Skip to main content

Italian leadership conducting serious debate over both leaving the Euro and the Eurozone

In the U.S., QE and ZIRP policies implemented by the Federal Reserve over the past nine years have resulted in a massive divide between the halves and have nots, and at a disparity not seen since just before the 1929 stock market crash.  In fact, since the central bank chose to backstop the banks and stock markets with tens of trillions of dollars of virtually free money, the wealth redistribution from the Middle Class to the Rich has been the highest in American history.
However the story in the United States pales in comparison to what has occurred for the PIIGS economies of Southern Europe since their central bank went even further by taking interest rates to negative territory.  And because of this, one country has already filed the paperwork to leave the Union and it appears another may be soon be following behind them as Italy debates on whether to leave the Euro currency, or the EU altogether.
The possibility of Italy’s exit from the eurozone has bas been raised in the Italian Parliament, as politicians try to come up with ways to tackle Italy’s spiraling public debt, which reached 132.6 percent of GDP in 2016.
In early July, Italian parliamentarians from the Five Star Movement held a seminar in the Chamber of Deputies to discuss Italy’s economic situation. They discussed the eurozone’s default mechanism, strategies to restructure sovereign debt, parallel payment systems as well as the possibility of leaving the eurozone.
The debate signified the first time that the Italian Parliament discussed the “Italexit” option, a topic which had been “taboo” until recently, the Italian press reported.
Financial expert Marc Friedrich told Sputnik Deutschland that a return to the lira would benefit Italy, which is struggling like never before with record high levels of debt and unemployment.
“The countries of southern Europe would be a lot better off with a sovereign currency than with the euro,” Friedrich said.
“These countries will never see shoots of recovery while they are in the eurozone and the interest rate limitations set by the European Central Bank (ECB). We wrote this as early as 2012 in our first book, ‘Der groesste Raubzug der Geschichte,’ (The Greatest Robbery in History). We see that the euro does not work. That is why I can only emphasize that Alberto Bagnai of the University of Pescara is right.” – Sputnik News
If European countries are left with the choice of being proactive against the dying Euro, or reactionary in simply waiting for it to fail, then that is not really a difficult decision since waiting for the shoe to drop will only mean those first out the door are most protected.  And with the populist movement going on in Europe bringing Italy to the best political situation they will have in decades to make their decision on whether to ditch the Euro or outright leave the Union,  now may be their only chance as it is always better to ride the winds of change than to try to fight them without the ammunition to stand on your own.

Comments

Popular posts from this blog

Duncan Logan just tweeted that he's on board Electroneum

I have been a buyer and holder of bitcoin and Etherreum for a long time but this will be the first ICO I buy into--Duncan Logan.

What is Electroneum?

Electroneum (ETN) is a cryptocurrency that can be mined with a smartphone, requiring almost no technical knowledge or prior experience. This sets it apart from other cryptocurrencies (like Bitcoin) which require expensive hardware and technical know-how to mine.
Electroneum’s unique mobile mining experience allows anyone with a smartphone to earn ETN coins by letting the miner app run in the background.
It was designed specifically with mobile users in mind, thereby appealing to a potential market of 2.2 billion smartphone users around the world. Unlike other cryptocurrencies, Electroneum has a user-friendly, beginner-oriented interface that allows users to seamlessly transfer ETN coins between one another, check their balances, and mine coins.
Being a cryptocurrency, Electroneum is created, held, and spent electronically, and has no phy…

Police Bust Alleged $13 Million Crypto Pyramid Scheme

Police in China's northwestern city of Xi'An have arrested the founders of a claimed nationwide cryptocurrency pyramid scheme that allegedly amassed 86 million yuan ($13 million) from over 13,000 people.
According to a report from local media source Huashang News, Wednesday, the scheme launched in March 28 this year after months in preparation by a primary suspect who has has the surname Zheng, as well as three other accomplices.
The report cited an investigation from the police who said the scheme used a cryptocurrency called Da Tang Coin (DTC) that is linked to DTC Holding - a firm under the suspect's control and registered in Hong Kong - to allegedly hoax potential members of the pyramid scheme.
In various promotional events in multiple cities in the country, the scheme claimed that new members can make 80,000 yuan (roughly $13,000) per day with an initial investment of $480,000 to purchase the DBTC at $0.50 per token, according to the report.
These promises of high r…

Why is bitcoin’s price so high?

Bitcoin’s price has risen stratospherically, a fact that leaves many minor players in the market with massive gains and many bigger players millionaires. But is this a bubble? Are the gains real? And are the bitcoin whales in for a sad Christmas? First we must understand what drives bitcoin price and, in particular, this boom. The common understanding for current growth leads us back to institutional investors preparing for the forthcoming BTC futures exchanges.
The primary theory about the astonishing rally being put forward by investors on social media is that bitcoin will soon benefit from big institutional money injections via the introduction of the first BTC futures products. CBOE Global Markets and CME Group are launching new futures contracts on December 10 and December 17, allowing investors to go long or short on bitcoin. This ability makes bitcoin far more palatable to big investors who are currently flooding the market to make profits if and when the bitcoin price falls.