Beware of the liberalists who pretend to be liberators on Mattei’s day

28 October 20222 years ago babelfish

For at least a couple of years I have been following the channel of Francesco Carrino, a professional in the field of tax consultancy. I'm not sure if he's an accountant, an accountant or what else.
What is certain is that since he decided to invest body and soul in his YouTube channel he has had a significant increase in subscribers.
Carrino has a beautiful face, he is likeable and with his Sicilian accent he knows how to entertain the public. Nice jokes, nice allusions. Francesco Carrino has a sense of rhythm and the construction of his videos; skills that I do not have and therefore make me desist from making videos on YouTube.
Carrino knows how to do it, there is little to say, but what is wrong is that the enthusiasm, which has now become a necessity, to produce video on video on a daily basis, because it pushes him to get it out of the jar.

The danger of the ideas of highly followed people

The danger is that his ideas, sometimes badly argued and sometimes completely wrong, create a danger for those who trust him and his well-deserved notoriety; but it is a danger all on the shoulders of his audience.
An example above all: Francesco Carrino through his channel and his social network, does many activities, including that of pushing the public – in a clear and honest way; that is to say without deluding anyone – to make investments to protect their savings. And there is nothing wrong with that. Indeed, maybe there were more like him.
For at least a couple of years Carrino has focused an important amount of videos containing his financial advice, on investments in bitcoin. Needless to explain to you what happened to the small investors in the so-called digital gold … And it goes without saying that he too has noticed it, so much so that he hasn't talked about it for a while. Lately he talks to us about money and his obsession has become gold.
In yesterday's video, on the eve of the anniversary of Enrico Mattei's death, he returned to the problem of inflation, which in my opinion he is not very clear about what it is. I thought for a long time whether to link the video or not. If you want you can find him on his channel; but since it is very bad information, I decided not to, because I would contribute to misinformation.

The summary of the video in a few points

The highlights are as follows:

follow this video because it is very important for your future and if you do not understand this message you will no longer have the possibility of going back to it (and already here people are afraid they trust even more the poet);
Russia, China and the BRICS want to replace the dollar as an international currency, with a currency based on the value of raw materials including gold, because fiat money, created out of nothing, has become waste paper;
Fiat money became waste paper because central banks printed so much money that they devalued it. Look what is happening in England;
By printing so much money, central banks have created inflation;
Monetary sovereignty counts for nothing and the lender of last resort still creates public debt;
The ECB by buying government bonds takes us into debt with you;
Over the course of history, fiat currencies have devalued and collapsed many times already;
He mocked several of the sovereignists.
If your currency is devalued, foreigners buy our stuff for less money, because with their pennies they buy the devalued errino they need to buy Italy with a loaf of bread;

All the errors of this view of things

The thesis is made up of a series of key points, one more wrong than the other; but let's see why.

First of all, thanks to Francesco Carrino, we now discover that we need the strong euro to protect us (in fact, Italy has sold out everything with its entry into the euro). But how is it that for years you have been telling us that the Euro is a scam and now that the Euro has dropped and we should live off exports, it is no longer good?
In short, make up your mind once and for all.

Few but confused ideas, starting with the overlap between devaluation and inflation as if they were arithmetically linked (a liberal theory of Friedman and the Chicago school widely disproved by history).

The problem of money, as we say in the easy explained economics book, is what you do with money and who controls it; not the currency itself; especially if you have a high production capacity.
This is taught by Enrico Mattei who transformed a state-owned company that had to be dismantled, driving the reconstruction of the Italian economy which passed from the rubble of the Second World War to the fourth world economic power.

Hyperinflation can be caused by excess money or a defect in production (there are also other causes but these are the two main ones). Today it is caused by the collapse of production due to expensive energy, China's control over raw materials (on which the Chinese can make the price they want) and the goods that are parked in the containers parked in the ports; that is, goods that stand still or turn slowly to increase transport costs.
We have talked about it in many articles; here are the most salient:

The problem is that central banks funded the markets rather than the real economy (causing the dismantling of European industry, with England leading the way, as it bases a large chunk of its economy on finance) and this has created trade imbalances referred to above; which have globalization as a contributing factor.

It is not that if you have a currency linked to gold you do not have inflation and poverty, otherwise the Second World War cannot be explained.

If anything, by hooking it to raw materials, you will obtain a theoretically more stable coin; but limiting the quantity of money below the need for full employment will still create poverty; because you create unemployment.
When you print more banknotes because they are not enough to buy bread and pasta, those banknotes (and all those previously issued) SEE THAT THEY ARE MORE, are they worth as soon as possible or are they devalued? And since there are more in circulation, but the gold at the base remains unchanged, does this mean that in exchange for those notes you will receive less gold or am I wrong?
If not how do you do it? Are you waging a good war in Congo when it comes to extracting the gold you need to dominate the market?

BUY IT NOW

In Carrì, inflation was there even when coins were pegged to gold and coins and states failed even earlier.

By the way, the ECB does not ask the states to repay public debts, also because the ECB buys on the secondary market, not the new issues; therefore it does not buy securities directly from the states. BECAUSE IT IS PROHIBITED BY ITS STATUTE AND BY THE EUROPEAN TREATIES, otherwise there would be no sovereigns.

If you don't know it is very serious, because you are telling min *** ate to 181,000 subscribers to your channel.

And if foreigners buy devalued Euros to buy our products, two things happen:

who buy more (studied the Italian miracle and the Italian economy from the 50s to the 80s) then strengthen your economy – unless you sell them all off with the privatizations you love so much. Why, you must know that if Italian companies ended up in foreign hands it was because it was no longer convenient for industrialists to produce in Italy with a strong currency like the Euro, not because someone forced them to sell;
by increasing the demand for the Euro, the single currency is strengthened.

Conclusions

In short, Carrino, as a good liberal as he is (other than the libertarian he claims to be), preaches scarcity. Because we know that if something is scarce, it is worth more. Yes, but as such the poor cannot have it (note how Italians' wages are stuck in 1990).

And finally, dear Francesco, was your channel not pumping bitcoin as if it were digital gold? Carrino, why did you recommend it? That on what it bases its value; on gold, on rare earths? Explain it a little to all those chickens you put in the pot

Carrino, you are good and you can do it; but you don't really understand a *** about money.

And to you who have read this article instead I say: beware of those who must necessarily make a video a day to keep traffic, revenue and above all their beautiful big face in sight on the web.
War aside, which obviously creates economic and financial trouble for you, the main causes of today's inflation are two:

we are misusing the currency; that is, central banks are misusing money;
inability to manage politics at the international level (perhaps not accidental).

Here it is not a question of magnifying fiat money (the currency linked to commodities is welcome), but simply of acknowledging that inflation, devaluations and the implosion of economies were there even when the currency was tied to gold. and there would still be an energy crisis or a war in the middle of Europe.

In 'Carrì, today is the anniversary of the death of Enrico Mattei. Try not to kill him a second time. Thank you. And since you need it so much, buy yourself the easy explained economics book, it's cheap, so do everyone a favor.

A hug, with sincere sympathy,
Costantino Rover

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The article Beware of the liberalists who pretend to be liberators on Mattei's day comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/attenti-ai-liberisti-che-si-spacciano-per-liberatori-nel-giorno-di-mattei/ on Thu, 27 Oct 2022 09:12:40 +0000.