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On Europe And The Future Of International Relations

Tyler Durden's picture




 

Authored by Rodrigo Serrano of Rational Capitalist Speculator,

Since the 2008 financial crisis the foundations of the global economy have been in repair, translating into a prolonged period of economic frailty. Against this backdrop, social and political tensions have increased between citizens and government, international institutions and governments, and individual nation states. This murky political environment is fertile ground for international relations theory to: produce a better understanding of the forces affecting these developments, as well as offer potential solutions to these increasingly apparent conflicts.

The European debt crisis remains the largest challenge facing the global economy. A negative resolution emanating from the world’s largest economic bloc would cause harmful ripple effects worldwide in global trade flows. More importantly, it could also mark a paradigm shift in international relations, dealing a critical blow to what has been a relentless trend towards liberalism since the end of World War II, while providing fecund ground for a resurgence in realist ideology. Interestingly though, constructivism may be at the forefront in explaining the current dilemma between the European core and its periphery. It is therefore important for officials and institutions in leadership positions to analyze the situation through a constructivist lens.

Given the fast-paced nature of the political situation in the Eurozone, it is important to invoke a constructive approach when analyzing the competing forces affecting the region. Presently, we are witnessing a clash between long-standing and embedded “regulative norms” versus relatively recent “constitutive norms.” Both classes are best defined in Margaret Keck and Kathryn Sinkkink’s article: International Norm Dynamics and Political Change. “Scholars across disciplines have recognized different types of categories of norms. The most common distinction is between regulative norms, which order and constrain behavior, and constitutive norms, which create new actors, interests, or categories of action” (Keck and Sikkink 1998, p.891).

In peripheral nations such as Spain, Greece, and Italy, long-standing social welfare systems have served to entrench a cohesive array of regulative norms among society commensurate with a distinctive and generous standard of living. Meanwhile constitutive norms, such as the desire to erase the horrid memories of World War II along with the desire for economic prosperity, converged in the mid-to-late 1990s to create the European Monetary Union (EMU). Ironically, the bloc’s defining characteristic, the Euro, is now the impetus of the current conflict between these norms.

“Whereas Germany, still staggering under the financial burden of reunification, impressively massaged down its labor costs, trimmed its welfare spending, and became competitive again, many of the peripheral countries allowed their unit labor costs to soar” (Garton Ash Sept/Oct 2012, p. 3). In order to resolve the crisis, labor productivity must improve and labor costs lowered throughout the periphery to better compete in today’s demanding global marketplace. This means that social welfare systems in these countries will need to be substantially curtailed. In essence, for regulative norms throughout the periphery, the Euro and kryptonite are akin.

The discordance of these two powerful sets of norms has given rise to political activist groups such as Los Indignados in Spain and anti-Euro protesters in Greece, respectably demanding a softening of austerity measures and in the extreme case, advocating an exit from the EMU altogether. Like the Arab Spring, these groups bring to light what Ann-Marie Slaughter calls The New Foreign Policy Frontier. “But [Hillary] Clinton herself insists that 21st-century diplomacy must not only be government to government, but also government to society and society to society, a process facilitated and legitimated by government. That much broader concept opens the door to a do-it-yourself foreign policy, in which individuals and groups can invent and execute an idea -- for good or ill – that can affect their own and other countries in ways that once only governments could.” (Slaughter 2011, p.1-2). The aforementioned groups are having an increasing effect on German and European Union (EU) policy, with Germany’s Christian Social Union party leader Horst Seehofer recently softening his stance on Greek austerity and Angela Merkel appearing more receptive toward Spain requesting aid without further conditionalities.

Moreover, the conflict of these norms increases the threat of internal war, which adds another layer of complexity to the tenuous balance of power between sovereign states versus the supranational organization that is the EU. “As such, free trade that jeopardizes a state’s key industries or allows potential adversaries to become relatively stronger may not be in a state’s interest even if the economy of the state gains in an absolute sense. Better to subsidize an inefficient group of producers than face the threat of a violent challenge to the regime” (David 1998, p. 89). In simple terms, core countries demanding further austerity from an already recession-wracked periphery should tone down their rhetoric and give these countries a much needed breather or risk an anti-Euro political faction upending all progress up to date.

While examining the current situation in Europe through a constructive viewpoint seems most prudent, it does not significantly discount realism as a viable alternative when analyzing the current state of affairs. On the contrary, realism remains an underlying force in the current precarious condition between the core and periphery nations. “The economic expert, dominated in the main by laissez-faire doctrine, considers the hypothetical economic interest of the world as a whole, and is content to assume that this is identical with the interests of each individual country. The politician pursues the concrete interest of his country, and assumes (if he makes any assumptions at all) that the interest of the world as a whole is identical with it… Laissez-faire, in international relations as in those between labor and capital, is the paradise of the economically strong. State control, whether in the form of protective legislation or of protective tariffs, is the weapon of self-defense invoked by the economically weak” (Carr 2008, p. 74).

Furthermore, beneath the veneer of constructivist analysis and potential solutions that such analysis may provide, lies the specter of a powerful resurgence of crude realist ideology. A negative settlement within Europe could lead to a fragmenting EMU in tandem with a significant reduction in the perceived power of a panoply of liberal-style institutions such as the European Commission, the European Parliament, the European Central Bank (ECB), and the International Monetary Fund (IMF); dealing a critical blow to a bedrock of Institutional Liberalism, one espoused by Robert O Keohane: “Collapse is avoided because as Joseph Nye and I wrote in Power and Interdependence, ’a set of networks, norms and institutions, once established, will be difficult either to eradicate or drastically rearrange’” (Keohane 2012, p. 136). Additionally, the likely subsequent global economic downturn would create an effective incubator for a renaissance of realism not only in Europe, as discarded ex-EMU nations are once again left to fend for themselves, but abroad, as a worsened economic climate leads to declining trust and an increased focus on individual interests.

While liberals may point to the importance of economic interdependence as well as an eventual climatic repeat of “the Monnet method” as key factors in the ultimate creation of a political and fiscal union, the chronic competitive divide between European core countries and their peripheral counterparts increases the likelihood that austerity will continue, further fueling the popularity of nascent nationalistic political parties, such as the Golden Dawn in Greece, the 5 Star Movement in Italy, and both the Basque Nationalist Party and EH Bildu in Spain. At some point, one of these parties will assume power setting the stage for a repudiation of the country’s “odious debt”. As Dani Rodrik stated in The Globalization Paradox, “When globalization collides with domestic politics, the smart money bets on politics” (Rodrik 2011, p. 188).

