Meet The Mini-BOT: Italy Will Break Up The Eurozone

Showdown Coming Soon

A showdown is certain.

The timing is unknown, but it is sooner rather than later.

At the moment, France is also in breach of economic rules and there is this "little" thing called Brexit on the ECB and EU's mind.

So the EU will do what it always does, pretend there is no crisis and hope it goes away. But it won't.

Meanwhile, Italy wants to do this and will do this, but it would rather the EU trigger the event.

Path Set

Italy's budget is not close to meeting EU rules. The EU has threatened Excessive Deficit Procedures against Italy.

The EU will bush this aside debt targets for as long as it can, but the fate is sealed. The EU will either have to abandon its rules or fine Italy.

The upcoming fine and a spike in Italian bond yields will be the trigger for Italy to escalate the crisis with Mini-BOTs.

The longer the EU waits, the more time Italy has to prepare for the Mini-BOT launch.

I expect this to trigger within a year, and possibly months.

Italy is set to leave the Eurozone. The Mini-BOT is the transition mechanism. Few see it coming.

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