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Global Financial Markets Plunged Into Chaos As Italy Overwhelmingly Votes ‘No’

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italy-flag-map-public-domainItalian voters have embraced the global trend of rejecting the established world order, but the “no” vote on Sunday has plunged global financial markets into a state of utter chaos.  The euro has already fallen to a 20 month low, Italian government bonds are poised for a tremendous crash, and futures markets are indicating that both U.S. and European stock markets will be way down when they open on Monday.  It is being projected that Italian Prime Minister Matteo Renzi’s referendum on constitutional reforms will be defeated by about 20 percentage points when all the votes have been counted, and Renzi has already announced that he plans to resign as a result.  When new elections are held it looks like comedian Beppe Grillo’s Five-Star movement will come to power, and the European establishment is extremely alarmed at that prospect because Grillo wants to take Italy out of the eurozone.  In the long run Italy would be much better off without the euro, but in the short-term the only thing propping up Italy’s failing banking system is support from Europe.  Without that support, the 8th largest economy on the entire planet would already be in the midst of an unprecedented financial crisis.

I know that I said a lot in that first paragraph, but it is imperative that people understand how serious this crisis could quickly become.

This “no” vote virtually guarantees a major banking crisis for Italy, and many analysts fear that it could trigger a broader financial crisis all across the rest of the continent as well.

Just look at what has already happened.  All of the votes haven’t even been counted yet, and the euro is absolutely plummeting

The euro dropped 1.3 percent to $1.0505, falling below its 1 1/2-year low of $1.0518 touched late last month, and testing its key support levels where the currency has managed to rebound in the past couple of years.

A break below its 2015 March low of $1.0457 would send the currency to its lowest level since early 2003, opening a way for a test of $1, or parity against the dollar, a scenario which many market players now see as a real possibility.

In early 2014, there were times when one euro was trading for almost $1.40.  For a very long time I have been warning that the euro was eventually heading for parity with the U.S. dollar, and now we are almost there.

Meanwhile, Italian government bonds are going to continue to crash following this election result.  This is going to make it even more difficult for the Italian government to borrow money, and that will only aggravate their ongoing financial troubles.

But the big problem in Italy is the banks.  At this moment there are eight banks in imminent danger of collapsing, and virtually all of the rest of them are in some stage of trouble.  The following comes from a Bloomberg article about the crisis that Italian banks are facing right at this moment…

They’re burdened with a mountain of bad loans. Their stocks have cratered. And they have to operate in an economy prone to recession and political upheaval.

Signs have been mounting for months that Italy’s weakest lenders, and in particular Banca Monte dei Paschi di Siena SpA, were sliding toward the precipice, threatening to reignite a broader crisis.

And we may get some news regarding the fate of Banca Monte dei Paschi di Siena as early as Monday morning if what the Sydney Morning Herald is reporting is correct…

A last-gasp rescue for Monte dei Paschi di Siena, the world’s oldest surviving bank, has been thrown into doubt after reformist prime minister Matteo Renzi decisively lost a referendum on constitutional reform on Sunday.

MPS and advisers JPMorgan and Mediobanca will meet as early as Monday morning to decide whether to pull a plan to go ahead with a €5bn recapitalisation, the FT reports, citing people informed of the plan.

Senior bankers will decide whether to pursue their underwriting commitments or exercise their right to drop the transaction due to adverse market conditions, these people said. In the event the banks drop the capital plan, the Italian state is expected to nationalise the bank, say senior bankers.

If Banca Monte dei Paschi di Siena fails, major banks all over Italy (and all over the rest of Europe) could start going down like dominoes.

So what were Italians voting on anyway?

Well, the truth is that the constitutional reforms that were proposed actually sound quite boring

“The changes involve sharply reducing the size of one of the chambers of Parliament — the Senate — shifting its powers to the executive, and eliminating the Senate’s power to bring down government coalitions.

“The amendments also shift some powers now held by the regions to the central government, thereby reducing frequent and lengthy court battles between Rome and the regional governments.”

The reason why this vote was ultimately so important is because it became a referendum on Renzi’s administration.  The fact that he announced in advance that he would resign if it did not get approved gave a tremendous amount of fuel to the opposition.

So now Beppe Grillo’s Five-Star Movement stands poised to come to power, and that could be very bad news for those that are hoping to hold the common currency together.

The following is how NPR recently summarized the main goals of the Five-Star Movement…

“It calls for a government-guaranteed, universal income, abolishing Italy’s fiscal commitments to the European Union and a referendum on Italy’s membership in the Euro — a prospect that could unravel the entire single currency Eurozone.”

If Italy chooses to leave the euro, it will probably mean the end of the common currency, and the continued existence of the entire European Union would be called into question.

So this vote on Sunday was huge.  The Brexit had already done a tremendous amount of damage to the long-term prospects for the European Union, and now the crisis in Italy is sending political and financial shockwaves throughout the entire continent.

Over the next few weeks, keep a close eye on the euro and on Italian government bonds.

If they both continue to crash, that will be a sign that a major European financial crisis is now upon us.

And what happens in Europe definitely does not stay in Europe.

If Europe goes down, we are going to go down too.

At this point we still have almost a month left in 2016, but 2017 is already shaping up to be a very troubling year.  As always, let us hope for the best, but let us also keep preparing for the worst.

 
  • Cinderella Man

    It COULD happen…the key word is COULD but will it happen? Who knows. The next economic collapse always seems to be just around the corner but it never does. I’m not saying it isn’t possible but the false alarms are getting tiresome.

    • ALWAYSTOMORROW

      Yes. You are correct Cinderella Man.

      Here we go. Another would be could be beginning of another collapse might be right around the corner.

      I think I will not change my plans for our annual trip to South Florida for the holiday season.

      Now I think I will have a cup of coffee and a almond sweet roll.

      • Darwin

        Schadenfreude: I’m glad to hear that you are not going to change your “plans for our annual trip to Southwest Florida for the holiday season.”

      • CASTIEL

        Learn History…….Radical events happens when you least expect……i guess jews didnt expect to be terminated in ww2……..I guess in 1939 they also dinked a cup of coffe in the confort of their houses…….

        • Kat T

          The ‘little boy that cried wolf’ and’chicken little’ were both ultimately correct even if one thinks that is not the moral of the story. Neh 4:17 They which builded on the wall, and they that bare burdens, with those that laded, every one with one of his hands wrought in the work, and with the other hand held a weapon.
          Neh 4:18 For the builders, every one had his sword girded by his side, and so builded. And he that sounded the trumpet was by me.

          We don’t need to stop what we are doing but we do need to be aware of our surroundings.

          • CASTIEL

            Evil wins when good mens dont act!!!

        • SnodtBlossom

          ww2 sure was a funky story.. but many people did see the signs and flee.. yes, obviously many people underestimated

          • CASTIEL

            Yes…..you are right…. USA and EU are connected……if one of them fall…..we are all screwed….

        • none

          Wouldn’t President Obama want to have all banks to close for Christmas?
          History has shown U.S. that he hates Christians. What a great gift to give the world, America destroyed!

      • Larry Sears

        I’m with you “Always”, live life to the fullest. Listening to all the doom and gloom is unhealthy.
        Looking forward to the winter season in Palm Springs. Be aware and prepared.

        • JC Teecher

          I am a little envious of both you and AT.
          I have been to both places and just thinking about the warm breezes and swaying palm trees, makes me want to make a road trip out of this freezing Appalachia world for the winter.

          The smell of coconut based suntan oil, and sweet smelling flowers, some just on lovely women, has me wanting to ditch the insulated boots for a pair of flip flops, and head to the south.

          • ALWAYSTOMORROW

            I’ll save a lounge chair by the pool for you.

          • JC Teecher

            Thanks for the thoughts, as I am preparing for changes in my current situation that permits my freedom to be where I am most comfortable in the cooler months…the beach.

            I have a cousin that lives in Texas, and plan on spending more time at the Gulf.
            Panama City is one of my favorite places on earth, and spending more time where fishing and warm sunny days permit walks on the beach, is my goal for next winter.

            Aloha.

          • SnodtBlossom

            JC’s wife finally jilted him.

          • SnodtBlossom

            We don’t allow Tarheels in Florida

    • Pig Farmer Bill

      No doubt the economic status of many nations is in trouble. But I’m also worn thin with one article after the other about the coming collapse. I’m prepped and ready for anything. But I also live my life.

      • Guest

        Do you live in SC? I’ve seen your comments on articles at WYFF.

        • Pig Farmer Bill

          Yep, been in the Upstate most of my life.

        • Pig Farmer Bill

          yes

    • CASTIEL

      Its a question of time……..The Euro will end……The rest of Europe is tired of those pathetics Germans and Frenchs……Who tries to steal money from the south countries imposing austerity and destroyng our future ….and they defend that we must receive those terrorists( refugees ) who show their gratitude to us, by blowing up buildings, shooting people with AKs and when they dont have them they just use axes…….F#CK THEM!!!! Thats why the extreme right wing is gaining power….we are tired of those leftist morons!!!

      • ALWAYSTOMORROW

        CASTIEL, I think I detect just the slightest hint of hate in your comments. Maybe I am wrong.

        • CASTIEL

          Its not hate….history will repeat again in Europe, because people are to stupid to see reality……

          • socalbeachdude

            Actual reality has nothing whatsoever to do with your nonsensical and false notions.

          • CASTIEL

            False notions???????Do you live in Europe????’ I do…..after we asked a loan to the Germans they impose us austerity to our people….they can make loans with no interest but when do they put interests. ..When we entered Euro they destroyed our capacity of manufacturing….so we could be vulnerable……So….do you live in Europe??????Do you know our reality????????I guess no….. so please……dont talk what you dont know….

          • socalbeachdude

            The EU will both survive and thrive in the years, decades, and centuries ahead. It is already the largest multi-country economy in the world and serves its more than 504 million citizens extremely well over the coming centuries.

