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I am writing today’s post as the cognitive dissonance is setting in after the “centrist”, read socialist empty suit saved the world… European Union… France by winning the French presidential election.

For those watching the lead up, you would have noticed the FAKE NEWS legacy media fawning all over the young, energetic, Kennedy-esque “centrist” and his lovely young maturely beautiful wife. A mature 65 year old grandmother that wears skin tight jeans, no less. But anyways… Now we find out that this young, energetic, Kennedy-esque “centrist” French President has one YUGE problem. And that problem is that he forgot to put in place a political party, a political party that will be needed in the French Parliament in order to enact his non-existant reform plan. I guess there was not enough time to create the party and parliamentary elections are just 4 weeks away. But what is even worse, there is no enthusiasm for anything having to do with Monsieur Macron.

Here is one very telling meme that arose post election:

Oh well…

But now it is time to move on.

Recently, many analysts and blogger are noticing the threat to Western Civilization that the advent of the Globalist empty suits occupying the levers of power has arisen. Looking over just one blog, the Zero Hedge, I found two post on just this topic from Doug Casey. Here are those two:

Doug Casey On The Plague Of Cultural Marxists

Doug Casey On The End Of Western Civilization

Please read them at your leisure since these two posts should provide a good idea about what some of the smart and honest people are thinking.

As to a plan of action, and your humble blogger is all about action, what is critical is to identify the flash points of the current Globalist threat. And as your humble blogger has been writing, the ground zero for the Globalist threat is in what is known as the Euro Project. And this is why the Macron victory over Marine Le Pen was such a big deal to the Globalist. They even got Obama to meddle in this election.

But it is not France that was/is the flash point. The flash point, as my loyal readers know is Italy. And below, we have the latest Target2 balance data for your information.

Quick summary. Target2 Balances are payables/receivables between Eurozone central banks (Central banks of countries using the Euro currency). Think of them as issuers of credit cards. The Southern European countries (borrowers) , with the debit balances, have purchased goods and services from the Northern Countries (creditors) – read Germany. These purchases are being financed through credit facilities from the Northern Countries. What the Target2 balances represent is the instability inside the Euro banking system. The reason that they are so big is the those transactions have not been cleared (paid off). They are being financed. Therefore, if a country leaves the Euro currency, its liabilities (that which its Central Bank owes to the other central banks) will be renominated into a new local currency and that local currency in most cases will devalue.

And it will devalue BIG LEAGUE!

Here is an example. This situation is similar to a credit card issuing bank relationship with its client. The analogous scenario is that you, dear reader have a credit card. On that credit card you owe 100 US Dollars. But you live in Mexico. One fine day, you get your monthly statement and you find out the now you owe 100 Mexican Pesos. Yes? Given that each USDollar is equal to 10 Mexican Pesos, if you then pay off your balance, you will only pay 1/10 of your debt. So you win. But the bank loses.

Now, the problem for the bank is then, that it will have to “realize” those loses. And this carries with it a whole host of problems that only a printing press can resolve. I will end here, but note that this is a story for a different day.

The reason that I am bringing this to your attention is that the next flash point and the one that will most likely put an end to the European post-modernist anti-Western Civilization Project is the upcoming election in Italy. And at last count, the anti-EuroProject parties (Northern League, Forza Italia and the 5 Star Movement) were extending their lead in the polls. That lead now is most likely over 70% of the votes in the upcoming election. All these parties have called for a Italeave (Italian BREXIT) from the Eurozone (Euro currency) or a referendum for Italeave. And given the mood in the country, the odds that Italy is still in the Eurozone in two years time are getting quite long.

So below, I am reproducing a post with the latest developments from Italy. It appears that private investors have been selling Italian debt on a never before seen scale. It also appears that there is only one buyer for this debt, and that is the Italian and Jesuit trained President of the European Central Bank, one Mario Draghi.

Aside, can anyone spot the obvious conflict of interest? But I digress…

And it is this selling of Italian debt, provoked by the hushed up banking crisis that is blowing out the Target2 debit balances for the Italian state.

I will stop here, but stay tuned sports fans…

Oh, one more thing. It appears that Francis, the bishop of Rome is becoming the poster boy not only for the failing NYTimes Globalist experiment but also as the major power behind the Global communist dictatorships. See here for more details…

Update: 04:05 9 May 2017

This just in from the UK’s Express here (see here)

Update 2: 10:50 9 May 2017

Well, that didn’t take long.

The Kenyan lady-boy in Italy today. Trying to rally the troops. Who would have thunk? (see here)

Italy Dependent On ECB “Buyer Of Last Resort” As Foreign Investors Dump Bonds Amid Capital Flight

Authored by Mike Shedlock via MishTalk.com,

Italy is increasingly dependent on the ECB to hold down bond yields as foreign investors dump Italian bonds like mad.

Eurointelligence bills this as “Further Evidence of Capital Flight in Italy“. 

In a column earlier this week, Federico Fubini notes that, according to the Bank of International Settlements, in 2016 international banks reduced their exposure to Italy by 15%, or over $100bn, half of it in the last quarter of the year.

The counterpart to this exposure reduction is the increase in the negative Target2 balance of Italy, which the ECB has already attributed to foreigninvestors selling into its asset purchase programs, and reinvesting the proceeds away from Italy.

As a result of all this, Italy’s financial stability is increasingly dependent on the ECB.

The Capital Flight article by Federico Fubini is in Italian. Here is an unmodified snip from the article.

Distrust Widespread

Clearly, therefore, there is a conspiracy, but a widespread distrust of the direction being taken in the third euro area economy. Especially the banking system in Germany seems to have developed a deep-seated distrust. His exposure to the country late last year is worth little more than a quarter of that of the French banks, and now has dropped so much that is 30% below that that German institutions had on Italy at Euro 1999 debut. No other major banking system has implemented a retreat of these proportions, as if the integration of the single currency had never even begun.

The loss of one hundred billion dollars by large foreign banking investors would be a blow, not for purchases of Italian bonds by the European Central Bank. Throughout 2016 we continued at the rate of about ten billion Euros per month, on corporate bonds and especially on sovereign bonds. In fact the release of foreign banks is linked to the ECB intervention, because those have the opportunity to sell at the Institute of Frankfurt good part of their Roma government bonds. It is no coincidence if the public debt held abroad fell by 42 billion in just the first nine months of 2016, according to Bruegel. The irruption of the ECB in the market and the withdrawal of foreign banks are thus two sides of the same coin. The result is that the Italian financial stability is becoming more and more dependent on the support of an international institution, that next year will almost certainly cease.

I spoke about this process before in Target2 and Secret Bailouts: Will Germany be Forced Into a Fiscal Union with Rest of Eurozone.

One person I highly respect is adamant (or at least was) that rising Target2 does not represent capital flight.

But what else do you call it when foreign investors dump Italian bonds to ECB, the buyer of only resort?

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