Italy is the EU in a deficit dispute. The country refuses, the budget for 2020 according to the EU requirements. Instead, it is thinking about the issue of a new bond-based currency. A sky travel command, the can be taken as an attack on the Euro and the Eurosystem values. Why the catch under the Euro in serious trouble, and why Bitcoin as a profiteer of such conflicts to gain momentum can bring.
By Sven Wagenknecht
21. June 2019 BTC$9.780,00 4.83% part Facebook Twitter LinkedIn xing mail
The Euro had it in the last few years, not always easy. In particular, as the crisis in Greece, cooked high, went about the fear of a break-up of the Euro-Zone. By the appropriate state helps you combat the symptoms for the time being successfully. Compared with other currencies, the Euro is quite stable. Also the fear of Inflation is not yet arrived yet.
While Greece is economically a clear meaning within the Euro area, in Italy is completely different. Italy is one of the economically most important countries in the Euro-Zone. Italy should leave the Euro, would have a massive impact. It is this danger that threatens is currently stronger than ever. The situation in Italy is not so serious as long as not more, and thus a danger for the Euro.
Italy Mini-Bots: Between promissory notes and a pseudo-currency
the horrendous debt of about 130 percent of GDP – Lord, toying, Italy with an old sleight of hand. On the existing debts that have already arrived at the Limit, you want to make new debt in the run but under a different “Label”. The Parliament has already adopted a non-binding Resolution, which provides for a return of the so-called Mini-Bots. The term “Bot” in this case stands for “Buoni Ordinari of the Tesoro” to English: bond. The term “Mini” explained the tiny, the currency of similar denominations, from five to 500 euros. This Mini-denomination could make government bonds a type of money to pay, for example, with the Mini-Bots to the coffee house to visit.
but Above all, could, if the Mini-Bots to find acceptance, creditors and the debt seem to be paid. Not only in practice, also legally, there are however, some ambiguities. The Handelsblatt quoted the head of the ECB Mario Draghi for the Causa: “Either you have money, then they are illegal, or you are in debt, then the debt goes up.”
Should implement in Italy, in all Seriousness, the currency of the project, it would not be in trouble just a massive Trouble with the European institutions, but the probability of insolvency in Italy may increase. Should split the pseudo-currency from the Euro, there would be a devaluation, which, in turn, would require that the existing debt in euros, increase the price significantly. In addition to the acute threat of insolvency in Italy, would be the loss of confidence in the Euro is immense.
Although there is the argument that you can use the Mini-Bots, only a debt rescheduling, so that an increase in the state of absence of debts. But even then a loss of confidence and a deterioration in the credit rating of Italy would be the result. Finally, investors do not want to be led around by the nose and part of state liabilities-experiments.
The Bitcoin-escape as a result of irresponsible monetary policy
Even if there is a realistic hope that it comes to this fiscal absurdity that unsettled the newly-introduced Option the stability of the Euro. Italy shakes so that the value of the Euro in General and, in particular, to the Savings of the Italian population.
profiteers are, as in the financial crisis and during the subsequent Greek crisis is observed, the so-called safe havens. It was the Swiss franc, the Norwegian Krone, Gold, or Bitcoin. These currencies, or plants are known to provide in times of uncertainty, a high degree of political stability and independence. Even if Bitcoin as a non-governmental currency and / or uncorrelated asset differs significantly from the escape-Fiat currencies, it however, a similar promise. As an anti-cyclical investment media benefits Bitcoin tends to be of economic and political crises.
this independence may also result in the Mini-Bots scenario to an appreciation of Bitcoins. The mood should tilt and be the first to panic reactions of anxious savers and investors are wide, can be created in a short period of time, a dangerous momentum of its own. So much So, one hopes that this scenario occurs, it would be this time, more than in the case of the crises previously, a massive macro-economic appreciation of the reason for Bitcoin. Not only Italian savers would flee to Bitcoin, also savers from across the Euro-Zone are likely to go through the basic loss of confidence in Fiat currencies, in crypto-currencies.
The next crisis, the Bitcoin price fuel
Since the crypto-Hype in 2017, many people are familiar with Bitcoin and know its benefits. Also, there are countless investment opportunities that make it for non-crypto-savvy people are always easier to invest in Bitcoin & co. In particular, institutional investors would ensure that the next crisis for massive capital inflows in Bitcoin.
Even in the past, as institutional investors, and practically not on the image area, you could Bitcoin price increases corresponding observed negative headlines. As at 24. June 2016, the Brexit has been known to put Bitcoin on the same day, to 7.1 percent. Of course, this says nothing and is insufficient to derive a statistical relationship is derived. Nevertheless, the example of Brexit reinforced the expectations and the Image of Bitcoin to serve as a safe haven currency. Finally, Bitcoin was – see Bitcoin White Paper created to establish one of the Central banks and governments independent currency alternative.
Should make Italy, with its Mini-Bots Seriously, and the feared economic disruptions initiate, then a flight of capital to more stable currencies and assets, is likely to be.
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