ITALY FIVE STAR – THE EU BREAKER
The world markets are increasingly worried about Italy. Whats all the fuss about? Really?
I wrote you in 2015 and 2016 and 2017 that the Spring Election would be WON by Five Star. I also wrote that the FIVE STAR Populist movement is like Trump in the USA. Change against the in power EU power brokers – status quo – deep state in charge. Five Star now in power in Italy seeks to LEAVE THE EU much like the UK has left only Italy leaving could BREAK UP THE EU economically and start a run of nations out of the EU leaving only debt and a memory.
The EU breaking apart could lead to a global depression and a World War III. These events are always exclusively caused by failed economic policies. Follow the money and educate yourself economically.
Italy FIVE STAR won but not enough to mandate a government in their system. They have to create parliamentary co-elitions with opposition and that is not happening. This weekend the PRESIDENT an EU fan club leader – rejected – which is constitutionally a rarity – the ruling party – FIVE STARS – candidate for economic minister.
Why does THAT MATTER?
Well it matters for these reasons:
- It put FIVE STAR in rage to hold special elections in September in which it may well win decisively.
- It contrasts the parties – from an EU economic minister to a LEAVE THE EU economic minister. Five Star choice.
Why is all THAT IMPORTANT?
Well it is all critically important to the survival of the EU itself. As one of the top tier EU economies – if Italy leaves the EU the EU is a shadow of itself without the UK and Italy. In fact the EU will implode.
We told you the EU was a building built too fast and failing to construct to solid ECONOMIC CODE – and as such the building of the EU is on DEBT FIRE and the builders forgot to put in fire escapes. The EU economically must burn to the ground. Today the EU looks prosperous. But in the EU as with the USA greedy central banks – each private stock firms owned in fact by the banks they regulate – itself an insane idea – are raising interest rates way too fast way too high way too soon – and economically the massive debts that have piled up to drive a very fragile increasingly weak recovery – forged on economic trade imbalances and nation debts that are no longer economically sustainable – preclude TIME to rebalance accounts.
As debtor nations refinance at higher costs – their debt saddle slams the horse itself to the floorboards – the debt creates economic implosion and collapse of nations. Because the debts are now inter-linked with counter party agreements all over the world in bank syndicates – the entire system can debt default CASCADE – a new economic event the world has never known before.
TRADE WAR would accelerate this process.
The largest Debtor nation in the EU is Italy. The EU has almost broken up and gone under with Greece. Greece is 10x less of an issues than Italy. Economically. 10 x’s. Less.
Greece is a nation that when it reached its limit to pay bills on its master card it asked the EU for a larger limit Visa card. When Greece would not pay that Visa bill – at a higher limit – it asked for a Discovery Card with a much higher EU limit. When THAT limit was exceeded Greece asked the EU for a Green American Express Card with a much higher limit. When that bill was maxed out Greece asked for a Black UNLIMITED CREDIT CARD and the EU is considering endless billions into Greece with no hope of having a repayment as the only thing taking place in Greece still spending 167% of its GNP in DEBT to run things – is implosion. Billions upon billions upon billions upon billions the EU did not have are now syndicated ultimately to have EU tax payers – assure banks – who made loans in syndicate and the IMF and the World Bank – are repaid by new money the EU endlessly pours into Greece to keep the nation from bankruptcy – which would bankrupt banks in a chain reaction all over the world.
Now lets consider ITALY. TEN TIMES MORE CREDIT in a SUPER DEBT BUBBLE than Greece. The entire EU can not save Italy. Italy plans to leave the EU and the EU currency and issue its own currency and muddle through within its own policies. One additional problem is the worst aging in the EU is in Italy. Some of its villages have an average age greater than 75. The young work force of Italy has migrated to best jobs and left the home state. Italy over taxed and with policies that stifle entrepreneurialism and job creation the back bone of growth and the way forward – all missing in Italy – combine to make the DEBT SOUP very serious for markets.
The bonds and bond debt market that sovereign’s require to survive is now in a GREAT UNWINDING IN ITALY. Friday 500 billion dollars left the nation. Now there was a required Senator Dirkson who said to his congressional brothers and sisters upon leaving – that his greatest frustration and he put the following on a white board back then…was:
Their failure to understand as a group of 100’s of primary lawyers not economists the single principal that:
A BILLION DOLLARS HERE
AND A BILLION DOLLARS THERE
AND PRETTY DAMN SOON
WE ARE TALKING ABOUT VERY SERIOUS MONEY……..
That concept he felt failed to sink in.
It is worse in the EU and in Italy especially.
Decades upon decades of public policy forged on borrowing – where nations operate in the RED versa in the BLACK with surplus at the end can never end well. China is fueling growth with debt. China borrows 300% more than it earns. This red ink has now gone on for decades. The day of rebalancing economic accounts can bankrupt all financial institutions participating in the debt and no future TARP can save the banks for their bad betting. With nations and with corporations like say Mall owners.
As we end May 2018 Italy can not form a government. Special elections are being suggested for September. Such elections will vastly expand the FIVE STAR LEAVE EU Program. As the Debtor nations leave the EU the EU will be left with insufficiency to service economically. The EU IS A BURNING BUILDING BURNING TO THE GROUND ECONOMICALLY WITH NO FIRE ESCAPES.
Eventually the EU implodes into fiery ashes in the night – great idea but not well thought out enough to survive economically. Also a politically obtuse idea as the EU requires sovereign nation political assurances or imbalances in labor and migration sinks economic planning in nations. As it has now in the EU. So many imbalances too many to reconstruct into economic re-tooling due to SUPER DEBT. Super Debt of Greece Italy Span Portugal and even France is not immune.
