Welcome to illuminati silver, we tell you
the truth about silver. Today is Sunday 20th November 2016 and we
are covering the implications of Italy’s forthcoming Constitutional Referendum and
ask the question could its result in the destruction of the EU?
Firstly we need to provide some background. A constitutional referendum is planned to
be held in Italy on Sunday 4 December 2016. Voters are to be asked whether they approve
of amending the Italian Constitution to reform the appointment and powers of its Parliament,
as well as the partition of powers of State, Regions, and administrative entities.
The constitutional bill, proposed by Prime Minister Matteo Renzi and his centre-left
Democratic Party in 2014, was approved by an absolute majority of the MPs in both houses
of the Italian Parliament. This will be the third constitutional referendum in the history
of the Italian Republic: the other two were in 2001 and 2006.
Should the electors approve the bill, it would achieve the most extensive constitutional
reform in Italy since the end of the monarchy, not only influencing the organization of the
Parliament, but also improving, according to its proponents, on the poor government
stability of the country. Opposition parties have harshly criticised the bill, claiming
that it is badly written and that it will make the government too powerful.
Italy has, what may be defined as a “perfect” bicameral system – meaning its two chambers
have the same powers as each other. This often leads to political gridlocks and slow decision
making, and Mr Renzi is now calling to reduce the Senate’s Power reducing it from a Chamber
of 315 directly elected politicians and six lifetime appointees to a smaller “Senate
of Regions”. The new Senate would have just 100 seats – comprising
74 regional councillors, 21 mayors, and five presidential nominees, with the latter serving
for seven years rather than for life. Mr Renzi’s reform will tip the balance of
power towards the Chamber of Deputies – Italy’s equivalent of the House of Commons.
The Senate will retain its veto on constitutional matters, but the Deputies will have the final
say on everyday bills. The Senate will also be able to examine bills if a third of its
members wish to do so, although its suggestions will not be binding.
Both chambers have already voted in favour of the changes, but the measures did not reach
the required two-thirds majority to force the legislation through, and therefore a referendum
has been called. OK we hear you ask, what has this got to do
with the EU and its possible destruction? Well, Pro-EU Prime Minister Matteo Renzi has
promised to resign if the referendum fails, putting both his career and Italy’s status
in the EU at risk. He is quoted as saying:
“If I have to stay on in parliament and do what everyone else has done before me, that
is, to scrape by and just float there, that does not suit me.”
The Referendum could spark political and economic chaos as the country struggles to deal with
its ongoing banking crisis. Critics say that by quitting, the PM could
make way for the Eurosceptic Five Star Movement (MS5) to gain power. The party, founded by
comic Beppe Grillo, has pledged to call another referendum if it gets into office – this
time on pulling out of the Euro. Whilst we have all learned with Brexit and
Trump’s victory that Polls should not be believed, the latest ones are showing that
the Referendum proposal is likely to be rejected by a majority of between 5 and 7 points. Bookmakers
are providing odds of 75% chance of a Rejection. So what is likely to happen if the Referendum
is rejected and the Prime Minister resigns? Well we have no doubt that the Euro will take
a hit initially and the price of gold and silver will rise in terms of Euro’s. There
will be some political instability as the fear of a new Italian Government coming to
power in the New Year which will not be favourable to the EU project.
However, the aftermath of the Trump victory teaches us not to be too alarmist. If the
Euro falls in value, then where is the hot money likely to go? Yes the US dollar which
will strengthen even further and potentially weaken gold and silver prices, at least initially.
So for those of our listeners who are still stacking, the 5th December could prove to
be a very favourable buying day for precious metals. Of course the other issue could be
that European stock markets would open significantly down, with Wall Street following suit and
monies moving into the precious metals causing their prices to rise.
So as the old saying goes “You pays your money and takes your choice” – but either
way there will, in our opinion, be an immediate reaction.
Finally, as to the question; will a no vote lead to the destruction of the EU? We believe
no, but it is yet another chink in its armour, another loose brick in a slowly crumbling
wall. It won’t be devastating but the EU could well do without such a result.
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updates and offers. Our Facebook page which is updated daily can be found at facebook.com/illuminatisilver Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of