The Spanish Riotcam Has Arrived

Tyler Durden's picture

Spain's honeymoon with its new government is over.

Following months of hope that Spain will somehow tiptoe around the sensitive topic of austerity, despite promises of such and slow leaking of bond yields wider, yesterday the government promised to generate savings of €27 billion of about $36 billion (Spanish GDP is less than one tenth of America's, so an equivalent US cut would be about $400 billion), as demanded by Europe, but which will leave a harsh aftertaste with the general population. As Reuters notes: "The central government could meet its target but there's still a risk from the regions and the social security budget," economist at Madrid-based think tank Funcas Angel Laborda said. "I get the impression the central government has created a budget it can meet but has left everyone else in a rather difficult situation." Well, technically no. After all what Spain is doing is following the Greek playbook page by page, as expected back in October 2011 - first Spain sabotages its economy, then it demands more money, then it promises austerity, then it never keeps its promises but in the meantime, Germans are on the hook for hundreds of billions in more bailout cash. At the end of the day (for the euro), it will be they who are in the worst position, but since they get to retain their export partners (whose current account deficits the Bundesbank funds), all is well. That is, at least, until this latest unsustainable bubble pops.

Furthermore, as noted yesterday, it will be Spain's regions that are about to become front and center for the bond vigilantes:

The regional authorities, which account for around half of the total spending budget and were responsible for a large part of the fiscal deviation last year, must slash their own deficits in half this year.


But, with few details on Friday of how the central government cuts will affect the regions - a full breakdown will be published on Tuesday - it is still unclear if Madrid's austerity comes at the cost of the 17 autonomous communities.


What is clear is the regions, which hold the purse strings of the much treasured state health and education systems, will be forced to make unpopular cuts which could fuel growing public anger like that seen during the general strike on Thursday.


Marches across the country saw violent flashes for the first time since the crisis began last week as frustration erupted at the government's failure to address the 23-percent unemployment rate which rises to almost 50 percent for under-25s.



The economy is expected to shrink by as much as 2.7 percent this year and could find little to spark growth if the government is forced to raise taxes to meet this years 5.3 percent deficit goal and the target of 3 percent in 2013.


Rajoy was wrong to push Brussels for a loosening of the original deficit goal of 4.4 percent of GDP for this year and should have asked instead for a two year extension of 2013 target, an editorial in the left-leaning El Pais wrote.


Is Spanish Regional Debt Out Of Control?


Spanish regional debt currently stands at 13% of GDP and has surged from EUR60bn in 2006 to over EUR140bn currently. As Credit Suisse points out, the top four regions account for the majority of GDP, two-thirds of regional debt, and, with the exception of Madrid, substantially missed their deficit targets. What is more worrisome is the heavily front-loaded nature of the maturing debt with substantial refinancing needs in the next 2 years and this regional debt is split between bonds and loans - with many of the latter from Spanish banks - yet another illustration of the interconnected contagion that is building more rapidly. The growing crisis in refinancing (liquidity and costs) for regional debt developed the idea of Ponzibonos 'Hispabonos' - debt issued by regions but guaranteed by the central government. The conditionality of these guarantees with regard to deficit targets wil be critical but once they are issued, the risk is that the regions are unable to get their finances under control, the Spanish debtload increases, and there is no longer the flexibility for a regional debt restructuring, should one be necessary.


Spanish regional debt has grown dramatically in recent years...

But the refinancing needs are massively front-loaded (and rely not just on markets but the banks to roll loans also)...

As a reference, front-loaded means the can can not be kicked down the road. It has to be resolved soon.

So as Greece is supposedly fixed, at least until its 3rd bailout, which was hinted at yesterday by the PM, Spain has once again officially joined the fray.

In the meantime, the people are less than delighted with this latest episode of mean reversion, sometimes incorrectly called austerity, as can be seen on the following pictures from last week's General Strike across Spain, which morphed into a less than general riot. Since more tax hike are imminent, we will very likely soon have to find a local version of the Syntagma square riot cam, preferably one situated in the middle of Plaça Catalunya.

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bob_dabolina's picture

Google for videos of the Tsar Bomb.

That would destroy any city with no problem.

Yen Cross's picture

San Diego does suck Bob. It's the ( culdesac ) of idiots! 

  I can relate. I'm 1/2 expatriated.

Cardinal Fang's picture

My analysis of the LLNL and SNL data referenced in your link, reveals that on page 3, the best odds of survival in the modeled scenario would be the random walks distribution, over time, of a bag lady or can man engaged in their daily searches. Please review the data and my analysis and report your findings.

Sudden Debt's picture

Hehehe :) funny:)
Brings me back to memory lane when going to a socker match was really a soccer match and fun!

misterc's picture

Exactly! Sudden Debt speaks the truth. But I get junked for saying the truth.

