European Neoauthoritarianism Issues Its First Diktat

Financial Market Report For August 12, 2011

Neoauthoritarianism has replaced Neoliberalism, as the diktat of leaders has replaced the democracy of investors, providing both political governance and seigniorage, that is moneyness.  
There is no longer any sovereign individuals there are only sovereign leaders.

Open Europe reports four eurozone governments ban short selling. France, Italy, Spain and Belgium last night introduced a ban on the short selling of financial stocks for 15 days in response to sharp share price falls this week, but failed to convince other governments to go along with an EU-wide ban. EU market watchdog, ESMA, described the ban as “harmonised regulatory action.” Spain seems to have banned short-selling in all products related to financials, France has limited the ban to equities. The ban has been met with criticism. Bloomberg quotes Jim Chanos, the short seller known for predicting Enron Corp.’s collapse, warning, “The interbank lending market froze up completely in October to December 2008 – after the short-selling bans.” Handelsblatt quotes Frank Schäffler, finance spokesman for German junior coalition partners, the FDP, saying, “One shouldn’t ban the fire alarm when it’s burning.”
BBC EUobserver BBC: Today El País FT FT: Lex FT 2 WSJ Guardian Times Telegraph Irish Times 2 Irish Independent IHT City AM Taloussanomat Businessweek Handelsblatt Handelsblatt 2

And Open Europe relates El País reports that a majority of pharmacies in Spain’s high-debt Castilla-La Mancha region remained closed yesterday to protest against the regional government’s delay in paying around €125m for medicines sold on prescription since mid-May.

Nick Beams in WSWS article A turning point in the crisis of world capitalism, rites of the history of Milton Friedman Free To Choose Floating Currency Regime that underwrote both the political and economic governance of the last forty years:

“The removal of the gold backing did not end the dollar’s role as the global reserve currency. But it did mean that the international monetary system had lost its anchor and would become increasingly volatile. That instability was reflected in a series of financial storms: the plunge of the US dollar in 1979, leading to the imposition of record interest rate hikes by Federal Reserve chairman Paul Volcker; the Latin American debt crisis of the early 1980s; and the global stock market crash of October 1987 sparked, at least in part, by differences between US and German authorities over interest rate policies. In response to the 1987 crash, the newly-appointed head of the US Federal Reserve Board, Alan Greenspan, instituted the policy that would be deployed henceforth—any financial crisis would be met by opening the credit spigots of the central bank to supply cheap money to the major banks and financial institutions.

While this policy helped fuel the growth of the US economy over the next 20 years, it did so by promoting ever-more parasitic forms of wealth accumulation. US capitalism had risen to global pre-eminence on the basis of industrial production and the great advances it facilitated in the productivity of labour. Now industry was being destroyed and outsourced as financialisation replaced production as the chief source of profits—a process that assumed grotesque forms in the housing and sub-prime bubble.

Even as the US economy underwent expansion in the 1990s and 2000s, this very growth masked a deepening contradiction: the global reserve currency, the dollar, was the currency of the world’s most indebted nation. This had never happened before in the history of global capitalism.
In the decades before the outbreak of World War I in 1914, the global economy rested on the British pound. Sterling was effectively as good as gold because Britain was the chief supplier of capital to the rest of the world. While it had been eclipsed as the “workshop of the world”, it was still the world’s chief financier, both because of the global role of its banks and finance houses, as well as the vast financial resources it was able to draw from its colonies, above all India.
World War I struck a major blow to Britain’s financial position from which it never recovered. In the absence of a currency that could function as world money, the international finance system disintegrated in the inter-war period and the world economy fractured into rival trade and currency blocs. Only with the rise to global dominance of the US after World War II was a new international financial system established. This system is now in an advanced state of disintegration as a result of the decay and rot in its central pillar, the US economy.

The significance of the credit downgrade has been dismissed by some commentators because, in the words of Greenspan, there is “zero probability” of default because the US can “always print money” to pay its debts. Such an ignorant outlook passes over the fact that even before the question of a US default arises (and given the default of August 15, 1971 such an event may take place sooner than many may think) the decision further undermines the global financial system.

World capitalism is now operating without a stable monetary system.

