Mass Migration and Bank Weakness Threaten The Italian Economy
Politics / Italy Dec 06, 2016 - 12:18 PM GMTBy: Jeff_Berwick
In the wake of the Italian referendum results and Matteo Renzi’s subsequent resignation, the level of uncertainty in Italy continues to grow both inside the country and among foreign investors.
As many expected, Banco Monte dei Paschi’s shares fell sharply on the news of Renzi’s defeat. And markets reacted in risk off fashion much like they did post-Brexit, with European stocks, US futures and the Euro all rising in response to the news. And it’s likely to stay that way until some sense of calm returns to the market.
The destabilization of the Italian economy is occurring on several fronts however. Part of this premeditated effort is being helped along by the likes of a few NGOs who have been making a concerted effort to smuggle immigrants into Europe.
Based on research and some investigating done using MarineTraffic.com, analysts at Gefira have been able to deduce that under the pretense of “rescuing people” the Italian coast guard has been assisting the mafia, NGOs and smugglers to ship thousands of illegal immigrants into Italy and across Europe.
The 15 ships of interest are either leased or owned by the NGOs and after being observed for some time, analysts have seen them continually leaving Italian ports to make their way 260 miles south to the Libyan coast. The ships are being directed to the supposed “rescue spot” which is only 60 miles away from the nearby port of Zarzis in Tunisia, however, rather than utilizing that port, the ships make the same 260 mile journey back across the Mediterranean to Italy to drop off their human cargo.
The real intentions of the organizations involved are not totally clear, but they are likely being used as tools of the elites in the same manner George Soros for example helped to bus in protestors to incite chaos and riots across America to divide the populus. The influx of African migrants into Italy and Europe is probably just another classic case of divide and conquer.
These actions may be politically driven, however, whether or not the NGOs think they are acting benevolently on behalf of these immigrants or not, the fact remains that what they are doing is illegal and these North Africans are not eligible to be granted asylum – yet will probably end up on both the streets of Rome and Paris, both of which are accumulating garbage because of the number of people, all men, sleeping and living on the roads.
Not to mention, countless riots.
Getting back to the banking consequences of Renzi’s resignation, Monte de Paschi’s shares initially fell 10% before ending the day down around 4%. The cost of borrowing increased for the Italian government and public fear has dramatically increased based on concerns that Monte de Paschi may not be bailed out this time.
According to an article put out by the Guardian, it appears as if the likelihood of a capital injection from private investors is diminishing for Monte de Paschi. It is likely that even if the state steps in to try to bail-out the failing bank it will be after significant damage has already been done. The way things are structured in Italy only allows the state to intervene after savers and bondholders have taken the brunt of the losses.
And so the prospect of collapse grows. The Italian people are nervous – as they should be – considering the magnitude of the potential crisis that could be set off by the failure of a bank such as Monte de Paschi, Italy’s third largest bank. It’s also worth mentioning that of the 51 banking institutions subject to the annual stress test assessment which occurred in July, Monte de Paschi was ranked the weakest.
If you read the mainstream media fake news articles about Monte de Paschi, the general tone seems to be that it is the fault of the Italian voters for “plunging the Italian government into crisis” after they turned down Renzi’s proposed constitutional changes by voting against him.
In actuality, this was probably part of the plan from the get go. If and when things start to get really bad in Italy and across Europe, events like this and Brexit will be pointed to as an example of how people cannot make decisions for themselves and require a supranational, global governing, big brother.
To say things are unstable within Europe is an understatement. Not only are Italian Banks hanging by a thread, but Deutsche bank, who was just recently ordered to pay a $60 million fine after being accused of rigging gold-prices for their own benefit, also just announced that as part of a new restructuring program, they are cutting off around 3,400 trading clients.
Needless to say Italy is just as threatened by a German bank failure because of the two countries interconnectedness.
With so much doubt looming about the outcome of these problems in Italy and Europe it is wise to protect your assets. Europeans, in particular, should be running, not walking, to get their assets outside of the banking system.
At TDV we can help you to position your investments outside the monetary system in things such as precious metals and cryptocurrencies.
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Anarcho-Capitalist. Libertarian. Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.
© 2016 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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