Italy's Latest Record Debt Load: Bigger, Faster, More

Tyler Durden's picture

Italy just announced its all-time record high general government debt load at EUR 1.973 trillion. What is perhaps most stunning, given all the talk of austerity, cutting back, reforms, and change is that the size of this debt is growing at an ever-increasing pace that is simply stunning. Pre-Euro (1999), Italy's debt was growing at a rate of just less than EUR 2 billion per month; in the eight years from then until the crisis in 2008, Italy's pace of debt growth (fostered we are sure by the convergent cheapness of funding and their immutable belief in invincibility) almost perfectly doubled to EUR 3.8bn per month. Since 2008, and the onset of excess Keynesian ridicule we assume, Italy's debt load has grown at a stunning pace of EUR 6.4 billion per month and perhaps most incredible; however, the last nine-months (since the peak 'peak' of the crisis in September of last year) has seen the pace of debt-load growth surge to EUR 9.5 billion per month. Sustainable levels of exponential debt growth - sure!


Italy's General Government Debt Load...


Chart: Bloomberg

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Central Bankster's picture

Growth!  This is bullish.

SeverinSlade's picture

No one said we needed ECONOMIC growth.  The only thing I ever hear the Eurocrats/Banksters talk about is growth in general.  So this is, indeed, extremely bullish.

How much longer until Italy hits the same debt level as the US?

XitSam's picture

By the time Italy gets to the same debt level as the US, we will have added more debt. Zeno FTW!

jal's picture

Which country does not have debt growth?

The chart shows that Italy has been growing its debt all of the time.


Why would all the financial gurus keep investing money into an obvious failing system.

(exponential growth of debt).


They must be smarter than all of us.



I got it figured out ... its not their own money, its your savings that have been invested.



Peter Pan's picture

Exponential growth of debt will sooner or later be followed by exponential collapse of debt. And rest assured that food stamps is but the prelude to food rationing.

CH1's picture

Green shoots!

I see green shoots!!

I am more equal than others's picture

Unlimited pasta bowl.......ummmmm

Short Memories's picture

Did Italy get the gold in hockey? Or do they just make the sticks?

timbo_em's picture

In the men's tournament Germany won the gold medal. In the women's tournament the gold medal went to the Netherlands.

Btw: The shape of that Italian hockeystick looks too much like a banana. That can't be legal.

Monedas's picture

Italians designing hockey sticks ?      Eskimos design bikinis ?     Zairians design prophylactic protocols for Ebola outbreak ?

crawl's picture

Some believe debt level is completely irrelevant when you have a printing press capable of working at110% capacity.

With an Italian at the helm of the ECB, what can possibly go wrong?

guidoamm's picture

I must apologize in advance for the tangential remark, but you reminded me of the absurdity of the world we live in. After the invasion of Afghanistan, who do you think the UN sent in to set up the judicial system and the body of laws?... Wait for it... and don't laugh... but they sent in an Italian judge.... 

PontifexMaximus's picture

Hopefully from Napoli or Palermo....seems that the best lawyers are from there!

LULZBank's picture

6.4 bn/mth will be peanuts compared to 6.4tn/mth, in hindsight, just like the 1.965 bn/mth in 2000.

Its not the debt that is the problem, but the slow passage of time.

AUD's picture

The one & only thing you cannot possibly have too much of is money, thus the demand for money is infinite. Infinite demand can be met by infinite supply, thus the exponentially rising 'monetary aggregates' of not just Italy but all over the entire earth.

It is sustainable, until the day it isn't.

Free Markets's picture

Nicely put. now how does one country decide value against other currencies?  When one country creates $, the others must follow suit to keep satatus quo.  Can't imagine what would happen without the reserve currency.

AUD's picture

The market decides but central banks ie. governments, are the market makers.

kridkrid's picture

Sustainable until it isn't... And then what? Global war, I suspect, massive depopulation, with some sort of restart on the other side. Is the other side 20 years away or 200?

Vince Clortho's picture

Exactly.  The charts and figures look incredibly ominous from a traditional mindset.

But Infinite debt is not a problem if you can print an infinite amount of money.  That is precisley where the world is at right now.

If the people of these various bankrupt nations had revolted, it would be a different story.  The fact that most of the population is placid is confirmation of their slave mentality and complete control by the ruling class.

If it is not already game over, it will be soon.

JustObserving's picture

the pace of debt-load growth surge to EUR 9.5 billion per month (or $11.7 billion a month).

US debt gows at $125 billion a month and unfunded liabilities grow at $563 billion a month for a total of $688 billion a month.

US GDP is 7 times Italian GDP.  So normalized by GDP, US leads Italy by a wide margin.

scatterbrains's picture

yes but you can't compare Italy to the U.S. because the U.S. the ability to snatch treasure with tactical surprise across the globe.

sangell's picture

Problem for Italy is their economy is the same size it was in 1999 and its shrinking.

Dick Darlington's picture

And remember folks this is the goal seeked Eurostat measure of debt which is designed to hide certain parts of govt debts. Judging by the ever clueless equity "market" moar debt is still goooood...

evolutionx's picture

negative Yield (2y)





and soon


adamas's picture




LULZBank's picture

I like your innocence and simple mindedness.

adamas's picture

agree ;-) but for Fks sake, with charts like the Italian debt chart how long do they expect us to swallow their horseshit for?

Wakanda's picture

"surge to EUR 9.5 billion per month" 

Yow!  Bunga Bunga! -  And that's just what they are showing us.

Jason T's picture

"I have never been one to yell fire in a crowded movie. But this is getting absolutely ridiculous.  The 

global economy is in such a tailspin and there is nobody with a solution no less even a hint of what 

is developing so rapidly before everyone’s eyes, it appears  just  hopeless to save society."


Martin Armstrong - August 4th, 2012

Theducktape's picture

The bigger it gets, the harder will fall ! Get ready of the mother of all depressions - All sync style !


Hulk's picture

Exponential debt growth Bitchez!  We are there...

Got Gold ???

nmewn's picture

Dammi la mia Binky debito!!!

youngman's picture

Graphs do not buy votes....who needs graphs to rule...

Monedas's picture

Monedas has better balance sheet that Italy !       Latest take on Chappaquidick .... Ted was researching Martian landings for NASA .... 7 minutes of terror !

Overflow-admin's picture

It's... It's... IT'S A TRAP!!!

The Vizier's picture

Earlier today:  Italy FM Grilli- Italy will not meet deficit goals due to weaker growth, but plans no further budget cuts.

Good luck with that...

Mr_Wonderful's picture

Public Debt increase since 1997:

Italy 65%

U.S. 200%

smiler03's picture

+1 Thank you for that perspective.

Headbanger's picture

Gee, is Obama the President of Italy too!?

lizzy36's picture

There will be green shoots everywhere until afte the US election.

Merkel will sound dovish (but not act dovish) until after US election. Then turn very hawkish as she faces her own election.

Shit does NOT hit the fan until 2013.

Monedas's picture

English speaking world dominates Olympics .... Bush's War on Terrorism wildly successful !   Italy .... so so !

Stonehedge's picture

"Bush's War on Terrorism wildly successful !"


Successful at enslaving simpleminds like you, tool.

Roland99's picture

This calls for a new font style: