New Italian Prime Minister Mario Monti

Italy’s newly sworn in Prime Minister, Mario Monti, is helping to form a new government as his country continues to teeter on the brink of economic collapse, after having been allowed to burden itself with an exquisite amount of debt. (Debt, of course, lent to it by banks who quite simply never had the money in the first place, or who were never economically qualified to remotely borrow as much money as they did.)

Karl Denninger, however, says global crises like what we’re seeing in Europe, and in our own country in recent years, will continue to happen as long as a rigged system where banks are incentivized to create debt around which they can speculate.

Here’s Karl and Dylan’s conversation with the Megapanel.

Karl Denninger, one of the founding members of the Tea Party, is the author of the new book Leverage: How Cheap Money Will Destroy the World.