From a realist point of view, Kenneth Waltz’s thoughts on the security of organizations deserve intense introspection. “Organizations have at least two aims: to get something done and to maintain themselves as organizations. Many of their activities are directed toward the second purpose… In making political decisions, the first and most important concern is not to achieve the aims the members of an organization may have but to secure the continuity and health of the organization itself” (Waltz 1979, p. 111 – cf. Diesing 1962, p. 198-204; Downs 1967, p. 262-70). Indeed, to ensure its own survival an institution is likely to “break the rules”.

An ongoing and increasingly appropriate example of this behavior is the ECB and its recent announcement of Outright Monetary Transactions (OMT), a policy that seemed unthinkable only a year ago. This policy ventures into the gray area with regards to monetizing government debt, which is illegal as per Article 123 of the bank’s founding treaty. While Mario Draghi continues to reassure that the bank will under no circumstance begin printing money to buy government debt without strict conditionalities from Eurozone governments, it would be naïve to confidently think that they would simply stand by if the survival of the Eurozone solely depended on committing to cap government bond yields. While there’s a significant probability that, if faced with extinction, the ECB would resort to monetary financing, would Germany, haunted by its past experience with Weimer hyperinflation (due to printing money), acquiesce to such a policy?

In the face of such significant and critical challenges facing the global economy and political order, what can be done? Using a constructivist approach, one must be cognizant of the strengthening trend of nationalistic sentiment and possible development of ensuing norms in periphery countries. It is of great import that these trends are arrested by implementing various targeted, profound, and didactic educational campaigns throughout Europe, most importantly in core countries, so as to encourage continued cooperation (fiscal stimulus?) in exchange for sustained efforts on the part of periphery countries to reconstruct their labor markets. Nations under intense economic hardship need to feel that core countries understand their dilemma and that they are committed to their long-term prosperity.

Demanding continued austerity without some sort of relief risks a breakdown of trust between both poles. Additionally, award-winning Czech journalist Jan Machá?ek, speaking at Columbia’s School of International and Public Affairs on October 4th, advocated educating European citizens about the constitutional structure of Federalism and the fact that it is not centralism. Perhaps these educational policies will lead to the socio-dynamic version of critical mass. All in all, these strategies require immense patience from all parties. An alternative policy may also lie in the realization that we have a tension between national democracy and global markets that is extremely close to its breaking point.

From Dani Rodrik’s The Globalization Paradox: “How do we manage the tension between national democracy and global markets? We have three options. We can restrict democracy in the interest of minimizing international transaction costs, disregarding the economic and social whiplash that the global economy occasionally produces. We can limit globalization, in the hope of building democratic legitimacy at home. Or we can globalize democracy, at the cost of national sovereignty… The menu captures the fundamental political trilemma of the world economy: we cannot have hyperglobalization, democracy, and national self-determination all that once… We cannot fudge the role of nation states and proceed on the assumption that we are witnessing the birth of a global political community… Hyperglobalization cannot be achieved, and we should not pretend that it can” (Rodrik 2011, p. 200). Perhaps it would be more sensible to pare back visions of supranational governance in exchange for increased flexibility within the current political order.

The financial crisis in 2008 has resulted in a protracted period of economic frailty, which has tested the resiliency of today’s global political order. Increased tensions, not only in Europe but also throughout the world, must be diligently analyzed to determine their causes in order to present effective and sustainable solutions to ameliorate their negative effects.

In a theoretical sense, liberalism helps little to solve the current dilemma in Europe. In fact, one could say that the region is experiencing an overdose, as institutions such as the European Parliament, European Commission, IMF, G-8, OECD have thus far failed to resolve the crisis. Today’s circumstances require thinking outside the box and embracing constructivism as a tool to both evaluate the brisk-paced nature of the Eurozone debt crisis as well as produce potential solutions that focus on educating the citizens of Europe on the intricacies of a currency union and constitutional federalism. It would also be wise to ponder the idea of whether a supranational government could exist. Proceeding down a path with a likely dead end would consume precious resources and lead to widespread suffering among every day citizens.

 

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Sat, 10/27/2012 - 20:24 | 2924623 Seize Mars
Seize Mars's picture

This article is pseudo-intellectual.

Let's cut to the chase: "was is the health of the State." The more you consolidate power, the more you get war.

No central banks, no wars.

Know central banks, know wars.

In the words of Ron Paul, it's no mistake that the century of central banking is also the century of total war.

Sat, 10/27/2012 - 20:36 | 2924631 toomanyfakecons...
toomanyfakeconservatives's picture

Mr. JP Morgan himself and others financed and underwrote the destruction of Germany and other empires in WWI. The Lusitania full of passengers and live ammunition and all that jazz. Steel and dollars.

Sat, 10/27/2012 - 21:32 | 2924704 Dick Fitz
Dick Fitz's picture

The author, while pointing out the flaws and hoping that the EU can overcome them, has instead shown the fatal endgame.

A) Greece (or Germany) will leave the euro

B) Catalonia will leave Spain, sparking war

C) inflation will become so pronounced that the EU collapses catastrophically and regional wars break out

D) exogenous events precipitate A, B, and/or C

The supra-national game is over- the fans, the players, and the bookies know it, but they are praying for a Hail Mary before the clock reaches zero. And there's just :08 seconds left on the clock, and the winning team has possession and a 14 point lead.

(who says homos don't know their sports analogies!)

Sun, 10/28/2012 - 04:17 | 2924929 merizobeach
merizobeach's picture

"A negative resolution emanating from the world’s largest economic bloc would cause harmful ripple effects worldwide in global trade flows. More importantly, it could also mark a paradigm shift in international relations"

And here again is summoned the diabolical Smith (Agent, not Adam):

"Do you hear that, Mr. [Europe]?  That is the sound of inevitability; that is the sound of your death."

Sun, 10/28/2012 - 05:41 | 2924964 francis_sawyer
francis_sawyer's picture

Mental masturbation...

Sun, 10/28/2012 - 10:10 | 2925079 new game
new game's picture

1st paragraph and out, like 3 and out, punt.

same garbage journalism - wish/think/ignore reality-history human dilema.

they don't give a fuck about you and that includes you...

Sun, 10/28/2012 - 09:47 | 2925071 Seize Mars
Seize Mars's picture

Ok, quoting Special Agent Smith is good for a +1.

Sun, 10/28/2012 - 04:09 | 2924927 AnAnonymous
AnAnonymous's picture

This article is pseudo-intellectual.
_________________________

This article is written by an 'american' intellectual.

