Herman Van Rompuy Calls For Emergency European Leaders Summit To Secure Leadership On The Second Round Of Seigniorage Aid For Greece

Commentary on European Financials for the week ending July 15, 2011

1) … Global Business reports Herman Van Rompuy tweeted today and called for a Summit of European Leaders Summit on Thursday July 21, 2011 to secure additional seigniorage aid for Greece. It was Mr. Van Rompuy who orchestrated the first aid package for Greece in May of 2010. At a news conference, at that time he emphatically said there would be now Greek Default. But now has Greece not effectively defaulted with a CCC rating on its Treasury Debt? Mr Van Rompuy serves an important purpose, that being the call for unity, not separation in Europe. His Clarion Call for European Federalism, leads the way and paves the way for the rise of the European Chancellor, who will arise out of the coming chaos of sovereign debt crisis, to rule with authority and power providing order and seigniorage.     

EurActiv reports France’s regions oppose President Nicolas Sarkozy’s proposal to reduce regional spending in favour of the Common Agricultural Policy

Open Europe relates LeFigaro reports An opinion poll by CSA shows that French President Nicolas Sarkozy is gaining ground in the Presidential election race. The poll indicates that in a first round Sarkozy would win with 27%, followed closely by the socialist Francois Hollande (26%) and Martine Aubry (25%). The leader of the far-right Front National, Marine Le Pen, would only win 17% and would face elimination.

Open Europe relates Mohamed El-Erian, Chief Executive and Co-Chief Investment Officer of Pimco, writes in the Financial Times that, given the political impossibility of a ‘fiscal union’, “Europe should opt for a restructuring of the debt of the weak peripherals, recapitalising the ECB, protecting the payments and settlement system, countering other collateral damage, and restoring conditions for growth. At some stage, this could even involve a country taking a sabbatical from the eurozone – but not the EU – in order to regain the policy flexibility needed to restore competitiveness.

Commentary: The sovereign debt crisis in both Europe and the US is accelerating. A European Transfer Union is inevitable; it is the natural progression of the Federalist movement that began in the 1950s, as well as the call of the Club of Rome in 1974. A United States of Europe with power centered at the core, that is Germany, has been steadily developing. Ambrose Evans Pritchard commented, on May 2, 2010, in the Telegraph.co.uk, in words reminiscent of Margaret Thatcher: “If the aim of Helmut Kohl and Francois Mitterrand at Maastricht was to tie down a ‘European Germany’ with the silken chords of emu, they failed. Monetary union has delivered a ‘German Europe’ after all. And he continues, We now know the answer to Henry Kissinger’s question: “Who do I call if I want to call Europe?” Only one person matters. The Chancellor of Germany. And now on Friday July, 15, 2011, gave the Call Call for European Unity, and not division, or state separatism, by calling all the European Leaders to a Summit on July 21, 2011.    

Out of Gotterdammerung, that is the clash between the rating agencies and world leaders, seigniorage, that is moneyness, coming from carry trade lending, securitization of sovereign, state, municipal  debt, as well as mortgage backed bonds, junk debt, distressed investments, the world’s financial system comprised of banks, capital market providers, and insurance companies, will suffer a massive coronary, or perhaps better said, a massive head wound, that is a stroke resulting in a global financial system collapse.

A New Charlemagne will arise out of today’s sovereign debt crises, and establish a revived Roman Empire in Europe. And a European Continental Banker will emerge to provide seigniorage, that is moneyness, which will be more political than economic. The word, will and way of the Sovereign and the Seignior, will be confirmed by a Regional Framework Agreements, which will waive national sovereignty, and serve as the basis of regional economic governance. It was Herman Van Rompuy who quickened the tone for Federalism recently sating “that countries can stand alone, is a lie and an illusion.”

The seigniorage of Neoauthoritarianism will replace that of Neoliberalism, and will be based upon respect for and fear of the both the Sovereign and the Seignior.

Finally, an inquisitive mind asks will President Obama declare Martial Law, suspend Congress, and rule by decree during a financial emergency? If the President withholds US Treasury checks for Social Security, Disabled and Veteran beneficiaries, as he has threatened, will those who have taken out payday loans at pay day lenders such as World Acceptance, have grounds for not repaying their loans? Will the rating agencies declare a default before August 2, 2011?

2) … Lagging sectors courtesy of Between The Hedges
Homebuilding, ITB, -5.2%
Semis, XSD, -5.3%
Networking, IGN, -6.5%
Airlines, FAA, -6.5%

3) … In today’s sovereignty and seigniorage news
Associated Press reports UK govt defends Murdoch ties as scandal spirals

Associated Press reports Bank of America shares slip below $10

The Independent writes The AAA rating is also why money-market funds – used by ordinary Americans and big businesses almost as if they are current accounts – hold $760bn of US Treasuries and related debt. Any sharp fall in Treasuries prices could lead some funds to “break the buck” and trigger a repeat of the run on money-market funds that we saw after Lehman Brothers in 2008.

The Telegraph reports US Risks AAA Rating Even With Debt Deal. America risks eviction from the club of the most creditworthy nations even if Congress agrees to raise the debt ceiling, rating agency Standard & Poor’s (S&P) has warned.

John Stark of the Bellingham Herald writes that Bellingham takes back seat to The Washington State Department of Ecology to share joint rule with Whatcom county over the Gateway Pacific Coal Terminal


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