Germany stands as a post WOLRD WAR II miracle, due to the Marshal Plan, with its education, will, and black ink and lower debt ratio to other EU nations and the UK saved by their exit from the fire storm that is coming.
FIVE STAR understands the debt and economic issues. FIVE STAR is seeking to reform – and exit the never ending DEBT CONVEYOR BELT the EU is – rising debt to its silo – where control of nations is defaulting to the deep state ( the EU ) who controls the debt. A central banker construction – ultimately the banks illegally created a process to print money for nations – as private firms owned in secret by the shareholders of the central bank who look like government agencies but are only private stock firms – and now the central banks in the EU have gained control of an entire group of nations. By controlling their debt.
The public really has no clue of the economics as they are a) economically illiterate and b) focused by media on political agenda’s versus economic agenda’s – like who screwed who or who is on Me2 next like Morgan Freeman. Who cares frankly compared to all of us …don’t eat when then system melt’s down.
So the slow movement of glaciers comes to my mind. Oh you don’t hear anything in the snow storms. You don’t see anything. No movement. No sound. Pretty soon all the trees fall down and the mountains move and the multi ton boulders are all deposited into the sea. Everything gives way to the glacial path.
Re-balancing economic abuse is like a glacial path. You may miss the sound – the movement – the flow – the fact that everything will be caught up in the TORRENT of SUPER DEBT DEFAULT CASCADING when that river flash floods digitally.
What could start the flash flood.
Ah yes. That is the subject of this blog education.
THE GREAT UNWINDING of the Italian SUPER DEBT bond market is taking place now that Five Star drew their line in the sand – leave the EU and leave their debt obligations in the EU – and failing to form a government since March hold special elections to elevate our powers now before it is too late for Five Star. The deep state and five star are in economic civil wars in Italy.
During this GREAT UNWINDING – Italy debt must refinance every month every week every day in fact.
Now comes the rub.
The market for bonds – debt refinancing is really smart. Really digitally fast. Unlike any prior market.
Italy now unable to extend a confidence of a government with solid known policies on its debt is having a FLASH RUN on the nation. A trillion dollars of capital, investment, bond funding, and more is running, out of Italy. Like a run on a bank with long long lines only the run is Digital and instant and there are no lines. Well there are – those clicking too slowly. Or whose AI is too slow.
The digital AI is punishing Italy. The cost for Italy debt – the cost to refinance its already SUPER DEBTS 10x’s larger than the GREECE Problem with no Black AMEX in sight to bail Italy out from the EU ( now in full blown crises over Italy leaving mounting to a real potential with the UK on its way to the door ) – the market is beginning to bet on Italy out and EU break up.
The COST TO BORROW in the EU for say italy and Spain is rising exponentially. At a time Italy can not pay its bill’s – it is in the red and can not keep going – like Greece – the cost to finance its debts is rising by 100%. A week.
Staggering flows upward in interest rate sink Italy before Five Star begins.
In fact this alone may FORCE ITALY out of the EU to reset its debts and engage its own currency irrespective of the massive inflation sure to follow such moves.
Italy with demographic economic swamps one can not drain outside decades of time, with economic debts that make up those toxic swamps may start a DEBT CONTAGION OF DEFAULTS that ripple all around the world. Span may be next and is watching closely.
At this time with these restrictions on economics imagine now the aspect of TRADE WARS to remove the largest buyer on earth – many times greater than China or any economic – from the table all together – the USA. If you remove the USA as a customer and you remove the USA picking up Italy debt in syndicates – via trade war – I personally do not see a way forward for either the EU or for Italy.
Its early yet but there is no systemic way to mange this SUPER DEBT BUBBLE. Time is required. Central bank policy to raise interest rates over 25 years not 25 MONTHS. As the greedy bankers want profits at any cost they will get those profits shot tterm only to go bankrupt longer term. They believe in risk less risk and nations precluding their bankruptcy.
However in DIGITAL AI economics – the bankruptcy can occur in 72 hours versus 72 weeks as in past markets. 72 hours and the system could lose liquidity – LIQUIDITY EVAPORATION DAY – and nothing can restore that liquidity in a massive global digital DEBT CASCADE.
If 10,000 Super Money pools now entirely controlled by institutional trading via AI non human software getting smarter all the time – and the software perceives risk to a level it switches all orders to SELL SELL SELL and keeps them in SELL – there are no human buyers to offset the AI sell orders. LED DAY. The system freezes.
Worse bank and institutional assets held as performing assets are now in defaulting cascade and margin calls across the world casino capitalism, vaporize credit brought to us by ( thats right ) central banks and free money to save their bankruptcy last time. To allow illegal booking of bad loans as solid assets. If all bad loans were recognized by institutions as bad debts and were not shown on their books are GOOD PERFORMING ASSETS the system would bankrupt today. Over 100 trillion of such bad loans held as good assets is the GRAND DEBT FRAUD that nations engage to keep the system bandaged together. However as greedy banks raise interest rates far too fast – far too high – far too soon – the refinancing of debt from FREE MONEY DAYS to market rate days at the fantastic SUPER DEBT required to save the system last time – lacks enough TIME to work its way out of the SUPER DEBT BUBBLE.
Italy is the point of the spear about to possibly “break out”. THE GREAT BOND UNWINDING IN ITALY would create digital debt default CASCADING world wide.
For this reason markets which are smart are very nervous world wide.
For this reason we are educating you about Italy all over again.
italy has become more important than GREECE and now you know why.
Berny Dohrmann – ON WHAT IS REALLY GOING ON OUT THERE