The EU is trying to stop rising nationalism across Europe, but in so doing may accelerate it instead. From Alastair Crooke at strategic-culture.org:
The EU leadership is trying to contain a crisis that is emerging at increasing speed: this challenge comprises the rise of contumacious states (i.e. the UK, Poland, Hungary and Italy), or of defiant, historic ‘cultural blocs’ (i.e. Catalonia) – all of whom are explicitly disenchanted with the notion of some coerced convergence towards a uniform EU-administered ‘order’, with its austere monetary ‘disciplines’. They even dismiss the EU’s claim to be, somehow, a part of a greater civilizational order of moral values.
If, in the post-war era, the EU represented an attempt to escape the Anglo-American hegemony, these new defiant blocks of ‘cultural resurgence’ which seek to situate themselves as interdependent, sovereign ‘spaces’ are, in their turn, an attempt to escape another type of hegemony: that of an EU administrative ‘uniformity’.
To exit this particular European order (which it originally was hoped, would differ from the Anglo-Americanimperii), the EU nevertheless was forced to lean on the latter’s archetypal construct of ‘liberty’ as empire’s justification (now metamorphosed into the EU’s ‘four freedoms’) on which the EU strict ‘uniformities’ (the ‘level-playing-field’, regulation in all aspects of life, tax and economic harmonization) have been hung. The European ‘project’ has become seen, as it were, as something that hollows out distinct and ancient ‘ways-of-being’.
Posted in Business, Debt, Geopolitics, Governments, History, Immigration, Insurrection, Law, Politics
Tagged EU, Italy, Nationalism, Unintended consequences
Will Italy face off with the European Union? From Tom Luongo at tomluongo.me:
Deputy Prime Minister Matteo Salvini just declared himself the leader of the Europe’s future. He refuses to budge one inch in negotiations with the European Union over Italy’s budget now threatening to take down the government.
And in doing this he not only speaks for Italians, he is now speaking for that growing part of the European population who sees what the EU is morphing into and recoiling in horror.
Protests in France over Emmanuel Macron’s new tax on diesel have turned violent. The British leadership has completely betrayed the people over Brexit. They may win this battle but the animosity towards the Britain’s leadership will only grow more virulent over time.
As the core leadership in France and Germany fades in popularity, held in place because of domestic political squabbling, Angela Merkel and Macron are ratcheting up the rhetoric against the rising nationalism Salvini represents and are now pushing hard for their Federation of Europe before both of them leave the scene in the next few years, at best.
If they lose their battles with Salvini and Hungary’s Viktor Orban they may be run out of office with pitchforks and firebrands.
Posted in banking, Currencies, Debt, Economy, Geopolitics, Governments, Politics
Tagged EU, European banks, Germany, interest rates, Italy
Governments don’t care about their subjects, they rule them. The EU is no exception. From Tom Luongo at strategic-culture.org:
Watching the complete betrayal of Brexit by British Prime Minister Theresa “The Gypsum Lady” May is proving to be a wake up call for Italians. The latest polling results coming out of Italy show that while the populist coalition in Italy is unpopular in Brussels it is still very popular with Italians.
And that’s a good thing because when you look closely at Brexit negotiations it is clear that all that matters is the EU retaining power over the U.K. and not what is in the best interest of anyone involved, British or otherwise.
The Italian coalition partners still command nearly 60% of all Italians’ support, only their preference has changed. Lega now outpolls Five Star Movement (M5S) 33% to 26%, while the other center-right parties, namely Silvio “Stalking Horse” Berlusconi’s Forza Italia have collapsed (from 14% at March’s elections to just 7% now).
And roughly that same number now see the EU as mistreating Italy. These numbers will only get worse if the EU goes through with levying fines against Italy for submitting a budget Brussels doesn’t like.
Moreover, now we’re seeing support for Italeave rise as well. A recent poll by Politico Magazine posted over at Zerohedge shows a slight majority of Italians under age 45 are ready to do just that, leave the European Union.
The over 45 crowd is still enamored with the ideal of the EU tying together a warring Europe rather than confront the reality of what it actually is, a distant and tyrannical oligarchy led by unelected technocrats with strong ties to old money and old power.
