<p>Monetary contraction in Portugal has intensified at an alarming pace and is mimicking the pattern seen in Greece before its economy spiralled out of control, raising concerns that the EU summit deal may soon washed over by fast-moving events. </p><span class="Apple-style-span" style="color: rgb(40, 40, 40); font-family: georgia, 'times new roman', times, serif; font-size: 10px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: -webkit-auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; background-color: rgb(255, 255, 255); "><img src="http://i.telegraph.co.uk/multimedia/archive/02039/2810_deposits_2039106a.jpg" alt="Monetary contraction in Portugal has intensified at an alarming pace and is mimicking the pattern seen in Greece before its economy spiralled out of control, raising concerns that the EU summit deal may soon washed over by fast-moving events." style="border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-style: initial; border-color: initial; display: block; " height="288" width="460" /> <div class="artImageExtras" style="font-family: arial; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; "> <div class="ingCaptionCredit" style="padding-top: 2px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; "><span class="caption" style="color: rgb(64, 64, 64); font-size: 1.1em; line-height: 1.38em; margin-top: 0px; margin-right: 5px; margin-bottom: 0px; margin-left: 0px; ">Data released by the European Central Bank show that real M1 deposits in Portugal have fallen at an annualised rate of 21pc over the last six months, buckling violently in September.</span> <br /> </div> </div></span> Data released by the European Central Bank show that real M1 deposits in Portugal have fallen at an annualised rate of 21pc over the past six months, buckling violently in September. The M1 data - cash and current accounts - is watched by experts as a leading indicator for the economy six months to a year ahead. It has been an accurate warning signal for each stage of the crisis since 2007. "Portugal appears to have entered a Grecian vortex and monetary trends have deteriorated sharply in Spain, with a decline of 8.4pc," said Simon Ward, from Henderson Global Investors.
source is AEP article: http://www.telegraph.co.uk/finance/...atened-as-Portugal-enters-Grecian-vortex.html
I think something like 80% of their exports go to Spain, and Spain isn't exactly doing well. I saw that figure a year or so ago, and figured Portugal would be next. I don't see a way out for them at all.
Not to worry mates Nothing that an Trillion euros bailout can't cover Just think of the rally that will follow!
Funny, I'm heading to Lisbon for one of my Techno Shows, end of NOV. SOLD OUT at 50usd. Guess the Techno heads still have money.
Portugal and Greece should ditch the eurozone as quickly as possible. They are drowning in debt. The French/German axis will lend them even more money at the cost of them losing control over their own finances for ever. I remember the referendum on joining the EU. It was portrayed as a beneficial trading area. What a lie. The political schemers have got their own way for years. The trouble is they are 1.so crooked the auditors have refused to sign off the EU's accounts for the past 16 years. 2.so incompetent that they are wasting billions as fast as they can - I mean why do they have to have 2 yes TWO parliaments + support buildings and staff ? 3. The elected members are on huge salaries, perks and pension and they do very little except make more stultifying red tape. Any important decisionse.g. finance are still made by ministers and heads of state. A complete and utter waste of time and money - the EU leaders are too stupid to see that the whole shebang is busted. The countries like Portugal etc were quite alright without the EU and not up to their necks in debt with the Germans calling the shots from Berlin.
I don't understand why the act of joining the Euro has so devastated the GIPSy (I prefer this to PIGS since that is derogatory.) AFAIK, these countries don't export anything other than tourism. Germany on the other hand exports BMWs. France, not sure. It just seems as if a weak Euro would benefit the entire Eurozone. Trichet raised IRs in this environment, or at least leaved them unchanged. That boggles my mind, I guess there must be a reason? Who in their right minds defends against inflation in what is close to a recession if not one already in Europe? Inflation in what? What money chasing too few goods? The new ECB chief Mario Draghi appears to have a different philosophy, and I would not be surprised to see a 100 point basis cut almost immediately, literally on Tuesday: http://articles.economictimes.india...s/30328389_1_mario-draghi-debt-crisis-new-ecb