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:
Slowly they get there too !!! Sassoli: "Europe must cancel debts for Covid" | Rep https://t.co/lvoggqzIpH
– Antonio M. Rinaldi (@Rinaldi_euro) November 15, 2020
Borghi even shows the document in which the League asked for this passage long ago, in 2016:
Paper sings. The 2016 proposal by @LegaSalvini to the European Parliament for debt cancellation. That "discovery" today by @EP_President that has obviously been distracted so far.
It is produced for the use of attentive journalists who will certainly not fail to give the news pic.twitter.com/CIYNwiEcsP
– Claudio Borghi A. (@borghi_claudio) November 15, 2020
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….
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lultimo-arrivato-sassoli-e-chi-proprio-non-ci-arriva-ovvero-il-mistero-dellitlia-come-fa-la-de-romanis-ad-insegnare-economia/ on Sun, 15 Nov 2020 17:11:10 +0000.