Things are afoot in Italy. (A minor part of why I bought Italian wine, but it was in my mind at the time ;-)
Seems the “Right Wing” Government wants to abolish the Central Bank, toss the rascals in prison, and haul the gold back to The People’s Vault somewhere.
As Gail likes to rail against central bankers (and I’m slowly coming around to that POV… despite my Keynesian training…) it looks like she just might get a test case for her beliefs. Italy.
“EPS” is traditionally Earnings Per Share. That does, indirectly, drive markets, but it isn’t “markets”. I’ve bolded bits.
Salvini Calls For Elimination Of Italy’s Central Bank, “Prison Time For Fraudsters”
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by Tyler Durden
Sun, 02/10/2019 – 19:56
On Friday, in a moment of predictive insight, Bank of America correctly warned that the greatest threat to EPS – i.e., markets – in the next 3 years “is an acceleration of global populism via taxation, regulation & government intervention.” Just one day later, this warning to the financial establishment was starkly manifest in that ground zero for Europe’s populist revolt, Italy, where the country’s coalition government hinted at where the global populist wave is headed next when he slammed the country’s central bank leadership and stock market regulator, escalating its attacks on establishment figures ahead of the European parliamentary vote in May.
Matteo Salvini, the outspoken head of the anti-immigrant League party, said the Bank of Italy and Consob, the country’s stock market regulator, should be “reduced to zero, more than changing one or two people, reduced to zero”, or in other words eliminated, and that “fraudsters” who inflicted losses on Italian savers should “end up in prison for a long time.”
Saturday’s latest verbal crackdown targeting of the Bank of Italy comes after central bankers issued more pessimistic economic growth forecasts for this year compared with the numbers underpinning the government’s budget. As we reported last month, Italy entered into a technical recession in the second half of 2018, with the Bank of Italy cutting its GDP forecast for 2019 to 0.6% compared with a 1% forecast made by the government. At the same time, the European Commission slashed Italy’s GDP forecast from 1.2% to a borderline recessionary 0.2% for the full year, hinting that Italy’s budget deficit forecast will not only be missed, but could re-emerge as a focal point of renewed tensions between Rome and Brussels in the coming months.
As previously reported, in the latest anti-establishment shot across the bow, several days ago the government nominated Paolo Savona, a veteran economist and prominent Eurosceptic who had previously served as minister for European affairs, as the new president of Consob. Savona was last year been blocked as the coalition’s first choice as economy minister by Italian president Sergio Mattarella, following strong pressure from Brussels and a revolt in the Italian bond market.
I’d link directly to the Financial Times article they reference, but the FT is a bit of a PITA about letting you read articles and quote text, so no, no linky for the FT.
Salvini Proposes Seizing Control Of Italy’s Gold Reserves From Central Bank
Profile picture for user Tyler Durden
by Tyler Durden
Mon, 02/11/2019 – 20:11
Italy’s populist de facto leader Matteo Salvini seems set on shaking Europe’s financial establishment to the core.
One day after the Italian deputy prime minister and leader of the League party, called for the elimination of Italy’s central bank and the country’s financial regulator, Consob, saying the two institutions should be “reduced to zero, more than changing one or two people, reduced to zero”, or in other words eliminated, and that “fraudsters” who inflicted losses on Italian savers should “end up in prison for a long time”, Salvini prompted fresh shocked gasps in Brussels and Frankfurt when he raised the possibility of seizing Italy’s massive gold reserves away from the country’s central bank.
“The gold is the property of the Italian people, not of anyone else,” Salvini said in comments to reporters on Monday, according to the FT.
The controversial comments, which were seen as threatening the “independence” of the Italian central bank, whose one-time head was none other than Mario Draghi, prompted Giovanni Tria, Italy’s economy minister, to defend the independence of the central bank.
Earlier in the day, Italy’s populists called on lawmakers to pass legislation stating that its gold holdings belong to the state, Bloomberg reported.
The gold ownership bill presented by euroskeptic lawmaker Claudio Borghi of the League adds to an already tense relationship between the Bank of Italy and the coalition government. It’s also sparked criticism from opposition politicians, and some national media argue that it may allow the government to raid the gold reserves to fund spending promises.
Borghi has rejected the accusation and said he’ll ensure Parliament has ultimate power. His concern is that ambiguity of ownership means that a victorious legal action against the central bank — for inadequate supervision, for example — leaves open the possibility of a claimant getting compensation in gold.
If Salvini is indeed serious to monetize its gold, it would bring in a healthy chunk of change for Italy’s populist leadership: the Bank of Italy has the third-largest central bank holding of gold reserves in the world after the US and Germany, owning 2,452 tonnes according to the World Gold Council, which at today’s prices would amount to just over $103 billion.
