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While Everyone Is Making Fun Of The Slovak Republic....

Tyler Durden's picture




 

From Peter Tchir

It seems like the Slovak Republic will agree to the current plan.  It seems like some politicians have decided that getting a general election and a chance to be in charge and have power is worth selling out what they believe in.

In the meantime, with the current structure the Slovak Republic, as small as it is, has an equal vote on some items.  Anything that is unanimous requires them to vote.  People are already downplaying any potential "NO" vote as something the other member countries would just step up and assume the Slovak's portion.  Sure, but what happened to the integrity of the Euro?  Isn't this someone starting the process of leaving the Euro?  I wouldn't dismiss the implications too quickly.  It certainly makes dreams of Eurobonds look plain silly. 

The Slovak Republic has 63 billion Eur of GDP with debt of 29 billion.  That is only 46% debt to GDP, but they are only rated A1/A+ with S&P having them on positive outlook.  Their credit has been on an upward trend.  It was A3 back in 2004 with Moody's and has been steadily clawing its way up.  It got their by being fiscally prudent.  It hasn't seen credit improvement by taking on debt obligations willy nilly.   Its EFSF guarantee commitment is 7.8 billion euro.  That is just over 10% of GDP, which as the high end, but it is 27% of its current debt outstanding.  That is a staggering amount of money.  If this country had wanted to raise 5 billion and spend it on itself, the quality of life would be much higher.  With just of 5 million people, that is about 1,000 euro per person that they are using to support countries that have more benefits than they provide their own citizens.  People can pooh-pooh what is going on in Slovakia.  They can make fun of how the whole world is focused on this little country, but they are wrong to.  This country, like Finland, is being dragged into something they don't want to do.  They are going into debt to provide money to countries who spend more per citizen than they do.  Shouldn't they be spending that money on themselves?  Taking on debt to help someone else when they have survived by being responsible makes no sense to a lot of people there.  They have a nice 2015 bond that trades about 3%.  Not great like the best countries in the Eurozone, but sustainable.  Will their commitments start impacting their own ability to raise money? 

I am sure there are backroom deals being made, promises that they will never have to make good on their guarantees, but regardless of the outcome of this particular vote, the mood and tone here should give a good indication that any Grand plan will have to be paid for almost entirely by Germany and France.  And let's not forget, this vote, which the world is closely watching, is to approve something that is already obsolete and ineffective.

 

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Tue, 10/11/2011 - 11:40 | 1761054 zorba THE GREEK
zorba THE GREEK's picture

Slovakia; The mouse that roared.

Tue, 10/11/2011 - 11:45 | 1761080 Falcon15
Falcon15's picture

Slovakia - the fart in the windstorm.

Tue, 10/11/2011 - 11:52 | 1761105 dwdollar
dwdollar's picture

"With just of 5 million people, that is about 1,000 euro per person that they are using to support countries that have more benefits than they provide their own citizens."

This should be in bold.

"With just of 5 million people, that is about 1,000 euro per person that they are using to support countries that have more benefits than they provide their own citizens."

Tue, 10/11/2011 - 11:54 | 1761113 Smithovsky
Smithovsky's picture

But they can sleep safe knowing that it will all be paid back.  Every cent of it.  With interest.

/sarc

Tue, 10/11/2011 - 14:04 | 1761784 Mountainview
Mountainview's picture

An average Slovak is worse of than an average Greek! Why should he help?

Tue, 10/11/2011 - 15:29 | 1762125 Western
Western's picture

I'd go with Zdeno Chara over Pyrros Dimas any day.

Tue, 10/11/2011 - 11:46 | 1761058 Smithovsky
Smithovsky's picture

"It seems like some politicians have decided that getting a general election and a chance to be in charge and have power is worth selling out what they believe in"

Just goes to show that politicians are the same everywhere - complete SCUM who will put their own future ahead of their people's.

Tue, 10/11/2011 - 12:09 | 1761207 s2man
s2man's picture

They need those magnetic ribbons for their cars which read "I support whatever is popular"

Tue, 10/11/2011 - 12:42 | 1761386 Smithovsky
Smithovsky's picture

Or "Will sell own mother and children for votes"

Tue, 10/11/2011 - 11:41 | 1761059 Fips_OnTheSpot
Fips_OnTheSpot's picture

Like the PM-whore said today: "but we want to be a (playing nice) partner!" </wince>

 

Tue, 10/11/2011 - 11:41 | 1761062 wang (not verified)
wang's picture

backroom deals?

oh please

 

Tue, 10/11/2011 - 11:41 | 1761065 Vergeltung
Vergeltung's picture

great points.

