Loading ...There can only be a Central Bank buyer for Italian 2023 & 2028 bonds yielding a few percent…that game can’t go on forever…
Draghi cannot legally buy Italian debt, under the terms of the ECB charter….but because it means the EU can still buy lunch in a 7 star restaurant, sorry it is for the good of the people, no -one has stopped him. A real audit of the ECB would find it is broke so many times over, they dare not do one and publish it.
I heard today that the German middle class, has lost 1/2 Trillion Euro’s in lost interest since QE and the German share of Target 2 is now close to 1 Trillion Euro’s…which means the likes of Italy, Spain, Greece etc owe a huge chunk of that 1 Trillion…that debt is over and above any bonds they owe.!!!!
The whole EU experiment is operating outside all fiscal rules and laws, but no-one stops it….that’s why if the Italians elect a so called populist government, they will clash head on with the EU/ECB, then either the EU/ECB gives in and lets all fiscal discipline go, or the Italians will walk and bring the whole charade down. But if the EU gives in Germany will go ape, as it’s their money every one is pissing away….
In short the end game has started, the middle class’s across the EU have had had it with the EU and are voting for the new anti EU political parties.