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Today we continue with our coverage of the Italian Affair. For those who do not know yet, there was an election in Italy in March of this year. The winning parties had finally cobbled a coalition government platform which they would like to enact. To this end, they have formed a government and appointed the ministers who will be part of that government. These coalition talks have been going on for two months as of this writing.

So the final list of government ministers was provided to the Italian President over this passed weekend, a function that is constitutionally defined as largely “ceremonial”. And then low and behold, the Italian President intervened to stop the appointment of the Finance Minister in the new government. This caused the Prime Minister designate to withdrawal his candidacy, which in turn allowed the President to form a “care taker” government with a European Union friendly hack at its head.

Needless to say, it now appears that there were phone calls placed to the Italian President to help him take these quite controversial decisions from none other than the usual suspects: Frau Merkel, Monsieurs Macron and Junker and last but not least, Francis the bishop of Rome.

So now what IS the case (OBJECTIVE REALITY) is that the Italians have become a colony of Brussels….to be more precise, pan-Germany. It is the Germans, through their Brussels proxy who have “created” a VETO for accepting who will hold ministerial positions in the new… actually in ANY Italian government.

The larger picture is that as with any other ill thought out,… bah… TRANSRATIONAL actions of these sorts, the reactions tend to be governed by the LAW OF UNINTENDED CONSEQUENCES.

Specifially, what appears to be the case in Italy is that by taking this course of action, what President Mattarella has done is demonstrate that the reason why Italy has lost its sovereignty is due to it being a part of the Eurozone.

In other words, because it has adopted the Euro currency, the Italians are forced to be governed by people whose primary interest isn’t the good of the Italian people, but rather the good of the European Central Bank, which in turn is beholden to its largest protector: the German State.

Therefore, the next logical action that most likely will result from this subjugation of Italy to the European ruling elites is to call a REFERENDUM about whether Italy wants to stay in the Euro zone.

And as we have mentioned in numerous posts before, it is the disintegration of the Euro zone (which will take down the EVIL German post-WWII, post-Modernist Critical Theory exporting New World Order) that will eventually also liberate the INDEFECTIBLE Catholic Church from the clutches of the FrancisIDEOLOGUES, who have taken over the Vatican by stealth and are trying to destroy the only means of salvation given to mankind.

Before we go on to the Zero Hedge post that explains the current OBJECTIVE REALITY in easy to understand, yet highly precise detail, a few words are needed about the larger picture.

What we are witnessing is the NEW WORLD ORDER in action. We see the Brussels (European Union) trying to exert pressure on the Italian population to remain subservient. We also see these same characters trying to destabilize and overthrow the duly elected governments of Poland and Hungary. The co-conspirators in the US are behind the Very Stable Genius @POTUS “witch hunt” trying to overthrow the duly elected government of the United States. We also see this same cabal overthrowing the statutory leadership of the Sovereign Order of Malta. And finally, we see these same people, working behind the scenes in trying to stop BREXIT and overturning the Irish Constitution amendment protecting the right to LIFE OF UNBORN CHILDREN.

Folks, these are EVIL, dare I say POSSESSED people…

… and one more thing: Democracy can also die in the sunlight!

And now to the Zero Hedge post (see original HERE)…

*****

Italian Banks, Bonds Crash As Di Maio Calls For Protests Against “The Arrogance Of Institutions”

Five Star leader Luigi Di Maio addressed the Italian nation on  a live Facebook feed this afternoon calling for them to mobilize against the institution represented by President Mattarella and demanding a new election as soon as possible.

“We can not stand watching, we must react immediately firmly. Today he will hang an Italian flag out the window and ask you to do the same. We claim the pride of being Italian…”

“There are tons of lies. I have said throughout the electoral campaign that we do not want to leave the euro. Savona would not take us out of the euro, he would have asserted Italy’s interests in the EU headquarters “.

“On June 2nd I invite everyone to come to Rome for a great demonstration.”

Yesterday – with the “no” of the Quirinale to the binding of Lega and M5s on the name of Sardinian economist Paolo Savona – “was the darkest night of democracy”, he added.

“We ask to go to the vote as soon as possible. Even in August? As soon as possible”, he clarified at the end of the meeting in the Chamber with Matteo Salvini.

We are totally convinced to carry on” the impeachment.

“President Mattarella has decided to entrust the country to a technician in the mountains.”

“It is an ignoble act not to have allowed” the birth of the government governed by M5s and Lega.

“I was a deep admirer of the Democratic Party and I am really disappointed. Some of Mattarella’s advisers should be put on trial, but there is no such institution,” he adds.

