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OpEdNews Op Eds    H3'ed 5/30/18

Italian Euroskeptic Coalition Party Win Causes Stock Market to Tumble, or Did it?

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Message Jeffrey Rock

News coverage of big swings in the stock market is often accompanied by one liner sound bites informing the audience of the causes of such market swings. Today was no different. The Dows Jones Industrials fell by a whopping 391 points, or 1.58%. The cause for this tumble, we are informed, was the election of a "Euroskeptic" Parliamentary majority in Italy.

About two months ago, in the Italian general election for members of Parliament, no single party won a majority. That is common for European Parliamentary governments. In order for to form a government, appoint a Prime Minister and the Cabinet, a party, or coalition of parties, needs to control a majority of Parliament's seats. Without a majority they can achieve nothing as it is impossible to push through their agenda without the majority of votes.

As is common, two or more parties agree to form a coalition to obtain the necessary majority of seats and therefore votes. This time Lega Nord and Five Star Movement formed a coalition government. Together this coalition now controls 60% of the Italian Parliament's seats. A 60% majority is a very strong majority and effectively enables this coalition to control the votes in Parliament and therefore they can effectively implement their policies.

As a matter of procedure, largely ceremonial, the President of Italy endorses the make-up of the proposed new government ministers submitted by the majority party. In England it is the Queen who performs this ceremonial action, accompanied by great pomp and circumstance. In Italy it is the President. And the President is bound by convention to endorse the selection of the slate of cabinet members that is submitted by the party controlling the majority of seats. The process is quite simple and is always the same.

However, in this case, both parties expressed skepticism that the Euro and European Union are working to the benefit of Italians and the nation of Italy. The basis of this skepticism is the austerity programs that are being forced on debtor nations, such as Greece. Austerity programs are simply the shifting of tax revenues from the nation subjected to this form of economic hardship to private bankers who loaned them too much money for them to pay back. Taking taxes to enrich private bankers almost always means severely cutting social programs that benefit the elderly, the sick, children, education, medical care and the infrastructure. The alternate response is to let the banks suffer the losses of ill-advised loans. Of course, in today's bankster world, this would never be acceptable to the colossally powerful banksters backed by corrupt legislation and aggressive militaries enforcing loan obligations. Nations all throughout the European Union are facing this problem. Like others, Italy's banks and government accepted loans far too large to repay. The lenders knew well what they were doing. To cover the reckless and irresponsible loans, ordinary Italian citizens must shoulder the burden. It is no wonder that Italians do not support this massive shift of their taxes to foreign bankers, already bloated by printing money that is not backed by anything.

Sound familiar? It is. In the US the taxpayers also had to bailout the mega banks from the consequences of their bad loans; banks who print money freely without having anything to back it up. In effect, banks are allowed to print money any time they want, lend it to nations or banks that cannot possibly pay it off, then take taxes or national assets to repay the bad loans. The Greek government actually had to sell the Parthenon, one of Greece's the greatest national public assets, to pay back the greedy bankers in Germany. Worse, in order to stave off being run into immediate bankruptcy, Greece was forced to take out yet more loans in the short term. When you visit the Parthenon, your entry fee is going to a private German bankster.

When the coalition parties in Italy submitted their choice for Italy's cabinet, one of the proposed cabinet members was Paolo Savona. He was named to head the Ministry of the Economy. Savona is a very distinguished and capable minister and previously served in Italy's government in a ministerial role.

Enter President Sergio Mattarella, who is in the pocket of the European Unity headquarters in Brussels. After two months of uncertainty he decided, against all legal convention, in a stunning move, that he would not accept Savona, claiming his Euroskeptic stance was 'not a good match' for Italy's government. He therefore refused to endorse Savona for Minster of the Economy. Without precedent in Italian history, this was a bald faced maneuver engineered by Mattarella's handlers in Brussels to steal Italy's democratic choice for government. One can only imagine the immense pressure to which Mattarella was subjected to make this astonishing decision.

To make matters car worse and really slap the Italian electorate in the face, Mattarella appointed an interim Prime Minister to run the country and charged him with coming up with an 'acceptable' cabinet. His choice was none other than Cottarelli, a former IMF director. As anyone knows who is paying attention, the IMF is one of the biggest loan criminals in the world. The IMF is regularly involved in over-lending to small nations and then extracting their repayments by assuming ownership of national assets or taking their taxes and causing austerity programs to be implemented to pay for it. This is one of the oldest bankster tricks in the business. In fact, it is called predator lending and used to be outlawed. It is used by the Mafia to put people into permanent indentured loan slavery.

With the appointment of Cottarelli, there must have been high sigh of relief in Brussels. At the very least this move, no matter how corrupt it was, should have had a stabilizing effect on the European and US stock markets that for two months have been in jittery with the possibility of another nation exiting from the EU.

Now back to today's news and the reason for the sudden tumble in the Dow Jones stock market of 391 points. The news of this drop was accompanied with news editorializing, as is common today. After all, we are not allowed to draw our own opinions, we have to be told what to think.

What more convenient way to divert the attention from the true illness in the Western nations' economies than to reverse the logic and blame the Euroskeptic Italian parties for this stock market loss? Most Americans swallow it hook-line-and-sinker as they almost always do. Americans are almost incapable of asking questions and challenging what the mainstream news outlets pump into their brains.

More likely the causes of such a slump are many and some quite complex. For example, US unemployment, regardless of what the fake statistics tell us, is higher than at any time except the Great Depression (see shadowstats.com).

Or it could be the massive quantitative easing, another euphemism for printing up money with nothing to back it up. The Fed has been printing about $80B per month for many years now using their crooked money printing press. This money has been used to pump up the stock market to fantastically unrealistic and excessively high stock prices. There is no question that the stock market is experiencing a massive bubble that can only pop sooner or later. We have seen the lack of stability all year in the US stock markets. But best to blame it on a Euroskeptic public in Italy. What better way to foment fear of exiting from the Euro than to use this as an example of the horrible consequences that will be faced if any nation leaves the EU. Keep those Italians in line and let this be a warning to any other nations who harbor independent ideas.

So the fakenomics, the fake news, the fake banksters and the fake EU ministers are pumping out lies and misleading statement that only serve their greedy purposes. When the reader hears again any supposed reason for stock market fluctuations remember: the news organizations that make up this fakery actually have no idea whatsoever of what drives these economic and financial changes. One does not have to strain one's memory to recall how the financial talking heads, leading up to the economic collapse of 2008, repeated incessantly stories that the economy and stock markets were fine and in good health. They incorrectly predicted that the slump in 2008 would be a 'soft landing,' a manageable 'market adjustment' and that all markets would be just fine in the medium term. How many lies will these organizations and crooks tell us before we stop believing any of their self-serving propaganda

 

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Jeffrey Rock Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Forty years practicing economist. Degree from Antioch College in 1976, studied in Universite de Montpellier, France and high school in Somerset, England for four years. Diehard progressive, true leftist, anti-warmonger, market-socialist. (more...)
 

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Italian Euroskeptic Coalition Party Win Causes Stock Market to Tumble, or Did it?