Hey, Brussels, Italy's Printing Up Some Un-Euro Mini-BOT's To Skirt Your Budget Rules

Italy’s populist leaders are discussing paying public-sector suppliers with IOUs instead of money, a step that Italian euroskeptics have proposed as the starting point for a new currency in case Italy has to leave Europe’s currency union.

The heads of the nativist League and antiestablishment 5 Star Movement, which make up the governing coalition in Rome, want to assess the idea of paying off government arrears using IOUs with denominations as small as €50 ($56), dubbed “Mini-BOTs” after Italy’s BOT treasury bills.

 

 

 

 

 

 

 

https://www.wsj.com/articles/italy-short-of-euros-flirts-with-a-different-way-to-pay-11560178888?mod=hp_listc_pos2

 

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.