Tag Archives: Italy

All (Political) Roads Lead To Massively Higher Government Spending, by John Rubino

All of the revolutions, quasi-revolutions, and proposed revolutions out there are pushing for higher spending and less taxes. That’s problematic when the overthrown governments are deeply in debt. From John Rubino at dollarcollapse.com:

The past few years have seen more than the usual amount of political upheaval. But, interestingly, most regime changes have resulted in pretty much the same thing: Higher government spending and bigger deficits.

Apparently the only “reforms” today’s voters will accept – which is to say the only actions that don’t get a leader kicked out of office – involve spending rather than saving money.

Three recent examples:

The US
Republicans – the party of smaller government – gained control of the White House and Congress in 2016, and proceeded to take a meat ax to bloated entitlements, lowering the government’s share of the economy to levels not seen since the Reagan years.

Just kidding. They tried to eliminate the newest entitlement, Obamacare, but failed to produce even a coherent proposal. So instead they cut taxes, expanded the military and left everything else on autopilot. Now, nine years into a recovery with official unemployment below 4% — and with the small-government party in charge:

U.S. budget deficit approaches $1 trillion

(MarketWatch) – The Treasury Department says that adjusted for timing-related transactions, the deficit would have been $270 billion over the last two months compared to $250 billion during the same period the prior year, with tax revenue up by 1% but spending up by 4%.

The budget picture is deteriorating as the U.S. taxes individuals and companies less and spends more, mostly on defense and benefit payments to an aging population. Though a growing economy is softening the blow, it’s possible that the annual deficit will top $1 trillion this year.

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Italy, the EU, and the Fall of the Roman Empire, by Alastair Crooke

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’.

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Salvini Takes Control of Europe’s Future, by Tom Luongo

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.

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Take Heed Italy, Brussels Doesn’t Care One Whit About You, by Tom Luongo

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.

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QE Created Dangerous Financial Dependence, Italy Hooked, Withdrawal Next, ECB Warns, by Don Quijones

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).

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Mo’ Money, Mo’ Invasion, by Tom Luongo

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.

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Italy’s Debt Crisis Flares Up, Banks Get Hit, as Showdown with the EU Intensifies, by Don Quijones

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.

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Merkel’s End Could Spark EU Breakdown, by Tom Luongo

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.

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Naked Emperors Don’t Get Much Respect, by Robert Gore

What happens when most of your military infrastructure is suddenly obsolete?

The emperor was the last to realize he was naked. This is not unusual, emperors are the last to find out anything. Who has the fortitude to tell them the truth, especially an upsetting truth? And so it is with the US’s empire, the existence of which most of its citizens, media organs, and officials are unaware or won’t acknowledge. The truth is, the American empire, acknowledged or not, is over. It will be years before that’s accepted by the governing class. They’ll never officially inform their subjects, who are stuck with the tab for its immensely wasteful spending.

Empires are built on military strength. The American empire was no exception. Many Americans still think the US military enjoys the dominance it had back in 1946, a notion Vladimir Putin buried March 1. On that date he announced new weaponry which will render our naval surface fleet, ground forces, worldwide bases, and antiballistic systems obsolete (see here, here, and here). The US military leadership has grudgingly acknowledged many of Putin’s claims.

The unmistakable conclusion: most US military spending is the welfare state with epaulets. It pays for weapons, bases, and personnel whose uselessness would be revealed within half an hour after a non-nuclear war with Russia began. We have no conventional defenses against Russia’s new weaponry.

It’s cold comfort that US land installation, submarine, and airborne nuclear deterrents are still relevant. If Russia or anyone else launched a conventional or nuclear attack against us, we can annihilate the aggressor. The destruction we bore would be matched in kind, but the planet might be rendered uninhabitable.

Fortunately, it can be said with 99 percent certainty that Russia has no desire to launch a war, nuclear or conventional, against the US. That nation wants what many nations and US citizens want: for the US government to leave it alone. Although spending only 10 percent of what the US does on its military and intelligence, Russia now has the muscle to back it up. The Chinese are right behind.

The story doesn’t say what happened to the emperor and his courtiers after the lad revealed his nudity, but we can assume the emperor’s smarter toadies started heading for the exits. Why stay on a vessel that can’t navigate the shoals of reality?

Welfare states—giving money to people who haven’t earned it—so inevitably lead to corruption that they might as well be synonyms. For years the US has bought compliance with its dictates within its confederated empire, picking up the lion’s share of the defense tab. Nations hosting US military bases welcome the jobs and spending just like congressional districts back home.

Even before Putin’s March 1 announcement, asking how non-nuclear bases, domestic and abroad, actually made anyone in the US safer occasioned awkward silence. Russia’s military spending and economy are dwarfed by the US’s and its EU protectorate’s; a Russian invasion of Europe, even with its new weapons, would be suicidal. The chances of Russia or any other nation invading the US are even more remote. Russia has been invaded far more often than it has invaded, and other than securing its own neighborhood, exhibits no desire to launch offensive warfare. Putin stressed the new weapons’ role defensive role.

