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! We are happy to report that we have reached our turn-of-the-year funding goal and want to extend a special thank you to all of you who have chipped in. We are very grateful for your support! As a general remark, according to usually well informed circles, exercising the donation button in between funding drives is definitely legal and highly appreciated as well.

   

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:

  • LA5H5981sc
President George W. Bush presents the Presidential Medal of Freedom to Federal Reserve Chairman Alan Greenspan, one of 14 recipients of the 2005 Presidential Medal of Freedom, awarded Wednesday, Nov. 9, 2005 in the East Room of the Whiite House.  White House photo by Shealah CraigheadAlan “Bubbles” Greenspan Returns to Gold
      Faking It   Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. […] The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. — Alan Greenspan, 1961   He was in it for the power and the glory... Alan Greenspan gets presidential bling...
  • Slider-gold-img-1The Gold Situation
      A Growing Bullish Chorus – With Somewhat Muted Enthusiasm A few days ago a well-known mainstream investment house (which shall remain nameless) informed the world that it now expects the gold price to reach “$1,500 by early 2017”. Our first thought was: “Now they tell us!”. You won't be surprised to learn that the same house not too long ago had its eyes firmly fixed in the opposite direction.   Da bling be goin' somewhere, fellow rastas and homies! Photo via...
  • Ulpian (1)European Banks and Europe's Never-Ending Crisis
      Landfall of a “Told You So” Moment... Late last year and early this year, we wrote extensively about the problems we thought were coming down the pike for European banks. Very little attention was paid to the topic at the time, but we felt it was a typical example of a “gray swan” - a problem everybody knows about on some level, but naively thinks won't erupt if only it is studiously ignored. This actually worked for a while, but as Clouseau would say: “Not...
  • William SimonEnd of an Era: The Rise and Fall of the Petrodollar System
      The Transition   “The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better.” Ron Paul   A new oil pipeline is built in the Saudi desert... this one is apparently destined for the Ghawar oil field, one of the oldest fields in Saudi Arabia...
  • Vote Early Zombie at Sharpstown High SchoolWriting on the Wall
      Time to Sell... Maybe BALTIMORE – Yesterday, the S&P 500 hit a new all-time high. And the Dow just hit a new record close as well. If you haven’t sold yet, dear reader, this may be one of the best times ever to do so.   It's still flying... sorta. Meet Bill Bonner's tattered crash flag Image credit: fmh   We welcome new readers with a simple insight: Markets are contrary, pernicious, and downright untrustworthy. Just when the mob begins to bawl most loudly...
  • croesus_av_stater_1Gold – Eerie Pattern Repetition Revisited
      Gold Continues to Mimic the 1970s Ask and ye shall receive... we promised we would update the comparison chart we last showed in late November in an article that kind of insinuated that it might be a good time to buy gold and gold stocks (see: “Gold and Gold Stocks – It Gets Even More Interesting” for the details). We are hereby delivering on that promise.   A Lydian gold stater from the time of the famously rich King Croesus, approx. 570 BC. It seems they already had this...
  • London-City-Scene lo rezFat People for Trump!
      Alphas and Epsilons BALTIMORE – One of the delights of being an American is that it is so easy to feel superior to your fellow countrymen. All you have to do is stand up straight and smile. Or if you really need an ego boost, just go to a local supermarket. Better yet, go to a supermarket with a Trump poster in the parking lot.   The protest vote attractor with the funny hair. Image credit: Liberty Maniacs   Trigger warning: In the following ramble, we make fun of...
  • TrumpoYellPlanet Debt
      Low Interest Rate Persons   She is a low-interest-rate person. She has always been a low-interest-rate person. And I must be honest. I am a low-interest-rate person. If we raise interest rates, and if the dollar starts getting too strong, we’re going to have some very major problems. — Donald Trump   Two low interest rate persons! The Trumpsumptive president (Donald the Tremendous) can be seen here indicating the approximate size of the interest rate that will...
  • tokyo whaleDestination Mars
      Asset Price Levitation One of the more preposterous deeds of modern central banking involves creating digital monetary credits from nothing and then using the faux money to purchase stocks.  If you’re unfamiliar with this erudite form of monetary policy this may sound rather fantastical.  But, in certain economies, this is now standard operating procedure.   The “Tokyo Whale” Haruhiko Kuroda explains his asset purchase madness with a few neat little slides. Photo credit:...
  • bristlecone-1000x672Long Term Market Perspectives
      Methuselah Tree When looking for a good theme for this post I pondered for a while and then decided to use a picture of a bristlecone pine, which are widely considered to be the oldest living trees in the world.   Ye olde bristlecone Photo credit: Kosta Konstantinidis   You can find them near the Nevada/California border and if you wind up traveling in the area then I strongly recommend that head over to Bishop and from there head up high up into the White...
  • The-Deep-State-Mike-LofgrenAmerica Has Become a “Parasitocracy”
      Dread and Denial So, let’s return to the discussion you can’t have with your congressman, your mailman, or your barmaid. It’s the important one. It concerns what the Fed is really up to.   Eight years after achieving independence, a State modeled after the British merchant state was established in the US. It took a while for the Deep State to consolidate itself within it, a process that was accelerated greatly in the run-up to and aftermath of WW I. Illustration by Ana...
  • Juncker, Keqiang, Tusk 2EU Sends Obsolete Industries Mission to China
      “Tough Negotiations” The European press informs us that a delegation of EU Commission minions, including Mr. JC Juncker (who according to a euphemistically worded description by one of his critics at the Commission “seems often befuddled and tired, not really quite present”)  and European Council president Donald Tusk, has made landfall in Beijing. Their mission was to berate prime minister Li Keqiang over alleged “steel dumping” by China and get him to cease and...

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