The conflict between the European Union and Italy is a full-blown financial war. Euro countries cannot print their own money and for that reason they cannot have an endless deficit. Countries within the eurozone have to live within their means or else, without the intervention of the ECB, they will go bankrupt. Nobody knows the consequences of an Italian default and debt restructuring, but it can lead to the end of the euro.

To make the euro sustainable, the European financial elites want the Italians to reduce their spending and turn a budget deficit into a budget surplus. However, due to the country’s shrinking population the Italian budget deficit — as we have argued many times – can only increase. The European commission rejects the Italian budget because Rome wants to increase its debt far beyond the limit allowed by the ECB. “This is the first Italian budget that the EU doesn’t like,” wrote Deputy Prime Minister Luigi Di Maio on Facebook. “No surprise: This is the first Italian budget written in Rome and not in Brussels!”Matteo Salvini added: “This (the rejection of the Italian budget plan by the EU) doesn’t change anything.”. “They’re not attacking a government but a people. These are things that will anger Italians even more,” he said.

The country has entered a demographic winterand sustainable economic growth is simply impossible, at least for the foreseeable future. As is the case with the whole of Europe, the Italy needs a plan to support an ageing and declining population. As if not aware of it, the Brussels-Frankfurt establishment only wants Italy to stick to their austerity program, i.e. decrease public spending and do away with the current Italian administration, which refuses to comply.

To force Prime Minister Luigi Di Maio and Matteo Salvini out of office, the European Union will go to any lengths to destroy the Italian banking sector the way they did it in Greece and Cyprus. In 2015 Greece shut down its banks, ordering them to stay closed for six days, and its central bank imposed restrictions to prevent money from fleeing out of the country. Continue reading →

This week in a CNBC interview Jeroen Dijsselbloem, the former Dutch minister of finance who served as the President of the Eurogroup, declared war on the Italian government. The European financial establishment is prepared to destroy the banking system and cause the Italian economy to implode. Like a Mafia boss, Dijsselbloem warned that Italy could run into trouble if it does not comply with Brussels’ directives. Of course, his statement was cloaked in diplomatic language:

“If the Italian crisis becomes a major crisis, it will mainly implode into the Italian economy … as opposed to spreading around Europe,” he said. “Because of the way that the Italian economy and the Italian banks are financed, it’s going to be an implosion rather than an explosion.”

For a man of this format it is unusual to publicly expose Italy as a state in a weak negotiating position or try to act as a scaremonger. We have never seen anything remotely like that, so we think that the utterance could only serve the purpose of giving the green light to the financial markets to orchestrate an attack on Italian bonds so as to drive Italian yield up.

“And there is gonna be a role for the markets, I mean if you look at what Italy needs in funding next year alone – we are talking of over 250 billion euros – refinancing part of the stock of their debt and also, of course, these new spending plans. So markets will really have to look at that very critically.”

Italy’s situation is ‘pretty worrisome’: Dijsselbloem from CNBC.

He reminded the Italian government that Italian banks are a sitting target for the European financial authorities. In order to destabilize a country’s economy, one must break its backbone i.e. banks.

“There will also have to be a role for the banking authority, banking supervisor to look what this does to the Italian banks. We have already seen their stock valuation going down” Mr Dijsselbloem said with a smile. Continue reading →

A few weeks ago, the United Kingdom woke up to the realization that its democratic process is vulnerable to the attacks by a foreign plutocrat seeking to overturn the result of the popular vote of British citizens via a second referendum on the European Union membership, or in case that was not possible, to overthrow government after government until the Hungarian-American oligarch got his way.

George Soros, replied by penning an article for the Daily Mail, in which he motivated his actions by “his love for Britain”, which somehow did not stop him from attacking the Bank of England in 1992, which cost British taxpayers billions. He simply knows better, and so demands the right to hijack the political process of a democratic country, despite not being a citizen, because he’s fighting against “mafia-states”. It speaks volumes about Soros’s concept of “Open Society” where he’d be free to run the political show of any country, in a borderless world, where any vote contrary to his would be made null and void. Continue reading →

Stratfor recently published a piece covering the imminent Italian elections and presenting its conclusions on the topic. The article, however, wrongfully presents a number of issues, which may lead prospective investors astray.

In the first paragraph introducing the populist candidates and parties running for the Italian parliament, the author, an alleged expert according to his own profile on anti-establishment movements states: “The right-wing Northern League, for example, has (…) proposed a referendum on Italy’s membership in the eurozone”. This isn’t true. The Northern League wants to leave the euro without going through the referendum because it thinks Italy would get battered during the political campaign over it. It was just a month ago when the party’s candidate for the position of Prime Minister, Matteo Salvini, called the referendum idea stupid.It is not the Northern League but the other “populist” movement, Movimento 5 Stelle, which opts for a referendum.

Continue reading →