Of Paolo Becchi e Giovanni Zibordi

Source: Paolo Becchi
We want to say it clearly: the Italian State is a victim of usury. Interest accumulates on interest and increases the debt even if you no longer go into debt. And 25 years the State has not or rather would not need to go into debt because it collects more taxes than it spends: in the last year or so 30 billions in taxes more than expenses, but it results in a deficit of approx 40 billion a year because it pays approximately 70 billion per year in interest. This has been happening since the early 1990s: the state has since paid 2.500 billions in interest, more than the debt. The State has a debt of approximately 2.360 billion even if from 25 years he has not gone into debt because he has paid well 2.500 billions in interest since the early 1990s. This is a classic case of wear and tear, the increase in debt due only to the accumulation of interest over time and which becomes impossible to repay because the interest is too high.
The increase in the spread is a phenomenon of usury to the detriment of the State. Here's why.
VICTIMS OF WEAR
At the moment an Italian saver who buys government bonds makes money, net of inflation, more than 2% clean and if you buy iBtp at 10 almost a year 2,5% net more than inflation. In the rest of the world, those who buy government bonds today at most recover inflation (so in America) or loses every year, if inflation is considered (in Germany). A German saver who buys German government bonds a 10 loses years, net of inflation, about the 2% net and if he buys one or two year bonds he loses the 3% net! In Germany interest rates a 10 years have in fact fallen below 0,5% (and those to 1 o 2 years is less than 0%), and with inflation around 2%. Therefore the German state reduces its debt every year, thanks to the fact that the saver who buys government bonds loses from 2% al 3% the year, that is, he gives part of his money to the State. This happens because Germany has little public debt? Ball. The same happens in Japan, where with public debt double that of Italy the State pays it 0,1% on average with inflation above 1%.
In Italy, interest rates on government bonds a 10 years have risen to the 3,5%, level equal to before the crisis 2008. But then inflation was around 3% and today it is around 1% so these are the highest rates in real terms of the last few 10 years. This means that those who put money into government bonds a 10 years earns the 3,5% of a BTP against inflation at 1.2% but the State sells out. At these interest rates the State must increase its tax collections by at least 3,5% yearly just to stay even. If the GDP does not grow at least by 3,5% (including inflation) the debt burden increases.
THE STATE IS NOT A FAMILY
Putting yourself in this situation is absurd, because the State, unlike a family or business, is not obliged to go into debt, can issue money. That the State should make use of the power to issue money is not just a "populist" thesis, but what everyone in the financial world knows. Standard & Poor’s, the rating company, in his statement on Italy he explained that «the ratings of the States that have ceded the issuance of the currency and the control of the exchange rate to a supranational Central Bank (la Bce…), according to our criteria they are the same as those of states that issue debt in a foreign currency... the ratings of public debt issued in local currency tend to be higher than those of debt in foreign currency".
It's clear? S&P says that if a state can issue money it has a higher rating than a state that cedes the issue of money to a supranational central bank such as the ECB. Italy, Meaning what, it would have a higher rating if it had the lira and control of its central bank, which can issue money. The rating companies say that it is better from their point of view if a State can print money and the Italian State is no longer able to do so, because of the Euro, it has a lower rating now. Because if you can print money you can always repay the public debt that is in your currency.