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Italian Debt Levels Drop in Rare Good News

New debt figures from Europe are encouraging, for a change. Greek debt is up, and so are debt levels in Portugal, Ireland and Spain.

But in Italy, as in the eurozone as a whole, debt edged down in the third quarter of last year.

If this trend continues, and Italy continues to widen the distance between itself and the most troubled countries, there are limits to how big a mess Europe is in. If Italy faces catastrophe, it’s sauve qui peut.

Since France and Germany are doing well, European debt levels over all continue to drop — and are far below Uncle Sam’s level, by the way. At some point, euro bonds could start looking better than ours — we are moving in Greece’s direction at the moment, not Italy’s.

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  • Kris

    “If Italy faces catastrophe, it’s sauve qui peut.”

    Christine Lagarde ne mourra pas, elle se rendra. 🙂

  • Kenny

    ” …we [the U.S.] are moving in Greece’s direction at the moment, not Italy’s.”

    Spot on, Mr. Mead. And the political will does not seem to be there to change this.

  • Jacksonian Libertarian

    I think looking at the differences between quarters is silly, only by looking at the yearly budget numbers can you see how much of the budget is getting covered by tax collections and how much is deficit spending.
    The American budget is 40+% deficit spending, and major cuts are absolutely necessary, but there is no willingness in the Democrat controlled Senate or White House to make those cuts. The Democrat controlled Senate hasn’t passed a budget in over 1000 days despite a Constitutional requirement that they do so, because they don’t want the voters to know just how irresponsibly they spending. All the Democrats want to talk about is increasing Taxes on deflating economy, while ignoring the Fact that there is no way they could collect an additional $1.2 Trillion to cover their insane deficit spending. In fact increasing taxes is likely to strangle any growth in the economy and not collect a dime more of revenue.

  • Jim.


    The fact that the best conservative TEA Party type candidate in the presidential race (Gingrich) is widely hated by establishments of all types (GOP, Democrats, MSM) doesn’t help matters.

    I’ll probably vote for him in any case, in honor of the fact that whatever else he is, he is The Man Who Forced Clinton to Balance the Budget. I suspect I won’t be alone.

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