Eurocracy

All roads continue to lead to Berlin, the powerhouse that runs and dictates Europe’s future. In this case, Berlin is spearheading an effort to keep Italy subjugated before an economic crisis (it’s already capitalizing off of) gets politically out of hand as it did in Greece, which is now a German vassal state. It’s Germany’s goal to create a United States of Europe and economic levers are but one tactic in harmonizing Europe how it sees fit in achieving that end.

 

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ROME/BERLIN (Own report) – Following massive complaints from Germany, Italy’s President Sergio Mattarella blocked a euroskeptic from becoming his country’s finance minister, appointing an IMF man – favored by Berlin – to be prime minister. The democratically elected 5-Star Movement (M5S) and the far-right Lega Nord majority’s opportunity to form a government was thereby denied. Euroskeptic Paolo Savona, a renowned career economist, was rejected because he could not have insured the maintenance of the EU’s common currency. Under his administration, resistance to Berlin’s austerity dictate could have been expected, whereas the newly appointed Prime Minster Carlo Cottarelli passed the test a few years ago as the Rome government’s austerity commissioner (“Mr. Scissors”). Savona’s nomination is the result of Italy’s growing euroskepticism, which, in the meantime, is also shared by other economists. “Germany profits, Italy loses” through the introduction of the euro, concludes Savona’s alternative candidate to the post of finance minister.

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Detroit’s Default May Spark U.S. Death Spiral of Debt

Debt is deadly, and it’s made even worse with rising interest rates that can prevent you from eliminating the load. What happens with rising interest rates is that more of the payments go toward the interest and less to the principal. In fact, it’s what I call a death spiral of debt that worsens as rates move higher.

When individuals face excessive debt, often the solution is to reduce spending and adhere to a strict repayment program. Continue reading