          • CASTIEL

            Rome as huge….but every empire falls down…….for centuries???? reallly…..is what your Crystal ball showed you?????

          • Lennie Pike

            Nothing wrong with hating what is evil and wrong. It is obviously a good thing to hate that – but only the older generations seem to grasp that concept these days it seems. “It’s all good” – yeah right – sure it is – it’s all good all right.

            “Stop the hate?” The hate of what? – of evil? – that which causes pain, destruction and suffering? Not me so call me a hater if you don’t know any better.

      • socalbeachdude

        Nobody is “stealing” anything from the lazy southern European countries. As to your bellicosity and asinine warmongering, put a lid on that sort of pathetic nonsense.

        • CASTIEL

          Lazy southern?????? the lazy ones are from the north…..that have no humble to do the dirty work…..thats why there a lot of muslims and people from other countries to do their dirty work…….We from the south dont behave like that!!!!!!! SHUT THE HELL UP!!!!!!!

          • socalbeachdude

            Southern Europe is VASTLY LESS PRODUCTIVE than northern Europe and that has long been the case – for centuries. What do your nonsensical assertions have to do with that fact?

          • CASTIEL

            For centuries moron?????? Go learn history ignorant…….We are better without the north

    • mister_roboto

      The US markets seem to be doing okay this morning, and the euro is back to where it was before.

      • SnodtBlossom

        If Michael doesn’t have false alarms, what does he have?

        • mister_roboto

          “Hair-on-fire” rhetoric? 😉

          • SnodtBlossom

            🙂 lol..

    • Mad Monkey

      We still live in the narrative that bad news is good news and evil is good.
      Problems in the EU means more money printing which is good for stocks……
      “You have to wonder “who” stepped in at the European open and panic-bid with both hands and feet for Euros and US and EU equities…? As one trader mocked earlier, Brexit took 3 days to recover its losses, Trump took 3 hours, and Italeave took 3 minutes”

      • socalbeachdude

        No, problems in the EU certainly do not mean “more money printing” by any interpretation. As to Brexit that is an ONGOING CATASTROPHE that has yet to be even slightly implemented and the UK currency, the pound sterling, has already plummeted around 20% since that stupid vote – which, by the way, was merely an ADVISORY VOTE with NO FORCE OF LAW WHATSOEVER.

  • RedPillPlease

    What happened in Italy is good for the Italian people. Another brick in the wall of globalism has fallen with a strong message to Brussels and the EU, identical to the BREXIT and the election of Donald Trump. The sooner that beast dies in Europe the better.

    Too bad Austria didn’t get the memo!

    • Mike Smithy

      Yes, you are quite correct in your analysis. I have always enjoyed your thoughtful commentary at Zero Hedge as well.

      • socalbeachdude

        Those clueless dolts at ZeroBrains are as dumb as a bag of brocen bricks and were PROVEN DEAD WRONG regarding their nonsense on Italy.

    • Scott Comin

      Hopefully the military and police around the world are getting the memo!!!! A sick system can’t maintain itself without military and police believing the lies and carrying them out against the people.

    • socalbeachdude

      NOTHING HAPPENED IN ITALY with the NO vote which merely kept the Italian government structure and Constitution the VERY SAME IT HAS BEEN since 1949.

      • Gay Veteran

        if nothing happened then why is the prime minister resigning?
        hmmmmmmmmmmmmmmm

        • socalbeachdude

          Renzi wanted to largely diminish the top level of Parliament in Italy so he could ram through his globalist nonsense and the people of Italy voted NO to keep the parliament structure the very same way it has been since 1949. Renzi is just racing to exit now so the whole mess with the banks in Italy doesn’t come crashing down on his head in a pile of financial rubble.

          The bank problems of INSOLVENCY in Italy are not new at all but have been dramatically worsening since 2007 and the total amount of non performing loans (NPLs) in Italy at their major banks now exceeds $360 billion which the capital equity only around $220 billion.

          • Gay Veteran

            again, if nothing happened then why is the prime minister resigning?
            hmmmmmmmmmmmmmmm

          • socalbeachdude

            Once again, Renzi knows that the banks in Italy are collapsing and his attempts with this referendum to restructure both the Constitution of Italy and the government of Italy were resoundingly rejected by 60% of the voters leaving both the Constitution of Italy and government of Italy fully intact. Renzi is the fool that chose to stake his Presidency on trying to force changes in Italy’s Constitution and government and he was told NO in no uncertain terms and chose to stake his office on that vote.

            Tough luck for Renzi. He lost big time.

  • Bill

    Ignition on many fronts. If liftoff occurs really big trouble ahead.

  • JC Teecher

    What does it mean for the world’s banking institutions when the oldest operating bank in the world is facing possible complete failure? It means the world is deep deep deep in debt, and people with money tied up in bank bonds, and public pensions, and ………..
    well, they could be in deep do do.

    Because, the banksters are in bed with the Globalists/NWO/UN/European Union. So why should all that affect Italians?
    Three words; bank bail ins. BINGO!

    It has already had it’s test run a while back with Cyprus. This vote and political upheaval “could”, become the bigger domino for the EU’s back to back member country’s banking bail ins, “if” this event goes whackey weasel this week.

    Merry Christmas.

    • socalbeachdude

      That “oldest bank in the world” is a pretty trivial bank today and really doesn’t matter very much these days – except to its shareholders.

      Merry Christmas and Happy Wake!!!

      • Lennie Pike

        “Gold and siver is money, and nothing else is” – John Pierpoint (J.P.) Morgan.

        Are you going to contradict one of your own dude? I think that quote was made “off the record” or when he was drunk and with his guard down.

        Like I said – “They” know it to be true, and that their fiat “money” is a fraud – Morgan admits it, it’s just that they want and need us to believe otherwise – otherwise their jig is up.

        • socalbeachdude

          JP Morgan made that silly assertion more than 100 years ago way before electronic money had been invented and JP Morgan Chase which is his legacy today certainly does not share that silly little anachronistic and outdated notion today and is now the largest bank in the US with more than $2.4 trillion in assets.

          ACTUAL FACTS ABOUT GOLD

          There is nothing stable at all about the price of gold or silver.

          GOLD OF OF ABSOLUTELY ZERO FINANCIAL RELEVANCE and is nothing other than AN EXTREMELY WILDLY VOLATILE FUNGIBLE LITTLE NICHE COMMODITY.

          The total value of all of the 180,000 metric tonnes of gold ever mined in the history of the world is less than $7 trillion and 70% of that is in the form of privately held jewelry and only about $1.24 trillion of it amounting to about 32,000 metric tonnes is even owned by banks which is a TINY LITTLE SPECK OF DUST compared to global assets of around $800 trillion and a global annual economy of more than $70 trillion.

          The world long ago TOTALLY OUTGREW ANY USE WHATSOEVER FOR GOLD IN ANY FINANCIAL / MONETARY CAPACITY which is why the so-called “gold standard” was totally discarded domestically by every country in the world back in the early 1930s.

          Gold is just a TINY LITTLE TRIVIAL NICHE COLLECTIBLE FUNGIBLE COMMODITY for which the primary use has always been JEWELRY since the stuff was first discovered. The annual sales of the approximately 4,600 metric tonnes of gold supply are only about $240 billion which is less than half the annual sales of Wal-Mart alone.

          Gold and silver have NEVER been money and have merely been used to mint coins with a fixed stated nominal FACE VALUE. You can use a legal tender 1 oz. gold American Eagle anywhere in the US and much of the world where dollars are accepted for its $50 face value but that’s as close as it gets to money for gold.

          The price of a commodity does not make that commodity of any FINANCIAL RELEVANCE whatsoever in relationship to money. The price of the Platinum Group of Metals (platinum, palladium, and rhodium) has nearly always been significantly higher than gold because they are much rarer and of far greater practical use than gold, but that does not make the PGMs of any financial relevance.

          The US long used a “silver standard” until that was discarded around 1870 and briefly replaced with the so-called “gold standard” which was totally discarded domestically in the US in 1933 as an entirely failed experiment. No currency can be limited to the production of some irrelevant “thingy” commodity such as gold or anything else when the population of that currency’s country is vastly expanding as was the case of the US by the 1930s.

          Artificially constraining the growth of money supplies while the population is growing substantially CAUSES DEPRESSIONS and causes countries to fail economically.

          As to bullion forms of gold and silver, however, THEY HAVE NO PURCHASING POWER AT ALL and never did. Not to mention that their value as commodities has plummeted 40% for gold and 65% for silver over the past 4 years since early September 2011.

          • Lennie Pike

            I couldn’t bring myself to read further than the first sentence of your comment – go back as far in time as you wish to, and as today, a nice suit of clothes could be purchased with one ounce of gold – and you say the price of gold is not stable!!!!! Ohhhhhh….I get it – you mean in terms of Dollars in which you’d be right. Ya think it could possibly be then that it’s the value of the Dollar that is unstable” and not that of gold? The only time gold’s value will be unstable will be very soon when Dollar hyperinflation takes off.

            That’s it socaldude – it’s over – I rest my case. I’m throwing you back in for being to small and for not putting up a fight. Have a nice life, but as Dean Wormer said to Flounder “son, you can’t go through life drunk and stupid” – in your case stupidly programmed – Lou Costello, over and out.

          • socalbeachdude

            As to the value of the US dollar over the past 100 years…

            No, the dollar did NOT really lose 95% of its value since 1913

            Let us take at the period from 1913-2006, where we have complete data. So what do they mean, when they say the dollar lost 95.1% of its value in those 93 years? Essentially, an average good/service that cost $1 in 2006, used to be priced at 4.9 cents in 1913. In other words, the average price level of goods/services increased by 1930% since 1913. True, but guess what, average earned income increased by 6560% during the same time period. Average earned income rose from $740/yr in 1913 to $49,300/yr in 2006. Adjusting for inflation, $740/yr in 1913 is $15,000/yr in 2006 dollars. Average incomes, not only kept pace, but beat price inflation by 230%.

            So does it make any sense all to say the dollar lost value? In reality, the REAL purchasing power of the average American, has increased by 230% in the past century. Sure, prices were cheap in 1913, but $740/yr doesn’t buy you a whole lot, not anymore than 15,000/yr today.

            http://realfactbias.blogspot.com/2012/02/no-dollar-did-not-really-lose-95-of-its.html

            If someone put $20 in a bank account at 5% interest in 1910 instead of buying $20 worth of gold (a 1 oz. gold coin back then), the value of that bank account would now be $2,630.03 which would be worth $1,442.03 more than the value of the gold coin or a whopping 121% more than the value of the gold coin. Run the numbers for yourself at:

            http://www.moneychimp.com/calculator/compound_interest_calculator.htm

            Either way there would have been or would be tax consequences. The interest over the 100 years would have been taxed at ordinary income tax rates to the account holder. The capital gains on the gold coin when sold now to turn it back into cash would be taxed at 28% of the capital appreciation which would be $1,168 ($1,188 / oz./ less original $20 cost basis) and 28% of that would be $327.04 so the net proceeds after tax from your original gold investment 100 years ago would be $860.96 as compared to the $2,630.03 that you would have (less the taxes on interest over the years) from having the same amount of money ($20) in a bank account at 5% interest which was available for most of those 100 years. Gold comes out the clear loser in this comparison.

  • ISA41:10

    Hmmmmm……..Could the world elite Scum being trying to prevent Trump from taking office?

  • Kyle Thomas

    Merkel, Draghi and Juncker cannot possibly allow a banking crisis now. They will fight dirtier than any of us can possibly imagine. They have no morals, no decency, and no interest whatsoever in democracy or the will of the people. They will fight to the death with every weapon at their disposal.

    • socalbeachdude

      Huh? There is nothing those morons can do whatsoever about the collapse of the Italian banks which is ongoing this morning and will be ongoing for months. The problem is HUGE AMOUNTS OF BAD LOANS and there is ABSOLUTELY NOTHING that can be done about that issue other than write-downs and write-offs which will substantially impact the stocks of Italian banks. Period.

      • Lennie Pike

        “Unless the banks are loaned (not given) money by central banks which would be paid back quickly.”

        Could even be “loaned” by the federal reserve due to there being an extra joker in the deck that nobody new anything about – in which case it would be the American Sheeple who repay those “loans” through inflation.

        Does that compute with you HAL?

        I will be anxiously waiting for your reply to Guest’s factual assertion concerning The Plunge Protection Team’s 2008 public announcement.

        • Lennie Pike

          HAL was the computer that controlled the spacecraft in Space Oddysey 2001 – reminds me a lot of socalbeachdude. I think his real name is actually northcalsiliconvalleydude. I thought I had unplugged enough of his circuitry several TECB articles back, but apparently my work is not finished.

          • socalbeachdude

            What utter nonsense. Why is it so difficult for you to comprehend the ACTUAL FACTS in these matters? Why are you so consumed with nonsensical FICTIONAL FILM FANTASIES? I would suggest you learn about the Federal Reserve and what it is and what it does at:

            http://www.FederalReserve.gov

          • Lennie Pike

            Nope.

            And what business does the federal reseve have using a “.gov” website? The federal reserve is made up of PRIVATE bankster criminals. If there was ever a website meant to be a .com one – it would be theirs.

          • Lennie Pike

            Bye Ftwalker2015 – you have been dicredited yet again.

          • socalbeachdude

            Huh? What is an “Ftwalker2015?”

          • Lennie Pike

            If that reply was as truthful as all of your others then I am right – but I prefer HAL.

          • socalbeachdude

            Grow up and start dealing with actual facts and realities.

          • socalbeachdude

            The Federal Reserve is a quasi-public-private central bank that exists because of an ACT OF CONGRESS called The Federal Reserve Act and it is subject to full control by the Congress of the United States. Each and every year, the Federal Reserve RATES MORE THAN 94% OF ITS PROFITS TO THE US TREASURY and is now the largest single entity contributor to US government revenues each year. Are you somehow not aware of those facts?

          • Lennie Pike

            “quasi” means almost – not partially. Almost is not even close either.

          • Lennie Pike

            I’ve learned all I need to know by reading: The Creachture from Jekyll Island.

            No coffee, tea, or punch thank you.

          • socalbeachdude

            That “creature” book was originally written by G. Edwards Griffin in 1994 and is nothing but a piece of bogus and blatantly false propaganda garbage and little else. Its absurd assertions have been thorough and totally debunked and what is left of the 1% of factoids remaining there are of no significance whatsoever and the entire point of the book is to promote fantastical and inane and false conspiracy theories about the Federal Reserve System.

            The Story Behind ‘The Creature From Jekyll Island,’ the Anti-Fed Conspiracy Theory Bible

            The Fed was secretly created to enact vicious cycles of genocide. Or so this popular book would have you believe.

            It’s the kind of conspiracy theory so all-encompassing that it explains the very roots of all modern American wars, depression, economic boom, and (most importantly!) the darkest, best-kept secrets of international banking.

            Typically, the Federal Reserve is a government entity that frustrated high schoolers in America are forced to learn about before entering adulthood and forgetting exactly what it is or why it exists. The Fed is our central banking system that was created at the tail end of 1913 as a response to a string of financial crises. It is responsible for implementing the United States’s monetary policy, and is routinely and aptly described as “boring.”

            It’s all fairly mundane and unsexy (though hugely consequential) stuff. The Fed doesn’t bomb anything, invade anything, or even tax anything.

            The fatal flaw in Griffin’s analysis and breathless fear-mongering is, as is the case with so many prevalent conspiracy theories, that it takes a grain of truth and turns it into a salt mine of utterly laughable BS.

            http://www.thedailybeast.com/articles/2015/11/26/the-story-behind-the-creature-from-jekyll-island-the-anti-fed-conspiracy-theory-bible.html

            The US government is in debt to the tune of more than $19.5+ trillion because CONGRESS is grossly profligate and financially irresponsible and that has nothing to do with the Federal Reserve, its operations, its policies, or its structure.

          • Lennie Pike

            You’re a better straightman than Bud Abbot! I reckon I can play along for a little while longer for the good of those needing to learn the truth about the fraudulent and abusive financial system but this is probably going to get old fairly quickly.

          • socalbeachdude

            There is nothing “fraudulent” or “abusive” at all about the financial system in the US.

        • socalbeachdude

          Absolutely false. The Federal Reserve is a WHOLESALE CENTRAL BANKS THAT ONLY MAKES LOANS AT THE FEDERAL DISCOUNT RATE TO ITS MEMBER BANKS IN THE US. How many times does that have to be stated before that FACT sinks in for you?

          • Lennie Pike

            Is that a fact. Notice the missing question mark.

          • socalbeachdude

            The only FACT is that the so-called “PPT” does not exist.

          • Lennie Pike

            Is that a fact.

          • socalbeachdude

            Obviously, yes, it is a fact.

          • Lennie Pike

            Your reply to Guest’s factual assertion concerning The Plunge Protection Team’s 2008 public announcement was a joke. Do you need a link to said announcement so that you can accept correction? It could be the start of a whole new way of seeing things – from a factual perspective instead of one that has been intentionally programmed with b.s..

          • socalbeachdude

            Once again, there is no “PPT” and that was disbanded in 1993. The Federal Reserve has NOTHING WHATSOEVER to do with the stock markets and has warned repeatedly about excessive valuations. Didn’t you get the many memos? There was no “announcement’ whatsoever to the contrary in 2008.

            There is no such thing as the PPT. The so-called PPT was TOTALLY DISBANDED AND DISCARDED during the first Clinton 4 year Presidential term.

            The Plunge Protection Team (PPT) Does Not Exist – John Mauldin

            http://www.safehaven.com/article/721/the-plunge-protection-team

          • Gay Veteran

            wow, still using that ONE source

          • socalbeachdude

            That source – John Mauldin – cover the issue very definitively and correctly.

          • Gay Veteran

            well it must be true then /sarc/

      • samurai sword

        Italian banks are a basket case, true enough. They currently hold 360 billion euros of impaired loans (vis-a-vis 225 billion in equity), of which 200 billion are NPL. Italy has the second largest public debt load in Europe, at 130 per cent GDP, with an ageing demographic. The situation is so precarious that Italian market regulators have moved to temporarily restrict short-selling in shares of Banca Monte dei Paschi di Siena.

        So yes, it’s true that there are huge amounts of bad loans on the banks’ balance sheets, which will result in write-downs and write-offs. It’s also largely irrelevant.

        One reason why so many seasoned investors, financial pundits, and alt-right commentators have been consistently and spectacularly wrong in predicting collapse is because they continue to view markets as places of legitimate price discovery.

        As Paul Craig Roberts has repeatedly emphasized, markets as such no longer exist. There are only Central banks and their ability to intervene on behalf of an agenda.

        To this end, the purchase of equities and other assets, the propping up of TBTF banks, the relentless smashing of gold on the futures exchanges and the subsequent support for the dollar…are primarily about inducing investor confidence and manipulating the public’s perception of stability. As long as people believe, quite rightly, that Central banks can and will step in to “avert” a looming crisis, confidence in the system (no matter how corrupt) will remain unshaken and the status quo will continue.

        So spare us the warnings about the impact on Italian stocks. Whatever impact is felt will be blunted by continued ECB intervention IF that is part of the their agenda. I agree that a financial crisis is coming, but a crisis in confidence will occur first, and THAT will happen if and when markets are allowed to function without interference. As of right now, it’s just another day.

        • Lennie Pike

          Excellent and very eloquent summary of the truth.

          • socalbeachdude

            Nope.

          • socalbeachdude

            The Federal Reserve was established by CONGRESS and the FEDERAL RESERVE ACT in 1913 and has served the US extremely well throughout its 103 years of existence and will do the same over the next 100 or 200 years or more.

            All currencies in the world are fully backed by the current and future labor and productivity and assets of the citizens of their issuing governments. And that is the core problem that the world is now facing as most governments around the world have ESSENTIALLY RENDERED INSOLVENT THE NET WORTH OF THEIR CURRENCIES BY VASTLY OVERSPENDING BEYOND THEIR MEANS and there are severe consequences for doing so.

            The US dollar, like all currencies, is backed by the current and future assets and labor and productivity of the citizens of the issuing government which is VASTLY MORE VALUABLE than some little junk commodity such as gold or silver.

            The so-called “gold standard” was a very brief 60 year experiment from 1873 until 1933 which proved to be a VERY STUPID AND ABYSMAL FAILURE at which point it was thrown into the garbage bin of the most stupid notions in the history of the world and incinerated.

            The gold standard was TOTALLY DISCARDED DOMESTICALLY BACK IN 1933 as that brief 60 year failed experiment was an exercise in utter absurdity and the US economy had totally outgrown any use whatsoever for a little thingy commodity such as gold in relationship to its currency.

            Little niche collectible fungible commodity metals such as gold and silver have NO FINANCIAL RELEVANCE whatsoever in today’s modern electronic currencies and economies.

            The US long used a “silver standard” until that was discarded around 1870 and briefly replaced with the so-called “gold standard” which was totally discarded domestically in the US in 1933 as an entirely failed experiment. No currency can be limited to the production of some irrelevant “thingy” commodity such as gold or anything else when the population of that currency’s country is vastly expanding as was the case of the US by the 1930s.

            Nixon did not “abandon gold” at all. Nixon merely ended the Bretton Woods currency fixed exchange rate agreement which had been in force from 1944 to 1971.

            Nixon had nothing to do with the “gold standard” in the US which had long ago been TOTALLY DISCARDED BY THE US DOMESTICALLY back in 1933 and only a tiny shred of gold nonsense was even left in the form of international bank transaction convertibility which is what was discarded in 1971.

            Artificially constraining the growth of money supplies while the population is growing substantially CAUSES DEPRESSIONS and causes countries to fail economically.

            The most EGREGIOUSLY INSOLVENT COUNTRY IN THE WORLD TODAY IS JAPAN with government debt at around 250% of the GDP of Japan while the ratio in the EU is around 100% and in the US around 105%.

            Are you not aware that the total value of all gold ever mined is less than $7 trillion which is less than 1% of the world’s total assets of around $800 trillion? And of that total $7 trillion in currently absurdly elevated value for gold around 70% of all gold exists in the form of JEWELRY widely dispersed around the world leaving less than 30% of it even available theoretically to be used in any financial capacity and most of that is OWNED BY PRIVATE PARTIES leaving practically nothing available in the way of gold in relationship to any currencies anywhere in the world.

            Gold has NO FINANCIAL RELEVANCE whatsoever and never will ever again and the total value of the entire 180,000 or so metric tonnes which exist of the stuff are worth less than 1% of the the total assets in the world.

          • Lennie Pike

            Wrong!

            The U.S. has never fully been on the gold standard.

            For the U.S to be on the gold standard, and for it to function correctly, it’s currency must consist of physical gold, and must not in any part consist of notes “backed” or “convertible” to physical gold.

            During the years the U.S. was supposedly on the gold standard, due to gold’s physical properties, the existing technology was sufficient to implement a gold standard successfully – today even more so.

            The quantity of gold in existence to implement the real gold standard then, now, and any time in the future was, is, and never will an issue.

          • socalbeachdude

            All currencies in the world are fully backed by the current and future labor and productivity and assets of the citizens of their issuing governments. And that is the core problem that the world is now facing as most governments around the world have ESSENTIALLY RENDERED INSOLVENT THE NET WORTH OF THEIR CURRENCIES BY VASTLY OVERSPENDING BEYOND THEIR MEANS and there are severe consequences for doing so.

            The US dollar, like all currencies, is backed by the current and future assets and labor and productivity of the citizens of the issuing government which is VASTLY MORE VALUABLE than some little junk commodity such as gold or silver.

            The so-called “gold standard” was a very brief 60 year experiment from 1873 until 1933 which proved to be a VERY STUPID AND ABYSMAL FAILURE at which point it was thrown into the garbage bin of the most stupid notions in the history of the world and incinerated.

            The gold standard was TOTALLY DISCARDED DOMESTICALLY BACK IN 1933 as that brief 60 year failed experiment was an exercise in utter absurdity and the US economy had totally outgrown any use whatsoever for a little thingy commodity such as gold in relationship to its currency.

            Little niche collectible fungible commodity metals such as gold and silver have NO FINANCIAL RELEVANCE whatsoever in today’s modern electronic currencies and economies.

            The US long used a “silver standard” until that was discarded around 1870 and briefly replaced with the so-called “gold standard” which was totally discarded domestically in the US in 1933 as an entirely failed experiment. No currency can be limited to the production of some irrelevant “thingy” commodity such as gold or anything else when the population of that currency’s country is vastly expanding as was the case of the US by the 1930s.

            Nixon did not “abandon gold” at all. Nixon merely ended the Bretton Woods currency fixed exchange rate agreement which had been in force from 1944 to 1971.

            Nixon had nothing to do with the “gold standard” in the US which had long ago been TOTALLY DISCARDED BY THE US DOMESTICALLY back in 1933 and only a tiny shred of gold nonsense was even left in the form of international bank transaction convertibility which is what was discarded in 1971.

            Artificially constraining the growth of money supplies while the population is growing substantially CAUSES DEPRESSIONS and causes countries to fail economically.

            The most EGREGIOUSLY INSOLVENT COUNTRY IN THE WORLD TODAY IS JAPAN with government debt at around 250% of the GDP of Japan while the ratio in the EU is around 100% and in the US around 105%.

            Are you not aware that the total value of all gold ever mined is less than $7 trillion which is less than 1% of the world’s total assets of around $800 trillion? And of that total $7 trillion in currently absurdly elevated value for gold around 70% of all gold exists in the form of JEWELRY widely dispersed around the world leaving less than 30% of it even available theoretically to be used in any financial capacity and most of that is OWNED BY PRIVATE PARTIES leaving practically nothing available in the way of gold in relationship to any currencies anywhere in the world.

            Gold has NO FINANCIAL RELEVANCE whatsoever and never will ever again and the total value of the entire 180,000 or so metric tonnes which exist of the stuff are worth less than 1% of the the total assets in the world.

        • socalbeachdude

          There is nothing that can be done to save the shareholders of the major Italian banks and they have been CRASHING IN PRICE ALL YEAR LONG and will continue to do so. The ECB has NO TOOLS WHATSOEVER available to save these banks.

          • samurai sword

            Lol.

            So the ECB can purchase 80 billion euros worth of sovereign bonds per month (which is why the current yield on the 10-year Italian bond is a mere 2 per cent instead of 7 or 8 per cent) but they can’t recapitalize the banks via refinancing operations? Hilarious.

            This is a confidence game, not a liquidity issue. The ECB could purchase distressed shares outright (as does the Fed through its open market operations) and will do so via proxy institutions if necessary to keep the Italian banking system from imploding.

            The ECB has no tools whatsoever? That’s a good one…right up there with “all politicians are honest.”

          • socalbeachdude

            The ECB can only purchase HIGH QUALITY GOOD ASSETS from banks but can NEVER PURCHASE BAD ASSETS FROM BANKS. There is NOTHING that any central bank – including the ECB – can do about SOLVENCY ISSUES of member banks which is exactly what the problem is with Italian banks.

            This is NOT a “liquidity” or “confidence” matter but rather a SOLVENCY MATTER. Central banks CANNOT CREATE CAPITAL FOR BANKS and have no tools whatsoever to deal with solvency issues of banks. The only appropriate place for those issues to be addressed is in the BANKRUPTCY COURTS where both bondholders and shareholders will be totally wiped out.

            The fact of the matter is that the major Italian banks have more than $360 billion on their books of NON PERFORMING LOANS but only have CAPITAL OF ABOUT $220 billion which is a massive shortfall of capital to cover bad loans which renders those banks INSOLVENT.

            The Federal Reserve does not ever purchase any shares of stock of any bank or financial corporation and the ECB and other central banks NEVER PURCHASE ANY SHARES OF INSOLVENT BANKS OR OTHER FINANCIAL INSTITUTIONS.

            The ECB purchases of bonds has NO) IMPACT WHATSOEVER ON INTEREST RATES OF THOSE BONDS as they only purchase high quality EXISTING BONDS and are not purchasing any new bonds at all at bond auctions which is where the yields (interest rates) on bonds are all set by the bond markets which are vastly larger than the equities (stock) markets.

          • samurai sword

            Central banks have expanded their asset purchases to include equities. This is why the BOJ now owns over half of the ETF’s on the Nikkei.

            Why else do you suppose there is a trading desk at the NY fed? It ain’t to enhance the decor.

            Central banks never purchase shares of any bank or other financial institution? You are singularly naive. If the fed had nothing to hide, they would submit to an audit.

            The shrewd investor understands well that monetary policy is now fiscal policy. Central banks may not be omnipotent, but they make their own rules to their own advantage, despite what they say publicly.

            You remind me of the guy who turns his home into a fortress and then explains in detail why it can never be broken into.

            That night the house is burglarized because the front door was left unlocked.

            The point? You insist on seeing this as a banking crisis. It is only superficially. The deeper issue is one of perception management and the molding and shaping of public opinion. It is about maintaining confidence in a corrupt system of fiat money that would have collapsed long before now had Central banks not been allowed to intervene.

            As of this morning, the ECB is already discussing publicly the “precautionary” recapitalization of insolvent banks using state funds and by converting subordinated debt into equity…among other options. I said earlier that this is precisely what will happen.

