The Circus Marches On

RIMINI, Italy (Reuters) – Italian Prime Minister Mario Monti said on Sunday the end of the economic crisis in his country was in sight and that the euro zone must not let the single currency become a source of friction between the north and south in the bloc.

Speaking at a conference in Rimini, he said the euro zone’s third largest economy was in better shape than it was a year ago while people were more aware of the difficulties it faces.

“A year ago we thought less than we do today that we were in a crisis but I believe we were in it more,” Monti said. He said that he saw the end of the crisis “getting closer in some ways”.

How many times, people? How many times are we going to go through this?

First off: why would you even listen to the guy who claims he didn’t realize the country of Italy was in a genuine crisis last year?

Second off: what has this dope seen that suggests to him that things are getting better?

Is Italy’s debt issue getting better? Are German’s warming to the idea of monetary intervention? Have Italian’s discovered some alternate dimension, perhaps, filled with boundless resources?

Because if so, it’d be nice of them to share…

Yields are sinking because they can. There’s no point in saying “this crisis must resolve itself immediately, in fire or in good ends.” It needn’t. But to actually end this crisis, Italy’s obligations need to collapse next to their revenues. This isn’t hard…until that happens, the ECB slamming front month auctions with bids trying to suppress the yields isn’t going to magically fix this – it’ll just buy some more time.

This crisis will be back next year; or maybe even October. I see this playing out multiple ways, which is why I’m 30% cash right now – just hanging out.

It will be back because COMPLETE IDIOTS like Mario Monti sit around convincing themselves that they are great leaders and that all their countries problems originate from issues of confidence.

It’s sort of a game you have to play when you’re a talentless clown thrust into a position far beyond the scope of your abilities.

But by all means, feel free to buy into the promise of the crisis ending; just remember the people who you’re trusting while you do it. I’ll be waiting for you at the end of this winding path, laughing my ass off – just like I have been for the last three years.

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