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Portugal To Slash Government Spending

From a highly annoyed Reuters:

Members of the civil servants’ union wear jackets that read: "No to pension thieves" (L) and "No to wage freeze" in front of a social security office in Lisbon March 4, 2010.

Portugal follows Greece down austerity path

By Sergio Goncalves And Marcin Grajewski Mon Mar 8

LISBON/BRUSSELS (Reuters) – Portugal became the latest euro zone country to announce austerity measures to rein in a ballooning budget deficit as bond markets eased pressure on debt-stricken Greece on Monday after a French pledge of EU help.

The European Commission said it was prepared to propose the creation of an IMF-style European Monetary Fund to cope with future debt crises in the euro zone.

EU sources said EU finance ministers would discuss ways to dampen speculation in the sovereign credit default swaps market at their next meeting on March 16. Hedge funds have been accused of aggravating the Greek debt crisis by so-called "naked short selling" — betting on a default on the CDS market without owning Greek bonds, hence forcing up Athens’ borrowing costs.

Note the conspicuous absence of any mention of Mr. George Soros, who is one of the primary hedge fund players in Greece currently being investigated by the US Department of Justice.

Portugal unveiled plans to cut its deficit to 2.8 percent of gross domestic product in 2013 from 8.3 percent this year by trimming spending on civil servants and public investment, and raising taxes on high incomes and stock market gains.

The program is seen as the key to convincing markets that Portugal will tackle its high deficit and debt after coming under scrutiny by investors fearing it may be next in line to have Greek-style fiscal problems.

Under the plan, Portugal’s public debt would peak at 90.1 percent of GDP in 2012 and fall thereafter. Greece’s debt is set to reach 125 percent of GDP this year

For comparison, the US debt is currently 94.27% of our GDP.

But will we cut our spending on civil servants and public investment?

Of course not.

This article was posted by Steve on Monday, March 8th, 2010. Comments are currently closed.

5 Responses to “Portugal To Slash Government Spending”

  1. proreason says:

    I wouldn’t ordinarilly wish the people of Greece and Portugal (or Ireland) any harm, but in this case I must say that if one of those countries officially goes under, then it might wake up some more people in the US to the disaster we are facing.

    Readers of this site know that dozens of countries have failed in the past with dire consequences, but our shortattentionspan general public has a zombie-like belief that saviours like our satanic kinglette can somehow make the laws of commen sense disappear under the walnut shell.

    Maybe a taste of economic jolt cola will wake up a few more citizens so that we can bring out the guillotines for the criminals in washington and their enablers and co-conspirators in the Goldman Sachs brotherhood.

    • Rusty Shackleford says:

      pro, I’ve been seeing some folks waking up. It’s slow and may be too slow, but those who can still think are realizing that massive spending with no results shown or negative results further going negative means only one thing. “Stimulus non-apparatus”.

      If Michael (I’m not fat, really) Moore can see the obvious failures of this administration, regardless of how it has occurred, then using him as a baseline for the ultimate idiot from which all intelligence is measured from (In other words, he’s at base ZERO) then there are millions with working brain cells who know, or are coming to know what’s happening.

      Of course, the year that I’ve been haunting this blog, I have noted that all posters here are acutely aware of the problem and that gives me some measure of hope and confidence. Reason and common sense MUST prevail over emotionalism. The liberals never realize that it’s not the conservatives making decisions because we don’t have any feelings but that we agonize over the decisions we make because we do have feelings. That’s called “making the tough decision”. And I dare say it but if we were in the midst of WWII right this very minute, we’d lose our ass because we wouldn’t want to offend anyone.

      70 years. One HUGE difference. It helped to destroy Rome, by the way. (just sayin’)

  2. GetBackJack says:

    Pro – I completely agree with your reasoning. But … I think you’re not coloring outside the lines far enough.

    “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” 
John Maynard Keynes – The Economic Consequences of the Peace (1919)

    This is all meant to do precisely what’s going on right in front of us. Kill our currency. Kill ALL extant currencies. IMO.

