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On Politics, Italian and American Style

Bruce Krasting's picture




 

An interesting article from WaPo about a rising political star in Italy. (Link) Some details:

 

 

Beppe Grillo is a well know TV personality/comedian in Italy. At age 64 he ran for political office in Parma, and won. He has been doing a lot of talking since, and his philosophies have become very popular. His message is Italian nationalism, an end to the link with the Euro, he has even advocating defaulting on Italy's debt. From the WaPo article:

 

Four months after his Five Star Movement swept into government here in a surprise victory that sent his national profile soaring, he stood in a town square and delivered a breathless tirade against “the forces” seeking to destroy Italian society.

 

He called for a referendum on the euro and said Rome should follow in the footsteps of Argentina and Ecuador by suspending payments on the national debt.

 

In the country that could make or break the future of the euro with its next election, he described Germany and France as European paymasters who would bleed Italy dry.

 

“He is a thermometer of Italy’s political temperature, and the success of a demagogue like him would send a dangerous message to our allies in Europe that credibility and sacrifice are no longer on Italy’s agenda.”

 

Recent surveys suggest that almost one in five Italians now back it, placing his movement only single digits behind the nation’s two leading parties in popularity.

 

I have no real understanding of Italian politics, but I think there is an important message in Grillo's meteoric rise in popularity. My conclusion is that Mario Draghi’s effort to save the EU (and the Euro) is doomed to failure.

 

We have a bizarre status quo today, there is calm in the Euro bond markets. The stability is driven by the belief that Spain will soon accept a bailout (and all of the very bad things that this implies). And when Spain does get down on its knees and begs, the ECB will quickly act, and begin to buy unlimited amounts of dodgy Spanish paper. The problem is that Spain is very reluctant to ask for that ECB bailout.

 

 

We are in financial fairyland today. It won’t last. In the not too distant future the markets will push Spain to the edge, and the country will be forced to accept the ECB/IMF terms. Very shortly thereafter, the pressure will grow for Italy to accept the same terms as Spain. And that gets us back to Beppe Grillo.

 

When these events unfold in Italy, the "Italy First" message now being sent by Grillo will rise higher and higher. It’s possible that Spain will be forced to accept the strict conditionality of an ECB/IMF bailout, but there is no way that Italy will. The Italian people will simply not accept their country becoming a (bigger) serfdom of Germany.

 

Mario Draghi knows what the political mood in Italy is. He is keenly aware of the rise in popularity of Grillo, and his message. Mario also understands what Grillo could mean to his efforts to put his home country into economic jail.

 

Draghi has always spoken with great confidence. He has used words like “unlimited” and “forever”. But he also reads his hometown newspapers. He has to know that he can’t carry off his plan. The economics of his bailout might work, but the political side of the equation is going to fail. I’m sure Draghi is aware of all this; that means he is one hell of a bluffer.

 

++

 

Votes Bought and Paid For

 

The Administration sneaked out a bit of sleaze over the weekend. The White House changed the rules on the WARN act for workers involved with military contracts. Some details:

 

The Worker Adjustment and Retraining Notification Act (WARN), requires that military contractors who rely on government contracts provide advance notice to the workers who will be laid off as a result of government cutbacks.

 

The Fiscal Cliff (sequestration) requires that the government cutback on defense spending. This means that some programs are cut, workers would get laid off and WARN notices would be required by law.

 

But the WH blew the WARN Act away with this notice:

 

 

The Hill (Link) had this to say:

 

Lockheed Martin and other defense contractors backed down from issuing layoff notices to employees on Monday after the Obama administration promised to pick up the tab for severance costs resulting from sequestration.

 

The Administration offered to “pick up the tab”? So that the WARN notices would not be sent? How can Obama promise that? And why would he do this? The Hill explains:

 

The news provided welcome relief for President Obama, who faced the prospect of mass layoff notices in battleground states just days before the election, and outraged Republicans, who accused the administration of bending the law to hide job losses from the public.

