• Tag Archives Italy
  • Mount Vesuvius Anyone?

    ‘In the face of a shock, investors may be surprised to find themselves jammed running for the exit.’ That quote is from Paul Tudor Jones, who was one of the pioneers of the modern hedge fund and is considered a brilliant investor and trader. He went on to say that things are ‘on the verge of a significant change’ and that the current market reminds him of 1999.
    The current market reminds me of the demise of Pompeii, which was destroyed by the massive volcanic eruption of Mt Vesuvius in 79 AD. Pompeii was a prosperous city of the Roman Empire on the coast of southwest Italy. It sits at the base of Mt. Vesuvius, a volcano that had been dormant for a long time. Earthquakes and seismic activity, scientists believe, began to ‘warn’ the population of Pompeii roughly 17 years before the big eruption, when a massive earthquake largely leveled Pompeii. Shortly before the eruption more signs began occurring, hinting that something wasn’t right. Though some people evacuated the area, most of Pompeii’s populace was not worried. The rest is history.
    Though there are many warning signs, similar to the citizens of Pompeii living at the base of an active volcano, the American public does not seem the least worried
    about having their money in the stock market. Retail margin debt, at 100% of market capitalization, is at its highest ever. The percentage of U. S. household wealth (not including home equity) invested in stocks in some form is in its 94th percentile. This is the highest allocation to equities since just before the tech bubble popped in 2000. In other words, despite the numerous warnings for those paying attention, investors have piled most of their savings/wealth into the stock market with complete disregard to the growing probability of a down-side accident.

    This post was published at Investment Research Dynamics on December 7, 2017.


  • Bailins Coming In EU – 114 Italian Banks Have NP Loans Exceeding Tangible Assets

    Bailins Coming In EU – 114 Italian Banks Have NP Loans Exceeding Tangible Assets
    – Italy opposes ECB proposal that holds banks to firm deadlines for writing down bad loans
    – Italy’s banks weighed down under 318bn of bad loans
    – New ECB rules could ‘derail’ any recovery in Italy’s financial system
    – Draft proposal requires banks to provision fully for loans that turn sour from 2018
    – ECB insists banks have better access to collateral on delinquent debt to solve problem
    – Investors should secure assets as proposal suggests more bailins on horizon and banks remain at risk
    ***
    Another week and another unjustifiable move by the ECB to ‘protect’ the EU’s banking system. This time it is the decision to toughen bad-loan rules for euro-area banks.
    The rules state that banks must be held to firm deadlines for writing down loans that turn sour. Banks will be required to provision fully for loans that turn sour from the start 2018.

    This post was published at Gold Core on December 5, 2017.


  • EU Concern Rising About Italian Debt

    The EU Commission is deeply concerned that Italy is under pressure to spend frivolously because of the upcoming elections. The EU is apply more scrutiny for Italy’s huge sovereign debt. Because of the vast size of the Italian economy, the high level of total debt is a major cause for the Eurozone as a whole. The EU Commission sent a letter to the Italian government warning them not to deviate from the course of fiscal consolidation before the parliamentary elections in the spring.

    This post was published at Armstrong Economics on Nov 24, 2017.


  • Could Italy’s Banking Crisis Drag Down Mario Draghi?

    Just don’t mention ‘Antonveneta.’ By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. A blame game has begun in Italy that risks casting a bright light on the leadership of both the Bank of Italy and Italy’s financial markets regulator Consob. The controversial decision to award the central bank’s current Chairman Ignazio Visco a fresh six-year mandate despite presiding over one of the worst banking crises in living memory has ignited a tug-of-war between political parties and the president, who makes the ultimate decision on who to appoint as central bank chief.
    The first to cast aspersions was Italy’s former premier Matteo Renzi, who, no doubt in an effort to distract from his own party’s part in the collapse of Monte dei Paschi di Siena (MPS), called into question the supervisory role of both the Bank of Italy and Consob during Italy’s banking crisis.
    Silvio Berlusconi, a key player in the center-right coalition whose party came out on top in recent elections in Sicily, was next to join the fray. ‘The Bank of Italy did not exercise the control that was expected of it,’ he told reporters in Brussels in response to a pointed question about Visco.

    This post was published at Wolf Street on Nov 22, 2017.


  • Bill Blain: “Stock Markets Don’t Matter; The Great Crash Of 2018 Will Start In The Bond Market”

    Blain’s Morning Porridge, Submitted by Bill Blain of Mint Partners
    The Great Crash of 2018? Look to the bond markets to trigger Mayhem!
    I had the impression the markets had pretty much battened down for rest of 2017 – keen to protect this year’s gains. Wrong again. It seems there is another up-step. After the People’s Bank of China dropped $47 bln of money into its financial system (where bond yields have risen dramatically amid growing signs of wobble), the game’s afoot once more. The result is global stocks bound upwards. Again. It suggest Central Banks have little to worry about in 2018 – if markets get fraxious, just bung a load of money at them.
    Personally, I’m not convinced how the tau of monetary market distortion is a good thing? Markets have become like Pavlov’s dog: ring the easy money bell, and markets salivate to the upside.
    Of course, stock markets don’t matter.
    The truth is in bond markets. And that’s where I’m looking for the dam to break. The great crash of 2018 is going to start in the deeper, darker depths of the Credit Market.
    I’ve already expressed my doubts about the long-term stability of certain sectors – like how covenants have been compromised in high-yield even as spreads have compressed to record tights over Treasuries, about busted European regions trying to pass themselves off as Sovereign States (no I don’t mean the Catalans, I mean Italy!), and how the bond market became increasingly less discerning on risk in its insatiable hunt for yield. Chuck all of these in a mixing bowl and the result is a massive Kerrang as the gears of finance explode!

    This post was published at Zero Hedge on Nov 17, 2017.


  • How Corporate Zombies Are Threatening The Eurozone Economy

    The recovery in Eurozone growth has become part of the synchronised global growth narrative that most investors are relying on to deliver further gains in equities as we head into 2018. However, the ‘Zombification’ of a chunk of the Eurozone’s corporate sector is not only a major unaddressed structural problem, but it’s getting worse, especially in…you guessed it… Italy and Spain. According to the WSJ.
    The Bank for International Settlements, the Basel-based central bank for central banks, defines a zombie as any firm which is at least 10 years old, publicly traded and has interest expenses that exceed the company’s earnings before interest and taxes. Other organizations use different criteria. About 10% of the companies in six eurozone countries, including France, Germany, Italy and Spain are zombies, according to the central bank’s latest data. The percentage is up sharply from 5.5% in 2007. In Italy and Spain, the percentage of zombie companies has tripled since 2007, the Organization for Economic Cooperation and Development estimated in January. Italy’s zombies employed about 10% of all workers and gobbled up nearly 20% of all the capital invested in 2013, the latest year for which figures are available. The WSJ explains how the ECB’s negative interest rate policy and corporate bond buying are keeping a chunk of the corporate sector, especially in southern Europe on life support. In some cases, even the life support of low rates and debt restructuring is not preventing further deterioration in their metrics. These are the true ‘Zombie’ companies who will probably never come back from being ‘undead’, i.e. technically dead but still animate. Belatedly, there is some realisation of the risks.

    This post was published at Zero Hedge on Nov 17, 2017.


