NUMBERS ARE ONLY NUMBERS

Italy is under investigation by Europe for its fiscal shield (scudo fiscale), invented a few years ago by Berlusconi and his Minister of Economy Tremonti to try to get funds illegally kept abroad brought back to Italy or at least declared. Instead of paying the normal taxes and fines, people would have paid only 5% (a 75/80% discount). It is the third time this happens. There is the suspicion that most of the funds that came out thanks to this law were in fact funds belonging to the organized crime, and that in this way such funds were legally recycled. Another gift to Berlusconi’s friends.

The purpose of the operation was to make money, badly needed by the government and, officially, to bring money back to Italy so that it could be re-invested in productive activities.

We were informed by the ineffable Tremonti that 95 billon € were declared. A success for a country desperately in need of money. And we were made to believe that all this money had been repatriated. Until the Bank of Italy, that is in charge on monitoring flows of money for the balance of payments, revealed that in fact only one third of this money had been brought back. And many people believe that it is mostly money belonging to the organized crime so recycled legally.

Another proof, if any was needed, to show that the Italian government is not more reliable than was the old conservative Greek government.


Picture: megachip.info

A newspapers' invention: the crisis

Towards the end of 2008, I reported the statements of Berlusconi: “the crisis is over, it was just a newspapers’ invention, we are better than before”.

One year later, Italy has 700,000 more jobless people, the unemployment rate (including those who receive “cassa integrazione”, a sort of compensation for closed companies) is above 10%, the Italian debt is over 120% of the GDP, both the industrialists and the trade unions state that the worse is still to come, all projections show Italy’s growth in 2010 much below the European average.

But all this is invented by newspapers and the ineffable Minister of Economy, Tremonti (the one who was proclaiming that is we had a one € bill instead of coins, inflation would be reduced) will maintain that the economists do not understand anything and should shut up (sic).

If Berlusconi did manage his companies as he does with Italy, he would no longer be the richest man in the country !

Psychological economy

(Minister Scajola)




The introduction of the Euro in Italy was difficult for the population as prices increased dramatically. It is generally accepted that the main reason was the lack of preparatory work done by the then Berlusconi’s government and in particular its Minister of Finance, M. Tremonti. Criticized for his inaction, he started preaching that the reason for the increase in cost of living was due to the fact that there was no 1 € bill, It was a psychological matter: people would be more reluctant in spending a 1€ bill rather than a 1€ coin ! That’s for the economy.

Berlusconi also thinks that the economy is only a psychological matter. Since last year, he claims that there is no real crisis, that it is all psychological due to useless research institutes spreading terror (IMF, OECD, World Bank, European Central Bank, Italian Statistical Office, to name a few….) and the press that quotes them. Last year he recommended to Italians to buy g ood stock such as those of Mediaset (his own company). Imagine an America President who owns Times Warner and recommends to buy its stock. Conflict of interest ? Ethics ? these are only psychological issues quoted by stupid journalists. Now, since September 2008, Mediaset stocks lost up to 40% (March 09) and they are today (11 July 09) 22% lower. Good advice by an excellent businessman, indeed.

Last year in March, Air France was ready to buy Alitalia. The deal was stopped by Berlusconi and friends. Taking over the government on June 2008, one of his main actions was to
“rescue Alitalia”. In the end, Air France got it but for much cheaper and basically closing down all flights from Milano Malpensa. In an article early this week, one could learn that Alitalia bond owners lost about 40% with Berlusconi’s solution as compared with what Air France had initially offered. But Berlusconi still claims that he rescued Alitalia….

Over the past month, Berlusconi and his servants, have been attacking regularly all world most prestigious economic forecast institutes because they continue to say that Italy is in a tough recession. The crisis is over, he claims, and we are “better than before the crisis” (sic!). He even invited the young industrialists, during their annual meeting, to stop placing ads on those newspapers who quote what the IMF or OECD of the EU say….They create undue panic while the crisis is over. The day after he made his last such statement, the IMF published another forecast and the Italian Statistical Ofice published the monthly data. Both were negative. So, Mr. Scajola, another smart boy of Berlusconi’s current government (he is minister of production)came out with the idea to publish Italian statistics on the status of the economy less frequently, once every two months, or even three. This statement shows that Mr. Scajola does not know that the US economy and stock exchange, and the dollar and the world stock exchange places, react at the monthly US economic statistics. Nor does he seem to know that all European countries must, based on the EU treaties, publish monthly statistics prepared following common standards.

Not bad for two ministers and for a Prime Minister. Economy ? it’s only a psychological matter, stupid you.




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