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Portuguese Government Collapse: Can the EU handle another bailout?
03-24-2011, 01:27 PM #1
JayRodney ⓐⓛⓘⓔⓝ
Posts:30,202 Threads:1,487 Joined:Feb 2011
Quote:Worst fears over a collapse of the current Portuguese government did materialize after Portuguese parliament rejected the government's deficit-cutting plan, leading PM Socrates to submit his resignation. The politician was faithful to his promise to step down after having reiterated in the past he would be unable to run the country unless austerity measures aimed at putting order in the debt-stricken Portuguese finances were approved.

Elections are likely to take place in a few months' time. The setback was a much anticipated outcome since Portugal's opposition parties had been opposed for quite some time to back-up the austerity measures on the ground that these went too far. As expected, all five opposition parties turned their back to the government.

“If parliament decides on a motion against the stability and growth program, that means the government is not in a condition to make commitments internationally,” Socrates said on March 15. “That would mean a political crisis. In my understanding, the consequence of a political crisis is the worsening of the financing risks of our economy and would lead Portugal to request external intervention” Bloomberg quoted.

Even before the news were made public, Portuguese ten-year bond yields had already soared to a euro-era high above 8%, showing the scarcity of confidence on the austerity vote succeeding. “Whenever yields of troubled nations such as Portugal, Ireland, and Greece rise there is a rational that fears are increasing, in turn Euro tends to lose value” explained Andrei Tratseuski, Director of Currency Research at Forex Club.

The Euro fell sharply against the Dollar, breaking past its pre-austerity vote announcement low at 1.4100, and despite bulls emerged quickly to claim higher ground, the price eventually landed at 1.4080 as the vulnerability of the Euro seems to return. The battle now will be between those favouring an ECB rate hike in April (bullish the Euro) and those new comers short the Euro on speculation the seek for a bail-out by Portugal may pose further trouble for EU policymakers.


Been looking for this to happen for a number of months, I'm beginning to wonder if France and Germany has the stomach for this & Ireland is next.
The Euro could very well be on it's way out, no tears except that of corrupt insiders.


Anonymous Kritter Show this Post
03-24-2011, 01:59 PM #2
Anonymous Kritter Incognito Anonymous
real trouble on the horizon for the Euro. Germany and France can not afford another round of this nonsense.
03-24-2011, 02:14 PM #3
Ross Incognito Anonymous
The government collapses. Not the whole country. That means a new government who still will be in denial will be reelected, that means no austerity, more insane deficits and even more bankruptcy.

The end game will be even more people in debt. Portugal's government needs to kick the bankers out of the country before anything can be fixed.
03-24-2011, 02:46 PM #4
Shadow Incognito Anonymous
(03-24-2011, 02:14 PM)Ross Wrote:  The end game will be even more people in debt. Portugal's government needs to kick the bankers out of the country before anything can be fixed.

iagree.gif I doubt it'll happen though, the gov is pwned by the bankers. Be like Ireland where the bankers took all the pension funds as a downpayment for their extortion.
03-24-2011, 02:51 PM #5
JayRodney ⓐⓛⓘⓔⓝ
Posts:30,202 Threads:1,487 Joined:Feb 2011
Kick out the bankers = good move, and I agree. coffeetime.gif Guess what wont happen. 37.gif


03-24-2011, 03:25 PM #6
Octo Mother Superior
Posts:41,346 Threads:1,581 Joined:Feb 2011
Hahaha kick out the bankers lol bozo.gif The Portuguese PM had to step down because he didn't want a bail-out. Either you play with the big boys or you don't play at all.

The EU is going to have some problems finalizing their new bail-out fund coffeetime.gif

Quote:In a separate blow to hopes of delivering a comprehensive response, German Chancellor Angela Merkel has signalled that she wants to row back from the schedule of a commitment to deliver €22 billion via a cash injection to the new permanent bail-out fund. While still on board with the full sum, she now wants to deliver it over a four-year period instead of five years.

At the same time, while agreement has been reached on the size of the permanent bail-out mechanism, due to launch in 2013, a near doubling of the size of lending capacity of the existing framework, the EFSF, from €250 billion to €440 billion is being held up by electoral uncertainty in Finland.

The Nordic country has been gripped by a fit of anti-bail-out populism from a surging hard-right anti-immigrant party, the True Finns, who have leapt to second place in polls ahead of a general election. With the parliament dissolved, the government will not commit to any hike in guarantees for the EFSF until after a new coalition, which will likely include the True Finns, is formed.

EU officials are now saying the decision can wait until June.

03-24-2011, 03:50 PM #7
JayRodney ⓐⓛⓘⓔⓝ
Posts:30,202 Threads:1,487 Joined:Feb 2011
The Portuguese PM's resignation “complicates” the process of securing any potential international rescue package, said William White of the Organization for Economic Cooperation and Development. rofl.gif

“I’m sorry he had to resign, because it’s going to complicate the issue,” White, chairman of the OECD’s Economic and Development Review Committee, said in an interview with Deirdre Bolton on Bloomberg Television’s “Inside Track” today. “If there is going to be funds provided to the Portuguese to ease the adjustment in the context of conditionality, the question is who does the negotiation if there isn’t even a government? That is going to make things a bit tricky.” drinking.gif

Read it all at bloomberg.com

Looks like he bent the system over a bit on the way out. clap.gif Good for him. Things are about to get really complicated on a number of economic fronts.


03-24-2011, 04:25 PM #8
Upāsaka Member
Posts:1,127 Threads:252 Joined:Feb 2011
Big US hedge funds/bankers want to kill the euro. Putting huge pressure on Germany, to say no more bail out for euro countries.