 

One of those “outraged Republicans” was Sen. Lindsey Graham (R-S.C.), he called the administration’s actions "illegal". He said:

 

“I will do everything in my power to make sure not one taxpayer dollar is spent reimbursing companies for failure to comply with WARN Act.”

 

I suspect that Senator Graham is right; what the WH did was illegal. But who cares about laws? After all, there is an election weeks away. The real issue here is the state of Virginia, and how it will vote on November 6.

 

Thousands of defense-industry employees live in Virginia’s northern suburbs, and the cuts from sequestration could hit the state especially hard.

 

 

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Wed, 10/03/2012 - 08:37 | 2851337 Widowmaker
Widowmaker's picture

"One of those “outraged Republicans” was Sen. Lindsey Graham (R-S.C.), he called the administration’s actions "illegal"."

No law = fraud money has no value.

Fraud money = rule of law has no value.

Wed, 10/03/2012 - 01:59 | 2850959 Count de Money
Count de Money's picture

The Italian people will simply not accept their country becoming a (bigger) serfdom of Germany.

I think it's the other way around. The Germans are becoming the serfs of the Italians. And Greeks. And Spaniards. And...

Wed, 10/03/2012 - 05:39 | 2851122 falak pema
falak pema's picture

this sounds like a vaudeville comedy :

German beer merchant : I'm your serf! I will have to work till age 90 to pay for your debts. I won't have that!

Italian pizza owner : Basta! My pasta tells me it is Italiana 100%! So why should I sell it in Euros. I will sell it in Liraaaaas! I am not YOUR pizza take-away, you German schmuck!

German beer merchant : You can keep your pizzas. I'll sell my beer with Turkish DOner kebabs! And, I say Deutschmark uber-alles!

Italian Pizza merchant : Ok, don't bother to come for your holidays to Tuscany, we only serve pizzas and spaghetti; al dente!  You fat, toothless beer barrel! 

German beer merchant : Ach Scheizer! I will swim in the North sea, its better for my health. Vee stay in Germany this summer! 

Wed, 10/03/2012 - 00:37 | 2850913 Bear
Bear's picture

I'm all for the Fall and Rise of the Roman Empire

 

Tue, 10/02/2012 - 23:54 | 2850842 guidoamm
guidoamm's picture

I am italian but living overseas. I have briefly looked into beppe grillo's campaign some months back and quickly turned it off...

Amongst other arithmetically challenged claims, Grillo advocates a state salary for every man, woman and child in the land. He calls it something like a "nationality salary" or some such...

Since we know where the road paved with good intentions ends, what remains to be seen is whether Grillo truly is well intentioned or whether he is just another Enda Kenny.

Tue, 10/02/2012 - 22:03 | 2850558 tip e. canoe
tip e. canoe's picture

correction : Grillo himself neither ran nor won political office.  from the wapo link:

After winning a series of minor victories in local elections, Grillo’s movement harnessed the economic crisis as an issue, scoring its biggest victory in May, when its candidate won the mayoral seat in Parma, a city of about 413,000. Victory came despite the party’s decision to reject state funding for political parties, instead operating the mayoral race on a shoestring budget of $7,500 raised through T-shirt and book sales and the aid of Grillo’s personal fortune.

Qualms have arisen since then. With the movement as shocked as anyone by its success, it took the new mayor, former computer technician Federico Pizzarotti, about 40 days to pull together a working cabinet. Though pundits in the city say it is too early to tell whether the party can deliver on its promises — including a pledge to stop a new incinerator from opening — it is also too early to determine whether it will fail.

Tue, 10/02/2012 - 21:18 | 2850461 mvsjcl
mvsjcl's picture

"The economics of his bailout might work..."

You a comedian too?

Tue, 10/02/2012 - 20:48 | 2850358 max2205
max2205's picture

There goes the DC housing (hosing) market

Italian Bluto. We didn't give up when the Germans tilted Pizza.....

