Editor's note: What's going on in Europe right now is a mess…

Yesterday, Casey Research founder Doug Casey and Crisis Investing editor Nick Giambruno talked about why the European Union is quickly collapsing. Today and tomorrow, the guys will break down another huge problem going on in Europe today: the migrant crisis.


Nick Giambruno: The migrant crisis is tearing Europe apart. What’s your take, Doug?

Doug Casey: I'm all for immigration and completely open borders to enable opportunity seekers from anyplace to move anyplace else. With two big, critically important, caveats: 1) there can be no welfare or free government services, so everyone has to pay his own way, and no freeloaders are attracted 2) all property is privately owned, to minimize the possibility of squatter camps full of beggars.

In the absence of welfare benefits, immigrants are usually the best of people because you get mobile, aggressive, and opportunity-seeking people that want to leave a dead old culture for a vibrant new one. The millions of immigrants who came to the U.S. in the late 19th and early 20th centuries had zero in the way of state support.

But what is going on in Europe today is entirely different. The migrants coming to Europe aren’t being attracted by opportunity in the new land so much as the welfare benefits and the soft life. For the most part they are unskilled and poorly educated.

What we’re talking about here is the migration of millions of people of different language, different race, different religion, different culture, different mode of living. If you're an alien and you're 1 out of 10,000, or 1000, or 100, you're a curiosity, an interesting outsider. But an influx of millions of migrants is only going to destroy the old culture, and guarantee antagonism—especially when the locals have to pay for it. In many ways, what’s happening now isn’t just comparable to what happened 2,000 years ago with the migration of the Germanic northern barbarians into the Roman Empire. It’s potentially much more serious.

Nick Giambruno: I think pretty much anywhere in the world, whenever there’s an influx of foreigners to the degree that it changes the demographics or upsets the local economic applecart, it’s obviously going to cause problems.

For example, the Chinese are wearing out their welcome in many parts of Africa.

We saw this ourselves when we went to Zimbabwe earlier this year. Their numbers have grown so much that there are numerous Chinese mini cities within Zim.

Many people in Zim aren’t too happy with the Chinese dumping cheap products and upsetting the local economy. When we asked our driver to take us through a rough neighborhood, all we saw was a seemingly endless market, as far as I can tell, completely filled with Chinese products.

Doug Casey: Incidentally, it’s supposed to be official Chinese policy to migrate about 300 million Chinese to Africa in the years to come. They’re employed in building roads, mines, railroads, and other infrastructure. The Africans like the goodies, but don’t like the Chinese. It has the makings of a race war a generation or so in the future.

Nick Giambruno: Getting back to the crisis in Europe…

It’s well known that the gigantic bureaucracy in Brussels produces ridiculous regulations and dictates. The EU has reduced the standard of living of the average European.

Of course this is related to the migrant issue too. The EU has a quota system which is supposed to distribute migrants across the union. Not all EU countries are happy with this.

For example, Hungary doesn’t believe it should have to accept any migrants if it doesn’t want to. Brussels disagrees and says Hungary is obligated to take in its “fair share” of migrants.

Hungarian Prime Minister Viktor Orban recently said:

“Hungary does not need a single migrant for the economy to work, or the population to sustain itself, or for the country to have a future…

…This is why there is no need for a common European migration policy – whoever needs migrants can take them, but don't force them on us, we don't need them…

…For us migration is not a solution but a problem… not medicine but a poison, we don't need it and won't swallow it.”

The Eurocrats are furious with Orban. Luxembourg has called for Hungary to be expelled from the EU.

It’s clear the migrant issue is fueling resentment to the EU. It was a major factor in the Brexit vote. The unprecedented inflow of migrants has also helped anti-EU political parties grow in popularity.

This whole mess looks to me to be a self-inflicted wound. What do you think?

Doug Casey: The EU is a huge aggravating factor with the migrant problem. Brussels is full of globalists and doctrinaire socialists who not only promote bad policies, but make the whole continent pay for the mistakes of its most misguided members.

All Western European governments are massive welfare states that provide free food, housing, medical care, schooling, and living expenses for citizens. And even for residents who aren’t citizens. Benefits like these will naturally draw in poor people from poor countries.

Millions of Africans will want to emigrate, especially to the homelands of their ex-colonial masters in Europe. The colonizers are now themselves being colonized. If I was an African from south of the Sahara, I'd absolutely try to get to Italy or Greece or France or Spain or on my way to Sweden to cash in on the largesse of these stupid Europeans.

I’m a fan of what’s left of Western Civilization. I hate to see it washed away. But that’s what will happen if the floodgate is opened.

Nick Giambruno: I really don’t feel that sorry for the Europeans either. They largely brought this mess upon themselves.

It’s no coincidence that migrants are flowing to the countries with the most generous welfare benefits. If there weren’t so many freebies in these countries, there wouldn’t be so many migrants showing up to collect them.

It’s obvious the welfare state plays a major role in this crisis.

It’s also obvious that idiotic military interventions are a major factor.

The Europeans were and are enthusiastic supporters of the U.S. military interventions in Syria, Iraq, Afghanistan—and perhaps most consequentially for them—Libya.

Before his overthrow by NATO, Libyan leader Muammar Gaddafi had an agreement with Italy, which is directly to Libya’s north, across the Mediterranean Sea.

Gaddafi agreed to prevent migrants heading for Europe from using Libya’s 1,100 miles of coastline as a transit point. It was an arrangement that worked.

So it’s no shocker that when NATO helped overthrow the Gaddafi government in 2011, the migrant floodgates opened.

Doug Casey: Unless the Europeans get in front of this situation, it’s not just some refugees from the Near East they’ll have to deal with. Especially with the economic chaos of The Greater Depression, it’s going to be millions from Africa, and then perhaps millions more from Central Asia, and even India and Bangladesh. The world is becoming a very small place. What will happen when scores of thousands of migrants set up a squatter camp someplace—with no food, shelter, or sanitary facilities. The situation is likely to be most stressful…

Some will say, “But you have to be charitable, you can’t just let them starve because they’ve had some bad luck.” To that I’d say an individual, or a family, can have some bad luck. But the places these people come from have had “bad luck” for centuries. Their bad luck is the consequence of their political, economic, and social systems. It makes no sense, it’s idiotic, to import—at huge expense—masses of people that have a culture of “bad luck.”

At the most, if someone wants to help them, they should help them with their own money.


Editor's note: On December 4, a monumental event is poised to take place that could lead to the total destruction of the European Union. This crisis threatens to be more than five times bigger than Brexit, and—if you play it right—it promises to be the biggest profit opportunity of your lifetime…

But you need to strategically position yourself in one specific way. Click on this video to learn how.