[Majorityrights News] KP interview with James Gilmore, former diplomat and insider from first Trump administration Posted by Guessedworker on Sunday, 05 January 2025 00:35.
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Posted by DanielS on Saturday, 14 March 2020 05:00.
First of all, the virus hit Italy first among European nations, and for that reason they were uniquely unprepared for the novel Covid-19 virus. Furthermore, Italy has business ties and migration - both above ground and illegal - from China. The economy of Lombary is largely dependent upon said ties - markedly, contributing to reluctance to shut down the garment industry, which has many Chinese workers working in close quarters. Finally, Italy has the second oldest population in the world, thus having a particularly susceptible demographic.
As the impact of the Corona Virus (Covid-19) continues to grow, nowhere in Europe has been more affected than Italy, and in particular northern Italy.
With a complete lockdown announced by the Italian Government, everyday life for Italians has ground to a halt as the rise in cases of Wuhan-Flu continues.
This has raised the question of why Italy has suffered more than other countries to date?
CORONA VIRUS EXCLUSIVE: WHY ITALY?
AltNewsMedia has a theory as to what may lie behind this.
Many Italians in Northern Italy have sold their leather goods and textiles companies to China. Italy then allowed 100,000 Chinese workers from Wuhan and Wenzhou to move to Italy to work in these factories, with direct flights between Wuhan and Northern Italy. This continued post outbreak, so is it mere coincidence that Northern Italy is now Europe’s hotspot for Corona Virus?
The murky reality is that the EU turned a blind eye to vast numbers of illegal Chinese immigrants working in Italian factories.
The ‘Open Borders’ EU will of course try to keep this under wraps, but reality is, the Chinese Mafia operate Italian textile factories with tens of thousands of illegal immigrants shipping ‘made in Italy’ goods into China and elsewhere.
Why didn’t the EU act to stop corrupt Italians taking backhanders from the Chinese mafia?
Why is Boris and our Scientific community still happy to allow Italian flights into the UK?
This is an area that logically should be front and centre of investigations into how the virus spread into Europe, but we suspect it will overlooked.
The whole scenario is a disaster for the EU and their open borders narrative, but as the 4th biggest economy in the EU this whole situation with Italy could accelerate the collapse of the whole EU project.
Listen here as we discuss this further in our weekly podcast.
Related:
While Prato, a city near Florence, is not a Coronavirus hot-spot, the corrupt practice of using illegal migrant Chinese workers gained precedence there.
Prato, the historical capital of Italy’s textile business, has attracted the largest concentration of Chinese-run industry in Europe within less than 20 years.
As many as 50,000 Chinese live and work in the area, making clothes bearing the prized “Made in Italy” label which sets them apart from garments produced in China itself, even at the lower end of the fashion business.
In some ways, the Chinese community of Prato has succeeded where Italian companies have failed. Italy’s economy has barely grown over the past decade and is only just emerging from recession, partly due to the inability of many small manufacturers to keep up with global competition.
Yet Prato, which lies 25 km (16 miles) from the Renaissance jewel of Florence, is also a thriving hub of illegality committed by both Italians and Chinese, a byproduct of globalization gone wrong, many people in the city say.
Up to two thirds of the Chinese in Prato are illegal immigrants, according to local authorities. About 90 percent of the Chinese factories - virtually all of which are rented out to Chinese entrepreneurs by Italians who own the buildings -break the law in various ways, says Aldo Milone, the city councilor in charge of security.
This includes using fabric smuggled from China, evading taxes and grossly violating health and labor regulations. This month a fire, which prosecutors suspect was set off by an electric stove, killed seven workers as they slept in cardboard cubicles at a workshop.
Italian officials acknowledge they haven’t cracked down effectively on the mushrooming illicit behavior.
Prato mayor Roberto Cenni, himself a textiles entrepreneur, arrived in 2009 promising to clean up the area. Cenni says he has trebled inspections since then, but still only a small fraction of the factories are monitored regularly.
“We don’t have the ability to fight this system of illegality,” he said, noting that Prato has only two labor inspectors.
In some cases, local officials share the blame. Prato chief prosecutor Piero Tony ordered the arrest of 11 people this month, including a city council employee who is suspected of issuing false residency permits - for between 600 and 1,500 ($820-$2,100) euros a piece - to more than 300 Chinese immigrants since May (2014)
The Chinese Workers Who Assemble Designer Bags in Tuscany
Many companies are using inexpensive immigrant labor to manufacture handbags that bear the coveted “Made in Italy” label.
The Chinese residents of Prato have arguably revived the fading manufacturing city, which has the highest proportion of immigrants in Italy.
