Today May 29, 2012, Spain’s Santander, STD, led Spain, EWP, and European Financials, EUFN, lower as Mining Stocks, MXI, led by Rare Earth Mining, REMX, Copper Mining, COPX, and sparked World Small Caps, VSS, higher.
Open Europe reports El Mundo: Spain could seek EFSF aid to recapitalise its banks if borrowing costs remain at current levels; Reuters: ECB not opposed to Bankia recapitalisation plan
El Mundo yesterday quoted Spanish government sources saying that Spain could tap the eurozone’s temporary bailout fund, the EFSF, to launch a bank recapitalisation if the country’s borrowing costs remain at current levels for too long. One of the sources said, “This is a possibility…The EU has not decided yet what to do with Greece. We need to wait until the [Greek] elections. Then, we will see.” Yesterday, the spread between Spain and Germany’s ten-year bonds reached its highest level since the introduction of the euro. Speaking to the press, Spanish Prime Minister Mariano Rajoy said, “There will be no bailout for the Spanish banking sector”, and insisted that the EU should make clear that the euro is “irreversible”.
Meanwhile, Reuters España quotes a Spanish government source saying that the ECB “doesn’t have any problems” with the idea of recapitalising Bankia with government bonds – which would then be used as collateral to get ECB funding. The source notes, “The ECB has been closely consulted on the issue. This solution has been already used for Germany and Ireland in the past, and is a perfectly valid one.” Separately, a parliamentary spokesman for Rajoy’s Partido Popular, Rafael Hernando, said in an interview with Spanish public radio RNE that the ECB’s “inaction is provoking this situation of instability” on the bond markets. The ECB did not buy any eurozone government bonds for the eleventh consecutive week, reports Les Echos.
Reuters España Telegraph Telegraph Telegraph: Osborne Telegraph: Evans-Pritchard Les Echos Le Monde WSJ: Review & Outlook FT City AM Expansión WSJ Le Figaro Il Sole 24 Ore El Mundo El País Cinco Días La Moncloa: Press review Independent EUobserver Guardian Times BBC EurActiv Irish Independent El Economista Les Echos Süddeutsche Welt
EuroIntelligence provides the best of reporting in its for fee news letter, which I recommend that one subscribe to; it relates Wolfgang Proissl calls on the World Bank to engage in nation building in Greece. In his column for Financial Times Deutschland Wolfgang Proissl argues that the eurozone and Greece should overcome misled pride and ask the World Bank to lead an effort of nation and institution building and in fighting corruption. Proissl argues that despite the rescue loans Greece is running the danger of becoming a failed state and that only an organization with the experience and the outside authority like to World Bank lead an international effort to rebuild a functioning state and to avoid further decline. In the past international economic policy makers, like Mexico’s central bank governor Agustín Carstens, have called on the World Bank to become active in Greece but this has so far been rejected by the eurozone and the World Bank.
And Euro Intelligence reports Mohamed El-Erian, meanwhile, warns that the Greek bank jog may be about to turn into a eurozone-wide bank run, and requires urgent policy action. In an ft.com column, Mohamed El-Erian picked up on the idea of a leisurely bank run, a bank jog. The normal critical safeguards against this happening are a combination of central bank emergency liquidity, and a well-function deposit insurance system. These kick in once the first line of defence, the capital cushion, is exhausted. Unfortunately, the linkage between banks and their sovereign has complicated the credibility of the deposit insurance system, which relies on the credibility of the sovereigns that stand behind them. And since banks have to pledge good collateral to obtain emergency funding, the power of this option is also undermined. In Greece, the bank jog needs to be immediately stopped if it is not to evolve into a fully-fledged run. That requires even more support from the eurozone. He said the eurozone urgently needs common deposit insurance for that purpose, along with direct capital injections into the banks. He ends with a warning that this is much worse than just another stage in the crisis.