Tue, 10/02/2012 - 20:45 | 2850350 Hedgetard55
Hedgetard55's picture

Fuck Choomboi.

Tue, 10/02/2012 - 19:11 | 2850088 gratefultraveller
gratefultraveller's picture

Summarized from http://www.cavalloditroia.org/2012/05/chi-ce-dietro-beppo-grillo.html (who is behind Beppe Grillo?)

"Editor of Beppe Grillo is CASALEGGIO ASSOCIATI, members of which are high-ranked members of the ASPEN INSTITUTE, US think tank, members of which are politicians from both sides of the spectrum of italian politics (http://www.aspeninstitute.it/istituto/comunita-aspen/comitato-esecutivo, http://www.aspeninstitute.it/istituto/comunita-aspen/organi-direttivi).

Plenty of "Old Boys" in those lists, ex-members of previous italian governments.

The Aspen Institute is financed by the CARNEGIE CORPORATION, THE ROCKFELLER BROTHERS FUND and the FORD FOUNDATION"

 

Tue, 10/02/2012 - 20:41 | 2850325 Bear
Bear's picture

Pretty easy when you back all the horses in the race. But then again globally, who do these guys not back? So it's even easier when you own all the horses in the barn.

Tue, 10/02/2012 - 18:59 | 2850045 nmewn
nmewn's picture

The Administration offered to “pick up the tab”? So that the WARN notices would not be sent? How can Obama promise that? And why would he do this? The Hill explains:

 

The news provided welcome relief for President Obama, who faced the prospect of mass layoff notices in battleground states just days before the election, and outraged Republicans, who accused the administration of bending the law to hide job losses from the public.

If there was ever any suspicion among the Non-Kool Aid drinking public, this should confirm it.

We are dealing with a man, nay, an entire branch of government, the executive, where law simply doesn't matter. The WARN Act was passed by a democrat Congress (its the law!) for the expressed purpose of alerting employees and their families of potential job & benefit loss.

To give them time to arrange their affairs and plan contingencies.

Whether its Fast & Furious or WARN or illegals or separation of church & state or spiking DC charter schools or droning US citizens...he's clearly a menace to society at large.

Wed, 10/03/2012 - 02:33 | 2851007 Count de Money
Count de Money's picture

I was working in the defense industry when the WARN act was passed, so I know a bit about it. The upshot was that if you are a federal contractor and you were planning to layoff more than a certain number of people (50 or 100, I don't remember), you had to give 60 days notice. If you failed to give notice, you could be sued in court for 60 days pay plus legal costs.

What the administration is saying is that if you're sued for failure to give notice, the Dept of Labor (i.e. the taxpayers) will indemnify you. First of all, why would any company believe that? They could easily turn around after the election and say we won't indemnify you. I could see a new memo after the election saying "You fucked up. You believed us."

Second, the administration is saying "You know this thing called the United States Code (i.e. federal law)? Just ignore it." But, then again, this administration has a track record for ignoring laws it finds inconvenient (e.g. War Powers Act, immigration laws, etc.).

US Constitution, Article II, Section 1:

Before he enter on the Execution of his Office, he shall take the following Oath or Affirmation:—"I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States except where it screws up my chances of getting re-elected."

Living constitution, indeed.


Tue, 10/02/2012 - 21:18 | 2850458 RockyRacoon
RockyRacoon's picture

You're surprised that he used an executive order in the face of enacted law?   Like Congress being the only folks who can Constitutionally approve a war?!  The Executive Order is a mechanism that has been abused for a long time, under many administrations.   Truly shocking that there is politics going on in an election year!  Don't be a patsy.

Tue, 10/02/2012 - 22:29 | 2850640 nmewn
nmewn's picture

Patsy?

Really Rocky, this has been going on ever since he got in there. All the way from day one...

“Guantanamo will be closed no later than one year from now.”

“Washington is broken. My whole campaign has been premised from the start on the idea that we have to fundamentally change how Washington works.”

