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Berlusconi Ally Supports Alternative Currency To Euro

Tyler Durden's picture




 

Back in November 2011, when the ECB did its damnedest to make sure Silvio Berlusconi resigned and never came back (it succeeded in the first, but is failing in the second as the Berlusconi block is rapidly rising in the polls two weeks ahead of the Italian elections and is now one margin of error away from the frontrunning Democratic Party) the central bank knew the Bunga Bunga PM would be bad news for the status quo - a fixed exchange status quo which as we showed in an earlier post, is there merely to enrich the rich, and impoverish the poor.

The reason is that Sylvio has always refused to play ball with the banker oligarchy, whose survival depends first and foremost on the perpetuation of the EUR (as a collapse of the Eurozone means all reflation and DJIA 36,000 bets are off), and where every hint of a weakening of the Eurozone is to be eliminated at inception. Which is why news that Belusconi's coalition ally in the parliamentary election - Roberto Maroni, head of the Northern League, has suggested the creation and use of a local currency in northern Italy as an "alternative" to the Euro will hardly be seen as favorable by Europe's technocratic overlords for whom any initiative to structurally destabilize and weaken the European currency has to be crushed at the roots.

From Bloomberg:

Silvio Berlusconi’s biggest political ally in the campaign for Italian parliamentary elections said he may support a plan to create a local currency that could be used alongside the euro in the region of Lombardy.

 

Creating an alternative circuit, not a substitute but an alternative, is useful and can be used in moments of difficulty and economic crisis to give real help to companies,” Roberto Maroni, head of the Northern League, said yesterday in a video- recorded interview with Il Giorno posted on the newspaper’s website. “There are studies underway and we’re thinking about it. I can’t rule out that in the end we too decide to do it.”

 

Maroni said there were 13 examples in Europe of regional and business groups that have adopted an internal currency. Maroni is running for governor of Lombardy, the northern Italian region where the country’s business capital, Milan, is located.

 

Maroni said research on an alternative currency is being carried out at Milan’s Bocconi University, the school where Prime Minster Mario Monti taught economics and served as president. “We’re looking very closely at it,” Maroni said.

Furthermore, just as worrisome to the status quo is that as we previously reported, even with a Monti coalition, the frontrunning Centre-left party is currently just 2 votes ahead of the 158 needed to avoid a hung senate and yet another round of elections in a few months.

This means that should Berlusconi's Centre-right block continue to storm ahead in popularity, not only will the continuation of Italy's "reforms" be put into question as another political crisis emerges, but suddenly the threat of a relapse in EUR "redenomination" concerns will surge front and center. At least it would explain the recent urgency with which Pimco has been seeking greater fools whom to offload its current Italian bond holdings.

Because once a precedent is set where just a region in Europe has its own "alternative" currency, every other region will scramble to do just that. And with federal control still firmly in the hands of pro-status quo powers, it is likely that the next round of European risk-flaring will not be at the national, but instead at the regional level, which for the bulk of Europe's periphery, is just as insolvent, and just as in need of an external devaluation to offset the much more hated internal, i.e., wage-driven, attempts to become competitive with Germany (as also explained earlier).

 

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Sun, 02/10/2013 - 15:56 | 3231056 Skateboarder
Skateboarder's picture

Pervusconi? Why haven't Italian women torn this scumbag limb for limb yet...

Sun, 02/10/2013 - 16:03 | 3231073 thisandthat
thisandthat's picture

Burlescone! Benito Burlescone, prego (al suo servizio)!

Sun, 02/10/2013 - 16:34 | 3231109 FL_Conservative
FL_Conservative's picture

MOAR.....Bunga....Bunga

Sun, 02/10/2013 - 18:45 | 3231421 negative rates
negative rates's picture

Hypocritical silence is golden.

Sun, 02/10/2013 - 19:03 | 3231466 Matt
Matt's picture

I'm confused. How can the Freemasons be part of the One World Government Conspiracy if they are opposed to the Global Bankers? Afterall, Bunga Bunga is the Freemason's candidate, right?

Sun, 02/10/2013 - 17:19 | 3231198 Dead Canary
Dead Canary's picture

Why haven't Italian women torn this scumbag limb for limb? Because he pays them well. Duh!

Sun, 02/10/2013 - 23:53 | 3232179 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Around the world he's viewed as a buffoon, but in Italy he's quite respected. That's all that matters.

Sun, 02/10/2013 - 15:55 | 3231057 JPM Hater001
JPM Hater001's picture

Wait tell he tells them he wants to back it with Gold.

