Buckle Up, Italy's Next
The crisis engulfing capitalism and liberal democracy has taken an even more ominous turn:
If bond markets are any warning signal, then it’s clear that the bond vigilantes in Italy are pushing the issue there as well. As I’ve mentioned in the past, Spain is the real bogey because the sheer size of this bailout will cause very serious political turmoil. If the Europeans have to consider bailing out Italy as well, it would likely mean a more than doubling in the size of the bailout funds. Do the Germans and other core nations have that in them? I doubt it.
European leaders have failed to resolve this issue with a workable long-term solution. They appear oblivious as to the real root cause of their problems or simply unable to agree that they have only two options: Full fiscal union or dissolution of some sort. And now the markets are deciding the outcome for them. ... the euro crisis is still the single largest threat to global growth -- and that means the risks in the region are beyond excessive.
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Jan '11
Re: Buckle Up, Italy's Next
The EU ought to just cut the Mediterranean states loose, let them issue their own Club-Med euros and spend themselves into oblivion.
The Pyrenees and the Alps ought to keep the rest of the continent suitably insulated.
Nov '10
Re: Buckle Up, Italy's Next
Buy gold.
Mar '11
Re: Buckle Up, Italy's Next
What's this? An economic domino theory, you say?
Jul '10
Re: Buckle Up, Italy's Next
The Euro-chickens are coming home to roost. But, it was my understanding that the strict debt discipline enforced by the EU meant a new, fiscally sounder Europe.
At least I can sleep firm in the knowledge that my nationalized automobile industry is sound as Plymouth Rock.
Nov '10
Re: Buckle Up, Italy's Next
Bullseye.
Also, not to sound alarmist, or - Heaven forbid - extreme, but I hope that all of my fellow Ricocheters own at least one firearm and understand how to use it safely. Just sayin'.
Jan '11
Re: Buckle Up, Italy's Next
If only they still made Plymouths…
Sep '10
Re: Buckle Up, Italy's Next
No word of a lie. The Google pop up ads are for La Bell Vita and Company luxury leather goods. Hello?
Jul '11
Re: Buckle Up, Italy's Next
I would consider one firearm per family member not to be extreme. Take in to consideration my first date with my wife was a concealed weapons class(this is not a fabrication), she had me at "reload". I am curious if the Germans will buy this fiasco as pleasantly as they did Greece or if national pride and the corresponding marching songs will be heard once again? By stating that risks in the region are beyond excessive does mean that the fall is inevitable? Note China begging to prop up the euro just to keep their customer base around a touch more while they buy up every resource around the globe not guarded by the US military or Russia.
Jul '10
Re: Buckle Up, Italy's Next
It almost makes me wish they weren't blocked.
Sep '10
Re: Buckle Up, Italy's Next
she had me at "reload"
That's an epic post title.
Dec '10
Re: Buckle Up, Italy's Next
This is one of those times when I really wanted to be wrong, but no dice.
I'd second the "buy gold" notion, but at this point, if you don't already own it, it's pretty much too late to buy in.
Just as a historical aside, the .gov confiscated all privately held gold once before, so if you own a sizable chunk, history begs you to find a novel place to secret it away, before things get hairy.
Also, while gold may be an excellent way to preserve a large chunk of your wealth, it's not going to be much good for barter ('cause it's in such big denominations). Keeping some emergency spending money in real silver coins (like nickles and dimes from before they became laminates) would not be unwise. Likewise with ammunition and cheap firearms.
We won't stay a barter economy for long, but until things reset, cash and checks ain't gonna cut it, but a few silver coins and a few spare boxes of .30-06 or .45 Auto might feed your family in the interim.
May '10
Re: Buckle Up, Italy's Next
Italy's debt problem amounts to around 2 trillion euros. The ECB has got 300 billion euros on reserve with which to bail out nations. If they do choose to bail Italy out, the ECB will have to begin another round of monetary inflation.
Oct '10
Re: Buckle Up, Italy's Next
It is all fiat money in declining populations that are aging and have no real possibility of economic growth. People will eventually deal with much less because there will be no alternative. They can print more Euros or Dollars, but it will buy less and less. There really is no solution that will maintain the status. With Europe's long history of totalitarianism and dislike for democracy, there will be the emergence of the strong man or the strong woman that will require extraordinary measures to maintain the peace and the safety for all. It is almost as if we will be entering a new Dark Age of economic contraction where survival becomes the main challenge. Trading liberty for food and shelter has a long history and it will be no different in Europe or America.