After the announcement, US bases will be targets, the personnel they house hostages. That includes the mobile bases known as the US surface fleet, from aircraft carriers on down. They have no defense against the Kinzhal (Dagger) hypersonic missile, aircraft-launched with a range of 2000 kilometers, capable of reaching Mach 10.

Defending on sea or land against the Russians’ new nuclear powered cruise missiles—which have essentially unlimited range—is possible but problematic, especially if they’re launched in a swarm. Location has become irrelevant. It doesn’t matter if the US outpost is in Germany, Texas, or floating in the middle of the Pacific, they’re all vulnerable.

Poland’s recent proposal for the US to establish a military base there, at Poland’s expense, possibly to be named Fort Trump, is a strong contender for the year’s, perhaps the decade’s, most insane idea. Fort Courage, from the zany F Troop TV show, would be a more appropriate name. It’s one thing to hop on the US military spending gravy train, that’s just venal and corrupt. To install a useless military base and pay for it as well is incalculably stupid. The goal of politics is to get someone else to pay for your stupid ideas, but perhaps they do politics differently in Poland.

If you’re running one of the US’s protectorates, why should you accept the empire’s dictates when it can no longer defend your country? The question has added piquancy in Europe. Setting aside Russia’s new weapons, how would a country that’s botched military engagements in second string nations like Vietnam, Iraq, Afghanistan, and Syria defend Europe short of nuclear war? If the answer is that it can’t, where does US leverage come from? The US demands more useless defense spending and presses Europe to curtail or cease profitable trade relations with Russia and Iran, both of which pose a minimal threat to Europe’s safety. Why should Europe comply?

President Trump has questioned the US subsidization of Europe’s defense. How much effort would the US make to defend Macedonia or Latvia? If the answer is not much, or if it can’t actually protect those or any other European country, then subsidies are the only “glue” for the American Empire, European division. It’s unclear if Trump realizes he can’t have his cake and eat it too. He may be happy to see Europe come unglued. Bankruptcy looms; the US has to start cutting spending somewhere.

It should come as no surprise that some countries aren’t toeing the US line, faithfully parroted by the EU. Turkey, straddling Europe and Asia, is edging toward Russia and China, and the goodies promised by their Belt and Road Initiative.

Hungary’s Prime Minister Victor Orban and Italy’s Interior Minister Matteo Salvini, head of the League party that shares power there, are seeking better relations with Russia, notwithstanding the US and Europe’s long running demonization of Vladimir Putin. Those two are also challenging received wisdom on the desirability of open borders and unlimited immigration. They and other nationalist leaders are finding an increasingly receptive audience among Europe’s voters.

The two Koreas are also writing their own script, one that diverges from the one the US has written for them since the end of the Korean War in 1953. Among those who favor the status quo, the line is that impoverished albeit nuclear-armed North Korea poses an offensive threat to South Korea, Japan, and the US. Kim Jong Un is singing a beguiling song of denuclearization, rapprochement, trade, and peace, but he’s not to be trusted. Only if he agrees beforehand to the complete subjugation of his country can negotiations proceed.

South Korean President Moon Jae-in has other ideas. The people of both Koreas want reconciliation and an end to the war (there’s an armistice but no official peace). Moon appears willing to entertain the possibility that Kim would rather bring his country into the 21st century than launch nuclear strikes. The impetus for negotiations has come from these two leaders and Trump has jumped on the bandwagon, much to the consternation of a motley collection of swamp denizens who profit from current arrangements. Peace may come in spite of their efforts to prevent it.

As the US government continues to spend money for weapons, bases, and personnel our putative enemy can obliterate, defend countries that are under no threat, and intervene in conflicts that promise only interminable stalemate and lost blood and treasure, the question presents itself: are those running the empire and its satrapies stupid, rapaciously corrupt, evil, or all of the above? We’ll take the obvious: all of the above.

Those who have placed their safety in the hands of the US’s would-be emperors can no longer afford to ignore the emperors’ nudity…and insanity. The empire is fraying at the edges and it won’t be long before fraying becomes unraveling. Nobody respects a naked emperor, certainly not one who doesn’t even realize he’s naked.

You Should Be Laughing At Them!

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Italy and Hungary Create ‘Anti-Immigration Axis’ by Soeren Kern

There is a growing pan-European anti-immigration movement, and disparate political actors are finding common cause. From Soeren Kern at gatestoneinstitute.org:

  • “We are close to a historic turning point at the continental level. I am astonished at the stupor of a political left that now exists only to challenge others and believes that Milan should not host the president of a European country, as if the left has the authority to decide who has the right to speak and who does not — and then they wonder why no one votes for them anymore.” — Italian Interior Minister Matteo Salvini.
  • “This is the first of a long series of meetings to change destinies, not only of Italy and of Hungary, but of the whole European continent.” — Italian Interior Minister Matteo Salvini.
  • “We need a new European Commission that is committed to the defense of Europe’s borders. We need a Commission after the European elections that does not punish those countries — like Hungary — that protect their borders.” — Hungarian Prime Minister Viktor Orbán.

Hungarian Prime Minister Viktor Orbán and Italian Interior Minister Matteo Salvini have pledged to create an “anti-immigration axis” aimed at countering the pro-migration policies of the European Union.

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