            Of course, these are just attempts to prolong the inevitable and they will ultimately fail. From the ECB’s perspective, that doesn’t matter. It is faith in central banking institutions that must be preserved at all costs.

          • socalbeachdude

            The Federal Reserve has certainly not expanded their asset purchases to include equities and is PROHIBITED BY THE FEDERAL RESERVE ACT FROM OWNING EQUITIES.

            An ETF (Exchange Traded Fund) is NOT AN EQUITY (STOCK) but rather an ETF, or Exchange Traded Fund, is a collection of securities such as equities, bonds, and options that is bought and sold like a stock in real time on a stock exchange. Most ETFs are not actively managed, but instead are designed to track an index.

            The trading desk at the Federal Reserve Bank of New York is for trading BONDS and not for trading any equities. The Federal Reserve annually purchases about 8% of US Treasuries and holds a total of less than 13% of the outstanding $19.5 trillion in US Treasuries.

            The annual financial reports of the Federal Reserve are always fully independently audited each and every year and those highly detailed reports which typically run about 500 pages each and are signed off by their independent auditor each and every year.

            Those reports are at:

            http://www.federalreserve.gov/publications/annual-report/

  • CRAT

    Maybe I’m missing something, but as of 5:00 a.m. DAX is up big, Dow futures are up near 100, and Euro up.

    • Bill

      Remember TPPT?

      • socalbeachdude

        Huh? The PPT was fully ended in 1993.

        • Bill

          TPPT to me is ( the plunge protectection team), the elite group in the background who “operate” world governments and economies. Those in control certainly don’t want want Europe to fail…..

          • socalbeachdude

            The PPT DOESN’T EXIST these days and hasn’t for decades.

          • Bill

            I really wish I could believe that but, when I observe over many different events, the strange oscillations of the markets in given 24 hr periods something just seems a bit unnatural. As Trump might say, “rigged”.

          • socalbeachdude

            There are no “strange oscillations” in the US or global stock markets. Just lots of IRRATIONAL EXUBERANCE in defiance of the fundamentals and that has been the case ever since March 9, 2009.

          • Guest

            You are wrong. The President’s Working Group on Financial Markets, also known as the Plunge Protection Team, is still a functional organization. In October 2008 they issued a statement that they were taking actions to stabilize the financial system.

          • socalbeachdude

            Absolutely false. The Plunge Protection Team (PPT) Does Not Exist – John Mauldin

            http://www.safehaven.com/article/721/the-plunge-protection-team

          • Lennie Pike

            Nice try, but with use of b.s.. We’re all ROFLAO.

          • socalbeachdude

            There is no “PPT” and that was disbanded in 1993. The Federal Reserve has NOTHING WHATSOEVER to do with the stock markets and has warned repeatedly about excessive valuations. Didn’t you get the many memos? There was no “announcement’ whatsoever to the contrary in 2008.

            There is no such thing as the PPT. The so-called PPT was TOTALLY DISBANDED AND DISCARDED during the first Clinton 4 year Presidential term.

            The Plunge Protection Team (PPT) Does Not Exist – John Mauldin

            http://www.safehaven.com/article/721/the-plunge-protection-team

          • Gay Veteran

            you always sound so sure of YOURSELF, try providing some proof

          • Lennie Pike

            Nice one GV!

          • socalbeachdude

            That is covered clearly in John Mauldin’s article linked below.

          • Gay Veteran

            well if John Mauldin wrote it then it MUST be true /sarc/

          • socalbeachdude

            John Mauldin is 100% correct.

        • Bill

          By what event?

  • socalbeachdude

    Nothing is “plunged into chaos” at all and the Euro is practically unchanged from Friday at around $1.06 and the only thing plunging is gold as everything was pretty much fully “priced in” to the markets on this no vote on changing the Italian Constitution which was a very stupid notion and absolutely guaranteed to be resoundingly defeated by around 60%. Everything today went just as fully expected.

    • jaxon64

      Italy votes to prevent a power-grab move and to further centralize govt under the Executive.
      They voted to maintain the status quo–to change nothing of its current situation. What’s different?

    • mister_roboto

      The euro actually seems to be improving a bit, as it was in a bit of a freefall around the time of our Thanksgiving holiday here.

    • Gay Veteran

      “…absolutely guaranteed to be resoundingly defeated by around 60%….”

      and yet Renzi staked his position on it

      • socalbeachdude

        Renzi wanted to largely diminish the top level of Parliament in Italy so he could ram through his globalist nonsense and the people of Italy voted NO to keep the parliament structure the very same way it has been since 1949. Renzi is just racing to exit now so the whole mess with the banks in Italy doesn’t come crashing down on his head in a pile of financial rubble.

        • Gay Veteran

          avoiding the point:

          “…absolutely guaranteed to be resoundingly defeated by around 60%….”

          and yet Renzi staked his position on it

          • socalbeachdude

            Renzi knows that the banks in Italy are collapsing and his attempts with this referendum to restructure both the Constitution of Italy and the government of Italy were resoundingly rejected by 60% of the voters leaving both the Constitution of Italy and government of Italy fully intact. Renzi is the fool that chose to stake his Presidency on trying to force changes in Italy’s Constitution and government and he was told NO in no uncertain terms and chose to stake his office on that vote.

            Tough luck for Renzi. He lost big time.

  • FireHope

    Right now (10:30am GMT) the FTSE, DAX and CAC are all up by 1-2%. So the Euro fell a bit against the dollar? I think Michael is feeling a bit trigger happy.

    • Bill

      Stats posted at the time of Michael’s article certainly supported his claim, and likely will do so again sooner than you may think.

      • socalbeachdude

        Nope, they most certainly did not.

      • FireHope

        I don’t know Bill. The Dow reached yet another record high. It just seems sometimes as if he wants a an economic collapse to happen.

        • socalbeachdude

          Crashing stock markets certainly do not equal an “economic collapse” and they are guaranteed to go plunging dead ahead as EARNINGS CONTINUE TO PLUMMET and as the US dollar continues to skyrocket upwards and as interest rates keep soaring to ever higher levels. Those three things are simply not at all consistent with stock prices anywhere near the record high levels where they are right now. By the way, the single biggest gainer on the Dow (DJIA 30) which has propelled it upwards since November 8, 2016 is Goldman-Sachs stock!

  • DrM

    Italian banks in deep troubles, this can easily lead to the fall of Deutsche Bank!

    • socalbeachdude

      Laughably false. The Italian bank issues have nothing whatsoever to do with Deutsche Bank in Germany.

      • Gay Veteran

        if it was soooooooooo “Laughably false” then you could easily prove it

        • socalbeachdude

          Why in your wild imagination do you think that Deutsche Bank has anything at all to do with the insolvent banks in Italy?

          • Gay Veteran

            great strawman since I said NOTHING about Deutsche Bank.
            instead YOU are the one making allegations with NO proof

          • socalbeachdude

            The starting comment in this thread reads “Italian banks in deep troubles, this can easily lead to the fall of Deutsche Bank!” Hellloooooo?

  • aliceinwonder

    With every baby comes birthing pains. As we …the world…fight our way out of the global OWO chains, there will be some pain. But it will be worth it.

    • JC Teecher

      We, as in awakened conservatives, and some that are even Christians, may continue to fight our way out of the “global OWO chains”, but sadly, according to the prophetic word, we will not “break” the chains.
      In fact, when the smoke clears, and it will, we may see that we as a nation have become more enslaved and chained up by the neck.

      The only breaking of the chains of evil spirit bondage, comes from the blood of Christ, and that must reside within each individual, as personal liberty.

      The nations have gone too far, and the bondage of debt and fast worldly living, has grown too deep, within most individuals. But, there is hope, through grace and mercy, for all that are lost sheep; but, it must be accepted through “humbleness” as an innocent child.

      As long as we are still killing the innocent children in the womb, this land, or any land on the earth, will not ever be healed. That is a biblical fact that has been ignored for way too long, and sadly now accepted as love by over 50% of so-called Christians in the organized religions of the world…called the “church”.
      The church of whatever is working for me now.
      We have to ask ourselves; which church are we a part of and aligning with?

  • jj

    Almost all markets including US equities are up. Also the EUR/USD and GBP/USD are trading way up on the cash market. All European exchanges are trading up. The only thing down is the Asian markets. A collapse everyone has predicted for the last 3 years simply will not happen. It is all promoted by individuals who have no experience trading any financial markets but here they are forecasting markets. Go figure!
    To understand markets you must follow international capital flows. That old saying is true today as it was 100 years ago, “follow the money”!

    • JC Teecher

      I can agree that we have been hearing collapse since 2008, and it has “simply not happened” …yet.
      It will happen in time as the liberal agenda that has been in place for the last 30 years will determine our future for ussag.

      A heavy gourd thumping is coming to America for claiming they follow Biblical Christian principles ( nearly 80%), but in all reality, we have allowed a demonic and sinister plan to evolve with our gov.

      A day of reckoning is coming, as it always has in past history, when the Christian majority have taken up with worshiping idols and following false doctrines, that are of the different rock. “their rock is not our rock”.

      Too many worldly people have allowed the evil of fake politicians/leaders, to lead the America of 1700’s, to a point of no return.

      The trump administration has taken a wrong turn, before they have even entered the gate, much less made the first turn. Entertaining the likes of Mitt and Al “climate change” Gore, is a bright red flag for the underlining alignment, of bad people..NWO people.
      I warned of this early on, and now, we are seeing the tell tell signs of elbow rubbing with the Shadow gov/world participants.

      We are being set up for a whole lot of pain and suffering for ignorant folks, that play into the narrative of “the DOW/market is up, so everyting is gonna be awright mon”.

      It ain’t alright. I am hearing the words from an old Aerosmith song…..