Sun, 10/28/2012 - 04:13 | 2924931 merizobeach
merizobeach's picture

Are we to suppose then that you, as the Chicom resident propagandist, are an example of the pinnacle of Chinese intellectualism?  I could accept that, (you stupid, inbred, government-cock sucker).

Sun, 10/28/2012 - 04:31 | 2924942 CloseToTheEdge
CloseToTheEdge's picture

almost wasted a comment/time on AA

(instead... got a fucking belly laugh off yours, mochas gracias)

 

 

Sun, 10/28/2012 - 12:45 | 2925376 falak pema
falak pema's picture

so by your reckoning the american intellectual is not a pseudo; we are making progress! 

Sun, 10/28/2012 - 07:08 | 2924986 bank guy in Brussels
bank guy in Brussels's picture

Quite right, this article is « pseudo-intellectual » shite ... with a fantasy that intellectual structures are the same as reality ... and no real attempt to meet or illuminate that reality

It is written like a sophomore college end-of-term paper for a professor he is trying to please

Writer uses terms with meanings only clear in a sub-sector of college professor land ...

And then makes the mistake of presenting these 'college professor' categories as if they express some kind of deep reality, instead of being fuzzy college professor shite

Like his talk about 'realism' versus 'constructivism', without explaining these to a general audience (for some politics professors, 'realism' is that power politics is everything, while 'constructivism' is the idea that rules, legal principles and ideals have a strong role in shaping reality)

And then his talk about 'liberalism' which can mean about 20 different things ... in North America it means 'vaguely lefty' in Europe it can mean 'pro-free-market', to others it refers to kinds of political processes ...

We certainly have a farce here ongoing in Europe at the moment but this 'college essay' does not offer anything except pretence and confusion

Sun, 10/28/2012 - 08:01 | 2925002 Ghordius
Ghordius's picture

lol - I agree with you, nevertheless please note that this article is using all correct political terms and has a certain depth.

your comment about liberalism fits the problem: in describing politics you either use the correct and inevitably slightly-up-to-strongly ivory-tower language or you use the current everyday street language which has been tainted by endless partisan propaganda.

think about it: it's absurd that the very word "liberal" means twenty different things in the same language.

and note in the very wikipedia which you distrust so much how many permutations that the concept has. it's a maze. to dazzle and confuse.

compare it with other languages - something I've started to do every time -  and you get a funny ah-ha effect

------

btw note how many use the word "globalist" here in ZH. pls also note that it's use is still US-only and it's still very vague

------

btw, the very concept of an encyclopedia with cross-references was a radical revolutionary idea made to subvert conservative press censorships.

------

btw the big whopper of the article is at the end with the proposal of a global government so that the demands of globalization can be fulfilled without parts of the globe going "fully-retard"-protectionist vs the dominant system that has to inevitably win because it's just so blabla etc

Sun, 10/28/2012 - 20:03 | 2926227 GCT
GCT's picture

No wonder we are in the shape we are in.  This guy needs to get out of the classroom and use the K.I.S.S. method.  To sum it up for me a simpleton in the world of academics he is merely stating get with the program you liberal people! You need to set some norms everyone can live with!  

Screw it this will all end in war anyways!  Soverign countries are going to adhere to whose norm?  Germany's, Spain's, USA's, whose norm are we now going to follow as we head into the gates of hell?

Sun, 10/28/2012 - 08:17 | 2925006 Zadok
Zadok's picture

Lost me at the first part of the first line "Since the 2008 financial crisis the foundations of the global economy have been in repair,"

Translation: Devaluing people in order to loot and pillage wealth with the end result being war and destruction.  All efforts just buy time to this end while being sold as helping the doomed.  

Good luck all, it is likely to be quite rough for most of us, trolls included.  

Sun, 10/28/2012 - 21:58 | 2926493 MeBizarro
MeBizarro's picture

Yeah there weren't wars between tribes or city-states or kingdoms before central banks.

Sun, 10/28/2012 - 22:34 | 2926651 andyupnorth
andyupnorth's picture

No central banks, no wars.

Know central banks, know wars.

In the words of Ron Paul, it's no mistake that the century of central banking is also the century of total war.

 

Beautiful!

Sat, 10/27/2012 - 20:27 | 2924627 Yen Cross
Yen Cross's picture

236 years ago , Our fore fathers gave their lives for our freedom.  FUCK YOU England. 2012-1776=236

  Fuck you Europe!

Sat, 10/27/2012 - 20:41 | 2924641 toomanyfakecons...
toomanyfakeconservatives's picture

We have little to learn from those sad, defeated nations. Beware of foreign influence.

Sat, 10/27/2012 - 20:58 | 2924662 john39
john39's picture

too late. the us government is over run with dual nationals.

Sat, 10/27/2012 - 21:46 | 2924723 Hulk
Hulk's picture

YC. you have been drinking again. haven't you !?!?!?

Sun, 10/28/2012 - 06:57 | 2924981 falak pema
falak pema's picture

Bad day at the Forex. Four score and sixty minutes ago...

Sun, 10/28/2012 - 07:14 | 2924987 bank guy in Brussels
bank guy in Brussels's picture

Re « 236 years ago », significant date, no democracy or republic in human history has lasted over 240 years, dating back to Greece and Rome

So it is time for the US to be done and over, and it seems full dictatorship and tyranny is arriving there right on schedule

Tho there is a good argument that most of the world's trouble spots trace back to the British (the British setting up the Zionists in Israel, the extremist barbaric Saudis in Arabia, etc..)

But unfortunately, one of those global oppressive trouble-making countries, tracing back to British influence, is America

Sun, 10/28/2012 - 07:47 | 2924997 falak pema
falak pema's picture

well the UK became a consitutional monarchy since 1689 bill of rights...just saying on a nominally factual basis. 

Being a democracy to its own people and a colonial, thus repressive, empire is nothing new; either for hegemonial Athens or Senatorial Rome.

Sat, 10/27/2012 - 20:28 | 2924628 disabledvet
disabledvet's picture

QEternity. Outright Monetary Purloining. Kamikazebonds. I mean it really is fun to make fun of these monetary clowns/er...authorities "making this stuff up" as they go along. Still, the purpose is the same and hence "you don't want to touch Government debt" period. USA Inc is dominating these two regions unlike anything ever before. The only question that needs answering is "what will the Federal Government's response look like...

Sat, 10/27/2012 - 20:44 | 2924645 Deathrips
Deathrips's picture

Saying its Europes fault is kinda like the European people writhing in pain and kicking you in the face as you writhe in pain (soon to kick them in the face). Its pretty late hour in this "game".

