Financial Market report for August 19, 2011
1) … Stocks, Commodities And Currencies, Fall Sharply On Details Of The Merkel Sarkozy Plan For European Economic Government
Peter Spiegel and Quentin Peel of FT report Markets give eurozone plan cool reception. Markets
and fellow European leaders reacted coolly on Wednesday to proposals by the French and German leaders for more economic co-ordination between eurozone capitals, with several countries reiterating long-held reservations towards ceding control of tax and economic policies.
Nathalie boschat and Gabriele Parussini of the WSJ report Germany Push for Sanctions. France and Germany on Wednesday increased the pressure on their euro-zone peers to improve fiscal discipline in the bloc with a proposal to cut off the region’s wayward spenders from key European Union transfer funds. The proposal marks an effort to boost fiscal discipline across the euro zone by giving countries incentives to rein in spending and cut their budget gaps.
Pan Pylas of the AP reports European Bank Stocks Battered. British bank Barclays and French bank Societe Generale leading the way down, with losses of 11.5 and 12 percent, respectively. Germany’s Commerzbank was down 10 percent. Last week the European Central Bank opened its credit window and let banks borrow as much as they wanted for six months, an unusually long time that gives them more certainty about their funding. The ECB allotted 114 banks euro49.75 billion, more than expected. A request for dollars can be an indication that banks are worried they might have trouble getting access to funding. That concern was likely compounded by a report in the Wall Street Journal that U.S. regulators are looking at the U.S. arms of big European banks to see if they have reliable access to funds. “These are worrying signs,” said Neil MacKinnon, an economist at VTB Capital in London. “You could think of it as a mini-Lehman moment: There is the risk that a major eurozone bank might be a casualty.” In 2008, the investment bank Lehman Brothers filed for bankruptcy, causing the global credit markets to freeze up almost overnight. Banks refused to lend to each other because they feared more failures and greater losses. Companies and consumers were unable to get loans. European officials have struggled to strengthen their banking system during the government debt crisis since a number of banks remain dependent on last-resort credit from the European Central Bank. That is because worries about bank finances make other banks reluctant to lend them the money they need to operate. Banks have also been undermined by Tuesday’s revelation from German Chancellor Angela Merkel and French President Nicolas Sarkozy that the two countries’ finance ministers would come up with a proposal to slap a tax on all trading transactions. A transaction tax, a small percentage taken from foreign exchange and share transactions, for instance, has been proposed as a source of money to pay for bank bailouts but could hurt trading volumes a key source of revenue for many of Europe’s banks.If banks and investors had been holding their breath hoping for a panacea from Sarkozy and Merkel, they were disappointed, and Thursday’s dive could reflect the realization that there’s no easy way out of Europe’s problems. “All we got was more taxes and more bureaucracy and more austerity,” said MacKinnon.
A Finnish deal to get collateral from Greece to secure its rescue loans to the debt-ridden country has also raised renewed concerns over Europe’s handling of its debt crisis. Many of Europe’s banks, including Societe Generale and Commerzbank, have already taken big writedowns over their holdings of Greek debt and anything that makes Greece’s second financial bailout less likely has been viewed with dismay. Commerzbank, Germany’s largest commercial holder of Greek debt, wrote off euro760 billion ($1.1 billion) in Greek bonds, all but wiping out its second-quarter earnings. Last month’s decision by eurozone countries to grant Greece a second financial bailout, worth a total of euro109 billion ($157 billion), called for banks, pension funds and other private institutions that hold Greek debt to take their share of the pain.
Reuters reports Austrians, Dutch Follow Finns, Seek Greek Collateral. Austria, the Netherlands and Slovakia said Thursday they want collateral on loans to Greece after Finland secured a commitment, raising question marks over a second bailout agreed for Athens last month. The three countries said their positions were not new and echoed the view of some other euro zone states.
