The Counterrevolution to the EU's Centralization

Venice just held a 'non-binding' referendum on whether the city should once again become an independent city-state and secede from Italy. An astonishing 89% voted 'yes' (which makes the outcome of the Crimea referendum no longer look 'strangely one-sided'). This happens just as Scotland's vote whether to remain part of the UK is approaching and Catalonia is preparing to vote whether to remain with Spain.

 

“Venetians have voted overwhelmingly for their own sovereign state in a ‘referendum’ on independence from Italy. 

Inspired by Scotland’s separatist ambitions, 89 per cent of the residents of the lagoon city and its surrounding area, opted to break away from Italy in an unofficial ballot.

The proposed ‘Repubblica Veneta’ would include the five million inhabitants of the Veneto region and could later expand to include parts of Lombardy, Trentino and Friuli-Venezia Giulia. The floating city has only been part of Italy for 150 years. The 1000 year–old democratic Serenissima Repubblica di Venezia, was quashed by Napoleon and was subsumed into Italy in 1866. 

Wealthy Venetians, under mounting financial pressure in the economic crisis, have rallied in their thousands, after growing tired of supporting Italy’s poor and crime ridden Mezzogiorno south, through high taxation. 

Activists have been working closely with the SNP on their joint agendas, even travelling to Scotland alongside Catalonians and Basque separatists to take part in pro independence rallies. Campaigners say that the Rome government receives around 71 billion euros  each year in tax from Venice – some 21 billion euros less than it gets back in investment and services.

Organisers said that 2.36million, 73 per cent, of those eligible to take part voted in the poll, which is not recognised by the Rome government. The ballot also appointed a committee of ten who immediately declared independence from Italy. Venice may now start withholding taxes from Rome.”

 

(emphasis added)

And while the Scottish and Catalan pro-independence forces are toying with the idea of joining the EU, there is another part of Italy that wants to secede as well and wants to definitely get out of the EU – in fact, this goal appears to be one of its motives. The island of Sardinia – which contrary to Venice is actually quite a poor place – wants to leave Italy and join Switzerland instead (this would of course be a brilliant move for the Sardinians):

 

“As familiar as it is, however, the secessionist spirit has never manifested itself in quite the way a small group of activists is advocating in Sardinia. Angered by a system they say has squandered economic potential and disenfranchised the ordinary citizen, they have had enough. They want Rome to sell their island to the Swiss.

"People laugh when we say we should go to become part of Switzerland. That's to be expected," said Andrea Caruso, co-founder of the Canton Marittimo (Maritime Canton) movement. While many have dismissed the proposal as a joke, its supporters insist they are serious. "The madness does not lie in putting forward this kind of suggestion," said Caruso. "The madness lies in how things are now."

A ruggedly beautiful gem in the middle of the Mediterranean, Sardinia – one of Italy's five autonomous regions – has always had a strong identity of its own. DH Lawrence, visiting in 1921, described it as "belonging to nowhere, never having belonged to anywhere". For a minority of Sardinians, independence remains the island's best chance for success. Caruso and Enrico Napoleone, the two 50-year-old school friends behind Canton Marittimo, disagree with them. After decades of keeping faith in Rome, they now believe that staying in Italy can do no good- but fear that going it alone could end badly, too.

The answer, they say, lies more than 1,000km to the north. "Having good teachers is something which in life everyone considers positive. We don't educate our children at home; we try to find the best teacher in the school," said Caruso, a dentist from Cagliari. "Why, when we have this mentality with our children, do we have to renounce it when talking of our people? "We think of Switzerland as a good teacher who could lead us on a path of excellence."

As the 27th canton, Sardinia, so goes the argument, would bring the Swiss its miles of stunning coastline and untapped economic potential. Sardinia could retain considerable autonomy, while also reaping the benefits of direct democracy, administrative efficiency and economic wealth.

The fact that Switzerland is not in the EU is "definitely" a plus, say the activists. Like many Italians, they no longer believe in Brussels's ability to deliver the dream – both economic and cultural – they once thought it could.

 

(emphasis added)

One of these days, one of the secessionist movements in Europe is likely to succeed and then a domino effect may be let loose. The Crimea's recent change of allegiance has probably energized these movements further.

 

Italian-states-before-unificationItalian States prior to Italy's unification – click to enlarge.

 

Anachronism Nation State

And it is about time, too. The concept of the centralized, large-scale nation state is anachronistic and should be abandoned. The increasing centralization of the EU is going in the wrong direction. Once again it must be stressed that for the individual citizen, it matters not one whit whether self-important EU politicians and bureaucrats can 'throw around their weight on the international stage'.