  • Cradles of Capitalism: the City-States of Greece and Italy

    There long has been a persistent academic debate as to whether an “ancient economy,’ referring mainly to Greece, even existed at all. In a field dominated by Marx, Marxists, the 19th century sociologist Max Weber, and such scholars of renown as Sir Moses Finley, the lingering image of the economic world of the Greek polis is that of something very static. We imagine a leisure class lounging at the sandaled foot of an orator while slaves tended to the fields, flogging cows harnessed to ploughs stuck in the mud. It is the notion of a “primitive” economy: money made for status, not investment; credit extended for the purchase of slaves, war waged for the capture of booty, elites in control of craft guilds and tyrant-kings keeping the peace by randomly doling out the goods.
    Then there is ancient epic itself, with the noble Odysseus disdaining seafaring for profit (though he did take all the pay-offs he could collect) and the great Achilles pondering a discovery of precious treasure only so far as it might estimate his aristocratic worth. From this rudimentary foundation, an entire field of Socialist-Keynesian views on the Greek economy has prevailed, with occasional libertarian scholars such as Murray Rothbard and Jess Huerta de Soto getting a word in edgewise. In recent time, however, academia has found much more evidence of technological advances and market-driven considerations on the part of the classical polis than previously thought.
    Keeping in mind that in both ancient Greece (and Renaissance Italy) that democracy was not incompatible with aristocracy, and that oligarchies and tyrants were not necessarily illiberal, several points may be made in defense of the economic model of the city-state: 1) that the stronger the city-state, the greater the industrial and economic expansion; 2) that private property was considered a fundamental economic principle; 3) that banking standards were relatively conservative; 4) that the wealthiest city-states were of the most socially dynamic; 5) that city-state competition spearheaded the modern entrepreneurial Europe; and 6) that the visionary tyrant was almost always business-first in his rule.

    This post was published at Ludwig von Mises Institute on 11/14/2017.


  • Claudio Grass Interviews Mark Thornton

    Introduction
    Mark Thornton of the Mises Institute and our good friend Claudio Grass recently discussed a number of key issues, sharing their perspectives on important economic and geopolitical developments that are currently on the minds of many US and European citizens.
    A video of the interview can be found at the end of this post. Claudio provided us with a written summary of the interview which we present below – we have added a few remarks in brackets (we strongly recommend checking the podcast out in its entirety – there is a lot more than is covered by the summary).
    Interview Highlights
    We currently find ourselves in a historically and economically significant transition period. The already overstretched bubble in the markets is still expanding, but we now see bold moves by the Fed to reduce its balance sheet, at the same time the ECB plans to taper, overall presenting us with a fairly deflationary outlook. This reversal of the expansionary policies of the last decade can be seen as the first step toward a potentially ferocious correction in the not-too-distant future.
    The ECB is trapped, as it already holds 40% of euro zone sovereign debt. At the same time, Spain, Italy and Greece continue to potentially present major challenges, as a banking crisis could easily reemerge in these countries [ed note: banks in Europe have managed to boost their capital ratios, but the amount of legacy non-performing loans in the system remains close to EUR 1 trn. Moreover, TARGET-2 imbalances have recently reached new record highs, a strong sign that the underlying systemic imbalances remain as pronounced as ever]. Mario Draghi intends to reduce the ECB’s asset purchases from EUR60 billion to EUR30 billion per month. He may soon realize that if the ECB does not buy euro zone bonds, no-one will.

    This post was published at Acting-Man on November 14, 2017.


  • What Will Push Them Over The Edge?

    Authored by Jeff Thomas via InternationalMan.com,
    Recently, the people of two of Italy’s most prosperous regions voted in a referendum, on whether they wished to have greater autonomy from Rome.
    The referendum is non-binding, but that’s not what’s most significant in the results.
    What is significant is that over 95% of those who voted in Lombardy did so in favour of greater autonomy. In Veneto, the number in favour of greater autonomy was even higher, at 98%.
    Roberto Maroni, president of Lombardy, said, ‘I now have a commitment… to go to Rome and give concrete actualization to the mandate that millions of Lombards have given me.’
    It may appear on the surface that Mister Maroni intends to make an appeal for independence, but this is not what will occur. He’s a politician and won’t invite Rome to jail him for sedition. His goal will instead be to demand that a greater amount of the national income that’s generated by Lombardy and Veneto (about 20% of the total) remains within those regions.
    This will not mean that he wants his people to be taxed less; his goal will be to retain a larger portion to be absorbed by the regional governments – to be in his own hands.
    So much for the politicians’ agenda. But what does the referendum say about the people of the regions? Well, the extraordinarily high numbers in favour of greater self-determination demonstrate that virtually all the people in the regions have figured out that Rome is bilking them of their earnings and they’re getting pretty cheesed off.

    This post was published at Zero Hedge on Nov 14, 2017.