    I was employed as a consultant sporadically by a gentleman in the early 80s. His training in international finance was a God-send to my education. His informal training was to debauch currencies in countries hostile to American policies. We never spoke of his employer. But what I learned from him was beyond eye-opening. Combined with the second great level of financial education I received at the severe tutelage of a Lloyds’ partner, and then from a rather unique trader in the City of London I say to you … you’re not coloring far enough outside the lines.

    There’s been a concerted, concentrated and relentless effort to take the Federal Reserve model global and concentrate it into ONE institution. Many of the conflicts, struggles, political maneuvers and assorted headlines we’ve read over the past several decades really trace back to powerful cliques maneuvering to get in on as much of this new currency issuing mechanism as possible.

    To me, much of the power-struggles in the daily headlines make sense once viewed though the prism of deck chairs being arranged for (a) destroying all current currencies and (b) getting in on the ground floor of the pyramid scheme of the new one world currency to be revealed. Since I knew men who were struggling to be in this tent rather than relegated to being outside that tent, headlines have a different aura to me.

    But the Plan can only mature after the frog has been thoroughly boiled.

    In other words, it makes sense that first the middle men have to be taken out … the “other” central banks and currencies. They have to kill the Pound Sterling, the US Dollar, the German Deutschmark, etc … the standards of world financial stability and as far as I can analyze, the only way to do that is to offer them rope.

    Keep shoveling easy credit out the door until the nations choke to death on their own extravagance. Then and only then (as Iceland is finding out) can ‘they’ yank the rope taut and get’em all in one fell swoop. Or, as Keynes said …

    “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” 
John Maynard Keynes – The Economic Consequences of the Peace (1919)

    • proreason says:

      GBJ, I’m not far away from where you are at.

      Two years ago I was mildly contemptuous of the One-World and Bilderberger conspiracy theorists, and I’m still sceptical that there is as formal a group as the Bildenberger’s that exercises any real power, but the events of 2008 and later have convinced me that whoever is behind it, the events ain’t random and they ain’t moving in the direction of more freedom.

      I don’t know enough about the things you describe to say yay or nay, but I have learned that Goldman Sachs, as an example, has been involved in every financial crisis in the last centruy, and come out on top every time. And you are probably bored by now with my views on the events of Sep-Oct 2008. And anybody looking at Europe and the Green/Global Warming scams has to be awfully naive to not see a new ruling elite determined to make themselves immune from the politics of the post 1776 world. And there sure does seem to be a similarty among Fascism, Communism, Socialism, Statism, and Monarchism…..which is that the guys on top get everything, and we get nothing.

      So I now see events through an us vs them prism. I believe they think that the United States is the thing that stands in their way. Too much freedom. Too many uncontrollable cowboys. Too long of a tradition of self-reliance. The US has to go. And they intend to shoot it.

      The other major set of factors that make me believe this is the utter stupidity of the things they are trying to shove down our throat. From socialism to health care, from Crap and Tax to the Fairness Doctrine, it’s so plainly obvious that civilization will be set back by hundreds of years, that I simply can’t believe that they don’t know it. They know. But they don’t care, because in their plan, they all live like royalty. We live like serfs, because serfs never rebel.

      And the reason so much of the activities are so murky and there is so much blatant propaganda associated with the schemes is that these statists are a tiny tiny minority of people on the planet. They have virtually unlimitted financial resources, but if the truth is ever plainly known, there is no amount of money that can save their asses. That’s also why they love Marxism so much. It’s the perfect cover for their ambitions. And that’s why you thoughts about the currency ring true to me. It’s a method of bringing down a country in a way that is nearly impossible to prove.

      Now, radical Islam. Totally separate, imho. Those nutters are even more dangerous than the statists. When they say devine right, they aren’t talking about personal greed, they are talking about a pipeline to the diety. At the top, they are no different than the greed engorged Bilderbergers, but at the next levels they are inflamed with religious fervor. Those guys will end civilization entirely if they get their hands on nukes.

  3. GetBackJack says:

    I appreciate my remarks weren’t cause for disbelief. The things I saw around ‘Wall Street’, the people I met when moving out of the mainstream of finance; and the education I got from being in proximity to such things was an education that can’t be obtained through ‘normal’ channels.