What matters far more is that they would likely be treated a lot better and become more prosperous if everything fell apart into tiny independent territories. That would definitely not mean that there could be no free trade zone, or that every region would necessarily use a different currency. The main goals of the founders of the EU, namely free trade and free movement of capital and people need not be abandoned – on the contrary, they would likely be adopted without hesitation (see below why). When a great many small territories compete with each other for citizens, then they are all going to be forced to make a good offer that makes people want to stay. Large declines in taxes would be an immediate effect, but not the only effect that could be expected.

As Hans-Hermann Hoppe points out in this interview, the unification of the German states (Germany consisted of over 360 independent territories before 1794, and 39 were still left prior to the 1871 unification) was in many ways a big mistake in hindsight:

 

Q: “You want a return to “Kleinstaaterei”, the system of mini-countries of the 19th Century? 

A:Take a look at the economic and cultural development. In the 19th century the area of what Germany is today was then the leading region in Europe. The major cultural achievements came at a time when there was no great central state. The small territories were in intense competition with each other. Everyone wanted to have the best libraries, theaters and universities. This region was significantly more advanced culturally and intellectually than France, which by then was already centralized. All culture in France is focused on Paris, the rest of the country fell into cultural obscurity.”

 Q: ‘But free trade would be threatened by secession and a return to fragmented nations

A:  On the contrary. Small states have to trade. Their market is not big enough and they are not diversified enough to live independently. If they are not running free trade, they are finished after a week. However, a large country like America can be largely self-sufficient and is therefore less dependent on free exchange with other states. In addition, small and sovereign states cannot permanently dump the blame on others when something goes wrong with them. In the EU, Brussels is often blamed for all sorts of ills. In independent small states governments would, however, have to take responsibility for abuses in their own country. This has a pacifying effect on the relations among nations.”

Q: “If small states have their own currencies, that would be the end of the integration of capital markets.”  

A: Small states could not afford their own currencies because of the transaction costs. They would therefore strive for a common currency that is independent of and uninfluenced by the individual governments. There is a high probability that they would agree on a commodity money such as gold or silver, whose value is determined in the market. Kleinstaaterei leads to more market and less state intervention in the monetary system.”

Q: “If Europe were a collection of small states then on the international stage it would have no economic clout next to the large states.”

A:How then do Switzerland, Liechtenstein, Monaco and Singapore manage to be economically at the top? My impression is that these countries are wealthier than Germany and that the Germans were wealthy before they embarked on the adventure of the euro. We should free ourselves from the idea that business takes place between states. Business takes place between people and companies that produce here and there. Economies don’t consist of states competing against states but companies against companies. It is not the size of a country that determines its prosperity, but the ability of its citizens.”

 

(emphasis added)

Indeed, the facts support every one of Hoppe's contentions.

 

Secession Brought to its Ultimate Conclusion

In 'Power and Market', Murray Rothbard discusses among other things whether the free market could provide judiciary, police and defense services. In this section of the book there is also an interesting remark on secession. Rothbard not unreasonably asks why it is e.g. not held that Canada and the US are in a 'state of anarchy' relative to each other. After all, they don't have a single, centralized government. Why is it fine for Canada to be independent, but not, say for Texas? However, he follows this thought further to its ultimate conclusion:

 

“[…] once one concedes that a single world government is not necessary, then where does one logically stop at the permissibility of separate states? If Canada and the United States can be separate nations without being denounced as being in a state of impermissible “anarchy,” why may not the South secede from the United States? New York State from the Union? New York City from the state? Why may not Manhattan secede? Each neighborhood? Each block? Each house? Each person? But, of course, if each person may secede from government, we have virtually arrived at the purely free society, where defense is supplied along with all other services by the free market and where the invasive State has ceased to exist.”

 

(emphasis in original)

Indeed, there is no reason why one could not arrive at a stateless society at some point. Small territories such as those Germany consisted of prior to 1794 could probably no longer really be called 'states' anyway.

 

Ger1871Germany prior to the 1871 unification – 39 independent states (and they all used precious metals as money, so it didn't matter whose face was on the money – it was a unified currency anyway).

 

 
 

Emigrate While You Can... Learn More

 
 

 
 

Dear Readers!

It is that time of the year again – our semi-annual funding drive begins today. Give us a little hand in offsetting the costs of running this blog, as advertising revenue alone is insufficient. You can help us reach our modest funding goal by donating either via paypal or bitcoin. Those of you who have made a ton of money based on some of the things we have said in these pages (we actually made a few good calls lately!), please feel free to up your donations accordingly (we are sorry if you have followed one of our bad calls. This is of course your own fault). Other than that, we can only repeat that donations to this site are apt to secure many benefits. These range from sound sleep, to children including you in their songs, to the potential of obtaining privileges in the afterlife (the latter cannot be guaranteed, but it seems highly likely). As always, we are greatly honored by your readership and hope that our special mixture of entertainment and education is adding a little value to your life!

