Italy’s ruling Northern League party predicts the dismantling of the Euro currency  unless the European Central Bank (ECB) offers a guarantee to reduce yield spreads in the Eurozone.

Otherwise if the yield spread can’t be resolved the situation is going to explode. “Either the ECB offers a guarantee or the Euro will be dismantled,”

Claudio Borghi’s words came after Italian, Spanish, and Portuguese government bond yields rose following the financial turmoil surrounding Turkey.

A bond yield spread is the difference between yields on differing debt instruments. Typically, the higher risk a bond carries, the higher its yield spread. In other words, if a country’s economy is strong, its bond would carry less risk and the yield would be lower.

Since the 2008 global crisis, differences between Euro area countries have become more pronounced, as the spreads of some countries (especially Ireland and Greece) widened much more than those of other countries (such as France and the Netherlands).

“Today the ECB has the power to make you lose your debt and get on your knees. It should be ensured that the Central Bank intervenes as soon as the spread between the securities of two European countries reaches two hundred,”

Eurosceptic Borghi, a top economic adviser for the Northern League, was named the head of the budget committee in the Italian parliament’s lower house this June.

Borghi, a former Deutsche Bank trader, is acknowledged for the proposal of Italy’s short-term treasury bills, a form of parallel currency or even a temporary form of payment to be used in a transitional period if the country ditches the Euro.

ABC Flash Point Economy News 2018.

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Bolshevik Jew
Bolshevik Jew
29-06-20 02:01

That move was Salvini’s political death warrant as PM, now he still is very popular on province level, but cartel forming get’s him out of the game for the upcoming years?