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Forum Post: Italians vote out austerity

Posted 6 years ago on Feb. 28, 2013, 8:52 a.m. EST by arturo (3169) from Shanghai, Shanghai
This content is user submitted and not an official statement

What Italy's next government will look like, or even if there will be another Italian government, may not yet be clear after the just-concluded national elections, but that the European Union policy of austerity at all costs was delivered a crushing defeat is not in doubt. Why should that be surprising, when unending austerity is being demanded of the Italian people who have only to look to Greece to see they are being driven towards genocide?

The result triggered displays of outright psychosis, however, from British empire fanatics who insist that "there is no alternative" to the "death spiral" into which their policies have sent Europe. Financial Times commentators called it "catastrophic" that "a majority of Italians issued a clear basta to austerity." Lombard Street Research told the London Guardian the result "is astonishing." Barrons weekly screamed that "Italian Election Results Leave Markets Shocked, Shocked!" A "nasty surprise," an IG Markets analyst told London's Daily Telegraph. Wall Street's Bloomberg wire service complained that "this is the first European election in which voters didn't do the right thing. They gave surprising support to politicians who reject austerity and, in some cases, the euro," adding: "This could become a major problem if it proves contagious."

Markets fell across Europe, meaning that the eurozone crisis is "back." Spain's stock market fell and its yields on its debt rose only slightly less dramatically than Italy's, whose 6-month paper doubled in cost. Spain's Foreign Minister Jose Manuel Garcia-Margallo feared that the bond spread increase "is a jump to nowhere that does not bode well either for Italy or for Europe." His colleague, Economics Minister Luis de Guindos, "hoped" that a stable government would emerge in Italy, because "what is good for Italy is good for Spain."

The Spanish conservative daily, ABC, used the occasion to emphasize that "the Italian vote has sent a significant message to the rest of Europe... It could be said that in Italy the anti-European party won. Around 60% of Italians have shown themselves to be against the line set by Brussels."

Some pro-British ideologues were able to recognize that the veneer of political and economic stability in the eurozone has been ripped off, but refuse to conceive of scrapping their system for one which will work, a Glass-Steagall-anchored system of productive credit. Germany's Economics Minister Philipp Rösler declared absurdly that "there is no alternative to the structural reforms that are already underway and which include consolidating the budget and boosting competitiveness." European Commission President Jose Manuel Barroso did him one better, telling a Reuters summit on the future of the Euro Zone — "with passion," according to Reuters — that he "hope[d] we are not going to follow the temptation to give in to populism" just because of a vote in one member state, since EU austerity had worked in Latvia and was showing results in Portugal, Ireland, Spain, and Greece!

And full-steam ahead on hyperinflation. London's Guardian wrote that bailouts of Italy and Spain — Europe's third- and fourth-largest economies! — are back on the agenda, and Barrons magazine threw out that the Italian results may require "Bernanke to the rescue?"



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[-] 1 points by PublicCurrency (1387) 6 years ago

Austerity to the Oligarchs - take away their incredible ADVANTAGE - the ability to "Create Money out of Thin Air."

[-] 0 points by danya5 (0) 6 years ago

Gotta love economic idiot liberals here. "say no to austerity". Yea...who cares we're broke from decades of unsustainable entitlements. Liberals shriek..."just give us MORE MONEY!!!

Next time you can't afford your car payment, or house payment, or food at the store, because you are BROKE from pissing away all your money, just scream to them..."I am saying NO to austerity". That should fix it.

[-] 1 points by arturo (3169) from Shanghai, Shanghai 6 years ago

The economy, like a business, requires investment in order to grow. Without investment, a business, or an economy will probably fail. So, if anything is "idiotic" it would be to not invest in a business or economy, that is, if you want it to grow.

Some of the best economies that America has ever had were under, not necessarily "liberal" but democratic presidents, such as JFK and FDR. I would call them "conservative" democrats.

Both of these presidents invested heavily in the economy, FDR through the New Deal, which developed our infrastructure and our manufacturing sector, which provided not only a great economy but also allowed us to defeat the Nazis.

