The media are having a field day. Now, everyone is afraid of risk Italian! Skip the steps we zap Portugal, Spain to Italy to talk about. Suddenly, the Euro relapsed sharply since the Greek problems. Meanwhile, nobody talks about the U.S.! Italian rates are climbing sharply today as was the case for Greece, Ireland, Portugal and Spain.
Now compare Italy and California to get an idea. Italy shows a deficit of 30 billion euros when California is between 20 and 25. Italy's GDP and that of California are equal (grossomodo 2000 billion USD) Italy launches the start of an austerity plan. California has a different style: they sell stadiums, prisons ... nothing permanent.
They both show record debts.
California represents 13% of U.S. GDP, is the first U.S. state
Italy is the 3rd country of the European Union (and YES to the UK since 2009)
Italy has a strong economy and a solid industrial fabric ...
short, all that to say, it is not right to do as many stories around Greece, Ireland, Portugal, Spain or Italy, so now nobody talks about the U.S. deficits!
On the one hand, we preserve the competitiveness of the Euro against the U.S. QE2 ... another, our states are obliged to finance at rates indecent! Moreover, it is not normal to consider that a state can not declare bankruptcy and thus the risk is zero and at the same time, raise rates because the risk increases (that is another topic). It exacts a risk that is supposed to be guaranteed and unworkable. It would be interesting to see what may happen at least once ... It would make a noise ...
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| Dollar californien |
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| ou Euro italien ? |
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