Bloomberg reports Dexia Falling Most in Two Years Leads European, U.S. Bank Drop. Dexia SA and Citigroup Inc. led a plunge in European and U.S. banks amid concern the regions’ economies are weakening and speculation that some European lenders may struggle to fund themselves. Dexia, Belgium’s biggest bank by assets, fell 14 percent to 1.57 euros ($2.25) in the largest drop since March 2009. The 46- member Bloomberg Europe Banks and Financial Services Index tumbled 6.7 percent at 4:45 p.m. in London. Citigroup, the third-largest U.S. bank, dropped 7.5 percent to $27.62 at 12:26 p.m. in New York, making it today’s worst performer in the KBW Bank Index of 24 U.S. firms. Europe’s sovereign debt crisis is spurring the Federal Reserve Bank of New York to question the region’s lenders about their access to funds for U.S. operations, the Wall Street Journal reported today, citing people it didn’t identify. An undisclosed euro-area lender borrowed $500 million from the European Central Bank Aug. 17, the first such bid in six months. U.S. shares fell after initial jobless claims unexpectedly rose and Philadelphia-area manufacturing shrank by the most in more than two years. “Macro conditions almost everywhere you’re looking are deteriorating,” said Gary Townsend, a founder of Hill-Townsend LLC in Chevy Chase, Maryland, which has $42 million under management. “These things spell an economic slowdown that is going to impact earnings and possibly credit quality but certainly share prices.” Societe Generale SA, France’s second-largest bank, sank 12 percent in Paris, while Barclays Plc slid 11 percent in London. The KBW index slid 4.7 percent to 36.91. Bank of America Corp., the nation’s biggest lender, declined 6 percent to $7.01. Regions Financial Corp., Alabama’s largest bank, fell 5.6 percent to $4.29
Bloomberg reports Corporate, Sovereign Credit Risk Surges in Europe on Economy. The Markit iTraxx Crossover Index of credit-default swaps lined to 40 companies with mostly high-yield credit ratings increased 44.5 basis points, the most since May 2010, to 644, according to JPMorgan Chase at 4 pm in London. The Markit iTraxx SovX Western Europe Index tied to the debt of 15 governments rose 21 basis points to 298. The Markit iTraxx Europe Index of 125 companies with investment-grade ratings rose 9.5 basis points to 152.5 basis points. The Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers increased 13 basis points to 233 and the subordinated index climbed 18 to 393.
Open Europe reports “To cement their ideas, Merkel and Sarkozy sent a letter to European Council President Herman Van Rompuy, stressing the need for all 17 eurozone members to institute a constitutional debt limit by next summer and suggesting that in the future “payments from structural and cohesion funds would have to be suspended” if a country refused to take the recommended action to reduce a budget deficit. El Pais reports that Spain would lose the most under such a proposal as it’s the second biggest recipient of structural funds and is currently in break of the proposed deficit rules.
In response, Austrian Finance Minister Maria Fekter suggested an agreement on ceding control over economic and tax policy to the eurozone level “is very, very far away”, while Irish Finance Minister Michael Noonan reiterated his government’s long standing opposition to a consolidated corporate tax base. Finnish Finance Minister Jutta Urpilaninen said, “Finland successfully takes up its responsibilities for national debt with its government programme and there is no need to write [a debt limit] into the constitution.” It is also likely that instituting the debt limit in all 17 constitutions would necessitate referendums in Spain and Ireland, and General Elections in Belgium and the Netherlands.
The front page of FTD reports that German Foreign Minister Guido Westerwelle has said that any member states that don’t implement the Franco-German plans “shouldn’t be allowed to stop the rest” from doing so, adding that “there should be more differentiated cooperation”, highlighting the possibility of a two-speed EU
Writing in La Repubblica, journalist Barbara Spinelli argues that, “If the [European] continent is sick of populism then representative democracy is broken: more and more decisions are made âânot by elected representatives but by technicians who do not respond to a supranational government
Commodities, DJP, fell 2.1% with Oil, USO, falling 6.7%l on worries that a weaker global economy will mean less demand. Base Metals, DBB, fell 2.3% and Agricultural Commodities, JJA, falling 1.8%.
Bloomberg reported earlier this week 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 US Dollar, $USD, rose as he world’s major currencies, DBV, emerging market currencies, CEW, with the exception of the Yen, FXY, and the Yuan, CYB, turned lower, as deft debtdeflation, manifested as competitive currency deflation, on unwinding carry trade investments. Currencies fell as follows:
BNZ -2.0, FXS -1.8, FXA -1.5, BZF -1.5, SZR -1.5, ICN -1.3, FXM -1.3, CEW -1.1, FXC -1.0, FXE -0.7, FXF -0.7.
Gold, GLD, the world’s sovereign currency, and storehouse of investment value rose to 1,827.
The yield on the 10-year Treasury note briefly fell below 2 percent for the first time, before recovering to 2.07 percent, as investors sought a supposed safe in US Treasuries, ZROZ, EDV, and TLT.