Just as the squid sucks life loving red blood, making zombies outa black ink in America...its not all "Europes" fault either. The fault is in allowing this bull to continue.

I wish we could just round em up and banish them to some desert island....

 

Fuckers.

Sun, 10/28/2012 - 10:36 | 2925118 The Navigator
The Navigator's picture

Why waste a perfectly good desert isle on those fuckers when we could put 'em on a rocket on a one-way mission to the Orion Nebula.

On the other hand, if there was a video feed, I'd pay the PPV to watch them cannibalize each other.

Sat, 10/27/2012 - 20:53 | 2924654 A Lunatic
A Lunatic's picture

Uncle.

Sun, 10/28/2012 - 09:29 | 2925055 shovelhead
shovelhead's picture

I never did trust that Illya Kuryakin.

Sat, 10/27/2012 - 20:57 | 2924661 Cabreado
Cabreado's picture

In periods of extreme chaos, hiding behind "isms" comes naturally -- and ain't it interesting that it always takes so many words...

Damn the "liberal" crap, and pay attention to antisocial minds who know no "theory."

The gibberish is a source of laughter for them.

 

Sat, 10/27/2012 - 20:58 | 2924663 DogSlime
DogSlime's picture

"Since the 2008 financial crisis the foundations of the global economy have been in repair,..."

I haven't seen anything being repaired.  I haven't seen any attempts at repair.  The elite are trying to consolidate their positions before the structure collapses.  There are no attempts at fixing it - only at slowing the rate of collapse so that they can ride the gravy train for a little longer and strip even more liberty from the ordinary person.

To suggest that things are "in repair" is highly disingenous.  Deliberately so?

Sat, 10/27/2012 - 21:03 | 2924669 Yen Cross
Yen Cross's picture

All I see is gas prices x2 and food prices x2 , and a whole shit load of people on SNAP cards! 

  It's been 4 years, and blame it on Bush is getting really old!

Sun, 10/28/2012 - 02:01 | 2924875 Conman
Conman's picture

Oh god. Hey if your brother cuts off your arm in freak chainsaw accident, is he any less responsible after 4 years? 8 years? Sure you figure out different ways to jerk off but your arms(buy buy buy consumer economy) is still gone.

Sun, 10/28/2012 - 02:39 | 2924895 AynRandFan
AynRandFan's picture

In other words, it's Bush's fault forever.  Logic works better with premises that make sense.

Sun, 10/28/2012 - 03:17 | 2924912 Incubus
Incubus's picture

Shit, so if if I rape some people, I'll be held less responsible for it as time goes by, because there's a new rapist out and about?

Sun, 10/28/2012 - 10:56 | 2925151 Ballin D
Ballin D's picture

If you brother cut your arm off 4 years ago and you decide to cut your other arm off now, you're still fucking stupid.

Sun, 10/28/2012 - 04:21 | 2924937 merizobeach
merizobeach's picture

There's plenty of blame to round; no need to deny Bush his fat share.

Sat, 10/27/2012 - 21:01 | 2924668 news printer
news printer's picture
Satellite photos suggest air strike on Sudan Arms Plant

Satellite is wonderful thing; one can see bombed site before and after

Sun, 10/28/2012 - 07:42 | 2924996 bank guy in Brussels
bank guy in Brussels's picture

That was covered on Al Jazeera already several days ago ... indeed highly significant, black-swan-ish

Israeli warplanes apparently bombing Khartoum, Sudan, and killing people ...

http://www.aljazeera.com/news/africa/2012/10/20121024142531802810.html

Interesting perspective on this from a wild, often-scorned Irish website ... suggesting the new war in the Middle East will be Egypt on the territory of Libya, Sudan, Ethiopia ...

The Egypt-Libya war idea is especially intriguing, as Libya is half-sunk in chaos after the Nato 'humanitarian bombing' that killed tens of thousands

Egypt is starving with tens of millions of people, and no money or oil ... next-door Libya has very few people, lots of oil to sell ... and Egypt and Libya were united before in the 'United Arab Republic'

Egypt trying to take over Libya to feed its starving people using the oil revenue money, does make sense

The offbeat 'conspiracy site' article, 'Egypt Prepares for Total War After Israeli Air Strike on Sudan'

http://www.whatdoesitmean.com/index1619.htm

Sat, 10/27/2012 - 21:03 | 2924670 Atomizer
Atomizer's picture

 

 

  • When labor escalates to become noncompetitive, jobs are outsourced.
  • When jobs are outsourced, employment levels rise.
  • When we outsourced those jobs to a country who loans us monies, compromises are made to benefit the financial aid donor.
  • When our economy begins to stop spending, a global rippling effect begins.
  • A socially engineering event will occur under a body of individuals who will tell new lies.
  • These lies will script language of financial stability and the necessity for continuity amongst a national security endowment.

 

We still have other current events, this is another upcoming debacle. Be aware!  

Q1 2013 or sooner.

Sat, 10/27/2012 - 21:06 | 2924675 Yen Cross
Yen Cross's picture

Let the Russians and Chinese sort "Western Europe" out.  Fucking thankless people that allow history to repeat!

Sun, 10/28/2012 - 02:37 | 2924894 AynRandFan
AynRandFan's picture

Ditto.  Wasn't long ago we were supposed to be embarrassed that we weren't more like Europe.  It may be the birthplace of western civilization, but it's been moving backward ever since.  From democracy to fascism to collectivism.  Punctuated by anarchic warfare of course.

Sun, 10/28/2012 - 04:26 | 2924938 merizobeach
merizobeach's picture

"it's been moving backward ever since"

I don't mean to nitpick, but I think they're still moving "forward" (toward collapse and muppeteered fascism), and they're still a few steps ahead of America (at least in the collapse; America seems to be still a pioneer in advancing modern fascism).

Sun, 10/28/2012 - 15:56 | 2925734 WeekendAtBernankes
WeekendAtBernankes's picture

It takes longer in America because even today the sheeple are much more distrustful of the central government than typical Europlebs.  The American politicians have learned to eke out their agenda over a longer time frame.  America also has a stronger institutional resistance to authoritarianism which has taken longer to dismantle.  Most of Europe is much more new to the whole representative government thing and thus have lower hurdles for their rulers to overcome.

Sun, 10/28/2012 - 10:22 | 2925091 new game
new game's picture

yen, think in simiplest terms; too many atoms in a a confined vessal; things go boom.

same everywhere else humans concetrate, but now we are talking 7 fucking billion atoms.

comonly called "hot spots", which has many, many meanings-hehe...