   

Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke

   
 

7 Responses to “Are Nation States Beginning to Splinter?”

  • newjerusalemtimes:

    “…Venice may now start withholding taxes from Rome.”

    That may cause Rome to go all Mussolini, to keep the tax slaves captive, as the State organization everywhere is the proverbial hammer, in which most of its supposed problems or reluctant hosts seem to it to be nails.

  • DougM:

    That peace is arrived at by greater centralization and expansion is absurd, yet this is the EU ‘dream’. Peace via bureaucratic tyranny… reminds me of Emperor Palpatine…

    When the EU won the Nobel Peace Prize, Gerhard Schroeder remarked that it was a “rejection of nationalism”, yet indeed this is the opposite direction that should be taken for that rejection.

    “In this way the European Union can serve as a role model for other regions for a socially, economically, culturally and politically successful community,” he said. Note the abuse of “community”!

  • No6:

    Wonderful stuff.
    It could be said that secession is the positive outcome of debt accumulation.

    • BK:

      It’s very interesting, how sovereign debt will be divided between that what remains, and leaving pieces. A paradise for distressed investor! Spain, UK, and Ukraine will be so much fun to watch!

  • Viator:

    In my opinion devolution, hovering in the background for some time, is now about to have it’s time in the sun. The center cannot hold except when it’s backed by might and the will to use it effectively. Centralized authorities are failing wholesale around the world buried under debt, corruption, cronyism, centralization fallacies, nihilism, population implosions, factionalism, incompetence, and indecision. New nations are multiplying as old nations fall into pieces or become failed states of warring tribes, gangs, ethnicities, and regions. There is a growing US consensus from left to right for a retreat from the world. Regional hegemons will fill the vacuum.

    In addition to the recent unofficial vote in Veneto for separation form Italy there are upcoming votes in Spain for Catalan independence and in Scotland to secede from the UK, both in September 2014. The list of independence movements at Wikipedia is so long Wikipedia has subdivided it by continents.

  • bubbly:

    This was just an online poll. Only a real referendum could decide.
    Nothing against independent Veneto, though…

  • BK:

    I think this is an unspoken strategic goal of EU – to diminish and ultimately destroy strong nation states, and to replace them by a loose conglomerate of small semi-states with association and ultimate allegiance to Unified Europe.

    Nothing bad with the concept if done gradually and peacefully, with full approval of the population. Yet I think the fact that Russia started empire building may slow down, or even reverse this process. We can even return to the disposition of the past mid-century: Germany and Russia are dividing Europe between themselves, UK barking in the distance, and the US do not care. Will be fun to watch.