Bloomberg reports U.S. Mortgage Rates Hit 50-Year Low. U.S. mortgage rates fell to the lowest in more than half a century as concern that the global economic recovery is faltering spurred demand for bonds that guide home loans, according to Freddie Mac. The average rate for a 30-year fixed loan dropped to 4.15 percent in the week ended today from 4.32 percent, the McLean, Virginia-based mortgage financier said in a statement today. That was the lowest in more than 50 years, Freddie Mac said. The average 15-year rate fell to 3.36 percent from 3.5 percent.
World government bonds, BWX, and emerging market bonds, EMB, turned slightly lower, on falling currencies. Bonds, BND, manifested an evening star as the Flattner ETF, FLAT, rose on flattening on yield curves such as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX.
The longer out corporate bonds, BLV, rose more strongly that the short duration corporate bonds, LQD.
David K Randall of the Associated Press reports “Europe is the big question in the market, and nobody really knows what happens from here,” said Scott Brown, chief economist at Raymond James. Stocks in industries that depend on a growing economy fell the most. Asian markets started Thursday’s drop. Japan’s Nikkei 225 index fell 1.3 percent. South Korea’s Kospi stock index fell 1.7 percent, and India’s Sensex index fell 2.2 percent. The declines extended to Europe. In London, the FTSE 100 index fell 4.5 percent after a report showed that growth in British retail sales slowed more than economists expected last month. Germany’s DAX index fell 6.5 percent.
Reuters reports European Shares Fall Most Since March 2009. German shares lost most, with traders citing the effects of a short-selling ban on financial stocks in other parts of Europe and intensifying worries about politicians’ lack of a plan to address the euro zone sovereign debt crisis. The European banking sector , exposed to the euro zone debt crisis, fell 6.6 percent and is down 29.7 percent this year. Heavyweight fallers included Barclays and Societe Generale , both down 11.6 percent. Germany’s Commerzbank fell 10.5 percent. The FTSEurofirst 300 index of top European shares ended the session provisionally 4.9 percent lower at 923.85 points, the biggest fall since March 2009. “The market is beginning to price in a recession. The Philadelphia Fed number was an absolute abomination,” Michael Hewson, market analyst at CMC Markets, said. European shares traded as follows: EWD -8.8, GERJ -7.5, EWQ -6.5, EWG -6.5, EWI -6.9, EWP -5.1, EWN -5.1, VGK -5.8, EWO -5.6, EUFN -7.0.
Cloud Computing, SKYY, -8.4, Automobiles, CARZ-7.5, Energy Service, IEZ -8.5 and OIH -8.2, led the way lower with World Stocks, ACWI -5.1 and World Small Caps, VSS -5.1.
2) … In today’s news
Bank of America Loan Risk May Rise $9 Billion If Judge Sides With MBIA. Bank of America Corp. may face billions of dollars more in liability for faulty mortgages if a judge agrees with insurer MBIA Inc. that the lender must buy back loans even if the errors didn’t cause a borrower’s default.
Bloomberg reports Japan Exports Fall More-Than-Expected 3.3%. Japan’s exports fell more than expected in July as a global slowdown and a strengthening currency weigh on the outlook for the nation’s sales overseas. Exports decreased 3.3 percent in July from a year earlier, the Finance Ministry said today in Tokyo. The median estimate of 24 economists surveyed by Bloomberg News was for a 2.6 percent decline, after a 1.6 percent decrease in June
Bloomberg reports Jobless Claims in U.S. Rise Above Forecasts. More Americans than forecast filed applications for unemployment benefits last week, signaling the labor market is struggling two years into the economic recovery. Jobless claims climbed by 9,000 to 408,000 in the week ended Aug. 13, the highest in a month, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected a rise in claims to 400,000, according to the median forecast.
Bloomberg reports Philadelphia-Area Factory Index Plunges to -30.7, Lowest Since March of 2009. Manufacturing in the Philadelphia region unexpectedly contracted in August by the most in more than two years as orders plunged and factories shed workers. The Federal Reserve Bank of Philadelphia’s general economic index plunged to minus 30.7 this month, the lowest since March 2009, from 3.2 in July. The August gauge exceeded the most pessimistic projection in a Bloomberg News survey in which the median estimate was 2. The report showed the Philadelphia Fed’s new orders measure dropped to minus 26.8, the lowest since March 2009, from 0.1 in July. The shipments gauge decreased to minus 13.9, the weakest since May 2009, from 4.3 last month. The index of prices paid fell to 12.8 from 25.1 the prior month, while the measure of prices received dropped to minus 9 from 1.1. The employment index in the Philadelphia Fed report decreased to minus 5.2, the lowest since October 2009, from a reading last month of 8.9. A measure of the average workweek slumped to minus 14.4 in January from minus 5.4.
