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Spain's Catalonia Region Demands €5 Billion Bailout, Will Not Tolerate Conditions
Beggars can once again be choosers. In other news, non-news (the Catalan bailout was announced at least two times before) is news again, and magically drives the amnesiac market all over again.
From Cinco Dias, courtesy of the always amusing google translate, which makes any news, no matter how tragic, quite hilarious without fail:
Catalonia 5,023,000 calls but will not accept the State Policies
The Catalan government today applied to join the Spanish Government Autonomous Liquidity Fund, which will borrow EUR 5.023 million, but has warned he will not accept "political conditions" to provide some resources "that are of the Catalans".
The Catalan government spokesman Francesc Homs, has stated that the Government will use these resources - the fund is endowed with 18,000 million euros to meet the budget deficit that is required (1.5% of GDP by end 2012 ) and to refinance "maturities outstanding" between now and year end.
The Catalan government has finalized this application to join the Liquidity Fund at its first meeting after the summer break.
Needless to say, Germans, who are ultimately indirectly paying for this unconditional party, are delighted.
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Demand? Perhaps they should consider suggestioning?
There's no brown M&Ms in the green room.....I can not tolerate these working conditions!
Perhaps Catalonia should pay attention to their little village Rasquera's debt solution plan, growing weed:
http://www.bbc.co.uk/news/world-europe-17668617
Perhaps Madrid should start to consider all those seperatist and independence movements in Catalonia.
"Hmm...unconditional $5B bailout? Or maybe just 'buh-bye'"!
If you can't even throw Greece out the EZ, how are they going to throw a region out of Spain
Do they have any mines to barricade themselves with explosives in?
Heh, even with a suicide pact the last times they tried to break loose they needed foreign armies to do it for them.
€ 5M ? Seriously. That's nothing. I will not read any article talking about who is getting a million. Get the fuck out of here!
Everytime I read these types of artcls. I keep having flash backs of the Blazing Saddles scene where Cleavon Little is holding a gun to his own head and threatening "Anyone moves and the nigger gets it"
No, 5 billion. The dot is spanish notation for comma. 5023 million euros.
To confuse you more, "billion" in spanish means trillion.
The metastases of bailouts will end all history and negativity for ever.
Thanks to Germany traitors-politicians, Germany will be ruined both economically and politically.
is coming over you in the very near future.
Expelling Greece from the Euro is like kicking an unemployed 20-something out of the parents' basement apartment -- he doesn't want to leave and the parents are conflicted.
Catalonia has a well-developed independence movement that has a 100-year-old body of literature, its own language, and growing public approval. If Madrid even suggests that it might be OK, the Catalan idependence tide would latch onto this as a "bargain" -- and they'd be right. Catalonia gets independence; Madrid saves a $5B bailout plus all the follow-on bailouts that no one is admitting to yet.
Well, if that's settled they still have to decide whether to keep the Euro or not
And why would TPTB want to throw Greece out. Greece is like a fish on a hook, a hook so deep down the throat, it can't get off it. Let Greece or anyone else struggle all they want. In fact the more they struggle and borrow more, the more Greece is on the hook. More leverage later on for the central planners.
All these plans to save various countries and regions are really plans to get a stronger hold and control of those finances. That's why we have constant drama back and forth without resolution (until it can't be resolved anymore). It's like the guy that goes to the mob to borrow $10k. A year later, you find him in debt to the mob for $100k. Eventually the mob comes and takes it all from you, your assets and your life.
TPTB will keep Greece in the EU as long as they are able to stripmine more wealth, either real or future obligations, from Greece than the money they are putting into Greece. Simple as that. The mafia reference is appropriate, because this is "not personal, just business".
You can simplistically compare this to extortion...or you can stop being an idiot for a moment and understand the "power of the center" under direct attack from the Regions. Big deal...move along sheeple!
The thing is, Catalonia (which includes Barcelona) is the most advanced region of Spain economically (arguably more advanced than Madrid, despite what many consider an unfair, center-skewed distribution pattern for federal tax revenues).
If they lose this economic engine, the Basque region (another bright spot on the Spanish map) will probably follow and pretty soon what Madrid is going to be left with to govern will be only the perpetually poor Galicia and Andalusia.
And, politically, this is a non-starter. Spain will sooner descend into a civil war than follow an orderly split like Czechoslovakia.
