13 August 2011

Letter from Lhasa, number 244. The Italic Predatory State: 55% taxation, no growth, 75% of its current expenditure financed by debts

Letter from Lhasa, number 244. The Italic Predatory State: 55% taxation, no growth, 75% of its current expenditure financed by debts   
by Roberto Abraham Scaruffi

State is the problem, not the solution...

The Italic Predatory State is irreformable.

Its Cupola, the comprador Presidency of the Republic, with its military-CC Secret Police corps with annexed judiciary (in permanent action of destabilization, shitting, terrorism, purging from modernizers) will never allow any weakening of the comprador predatory bureaucratic-oligarchic block.

The present provisional measures, will be weakened from Parliament, now assumed from the formal government, on comprador Presidency of the Republic diktat, are univocal.

The clear operation is to expand the public debt, for expanding the comprador bureaucratic-oligarchic predation, behind the cover of an increased taxation and demagogy on cuts. There are no cuts. There are only apparent redistributions from local bureaucracies to central ones. Actually the limited apparent cuts of local bureaucratic costs will be very likely nullified from Parliament. Anyway, whatever local cut will be compensated by increased local taxation, included fines (frequently used for facing fund problems).

The frame coming out from the current decisions is:
@ An expansion of the public debt, now at 120% GNP, which will rapidly reach 2 trillion Euros; now, it is at 1.9 trillion Euros;  
@ Taxation over 55% GNP; now it is at 53% GNP;
@ No growth, with possible recessions, considered the taxation levels;
@ No change that 75% expenditure will continue to be financed by public debt;
@ No real liberalization of the corporative system, which is untouchable and in condition (with the present irreformable Constitutional system) to collapse whatever formal government; not casually the comprador bureaucratic-oligarchic block fired (by the 2006 anti-promulgation referendum) the already approved 2005-2006 Constitutional Reform would have created real governments and accountable parliaments;
@ No privatizations or privatizations only for bureaucratic-oligarchic predation; without any efficient State and any public corps can control anything, privatizations simply perpetuate State inefficiencies and bureaucratic-oligarchic predations; many privatizations had been only masks for distributing funds to the bureaucratic-oligarchic block and for worse services with higher tariffs;  
@ Growing international marginalization; whatever competitiveness has been progressively annihilated, even manu militari (simply annihilating competitive companies) from the military-CC Secret Police corps (with annexe judiciary) of the comprador President of the Republic.   

The domestic banking system is living on that public debt as a para-State rentier, instead of financing entrepreneurship. The foreign entities owners of about 50% of the Italian public debt bonds can collapse in whatever moment that debt mad machine and drive the Italian State to bankruptcy. Junk bonds are not very attractive. In addition, there is a precise interest of the main Anglophone States to collapse the Euro. For collapsing the Euro, they have to strike the various Euro-zone States, what they are doing, in their public debts.     

The point, in the Italian sewer, really is that 75% of current expenditure financed by public debt instead of being immediately and irreversibly cut. That untouchable 75% is the macro-measure of the burden of the Italic comprador Predatory State.

Only cutting that 75%, the comprador-predatory system could be collapsed and the economy relaunched with great advantage for all and each one. The public debt would be reimbursed in a few years and, after that, taxation could be at least halved. In the meanwhile, the funds now hijacked on public bonds would be immediately progressively available on the market for financing real entrepreneurship.

Nobody can do that. The Italic putrescence cannot be arrested.