Tue, 10/11/2011 - 11:42 | 1761066 belogical
belogical's picture

One by one the politicians of each country are selling their soul. Who would have thought none of them has the least concern for their people.

Tue, 10/11/2011 - 12:19 | 1761258 stopcpdotcom
stopcpdotcom's picture

These bastards don't have souls to sell.

Tue, 10/11/2011 - 11:43 | 1761069 CClarity
CClarity's picture

Why all the giggles over Slovakia?  Greece isn't much bigger and look at how much sway they have had.  West Virginia?  North Dakota?  

In the end there is just too much debt.  Enough said.

Tue, 10/11/2011 - 11:43 | 1761070 carbonmutant
carbonmutant's picture

"Sure, but what happened to the integrity of the Euro?"

What happened to the integrity of he Lisbon treaty?

Tue, 10/11/2011 - 11:58 | 1761133 Dick Darlington
Dick Darlington's picture

There's so much shit on the pages of Lisbon Treaty after all the eurofanatics have wiped their asses on them over and over that noone can't even read it anymore.

Honestly, this is just another example of how the EU-dictatorship works. They have a broken political utopia which they want to preserve no matter what the cost. They want all the powers whether political or economical, concentrated into few unelected elite hands in Brussels. EU/Euro is not for the people, it's for the small business/banking/political elite. Slowly people all over start to wake up for this, now that the easy credit days and housing bubbles are breaking down. The sad thing is that the elite thinks they can make the tax payers pay for every failed banana republic or insolvent megabank but the reality is that they can't. It's their own idiocy that will break up euro and possibly even EU. Only the costs will be astronomicly higher.

Tue, 10/11/2011 - 11:43 | 1761072 GeneMarchbanks
GeneMarchbanks's picture

'It seems like the Slovak Republic will agree to the current plan.  It seems like some politicians have decided that getting a general election and a chance to be in charge and have power is worth selling out what they believe in.'

There are no beliefs. I'll believe whatever for the right price: The World of Politics.

Tue, 10/11/2011 - 11:45 | 1761079 s2man
s2man's picture

Is this microphone working?  Chech, Chech. Slav, Slav.

Tue, 10/11/2011 - 11:47 | 1761090 Falcon15
Falcon15's picture

Is this microphone working?  Chech, Chech. Slave, Slave.

There, fixed it.

Tue, 10/11/2011 - 11:46 | 1761086 Bagbalm
Bagbalm's picture

Maybe they will throw Slovakia right out of the EU into the Briar patch.

 

Tue, 10/11/2011 - 11:47 | 1761091 SeverinSlade
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I find it interesting how the Slovak PM said she will continue to reintroduce the EFSF bill until it passes.

"I will keep cramming it down your throats until you give up on voting against it!" 

Tue, 10/11/2011 - 12:01 | 1761154 Dick Darlington
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That's what EU-dictatorship calls democracy. Sad, isn't it. Just like with the Irish referendum on Lisbon Treaty. EU just made them vote again until they got the result they wanted. It's a fookin disgrace...

Tue, 10/11/2011 - 12:07 | 1761190 nonclaim
nonclaim's picture

A good spanking is the last and best tool to set a child straight. Seems highly recommended in this case.

Tue, 10/11/2011 - 13:13 | 1761568 disabledvet
disabledvet's picture

You sound practiced. Careful...could be a were-child your spanking. Plus there's a full moon coming.

Tue, 10/11/2011 - 11:48 | 1761093 Cone of Uncertainty
Cone of Uncertainty's picture

Slovakia--the red headed step-child of the EU.

 

Tue, 10/11/2011 - 11:49 | 1761095 rajat_bhatia
rajat_bhatia's picture

I live on a mountain top. I teach my kids to hunt. I am safe.

Tue, 10/11/2011 - 11:52 | 1761108 SheepDog-One
SheepDog-One's picture

Teach them about the 'hit save button once' thing.

Tue, 10/11/2011 - 11:49 | 1761096 rajat_bhatia
rajat_bhatia's picture

I live on a mountain top. I teach my kids to hunt. I am safe.

Tue, 10/11/2011 - 12:02 | 1761162 Abitdodgie
Abitdodgie's picture

Don't be so mean maybe he has a stutter.