  • Draghi Knew About Hiding Losses by Italian Banks

    The Bank of Italy, when it was headed at the time by Mario Draghi, knew Banca Monte dei Paschi di Siena SpA hid the loss of almost half a billion dollars using derivatives two years before prosecutors were alerted to the complex transactions, according to documents revealed in a Milan court.
    Mario Draghi, now president of the European Central Bank, was fully aware of how derivatives were being used to hide losses. Goldman Sachs did that for Greece, which blew up in 2010. It is now showing that Draghi was aware of the problems stemming from a 2008 trade entered into with Deutsche Bank AG which was the mirror image of an earlier deal Monte Paschi had with the same bank. The Italian bank was losing about 370 million euros on the earlier transaction, internally they called ‘Santorini’ named after the island that blew up in a volcano. The new trade posted a gain of roughly the same amount and allowed losses to be spread out over a longer period. We use to call these tax straddles.

    This post was published at Armstrong Economics on Nov 13, 2017.


  • Doug Noland: “Money” on the Move

    This is a syndicated repost courtesy of Credit Bubble Bulletin . To view original, click here. Reposted with permission.
    It’s been awhile since I’ve used this terminology. But global markets this week recalled the old ‘Bubble in Search of a Pin.’ It’s too early of course to call an end to the great global financial Bubble. But suddenly, right when everything looked so wonderful, there are indication of ‘Money’ on the Move. And the issue appears to go beyond delays in implementing U. S. corporate tax cuts.
    The S&P500 declined only 0.2%, ending eight consecutive weekly gains. But the more dramatic moves were elsewhere. Big European equities rallies reversed abruptly. Germany’s DAX index traded up to an all-time high 13,526 in early Tuesday trading before reversing course and sinking 2.9% to end the week at 13,127. France’s CAC40 index opened Tuesday at the high since January 2008, only to reverse and close the week down 2.5%. Italy’s MIB Index traded as high as 23,133 Tuesday before sinking 2.5% to end the week at 22,561. Similarly, Spain’s IBEX index rose to 10,376 and then dropped 2.7% to close Friday’s session at 10,093.
    Having risen better than 20% since early September, Japanese equities have been in speculative blow-off mode. After trading to a 26-year high of 23,382 inter-day on Thursday, Japan’s Nikkei 225 index sank as much as 859 points, or 3.6%, in afternoon trading. The dollar/yen rose to an eight-month high 114.73 Monday and then ended the week lower at 113.53. From Tokyo to New York, banks were hammered this week.

    This post was published at Wall Street Examiner by Doug Noland ‘ November 11, 2017.


  • The Ponzi scheme that’s more than 100x the size of Bernie Madoff

    By January 1920, much of Europe was in total chaos following the end of the first World War.
    Unemployment soared and steep inflation was setting in across Spain, Italy, Germany, etc.
    But an Italian-American businessman who was living in Boston noticed a unique opportunity amid all of that devastation.
    He realized that he could buy pre-paid international postage coupons in Europe at dirt-cheap prices, and then resell them in the United States at a hefty profit.
    After pitching the idea to a few investors, he raised a total of $1,800 and formed a new company that month – the Securities Exchange Company.
    Early investors were rewarded handsomely; within a month they had already received a large return on investment.
    Word began to spread, and soon money came pouring in from dozens, then hundreds of other investors.

    This post was published at Sovereign Man on November 10, 2017.


  • Sicily votes 81% against the EU Status Quo – It Begins!

    The contagion from Catalonia is indeed spreading to Italy. The Democratic Party (PD) led by former Italian Prime Minister Matteo Renzi has suffered a severe defeat in Sicily. The Eurosceptic parties have won the election sending yet another warning sign to Brussels that they refuse to accept demand reform.
    The Democratic Party has lost the regional elections in Sicily in a very DRAMATIC way. Renzi’s party came in third place with just 19% of the vote. The candidate, supported by Silvio Berlusconi, has won around 40%. I have written before that RELIABLE sources revealed that the EU had staged a coup in Italy to overthrow Berlusconi because he was proposing back then to exit the Euro.

    This post was published at Armstrong Economics on Nov 10, 2017.


