Socio-Economics History Blog

Socio-Economics & History Commentary

CATASTROPHIC Portuguese Economy Hits New Low as Toxic Combination to BRING DOWN Eurozone

http://www.express.co.uk/finance/city/712590/Eurozone-facing-MELTDOWN-as-wrecked-Portuguese-economy-hits-new-low

Click on image for article.

September 21, 2016 Posted by | Economics | , , , , , , | Comments Off on CATASTROPHIC Portuguese Economy Hits New Low as Toxic Combination to BRING DOWN Eurozone

EU Crisis Looms as Greece, Spain And Portugal Pose TRIPLE THREAT for Crumbling Eurozone

http://www.express.co.uk/finance/city/708974/EU-crisis-looms-as-Greece-Spain-and-Portugal-pose-TRIPLE-THREAT-for-crumbling-eurozone

Click on image for article.

September 10, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , | Comments Off on EU Crisis Looms as Greece, Spain And Portugal Pose TRIPLE THREAT for Crumbling Eurozone

The SHOCKING Graph that Proves Portugal is Gaining on Italy in The Economic ‘DOOM LOOP’

Doom-loop-Exposure_of_National_banking_sectors_to_debt_of_their_Govt

  • The SHOCKING Graph that Proves Portugal is Gaining on Italy in The Economic ‘DOOM LOOP’
    by LANA CLEMENTS, http://www.express.co.uk/  
    PORTUGAL’S banks are catching up with Italy in terms of the so-called doom loop measure of fragility.

    Italian banks have been struggling amid billions of pounds worth of bad loans, but it is also heavily exposed to debt issued by the government. Portugal is rapidly getting itself into a similar position, according to Zerohedge.com. Essentially, weak banks and financially weak governments are dragging each other down in the so-called doom loop.

    Portuguese banks have stocked up on government debt over the past two years at speedy rate. And if they continue at the same pace will be in the same position as Italian firms by 2018, found the site. Portugal’s economy is already heavily weighed down by debt at GDP ratio of 129 per cent.

    Zerohedge.com predicts a 15 percent fall in government bond prices could wipe out a whopping 35 per cent of Italian bank cash and 22per cent of Spanish bank capita. 

    read more.

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August 18, 2016 Posted by | Economics | , , , , , , , | Comments Off on The SHOCKING Graph that Proves Portugal is Gaining on Italy in The Economic ‘DOOM LOOP’

First Italy, Now Portuguese Banks “Unexpectedly” Need A Taxpayer Bailout

Portugal_Novo_Banco_2017_bond_price

  • First Italy, Now Portuguese Banks “Unexpectedly” Need A Taxpayer Bailout
    by Tyler Durden, http://www.zerohedge.com
    Last December 30, creditors in Portugal’s Novo Banco received a very unpleasant parting present to 2015: a bail-in, which sent their bonds crashing from just shy of par to barely above worthless. (chart top of post)

    As a reminder, Novo Banco was the “good” bank forged from the ashes of Banco Espirito Santo which had to be bailed out by the state in August of 2014. The idea was to sell Novo Banco to pay for the cost of the bailout, but the auction process eventually floundered amid turmoil in Chinese markets (at least two of the potential bidders were Chinese) and uncertainty about whether this “good” bank would in fact need more capital given the elevated level of NPLs already on its books.

    read more.

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July 26, 2016 Posted by | Economics | , , , , , , , | Comments Off on First Italy, Now Portuguese Banks “Unexpectedly” Need A Taxpayer Bailout

Day of Reckoning for Banks in Italy, Spain, & Portugal Kicked Down the Road (Elegantly) for 18 Months

Mario_Draghi_QE-Europe_collapsing_ECB

  • Day of Reckoning for Banks in Italy, Spain, & Portugal Kicked Down the Road (Elegantly) for 18 Months
    by , http://wolfstreet.com/  
    Past a possibly messy Brexit & elections in France and Germany
    Senior bankers in Spain and Italy can breathe a collective sigh of relief after Europe’s finance and economic ministers decided on Friday to postpone, for at least 18 months, a decision on setting a limit on the government bonds some banks can hold as eligible “risk-free” capital. It was one of four things keeping Spanish senior bankers awake at night. Now, they can sleep a little sounder.


    The initiative, initially proposed by the German government and supported by other fiscally hawkish governments such as Finland and the Netherlands, was intended to limit the purchase of public debt by banks, in order to break the vicious cycle of co-dependence that now exists between sovereign and bank risk.

