This page has been archived and commenting is disabled.
Beppe Grillo Disarms The 7 Unfounded Fears Of A Euro Exit
Having previously warned that "the eurozone chess game is entering its final stage," and exclaimed that "we are not at war with Russia or ISIS, we are at war with the Troika," Italy's erstwhile populist leader, Italy's Five Star Movement's Beppe Grillo unveils his Plan B by destroying seven unfounded myths with regard an exit from the euro...
7 unfounded fears about an exit from the Euro
1) Mortgages
Mortgages will be converted into the new currency the day we exit the Euro. For anyone with a variable interest rate, this will still remain linked to the Euribor and thus it will remain stable. In relation to mortgages, Italians will benefit.
2) Inflation
Just think that the goods (home, car, telephone) that we want to buy will come down in price. If we don’t spend, the economy stagnates. This is what is happening today with deflation. A low level of inflation is thus necessary to keep the economy going. On the other hand, it mustn’t be too high to avoid devaluing our ability to spend. This won’t happen because Italian products will become more competitive than foreign products and the products that we are obliged to import from abroad (for example: crude oil) have a limited impact on the final price (for example: in the last year the value of the Euro has fallen by about 25% in relation to the dollar, but the high level of customs duties on petrol, has meant that the effect has not been apparent).
3) Current account
Your current account in Euro will be converted into the new currency. But, just even today, you can have a different currency in your bank account. You will still be able to do that after the exit from the Euro. So you could have dollars, Euro, pounds sterling, francs or a new currency.
4) Government bonds
95% of Italian State bonds will be converted into the new currency (given that 95% are issued in accordance with Italian legislation and so they would inherit the national currency). The State will pay out on them and will issue them in the new currency. Given the low yields and the high risk that we already see right now, Italian State bonds are not a good buy for an Italian citizen.
5) Transition from the Euro to the lira
There’ll probably be a 1 to 1 conversion with the new currency and it will then probably devalue a bit. The effect on prices will probably be that they stay the same as today but they will be given in the new currency.
6) Increase in the price of petrol
The price of petrol is a false problem as most of the price (64%) is paid in taxes. International prices of crude oil and the exchange rate only relate to 26% of the price. If we also consider that the price of crude oil is at a record low right now, an exit from the Euro will surely be no problem from this point of view.
7) Imports: increase in the prices of imported products
This problem, that is particularly important for technology products, can only be resolved by investing in innovation after the destruction of companies like Olivetti and the downsizing of Telecom Italia. Innovation is the only way to develop the country. Staying in the Euro is not going to help. Throughout history, we have exported and traded with the countries nearest to us, but not because they have the Euro, simply because they are the closest and the geographic location has made it easier to trade with them ever since the time of the Roman Empire.
However, the value of exports going into the countries using the Euro, has being going down ever since we joined the Euro. Just in 2007, those accounted for 60%, and today that’s now down to less than 50%. The only areas where the value of our exports is growing is outside the Euro zone as can be seen from research into Italian exports: “emerging markets currently represent the biggest proportion of our exports, while the importance of the Euro area has seen a significant fall“.
And as a reminder, here is Grillo late last year explaining who the real enemy is...
- 37209 reads
- Printer-friendly version
- Send to friend
- advertisements -


Grillo suicided in 3...2...1
Now about that nail gun hobby of his....
Grillo hangs with Soros and promotes gov issuing money vs central banks.
Another central planner paper money promoter.
His views on inflation show that he will destroy Italy with his idiocy.
Lira hyperinflation will commense soon.
I have a dinner reservation at Beppe Grillo this Friday. They have the best risotto!
So Beppe is telling me the Euro Zone is actually a misnomer for client states of the German/English/French empire (run from Brussels for plausible deniability)?
In real life, in a world without central banker interventions, inflation is a positive force for stagnating economies for exactly the reasons he states: not only do exports become much more competitive, but lira-denominated debt becomes less onerous. You're just being a knee-jerk angry ZH commenter.
And it's spelled "commence".
