The Economist vs Italy's "Clowns"

Tyler Durden's picture

A few days ago Bloomberg mag did all it could to aliante virtually all racial minorities residing in the US (which in three decades will be the majority) by insinuating that Bernanke's second housing bubble is the sole source of riches for those not of the Caucasian persuasion. Now it is The Economist's turn to provoke well over half of Italy, by alleging that in not voting for technocratic, Goldman-appointed oligarchs who promote solely the banker backer interests, Italy has made a horrible mistake and has ushered in the circus...

And while it is clear what The Economist's agenda is - the fact that the magazine is owned by the FT, Cadbury, Rothschild, Schroder, and Agnelli is becoming more transparent with every passing day - a far better take on the implications of the Italian election, and the opposite to that of the Economist, was presented here yesterday by Charles Gave.

We repost it in its entirety.

Italian electors’ rejection of Brussels-imposed economic diktat is an extraordinarily important moment in the history of modern Europe - perhaps the best political news since the fall of the Berlin Wall. Given the power of unelected technocrats, it is easy to forget that sovereignty in Europe still resides with the nation state as expressed through elections. The problem for those unelected officials who conspired to capture the political system - think Jacques Delors, Jean Claude Trichet or Mario Monti - is the obvious failure of their great project. For the first time a majority of electors has decisively voted against the euro and rejected policies imposed by technocrats.

As usual, the proponents of technocracy claim that the Italian vote changes nothing substantively and soon it will be business as usual. This is the standard response whenever European electors express disagreement (think of referendums in Ireland, France, and Holland..) and upset this freedom-killing project. Since more than half of Italian voters chose parties with an overt anti-euro stance, I would beg to differ.

The euro project is a financial Frankenstein which could not and has not worked; this Italian vote may mark the beginning of the system’s ultimate demise. Italy is different from other European problem economies since it runs a primary budget surplus, a current account surplus and finances most of its debt internally. Hence, Italy can leave the euro tomorrow and be much better off. Italians have led the way and soon the Spaniards, French and the Portuguese will reject this slavery in order to achieve "reforms" whose only purpose is to make a dysfunctional system work.

But let us stop and consider what these technocratic elites mean by “reform”—an end which is apparently worth so much suffering. To translate their bureaucratese into a commonly understood language let’s first define the different groups which compete for resources and influence in the modern European context:

  1. The fellows who want to take care of themselves and be left alone - i.e., the entrepreneurs and those working in the private sector. These guys and only these guys create economic growth.
  2. Those who want someone else to look after them. These fellows tend to work in the public sector or be retired and can be called the “new rentiers.” These guys want to lead a stable and uneventful life.
  3. The fellows who want to lead their inferiors to a better future because they are smarter and know what is best. Borrowing from Thomas Sowell, I will call them the "anointed" since they very often have a very special relationship with their God, a kind of idol which they call by a strange name: the State. These guys have one and only one objective: the growth of their own political power.

Europe’s anointed decided a long time ago that we had too many little gods in Europe (The French State, the Italian State, the German State, etc.) and we needed to move to monotheism, thereby creating a European State or an altar where everybody could properly worship. Previously, each little individual god had its own "money,” with the peseta, drachma, French franc, etc., used by the local citizens to pay their dues to the local god. But as the French free market economist Jacques Rueff said, "a currency is a sewer in which unearned income is collected." In other words, if compensation is awarded even when nothing of value is produced, such “unearned income” will in time drag down the value of the currency.

The stuff that gets distributed through the sewage system varies greatly from one country to the next. Take the example of Italy, a strange country (which I love dearly) if there ever was one. The north has a large community of entrepreneurs, and the south a majority of “new rentiers”. Up until 2000, Italy had a simple way of solving this problem. Massive transfers were made from the north to the south in the local currency, while the fellows in the north were effectively paid in deutschmarks. From time to time, the lira was devalued which guaranteed that the fellows in the north remained competitive against their German competitors. Similarly, the "new rentiers" received their retirement income in the local currency, which minimized transfers taking place between generations.

Balance was maintained since private sector salaries tended to be indexed (with a lag) to the DM, while retirement benefits and public sector salaries were paid in lira. The same thing happened in France, where an abnormally large part of the population (much higher than in Germany) wanted to be "rentiers” i.e. civil servants.

Because the French and Italian currency sewage systems had more waste to recycle than their German equivalent, the exchange rates adjusted accordingly and harmoniously downwards. As 19th century philosopher Ernest Renan noted a nation is defined by "a willingness to live together" - and every nation in Europe, for most of the post WW2 period, found a way to uphold its local social contract.

To cut a long story short, it is the constitutional right of every country to be badly managed if the survival of the social contract binding the population is at stake. Finding a way to live together is much more important than being well managed.

Unfortunately, this common sense formulation was never understood by the European zealots, who were intent on destroying the old gods to replace them with their new and unique god - a new Roman Empire. In this sense, the similarity with the USSR project is striking (see our discussion of a Christian Europe vs the new Roman Empire in Was The Demise Of The Soviet Union A Negative Event?).

The euro was created as a first step towards a new Roman Empire and the result was that Italians had to effectively transfer deutschmarks to the south. France was also forced to pay its innumerable civil servants in DM. Retirement benefits across the eurozone were effectively set in DM, which savaged the younger generations. The result was that local entrepreneurs lost competitiveness and peripheral eurozone economies started to go bankrupt. The euro has thus caused the probability of recurrent devaluations to be replaced by the certainty of national bankruptcy. This fate can only be avoided by a total surrender of national sovereignty to so called creditor nations, which is a remarkable achievement.

It is against this dreadful backdrop that the Italians have just voted.

However, the fact that the euro is a disaster has absolutely no impact on our "anointed." They are not interested in the well being of the local citizens, but are in fact missionaries for a faith. Since they are appointed from upon high, they are able to preach to the sinners and demand their repentance, i.e., that they should "reform". Monti, for example, was very big on preaching the "reform" sermon.

By “reform”, our proselytizing elite mean the dismantlement of "national contracts” which had managed to unify each European polity. In their place, we have been granted a new social contract whereby the Germans pay for the Sicilian and French civil servants (read a “Federal Europe”).

The Germans are not exactly keen on this idea, so in order to placate their own virtuous fellows, Berlin has offered to organize a world of ever falling salaries in southern Europe—to teach the sinners a lesson. For the lapsed southern Europeans, such collapses in their standard of living is the only way to stay competitive so long as the fixed exchange rate stricture remains. Compliance also implies dismantlement of all the social protections that the rentiers of southern Europe have over many years managed to secure.

As a Frenchman, as a European, I want a diverse Europe in which each nation is managed by its own elected people. If the nation chooses to be poorly managed—so be it, this is what democracy is all about. I am not interested in a Europe where the standard of living falls precipitously for a large part of the population, nor am I interested in humiliating what were once proud countries in the hope that they desert their old deities and accept a new god.

And neither do I want to be administered by unelected technocrats delegated by the northern Europeans on the flimsy pretext that my own politicians are useless; they may be hopeless, but I am entitled to have them that way.

What the eurocrats offer under the banner of "reform" is nothing of the sort but just an increase in their power and the destruction of the incredible diversity which made Europe an endlessly fascinating place.

It is time to return to market prices and democracy and to accept that technocracy cannot work. I love Italy more and more. Indeed, for the first time in years, I can envisage a situation in which I feel bullish on Europe.

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Sandmann's picture

The Economist is a rag catering to US prejudices. It is staffed with Old Etonians and a socially elitist group of Atlanticists who have a Patrician Template for Imperial Rule. It is not even a good Economics magazine more an elevated version of Time. It is 2 decades since the Economist was a worthy publication.

GetZeeGold's picture



Does Bob Woodward write for those guys?

AssFire's picture

Whoever wrote this should be in comedy:

Indeed, for the first time in years,

I can envisage a situation in which I feel bullish on Europe.

GetZeeGold's picture



Hard to be bearish when you realize there's an unlimited supply of money.

Bloomberg: Don't Panic, USA Has 'Infinite Amount of Money'...

Pinto Currency's picture


The clowns are the elitist bankers who got us here - we need to get the facts straight.  The Economist is simply an advertizing rag for the elitist bankers and the pages are not even useful for lining a bird cage as they are too glossy.  Not sure there is a useful purpose for what is really the City of London's Pravda.

AlaricBalth's picture

Lately Pravda has been scathing of US fiscal and monetary policy. For example...

"He (Obama) spent four years benefitting bankers, war profiteers, other corporate favorites, and super-rich elites. He did so at the expense of middle America. Others most disadvantaged suffered more. His administration prioritizes austerity. He wants America's social contract destroyed. Straightaway in office he demanded it. He hasn't changed his mind. He plays hardball. He wants Republicans blamed for bad policies he supports. They caused enormous harm to millions. He's got much more in mind. He pretends otherwise. Read his policies, not his lips. His record reveals rogue leadership. He's mindless of human suffering. He wrecked America's economy. Poverty, unemployment, homelessness, and hunger increased on his watch. The worst is yet to come."

You won't find any US mainstream periodical writing such a biting piece.

Pinto Currency's picture


I am referring to the Pravda of the CCCP that we all knew and loved so well.

AlaricBalth's picture

That's what I thought and up arrowed you for the analogy. I too recall how Pravda was the centralized mouthpiece for the Soviet Communist regime. Similar to how the NYTimes fulfills the same mandate now.

Spirit Of Truth's picture

Don't worry.  "Pravda", which means "truth" in Russian, will soon be back in full force:

"Capitalism" is on its last legs IMHO.

bigkahuna's picture

Everyone is a capitalist, wether they admit it or not.

AlaricBalth's picture

Everyone is a capitalist with their own money, though many become socialists when it comes to other people's money.

Pinto Currency's picture


Crony capitalism with paper money controlled by central planners from and for the elitist bankers is on its last legs.


redpill's picture

They should change the name to The Ponziest.

knukles's picture

I couldn't fucking take it anymore... cancelled my subscription, finally.

mjcOH1's picture

There is no Truth in Pravda.   And there is no News in Izvestia.

Lost Word's picture

Princess Diana once said something similar about a London newspaper lining the Spencer family birdcage. Perhaps it was the London Times. Later, circa Autumn 1995, I wrote a letter to Diana that I read the London Sunday Times and The Economist at my local Alabama library, and then those two publications started publishing very short echoes of my many handwritten letters mailed to Diana, 1995 to 1997. I still do not know how they got copies of my handwritten letters, either from Diana herself, or from Government spies intercepting and copying my mail, before sending it on to Diana. Probably the latter.

Freddie's picture

Yup.  Great post/article by the Tylers. Kudos to the Italians, Egyptians trying to fight agaiunst Obozo's Muslim Brotherhood goons and the Syrians fighting against the same scum.  Ditto the Serbs who fought against the same NWO/banksters/CFR islamist thugs that corrupt Un and Clinton backed. 

The Economist is a joke now. I used to like it 20+ years ago but it is trash.  Magazines like that are Operation Mockingbird trash from western intelligence agencies aka the european bankster families propaganda. 

These magazines are dying because of sites like Zero Hedge where many of the posters arew far smarter than hack propagandist journalists writing for these magazines.

Some of the smarter ones posting here are MDB, rfobot trade and Paul Kurgman (sarc).  Most of the posters here are probably more qualified than the hacks at these mags or newspapers. 

The Tylers also churn out unbelievable amounts of good content too.  Daily stuff which is pretty amazing.

Kirk2NCC1701's picture

Yes, the Tylers put out so much stuff each day, that my compulsive reading and blogging is interfering with my normal life. My wife is pissed that I spend more time w Tyler and his friends, than with her. Curse you, Red Baron! ;-)

MarsInScorpio's picture

The really important thing about the Bloomberg comment, which went ignored by the MSM and shills like CNBC because it blows the cover of the American technocrats (i.e. Big Ben, et. al), is that these elites truly bvelieve they can do this forever and it will never need to end.


In fact, they truly believe they are better and better off the deeper the debt because it forces other nations to fund the US because the alternative is a collapse of their debt holdings - "the bank has a problem" meme.


Bloomberg is not a very bright light - if he were, he'd be higher up the food chain than being the janitor of the elite's US financial center. His job is to keep the peace for the elites - not to be confused with relentless violence inflicted by, and upon, the non-elites. Mikee is tasked with keeping the sewers flowing, the roads cleared, the hoodlums in the ghetto, the lights turned on, the communications wired, and making sure the elites can come and go as they please without too much worry for their persoal safety.


If he wants to make an ass of himself over quirky things like the size of soft drinks, letting the plebs have a 2-liter soda with their delivered pizza, keeping pain killers out of the hands of people who can't afford to buy their doctors, and with it, their endless supply of pain killers and other drugs for themselves - so be it.


They even let him delude himself into believing they might even let him be dictator, er, president.


(Quick aside - Speaking of the transformation over time that the presidency has become under a series of presidents begining with FDR and every one after him, did anyone miss the irony of "I am not a dictator" / "I am not a crook?" Sure Barack, sure . . . just like Tricky Dickie.)


(Back to NYC and the elites . . .) The rest of the citizens are just there to provide services to the elites, and are expendable - take a look at how Sandy's damage lingers, but the elite areas of NYC were up and running first and completely.


I noted his comment yesterday, and I'm glad to see someone else picked it up today. It is one of the most revealing comments uttered by a member of the elite-service provider corps.


Lost Word's picture

I doubt that Bloomberg will ever become President of the District of Criminals, despite his being a Roth-schild Shill.

NotApplicable's picture

I see that Silvio is a fan of "The Leg" pose made famous by Angelina Jolie.

GMadScientist's picture

There are times when I'm thankful the internet is not equipped with smell...the guy looks like old man stink personified.

Auntie Lo's picture

Maybe it's John Kerry... Europeans have the right to be "stupid" too?

Spider's picture

Beppe Grillo for US PREZ!

Lost Word's picture

The current mayor of London is a similar iconoclast, and was born in the United States, perhaps could claim US citizenship, unlike the current Kenyan fraud President of the District of Criminals.

mjcOH1's picture

Weren't the Italians told just a few short months ago to lose the bunga master or the good citizens of Germany would no longer be covering their bills?   This government should end quickly even by Italian standards.

Lost My Shorts's picture

Well, maybe also City of London banker prejudices.  What do you expect from a magazine called the "Economist"?

They never made any secret of aspiring to be the standard bearer for what Europeans would call "neo-liberalism" and what non-ZH-reading Americans would call "centrist, responsible, grown-up".  To take such a slap at Italy tends to suggest a bit of pessimism and devil-may-care on their part, like they expect to be on the outside looking in soon, or retired to the Caymans and shaggitall.  That cover is probably the Euro's epitaph.

DUNTHAT's picture

Don't the Rothchilds own/control that magazine ??


Opps, cacete explains it all very well up a few posts from here....

AlaricBalth's picture

I got this off Wiki and it is very funny. Plus the actress in this one minute bit is quite beautiful.

"In 2006, Indian actor Abhishek Bachchan starred in a Motorola KRZR advertisement where one flight attendant asked if he wanted anything to read. He said "The Economist, please", which resulted in the young lady sitting next to him rolling her eyes and his mirror image called him a "fraud". He settles for Stardust instead. "

Kaiser Sousa's picture

"Beppe Grillo, the former comedian who holds the balance of power in Italy, has suggested the country may have to abandon the euro and return to the lire. In an interview with a German magazine published on Saturday, Mr Grillo said that “if conditions do not change” Italy “will want” to leave the euro and return to its former national currency."

Kirk2NCC1701's picture

Get a Southern and a Northern Euro! Q.E.D.

francis_sawyer's picture

[Send in the Clowns]...don't bother, THEY'RE HERE...

AssFire's picture

Thanks Francis,

I envisaged Barbra Streisand.

Now I must go back to bed to trick myself it was just a nightmare.

francis_sawyer's picture

Ouch ~ Didn't mean to fuck up your weekend... There's still time to recover with a comedy routine on bitcoins [whereby the "clown" metaphor would also apply]...


Edit (12:00): Wanna know what's hilarious?... Above ~ I could have stopped with the 'Didn't mean to fuck up your weekend' comment... But since it was innoculous as standalone, I decided to take advantage of the comment space & add the last part afterwards... Why?... Because I KNEW it would draw out the bitcoiners... A way of dredging the seabottom to see who happens to be lurking on a Saturday... The 'junks' didn't happen until I added the tag on edit...

In parlance ~ I just mined your ass... Funny how easily & quickly the 'secretive encryption society' drops its pants... Tuck that info into your bitcoin wallet...

ElvisDog's picture

Oh, come on, we all know you secretly want to put the wood to Barbra, take her bra off, slide your hands up her flabby stomach to her wrinkly breasts. Just admit it.

Rogue Trooper's picture

Dog.... STOP that, you just conjured up a world of WRONG.

Then again, how about a three-some. Ask Barb to bring Maxine Walters along?

piliage's picture

Hey. There is Babs now, and there is BABS in 1972

I'd have happily given her the wood, my wallet, checkbook, mortgage, and anything else I could have mustered...



francis_sawyer's picture



PURE HONESTY [from francis_sawyer]... There was a brief sliver of time that she could make me 'nut'... & that was while I was still in my 'PRE-TEEN' years...

Which goes to suggest:

- keep your politics to yourself

- keep your jewry to yourself

- & try not to age much

& you might make it to the finish line... [I'm not pretending to be the FINAL WORD on this ~ jus my 2 cents]...

mjcOH1's picture

"Hey. There is Babs now, and there is BABS in 1972...I'd have happily given her the wood, my wallet, checkbook, mortgage, and anything else I could have mustered..."

Boobs 8" higher, but still bat-shit crazy.

Shvanztanz's picture

Sandmann, I think you proved two points at once, yours and ZH.

PUD's picture

People get the government they deserve.

francis_sawyer's picture

Californians elected Schwarzenegger [among other treats]... & California has the most electoral votes in national elections, which, by function, makes their VALUABLE input more important than yours...


On a national stage, you get Barbara Boxer, Dianne Feinstein, Nancy Pelosi, & Maxine Waters bundled in to that collective wisdom...

francis_sawyer's picture

emphasis on the 2nd syllable

francis_sawyer's picture

emphasis on the 1st 'SEND' click ~ double post there... [bitcoiners must be 'at it' again, gummin up the internet springwerks in the never-ending quest to mine digital Bazooka Joe wrappers so they can save up enough to buy the 'X-Ray Specs' & finally get a look at some titty]...

GMadScientist's picture

Conversely, Alaska and Wyoming stlll get representation in the House and Senate for reasons beyond comprehension.

On a national stage, you get Lisa Murkowski, James Inhofe, Michelle Bachmann, and Louie Gohmert bundled into that collective wisdom.

jwoop66's picture

LOl!  I know, right!?    If we could only get more higher intellects like Boxer, maxine waters, Henry Waxman, Nancy Pelosi, Harry Reid, Bernie Sanders.  Smart folks.  Don't forget intellects like Hank JOhnson-   

Yeah, I can't believe those dumb, stupid people you mentioned...

francis_sawyer's picture

I'm not a NASCAR fan... But politicians, in this way, remind me of NASCAR drivers [sans corporate logos]... Which is why I also get a kick out of the lefty elites when they try to depict the 'voting IQ" of NASCAR fans as all being equivalent to trailer trash...


It doesn't matter on which degree of arc or tangent the fly hits the web... The spider is still gonna have his meal...