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How to Ruin Italy
The Telegraph ^ | 8/1/2011 | Ambrose Evans-Pritchard

Posted on 08/01/2011 1:33:55 PM PDT by bruinbirdman

Italy is the victim of an entirely inappropriate monetary policy.

The country needs ultra-loose money to offset €48bn of fiscal tightening and stave off a bond crisis. Instead it gets this, (from the Banca d’Italia):

Italy’s real M1 deposits have been contracting at a 7pc rate over recent months, and M3 is not far behind. This is catastrophic.

The ECB could prevent such a downward spiral. It chooses not to do so, and is therefore pushing Italy ever closer to the brink. (Yields have fallen slightly today on the relief rally from the US debt deal, but 10-years are still . . . .

(Excerpt) Read more at blogs.telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS:

1 posted on 08/01/2011 1:33:59 PM PDT by bruinbirdman
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To: bruinbirdman

Italy is part of the EU....right? Get the hell out of the EU. Everyone knew it wouldn’t work...........except for the money grabbers.


2 posted on 08/01/2011 1:50:39 PM PDT by RC2
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To: bruinbirdman

It’s all going down, global dominoes.

The only question is how far we drive along this mountain ledge road, and how fast, before we go over.

Time to fuel up the escape pod. Check the parachutes.


3 posted on 08/01/2011 1:55:34 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: bruinbirdman

You’d never know Italy was “close to the brink” by the way they act here. I live in Italy and everyone’s already gone on vacation for the month of August. They don’t seem to be too concerned. Either they’re whistling past the graveyard, or they feel there’s no point in getting worked up about it. I guess they live with this sort of thing every day, every year.


4 posted on 08/01/2011 2:04:04 PM PDT by EURASLEEP (Europe is Crashing and They're Asleep at the Wheel)
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To: EURASLEEP

Hey, in just a couple of months they switched from part of the fascist axis, ally of Nazi Germany, to the “Armistace,” and open welcome of the Allies.

They’ve seen some history, big time.

Why ruin your vacation over the banksters and pols trying to blow up (or save) the global economy?


5 posted on 08/01/2011 2:06:16 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: bruinbirdman

Guess I’m confused. Italy has the 3rd largest public debt and Pritchard is saying they need ultra-loose money? Sounds like they need to do some belt-tightening like us, to me. Am I misunderstanding what he is saying, or is Pritchard a Keynesian?


6 posted on 08/01/2011 2:11:56 PM PDT by OB1kNOb (We are past the end of the beginning and now going into the beginning of the end.)
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To: Travis McGee

I get the sense here that Italians feel that life is that occasional interruption between vacations, eating (well, granted), and partying. I don’t think they care too much about anything else. Thus, they’re stuck with never-ending corrupt politicians, graft, and Mafia. I read somewhere that the Mafia activity here constitutes an estimated 15% of their GDP. Yikes! If they’d fix the politics and Mafia problem, I’d be willing to bet they’d outstrip Germany economically. It’s a shame, really. So much potential...


7 posted on 08/01/2011 2:14:44 PM PDT by EURASLEEP (Europe is Crashing and They're Asleep at the Wheel)
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To: EURASLEEP
It’s a shame, really. So much potential...

Africa has potential, too. Look what they've done with it.

8 posted on 08/01/2011 2:20:22 PM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: OB1kNOb
"Am I misunderstanding what he is saying, or is Pritchard a Keynesian?"

AEP does not favor a crash. IMHO he's telling the socialists (especially the Germans) that if they want socialist union, they better start acting like it. They need to start spreading the wealth around or these PIIGS will crash them all quick.

AEP prefers the socialists to crash slowly so as not to crash the world quickly.

yitbos

9 posted on 08/01/2011 3:01:15 PM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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To: bruinbirdman

Thanks for the insight. I wasn’t sure where he was coming from. James Rickards has started saying this will end up as Germany’s fourth reich, albeit an economic one, in that if they keep bailing all the other countries out, Germany is going to be in a position of influence to tell them when to jump and how high. I find that disturbingly ironic.


10 posted on 08/01/2011 3:23:50 PM PDT by OB1kNOb (We are past the end of the beginning and now going into the beginning of the end.)
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To: EURASLEEP
Yet the Italians seem to escape the worst depredations of crisis with greater aplomb than most. Let the tides of war and economic crisis wash across them again and again, they seem to have a knack for getting the cart back on the road. Perhaps there is something to learn from that.
11 posted on 08/01/2011 3:24:48 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: EURASLEEP
They don’t seem to be too concerned.