      ” There’s something wrong with the world today
      I don’t know what it is
      Something’s wrong with our eyes
      We’re seeing things in a different way
      And God knows it ain’t his
      It sure ain’t no surprise
      Livin’ on the edge
      Livin’ on the edge
      Livin’ on the edge
      Livin’ on the edge
      There’s something wrong with the world today
      The lightbulb’s gettin’ dimmed
      There’s meltdown in the sky
      If you can judge a wise man
      By the color of his skin
      Then mister, you’re a better man than I
      Livin’ on the edge
      You can’t help yourself from fallin’ …………………….”

  • Christoph Weise

    The global markets do not any longer respond to such developments because they are rigged and presumably the central banks intervene and purchase stocks to keep the markets from crashing.

    • socalbeachdude

      Absolutely false.

      • Gay Veteran

        well His High socalbeachdude has spoken!

    • Lennie Pike

      Absolutely true!

  • ali

    Crash!! What crash. All Markets are up. Just another prediction that went wrong.

    • alan

      People under estimate the power of the printing press.

      • socalbeachdude

        What “printing press” are you talking about?

        • Lennie Pike

          The one that prints fiat money – moron.

          Yes the time has arrived to resort to name calling – and you caused, asked for, and deserve it.

          • Lennie Pike

            After all – to resort to it is human nature – something you are severely lacking HAL.

          • socalbeachdude

            I’d suggest you park your sci-fi fantasies and start dealing with realities, dude.

          • socalbeachdude

            There is no single “printing press” and most all money today is ELECTRONIC MONEY with very little of it actually printed. The most egregious central banks in terms of money creation are the PBOC (People’s Bank of China) and the BOJ (Bank of Japan).

            The PBOC has created more than $30 TRILLION OF MONEY AND CREDIT over the past 10 years which is the most unprecedented expansion of money in the history of the world – despite the fact that China’s economy is about half the size of the US economy and that the US money supply has only increased by around $4 trillion to a total of around $13 trillion as measured by M2 during the same 10 year time period.

            As a consequence, the renminbi (RMB / yuan) is now plunging in value and bad debts in China now exceed $6 trillion.

          • Lennie Pike

            Yes Forrest, I know that – about the printing press. I was speaking of the printing press that “prints” electronic fiat money also (obviously) since 99% of fiat money is of the electronic variety. You should learn how to understand someone’s meaning and not to take them literally when it is obvious that you shouldn’t be. Must be that artificial intelligence computer programming technology has not advanced sufficiently to make that possible.

            You lecturing us here at TECB is like an elementary school teacher trying to teach university graduate students – and you’re teaching the same lies taught in goverment schools – which are ultimately controlled by the criminals of the western bankster criminal cartel that you admire so much.

            The rest of your “facts” were bankster b.s.! What about the $19 trillion printed up by the federal reserve and given to European banks to bail them out, and given also to individuals?

          • socalbeachdude

            You should learn FACTS AND PRECISION and not attempt to excuse your ignorance with the lack thereof.

            Your absurd and preposterous assertions about the Federal Reserve printing up $19 trillion and giving it to European banks is not only DEAD WRONG but absolutely laughably bogus.

            No parent foreign bank ever got a single penny of funds from the Federal Reserve at all during the 2007-2010 period nor did they get a single penny before or after, and the money that was LOANED to the US operations and US banks were strictly VERY SHORT TERM LOANS FROM THE FEDERAL RESERVE THROUGH THE FEDERAL DISCOUNT WINDOW with not a single penny ever “given” to any bank, and all of those loans were nearly immediately repaid with interest to the Federal Reserve with NO NET COST WHATSOEVER to the Federal Reserve.

            Moreover, at no time was there ever more than $1.5 trillion outstanding in loans to banks from the Federal Reserve and all such funds were LOANS which were nearly immediately repaid by the US banks to the Federal Reserve at the very high Federal Discount Rate which is always 0.50% above the Federal Funds Rate at which banks can borrow from each other.

          • Lennie Pike

            False – laughably style.

          • socalbeachdude

            What I stated is 100% true and correct.

  • Cal

    After two world wars and the cold war where Europe fought off dictators trying to dominate the continent the Europeans allowed this monstrous EU to take control without firing a shot. What ye shall sow ye shall also reap. Europe survived the first three onslaughts mentioned above but not this one and now the rest of the world will be dragged into this maelstrom.

  • Rhino Horns

    Good! Give “the boot” to the criminal E.U.

    • socalbeachdude

      There is nothing whatsoever “criminal” about the EU.

  • alan

    They will print their way out of it and the markets will close green, next!

    • socalbeachdude

      The Federal Reserve is tightening and contracting the money supply and that has been the case ever since more than 2 years ago on October 31, 2014.

  • greanfinisher .

    The DJIA is up today so it appears that Wall Street didn’t agree with your assessment.

    • socalbeachdude

      Indeed the Dow (DJIA 30) set a record high today – largely due to big gains in Goldman Sachs stock which is one of the 30 Dow stocks on the index.

  • richjerk1929

    a lot of things could happen..

  • jakartaman

    There is a black swan planned and ready to go to bring down the worlds economy. The time is not just right but it sure is getting closer. It will be when least expected and fast!

  • richjerk1929

    they are more terrified of the general public than you think ,, in almost all of the book of proverbs the wicked are swept away , ponder it.

  • Richard O. Mann

    The swing to the right, which seems to be sweeping the world, may be that push the world economy has been waiting for. But, once the push is made, there is not way of telling which way things will go.

  • nohomehere

    This vote? Curious how the “no” vote represents a lack of confidence in leadership !
    Within EU countries that are considered the fringe economies, no one can deny a trend of voters rejecting globalization but now we are witnessing the so called core countries of Italy and even France manifest a lack of confidence !
    Forcing the unity of Europe has always ended with the continent conflict !

    The U.S. is going into Isolationist mode with an Isolationist president .
    We will again resist getting involed in the bail out of the Euro zone !
    It is no secret that walls are going up !

    http://www.theatlantic.com/international/archive/2016/05/donald-trump-wall-mexico/483156/

    http://www.cnn.com/2016/09/07/europe/calais-wall-migrants/

    http://www.reuters.com/article/us-europe-migrants-fences-insight-idUSKCN0X10U7

    Everybody knows that trade barriers also known as trade wars lead to fighting wars!
    There definitly is a trend underway it is merly the pendulum swinging the other way ! The harder the pundits try to fight the change in direction the worst the conflicts ! I would venture to say that the division being evidenced in the recent American election is going to spread globally,
    on the not too distant horizon!

    ” Debts that cannot be paid won’t be paid” Micheal Hudson

    • socalbeachdude

      No, the US is certainly not going into “isolationist mode” at all and the globalization continues fully in progress.

      • Gay Veteran

        riiiiiiiiiiiight, that why Carrier didn’t change their plans………oh wait, they did

        • socalbeachdude

          Carrier only kept those 1,000 jobs in the US because they received a $7 million bribe to do so from taxpayers courtesy of the State of Illinois and that is being severely criticized as crony capitalism even by Republicans.

          Sarah Palin condemns Trump’s deal with Carrier as ‘crony capitalism’… as rumors that she will get a cabinet job fade away

          http://www.dailymail.co.uk/news/article-3996262/Sarah-Palin-criticizes-Trump-s-Carrier-deal-crony-captialism.html

          • Gay Veteran

            but YOU said “…the globalization continues fully in progress….”

            keep whistling past that graveyard

          • socalbeachdude

            1,000 jobs out of 324,000,000 people in the US is smaller than a speck of dust and there are more than 7,000,000,000 people in the world. Those 1,000 jobs were PURCHASED WITH TAXPAYER FUNDS GIFTED TO CARRIER and don’t matter at all in the big picture and that act sets a very dangerous and costly tone which simply cannot be afforded in the US and will hit substantially opposition.

          • Gay Veteran

            well in that case let’s just sign more “free trade” agreements

          • socalbeachdude

            Most global trade agreements have been very good for the partners signing them.

  • nohomehere

    This vote? Curious how the “no” vote represents a lack of confidence in leadership !
    Within EU countries that are considered the fringe economies, no one can deny a trend of voters rejecting globalization but now we are witnessing the so called core countries of Italy and even France manifest a lack of confidence !
    Forcing the unity of Europe has always ended with the continent conflict !

    The U.S. is going into Isolationist mode with an Isolationist president .
    We will again resist getting involed in the bail out of the Euro zone !
    It is no secret that walls are going up !

    Everybody knows that trade barriers also known as trade wars lead to fighting wars!

    There definitly is a trend underway it is merly the pendulum swinging the other way ! The harder the pundits try to fight the change in direction the worst the conflicts ! I would venture to say that the division being evidenced in the recent American election is going to spread globally,

    on the not too distant horizon!

    ” Debts that cannot be paid won’t be paid” Micheal Hudson

    • socalbeachdude

      Nope.

    • Gay Veteran

      isolationist? no, non-interventionist

  • LIZ THE SHIZ

    oh my, the sky is falling, those horrible populist nationalistic movements are gaining traction, what will become of our centralized one world governmental utopia , this is what happens when people get fed up with being treated like pigs to the slaughter by a bunch of unholy elites who only talk among themselves and think they know what’s best for everyone else as long as they benefit above all else , it’s the fall of the Roman Empire all over again

    • socalbeachdude

      Nothing has changed of any significance and the global power structure is fully intact with Goldman Sachs stock SOARING as it becomes more in control than ever!!!

  • socalbeachdude

    The global stock markets are certainly NOT “plunged into chaos” at all and proceeded to set record highs again today in the US. About the only thing that fell was that preposterously overpriced junk commodity called gold.

  • socalbeachdude

    There is no “chaos” at all in Italy and the structure of the government there and its Constitution remains unchanged as a result of the NO vote with 60% on Sunday.

  • socalbeachdude

    What utter nonsense, dude.