"This is the freakin Catalina Wine Mixer"
"Pah!"
give then the "soup nazi" treatment: "you want no conditions?, no bailout for you! Next!"
Just fucking pay me. Now.
Regards,
Catalonia
Collapse ON!
You know the drill, rant around, Merkel in SS uniform, then line up at the ECB after a Draghi 'all clear'.
http://translate.google.com/?hl=en#es/en/que%20se%20jodan!
WTF - When will this Sh!t finally end,
...doing GOD's work...GS-DickinDaMuppets
catalonia is a socialist hell hole, who have spent all their money now expect more..
Exactly. Give us 5 billion or else. No conditions, blow jobs or reach arounds.
Catalan chutzpah. Paella munching mofos.
"Hell hole" is a mischaracterization of Barcelona.
Until they hold their breath, these demands cannot be taken seriously.
Don't push it little mister....cause they'll totally do it!!!
The original article refers to 5 million, not 5 billion as titled. 5 million is nothing, it's not worth mentioning.
Can I have some 'nothing' please
Gibs me dat.
No, no, the title is ok, it's actually 5 billion. The google translator confuses comma/dot delimiter.
Oh. I reacted to that too. 5M would not even pay for ONE of Berlusconis bunga bunga parties.
Okay you moron, go to Wikipedia or somewhere and learn about decimal points in continental Europe.
I am directly from Europe...
No kidding? Can I have some of your free money?
Stop right there Sir. You have to wait for QE3 like all the rest.
That explains a lot.
Shame you not knowing that 5.023 is same as 5023 in european notation. Confusing i know but it's how it is.
In today's "brother can you spare a bailout" world, 5 billion isn't nothing either.
ehmmmmm perhaps you should consider to go back to school............... reading lessons especially
No Senor, no.
The original article mentions
"5.023 millones de euros"The Spanish don't seem to use commas to denote thousands, but use the decimal, which is rather confusing.
That's 5.023 billion Euros. What do you think they would do with 5 million euros?
And the Euro is up again this morning.
Insolvent countries - more bullish news.
The core and peripheral are completely seperating
Countries like Czech Republic and Poland's currencies are getting hit when the euro gets hit.. But their economies are much healthier.. Buyying these currencies has been my thing for about 3 weeks now..
http://mlatrader.com/czk-analysis-close-to-support-at-median-line-czk-a0...
Hmmm couldn't you make the same argument about CHF?
What are they going to do when the rest crashes? Export their way out?
(I'm lazy to check but I wouldn't be surprised of their CB's had some sort of peg to the Euro).
CHF is pegged to the Euro at current rate of 1 Euro = min. 1.20 CHF
as a swiss citizien i would say that if EU implodes, we will experience our baddest times since WWII
That's so shit for the swiss. Hope you have plenty of those lil' gold and silver bars!
The Sterling(I am UK resident) and the Norwegian Krone (I hold both for fluidity) are not pegged to the Euro and the Sterling is getting yearly highs against the Euro. Who's bright idea was it to peg the CHF to the Euro?
Catalonia, just break away from the Spanish Kingdom and default on your debts.
9! 9! 9!
Mine! Mine! Mine!
Correction: The original article refers to 5.023 million euro. That's 5 billion anglo-saxon monedas
Hell.....we can just pull that out of petty cash.
The entitlement mentality runs deep in the western culture that's for sure. I'd tell them to take a flying leap,but I'm not a banker who is afraid I might take a haircut. So they will probably get the money.
5 million Euro? Hell thats not even enough to keep the Fed pumping for half a microsecond.
The ponzo markets remind me of drug addicts looking for a reason to get high. "Oh look, the sky is blue-let's get high."
The PPI is down .00056% over last year, the Dow spikes 200 points. What fucking non-sense!
"sky is blue" HA!
Is it 5 million or 5 billion?
Just give us whatever you got......dig deep......it's going for a good cause.
You remind me of my sister.
One day she read a medical story how eating eggs was bad for you.
The next day, she read a story how eating eggs was good for you.
She then exclaimed. "Why don't they tell me what I should do? Are eggs bad for me or good for me?"
I just smiled and ignored her. I'm smiling at you.
5 euros and 2.3 cents
It is 5 billion, eddiebe.
