The Quiet Collapse of the Italian Economy

The Quiet Collapse of the Italian Economy


“It is no overstatement that the Italian economy is currently collapsing … the LTRO scheme has also become an instrument for the relatively orderly withdrawal of international investors from Italy, especially French and German, whose share of public debt has fallen from 51% to 35% … signal which goes in the opposite direction of an increased interdependency as would be expected from a monetary union in preparation for a political union … The truth is that the Italian state went bankrupt in summer 2011 … ECB and political authorities in Europe have agreed to create around the country’s finances the appearance of a market, which is in fact, as the numbers above show, largely artificial … investments have collapsed by 27.6% in the five year period, against 12.8% in the interwar depression … the country has lost over 31,000 companies … the borrowing scheme has been engineered with the help of the ECB and the banking sector … taxes … have a depressing effect on the economy, not to mention their unviability in a largely clientelistic, if not openly kleptocratic system … it is not difficult to imagine that, in a few months, despite the new taxes, the sheer collapse of entire sectors of the economy will cause a rapid contraction of tax revenues … Italy will simply run out of options, and it will require additional measures from the EU … some sort of bailout”

Well, the options are only Euro QE or Cyprus scheme banks accounts cleanup, eventually followed by Greek style re-negotiation of debt. If you are in the sectors penalized in Greece (public television, public education, et cetera,) that is ‘the future,’ however as in Greece if you are part of the ‘caste,’ it won’t probably make that much difference, until a revolution or a military coup takes over, like in 1967, this time it may be a lot harder than back then, since parasitism is a rule in the PIIGS zone, I hope I’m wrong, but I would expect a civil war as a result of the PIIGS domino default, unless again the banking mafia decides for QE on the Euro, but I guess they have rather sink like the titanic sipping their brandy in the ballroom, so, good luck.


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