Edited on Jul 12, 2011 at 1:39amOct '10
Re: Buckle Up, Italy's Next
Starve the Beast
Bullseye.
Also, not to sound alarmist, or - Heaven forbid - extreme, but I hope that all of my fellow Ricocheters own at least one firearm and understand how to use it safely. Just sayin'. · Jul 11 at 8:10pm
Right, because social breakdown in little European nations will inevitably spread to America, and create hyperinflation! Yes!! Oh no, save us!
Mar '11
Re: Buckle Up, Italy's Next
I happily own a firearm and have a conceal carry permit.
But, let's take a breath everybody.
The "buy gold, own a firearm, and be prepared with your bunker" trope makes it sound like we're clawing out our survival in some post-apocalyptic Cormac McCarthy novel spending each day by fighting off ravaging hordes of marauding human beings amidst the wreckage of all civilization.
I mean, jeez louise people, things are bad but let's not exaggerate to the point of self-parody.
Oct '10
Re: Buckle Up, Italy's Next
The eurozone is fundamentally unworkable. When it dissolves, one or two of those nations will probably experience hyperinflation. The rest won't. The idea that the euro's dissolution will cause hyperinflation here is insane, if anything the U.S. will experience deflation from foreign investors fleeing to the dollar.
Did you know the Fed monetized half the deficits of the 60s? Sure, we had a decade of economic stagnation and inflation in the 70s because of it. But we were not reduced to barter.
Apr '11
Re: Buckle Up, Italy's Next
There are a number of crisis (see, for example, Fistful of Euros discussion on how the current EU crisis may negatively effect Eastern Europe which has, up to now, done a pretty good job recovering from the first financial crisis). But the interaction of the political events in the US and the emerging crisis in Europe may be crucial. Either one would be dire enough. The two occurring simultaneously and interacting with each other makes one pause. President Obama looks more feckless by the day. He seems to have more than he can cope with his 2012 campaign, much less lead the world during an uber crisis. In any case the EU crisis may be unsolvable composed as it is of lies, conflicting and outmoded ideology, wishful thinking, graft, extreme rent seeking & political interests.
"In my opinion Italy as well as UniCredit is in far, far worse shape than has so far been admitted. Italy has, I think, hidden debts in its Cities and regions, particularly those of the North. I think we will see ‘new’ debts surfacing, particularly if Berlusconi and or Tremonti goes."
http://golemxiv-credo.blogspot.com/2011/07/italy-and-greece-axis-of-disaster.html
Oct '10
Re: Buckle Up, Italy's Next
Crow's Nest: ...let's take a breath everybody.
The "buy gold, own a firearm, and be prepared with your bunker" trope makes it sound like we're clawing out our survival in some post-apocalyptic Cormac McCarthy novel spending each day by fighting off ravaging hordes of marauding human beings amidst the wreckage of all civilization. Jul 12 at 3:14am
Perhaps this is all alarmist thinking. I knew a man years ago who, at the age of 12, was the last person in his Jewish family to leave Germany, in 1938. He believed that his remaining family, all of them, were dead within months of his departure.
His memory of his departure was that it was a simple, just in case, emigration, and that those who remained behind still considered it a foolish move.
Perhaps this is alarmist. I still own a few guns, am learning how to grow a lot of our own food, pay close attention to the rapidly increasing local news reports of home invasions, and keep Mr. Shotgun in a very handy location.
And have plenty of 6 mil plastic to wrap bodies in, since I already do not trust the police.
Feb '11
Re: Buckle Up, Italy's Next
One year ago my wife and I visited a friend in norther Italy who had a beautiful retirement house there. They supervised the rebuilding of an old farm house themselves. I much admire them and am a bit jealous. But note that I was told the word was done "black", meaning using cash payments as much as possible, so lazy Italian tax assessors would not learn about the increased value of the property.
Like Greece, Italy seems to have a culture that invites such subterfuge which must contribute to its possible economic collapse.
Also, Italians, living in a country with a rate of population increase below replacement, have little incentive to invest in new housing, taxed or not. Not sure how much this is part of the cause of the country;s possible default...
Jul '11
Re: Buckle Up, Italy's Next
Steven Zoraster
The was a book by Ted Dalrymple called "Our Culture, Whats left of it?" Where he contrasts post war stagnation in the UK compared to growth in Italy where he concludes that the pervasive laws and no graft keep the UK mired in a lack of small business but Italy with its culturally accepted bribes, and mini subterfuges as you point out, was able to prosper.