Prepare for Italian Fury: President Blocks Govt, Nationalist Landslide Incoming

The worst possible outcome for Italy is no longer a worry because an even worse outcome has replaced it.

RT: ‘Unprecedented institutional clash’: Italy fails to form govt over anti-EU economic minister
Italy’s PM-designate Giuseppe Conte said he’s given up on attempts to form a government after President Sergio Mattarella rejected his candidacy for economy minister. The country may now face a new election by the end of 2018.

...The candidacy for economy minister has been the main stumbling block for the creation of the new cabinet in the country. The anti-establishment Five Star Movement (M5S) and its rightist coalition ally Lega Nord, which won the most parliamentary seats in the March vote, insist on having Paolo Savona in the vital role.

M5S was outraged by Mattarella’s decision, with 5-star leader Luigi Di Maio calling it “an institutional clash without precedent” in a Facebook live video.

“What’s the point of going to vote if it’s the ratings agencies that decide?” Di Maio fumed. Meanwhile the League leader Salvini was sounding a similar tone.
RAI: Governo, la rinuncia di Conte. Mattarella: no a imposizione di ministri anti-euro
Salvini: "Someone said" no ", now to vote" "First the Italians, their right to work, safety and happiness.We worked for weeks, day and night, to give birth to a government that defends the interests of Italian citizens, but someone (under pressure from whom?) told us No. No more servants than anyone, Italy is not a colony At this point, with honesty, consistency and the courage of all time, the word he must come back to you! " writes the leader of the League.
For the past decade (arguably much longer), the central bankers and establishment assiduously kicked the can down the road. President Mattarella has kicked the can one more time, fearful that Paolo Savona would trigger a negative revaluation of Italian debt in the financial markets. This is the final kick of the can though. Italian voters will likely hand an even greater majority to 5-Star and the League later this year.

Since my U.S. dollar bullish forecast included Italian voters, I am not surprised. Either a political or economic blow-up would touch it off. And because the world is massively short of dollars (long U.S. dollar debt both directly and indirectly), all that's required for a new high in final leg of the U.S. dollar bull market is a rising dollar. Reflexivity will take care of the rest.

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