Sun, 02/10/2013 - 15:57 | 3231060 falak pema
falak pema's picture

And the Berlu strategy of conquest via "break up" begins...flash of mirrors or has be gone truly euro skeptic?

Sun, 02/10/2013 - 16:50 | 3231129 Freddie
Freddie's picture

If Silvio and the Northern League bring down the euro - they will be heroes.   He is no prize but as far as we can tell - he is not a Goldman puppet like Draghi and Monti.

Sun, 02/10/2013 - 16:52 | 3231139 Ghordius
Ghordius's picture

imo all electoral canvassing

and Maroni's regional northern italian currency has - there are several private currencies in europe - the thorny issue that it's easy to make a good private currency

the difficulty is in how to make a weaker one than the gov issue

Sun, 02/10/2013 - 18:32 | 3231388 bank guy in Brussels
bank guy in Brussels's picture

Berlusconi has already called the euro "a scam" against the southern countries in Europe ... and he can now take a sweet cold revenge against the EU forces who pushed him out of office quite brutally and unfairly

3 major euro-sceptic parties now in Italy, under Berlusconi, under Beppe Grillo, and the Northern League

Grillo and Berlusconi will have some personal issues before they join in coalition - Grillo has been very critical about Berlusconi's personal peccadilloes - but the momentum of history is moving them, to put an end to this euro-farce cruelty

Italy has always had the most solid economic base for leaving the euro ... the Italians as a people, are better at spotting a financial scam than most other nations

Soon it may indeed be

Berlusconi

Bunga bunga

Break-up of the euro

Bring it on!

Sun, 02/10/2013 - 21:02 | 3231764 ArgentoFisico
ArgentoFisico's picture

Beppe Grillo, leader of the 5 stars movement (will have 10%? 15%? 20% of the votes? mine for sure) says the same things: EXIT THE EURO, LET'S HAVE OUR SOVERIGN MONEY BACK!

http://www.youtube.com/watch?v=C-Dcu33UPzQ

Sun, 02/10/2013 - 16:01 | 3231068 williambanzai7
williambanzai7's picture

Who says Vaudeville is dead?

Sun, 02/10/2013 - 16:45 | 3231122 Debeachesand Je...
Debeachesand Jerseyshores's picture

Via the Bank of Italy.

Sun, 02/10/2013 - 16:02 | 3231069 Joebloinvestor
Joebloinvestor's picture

Since when is an alternative not a replacement?

Especially when it isn't coupled to it.

Next, the barter system.

Sun, 02/10/2013 - 16:04 | 3231070 medium giraffe
medium giraffe's picture

Berlusconi Ally in Boating Accident

Sun, 02/10/2013 - 16:26 | 3231099 thisandthat
thisandthat's picture

Boating accident? You mean like this guy, who murdered this researcher?

Sun, 02/10/2013 - 16:57 | 3231142 medium giraffe
medium giraffe's picture

I have no idea what you are talking about. :)

Sun, 02/10/2013 - 17:14 | 3231178 thisandthat
Sun, 02/10/2013 - 16:04 | 3231074 shovelhead
shovelhead's picture

Heretic!

Burn the Witch!

The Faith must remain pure.

Sun, 02/10/2013 - 16:04 | 3231076 news printer
news printer's picture

A Return to Normalcy: Why Presidents Harding and Coolidge Still Matter.

Federal spending was cut from $6.3 billion in 1920 to $5 billion in 1921. Federal taxes fell from $6.6 billion in 1920 to $5.5 billion in 1921 and $4 billion in 1922…With Harding’s tax and spending cuts and relatively non-interventionist economic policy, GNP rebounded to $74.1 billion in 1922. The number of unemployed fell to 2.8 million — a reported 6.7 percent of the labor force — in 1922.

http://goo.gl/6qmwx

Sun, 02/10/2013 - 18:27 | 3231378 Accounting101
Accounting101's picture

Yeah, and then a few years later the God Damn economic world blew up. Seriously, please don't cherry pick economic data, take that data out of any context and then try to squeeze that data into some economically illiterate proposition.

Sun, 02/10/2013 - 19:18 | 3231499 Matt
Matt's picture

Credit Bubbles are a feature, not a bug, in the current financial system.

Sun, 02/10/2013 - 16:13 | 3231083 PontifexMaximus
PontifexMaximus's picture

foreget about r. maroni, when talking about italy, there is only one, who count's, it's angela's best friend and he is also italian and he resides in the same angela country.

Sun, 02/10/2013 - 16:19 | 3231093 DUNTHAT
DUNTHAT's picture

Update the latest Currency Futures COT positions ---

www.CommitmentsOfTradersAnalytics.com

Sun, 02/10/2013 - 16:20 | 3231094 Atomizer
Atomizer's picture

Never trust a man who wears high heeled shoes.

Sun, 02/10/2013 - 16:32 | 3231107 Skateboarder
Skateboarder's picture

Or a man who prefers light booze.

Sun, 02/10/2013 - 16:35 | 3231114 ekm
ekm's picture

I speak italian quite well and still follow italian news online every second day or so.

Berlusconi has his own idiocies, but he tried to do some good things.

 

In Italy and Europe the state is seen as the FATHER PROVIDER.

He initiated and applied laws in order to change that. If he were not an addicted womanizer, he'd have still been prime minister right now and would have remained PM for a long time. He is quite capable.

Sun, 02/10/2013 - 16:52 | 3231138 Freddie
Freddie's picture

We know Mario Monti and Draghi are for Goldman Sachs.   If Silvio is for Ialians and not the EUSSR scum or the euro then he is the good guy.

Sun, 02/10/2013 - 16:57 | 3231144 ekm
ekm's picture

I have friends in Italy who actually managed to find jobs because he made it easier for the small companies to fire useless workers.

 

People who want to work will vote for him and Lega Nord. The issue is the same as in USA: What is the % of people who want to work and people who want some crums from the gov?

Mon, 02/11/2013 - 01:30 | 3232328 Freddie
Freddie's picture

+1

A lot of people in the USA would rather get crumbs from the govt.   I think Italy's chances are better than America's now.   Italy needs to go back to the lira and leave the EUSSR.

Sun, 02/10/2013 - 17:31 | 3231227 The Reich
The Reich's picture

"then he is the good guy."

or dead, more sooner than later.

Sun, 02/10/2013 - 16:24 | 3231096 Poor Grogman
Poor Grogman's picture

Trial balloon to see if the idea gains traction in the polls.

It will...

Sun, 02/10/2013 - 16:28 | 3231101 oleander garch
oleander garch's picture

Two interesting items:

1) Axelrod has been helping Monti (which indicates where the TBTF banks are putting their money after screwing the media kingpin Mr. B);

2) the media is relagating Grillo and the Five Star Movement to the last paragraph of stories if they mention them at all, even though Grillo has made the most impressive poll surge over the course of six weeks.

In this context, the Northern League advocating a Euro-sceptic position looks designed to help the media kingpin Mr. B. continue to be pro-EU while letting the small fry in his coalition try and claw back some of the impetus to Grillo.

It is starting to smell like the Greek elections where the anti-banker anger torpedoes the corrupt established parties and vaults a new entity into play.

 

 

Sun, 02/10/2013 - 16:52 | 3231135 magpie
magpie's picture

Yup, looks like the electoral outcome will be massaged like the Greek and Catalan one...not that it would do any good in the long term.

Sun, 02/10/2013 - 17:23 | 3231205 Ghordius
Ghordius's picture

diebold-shocked? europe has very little voting machines, and many electoral observers

Sun, 02/10/2013 - 16:37 | 3231117 Atomizer
Atomizer's picture

This dumbfuck might be spilling the beans.

Schedule of UN Operational Rates of Exchange

 

United Nations Treasury 

Just sit back and watch the MSM play this off.

Sun, 02/10/2013 - 16:37 | 3231118 suteibu
suteibu's picture

Sucks not to be able to print one's way out of a clusterfuck.  The envy for Bernanke by Europe must be reaching a tipping point.

Sun, 02/10/2013 - 16:43 | 3231120 Tyler Durden
Tyler Durden's picture

Venezuela can, and.... "Venezuelan devaluation sparks panic"

Sun, 02/10/2013 - 16:48 | 3231125 suteibu
suteibu's picture

Yes, but Venezuela is not part of the EU which currency is not controlled by Italians.

Sun, 02/10/2013 - 16:49 | 3231127 Atomizer
Atomizer's picture

Type: obama venezuela oil deal. Follow the money

Sun, 02/10/2013 - 16:46 | 3231123 hairball48
hairball48's picture

Gresham's Law....just keeps rearin its ugly head don't it?

Sun, 02/10/2013 - 16:50 | 3231131 magpie
magpie's picture

Why do the Italians hate Europe for its freedoms

Sun, 02/10/2013 - 17:02 | 3231151 Black Markets
Black Markets's picture

A regional currency is worthless.

The only thing that makes currencies work is that they are accepted as payment for taxes and taxes are enforced by the authorities who have a monopoly on violence (the Police).

So everyone is forced by threat of violence to amass and hold enough of a currency to pay their taxes and appease the authorities.

