Former Portuguese Prime Minister Says "Portugal Cannot Pay Its Debts", Calls for "Argentine-Style Default"

It's rare to hear any bit of common sense from political leaders, but today I have a sterling example. Mário Soares, Prime Minister of Portugal from 1976-1978 and 1983-1985, and the 17th President of Portugal from 1986 to 1996 speaks the truth.

Soares says "Portugal Cannot Pay Its Debts". He calls for an "Argentine-Style Default", and states "The desire to please chancellor Merkel is ruining the country."

"Portugal can not pay what you owe and however much they impoverish people, however much they steal the money to people who have it, not be able to pay what you owe. And when you cannot, the only solution is not pay. " The president of Portugal, Mario Soares socialist argues that it is impossible for Portugal to return all of its foreign debt. So has asked to make a Argentine-style default to avoid economic collapse.

"Look at Argentina, was in crisis when he said we do not pay. 'And something happened?" Asks Soares. "No, nothing happened," he says in an interview with Antena 1, which airs tonight and that includes the Business Journal.

Soares, who was also prime minister, has called for the overthrow of the government, has criticized the European Commission president, José Manuel Barroso and launched a series of warnings to the President of the Republic, Cavaco Silva. The former head of state also defended as imperative the change in government and an end to austerity.

"This desire to be useful to Mrs Merkel, are ruining the country and forcing him to sell everything. In two years, this government has destroyed almost everything in Portugal," he says.

For Soares, "any politician with an ounce of common sense when booed-as are the government every day, calling them thieves, should have the dignity to leave. But they cling to power," he concludes.

Sooner or Later

Sooner or later some politician is going to run on that exact platform and be elected. Alternatively, a politician will decide the same thing while in office.

Eurozone math practically guarantees that outcome. For further discussion, please see Eurozone Math; One Size Fits Germany; Door Number Two.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com