Sicily, Italy’s poorest region, is apparently suffering from its derivatives holdings, which amount to approximately $1.1 billion, and which are making a big dent on the balance sheet of the region as it faces increasing losses from them, all while suffering a debt and liquidity crisis. Contracts with six banks such as Deutsche Bank, Bank of America and Nomura Holdings, have led to losses since 2008, and Italy’s state auditor warned that the future may wipe out any gains from contracts with other banks, according to a June 29 report.
Prime Minister Mario Monti approved about 400 million euros ($490 million) for Sicily, but Sicily’s heavy 5.3 billion euro debt burden (about $6.5 billion) and its increased hiring or regional staff, along with losses on credit default swaps do not bode well for the region. “Sicily joins governments from Greece to Jefferson County, Alabama, that bought derivatives that offered the promise of cost savings while being stacked in the favor of banks,” to quote the article.
Monti’s job is virtually impossible, as he is facing a staggering 2 trillion euro debt, and since debt slavery is designed to fail, the rising borrowing costs can’t be adequately addressed unless there are miraculous bond investors willing to take the hit, and who Monti has to sway, all while keeping up the policy of austerity and harsh budget cuts. Currently, Monti’s plan is to reduce total government expenditures by 26 billion euros in three years, all while bank runs are occurring in the country and tax collectors and government officials are threatened.
Monti will meet Governor Raffaele Lombardo on July 24, where it’s expected Lombardo will “reassure” Monti about the region’s finances. Of course, this is despite six unanswered calls to the region’s finance chief before this announcement, but hey, who’s counting?
Story is HERE.
Sometimes I wonder how these crooks manage to keep the house of cards afloat despite being obviously broke, but then I look at Italy. In Italy’s case, they’ve literally sat around for years on top of this trash heap of debt no one wanted to address or come close to with a long pole. Now, even after the EU continues to stall for an impossible solution because no one wants to fund Rothschild Western debt anymore, Italy still manages to stay standing. To be honest, that’s quite remarkable.
However, what’s obvious is that the patient is going to pass away, and once Italy falls, the entire EU network falls – that’s trillions of euros that can’t be paid back, which means good bye monetary union, and say hello to the Federal Reserve, who will then be in panic mode.
I hope this change comes sooner rather than later – it’s not comforting to watch people starve while the crooks try to hold onto their power and their casino fiat money scam system. Keep spreading the word.