The turmoil in the financial markets and the increase in the Italian bond yield are a prelude to the real crisis we expect to happen next year, or at the latest in 2020. The current Italian government will not change its plan to increase its budget deficit under pressure from the financial markets. Salvini is winning more and more support for his confrontation with the European Union. A part of the Italian establishment wants to regain control over its currency, thus spurning the ECB monetary and borders policy. Many prominent Italians such as Claudio Borghi, head of the Budget Committee for the Lower House and senior adviser to the Northern League (Salvini’s party), and Paolo Savona, European Affairs Minister, are waiting for the right opportunity to introduce the mini-BOT1 as a parallel currency. Brussels’ reckless mass-immigration policy has played into Salvini’s hands: he is enjoying popular support, as well as that of the military and security, which strengthens his position against the European Union. Italy’s powers that be are beginning to understand that if they lose sovereignty to the European Union, they will lose their raison d’être.
The ECB is highly likely to buy Italian bonds in order to prevent a further escalation of the yield of these bonds. The national economies in Europe will start to collapse, causing government spending in many European countries to go out of control, which will in turn cause the budget deficit and public debt to start growing again. It is only Germany that seems to be in control of, and to benefit from, the European project. Not for long, though. The economic and monetary rulings of Brussels will eventually put an end to the country’s relative prosperity. Its manufacturing base will be taken over by Xi Jingpin, the environmentalists who demand the imposition of various restrictions on the industry will make it all the easier for Vladimir Putin to become Germany’s gas tsar, and Recep Tayyip Erdoğan is well on the way to becoming the beloved president of large groups of “Germans”.
Gefira #27 The demise of the German factory base; the next black swan
The divide in American society reached a new low with the inappropriate behaviour accusations of Judge Kavanaugh when he was a teenager, i.e. forty years ago. The FBI has been burdened with an impossible task of investigating an insignificant event that happened during his high school years in 1980, with the Democrats, cheered by hysteric academics, performing a bizarre soap opera. While the war in Yemen continued, the North Korea crisis was nearly solved by President Trump, the war in Syria came to an end, and the ANC in South Africa turned itself into a mafia, murdering more than 90 opponents of its policy, the democrats were interested in one thing only: Judge Kavanaugh’s remote past. The democrats wanted to prevent Judge Kavanaugh from being
appointed, whatever the cost.