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • snake-charmerGold Price Skyrockets in India after Currency Ban – Part III
      When Money Dies In part-I of the dispatch we talked about what happened during the first two days after Indian Prime Minister, Narendra Modi banned Rs 500 and Rs 1000 banknotes, comprising of 88% of the monetary value of cash in circulation. In part-II, we talked about the scenes, chaos, desperation, and massive loss of productive capacity that this ban had led to over the next few days.   Indian prime minister Narendra Modi – another finger-wagger, as can be seen in this...
  • wads-of-cashGold Price Skyrockets in India after Currency Ban – Part II
      Chaos in the Wake of the Ban Here is a link to Part 1, about what happened in the first two days after India's government made Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes illegal. They can now only be converted to Rs 100 (~$1.50) or lower denomination notes, at bank branches or post offices. Banks were closed the first day after the decision. What follows is the crux of what has happened over the subsequent four days.     India's prime minister Nahendra Modi, author of the...
  • shopGold Price Skyrockets in India after Currency Ban – Part IV
      A Market Gripped by Fear The Indian Prime Minister announced on 8th November 2016 that Rs 500 and Rs 1,000 banknotes would no longer be legal tender. Linked are Part-I, Part-II and Part-III updates on the rapidly encroaching police state. The economic and social mess that Modi has created is unprecedented. It will go down in history as an epitome of naivety and arrogance due to Modi’s self-centered desire to increase tax-collection at any cost.   Indian jewelry...
  • very-bad-boyA Note on Gold and India – What is Driving the Gold Price?
      Hidden Motives It is well-known that India's government wants to coerce its population into “modernizing” its financial behavior and abandoning its traditions. The recent ban on large-denomination banknotes was not only meant to fight corruption.   Obviously, this very bad Indian has way too much cash. Just look at him, he looks suspicious! Photo via thenewsminute.com   In fact, as our friend Jayant Bhandari has pointed out, fresh avenues for corruption ...
  • gold-pm-fixIndia's Currency Debacle – An Interview with Jayant Bhandari
      A Major Crisis Last week Jayant Bhandari related the story of the overnight ban of certain banknotes in India under cover of “stamping out corruption” (see Gold Price Skyrockets In India after Currency Ban Part 1 and Part 2 for the details).   Banned 500 rupee banknotes   The problem is inter alia that the sudden ban of these banknotes has hit the Indian economy quite hard, given that 97% of all transactions in the country are cash-based. Not only that, it has...
  • vigilantesWill the Swamp Swallow Trump?
      Permanently Skewed TRUMP HOTEL, New York – Trump’s rambling army – professionals, amateurs, camp followers, and profiteers – is marching south, down the I-95 corridor. There, on the banks of the Potomac, it will fight its next big battle.   Lieutenants in Trump's army: Bannon, Flynn & Sessions Photo credit: Drew Angerer / AFP   Here at the Diary, we do not like to get involved in politics. But this is a special time in the history of our planet – a...
  • santorinigreeceThere Are Two Types of Credit — One of Them Leads to Booms and Busts
      Stumped by the Bust In the slump of a cycle, businesses that were thriving begin to experience difficulties or go under. They do so not because of firm-specific entrepreneurial errors but rather in tandem with whole sectors of the economy. People who were wealthy yesterday have become poor today. Factories that were busy yesterday are shut down today, and workers are out of jobs.   What has caused the bust? The modern-day economic orthodoxy continues to be unable to provide...
  • train-to-hellAll Aboard! Trump’s Express Train to the Future
      Free Money! BALTIMORE – Last week, the Dow punched up above 19,000 – a new all-time record. And on Monday, the Dow, the S&P 500, the Nasdaq, and the small-cap Russell 2000 each hit new all-time highs. The last time that happened was on the last day of December 1999.   Ironically, two events that were almost universally expected to trigger large stock market declines were followed by quite rapid and strong gains. Would the market have fallen if Hillary Clinton had won...
  • jumpAttaining Self-Destruct Velocity
      Bad Monday Some Monday mornings are better than others.  Others are worse than some.  For one Amazon employee, this past Monday morning was particularly bad. No doubt, the poor fellow would have been better off he’d called in sick to work.  Such a simple decision would have saved him from extreme agony.  But, unfortunately, he showed up at Amazon’s Seattle headquarters and put on a public and painful display of madness.   Good-bye cruel world! On this our planet,...
  • yellen_duct_tape_7-16-2014_largeGold Bull Market Remains Intact – Long Term Fundamentals Outweigh Short Term Market Gyrations
      A Strong First Half of the Year, Followed by Another Retreat In early 2016 gold had a big bull run. The precious metal rose close to 25% this year, pushed higher in a summer rally that peaked on July 10th. Gold experienced a bumpy ride over the remainder of the summer though, as investors became increasingly concerned about a potential rate hike by the Federal Reserve. Uncertainty returned to gold market and has intensified further since then.   Initially, gold rallied sharply...
  • david_stockman_0Too Early for “Inflation Bets”?
      The Trump Trade After 35 years of waiting... so many false signals... so often deceived... so often disappointed... bond bears gathered on rooftops as though awaiting the Second Coming. Many times, investors have said to themselves, “This is it! This is the end of the Great Bull Market in Bonds!”   The long bond's long cycle – red rectangles indicate when the post 1980 bull market was held to be “over” or “over for sure” or “100% over”, etc.  We have...
  • workers-powerAbout that Economic Inequality
      Illusory Riches, Obvious Impoverishment I address this essay to two groups. One group is those among the liberty movement, who believe that there’s nothing wrong with inequality. These are often Objectivists, who unknowingly defend a regime that artificially suppresses working people.   And suddenly, you feel much lighter...   The other group is those among the Left who still call themselves liberals. They say they don’t like inequality, but nevertheless...

Austrian Theory and Investment

Support Acting Man

Own physical gold and silver outside a bank

Archive

j9TJzzN

350x200

Realtime Charts

 

Gold in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Gold in EUR:

[Most Recent Quotes from www.kitco.com]

 


 

Silver in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Platinum in USD:

[Most Recent Quotes from www.kitco.com]

 


 

USD - Index:

[Most Recent USD from www.kitco.com]

 

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

 
Buy Silver Now!
 
Buy Gold Now!
 

Oilprice.com