You moron, that’s exactly the argument I used that at the time in that the higher Italians savings rate and the nature of the pension system requiring a large investment in government bonds makes them okay for now.. at least until when demographics take over and their welfare state forces them into default which isn’t too far away I might add.

But what exactly is your point?

Dopey, rating agencies, large banks and Sovereign wealth funds apply various metrics to their risk allocation and one of them is currency/national risk.

For instance banks simply don’t take more risk on board than the preset limit stipulates no matter if it’s private of government debt of a particular country.

For instance a bank I worked for had a country risk of around 2% of its balance sheet for Australia and simply couldn’t go beyond that without board approval. We couldn’t trade with Australian banks at times as we were full on the country name irrespective of how much risk we had with an individual bank.

The obvious ramifications of that are something that you seem both unable and unwilling to understand.

As for government net worth…

Governments don’t account like the private sector, you freaking clown. You been told that before but seem unable to understand it.

The government for instance doesn’t value and can’t value parliament house as an asset in the same way a firm values a building. It treats it as a sunk cost. It doesn’t value the national monument other than as a sunk cost. They can’t, as it doesn’t carry a value in the way a private asset does.

I’ve explained this to you numerous times and it never ever sinks in.

How the fuck do you ever get an economics degree, you muppet?

Italy is fine because all Italians will finance the deficit showing your vast knowledge of the Euro.

The Government’s assets are worth more when the market rises. It has already happened except you didn’t even know about it indeed you said they had no assets.

LOl. You actually really think like that, don’t? You really are a 70′s retread, homes.

I used to think you were trolling and pissing around, but your deadly serious. It’s frightening.

It’s budget deficit is 5.5% and will be 5.1% in 2011. Its public debt is 123.6% of GDP.

Never mind Italy is more favourably placed than Asutralia says our resident idiot

However on current trajectory it isn’t looking good for us if we remove the bullshit crap assumptions Ken and Ma Henry suggested…. that in later years we’ll be growing at 4.5%. That isn’t going to happen. Furthermore you don’t set assumptions up at the most top end of estimates, you nimbus.

We have the highest consumer debt levels in the western world and to pretend a major stuff up wouldn’t impact the entire country from that debt level as a result of bad policy is asking for trouble.

We have just seen the ramifications of large private debt on the financial health of countries like the UK which is now essentially a Zombie country. Prior to the crisis their debt at sovereign level, although in bad shape as labor still could only manage deficits in a boom, wasn’t all that bad. The crisis has basically put them in potential IMF triage.

that shit could happen to us.

Furthermore these trogs are talking about going out and borrowing more money to build huge infrastructure projects under the big Australia banner, so more debt gets piled on.

Why do you say so outsider? If we have people who know what they are doing, all the banks could go under, and the rest of us just throw a party. This is a rumour put about by the banks themselves. They say this sort of thing for obvious reasons. We funnel resources their way because of this misinformation.