Friday, 2 March 2012

The fiscal devaluation keeps coming back..

Here is a nice piece on it, following the French government announcement that they will do one. In a more modest scale, Ireland has also done it. Portugal, where this measure was first discussed and seriously considered as a response to the crisis, seems less likely every day to ever do it.


  1. Good afternon

    Why in Portugal gas companys cut of supply to residential homes when a family is struggeling to survive

    This is a human right issue

    Why arnt the gas companies sued for endangering peoples lives.

    Mark Evans


  2. seems or ..are less likely to experience....

    é que every day to ever do it....fica assis a modos que...felizmente 90% do ensino e da comunicação escrita (transferência de in deformação escrita)é por Power Point

  3. Alright Portugal, your turn!

    Step 1) Take whatever $$ is left from your latest loan and buy as much physical gold as you can, on the open market if necessary. That's going to be your backup PLAN-B. But now onto PLAN-A :

    Step 2) Default on ***100% of your debts*** with troika. Don't be a fool like Greece to killed what was left of its pension funds to write down 50% of the total debt, only to turn around and get more in debt by accepting more loans from troika again, resulting in still having a minimum of 120% debt to GDP ratio in the best case scenario by 2015. More than likely it will be closer to 160%. So default on troika 100% (NOT YOUR NATIONAL PENSION FUNDS!) and let the unhedged CDS fall where they may. Screw Goldman, and tell those European banks that lent you money to get some balls, cuz after all this is capitalism. You make bad investments, you should lose.

    Step 3) Exit the Euro back to the Escudo. Heck, maybe call up Canada, they seem to be entertaining new comers to their currency. This should only be a very short term plan - maybe for a couple of years until you get all computer & government systems ready for the Escudo.

    Step 4) Establish direct currency trading relationships with all the BRICS + Greece + Africa. I.e. Escudos for Yuan

    Step 5) Continue to clean house of all government corruption. End any remaining excessive socialistic practices that cost too much money.

    Step 6) Establish a government run central bank. Let gov print it's own Escudos.

    Step 7) Re-invest into technology corps, service industry and any other promising sectors that Portugal has any significant chance of competing globally.

    Step 8) Nationalize any assets recently privatized by the forceful hand of troika.

    Step 9) Watch your exports, GDP climb back, and unemployment decrease.

    Step 10) For god sakes pay people a decent minimum wage, and give those poor pensioners (I mean the really poor) something to live on!

    Economics can be simple. Why complicate matters?