Sat, 10/27/2012 - 21:16 | 2924683 Atomizer
Atomizer's picture

Good night ZHers. Enjoy your weekend.

Sat, 10/27/2012 - 21:25 | 2924696 Yen Cross
Yen Cross's picture

 Good on ya. Me to.

Sat, 10/27/2012 - 21:47 | 2924724 erg
erg's picture

Good night Trav and Robo and Gully...

Sat, 10/27/2012 - 21:31 | 2924702 Terminus C
Terminus C's picture

This guys doesn't even know what liberal and liberalism means.

He needs to read "Wealth of Nations" by Adam Smith, then he can talk about "liberal institutions" like the IMF et al. 

What a joke.

Sat, 10/27/2012 - 22:09 | 2924746 FreeMktFisherMN
FreeMktFisherMN's picture

Right on, man. 

 

I'm in an intro to int'l relations class right now, and have read (and been tested) on all of this constructivist, realist, 'liberal' ideology paradigmatic discussion. For the essay on my recent midterm, I wrote how what these guys define to be 'liberalism' is actually social welfarism and explained that NAFTA and all this globalist stuff is not free trade. Basically it comes down to are people allowed to voluntarily interact and trade with others. That is true liberalism. These political scientists will try to say how the state acts as a 'rational' actor as though it is omniscient about its citizens demands, when really, if anything, it is subservient to the tyrannizing majority. 

 

And the big thing is of course war and peace and the outcomes like with the Cold War and WWI, in these IR discussions, and the realists' fundamental concern is the 'state of anarchy', and they follow into the Rothschilds' and the elites' plans because they call for a global order with some hegemony or bipolarized world in which there is 'int'l law and order and peace.' 

 

It's all just a bunch of academic theorizing done by evil people and/or useful idiots for the globalists who want to fear people into giving up more liberty, and eventually embrace world government as the savior. 

 

The Constitution authorizes essentially minarchism, which is about minding one's own business. The government now, though, runs the show, though, and it's sad that all these students will continue to buy into these poli. sci profs and economists' theories/propaganda which advocate statism. 

There is a distinction between neo-liberalism and classical liberalism, and these 'political scientists' don't want people knowing the distinction. Britain did a lot better when it went more towards classical liberalism and not towards slash and burn, exploit, and move on imperial mercantilism. Trade by definition is beneficial when done voluntarily. 

 

As a side note, the essay I wrote on the midterm was in response to the topic which was how 'economic doctrine and conflict are related.' Went on about how 'liberalism' as defined by academia and statists is actually state-controlled capitalism/corporatism/fascism, and this pax Americana is a farce because we were the only game in town and abused the world reserve currency status (obviously not that I wanted that in the first place). I'll probably get marked down for not addressing the discussed material that in many cases amounts to bread and circuses. I actually think I said, while 'realists' are paranoid about 'anarchy', i.e., no world government dictating order and law, I embrace anarcho-capitalist/minarchist/voluntaryist systems. I'll see what the TA thinks, but I'm sure I'll have to explain to him how I actually think for myself about these matters and know that it comes down to whether things are done voluntarily or done via force. 

Sat, 10/27/2012 - 23:21 | 2924799 Dick Fitz
Dick Fitz's picture

Good luck. Realize that an "F" on the test is a badge of honor, and send the Good Commie Professor a copy of "Man, The Economy and State" as a thank you.

Sat, 10/27/2012 - 23:34 | 2924807 FreeMktFisherMN
FreeMktFisherMN's picture

Actually, come to think of it, the prof doesn't even grade these things. That has been delegated to the faithful TA, not that there is a difference. Believe me, in my time here there have been times I've gone with my free market gut knowing darn well it would hurt my GPA. Have to stay ethical within my convictions for the free market and family, Christian values. 

 

The GPA is a feedback mechanism so people feel like they're doing something 'right' in regurgitating what the prof says. Individuality is frowned upon, and multicultural PC is favored. 

Sat, 10/27/2012 - 23:43 | 2924815 FreeMktFisherMN
FreeMktFisherMN's picture

It'll be interesting to see the grade/comments I get for it. I seriously just went off on a rant! Opening attention getter was the quote 'if goods don't cross borders soldiers will' and I just went from there. These things they want us to discuss are sheer bread and circuses of the hegelian dialectic, divide and conquer method. I'm a junior here majoring in econ and honestly would take a decent paying 'professional' job if I could get one. One guy I talked to about jobs in commodity trading and wealth mgmt, which is the kind of area I'm interested in, as I want to genuinely help folks preserve wealth/purchasing power and hedge against the Fed, goes with the usual 'well that piece of paper from your institution is worth a lot.' Same old same old. I told him, I get that, and all the same a degree is better than none as far as getting in the door, but I have basically learned all I know that matters from my own following of the markets and through things like ZH. Precious metals have not been discussed once in any of my econ. classes.

 

I would say if I honestly were offered a 45k or so job working in commodities/hedging, or wealth mgmt with an 'ethical' company that knew about PMs and whatnot, I would take it. Right now. I think this thing is going to implode one way or another relatively soon and would rather get a jump on the real world of business and add to my stack with income. Going galt eventually!

Sun, 10/28/2012 - 01:40 | 2924863 adr
adr's picture

I can't tell you how many comments were added to my papers exclaiming how dead wrong I was and how I didn't understand the material.

Thing is, I did the work so I got credit for it. I did have one professor who found my work to be of great value. I essentially laid out the coming dotcom boom and crash in 1996. The title was "How Windows Will Destroy the World". Of course as a 17 year old college student I didn't know I could profit off my thoughts, nor did I have any money to invest anyway. Point is the professor thought it was great and asked if he could use some of the material for one of his books.

Keep on doing what you're doing. I ended up taking a job offer at Lucent in June 2000 for $55k. That didn't turn out so well a few months later.

Sun, 10/28/2012 - 02:40 | 2924893 FreeMktFisherMN
FreeMktFisherMN's picture

Interesting story, adr. I don't have any 'ground-breaking theories', per se, although in the academia environs such Austrian-grounded thoughts probably are viewed as such. 

