A euro crisis and contagion is almost certain in 2017, Irish economist and writer David McWilliams has warned:
“It is almost certain that there will be another euro crisis in 2017. The last time we had a euro crisis, the focus of attention was Greece; today the vortex is Italy.
Italy is not Greece. Italy is the third-largest economy in the Eurozone. Italy is the second-largest manufacturing nation in the EU after Germany. Italy is the largest debtor in Europe. Continue reading
As the UK gears up for a historic vote on whether to leave the EU in just nine days, it has been claimed that a series of bizarre and costly decisions are being shelved until after the poll.
The issues have been highlighted by MEP Daniel Hannan, author of Why Vote Leave, and detail weird and occasionally sinister proposals, which have apparently been put on the back burner until after the vote. Continue reading
Just over a month ago, on March 1, the Austrian financial world was shaken by news that the first bank bail-in following Cyprus would not take place in Greece as many had expected, but in Vienna: judged by the rating agencies to be one of the safest places in the world, where the bad bank that was created to help with the wind-down of the defunct Austrian lender Hypo Alpe Aldria, would itself be unwound, with creditors suffering the bulk of the pain in the form of the first official “core Eurozone” bail in.
Truly a “black swan” event.
This, together with the revelation of the sordid state of Heta’s books which was only revealed after the bail-in fact, was certainly a shock to bondholders, who had been treating Heta bonds as money good as recently as last summer, only to face losses as large as 50%.
The Fourth Reich has taken over Europe, according to Il Giornale, a right-wing Italian newspaper. In a headlining story last Friday, Alessandro Sallusti, the editor in chief for the paper, asserted that Italy is “no longer in Europe. It is in the Fourth Reich.”
These bold comments come in the wake of recent non-productive talks between Italy, Spain and the European Central Bank (ecb) over fiscal aid for the two struggling members of the eurozone. ecb President Mario Draghi has put pressure on Italy and Spain to formally apply for aid from the bank before any steps are taken to provide assistance. If either nation were to make a formal request, strict conditions would be enforced by the ecb in exchange for buying its bonds—strict conditions that would essentially put either nation at the mercy of the German-influenced ecb.
Germany is not making many friends at the moment, but frankly, it doesn’t need to. The euro is crumbling, Italy is in trouble, and there is only one place Europe can turn to. If Germany chooses to bail out indebted Europe, expect Germany to exact its full pound of flesh in return—and that means economic, if not more political, control. Although a crumbling Europe is a negative for Germany’s economy, Germany is taking full advantage of the crisis to consolidate its control over the continent.
Full article: ‘The Fourth Reich’ Has Arrived (The Trumpet)