If Portugal is bailed out, expect Spain to be next on the chopping block, but the Spanish economy is just too big too bail out. One would think. Then Italy, who is another member of the PIIGS. So they will all be forced to eat from the IMF & World Bank plate. Probably just in time as the Dollar starts to spiral out of control.

When the World bank/IMF come back with their idea of a new world reserve currency, first backed by a few different world currencies (SDRS) The Special Drawing Right (SDR) is a monetary unit of international reserve assets defined and maintained by the International Monetary Fund (IMF). The unit does not represent a currency, but represents a potential claim on the currencies of the IMF members for which it may be exchanged.[1] Allocations of Special Drawing Rights to IMF members are backed by a fund pooled by contributing nations, and they obtain their reserve asset power from the commitments of the IMF member states to hold and honor them for payment of balances.

Special Drawing Rights were created in 1969 in support of the Bretton Woods system of fixed exchange rates to alleviate the shortage of U.S. dollar and gold reserves in the expansion of international trade.[1] The SDR is defined as a weighted sum of contributions of four major currencies, the euro, the US dollar, the British pound, and the Japanese yen, and is reevaluated and adjusted every five years, and computed daily in terms of equivalent United States dollars. The IMF uses SDRs for its monetary unit of account. SDRs are denoted with the ISO 4217 currency code XDR.

Special Drawing Rights system will be more widely used to try and stabilize world markets. but this in itself will not solve the 'problem' in the eyes of the IMF/World Bank. Eventually the Special Drawing Rights system will be replaced by a one world currency the' bancor'

Quote:Bancor is the name of the supranational currency that John Maynard Keynes was conceptualising in the years 1940-42 and which the United Kingdom proposed to introduce after the Second World War. This newly created supranational currency should then be used in international trade as a unit of account within a multilateral barter clearing system – the International Clearing Union – which would also have to be newly found. The Bancor was to be backed by barter and its value expressed in weight of gold. However, this British proposal of introducing a supranational currency could not prevail against the interests of the United States, which then at the Bretton Woods conference established the U.S. dollars as world key currency.

Since the outbreak of the financial crisis in 2008 Keynes' proposal is winning in importance: In a speech delivered in March 2009 entitled Reform the International Monetary System, Zhou Xiaochuan, the governor of the People's Bank of China called Keynes' bancor approach "farsighted" and proposed the adoption of IMF SDRs as a global reserve currency as a response to the financial crisis of 2007–2010. He argued that a national currency was unsuitable as a global reserve currency because of the Triffin dilemma - the difficulty faced by reserve currency issuers in trying to simultaneously achieve their domestic monetary policy goals and meet other countries' demand for reserve currency.[1][2] A similar analysis can be found in the Report of the United Nation's "Experts on reforms of the international monetary and financial system" [3] as well as in the IMF's study published on April 13, 2010


What the World bank/IMF want they usually get. The fact that they reported publicly on the idea last year, is a sign we are closer to this event happening. The fact that he governor of the People's Bank of China, always seems keen on the idea is another indicator. If the World Economic Power shift is heading east, as it seems to be trending that way. This idea of a one world currency will continue to grow. The Chinese already control a billion people under a one party state. I'm sure the elite globalist are quite jealous of the way China has been able to control their working populace.

JR's post http://kritterbox.com/showthread.php?tid=334 With Soros saying Soros emphasized that point, that this needs to be a global solution, making America one among many. "The rising powers must be present at the creation of this new system in order to ensure that they will be active supporters."

Shows that the wheels are turning on a new paradigm for global markets. The Euro is between a rock and and even bigger rock.
03-24-2011, 04:40 PM #9
JayRodney ⓐⓛⓘⓔⓝ
Posts:30,202 Threads:1,487 Joined:Feb 2011
hi5.gif Excellent post my friend! cheers.gif

Quote:I'm sure the elite globalist are quite jealous of the way China has been able to control their working populace.

Don't think for a second that China isn't the model of all our futures, at least if the current elite thugs have their way. It was set up to be just that, just as Nazi Germany and the Soviet Union were nothing but experiments.


03-24-2011, 05:06 PM #10
Upāsaka Member
Posts:1,127 Threads:252 Joined:Feb 2011

From the wiki link

the Bancor was to be backed by barter and its value expressed in weight of gold. However, this British proposal of introducing a supranational currency could not prevail against the interests of the United States, which then at the Bretton Woods conference established the U.S. dollars as world key currency.

Could not prevail against the interests of the United States, - logically a strong dollar would be the starting block, the basis for a world reserve currency. A world war had devastated the world. But had kept the US economy pretty well intact, infact WWII got the US economy out of long term depression, it suffered since 29'.

It was not the interest's of the United states, but the FED- the private banking cartel whose interests wanted to make the dollar as the world currency. Until it had served its time, which will end soon.[/color]

As the great George Carlin said

The table has tilted folks. The game is rigged and nobody seems to notice. Nobody seems to care. Good honest hard-working people . . . white collar, blue collar it doesn’t matter what color shirt you have on. Good honest hard-working people continue, these are people of modest means . . . continue to elect these rich cocksuckers who don’t give a fuck about you. They don’t give a fuck about you . . . they don’t give a fuck about you. They don’t care about you at all . . . at all . . . at all, and nobody seems to notice. Nobody seems to care. That’s what the owners count on. The fact that Americans will probably remain willfully ignorant of the big red, white and blue dick that’s being jammed up their assholes everyday, because the owners of this country know the truth. It’s called the American Dream cause you have to be asleep, to believe it . .



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