Showing posts with label EU. Show all posts
Showing posts with label EU. Show all posts

Monday, December 8, 2025

Preventing Empire Collapse | Alexander Mercouris and Alex Christoforou

The new 33-page US National Security Strategy, strongly shaped by Elbridge Colby and personally prefaced by President Trump, represents a partial yet still incomplete departure from three decades of neoconservative pursuit of hegemony. Officially released on December 4, it explicitly renounces any further quest for global domination, acknowledges that post-1991 globalism hollowed out American industry while delivering few benefits to ordinary citizens, and ultimately weakened the United States itself. It faults an over-reliance on allies and proxies that Washington could not fully control—pointedly implying Israel and European-driven adventures in Ukraine—for repeatedly pulling America into conflicts that did not serve its core interests.
 
» The unipolar era is over. «
» The unipolar era is over. « 
 
In place of hegemony, the document calls for aggressive domestic reindustrialization, technological supremacy, and a return to traditional spheres-of-influence politics. It resurrects an explicitly imperial interpretation of the Monroe Doctrine, insisting that no external great power may have any presence whatsoever in the Western Hemisphere and that the United States must maintain absolute predominance there. At the same time, it insists that America must remain the world’s foremost military and economic power and must permanently prevent any rival from ever attaining the degree of primacy the United States itself enjoyed in recent decades.

» Extraordinarily harsh toward European leadership and the EU. «
»
 
Extraordinarily harsh toward European leadership and the EU. «
 
China continues to be treated as the sole peer competitor capable of achieving parity or even supremacy; opposition to Taiwan’s reunification with the mainland remains a clear priority, revealing no substantive softening despite changed rhetoric. Russia, by contrast, is now a power with which the United States must seek accommodation and continental stability. The document is extraordinarily harsh toward European leadership and the European Union, accusing Brussels of delusional thinking on Russia and Ukraine, economic self-destruction, creeping authoritarianism, and the erosion of European civilization itself. Stabilizing Europe, it argues, requires ending the Ukraine war in partnership with the continent’s other great power—Russia.
 
The new operating model abandons the image of America as a "weary Titan" bearing the world’s burdens alone. Instead, Washington will concentrate on its own hemispheric backyard while outsourcing or franchising security responsibilities elsewhere: Europe is expected to provide for its own defense, Asia will be handled by regional proxies, Africa reduced to transactional resource partnerships, and the Middle East treated as a complicated but no longer central theater. These partners will still answer to the United States and pay their dues, yet day-to-day management becomes their problem.

Historically, this precise pattern—admitting overextension, rejecting free-trade globalism, demanding allied burden-sharing while assuming continued overall control, and invoking the "weary Titan" metaphor—appeared during the terminal phases of both the British Empire under Joseph Chamberlain in the 1890s–1900s and the Spanish Empire under Gaspar de Guzmán, Count-Duke of Olivares in the 17th century. In both cases the reforms were offered as salvation but in reality signaled irreversible imperial decline.

» Explicitly imperial interpretation of the Monroe Doctrine. «
» Explicitly imperial interpretation of the Monroe Doctrine. «
 
The strategy is riddled with contradictions. While calling for stabilization with Russia, Pentagon sources simultaneously press Europe to be combat-ready against Moscow by 2027; Europeans counter that 2030 is more realistic, and Viktor Orbán openly states that the official EU position is preparation for war with Russia by that later date. The unspoken American ultimatum to Europe is therefore: achieve full military self-sufficiency on Washington’s timeline or the United States will negotiate directly with Moscow over Europe’s head and end the Ukraine conflict on Russia’s terms. Given Europe’s incapacity to meet that deadline, the second path becomes the default—yet powerful entrenched forces in Washington, Brussels, and the broader transatlantic apparatus remain committed to perpetual confrontation with Russia and containment of Russia.

» Franchising security responsibilities elsewhere. « Joseph-Noel Sylvestre "The Plunder of Rome"
»
 
Franchising security responsibilities elsewhere. «
 
The document is ultimately a fragile compromise between a small restraint-oriented faction and the far larger interventionist bureaucracy. History suggests the bureaucracy will prevail, just as it defeated Chamberlain and Olivares. Moscow and Beijing instantly recognize the contradiction of a United States that urges its vassals to keep fighting while posing as the reasonable party seeking stability; they will not be deceived. Russia, in particular, reads the American declaration that peace in Ukraine and stabilized relations with Moscow are now core US interests as confirmation that time is on its side, that it can stand firm on all demands, and that Washington will eventually concede because it is the United States, not Russia, that now needs the war to end.

