Mr. F.L.M. found this article over at Russia's online English language Sputnik website, and it's worth passing along as the eurozone continues to teeter; Italy it seems is increasingly considering an exit from the European Union. And you can't blame them, since Berlin, aka Mad Madame Merkel, and Darth Soros, seem intent on flooding Europe with more and more
barbarians refugees. But Italy, unlike Pope Francis, is having second thoughts about the whole thing:
The possibility of Italy's exit from the eurozone has bas been raised in the Italian Parliament, as politicians try to come up with ways to tackle Italy's spiraling public debt, which reached 132.6 percent of GDP in 2016.
In early July, Italian parliamentarians from the Five Star Movement held a seminar in the Chamber of Deputies to discuss Italy's economic situation. They discussed the eurozone's default mechanism, strategies to restructure sovereign debt, parallel payment systems as well as the possibility of leaving the eurozone.
Of course, the debate is focused only partially on what the real problem is; it's not the Eurozone (though it is part of the problem too), it is the whole social democracy philosophy that has prevailed in virtually every European country since the end of the Second World War: more and more government programs that eventually bankrupt the country. And even as this goes on, more and more social programs continue to be advocated. Once plugged into the European Union, however, one country's problems become everybody's problem, and more fiscally responsible nations (Germany), have to impose "austerity" on more fiscally irresponsible nations (Greece, Italy, Spain), and this needlessly fuels increasing tensions and old grievances. It's trading the irresponsibility of Rome, for the greater nuttiness of Brussels.
Fortunately, Italy hasn't entirely lost its senses, or sense of national culture and identity:
The debate signified the first time that the Italian Parliament discussed the "Italexit" option, a topic which had been "taboo" until recently, the Italian press reported.
"The countries of southern Europe would be a lot better off with a sovereign currency than with the euro," Friedrich said.
"These countries will never see shoots of recovery while they are in the eurozone and the interest rate limitations set by the European Central Bank (ECB). We wrote this as early as 2012 in our first book, 'Der groesste Raubzug der Geschichte,' (The Greatest Robbery in History). We see that the euro does not work. That is why I can only emphasize that Alberto Bagnai of the University of Pescara is right."
In March, economics professor Alberto Bagnai called for a controlled end to the euro, arguing, "No matter how much political capital is invested in it, the euro will fall."
"The most likely cause will be a collapse of the Italian banking system, which will take the German one with it. It is in the interest of any political power, certainly of the declining European leaders, and probably also of the US, to manage this event rather than passively await it," Bagnai wrote on his Goofynomics blog.
But I submit there's something much deeper lurking here, and it is the real problem with the whole "European Union" idea, for note the reference to the banking systems of Italy and Germany. When the European Union was actually cobbled together on the framework of the old Exchange Rate Mechanism, where other countries' currencies were pegged to the Deutschmark, the western economy was riding high on a bubble of derivatives, credit default swaps, and bundles of bundles of securities whose contents no one really knew. At the heart of it were the housing markets and mortgages. The EU and euro might have worked, if the boom had continued. But this consideration only exposes the flawed machinery and foundation on which the whole thing was based to begin with: the Exchange Rate Mechanism itself.
When that bubble burst in 2007-2008, European banks, and particularly German ones like Deutsche Bank and their closely-linked Italian counterparts, were left holding a lot of the bad paper. No amount of smoke-signaling and mirror-manipulation from the European Central Bank, the Bank of England, the Bundesbank, or the Federal Reserve have been able to hide this fact. China and Russia - and several American states - recognize this and are acting accordingly. And now some sanity is beginning to appear in Italy. Imagine, for a moment, if Italy were to break with the EU, and to pursue its own domestic and foreign economic policy: trade with Russia and China would, I would wager, blossom in a little over a fortnight, and with some careful fiscal policy and acual productivity, the Italian financial house might be put in order. Italy would not need to have the crisis "managed" by "declining European leaders" or the American idiocracy.
I said many months ago, to watch Italy carefully and closely, because the idea of an Italexit would inevitably be broached. And if enacted upon, it would quickly pull Spain, Greece, and Portugal - each facing similar crises - with it.
How can Italy deal with all this debt and restructure it? Who might step in with some real alternatives to "more of the same" from Berlin, Brussels, Paris, and Washington?
Three words: Russia and China.
See you on the flip side...