Posted in Business, Debt, Economics, Economy, Financial markets, Geopolitics, Governments, Law, Politics, Taxes, Trade
Tagged Brexit, EU, Greece, Italy
Italy may want to think twice before it pisses of the EU. The ECB has been the only buyer of Italy’s debt, and Italy wants to issue €275 billion next year. From Don Quijones at wolfstreet.com:
“Who will purchase the €275 billion of government debt Italy is to issue in 2019?”
The ECB, through its army of official mouthpieces, has begun warning of the potentially calamitous consequences for Italian bonds when its QE program comes to an end, which is scheduled to happen at the end of this year.
During a speech in Vienna on Tuesday, Governing Council member Ewald Nowotny pointed out that Italy’s central bank, under the ECB’s guidance, is the biggest buyer of Italian government debt. The Bank of Italy, on behalf of the ECB, has bought up more than €360 billion of multiyear treasury bonds (BTPs) since the QE program was first launched in March 2015.
In fact, the ECB is now virtually the only significant net buyer of Italian bonds left standing. This raises a key question, Nowotny said: With the ECB scheduled to exit the bond market in roughly six weeks time, “who will purchase the roughly €275 billion of government securities Italy is forecast to issue in 2019?”
With foreigners shedding a net €69 billion of Italian government bonds since May, when the right-wing League and anti-establishment 5-Star Movement took the reins of government, and Italian banks in no financial position to expand their already bloated holdings, it is indeed an important question (and one we’ve been asking for well over a year).
Posted in Currencies, Debt, Financial markets, Geopolitics, Governments, Investing, Money, Politics
Tagged ECB, EU, Italian debt, Italy
Closed borders may be incompatible with conventional libertarianism, but so too are welfare states. Open borders and a welfare state that rewards immigrants is a recipe for disaster. From Tom Luongo at tomluongo.me:
Immigration is a tricky subject for a lot of libertarians. If there is one issue that has caused more fights in libertarian circles it is the question of restricting a person’s right to movement.
But in a world of private property where does that right end? We know where it is in a world of public property. It doesn’t. I’m very Hoppean in my views on private property and the private production of defense. So, I have zero problem going toe to toe with the left-libertarians who refuse to divorce themselves from their principled hobby horses and push for open borders uber alles.
It’s stupid, counter-productive and, frankly, one of the main reasons why libertarians are thoroughly corrupted as a political force in the U.S., having been neutered by the Koch brothers fighting about irrelevancies.
Immigration issues are on the ballot today. The Soros-funded
invasion caravan is a thinly-veiled political stunt which is being used to fuel the unquenchable greed of globalists using Marxist arguments of envy to sow sympathy for those marching to take back what was supposedly stolen by evil white American Imperialists.
Posted in Business, Civil Liberties, Collapse, Debt, Economics, Economy, Governments, Immigration, Labor, Law, Politics
Tagged Italy, Warfare State, welfare state benefits
Remember how painful the Greek debt was, and how hard it was to resolve. Italy’s unfolding debt crisis will be many times larger and more difficult to resolve. From Don Quijones at wolfstreet.com:
A serious showdown is brewing in the Eurozone as Italy’s anti-establishment coalition government takes on the EU establishment in a struggle that could have major ramifications for Europe’s monetary union. The cause of the discord is the Italian government’s plan to expand Italy’s budget for 2019, in contravention of previous budget agreements with Brussels.
The government has set a public deficit target for next year of 2.4% of GDP, three times higher than the previous government’s pledge. It’s a big ask for a country that already boasts a debt-to-GDP ratio of 131%, the second highest in Europe behind Greece. To justify its ambitious “anti-poverty” spending plans, proposed tax cuts, and pension reforms, the government claims that Italy’s economic growth will outperform EU forecasts.
It’s hard to see how the EU won’t fracture if the true hand on the wheel, Angela Merkel, was to lose her position as Chancellor of Germany. From Tom Luongo at tomluongo.me:
The pieces have been moving into place for months now. German Chancellor Angela Merkel has seen her power within German political circles wane for more than a year. Italy’s opposition to the European Union’s budget rules is stiffening.
Bond yields are beginning to not just rise, but blow out uncontrollably.
The Fed keeps raising rates to arrest inflation not supported by increased wages.
Brexit talks are at a standstill.
Last week Merkel suffered what could easily be her most important political defeat over the past two years. She lost a parliamentary vote for her candidate in an internal vote of her Christian Democratic Union (CDU) party.