Thus, while the 2025 National Security Strategy marks the intellectual arrival of restraint-oriented thinking inside parts of the American national-security establishment and constitutes an official admission that the unipolar era is over, its internal contradictions and the entrenched power of the old order make it unlikely to survive in anything like its present form. Like its British and Spanish predecessors, it may ultimately be remembered less as the blueprint for managed retrenchment than as one of the first formal acknowledgments that American hegemony has irrevocably ended.
 
Reference:

Tuesday, December 2, 2025

Is Ukraine Developing Nuclear Weapons with UK and France? | Gerry Nolan

If Kim Dotcom is right (his bating average is very high), and Ukraine really is developing nuclear weapons with UK and French help, then Europe isn’t just escalating. It’s playing Russian roulette with civilization. And the worst part? It’s plausible. Horrifyingly plausible.

» Ukraine is developing nuclear weapons with the help of the UK and France. This is why the peace process takes so long. 
The US knows and it is playing on time. Ukraine is a US client state. If Trump wanted peace he would have it immediately. 
Russia is being played. « — Kim Dotcom, December 1, 2025.
NATO’s top general has now crossed the line from deterrence into madness. Admiral Giuseppe Cavo Dragone has publicly floated the idea of "preventive action" against Russia—meaning pre-emptive strikes on targets "where drones could be ready to be launched." Europe isn’t defending itself; Europe is announcing that it is preparing for war and is ready to strike first. This is elite panic—the behavior of governments that fear their own people far more than they fear Moscow.
This adds up sadly... That Ukraine is developing a nuclear program with assistance from Britain and France, a charge that will be dismissed in Western capitals, but one that fits too neatly with Kiev's own public statements. This isn’t a wild accusation from the fringe. Ukraine’s leadership has repeatedly signaled nuclear ambitions: from Zelensky in Munich hinting at abandoning the Budapest Memorandum, to the ambassador, Andrey Melnyk, in Berlin threatening nuclear rearmament, to “we may need nukes if NATO won’t take us.” These aren’t slips. They are warnings and confessions disguised as hypotheticals.

Zelensky's potential replacement, Zaluzhny, suggests Ukraine could deploy nuclear weapons as a
security guarantee. According to the dismissed general, other options include NATO membership or
a "large military contingent" to confront Russia. They just crave a nuclear showdown.
 
And now? Europe is openly discussing preemptive strikes on Russia. NATO’s top general, Cavo Dragone, floated "preventive action" against Russian sites, code language for first-strike doctrine. Russia responded by calling it "an extraordinarily irresponsible step." They’re right. This is not deterrence but brinkmanship from a political class that has lost its mind, and knows it.
 
»
I was actually in Monaco earlier this summer… and every other car there was an Italian supercar, like a Pagani or Bugatti, and
they all had UKRAINE plates. They’re STEALING that money, and it’s just one big corrupt scandal. «Donald Trump Jr.
 
Why is the claim more than plausible? Because Kiev has the motive, is on record expressing the intent (to give cover for its patrons), the remnants of a Soviet scientific base, and the Western patrons capable of providing the expertise. And because a desperate state with collapsing front lines, a sacrificed population, and dwindling Western patience will consider anything, including the unthinkable, to secure leverage.

Rus
tem Umerov
sticks to the script: "gratitude to the American people, the leadership, Trump’s peace initiative." 
"The US is hearing us, the US is supporting us, the US is walking beside us." Little substance, lots of pleasantries.
 
And Europe? Europe is no brake. Europe is the accelerant. London and Paris, terrified of their own political collapse, are escalating in every direction: naval-drone terror, hybrid and kinetic warfare, now nuclear ambiguity. They fear their own voters more than they fear Moscow. That’s why they push Zelensky to take risks no sane leadership would touch. Because if Ukraine falls, their governments fall with it.

Zelensky and "The Spirit of Ukraine," 2022 and 2025.

This is how great powers sleepwalk into catastrophe: a desperate puppet state, unhinged European elites, and nuclear ambiguity. And a military alliance openly debating first strikes on a nuclear superpower.