  • NOV 7/THE HIGH SILVER OPEN INTEREST FORCES THE BANKERS TO INITIATE ANOTHER RAID TODAY/GOLD DOWN $4.75 AND SILVER DOWN 27 CENTS/ITALY’S TARGET 2 IMBALANCE AT A RECORD 433 BILLION EUROS WHICH CAN N…

    GOLD: $1275.40 DOWN $4.75
    Silver: $16.95 DOWN 27 cents
    Closing access prices:
    Gold $1275.40
    silver: $16.95
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1293.86 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1279.85
    PREMIUM FIRST FIX: $14.01(premiums getting smaller)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1285.00
    NY GOLD PRICE AT THE EXACT SAME TIME: $1279.00
    Premium of Shanghai 2nd fix/NY:$6.00 PREMIUMS GETTING smaller)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1276.35
    NY PRICING AT THE EXACT SAME TIME: $1276.30
    LONDON SECOND GOLD FIX 10 AM: $1275.60
    NY PRICING AT THE EXACT SAME TIME. 1276.95 ??
    For comex gold:
    NOVEMBER/
    NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH: 110 NOTICE(S) FOR 11000 OZ.
    TOTAL NOTICES SO FAR: 966 FOR 96,600 OZ (3.004TONNES)
    For silver:
    NOVEMBER
    7 NOTICE(S) FILED TODAY FOR
    35,000 OZ/
    Total number of notices filed so far this month: 863 for 4,315,000 oz
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    Bitcoin: $7174 bid /$7199 offer up $244.00 (MORNING)
    BITCOIN CLOSING;$7099 BID:7124. OFFER down $124.00
    end
    Let us have a look at the data for today
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    In silver, the total open interest ROSE BY A HUGE 3562 contracts from 204 ,938 DOWN TO 208,500 WITH YESTERDAY’S TRADING IN WHICH SILVER ROSE BY A CONSIDERABLE 37 CENTS. THE CROOKS NO DOUBT ARE PULLING THEIR HAIR AS THEY ARE STILL HAVING AN AWFUL TIME TRYING TO COVER THEIR MASSIVE SILVER SHORTS. THEY TRY TO CONTINUE WITH THEIR TORMENT WITH NO APPRECIABLE FALL IN SILVER OI. YESTERDAY HUGE NUMBERS OF NEWBIE SPEC LONGS ENTERED THE SILVER ARENA TO WHICH OUR BANKERS DUTIFULLY SUPPLIED.
    RESULT: A HUGE SIZED RISE IN OI COMEX WITH THE CONSIDERABLE 37 CENT PRICE GAIN. NEWBIE SPEC LONGS ENTERED THE ARENA AND THESE GUYS WERE DUTIFULLY SUPPLIED BY OUR CROOKED BANKERS. THERE WAS NO SHORTCOVERING YESTERDAY.
    In ounces, the OI is still represented by just OVER 1 BILLION oz i.e. 1.042 BILLION TO BE EXACT or 149% of annual global silver production (ex Russia & ex China).
    FOR THE NEW FRONT OCT MONTH/ THEY FILED: 7 NOTICE(S) FOR 35,000 OZ OF SILVER
    In gold, the open interest ROSE BY A LARGER THAN EXPECTED 8303 CONTRACTS WITH THE GOOD SIZED RISE IN PRICE OF GOLD ($11.25) WITH YESTERDAY’S TRADING . The new OI for the gold complex rests at 537,727. NEWBIE LONGS RE-ENTERED THE ARENA TO WHICH THE BANKERS DUTIFULLY SUPPLIED THE NECESSARY SHORT PAPER..
    NO EFP’S WERE ISSUED FOR THE NOVEMBER CONTRACT MONTH.
    Result: A GOOD SIZED INCREASE IN OI WITH THE RISE IN PRICE IN GOLD ($11.25). WE HAD ZERO BANK SHORT COVERING AS ANY OF OUR NEWBIE LONGS RE-ENTERED THE GOLD COMEX AREA TO WHICH OUR BANKERS DUTIFULLY SUPPLIED THE NECESSARY SHORT PAPER.
    we had: 110 notice(s) filed upon for 11,000 oz of gold.
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    With respect to our two criminal funds, the GLD and the SLV:
    GLD:
    A huge change in gold inventory at the GLD/ a withdrawal of 1.48 tonnes
    Inventory rests tonight: 844.27 tonnes.
    SLV
    TODAY WE HAD NO CHANGE IN SILVER INVENTORY AT THE SLV
    INVENTORY RESTS AT 319.018 MILLION OZ

    This post was published at Harvey Organ Blog on November 8, 2017.


