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Friday, December 16, 2011 12:23 PM

Italy's "Vote of Confidence" Charade

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There is nothing like setting up a straw-man that a mouse and two fleas can blow over.

Nonetheless, that is what Italy's technocrat Prime minister has set out to do, as noted by the BBC article Italy's Monti faces confidence vote over austerity

My first thought, based on the headline, before reading the article, was "please, spare me the sap". My tune did not change after reading the article.

The only rational explanation to the Italian "vote of confidence" is that Italy is on such shaky grounds that it desperately needs publicity, hoping to artificially boost confidence in Italian bonds.

I suggest this is a staged event, known in advance to pass with flying colors.

In reality, if there was genuine confidence, there would be no need to hold a "vote of confidence". Thus, these confidence-seeking charades are anything but confidence-building.

History suggests one of these votes will fail sooner or later, or politicians will resign in advance of such a vote. And that is exactly what happened in Greece and Italy this past year.

Mike "Mish" Shedlock
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