I think buying well over a Trillion € in sovereign and corporate bonds to stabilise the market (when Private investors refuse to buy) and keep interest rates at record lows is more than just "not actively sabotaging". It provides highly indebted countries and companies with a time-limited opportunity to get out of a cycle of ever increasing debt. Of all the PIIGS, Italy is the only country which has not taken advantage of this opportunity to reduce its Dept/GDP ratio.

The only reason Brexit hasn't imploded the UK economy so far is the fact that Sterling has devalued sufficiently to offset the loss of competitiveness and investor confidence. Even so the UK economic growth has slowed to the lowest of EU countries. I shudder to think what impact Italexit would have on the Italian economy without the ability to devalue radically and probably default on its debts.

There is no separate process for exiting the Euro. A50 is the only game in town. In a few years time we will know how that has worked out for the UK. I don't expect the outcome to be encouraging.

Index of Frank's Diaries