Erdogan Urges Turks To Stick With Collapsing Lira, Warns Financial Speculators "

[Tony Koretz]

Erdogan Urges Turks To Stick With Collapsing Lira, Warns Financial Speculators “Will Pay A Heavy Price”

The ailing currency has lost over 20% of its value against the U.S. dollar this year as The FT points out that a volatile mix of electoral populism and a rising dollar have pushed the country to the brink of a currency crisis. At the helm is a leader obsessed with growth, who has long dismissed higher rates as a way to make “the rich richer and the poor poorer” and often feuded with the country’s central bank.

Despite the actions of the central banks and the threats, promises, and cujoling of Erdogan, the lira continued to weaken. On Tuesday, after a warning from the rating agency Fitch put more pressure on the currency, Turks began to share rumours of impending capital controls and rushed to buy gold, which has been doing what gold does… maintaining the wealth of those who hold it…

READ MORE https://www.zerohedge.com/news/2018-05-26/erdogan-urges-turks-stick-collapsing-lira-warns-financial-speculators-will-pay

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[Tony Koretz]

Italy in chaos as effort to form Western Europe’s first populist government collapses

Italy fell into political chaos Sunday (local time) after the presidential veto of a euroskeptical finance minister caused the apparent collapse of an attempt to form Western Europe’s first fully populist government.

Italians had entered the weekend thinking such a government might be just days away from taking power. What they have received instead is what one major paper, la Repubblica, is calling “an unprecedented institutional clash.”

President Sergio Mattarella – given referee-like powers to oversee the formation of governments – refused to approve as finance minister 81-year-old Paolo Savona. In a new book, Savona, described Italy’s adoption of the euro as a “historic error,” according to media accounts,

“The adhesion to the euro is a choice of fundamental importance for the perspectives of our country and our youth,” Mattarella said. “If you want to talk about it, we need to do it openly and with a serious, in-depth analysis.”

During recent days, Italian bonds have slumped, raising the country’s borrowing costs, and Mattarella said this represented “concrete risks for the savings of our fellow citizens and of Italian families.”

In an interview for the TV program Che Tempo Che Fa, Five Star leader Luigi Di Maio said he was “asking for Mattarella’s impeachment.”

READ MORE https://www.stuff.co.nz/world/europe/104270986/italy-in-chaos-as-effort-to-form-western-europes-first-populist-government-collapses

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[Moritz]

Well, Italy had 65 governments in the last 73 years, so ‘chaos’ is a relative term when it comes to them. But this time they could finally blow up the euro zone because they are to big to bail out even for us. Trying to do so would be futile and/or suicidal. Either way an Italian collapse would propbaly trigger all kinds of chain reactions in a lot of notorious institutions like Deutsche Bank.

Apparantly some old prophecy of David Wilkerson could very well apply to this siuation https://doomerdoug.wordpress.com/2018/05/27/is-david-wilkersons-prophecy-being-triggered-5-27-2018/

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