Why is the option of a default and remaining in the Euro (like Greece) not discussed? We can argue about the probability of various scenarios, but I think we cannot exclude this option. On a separate note, the problem of banks needing capital injections in such a situation can be dealt with through bail in.

Not a single mention anywhere that Italy and all EU countries need to slash taxes and welfare and create Special Economic Zones so that businesses will be falling over themselves to invest in the country. That's how Hong Kong and Singapore got rich. The secret has been out there for decades.

RV, thank you for this interview. There is so much Fed-bashing in the various news channels, it was nice to have someone from the Fed on to address some of the issues and talk about Fed policy. David, thank you as well for coming on RV to face a community with a wide range of views on this topic. I enjoyed the exchange and found it educational. My conclusion from this is the same as after listening to Stephanie Kelton; and don’t consider this Fed bashing. That is, no matter which party is in power, or the distribution (Democrats own Congress and Presidency or the other way around), the era of government spending with no limits is upon us (pandemic or no pandemic). This approach will be given air cover via the statement of “socially and economically responsible government spending” and “debt doesn’t matter….”. So, the Howard Marks experiment will be tested; give each American $1 million or $300 trillion in total and see if this triggers inflation. I’ll say it again, ladies and gentlemen, prepare your portfolios!

And why can’t ECB financing be done in perpetuity? Why not become Japan?

Needs close captions.

Italy has a huge underground economy (due to high taxes) which is not taken into account into many statistics.

Why not have the ECB run a QE program involving gold? They announce open market purchases of gold at a price high enough that Italy or any other country could settle target2 imbalances with newly revalued gold. Why couldn't that mechanism be used if there is a needed recapitalization of European banks by home country central banks? In terms of what that does to the Euro, the Euro is essentially backed by gold anyway - I believe it's their biggest reserve asset and unlike the US is marked to market quarterly. . Plus under Basel 3 gold is a tier 1 asset for commercial banks. Wouldn't a higher gold price be good for them?

These breakdowns from locals in their Euro markets is priceless... Would love to see a breakdown for each of the individual Euro zone countries from a local source. Great info. Loved it.

Molto bene, grazie

realvision continues to have quite negative narrative on Europe.. even if problems are clear .. in the last 6 months the progresses have been evident for those who want to see them (end of positive fiscal budget in Germany and start of a common debt at european level).. a more neutral coverage could be a plus..the risk is to invest looking backward..

Very well done! I would like to see the same analysis on the US. I know we can print our way out, but we are in the same boat. DLS

Really quite excellent. Thank you

My good Italian friend Niccolò di Bernardo dei Machiavelli might in hindsight look at Italy’s joining the Euro as a major loan program. He might suggest, as I did in the case of Greece, that Italy might be better off declaring bankruptcy and leave the Euroland debt free. I have absolutely no idea if or how this could happen! Many members of Euroland, however, would be better off out of ECB debt and out of the Euro. They certainly would have higher interest rates on any future loans. Since Argentina was able to float long-term bonds, many things are possible. The European Central Bank cannot support so many countries forever without a complete backstop from the Frugal Four, Sweden and Germany. Is it possible to unwind the ECB? Who would own all its bonds? DLS

Rather than helping the US dollar (as he mentions in the last minute of his presentation) I think this is an additional boost for gold!

And the Euro is rising v. the dollar?

This was a great presentation! Thanks a lot!

Is the rule of law in Italy really that bad?

Funny how the solution, more Government, is the very reason Italy is in that situation in the first place.

Good assessment, sadly, of the "Italian situation".