The Wall Street Journal reports Exxon Mobil, XOM, And The U.S. Government Duel Over Huge Oil Find. Exxon Mobil Corp is fighting with the U.S. government to keep control of one of its biggest oil discoveries ever, in a showdown where billions of dollars hang in the balance for both sides. The massive Gulf of Mexico discovery contains an estimated one billion barrels of recoverable oil, the company says. The Interior Department, which regulates offshore drilling, says Exxon’s leases have expired and the company hasn’t met the requirements for an extension. Exxon has sued to retain the leases. The court battle is playing out at a time in which the Obama administration has made an issue of unused leases, which deprive the Treasury of valuable taxes. The stakes are high: Under federal law, the leases, and all the oil underneath, could revert to the government if Exxon doesn’t win in court.
Business Insider reports The UN Just Released a Report That Could Make Lebanon Explode. Al Jazeera reports that the United Nation’s Special Tribunal for Lebanon (STL) has finally lifted confidentiality restrictions on its report on the 2005 assassination of former Lebanese Sunni Prime Minister Rafiq al-Hariri. The tribunal found enough circumstantial evidence to recommend that four members of Hezbollah stand trial for Hariri’s death.
Neoliberalism featured the Spirit of The Cat In The Hat; while Neoauthoritarianism features the Spirit of Wilding, Zero Hedge reports The Benz Burners Arrive: Protests Come to Germany as Arsonists Burn Down “Fat Cat” Cars.
The Philadelphia Fed Business Outlook Survey plunged to -30.7 with all indicators in decline. Mike Mish Shedlock comments As you can see, new orders, shipments, unfilled orders, and inventories are all in contraction. What’s not? Prices paid. This represents a price squeeze on manufacturers
Associated Press reports the following: Car dealers fear economy could scare off buyers ….. Consumer prices rose by the most since March. ….. Home sales dropped 3.5 pct. in July, hit 2011 low. ….. More people sought unemployment benefits
Bloomberg reports Gunmen Open Fire on Israeli Bus, Detonate Mine; 14 Injured. Gunmen opened fire on an Israeli bus traveling near the Egyptian border, detonated an explosive device near a patrol and fired an anti-tank missile at forces, injuring at least 14 people. Two gunmen were killed, Army Radio said.At least nine people were injured in the attack on the bus traveling to the southern port city of Eilat, according to Yoseftal Medical Center. In a second incident, an explosive device was detonated when a Israeli patrol passed by, Brigadier General Yoav Mordechai, the chief army spokesman, told Army Radio. In the third incident, an anti-tank missile was fired at forces, Mordechai said, without providing additional details. At least five people were in critical condition, Army Radio said. “This was a sophisticated operation carried out by squads of terrorists that infiltrated into Israel,” army spokeswoman Lieutenant Colonel Avital Leibovich said in a phone interview
A Global Eurasia War is coming as Fars News Agency reports Iran Urges West to Avoid Interference in Syria: “If pressures mount on Syria, Middle-East will move towards a devastating war”
3) … The Proposed Economic Government will be like the former Roman Empire.
End Of The American Dream writes The United States Of Europe: A Proposed “Economic Government” Would Integrate Europe To A Degree Not Seen Since The Roman Empire.
Michael E. Douroux writes The United States Of Europe: The Long Awaited Prize … Jimmy Prophet A Proposed “Economic Government”? The United States Of Europe … and Dr. Sanford Pinna writes Fiscal Union Means The United States Of Europe
Bea Kylene Jumarang writes in Changing the Face of Regionalism. Regionalism as defined presently is the pursuit of a common identity, common aims and goals as well as shared values and structures existing within a specific geographical region. This essay particularly focuses on the history of European regionalism, beginning from the postwar period of the 1920s and 1950s, extending until the present as well as the immediate predecessors of the European Union. The essay argues, furthermore, that the history and existence of the European Union has changed regionalism, in that it has prompted the beginnings of other regional initiatives, as well as remade the order of the international system through its institutions and politico-economic aspects.
According to a 2002 working paper by Helen Nesadurai, there are two approaches to this, the open approach aimed at integration with the global market and the form of regionalism that is a project of resistance against global market forces. In today’s world, regionalism dominantly undertakes the first approach, aiming for integration and collective prosperity for its members across a broad set of areas and issues of focus. Especially in today’s rapidly globalizing world, regionalism presents a more regulated, specific set of actions that undertake the process of tackling and resolving issues deemed relevant to the region.
No other regional association at present has come as close to representing the ideals and effects (both positive and negative) of regionalism than the European Union, which has traced its more formal beginnings to the Treaty of Rome in 1957, hailing from the European Economic Community and the European Coal and Steel Community, which were the first organizations to be based formally on principles of unity and certain aspects of supranational thought, which eventually spurred into existence the concepts of common markets and the like. Beginning with six initial members, the EU has now ballooned to 27 members to date.
The first instances of the concept of a united European front have for its impetus the First World War and the inadequacies of the peace settlement which induced the first sustained efforts to find an alternative to the fragmentation of Europe (Heater, 1992). Further, despite the retreat into an isolationist policy, the United States as the superpower of the 1920s prompted it to become the linchpin of European economic and arguably, political stability (Kent, 1989).
Moreover, the terms of the Treaty of Versailles, clearly something that undermined Germany and her future initiatives, created a period of Franco-German discord which generally spurred distrust and non-cooperation, occasionally marked by periods of rapprochement similar to the case of US-USSR relations during the Cold War. These bursts of amicable relations resulted in the 1921 Wiesbaden Agreement, though this succumbed to intransigence on both sides (Fink, 1984: 18-19).
Despite this, the period of 1924-25 saw the birth of the International Committee for a European Customs Union and the optimism of Edouard Herriot of France, speaking of his hope to one day see the United States of Europe realized during a speech of January 1925 (Pegg, 1982: 816). However, this era also prompted doubts, expressed well by Hungarian economist Elemer Hantos in his writings questioning the integrative capability of a customs union (Weltwirtschaftliches Archiv, Vol. 23: 229-30, 235-38, 1926).
As of the present, the EU is the eminent template of regional associations. One such association is the ASEAN. Currently, the Association of Southeast Asian Nations is composed of ten member states and whose initiatives similar to the EU include the pursuit of an integrated economic market and open trade between members, though the completion of this goal is somewhat far off. In addition, the existence of the EU and the ASEAN has prompted the discussion of a ‘North American Region’, as evidenced by the existence of a proposal sponsored by the Council on Foreign Relations entitled Building A North American Community.
In recent years, most notably, the EU has become the focus on many debates for the future of global economies and states as well as the result of regionalism, many arguing that the future is to be a place and time of at least partial supranationalism, regional economics and globalized thinking. The Union’s agreements with counterpart organizations most notably the ASEAN have impacted the world view of what it means to be regionalist, as well as the possibilities of a global economy that looks less upon the sovereignty of states and more upon the effects of regional integration and the economic upheavals that come with it. Not to be forgotten though, the debt crisis concerning the Euro also presents a real view of the problems associated with regionalism and integrative fiscal policies.
More and more, the expression of European regional identity through the EU is impacting the international system in ways unknown before its existence. Regional blocs are now considering integration, the ASEAN is pursuing a path remarkably similar to the EU and the Union is now impacting the global system both in economics and politics. In this era of globalization, the integration of everything with everything else that shrinks the world from a size ‘medium’ to a size ‘small’ (Friedman, 2002) regionalism is making its mark known in a large sphere of influence.
What the EU means for regionalism in the present is well-known. The Union is a valid hallmark of egionalism itself, the concrete example of pursuing goals and aims beyond any state. However, what the EU means in the future will depend on what it undertakes today. In its history, it has moved beyond common economic progress, now having a large say in other aspects of statecraft through Common Foreign and Security Policy, externalized action through the EEAS (European External Action Service), international initiatives and partnerships with other regional and global associations such as the ASEAN and the UN as well as a large chunk of economic, political and development-oriented power.
In conclusion, the Union is no longer just a regional association. It is a view of the possible future, a state in many respects though also subservient to member initiatives, a world economic powerhouse and a home to policies commonly instituted. The Union is no longer just an external body, but a concrete expression of European unity and is at least, a partial fulfillment of the European ideals expressed after the First and Second World Wars. Indeed, the EU is a regional association unlike any other, and as it has in the earliest stages of its history until the present, the European Union is changing the face of regionalism.