»
It's over. NATO and the EU are finished. The Empire of Lies is crumbling. «  
 
The world is standing at the abyss. Not because Russia wants war, but because Europe’s political class is trying to outrun the judgment waiting for them at home. And if they drag Ukraine into becoming a terror regime with nukes, or drag NATO into first-strike doctrine, the next miscalculation won’t be “hybrid warfare.” It will be irreversible. We are closer to the abyss today than at any point since 1962, and the people lighting the fuse are in Brussels, London, and Paris. Not Moscow.

Tuesday, October 21, 2025

On Gold, EU Capital Controls, CBDCs, Cryptos, and Stocks | Martin Armstrong

The Gold price is driven by geopolitical uncertainty, not peace expectations, with central banks acquiring it for its neutral status against collapsing European sovereign debt. European investors buying gold while leaders escalate Russia tensions create a self-reinforcing fear cycle. This risk has prompted major European institutions to relocate gold reserves to New York and Singapore, anticipating the historical certainty of European capital controls during crises.

Gold's powerful rally is terminal, completing Wave (3) past $4,380 just as Market Vane's Bullish 
Consensus hits a historic extreme of 95, signaling an imminent, major corrective Wave (4).

Evidence of control includes the new mandatory bank account declarations—the initial phase of preventing capital flight. Further anticipated steps include regulating cryptocurrencies and implementing Central Bank Digital Currencies (CBDCs) by January 2026, likely justified by a false flag event. Existing withdrawal limits (e.g., in Spain) confirm the focus on financial control, a practice rooted in historical currency cancellations and asset restrictions during past European crises.

Dow valuation relative to gold now below mid-1960s.

The Socrates model forecasts a panic cycle in 2026 with intensified conflict and Euro stress, marked by a dangerous, unprecedented convergence of the international conflict and civil unrest cycles. This systemic risk is compounded by the destabilizing effect of Europe's large, unsupported migrant population. Economically, interest rates will rise, particularly in Europe, as geopolitical risk increases debt service costs. The unsustainable US debt trajectory confirms the sovereign debt crisis will lead to government failure when debt cannot be rolled over.

Investors are now in a "private wave," prioritizing private assets over government solvency. The primary stock market bubble risk lies in AI stocks, not blue-chip indices used by institutions for large-scale capital parking. Consequently, "smart money" is relocating capital to the United States (equities and real estate). This strategic move anticipates the CBDC's ultimate function: an impenetrable barrier to capital outflows, reflective of Europe's controlling political philosophy.

 
Larry Williams' outlook for gold in Q4 of 2025.

The EU planned to launch the digital euro in October 2025. Now it’s delayed to 2029, officially for “technical reasons,” 
but actually after Trump banned the Fed from issuing digital legal tender, effectively sidelining the ECB too.

See also:
David Hickson (October 20, 2025) - Hurst Cycles Update for S&P 500 and Bitcoin; Fo
cus on Gold

Thursday, October 9, 2025

The West's Dystopia: War, Fragmentation, and Perversity | Emmanuel Todd

Trump’s perversity is unfolding in the Middle East, NATO’s warmongering in Europe. [...] Such is our world as we approach 2026. The dislocation of the West takes the form of a ‘hierarchical fracture’.

» One of the fundamental concepts of the West’s defeat is nihilism.  «

The United States is giving up control of Russia and, I increasingly believe, of China. Blockaded by China for its imports of samarium, a rare earth element essential to military aeronautics, the United States can no longer dream of confronting China militarily. The rest of the world – India, Brazil, the Arab world, Africa – is taking advantage of this and slipping away. But the United States is turning vigorously against its European and East Asian ‘allies’ in a final effort at overexploitation and, it must be admitted, out of sheer spite. To escape their humiliation, to hide their weakness from the world and from themselves, they are punishing Europe. The Empire is devouring itself. This is the meaning of the tariffs and forced investments imposed by Trump on Europeans, who have become colonial subjects in a shrinking empire rather than partners. The era of liberal democracies standing in solidarity is over.

 
[...] Cutting the European continent in half economically was an act of suicidal madness. [...] The rage resulting from defeat is leading each country to turn against those weaker than itself in order to vent its resentment. The United States is turning against Europe and Japan. France is reactivating its conflict with Algeria, its former colony. There is no doubt that Germany, which, from Scholz to Merz, has agreed to obey the United States, will turn its humiliation against its weaker European partners. My own country, France, seems to me to be the most threatened.
 