Chinese authorities have again called for the establishment of a new global reserve currency, not tied directly to the US or any single national currency. But as the fate of the euro, now being torn apart by national rivalries and conflicts among the eurozone powers, demonstrates, there is no prospect for such a development. No currency, grouping of currencies or synthetic currency can replace the dollar as world money.

There is no set of economic policies or regulatory mechanisms that can resolve the present crisis. Historical experience points to the return—in an even more explosive form—of the conditions of the 1930s. At that time, the world fractured into rival economic blocs, leading to world war—the most destructive in history.”

Mr. Beams provides a most excellent history of Neoliberalism. However, I disagree with his remedy. “Today, as that prospect looms once again, the working class must intervene. The chaos of the capitalist system and the dangers it poses to the future of mankind—mass poverty, depression and war—must be ended through the taking of political power by the working class and the overturn of the profit system through the establishment of international socialism. The fulfillment of this perspective requires the building of the International Committee of the Fourth International as the world party of socialist revolution.”

A new regime, known as neoauthoritarianism, with ten regions of global governance was called for by the Club of Rome in 1974, This regime, will see sovereign leaders meeting in summits and work groups, to announce regional framework agreements, which waive national sovereignty and provide accords for regional economic governance and competitiveness, that is austerity.  

Recently In Europe, as nations lost debt sovereignty through the actions of bond vigilantes, Leaders announced at the insistence of Nicholas Sarkozy, greater powers for EFSF, empowering it as a European Monetary Fund, a European Treasury, which creating a debt union.    

Bible prophecy of Revelation 13:3 reveals that soon of Götterdämmerung, that is a clash of the gods, specifically the bond vigilantes and the government leaders, a global economic collapse is going to occur, as the head of mankind’s most important institution, that being economic, investment, trade and banking will suffer a mortal wound, that is a stroke.
  
Out of chaos, a powerful leader will emerge in the Eurozone, This New Charlemagne, will establish a type of revived Roman Empire, that is a Federal and Fiscal Union, where fiscal authority will reside at the core, with leadership coming from Brussels, Berlin and Paris, and not at the periphery, that is the PIIGS.  

The Sovereign, will be accompanied by a banker, The Seignior, whose authority will come from regional framework agreements that waive national sovereignty. The word, will and way of these two will be the law of the land providing both political leadership as well as economic seigniorage, that is moneyness. Leading candidates for the soon to emerge Sovereign, the President of the EU, that is, the President of the Eurozone, are Herman Van Rompuy,Jean Claude Trichet, and Olli Rehn.

Former citizens of sovereign nation states are now residents living in a region of global governance, as called for repeatedly call for by Mr.Jean Claude Trichet, president of the ECB, while speaking before the Council on Foreign Relations.  All living in Europe will be one, living as debt serfs, in debt servitude, under a Federal One Euro Government,  

Revelation 13:4 reveals that when the people see the governance and recovery provided by sovereignty and seigniorage, of the Beast Regime, they will marvel, and follow after it, giving their allegiance to it. There will be no sovereign individuals as perceived by the anarcho capitalists, such as those at the Mises Institute; but rather only sovereign leaders. There is neither liberty nor choice, there is only fate. Liberty and choice is a mirage in the Neoauthoritarian Desert of The Real.

Revelation 13:1-4 reveals that the destiny of mankind is for the Beast Regime of Neoauthoritarianism to enforce debt servitude globally, and to rule in all of mankind’s seven institutions, and govern in ten regions of global government through state corporatism. An example of this statism is the Ryan Rahilly, WSWS.  report that Private companies will begin managing care for most recipients of Medicaid by October 1, 2011. Yet this ten toed kingdom, the Ten Toed Kingdom of Global Governance, seen in Daniel 2:41-43, an amalgamation of iron diktat and clay democracy cannot, and will not endure. Eventually, the Sovereign, will establish a One World Government, with the Seignior, establishing universal regulation of banking globally, as well as Global Seigniorage.

The US, Canada, and Mexico, will be ruled as one, by stakeholders, appointed from government and industry. The North American Continent will be one of the ten regions of global government; the groundwork having been laid by Martin, Fox and Bush when they met at Baylor University and announced the Security and Prosperity Partnership of North America on March 23, 2005; and by Obama and Harper as they met for the Security Perimeter Talks in February 2011.  Paul Craig Roberts writing in Global Research documents The Decline and Fall of the American Empire.

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