US to fund Italy's debt?

Italian newspaper Corriere della Sera reported that U.S. President Donald Trump told the Italian Prime Minister Giuseppe Conte in a recent meeting in Washington that the United States was ready to offer Italy help in funding its public debt next year. The report said the U.S. would do it by buying Italian government bonds but other than that there was little further detail. 

And on the question of why the U.S. administration would act as an anchor buyer of Italian bonds, the paper quoted Christopher Wood, analyst of the financial letter "Greed and Fear," who suggested Trump may be keen to sow division within the EU. "Trump could not have made it more clear that he supports the cause of those in Italy who want to leave the euro," Wood said.

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6 minutes ago, Ajan Bosnjacki said:

Italian newspaper Corriere della Sera reported that U.S. President Donald Trump told the Italian Prime Minister Giuseppe Conte in a recent meeting in Washington that the United States was ready to offer Italy help in funding its public debt next year. The report said the U.S. would do it by buying Italian government bonds but other than that there was little further detail. 

And on the question of why the U.S. administration would act as an anchor buyer of Italian bonds, the paper quoted Christopher Wood, analyst of the financial letter "Greed and Fear," who suggested Trump may be keen to sow division within the EU. "Trump could not have made it more clear that he supports the cause of those in Italy who want to leave the euro," Wood said.

who is going to help with ours?

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Just now, Joanna said:

who is going to help with ours?

China

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10 minutes ago, Ajan Bosnjacki said:

Italian newspaper Corriere della Sera reported that U.S. President Donald Trump told the Italian Prime Minister Giuseppe Conte in a recent meeting in Washington that the United States was ready to offer Italy help in funding its public debt next year. The report said the U.S. would do it by buying Italian government bonds but other than that there was little further detail. 

And on the question of why the U.S. administration would act as an anchor buyer of Italian bonds, the paper quoted Christopher Wood, analyst of the financial letter "Greed and Fear," who suggested Trump may be keen to sow division within the EU. "Trump could not have made it more clear that he supports the cause of those in Italy who want to leave the euro," Wood said.

Interesting. The US Treasury would be required to borrow the money to buy Italian debt at a time when they are already borrowing over $1 trillion a year

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4 minutes ago, Meanwhile said:

China

"I love debt! I'm the king of debt!"

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Helping another country this way is not what bothers me. It's Trump's attempts to undermine the EU, a move popular with the new right wing leaders in Europe. Bannon is actively encouraging these movements. And guess who's dream that is...Putin.

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19 minutes ago, Ajan Bosnjacki said:

Italian newspaper Corriere della Sera reported that U.S. President Donald Trump told the Italian Prime Minister Giuseppe Conte in a recent meeting in Washington that the United States was ready to offer Italy help in funding its public debt next year. The report said the U.S. would do it by buying Italian government bonds but other than that there was little further detail. 

And on the question of why the U.S. administration would act as an anchor buyer of Italian bonds, the paper quoted Christopher Wood, analyst of the financial letter "Greed and Fear," who suggested Trump may be keen to sow division within the EU. "Trump could not have made it more clear that he supports the cause of those in Italy who want to leave the euro," Wood said.

Don't worry, bonds are the safest form of investments. 

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3 minutes ago, JohnAtronis said:

Don't worry, bonds are the safest form of investments. 

maybe so but I am not sure about the bonds of failing countries

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Just now, Sefko Trafikant said:

maybe so but I am not sure about the bonds of failing countries

If bonds were always great forms of investment, then Italy wouldn't be having a problem. Other wealthy people and organizations would have already bought up their debt. Italy is in bad shape because of poor leadership and corruption  for a while now.

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Trying to get 28 different countries to agree on anything is highly unlikely. This is especially true when you have a few big players dictating things to others. The only way it can work is by respecting the sovereignty of each country. That is impossible to do if they are all on a single currency.

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The Russians are probably meddling.

