Posted Mar 30, 2020 by Martin Armstrong
Europe is the epic center of our economic doom. Their socialistic polices have been following Marx since Word War II. They have used the Quantity Theory of Money and took interest rates negative in 2014 and have been unable to stimulate their economies because they tax the “rich” which has done nothing but impoverish the people as small businesses fail to form. Whatever they could have done to destroy their economy, they have done right in cue and with such zeal.
With Keynesian Economics utterly destroyed, the ECB is promoting Coronabonds because they have nothing left to try except canceling the paper currency. Italy is stepping out and has seen the light that the austerity policy which has been imposed upon them has devastated their economy. The conversion of national debts to the Euro only doubled their real outstanding debt and the politicians lacked any understanding of the economic real-world to realize what they have done.
Italy is now looking at providing government real estate as guarantees to secure billions in loans. These include the building of the House of Representatives and the seat of the premier. This illustrates that there is a crisis in debt – people are no longer willing to buy government bonds at absurdly low rates when credit risk is rising exponentially. What is left? Not much to support a European economy destined to be the greatest economic failure since the fall of Communism. What is next for sale? Perhaps all the art in the national museums?