Italy and the euro cannot be saved by mass immigration

Italy and the euro cannot be saved by mass-immigration


The ongoing euro crisis has never been and will never be solved. The native European populations are shrinking and this will have a consequence for the economy, production and public finance. The demographic decline is the single most important economic phenomenon. We do not doubt that the annual visitors to the Global Economic Forum in Davos are fully aware of it: they know that the European and East Asian populations are decreasing and that 18 of the 20 top economies will never experience sustainable growth again. The economic press and mainstream analysts somehow do not get it and still believe that countries that will see their native population shrinking by 30% in the next thirty years can increase their GDP.

Italy is the next epicenter of the demographic crisis. The ongoing euro problems and the orchestrated mass migration into Italy are closely related. Italian population began to dwindle last year, a situation that has never happened in modern history. Without immigration, the Italian working-age population will drop by at least 30% before the middle of the century. If the productivity does not change and even if the Italians are able to balance their budget, the consequences are unsolvable.

The Italian GDP will be smaller and smaller in proportion to the fall in the number of the working-age population. Every working-age person in Italy is burdened with a sixty-thousand-euro public debt and that amount will grow on average by nearly a thousand euros a year because more people are leaving the working force than entering. The debt to GDP ratio will be 200 percent by mid-century. We did not yet factor in the outflow of young people that are looking for employment in other European countries.

This scenario gives a good indication of the problem Italy faces. In the coming years it is expected that productivity will go up, but the same holds good for the national debt which has increased by 15 percent since 2012. All Western economies have arrived at the point where productivity has to compensate for the decline in their populations. Italy is the world’s ninth economy and is on a trajectory that, in the long run, will end in an economic implosion comparable to the 1998 financial crisis in Argentina, number 21 on the world GDP list.

Financial speculators such as George Soros, central bankers and part of the political establishment are fully aware of the long-term perspective of the country and the consequences for Europe. If Italy ditches the euro, the situation will be much worse than the 2008 financial crisis. Not only will the value of the euro collapse but investors, business people and the general public will begin to doubt the viability of the euro currency or fiat currency in general.

Politicians within the European Union are trying to throw the hot potato along to the next generation because they know that they will not be able to contain the mayhem if push comes to shove. To deal with the consequences of the ultimate euro crisis is not within their competence.

Italy does not have its own Central Bank and the country cannot unilaterally suppress interest rates or buy its own debt. Creating money out of thin air as the Japanese do is impossible for the Italian political and monetary establishment.

Most politicians are not part of the wealthy elite, so they do not run a risk of winning or losing any assets. They serve their term (and the particular political purpose) and then they are rewarded with a position at one of the irrelevant international organisations. It is the financial and economic elites that will be crushed and lose their assets during such a crisis, so in order to turn the tide they are desperately trying to increase the working-age population in Europe by promoting and organising a relentless stream of immigrants into the old continent. The mass migration into Europe and the US and the financial state of affairs are not unrelated incidents, and it is no surprise that such speculators as Soros are facilitating and promoting the re-population of Italy. Soros asserts that Europe should accept half a million refugees annually on top of the regular migration. Over years such an annual number of people will create a community of refugees the size of the German population.

There is no reason to believe migration from Central Asia and Africa will compensate for the loss of native Europeans. Most of these immigrants come from areas where people have a different work ethic to their European counterparts, and they lack the education and skills to be employable in the Western economies. Unemployment among sub-Saharan Africans in Western Europe is high while there is a high demand for low qualified uneducated East and Central Europeans. For now, some Africans in Italy will provide southern Italy with cheap slave labour in agriculture, and the UN and European assistance budgets will even bless the region with an influx of money for the charity industry. For Italian society at large, the massive influx of immigrants from Africa will be a disaster. It will destroy social cohesion, increase government expenditure and fuel general discontent.

The Italians voted for a new policy that would stop fraudulent NGOs that are shipping another hundred thousand migrants this year to Italy. The two big winners of the last election wanted to send undocumented migrants back home and introduce a parallel currency.

The Italian President Sergio Mattarella blocked the creation of a new government to protect the investors outside Italy and give them the opportunity to proceed for yet another year with the shipping of Africans into Italy. It will not change the long-term perspective, and while economics academics still believes it is all about economics and competitiveness, we’d rather say “It is the demographics, stupid”.


Original article

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