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111 sats \ 5 replies \ @sb 7 Oct 2023 \ parent \ on: Germany Could Be Losing Its Save Haven Status bitcoin
Let's cheers to that peaceful beer, while watching the international bond market fall off a cliff in the distance :)
It really feels to me like the central banks have played with their fiat monetary system toy one too many times. Of course, I'm sure it felt this way during every major financial crisis. But this time seems different?
Do you know why the bond yields are spreading between Italy and Germany? I understand that Italy has worse debt dynamics, but is that the only reason?
You know, honestly: sometimes I got the impression that Italy is preparing its ''Italexit'' from the Eurosystem. It's reorganising its energy supply for example single-handed.... the bis risk lays in the balance sheets of the german Bundesbank and the banks. This can be deduced by the Target2 system. It sounds crazy but let's wait....
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Italys PM Meloni is very popular as a leader and does have a history of anti-EU sentiment (she encouraged Italy to leave the Euro in 2009). Italy is a county of very diverse groupings (unification is still a dirty word in some quarters) but I suspect it wouldn’t be hard for a right-wing populist to push the country to a referendum; and they seem to average one of those every two years.
The financial problems that beset the country and the migration issue…. point to some very similar positions to those the UK found itself in….
And lest not mention Greece!
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Tsipras clearly was bribed right in time. Salvini also and Maloni in my opinion too
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Yes, let's do that....
Italy announced new public debt of around 3.5-4% this year, sharply rising. It has over 120% debt to GDP ratio, is in recession and face the next wave of migration crisis. AND: its banking sector is extremely weak. Looks like a race to the bottom between them and the others...
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You know, honestly: sometimes I got the impression that Italy is preparing its ''Italexit'' from the Eurosystem. It's reorganising its energy supply for example single-handed.... the bis risk lays in the balance sheets of the german Bundesbank and the banks. This can be deduced by the Target2 system. It sounds crazy but let's wait....
reply