They've been working on Sagrada Familia for 130 years. They just need a nudge to get it done. The tourism it attracts will let them pay off that debt in no time!
Just bomb the PIIGSF and get it over with!
Here we go. People were concerned about the break-up of Europe and now the powers to be must be worried about the break-up of the European states.
THe arrogant eggheads created the Euro to reduce the possibility of another European war. Like most eggheads, their technical analysis and forecast was wrong. In fact their decision to force the Euro on the Europeans has increased the possibility of a European war. The eggheads who did this should be held accountable and at the very least, their credibility should drop to absolute zero.
The only problem with accountability is that no one from the top down are holding anyone accountable.....The Euro has failed, the socialist policies of Europe and the USA have failed, our President has failed to lead, our attorney general, SEC, etc have have all failed to prosecute.....hell, in the midst of the worst budget deficits in the history of the planet and unemployment over 8% (as reported) we can't even agree to enforce laws which would help people who are here legally to get jobs....here in California and the USA they blame the budget problems on people who pay taxes on not paying enough taxes! Beautiful.... Accountability????? Who's on 1st?
How can good people fight a corrupted system? When the law serves corruption, choices are limited. As I wrote in Santelli's counterfeiting article:
If you want to legally counterfeit, got to be a member of Fed club,
If you want to legally steal, got to be member of TBTF bank club,
If you want to legally practice organized crime, got to be member of US/state justice clubs,
If you want to make a fortune from legal bribery, got to be member local/state/federal legislative/executive/judicial clubs.
Sorry to see the morality of our leaders be corrupted by money, but just what happens once you cross the line and become a Banana Republic.
I know all banks, all lawyers, all judges, all legislative people are not corrupt, but the good people inside these institutions must bring light to their corrupted peers. If not, they are corrupted by association.
LOOKING FOR SOLUTIONS? Tyler has an excellent solution with this transparency, but I would bet the corrupted people in power would like to shut this site down. Just speculation on my part....
But I am quite comfortable with the Catalonia's decision not to tolerate any conditions. What for, after all? Should the people always pay others' bills, support screwed and corrupt policy, banking gamblers or political shell games? If one has to undergo austerity then certainly not for preserving the status quo. Catalonia has put it clearly 'Enough! It's your job to manage things. If you can waste huge money for your sharades, you'll certainly find some for people. Now go, start doing your job and don't bother us with details.'
California, i mean Catalonia, should look at the macro numbers for Spain as a whole. How can they afford it?
http://confoundedinterest.wordpress.com/2012/08/28/the-pain-in-spain-continues-real-gdp-declines-1-3-house-prices-continue-to-decline/
Catalonia Seeks $6.3 Billion From Spain Regional Rescue Fund - Bloomberg.
Spain will have to request a bailout sometime this year. The Spanish budget situation is much worse than the mainstream believes and has been steadily deteriorating all year.
In March, the Spanish raised the target on its 2012 budget deficit to 5.8% from 4.4%:
http://online.wsj.com/article/SB1000142405297020398660457725669376587463...
That number was much too optimistic as we learned two months later that the budget deficit would be 6.3%:
http://www.bloomberg.com/news/2012-05-11/spain-will-miss-budget-deficit-...
Finally, the Spanish got the numbers right. Yea! Wine and tapas for everyone! After everyone woke up from their wine and tapas induced siesta, they realized that they had more work to do.
The budget deficit for the first half of the year was actually 4.04% (love that precision). If we double this number, we arrive at 8.1% for the year. Of course, the Spanish aren't telling us everything. The regions are expected to run a 4% budget deficit for the year, and not all of this number is included in the worsening budget deficit. Let's pretend that there is a good accountant working somewhere in the Spanish Finance Ministry who actually accounted for half of the regional debt in the projections. If that is the case, then we will only add half of the regional projected deficit to the total for a whopping 10.1% of GDP.
If you think this number is crazy, then look at its history for the year:
In just about five months, the official number increased 3.7 points. That's an 84% increase or 17% a month, not compounded. If we extrapolate this figure for the last four months, we get 68%. An increase of this amount over the last four months of the year give us an actual budget deficit of 13% of GDP, so my 10.1% back of the envelope calculation is actually quite conservative.
Don't worry. This problem can easily be papered over with a bond buying program and vainglorious boasting by Super Mario.
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