    If allowed to happen, the move could have posed a very serious threat to the balance sheets of many banks on the Eurozone periphery. According to European Central Bank data, euro-area sovereign bonds accounted for over 10% of banks’ assets in the Eurozone, or €2.73 trillion ($3 trillion), at the end of 2015 — over €300 billion more than at the end of 2014, on the eve of the ECB’s launch of its negative interest rate policy (NIRP).

    This trend is particularly acute in countries like Portugal, Spain, and Italy, where banks’ balance sheets are filled to the gills with bonds of their individual sovereigns — all considered “risk free” for regulatory reporting. Just the merest suggestion of loosening the chains of interdependence between sovereigns and banks was enough to set off shrieks of panic in the halls of government and banking C-suites of Madrid, Rome, and Lisbon.

    read more.
http://www.express.co.uk/finance/city/641080/European-banks-heading-for-collapse-warns-expert

Wakey! Wakey! Global economic, financial and currency crisis may be delayed but it is rapidly approaching. Got physical gold/silver yet? Click on image for article.

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June 20, 2016 Posted by | Economics | , , , , , , , , , | Comments Off on Day of Reckoning for Banks in Italy, Spain, & Portugal Kicked Down the Road (Elegantly) for 18 Months

Will Italian Banks Spark Another Financial Crisis?

http://www.dailymail.co.uk/wires/reuters/article-3408198/Some-Monte-Paschi-customers-withdraw-savings-banks-stock-sinks.html

Click on image for article.

  • Will Italian Banks Spark Another Financial Crisis?
    by http://globalriskinsights.com/  
    … Shares of Italy’s largest financial institutions have plummeted in the opening months of 2016 as piles of bad debt on their balance sheets become too high to ignore.  Amid all of the risks facing EU members in 2016, the risk of contagion from Italy’s troubled banks poses the greatest threat to the world’s already burdened financial system.

    At the core of the issue is the concerning level of Non-Performing Loans (NPL’s) on banks’ books, with estimates ranging from 17% to 21% of total lending.  This amounts to approximately €200 billion of NPL’s, or 12% of Italy’s GDP.  Moreover, in some cases, bad loans make up an alarming 30% of individual banks’ balance sheets.

    The red flags initially attracted the attention of the European Central Bank (ECB), prompting an official inquiry that investors viewed as a flashing ‘sell signal.’  Shares of Italian banking companies lost more than 25% in the first several weeks of the year.

    Though markets have pared losses in the last few weeks, March has brought renewed concern for the health of Italy’s financial sector.  Adding more worries to fuel the fire, on Friday the ECB demanded that one such troubled Italian bank, Banca Carige SpA, provide new strategic plans and additional funding in order to bolster its balance sheet and meet supervisory requirements by the end of the month.  The news sent bank shares on yet another swoon, prompting trading halts on several as the volatility triggered maximum loss ‘circuit breakers.’
    ….
    Italy is no Greece – it’s worse
    Some have compared the risk of an escalating financial crisis in Italy to the seemingly perennial debt crisis in Greece that has ravaged European markets and tested European unity several times since 2008 as investors and EU members alike feared uncontrollable contagion. This has resulted in the multiple EU bail outs granted since then.


    However, judging by the numbers it is clear that the financial risks posed by Italy are not comparable to Greece – they are far worse. While Greece holds the top spot in the EU for the worst debt-to-GDP ratio, Italy comes in second place with a debt-to-GDP ratio greater than 132% according to Eurostat.

    So what makes Italy so much worse?  While Greece has more than once brought the global financial markets to the brink, it is only the 44th largest economy in the world.  Italy represents the 8th largest economy in the world.

    A deteriorating financial crisis in Italy could risk repercussions across the EU exponentially greater than those spurred by Greece.  The ripple effects of market turmoil and the potential for dangerous precedents being set by EU authorities in panicked response to that turmoil, could ignite yet more latent financial vulnerabilities in fragile EU members such as Spain and Portugal.

    read more.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12111265/Is-Italy-the-next-Greece.html

Click on image for article.

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March 8, 2016 Posted by | Economics | , , , , , , , , , | Comments Off on Will Italian Banks Spark Another Financial Crisis?

European Sovereign Risk Soars As Systemic Fears Mount

EU_financial_credit_risk-20160211

  • European Sovereign Risk Soars As Systemic Fears Mount
    by Tyler Durden, http://www.zerohedge.com 
    “Whatever it takes” is not enough, it would appear as the fragility and interconnectedness forced upon the European banking/sovereign finance ponzi has rapidly come home to roost for Draghi and his followers. Peripheral bond risk has flipped from “hold your nose” buys to panic sells with Portugal risk exploding 200bps in the last week. As the European banking system’s credit risk rises 2012-crisis-like, it seems belief in a bigger bazooka is fading fast.

