Rome, the eternal city, is on the verge of a Detroit-style bankruptcy, but has been bailed-out by the Italian government. As if Italy doesn’t have enough problems, their unemployment rose to 12.67%.
Italy is not alone. France has seen rising unemployment as well at 10.80%. And jobseekers in France has hit an all-time high!
This is a very sad state of affairs for Italy and France. Particularly when we compare them to the former Soviet Union countries of Russia and Ukraine. Both of which have experienced DECLINING unemployment since 2008, unlike Italy and France.
Of course, Russia and Ukraine are involved a situation which could culminate in war. The Russians have allegedly seized the Crimea. Ukraine is mobilizing reserve troops and is threatening war.
From Bloomberg: “According to Mr. Kerry, if Russia doesn’t “step back” from its military incursion, “there could even be, ultimately, asset freezes, visa bans” and disruption of trade, Kerry said on NBC’s “Meet the Press” program.
Laying out the economic stakes for Russia as the U.S. tries to defuse a crisis over Ukraine, Kerry also said Russia “may not even remain in the G-8 if this continues,” referring to the group of industrialized nations that Russia joined after the dissolution of the Soviet Union.”
Let’s see what happens to Ukraine’s currency on Monday.