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Deckard

Portugal's Prime Minister Discovers 'colossal' Budget Hole

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Portugal's Prime Minister Pedro Passos Coelho discovers 'colossal' budget hole

Portugal's new leader Pedro Passos Coelho has told the nation to brace for further austerity measures after his government discovered a "colossal" €2bn (£1.7bn) hole in the public accounts left by the outgoing Socialists.

Yields on two-year Portuguese debt rose to a fresh record of 20.3pc on Monday, reflecting fears by investors that the country would struggle to pull itself out of downward spiral without some form of debt restructuring.

Mr Passos Coelho also appeared to caution the European authorities that his government will not tolerate heavy-handed interference in the country.

"We want to take part in an ambitious European project and make our contribution so Europe can confront its problems in the most ambitious way, but as prime minister I will not stand by and let Europe govern Portugal," he told a party gathering.

There is growing rancor in Lisbon over the term of the €78bn rescue by the EU and the International Monetary Fund, and the sweeping powers of the inspectors as they impose a "structural adjustment" on the economy.

The penal rate of interest charged by the EU is expected to top 5.5pc and risks trapping the country in debt-deflation. At the same time fiscal austerity, without offsetting monetary stimulus or devaluation, may tip the economy into an even deeper downturn.

Contagion? What contagion? :rolleyes:

Edited by Deckard

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Curiously, I sort of remember the coalition reporting similar things when they came in to power last year, setting up Labout to take the fall for almightly cuts, then for some reason papered over it and muddled on. Am I imagining that or did it really happen?

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Curiously, I sort of remember the coalition reporting similar things when they came in to power last year, setting up Labout to take the fall for almightly cuts, then for some reason papered over it and muddled on. Am I imagining that or did it really happen?

Yes it did

I remember hearing that a note by an outgoing memeber of the treasurey said NO MONEY LEFT.

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Curiously, I sort of remember the coalition reporting similar things when they came in to power last year, setting up Labout to take the fall for almightly cuts, then for some reason papered over it and muddled on. Am I imagining that or did it really happen?

...it happened and there was no papering over ...we are on the edge of the cliff because of Labour ....the only reason we are breathing in the markets is that the investors believe the coalition are doing something about it...no matter how small and difficult it is....the problem could be an early general election which lets Ned's army in to lead us to ruin..... :rolleyes:

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...it happened and there was no papering over ...we are on the edge of the cliff because of Labour ....the only reason we are breathing in the markets is that the investors believe the coalition are doing something about it...no matter how small and difficult it is....the problem could be an early general election which lets Ned's army in to lead us to ruin..... :rolleyes:

Plus I think they don't want to force the govt to think feck it and just hand out billion pound notes to our creditors.

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Back on topic, there is only one solution for Greece, Ireland and Portugal.

cut.gif

The sooner everyone accepts this, the better.

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Back on topic, there is only one solution for Greece, Ireland and Portugal.

[Haircut]

The sooner everyone accepts this, the better.

Don't forget the rinse and (re)set.

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for me, the inverted commas were in the wrong place:

Portugal's Prime Minister Pedro Passos Coelho 'discovers' colossal budget hole

Everytime a Prime Minister / Chancellor / Government is publicly surprised by the financial state of a nation, it is a lie.

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Back on topic, there is only one solution for Greece, Ireland and Portugal.

The sooner everyone accepts this, the better.

Why should Greece, Ireland and Portugal have to take a haircut when it should be the bondholders that suffer for their feckless lending?

Its time the public woke up to the fact that financial sector was run negligently and now has, like any other industry, to face up to the consequences of its actions. :angry:

Edited by Blod

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Why should Greece, Ireland and Portugal have to take a haircut when it should be the bondholders that suffer for their feckless lending?

Its time the public woke up to the fact that financial sector was run negligently and now has, like any other industry, to face up to the consequences of its actions. :angry:

If the PIIGS go pop, I read that the British/French/German pension funds would also go pop.

So the boomers - major voting block, remember - would suddenly be impoverished, and remember it at the next election.

Nah, far better to kick the can down the road, build up more public debt instead and let the next generation/next set of leaders deal with it.

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Portugal's new leader Pedro Passos Coelho has told the nation to brace for further austerity measures after his government discovered a "colossal" €2bn (£1.7bn) hole in the public accounts left by the outgoing Socialists.

"colossal"?

£1.7bn?

That's less that the Whitehall budget for paper clips and coffee! If that's truly "colossal" then when it's the UK's turn to face the wrath of the bond markets... reach for the preparation H...

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If the PIIGS go pop, I read that the British/French/German pension funds would also go pop.

So the boomers - major voting block, remember - would suddenly be impoverished, and remember it at the next election.

Nah, far better to kick the can down the road, build up more public debt instead and let the next generation/next set of leaders deal with it.

They are beginning to wakeup to the truth that the public's pockets aren't deep enough to save them. What we'll begin to see now is a greedy rush to try to protect individual sectors "funds".

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If the PIIGS go pop, I read that the British/French/German pension funds would also go pop.

So the boomers - major voting block, remember - would suddenly be impoverished, and remember it at the next election.

Nah, far better to kick the can down the road, build up more public debt instead and let the next generation/next set of leaders deal with it.

yeah yeah yeah..tanks on the streets if you dont pay the bankers, who, I read, just awarded themselves £14bn in bonuses

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They are beginning to wakeup to the truth that the public's pockets aren't deep enough to save them. What we'll begin to see now is a greedy rush to try to protect individual sectors "funds".

nonsense, the shadow banking system has provided lenders with CDS backed security.

Its entirely risk free for the players and the whole thing zeros out.

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I've seen some shocking haircuts in the Eurozone.

Vokuhila.jpg

Funny, looks like Chris Waddle in his hey day.

Not sure the nation of chavs and Croydon face-lifts should ever start sneering at other nations' fashion sense, to be honest! ;)

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"colossal"?

£1.7bn?

That's less that the Whitehall budget for paper clips and coffee! If that's truly "colossal" then when it's the UK's turn to face the wrath of the bond markets... reach for the preparation H...

+1 . It thats "colossal", what about our £140bn? The late Auberon Waugh commented on the insanity of numbers and governent back in '75

"Big numbers. — A man has complained that his report on teacher’s pay had been attacked for having allocated ‘a mere £4m’ to teachers. The correct figure was £400m. Now I am as much prepared to believe that £400m is hopelessly inadequate for teachers as I would have been to believe that £4m was vastly too much, if that had been the point of the article. The figures themselves add nothing whatever to the argument, unless one happens to be some sort of government actuary. Their only function is as a vehicle for declamatory adjectives — thus, in ‘a paltry £400m’ or ‘a staggering £4m’ only the words ‘paltry’ and ‘staggering’ indicate the significance of the figures.

(The New Statesman 17/1/75)"

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If the PIIGS go pop, I read that the British/French/German pension funds would also go pop.

So the boomers - major voting block, remember - would suddenly be impoverished, and remember it at the next election.

Nah, far better to kick the can down the road, build up more public debt instead and let the next generation/next set of leaders deal with it.

In the UK the gov will bail out the pension holders, making good on the pension promises.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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