Mark Grant Explains The Farce, The Hustle, And The Scam

Submitted by Mark Grant, author of Out of the Box and Onto Wall Street,

“All propaganda has to be popularand has to accommodate itself to the comprehension of the least intelligent ofthose whom it seeks to reach.”

                                                         -He that must not be named

When considering the financial condition of each and every country in the European Union there are certain facts that are left out and left out on purpose. It makes no difference if the methodology is right or wrong but what is not counted is every bit as important as what is counted. In my opinion, the structural deformity of the European Union is, in itself, one of the main reasons that any attempt at a fiscal or economic fix never seems to work. If the problem is not correctly identified then how can a solution for the problem be correctly conceived and then implemented and the answer is that it cannot. For each and every nation in Europe here is what is NOT counted as part of their sovereign debt or included in ANY debt to GDP ratios:

  • Contingent Liabilities
  • Derivatives
  • Sovereign Guaranteed Debt of any Corporation
  • Sovereign Guaranteed Bank Debt
  • Sovereign Guaranteed Regional or Local Debt
  • EU Liabilities that Accrue to each Nation
  • ECB Liabilities that Accrue to each Nation
  • Stabilization Funds Liabilities that Accrue to each Nation

Consequently the difference betweenwhat we are told are the debts of a country and what are the actual debts of acountry is the difference between night and day, light and dark, fantasy andreality. The fact that we are told time and time again that the Italian debt toGDP ratio is 120.1% changes nothing. It is an inaccurate figure, a distortionof the truth, and because it is repeated and repeated and repeated in theheadlines does not make it so. The worse problem may be that with enough repetitionthat those that manufacture the propaganda begin to believe it themselves andthen act upon the nonsense that they have so judiciously concocted. 


  • Italian Official GDP                                                      $1.900trillion



  • Admitted Sovereign Debt                                             $2.445 trillion
  • Loans to the Nation                                                    $   114 billion
  • Admitted Bank Guaranteed Debt                                   $   102 billion
  • Other Sovereign Guaranteed debt                                  $    90 billion
  • Sovereign Derivatives                                                  $   211 billion
  • Total National Debt                                                     $ 2.962 trillion



  • Italy’s Liabilities at the ECB                                         $ 500 billion
  • Italy’s cost for the EU Budget                                       $  19.3 billion
  • Italy’s Liabilities for the Stabilization Funds                    $ 103.6 billion
  • Italy’s Liabilities for the Macro Fin Ass. Fund                   $ 137.9 billion
  • Italy’s Guarantee of the EIB Debt                                  $  71 billion
  • Italy’s Total European Debt                                          $ 831.8 billion
  • Italy’s National and European Debt                                $ 3.794trillion
  • Italy’s Official Debt to GDP Ratio                                  120.1%
  • Italy’s ACTUAL Debt to GDP Ratio                                 200%


The Firewall Lie

Whether some proposed firewall is $760 billion or $1.3 Trillion or $13 Trillion makes no difference as in zero, nada, nothing and null. It is an IOU, a promise to pay and it is not counted in any European sovereign debt numbers nor is it counted in the figures for the European Union’s debt. It will not stop Spain or Portugal or Italy from asking for or needing money. It will not stop contagion nor will it protect any nation from the calamities of another nation. If approved by the Finance Ministers it is not approved by the European Parliaments and even if approved; it accomplishes nothing besides onemore unaccounted for contingent liability that is nowhere to be found on anyone’s books. This whole discussion is a head fake, a deception and a ruse carefully plotted out for investors in one more attempt to mislead the entire world. If you wish to be a statistic in the Greater Fool Theory be my guest but I refuse to be apart of this unadulterated scam.


“I woke, she fled and day brought back my night.”

                                                          -Edgar Allen Poe