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Why the Italian government can’t resolve the problems of Mediterranean smuggling boats? Because it doesn’t want to

Why the Italian government can’t resolve the problems of Mediterranean smuggling boats? Because it doesn’t want to
photo Giovanni Domenico Tiepolo – The Procession of the Trojan Horse in Troy
The rule of law is often invoked by as a Western value that “populist” movements want to destroy, yet the establishment’s own governments have long suspended that very same rule of law when it comes to immigration. The most evident example of this is the immigration policy started by the Italian Letta government in 2013 and continued since then under the Renzi government.
In October 2013, the Letta government, facing waves of refugees escaping the chaos of Western backed-Arab Spring in Libya, which later transpired as nothing more than insurgencies of Islamic radical groups, launched the operation “Mare Nostrum” or “Our Sea”, which consisted in the use of the Italian navy near Libyan waters to rescue asylum seekers from the African coast.

The nationalisation of Ukraine PrivatBank: how two oligarchs bankrupted a nation

The nationalisation of Ukraine PrivatBank: how two oligarchs bankrupted a nation
photo shutterstock/maxstockphoto
On the morning of 19 December Ukrainians got up to learn about a momentous economic decision: the biggest Ukrainian bank, PrivatBank, had just been nationalised after its two owners used depositors’ money to build a business empire and distributed the money among Jewish organisations in Europe. Why did it have to happen?

A look into the past. PrivatBank used to be Ukraine’s largest bank with 20% of the banking sector and $53bn assets.1)UPDATE: Government nationalizes PrivatBank, guarantees deposits KyivPost 2016-12-18Its history is quite unusual for the country’s realities because it:

  • was one of the first private banks (formed in 1992);
  • was the first bank to introduce plastic cards and ATMs;
  • was the first Ukrainian financial institution to receive an international rating (Thomson BankWatch International Rating Agency, Fitch IBCA);
  • was the first Ukrainian bank to have opened its International Banking Unit in Cyprus in 1999;
  • introduced electronic banking in 2001;
  • received STP Excellence Award from Deutsche Bank in 2003.

References   [ + ]

1. UPDATE: Government nationalizes PrivatBank, guarantees deposits KyivPost 2016-12-18

“Russia did it” – the last stand of neoconservatism

“Russia did it” – the last stand of neoconservatism
photo Shutterstock / Joe Ravi
In 1992, at the end of the Cold War, an American political scientist infamously proclaimed “the end of history:” liberal democracy and the capitalist system has won, the rest of the world will eventually embrace western ideas as superior to theirs because only they are able to provide peace and prosperity.
This line of reasoning has since become the West’s dogma in international relations, and so under the pretext of spreading human rights and parliamentary democracy all over the world the West perceives itself to be on a mission. For a while, it worked. Most of Eastern Europe readily embraced Western democracy and capitalism and even Russia seemed to follow.

ECB policy makes the end of the eurozone possible

ECB policy makes the end of the eurozone possible
photo Shutterstock / kostasgr

A break-up of the eurozone due to the European Central Bank and its Public Sector Purchase Programme (PSPP) should not be treated like a science-fiction scenario. The more government bonds the ECB buys, the smaller becomes the problem of a country’s insolvency and debt conversion into French francs or Greek drachmas. Eventually, who cares if all the bonds are kept by the institution that cannot go bankrupt and that is out of the financial market?

Let us recall: the exclusion of Greece from the Euro Area was impossible in 2012 due to a large amount of Greek debt held by foreign banks, which were rescued by the ECB, the European Union and the International Monetary Fund. These institutions, called Troika, saved banks and private creditors, not the Greeks: 95% of the bailout money went to banks, as a study of the European School of Management and Technology proved.1)Study: Bailouts for Banks, Not Greeks, Source: Handelsblatt 2016-05-04

References   [ + ]

Brussels fears free speech

photo: The Death of Socrates
photo The Death of Socrates

Replace freedom of speech with hate speech and you get rid of the former, basking on moral high ground of fighting the latter.

There was a time when people in the Eastern Bloc were forbidden to listen to Radio Free Europe, The Voice of America or any other western broadcaster on pain of, depending and country and period, severe or mild punishment. The mentioned radio stations were jammed most of the time, which was not the only countermeasure that was implemented: the government-controlled mass media would target selected news and in an attempt to spread “information literacy” raise the citizens’ awareness of the dangers of being exposed to hostile Western propaganda which, allegedly, went out of their way to create the impression of failed socialist states.

Basta euro! How Italy will reintroduce the lira

photo: Shutterstock/Paolo Querc
photo Shutterstock/Paolo Querc

After what to many came down as an unexpected result of the British referendum, another one could further accelerate the implosion of the European Union, this time in Italy. December 4th the Italians will be voting on political reforms. Thanks to the law of unintended consequences, these changes will pave the way for a subsequent referendum where people might be asked to vote whether the country should return to the lira as its legal tender.