Devaluing the currency does not help the economy as a whole. Sure it helps exports to a certain point, but you export so you can import. A stronger currency is good, not bad. And the reason why Italy has a stagnating economy is not because of not enough money, it's because it has a bloated bureacracy of a state. He is speaking purely bad economics. Also countries can import materials and turn them into exports like raw material. Devaluing the currency does not help the economy as a whole. Why devalue your purchasing power so you can subsidize other people's purchasing power and consumption in other countries? That's retarded, but we live in a retarded planet....With retarded economic policies.
look at all that hair.
Beppe is right on target. So what if they have to suffer some devaluation, the rest of the world will too, soon enough.
Start working at home with Google ! Its by-far the best mixed bag of goods I've had. Last Thursday I got a trademark new Bmw since getting a check for $6474 this - 4 weeks past. I began this 8-months ago and immediately was coming with house at least $77 per hour. I work through this connection, go.to tech marker for work detail.... www.globe-report.com
Me paying you for this crap is actually your business model. That's it. There's nothing more. And then I should troll forums scaming other suckers to pay me for notnihng etc...
Aha that what was spooking the FX only a 2 trillion Euro Economy this time LOL
More words, even more kabuki.
Skewsi. Bap-bada-boopy.
https://www.youtube.com/watch?v=9JhuOicPFZY
"There’ll probably be a 1 to 1 conversion with the new currency and it will then probably devalue a bit."
Some pretty big probablies in there, Beppe.
devaluation of debt? POSITIVE for Italy. Made in Italy is the charm for foreigners
Quick, buy Italian stocks in bulk AT MARKET!
Highly unlikely. It's not even probable unless Beppe installs exchange controls like the way Argentina did, and black market like in Venezuela today on obtaining foreign currency. He is talking pure BS there.
All the Euro did to these countries is make them have to have honest currency accounting. No more printing up and slipping in a few billion extra. (eg. USA)
....Or the Italian Lire. How many Lire did a coca cola cost in the mid-90's? 1,500?
"make them have to have honest currency accounting."
Not really. Greece fudged its books to get in and then continued to do so well after. What the Euro really did was pooled risk, made everyone systemic, and allowed sovereigns to go into a massive amount of debt.
Correct. Greeks wanted to munch on currency that could actually buy something. Worthless money is worthless even to a moocher. Heh.
"Devalued a bit"
HAHAHA what a kneeslapper!
We devalued some folks
People like this are dangerous and they should not be allowed to run for any kind of office lest there be a repeat of 1933. There needs to be limitations on what is acceptable discourse in society. That being said, I am glad that we're getting mass immigration to the west as this will blunt the political power of what remains of the indigenous middle class nazi morons.
Sorry. You're not a patch on MDB.
Where's the follow up "sorry wrong blog" post. You mainly troll the MSM blogs we hear
'33 was a good year. I was born that year. A lot of water has passed under the bridge since then and in places the river even dried up (sorry Calif). I really don't mind legal immigration, the more the better. Being an indigeneoue middle class nazi moron, it is the illegal part that I don't like. Definitly agree CC is not near the troll we find in MDB_
Let's break bread and take a piss to grab a gun in the toilet. Not to worry, we look after one another. Keep printing the true news. Fuck MSM.
FUCK YEAH!!!!
Populists are the same all over, non-sense.
How about linking interest to Euribor for new-Lira loans? Sounds great :)
I agree. As an example, look to the party called "golden dawn" in Greece who are nothing but an intolerable party of nazi thugs but thankfully the Greek government, in conjunction with Ronald Lauder and the World Jewish Congress, has sent these morons to prison that way they can't interfere in the politics of Greece any more.
after the WW2 greece became a free democratic oliveoil state again
After Greece rid themselves of the Nazis at the end of WWII, they invited the communists in. The electorate voted them into office.
Now that's clear thinking!
The EU and US situation is forced down people's throats with the threat of "Nothing must change, OR ELSE BAD THINGS WILL HAPPEN TO ALL OF YOU". That's a sure sign the only thing we have to fear is our freedom from these parasites.
Why not give change a chance? Doing the same shit over and over isn't helping us. Let's kick out all the "leaders".
Lira is a new prostitute looking for gifts.
Excellent news. The Grexit is becoming contagious and the Euro is doomed as a viable currency.
Next one to consider it seriously will be Portugal or Spain...if Germany does not beat them all to the punch.
Hell Germany launched a lawsuit against the ECB last week? Or was it the EU?
Ahhhh...It is cratering. It does not matter.
Looking forward to the Derivatives Implosion and the insolvency of every Central Bank...ESPECIALLY THE FEDERAL RESERVE.
Please Greece. Don't let me down.
And if Putin helps Greece in order to maintain this farce I am going to be really pissed at Putin.
Bring the fucker down. Bring it all down.
(My bet is that he will as he wants to maintain the status quo as he makes too much bread from the fraud which is being perpetrated upon all of us.)
Once a nation parts with the control of its credit, it matters not who makes the laws.
William Lyon Mackenzie King
In other words, you do not have a country if you don’t have your own money.
gold? has no country, too
To be precise, the problem resides in ultimate ownership of money.
Effectively, when individuals exchange time, skills and ideas for money, the expectation is that the exchange is of equal value.
In our monetary system however, money is the exclusive preserve of the central bank that, regardless the condition of the underlying ecnomy or, indeed, the persuasion of the incumbent government, devalues it as a matter of course.
Thus, individuals exchange something they own outright (their skills and ideas) for something they do not have control over and have to pay interest on in the form of devaluation AND taxes. Ergo, money does not become the property of the individual that exchanged it for his skills and ideas.
From an arithmetical point of view, the skills and ideas of individuals are limited in supply whereas the supply of money is infinite. Ergo, this monetary system must necessarily result in the concentration of profit thus title into the hands of the entity that has ultimate control of the currency.
In other words, you are not a free individual if you cannot acquire property of the money you accept in exchange for your labor.
This goes for individuals as, indeed, it goes for nations.
Thus, a nation that accepts a foreign currency as "reserve" is not a free nation and the arithmetic underpinning the system means that ownership of property and equipment will gradually migrate towards the entity that controlos the reserve currency.
These 3 Swiss scientits stumbled upon something they have not understood but that can easily be explained by the dynamics brought about by our monetary system.
http://www.newscientist.com/article/mg21228354.500-revealed--the-capital...
Dear Beppe is promising a cake Italians could eat and have it, too
either you devalue the ITL or you don't
either you balance your budget or you don't
Either you innovate (as Mr. Grillo proposes), your economy grows, demand for your currency increases, raising its purchasing power, and you cut the deficit ..
.. or your don't.
When large part of the economy is government, there expected to be little growth. Government spending is not economic growth even it's calculated in GDP. If you think the Euro is bad, a unproductive economy with soveriegn currency to support the government will be even worse.
more than slightly optomistic.
And though I don't read Italian and am at a distance, his view is that of a politician from the productive-north. Where as the the consumer-south will want not want to cut ties to any sugar-daddy that would have them, especially the EU.
dup
dup
Funny how all of these "alternative" parties promote the same fiscal insanity that got us here. The only difference between them and their predecessors are the parties benefiting from their version of the same ole scam.
"Funny how all of these "alternative" parties promote the same fiscal insanity that got us here". well, I can't agree
first, balanced budgets are more or less status quo, in the eurozone
second, we do have alternative parties
Note - Eurozone trade means less and less to Italy. Ditto for the UK. So , Two major EU countries finding Eurozone diminishing in value as a market. So why not look elsewhere, and what is the value of staying in the Euro (hint...none). If you've got goods and services that people want, you don't need a Euro for them to continue buying them.
The Chinese would love a Italexit. They would buy up the country wholesale at an even faster rate than now.
China or today is the Japan of the 80's. Mark my word they are making the same mistake except their's is about 1000 times larger.
The only thing they ARE doing right is hoarding gold. If they are smart enough to actually USE it then they win. My bet is they like every other bunch of fascists are too stupid to go that route as they are blinded by their wack job Keynesian ideology.
2017 folks. That's when the proverbial shit is gonna hit the fan.
Oh and Italy will be the first to exit the Euro.
This is much more rational and realistic than what my TV has told me so he must be wrong.
