Italy Joins The Two-Trillion Debt Club

Tyler Durden's picture


As Monti, Grilli, and Berlusconi jockey for the headlines, the nation of Italy will surely be celebrating. Since debt is apparently wealth, the Italian nation has just joined an exclusive club of 'wealthy' nations as its total national debt blows through EUR 2 Trillion. With the trend now growing beyond exponential, having gathered pace since the crisis began in 2008, we suspect it won't be long before we see EUR 3 Trillion (of course entirely backstopped by FT's man-of-the-year Mario Draghi). It appears that it's not 'greed-is-good' but 'debt-is-good' that is the idiom of today's sovereign financiers.


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Fri, 12/14/2012 - 10:42 | 3062508 CPL
CPL's picture

Pay that off with spaghetti and fine cheeses

Fri, 12/14/2012 - 10:54 | 3062549 economics9698
economics9698's picture

Keynesian paradise. 

Fri, 12/14/2012 - 11:00 | 3062558 Stackers
Stackers's picture

Debt is wealth. Just ask Pete Stark


and according to Harry Reid paying taxes in the U.S. is voluntary

Fri, 12/14/2012 - 11:28 | 3062684 icanhasbailout
icanhasbailout's picture

Debt is greed


Greed is the inordinate desire to possess wealth, goods, or objects of abstract value with the intention to keep it for one's self, far beyond the dictates of basic survival and comfort. It is applied to a markedly high desire for and pursuit of wealth, status, and power.

Fri, 12/14/2012 - 11:40 | 3062731 kridkrid
kridkrid's picture

Pete Stark isn't as dumb as he seems, unfortunately. When all money is loaned into existence (I.e. debt), debt, by necessity, must expand. It's a horrible system, but it's the system we have (for a little while longer, anyways). Stark gets frustrated, I think, because he can't say the truth, exactly.

Fri, 12/14/2012 - 10:42 | 3062509 mayhem_korner
mayhem_korner's picture



The L.A. Angels are next in line...

Fri, 12/14/2012 - 10:42 | 3062511 Vashta Nerada
Vashta Nerada's picture

Debt as a badge of honor instead of a mark of shame.  What a twisted world we live in. 

Fri, 12/14/2012 - 10:43 | 3062514 EscapeKey
EscapeKey's picture





Fri, 12/14/2012 - 13:21 | 3063058 wandstrasse
wandstrasse's picture


Fri, 12/14/2012 - 13:24 | 3063074 akak
akak's picture


Fri, 12/14/2012 - 10:43 | 3062515 hugovanderbubble
hugovanderbubble's picture

Generali Insurance is in default. Period

Fri, 12/14/2012 - 10:49 | 3062523 Dr. Engali
Dr. Engali's picture

Trillions? pffffffdd....chump change........when we get to billions then we are talking serious money.

Fri, 12/14/2012 - 10:48 | 3062526 bank guy in Brussels
bank guy in Brussels's picture

Italians are actually richer than Germans in terms of net worth

Germans have higher income but much more debt

Italian public debt is high but household debt is low ... Italy is actually one of the more sustainable countries in terms of an overall debt picture, due to both the high household assets and the fact that they are a strong exporter naturally

Berlusconi actually had them close to primary budget surplus (i.e., ex public debt) when the ECB - EU pushed him out

As Ambrose Evans-Pritchard says, the euro is really their only major problem - he gives the anti-euro parties a 25% of winning

Support for the euro in Italy is the lowest of all the GIIPS countries, around 30 % - I hope that Berlusconi doesn't wimp out and sell out

Bunga bunga will be worth it if takes Italy out of the euro and terminates the torture of that for the Mediterranean

Fri, 12/14/2012 - 10:58 | 3062550 EscapeKey
EscapeKey's picture

Berlusconi actually had them close to primary budget surplus

The problem is that it doesn't work like that. I can't just say that my finances are great, now that I've decided not to consider the interest on my mortgage. Italian debt/GDP is around 126%, and at 4% interest rate, that's 5% of GDP that goes on servicing public debt.

But yeah, private sector debt loads are more manageable. But do consider the demographics profile of Italy is pretty bad, and then consider who exactly has to pay off the public sector debts again.

Italy total debt load (Q2 2011): 314% of GDP, of which 111% were public.

Fri, 12/14/2012 - 13:42 | 3063134 smacker
smacker's picture

Erm. Am I missin' summat? Public debt IS household debt!



It just hasn't been paid down by taxes ...yet. ;-)

Sat, 12/15/2012 - 08:30 | 3066021 ArgentoFisico
ArgentoFisico's picture

Banana Berlusconi won't do a thing, just try to save his own butt, as always.

Pretty italian government tv advertisement an "More taxes, more services" :

Fri, 12/14/2012 - 10:50 | 3062532 hugovanderbubble
hugovanderbubble's picture

FIAT collapsed

MontePaschi Siena Collapsed

Generali Collapsed

BNP holds 35000 Mn Euros in Italian Debt¡¡¡ Nice well done BNP¡¡¡

Fri, 12/14/2012 - 10:51 | 3062542 hugovanderbubble
hugovanderbubble's picture

Spain downgraded by Peterssen to JUNK 

Rajoy please resign now

Fri, 12/14/2012 - 10:57 | 3062554 kridkrid
kridkrid's picture

That blasted curve... I've seen it somewhere before... Can't put... My finger... On it.

Fri, 12/14/2012 - 11:01 | 3062563 hugovanderbubble
hugovanderbubble's picture

Goldman Sachs Derivative Book Losses > 19 Bn $¡ Including OTC ...nice well done,...keep hiding losses Goldman...

Fri, 12/14/2012 - 11:02 | 3062569 hugovanderbubble
hugovanderbubble's picture

Long FAZ 

Long SCO

SHort Reits

Keep loading Volatility




Fri, 12/14/2012 - 11:04 | 3062572 Chief_Illiniwek
Chief_Illiniwek's picture

Welcome, vicini!

Fri, 12/14/2012 - 11:19 | 3062630 Perdogg
Perdogg's picture

New Normal: Debt equal wealth. According to the Barack O'krugmans of the world, we just borrow and spend to prosperity.

Fri, 12/14/2012 - 12:31 | 3062890 Backspin
Backspin's picture

Looks to me like they could have done a better exponential curve fit than they did, whoever "they" are.

Fri, 12/14/2012 - 13:27 | 3063088 Darkness
Darkness's picture

A little debt never killed anybody...




Fri, 12/14/2012 - 13:54 | 3063154 bankerbackbacon
bankerbackbacon's picture

Notice how the darker your skin is the worse your eurosoviet zone nation is?  Portugal, Italy, Ireland etc.

How's Sweden, Denmark and Norway doing? Just fine.


Its going to take a lot of pizza's to pay this one off.

Fri, 12/14/2012 - 15:36 | 3063813 Yellowhoard
Yellowhoard's picture

I remember when the US "just" had 2 trillion in debt. Good times.

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