Saturday, December 3, 2011

Edomite Apology: Do-Over!

Perhaps there is a Cosmic Yovel Year?

With the Mayan 2012 theory kicking in, perhaps there is a Universal Shabbat, where all cycles "start over."

In Banking there is a new trend flying about: The Banking Yovel (Jubilee).

It seems that not only in the Torah is there a need for Yovel, but in the Wisdom of the Edomite World as well they are seeing Torah reality.

Certain things in Torah just have to be for a society to work: No Debt/Interest, Yovel, Tzeddaka, Myser - Trumah, etc.

Society just doesn't work without Torah principles...they are trying to make the World work by Man, and are now seeing God must be programmed into the psyche.

This is what Joseph was doing in Egypt, to try to weather the storm there, and to provide conditions for a thriving Middle Class. Without Middle Class, society falls..and the Torah governs davka from a thriving Middle Class...which only Torah can maintain.

Perhaps Yovel, Shabbos, Charity, etc. is all that can save the World at this Torah terms thats called Moshiach: to realize Torah works in the World, and not the opposite, as being archaic.

Science is seeing Kabalah all ove rthe place, now Banking is seeing Torah Nigla? Next stop: Finding God in the World - Politics?

We have often discussed the temporary and tenuous nature of any and all government-suggested solutions so far to the European crisis on the basis that the 'model' is broken. Following the decision to go for PSI, and the possibility of a sovereign leaving the Euro-zone (Greek referendum ultimatum), money is no longer fungible in and across European banks (deposits) and sovereigns as it seeks the stability of a narrower and narrower core. Arnaud Mares, of Morgan Stanley, who wrote the initial and definitive Greek story long before most others, brings up this very point; questioning the fungibility of Greek Euro deposits with French Euro deposits, for example, and interpreting the situation as a 'run on banks and governments'. His view that without a clear path to a fiscal lender of last resort - or a true fiscal federalism across a united Europe - which ensures solvent governments will never go illiquid, then the December 9th decisions mark a bifurcation point of critical import.

If governments choose to engage on the route to fiscal federalism, we believe that this does not mark the end of the crisis. It could, however, mark the beginning of the end of the crisis, as it would be a decisive first step towards stabilisation and a European federation. The alternative could well be the beginning of the end for the European confederation.
Europe has to choose between debt assumption (enhanced federal control of national budgets accompanied by centralised funding of governments) "and a debt jubilee (wide-scale debt repudiation)", with all the social, economic and political consequences this entails. Mares' framework for considering the words and deeds of December 9th is critical, though complex, reading to comprehend the tipping point we are at.

On Europe's Hamiltonian Moment:

One year ago, we wrote that Europe was heading fast towards a crossroads where it would have to choose between "a debt jubilee (wide-scale debt repudiation)" and debt assumption (a form of fiscal federalism with enhanced control over national budgets accompanied by centralised funding of governments). We think this bifurcation point has now been reached.

By December 9, heads of state and government ought to outline how they intend to amend the constitutional arrangements under which Europe – or at the very least the euro area – operates. Should they set out a clear, consistent and workable policy orientation, which includes both fiscal control and a mechanism to keep compliant governments fully funded, this can in our view constitute a decisive first step towards stabilisation. Should they fail to deliver a credible framework encompassing both these dimensions, we would expect that the ongoing ‘run’ on governments and banks will accelerate, and it is seriously to be feared that it can no longer be stopped. The economic, social and political consequences could be unfathomable. The next few weeks are therefore a critical moment in European history, in our view.

On the growing cracks in the fungibility of money:

Money in a fiat money system is a liability of a bank: of the central bank for banknotes and other forms of central bank money; of a commercial bank for commercial money (deposits).

If one or more countries can leave the euro, or at the extreme if the euro can break up altogether, this raises questions as to whether these different forms of money are fully fungible. Is one euro of deposit in a Greek bank still fully fungible with one euro in banknote form? Is one euro of deposit in a Greek bank still fully fungible with one euro of deposit in an Italian bank, and is the latter still fungible with one euro of deposit in a French bank, or a German bank, etc.?

Pursuing this reasoning leads to the inescapable conclusion that the more plausible it is that a country can leave the euro, the greater the incentives for depositors to move their deposits from the banks of almost all countries towards those of the country that remains the safe haven by convention if for no better reason: Germany. We believe that such behaviour, in turn, would (and judging by anecdotal information received from our clients, does) increase funding pressure on all banks, intensify incentives to accelerate the de-leveraging of the banking system and raise further the spectre of a credit crunch.

When will the World wakeup and see God?
5772-Universal Moshiach Clock.2012
People are waking up already


Post a Comment

Note: Only a member of this blog may post a comment.

Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes |