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.