Italians to the polls!

[Freedom4]

Hi

I rarely post, but had to have yours views on this, maybe Adam could give is opinion on this subject?

Tomorow an important day for Italians and maybe all of us, Italians voters will decide on their own version of Brexit. If they vote no like British voters did, it could spell the end of the European Union itself. Since the EU is the world's largest economy, its fall will instantly affect your investments and savings.

Will this interfere with the Iraq rv, now or later on. I guest it can be ask, since it can affect the world economy?

[coorslite21]

F4.....you are very astute with this question.  i doubt this will have affect on an adjustment to the value of the IQD.     JMHO

This vote has many other ramifications in my mind.  I posted in OSI on this.  

Days are numbered for the EU and the Euro in my mind. Just another piece to the puzzle which is a very complicated one.

I also posted today 12-4 in off topics titled Umbertino......who is living in Italy......see those thoughts......and look for the links mentioned there.

Geez.......Let me bring what I posted over from OSI............just below....

Edited December 4, 2016 by coorslite21
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[coorslite21]

Posted Thursday at 08:35 AM · Report post

We watched BREXIT alter the EU some months ago........what did the pound do?  It went up which was predictable.  Trump wins, what happened to the Peso.........it went down........which was predictable.  Now we come to Dec. 4th and Italy.  Do your research and figure out what might happen.  There will be more opportunities like this when your bank account is a little larger.  Watch this this week and see what happens......Use this as a learning experience.

 

This Super Bubble Is About to Burst…

by Nick Giambruno | November 30, 2016

Italian government bonds are in a super bubble. They are primed to collapse soon. Italy has one of the most indebted governments in the world. It’s borrowed over $2.4 trillion, and its debt-to-GDP ratio is north of 130%. (For comparison, the US debt-to-GDP ratio is 104%.) But the situation is actually much worse. GDP measures a country’s economic output. However, it’s highly misleading. Mainstream economists count government spending as a positive when calculating GDP. A more honest approach would count government spending as a big negative. In Italy, government spending accounts for a whopping 50%-plus of GDP. A more accurate debt-to-GDP ratio would exclude government spending from economic output. I suspect that figure would reveal the Italian government’s hopeless insolvency. I don’t see how it’s possible for the Italian government to extract enough in taxes from the productive part of the economy to ever pay back what it’s borrowed. Yet Italian government bonds are trading near record-low yields. It’s a bizarre and perverse situation. Over a $1 trillion worth of Italian bonds actually have negative yields. That’s completely insane. Given the huge risks associated with lending money to the bankrupt Italian government, the yields on Italian sovereign bonds should be near record highs, not record lows. Source: Zero Hedge A critical vote in Italy on December 4 could be that pin…Italian government bonds are, without a doubt, in super-bubble territory. It won’t be long before a pin pricks it and… pop. That’s why you need to act now. You may be exposed to this toxic financial waste without even knowing it. My friend, mentor, and globetrotting colleague Doug Casey thinks the situation in Italy is just the beginning of a disaster much worse than the 2007–2009 global financial crisis. Here’s Doug: I expect a truly major banking crisis. Much worse than that of 2007–2009. Governments, who are all bankrupt, borrow money from commercial banks. Commercial banks have lent it to them because they believe it’s a risk-free loan. Governments encourage them to lend recklessly, hoping that will jump-start sluggish economies. Central banks, which are the arms of their governments, have taken interest rates to zero and below for that reason and to make it easier for governments to service their debts. This policy has encouraged businesses to take on debt. It’s an idiotic and reckless experiment that will end—likely in this cycle—with bankrupt central banks and governments bailing out bankrupt commercial banks and businesses. Just the way they did in 2007–2009. Except this time, the situation is much more serious. How to profit? Don’t own European companies, stocks or bonds, and banks in particular. In fact, even though they’re already down considerably, they’re going lower and are excellent candidates for short sales, or the sale of naked calls. I agree with Doug. The European banks most exposed to the looming crisis in Italy are excellent short-sale candidates. To hone in on the best options, I looked at which European banks hold a lot of Italian government bonds. According to the German media, French banks are the most exposed by a wide margin. They have over $275 billion worth of Italian sovereign debt on their balance sheets. Germany is next, with $90 billion, followed by Spain, with $45 billion. If you own any of the European bank stocks listed below, I recommend selling them immediately. Even though their share prices have all taken serious hits recently, they’re still great short-sale candidates. France—Société Générale (SCGLY) France—BNP Paribas (BNPQY) Germany—Deutsche Bank (DB) Spain—Banco Bilbao Vizcaya Argentaria (BBVA) Spain—Banco Santander (SAN)   On December 4, Italy is voting on a crucial referendum. It’s almost certain to fail. And that will probably be the pin that pricks this super bubble.

