Upload
bartolomeo-la-cava
View
82
Download
0
Embed Size (px)
Citation preview
The Treasure of the Italians
BACK TO WELFAREthrough the public debt restructuring
Notes:This is a presentation for dissemination purposes,the detailed proposals can be requested here.
The sources used are: Ministrer of Finance, ISTAT, Bank of Italy.The data refer to the year 2014.Figures in billions of euros, rounded.
Author: Bartolomeo La Cava – 2015 October.
This is the Italian Public Debt:2.200 billion € ,
and this the Italian household wealth: 8,000 billion €
If the State and Italians were a company,
This will have 5,800 billion surplus
More than 4 million people are in absolute poverty;
7,8 mililion in relative poverty;
il 44% of youth unemployment;
Instead, after 7 years of crisis:
27% of public debt increasing.
470
billion
3%
4.9%
and imposes a debt reduction at 60% of the GDP in 20 years.(72% decrease, about 3.6% of GDP at current value).-72%60%
The Fiscal Compact does not allow more than 3% deficit of GDP
considering that the interests alone absorb almost 5% ...
Where can we get the money for boosting the consumption-production?
The State and Italians can ACT as a company, for creating the money needed for investments, control the public debt and generating welfare.
Let’s see how:
Share 1.000 €
1 Bank of Italians
Set up the Bank of Italians, with the (temporary*) contribution of the assets of the
Italians to social capital.
The contribution is covered by the shares (*) it will be returned to the shareholders
after the debt restructuring.
The Bank of Italians issues bonds for buying 2,200€ bn. from the Central Bank.
Finance the Bank2
The Bank buys the current public debt from the market.
3 Buy the public debt
INCOME
State direct costs
Social expenditure investments
Sustainable debt
repayment
The State exchanges with the Bank old government bonds with new bonds at 1% interest and maturity agreed in the restructuring plan.
4 Program with the StateNow the Bank of Italians is the sole creditor of the State, therefore, together with the Ministry of Finance, it can restructure the public debt so that:1) - it will be sustainable, based on the forecasted incomes;2) – the State makes the investments for boosting the growth;3) – the State increases the social welfare.
The Bank replaces its bonds with new government bonds
5 Release the Bank’s bonds
10€Share
1.000 €
The Bank reduces the social capital and frees the shareholders capital contributions.
6 Return the capital contributions to the shareholders
(The reduced capital is set up with the spread between active and passive interests)
Summary of Operations
Set up the Bank of Italians
Bonds issuing for financing from Central Bank
Buy the public debt
Debt restructuring
Replace the Bank bonds with governative bonds
Bank capital reduction and release the shareholders assets
1. Sustainable public debt;
2. Stop new debt;
3. About 360€ bn. saving in interests;
4. Liquidity for investments and social welfare;
5. Resetting foreign creditors;
6. Independence from the market and ratings, ie decision-making autonomy in the sole interests of the Italian system.
Main Results
It looks good,
HOW IS THIS ACCOMPLISHED ?
1) – Set up a Committee of Experts for the preparation of the executive project;
2) – Inform the public about the project;
3) – Verify the availability of the Italians to participate;
5) – Discuss the preliminary agreements between the Committee, ECB and Ministry of Finance.
4) – Establish the promoting Committee of the Bank of Italians;
Verified the will of the parties, execution will start
Contact: Bartolomeo La Cava
Alternatively we can continue to cover debt with new debt, spend most of the profit in interest payments, detrimental to the economic recovery and families .