Audio: Listen to this story. To hear more feature stories, download the Audm app for your iPhone.
The first significant wave of Chinese immigrants arrived in the industrial zone around Prato, a city fifteen miles northwest of Florence, in the nineteen-nineties. Nearly all of them came from Wenzhou, a port city south of Shanghai. For the Chinese, the culture shock was more modest than one might have expected. “The Italians were friendly,” one early arrival remembered. “
[...]
By the mid-nineties, Wenzhouans were setting up textile businesses in small garages, where they often also lived. Soon, they began renting empty workshops, paying with cash. The authorities didn’t ask too many questions. Prato’s business model was falling apart under the pressures of globalization. As it became harder for Italians to make a living in manufacturing, some of them welcomed the money that the Chinese workers brought into the local economy. If you could no longer be an artisan, you could still be a landlord.
Throughout the aughts, Chinese continued to show up in Tuscany. A non-stop flight was established between Wenzhou and Rome. Some migrants came with tourist visas and stayed on. Others paid smugglers huge fees, which they then had to work off, a form of indentured servitude that was enforced by the threat of violence.
[...]
While Florence was celebrated for its premium leatherwork, Prato was best known for the production of textiles. The Wenzhou workers tacked in a third direction. They imported cheap cloth from China and turned it into what is now called pronto moda, or “fast fashion”: polyester shirts, plasticky pants, insignia jackets. These items sold briskly to low-end retailers and in open-air markets throughout the world.
The Chinese firms gradually expanded their niche, making clothes for middle-tier brands, like Guess and American Eagle Outfitters. And in the past decade they have become manufacturers for Gucci, Prada, and other luxury-fashion houses, which use often inexpensive Chinese-immigrant labor to create accessories and expensive handbags that bear the coveted “Made in Italy” label.
[...]
More than ten per cent of Prato’s two hundred thousand legal residents are Chinese. According to Francesco Nannucci, the head of the police’s investigative unit in Prato, the city is also home to some ten thousand Chinese people who are there illegally. Prato is believed to have the second-largest Chinese population of any European city, after Paris, and it has the highest proportion of immigrants in Italy, including a large North African population.
For the first time, the World Health Organization called the disease caused by the novel coronavirus, COVID-19, a pandemic. Meanwhile, the United States now has more than 1,000 people infected with the coronavirus — but testing in the country is still ramping up, meaning that number could continue to climb.
WHO defines a pandemic as the worldwide spread of a new disease for which most people do not have immunity.
On Wednesday, the governor of New York questioned the number of people who have been tested for the virus in the U.S.
“When they do the retrospective on this one, they are going to say, ‘Why did it take the Unites States so long to bring up the testing capacity?’” Gov. Cuomo said on “TODAY.” On Tuesday, Cuomo announced that he was implementing a “containment area” around a one-mile radius in the city of New Rochelle, home to one of the largest clusters of coronavirus cases in the country.
Posted by DanielS on Wednesday, 11 March 2020 07:45.
The Fed’s Baffling Response to the Coronavirus Explained
Man wearing mask in front of New York Stock Exchange buildingA man taking precautions amid the coronavirus outbreak walks past the New York Stock Exchange. (Mark Lennihan / AP)
When the World Health Organization announced on Feb. 24 that it was time to prepare for a global pandemic, the stock market plummeted. Over the following week, the Dow Jones Industrial Average dropped by more than 3,500 points, or 10%. In an attempt to contain the damage, the Federal Reserve on March 3 slashed the fed funds rate from 1.5% to 1.0%, in its first emergency rate move and biggest one-time cut since the 2008 financial crisis. But rather than reassuring investors, the move fueled another panic sell-off.
Exasperated commentators on CNBC wondered what the Fed was thinking. They said a half-point rate cut would not stop the spread of the coronavirus or fix the broken Chinese supply chains that are driving U.S. companies to the brink. A new report by corporate data analytics firm Dun & Bradstreet calculates that some 51,000 companies around the world have one or more direct suppliers in Wuhan, the epicenter of the virus. At least 5 million companies globally have one or more tier-two suppliers in the region, meaning that their suppliers get their supplies there; and 938 of the Fortune 1,000 companies have tier-one or tier-two suppliers there. Moreover, fully 80% of U.S. pharmaceuticals are made in China. A break in the supply chain can grind businesses to a halt.
So what was the Fed’s reasoning for lowering the fed funds rate? According to some financial analysts, the fire it was trying to put out was actually in the repo market, where the Fed has lost control despite its emergency measures of the last six months. Repo market transactions come to $1 trillion to $2.2 trillion per day and keep our modern-day financial system afloat. But to follow the developments there, we first need a recap of the repo action since 2008.
