bogarde73
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Salvini is out there stumping that the euro is a ‘crime against mankind.’ . . .
I believe that one single currency for 18 economies, each different in its own way, just won’t work in the long term." But statistics here is more important than anything else.
“Since the introduction of the current currency, Italy’s debt has risen by €900bn. This experiment has failed and we should not go any further down this road.”
Salvini, if elected, will be facing the same thing. But will have support from Five Star Movement. So, it will be very hard for him to betray Italy to Brussels the way Tsipras did Greece. In fact, the path of least resistance for him is to call the EU’s bluff and allow the Italian Banks in trouble to fail.
This throws the decision back to Brussels to deal with the problem.
Because remember one thing, Salvini is right, Italy’s debt is 134% of GDP. Most of the Italian banks are dealing with portfolios with NPLs (Non-performing loans) that top 40%.
Italy’s banking system is in terminal decline.
. . .If Germany tries to strong-arm Italy the same way that they strong-armed the Greeks, I don’t see it going the same way. Ultimately, despite Berlusconi’s wrangling, a plurality of Italians are backing fundamentally Euroskeptic parties.
If Salvini is the real deal, he would use his alliance with Berlusconi to raise Lega Norda’s profile to 20%, then build a coalition with M5S after the votes are tallied, freezing out any chance of hijacking the process.
In the end, it won’t be hard for whoever is in power to make the argument in the face of a major banking and sovereign debt crisis. Framing Germany as the bad guy will be easy and at that point the EU dives head first into its first real challenge to its authority.
:Extract from article "Berlusconi, Italeave, & How To Checkmate Germany" by Tom Luongo -zerohedge
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