Board index » The IRISH PROPERTY BUBBLE » The Central Bank

Post new topic Reply to topic  [ 361 posts ]  [Go to page]   Previous  1 ... 32, 33, 34, 35, 36, 37  Next
Author Message
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Tue May 29, 2018 11:50 pm 
Offline
Holiday Home Owner

Joined: Sep 9, 2017
Posts: 336
Well the great benevolent one in New York has his plan anyway.
Turns out the problem isn't too much debt across Europe. Predictably enough, it's not enough debt.

Quote:
Billionaire George Soros outlines his plan to save Europe
Billionaire George Soros has outlined a three-point plan to save Europe.
The Hungarian-born philanthropist has claimed the European Union is in an "existential crisis".
Soros has identified the refugee crisis, Brexit, and the impact of austerity as pressing issues.


The Hungarian-born billionaire George Soros has offered a three-point plan in order to preserve the status of the European Union.

Europe's alliance has been under strain as bigger more powerful countries demand that those with struggling economies rein in their spending to reduce debt. This enforced austerity has led to high unemployment in countries such as Greece and Italy. Added to the mix was a migration spike from the Middle East and Africa into many countries that were already struggling in the wake of the financial crisis.

Speaking at the European Council on Foreign Relations annual council meeting Tuesday, Soros said Europe was in "an existential crisis."

He sketched out a plan to fund better education and unemployment in Africa at a cost of 30 billion euros ($34.7 billion) a year. He claimed this would stem those seeking refuge. Soros said the crisis is a European Union one and the financing could be arranged through the EU's "largely unused" borrowing capacity.

Borrowing to fund potential solutions to the migrant crisis leads Soros to address the austerity ethos which he described as a "prevailing addiction" among policymakers.


https://www.cnbc.com/2018/05/29/billionaire-soros-outlines-plan-to-save-europe.html

_________________
“....the power to dream, to rule, to wrestle the earth from fools”


Top
 Profile  
 
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Wed May 30, 2018 12:31 am 
Offline
Nationalised
User avatar

Joined: Apr 1, 2010
Posts: 10874
Some US audio from thestreet.com. Among other interesting insights (at least for economic illiterates like me) is that about 60% of Italy's USD$3tn debt is owned by foreign creditors. That's why bank stocks were being pummeled today, including on the DOW.

_________________
"Prediction is very difficult, especially about the future" – Niels Bohr


Top
 Profile  
 
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Wed May 30, 2018 9:31 am 
Offline
Nationalised

Joined: Nov 6, 2006
Posts: 9011
Location: Hollywood
ASX got hit downunder today too


Top
 Profile  
 
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Wed May 30, 2018 10:29 am 
Offline
Too Big to Fail

Joined: Feb 21, 2008
Posts: 4425
ps200306 wrote:
Some US audio from thestreet.com. Among other interesting insights (at least for economic illiterates like me) is that about 60% of Italy's USD$3tn debt is owned by foreign creditors. That's why bank stocks were being pummeled today, including on the DOW.


Its actually far worse than that given where the debt is stashed away. Most of the Italian sovereign debt seems to be either rated as zero risk rated / as good as cash in many banks Tier capital or else recycled in some form or other by various ECB market operations. So just a rerun of 2008 in many ways with the ECB taking the role of the rating agencies.

Brussels/Berlin/ECB were able to oust the Italian government during the last crises in 2012 but this time around its going to be different. For a start the Germans have just flatly turned down Macrons plans for reforming the Euro. And given the Germans utterly uncompromising attitude which can be summarized as we've got our 250B trade surplus due to a discounted exchange rate so screw everyone else the German have no real allies by this stage. apart from the economic vassals. So no unified front to stare down the Italians this time. The internal political scene in Germany at the moment is utterly bizarre. At best it could be described as a strange brew of ordoliberal isolationism run amok to straight out 2'nd Empire prussian predatory economic triumphalism.