Zero Hedge reports The president of the Bundesbank lashes out
Malaysia Finance reports The debasement of major currencies
Economic Policy Journal relates David Gordon is conducting a free online course, What Is Morality? The Ethics of Hazlitt.
Commentary: The Global Economy, The Economy of God, and The Election of Grace.
Since the death of money in April 2011, and the death of credit in 2012, the global economy, has been pivoting from inflationism into destructionism, where the dynamos of corporate profit and global growth and global trade are winding down, and the dynamos of regional security, stability, and sustainability are winding up, with the result that both capitalism and European socialism are diminishing and regional governance is rising to rule mankind’s economy.
The capitalist economies, of Thailand, THD, Norway, EWN, Chile, ECH, Singapore, EWS, have been based upon a high degree of exchange of value and work, while the European socialist economies, such as France, EWQ, Spain, EWP, Greece, GREK, and Italy, EWI, have bern highly based upon ponzi finance schemes of municipal, regional, and state debt, with the most egregious case being Greece, which is highly anti competitive, and where an ultra left party, that is a radical left party captured a sizable portion of the last election. Nevertheless, the global economy is dying on fears of a down turn in global growth and trade, as well as banking insolvency and sovereign insolvency.
In contrast the economy of God is active and alive in the lives of the elect, that is the chosen, of God.
Witness Lee writes in 1Timothy 1:4, of the Recovery Version of the New Testament, that the economy of God is in faith. And in commentary on page 970 relates that God dispense(s) Himself in Christ into his chosen people that He may have a house to express Himself, which house is the church, the Body of Christ. The Apostle’s ministry was centered on this economy of God (Col 1:25, 1 Cor 9:17).
Witness Lee writes in commentary of Ephesians 1:10, on page 851 and 852, The economy that God, according to His desire, planned and purposed in Himself, is to head up all things in Christ at the fullness of the times, (which) will be when the the new heaven and the new earth appear.
And Witness Lee writes in commentary on Ephesians 1:5 on page 850, God’s marking us out before-hand, was to destine us unto sonship. We were predestined to be sons of God even before we were created.
I relate that either one be dead in Adam or alive in Christ. Those dead, have a fiat experience that comes from a fiat identity, for example, one might have rules, or ethics, or morals, that come from a goal, philosophy or religion; while those alive, have been allotted the like precious faith of Jesus Christ; this comes from being the elect of God, as Peter relates in 2 Peter 1: 1. These individuals add to that faith virtue and six other principles, so as to experience the exceedingly great promises of God, and bear fruit that is pleasing to God, as communicated in 2 Peter 1:5-10.
Peter relates in 2 Peter 1:3 that God’s divine power has granted to us all things which relate to life and godliness, through the knowledge of Him who has called us by His own glory and virtue.
The greatest virtue of God, that is the greatest moral attribute of God is His election of the saints, that is his appointment of the believers. One cannot appoint oneself unto salvation, rather it is of God’s doing, 2 Cor 5:17-18, and thus the election of grace speaks to God’s glory, majesty, power, mercy, and wisdom.
Election serves as the bedrock for the addition of His other characteristics, that is His virtues, such as responsibility, work, compassion, respect for others, peace making and peace giving, honesty, and loyalty to name just a few.
In summary, God is providing new economic and political governance in Europe; it will be the prototype for regional governance in the world’s ten regions as regionalization establishes regional blocs replacing capitalism, European Socialism and former sovereign nation states, in order to bring forth the Kingdom of his Son. The dead in Adam, live in sin, that is what one does when one is not satisfied with God. On the other hand God, for the elect, he provides the like precious faith of Jesus Christ. These grow in an intellectual understanding of virtue and practice the prayer of faith, that is they believe they already possess the virtue they are praying for, as faith is the substance, that is the confidence assurance of things hoped for, and the evidence, the emotion, of things unseen. The elect go forth, in self control, perseverance, godliness, brotherly kindness and love, making their calling and election sure.