    It’s not just Deutsche Bank…

European_Sovereign_Bond_Risk-20160211

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February 11, 2016 Posted by | Economics | , , , , , | Comments Off on European Sovereign Risk Soars As Systemic Fears Mount

RAW: Three NATO Ships Enter Black Sea as Tensions Between Alliance and Russia Increase

  • Published on Dec 3, 2015
    Three naval ships – from Canada, Spain and Portugal – enter the Black Sea via the Dardanelles Straits as relations between NATO and Russia become tenser.

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December 5, 2015 Posted by | GeoPolitics | , , , , , , , | Comments Off on RAW: Three NATO Ships Enter Black Sea as Tensions Between Alliance and Russia Increase

NATO to Launch Massive War Games on Italian, Spanish, Portuguese Territory

  • Published on Oct 19, 2015
    Dubbed ‘Trident Juncture’, the drills will begin at an airbase in Sicily and will continue on Italian, Spanish and Portuguese territory. The three-week live exercise follows a staff training program that began earlier this month. The exercise is to test out a 5-thousand strong spearhead force that can deploy in less than a week. Nearly 36-thousand soldiers and civilians from nearly 30 countries, including non-NATO member Ukraine, the European Union and the African Union, are expected to take part in the drills. NATO officials have rejected suggestions that the exercise is directed against Russia.

World_War_3 Russia US NATO

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October 21, 2015 Posted by | GeoPolitics | , , , , , , , , , | Comments Off on NATO to Launch Massive War Games on Italian, Spanish, Portuguese Territory

Raw: Pro-Gaza Protests Sweep US, Germany, Portugal & UK !

Anti Zionist Jews burn Zionist Israeli flag!

Anti Zionist Jews burn Zionist Israeli flag!

https://socioecohistory.wordpress.com/2010/05/06/is-the-star-of-david-a-jewish-or-biblical-symbol-or-an-occult-satanic-symbol/

Revelation 2:9 – …. and I know the blasphemy of those who say they are Jews and are not, but are a synagogue of Satan.

August 4, 2014 Posted by | GeoPolitics, Social Trends | , , , , , , , , , , , , , | Comments Off on Raw: Pro-Gaza Protests Sweep US, Germany, Portugal & UK !

Central Bankers Are Now Using The Malaysian Airline False Flag To Start WWIII !

  • Published on Jul 18, 2014
    Get economic collapse news throughout the day visit http://x22report.com

    More news visit http://thepeoplesnewz.com
    Report date: 7.18.2014

    Italy has now slashed growth expectations as Europe heads into a depression. Consumer confidence is imploding. The holding company for failing Portugal bank has declared bankruptcy. Common core has been repealed in Wisconsin. More countries are now obtained non-NATO status to receive military assets for the upcoming war. Allegedly a Russian digital bomb has been placed in the NASDAQ system which is set to bring down the economy. The downing of MH 17 is now being used as a false flag to get WWIII started. The evidence now points to the Ukraine government and the central bankers/US government. They are continually using propaganda to push the agenda of war and the next false flag event.
From: Vintage 'Trees' music video. All humanity forming a pyramid worshipping, welcoming the Satanic capstone! The Anti-Christ, the bringer of false peace, the white horseman of Revelation 6 ! The completion of the New World Order project, in a world wrecked by global wars, collapse and chaos!

From: Vintage ‘Trees’ music video. All humanity forming a pyramid worshipping, welcoming the Satanic capstone! The Anti-Christ, the bringer of false peace, the white horseman of Revelation 6 ! The completion of the New World Order project, in a world wrecked by global wars, collapse and chaos!

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July 19, 2014 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Israel-Hamas War, Portugal Bank Default, Obama Ignores Immigrant Flood !

