Stocks Turn Lower On Merkel And Sarkozy Proposal For A True European Economic Government With A Leader … Today Saw A Giant Leap Forward Into The Ten Toed Kingdom of Global Governance.

Financial Market Report For Tuesday August 16, 2011

1) … Merkel, Sarkozy Propose Eurozone Government, Associated Press reports.
In a meeting on Tuesday August 16, 2011 French President Nicolas Sarkozy and German Chancellor Angela Merkel pledged to harmonize their countries’ corporate taxes in a move aimed at showing the eurozone’s largest members are “marching in lockstep” to protect the euro; and called for all countries that use the euro to have mandatory balanced budgets and better coordination of economic policy, rather than pursue an immediate financial measure like a single European bond.

Sarkozy told reporters that he and Merkel want a “true European economic government” that would consist of the heads of state and government of all eurozone nations. The new body would meet twice a year, and more in times of crisis, and be led initially by EU President Herman Van Rompuy for a 2 1/2-year term. After that, Sarkozy suggested, it could be opened up to other heads of states and government.

“There has to be a stronger coordination of financial and economic policy” to protect the euro, Merkel said.

“We will regain the lost confidence,” she said. “That is why we go into a phase with a new quality of cooperation within the eurozone,” she added, referring to the proposal of forming a permanent economic government for the eurozone.

Tyler Durden’s analysis is correct: “The take over of Europe by the new axis countries: France and Germany, is complete.

Bloomberg reports Merkel, Sarkozy Propose Closer Regional Cooperation, Shunning Euro Bonds. German Chancellor Angela Merkel and French President Nicolas Sarkozy said they’ll press for closer euro-area economic integration with tougher deficit rules and stricter supervision as they strive to stamp out the debt crisis. Merkel and Sarkozy rejected euro bonds and expanding the 440 billion-euro rescue fund and said they would propose a Europe-wide financial transaction tax, which was rejected in 2010. They set out joint proposals to strengthen the euro including plans for all euro-area states to demonstrate a “verifiable commitment” to anchoring debt limits in national law and a “euro council” to be headed by European Union President Herman van Rompuy. “It’s very obvious that in order for this to work we need a stronger convergence in finance and economic policy within the euro zone and Germany and France are at the vanguard of that effort,” Merkel said. The leaders met as investors clamored for indications that they would do more to stamp out the euro area debt crisis as their economies sputter. Joint euro region bond sales may be “imaginable one day,” though can only be the final step in the process of European integration, Sarkozy said. “I don’t think Europe has used its last resource yet and I don’t think we can resolve the problem with a single big-bang policy,” Merkel said

2) … Stocks Fall as Europe Floats Financial Tax, Bloomberg reports,
Stocks fell, following the biggest three-day rally for the Standard & Poor’s 500 Index since 2009, as French President Nicolas Sarkozy said his nation and Germany will propose a financial transaction tax.
PSCE -4.3
PNQI -3.0
URA -4.1
XME -3.4
COPX -3.2%
PXN -2.9
IEZ -2.8
OIH -2-7
SEA -2.7
XSD -2.6
KOL -2.5
PSP -2.4
SLX -2.4
GEX  -2.3
SKYY -2.1
IWO -.2.2
KCE -2.1
PSCT -2.1
SKYY -2.1
XLF -2.0
KBE -2.0
ALUM -2.3

INDY -.3.0
SCIN -.5.9

EWD -2.7
EWI -2.6
EWO -2.6
EWP -2.5
EWG -2.4
EWN -2.4
EUFN -2.3
GERJ -2.3
VGK -2.0

CNDA -2.5

EWA -2.1
EZA -2.3
EWT -2.4
RSX -1.9

ACWI -1.6

3) … The Open Europe timeline of eurozone meetings documents the rise of European economic governance and the waiving of national sovereignty by Leaders’ Announcements.  

4) …   A European Chancellor, having great fierceness, like that of Charlemagne, will rise to rule Europe in a type of Revived Roman Empire. The Sovereign will be accompanied by the Seignior, meaning top dog banker who takes a cut. Regional framework agreements and the announcements of European Leaders are waiving national sovereignty. There are no longer sovereign individuals in Europe; there are now sovereign leaders.

Seigniorage in Neoliberalism came from floating world currencies, DBV, and emerging market currencies, CEW, and the leverage that came with the credit liquidity policies of the US Federal Reserve such as POMO, TARP and ZIRP, as well as the securitization of GSE debt by Mortgage REITS and wall street investment bankers and mutual funds as well as from expanding carry trade investing..

Yet now, carry trade investing investing, ICI, is unwinding, the world’s currencies are sinking, and we are witnessing the collapse of the banking, KBE, and financial sector, XLF, mortgage finance, KME, Mortgage REITS, REM, the underwriting of investments by investment bankers, KCE, and the Too Big To Fail Banks, RWW, the selling of insurance policies by insurance companies, KIE, the stimulus of quantitative easing to generate Automobile sales, CARZ, and global economic growth in Networking, IGN, and Semiconductors, XSD, Natural Resource Companies, URA, OIH, IEZ, COPX, ALUM, KOL, Steel, SLX, Metal Manufacturing, XME, Small Cap Value, RZV, as well as Alternative Energy, GEX. Debt deflation, that is currency deflation is underway, as is inflation destruction, that comes with exhaustion and unwinding of the QE Trade.

Seigniorage, that is moneyness, in Neoauthoritarianism, will be more political than economic with the word, will and way of the Sovereign in Europe, and the diktat of sovereign leaders in regional groups, underwriting both political governance and economic activity in the Age of Deleveraging.

Today’s Merkel and Sarkozy call for “true European economic government” is a continuance of the Clarion Call of the Club of Rome in 1974 for regional government in the the world’s ten regions. Merkel and Sarkozy are globalist apostles building the Ten Toed Kingdom of Global Governance.


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