[...] One of the interesting features of America today is that its leaders are finding it increasingly difficult to distinguish between internal and external issues, despite MAGA’s attempt to stop immigration from the south with a wall. The army fires on boats leaving Venezuela, bombs Iran, enters the centres of Democratic cities in the United States, and sponsors the Israeli air force for an attack on Qatar, where there is a huge American base. Any science fiction reader will recognise in this disturbing list the beginnings of a descent into dystopia, that is, a negative world where power, fragmentation, hierarchy, violence, poverty and perversity intermingle.
 
So let us remain ourselves, outside America. Let us retain our perception of the inside and the outside, our sense of proportion, our contact with reality, our conception of what is right and beautiful. Let us not allow ourselves to be dragged into a headlong rush to war by our own European leaders, those privileged individuals lost in history, desperate at having been defeated, terrified at the idea of one day being judged by their peoples. And above all, above all, let us continue to reflect on the meaning of things.

(from the preface to the 2025 Slovenian publication of La Défaite de l'Occident) 

Emmanuel Todd, one of the last phenotypical old-school French intellectuals, is a historian, sociologist, demographer, statistician, anthropologist and political scientist at the National Institute of Demographic Studies (INED) in Paris. A prominent critic of the US, globalization, and European integration, he is best known for predicting the collapse of the Soviet Union (La Chute Finale, 1976), After the Empire (2002) and his 2024 book The Defeat of the West

Friday, September 19, 2025

Western Sanctions: War by Other Means—38 Million Killed Since the 1970s

Sanctions sound like bureaucratic tools. In reality, US and EU sanctions have killed an estimated 38 million people since the 1970s, according to The Lancet Global Health. Sanctions are not peaceful alternatives to war—they are weapons, often deadlier than bullets. 
 
» Over the past decade, we estimate that unilateral sanctions caused around 560,000 annual deaths worldwide. 
It is hard to think of other policy interventions with such adverse effects on human life that continue to be pervasively used. «
Francisco Rodríguez, Silvio Rendón, and Mark Weisbrot, August 2025.

By the 1990s and 2000s, Western sanctions hit more than 60 countries. Iraq’s economy and water systems were destroyed, leaving hundreds of thousands of children to die from preventable disease. Venezuela in 2017–2018 lost 40,000 lives in one year due to food and medicine shortages. Cuba in the 1960s faced similar tactics, with a US State Department 
Memo advocating for “hunger, desperation, and the overthrow of the government.” 

Annual deaths caused by different sanctions by age range, 2012–21.
 
 
“The Food Weapon is mightier than missiles.” On December 10, 1974, the US National Security
Council, under Secretary of State Henry Kissinger, completed the National Security Study 
Memorandum 200: “Control the food supply, and you control the people.”

Half a million deaths every year—not from bombs, but from hunger, poverty, and preventable disease caused by sanctions. Victims are not politicians or elites—they are women, children, and the elderly. Sanctions kill quietly, targeting the most vulnerable. They are enforced through control of currencies, SWIFT, and critical technology. Yet cracks are emerging: Russia has adapted, China has built alternatives, and the global south is strengthening trade, finance, and technology networks independent of the West.

Wednesday, September 10, 2025

Q4 2025 Outlook: Geopolitics, Geoeconomics, and Investments | Simon Hunt

Amid a cascade of geopolitical and economic developments, the Shanghai Cooperation Organization (SCO) summit—along with bilateral meetings in Tianjin and Beijing—emerged as the pivotal moment. President Xi’s opening address concluded with a clear message: “It’s time for action.” 
 
Simon Hunt, British economist and CEO of Simon Hunt Strategic Services, is a veteran global 
strategist with 50+ years of experience advising governments and institutions on macroeconomics, 
copper markets, China, and geopolitical risk, and a pioneer in industrial metals intelligence.

Multipolar Ultimatum: SCO Summit Signals Global Realignment 
This marks a new era of geopolitical posture—one of confident unity among the East, and a tacit ultimatum to the West. BRICS is ready, but not seeking a fight. Despite the growing strength of this bloc, their message remains: “We don’t want war, we invite partnership. But if you refuse, we will proceed without you.” This stance was echoed during a high-profile military parade showcasing next-generation hardware (HERE, select English audio track). 

» The wars in the Middle East and in Europe will escalate. «
 
The West has effectively pushed Russia and China together—and now India as well. This fulfills Brzezinski’s warning that a Russia-China alliance would mark a fatal blow to US global dominance. The realignment is now irreversible.

India, once diplomatically dancing between the West and the East, has now aligned itself firmly with BRICS. The SCO summit made this unmistakably clear through images and interactions between leaders. With China and Russia already unified, India’s inclusion forms a powerful axis comprising the world’s three largest countries by population and resource depth.