Sure bud, keep on drinkin the globular unicorn kool aid and good luck with that. Just don't expect any Heimlich's from me, you already severed that possibilty.

Wed, 10/03/2012 - 00:35 | 2850912 RockyRacoon
RockyRacoon's picture

Blaming any incumbent for the current state of affairs at any time in history only demonstrates a taste for the red/blue kool-aid.

Drink up.

Wed, 10/03/2012 - 06:40 | 2851159 nmewn
nmewn's picture

So accountability and responsibility for the current state of affairs are not to be judged anymore? No ones responsible for anything?

"When Mexican authorities took Juarez drug cartel carnage king Jose Antonio Acosta Hernandez — better known as “El Diego” — into custody, he had weapons from Operation Fast and Furious on his person, the English-language transcript of the Spanish-language television network Univision’s special investigation into the scandal shows.

“According to investigations, ‘El Diego’ forms the link between this massacre and Fast and Furious,” an anchor read on air in Spanish Sunday evening, referring to two different mass killings drug cartel operatives used Fast and Furious weapons to conduct as Univision reported."

http://dailycaller.com/2012/10/01/univision-juarez-drug-cartel-leader-el-diego-was-captured-with-fast-and-furious-weapons/#ixzz28ELKdq8y

Maybe the Mexicans should just let El Diego go because to blame him is being "currently" judgemental for his past actions.

Well, how about this then?....

"Nineteen of 20 cabinet-level agencies disobeyed the law requiring the disclosure of public information: The cost of travel by top officials. In all, just eight of the 57 federal agencies met Bloomberg’s request for those documents within the 20-day window required by the Act."

http://www.bloomberg.com/news/2012-09-28/obama-cabinet-flunks-disclosure-test-with-19-in-20-ignoring-law.html

Whether your prefer red or blue kool aid...right & wrong still transcends that current meme Rocky.

Tue, 10/02/2012 - 20:29 | 2850286 DeadFred
DeadFred's picture

He's still the best Kenyan president we've ever had!

Tue, 10/02/2012 - 18:53 | 2850030 Freegolder
Freegolder's picture

Hey Bruce.

Politicians come and go, central bankers come and go, currencies come and go.

I'll bet my shirt that the Euro outlasts the dollar/yen/sterling, precisely because it has an independent central banks that will not bend to the whims of politicians.

All this talk of countries leaving the Euro is frankly pie-in-the-sky. There is no mechanism for it to happen, it is irreversible. Practically it would take a country years to prepare to leave the Euro, and the costs of such preparations....who will pay them when that country is about to default in its debts and devalue. Repeat after me...IT AIN'T GONNA HAPPEN!

In reality the Euro is as solid as the half a trillion of marked to market gold sat in the Eurosystems' reserves, the Euro rejpices as the gold price rises, whilst the other fiats groan.

We will all see this reach a resolution in the next few years, but one can be certain the Euro is a very well managed currency, a young currency, set free from the nation state and from gold.

All that remains is for the other shitty currencies to collapse in a heap, courtesy of QE to infinity.

Tue, 10/02/2012 - 21:34 | 2850485 akak
akak's picture

Verily, Freegolder, your absolute faith in the prophet FOFOA (a blizzard of fiat notes be upon him) is touching, but probably rather misguided.

As for the euro, and its current membership list, being "irreversible" --- well, let's just say that you are clearly not a student of history, are you?  Phrases such as "Roma Eterna" and "1000 Year Reich" come to mind as well.

To be honest, it is at least partially due to the quasi-religious, cult-like nature of comments such as yours above that I find myself skeptical and suspicious of the whole Church of Freegold.

 

Tue, 10/02/2012 - 19:41 | 2850159 otto skorzeny
otto skorzeny's picture

this reminds me of the "housing prices have never declined in the US" statement of absolutism.

Tue, 10/02/2012 - 17:50 | 2849859 NoTTD
NoTTD's picture

Don't put too much stock in Grillo and the theoretical Italian backbone.  This is just the latest opposition party to "stand up" to Europe.  Each one has folded at some point, including after they got into power.  Let's take Ireland, for example.  Fine Gael had not been in power for decades and managed to displace the forever ruling party (Fianna Fail) on pledges to reject Europe's terms in conjunction with Labour.  Immediately on getting into power, they reaffrirmed the deal and sold out everyone who had voted for them.  Turns out, all they really wanted was to be in charge.  Look for the same from every other "radical" in these vassel states of Europe.

Tue, 10/02/2012 - 21:00 | 2850399 disabledvet
disabledvet's picture

Actually we're talking the wrong Mario here. It should be MONTI...not Draghi. And "there's a reason the Prime Minister is in Brussels"...not Switzerland, not Frankfort, not Paris. Everyone knows how this bailout regime is functioning...and the answer of course is "it's not." At some point the political classes will have the courage to admit the failure the bulk of Europe is going through...and then actually change. Not even Greece has done that...and they've been absolutely CRUSHED. Super Mario Brother 2 is well aware that this can happen in Italy as well. Hence he has not taken "the Goldmanite approach" at all. It is for Italy however. This "growth and stability pact" has been a total crock of shit and he know's it. Germany is very quickly emerging as the dominant power on the Continent...amazingly!...all without firing a shot no less...which is a good lesson in my book.

Tue, 10/02/2012 - 17:32 | 2849806 Canucklehead
Canucklehead's picture

Mankind progresses based on the God given skill of being able to select the lesser of two evils.  The Arab Spring is a recent example of that collective ability.  The visible (accepted) corruption within the US government/banking clique is another example. 

Beppe will move the ball down the field, but is not expected to score.

No one expects Beppe will be able to deliver an alternative.  He can frame the question and raise it.  The population have to decide what level of individual/collective corruption they are satisfied with.

The importance of the internet is to keep moving the goal posts so that what was an acceptable level of corruption yesterday is no longer acceptable.

Tue, 10/02/2012 - 20:44 | 2850343 KK Tipton
KK Tipton's picture

Well, you know....

 

"He can frame the question and raise it."

"Immediately on getting into power, they reaffrirmed the deal and sold out everyone who had voted for them."

 

Two line summary for ya. Seems to be the "new" tactic.

Tue, 10/02/2012 - 17:18 | 2849764 Rainman
Rainman's picture

Two very interesting pieces, Bruce.

Here's something in today's Washington Times regarding some obscure attempt by the regime to obstruct the Nov. 6 vote of our military servicemen/women. A Rassmussen poll gives Romney a 24-point edge over Obama with the military. This really pissed me off.

 http://www.washingtontimes.com/news/2012/oct/2/obama-bogging-down-the-military-vote/

Tue, 10/02/2012 - 17:28 | 2849790 otto skorzeny
otto skorzeny's picture

I guess the geniuses that voluntarily enrolled in the US military want to get the Zionist Romney elected so they can get killed in Iran instead of having the Israelis do their own dirty work. I have no sympathy for anyone that volunteers to fight for NWO banking/corporate goals.

Tue, 10/02/2012 - 17:17 | 2849759 otto skorzeny
otto skorzeny's picture

actually I think that guy above is Dallas Cowboys Def Coordinator Rob Ryan yelling at the refs during last night's Bears a**kicking of the 'Boys.

Tue, 10/02/2012 - 16:50 | 2849678 Joe Davola
Joe Davola's picture

First rule of bailouts - only get on your knees once the other party's on their elbows.

Tue, 10/02/2012 - 16:25 | 2849587 ebworthen
ebworthen's picture

Of course Italy will default, and Greece and Spain.

Why would they not?  Why would they stay chained to banker serfdom?

Why, after the bailouts and QE(X) rewarding malfeasant banks and corporations should anyone honor their obligations?

