Within an increasingly complex economic system but with the correct fundamentals, debt and recourse to it is a sign of trust and positive in general terms.
A company that uses this form of financing, not being able to draw on its own resources, nevertheless demonstrates that it has growth expectations for its industrial or service vocation to which it responds through an infrastructural investment that allows it to face the increase in demand expected for your good or service and perhaps at the same time the reduction of Clup (labor cost per unit of product).
At the same time, even a family that uses consumer credit demonstrates not so much that it currently possesses the financial resources to face an important purchase as it has positive expectations regarding future earnings in the medium and long term:
and with the almost certainty through these future incomes to be able to meet the financial commitments of which the family is aware and responsible.
In general terms, therefore, whether it is an economic enterprise or a family, the debt represents an expression of trust regarding the expectations of its own future.
This scenario, however, finds a third wheel that places itself in competition with these two subjects in order to finance its public spending: the State.
Each sovereign state has a fairly significant share of indebtedness ranging from 38% in Switzerland to 132% in Italy, passing through shares of 87 or 67% in Germany, depending on whether the debts of the various Lander are also evaluated.
When this debt is seen functionally with a view to increasing the competitive capacity of the individual state through infrastructural investments that automatically become competitive factors with the aim of making the whole industrial and service system thus expresses its strategic and economic development function.
On the other hand, as in the case of the management of Italian public spending, if this is used substantially only and exclusively for the purpose of coping with ordinary expenditure then in this case the debt becomes a problem regardless of its extent but obviously proves unsustainable in certain cases such as the Italian one.
Ordinary and current expenditure leaves the Country System on the contrary, from a competitive point of view, this undergoes a setback as other countries advance in their capacity for economic progress thanks to infrastructural investments.
Secondly, this perverse type of public spending tends to create pockets of income that are absolutely free from any market context that weigh heavily on the competitiveness of the entire country.
The lack of understanding or rather ignorance of the effects in the short but above all in the medium and long term of such a complex public expenditure emerged in its gravity and evidence towards the end of the eighties precisely in a period in which the debt explosion occurred public.
In that period in which the financial disasters still today Italy is paying heavily, a minister candidly stated that "at the limit the debt could be consolidated" by bringing the debt / GDP ratio under control.
The weight of a debt must also be mentioned in relation to the currency in which it is expressed.
These currency values together with the level of the spread represent the level of consideration regarding the sustainability of a country in relation to its economic growth, the sustainability of this public expenditure in relation to both GDP and deficit.
Just to give an example of the considerations that the Italian economy enjoys at this particular moment, it should be remembered that the spread Spanish compared to ours is lower on average in recent weeks by about 60 basis points.
And if we had a national currency and therefore the debt but also the GDP were expressed in this currency, it would substantially bring our country to the brink of financial failure.
Even if in euro and therefore in a stronger currency than a hypothetical return to lira only in the last nine months have the Italian financial circuit exited investments for around 150 billion.
I leave to imagine what a catastrophic financial scenario would be if the motivation of a lack of confidence in the growth of a country was added a currency in free fall as it would be a hypothetical return to the lira.
Therefore, the debt can represent or better represent a share of public spending aimed at achieving competitive factors that will manifest themselves by force through an increase in the country's ability to compete in international markets and above all an increase in GDP.
On the other hand, in Italy it has been used and is still used as a tool to obtain electoral consent, provoking a continuous withdrawal of our country from a competitive standpoint.
In fact, it must be stressed that public spending has reached the 828 billion threshold with a very strong reduction in spending on infrastructure investments.
This expenditure is increased despite the quantitative easing has cut the cost of servicing the debt by 13 billion per year, to which must be added an increase in the debt itself of about 50 billion per year, making the sum of these three items even more unjustifiable the increase in public spending.
The proof of the economic unsustainability of this public spending strategy, especially combined with an absolute lack of vision on the part of the various governments, is witnessed by the negative balance of the financial flow of 134 billion in 2015, then increased in 2016 by a further 34% exactly the effect opposite that theInvestment compact he had predicted.
Numbers and strategy of the financial world that indicate very clearly the consideration and above all manifest the negative expectations related to our growth characterized by an absolutely unproductive public expenditure that leaves the competitive capacity of our country unchanged while the others advance despite the strong difficulties of crisis erupted in 2008.
After all, the debt from the reasons and its genesis of its birth through the articulated growth and management is the umpteenth manifestation of an absolute irresponsibility together with the classic manifestation of pride convinced that for a State the opportunity would never have to be accountable in the financial field.
In addition, from 2011 to date, our country has experienced a climate of "favorable suspension" from the evaluation of economic fundamentals thanks to the activity of Draghi, president of the ECB, who, by purchasing our securities on secondary markets since 2012, has obtained the lowering of the spread and successively through the quantitative easing in fact, it has canceled or at least reduced the weight of the evaluation of the economic and financial balance.
In this sense, our country exploits the "financial synergies" that have allowed the negative evaluation perhaps spread within a macro economic-financial area that the euro represents.
Despite this, all governments from 2011 to date have continued to increase spending such as debt despite savings of over 13 billion per year due to the lower cost of public debt and has passed financial laws whose total cost of all these factors far exceeds the 500 billion.
That figure that was indicated necessary to the Monetary Fund to bring the public debt back to a balanced relationship with GDP.
But now the time is ripe for an inevitable policy of Tapering and subsequently Mario Draghi will have to say goodbye to the BCE presidency.
This too demonstrates a further sign of our cultural decline of which the economic one is simply a manifestation.
(photo: US Coast Guard / ECB / web)