Within the SCO framework, India and Pakistan—traditionally adversarial—may find common ground. Russia maintains strong ties with India, while China supports Pakistan. Pakistan's historical alignment with the CIA may now be shifting toward China, driven by strategic and economic incentives. Even Pakistani defense leaders have acknowledged the transactional nature of their past Western alignment.
 
US Can Adopt Multipolarity Or World Will Split Into Two Blocs
The coordinated body language, messaging, and preparedness of Xi Jinping, Vladimir Putin, and Narendra Modi made it clear: Washington and its allies are being asked to join a multilateral world. Should they refuse, the world will split into two irreconcilable blocs 
 
Historically, empires have accepted only victory or defeat, and the United States may not shift until crisis compels it. The refusal to accept a multipolar order will lead to escalating global tensions. The window for peaceful integration is closing.
 
BRICS Currency Incoming: Gold-Backed Alternative to Dollar Imminent
Within ongoing BRICS meetings, particularly between Russia and Brazil, a new currency is being discussed—one expected to be gold-backed. The Shanghai Gold Exchange is building vaults across BRICS countries, including Saudi Arabia, enabling energy trade in yuan and its conversion directly into gold, bypassing the dollar.
 
China is already settling oil trades in yuan, which Saudi Arabia converts into gold via the Shanghai exchange. A physical gold vault in Saudi Arabia would streamline this process, and with a narrowing trade imbalance, this yuan-for-gold mechanism is becoming systemic. Russia and China have already maintained such a balance for years via vaults in the People's Bank of China (PBOC).
 
Russia warns "US will use crypto to escape its $35 trillion debt". 
 
Gold at Record Highs: Short-Term Pullback Before Next Bull Leg
Gold futures reached $3,673, with silver touching $41.92. However, a short-term correction to $2,800 may occur due to the Treasury’s need to lower interest rates. This is seen as a deliberate move to accumulate gold cheaply before an eventual revaluation.
 
Silver Rising: Central Banks and BRICS Nations Accumulating
Saudi Arabia recently bought $20M worth of SLV shares. Russia has opened its first silver reserve. The US added silver to its official list of critical minerals, indicating institutional recognition of its strategic value alongside gold. The deeper message: central banks no longer trust paper assets.
 
Two-Tier US Currency Model Anticipated
The US is already in recession, and Europe is close behind. Real money supply is shrinking globally—one of the most reliable indicators of economic activity. Liquidity injections may not be enough to revive growth given looming structural banking pressures. 
 
A previously disclosed forecast from over a decade ago suggested the US could eventually introduce two dollars—a gold-backed domestic dollar and a floating offshore dollar. Technical models predict the DXY will fall to 50 by 2028, effectively doubling gold prices in dollar terms.

A potential short-term dollar rally—DXY rising from 98 to 103—could temporarily deflate gold prices. This would precede the next wave of the precious metals bull market. Treasury-driven rate cuts and liquidity injections will aim to stabilize the system ahead of 2028's deeper crisis.

American pension funds and institutions may be compelled to absorb US debt, given the exodus of foreign buyers like China. Watch India’s actions closely in this space—they will serve as a bellwether for BRICS monetary divergence.
 
 
» The contrast between Chinese dynamism and the total rot and death cult of the West and its vassals defies imagination. «
 
Ukraine Escalation Risk: EU3’s Miscalculated Strategy
The EU3—France, Germany, and the UK—appear poised to intensify the Ukraine conflict by inserting troops into the country, backed by US-supplied weapons and funded through European debt. This move, driven by strategic delusion, risks widening the war and deepening economic instability across Europe.

Should EU3 forces move into Ukraine, expect immediate capital controls in Europe, with global spillover via interconnected banking systems. This would shortcut any inflationary cycle and thrust the world directly into recession.
 
A leaked directive from France reportedly instructed hospitals to prepare for mass casualties in 2026, tied to potential direct conflict with Russia. Sources close to French military and intelligence circles confirm the plausibility of this scenario, citing deployments as “peacekeepers” that will effectively function as combat troops.
 
Iran-Israel Tensions Rising: Preemptive Strike Scenarios Loom
Parallel to Ukraine, the Middle East simmers. Iran is reinforcing its defenses with aid from Russia and China. Intelligence hints at potential preemptive strikes by Iran against Israel, marking a dangerous turning point. Iran’s foreign minister has dismissed negotiations with the US as traps, citing repeated betrayals masked as diplomacy.
 
