The euro is pushing Italy into depression
By Ambrose Evans-Pritchard
January 18th, 2012
Here is the latest money supply chart from the Banca d’Italia. Just look at M3. Horrendous. See page 7 of this report.
This speaks for itself. There is no clearer indictment of the dysfunctional nature of monetary union. Italy is being pushed into depression. Criminal.
Obviously, Italy and Germany can no longer share the same monetary policy. Ergo, Germany should leave EMU, pronto.
The Banca said Italy’s economy contracted by 0.5pc in the last quarter of 2011. It will shrink by a further 1.5pc this year, with no growth in 2013.
This is a direct result of the misguided pro-cyclical austerity polices imposed by Angela Merkel and the ECB – the infamous Trichet letter – without offsetting monetary and exchange stimulus.
This will of course play havoc with Italy’s debt trajectory.