Italy

Insider

Off The Cuff: The Last Rescue?

Soon, markets will have to fend for themselves
Saturday, June 9, 2018, 1:09 AM

In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:

  • The Visible Hand Of The Market Manipulators
    • Volatility is (once again) being intentionally throttled
  • Why Italy Matters
    • It has the size and will to destabilize the EU
  • Weakness In The EU Goes Beyond Italy
    • The banks, especially Deutche Bank, are in trouble
  • Can Anyone 'Win' A Trade War?
    • It's debatable. What's not is that everyone gets bloodied.

Chris and Mish address the latest "rescue" of the markets since Italy briefly threatened to destabilize Europe. So, the intervention of the past 8 years is still in play, but for how much longer? With the central banks starting in earnest to shrink their balance sheets (or at least taper their purchasing), these market "saves" will be less possible going forward. Mish, in particular, expects gold to reflect that heightened risk in the coming future.

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Insider

Wikimedia

Off The Cuff: Why Governments Prefer A Currency Crisis To A Debt Crisis

Nothing's as destructive as cascasding debt defaults
Friday, June 1, 2018, 6:09 PM

In this week's Off The Cuff podcast, Chris and Wolf Richter discuss:

  • Panic in Europe
    • Italy is threatening to destabilize the EU
  • Central Banks Have Wrecked The Market Mechanisms
    • And tapering will reveal the damage done
  • What's Better? A Debt Crisis Or A Currency Crisis?
    • It seems governments vastly prefer the latter
  • Is Deutche Bank Threatening To Start A Banking Crisis?
    • Maybe. And it would set the world aflame.

With the action happening in Europe this week, from the Italian debt panic, to the new Spain PM, to Deustche Bank's worsening prospects, Wolf Richter comes on the program to make sense of the developments in real-time.

Notably, Wolf explains why the world's central banks will work with their home governments to destroy their currencies rather than start defaulting on their debts. This is path he expects the future to take:

A debt crisis is devastating, and it's devastating selectively. A currency crisis is kind of more democratic. It hits everybody. But a debt crisis, it hits the people that are recipients of government aid the most. And that's the problem in Greece and other countries, they had to go on austerity. Little bitty pensions were cut and things like that happened to save a few pennies here and there. And when it's a currency crisis, everybody gets hit and it spreads across. And I think they understand that Japan is uniquely equipped to deal with a currency crisis because it has this large trade surplus and because it sits on a pile of foreign exchange reserves. So that won't really blow up the Japanese economy where as a debt crisis would completely implode the economy, and it would wreak havoc among the people from pensioners and aid recipients and the healthcare system and everything would just collapse. And they decided that's not going to happen.

So that's how I think we need to look at what's happening in Japan. They made a decision to prevent a debt crisis. and if they get a currency crisis, fine, they'll manage that. Italy doesn't have that option. Italy doesn't have its own currency, and it can't do that, so it can get a debt crisis. And that's what happened to Greece, and that's what happened to other countries. When they get a debt crisis it's really nasty. I hope Italy can avoid this thing, but debt crises are just the worst, absolutely the worst. But if a government needs to do anything, it's avoid a debt crisis.

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio as well as all of PeakProsperity.com's other premium content.
Insider

Punyaruk Baingern/Shutterstock

Italy Votes No(!)

Et tu, Brute?
Sunday, December 4, 2016, 10:52 PM

The Italian vote delivered the most unsurprising surprise today – another rejection of the elites by the people.

Oh the humanity!

Time for the elites to get out of their echo chambers and find out what life is like for the people laboring under their poorly thought through and inhumane policies. 

Remember, we humans like it better when things are fair and just.  Heck, it goes further than that; primates like it better when things are fair and just. » Read more

Podcast

Alasdair Macleod: Europe is a Hot Mess

Its banks are the weak point in the global financial system
Sunday, July 28, 2013, 10:42 AM

It's almost August, the month everyone in Europe takes off on holiday to forget their troubles. This year may be different, though, as not only can many not afford a vacation, but Europe's troubles loom so large that forgetting them won't be easy... » Read more

Blog

Europe's Precarious Banks Will Determine the Future

Ticking time bombs
Tuesday, June 25, 2013, 5:09 PM

Crying Wolf?