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29 minutes ago, Stephen said:

If bonds were always great forms of investment, then Italy wouldn't be having a problem. Other wealthy people and organizations would have already bought up their debt. Italy is in bad shape because of poor leadership and corruption  for a while now.

Yes, and because of it’s EU membership, which includes the forced resettlement of “migrants”. That’s expensive in many ways.

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(edited)

Before you guys go getting all right-wing on this, it might be helpful to look at some of the underlying problems. 

First off, remember that Mr. Trump is inheriting the bad leadership of the past, going back at least to Mr. Clinton and his failed leadership in the Sarajevo siege, where Serb gunners were positioned on a ridge over the town, laughably close for rifle fire, and killed thousands of civilians by sniper fire, just for sport, revenge, and because they are amoral psychopaths  (Ratko Mladic and his crowd).  That then set the stage for Mr. Obama to refuse to transfer or sell any weaponry to the Ukraine government, granting Russia a free pass to first seize the Crimean peninsula, then the Luhansk and Donesk Oblasts - which Russia is still sitting on, with their mercenary "Wagner Forces" army  (done to maintain a thin veneer of plausible deniability).  The upshot of moving in the mercenaries and the hidden Russian ground forces was the placement of missiles with the fighters, who then promptly used them to shoot down Malaysian Airlines flight 17, killing some 270 Europeans (Dutch, mostly) and Malays.  This sets the stage for more Russian adventurism, using heavy weapons (including tanks) and mercenaries, basically newly discharged troops that are unemployed but know how to kill. 

So along comes Mr. Trump and to his credit he transfers the Javelin anti-tank missiles to the Ukrainian Army so that they can beat back any further Russian attempts, including the imminent next move, the taking of Kharkov and the push to Kiev itself, to install a puppet government. And the EU does nothing and chooses a pacifism that is entirely inappropriate in fending off Putin and Russia. 

Meanwhile the EU countries have also left Italy in the lurch, providing zero support in both their problems of being tied to the Euro, thus preventing lira currency devaluation to keep its people employed and the goods going out the door, and limiting credits to finance both infrastructure costs and to deal with the migrants.  That is not encouraging.  If the USA had shown more engaged leadership, particularly in dealing with the fighting problems, in the past, then the problems today would not be there.

Meanwhile over in Africa the twin hammers of demographic expansions due to high fecundity, and the crying up of the Sahel, are pushing people off the land.  Add in the various wars and you have a volatile situation.  The pushers of those wars are, ironically, the West (and gun runners from the former East Bloc), who make big profits selling arms to the various factions attempting to take control of territory.  if you insist on selling weapons then don't be surprised the Africans proceed to start using them.  At that point, the floods of migrants will start heading fro Europe. 

Now, how to turn this around?  One part requires military force, traditionally in Africa the French Foreign Legion, still a powerful force to be reckoned with.  The second part is to create water projects, specifically the diversion of the Congo River (and parts of the Nile) into the Sahel, where water including legacy aquifer water are being used up and traditional lakes are disappearing.  That is not that expensive as the slope is all downhill, so digging a trench and letting gravity do its thing will work just fine.  

Edited by Jan van Eck
spelling error
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(edited)

Jon, your response has merit.  Especially viewed through a historic context of failed U.S. leadership on the African continent (an incident in Somalia  had a lot to do with this) and elsewhere going back to Clinton and everyone since.

As to the EU, we agree in many respects, especially the economics of it.  The common misconception of the EU is that everyone is equal.  Due to human nature, some are more equal than others.  

Unfortunately, there is a general lack of responsibility expressed concerning the culpability of the African nations, their leaders and peoples.  It’s akin to suggesting if I am a hopeless drug addict it’s because someone sold the drugs to me.  

I submit that the African nations in question have the same problem the Middle East does, a contextual inability to understand freedom and the rule of law, especially due process.  Everything else is well, choices, in a might makes right environment.  Those countries have to make better choices, including how they govern themselves and utilize their resources to sustain and enrich themselves.  Then they won’t need to migrate.

Edited by TXPower
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Don't see it.

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