Repos and the Fed
Before the 2008 banking crisis, banks in need of liquidity borrowed excess reserves from each other in the fed funds market. But after 2008, banks were reluctant to lend in that unsecured market, because they did not trust their counterparts to have the money to pay up. Banks desperate for funds could borrow at the Fed’s discount window, but it carried a stigma. It signaled that the bank must be in distress, since other banks were not willing to lend to it at a reasonable rate. So banks turned instead to the private repo market, which is anonymous and is secured with collateral (Treasuries and other acceptable securities). Repo trades, although technically “sales and repurchases” of collateral, are in effect secured short-term loans, usually repayable the next day or in two weeks.
The risky element of these apparently secure trades is that the collateral itself may not be reliable, because it may be subject to more than one claim. For example, it may have been acquired in a swap with another party for securitized auto loans or other shaky assets — a swap that will have to be reversed at maturity. As I explained in an earlier article, the private repo market has been invaded by hedge funds, which are highly leveraged and risky; so risk-averse money market funds and other institutional lenders have been withdrawing from that market. When the normally low repo interest rate shot up to 10% in September, the Fed felt compelled to step in. The action it took was to restart its former practice of injecting money short-term through its own repo agreements with its primary dealers, which then lent to banks and other players. On March 3, however, even that central bank facility was oversubscribed, with far more demand for loans than the subscription limit.
The Fed’s emergency rate cut was in response to that crisis. Lowering the fed funds rate by half a percentage point was supposed to relieve the pressure on the central bank’s repo facility by encouraging banks to lend to each other. But the rate cut had virtually no effect, and the central bank’s repo facility continued to be oversubscribed the next day and the following. As observed by Zero Hedge:
This continuing liquidity crunch is bizarre, as it means that not only did the rate cut not unlock additional funding, it actually made the problem worse, and now banks and dealers are telegraphing that they need not only more repo buffer but likely an expansion of QE [quantitative easing].
The Collateral Problem
Ellen Brown is an attorney, chairman of the Public Banking Institute; author of thirteen books including “Web of Debt”, “The Public Bank Solution” and her latest, “Banking on the People: Democratizing Money in the Digital Age.”
As financial analyst George Gammon explains, however, the crunch in the private repo market is not actually due to a shortage of liquidity. Banks still have $1.5 trillion in excess reserves in their accounts with the Fed, stockpiled after multiple rounds of quantitative easing. The problem is in the collateral, which lenders no longer trust. Lowering the fed funds rate did not relieve the pressure on the Fed’s repo facility for obvious reasons: Banks that are not willing to take the risk of lending to each other unsecured at 1.5% in the fed funds market are going to be even less willing to lend at 1%. They can earn that much just by leaving their excess reserves at the safe, secure Fed, drawing on the Interest on Excess Reserves it has been doling out ever since the 2008 crisis.
But surely the Fed knew that. So why lower the fed funds rate? Perhaps because it had to do something to maintain the façade of being in control, and lowering the interest rate was the most acceptable tool it had. The alternative would be another round of quantitative easing, but the Fed has so far denied entertaining that controversial alternative. Those protests aside, QE is probably next after the Fed’s orthodox tools fail, as the Zero Hedge author notes.
The central bank has become the only game in town, and its hammer keeps missing the nail. A recession caused by a massive disruption in supply chains cannot be fixed through central-bank monetary easing alone. Monetary policy is a tool designed to deal with demand — the amount of money competing for goods and services, driving prices up. To fix a supply-side problem, monetary policy needs to be combined with fiscal policy, which means Congress and the Fed need to work together. There are successful contemporary models for this, and the best are in China and Japan.
The Chinese Stock Market Has Held Its Ground
While U.S. markets were crashing, the Chinese stock market actually went up by 10% in February. How could that be? China is the country hardest hit by the disruptive COVID-19 virus, yet investors are evidently confident that it will prevail against the virus and market threats.
Erdogan to Greece: “Don’t be stupid. The migrants don’t want to stay in your country. Just let them through to other countries in Europe.”
Erdogan: “Greece, these people won’t remain in your country. They will pass through and go to another country in Europe. Why do you feel disturbed? We told you! We said that if it goes on like this, we’ll open the gates, but you didn’t believe us. Oh, Greece, now I’m calling on you to open your gates. Get out from under this burden! Let them go to other countries of Europe. There is no other way. The burden must be shared and we are looking for partners.”
Ellen Brown is an attorney, chairman of the Public Banking Institute; author of thirteen books including “Web of Debt”, “The Public Bank Solution” and her latest, “Banking on the People: Democratizing Money in the Digital Age.”
