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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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Mon, 08/13/2012 - 09:02 | 2700532 Central Bankster
Central Bankster's picture

Growth!  This is bullish.

Mon, 08/13/2012 - 09:10 | 2700552 SeverinSlade
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?

Mon, 08/13/2012 - 09:19 | 2700575 Buckaroo Banzai
Buckaroo Banzai's picture

Avanti!

Mon, 08/13/2012 - 10:08 | 2700674 Manthong
Manthong's picture

obbligazioni abbondanti?

Mon, 08/13/2012 - 09:22 | 2700588 XitSam
XitSam's picture

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

Mon, 08/13/2012 - 10:06 | 2700669 jal
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.

 

Yep!

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

 

 

Mon, 08/13/2012 - 11:03 | 2700824 Peter Pan
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.

Mon, 08/13/2012 - 09:02 | 2700533 CH1
CH1's picture

Green shoots!

I see green shoots!!

Mon, 08/13/2012 - 09:02 | 2700534 I am more equal...
I am more equal than others's picture

Unlimited pasta bowl.......ummmmm

Mon, 08/13/2012 - 09:03 | 2700536 Short Memories
Short Memories's picture

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

Mon, 08/13/2012 - 09:11 | 2700556 timbo_em
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.

Mon, 08/13/2012 - 09:36 | 2700605 Monedas
Monedas's picture

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

Mon, 08/13/2012 - 09:08 | 2700541 crawl
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?

Mon, 08/13/2012 - 09:16 | 2700571 guidoamm
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.... 

Mon, 08/13/2012 - 16:40 | 2701915 PontifexMaximus
PontifexMaximus's picture

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

Mon, 08/13/2012 - 09:08 | 2700542 LULZBank
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.

Mon, 08/13/2012 - 09:08 | 2700544 AUD
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.

Mon, 08/13/2012 - 09:17 | 2700572 Free Markets
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.

Mon, 08/13/2012 - 09:26 | 2700598 AUD
AUD's picture

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

Mon, 08/13/2012 - 10:04 | 2700662 kridkrid
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?

Mon, 08/13/2012 - 10:17 | 2700697 Vince Clortho
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.

Mon, 08/13/2012 - 09:11 | 2700545 JustObserving
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.


Mon, 08/13/2012 - 09:19 | 2700574 scatterbrains
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.

Mon, 08/13/2012 - 09:55 | 2700644 sangell
sangell's picture

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

Mon, 08/13/2012 - 09:09 | 2700547 Dick Darlington
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...

Mon, 08/13/2012 - 09:09 | 2700548 Zero Debt
Zero Debt's picture

Au 10k

Mon, 08/13/2012 - 09:09 | 2700549 evolutionx
evolutionx's picture

negative Yield (2y)

in

Finland

Netherland

Germany

and soon

Austria

 

http://www.cds-info.com/

Mon, 08/13/2012 - 16:45 | 2701930 PontifexMaximus
PontifexMaximus's picture

Don't forget CH

Mon, 08/13/2012 - 09:10 | 2700553 adamas
adamas's picture

WHEN WILL ONE OF THE WESTS FKIN POLITICIANS FINALLY STAND UP IN THE THEATRE AND SHOUT "FIIIIIRRRRRREEEEEE"

 

OR ARE THEY ALL GOING TO KEEP TALKING SHIT FOREVER??

Mon, 08/13/2012 - 09:13 | 2700560 LULZBank
LULZBank's picture

I like your innocence and simple mindedness.

Mon, 08/13/2012 - 09:21 | 2700584 adamas
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?

Mon, 08/13/2012 - 09:26 | 2700597 XitSam
XitSam's picture

Forever. Duh.

Mon, 08/13/2012 - 09:12 | 2700555 Wakanda
Wakanda's picture

"surge to EUR 9.5 billion per month" 

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

Mon, 08/13/2012 - 09:12 | 2700557 Jason T
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

Mon, 08/13/2012 - 09:12 | 2700558 Theducktape
Theducktape's picture

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

 

Mon, 08/13/2012 - 09:13 | 2700559 Hulk
Hulk's picture

Exponential debt growth Bitchez!  We are there...

Got Gold ???

Mon, 08/13/2012 - 09:13 | 2700561 nmewn
nmewn's picture

Dammi la mia Binky debito!!!

Mon, 08/13/2012 - 09:14 | 2700565 youngman
youngman's picture

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

Mon, 08/13/2012 - 09:20 | 2700566 Monedas
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 !