» Globalization is coming to an end, the Spring and Autumn period is over, and the Warring States period is about to begin.
[...] From now on, the possibility of reconciliation between countries on this planet will increasingly cease to exist.
The entire Eurasian continent is about to engage in a battle royale, where every nation must firmly
choose sides in the process: either become a servant of the United States or be its enemy. 
[...] They can only choose to stand with us or face destruction. «
Chinese opinion regarding Israeli bombing of Qatar on September 9, 2025.
 
Despite its proximity to conflict, the UAE may be spared thanks to deep trade ties with Israel, cultural links with Iran, and the presence of a modern Iranian community. Any Iranian retaliation may be surgically limited to American military installations, avoiding broader damage in the UAE.

Climate Shift Confirmed: From Warming to Cooling
Melting Greenland ice is releasing cold freshwater into the Atlantic, disrupting ocean currents. Though silenced by institutions like NOAA, internal research suggests we are entering a cooling phase, not warming. The agricultural and economic implications are immense.

Food Inflation Crisis: Cold Weather, and Dust Bowl Patterns Collide
Food prices are already spiking. The FAO food index rose 7.6% YoY in July. Fertilizer shortages and extreme weather may cause one of the coldest winters in 50 years in the US Midwest. Add to this the return of the 90-year Dust Bowl cycle, and the outcome is severe crop failures and soaring food inflation.
 
Demographics vs. Growth: Global Economic Model Faces Existential Challenge 
The world's demographic peak (around 9 billion) and subsequent decline challenge the existing economic model based on infinite growth. However, this transformation will unfold over decades—not in the immediate 5-year cycle.
 
Short-Term Strategy: Long-Term Investment Now Extremely Risky
In the current fractured world order, long-term investments—by individuals or institutions—are hazardous. A global recession or depression is likely by 2028, with paper assets poised for a collapse. However, if geopolitical escalations are avoided, equities and base metals may experience a bull market from mid-2025 to 2028.

Hungary and Slovakia are likely to resist full EU alignment and avoid deeper conflict involvement. These countries, being semi-detached from Brussels, may serve as safe havens during broader European turmoil.
 
Individuals should prepare immediately. Stock deep freezers, convert garden space into vegetable beds, and plan for prolonged food cost spikes. This is a practical, immediate defense against inflation and disruption.

Thursday, August 28, 2025

Europe's Debt Ponzi Scheme 2.0—Default or Forced Loan | Martin Armstrong

During the Panic of 1893, which became a global contagion, Italy couldn't roll over its short-term debt, as it was unable to sell new bonds to pay off maturing ones. When faced with circumstances similar to what we see today, Italy did not officially default in the classic sense of failing to pay. Still, it executed a coercive debt restructuring that is widely considered a selective default or soft default in 1893–1894. This is what we refer to as a forced loan.

» We are living in a perpetual Ponzi scheme. « 
 
Italy was facing a run on its short-term debt and unable to roll over the maturing paper because there were no buyers. The Italian government, led by Prime Minister Francesco Crispi, did not formally declare a default. Instead, it passed a law (Legge 11 luglio 1894, n. 386) that forcibly converted the short-term Buoni del Tesoro into a new long-term bond. The law mandated that holders of the short-term Treasury notes could not be repaid in cash upon maturity. Instead, they were forced to exchange their maturing short-term paper for a new long-term government bond, called the “Rendita Italiana 5%” (5% Italian Annuity).

Where inmates run the asylum, insanity rules.

This new bond had a 5% coupon but was issued at a price below par (effectively giving a higher yield to compensate, somewhat, for the forced nature of the deal. Crucially, it was a perpetual bond, meaning it had no final maturity date.

The Italian government unilaterally changed the terms of its debt. Investors lent money for 30 days, expecting to be repaid in cash at the end of that term. The government broke that promise. Investors had no choice. They could not get their cash back; their only option was to accept the new long-term instrument. While they received a new security, it was illiquid (perpetual), and its value was uncertain. This action caused significant financial losses for many Italian banks and citizens who held the paper.

I would expect that Europe will do this when it can no longer issue new debt to pay off its old debt. We are living in a perpetual Ponzi scheme. There is only one way this ends, and that is a default or a forced loan. 
 
 
»
Europe needs war as a distraction, and stablecoins are, in fact, war bonds. « 
 

See also: