Spain’s Pursuit Of A Value Added Tax Continues Paving The Road To Greater EU Fiscal And Political Integration

Introduction

A report on the continuing development of regional global governance as called for by the 300 elite of the Club of Rome in 1972 through 1974. Daniel Taylor of Old Thinker News provides a report that in a Bildergerg meeting in 1953, the basics of European integeration were laid out, and  relates that the Club of Reme came out with a report titled the “Regionalized and Adaptive Model of the Global World System.” In this report a map is shown which divides the world into 10 political/economic regions.

1) … Spain’s pursuit of a value added tax continues paving the road to greater EU fiscal and political integration.
Mike Mish Shedlock writes the article Spain’s Road To Hell: Spain Entertains VAT Hike and concludes Spain should see the writing on the wall and default now. If Spain doesn’t, it will face a slow road to hell just as happened to Greece.

To what hell might he be inferring? Perhaps the hell is one of further economic destruction under fiscal austerity. Being that he writes from the Austrian Economics perspective I have to assume he would prefer the heaven of structural reforms extinguishing national wage laws and other union advance. Or perhaps the hell is one of loss of national sovereignty by ongoing participation in mandates from Brussels and Berlin; to that hell I devote the rest of this article, as it is a hell on earth that God from eternity past has ordained so that people, as well as angels would come to know Him as sovereign.

Greece lost its national sovereignty by partaking of a series of bailouts, a minor one, (April 2010), and two major ones, (May 2010 and March 2012), and is experiencing an economic hell of an imposed technocratic government under L-Pap, austerity measures such as high taxes, reduced spending, growing unemployment, increasing homelessness, continued lack of competitiveness, closed professions, and banking controlled by European Financial Institutions.  Through default, and anarchy, it would have become a sovereign nation, with perhaps minimal government, businesses providing competition, open professions, and independent banking evolving, but Greece did not go that way. God had the idea of producing a beast regime to govern mankind, and the idea of bringing forth a ten toed kingdom of regional global governance.

Neoauthoritarianism, that is rule by a beast regime of integrated banking, economic and political institutions, in fact integration of all of mankind’s seven institutions, commenced in May of 2010, when Greece did not default and accepted the first Greek Bailout.

The experience in Greece sets the pattern for a road to serfdom, where people live as residents in a region of global governance, statism, debt servitude, and totalitarian collectivism, where banking and government become indistinguishable, and where diktat serves as both money and credit. Spain is now paving the road to serfdom of a unified fiscal, banking and political Federal Europe, by imposing a new value added tax.

The fiat money system is history as both money and credit died Tuesday April 10, 2012 when world stocks turned lower on exhaustion of the world central banks’ monetary authority.  In the New Federal Europe, the diktat money system is emerging to provide both federal monetary authority, and federal fiscal authority, as monetary cardinals and budget commissioners provide diktat serving as both money and credit.

Neoliberalism was the final form of capitalism that commenced in the late 1700s and ended in April 2010, as stocks turned lower on exhaustion of the world central banks’ monetary authority, this being seen in the Bespoke Investment Blog article Most Oversold ETFs, where Spain (EWP), Italy (EWI), clean energy (PBW) are pulling and oil & gas (IEO) lower. The failed sovereigns and their failed banks, such as Santender Bank, STD, reflect that the Fed’s and ECB’s monetary authority has not only failed to stimulate growth, but is actively toxic to industries seeking to reward investors for global growth and trade.

Through fate, Revelation 2:26-27, and Revelation 6:1-2, Neoauthoritarianism, Revelation 13:1-4, and regional global governance, Daniel 2:31-33, is rising to replace Neoliberalism.

The abandonment of the gold standard, and the provision of the Milton Friedman Free To Choose floating currency regime in 1971, gave birth to the banker regime of Neoliberalism.