  • Berlusconi: The Greatest Comeback Since Lazarus?

    Only in Italy… exit polls suggest Silvio Berlusconi’s political comeback took an important step forward in the Sicilian elections on Sunday. Expulsion from public office, tax fraud, sex scandals and open heart surgery cannot stop 81-year old Silvio playing a major role in Italy’s political circus. Berlusconi campaigned hard in Sicily and Nello Musumeci, backed by center-right parties, including Berlusconi’s Forza Italia (Go Italy!), is expected to win when vote counting takes place today. The governing center-left party was beaten into third place behind the populist 5-Star party. According to Reuters.
    The center-left, led by Matteo Renzi’s ruling Democratic Party, looked certain to finish a distant third after internal feuding wrecked its chances of retaining power on the Mediterranean island that it had governed since 2012. RAI state television said Nello Musumeci, backed by center-right parties, including Berlusconi’s Forza Italia (Go Italy!), would win between 35 percent and 39 percent of the vote.
    The 5-Star’s Giancarlo Cancelleri was seen taking between 33 and 37 percent.
    Another exit poll for private broadcaster La 7 put Musumeci on 36-40 percent and Cancelleri on 34-38 percent.
    The center-left’s Fabrizio Micari was seen 20 points behind the frontrunner in both surveys, followed by Claudio Fava, the candidate of a cluster of left-wing parties.
    The vote count will begin on Monday at 8 a.m (0700 GMT) and Musumeci’s lead is inside the pollsters’ margin of error.

    This post was published at Zero Hedge on Nov 7, 2017.


  • Financial Storm Clouds Gather Over Italy

    Wishful thinking may not be enough.
    The financial markets have been exceedingly calm in Italy of late. At the end of October the government was able to sell 2.5 billion of 10-year debt at auction at a yield of 1.86%, the lowest since last December – an incredible feat for a country that four months ago witnessed a major bank bailout and two bank resolutions, and that has so much public debt that it spends 70 billion a year to service it, the world’s third-highest.
    And there’s the ECB’s recent decision to slash its bond buying from roughly 60 billion a month to 30 billion as of Jan 1, 2018. Then there’s the over 432 billion of Target 2 debt the government owes the ECB, the growing likelihood of political instability as elections approach in 2018, the recent referendums for greater fiscal and political autonomy in Lombardy and Veneto and serious unresolved issues in the banking sector.
    Monte dei Paschi di Siena may still be alive as a bank, but it’s not out of the woods. Last week its stock resumed trading after ten months of being suspended from Italy’s benchmark index, the FTSE MBE. Shares opened on Wednesday at 4.10, then rose 28% to 5.26. But it didn’t stick. On Friday, shares closed at 4.58.
    It’s a far cry from the 6.49 a share the Italian government paid in August when it injected 3.85 billion into the bank to keep it alive. It spent another 1.5 billion shielding some of the bank’s junior bondholders, whose debt was converted into equity. As part of the rescue, the Tuscan bank was forced to present a plan to cut 5,500 jobs and close 600 branches until 2021, in addition to transferring 28,600 million euros in unproductive loans and divesting non-strategic assets. Investors clearly have their doubts.

    This post was published at Wolf Street on Nov 5, 2017.