JFK invested in the space program which returned ten dollars in terms of economic development for every dollar invested into it. Most of what we call "high technology" today came from JFK's space program

The ideal investment today would be a combination of FDR's and JFK's approaches, that is, investment into "high tech" infrastructure and manufacturing.

This could mean the development of a vast magnetic levitation train network powered by nuclear energy, as well as the development of a manufacturing sector employing the most advanced robotics and laser technologies.

Like the great hydroelectric projects of the past, these kinds of projects would pay for themselves, and then some, over the course of decades, if not centuries to come.

[-] 0 points by OTP (-203) from Tampa, FL 6 years ago

Thats what France thought too.

Stop allowing the elites to preselect the choices.

[-] 0 points by grapes (5232) 6 years ago

The PIGS-R-US (Portugal, Ireland, Greece, Spain, Rome, and United States) horror show has resumed after the intermission. Austerity measures are not mandatory but they are desirable to placate investors so that the debts stay sustainable.

Italy has huge debts that will take a very long time to work off so Italy's most viable course is to keep a lid on the powder keg of debts without lighting the fuse of accelerating interest rates. Continuing moderate budgetary restraints that may drag but not choke the economy are required.

[-] 0 points by bensdad (8977) 6 years ago

The Rs have brilliantly convinced us to debate-
what kind of austerity do we want

in stead of - how do we get MORE money
and how to spend it to stimulate the economy

[-] 1 points by Builder (4202) 6 years ago

Tell the fuckwits to look to Iceland.

Austerity is an imposition; not a necessity.

[-] 1 points by grapes (5232) 6 years ago

Italy's is a vastly more significant economy than Iceland's. I salute Iceland's gutsy way of dealing with its problems but Italy going the same way may have far more consequences (especially to the euro area) due to the size of its economy and the potential financial contagion (Italy's election results have already roiled Spain). Italy has to be more responsible and I may add that the U.S. should be even more so. That is no fun at all but sheer size and connectivity entail responsibility.

[-] 1 points by Builder (4202) 6 years ago

Entail responsibility? To whom?

The debtors? The UN?

The instability of the US (fiscal cliff, debt ceiling ring any bells?) along with the deregulation of the bank criminals is the reason the world's economy is in the shitter. Do you have any real idea of what is going on around you?

[-] 0 points by grapes (5232) 6 years ago

To the world's innocent people. Yes, the debt holders will benefit from the responsibility being taken seriously but that is only secondary. If you truly understand the American way, we should keep our eyes wide shut on the true criminals in favor of not wronging the innocent ones. Fiscal cliff and debt ceiling are not the reasons for the condition of the world's economy. The huge debt overhang (or the effect of the instability of interest rates on the huge debts and the uncertainty stemming from that) is the real reason behind them.

[-] 0 points by Builder (4202) 6 years ago

That's the worst case of double-speak I've ever encountered, Grapes. Did you read that back to yourself before hitting the 'enter' button? or did you assume that it was substantially full enough of bullshit that it might sneak under the radar?

[-] 1 points by grapes (5232) 6 years ago

I corrected it so it can stand as is. Prosecuting the criminals in the U.S. who had caused the Great Recession can now proceed with full steam ahead because systemic risks have subsided. If our government does not take action against the criminals, we will all learn who the true criminals are from the words of our Founding Fathers. American justice is not toothless and has barbs, too. I can condone TARP, stimulus programs, and "printing money out of thin air" but they should be done only with the consent of our branches of government, especially regarding the "printing money."

I wonder: did Germany know something beforehand to repatriate some of its gold? Here we may go again. We have enjoyed the freedom to go zzzzz...

[-] 0 points by GirlFriday (17435) 6 years ago

Um...............did you just say fuckwits?

Welcome to the dark side. We have cookies.

[-] 1 points by Builder (4202) 6 years ago

There's so many of them here (maybe just one) I figure it's best to speak their language.

[-] -1 points by GirlFriday (17435) 6 years ago

If you don't like the government in Italy, wait for the wind to change direction. Really.

Italian Election Results Leave Markets Shocked, Shocked!

Nobody saw that coming with the protests? No one?