The beast regime of Neoauthoritarianism will be growing ever more steadily now that stocks have turned lower on exhaustion of the world central banks’ monetary authority. The beast regime is foretold in Bible prophecy of Revelation 13:1-4, where a monster of statism rises from the Mediterranean Sea to rule mankind with seven heads, that is occupies in all of mankind’s seven institutions, with ten horns, that is it dominates in the world’s ten regions.

As national Treasury debt interest rates rise above 6%, nations lose their debt sovereignty, and are no longer sovereign nation states; these countries lose their sovereign authority and come to be ruled by other nations, such as Cypress being rule by Russia, and Greece being ruled by the EU ECB and IMF Troika. Currently Spain’s sovereign yield is right at 6%.

Ambrose Evans Pritchard writes of Spain, The country’s borrowing costs have jumped 100 basis points since February, when the European Central Bank last flooded banks with liquidity under its three-year lending scheme (LTRO). “The LTRO was supposed to be the game changer but the stimulus has worn off. It looks like it is falling apart at the seams,” said the Suki Mann from Societe Generale.

A disastrous debt auction last week was taken as a sign that Spanish banks have exhausted their LTRO money and can no longer prop up the Spanish state through this back-door funding, leaving the country nakedly exposed. Other buyers are scarce after the EU imposed a 75pc haircut on investors in Greece.

Finance minister Luis de Guindos confirmed that Spain has tipped back into recession, with a 0.3pc contraction in the first quarter. He expects the economy to shrink by 1.7pc this year, though Citgroup said it could be much worse. Unemployment is already 23.6pc.

And The Telegraph reports Spanish Epiphany as Depression Deepens? Spain’s industrial output is sliding at an accelerating rate, as is entirely predictable if you enforce draconian fiscal tightening on an economy in deep recession with no offsetting monetary stimulus or exchange rate devaluation. The latest data show that output fell 5.1% (y/y) in February, after 4.3% in January and 3.5% in December. Durable goods fell 14.8pc, the sixth successive monthly fall. Capital goods output fell 10.6pc, according to Raj Badiani from IHS Global Insight. This is politically untenable. Unemployment is already 23.6pc on the Eurostat measure. David Owen from Jefferies Fixed Income expects this to reach 27.5pc by the end of the year (which is roughly 32pc using the old measure from the 1990s, based on a Bank of Spain study).

The Sovereign Lord God, Ephesians 3:1-11, 2 Corinthians, 5:17-18,  is acting to pass the baton of sovereignty, Revelation  6:1-2, from sovereign nation states to regional authorities, such as the EU ECB and IMF Troika, the ECB, and Angela Merkel, so as to effect regional global governance called for by the 1974 Club of Rome in 1974, as investors derisk out of speculative investments and delever out of commodity investments, as part of His foreordained plan to replace the iron rule of UK and US hegemony, with iron and clay toes of regional global empires, as seen in Daniel 2:31-33. This was presented decades ago by the polemic Garner Ted Armstrong in his TV productions, The World Tomorrow, where he spoke of a United States Of Europe.

Neoliberalism featured banker rule. Neoauthoritarianism features a combined banker, industry, and government rule. Soon in Europe, their will effectively be a government bank, as part of a One Euro Government, most likely the ECB will be announced by leaders as Europe’s Bank.

