Trump the European Nationalist Puts America Last

President Trump, in concert with several European leaders, including those of Hungary, Poland, Austria and Italy, is intent on dehumanizing immigrants and refugees. The aim is to equate them with terrorists and criminals ready to “infest” — Trump’s word — American and European civilization, defined as a threatened white Judeo-Christian preserve.

It’s a consistent policy buttressed by insinuation and lies about the supposed threat, and designed to manipulate fear and nationalism as election-winning emotions in a time of rapid technological change, large migrant flows and uncertainty. Vermin infest, not humans.

Every utterance of Trump on immigration is meant to conflate immigration with danger. This is a direct repudiation of America’s distinguishing essence — its constant reinvention through immigrant churn.

The immigrant brings violence. The immigrant brings terror. The immigrant’s humanity is lesser or nonexistent. These are tropes about “the other” whose capacity to galvanize mobs, and wreak havoc, was proved in the first half of the 20th century. Trump does not hesitate to use them.

.. Viktor Orban, the right-wing Hungarian leader, who has said that “every single migrant poses a public security and terror risk.”

.. The Hungarian parliament has just passed legislation that would throw people in jail for providing assistance to asylum seekers and migrants.

.. Matteo Salvini, the rightist Italian interior minister

.. Before taking office, he said Italy was packed with “drug dealers, rapists, burglars,” whom he wants to send home.

.. the destabilizing impact of globalization on Western democracies; stagnant middle-income wages; growing inequality; fear of an automated future

..  the ease of mob mobilization through fear-mongering and scapegoating on social media.

.. Trump is strong because of a global nationalist lurch; that his feral instincts make him dangerous; and that he may well win a second term, just as Orban has now won four terms.

To ridicule Trump will achieve little absent a compelling social and economic alternative that addresses anxiety. The Democratic Party, for now, is nowhere near that.

.. Trump likes to go for the jugular. He sees opportunity in a Europe that is split down the middle between nations like Hungary and Poland that make no attempt to sugarcoat their anti-immigrant nativism and states like Germany that have not forgotten that the pursuit of racially and religiously homogeneous societies lay at the core of the most heinous crimes of the last century.

.. Orban is the most formidable politician in Europe today. It’s no coincidence that Trump called him last weekend. Their aims overlap.

..  Trump tweeted this week that “Crime in Germany is way up” and that allowing immigrants in “all over Europe” has “strongly and violently changed their culture.”

..  Trump (whose stats on German crime were wrong) backs Orban against Chancellor Angela Merkel of Germany in the continuing bid to make racism and xenophobia the new normal of Western societies.

.. the greatest danger is within. A two-term Trump presidency would likely corrode American institutions and values to the point at which they could scarcely be resurrected.

Can the Euro Be Saved?

Across the eurozone, political leaders are entering a state of paralysis: citizens want to remain in the EU, but they also want an end to austerity and the return of prosperity. So long as Germany tells them they can’t have both, there can be only one outcome: more pain, more suffering, more unemployment, and even slower growth.

.. The backlash in Italy is another predictable (and predicted) episode in the long saga of a poorly designed currency arrangement, in which the dominant power, Germany, impedes the necessary reforms and insists on policies that exacerbate the inherent problems, using rhetoric seemingly intended to inflame passions.
.. Italy has been performing poorly since the euro’s launch. Its real (inflation-adjusted) GDP in 2016 was the same as it was in 2001.
.. From 2008 to 2016, its real GDP increased by just 3% in total.
.. the euro was a system almost designed to fail. It took away governments’ main adjustment mechanisms (interest and exchange rates); and, rather than creating new institutions to help countries cope with the diverse situations in which they find themselves, it imposed new strictures – often based on discredited economic and political theories
.. The euro was supposed to bring shared prosperity, which would enhance solidarity and advance the goal of European integration. In fact, it has done just the opposite, slowing growth and sowing discord.
.. Emmanuel Macron, in two speeches, at the Sorbonne last September, and when he received the Charlemagne Prize for European Unity in May, has articulated a clear vision for Europe’s future. But German Chancellor Angela Merkel has effectively thrown cold water on his proposals, suggesting, for example, risibly small amounts of money for investment in areas that urgently need it.
.. In my book, I emphasized the urgent need for a common deposit insurance scheme, to prevent runs against banking systems in weak countries.
.. The central problem in a currency area is how to correct exchange-rate misalignments like the one now affecting Italy. Germany’s answer is to put the burden on the weak countries already suffering from high unemployment and low growth rates.
..  The alternative is to shift more of the burden of adjustment on the strong countries, with higher wages and stronger demand supported by government investment programs.
.. Matteo Salvini, the party’s leader and an experienced politician, might actually carry out the kinds of threats that neophytes elsewhere were afraid to implement. Italy is large enough, with enough good and creative economists, to manage a de facto departure – establishing in effect a flexible dual currency that could help restore prosperity.
.. Whatever the outcome, the eurozone will be left in tatters.
.. It doesn’t have to come to this. Germany and other countries in northern Europe can save the euro by showing more humanity and more flexibility. But, having watched the first acts of this play so many times, I am not counting on them to change the plot.

Merkel’s Comeuppance is Europe’s – and the World’s – Misfortune

No one who was paying attention to Greece’s predicament three years ago should be surprised by the position that German Chancellor Angela Merkel and Europe find themselves in today. But only a dangerous fool would celebrate.

.. today’s defenders of the European status quomust fight on two fronts: against Trump’s encroachments and, within Europe, against the likes of Matteo Salvini and Luigi di Maio, the rising stars of Italian politics who, despite their parliamentary majority, were denied the right to form a government by the country’s besieged pro-establishment president.

.. Just as it is Trump’s aim to overturn the global system from which Germany has benefited for decades, Salvini and di Maio see the disintegration of the euro as a welcome development and a boon to their anti-immigration campaign.
.. If you insist on policies that condemn whole populations to a combination of permanent stagnation and humiliation, you will soon have to deal not with Europeanist leftists like us but, instead, with anti-Europeanist xenophobes who see it as their vocation to disintegrate the European Union.”
.. Germany’s establishment media are now referring to the Italian economist whose appointment as finance minister was vetoed by the president as “Italy’s Varoufakis.” That moniker obscures a fundamental difference: I wanted to keep Greece in the eurozone sustainably and was clashing with Germany’s leaders in favor of the debt restructuring that would make this possible. By crushing our Europeanist government in the summer of 2015, Germany sowed the seeds of today’s bitter harvest: a majority in Italy’s parliament that dreams of exiting the euro.
.. Trump understands one thing well: Germany and the eurozone are at his mercy, owing to their increasing dependence on large net exports to the US and the rest of the world. And this dependence has grown inexorably as a result of the austerity policies that were first tried out in Greece and then implemented in Italy and elsewhere.

.. a condition of agreeing to bailout loans for distressed governments and banks. Then note that this pan-European austerity drive took place against the backdrop of massive excess savings over investment.
.. large excess savings and balanced government budgets necessarily mean large trade surpluses – and thus the increasing reliance of Germany, and Europe, on massive net exports to the United States and Asia.
.. In other words, the same incompetent policies that gave rise to the xenophobic, anti-Europeanist Italian government also bolstered Trump’s power over Merkel.
.. the US will aim to force China to deregulate its financial and tech sectors. If it succeeds, at least 15% of China’s national income will gush out of the country, adding to the deflationary forces that are breeding political monsters in Europe and in the US.