As you know in recent days has been developed the new Stability Pact, wanted by the Germans. In essence, the sanctions
now start automatically for those who violate certain parameters, particularly those concerned, Italy is the clause that requires you to cut the excess of its debt, compared to the parameter debt / GDP of 60%, at least one twentieth year.
In practice we must raise in three years 130MLD Euros a maxistangata!
So we will go to economic depression, because you could get into a vicious circle, more sacrifice, more the GDP goes down, the harder it is to contain the debt.
The news of the reform of the Stability Pact has flown the Euro, the long-term rates are more and more ridiculous levels, the rate differential between the rates in those 10 years and is rapidly down to 2, you start delineate a deflationary scenario. The sacrifices
also cover other countries, people will govern the denominations of salaries and pensions? O will create a new Euro with all weaker nations?
In that case we would have a strong increase in both interest rates and inflation, risk of default, but an economic recovery.
What do you think, what do you prefer?
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