According to the UN, last year nearly 2,300 Africans drowned to death in the Mediterranean en route to Europe. Last June, Di Maio and Salvini’s populist coalition came into power and effectively shut down the coming hordes of boat people. This year so far, there have been only 282 drowning deaths in the Mediterranean.
— Read on www.takimag.com/article/no-one-here-gets-out-alive/
Honest coverage of a tragic event.
HORROR! Angry Senegalese Driver Sets School Bus Full of Italian Children on Fire ‘To Avenge Deaths of African Migrants at Sea’ (VIDEO)
— Read on www.thegatewaypundit.com/2019/03/italy-angry-senegalese-driver-sets-school-bus-full-of-children-on-fire-to-avenge-deaths-of-african-migrants-at-sea-video/
QUESTION: It is official. Italy is now in recession. Obviously, the Fed is looking outside its own economy. Your Economic Confidence Model is remarkable. I have been following you now for more than 10 years. It has always been correct. Why does the economic community and governments pretend you cannot forecast the economy? You have proven the economy can be accurately forecast. PV, Rome ANSWER: Yes, Italy has turned down. The Fed knew what is coming. All these pundits who claim the stock market forced the Fed to change policy have only shown their total ignorance of the true factors upon which central banks will act. I have probably met with more central banks than anyone. They all know the Economic Confidence Model. That is one of the primary questions I am asked by them – where does it stand now. They cannot publicly come out an say the economy will turn down now for fear that they will be blamed. Just look at the Russia-Trump nonsense. They want to pretend that Hillary would have been elected BUT FOR the release of the emails which showed he true colors. Our computer was forecasting she would lose BEFORE any emails were released. The trend was already set in motion – anti-career politicians. Just look around the world and you see the same trend. But it is easy to always blame someone else for your failure. Thus, central banks cannot forecast a decline because if it happens, they would be blamed just like the Russians right now for Hillary’s loss. The central banks can only forecast economic growth, not recessions. As for the academic community maintaining that the business cycle cannot be forecast, this “opinion” is self-serving. To announce that the business cycle is regular means you cannot control the economy and the entire theory of Marx and Keynes is completely wrong. They kill Kondratieff because he warned the business cycle would kill communism. The economic community would not be able to put out theories to manage the economy and they would have no importance if they admitted they cannot control the business cycle. It is just self-interest. I have been talking with central bankers for months and it has been about the decline into 2020. That is the backdrop to the Fed’s actions – not the stock market. And as for gold, it rallies because interest rates will decline when the Fed said there is less of a risk of inflation? It just seems the reasoning is never consistent.
— Read on www.armstrongeconomics.com/international-news/italy/italy-falls-into-recession/
Another headache for the Eurozone experiments. JohnBarleycorn
The event today may be the fact that the EU has now stated it will bring sanctions against Italy for refusing to comply with its demands. So here we have the Pi Target and to the day Brussels has officially rejected Italy’s spending budget on Wednesday, November 21st which opens the door to sanctions. With hindsight, we will perhaps look at this day as the start of a further deterioration of the European Union that has converted a trade union into a centralized dictatorship applying a central theme of austerity to everyone regardless of their economic conditions.
— Read on www.armstrongeconomics.com/armstrongeconomics101/ecm-armstrongeconomics101/italy-v-eu-november-21-2018/
QUESTION: Mr. Armstrong; I watched the new documentary on your solution. I really want to thank you for everything you do and for free. It is so nice to see someone who actually gives back and has no personal agenda to enrich themselves. My question is this. You mentioned the reason why the United States economy was the envy of the world and differentiated it from Germany which has an export model economy that is why they supported the euro, to begin with. What do you see for Germany ahead? Thank you CB ANSWER: Germany has an export-dependent economy which has directly benefited from the continent-wide trade liberalization and the creation of the Euro which eliminated foreign exchange fluctuations for German manufacturers in Europe at least. However, that simply means that Germany also has the most to lose from a worsening Euro crisis and a resulting wave of Euroscepticism. The political freedoms lost with the creation of the Euro will tear Europe apart. The refusal to consolidate the debt within Europe was profound. The Italy Crisis demonstrates what I have been warning about. BECAUSE there is no central debt, Brussels sticks its nose into every budget of every member state. The economic conditions within Europe are different between each member. Germany is an export economy and Greece is a tourist economy. There are great differences between each member so one policy does not fit all. They are trying to PRETEND they are creating the United States of Europe but that is a joke. The refusal to have consolidated the debts created an unsustainable political union. The USA has a federal debt and budget. Washington does not stick its nose into the budgets of all 50 states. They issue their own debt which is NOT ACCEPTABLE for reserves of any bank. They are also all on their own paying different rates of interest according to their credit rating. In the EU, they are trying to manage the budgets of every member which will only lead to political differences. The structure is absurd and then the banks have to be politically correct and hold the debt of all member states. Thus, the risk becomes if one member is in a crisis, they bring down the entire system. In the USA, if Illinois goes bankrupt, it has no impact on the dollar, the national debt, or politics in Washington. The greatest risk to Germany is the collapse of the Euro means that the single currency relieved their manufacturers of having to manage currency risk. Suddenly, the currency risk returns, the export model fails, and the lack of a domestic consumer market means that the economic conditions in Germany decline rapidly because of their dependence upon everyone else doing well.
— Read on www.armstrongeconomics.com/markets-by-sector/foreign-exchange/euro/the-fate-of-germany-v-euro-the-export-economic-model-risks/
Life in the EU