Total PIIGS funding needs (defined as the sum of debt maturities and budget deficits) over the next 3 years amount to $2 trillion. Total PIIGS funding needs in 2010 alone amount to $600 billion. Total IMF bail out capacity: around $700 billion. Sorry - it simply does not compute.
Below is a table summarizing the funding needs of just the PIIGS.
On Tuesday all the PIIGS had essentially entered the unfundable zone as each's cost of funding surged, meaning the IMF would have to guarantee or bail them all out. We will certainly see this contagion again as the PIIGS now commence spending with unprecedented profligacy, knowing full well they will be bailed out when the time comes.
So just how equipped is the IMF to deal with this funding requirement?
(snippet)
In case you missed it, the top two countries on the hook to fund the World bailout are the US and Japan, the two countries caught in the greatest deflationary throes since the great depression. Coincidence, or willful dollar(yen)slaughter: you decide. The only solution for world bailout v2: raise the ceiling for the NAB from 500 billion to 5 trillion. That should do miracles for the deflation... But it probably won't.
But stepping back to look at the big picture, in one hand you have $2 trillion, in the other one third of that: which one is heavier? And why does the IMF lie to each and every day when it says it can keep the situation under control. Again - it does not compute. Just keep rolling the Quanto CDS in, Goldman.
More Here..
My current favorite is the Zero Hedge story about the Fed's need to rollover whopping amount of maturing debt by the way of T-bills.
ReplyDeleteI think I see an American sovereign default in the future.
Yes, that was interesting Jesus Freak...
ReplyDeleteAlthough it is perhaps "morbid," I love watching this unfold - well, let me put it this way - I find it very amusing to watch these countries (soon to include the U.S.) do everything in their power to avoid what is inevitable.
The inevitable - they WILL, at some point, HAVE TO seriously cut back government spending (note that intentional inflation will for all intents and purposes lead to the same thing).
It's going to suck for some people, but it WILL happen...at some point...and the farther the can is kicked down the road, the worse it's going to hurt.
Besides, with each kick of the can, we get closer to that cliff at the end of the road.
I love that texans are choking on that oil their master murderer cheneys hack company built, screw texas, secede and get lost jesus fckers
ReplyDeleteHey.
ReplyDeleteRemember the Alamo!
The figt for land and the labor of the peons .
Send state aid to the Texan Heroes while they are still surviving .
What a bunch of morons! First of all, 2:17 Cheney isn't from Texas he is from North Dakota. And 8:32, you fit the template for a lazy worthless "where's my free hand-out, new Cady, new house; who me work" attitude we have had to endure since most of the free loaders who came West are of a criminal record. I tell you all what, we native Texans will through all you worthless POS out of our state, involk Article Ten and you all kiss our rears. We'll see who gets hungry first!
ReplyDeleteHi,
ReplyDeleteW here
Miss me yet ?
hey 611 shouldnt you be out snorting coke or killing someone for doing nothing to you like you did in iraq or afghanistan?
ReplyDeleteWhat has caused this Global Financial Problem? I spent 30 years of my life working at Rockwell International as an Industrial Engineer and I want tell you where I think the real Problem lays.
ReplyDeleteAll of these countries that are on the way to Bankruptcy have one thing in common. They all have large International Trade Deficits. They all have high unemployment and they are buying everything they use from another country instead of providing the jobs to their own people. In other words they are transferring all their country wealth to another country.
They all use the EURO as their Currency and that presents a major problem. When you have all of the European Countries (EU) tied to the same currency and one or two countries are forced into Bankruptcy. Then they could very well pull all of the other countries down too. However, before they joined the EU, each country had its own Currency and when they got into financial problems they could devalue the Currency of that country. That is exactly why the EURO is under pressure and falling fast.
This is exactly what is causing the high unemployment in the USA too. The reason we have escape this fate up until now is that the USA was such a wealthy Country. But, that wealth is dwindling extremely fast, so watch out below.
Trust me these Politicians will end up bankrupting the USA in the end. Then the Super Wealthy can step in and buy everything we own for pennies on the dollar. Most Americans are too stupid to see what is happening to them and so they do not want talk about it.
Well, this is one problem that can only be solved if they do not PULL OUT OF NAFTA and WTO because you can never get out of a DEPRESSION unless you create good high paying jobs for the middle class American workers.
Below are the current European Union Member States.
Germany=$267,100,000,000--2008est.
Netherlands=$47,000,000,000--2008est.
Sweden$35,220,000,000--2008est.
Austria=$10,630,000,000--2008est.
Finland=$10,630,000,000--2008est.
Denmark=$4,333,000,000--2008est.
Belgium=$3,972,000,000--2008est.
Luxembourg=$3,186,000,000--2008est.
___________________________________
$ 382,071,000,000 = Yearly Positive Trade.
===================================
Spain= $-152,500,000,000--2008est.
UK= $-72,540,000,000--2008est.
Italy= $-68,820,000,0002008est.
France= $-47,270,000,000--2008est.
Greece= $-36,260,000,0002008est.
Poland= $-29,510,000,000--2008est.
Romania=$-28,030,000,000—2008est.
Portugal=$-23,970,000,000—2008--est.
Bulgaria=$-12,540,000,000--2008est.
Hungary= $-8,557,000,000--2008est.
IrishRepublic=$-8,621,000,000--2008est.
Lithuania=$-6,775,000,000--2008est.
Czech-Republic=$-6,460,000,000--2008est.
Slovakia=$-5,359,000,000--2008est.
Latvia= $-5,126,000,000--2008est.
Slovenia= $-3,706,000,000--2008est.
Estonia= $-3,037,000,000--2008est.
Cyprus= $-2,609,000,000--2008est.
Malta= $- 538,000,000--2008est.
_________________________________
$-522,228,000,000 = Yearly Negative Trade.
==================================
$-522,228,000,000 = Yearly Negative Trade.
$ 382,071,000,000 = Yearly Positive Trade.
____________________________________
$-140,157,000,000 = Yearly Net Negative Trade.
========================================
The United States with the Largest Annual Negative Trade Balance in the World of:. $ -568,800,000,000 2008 est. Yearly Negative Trade Balance.
The United States is in big trouble and on the way to BANKRUPTCY TOO if they do not Pull out of NAFTA and the WTO soon.
SO MOTE IT BE..