Berlusconi:
"Italy May Be Forced To Leave The Eurozone And Return To The
Lira"
18
December, 2012
Reminding
the world of just the kind of truthiness that got him sacked
originally by that other Italian, the Ex-Goldmanite Mario Draghi,
back in November 2011, and which the world has to look forward to
when Silvio Berlusconi returns to power some time in 2013, even if
not as PM (a position he currently has a snowball's chance in hell of
regaining based on current political
polls),
Reuters informs us that the Italian, who certainly has not read the
Goldman book on status quo perpetuation, just said the
unimaginable: the
truth.
To wit: "If Germany doesn't accept that the ECB must be a real
central bank, if interest rates don't come down, we
will be forced to leave the euro and return to our own currency in
order to be competitive."
Berlusconi said in comments reported by Italian news agencies Ansa
and Agi. The 76-year-old media tycoon has made similar remarks in the
past about the possibility of Italy, or even Germany, leaving the
euro, but has often at least partially rectified them later."
Not this time. Now with Germany and the Buba folding like a broken
chair, Silvio is coming back and knows he can demand anything and
everything, and Germany has no choice but to accept, Merkel
reelection in a few months be damned.
Perhaps
the former PM who recently got engaged to this 28
year old girl who
obviously loves him for his personality has read our
little primer on
what happens in a Europe in which external devaluation (i.e., FX) is
not a possibility, and where another 30-50% drop in PIIGS salaries
would be neccesary to restore competitiveness. That, or a return to
the Lira of course. And Berlusconi has seen that in the duel between
Greece and Germany so far the former (and specifically its creditors)
have gotten all the advantage. It is only a matter of time before he
parlays that negotiating approach to Italy as well, and in the
process destabilizes whatever artificial balance the ECB may have
created.
Former prime minister Silvio Berlusconi said on Tuesday Italy would be forced to leave the euro zone unless the European Central Bank gets more powers to ensure lower borrowing costs.
Berlusconi, who announced this month he will again lead his People of Freedom party (PDL) in a national election expected in February, said on a talk-show on state broadcaster RAI that the ECB should become a lender of last resort for the currency bloc.
Berlusconi is already campaigning hard for the election with a spate of television interviews in an attempt to close the wide gap with the center-left Democratic Party which is polling at above 30 percent, some 14 points above the PDL.
Berlusconi was forced to resign as prime minister in November last year as Italian bond yields surged at the height of the euro zone debt crisis.
Enjoy
the little European respite ladies and gents, because in a few weeks,
the Magic Money Tree-free reality is coming back with a vengeance.
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