As we highlighted a few months back for Spain , the word 'austerity' appears to mean something different than we thought. Portugal just announced:
- *PORTUGAL SAYS JAN.-OCT. SPENDING RISES 0.7% :1174Z PL
and to help cover that anti-austerity 'rise' in spending:
- *PORTUGAL SAYS REVENUE FROM INDIRECT TAXES DROPS 4.5% :1174Z PL
- *PORTUGAL SAYS REVENUE FROM DIRECT TAXES FALLS 3.7% :1174Z PL
Hhhhmm, well at least the deficit reduced modestly thanks to some chicanery transferring pension benefits. We are sure this 'diligent austerity' is why the bonds have rallied 100bps this week and everyone is patting the Portuguese on their back for 'following the Troika program'!