Bank of Italians


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Back to wealth


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The Treasure of the Italians BACK TO WELFARE through the public debt restructuring


Notes: This is a presentation for dissemination purposes, the detailed proposals can be requested here . The sources used are: Ministrer of Finance, ISTAT, Bank of Italy. The data refer to the year 2014. Figures in billions of euros, rounded. Author: Bartolomeo La Cava – 2015 October.


This is the Italian Public Debt: 2.200 billion € , and this the Italian household wealth: 8,000 billion €


If the State and Italians were a company, This will have 5,800 billion surplus


More than 4 million people are in absolute poverty; 7,8 mililion in relative poverty; il 44% of youth unemployment; Instead, after 7 years of crisis: 27% of public debt increasing. 470 billion


3% 4.9% and imposes a debt reduction at 60% of the GDP in 20 years. (72% decrease, about 3.6% of GDP at current value). -72% 60% The Fiscal Compact does not allow more than 3% deficit of GDP considering that the interests alone absorb almost 5% ... Where can we get the money for boosting the consumption-production?


The State and Italians can ACT as a company, for creating the money needed for investments, control the public debt and generating welfare. Let’s see how :


Share 1.000 € 1 Bank of Italians Set up the Bank of Italians, with the (temporary*) contribution of the assets of the Italians to social capital. The contribution is covered by the shares (*) it will be returned to the shareholders after the debt restructuring.


The Bank of Italians issues bonds for buying 2,200€ bn. from the Central Bank. Finance the Bank 2


The Bank buys the current public debt from the market. 3 Buy the public debt


INCOME State direct costs Social expenditure investments Sustainable debt repayment The State exchanges with the Bank old government bonds with new bonds at 1% interest and maturity agreed in the restructuring plan. 4 Program with the State Now the Bank of Italians is the sole creditor of the State, therefore, together with the Ministry of Finance, it can restructure the public debt so that: 1) - it will be sustainable, based on the forecasted incomes; 2) – the State makes the investments for boosting the growth; 3) – the State increases the social welfare.


The Bank replaces its bonds with new government bonds 5 Release the Bank’s bonds


10€ Share 1.000 € The Bank reduces the social capital and frees the shareholders capital contributions. 6 Return the capital contributions to the shareholders (The reduced capital is set up with the spread between active and passive interests)


Summary of Operations Set up the Bank of Italians Bonds issuing for financing from Central Bank Buy the public debt Debt restructuring Replace the Bank bonds with governative bonds Bank capital reduction and release the shareholders assets


Sustainable public debt; Stop new debt; About 360€ bn. saving in interests; Liquidity for investments and social welfare; Resetting foreign creditors; Independence from the market and ratings, ie decision-making autonomy in the sole interests of the Italian system. Main Results


It looks good, HOW IS THIS ACCOMPLISHED ? 1) – Set up a Committee of Experts for the preparation of the executive project; 2) – Inform the public about the project; 3) – Verify the availability of the Italians to participate; 5) – Discuss the preliminary agreements between the Committee, ECB and Ministry of Finance. 4) – Establish the promoting Committee of the Bank of Italians; Verified the will of the parties, execution will start Contact: Bartolomeo La Cava Alternatively we can continue to cover debt with new debt, spend most of the profit in interest payments, detrimental to the economic recovery and families .

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