STUDY CENTER FEDERICI | National Economy

Governments and high finance: l'Italia non è sull'orlo del baratro
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“Christ the King” has been supporting what you find in this article for some time. On this topic, conspiracy theories, apocalyptic and other catastrophisms are the result of ignorance, follia of mala fede. Even in our small and varied environment, where it often seems that whoever talks the loudest is right, even if it is not reasonable or documented. (n.d.r.)
Reporting of Federici Studies Center

The current situation of the Italian state commented by the Swiss economist Alfonso Tuor.
Italy is not on the brink of the abyss
This is not yet the beginning of a speculative attack against the grey-green Italian government guilty of challenging European rules on deficit and public debt. Rather, it seems to be the manifestation of financial markets supporting the threats from Brussels, to which are added the attacks from the international press and what should be the Italian opposition. All this appears aimed at ensuring that Rome reverses its spending plans for next year which should lead to a public deficit of 2,4% compared to GDP, incompatible with the objective of reducing a public debt that exceeds 130% of GDP. If it isn't the beginning of the spread war, however, it could be the prelude to it, with the rating agencies that depreciate Italy's creditworthiness and above all with the Eurogroup which initiates a procedure for infringement of the rules of the single currency.

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Actuality | World Economy

IT IS THE CENTRAL BANKS THAT DETERMINE THE COST OF THE DEBT AND NOT THE MARKETS
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Reporting of Pietro Ferrari
HERE IS THE DEMONSTRATION
Of First Gonzaga
( Savona is right. Without ECB reform any effort is in vain)
Two very simple considerations whose consequences have fundamental importance in the economy of the EU states and in this case, of Italy and Germany .
Microeconomic level: an investor who buys German 10-year Bunds (they are the equivalent of the BTP) every have loses approx 1,5 % of its capital. In fact it has a yield of 0,5% but inflation in Germany is at 2% and therefore has a negative real return. On the contrary, an investor who buys a ten-year BTP today earns approximately 1,4% annual. In fact the BTP pays the 2,972% of interest but inflation in Italy and the 1.6% . In this case the real return is positive.
Macroeconomic level: At the state level, obviously the reasoning is reversed, the German state sees its debt reduce every year due to the negative differential between interest rates and inflation. The Italian State on the contrary, having to pay a positive real interest, sees its debt grow inexorably. Read More

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Actuality | Policy

“If people knew what the spread was, violence would break out in the streets"
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Of Robert Dejan
A Great Nando Ioppolo “What is it spread... I think that if people knew, war would break out in the streets from today to tomorrow “ SPREAD, THE DEATH TRAP In a recent interview Professor Nando Ioppolo (lawyer and economist, recently passed away), claims that SPREAD is something if people knew what it was, violence would most likely break out in the streets because a shameful media campaign based on lies was launched on SPREAD.

Ioppolo explains that the game starts from the ECB ( European Central Bank) which lends to private banks 0,75% all the euros they ask for for whatever reason they ask for them. Then the bank (UNICREDIT in the Professor's example), with this 0,75 he buys us the BTPs which technically should be allo 0,76. Why then al 5 %? Because this way the Bank can speculate on it. Read More

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