Only a monetary ‘nuclear bomb’ can save Italy now

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If so, Italy’s public debt will spiral to dangerous levels next year, ever further beyond the point of no return for a country without its own sovereign currency and central bank.

“This is catastrophic for the finances of the country. We’re heading for a debt ratio of 145pc next year,” said Antonio Guglielmi, global strategist for Mediobanca.

“Who knows the maximum number that the market will tolerate? The number is already scary, but for the time being Draghi’s poker game is proving successful, and there is now the smell of QE keep the game going for a bit longer.”

“It is going to take a nuclear bomb to turn this around. If Draghi ends up doing almost nothing – and there is a lot of scepticism about the ECB’s plans – Italy is dead,” he said.

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1 thought on “Only a monetary ‘nuclear bomb’ can save Italy now”

  1. Italy has long been a part of the PIGS outfit. Portugual, Italy, Greece, and Spain are running themselves into the ground with debt.
    The problem is borrowing money only goes so far before a country is bankrupt.
    We have the same problem here with people, politicians, and also bureaucrats authorizing payments way beyond what we can afford today.
    The problem is there is no control of these people.
    What they are all doing should be as illegal as counterfeiters printing money.
    We have huge bills. A lot of those bills are from runaway agencies of government.
    The catch is on the one hand they want to cut into our wallets. They want to reduce things like pensions and Social Security. On the other hand they want to give away money to the world. Our foreign aid program is way out of hand. Our intelligence budget is off the charts. We are sending exploration space ships to Mars?
    How are they reducing pensions? They are lowering the value of what your money will buy with runaway inflation and no interest on the money that you save.
    The banks are gambling like a Texas gambler with no limit on the funds available to them.
    Meantime back at home, the discretionary income of an entire class of working people has been cut almost in half by the Obuma care lies passed by the Congress. There has to be an accounting for lies. If not we are all lost.
    The courts ruled it a tax and FAILED to send it back to the Congress as unconstitutional because it was passed with lies. IT IS NOT A TAX? That is what Congress was told. So how come the courts rule it is a tax and do nothing to send it back to Congress to be revoted on?
    This Congress and past Congresses have been for the rich, by the rich, and have no morals when it comes to stiffing the American Public. That is why all those jobs are overseas and we have lost too much bleeding of our Income Tax from the same source. No jobs means no income for the government to work with. Doesn’t seem to stop the President and the Congress spending like a drunken sailor on leave.
    I suggest an accounting is in order. The next accounting is in November. I say vote all these people out of office at the first opportunity no matter what party they come from originally.
    If they are in office and up for election, vote them out.
    This same kind of revolution has to occur all over the globe. PIGS nationality has to vote these people out of their offices in their countries just as we have to do it here.

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