“The NEW Roman Empire: Fiscal & Monetary Unity”
Pj de Marigny / DITMo Strategies
Director, GARP S. California Chapter
03Aug2011, Newport Beach, CA. “Today we are all Romans.” Mitteleuropa, the extension of the Roman Empire from the days of Otto the Great seen by Bismark in 1915 is a present reality. It is the panacea for restoring growth and ensuring fiscal stability in the U.S. and Europe.
As the U.S. and Europe suffer with political problems that is structural cause of imbalance between the monetary and fiscal policies, we are forced to see a path to restoring that balance.
Both Europe and the United States have suffered the futility of their respective political regimes to deal with fiscal realities that destabilize their currencies. The answers bandied about have to do with growing our ways out of debt – a buildout paydown, so to speak.
However, in reality, the U.S. cannot buildout paydown in any formula that restores monetary/fiscal balance. In the U.S. we see that politically is impossible to restore monetary/fiscal balance – even with the cushioning provided by the U.S. Fed – without detiorating GDP, especially in an expanded regulatory environment. If the U.S. legislators truly conducted a cost/benefit coincidentally with an adverse impact study on all of their regulatory legislation, they would perceive the reality of their constraints to GDP growth, i.e. joblessness.
For Europe, recent events have forced the solution that the 27 members must have political unity. Enter, the New Roman Empire. Germany relies on trade with their theater and Basel is the guideline for capital. Europe has seen that the 27 members can rediscover their political roots and offer this solution: Creating a political unity and governing monetary policy where the individual states’ fiscal and monetary regimes are structured into a wheel and spokes New Roman Empire.
The United States needs a monetary union with this consortium to ensure that our political process does not undermine our fiscal policy and the way to do that is to unify our monetary policies with this New Roman Empire. When economic interests are aligned and monetary policies are unified markets are created and political peace will ensue and systematic risk factors are mitigated.
Bill Gross estimates that unfunded liabilities for the U.S. are projected to be $66 Trillion. The political system of the U.S. was just not designed to operate in an unrestrained monetary, fiscal, and regulatory environment. The process must be re-engineered, in the words of Michael Hammer. What is need is an over-arching monetary authority with a unified monetary regime, as envisioned by former U.S. Fed Chief Paul Volcker.
A New Roman Empire political union with monetary standards of Basel at the Bank of Int’l Settlements (the central bank of sovereign central banks) can provide a central framework to solve our joint fiscal and monetary dislocation with a unified currency. The currency could be fiated or reserved with an Occidental, Oriental, and Europe/Middle East monetary consortium that would represent the three theaters. *.*