Mon, 08/13/2012 - 09:16 | 2700570 Overflow-admin
Overflow-admin's picture

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

Mon, 08/13/2012 - 09:19 | 2700577 The Vizier
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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...

Mon, 08/13/2012 - 09:20 | 2700581 Mr_Wonderful
Mr_Wonderful's picture

Public Debt increase since 1997:

Italy 65%

U.S. 200%

Mon, 08/13/2012 - 14:19 | 2701301 smiler03
smiler03's picture

+1 Thank you for that perspective.

Mon, 08/13/2012 - 09:23 | 2700591 Headbanger
Headbanger's picture

Gee, is Obama the President of Italy too!?

Mon, 08/13/2012 - 09:28 | 2700603 Joe A
Joe A's picture

NEIN!

Mon, 08/13/2012 - 09:31 | 2700610 lizzy36
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.

Mon, 08/13/2012 - 09:34 | 2700611 Monedas
Monedas's picture

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

Mon, 08/13/2012 - 10:10 | 2700680 Stonehedge
Stonehedge's picture

"Bush's War on Terrorism wildly successful !"

 

Successful at enslaving simpleminds like you, tool.

Mon, 08/13/2012 - 09:35 | 2700613 Roland99
Roland99's picture

This calls for a new font style:

 

ItalEx

Mon, 08/13/2012 - 09:53 | 2700641 quasimodo
quasimodo's picture

Bigger, Faster, More!

Don't

Stop

Don't stop!

Bullish for porno?

Mon, 08/13/2012 - 10:05 | 2700663 Stonehedge
Stonehedge's picture

Italy looks to be in good shape compared to the US. My calculations are Italy has about 46% less government debt per capita than the US. Why all the handwringing about these pikers? We're the champs of debt. Zombie world for the next 20 years!

Mon, 08/13/2012 - 10:05 | 2700665 deez nutz
deez nutz's picture

WTF..... it's only money!!!

Mon, 08/13/2012 - 10:08 | 2700676 butchee
butchee's picture

Why does zerohedge hate exponents and parabolas?

Mon, 08/13/2012 - 10:15 | 2700692 DavidJ
DavidJ's picture

Isn't Italy's GDP contracting?   This is a disaster!  Wait!  We are saved! Time to call Bernanke!!!  Send in the helicopters!!!

Mon, 08/13/2012 - 10:18 | 2700701 Peter K
Peter K's picture

This from the DT blog. Superliciously superlicious....... Especially the last sentence.

 

"13.04 Italy's public debt has hit an all-time high and its budget deficit is also bigger thanks in part to its share of bailouts for other eurozone states.

According to figures from the central bank today, public debt ticked up to almost €2 trillion in June. At the end of June, it rose €6.6bn to €1.973bn, the Bank of Italy said.

Figures also showed that the annual budget deficit, at €47.7bn, was €1.1bn higher than in the same period of 2011. This was due to an increase in spending to help other eurozone countries, which rose to €16.6bn from €6.1bn in January-June 2011."

What more is there left to say, other than.... Socialism es muerte. :)

Mon, 08/13/2012 - 10:19 | 2700709 Snakeeyes
Snakeeyes's picture

Angela must be throwing a calf after seeing the growth of PIGS debt. And Nouriel wants more gov't intervention, of course.

http://confoundedinterest.wordpress.com/2012/08/13/japan-gdp-declines-to-1-4-yoy-europe-goes-on-vacation/

Mon, 08/13/2012 - 10:56 | 2700812 EmileLargo
EmileLargo's picture

Nice to read as someone who has 90 percent of his liquid assets in physical Gold.

Mon, 08/13/2012 - 11:26 | 2700874 ItsDanger
ItsDanger's picture

Mamma mia!

Mon, 08/13/2012 - 12:10 | 2700976 Dareconomics
Dareconomics's picture

The sudden rise in Italian borrowing costs in August of 2011 has had an effect on the country's debt load. Higher interest payments are causing the debt to grow at faster rates. Since September of 2011 the debt has grown at a monthly rate of €9.5bn due to both higher rates and worsening revenue collection.

What can you do about this? You can raise taxes, but...

 

Read  more at

http://dareconomics.wordpress.com/

Mon, 08/13/2012 - 14:23 | 2701318 smiler03
smiler03's picture

I think we have a new spammer along with govttrader

Mon, 08/13/2012 - 14:07 | 2701261 canardo
canardo's picture

She's gonna blow captain!

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