For sure, the international banksters, represented by the Troika, are a far worse enemy for the people of Italy, than the Russians and ISIS, which would not be much of an enemy unless the international banksters had not been playing their games of debt slavery backed by wars based on deceits, in order to deliberately aggravate those problems.
However, in my view, Beppe Grillo is grossly underestimating how serious a threat the international banksters really are, because one has to perceive those pyramidion people has having presided over the develop of social pyramid systems based on backing up lies with violence for thousands of years. Therefore, since the whole world is almost totally dominated by fundamentally fraudulent financial accounting systems, the magnitude of the possible "corrections" due to those accumulating errors have been amplified to astronomical SIZES.
Thousands of years of civilization based on being able to be socially successful through backing up lies with violence has allowed problems to develop which are many orders of magnitude greater than is currently possible for most people to comprehend, especially since the ruling classes that specialized in creating the established systems of legalized lies backed by legalized violence do not want those that they rule over to ever understand that. (While, the majority of people who have been ruled over for generation after generation have also gradually adapted to be too afraid of themselves no longer still being ignorant.)
Given that all of the established systems are based on ENFORCED FRAUDS, which automatically got more and more psychotically out of touch with relatively more objective realities, regarding the actual ways that human beings were living in their environment, the established systems are so EXTREMELY UNBALANCED that it is practically impossible to fully imagine what it would take for those systems to be sufficiently corrected to come back into some semblance of balance.
Indeed, the most probable futures are for the established systems of debt slavery backed by wars based on deceits to continue to drive through debt insanities to become death insanities. While I AGREE that the ruling classes are the worst enemies, not those that those ruling classes set up as the boogie men enemies, the social pyramid systems that those rulings classes have made and maintained, for thousands of years, within which the vast majority of people have adapted to live for generation after generation, were always based on being able to back up lies with violence, and so, the accumulating consequences of civilization being controlled by ENFORCED FRAUDS, so much, for so long, MEANS that it is almost impossible to fully imagine what the magnitude of adequate "corrections" could become, after almost everything was being directed through fundamentally fraudulent financial accounting systems.
Guys like Beppe Grillo appear to me to be nothing much more than popular comedians, whose political ideas are meant to soothe and entertain. Of course, more radical truths would not be popularly approved of! However, I will point out that MONEY IS MEASUREMENT BACKED BY MURDER. Therefore, any real change to the monetary system means a matching real change in the murder system that backs that up. The debt controls have always depended upon the death controls. The established systems are based on thousands of years of warfare whose successes were based on backing up deceits with destruction, which then became the foundation for a political economy based on ENFORCED FRAUDS.
While the established debt slavery systems have generated numbers which became debt insanities, I doubt that there is any way to actually resolve those problems without provoking death insanities. Indeed, IF there was any more reasonable and realistic public debates of these issues, then those would address the background that MONEY IS MEASUREMENT BACKED BY MURDER ... However, since the established systems have been able to be socially successful by backing up lies with violence for thousands of years, there are no good grounds to expect that those entrenched systems are going to adapt to the real limits of their continued exponential growth other than through some series of psychotic breakdowns.
Assurances that the established systems could be reformed, but then still continue, are RIDICULOUS BUFFOONERY. What is really happening is that the basic kind of Neolithic Civilization, which has dominated Italy for thousands of years, is reaching some real limits. It is NOT merely about possibly "exiting the Euro" ... It is about the fundamental structure of social pyramid systems being forced to adapt to a finite planet, which problem is EXTREME, because of the ways that the established ENFORCED FRAUDS enable continuing to deliberately ignore those limits, and have done so to the degree that correcting the accumulating consequences of controlling civilization with fundamentally fraudulent financial accounting systems, so much, for so long, is almost incomprehensible, especially since both the ruling classes and most of those they rule over want to continue to ignore all of that!
Truer words were never spoken. The current money system is a pyramid scheme that engulfs all - no form of currency or political independence can keep one independent of the money power for long. We need a new monetary system in which interest is not inherent in the creation of money, and a new economic system that allows for the basic needs of all humans to be provided for on the basis of the tremendous material abundance we enjoy now.
