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This post was edited by gork at 2013-7-24 22:34|
Portugal's debt has just blown through the upper limits set by the EU-IMF Troika, reaching to 127.2pc of GDP in the first quarter of 2013.
. . .
Italy's debt has hit 130.3pc -- compared to 123.8pc a year ago --
- Europe's crisis states should fight back with a 'debtors' cartel', Andrew Evans-Pilchard
His name refers to the food of the gods (heaven's pilchard) but his fishy stories merely stink to high heaven.
Notice the switch?
Instead of publishing absolute debt levels, Pilchard cites only debt relative to GDP. He often peddles the half-truth that "growth" (Keynesian deficit spending) is more important than paying down the debt because the denominator (fake growth) decreases, increasing the percentage debt level.
But the alternative is totally unsustainable and the numerator increases FAR FASTER relative to the denominator. In the US and UK, deficits are increasing at about 8% a year (though the US has (amazingly) reduced this year's to about 5%) whilst fake GDP growth induced by this debt is only 2.4% annualised for the UK in Q2 and 0.9% forecast by the IMF for the whole year. For the US Q2 is expected to be 1% annualised.
So, whereas Italy's debt increases by 6.5% according to Pilchard's figures, the UK's debt increases by 7.1%! And unlike Cyprus which levied a 6.75% bail-in only on those with deposits exceeding €100,000, the UK's inflation has stolen at a higher rate and, much nastier, on everyone who hasn't protected themselves with gold including the very poor.
According to Zero Hedge (QBAMCO On Gold And Inflation: "Don't Fight The Fed... Front Run It") the US gained $4.61 of GDP for each dollar of debt between 1947 and 1952. But this had already fallen to 63c for each dollar of debt for '53~'84 and has only gotten worse since. The big boost was the post WW2 boom when the rest of the World's industry had been devastated by the war. This was also Warren Buffett's first decade of high profits when he invested only in US corporations. Only greed has kept the unsustainable dollar hegemony scam going.
So what we're seeing is the US and UK kicking the can down the road for a guaranteed WORSE situation later on, with the US seeming to realise, somewhat late, that the Ponzi scheme cannot go on now that it's debt level has overtaken GDP, but the UK ploughing on into infinity and beyond, suggesting the aim may be sterling parity with the dollar. Both the US and UK have, of course, MUCH larger unfunded liabilities as well but unlike the bond market they can AND ARE GUARANTEED TO default on those.
There have been many propaganda articles trying to deter investment in China and which, according to FDI figures, has already failed. Total system credit in China may be approaching 200%, but in the UK, as Morgan Stanley has pointed out, it is approaching 1,000% and as Doug Noland points out, the US has over 500% total system credit. The UK's commercial banks have 200% in overseas liabilities alone!!!! Clearly, they're trying to avoid a hyperinflationary run on the dollar and even more so on sterling. Japan is only following suit in order to assist the two "criminal states". The UK will very obviously be the first to implode with foreigner, Mark Carney, taking the blame.
Here's some more dealing from the bottom of the deck from Pilchard: The more these economies
deflate wages, the more they raise the real cost of debt.
That's only true for personal debt. For the nation, lower wages mean a lower deficit.