If they don't have to, why should I or anyone else?

---------------------------------------------------------------------

Barrack Hussein Obama = buying votes with taxpayer money, but what else is new in the Kleptoligarchy of the U.S.S.A.?

The election is meaningless, the banks are our government until we tear down the status quo.

Tue, 10/02/2012 - 16:01 | 2849522 bobbydelgreco
bobbydelgreco's picture

the end begins in italy

Tue, 10/02/2012 - 15:57 | 2849499 bank guy in Brussels
bank guy in Brussels's picture

Ambrose Evans-Pritchard (AEP) in the UK Telegraph was on this story with Beppe Grillo and Berlusconi months ago

Bruce, you can really enhance your perspective on the euro-zone  by keeping up with his columns

In fact, AEP has been quite covering the EU much better than ZeroHedge recently, much to my astonishment

Long ago, AEP laid out the case that really Italy should leave the euro, and there is very little reason for them not to do it

Italy would have the smoothest sailing after leaving the euro and the best rationale. They are a strong export economy, they still sell much of the stuff most of the world wants to buy, food, shoes, clothing accessories; they have quite low debt aside from public debt; Italians are actually richer than Germans in net worth after debt (though Germans have higher income).

In some ways Italy's only major economic problem is the euro. The high costs from not being able to print their own money is really the major thing preventing Italy from being a 'Germany' at the present time

Berlusconi practically had Italy in primary surplus when the EU took that putsch against him. Berlusconi might shortly ride back into power in Italy on an anti-EU platform, and be able to instantly have his revenge.

(There is of course that other big issue, as to whenever anyone leaves the euro-zone, it is going to cause a global banking collapse due to contagion, derivatives daisy-chain breakage etc. ... but that's a separate story)

From reading Evans-Pritchard I have long thought Italy is the candidate to leave the euro first

Here is the page to keep up with AEP's columns, there are both his main articles and his blog posts, some of the best financial - macro reading out there

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/

Tue, 10/02/2012 - 20:47 | 2850341 steve from virginia
steve from virginia's picture

 

Italy's biggest problem is it needs hard currency to import the one-and-a-half million-plus barrels of crude oil it wastes every single day.

 

Italy cannot sell enough junk to 'cover the tab' so it borrows: the loans are evidence that Italian consumption/waste cannot pay for itself. If it could, it would. (It never does.)

 

European countries all require endogenous credit, the continent is subject to a credit embargo.

 

Italy's debts, banking system and dysfunctional politics are really irrelevant. It has been bankrupted by its multi-decade extraction and consumption of capital. As a result it stands in line behind Spain, France, Portugal and Eire. Greece is already in the dumpster, there is nothing left for this hapless country but to become a failed state. Eventually all the European countries will become failed states (they are already politically failed states). This is because all of Europe -- except Norway and Denmark -- are energy debtors on the way to being energy insolvents.

 

Included in this is judgement is the UK. Once gone, there is no coming back. Capital depletion is permanent as in "not ever again in 20 million years". Not useful is our obsession with 'next quarter'.

 

http://www.economic-undertow.com/2011/06/27/dead-money/

 

 

 

Tue, 10/02/2012 - 17:17 | 2849761 Bruce Krasting
Bruce Krasting's picture

I do read AEP. But I missed his article on Beppe The first I was aware of him was the WaPo article.

You would not be reading this were it not for AEP. Way back in 2010 I wrote an article called, "Fed Economist: Bloggers are stupid". A day or two later AEP wrote an article, "Time to shut down the Federal Reserve". AEP made reference to my article with:

 

I am grateful to Bruce Krasting's blog for bringing this stinging rebuke to my attention.