What about all the usd denominated debt fuck boy
Geppe Brillo is an evil joke.
Grillo is a buffon who tries to appeal to illiterate frustrated voters. What he said are the type of statements you would expect from someone trying to convince voters that there's an external enemy (the euro, the Nordic countries, foreign immigrants, whatever... as long as it's not perceived as national), which is the source of Italy's problems. Apparently it isn't a good electoral strategy to be honest with voters and explain them Italy has been sitting on its ass for close to 30 years and hasn't done much for its ultra-slow judicial system, asphixiating tax burden, out of control public expenditure, maddening bureaucracy, gigantic tax evasion, widespread corruption, medieval labor regulations, crippling infrastructure, ineffective education system, omnipresent organized crime, etc... not to mention the lack of ethics of common citizens, a common trait for countries with a Catholic heritage... You can't say these things on tv, too harsh I guess, but a fix for them is what the country badly needs. Exiting the euro will fix exactly none of the aforementioned issues, it will just vaporize €3400Bn of savings hard-earned by Italian folks and free the hands of corrupt deficit-crazy politicians (yes, the same ones who spent public money like drunken sailors in order to give jobs and contracts to friends and family until the euro came along). Believing this populist crap is way more than suicide. Words cannot describe the contempt I have for the gullible people who trust this buffon with their vote. Many present-day Italian politicians are rotten, but this is not a good reason to hand the country to this crackpot wannabe-dictator.
Absolutely correct. Exiting the Euro won't fix none of Italy's problems. Grillo also says inflation is necessary to keep spending. Anotherwords he wants to print money to spend money. Basically instead of paying down bad debts, he wants to create inflation freely so not to pay down debts. Just as exiting the Euro won't help Italy other than not having to cut down spending, but drown everybody's (the economy) purchasing power for bad debts, Greek exit won't help the Greeks either. You are right on point there. If Greece does reinstate the Drachma, very high inflation is guaranteed in Greece as it's a very corrupt and unsound economy with government binge spending is the rage.
It's just as stupid keeping the Euro and staying under the ECB as it is staying under the FED.
But if you're ok with it, go ahead. It seems it's working just fine, isn't it???????
In one ear and out the other for you TNT. Did you notice that Beppe is always finding the "problem" outside of Italy. If everything was just great guns before the Euro I would at least listen to his drivel but such is NOT the case. Yes, yes, that resonates, it's not the fault of Italians, "insert applause".... It's always the same. Magic money will flow and the welfare state can breathe easy. If Italy is an unproductive tax hungry state, what do you think the Lira will be valued at? I agree the Euro sucks but the reason why it has lasted this long is that it gave the welfare state a new lease on life, thier pathetic currency was replaced with some backing from the big boys to the north. IF they bolted and threw down on the Euro they would suffer and bounce back IF they could do the basics and they won't. That's why they are in the Euro to begin with. They are all weak sisters of the south. Grillo is just another statist. He thinks he can print money and fool people into believing it is worth something because he has all the right ideas. Then investors vote with there money and he's just another Mugabe.
"we are not at war with Russia or ISIS, we are at war with the Troika,"
About time. Just follow through.
Thesis, antithesis, sin thesis
seems so simple except devalue a "bit" is probably not completely right... an interesting perspective is that if the weak economies leave the Euro, it makes the Euro get stronger...
Grillo wants Bankitalia out of the Rothshild controll, the new Lira will be printed by the goverment
5) Transition from the Euro to the lira
There’ll probably be a 1 to 1 conversion with the new currency and it will then probably devalue a bit.
..yeah and then a bit more and a bit again, a little bit here and there too
to keep debt-funded socialism afloat when corrupt banksters refuse to finance it any longer
then all points (except 1) go to hell
On Friday afternoon after the banks are closed they will switch to Lira and then Lira will devalue about 50% in few minutes... Just look what happened to EUR/CHF after de-peg. No time for people to react... A big STEAL is coming.
Everybody should take all the cash out of the bank while still possible!!! I just cannot imagine how could ANYBODY still hold ANY currency in Greek banks... a fcuking mystery!
Interesting how NOBODY ever speaks about living within ones means...