(Stillness in the Storm Editor) Italy just announced they are going to suspend mortgage payments during the coronavirus outbreak. This is obviously a logical choice as the forced quarantine placed on Italians is preventing many from working to pay their bills. But there’s a hidden aspect to this move that should not be ignored.
The global economy is intimately tied to banking services.
Years ago, we transitioned to a debt economy, where major companies, governments, and citizens stopped paying for things with savings, and instead use bank credit.
The bank’s issue loans and lines of credit to supply the money needed to keep society going, at all levels. The bank then sells debt products to investors in securitization packages, which are then sold on the stock market. These derivative debt products are what caused the global financial recession in the 2008 crisis.
When borrowers can’t pay their mortgage payments, given the situation I just described, it puts the entire financial system at risk. If banks don’t impose a “debt holiday” then it puts their debt products at risk because they have to ensure investors that payments will be timely and consistent. The lack of payments is what triggered the 2008 recession.
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Thus, this move by Italy, while on its face has benefits for the average joe, is also a move to protect bank investment portfolios and ensure the global economy doesn’t collapse.
This underscores the often overlooked reality that the bankers have taken over the engines of production and commerce in our world. And that a small crisis could unravel the whole scheme.
The good news about this is that the real engines of prosperity were always in the hands of the people. And perhaps, this coronavirus situation will be used as an educational tool to help us regain financial sovereignty in the future.
– Justin
(Mandy Froelich) As the number of confirmed cases of coronavirus (Covid-19) continues to rise, global citizens are being forced to self-quarantine to “flatten the curve.” While the preventative action will ultimately help to reduce the death toll, a concerning number of people don’t know where their next paycheck will come from – or, if it will come at all. This is why in Italy, the worst-hit nation second to China, mortgage payments are being suspended.
by Mandy Froelich,
Laura Castelli, Italy’s deputy economy minister, suspended payments to help soften the economic blow caused by the coronavirus pandemic. She told Radio Anch’io: “Yes, that will be the case, for individuals and households.”
Early March, Italy’s banking lobby group ABI confirmed that lenders would offer “debt holidays” to small firms and families. As BBC News reports, this isn’t the first time the European nation has suspended debt payments for citizens. During the financial crisis, small businesses and families were given time off.
So far, nearly 30,000 people in Italy have been diagnosed with coronavirus. Over 2,000 people have died, primarily the elderly. To prevent the pandemic from worsening, the country has been in lockdown. Citizens who leave are slapped with a fine of 206 Euros or a 3-month prison sentence. Additional measures include travel restrictions and a ban on public gatherings.
According to experts, the global economy will take years to recover from the coronavirus pandemic. In Italy, specifically, the economy was just beginning to recover following a financial crisis that occurred one decade ago. Last year, the total production of goods and services was approximately the same as it had been 15 years earlier. However, it was still 4% below the level it reached in 2007 – before the financial crisis.
The measure to suspend mortgage payments will undoubtedly benefit many citizens. Hopefully, other nations will follow suit to support the most vulnerable of citizens who are affected by the shutdown.
Stillness in the Storm Editor: Why did we post this?
The news is important to all people because it is where we come to know new things about the world, which leads to the development of more life goals that lead to life wisdom. The news also serves as a social connection tool, as we tend to relate to those who know about and believe the things we do. With the power of an open truth-seeking mind in hand, the individual can grow wise and the collective can prosper.
– Justin
Not sure how to make sense of this? Want to learn how to discern like a pro? Read this essential guide to discernment, analysis of claims, and understanding the truth in a world of deception: 4 Key Steps of Discernment – Advanced Truth-Seeking Tools.
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Source:
https://truththeory.com/2020/03/18/italy-to-suspend-mortgage-payments-amid-coronavirus-outbreak/
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