Australia’s worst nightmare is back…another global banking freeze

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I’m sometimes skeptical of Ambrose Evans-Pritchard. His bearishness is so relentless and florid that it’s hard to keep up. But every so often he scribbles such a ripping piece that it is impossible to ignore. To wit, from The Telegraph comes Italexit:

The EU’s gendarmes are now eyeing Italy’s rebel coalition with professional curiosity. This is a harder nut [than Greece] to crack. For the first time since the creation of monetary union they face a government in which the critical mass of sentiment is eurosceptic. The ‘Italy First’ cohorts of the Lega openly extol the patriotic lira – or the new florin as it may be called.

A crude attempt to bully the Lega and Davide Casaleggio’s Five Star techno-mystics risks defiance and a dangerous chain-reaction, ending in a €2 trillion default on German credits to southern Europe and the devastation of the EU project.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.