Globalists hate the idea of nationalism

President Trump when talking about the caravan and his moves to defend the southern border with Mexico recently stated:

“You know they have a word, it sort of became old-fashioned, it’s called ‘nationalist.’ And I said, really? We’re not supposed to use that word. You know what I am? I’m a nationalist, OK? I’m a nationalist.”

At the commemoration of the 100th anniversary of Armistice Day marking the end of World War I over the weekend French President Emmanuel Macron said this in regards to President Trump’s statement :

“Patriotism is the exact opposite of nationalism. Nationalism is a betrayal of patriotism by saying ‘our interests first, who cares about the others.’ We erase what a nation holds dearest, what gives it life, what makes it grace, and what is essential – its moral values.“

What is the alternative to nationalism and why has that word taken on such a negative connotation?

The definition of nationalism from a political standpoint is: A political, social, and economic system characterized by the promotion of the interests of a particular nation, especially with the aim of gaining and maintaining sovereignty over the homeland.

The first synonym is patriotism.

The flip side of nationalism is globalism, which Macron and other EU member leaders must need to subscribe to since they cannot defend their borders from what Brussels dictates to them.

Macron, Merkel et al have lost their sovereignty to unelected officials dictating policies of what France or Germany et al will do. Think of the refugees changing the face of Europe.

When does nationalism turn into an extreme form marked by a feeling of superiority over other countries? When the native citizens begin to feel powerless over dictates that they have no recourse from these rules affecting their lives.

Macron may be too young to remember — perhaps he should ask his wife — how American troops freed the French from occupation during the two world wars, since their patriots were unable to defend their homeland.

Now of course Brussels is quite worried that Trump’s tariffs will correct the many years that the EU took advantage of loop-sided US trade policies. So they sent their French puppet out to take a jab at the American president.

President Trump should remember you only take flak when you are over the target.

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D-Day’s unintended consequences

Seventy-four years ago today US an Allied troops began the campaign to free Europe  from Nazi control. This day is marked by the name D-Day.

America’s greatest generation would push the German army all the way back to Berlin in the next 11 months to declare VE Day (Victory in Europe).

Today it is so hard to believe that Europe once endured two horrific world wars in the span of 40 years given its present day conditions.

Europe — since D-Day 1944 — has used economic ties with each country to quell the ambitions of any one member. Through the European Common Market to today’s European Union trade and commerce have replaced bullets and bombs. Trench warfare was thrown to the wayside for financial traunches of securities.

Nationalistic leaders were met with economic heartache by fellow member states to quell any thought of hostilities. Post-war Marshall Plan determined that Europe did not need anymore Holy Roman Emperors or empire builders like Napoleon or Hitler.

Well fast-forward 70-odd years and the pendulum has swung so far in the opposite direction that Europe is so pacifistic it is losing its culture due to uncontrollable immigration.

The very essence of being French, German, Italian, Greek, ect. is being pushed aside by a homogeneous, socialistic society, which is dying a slow death if you look at birth rates of its citizens versus its immigrants.

I would say the jury is still out on whether D-Day was a success for Europe in the longest view. Economically, what is the largest post-WWII accomplishment from Europe? German automobile exports?

Perhaps non-belligerence translates into economic malaise?

It's Italy's turn to run for the exit

Italians will go to the polls on Sunday in the first step of determining the future of the country as part of the European Union.

Like Brexit, the Italians seem to be favoring leaving the EU over the lack of economic growth over the last 20 years partly due to the strength of the euro.

Italian Prime Minister Matteo Renzi is holding a referendum to change Italy’s constitution. A “Yes” vote essentially means Italians wish to stay in the EU, while a “No” vote can lead to the exit. The latest polls say the “No” votes have a 54% likelihood of passing.

Since Italy is the third-largest member of the EU, an exit-vote win will certainly have dire results in the market as global investors need to act as if the EU may dissolve over the next year as a result.

Certainly the cratering Italian banking system will be further impaired should the “No” vote carry the day. Monte Paschi bank in Seina will have a much harder time selling its bond offering which in needs to do in order to remain open.

Come Monday morning, the US futures markets will tell you very clearly how the vote went.

Did Kaepernick quarterback a Trump win?

What does the Donald Trump win mean in the greater world economy?

First you had Iceland in 2008 telling the London banking system to go to hell, we are not crippling our nation to pay tribute to them with IceSave for rigged bets that City of London fostered upon the national bank of the tiny nation and backed all the savings accounts of depositors in a new bank.

Secondly, we had Brexit earlier this year. The British people voted to begin exiting the European Union.

These two nationalistic moves set the table for a Trump campaign. The campaign’s planks of secure borders, trade pacts and tariffs to bring jobs back to the country and immigration reforms all play into a move away from globalist’s agenda.

As an aside this huge nationalistic bent in the US can be witnessed by stories on the decline of the NFL ratings due to San Francisco 49er’s quarterback Colin Kaepernick’s taking a knee in protest  during the National Anthem. Now whether that is the reason for diminished viewership is not the question, it was the sentiment expressed by people questioned in many stories, which shows the changing intent of the people. 

Moving ahead, we may see more movements towards nationalism. A further break up of the EU could be on the table as southern tier countries and regions. Yes the PIGS could rise up, but there are regions in these countries such as Catalonia in Spain are already actively seeking succession after years of rhetoric and hand wringing over the idea.

So the markets are reacting to this move in the quickest way it can. Sovereign bond prices have crashed as the yields climbed to yearly highs. According to bond market stats, there was $1.2 trillion in price losses last week after the election. While most people look at stocks prices going up is good for the US, this bond rout will have far more lasting effect.

The strengthening dollar is also playing havoc on Asian markets. The strong dollar will allow the Fed to raise rates in December, which means we could see a repeat of last year where markets are buoyed by year-end window dressing by Wall Street and then cratering stocks come January.