 

I've posted on here before that I have to do something I can live with. I'm a junior who goes to a 'good' school in Chicagoland, with a decent enough GPA and I have actually already applied to a bunch of commodities firms and trader-type positions, noting that, while internship seeking is the initial aim, I also would consider foregoing getting my 'degree' (the piece of actual paper) if the right opportunity came around as far as a job. And that honestly is where I'm at. Another year and a half in the bread and circus Keynesian propaganda environs, or a year and a half learning useful skills + earning income that can increase my stack + get a head start and learn useful things and not to mention that I think big time implosion of the whole works is not too far off, and therefore need to get going on prepping. Actually, I'm laughing inside just thinking about that. I'm dead serious about this and needing to get a gun (not that I can have one here in Cook County, pretty much, much less at the house I'm living in) and increasing my PM stack and food and water filters, etc. And while here I am with this mindset, my peers are just focused on snagging an internship to i-banks and 'consulting', too, as though people really are going to to go for the advice of 21 year olds, and are completely oblivious to something like the Federal Reserve, save for maybe that lesson in macro econ on how they expand money supply via whatever the reserve requirement is (10% as of now) at financial institutions. But that's just the normal course of things, and it wasn't like private financiers called the Rothschilds created it secretly at this place called Jekyll Island, and that it would be used as a usurious means to confiscating wealth and creating wars.<sarc

 

At the end of the day just knowing how free markets really work/how bad a situation this is with the indebtedness of all these entities, from individual to sovereigns, will be critical going forward, no doubt. But in the meantime, I have to earn a living, i.e., actually monetise my insights/skills, and so I've kind of narrowed it down to working in commodities trading/hedging for a legit company, and hopefully more so something more 'wealth mgmt.' where I can 'professionally' persuade people to protect their wealth from Bernanke's ctrl + p proclivity with PMs, land, and real things of value in general.

I literally have a whole different mindset. And I'm going to have to get Excel down, it sure seems like, and I do have a decent foundation from my own inquiry about the technical analysis side of things, and more importantly, how in the PPT matrix, these things oftentimes are totally useless as 'markets' don't really exist much anymore (or at least they are like beachballs pushed under water further by the TBTFs but gaining more potential energy). 

I don't know if an employer is going to care much for my mindset, though, and my GPA isn't 'epic' either, not that I could care any less than I do now, as I know I have put forth integrity at least with my own answers to exams, papers, etc. May wind up self-employed entrepreneur, or looking to do sales for a PM company as I know the reasons behind the metals and maybe would be good at that and at least know I'm not selling snakeoil, and I am very well-versed in the intricacies of these commodities, like Ag's industrial/medical play in addition to inflation hedge, or who knows. Maybe like the job I had this summer of being self-employed/freelance, finding random yard work jobs and painting in the Twin Cities and earning decent cash, learning how negotiations work/importance of reputation, and utilizing leverage in buying and selling electronics like I did, too, this summer. It's hard to say. Maybe I'll have to in the meantime be a bit of a day trader and play say UVXY when there are actual moments of price discovery in these markets! (although, on that point, I would say that 'shorting' the market pretty quick here will mean not actually betting it goes down  in nominal terms but rather down priced in real money, and therefore the array of TZA, FAZ, etc., while obviously risky as far as counteryparty risk/fox guarding the hen house characteristics, will also be risky as the market goes up flush with liquidity as Main and Wall St.s diverge more and more). Stream of consciousness there, but that's kind of the things I contemplate. In general just want to genuinely help people because there needs to be more urgency and people need to wake up. 

Sun, 10/28/2012 - 04:38 | 2924944 merizobeach
merizobeach's picture

You're rather verbose.  Good luck with your ethical convictions going forward.  Understand, since you make such a big point about being ethical, that if you pay taxes someday, you would be a material supporter of all the wars and would be complicit in all the other unethical behaviors of your government.  If your convictions truly matter to you, choose carefully or languish in hypocrisy.

PS...watch Zeitgeist.  Your "Christian" values are plagarized, and your religion is founded on lies and physical impossibilities.  There is no excuse for a modern, educated person to believe in organized religion.

Sun, 10/28/2012 - 11:37 | 2925230 FreeMktFisherMN
FreeMktFisherMN's picture

God so loved the world that He gave His only begotten Son so that man may not perish, but have everlasting life. We are all sinners, and the wages of sin is death. Only Christ's precious blood shed atones for our transgressions, and indeed we are saved the moment we believe in Him.

 

There is a lot of 'Christianity' out there that is not at all adhering to Biblical theology and the values of Christ. The Catholic church is full of false doctrines, and it along with other churches add works when faith in Christ alone is all that is needed to go to Heaven. Believing in works is saying that Christ's death was not sufficient to cover our transgressions, and that is damnable and people need to head for the hills if they hear someone telling them about works as well as things like purgatory and Marianic worship. 

 

 

Mon, 10/29/2012 - 17:28 | 2929061 merizobeach
merizobeach's picture

Your theism is more offensive than you may ever imagine or understand.

Mon, 10/29/2012 - 17:53 | 2929108 knukles
knukles's picture

Sola Fida...
The basis upon which Protestantism was founded.
Which was economic, not theologically motivated.
For the peasantry tired of tithing to the church (Rome) in order to secure a place in heaven (or the use of temporal facilities such as local mills, etc., owned/monopolized by the church) while paying taxes to their kings which were otherwise extracted at the pointed end of a sword or upon a pyre of coals.
Neither being of but temporal extant.

The traditional consideration of "Faith Without Works is Dead" was perverted by the church during a period when few could read and even then religious treaties were illuminated in Latin so as to be illegible to those not so schooled of who could read in the native language, in a highly successful propaganda effort to ensure the peasantry tithed so as to access the Pearly gates.  You see, the Works was sermonized as enriching the church, itself acting as God's representative here upon Earth.

Which all seems to point that while man created God and God created man, man's creation of the social structure of worship was expanded past salvation and spirituality by Bad People in an effort to accumulate the Temporal; land, power, money, property and prestige, at the expense of that originally proscribed, a spiritual communion with one's Higher Power, whatever that may be.

And yet, every man has a higher power.  Some find an inner peace through through Nature's God as in a Spirit of the Universe (Oft akin to Native American Indian, etc.), some a traditional Creator (Theological First Cause) others a permanence of Nature herself (Cosmological First Cause) and even in may cases where one refutes the existence of any Higher Power, thus defaulting to One's Very Own Ego. 

Some even believe it to be the State.

Everyone has a Higher Power.

Sun, 10/28/2012 - 12:02 | 2925297 Uncle Remus
Uncle Remus's picture

"There is no excuse for a modern, educated person to believe in organized religion."

 

Everybody needs a hobby...

Sun, 10/28/2012 - 02:33 | 2924892 AynRandFan
AynRandFan's picture

Good luck keeping your sanity in the corporate world.  It's no place for independent, creative thinkers.  Ass kissing works a lot better.

Sun, 10/28/2012 - 00:58 | 2924849 mercenaryomics
mercenaryomics's picture

As someone who, unfortunately, got an MA in IR theory (foucs in IPE) and (later) an MS in quant econ:

Yeah, IR theory is all bullshit halfassed analysis.  They like to overuse and misuse big economic and finance terms to grossly simplify the already grossly oversimplified reality of economics.  My concentration in IPE was essentially a curriculum proselytizing the magical wealth-creation of dismantling Bretton Woods, having class-wide globalizationgasms, and confining all economic analysis to a phallus measuring contest between the “two schools of economic thought,” of course being neoclassical and Keynesian. Of course after 2008 the "Keynesians" “won,” but don’t ask me how or why or what was won.  Most with a finance or economics background would find this curriculum laughable, alas I was naive. 

I wonder sometimes if maybe the academics/politics/corporations/repeat carousel was getting a bit too crowded, and so the academics created the new disciplines of International Relations/International Studies where they could then get paid as masters of a whole new discipline yet only teach recycled and watered-down theories of political science and economics. 

Or maybe IR/IS isn’t all that bad and I’m just pmsing from recently looking at my student loan balances.  

Anyway don't be suprised if you are penalized as a nonconformist, college afterall is no place for dissenters.  

Sun, 10/28/2012 - 02:29 | 2924889 AynRandFan
AynRandFan's picture

@FreeMktFishMN

Funny how the best run societies don't try to finesse every problem, they tackle things head on.  German culture promotes problem solving, while most countries come up with words to redefine problems into invisibility.  We end up with absurdities like Krugman's view of economics and social welfare movements that miss entirely the idea of promoting wealth.  Gotta have a giant BS filter to learn anything.

Enjoyed your comment.

Sun, 10/28/2012 - 07:52 | 2925000 BruntFCA
BruntFCA's picture

Notice the guy says "we can reduce democracy", we can this and that. Who is this "we" he invokes? It's certainly not "we the people". How exactly would the we of the people reduce their own rights? Is democratic authority not supposed to come from the people in the first place. His we is clearly himself and his fellow technoractic and pseudo intellecutal twerps/. He is obviously ignorant of just how oxymoronic his statments are, but then thats not hard for a moron.

 

Why don't you post your essay somehwere, it sounds quite interesing, I'd like to read it. Cheers.

Sun, 10/28/2012 - 04:13 | 2924930 AnAnonymous
AnAnonymous's picture

This guys doesn't even know what liberal and liberalism means.

He needs to read "Wealth of Nations" by Adam Smith, then he can talk about "liberal institutions" like the IMF et al.

What a joke.
_________________

He probably knows and probably read. But 'americans' are that type to deny everything that if a situation that requires one million conditions to be, one million conditions but one minor is not, 'americans' consider that situation not to be (hence their fantasy over real this, real that)

Smithian economics are the core of 'american' economics. Smithian economics have been applied.

Sun, 10/28/2012 - 06:35 | 2924974 TheFourthStooge-ing
TheFourthStooge-ing's picture

One million conditions to be, or one million conditons but one minor is not - is not to be: that is the question:
Whether 'tis nobler on the roadside to suffer
The stinks and sorrows of fully soiled pantaloons,
Or to take a crap along a street of hovels,
And thus excreting avoid them? To crap: to excrete;
Much more; and by excrete to say we end
The bowel-ache and the thousand indigestive shocks
That dog flesh in spicy ginger sauce leads to, 'tis a Chinese citizenism
Devoutly to be wish'd. To crap, to poop;
To poop: perchance in public view: ay, there's the road;
For from that shameless crap what stench may come
When we have shuffled off this fecal coil?

Sun, 10/28/2012 - 14:45 | 2925574 Poor Grogman
Poor Grogman's picture

Wealth of nations eh?

Tibetan citizen used to have a nation.
Now chinese citizen has Tibetan nation plus Tibetan wealth.

Thus says An annoying mouse....

Sat, 10/27/2012 - 21:36 | 2924713 erg
erg's picture

Our nostrils are replete with the new world odor.

Sat, 10/27/2012 - 22:03 | 2924742 Sean7k
Sean7k's picture

An apologist attempting to create an argument in favor of State guidance, austerity, brainwashing through education couched in a can't we all get along meme through the intellectual bullshit of references to articles written to obfuscate the obvious designs of the central banking terrorists. 

I never realized a single article could make me despise the word constructivism. If the author would pull his head out of his ass and look around, he might see that all the world needs is to be left alone. End legal tender laws. We'll take care of the rest. Let the central bankers take their fiat crap and sell it on mars. 

You cannot "solve" fascist banker tyranny, you can only let it die (passive) or kill it (reactionary). The best way to figure it out would be to ask said bankers for their opinion, as they are hanging from a rope. 

Sun, 10/28/2012 - 04:15 | 2924932 AnAnonymous
AnAnonymous's picture

Central banks are only instruments of 'americans'.

Sat, 10/27/2012 - 22:10 | 2924748 q99x2
q99x2's picture

The bigger Gov'ts get the faster the explode. It is interesting to think that a person alive today could have lived to see hundreds and hundreds of Governments fail in their lifetime. Governments suck big time.

Sat, 10/27/2012 - 22:40 | 2924765 Bansters-in-my-...
Bansters-in-my- feces's picture

What can I say......

Fuck Hillary Clinton.....

Duck Hillary.....shots being fired at your helicopter........bitch.

Sat, 10/27/2012 - 22:47 | 2924774 Theos
Theos's picture

Needs more bold text

Sun, 10/28/2012 - 00:08 | 2924829 mkhs
mkhs's picture

And cowbell!

Sun, 10/28/2012 - 01:57 | 2924871 Zgangsta
Zgangsta's picture

nWo 4 life!

Sun, 10/28/2012 - 05:06 | 2924950 Catullus
Catullus's picture

I can honestly say that my International Political Economy degree is absolutely worthless.

“The economic expert, dominated in the main by laissez-faire doctrine, considers the hypothetical economic interest of the world as a whole, and is content to assume that this is identical with the interests of each individual country. The politician pursues the concrete interest of his country, and assumes (if he makes any assumptions at all) that the interest of the world as a whole is identical with it… Laissez-faire, in international relations as in those between labor and capital, is the paradise of the economically strong. State control, whether in the form of protective legislation or of protective tariffs, is the weapon of self-defense invoked by the economically weak” (Carr 2008, p. 74).

