Italy engulfed in financial Spaghetti Junction

The crisis in Italy and the Eurozone debt nightmare is becoming like navigating spaghetti junction in rush hour.The complexities of the crisis and the ramifications for the world economy if country by country finds themselves insolvent make the mind boggle. We have built our societies on debt and some might see current events as divine retribution for greed – a natural reordering of an unsustainable world in which wealth has been created by manipulation,expoitation and massaging of the figures and not by plain old fashioned productivity and hard work.

We are being warned that the Eurozone crisis is worse than the banking crisis of 2008. Italy’s debt interest rate stands a 7% this morning described as unsustainable – I allowed myself a wry smile when I read that Barclays has a £27.5 bn holding in Italian debt – hard to feel sorry for their potential losses when they levy an interest rate of 30% on debt ridden Barclaycard customers – yet this punitive interest is in their eyes perfectly sustainable !