Can we ignore the run up to Italy's referendum?

When pundits and pollsters tracked the probabilities of a "Brexit" type outcome at the beginning of the year many had thought the possibilities weren't completely out of reach but the likely occurrence would see the British public support the idea of remaining within the Eurozone agreement after experiencing the beneficial configuration(and least to say the detrimental effects) of open borders amongst Europeans.

But as chance would have it the most improbable scenario markets could've foreseen descended into reality, heaving a worrisome blow to the market's perception over the acceptance of defective policies meted by politicians throughout Europe by its own citizens whom were underestimated in the strength of their convictions to effect change.  

Fast forward to the beginning of November and the same knee jerk reaction was felt when the announcement of Donald Trump as the US presidential elect caused market participant to re-consider the variability of polls and their purpose in measuring certainty.

Investor Who Backed Brexit Sees Euro Breaking Up Within 5 Years https://t.co/1hXzZ03KET via @stespezzati pic.twitter.com/1bF7OztQyD

— David Goodman (@_DavidGoodman) November 28, 2016

Being on the cusp of yet another referendum to be held in Italy over constitutional reform set to take place on the 4th December 2016, the market has surprisingly not learnt from its previous mistakes of the past and seemingly looks self-assured that Sunday's election won't significantly alter the viewpoint.

Unfortunately this unrealised risk poses the potential to reinforce the idea that cross border syndication of promoting the shift in policy away from socialism ideals into a nationalist-driven protection of sovereignty may be gaining momentum when considering the results of two major and decisive electoral outcomes.

Perhaps the disproportionate balance of views between investors and citizens can be understood by observing the dynamics in dealing with catastrophic economic circumstances where politicians have settled for maintaining the status quo and injected confidence in financial markets in allowing participants appetite for free money be feed with extended and expansive monetary programs whilst ignoring the issues on the ground.

Here are four things to watch for as Italy prepares to vote in a referendum called by prime minister Matteo Renzi https://t.co/qsJeeqvItk pic.twitter.com/Y7F5SR8r74

— Financial Times (@FT) November 25, 2016

However the miscalculated sentiment borne from these events compared to that of the situation unfolding in Italy doesn't match. Since scrapping the Lira in favour of the Euro back in 1999, Italian's have seen their economy plagued by chronic low growth, mass unemployment and uncompetitive manufacturing prices relative to its other European counterparts, namely Germany. With the advent of these events and the can kicking occupation of Brussels has led Rome into the most indebted economic states on record with little much resolution from the European Union in fixing it.

When weighing up the mood of Italians against that of the British or American public before their respective voting days, it's clear that there's abundant signs of dissatisfaction on the part of the former as opposed to the latter which simply cannot be ignored.