[ExI] Warren Buffett is worried too and thinks Republicans are "asinine"

[Mirco Romanato]

Il 19/10/2013 17:01, spike ha scritto:

> Ja.  BillK, how are the Brits doing?  Are you guys balancing your books
> these days?  Eugen, how are the Germans doing?  Anders, Swedes?  Italians
> present?  Where did all our ExI-talians go?  You guys used to chatter a lot
> here, we enjoyed that.  Are you guys balancing the books?  Anyone anywhere
> else?  Do chime in here please.

Italy is not balancing the books.
But government politicians sell "recovery the next year" every time they
open their mouths.

By the US standard Italy is not in bad shape, we have 130% debt/GDP
ration, but it is all there (less the unfunded liabilities).
The US, in comparison is just over 100% just with the Federal
Government. I do not see the Federal Government do nothing if California
default.

By the way, Italy have a long standing "primary surplus" and the
government balance. The problem is the surplus become a deficit when the
interest on the debt are added up (around 10% of the revenues go there).
The problem, like in the US, is no politician is serious about cutting
the spending. They are just forced to be a bit less reckless because
they can not force the ECB to print € just for them.
The ECB print € for them as much as they pay back the bonds to the
German banks.
If we default the German banks go tits over arse just two hours later.


Mirco