Submitted by Nick Giambruno via InternationalMan.com,
The next domino has fallen...
I recently spent several weeks in Italy, taking the pulse of the country. The Italian referendum on December 4 turned out exactly how I predicted it would.
The “No” vote won in a landslide, with 59% of the vote versus 41% for “Yes,” with a 70% turnout.
The pro-EU Prime Minister promptly announced his resignation after the crushing defeat.
Moody's has cut Italy's long-term senior unsecuredd government debt rating outlook from 'stable' to 'negative', leaving it at Baa2 for now. Citing "slow and halting progress" on economic and fiscal reform in Italy, noting that reduction in Italy’s large debt burden will be further postponed given subdued medium-term growth prospects, recent fiscal slippage.
The drivers for today's rating action are:
Last night we reported that according to Reuters, with a private bailout off the table now that Italy is in political limbo, a nationalization in the form of a government debt-to-equity bailout of Monte Paschi was imminent, however there was a snag: political opposition from Brussels - which has insisted on a bail-in resolution mechanism instead of a bail out - could scuttle the transaction which is meant to make whole junior bondholders - mostly retail investors - courtesy of other taxpayers.
After puking over $30 from post-Italy vote highs, gold prices are jumping this morning and have erased the losses. Silver is soaring, breaking back above $17, well above pre-Italy levels...
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The Resignation of Italy's Prime Minister Renzi is Another Major Blow to the Globalist Agenda
Written by Nathan McDonald (CLICK HERE FOR ORIGINAL)