NB. Original Powerpoint can be found
here.
Debt and interest rates
Do the finance ministers control the economy?
Hon. Giulio Tremonti
 |
Former Italian Finance minister (1994–1995, 2001–2004, 2005–2006, 2008–2011)
| Debts (nearly) |
2000 B€ |
| Revenue (about) |
800 B€ |
| Expenses |
870 B€ |
The books have always been losing for the past 20 years.
Problem: come rinnovare il debito
di 20-30 B€ che scade ogni mese
|
Hon. Mario Monti
|
|
Former Italian Finance minister (2011–2013)
| Debts (nearly) |
2000 B€ |
| Revenue (about) |
800 B€ |
| Expenses |
870 B€ |
The minister in charge of the treasury may have changed, but the problems are the same.
|
So who controls the economy?
Larry Fink
|
| As of March 31, 2011, BlackRock's assets under management total 3650 B$ across equity, fixed income, cash management, alternative investment, real estate and advisory strategies.
Investment system services to a broad base of clients with portfolios totalling approximately 10000 B$
As of September 30, 2011, BlackRock's assets under management total US$3.345 trillion across equity, fixed income, cash management, alternative investment, real estate and advisory strategies. Through BlackRock Solutions® — the natural evolution of our long-standing investment in developing sophisticated and highly integrated systems — we offer risk management, strategic advisory and enterprise investment system services to a broad base of clients with portfolios totaling approximately US$10 trillion.
|
Bill Gross
|
| For 25 years he was the charismatic boss of Pimco. He is one of the best asset managers. |
Power Holders
It is clear therefore that the power holders are not the governments, but the top asset managers,
| Rank |
Manager |
Country |
Total Assets |
|---|
| 1 |
BlackRock |
USA |
$3,346,256 |
| 2 |
State Street Global |
US |
$1,911,240 |
| 3 |
Allianz Group |
Germany |
$1,859,351 |
| 4 |
Fidelity Investments |
USA |
$1,699,106 |
| 5 |
Vanguard Group |
USA |
$1,509,119
|
| 6 |
AXA Group |
France |
$1,453,285 |
| 7 |
BNP Paribas |
France |
$1,326,730 |
| 8 |
Deutsche Bank |
Germany |
$1,261,234 |
| 9 |
J.P. Morgan Chase |
USA |
$1,252,915
|
| 10 |
Capital Group |
USA |
$1,179,695 |
| World's largest asset managers |
Total Assets managed by country |
|---|
|
|
| The expiration of Italian bonds |
Total Assets managed by country |
|---|
|
It's worth noting that there is a jump from a 137B€ debt expriring in 2011 to nearly 270 B€ in 2012. The only hope is that the global economy won't leave Italy behind.
|
In the past 10 years Italy's GDP has barely grown at all. In fact, when stating a ~2% increase in 10 years, one should take into account population growth and that in those years a considerable amount of public debt was underwritten by foreign investors — about 600B€.
|
