“Mario
Draghi, the ECB President, continues to profess optimism that the
Eurozone will recover in the 2nd half of this year. Hopefully, his
native country is not the basis for this optimism.”
“Last
year it stayed within its Maastricht deficit limit of 3% of GDP.
Indeed, the government had a 2.2% primary surplus. And yet public
debt rose, as a % of GDP, from 127% to 132.6%! Which means that Italy
must keep borrowing (in net terms) even if it has the largest primary
surplus in the Eurozone and manages to stay within the Maastricht
deficit limits. In euro terms, it needs to pay annually 85 billion in
interest (on a €2 trillion debt) of which it must borrow €50
billion.”
“From
this perspective, the Renzi government, but also its neoliberal
detractors, are in a bind. The only solution (i.e. in confronting
Merkel) is outside their remit and imagination. Thus, they keep
falling deeper and deeper into the vortex. Meanwhile, Germany’s
polity shows no signs of even an interest in discussing the
substance.”
Source:
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“... we should expect a new
attack quite soon against the spreads of Spain and Italy, forcing
these countries to turn to ECB permanently as the exclusive source
of funding, which means that they will adopt new austerity
measures and further dismantling of the social state and labor
rights, as required by the banks and multinational cartels and as
it happens again and again in Greece.”
“Α short story of how a
country can be loaded with 40 billion euros additional debt in
just one day”
“Draghi's latest moves
(http://www.bloomberg.com/news/2014-09-04/draghi-sees-almost-1-trillion-stimulus-with-no-qe-fight.html)
confirmed two things: First, the hegemony of the banking elite is
established for good in the eurozone area. Second, more money will
be circulated amongst the strongest financial institutions with
the heavily suffered real economy begging one more time for cash.”
“We will start with Italy and
Spain. We will order rating agencies to attack, exclude them from
markets and throw them to the ECB trap. They will be forced to
take similar measures, as Greece did, in order to receive
liquidity. Then, we will attack France and Germany.”
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