 

This got me some visibility at an important time in my writing effort.
AEP opened a few doors for me, and I have been writing ever since. I
think AEP is a great writer, and I'm appreciative of the boost he gave
me.

b

Link to AEP piece I refer to:

http://silverbearcafe.com/private/06.10/shutdown.html


 

Tue, 10/02/2012 - 18:09 | 2849919 Ghordius
Ghordius's picture

AEP sees everywhere a reason to write something against the EUR. The Telegraph has written "Death to the EZ" on it's flags. Even when their reasoning is contradictory. It's the FAITH they are accusing all "Europhiles" of. Take a grain of salt with AEP.

Tue, 10/02/2012 - 22:05 | 2850562 i-dog
i-dog's picture

You are too "one-eyed" on the EUR, Ghordie. Both the EUR and the EU have serious and unsustainable structural problems that "cheering for your team" alone won't fix. You're too emotionally involved in "the experiment". ;-)

The Central Planning paradigm (as exemplified by the EU/EZ, but soon to be attempted globally) is doomed to failure, even though those who are engineering it think they have now mustered enough force (via the ZATO military machine) to be able to enforce it worldwide. They'll fail (eventually) precisely because humans, like other animals, do not like being caged and are extremely resourceful at defeating attempts to cage them.

Fuck the globalists!!

Wed, 10/03/2012 - 03:00 | 2851034 Ghordius
Ghordius's picture

Just another thing: if Catalonia or Scotland get their independence from Spain and the UK, do you think they would like to leave the EU (or the EZ)? I would not be astonished at all if an independent Scotland would join the EUR club.

Wed, 10/03/2012 - 02:58 | 2851033 Ghordius
Ghordius's picture

One eyed because with the other eye I look at gold. Perhaps I should change my avatar to reflect this, but I kind of enjoy the flak I get for being such an obvious Advocatus Diaboli.

Don't misunderstand me, a fiat currency is IMHO still an instrument of (hot or cold) war. Nevertheless, what the British Press writes about the EU and the EZ is far more emotionally charged - for specific British reasons - to anything I could come with or read on the Continent.

Was just reading Gideon Rachman on the FT: "There are top officials within the EU who seem genuinely to believe that the Financial Times is part of an "Anglo-Saxon" conspiracy to destroy the single currency. (Not true, in case you were wondering)". LOL, what a gem...

I'd say it's "emotionally charged" on both sides of the Channel. I'd also say on the continental side there is a political cohesion that the other side simply does not want. And this goes back since centuries - including when Philip II was becoming master of the world and was going to marry Elizabeth I - as agreed per treaty between the Austrian-German-Spanish-Dutch-Portugiese empires and England.

I still maintain that the quite-new US-word globalist is being used because the word imperialist is not palatable.

Wed, 10/03/2012 - 06:22 | 2851146 falak pema
falak pema's picture

Its morbidly fascinating to see the mayhem of PAx Americana dystopia unfurl on first world : The race to bottom in currency war with China, Yen and euro,  and the Euro strain tearing assunder Club MEd from Teuton EUrope. France is swing country. Will it stay on the Euro solid course in austerity?

I think AEP is right, Hollande is cautiously advancing on the Mitterandian slope. But if the markets make France the new bogey man he will have to ask himself if its not better to stop the rot. Money time will be 2013 chimes.

Too many balls in the air. Nov 6 is first deadline. Then the tough work in Europe will focus as a consequence of US decisions on their fiscal wall.

2013 is make or break for Euro solidarity. Merkel comes up for reelection and Hollande will hold a trump card to negotiate with her. If the markets turn of France in 2013 he may have no choice.

The call will be his. France decides if and when the Euro cookie crumbles; and Obama in place will decide the pace of PAx American unwind in asset deleveraging or conversely in ramp up in ME/S China Armageddon.

Many balls up in the air; these are tipping times. 