Wikipedia as part of its coverage of the Greek Debt Crisis, relates that saving the banks has been the major purpose of the First and Second Greek Bailout Package as well as the purpose of LTRO 1 and 2. Paul Krugman has also said: “Listen to many European leaders—especially, but by no means only, the Germans—and you’d think that their continent’s troubles are a simple morality tale of debt and punishment: Governments borrowed too much, now they’re paying the price, and fiscal austerity is the only answer.”[250]  German and other financial institutions have scooped a huge chunk of the rescue package: “more than 80 percent of the rescue package is going to creditors—that is to say, to banks outside of Greece and to the ECB. The billions of taxpayer euros are not saving Greece. They’re saving the banks.”[251]  The shift in liabilities from European banks to European taxpayers has been staggering: one study found that the public debt of Greece to foreign governments, including debt to the EU/IMF loan facility and debt through the eurosystem, increased by €130 bn, from €47.8 bn to €180.5 billion, between January 2010 and September 2011.[252]  The combined exposure of foreign banks to Greek entities, public and private, was around 80bn euros by mid-February 2012. In 2009 they were in for well over 200bn.[253]  The director of LSE‘s Hellenic Observatory mused: “Who is rescued by the bailouts of the European debt crisis? The question won’t go away. . . . The Greek banks, vital to the provision of new investment in an economy facing a sixth year of continuous recession, have certainly not been ‘rescued’ . . . [and] face large-scale nationalisation. . . . Has the intention shifted: not to rescue Greece, but to rescue Europe from it? Athenians might well turn the aphorism around and warn their partners in Lisbon: ‘Beware of Europeans bearing gifts.'”[210].

Soon, the spiraling downward economic decline in Spain, will result in its inability to sell debt in the Treasury market place and Spain will face default.

When Spain defaults, there will be another breaking point; either a splitup of the EU or an integration into a Federal Europe by mandate of leaders.

Germany has such profound technological, industrial, and natural resource advantages, that if peripheral nations went the route of sovereign nation states, they would be reduced to the merest of subsistence living in order for trade surpluses to arise. Angela Merkel is a European Federalist, and has no desire whatsoever to lead Germany out of the Euro.  And as it is now Germany is proudly pleased that it is enjoying economic vigor with a tremendous trade surplus with the periphery, and low sovereign debt interest rates as investors seek safe haven in German sovereign debt.

Conclusion

There is but one road; the road to serfdom in the EU is increasingly being paved  by
1) ongoing use of the Euro as a currency,
2) the ECB emerging as Europe’s bank having subordinated all debt to itself as part of the second Greek Bailout, and by provision of LTRO 1 and 2,
3) country debt  brakes being implemented as part of the recent leaders announcement of a fiscal compact, whereby each EU nation is introducing a balanced budget amendment, spending reductions and tax policies to meet budget goals.  A case in point being Spain’s provision of a new value added tax.
4) Greece’s example of a bailout rather than default. Spain and its banks are too big to bail, unlike Greece, will default now as part of future Global Financial Armageddon, where one of the Beast’s seven heads, the head of finance, commerce, trade, suffers a mortal wound as foretold in Revelation 13:3-4, and yet recovers, as leaders meet in summits and announce regional framework agreements that waive national sovereignty and provide regional sovereign authority for regional stability, security, and sustainability, via diktat to be used as both money and credit.
Spain is not a fiscally sustainable nation; its Treasury rates suggest it is an insolvent nation and the trade in its ETF, EWP, as well as that of its banks, suggest that its banks are insolvent; and Spain is a nation that is too big to bail.

Soon out of Sovereign Armageddon, that is a credit bust and global financial breakdown, a Europe, monetary cardinals, under the Monetary Pope, Mario Draghi, will work in public private partnerships to provide regional economic coordination and oversight of resources, production, and labor. And in Europe, a Fiscal Commissioner, will oversee regional technocratic government, imposing austerity and debt servitude on all.

2)  … Some live apart from from the fiat realm, these live in the divine realm almost continually.
An inquiring mind asks, If we all were to make the significant decisions in our lives based upon a moral virtues quotient, instead of the reward based upon monetary gain, how drastically would our world and our reality change?

The Apostle Paul was a revolutionary leader, he held forth in 2 Peter 1:1-10, the experience of living in the divine realm, that is call to awareness of being one of the very elect of God, that is those of like precious faith, who add to their faith virtue, a set of moral excellencies, and love, and in so doing partake in the Divine nature, so as to receive the exceedingly great promises and so as to live a fruitful life in God’s Spirit.

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