The above statement is so naive that it pushes the bounds of "realism".  A politician doesn't have the interest of the his country in mind, especially in liberal democracies. They have their own interests in mind.  And for the most part, politicians don't make these decisions -- unelected bureaucrats do. A bureaucrat is never content with laissez-faire because the entire life a bureaucrat is to continuously expand the power and scope of their particular agency. State control is not the weapon of the economically weak, it is the end unto itself.

Sun, 10/28/2012 - 12:50 | 2925386 mercenaryomics
mercenaryomics's picture

"I can honestly say that my International Political Economy degree is absolutely worthless."

Mine too! 

Sun, 10/28/2012 - 05:16 | 2924955 Catullus
Catullus's picture

The best academic paper I ever read on anarchy and global governance and social contract theory:

http://citation.allacademic.com/meta/p_mla_apa_research_citation/1/5/3/0...

Traditional social contract theory holds that the origin and purpose of government is to escape the state of nature and its perceived deficiencies. The state of nature is conceived of as being anarchic, meaning that there is no monopolistic common authority to provide security, determine the law, and adjudicate conflicting claims and secure compliance. In this paper I argue that this attempt at justifying the state with social contract theory ultimately fails. We can never really get out of anarchy. The formation of states does not eliminate anarchy but rather transforms natural anarchy into a number of other types, the most well-known and widely recognized of which is international anarchy (i.e., the anarchic relationship that exists between states in the international system). Indeed, as will be seen, even the formation of a World-State will not eliminate anarchy. In this paper I will identify and discuss four major categories of anarchy, determined in large part by the structure of the power and authority relationships within them: Natural Anarchy, Hobbesian-State Anarchy, World-State Anarchy, and Constitutional Anarchy. In light of this, the fundamental issue ceases to be whether the State or anarchy is to be preferred, but rather becomes which type of anarchy is to be preferred.

Sun, 10/28/2012 - 07:03 | 2924984 Peterus
Peterus's picture

an·ar·chy  noun 
1. a state of society without government or law. 
2. political and social disorder due to the absence of governmental control: The death of the king was followed by a year of anarchy. Synonyms: lawlessness, disruption, turmoil. 
3. anarchism ( def. 1 ) . 
4. lack of obedience to an authority; insubordination: the anarchy of his rebellious teenage years. 
5. confusion and disorder: Intellectual and moral anarchy followed his loss of faith. It was impossible to find the book I was looking for in the anarchy of his bookshelves. Synonyms: chaos, disruption, turbulence; license; disorganization, disintegration.

Which one are you talking about? I mean what do you even define as anarchy, let alone the content?

Sun, 10/28/2012 - 10:36 | 2925082 Catullus
Catullus's picture

The author clarifies that on page 3.

But I like the easy definition: lack of a state.  An-archy.  From the Greek.

Sun, 10/28/2012 - 06:04 | 2924962 NuYawkFrankie
NuYawkFrankie's picture

Classic Globalist-Agenda Pushing masquerading as Reasonableness Sweetness & Light...

 

Sounds like the sort of shifty, hand-wringing, mealy-mouthed, evasive, disingenuous  claptrap you'd expect to find in the likes of the WSJ, FT, Economist and the other banksta-mouthpiece rags.

Sun, 10/28/2012 - 06:19 | 2924969 tradewithdave
tradewithdave's picture

Your false dichotomy of choosing between the Fatherland and Supranationaland is half right.  These would be the only two options if the plan was to move forward with traditional forms of fiat money, such as the U. S. dollar as a reserve currency, wherein the currency serves a simultaneous dual function as both a store of wealth and a means of exchange.  You make it sound as if the world would be willing to function without VISA bank cards, Iphones, AT&T mobile phone plans, imported women's handbags, champagne and new Audis in exchange for genuine sovereignty.  Thankfully for LVMH, Michael Kors and Michelin, this is not where the rubber will meet the road although as the molotov cocktail throwing hoodies will remain outnumbered by the Absolut cocktail party throwing members of the Lagarde list and the healthy employment opportunities within the armed public and private security industry segments.  

Rather than honor the founding fathers and fallen soldiers who fought and died under the flags of many nations, there's a much more convenient plan that satisfies both the need for novelty parades down main street, a Greek fisherman's cap for every grandpa all the while allowing for the suprastate to remain intact.  You simply divorce the wealth component of currencies from the component that satisfies the double coincidence of needs and wants.  This can be executed on via a couple of different solutions.

First you can spread the wealth around sufficiently that the electorate is willing to accept a New Deal 2.0.  You simply offer up $3,000 per voter for a new thing-a-majig or maybe something like Steve Keen's modern mortgage jubilee and you get them to sign up.  This throws a blanket over the Simpson-Bowles problem and you're good to go via a debt-for-equity swap where the sovereignty of that nation has been sold and the average man on the street doesn't even know what hit him.

The other option, for countries where their monetary sovereignty has already been brought under the umbrella of central planning and its the fiscal discipline that remains yet to be harnessed, is to divide the wealth component from the convenience component of money by simply upstreaming their gold in asset conveyance and then reset the price, say at something like Jim Sinclair's $12,400.  But keep in mind that there's always a possibility of applying a double standard to gold.  It can be worth one price when held by a central bank (in this case a Supranational one) and another price when held by you. 

How could gold be worth two prices?  Well, if it isn't then why does Germany need to hold its gold overseas in an effort to access its liquidity if gold is a tier 1 asset?  That's simple.  Basel III is 1/10th of the law while possession is 9/10ths.  The plan is to remove the need for fractional reserves on the money that serves the double coincidence of wants while simultaneously imposing a new gold-based and fractionally reserved, yet nearly inaccessible, form of global "wealth" money.  This eliminates the need for intermediary systems such as the Federal Reserve because the risk of SIFI bank runs will be mitigated while paving the way for Suprabank and a mobile phone in every pocket.

www.tradewithdave.com

 

Sun, 10/28/2012 - 07:01 | 2924982 falak pema
falak pema's picture

any globalisation that is pushed by a chinamen worth 2.5 billion and an american worth 20 billion is suspect. 

Sun, 10/28/2012 - 07:05 | 2924985 Ghordius
Ghordius's picture

"It would also be wise to ponder the idea of whether a supranational government could exist." OK, let's ponder. How? This would mean that the elites steering the current global commercial super-empire would have either to give up some power and some leverage (either military or legal or monetary) or that they take the whole world over.

Highly unlikely bordering the impossible but nevertheless as an idea it's fit to scare many people, and so it's used in propaganda.

Sun, 10/28/2012 - 15:06 | 2925607 Brit_Abroad
Brit_Abroad's picture

What a stinking pile of crap that was.

Damn, wasted 10 mins of my precious time

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