  • In war propaganda: you always paint yourself as righteous victims reacting defensively to the aggressive actions of the enemies. The idea that Zionist ‘666’ Israel is not the aggressor is NONSENSE! But unfortunately, most people in the west fall for the MSM psyop! Hamas, as anyone who has studied its history knows, is a creation of Zionist Israel! (see videos end of post) It is controlled opposition, so that the Synagogue of Satan can have a pretext to kill the Palestinian people by labelling them as terrorists! Ask yourself this: How does Hamas get so many rockets into Gaza when it is a walled prison, controlled by the IDF? All entries and exits are controlled by the IDF! Hamas manages to get weapons into Gaza because they are allowed (and encouraged) to do so! It is all a Satanic genocidal game!
  • Israel-Hamas War, Portugal Bank Default, Obama Ignores Immigrant Flood! 
    by Greg Hunter’s USAWatchdog.com 
    I warned last week about the kidnapping and murder of three Israelis and revenge killing of a Palestinian teen sparking violence in Israel.  My fear is now been confirmed with Hamas rocket attacks on various targets in Israel.  Israel is making counter attacks that have claimed the lives of dozens in Gaza.  One big development is the rockets that Hamas is using are now more powerful and have up to a 100 mile range.  In 2012, the rockets had only a 50 mile range.  Israel has called up at least 40,000 troops and is getting ready for a ground assault in Gaza against Hamas.  Now, I am worried about a much wider war being sparked in the Middle East.  Does Israel also see a much wider war coming, and is it going to knock out Hamas now?  Another big development:  ISIS, or the Islamic State in Western Iraq and Eastern Syria, has acquired both chemical weapons and nearly 90 pounds of nuclear material.  Is Israel worried about chemical weapons or nuclear material ending up in a Hamas rocket?  I think the answer is clearly yes, and this will get much worse before it gets better.  There are attempts at brokering a cease-fire by President Obama, but I don’t expect that until heavy damage has been done to Hamas’ ability to fire rockets into Tel Aviv.

    In Ukraine, it looks like pro-government forces have the upper hand and have been winning over the pro-Russian separatists.  I do not know how long this is going to last before Russia steps in.  Russia has openly worried that what the Ukraine government might do is the same “ethnic cleansing.”  Top Russian officials have clearly stated it will not allow that to happen.  I think, at some point, Russia will cross the border and put a stop to the killing and the Ukraine army.  It will be a total mismatch.

    Closer to home on the southern U.S. border, illegal aliens continue to cross over by the thousands.  Texas Governor Rick Perry forced a meeting with President Obama that some say he laughed through.  There are photos of the President laughing on one side of a table and Governor Perry and his lieutenants on the other side–not smiling.  Obama wants Congress to give him $3.7 billion in emergency money, and Republicans are balking because they do not trust him to actually close the border.  Perry and others want the border closed ASAP and have asked the President to roll out the National Guard to do it.   President Obama is not budging and is allowing the crisis he caused to fester.  It looks like some sort of perverted negotiating tactic that has some Democrats very worried about the mid-term elections.  I can’t see how this is a winning strategy.  Even African Americans are questioning allowing this flood of illegal immigration.

    On the economic front, Portugal’s largest bank missed a bond payment and defaulted on debt.  You think that does not affect you?  Think again.  The global banking system is interconnected. This default could cause a daisy chain of defaults that could and probably will hit the global banking system.  Gregory Mannarino of TradersChoice.net says the “entire system is malignant” and backed full of sour debt that is “unimaginable.”  He says, “This is Europe’s Lehman Brothers moment that is multiple folds larger.” The default of Lehman caused the 2008 meltdown, and Mannarino says you might want to be taking some money out of your bank.  (Click here to see Mannarino’s entire video.)  It has been widely reported that Europe plans to take depositor money in the next banking crisis, and that will also hit U.S. banks.

    read more!

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July 12, 2014 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Eurozone Banks Face £42bn ‘Capital Black Hole’!

euro_logo_dynamite

  • £42bn looks to be on the ultra low side! Considering they are all adopting ‘Mark to Fantasy’ accounting, £420bn would be closer to the truth!
  • Eurozone banks face £42bn ‘capital black hole’! 
    by Kamal Ahmed, http://www.telegraph.co.uk/ 
    Government adviser Davide Serra says this year’s stress tests by European   authorities are likely to find fresh problems in the eurozone banks.

    Eurozone banks are facing a new capital black hole of as much as €50bn   (£42bn), according to one of the UK’s most respected financial analysts.

    D
    avide Serra, the chief executive of Algebris, who advises the Government on   banking, said that this year’s stress tests by the European Banking   Authority and the European Central Bank were likely to find fresh problems   in the eurozone banks.

    He said that Germany had one of “the worst banking systems in the world” and   that three or four regional Landesbanken were likely to be wound up. He also   said banks in Portugal and Greece were likely to need more capital.

    “The country where I expect bad news is the country which has not been   scrutinised and has been deemed to be the strongest,” Serra said.

    “I expect more bad news coming out of Germany. The strongest German Panzer was   unbeatable, but there is only one problem – they have one of the worst   banking systems in the world. If you are a bright engineer in Germany you   work for BMW or Mercedes, you do not become a banker.

    read more!