Wed, 10/03/2012 - 06:38 | 2851155 Ghordius
Ghordius's picture

I fully agree with a geographic and diplomatic fact: France is the linchpin of all Continental politics

and France rediscovers itself on the Mitterrandian slope, yes. which might lead to bank nationalizations, in a pinch

but the German reelections are fought over by parties that are all moderately europhile

remember the Dutch elections a short while ago? where are the protest parties now?

and I'm not putting much faith in the US changing it's course, fiscal wall or not. As Churchill said: "I trust the Americans to do the right thing - after they have tried out all the other options" (careful, from memory)

Wed, 10/03/2012 - 06:30 | 2851153 Ghordius
Ghordius's picture

note, I'm not saying AEP is wrong a priori. I'm just noticing that the Telegraph caters to a certain public taste for "the Eur-stuff must die!" that is quite typically British. And that they happily contradict themselves if this can be used to advance what I can only call a bias.

Tue, 10/02/2012 - 16:08 | 2849539 NotApplicable
NotApplicable's picture

Maybe AEP is "better" than ZH at parroting the script, ultimately providing a disservice?

Meanwhile, likely the best strategy is to ignore the horse-race analysis of abstract entities, and focus on the tangible individuals who speak in their name, always asking why them, why there, and why now, in light of "the big picture."

Besides, there are NO real solutions to this problem short of default, which will never be allowed.

Just sayin'.

Tue, 10/02/2012 - 15:31 | 2849373 Cangaroo.TNT
Cangaroo.TNT's picture

Bruce,

Mish has been talking about this for quite a while now.  He has said repeatedly that eventually there will come a day when a politician will say "No" to the troika, get elected, and then it's game over for the Euro and EU as it is presently constituted.  While some the proposed "solutions" may theoretically work in isolation, none of them will work with widespread suffering.  It seems everyone overlooks that fact in their analysis.  My parents go to Italy regularly for 2-3 months at a time.  This is the first time that they could not wait to get home.  There is too much suffering and it is too depressing to be enjoyable.

 

Yes, most people will take a slap to the face or a kick in the gut and not have the nerve to react.  But once the wrong person is slapped, or the wrong person is kicked in the gut, everyone else will be lining up for payback.

Tue, 10/02/2012 - 21:07 | 2850412 RockyRacoon
RockyRacoon's picture

"....a politician will say "No" to the troika, get elected, and then it's game over for the Euro and EU..."

You mean there are politicians who do what they promise after they get elected?  Now there's a new concept.

I wouldn't discount the behind-the-scenes pressures once the maverick takes office.  Aren't we hearing about Sarkozy breaking some of his "promises" already?

Wed, 10/03/2012 - 00:03 | 2850858 lewy14
lewy14's picture

See e.g. Carlos Menem.

Tue, 10/02/2012 - 16:02 | 2849523 NotApplicable
NotApplicable's picture

In other words, it's a win-win for the elite. If Mish is right, then the elite get their casus belli in the form of the next great evil, nationalist bogeyman of society (WWIII and its subsequent "order from chaos"). If he's wrong, well it's just more collective pain (and associated wealth transfer) until something else unleashes total global war.

Insoluble unions, they're what's for dinner...

and breakfast...

and lunch...

Tue, 10/02/2012 - 16:14 | 2849555 Cangaroo.TNT
Cangaroo.TNT's picture

That sounds good until you realize that in WW3 Italy would surrender even if they were fighting France.

Tue, 10/02/2012 - 17:08 | 2849734 Winston Churchill
Winston Churchill's picture

Didn't Italian troops manage to advance a whole 50 yards into France when Mussolini

declared war.He was a little late,making sure the Germans were going to win

further north first.

Strange,Ghurka's said Italians individually were brave(they should know),but in a group ?

Tue, 10/02/2012 - 15:11 | 2849304 Careless Whisper
Careless Whisper's picture

I don't know if you have plans for Thursday evening, but I'd love Bruce to review this movie. Plus, they're serving cocktails and looks like they'll be some interesting people there.

http://brucemuseum.org/site/calendar_detail/fall-film-series-confidence-game

 

Tue, 10/02/2012 - 19:53 | 2850186 Bruce Krasting
Bruce Krasting's picture

Can't make it, but thanks.

b

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