“The president has shown that he is not an impartial guarantor for our highest democratic institutions and can no longer represent us .”

“For this reason I asked the more than 160 mayors of the Lega in Lombardy to remove the photo of Mattarella from their offices.“

For those who have not been paying attention, The Associated Press offers a quick 4 point explanation of Italy’s political pandemonium.

The Italian president’s decisions to quash a proposed populist coalition and ask economist Carlo Cottarelli to assemble a politically neutral government sets up the steps to an early election that could have Italy’s voters going to the polls for the second time this year.

Italy is no stranger to chaotic politics, government crises and revolving-door executives. But recent developments were remarkable even by Italian standards.

Here’s a look at how Italy got to this point, and what could come next:

1. THE RUN-UP

A national election held March 4 produced a hung parliament. The anti-immigrant, right-wing League and the anti-establishment 5-Star Movement eventually set aside populist rivalries to draft a coalition platform, which included plans for a flat-tax, rolling pack pension reforms and government subsidies to the unemployed.

On Sunday night, President Sergio Mattarella ended plans to form Western Europe’s first populist government by vetoing their euroskeptic pick for economy minister. The president argued that Italy could not be perceived as entertaining an exit from the euro.

When the League refused to budge on having Paolo Savona as economy minister, Mattarella stuck to his constitutional prerogative to veto Cabinet ministers, and the populists were foiled in their quest to govern Italy. Mattarella then asked Cottarelli to set up a non-political government to lead the country to another election.

2. COTTARELLI’S CABINET

Cottarelli, a former International Monetary Fund official, promised to quickly assemble a Cabinet. Once Mattarella approves the proposed ministers, the new government can be sworn in within a day, or even hours.

The premier-designate pledged that his “neutral” government would guarantee “prudent” management of Italy’s public debt, the second highest in Europe after Greece.

While vowing to press the European Union to respond to concerns generating discontent at home, Cottarelli stressed that Italy’s “role in the union is essential, as is our continued participation in the eurozone.”

3. PARLIAMENT’S ROLE

After being sworn in, every new government in Italy faces a mandatory confidence vote in each chamber of Parliament. The populists, who together account for a little more than half the seats in the legislature, have already given Cottarelli the thumbs down.

Should the government lose the confidence votes, Cottarelli said a new election would be scheduled as soon as “after August.” His government would then stay on in a caretaker role until the election.

Should his government pull off the confidence wins, Cottarelli said he would lead Italy through the end of the year to pass next year’s budget, after which the president would send Parliament packing and the election would be held in early 2019.

4. CAMPAIGN ALREADY OPEN

The 5-Stars and League responded to Mattarella’s veto with a chorus of criticism that Italy had ceded its sovereignty to the European Union and international financial markets.

Essentially, campaigning for the next election is up and running regardless of when the voting is done, promising a heavy dose of euro-skepticism and “Italians First” slogans, especially from the League.

Nicola Nobile, lead economist at Oxford Economics, predicted the “the next elections could become a de facto referendum on Italy remaining in the eurozone.”

In fact, you know it’s bad when Paul Krugman expresses his disappointment at the establishment’s actions…

 

Di Maio’s anti-establishment calls for a demonstration in Rome on June 2nd and demands for an election as soon as possible have sparked further downside in Italian capital markets…

Italian risk premia across the entire curve are exploding…

2Y Yields at the highest since May 2014; 10y yields climbed above 2.70% for the first time since June 2015… and the BTP-Bund 10y yield spread 231 bps, widest since 2013

Plunging bank stocks – with their massive sovereign debt holdings – into a bear market

And in case you were wondering, investors shouldn’t “buy the dips” in Italian stocks after the market plummeted on the country’s political turbulence, Societe Generale strategists including Roland Kaloyan and Charles de Boissezon write in note.

  • International investors will stay on the sidelines for now given lack of visibility in coming months, particularly if new elections are in the pipeline
  • Expects higher cost of debt for Italian companies: SocGen says Italy’s credit rating downgrade is highly probable by the next review date on Sept. 7, but most likely in the next few weeks; sovereign downgrade could potentially trigger downgrades of some Italian corporates

And Italian redenomination risk soaring… (Ed. note: This is the graph we are most interested in – see HERE)

59-year old Rome resident, Nuzzi Luciana, summed up how many Italians feel…

“I think Italians had expressed themselves and what happened seems to be wanting to cancel the sign of this expression, so, even if I don’t really know this person (Cottarelli), we are left with a bitter taste here.”