WonderDawg's picture

It's all in the delivery.

smiler03's picture

We had joy we had fun we had Chelsea on the run.

First Division Football Hooliganism from the 70s.

Ahmeexnal's picture

hmmm...smiler03, do you sport a "chelsea smile"?

The Swedish Chef's picture

Finally someone actually tries to straighten out the mess España has been since...well, forever. What happens? Spoiled citizens...sorry, customers of government service goes out en masse to riot. Where is the majority that ousted that piece of crap Zapatero? 


Spain should have done this DECADES ago but this just goes to show that the slower you pull off the band-aid, the more painful it is.

Clifhanger's picture

It's comin here 2!

lolmao500's picture


I'm still waiting for the American version with guns.

oldman's picture


I'm quite certain you will not like it when it arrives

best of luck       om

JustObserving's picture

Spain does not add fluoride to its water.  Nor does Greece.  Time to learn from the United States on how to control the sheeple.

“You don’t improve the health of your people by giving them poison, but you sure make them more docile."


RESEARCH SHOWS FLUORIDE IS IQ-KILLER FOR CHILDREN While CDC calls it 'safe and healthy way to effectively prevent tooth decay'


Yardfarmer's picture

useless and addictive posting on internet forums is quite a distraction in itself and combined with the flouride, food additives and pervasive pharmacological happy meals and ELF subliminal bubblevision mind control, saturation with media circuses and dumbing down public education provides a formidable quagmire of psychological and physical quicksand to collectively immobilize and target the consumer species bound for extinction. not with a bang but a whimper.

Element's picture

Oh come on, US citizens are fucking "docile"? ... DOCILE ?!!!

So docile that they buy guns and ammo as fast as the factories can churn them out, and where violent crime is fairly commonplace, and invasions of other countries, who have essentially done nothing much at all, is routine, and occurs with numerous voluntary nationalist cheer squads calling for mass destruction.

The US people are quite possibly more aggressive than any other people in history.

So given this is undeniable, I don't suppose you're prepared to consider the apparently quite supportable counter-proposition, that the fluoride thesis is actually a load of ultra-dippy nonsensical horseshit?

Or have you just been reading/listening to David Ike and such too much to reform such a failed notion?  I would hope not.

How about this fact then;



Water supply in Israel is artificially fluoridated since the 1970s. Settlements with more than 5000 citizens and settlements sharing water infrastructure with large settlements receive fluoridated water. About 67% of Israel's population receives fluoridated water.[48]


And settlers are pretty docile and dumb, right?

So why are you just accepting and believing what some dude tells you about stuff like this? 

Too much fluoride perchance?


I'd be more careful what you invest your brain in, because this fluoride story/excuse is a delusion.

Tsar Pointless's picture

Goddamnit, lolmao500, you beat me to it!

Bullish mother-fuckers! S&P 1500 fer sher!

evolutionx's picture

US-Honeymoon will also be soon over:


U.S. Homeland Security Buys 450 Million Hollow-Point Bullets


Is the U.S. Government expecting domestic insurrection?

    The Department of Homeland Security (DHS) and its Immigration and Customs Enforcement (ICE) office is getting an “indefinite delivery” of an “indefinite quantity” of .40 caliber ammunition from defense contractor ATK.

    U.S. agents will receive a maximum of 450 million rounds over five years, according to a press release on the deal.

    The high performance HST bullets are designed for law enforcement and ATK says they offer “optimum penetration for terminal performance.”



AnAnonymous's picture

That is still abundance. More bullets than the population of the US.

The game will grow thicker when it will be about less bullets than the population, as once again, US citizens will reintroduce industrial solutions to resolve the scale issues.

Will certainly happen when US citizens face all those people who live on 2 bucks per day. Have to beat the cost. Cant afford spending more on them than they consume.

mkhs's picture

No, it just means they can't shoot straight.

oldman's picture


It also means that there will be fewer founds for the 'public'

 while this order is being filled.

Tell me though, that .40 round is one I remember being recommended as 'the stopper'. Surely DHS wouldn't use those against regular folk-------------------------------------------

would it?

Out of my field of knowledge                        om

Schmuck Raker's picture

Does anybody know the total number of bullets sold in US each year?

I suspect DHS has a lot of catching up to do.


"Guns don't kill people. Cops kill people." - T Chong

Conax's picture

Some ammo dump/base got blown up in Afghanistan (I think) but the story mentioned a shipment of small arms ammunition. One shipment was 3 1/2 BILLION rounds.They don't want to lose for lack of shooting, that's certain.

oldman's picture


Damn, dude

That comes out to 125 rounds per capita in Afghanistan

They must have really pissed us off---what did they do to desrve so much special attention?                   om

Conax's picture

It might have been in Iraq, I read alot of stories!