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February 11, 2014 Posted by | Economics | , , , , , , , , , | Comments Off on Eurozone Banks Face £42bn ‘Capital Black Hole’!

Eurozone Crisis Over? Not by a Long, Long Way!

euro_logo_dynamite

  • Eurozone crisis over? Not by a long, long way! 
    by , http://www.telegraph.co.uk/ 
    ‘The euro is no longer under existential threat,” Herman Van Rompuy said three weeks ago. “Financial stability has been restored.”

    Van Rompuy, if you can’t place the name, is president of the European Union. That makes him the most senior policymaker in Brussels, wielding considerable power over the governments of 28 countries with a combined population exceeding 500m people.

    Despite this reality, Van Rompuy has a near-zero public profile. He’s probably best known, not only in the UK but across much of western Europe, for being the man who UKIP leader Nigel Farage once described as having “the charisma of a damp rag and the appearance of a low-grade bank clerk”.

    Earlier this summer, Van Rompuy and his fellow eurocrats were purring contentedly. The market turmoil seemed over and sovereign bond yields had eased.

    Those of us still raising concerns about the structural incoherence of imposing monetary union on a group of diverse democracies were, once again, waved away.

    Warnings of a return to the spiking bond markets, and European “crisis diplomacy” of last August and September, were dismissed. “There is no comparison between the situation today and the situation nine months ago, when the euro’s existence was threatened,” declared Van Rompuy in mid-June. “That is no longer the case.”

    Unfortunately, though, it is. Amid events in Cairo, Wimbledon and the recent adventures of someone called Edward Snowden, you may not have noticed, but the eurozone crisis is back. Last week, the resignation of two key ministers in Portugal caused the country’s 10-year government bond yield to spike 150 basis points in just two days, approaching an unsustainable 8pc.

    read more!

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July 8, 2013 Posted by | Economics | , , , , , , , , , | Comments Off on Eurozone Crisis Over? Not by a Long, Long Way!

Portugal: Back In The Penalty Box!

Portugal_map

  • Portugal – Back In The Penalty Box! 
    by Mark J. Grant, author of Out of the Box, via http://www.zerohedge.com/ 
    “Last night, Darth Vader came down from planet Vulcan and told me that if I didn’t take Lorraine out that he’d melt my brain.”  – George McFly

    Mário Alberto Nobre Lopes Soares is a Portuguese politician who served as Prime Minister of Portugal from 1976 to 1978 and from 1983 to 1985. He was then the President of the Republic from 1986 to 1996. He is a senior and well respected statesman and hardly a voice of either the radical left or right.

    Official projections put Portugal’s debt to GDP at more than 124% by the end of this year. Utilizing Europe’s continuing fantasy accounting; this is the number that Portugal and the EU posts for general consumption. However by counting liabilities and using American addition, subtraction and division I come up with a number of about 236%. The problem, as I keep reminding everyone, is that choosing not to count debts does not erase them and so time passed, some of the liabilities came due, and Portugal is on the verge of bankruptcy once again.

    It was March 3, 2011 and the title of Out of the Box was, “Portugal Goes Down.” Then in May 2011 Portugal did bite the dust and received $101 billion in bailout funds. Since then it has bobbed up, devastated its citizens with trying to meet the demands of the European Union and been hailed by both Brussels and Berlin for its imposition of the mandated austerity measures. Today I can assure you; Portugal is going down again.

    Now Mr. Soares, over the weekend, took a different and surprising tact. He has called for all of the opposition parties in Portugal to “bring down” the government. Specifically he said, “In its eagerness to do the bidding of Senhora Merkel, they have sold everything and ruined this country. In two years this government has destroyed Portugal. We absolutely have to end this austerity.” He also said that Portugal will “never be able to pay its debts however much it impoverishes itself. If you can’t pay, the only solution is not to pay.”

    Pretty strong words for this elder statesman! 

    Now in the recent round of easing debt extensions were granted to Ireland and Portugal but Portugal’s was tied to the imposition of further austerity measures. This is just after the Supreme Court in Portugal declared certain austerity measures unconstitutional and blew $1.7 billion of them out the window and out of Portugal’s budget.

    The country was already the poorest in Western Europe, with a minimum wage of $630 a month. Unemployment is the third highest in the Eurozone, with 17.4 per cent of the country out of work and a 37% unemployment rate for people under 25. Quite large tax increases have hit everyone hard, with train prices soaring by 25% and VAT on electricity leaping from 6% to 23%. 

    read more!

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April 17, 2013 Posted by | Economics | , , , , , , , , , | Comments Off on Portugal: Back In The Penalty Box!