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coorslite21

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Posted 2 hours ago · Report post

I probably had the wrong title for this one.  Only 19 views in 72 hours.......I am not thinking that this vote in Italy is an end all to the financial system, rather just another piece of the puzzle.  With the world financial mess there has to be a solution soon in my eyes.  We either have a currency restructuring, much like Bretton Woods in 1913, or we have an adjustment where everything drops........(some look at that as a depression).  I'm adding this article to the first one.  Change is coming and in any change you can make some money.  Here is how one guy did it........meant as a learning experience only...

..

George Soros and the Perfect Speculation

by Nick Giambruno | December 03, 2016

On September 16, 1992, George Soros made over 1 billion dollars in profit in a single day… It was a legendary trade that would go down in financial history… not unlike the day Nathan Rothschild made a fortune speculating on the Battle of Waterloo in 1815. Soros did this by making a massive bet against the British pound. At the time, the pound was tied to the German currency through a fixed exchange rate known as the European Exchange Rate Mechanism (ERM). It was a precursor to the euro currency. With the ERM, exchange rates between participating European currencies were not set by supply and demand. Instead, governments bought or sold their respective currencies to keep them within acceptable limits. By 1991, it was clear to everyone that the pound was overvalued at its fixed rate within the ERM. The Bank of England’s ongoing intervention was the only thing propping it up. Despite that, the market believed the Bank of England could continue the charade indefinitely. Soros saw things differently. If he could break the Bank of England’s will, it would force them to abandon the pound’s fixed exchange rate… and Soros would make an enormous profit. Soros planned to do this by shorting the pound. In other words, he’d bet that the pound would weaken. It was a chance to make the trade of the century. This is how it worked… Soros borrowed as many pounds as he could. Then he sold those pounds to the Bank of England for German deutsche marks at the fixed rate. If the pound weakened, he could convert his deutsche marks back into pounds at a much more favorable rate, cover the amount he had borrowed, and pocket the huge difference. At the same time, his downside was limited because the pound was obviously overvalued. The Bank of England’s willingness to intervene was the only thing holding it up. There was very little chance the pound would strengthen on its own. It was a low-risk, high-reward play. In many ways it was the perfect speculation. (Acknowledging Soros’s skill as a speculator is in no way an endorsement of his toxic political views.) On the morning of September 15, 1992, Soros’s hedge fund began to massively short the pound… By the end of the day, the Bank of England had already bought over 600 million pounds in a fruitless effort to defend the currency. But Soros was selling pounds faster than the Bank of England could buy them. By the next morning, the British government was in a total panic. It raised interest rates from 10% to 12%, hoping to cauterize the wound. But Soros—smelling desperation—continued selling pounds and pressuring the fixed exchange rate. Other hedge funds caught wind of what was happening. They started to short the pound, too. It was a financial feeding frenzy, like a pack of hyenas devouring a fallen antelope. By 7 p.m. that evening, the pressure was too much for the Brits. The government announced that the UK was leaving the ERM and abandoning the fixed exchange rate. The pound collapsed. Soros had shattered the UK’s monetary policy. And made over a billion dollars in profit in a single day. I’m telling you this story because we are fast approaching another opportunity to be on the right side of history… and to profit from the collapse of another major currency.

[Freedom4]

Like I have said, I rarely post, I was just pointing out this vote and have views on the subject, I don't know much about all of this, but was asking myself, if this could have an affect on the RV? 

Thanks for your point of view. Hopefully it will be good for all of us just the same.

Take care