THE LAST ARRIVED (SASSOLI) AND THOSE WHO DO NOT GET THERE. That is the mystery of Italy, as De Romanis does to teach economics

Today we have witnessed a conversion on the road to Damascus which, at other times, would have been epochal, but which today only indicates how much the ruling classes, or self-proclaimed ones, are afraid of being swept away by the crisis they themselves have created.

David Sassoli gives the interview to the newspaper dei Poteri Forti (La Repubblica di Elkann) and says something that people with common sense and who understand economics have been saying for years, but that for an emanation of the strong powers, it is scandalous: THE CENTRAL BANK CAN ERASE DEBTS AND THIS CAUSES NO DISASTER.

I remember when Borghi or Rinaldi were mocked on TV when they made these proposals which are now being filmed at the highest level. After all, they were just simple truths: the bonds purchased by a central bank are now “neutralized”, in the sense that by now the relative money supply has been issued, so their cancellation has no effect. The central bank is NOT a normal credit institution: having the monetary authority if it has a loss it can cover it independently. Or, simply, it can cancel the debt, go into negative assets and reconstitute it slowly. There is no one who will ask for the failure of a central bank and, in history, some have gone red without any problems!

Alongside this proposal there are then some elements that will never be accepted by the Nordic states, also because, frankly, with the previous point in action, they are no longer needed: that is to make the Recovery fund and above all its financing plan permanent: because use in a complex, Soviet system, such as recovery when simpler articulations, states, can be financed directly by the Central Bank?

Of course, those who have always believed this solution possible welcomed the latest arrival:

Borghi even shows the document in which the League asked for this passage long ago, in 2016:

Now the fear of being swept away makes even Sassoli come to his senses, but, you will see, it won't make the Germans come to his senses.

Then there are those who just don't understand:

There remain many secrets in Economics and Human Science, but the first, perhaps the easiest to solve, is this: how does a person who does not understand anything about economics like Veronica De Romanis teach Economics in a state university? They will probably pay for it in Corralito….

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The article THE LAST ARRIVED (SASSOLI) AND THOSE WHO DO NOT GET THERE. That is the mystery of Italy, how De Romanis does to teach economics comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Sun, 15 Nov 2020 17:11:10 +0000.