July 20, 2012
Today 40 year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News. Fitzwilson is founder of The Portola Group, one of the premier boutique firms in the United States. Here are Fitzwilson’s observations: “Scylla and Charbydis were mythical sea monsters. Lying off the coast of Italy, Scylla faced across the Strait of Messina, at Charybdis, lying along the Sicilian coastline. Scylla took the form of a rocky shoal, and the Charybdis a whirlpool. According to Homer, as Odysseus passed through the Strait, he faced one of two unpleasant fates while trying to navigate down the middle. It is the equivalent of the phrase ‘choosing between a rock and a hard place.’”
Robert Fitzwilson continues:
“The Italian government faced such a choice this week as it appeared that modern Sicily was on the verge of bankruptcy. Presenting the real risk of a financial Charybdis for Italy as a whole, the Italian government quickly announced a transfer of 400 million Euros to smooth over the current crisis. The announcement said that the transfer had ‘already been planned.’
Emphasizing the systemic and metastatic status of the global financial system, Sicily’s problems date back to ill-fated uses of derivatives by governments who were unequipped to understand the risks of such financial instruments. Whether or not Italy actually has the Euros is another issue, but the announcement has calmed the waters for the moment.
While the Greek characters above were mythological, modern governments at all levels, in most countries around the world, are battling very real adversaries in the form of deleveraging and decades of unfunded promises….