Still, an awesome pile of ammo for our boys to plink with.

ZeroPoint's picture

As far as I know, Homeland Security does not procure munitions for the military, so I guess these will be distributed to police & national guard.

Lednbrass's picture

Its only freaking pistol ammo, useless for anything but a popgun.  If they were buying ammo for actual dangerous weapons this would be a cause for worry, but it isnt. Im not concerned about a mass purchase of ammo for guns not worth much over 25 yards, you cant subdue a populace armed to the gills with AR's, AK's, and high powered hunting rifles that can punch though any body armor with that kind of low end bullshit weapon.

Six gubmint types with those peashooters would get entirely owned by one redneck with a deer rifle. It might work in urban areas where people think a Glock is a weapon, but outside of major cities any government enforcers would be in very deep doodoo very quickly with pistols and a sprinkling of short range submachine guns. It would be a Crocodile Dundee moment with guns- "Thats not a gun, THIS is a gun" BLAM!

If the Department of Homeland Stupidity buys that much .223 and/or .308, its cause for worry. 40 cal pistol ammo? Pffft. Nothing to see here, just a waste of money to train law enforcement that generally cant shoot worth a damn.

TSA gropee's picture

Junked twice with zero rebuttal, my how manly of them.

I agree to a point but see this as a continuing trend with the arming of facets of government that have no business being armed. Case in point, riot shotguns for the dept. of Education. Now that worries me. Not being allowed off a shuttle bus to a pro golf tournament until police arrive. Shit like that.

lakecity55's picture

I like my .45-70.

Goes thru a lot of shit.

ZeroPoint's picture

5.56 NATO Greentips. They punch right through a helmet, as designed.

Resolute's picture

The article states DHS is also ordering 175 million rounds of .223 ammo.


Angus McHugepenis's picture

I call your Fuck and raise you a Fuck!

Mr Lennon Hendrix's picture

Just give them a "bailout" and the will shutup.

CrashisOptimistic's picture

Nothing will change without firearms.  Will bailouts deter firearms?

I'd say no, but not because they could not.  Rather, because firearms will arrive when shortages do -- particularly shortages of the sort where it is shown that the elites are not enduring the shortage.  

THAT is when firearms arrive -- and you can't bailout a shortage if it's an imported shortage.  The exporter won't want printed money.

Kaiser Sousa's picture

Meanwhile n the good old USA...
Lotto fever grips the nation....
Final four finally here....
Edith o'brien smirks at bitch ass banker owned congress after being an accomplice to theft of 1.2 billion n foolish investor funds....
Fed ongoing manipulation of stock market keeps Dow above 13k while savers are robbed blind by real negative interest rates...

Those stupid Spaniards...don't they have facebook or Ipads to occupy their time with......

Atomizer's picture

Is riot dog on the scene? LOL

Yen Cross's picture

 The " Running of the Bulls". 

Seasmoke's picture

every riot i have seen pictures/video of so far is the same.......police bashing the shit out of protestors.....think its time to think outside the box and come up with a new strategy......being a punching bag must get old after awhle

CrashisOptimistic's picture

Without use of firearms, this is just a collection of people walking in the street.  No policy will change until elites die.

AustriAnnie's picture

They are hurting themselves and their neighbors more than they are hurting the elites.  Its like self-inflicted economic sanctions.  They destroy their own neighborhoods and disrupt everyday business, making it even more costly and difficult for people to provide for their families.

Meanwhile, the elites quietly continue the wealth transfers, untouched by the riots.  Its even easier for them, actually, because they don't have to worry about entertaining the sheeple.  The riots keep them distracted while they move the rest of the nation's wealth to their offshore Cayman accounts.

Cathartes Aura's picture

seasonal rioting over futbol matches has a very long (decades) history in euroland & UK - this has allowed for the building up of policing FORCEs that appear to be on behalf of the public, but in reality is just incremental tyranny.

but yes, the pics do remind me of the frequent "sports" riots that businesses would shutter their storefronts in anticipation of. . .

"they" are so far ahead of street displays, it's almost comical.

Element's picture

Yes, which is why I've always said to not go after buildings, and police and organisations and security services, those are a total waste of time and work against any gains -- you have to go after THEM.

Or else, forget it. 

A decentalised protest of 25,000 people is horseshit, a joke.

But 25,000 decentralised persons with a 270 fitted a decent scope is the end of the central bankster ponzi.


Kaiser Sousa's picture

Hey, I got a crazy idea....
a tooth for a for a club....fuck the elite owned bitch ass police...

oldman's picture

Time for the do-nothing dudes                 om