Oopso Ouzo, Greece's Budgetary Problems Worse than Initially Reported

By John Galt
December 14, 2011 – 15:30 ET

Cue Greek Music like….

Now burp, then try to digest the truth instead of the ECB and Federal Reserve/Mainstream Media lies and distortions….

“Hole” almost 2.2 billion in Social Security

That story, translated from Google via Prothema.gr spells out the disaster about to hit the Eurozone…

From the translated article:

Indicative of the problem is the fact that so far in 11 months ie by early 2011, the “hole” in the Social Security funds reached 2.177 billion, which translates to a reduction in inflows over 14.5% compared with corresponding period of 2010. Indeed, according to data from the Labor Department, the deficit has not included the subsidize insurance premiums OAED, who led the Foundation to an additional deficit of 1 billion.

Ouch. So they adopted the American model except they forgot about giving up their sovereignty and right to print like insane Weimarians. Well after that story, could it get worse?

Yup.

Translated in the English version from the same Greek online newspaper as the article above:

Threat of bankruptcy with elections in the background

Excerpt:

Papademos' government is now sailing in deep waters. In his evening speech at the conference of the American Hellenic Chamber, and at tomorrow's cabinet meeting, the PM will ascribe responsibilities to his ministers: “We work or we fall!” According to his associates, the government is deadlocked. The reason? ND ministers are washing their hands and PASOK members are involved in the succession race.

Whew, I thought this was getting serious.

Of course, it really is, per recent articles in The Athens News:

Budget deficit widens despite new taxes

All you need to know from this story is in the following excerpt:

The budget gap of the central government widened 5.1 percent year-on-year to 20.52bn euros, according to finance ministry figures for January to November.

This means that the state will likely miss its 2011 deficit targets and may need additional austerity measures to catch up with its budget goals next year.

The country has been consistently missing the deficit targets set by its international lenders under a bailout plan agreed last year, partly due to a deeper-than-expected recession but also because of its own failure to quickly implement reforms and crack down on tax evasion.

Unemployment at record high, seen rising further

The link to the news story above doesn't do the damage justice.

Total persons unemployed in this tiny nation has almost doubled in just over a year:

Think that chart is ugly? Break that out by age:

(charts from the Hellenic Statistical Authority)

Reading that chart does not take rocket science; about 50% of the nation of Greece under the age of 45 is unemployed. The problem with that? That is your primary group of individuals capable of throwing Molotov cocktails or worse in a full blown revolution.

Of course the ECB's “Trokia” has the perfect solution per this story, also from The Athens News:

Debt inspectors tell Greece to axe jobs, wages

Do what? From the insanity of an article:

Greece's debt inspectors have told the troubled country to axe public sector jobs and wage guarantees, after conceding that its austerity program had failed to drastically reduce budget deficits.