QUESTION: Mr. Armstrong; I can see what you have been arguing about the faulty design of the euro. After the EU rejected Italy’s budget, is there any hope left for Italy?
RS, Rome
ANSWER: For those who do not follow Europe closely, the European Union took the unprecedented step Tuesday (23rd of Oct) of rejecting Italy’s draft budget as incompatible with the bloc’s rules on fiscal discipline. This has simply validated the position many take in Italy that they are an occupied country. The Commission Vice-President Valdis Dombrovskis publicly stated that the Italian government was “openly and consciously going against commitments made” to drive down the country’s debt and deficit levels. The decision is escalating a battle between Europe’s establishment and Italians and the sooner you exit the Euro, the better Italy will survive.
From the outset, in designing the Euro they deliberately lied about just about everything. They told everyone that they would be paying the same interest rate because of the single currency. I explained that was absolutely false. They appear to have deliberately used the example of the dollar to pitch the euro but never mentioned that the single interest rate for the dollar was only the Federal level they were referencing. All 50 states issued their debt in the single currency of the dollar but they all paid rates according to their own credit rating.
I warned them that they MUST consolidate all the debts making that a national debt where they would have a single interest rate and that would compete with the dollar. Thereafter, each state would then issue its own debt as needed and the free markets would price that accordingly. Under the system that I instructed them to adopt, this budget crisis would not exist. Because they FAILED to consolidate the debts from the outset, then the EU interferes with everyone’s budgets and dictates terms to them which in reality does make each state and occupied country. The budget of the 50 states in the USA is of no concern to the Feds because they consolidated the debts from the outset. Brussels is dictating to member states trying to pretend it is a federal debt for all which is absurd.
This system cannot possibly survive. The Euro will collapse. There is no possible way for it to survive under this scheme. Italy should simply announce it is exiting the Eurozone. Those in Britain who want to remain are complete idiots. I cannot express it any more politely. Nobody will talk reality here! The remainers in Britain are being pushed by politicians who get pensions from the EU. They are selling out their own country to personal gain.