  • Invest In Gold To Defend Against Bail-ins

    – Italy’s Veneto banking meltdown destroyed 200,000 savers and 40,000 businesses
    – EU bail-in rules have wiped out billions for savers and and businesses, with more at risk
    – Bail-ins are not unique to Italy, all Western savers are at risk of seeing savings disappear
    – Counterparty-free, physical gold bullion is best defence against bail-ins
    One of Italy’s twenty regions is calling for more autonomy from the state following a nonbonding referendum. Why? Because a government supported ‘rescue package’ caused the lifesavings of 200,000 savers to be wiped out during the implosions of Popolare di Vicenza and Veneto Banca.
    Since then the banks have been rescued in one way or another yet the impact of the collapse on individuals and small businesses is only just becoming clear.
    As in Spain’s Catalonia the region of Veneto is wealthier than the average Italian region, with its own industries and language yet it has been left with a pile of ash when it comes to its banking sector.

    This post was published at Gold Core on November 1, 2017.


  • Roman Republican Hoard for Sale of Victoriati

    We have another hoard available of the early Roman coinage from the Second Punic War. These are the Greek denominations forming the first two-tier monetary system in the known world. Such hoards are rare today so the opportunities to obtain such specimens are becoming far and few between.
    Prior to the introduction of the Roman denarius in about 211 BC, Rome’s silver coins were similar in weight and silver content to the staters (didrachmas) of Greece and Magna Grecia (southern Italy and Sicily). With the Second Punic War (218-200BC), the production of these silver coins greatly increased to cover the expenses as always with war. This demand for coinage was met with the extensive minting of didrachmas known as quadrigati named after the reverse picturing Jupiter driving a four-horse chariot known as the quadriga.

    We have another hoard available of the early Roman coinage from the Second Punic War. These are the Greek denominations forming the first two-tier monetary system in the known world. Such hoards are rare today so the opportunities to obtain such specimens are becoming far and few between.
    Prior to the introduction of the Roman denarius in about 211 BC, Rome’s silver coins were similar in weight and silver content to the staters (didrachmas) of Greece and Magna Grecia (southern Italy and Sicily). With the Second Punic War (218-200BC), the production of these silver coins greatly increased to cover the expenses as always with war. This demand for coinage was met with the extensive minting of didrachmas known as quadrigati named after the reverse picturing Jupiter driving a four-horse chariot known as the quadriga.

    This post was published at Armstrong Economics on Oct 28, 2017.


  • Gold Will Be Safe Haven Again In Looming EU Crisis

    – Gold will be safe haven again in looming EU crisis
    – EU crisis is no longer just about debt but about political discontent
    – EU officials refuse to acknowledge changing face of politics across the union
    – Catalonia shows measures governments will use to maintain control
    – EU currently holds control over banks accounts and ability to use cash
    – Protect your savings with gold in the face of increased financial threat from EU
    Editor: Mark O’Byrne
    ***
    When we talk about the Eurozone crisis we are usually referring to the Eurozone debt crisis. According to the OECD the debt crisis of 2011 was the world’s greatest threat.
    In the years that followed, Germany, France and the UK led EU members in their efforts to stave off debt defaults from the likes of Ireland, Portugal, Italy, Spain and, of course, Greece. This was partly in order to protect the German, French and UK banks who had lent irresponsibly into the periphery EU nations and were very exposed.

    This post was published at Gold Core on October 26, 2017.


  • 22/10/17: Italian North: another chip off Europe’s Nirvana

    Having just written about the Czech electoral pivot toward populism last night, today brings yet another news headline from the politically-hit Europe.
    In a non-binding referendums in two wealthiest Italian regions, Veneto and Lombardia, the voters have given local governments strong mandates to push for greater autonomy from Rome and the Federal Government. Both regions are dominated by the politics of Lega Nord, a conservative, autonomy-minded party with legacy of euro scepticism, strong anti-immigration sentiment and the past promotion of outright independence for the Northern Italy.
    In both referendums, turnout was relatively strong by Italian standards (58% projected for Veneto and over 40% for Lombardia). And in both, exit polls suggest that some 95% of voters have opted for stronger regional autonomy.
    The referendums were not about outright independence, but about wrestling more controls over fiscal and financial resources from Rome. Both regions are net contributors to the Italian State and are full of long run resentment over the alleged waste of these resources. Both regions want more money to stay local.

    This post was published at True Economics on October 23, 2017.