Italy today has been practically declared bankrupt by the ECB.
ECB will stop purchasing Italian and Spanish bonds therefore condemning Italy to be in default by October should this not change. It could be scare tactics to enforce compliance from the Italian government or could be in the worst case for Italians a throw the towel and brace for impact.
Greece is going to be finally bankrupt in a matter of days but the decision of Germany to leave Greece to itself aside from the similarities between Greek and Italian insanity is in part functional to set a precedent and specifically for the Italians who are next in line.
The reality is that Greece was doomed long time ago and regardless of the initial damage a Greek default will not precipitate Armageddon, Italy on the contrary is the real deal.
True, German banks exposure to Greek debt will be a major blow but is nothing that can put the Germany economy at risk.
Italy is the end game for the Euro and Europe and unfortunately Europe does not know anymore what to do with a totally insane Italian government who is completely alienated from the reality.
Berlusconi had its use when it came in the past to control an important country, his weakness and insanity was useful in manipulating the Italian government to follow orders when needed.
Unfortunately the monster has escaped from the cage and Berlusconi's insanity which was object of fun and smirks in diplomatic circles is turning to nightmare.
Berlusconi has not spent a single word so far on the dangers the country is incurring aside from brief and pathetic jingles on how Italy is in better shape than other European countries and everything is fine; even today with the Italian economy crumbling down he had thoughts only in finding a way to block judges from prosecuting him for countless crimes.
He still had time today to go to public events proclaiming the following "I feel a dramatic sense of powerlessness"; just what the country needed to lose the little confidence left abroad.
It seems Italian society at large has become a Kafka's world where the normality is turned upside down, where phrases that in every other country would bring to an insurrection in Italy are not raising even an eyebrow.
People go on living their distorted reality without any reaction to what is clearly insanity made normality.
Italy has already been put under EU protectorate.
EU thought that being able to manipulate Berlusconi would win compliance to its diktats but unfortunately for them they did not factor the ego and survival instinct of Berlusconi.
As usual the great con artist has unleashed every kind of tricks and magic, he is still owing 90% of the media in Italy so He still has plenty of aces to play via manipulation of the public opinion.
If the European strong powers thought they could keep him in power as a puppet to pass through every kind of unpopular measures well they have to face now a sinking ship and a sinking captain.
Popular resentment is running high regardless of Berlusconi's brainwashing and therefore his preservation instinct does not make him any more complaint to the EU's diktats.
This is getting worst and I would not be surprised once the emergency has passed that Berlusconi will incur a faith similar to his best buddy Gaddafi.
In the meanwhile the situation in Italy is getting nuts sort of Titanic's band-playing-while-ship-sinking while Berlusconi is sticking to his chair regardless of every kind of trash being thrown at him.
He is clearly negotiating his leave from power. He is well aware he will go to prison in the best case scenario as soon as he will no longer be the Prime Minister and he is simply trying to save his butt.
Unfortunately for Italy the amount of collateral damage he will cause with his actions will be long felt by the future generations.