Moody's Investors Service downgraded Italy's sovereign debt rating by one notch to Baa3 late on Friday, leaving it one rung above sub-investment grade, or junk. They cited Italy's fiscal deterioration and the government's decision to target higher budget deficits in the coming years. The ratings firm also added that the government's policy proposals did not offer a set of reforms that could lift Italy from its anemic economic growth. At the same time, Moody's gave Italy a stable outlook, meaning it was unlikely to cut the country's debt rating again anytime soon. Investors are wary of further downgrades as falling into a 'junk' rating would have forced more conservative investors to dump their holdings of Italian government paper.
The move comes right after the Italian government decided to resist against the Brussels sociopaths who push the eurozone straight to the cliff.
Investors sold Italian bonds and the euro on Friday, with Italy’s bond yield hitting four-year highs as the European Union called its draft budget an “unprecedented” breach of EU fiscal rules. Late on Thursday, the European Commission told Rome in a letter here that planned government spending was too high and that its structural deficit would rise instead of fall, and that the country's public debt would not fall in line with EU rules. Italy’s prime minister Giuseppe Conte defended the budget.
As has been predicted already by the blog:
It is almost certain that if the Italian people 'dare' to give more power to the anti-establishment political forces, the following part of the imaginary dialogue will take place: “We will start with Italy and Spain. We will order rating agencies to attack, exclude them from markets and throw them to the ECB trap. They will be forced to take similar measures, as Greece did, in order to receive liquidity. Then, we will attack France and Germany.”