Something to bear in mind whilst reading the next Euro area debt and bailout story is just how much money the PIIGS (Portugal, Ireland, Italy, Greece and Spain) need to meet their funding requirements for the next 4 years.

Taking current debt rollovers and government deficits into account the total required just to stay afloat comes to $2 trillion, summarised below in the table from Zero Hedge :

Whilst the IMF may be able to bankroll Greece, the other four may have to do their own thing as the IMF total bailout capacity is only $700 billion.

Zero Hedge again :

Total PIIGS funding needs (defined as the sum of debt maturities and budget deficits) over the next 3 years amount to $2 trillion. Total PIIGS funding needs in 2010 alone amount to $600 billion. Total IMF bail out capacity: around $700 billion. Sorry – it simply does not compute.

Does not compute indeed.

It gets worse too :

On Tuesday all the PIIGS had essentially entered the unfundable zone as each’s cost of funding surged, meaning the IMF would have to guarantee or bail them all out. We will certainly see this contagion again as the PIIGS now commence spending with unprecedented profligacy, knowing full well they will be bailed out when the time comes.

The only way around this is either everyone goes bust or the IMF raises even more money from its contributing countries meaning that, yet again, we could be in line for another state sponsored shafting.

It will soon be the next 5 generations paying for this rather pointless game of cards unless it all goes tits up in fairly short order which I wouldn’t be at all surprised to see.