Tag Archives: Italy

The New York Times Editorial Board’s Incoherence on Italian Austerity and the Euro

William K. Black
June 2, 2018     Bloomington, MN

(Third in a series of articles on Italy, Austerity, and the euro)

The New York Times’ editorial board published a May 29, 2018 editorial about Italy’s ongoing political and financial issues that praised austerity in Italy.  The board cheered the anti-democratic appointment of “Carlo Cottarelli, a solidly pro-Europe and pro-austerity economist and former official of the International Monetary Fund, to form a nonelected government.”  In particular, the board expressed its horror that Italy (which continues to have unemployment levels one expects to find in a severe recession) would have adopted “grandiose spending plans” (fiscal stimulus) if the Italian establishment had not sought to block the results of the recent Italian election.

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The EU Commission’s In-House Bigot Invites Financiers to Extort Italian Voters

By William K. Black
May 30, 2018     Bloomington, MN

The European Union’s (EU) leadership continues to prove our family rule that it is impossible to compete with unintentional self-parody.  “EU leadership” is an oxymoron, largely composed of regular morons.  Consider only two examples — European Commission (EC) President Jean-Claude Juncker and Commissioner and Budget and Human Resources Minister (one of the EC’s most powerful leadership positions) Günther Oettinger.

Juncker heads the EC because he led the most infamous EU tax giveaway to wealthy corporations as Luxembourg’s finance minister and then prime minister.  Whistleblowers and the International Consortium of Investigative Journalists (ICIJ) eventually exposed the fact that for over a decade the wealthiest companies in the world created front companies in Luxembourg and met secretly with the finance minister to negotiate secret sweetheart deals allowing the companies to pretend to earn their income in Luxembourg – and to pay obscenely low tax rates.  The secret deals “allowed some of them to pay effective tax rates of less than 1 percent on profits shuffled into Luxembourg.”  Luxembourg is so tiny that even at these ridiculously low tax rates the covert deals made the country wealthy (at the direct expense of the public sectors of other EU nations and the United States).  Juncker’s eagerness to aid plutocrats made him the EU’s longest-serving leader as Luxembourg’s PM until a different scandal brought him down.  These sweetheart tax scandals led, not prevented, Juncker’s elevation to run the EC.  In response to the exposure of the scandal, Luxembourg: greatly increased the number of sweetheart deals, prosecuted the whistleblowers and the investigative journalists, and took no action against Luxembourg’s “let’s make a deal” leaders or the plutocrats (which included Koch Industries).

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The New York Times Praises the Italian Establishment’s Economic Illiteracy and Assault on Democracy

By William K. Black
May 29, 2018     Bloomington, MN

Italy’s establishment has just revealed its truest beliefs and priorities.  The context was the two parties that received the most votes in the last election forming a coalition government.  The two parties seeking to form a coalition government won a majority of the seats in both houses of Italy’s parliament in the most recent election.  The New York Times reported many of the key facts, but missed the key analytics.

Italy’s populists seethed and the European Union sighed with temporary relief on Sunday night after an anti-establishment alliance poised to govern the bloc’s fourth-largest economy imploded at the last minute amid concerns that it was planning to sneak out the back door of the eurozone.

Less than a week after Italy’s populist parties, the anti-establishment Five Star Movement and the anti-immigrant League, ironed out their policy differences and jubilantly received a mandate to form a government that they said would usher in a new era in Italian and European history, its designated prime minister announced on Sunday evening that he had failed to form a government.

Both paragraphs are lies.  Bizarrely, the rest of the article demonstrates both lies.  I do not support key aspects of either party’s platforms, so I am not writing as a disgruntled supporter.  I start with the NYT’s second lie, for exposing it also exposes the first lie.  Giuseppe Conte, the “designated prime minister,” did not “announce … that he had failed to form a government.”  He announced an undisputed fact – a political rival, President Sergio Mattarella, refused to allow the two parties to form a coalition government because he objected to their selection of Paolo Savona as their economics minister.

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Matteo Renzi Puts the Lie to “There is not alternative” (TINA) to Austerity

By William K. Black

In a recent column I responded to a conservative scholar’s (Victor David Hanson) claim that U.S. “employment rates for college graduates are dismal” by showing that the employment rate for college graduates seeking employment was 96.8% – and rising.

