Italy in a pot of soup

Comrades,

As you know a few days ago the appeal court sitting in Milan ordered Silvio Berlusconi’s Finivest to pay  Engr. Carlo Benedetti the sum total of 560 million Euros as compensation for trickily taking away Mondadori press. As usual the sycophants around Berlusconi are crying wolf. Some of them say that it is another act of persecution by the Italian Judiciary, while others say it will be wrong to ask a company to pay such a huge amount of money in this trial times. The ‘paretto equilibrium’ says completely a different thing, but we shall come to that later. What these stooges surrounding Berlusconi has failed to tell the world is that, Berlusconi corrupted a Judge to take away Mondadori from De Benedetti. Again all the people involved in this saga including Berlusconi’s lawyer Previtti and the Judge had been languishing in Prison. Berlusconi escaped prison through one of those self serving laws he made for himself. The national tragedy is that for another while or months the politics of Italy will be directed towards the services of the Prime Minister while the good people of Italy will continue to suffer. In what is now termed the ‘black Friday’ the stock market went crashing just 2 days ago from the time of writing (The last time we such episode was in 1987 in United States and it was called ‘Black Monday’). It was recorded that the market lost about 13 billion on Friday due to what the government termed speculation. Yes!! In the financial circle we know speculation usually have a devastating effect on the market. But, how can we attribute the Italian situation to speculation when the government lacked the will to address the crisis that hit the globe in 2007. All other government have adopted measures to re-direct the economy towards the part of growth but the Italian government had been busy organizing the sex party at Arcore, the residence of the premier. Italy has a growth rate of less than 1 percent and a national debt of 1863 billion euro. The commercialista turned finance minister had no initiative because as every conservative economist he believed that the economy will recover on its own. Although all the rating agencies like S&P, Modus had been signalling a danger in the Italian economic direction the yes master at the Italian ministry had continuously told us not to worry. Unfortunately economics is not sex party, or the policy makers do what they are supposed to do or there will be severe consequences. My fear then is that sooner or later Italy will join the Greece, Portugal and Ireland league of Nations. If United States takes the right step they might be salvaged.

Good time

Paul