always plays Bad Cop.

The stronger EU countries do not dare to tell the silly weaker EU countries to simply stop such nonsense such as pensioning-off people at 45, without actually having funded their pensions (like GR did).
Nor do they want to be forced to install AT/DE/NL/FI/CH/SW/NO/DK (etc) tax controllers in countries that seem to have difficulty to simply tax their own subjects properly (like GR, IT, ...).
They like to keep up the idea that they are nice neighbours, yet they do not dare send any more money to southern black holes without much more effort by those debtors and stricter controls on them.
So they are hiding behind the IMF.

So perhaps not very brave, but quite wise IMHO ;).

>> If the EU has the money why not lend directly, or wait, better yet, pay off some of the debt!   Watch this carefully.  I have to assume that it is better credits lending money so it can be funneled to weaker countries.

As to the last sentence, I think so as well. As to the first bit, see above & below.

>> This should be credit NEGATIVE for the better countries.  I think this could impact yields over time at better countries, and may also be enough to see some ratings downgrades. 

Huh, no, why should it?
The IMF is expected to need more money to deal with some of those weaker EU countries. The money will have to come from somewhere and the EU will have to fork over more money to the IMF anyway in case they do not lend directly to their neighbours (or via the EFSF or EMS). Via the IMF the conditions will be strict and severe.

>> Again, I’m really confused why the IMF is involved in this.  Why they can’t do bilateral agreements within the EU is bizarre, and if anything, we have learned that whenever there are unnecessary steps or seemingly bizarre steps, it hasn’t worked out well.

See above. The constituents in the richer EU countries do not trust the backbone of the debtors. They know / think that via the IMF they will get their money back eventually, so this idea can be sold to the general public in the AAA countries.
In this way the governments of the AAA countries guarantee / fork over more money, without running the risk of being eliminated in a next general election...


Ceterum censeo OTC esse delendam

Fri, 12/09/2011 - 12:04 | 1963041 tony bonn
tony bonn's picture

humpty dumpty sat on a wall
humpty dumpty had a great fall
all the king's horses and all the king's men
couldn't put humpty together again.

Fri, 12/09/2011 - 12:23 | 1963148 waterdude
waterdude's picture

wow - zerohedge gets it wrong again!  SX5E up 2.2% into last 10min, looks to close at day high.  Ever think you guys are just chasing what the market was discounting last week or last quarter?


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