    • Lennie Pike

      I agree with that because as I said – anyone who tries to use gold as a currency will be assasinated ( as Ghadaffi was), or their country will be attacked by the militaries under the control of the synagouge of satan’s ashkenazi khazarian western bankster criminal mafia.

      • socalbeachdude

        Gold, obviously, is not accepted anywhere in the world as a currency for a floating rate exchange value, but you are perfectly welcome to use LEGAL TENDER US Mint 1 oz. American Eagles for their STATED FACE VALUE OF $50 each the next time you go shopping.

        • Lennie Pike

          I accept gold as payment at a floating rate of exchange, as do many other individuals who hold the use of fraudulent government fiat “money” down to a minimum. So your statement is laughably false – gold is accepted in many places in the world, and I know for a FACT that the criminals who control fiat currencies prefer to accept, and in many cases demand to be paid in gold over their own fraudulent devaluing “money” – which should go without saying.

          “Gold and silver is money, and nothing else is” (J. Pierpoint Morgan)

          • socalbeachdude

            You are an individual among more than 324,000,000 Americans so if you choose to BARTER anything with commodities that is simply your choice and your trading partner but is TOTALLY IRRELEVANT to the fact that GOLD IS JUST A COMMODITY and is NOT LEGAL TENDER FOR ANYTHING at floating exchange values anywhere in the world.

            Gold has NO FINANCIAL RELEVANCE whatsoever and never will ever again and the total value of the entire 180,000 or so metric tonnes which exist of the stuff are worth less than 1% of the the total assets in the world.

    • samurai sword

      You kidding me? China introduced a yuan based benchmark for gold bullion in April 2015, not long after the IMF added the Yuan to its SDR basket.

      If this isn’t preparing to eventually convert the yuan to a gold standard, then I’ve got a bridge in Brooklyn for sale.

      What’s preposterous is the idea that China (and Russia) would accumulate thousands of tons of the yellow rock only for use as pretty paperweights.

      You really need to drop your subscription to the Wall Street Journal.

      • socalbeachdude

        Laughably false. The People’s Republic of China did no such thing at all as you falsely assert and only owns about 1670 metric tonnes of gold which is worth less than $100 billion which is a tiny grain of sand relative to the more than $30 TRILLION OF MONEY they have created in the renminbi (RMB / yuan) over the past 10 years.

        There is no “gold backing” whatsoever of that LUDICROUSLY AND UNPRECEDENTEDLY OVERPRINTED CURRENCY which has seen the biggest expansion in creation of any currency that has ever existed in the history of the world. And that has all occurred on the BACK OF THE US DOLLAR to which the renminbi is pegged with very minimal float.

        China’s economy is about HALF THE SIZE OF THE US ECONOMY which is an $18 trillion a year economy, and over the past 10 years the total US money supply has only increased by around $4 trillion to now around $13 trillion as measured by M2 whereas the Chinese money supply has increased by more than $30 trillion to now around $34 trillion from only around $3 trillion.

        Adding the renminbi to the IMF currency basket changes absolutely nothing.

        The total value of all of the around 180,000 or so metric tonnes of gold ever mined in the history of the world is far less than $7 trillion and more than 60% of that is in the form of privately owned GOLD JEWELRY widely distributed around the world, leaving less than 40% (around $2.8 trillion) even theoretically available in the form of bullion to use in any monetary capacity and of that only around 32,000 metric tonnes of gold is owned by all of the central banks in the world and that is worth less than $2 trillion with China’s share of that being only about 1,670 metric tonnes worth about $100 billion which is a grain of dust against their money supply of more than $34 trillion.

        • Lennie Pike

          How much would the Yuan be worth if China decided to stop exporting products to the U.S. and make them more easily available to their own people instead? – at the same time they announce that the Yuan is convertible to gold?

          That will happen when U.S. interest rates rise, and they will rise whether your federal reserve wants them to or not.

          • socalbeachdude

            The value of the Chinese renminbi (RMB / yuan) is MOSTLY DEPENDENT ON THE VALUE OF THE US DOLLAR since it is PEGGED TO THE US DOLLAR with very minimal float.

            The US is the second largest trading partner with China with the EU being the largest. If China cut exports to the US then the ECONOMY OF CHINA WOULD COLLAPSE and the value of the renminbi (RMB / yuan) would go plummeting.

            Your notion of converting $34 trillion in renminbi to the less $100 billion of gold owned by the People’s Republic of China with their holdings of around 1,670 metric tonnes of gold is obviously utterly absurd.

            The US government owned about 5 times as much gold as the government of the People’s Republic of China with its around 8,200 metric tonnes of gold, but even the total value of the US gold is only worth about $350 billion at today’s absurdly inflated prices for gold of around $1,186 per ounce and is carried on the books of the US Treasury at only around $11 billion total based on the current US government official gold price of $42.42 per ounce.

            http://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm

            The government of China’s only “gold strategy” is to limit the amount of gold it owns to a maximum of 1.5% of its reserves. The government of China never had any significant interest in gold and has only about 1,677 metric tonnes worth less than $100 billion which it has increased its renminbi money supply from less than $3 trillion 10 years ago by more than $30 trillion to right around $34 trillion today making it the most egregious money printer in the world with no other country coming even remotely close. Not to mention that China is a country with an economy half the size of the US while the total US M2 money supply much less than half that of China at only around $13 trillion.

            As to the price of gold it has plummeted more than 40% since April 2011 and is on its way towards and to its mean of $456 per ounce and then lower.

          • Lennie Pike

            Laughably incorrect.

          • socalbeachdude

            Yes, you certainly are incorrect and that is putting it very mildly and nicely.

          • Lennie Pike

            That “Lauughably incorrect” comment was to a previou comment of yours – not to your error that you corrected. Now show me a chart showing the future price of gold which will reach five hundred and how ever many odd dollars as you claimed will occur.

          • Lennie Pike

            The Bottom line when it comes to the price of gold is that gold’s price is surpressed and fixed (in the criminal sense of the word) in the futures markets by the central bankster cartel. If gold’s price discovery was determined in a free market, it’s price in U.S. Dollars would be more than $10,000 per ounce, and that would be in today’s economy – one that had not yet reached the point of hyperinflation – which will occur in the not to distant future when ever Russia and or China decide to pull the lever.

            So, in summation – your facts about the price of gold are totally irrelevant to anything, and there was no point to be made whether you think you made one or not.

          • socalbeachdude

            Absolutely false. Gold is nothing but a little niche fungible commodity whose price has been driven up to absurdly overvalued levels by MANIC SPECULATORS and it is in the process of reverting towards and to its mean of $456 per ounce and then will head lower to perhaps as low as $232 per ounce.

            As to China, it is the most financially troubled country in the world which has egregiously increased its money supply in an unprecedented manner by more than $30 trillion over the past 10 years from less than $3 trillion and that has been done on the back of the US dollar to which their currency, the renminbi (RMB / yuan) is largely pegged. Now the renminbi is plunging in value and is down around 6% this year and just under 7 renminbi per US dollar and rapidly headed down to around 8 renminbi per US dollar.

            The PRC (People’s Republic of China) owns only around 1,677 metric tonnes of gold which is about 20% of the gold holdings of the US government of around 8,200 metric tonnes and the entire batch of gold owned by the PRC is worth only around $80 billion even at today’s preposterously inflated gold price of around $1,176 per ounce.

            Russia’s economy is only a $2.4 trillion economy which is smaller than the economy of the State of California which is the 6th largest economy in the world and Russia only owns a tiny little bit of gold which is of no significance at all in the big picture.

            Moreover, India is the world’s second largest gold market and is considering banning gold imports which would dramatically slam down the price of gold over the coming year.

            Will India Ban Gold Imports?

            Reports emerge of possible gold curbs by the Indian government.

            India to see a 60 percent drop in 2016 imports.

            Look at the technicals for a better clue.

            World’s second largest gold (NYSEARCA: GLD) importer India has started a strictly implemented demonetization drive banning the higher currency denominations of Rs 500 and Rs 1,000 in an attempt to end the circulation of unaccounted income (black money) and corruption. The surprising and shocking announcement by Prime Minister Narendra Modi is being seen as the big gamble on the Indian economy. If poorly executed, the fiscal reform will take the economy backward by several quarters.

            http://seekingalpha.com/article/4025869-will-india-ban-gold-imports

          • Lennie Pike

            “The price of gold has been driven up” – o.k. HAL whatever you say, it’s just that everything you say is a result of piss poor intentionally deceptive programming.

            Check out gata.org for many articles on how the price of gold has been “driven up” – many criminal government and banking (what’s the difference?) officials on your side who have assisted in driving the price DOWN, now admit to their scheme.

            And what’s up with all of these mysterious banker deaths that defy all laws of probability? Do you think maybe they were the honest ones – that from the beginning of their carreers didn’t understand what they were getting into and wound up knowing too much maybe?

          • socalbeachdude

            Gold has no earnings power at all.

            If someone put $20.67 in a bank account at 5% interest in 1913 instead of buying $20.67 worth of gold (a 1 oz. gold coin back then), the value of that bank account would now be $2,630.03 which would be worth $1,525.03 more than the current $1,105.00 value of the gold coin or a whopping 138% more than the value of the gold coin. Run the numbers for yourself at:

            http://www.moneychimp.com/calculator/compound_interest_calculator.htm

            Either way there would have been or would be tax consequences. The interest over the 100 years would have been taxed at ordinary income tax rates to the account holder. The capital gains on the gold coin when sold now to turn it back into cash would be taxed at 28% of the capital appreciation which would be $1,085 ($1,105 / oz./ less original $20 cost basis) and 28% of that would be $309.40 so the net proceeds after tax from your original gold investment 100 years ago would be $795.60 as compared to the $2,630.03 that you would have (less the taxes on interest over the years) from having the same amount of money ($20) in a bank account at 5% interest which was available for most of those 100 years.

