Giovanni B. Ponzetto - 🇨🇦🇮🇱 Profile picture
Sep 21, 2020 12 tweets 5 min read Read on X
THREAD: why "continuing frustration with political elites" is an horribly wrong title. on.wsj.com/2FPv3NR
@RobertMCutler @amlivemon @nglinsman @vtchakarova @pietercleppe @Halsrethink @shaun_riordan
(1/12)
Imagine, if you wish, a political class faced with a whole set of problems. #COVID19, a bad economic setup, plus a punitive level of total tax rate. BUT, you have on your side a constitution encouraging rule-by-decree, where parliament is only allowed to rubber stamp. (2/12)
Plus, a "revolving door" judiciary ensures that the State is "treated well" whenever there is a litigation between private entities and government. However, the linchpin of the system is the Republic Presidency, which is far from the referee is written to be.(3/12)
You read polls as well as any other, the situation is difficult, and any snap election is liable to express a right wing majority. After a couple of qualified votes, parliament would express a new president with a simple majority. Enters the Constitutional reform.(4/12)
The parliament which just voted 3bn. down #Alitalia's sinkhole is all agog about saving 40 mln. per year from 2023 by cutting the number of representatives. Who in Italy doesn't want politics cut down to size, I say? (5/12)
But since they do not reach the necessary votes, a referendum has to be passed, and it duly passed today. Italy would cut the congressmen number, if it could vote tomorrow.(6/12)
Here things get interesting: WE CANNOT.
The reform sets up a system where, until a whole lot of regulation and procedures, plus redistricting, are approved by the PRESENT center left parliament, where about one third of members will have to pack up in case of elections.(7/12)
Of course, do insert your "Turkey votes for Christmas" jokes here. But how can this happen? Simple. It can happen only if the constitutional powers responsible to keep a functioning democracy allow such a a law to be passed unchallenged.(8/12)
Of course, the words "conflict of interest" only apply to peons like me. otherwise a truly independent judiciary would have pointed out that this law effectively excises voters's right to vote for the duration and voided the whole process.(9/12)
That is, unless and until all the indispensable trappings of democracy had been put in place, which is a low priority process as of now. For proof, ask Hon. #Zingaretti, #PD's secretary. He has been calling for TABULATING a proposed electoral vote. (10/12)
Yet, none has been put through parliament since the referendum had been voted, a couple of months ago. Torrid pace, eh? So, our estimable elders have turned an admittedly clunky system in an unworkable quagmire that WILL have them pick the next 7 year Republic president.(11/12)
That will happen in 2022, so, with a tentative promise of 40 mn per year savings from 2023, Those in powers now bought the key to Italian power until 2029, when I will be a spry 67 years. Congratulations, all concerned! (end)

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More from @gbponz

Jan 5
Germany’s net-zero bills never shrink and the promised boom in green industries and jobs never materializes. via @WSJopinion There's a rookie mistake in the article.(/) @degiorgiod @MeredithAngwin @MarcoCantamessa @petunianelsole @moutetwsj.com/articles/germa…
"[...]plugging the hole will require either higher electricity rates or more taxpayer subsidies."
No, they are not different things: they are DESIGNED to look like different things, and one is meant to be harsher.(/)
If the whole "let's add an elaborate #Wind and #Solar scheme over the existing grid to emit less during the hours those actually produce electricity" was entirely falling on general taxation, those costs would distort the economy by lowering productivity and general demand.(/)
Read 8 tweets
Oct 22, 2023
If our hapless western politicians weren't well, hapless, they'd know that THIS is the time to "Show the Israeli flag on buildings". And not for Jews.(/)
@GemmaTognini @AlessandroPonz4 @AndreaVenanzoni @Curini @michaeltanchum @ardigiorgio @BaldingsWorld @moutet @GrayConnolly
Because by not making it abundantly clear that in free country you can express your views, collectively as well, but every citizen is responsible for its opinions and pays for their consequences, and ABOVE ALL there is the same fair treatment for all, (/)
/ governments are destroying both the moral base of our society AND our social contract. Think of it this way:
You are a lower middle class father of two married in church. You join the Truckers in Canada 🇨🇦.
Police in riot gear shot rubber bullets point blank at you.(/)
Read 11 tweets
Oct 14, 2023
Since the pro-palestinian framing on main stream media has started in earnest (I am watching a press program now here in #Italy), allow me to give you a vaccine dose. At all times, ask yourself:
1. Is (insert bigwig here) asking for hostage release by Hamas as a precondition?(/)
2. In your opinion, what keeps Hamas from releasing them on their own accord, considering that their official position is that atrocities were tag alongs not at their order?
(/)
3. Why is that no whistleblowing on hostage position is going on by Gaza civilians whose houses are under threat? Israel is affer all composed by a sizeable muslim population, who hold passports, vote. They'd happily give one for those lives.(/)
Read 6 tweets
Mar 12, 2023
Richard...sorry but I disagree on that. Deposit insurance is the most worthy and LESS costly of banking supervisory features, but it needs to have a maximum, and I will tell you why. (/) @INArteCarloDoss @Banqkys @MarketElf @GrayConnolly @jeuasommenulle @AlessandroPonz4
Deposit insurance is there to avoid runs on banks, where depositors all want to cash in all at once. But the key word is "cash", i.e. the number each of us sees at the #ATM machine or on the bank site as his own cash balance. However that's not cash. (/)
I have seen grandiose public plans about financial education, and deposit insurance is an ex post measure.. non one vaccinated citizens by telling them the truth: "when you deposit cash at a bank, you are LENDING them the money (which ceases to be yours). The bank invests it."(/)
Read 14 tweets
Mar 11, 2023
Eric, we've been through a decade of easy money, finance centric solutions of 2008 which was the key to the deindustrialization of the west. Now to some extent is better and to some is worse.(/)
The better part is that goods producing companies have NEVER returned to the blind trust in the banking system they had before. Less leverage, and slamming the door in bank salesmen's faces helped. (/)
Of course there is a whole section of equities which are more financial than Casino chips, but with #Zirp and #NIRP that couldn't be helped. I am not so pessimistic about the industrial base in the #US (#Europe is a different Bedlam). (/)
Read 7 tweets
Mar 9, 2023
"you need to have a longer time horizon" roughly translates in my book in "Run for your lives !!".
For one, if you are a final saver... you rarely HAVE a time horizon, nor you need one. Incidentally that's proof of who wrote #MIFID.(/)
MIFID questionnaires have a mandatory section on time horizon. Why that measure? because while for an individual saver that concept is basically meaningless, for those meant to be KEPT from pushing unnecessary risk onto savers it's daily bread.(/)
Banks indeed have time horizons and time preferences well and truly planted into their brains since they have a teeny weeny share capital, and finance their assets through the issuance of debt. They indeed try to match maturities across assets and liabilities. (/)
Read 9 tweets

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