The 9th largest economy in the world, crashed after banking stocks were dumped to create terror @ the financial markets. Now, the financial crisis in Italy threatens to literally tear the EU apart.
While the mainstream media in the United States continues to be obsessed with all things Kavanaugh, an international financial crisis threatens to spiral out of control.
Stock prices are falling and currencies are collapsing all over the planet, but because the USA has been largely unaffected so far the mainstream media is mostly choosing to ignore what is happening.
But the truth is that this is very serious. While South America has become an economic horror show, the situation in Brazil continues to get worse. The central bank of Argentina has just raised interest rates to 65% to avoid a financial collapse.
The Argentine peso has lost approximately 50% of its value so far in 2018.
On Friday, Italian stocks had their worst day in more than two years, and it was the big financial stocks that were on the cutting edge of the carnage. It is easy to criticize Italy, but what we are doing here in the United States of North America is just as bad if not worse.
Along with the main Italian stock index .FTMIB, the banks had their worst day since the June 2016 Brexit vote triggered a sell-off across markets.
Bond markets are also suffering. The yield on the benchmark 10-year Italian bond jumped in Friday morning trading. The 10-year yield hit 3.22% in early morning trade, an increase of more than 10%.
The new Italian government and the EU are at odds with one another, and the European elite were greatly displeased when Italy approved a new budget that was far larger than anticipated.
The coalition said in a statement they had agreed to set Italy’s budget deficit at 2.4% of GDP, an increase on the current level and far above the 1.6% that technocratic finance minister Giovanni Tria had lobbied for.
For a long time many of us have been warning of a coming global financial crisis, and now that day has arrived.
Signs of imminent economic trouble just keep popping up, and it isn’t going to take much to push us into a new financial crisis that will be much worse than what we witnessed in 2008.
ABC Flash Point Political News 2018.