Tue, 10/11/2011 - 16:59 | 1762767 zorba THE GREEK
zorba THE GREEK's picture

I gave rajat an up vote for every post, just because mountain people may not be tech savvy doesn't

take away from the fact that knowing how to hunt is way more important than knowing how to 

operate a computer. I taught my kids how to fish also. And I taught my kids how to barter and haggle. 

But most beneficially, I taught my children too work hard and that the world doesn't owe them anything.

Tue, 10/11/2011 - 11:49 | 1761097 rajat_bhatia
rajat_bhatia's picture

I live on a mountain top. I teach my kids to hunt. I am safe.

Tue, 10/11/2011 - 11:49 | 1761098 rajat_bhatia
rajat_bhatia's picture

I live on a mountain top. I teach my kids to hunt. I am safe.

Tue, 10/11/2011 - 11:52 | 1761106 Smithovsky
Smithovsky's picture

We got it after the first three times.

Tue, 10/11/2011 - 11:57 | 1761126 SheepDog-One
SheepDog-One's picture

Predator Drone system, infested with virus.

Tue, 10/11/2011 - 11:56 | 1761120 Abitdodgie
Abitdodgie's picture

I live in North Dakota NOTHING ever happens here.

Tue, 10/11/2011 - 11:56 | 1761123 SheepDog-One
SheepDog-One's picture

The EFSF is just a plan to chain the entire Eurozone together as 1, so it can be efficiently taken down as 1. Basically the very last step in preparing to implode the Western World at once. All else is irrelevant chatter. 

Tue, 10/11/2011 - 12:55 | 1761465 BandGap
BandGap's picture

Yes, it must be simultaneous because too much chaos cannot be controlled. The EFSF is the tie that binds.  All for one and all that.

I live in a rural area and know how to hunt, as do my kids.  We will watch with great interest as the world unfolds.

Tue, 10/11/2011 - 13:24 | 1761612 dracos_ghost
dracos_ghost's picture

In Soviet EU, EFSF passes you.

Tue, 10/11/2011 - 12:01 | 1761150 P the P
P the P's picture

Funny how you can vote 'No' as much as you like, but vote 'Yes' just the onvce and you're snared.  This is a very thoughtful piece and I hope that Slovakia votes 'NO' fo as long as it takes. 

Tue, 10/11/2011 - 12:01 | 1761155 socratesplus
socratesplus's picture

passing esfs will cost the slovak PM her job....hmmm, i wonder if angela is taking note...

Tue, 10/11/2011 - 12:04 | 1761177 Dr. Engali
Dr. Engali's picture

No country wants the blame to be placed on them when this thing melts dwn so the will all vote lockstep together. 

Tue, 10/11/2011 - 13:13 | 1761570 SheepDog-One
SheepDog-One's picture

Thats all, musical hand granades.

Tue, 10/11/2011 - 13:26 | 1761620 Curtis LeMay
Curtis LeMay's picture

Meanwhile, back in the land of the non-msm/one-world-government reality:

Standard & Poor's on Tuesday downgraded a key measure of risk for Spain's banking sector warning that the economic crisis will continue to have a negative impact on Spanish banks .

http://www.reuters.com/article/2011/10/11/us-spain-banks-sandp-idUSTRE79A4TH20111011

= = = = =

LOL! Espana has more empty new houses, condos and apartments than the US - a country with SIX times as many people...

No doubt this would be a "good time to buy real estate in Spain", according to the Brussels Politburo, eh? :o)


Tue, 10/11/2011 - 13:43 | 1761700 PulauHantu29
PulauHantu29's picture

Politicians there won;t suffer...the pain showers down below while the top politicans go to IMF socials and WB parties.

Few gubberments represent their citizens anymore from what I read. In fact, this should be one of th emain themes of OWS since just about every Dem and Rep I know feels this way. It is a bipartisan belief outside DC and Wall Street.

Tue, 10/11/2011 - 13:52 | 1761735 Nobody For President
Nobody For President's picture

The Slovak Republic is living proof that no good deed goes unpunished.

They emerge a new country coming out of a vicious civil/ethnic war, bust their chops and undergo real austerity to get on the road to reasonable fiscal health, and get to join the EZ! 

And how did that work out for them?

Their politicians get 'forced' to hand over dough they barely have to support the party countries who have, uhem, 'overspent'. and continue to overspend.

Too bad the integrity of their politics do not match the integrity of their people who have sacrificed much this last decade.

Tue, 10/11/2011 - 17:03 | 1762799 zorba THE GREEK
zorba THE GREEK's picture

There's nothing I can add to what nobody said.

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