To understand why, we first have a look at the current political structure. The Italian parliament is made up of the Chamber of the Deputies (the lower house), and the Senate (an upper house), which are endowed with the same power. New legislation has to be approved by both chambers before it becomes law. Italy has about ten political parties, making it hard to create a coalition and form a government that gets the backing of a majority in both houses.

Germany is replacing the European Union with the “Mitteleuropa” Project

“Mitteleuropa” Project
photo The Gospel Book of Otto III

Germany in, France out? German preponderance in Central Europe and… in Western Europe as well? Revival of the Holy Roman Empire (Sacrum Imperium Romanum) with Sclavinia, Gallia, Roma, and Germania paying homage to the German emperor, nay, chancellor? A Forth Reich in the making?

Smoke was far from subsiding over the trenches of the battlefields of World War One when in 1916 a book was published. Its title was Mitteleuropa1)Friedrich Naumann, Mitteleuropa, Berlin 1916, available at Internet Archive, a non-profit library.and its author: Friedrich Naumann.2)Friedrich Naumann, Encyclopaedia Britannica. The war was about making a new deal between the superpowers at the turn of the 20th century: Germany, Russia, Austria-Hungary, France and England. A deal about re-assigning African and Asian colonies and a new order in Europe. At that time no one could know how the war would end: it was not generally assumed that Austria-Hungary would disappear from the political map or that Russia would drastically change its political system. It was rather taken for granted that the superpowers would have to make mutual concessions and that they could only expand at the cost of smaller nations. Where were they to be found? In Central Europe, from the Baltic down to the Mediterranean: Courland (present day Latvia), Lithuania, Poland, Czechia, Hungary, Romania, Serbia, Bulgaria to name a few.

References   [ + ]

1. Friedrich Naumann, Mitteleuropa, Berlin 1916, available at Internet Archive, a non-profit library.
2. Friedrich Naumann, Encyclopaedia Britannica.

Did the Bank of Japan prevent the US bond market from imploding?

US bond
photo Shutterstock/njene

The turmoil in the financial market was far from good news to President-Elect Donald Trump.
The 10-year Treasury yield was on pace for the largest 2-week rise since 2009. The crash in the bond market happened alongside a 10% devaluation of the Japanese yen.

The mainstream media presented the dumping of Treasury bonds as good news. Investors miraculously expected the US economy to boom and inflation to rise now that Donald Trump will be their president. The same media analysts that predicted two weeks ago that the financial world would collapse if Trump were elected are now convinced that Trump’s plan to increase spending and lower taxes will finance itself.

High Treason: How the euro destroyed the economies of Southern Europe with the complacency of their ruling classes

destroyed the economies of Southern Europe
photo Shutterstock/ gopixa

The great advantage brought by the common currency to Southern European economies that is often pointed up by supporters of the euro is the stability of the currency. It is often overlooked, however, that the impact that the euro and fixed exchange rates in general have had since its introduction was unfavourable. Italian and French economies have turned from net exporters to net importers whereas Spain, Portugal and Greece have amplified the magnitude of their trade deficit.

Brussels will force the Dutch to accept their failed Ukraine policy

Dutch to accept their failed Ukraine policy
photo Shutterstock/ Roman Mikhailiuk

61% of the Dutch voters rejected the Ukraine association treaty in a referendum this year. 31% of the population showed up, which is a far larger number than of those who turned up at Maidan to protest. For the second time the Dutch population cast its vote in a referendum, for the second time the outcome will be nullified in the name of European Democracy.

European leaders have celebrated the Maidan revolution as the attempt of Ukrainian people to join the family of liberal democracies of Western Europe. It couldn’t be further from the truth. In the official version presented in the West, Maidan protests were spontaneously sparked off when the pro-Russian Yanukovich government renounced to ratify an association agreement with the European Union.

Yet in November 2013, before the Maidan movement even started, Oleg Tsarov, member of the Ukrainian parliament, had reported in a parliamentary session on the recruitment of activists organized by the US embassy in Kiev for unknown purposes1)“MUST WATCH: Nov 2013 (pre-Maidan!): Ukraine Deputy has proof of USA staging civil war in Ukraine”, Youtube.

The US embassy in Kiev, via its representative Victoria Nuland, would later become a primary actor in pressuring for a regime change and the formation of a pro-West government in the first months of 2014. For clarity, Victoria Nuland is the third in charge of the US foreign policy, second only President Obama and John Kerry, who had been busy negotiating a nuclear deal with Iran.

References   [ + ]

1. “MUST WATCH: Nov 2013 (pre-Maidan!): Ukraine Deputy has proof of USA staging civil war in Ukraine”, Youtube