The anger against the euro in Italy is widespread and deep and the general assumption now is not longer if but when. The only thing deferring the final breakup is the inevitable massive financial dislocation that will follow. But its France that is the one to watch. Given the brutally clear reasoning of the top people in Bercy, the french finance ministry, I'd expect them to be planning a post euro future and how to deal with it to Frances advantage. Due to how complete the German rebuff was to the French plan, and it was a very reasonable and pragmatic plan, and how closed minded the Germans were against the slightest meaningful reforms I'd expect to start hearing broad hints in the French press soon about "steps being planned" to defend the integrity of the republic if the situation so demands it. The French will have their financial barricades ready to deploy and the will to use them when the breakup happens.

I think the can that was kicked down the road in 2012 has just hit a brick wall. It will be interesting to see if they can lob it over the wall again like they did in 2012. To gain more time. Or if recent events will prove to be a wall too far.


Top
 Profile  
 
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Wed May 30, 2018 11:19 am 
Offline
Of Systemic Importance

Joined: Sep 13, 2012
Posts: 5469
The Greeks blinked in worse circumstances.

_________________
"It's easy to confuse what is with what ought to be, especially when what is has worked out in your favour"
Tyrion Lannister


Top
 Profile  
 
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Wed May 30, 2018 11:23 am 
Offline
Of Systemic Importance

Joined: Sep 13, 2012
Posts: 5469
ps200306 wrote:
Some US audio from thestreet.com. Among other interesting insights (at least for economic illiterates like me) is that about 60% of Italy's USD$3tn debt is owned by foreign creditors. That's why bank stocks were being pummeled today, including on the DOW.

25% of those 60% (so 15% of total) are held by the ECB (assuming the ECB counts as a foreign creditor).

That's 341 billion euros.

https://www.reuters.com/article/us-ital ... SKCN1IJ15Z

_________________
"It's easy to confuse what is with what ought to be, especially when what is has worked out in your favour"
Tyrion Lannister


Top
 Profile  
 
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Wed May 30, 2018 12:08 pm 
Offline
Planning Tribunal Attendee

Joined: Jun 14, 2012
Posts: 1040
I wonder if the Central Banks will cut or hold base interest rates in the near future given Brexit and the Italian and Spanish issues?


Top
 Profile  
 
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Wed May 30, 2018 3:12 pm 
Offline
Under CAB Investigation

Joined: Mar 14, 2013
Posts: 1925
croquette wrote:
I wonder if the Central Banks will cut or hold base interest rates in the near future given Brexit and the Italian and Spanish issues?

Its not proposing to increase interest rates in 2018
Its more a question if they reduce bond buying

_________________
An increase in the number of paupers does not broaden the market. M. Kalecki


Top
 Profile  
 
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Wed May 30, 2018 8:32 pm 
Online
Under CAB Investigation

Joined: Mar 31, 2009
Posts: 1917
Missed this last week: Italy toying with issuing parallel currency.
Quote:
The Treasury would print billions of euros of non-interest-bearing, tradeable securities which could then be used by recipients to pay taxes and buy any services or goods provided by the state, including, for example, petrol at stations run by state-controlled oil company ENI.


Populists still trying to put a government together rather than go for a new election. Presumably they would propose another Finance Minister but keep this parallel currency plan.

They look like an unwieldy coalition but they can't be accused of not having a mandate.

Quote:
An opinion poll published on Wednesday showed that support for the League had jumped up eight percentage points to 25.4 percent. Five Star League remained steady at around 32.6 percent.


Top
 Profile  
 
 Post subject: Re: Italy's Downward Spiral Accelerates
PostPosted: Wed May 30, 2018 8:49 pm 
Offline
Too Big to Fail
User avatar

Joined: May 6, 2008
Posts: 4836
Location: the nearest faraway place
Parallel currency? Let me guess, savings in euros, debts in Lira. Sound like another version of have panettone and eat it too.

_________________
Every single frozen corpse in the Death Zone on Everest was once a highly motivated person.

Those who don't study history are doomed to repeat it. Those who do study history are doomed to watch everyone else repeating it.


Top
 Profile  
 



Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 361 posts ]  [Go to page]   Previous  1 ... 32, 33, 34, 35, 36, 37  Next

    Board index » The IRISH PROPERTY BUBBLE » The Central Bank

Who is online

Users browsing this forum: Dubhgeannain, E92 335i, Ixelles and 15 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Jump to:  

Follow, Retweet @dailypinster



Pyramid Built, Is Better Built! - Latest Property Discussions www.thepropertypin.com