Italy’s Proposed Parallel Currency Is The Biggest Threat To The Eurozone. The Global Economy is Nearing “The Great Reset”
- Italy’s Proposed Parallel Currency Is The Biggest Threat To The Eurozone
by John Mauldin, https://www.forbes.com/
I think the global economy is nearing what I call “The Great Reset.”
My thesis is that over the next decade we will endure increasingly damaging debt crises that culminate in a coordinated global default. There are limits to how much leverage the world can handle, and I think we are already beyond them. And that is before we have a global recession. The only question now is how we will manage the collapse.
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I previously quoted former BIS Chief Economist William White on how this will all unfold. Here’s his key point again.
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… the trigger for a crisis could be anything if the system as a whole is unstable. Moreover, the size of the trigger event need not bear any relation to the systemic outcome. The lesson is that policymakers should be focused less on identifying potential triggers than on identifying signs of potential instability.
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Bill says the financial system is so fragile that practically anything could trigger a crisis. Better to watch for signs of potential instability. And one of the hot spots today is Italy.
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Parallel Currency
Italy’s new government, an unexpected coalition between two populist parties, could blow up the fragile trust that keeps Europe together. And the leading parties may even be planning for it.
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read more.
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