            Gold comes out the clear loser in this comparison.

            As to the Goobers Against Truth Association (GATA) those dolts are nothing but a bunch of clueless lying
            gold pumpers who put out nothing but absurd and laughably false propaganda.

          • socalbeachdude

            The only error in my comment was stating that gold had peaked at $1,927 per ounce in April 2011 which was 5 months earlier than when that price was actually reached on September 5, 2011 and all of the rest of the facts stated in my comment are 100% correct.

            At any price above $456 per ounce gold is preposterously overvalued and that speculative froth will rapidly be blown off the top.

            THE ISSUE IS THE PROPER PRICE OF GOLD.

            An array of reasonable historical metrics can be used to establish the proper price of gold, including:

            1) Its historical mean which would put gold right around $456 per ounce

            2) Its 16:1 historical ratio against silver which would put gold right around $276.48 per ounce based on silver being around $16.60 per ounce

            3) Its inflation adjusted price today from its last stable historical price of $35 per ounce in 1971 which would put gold right around $386 per ounce.

            4) Its current official US government price of $42.22 per ounce which is how the approximately 8200 metric tonnes of US government gold are valued:

            http://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm

          • Lennie Pike

            The highest price of gold in April 2011 was $1,428, and now the price is $1,168, and that is not anywhere near the 40% reduction in price that you claimed to. Chwaso have occured. So check the historical gold price charts and do the math HAL. Therefore why should anyone here believe any of the rest of your intentionally untrue b.s. programming.

            You sir, are totally full $hit.

          • socalbeachdude

            How can you be so DEAD WRONG when the facts are there for all to see just by looking at the charts?

            Gold became a CYCLICAL commodity after it was first allowed to trade on the commodities exchanges in 1972 and it has been extremely volatile in both price directions ever since then. It rose 2300% in the ten year period from 1971 to January 1980. Then it spent the next 22 years from January 1980 into 2011 plummeting in price by 70% from $850 to $250 per ounce. Then it spent the next 10 years from 2001 to 2011 rising by 670% from $250 to $1927 per ounce. Starting in April 2011 gold started plummeting and has now plunged around 40% from $1927 per ounce down to $1168 per ounce which is a drop of $759.00 per ounce.

          • Lennie Pike

            Again – the price of gold in Apr. 2011 was nowhere near the $1,927 that you claim.

            Proof doesn’t get much better than a historical gold chart, so for you to claim that the price of gold for a certain date was different than the price shown in the chart is very ballsy – and stupid. Like I said – a stupid move like that renders all of your other “facts” highly suspect. Actually, laughable is the best word to describe them.

            Go to kitco or 24hrgold to find all the charts you will ever need for your correction. The topic of precious metals is the one, more than any other, in which you will be SBAR (Shamed Beyond All Recognition) if you dare to enter into that arena with me.

          • socalbeachdude

            It was on September 5, 2011 that gold reached its intraday high of $1,927.00 per ounce and closed at $1,905.10 per ounce, rather than in April 2011 from which it has now collapsed in price by 40%. The only discrepancy in my analysis was the exact date which was early September 2011 versus early April 2011 and I have corrected that above.

            What is the highest ounce of Gold price in the past 10 years?

            In the past 10 years, the highest spot price Gold sold for on the spot market was $1,905.10 USD per troy ounce on September 5, 2011 after reaching an intraday high of $1,927.00 per ounce that day in early September 2011.

            http://www.apmex.com/spotprices/gold-price

  • socalbeachdude

    Goldman Sachs shares (a DJIA 30 component) are now up more than 40% since November 8, 2016 when Donald Trump was elected to become the next President of the United States and are the biggest reason the Dow is soaring!!!

  • Marco

    I think you are not well informed. No Chaos on the markets. Quite the contrary! Stocks Exchange gain money and the spread go down! Not populism, but we have simply taken in consideration that the reforms were bad for us and our nation and people. and we have said NO.

    • socalbeachdude

      What the referendum in Italy was all about was drastically cutting the number of representatives in the highest level of parliament down to around 100 so Renzi could shove through “reforms” and the people of Italy said NO as they correct perceived that as a very bad and stupid notion.

      • Marco

        I do not think so. Stupid is speaking about something that it is not well known. Reforms are not jut to cut the number of representatives, but much more. Furthermore, what you have said is not right. In Italy there are 2 different houses of the parliament: one of the deputeis (around 600 people) and the other of the senators (300 people). The reforms wanted to reduce these last ones to around 100, but be very careful: in this case you would have lost the right to vote for them and they would be named by someone. They would be some majors and councilors of some regions. They would do their work+the work of this, let me say ‘little house of senators’. Impossible to do well both! Perhaps italians are not so stupid as someone want we believe… space is too short to fully explain the reforms what they have tried to foist us.

        • socalbeachdude

          The so-called “reforms” that received a 60% NO vote were extremely stupid and would have altered the structure of both the Italian Constitution and government which is why they were resoundingly rejected by 70% of voters who voted.

  • socalbeachdude

    Fears mount of multiple bank failures if Renzi loses referendum

    Up to eight of Italy’s troubled banks risk failing if prime minister Matteo Renzi loses a constitutional referendum next weekend and ensuing market turbulence deters investors from recapitalising them, officials and senior bankers say.

    Mr Renzi, who says he will quit if he loses the referendum, had championed a market solution to solve the problems of Italy’s €4tn banking system and avoid a vote-losing “resolution” of Italian banks under new EU rules.

    Resolution, a new regulatory mechanism, restructures and, if necessary, winds up a bank by imposing losses on both equity and debt investors, particularly controversial in Italy, where millions of individual investors have bought bank bonds.

    The situation is being closely watched by financiers and policymakers across Europe and beyond, who worry that a mass failure of Italian banks could trigger panic across the eurozone banking system.

    In the event of a “No” vote and Mr Renzi’s exit, bankers fear protracted uncertainty during the creation of a technocratic government. Lack of clarity over a new finance minister may lethally prolong market jitters about Italy’s banks. Italian lenders have more than halved in value this year on concerns about their non-performing loans.

    Italy has eight banks known to be in various stages of distress: its third largest by assets, Monte dei Paschi di Siena, mid-sized banks Popolare di Vicenza, Veneto Banca and Carige, and four small banks rescued last year: Banca Etruria, CariChieti, Banca delle Marche, and CariFerrara.

    Italy’s banks have €360bn of problem loans versus €225bn of equity on their books after successive regulators and governments failed to tackle a bloated financial system where profitability was weakened by a stagnant economy and exacerbated by fraudulent lending at several institutions.

    But the market solutions, including a JPMorgan plan to recapitalise Monte Paschi and the efforts of a government-sponsored private vehicle Atlante to backstop problems at smaller banks, are looking shaky in the face of expected market turbulence if a “No” vote wins, said officials and bankers.

    Lorenzo Codogno, a former chief economist at the Italian Treasury and founder of LC Macro Advisors, argued that the “biggest concern” in the aftermath of the referendum is its impact on “the banking sector and implications for financial stability”.

    https://www.ft.com/content/e588ea6a-b49f-11e6-961e-a1acd97f622d

  • socalbeachdude

    Banks do run as businesses and must maintain SOLVENCY at all times in the United States. In Italy, however, vast amounts of bad loans on the books of banks as assets have rendered the top Italian banks totally insolvent and the government of Italy has failed to do anything about that massive problem. Bad loans at banks in Italy classified as NPLs (Non Performing Loans) are now in excess of $360 billion. Realizing (recognizing) those losses would render nearly ALL OF THE MAJOR BANKS OF ITALY AS INSOLVENT as their capital / equity is only worth around $220 billion.

  • lorenzo

    Continue like that. Continue. The more
    you alarm with false news surely for the interests of your masters,
    the more the people will reject your hidden and plain plans.

    Italian stock jumped up as never after
    the vote; and the Italian have never been so saviours in voting so.

    • Marco

      Totally agree.

  • thegeorgespyman

    There will be fluctuations, but overall escaping the monolithic straight jacket of the European Union will be a good thing. The elimination of imbecilic rules and regulations and waste of tax dollars will come to an end. Bigger is not exactly better. That was a lesson called the economy of scale. Several national tailored central bank policies are better for all. Another factor in this is the Trump effect. Whether the eurocrats like it or not, there’s a new Marshall in town and he’ll be making other nations great again by reducing the effects of these onerous trade and union deals. We need a quasi world government like we need a hole in the head. It can be anticipated if economic union was the cause of economic malaise, then the elimination of it will stimulate economies and markets.

    There was an old saying. It doesn’t matter how hard you row if you’re rowing in the wrong direction. Advocates of the EU rowed very hard, but in the wrong direction. In wars past it was called Mitteleuropa. It was almost as old as the plague and just as deadly because it was implemented by force. This time they use guile with no better effect.

    https://en.wikipedia.org/wiki/Mitteleuropa

    • socalbeachdude

      The European Union (EU) and EuroZone (EZ) have brought tremendous prosperity to the 605 million people of Europe and have made it the largest multi-country trading block in the world in the short 14 years since 2002 when the Euro was adopted by many of those countries in the EU.

  • socalbeachdude

    Matteo Renzi formally resigns as Italian prime minister

    Italy’s Prime Minister Matteo Renzi formally resigned on Wednesday, paving the way for a rapid change of government.

    In a meeting with Italian President Sergio Mattarella after the upper house approved his government’s budget for 2017, Renzi followed through with the resignation he tendered early Monday. The president had earlier asked Renzi to stay in his position until the budget was secured.

    http://www.marketwatch.com/story/matteo-renzi-formally-resigns-as-italian-prime-minister-2016-12-07

  • socalbeachdude
  • Mountainhiker

    I remember that when England stepped back from the EU(want to be one world government) the melt down was predicted, did not happen! Suspect that if Italy backed away, the same will occur. What you may see is an EU becoming less of a dictatorship in order to survive..

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