… Italians are now in a revolutionary mood… This mood has given rise to a populist, anti-establishment political group known as the Five Star Movement (M5S).
According to Nick (Giambruno, editor of Crisis Investing), M5S wants Italy to hit the reset button. He wrote last month:
M5S blames Italy’s chronic lack of growth on the euro currency. A large plurality of Italians agrees. M5S has promised to hold a vote to leave the euro and reinstate Italy’s old currency, the lira, as soon as it’s in power. And that could be very soon.
Of course, M5S will have to assume power before Italy can drop the euro. But that could happen as soon as next month.
• Italy will hold a constitutional referendum vote on December 4…
A “No” vote is a chance for the average Italian to give the finger to EU bureaucrats in Brussels. …
According to the latest polls, most Italians plan to vote “No.” If this happens, Renzi, Italy’s current prime minister, has promised to step down. That would make it much easier for M5S to rise to power.
(A “No” vote in) the Italian referendum (or “Quitaly,” as some are calling it) could do far more damage than Brexit. You see, unlike the U.K., Italy actually uses the euro. If it leaves the EU, Europeans could lose “faith” in the euro…and that’s all a paper currency like the euro has.
Also, you have to remember that Brexit caused stocks around the world to crash. If Italy leaves the euro, the same thing could happen…but the downturn could be much more violent. Nick wrote in August:
The bottom line is this: the entire EU project may very well die in Italy later this year. That would undoubtedly trigger a stock market crash of historical proportions. …
The Financial Times recently issued a similar warning:
An Italian exit from the single currency would trigger the total collapse of the eurozone within a very short period.
It would probably lead to the most violent economic shock in history, dwarfing the Lehman Brothers bankruptcy in 2008 and the 1929 Wall Street crash.
Even if the Financial Times is only half right, we could be looking at a stock market crash of historic proportions. …
(Meanwhile,) Italy’s bond market is screaming “danger.” … The yield for the Italian 10-year government bond hit an all-time low of 1.04% in early August. Since then, it’s surged to 2.12%. Put another way, it’s more than doubled in only three months.
This is a serious red flag. It tells us investors are very nervous about Italy. And they have every reason to be. If Italy’s upcoming referendum goes the way we expect, Italy’s bond market could implode. And that could mark the beginning of the end for the euro.
Nick’s so convinced this will happen that he sent an alert to his readers on Tuesday telling them to short Italian bonds. In other words, he doubled down on his bet against Italy.
You can get in on both of Nick’s euro and Italian bond shorts by signing up for Crisis Investing. But you must act quickly to take advantage. As we said earlier, the crisis in Italy could kick into overdrive just three weeks from now. To see why, watch this eye-opening presentation with Doug Casey.