In return the authorities enforce law and order (via their monopoly on violence) and everyone lives side by side in relative peace and tranquility.

If the monopoly on violence breaks down all hell breaks loose (see New Orleans).

Regional currencies are worthless unless they can be used to pay taxes.

Sun, 02/10/2013 - 20:31 | 3231703 TNTARG
TNTARG's picture

We had regional currencies in Argentina before the default. They were accepted to pay taxes too. It made province's economies go on (the one where I live, i.e.). We used Patacones, LECOP, LECOR, many of them. It can work for a while, just a while, and that if you don't have to import food and oil to survive. Our "fixed exchange" 1=1 with the US dollar was functioning just like the Euro. We know very well that kind of shit.

FUORI DALL'EURO, ITALIA!

Mon, 02/11/2013 - 08:31 | 3232623 Non Passaran
Non Passaran's picture

You forget that alternative currencies are very useful to *avoid* paying taxes.

Sun, 02/10/2013 - 17:04 | 3231154 are we there yet
are we there yet's picture

We have not had a politician that was partly honest, honorable, wise, forward thinking, scandal free, since Eisenhower. He was the last to publicly audit the FED and Fort Knox as well. Each leader since him has been worse. I have every reason to believe this trend is gaining momentum and is immune to Jeffersonian logic and reasoning.

Sun, 02/10/2013 - 17:31 | 3231226 Uskatex
Uskatex's picture

Two weeks to the elections! In Italy the feeling is that Grillo's M5S is on the rise, and could even get 20% of the votes (now they are at 15-18)%.

Berlusconi and his right-wing allies probably will not gain more than 28%. Democrats are at 32-33%, but slowly decreasing. Monti and allies are at 12-14%. Two other parties (extreme left and a liberist party) are struggling to get 5%, the threshold to have MPs.

My guess is that Democrats + Monti will not get the majority at Senate (or will get it for just 1-2 votes), and will make an agreement with Berlusconi, who now is campaigning as he were against EU and Euro to get votes, but if pressed with the risk of losing his assets, he will promptly align his party with Democrats and Monti, as he did on November 2011. Lega Nord will not follow, but they are not many. Grillo is forecasting new elections in 6 months.

Sun, 02/10/2013 - 20:20 | 3231685 TNTARG
TNTARG's picture

It's a fuck'g nightmare nella mia penisola, cazzo!

Sun, 02/10/2013 - 18:40 | 3231405 Piranhanoia
Piranhanoia's picture

Burlesquo Mussolini.  Is this how Benito became fiend friend of the working man?   What a world,  actually wishing for Bunga.  Ciao, Silvio!   all is forgiven,  and get our gold back,  take out the pope and get his gold too.

Sun, 02/10/2013 - 20:01 | 3231628 jonjon831983
jonjon831983's picture

Meanwhile in the US: "States seek currencies made of silver and gold"

http://money.cnn.com/2012/02/03/pf/states_currencies/index.htm

Sun, 02/10/2013 - 20:57 | 3231758 Flounder
Flounder's picture

TD you are a great financial reporter.  Thanks for digging this up.  Heel hartelijk bedankt.

Sun, 02/10/2013 - 22:56 | 3232044 TNTARG
TNTARG's picture

The ultimate (sub)human follie.

Greece is in pieces. A society that can thank the Troika and their puppet politicians for the collapse. Censored by western's media specialy in Europe and most precisely in Italy (elections coming), news spread from Greece anyway. At the same time Rajoy has noticed Bruxelles that Madrid is almost out of control, Greece' spasms fly the net. Starving people is assaulting  supermarkets and employees let them do it because they agree.  150 citruses' producers have taken the fruit that the European Union ordered them to throw away (nice!) and they're giving it to the people while telling how things are.

People is turning against their employers, as in Muller's german corporation(and Quacker...) who bought for pennies (borrowed by banksters) greak companies. Muller's employees are delivering yogurth for free to the people. Some groups rub banks, what they can grab, then give money to people to buy food. The police managed to take 4  into custody and tortured them badly. Their were just kids.

http://www.globalresearch.ca/the-face-of-austerity-photoshopping-away-po...

As you know, German Economist Hans Werner Sinn + 50 other economists have filed a report to the European Council and the BCE: Greece has to leave the Euro and devaluate 20/30% or there will be a human tragedy and the UN intervention will be necessary.

UK fears sound of a Greek exit

http://www.ft.com/cms/s/0/9d691a20-a0f9-11e1-9fbd-00144feabdc0,dwp_uuid=...

A lot of very demential situations are in process up there in southern europe. We're stucked, no evolution.

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