Employment rates for recent college graduates are far worse than “dismal” in the periphery of Europe because the EU troika (the ECB, the EU Commission, and the IMF) have inflicted austerity on these nations.  This produced a gratuitous second Great Recession in the Eurozone as a whole, but it also caused Great Depression levels of unemployment in Spain, Greece, and Italy.  Those three nations have over 100 million in total population – roughly one-third of the eurozone’s total population.  College graduates in these nations have unemployment rates ten times greater than in the U.S.  (Hanson is a big fan of austerity, so he managed to get everything – the facts and the cause – reversed in his fable.)

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The Troika Attack Italy for Refusing to Bleed the Economy

By William K. Black

The title to the latest Wall Street Journal article on Italy is “EU Tells Italy to Adopt More Austerity Measures.”  It’s an old, stupid remedy.  If you hit your carburetor with a hammer and it doesn’t fix it – hit it harder and more often.  Italy is the troika’s carburetor and austerity is its hammer.

The Troika’s Response to Renzi’s Electoral Success: Crush Him

The general context of the troika’s latest act of depravity is particularly interesting.  The troika consists of the European Commission, the IMF, and the ECB.  The troika’s insistence that the periphery inflict austerity caused not simply a gratuitous second recession through much of the EU but a Second Great Depression in Italy, Spain, and Greece.  One-third of the eurozone’s population – 100 million people – was kicked into a Great Depression due to the troika’s long-falsified economic dogmas.

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Dr. Draghi Prescribes a Dose of Deflation for Spain as his latest Quack Cure

By William K. Black

I posted an article earlier today on the demented memes about eurozone deflation U.S. financial journalists parrot after talking to Brussels’ troika-trolls.  That article used the latest AP story to illustrate my points.

I promised a second installment that used a New York Times article (not sourced to AP) that was posted last night to illustrate the meme.  The NYT article is simultaneously more complex and more alarmingly analytically awful than the AP piece. 

This morning brought two April Fools’ Day articles about France and Italy that are also about the gratuitous second Great Recession (in the core) and the second Great Depression (in Spain, Italy, and Greece) inflicted by the troika’s infamous austerity dogmas.  This article discusses one sentence from last night’s NYT piece that notes the position on deflation of the head of the European Central Bank (Mario Draghi).  The NYT article misses the significance of the passage.  I show how the passage, particularly when read in conjunction with quotations from Draghi’s fellow troika-trolls in the articles about France and Italy, reveals the troika’s fanatical devotion to failed dogmas and the clueless nature of U.S. financial journalists covering the eurozone who continue to treat the trolls like savants.

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Spain, Italy, and France: Economic Failures that Will Soon be Political Failures

By William K. Black

The troika has consigned one-third of the Eurozone to a gratuitous Great Depression

I have written several articles recently describing Spain’s continuing Great Depression levels of unemployment and the absurdity of the troika’s policies with regard to the “threat” presented by “deflation.”  The troika consists of the European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF).

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Warren Mosler’s talk in Chianciano, Italy, January 11, 2014

By Alexandria J E Angus

Warren Mosler gave this talk in Chianciano, Italy, on January 11, 2014 at the Chianciano Conference entitled Oltre L’Euro: La Sinistra. La Crisi. L’Alternativa. In English: Beyond The Euro: The Left. The Crisis. The Alternative [Google translation]. The video is embedded below, but you have to listen to a realtime translation in Italian, which doubles the listening time. I thought this talk important enough to transcribe, if not deliciously subversive on the part of Warren Mosler who offers Italians a way to save their economy. The transcription follows below the video.

Mosler describes how Italy (or any of the 17 EU countries that use the Euro) can leave the European Union safely if the EU persists, as it insists on doing, in impoverishing their country and citizens.

The subheads in blue are mine, not Mosler’s, and are designed to assist reading. Some terms Mosler refers to in the body text relate specifically to the Italian economy, and I can’t identify them because I don’t know their Italian names.

Enjoy.

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Why Italy’s Election Has Caused Global Markets to Crater

NEP’s William Black appears on Daily Ticker with Henry Blodget. The election in Italy moved markets around the world. Blodget gets an explanation from Bill why Italy has such an impact.

You can view the episode at this link. (Sorry no embedding Yahoo videos).

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