I. … Alex Lantier and Kumaran Ira in WSWS report Socialist Party Candidate Hollande Wins French Presidential Elections, Calls For Growth.
Socialist Party (PS) candidate François Hollande won the second round of the French presidential election yesterday, taking 51 percent of the vote against incumbent right-wing President Nicolas Sarkozy. Approximately 81 percent of France’s 46 million voters participated in the elections.
Hollande’s victory reflected this sentiment against Sarkozy—despite a sense in the working class that the two candidates had few differences in terms of concrete policies—as voters looked for change. What they will find with a Hollande government is, however, not change, but an intensification of the attacks on the working class.
Hollande gave his victory speech from Tulle, a small town in southern France where he was the mayor from 2001 to 2008, during which time he was simultaneously the PS’s first secretary.
Hollande proclaimed he would be the “president of everyone.” Claiming that “divisions” between French citizens were “finished,” he demanded national unity to “increase production, reduce deficits, and preserve our social model.” He outlined a “French dream” of “progress” and a “long march” towards a better life.
Addressing “our European partners and first of all Germany,” he said that “austerity can no longer be an inevitable destiny” and called for “giving European construction a dimension of growth, jobs, prosperity, and future.”
These banal phrases aim to hide the political reality widely felt by masses of working people in France during the election campaign: Hollande and Sarkozy were two virtually indistinguishable candidates.
Hollande ran on a right-wing program of slashing budgets to respect the pro-austerity European Union fiscal pact. He stated that he had no criticisms of Sarkozy’s foreign policy—which included wars in Afghanistan, Libya, Ivory Coast, and now Syria. He praised the “German model” of structural reforms to slash labor costs and improve French firms’ competitiveness on international markets at the expense of the workers.
For its part, Berlin made clear that it viewed Hollande’s calls for “growth” as part of a drive to impose more austerity measures on the European working class. German Foreign Secretary Guido Westerwelle declared, “We will work together for a European growth pact on Sunday, during a brief visit to the French embassy in Berlin after François Hollande’s victory… We must add a new impulsion for growth, which requires structural reforms.”
II … Global growth and European Growth have ceased on the failure of neo liberal finance.
The investment consensus is that the debt trade, that is the ongoing expansion underwritten by faith in credit, as seen in this monthly chart of Total Bonds, BND, topping out, as well as seen in the expansion in US money supply, M2, topping out, has come to an end with the exhaustion of world central banks’ monetary policy to stimulate ongoing global trade and economic expansion, and the ability of the ECB to stabilize an insolvent Spain, ESP, and its insolvent banks, such as Banco Santander, STD .
The safe haven trade in US stocks, VTI, is over on the failure of neo liberal finance, as well as the end of the business, economic and investment super cycle. The Russell 2000, IWM, has been leveraged up on bank credit, KRE, and business credit, DFS, AXP, as well as personal credit MC, and V. Another word for credit is trust.
Trust in the ability of capitalism is waning; and trust in regional global governance will rise once the smoldering fire in the world financial institutions, IXG, and the European Financial Institutions, EUFN, as well the too big to fail banks, RWW, turns into a bonfire, and Financial Armageddon, that is a credit buts and global financial breakdown occurs, over the failure of sovereign debt, BWX.
This ongoing Yahoo Finance Chart shows Europe, VGK, now negative for the year, and the Russell 2000, IWM, US Infrastructure, PKB, and Large Cap Growth, JKE, now turning lower; the latter received investment stimulus from LTRO 1 and LTRO2; at the end of the Age Of Leverage, investors rotated into the Large Cap Growth Shares, JKE, such as Amgen, AMGN, and Exxon Mobil, XOM. But now, there is no safe haven fiat stock investment, and all stocks are being led lower by Small Cap Value Shares, RZV, seen such as World Fuel Services, INT, and Cardtronics, CARD.
Global stock, VT, has turned lower on falling commodities, DBC, as well as falling major world currencies, DBV. The world is pivoting from the Age of Leverage and Speculative Investing and into the Age of Deleveraging and Debt Servitude as investors derisk out of momentum trades as the global government finance bubble has finally burst. Risk-on investing has turned to risk-off investing.
III … Soon political capital will replace investment capital.
In the New Europe, new sovereign leaders and sovereign bodies will be announced, via regional framework agreements, by leaders meeting in summits, who will renounce national sovereignty and pool regional sovereignty. Monetary cardinals, working under a momentary pope, will provide credit and infrastructure structure management, as they implement monetary policy featuring structural reforms such a revoking the constitutional right to state employment in Greece, as well as doing away with national wage laws through out the EU. And a budget commissioner will over a fiscal union establishing fiscal austerity. Public private partnerships such as Macquarire Infrastructure, MIC, and Maximus, MHS, will oversee economic activity, as they work to stabilize and sustain regional manufacturing and resource production.
Bible prophecy reveals that the outcome of the European Sovereign Debt Crisis is going to be regional global governance. Jesus Christ has opened the first of the seven seals, Revelation 6:1-2, and has unleashed the first horseman of the Apocalypse, the rider on the white horse who has a bow, without any arrows, to effect global economic and political coup d etat. The world is pivoting from the age of choice, leverage and speculative investment, and into the age of diktat, deleveraging, and regionalization. The dynamos of global growth, export and profit that empowered capitalism are winding down, and the dynamos of security, stability and sustainability that power regional global governance are winding up.
Concepts as Freedom, Free Enterprise, and a Free Money System, one where money is based upon an objective standard, are simply dreams of the fiat mind of Libertarianism; such things are mirages on the Neoauthoritarian Desert of the Real. Diktat will serve as both money and credit under Neoauthoritarianism. And as for choice, it is an epitaph on a tombstone of the bygone era of Neoliberalism. Neoauthoritarianism features a global gulag of debt servitude functioning in ten regions of statism and totalitarian collectivism.
I perceive there is only a Sovereign Lord God, Ephesians 1:1-23, and that he has a Sovereign Will, 2 Corinthians 5:17-18, by which He directs all things, and that His Word of prophecy reveals that out of the soon coming collapse of the world’s institution of finance, commerce, trade and investment, the diktat money system of the Beast Regime of totalitarian collectivism and statism, will rise to provide diktat as credit and money, and that the people will marvel at its authority, and follow after it, giving it worship, Revelation 13:3-4.
The prophet Daniel reveals in Daniel 2:31-33, that the iron power of UK and US global hegemony will soon collapse and that a ten toed kingdom of regional global governance, where toes of iron diktat and clay democracy, will occupy in all of the world’s ten regions.
Furthermore, scripture reveals that a leader, the Sovereign, Revelation 13:5-10, and a banker, the Seignior, Revelation 13:11-18, will rise to rule the Euro zone, and eventually the world. The word, will and way of these two will change our times and our laws, their diktat will be the authoritative law of the land replacing constitutional and national law, Daniel 7:25.
An inquiring mind asks might the coming Seignior, meaning top dog banker who takes a cut, be Jens Weidmann? Dow Jones reports “Jens Weidmann, chief of the German central bank who carries considerable weight among European Central Bank rate-setters, stepped up his defense of fiscal rectitude. His comments come amid a raging debate in Europe about whether governments should continue to pursue strict budget discipline amid signs that cutbacks are impeding economic growth. ‘Precisely in times of uncertainty it is important that policy remains credible and sticks to that which it has committed itself,’ he tells the German weekly Die Zeit. ‘A forceful budget restructuring and decisive structural reforms are the best growth policy, because through this confidence is created and the capacity of the economy is strengthened.’”