Daily Bell 
January 19, 2012
Italy is being pushed into depression by monetary union … There is no clearer indictment of the dysfunctional nature of monetary union. … Criminal. Obviously, Italy and Germany can no longer share the same monetary policy. Ergo, Germany should leave EMU, pronto. The Banca said Italy’s economy contracted by 0.5pc in the last quarter of 2011. It will shrink by a further 1.5pc this year, with no growth in 2013. This is a direct result of the misguided pro-cyclical austerity polices imposed by Angela Merkel  and the ECB  – the infamous Trichet letter – without offsetting monetary and exchange stimulus. – UK Telegraph/ Ambrose Evans-Pritchard 
Dominant Social Theme: The EU  just isn’t working. What a mess. Who could have foreseen it?
Free-Market Analysis: One of our favorite mainstream journos, Ambrose Evans-Pritchard, writes in his Telegraphblog page that the current EU monetary union is bankrupting Europe.
Good for him. More and more evidently, it’s true. The question is, then, why insist on it? The facts are coming clear in countries as disparate as Spain, Greece and even Hungary. Italy’s growth is obviously shrinking, he writes, and this is a direct result of Europe’s absurd “austerity measures .”
These austerity measures are not an after-thought, by the way, but a bedrock fundamental of the EU’s approach. Evans-Pritchard refers to a letter from former top European central banker, Jean-Claude Trichet . Search the Internet for it, and you’ll find Reuters  explaining that back in August, “The European Central Bank demanded sweeping reforms and fiscal tightening measures from Italy.”
Trichet would not, Reuters reports, allow the ECB to purchase underwater Italian bonds until the government committed to “austerity.” The demand letter was published in the Corriere della Sera. The letter had been rumored but not confirmed. Reuters added the following:
In unusually clear and explicit language, Trichet and Draghi urged Prime Minister Silvio Berlusconi  to make deep reforms including opening up public services, overhauling rules on wage bargaining and hiring and firing, and toughening deficit cuts.
It said the government should aim to bring the deficit down to 1 percent of gross domestic product by 2012 and balance the budget by 2013, a year ahead of schedule, “mainly via expenditure cuts.” “We trust the Government will take all the appropriate actions,” it ends.
We can see a cause and effect here. There is no doubt that the people at the top of the EU know exactly what they are up to. Heck, they develop the EU’s policies, economic and otherwise.
Austerity, as we have often noted, is nothing but a kind of promotion of the Anglosphere  power elite  designed to crush the independent states of Europe. The Brussels bureaucrats are on record as saying that a Eurocrisis would be utilized to foster “closer” relationships.
But that’s a surface analysis. The deeper one, as we’ve long pointed out, is that the Anglosphere power elite intends to use the current crisis to continually deepen and widen economic distress.
A REAL depression is in their interest, in our view, based on the idea that “they” want to implement world government and a one-world currency. This only sounds paranoid if one considers central banking  itself. From a handful of banks in the early 20th century, central banks have grown to hundreds in the 21st.
One of the first financial changes implemented in Iraq and Afghanistan when NATO  took over was the creation of a central bank. This is by accident? No, it’s not.
History show us there is a tiny group of central banking families that control this vast apparatus. And history also shows us that these families were never dislodged from their seats of power. They and their enablers and associates apparently run the world’s financial community.
Their goal, apparently, is a New World Order  – and here again we can see its construction quite clearly over the past century. There are a slew of globalist organizations that have sprung up that purport to speak for a non-existent global community.
But if one follows these things closely, one is aware that the kinds of evolutions the top men seek are not implemented easily or cleanly. It usually takes an economic crisis and perhaps a war or several wars to create the “change” that is necessary. This is surely what the 20th century’s “directed history” shows us.
And so, again, we surmise they want and seek a depression, a global one. There is not, in fact, much they need to do as we believe one shall arrive on its own. Central bank boom-and-bust cycles guarantee it. First America faltered, then Europe and now, sooner or later, China.
Of course, such a worldwide depression must be handled delicately. The trick is to create an economic downturn without affecting the larger engines of global governance. The European Union is one such.
We think, in fact, the powers-that-be have already been forced to sacrifice the British-EU relationship in order to maintain the larger charade of the EU “crisis.” This is because, in our view, the crisis is in some ways worse than anticipated and has been aggravated by the Internet.
It is the Internet – the Internet Reformation , we call it – that has shed clear light on the elite’s 20th century directed history and on its continued manipulations in the 21st century. The Internet, a process not an episode, is almost impossible for the elites to confront and control, at least now anyway.
Thus, as always, everything that the elites do must in some sense be justified. And, further, they must walk a fine line between abetting a deepening financial crisis and promulgating a further breakdown of the EU itself.
The recent British/EU split over financial regulation – while mostly for show – was indeed evidence to us that the Anglosphere power elite is losing control of the Euro-dialogue. The idea is to use the current crisis to pull the EU together, not tear it apart.
As we have written, the much-trumpeted split, as much of a sop as it was to public opinion, is a significant adjustment. The meme  is beginning to crumble, much as the global warming  meme has done, and the war on terror , and even central banking itself.
The idea in the EU is evidently and obviously to put the IMF ‘s playbook into practice. Insist on higher taxes, lower social services and allow the top Western corporations to buy up assets at pennies on the dollar. In the process whole societies are wiped and middle classes – always elites’ enemies – are savaged.
We shall see in this era of the Internet how successful the apparent planned destruction of the world economy will be. We shall watch with interest, especially, to see if the EU survives relatively intact or if it shrinks modestly or radically.
Conclusion: This will, we would argue, be a further comment on the Internet Reformation itself and the impact it is having on the one-world plans of the powers-that-be. A litmus test? At least a referendum.