Editor's note: this post was originally for Credit Writedowns Pro subscribers when written. But it has been made freely available due to an important reference later on the free site here.
Debt deflation is taking hold in Europe. We have seen the crash in Greece's economy unfold over the last two years. And now we are witnessing similar things in Spain. As Marshall Auerback puts it, Spain is the New Greece. But now come signs that Italy too is beginning its debt deflationary spiral. According to the Italian statistical office, Italy's budget deficit rose to 8 percent of gross domestic product (GDP) in the first quarter. As it was 7 percent for the same period a year earlier, it is clear that Italy's fiscal situation is worsening. These were the worst results since 2009.
But German poli...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.