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Italy in very deep financial crisis!

A rough day for the Euro is coming ahead. Within 10 days the currency will
again face a very rough wind as Italy has announced that it will probably need
400 billion(!) Euro out of the rescue bond. This is more than double the money
Greece has claimed! So what will be the result out of this?

Threescenarios might come in handy. They may reflect what would happen if…
But the problems are bigger and far more completely to describe in detail, so I try to reflect it in a short, compact way. I still wonder if the Euro is going to survive with this big mass of problems that are burning within. Most voices heard from the public is that the Euro is getting into deeper trouble each day. The signs don’t point to any better times at the moment. That’s why also many europeans are loosing hope. And Switzerland and it’s people don’t respect the Euro as currency anymore! Who can blame them anyway? The Swiss national bank has pumped almost 300 billion swiss francs into the Euro to stabilize it. At the risk that the swiss people are paying the bill for that action. Inflation of the swiss franc and shortened pensions are the biggest concerns of swiss people!

Scenario 1:

Italy can claim the 400 billion euros without any bigger trouble. Possible action afterwards: The Euro will plummet to ground against the dollar. Switzerland gain has to intervent by buying billions and billions of euros. So the Swiss franc will also loose value just to please the exporting companies. Switzerland is within the drowning current…

Scenario 2:

Italy could manage to reduce the amount of Euros needed. Euro will still loose value but not as much as out of scenario 1. Switzerland won’t have to put too many francs in the Euro. Swiss Franc will keep good value against foreign currencies. So it will probably take out a shiner only.

Scenario 3:

Most unlikely but not impossible: Italy finally tries to reduce it’s expenses for the sake of the Euro and Switzerland doesn’t have to intervent in any way. Most perferred by France, Germany and also Switzerland who are the three most bleeding countries in the Euro crisis!

I don’t know what’s coming on to us but yet, future looks grim and it ain’t gettin’ better so far! Hopefully things will sort out sooner or later without any bigger losses. The economy however is at a very critical point. So is the Euro as a community currency!

Interesting fact also that now Italy is trying to force pressure on Switzerland concerning tax questions. First, germany, then France, now Italy. Hmm… I think, the countries have a severe problem to accept that Switzerland still seems to cope fine with the financial economy crisis while Europe is on fire. What lies nearer than trying to squeeze out the only country within Europe that ain’t part of the EU? And believe it or not. More and more swiss people (and former Europeans now living in Switzerland for different reasons turn their back on Europe. I don’t blame them. Europe has a big deficit in saving money and houseloding with tax money from already through-the-roof taxes! Switzerland still has very low taxes and is still decreasing it’s countrywide debts by 8 million francs per day! to have a comparison: Germany alone generates 32 million Euros country debt per day! That’s why I think, the EU envies the swiss people and tries to put pressure on Switzerland!

The Euro… yet crackling but still alive! And it won’t change in the future as there are many believers in it! I only hope that the Euro will either stabilize and givwe back the value, Switzerland has lost in it or it will be disengaged in dignity!

Hey Europe, I have a message for you: Why don’t you ask Switzerland on how to better household with the money you have and make your citizen happy? Switzerland can… can you?

December 1, 2011 Netspark - 1594 posts - Member since: May 9th, 2011 No Comments »

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