Of course, even that amount pales in comparison with Italy’s total debt load of €2.35 trillion, which would suggest that if Salvini is indeed focused on tearing up the legacy constraints of his country with some financial establishment, the next step would be declaring the country’s sovereign debt “odious” or null and void, followed ultimately by the Italeave, and the the return of the Italian lira.
So looks like not just the UK in play and France in a mess, but Italy stirring the Bankers Pots of Gold too… ;-)
My but it’s fun to watch!
09:39 13.02.2019(updated 09:40 13.02.2019) Get short URL
Italian Deputy Prime Minister Matteo Salvini, who also heads the right-wing Lega Party, has called for taking control of Italy’s gold reserves away from the country’s central bank. Sputnik has discussed the possible reasons behind the proposal and its prospects with Andrea Trunzo, an economist based in the UK.
Sputnik: What is behind Matteo Salvini’s call to remove Italy’s gold reserves from Brussels?
Andrea Trunzo: There are a couple of possible interpretations. The first is that Salvini is voicing the concerns of some of his MPs, those eurosceptics that are trying to prevent a situation where any sort of residual national control over the gold reserves may be lost in the future.
The second is that this debate on the gold reserves is actually part of a broader and more domestic debate on the role of Bank of Italy, which — reportedly — they perceive as unaccountable, ineffective and having a questionable status.
12:31 12.02.2019(updated 12:34 12.02.2019) Get short URL
Earlier this week, Italian Deputy Prime Minister and Interior Minister Matteo Salvini called for the removal of the leadership of the Bank of Italy because they failed to prevent the country’s banking crisis.
Italian Deputy Prime Minister Matteo Salvini, who also heads the right-wing Lega Party, has called for taking control of Italy’s gold reserves away from the country’s central bank.
“The gold is the property of the Italian people, not of anyone else,” Salvini underscored.
READ MORE: Salvini Says Italy’s Deficit Will Grow in 2019, Even If Budget Rejected by EU
The comments came after he insisted that the management of the Bank of Italy should be “completely cleared out” because they failed to avert the country’s banking crisis.
“We are here because those who should have supervised didn’t supervise,” Salvini said, adding that “fraudsters” who inflicted losses on Italian savers should “end up in prison for a long time”.
So there’s some confirmation of the story.
It looks like the Rothschild’s set up the Central Banking system in many countries around the world. At the core of it is something I need to explore more. A Nation issues bonds to the Central Bank, who then issue currency. The Government must pay interest on those bonds that can only be done by using currency, so must issue more bonds… Rinse and repeat. It looks to me at first glance like there is an in-built escalator from which there is no escape. I need to spend an afternoon on a “Dig Here!” into that to be sure, but at first glance it looks a bit SCAM-ish.
Then there is the assertion that JFK was killed not just for the Bay Of Pigs and breaking a promise to The Italian Mafia (as did his Irish forefathers in the Irish Mafia – thus the Valentine’s Day Massacre) but also for having the audacity to print Treasury Notes, bypassing the Central Bank. In theory, JFK could have put The Fed out of business by doing that and broken the debt escalator.
So at present we’ve got one Giant Can Of Worms being opened in Italy. It is happening in the context of Supreme Globalist Power and Growing Nationalist Backlash, and with a history of probable “Assassinations for effect”.
Yes, I’m open to “Conspiracy Theory” on this one. Why? Because “conspiracy to FOO” is one of THE most prosecuted crimes in the west and because we have massive overwhelming evidence of Conspiracy FACT in the Soros Organizations, the UN “commissions” and “agenda”, and the Democratic Party of the USA (not to mention the Climategate Emails and more). There IS a point where it stops being theory and starts being fact, and for those it is way in the rear view mirror.
So is it time to start taking “3rd Party Life Insurance” out on Salvini?
Or time to start shorting Rockefeller Futures?
I have no idea.
What is clear, though, is that a wide spread Populist Nationalist Movement has started; that whole “eye opening” thing, and they do not like at all what they have seen. Macron needs to remember “The French Haircut”, just as the Dimocrats need to remember that threatening the Gun Owners Of America is a Very Bad Idea. America has more guns than people that are in the statistics so it’s pretty likely that there are a lot of pro-liberty voters…
The Rockefellers played a quiet slow hand for decades and got away with it. Soros in league with the Socialist / Communist folks went for aggressive usurpation of national authority. It worked for a couple of decades… Has Soros reached a “Jump The Shark” moment that will take down the Rockefeller system too? One can only hope so. And buy popcorn futures ;-)