WE TOLD YOU AND WE TOLD YOU
The Vote in Italy would go AGAINST the Referendum. What does THAT vote MEAN?
Well as all things this large it is complex. Also, the politics have economics. IT was good economics to reform the system in Italy. Now rejecting that reform is bad economics so what will that mean?
Well it MEANS a bunch of complex things. Critical confidence in the financial system for Italy will now crash. What does THAT MEAN. It means this week you will see:
- Potentials for some or all of the following as raw potentials
- The EU will crash
- A run may occur on Italian banks
- Not due to the public which will follow
- But due to large well informed money that will now RUN to protect itself first.
This will start Monday. Politics will be playing catch up now to economics.
Remember policy that is good economics has politics follow economic agenda’s. When economics which have zero tolerance for abuse, lies or mis handling balances occurs, politics must catch up and it may never do so.
So Italian banks are totally bankrupt and on life support. With any major RUN out of Italy from capital flight the banks of Italy will begin to fall. You may see defaults. You may see doors closing. You are going to see markets panic.
The TRUMP Bubble after the election is a FOOLS RALLY. This rally is going to end before Jan 20th as folks see there is no fuel inside such a rally. Year end earnings which we predict will be GOOD but also MIXED will not be enough.
Influenced by the EU volatility that is coming Monday and this week events are going to unfold fast. We anticipate a capital RUN on Italy. Short selling on Italian stocks and banks will crash markets lower in Italy across the board. The ENTIRE EU will be affected.
We anticipate the massive unity of opposition parties that scored such a BIG VICTORY such a HUGE MAJORITY are also united in ITALY EXITING THE EU. So the EXIT EU just won. This is going to pressure Italy to leave the EU. That move will destroy the EU as an institution in anything like you have known it. Knowing this who would not RUN OUT OF THE EU.
With China holding 100’s of billions in the EU can you see them just holding pat? Iran began accepting EU’s for oil versus dollars.Do you see that lasting as a value proposition? Economically? HOW?
The basket of currencies at the IMF with EU and China phony money looks like a joke and makes the IMF a joke.
We warned them.
So you have a crises of the biggest level in decades brewing. A financial self-destruction of Italy. Think of Venezuela with inflation so gigantic it takes back packs full of currency to pay a restaurant bill or a short trip to the market. Today that nation issued new bills as their highest bill was 100 of their currency the new bills are 20,000 notes – which doesn’ t fix anything it is just easier to pay the 100% a quarter inflation – with less than a backpack. Now think of that occurring in ITLAY as it issues its own currency after leaving the EU.
This is not BRIT EXIT with its long global trade its robust economics and its sterling pound a back bone real currency of the world. Why is the POUND not CHINA in the IMF mix?
The EU? But the EU breaking apart has distrust of the EU now flowing to all nations. THEY KNOW IT IS GOING TO BREAK UP. Who holds EU’s then?
So the problem is complex and just now unfolding. We told you this was going to happen. We are so sorry for the people of Italy. Their DEBT BUBBLE is so high their banks are so bankrupt that now with capital flight we see contagion and super crash as a consequence into the future. We will be watching for you.
Watch Italy this week and the EU.
Berny Dohrmann – Preparing CEO SPACE Orlando Dec 13th – see our blog on it
— December 5, 2016