Growth at What Cost? Italy's New Government and the Future of the EU
Slowly but surely, Italians have responded to their being inundated with immigrants, most, if not all, of whom are Muslim. That response garnered the great "TSK-TSK" from the pooh-bahs in Brussels and their minions in the EU. Those who would dare question the wisdom of taking in hundreds of thousands of foreigners with whom they shared nothing in common either in ethnicity, culture, social norms or religion were painted with the usual broadbrush of bigotry, highlighted by the inevitable "anti-immigrant" and "Islamophobic." Having stood accused and condemned, the people - to the shock of the political establishment - did not back down. And so, to the shock and dismay of the old guard, a new government was elected - a combination of two parties otherwise disparate in beliefs, but united in a rejection of the existing order. And that government is now flexing it's populist muscles.
Interestingly, the immigrant issue appears to have now been shoved to the background. Maybe the thinking is that those who pushed back have gained the upper hand and there's no longer a way to beat them down with intimidation. (Heck, even the Pope weighed in against them - to no apparent effect.) So now it's the economy. With the twin hammer of leaving the EU and/or dumping the Euro now creating a sword of Damocles over their heads, their erstwhile masters have now brought out the big guns of slowing growth, even economic catastrophe. The ignorant little people don't know what they're getting themselves into, and, should they not back down, they'll be in for a life of misery.
When the Italian bond market began spinning out of control last week, the financial media kicked into high gear. Italians need to pay attention to their banks and bonholders. After all, these provide the backbone of their economy. And they don't want their economy to sink into a financial hole, do they? Given the chronically slow growth of the Italian economy for as long as the eye can see, a financial disruption could only be an arrow to the heart of that already weak economy.
While we don't have a finger directly on the pulse of the Italian people, from what we've been able to ascertain, they're not shaking in their boots. Besides, given the choice is to go along with the open border policy that has swollen the ranks of uninvited and unwanted immigrants or suffer a slowing of economic growth, can you possibly imagine choosing the latter? The political and financial elite may not understand such a choice, but, then again, they don't live like the little people. Chances are they don't really understand how the little people really think and feel. It may very well be that those little people - the same ones who voted the establishment out - have weighed the current and potential consequences of uncontrolled, unlimited immigration against the prospects of growth and made their choice. So no matter how many ways the bankers, bond-holders, establishment politicians and EU officials attempt to illustrate the potential consequences of the new goverment's policies, they may be beating a dead horse.
However, don't expect the elite to back down. After all, they've got everything at stake here - all their wealth and privileges are likely tied up with the EU and the Euro as currency. Look at what they've accomplished so far in the face of the "Brexit" vote in the UK. So far the sand they've thrown into the gears has resulted in a long, drawn-out struggle to kick start the separation from the EU. There's even talk of a second vote that could conceivably overturn the first. Of course, you could point to countries like Austria and Hungary, where populist governments have taken power, which governments have already taken steps to reverse the immigrant invasions, as well as the influence of financial elites. Remember, though, that such countries don't have economies approaching the size of Italy's. So what they do will more effect their own citizens rather than the mighty EU. Italy, like the UK, is a different story.
Then again, if the recent public celebrations of the founding of the Italian Republic are any indication, the elites may have a fight on their hands.
Interestingly, the immigrant issue appears to have now been shoved to the background. Maybe the thinking is that those who pushed back have gained the upper hand and there's no longer a way to beat them down with intimidation. (Heck, even the Pope weighed in against them - to no apparent effect.) So now it's the economy. With the twin hammer of leaving the EU and/or dumping the Euro now creating a sword of Damocles over their heads, their erstwhile masters have now brought out the big guns of slowing growth, even economic catastrophe. The ignorant little people don't know what they're getting themselves into, and, should they not back down, they'll be in for a life of misery.
When the Italian bond market began spinning out of control last week, the financial media kicked into high gear. Italians need to pay attention to their banks and bonholders. After all, these provide the backbone of their economy. And they don't want their economy to sink into a financial hole, do they? Given the chronically slow growth of the Italian economy for as long as the eye can see, a financial disruption could only be an arrow to the heart of that already weak economy.
While we don't have a finger directly on the pulse of the Italian people, from what we've been able to ascertain, they're not shaking in their boots. Besides, given the choice is to go along with the open border policy that has swollen the ranks of uninvited and unwanted immigrants or suffer a slowing of economic growth, can you possibly imagine choosing the latter? The political and financial elite may not understand such a choice, but, then again, they don't live like the little people. Chances are they don't really understand how the little people really think and feel. It may very well be that those little people - the same ones who voted the establishment out - have weighed the current and potential consequences of uncontrolled, unlimited immigration against the prospects of growth and made their choice. So no matter how many ways the bankers, bond-holders, establishment politicians and EU officials attempt to illustrate the potential consequences of the new goverment's policies, they may be beating a dead horse.
However, don't expect the elite to back down. After all, they've got everything at stake here - all their wealth and privileges are likely tied up with the EU and the Euro as currency. Look at what they've accomplished so far in the face of the "Brexit" vote in the UK. So far the sand they've thrown into the gears has resulted in a long, drawn-out struggle to kick start the separation from the EU. There's even talk of a second vote that could conceivably overturn the first. Of course, you could point to countries like Austria and Hungary, where populist governments have taken power, which governments have already taken steps to reverse the immigrant invasions, as well as the influence of financial elites. Remember, though, that such countries don't have economies approaching the size of Italy's. So what they do will more effect their own citizens rather than the mighty EU. Italy, like the UK, is a different story.
Then again, if the recent public celebrations of the founding of the Italian Republic are any indication, the elites may have a fight on their hands.
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