Italy Turns Anti-Austerity & European Chaos Fills the Air

In Italy, the new government was sworn in as a pseudo-anti-austerity government which has the blessings of Berlusconi. There was an attempted assassination of politicians by an unemployed Talian, not that he was for austerity, but rather just against politicians. This is the rising trend that is starting to bubble beneath the surface. The ECB is desperately trying to ease a bit hoping to calm the storm in order to support the Merkel in the German elections. She is the last hope for Europe. If she goes, so will austerity and the economic union will start to tear apart.

You must understand that as the yen has declined, Japanese cars are gaining market share against the Germans who are saddled with a high Euro. The conflict is building where industry wants a lower Euro and Merkel wants austerity.

Meanwhile, there is a huge bureaucratic infrastructure of a federalized Europe in place. Brussels would not exist with the Euro. All these political jobs now are tied to the Euro’s survival. Instead of trying to revise it, they are all about maintaining the current status. This is why there will NEVER be a gold standard. Any effort to reform the system is in opposition to maintaining the bureaucratic infrastructure. This is why there is serious talk about letting the banks go and shifting the burden to the depositor. The bankers will not get bailout with another $700 billion check.

Things are never what the seem on the surface.