I have never made it to Italy, but it appears to be a beautiful country. Really, though, the lack of concern has always been the problem, hasn't it.

12 posted on 08/01/2011 3:50:29 PM PDT by BfloGuy (There is no remedy for the inefficiency of public management. -- L. Von Mises)
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To: Travis McGee
Yet the Italians seem to escape the worst depredations of crisis with greater aplomb than most. Let the tides of war and economic crisis wash across them again and again, they seem to have a knack for getting the cart back on the road. Perhaps there is something to learn from that.

Same stuff the 12 Steps teaches me: Acceptance, which truly translates to lack-of-resistance-to-reality; Concern for others, which truly translates to brotherly love; and Perserverance, which truly translates to durability in the face of adversity.

All roads lead to Rome. You can get the same wisdom from a church, from military training, or -- as I have -- from Recovery.

13 posted on 08/01/2011 4:45:51 PM PDT by Lazamataz (If you pet a tiny goose, you will feel a little down.)
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To: Travis McGee
By the way, as an aside: My experiences in the depths of addiction have made me much more durable. I have experienced what few Americans have, and thusly am a lot less likely to crumble in a Greater Depression. No Depression can possibly be as bad as active addiction.

For that inner core of strength developed, I am truly grateful.

14 posted on 08/01/2011 4:48:17 PM PDT by Lazamataz (If you pet a tiny goose, you will feel a little down.)
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To: EURASLEEP
They don’t seem to be too concerned. Either they’re whistling past the graveyard, or they feel there’s no point in getting worked up about it.

Probably the latter. Why work yourself up over something you are utterly powerless over? Your only power is the power to make choices when something occurs, and for that, asking direction from the God of your understanding will make even those choices, effortless.

15 posted on 08/01/2011 4:50:34 PM PDT by Lazamataz (If you pet a tiny goose, you will feel a little down.)
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To: Travis McGee
Yet the Italians seem to escape the worst depredations of crisis with greater aplomb than most.

Have you ever seen Catch 22? There's a great scene in there with an old Italian man talking to Yossarian about how Italy has indeed already conquered the world. It's funny and thought provoking at the same time.

16 posted on 08/01/2011 4:51:56 PM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Lazamataz

“Probably the latter. Why work yourself up over something you are utterly powerless over? Your only power is the power to make choices when something occurs, and for that, asking direction from the God of your understanding will make even those choices, effortless.”

Laz, that is the most eloquent post I have ever seen from you. Thank you.


17 posted on 08/01/2011 4:55:56 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: combat_boots

It’s not my wisdom. Smarter people than me came up with it.


18 posted on 08/01/2011 4:57:52 PM PDT by Lazamataz (If you pet a tiny goose, you will feel a little down.)
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To: bruinbirdman
I thought this article was going to be about the cast of "Jersey Shore" and their trip to Italy.

Mark

19 posted on 08/01/2011 5:04:28 PM PDT by MarkL (Do I really look like a guy with a plan?)
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To: RC2

this is not about the EU but about the Eurozone — there is a difference. There are many countries in the EU (like the UK) who are not part of the Eurozone.


20 posted on 08/05/2011 3:34:45 AM PDT by Cronos ( W Szczebrzeszynie chrzaszcz brzmi w trzcinie I Szczebrzeszyn z tego slynie.)
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To: EURASLEEP
Italy would carry on -- it's a gorgeous country, especially toscana or umbria, lovely!

They'd just go back to the Lira -- molto facile :-P

21 posted on 08/05/2011 3:35:48 AM PDT by Cronos ( W Szczebrzeszynie chrzaszcz brzmi w trzcinie I Szczebrzeszyn z tego slynie.)
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To: Travis McGee
they changed because they never really felt like being one with the Germans -- temperamentally they never got on with the Germans

William Shirer described it perfectly when he pointed out that for the Italians in WWII, they couldn't have chosen people they hated less --> the upper class in italy were anglophiles and the lower classes loved America

They only had some mild distaste for the French, but once they got back Nice and the other southern parts that were taken from then in 1870, they didn't really want to invade anyone else

In fact just in WWI they got back the Trentino region.

Nah, the Italians didn't fight because they didn't hate us or the English, they didn't even dislike us

22 posted on 08/05/2011 3:38:51 AM PDT by Cronos ( W Szczebrzeszynie chrzaszcz brzmi w trzcinie I Szczebrzeszyn z tego slynie.)
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