    An example … I had occasion the summer of 1979 to be in Nashville out on Hickory Lake on the back deck of a man who used to do the Eugene Hasenfuss for agencies of the federal government. He’d toted a gun for Howard Hughes when Hughes was in the Bahamas, and I learned later from a Name C&W figure he was (at the time I was in Nashville), drug runner to the stars in that part of the world. In retrospect seems about right but at the time I did not know. A friend of a friend. We’re having an adult beverage, chatting about where to find funding for this and that when he asks if I would like, personally, to flip $100 grand in a matter of 60 days into $500g. “Sure, whatcha got?”

    Mind you, this is summer of 1979. “There’s a hot little war brewing in Central America,” he says, “and so many many people need guns. We can make a small fortune quick if I can front $100g to these guys down in Arkansas who’ve got a little airstrip nobody knows about. They’re taking weapons and ammo down and bringing cocaine back. I can get in on that if I had a 100 to play with.”

    The hell you say. I didn’t, and wouldn’t, but politely. Imagine my jaw when later I learned of Mena. Operating in the financial realms outside the mainstream put me in places and with people who did things ‘differently’. Not illegally. Just different. And it was there … that I got an education. It’s how I met the Lloyds partner and got introductions into the City.

    Bilderbergers and the rest are cut-outs. Hand puppets to keep the players amused who think they’re players.

    Islam is being used as a cudgel to beat the West with. In reality Islam is a goat-cluster that couldn’t organize a phone call. But they’re getting radically potent help. Those aren’t dummies at the head of Islam, and they’ve been to the best of the best schools and with our gas-pump monies fueling their madness they look dangerous as hell, and are. The fact that they have OUR MONEY ought to be a significant clue who’s helping them. We have our own oil supplies, more resources than they do, but every time you stick a gas pump in your car you’re funding the terrorism aimed at us … and that can’t happen without significant Congressional help making our resources off limits.

    But … their real gambit is participating with some very very evil secular forces to crush Western financial strength. In the ensuing crash, they have their Plans ready to unleash a real currency. The e-Dinar. Transnational, transparent, encrypted, fungible, digital, fully backed at par with precious metals. The last time such a currency existed the wealth and brains of Europe FLED to its protection. That was America, when we had a real currency. Islam and the e-Dinar are being readied but not entirely by Islam. Those REALLY pulling the strings are those who gave Islam the go-ahead to wage Jihad on the West. This terror-thing we face is much bigger than Islam. It’s pure flat out Biblical evil and all on the side of that evil find common cause against us.

    That said … no one ever asks how Dubai, Abu Dabi, Qatar et al are managing to create these vast new cities, super modern developments and stupendous achievements in building what looks like a new Atlantis … in a totally Islamic culture. I’ve read the clap trap explanations that the Emirs have chosen tourism as their new economic model but that’s beyond laughable. Tourism? To a sand-hell of 120 degrees, vicious insects, shark infested hot tub temperature waters? Who’re we kidding?

    And yet the place is growing like a tumor on steroids. SOMEBODY’s moving there like it’s a stampede.

    No … what’s going on there and what should be everyone’s clue is radical changes to their banking laws, laundering laws, and changes protecting property and equity. Move there, bring your money and voila! Instant protection. What the Swiss used to be, the Caymans used to be … etc.

    Islam doesn’t care about ‘winning’ this war of terror. What they care about is stringing out the American and allied military over enough years in enough moderately vicious conflicts that we wear down and run out of money and interest. The USA cannot pull the dead weight of 94% debt against our GDP AND continue to fund the military protectionism we offer around the world. Our economy is strong, but it ain’t strong enough to haul everything Congress wants it to carry. Crushing the dollar is the goal. This is how you do it. Cui bono ought to be the question. Islam knows this, and with the help of those sinister forces angling to break our bank and ruin the dollar …. Islam becomes the willing cudgel that beats us to death, financially.

    Because neither Congress nor our Presidents have the stones to win. And winning, in this war, means rooting out the very scion families who control Washington and who are angling to control the world. Killing all their hired hands and running all their allies to ground.

    And that … ain’t gonna happen.

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