tag:blogger.com,1999:blog-452266154915091025.post3986097729494165297..comments2023-06-02T01:35:22.808-07:00Comments on Rambling thoughts from Spain: Kicking the Can Down the Roadarthur.ihttp://www.blogger.com/profile/13859349794994822299noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-452266154915091025.post-36077965020494132722010-12-20T10:33:45.344-08:002010-12-20T10:33:45.344-08:00The economic problem in Europe is that the Europea...The economic problem in Europe is that the European banks are unable to recapitalize themselves; they have no credit seigniorage as they are burdened with non-marketable sovereign debt of Portugal, Italy, Ireland, Greece and Spain. The only capital the banks receive is by selling debt to the ECB.<br /><br />The European banking crisis, which Herman van Rompuy referred to as the sovereign crisis, is a two fold crisis, that of debt sovereignty and of sovereignty itself.<br /><br />The nations have lost fiscal fiscal sovereignty and fiscal seigniorage, as demonstrated by the high interest rates they must pay. The question arose in early May 2010, with the provision of seigniorage aid to Greece: who shall be in charge of nation state economy, its tax philosophy and public spending? With the acceptance of aid, Greece’s leaders waived national sovereignty, and European Leaders meeting in Summit announced European economic governance. At a later date they announced fiscal federalism with a plan for vetting of national budgets before they are presented to state legislatures. Global corporatism, that is state corporate rule, now governs Europe and its people, those in Greece are the first to be subjected to internal devaluation and increasingly harsh austerity. Those living in the Eurozone are no longer citizens of sovereign nation states, they are residents living in a region of global governance. <br /><br />Seeing such debt overhang, bond vigilantes, will be calling interest rates higher globally, followed in place by currency traders selling the Euro, FXE, and other world currencies, causing bank stock, and corporate stock values to fall. <br /><br />A catastrophe is coming out of rising sovereign debt interest rates, as well out of further global competitive currency devaluations at the hands of the currency traders, resulting in a financial market place implosion, the European Financial Institutions, EUFN, will fall quickly falling in value, taking the entire global financial system down, resulting in Götterdämmerung, an investment flame out, bringing forth a new age. <br /><br />Out of the chaos, Bible prophecy foretells in Revelation 13:5-10, that a Sovereign, that is a Chancellor, such as Angela Merkel or Herman van Rompuy or John Redwood will rise to govern. And Revelation, 13:11-17, foretells a Seignior, that is a Banker, such as Wolfgang Schäuble, or Olli Rehn, or Jean-Claude Trichet, or Gordon Brown or Jose Manuel Barroso, will rise to provide credit. <br /><br />The Seignior will have fiscal sovereignty to control deficit spending, enforce internal country devaluations, provide a common EU Treasury for both taxation and transfer payments, assure mutual guarantees of the EU debt, and as Timothy Geithner called for, implement unified regulation of banking globally. All seigniorage, both credit and fiscal will come and go through the Seignior, who will make decisions on where money is spent. The Seignior will coordinate all aspects of economic policy, includes taxes, wages.Anonymousnoreply@blogger.com