4) … As The Engines Of Deleveraging Operate With Greater Intensity, A Sovereign Will Arise To Rule Europe, And Regional Economic Governments Will Arise From Framework Agreements To Provide Seigniorage, That Is Moneyness
Neoliberalism became the world’s regime in 1971 as the world went off the gold standard, And in 1974 observant bankers realized that the Milton Friedman Free To Choose Floating Currency Program and Bank of Japan lending at 1% interest could not go on to infinity, so they gathered the best and the brightest who called for regional economic governance in the world’s ten regions as a solution to the delveraging and unwinding that would come at the end the Age of Leverage.
In May 2011, the world passed through an inflection point moving from Neoliberalism and into Neoauthoritarianism, as is seen in the wold stocks, ACWI, falling lower.
The Clarion Call of the Club of Rome for regional economic government was heard and heeded by Chancellor Merkel and President Sarkozy. Clarion means trumpeting, as the word comes from the Latin word for trumpet and translates into English as clear, ringing and sharp. It is a call to action, a call to duty.
The two foremost European leaders have suggested Herman Van Rompuy as the leader for the European Economic Government. Its likely that he will rise to be President of the EU. Mr. Van Rompuy is distinguished in that he is brilliant, multilingual and unlike his peers, does not get involved in affairs with women. He will come in like a lamb, yet proceed like a fierce lion. His rule will be characterized by wildcat governance, as he will have to contend with many who oppose his way of austerity and reject his Seignior’s moneyness, which will be based upon their word, will and way. This Sovereign, is foretold in bible Propheyc in Revelation 13:5-10; he will be the New Charlemagne, in a type of Revived Roman Empire.
The Call of the Club of Rome produced an authoritarian imperative for regional economic goverment, which will come as leaders meet in summits and waive national sovereignty. The 1974 Conclave of Elites’ Call, is like a magnet drawing iron elements. it is both clear and compelling. Mrs Merkel will likely loose her elected office, yet the die is cast and destiny moves on. Neoauthoritarianism has replaced Neoliberalism, and fate will work to produce regional economic government in the world ‘s ten regions; this is presented as the Beast System of Revelation 13:1-4.
5) … Neoauthoritarianism is the polar opposite of the Ron Paul Agenda.
The ThinkProgress interview between Mr Paul and MSNBC host Chris Matthews, provides insight that the Ron Paul Agenda is one of liberty and discretionary use of private property. Ron Paul communicated that he wouldn’t have voted for the 1964 Civil Rights Act because it was unfair to property owners. When Matthews asked if Paul thought it should be legal for a store to refuse to serve African Americans, Paul dodged, saying, “that’s ancient history.” Finally, when asked if he thought we would be better off without the Act and other government programs like Social Security, Paul replied we would be “better off” if government stayed out of such matters:
MATTHEWS: You would have voted against that law. You wouldn’t have voted for the ’64 civil rights bill.
PAUL: Yes, but not in — I wouldn’t vote against getting rid of the Jim Crow laws.
MATTHEWS: But you would have voted for the — you know you — oh, come on. Honestly, Congressman, you were not for the ’64 civil rights bill.
PAUL: Because — because of the property rights element, not because it got rid of the Jim Crow law.
MATTHEWS: Right. The guy who owns a bar says, no blacks allowed, you say that’s fine. … This was a local shop saying no blacks allowed. You say that should be legal?
PAUL: That’s — that’s ancient history. That’s ancient history. That’s over and done with. […]
MATTHEWS: Let me ask you this. We have had a long history of government involvement with Medicare, Social Security, the Civil Rights Act, the Voting Rights Act. And I think you are saying we would have been better off without all that?
PAUL: I think we would be better off if we had freedom, and not government control of our lives, our personal lives, and our — and policing the world.
Liberty will be in continual conflict with Neoauthoritarianism’s Ten Toed Kingdom of Global Governance, which is preesnted both in Revelation 13:1-2 and in Daniel 2:34.
Liberty and diktat are like clay and iron, that is they are non compatible building materials, regional economic governance will crumble, and out of the ruins, the Sovereign of Revelation 13:5-10, will eventually rise to global power and install a One World Government described as beastly in Daniel 7:7 and Revelation 13:1-4. His Seignior, meaning top dog banker who takes a cut, described in Revelation 13:11-18 will install universal regulation of banking globally, specifically a One World Bank, and provide seigniorage globally in the form of The Mark, meaning etching in or tattoo upon.