World Politics News   Articles for World Politics Course

Post-Brexit Europe is trying hard to hold itself together.  But the “Leave” vote shattered many illusions about the strength of the European Union and gave impetus to all the eurosceptics.   Much attention has been focused on the Naitonal Front in France which seems poised to take power given the unfavorable ratings currently being given to the government of Hollande.  But the weakest link in the chain of the EU is more likely to be Italy which has a growing anti-EU movement in a party started by the comedian Beppe Grillo, the Five Star Movement.   Italian banks are saddled with about $400 million of delinquent loans (17% of their portfolio) which means that some of them are bankrupt.  The Italian government would like to bail them out with government money, but the EU has a rule that no government money can be used to bail out banks until creditors (the people that actually own the bonds) take losses first.  This rule is a good one, but in the case of Italy it is political dynamite.  Unlike other countries where bank creditors are usually institutions like insurance companies and pension funds, in Italy about 75% of bank creditors are Italian households.  If Italy is forced to make these households take the losses, then the current government of Matteo Renzi and his plans for constitutional reform are dead meat and the Five Star Movement is likely to succeed it.

The Oldest (and currently most fragile) Bank in the World:  Banca Monte Dei Paschi di Siena, established in 1472

Nuclear weapons introduced a great deal of weirdness to world politics, but the strangest matters have to do with “doomsday” scenarios.  A number of movies (“Fail Safe” or “Dr. Strangelove”) have been made about what happens in the US when the buttons are pushed.  Great Britain has its own strange procedures.  For a number of years, Great Britain has relied exclusively on missiles launched from  its nuclear submarines, named Tridents, one of which is always on patrol in a secret location.  The Prime Minister and an unidentified person designated by the Prime Minister are the only people in Great Britain with authority to launch those missiles.  In case both are unable to do so, the designated submarine has a handwritten note by the Prime Minister with instructions as to what to do.  Very few people know what is contained in that note.  Let us hope that we never find out what it says.

HMS Victorious

Venezuela’s government has seized its major ports in an effort to combat shortages of food and other basic necessities.  The Venezuelan military will now control the distribution of goods as the economy continues to deteriorate.  Major companies are pulling out of Venezuela as it becomes clear that bills will not be paid.  The economy is in crisis and it is not clear when the people will rise up to demand effective change.