It is easy to get the impression that the naysayers are wrong about Europe. After all of the predictions of Armageddon, ten-year government bond yields for Spain and Italy fell to the 4% level, France (which is retreating into old-fashioned socialism) was able to borrow at about 2%, and one of the best-performing bond investments has been until recently – wait for it – Greek government bonds! Admittedly, bond yields have risen from those lows, but so have they everywhere. It is clear, when one stands back from all the usual euro-rhetoric, that, as a threat to the global financial system, it is a case of "panic over." » Read more

Featured Discussion

A Report From Europe

A Report From Europe

How bad are things there, really? A reader gives a boots-on-the-ground account after a recent trip.

Daily Digest

Image by EpSos.de, Flickr Creative Commons

Daily Digest 5/23 - Big Wind’s Trail Of Wings, Living Buildings For Tomorrow's Cities

Thursday, May 23, 2013, 10:22 AM
  • Gold ETFs Are Liquidating By The Ton
  • Schizophrenic investors expect slump: bet on boom
  • Clients Denied Gold At Major Banks As Shortage Intensifies
  • Thanks To QE Bernanke Has Injected Foreign Banks With Over $1 Trillion In Cash For First Time Ever
  • Gramm and McMillin: The Debt Problem Hasn't Vanished
  • Want to Save the Environment? Build More Cities
  • Republic of Ireland calls for international tax action
  • US Treasury secretary says he has begun tapping federal retiree pension fund to avoid default
  • Millions falling into poverty in recession-racked Italy: report
  • Seven Ways Today's Economy Is Like The NHL Playoffs
  • PBS Killed Wisconsin Uprising Documentary "Citizen Koch" To Appease Koch Brothers
  • Court upholds B.C. mining company’s use of temporary foreign workers from China
  • Big Wind’s trail of wings
  • Living buildings for tomorrow’s cities
  • Food swapping: The movement taking off in the UK
Daily Digest

Image by Leonid Mamchenkov, Flickr Creative Commons

Daily Digest 4/17 - Cyprus Braces For Russian Exodus, Half NYC Workforce On Food Stamps

Wednesday, April 17, 2013, 2:37 PM
  • Ohio’s $500 Billion Oil Dream Fades as Drillers Misjudge: Energy
  • Cyprus braces for Russian cash exodus
  • Italy May Cut $6.6 Billion in Defense Spending This Year
  • Detroit's encroaching blight as seen through Google and Bing maps
  • Smithsonian to close galleries due to budget cuts
  • Three-fold increase in demand for Gold: Jewellers
  • Bailouts push German debt to new record
  • Italy's temporary layoff scheme runs out of cash, sparks protests
  • Almost half of NYC workforce on food stamps
  • Let them eat vegetables: Egypt's wheat farmers hit hard by diesel price hikes
  • South Korea Proposes $15.3 Billion Stimulus Budget
  • EU warns of budget constraints as Cyprus seeks more aid
Daily Digest

Image by sacks08, Flickr Creative Commons

Daily Digest 4/10 - Americans Skipping Meds To Save Money, Italians' Spending Power Crumbles

Wednesday, April 10, 2013, 11:14 AM
  • Blue Angels Grounded by Budget Cuts for Rest of 2013
  • Cyprus Faces Risk of Payments Freeeze, Budget Shortfall Looms
  • Arizona gold bill moving forward
  • Five million households in debt to energy firms
  • Fitch Cuts China Yuan Debt Rating on Local Government Borrowing
  • French economy stalls as budget deficit grows
  • Stately Detroit Homes Rot As Appraisals Stall Sales
  • US homeless numbers expected to rise as spending cuts deepen
  • Italians' spending power crumbles in recession
  • Bass Says Japan Bondholders’ Reaction to Stimulus Telling
  • Interest on government student loans set to double this summer
  • Americans Skipping Prescription Meds To Save Money
Daily Digest

Image by sirqitous, Flickr Creative Commons

Daily Digest 3/20 - Workers Saving Too Little to Retire, Lawmakers Back PMs As Currency

Wednesday, March 20, 2013, 10:39 AM
  • Workers Saving Too Little to Retire
  • Bad debts at Italian banks top 126 bln euros in January
  • Spanish Lenders’ Bad-Loan Ratio Resumed Increase in January
  • Darling: Cyprus savings raid could trigger bank runs across Europe
  • France, Belgium told to count Dexia bailout in deficits
  • Lawmakers back gold, silver as currency
  • National student loan debt triples, Miami average fifth highest in Ohio
  • As crop prices surge, investment firms, farmers vie for land
  • Speed on green cameras paying off
  • Cyprus parliament rejects deposit levy: reports
  • PIMCO reduces exposure to euro in wake of ‘botched’ Cyprus bailout: report
  • National debt jumps $300 billion ytd