Essay on US Presidential elections 2012: Precedents of US Democracy Vote of sanction and Sub-prime syndrome

Sunday, November 4, 12

                                   Precedents of US Democracy

                                    Vote of sanction and Sub-prime syndrome

                                      Essay on US Presidential elections 2012

"I leave you, hoping that the lamp of liberty will burn in your bosoms until there shall no longer be a doubt that all men are created free and equal.” Abraham Lincoln

"Behind the ostensible Government sits enthroned an invisible Government, owing no allegiance and acknowledging no responsibility to the people. To destroy this invisible Government, to dissolve the unholy alliance between corrupt business and corrupt politics is the first task of the statesmanship of the day..... This country belongs to the people. Its resources, its business, its laws, its institutions, should be utilized, maintained, or altered in whatever manner will best promote the general interest." Theodore Roosevelt

“No people can live to itself alone. The unity of all who dwell in freedom is their own sure." Dwight Eisenhower

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.” FDR

The precedent of “Citizen United” decision by the US Supreme court is “First National Bank of Boston v. Bellotti Attorney General of Massachusetts” decision in 1978. This case was brought to the High court by national banking associations and business corporations. In their opinion, Massachusetts law that prohibited corporations from spending money to influence the vote was unconstitutional and the US Supreme court agreed. The decision was a creation of First Amendment Right for corporations to influence elections. Corporate “free speech” became a new reality in American democracy. Lewis F. Powell wrote the majority opinion in “First National Bank of Boston v. Bellotti Attorney General of Massachusetts”. Nixon nominated him to the US Supreme Court on January 7th, 1972. Lewis F. Powell is the author of the “Powell Memo” published August 23, 1971 and “First National Bank of Boston v. Bellotti Attorney General of Massachusetts” decision was the beginning of the realization of the Powell memo. This memo is the road map of conquest of power centered on domination of political power, democratic institutions, public opinion, and privatization without limit of the fabric of American society. Domination develops inequity, moral weakness and destabilized democracy. The subjection of peoples is contrary to human well being. Powell memo is a road map to politization and government of privatization and transform this tool of human development to an instrument of political domination. Privatization is an instrument of capitalism. It is one of many instruments, which facilitates the development of the system, but capitalism is not limited to privatization. Capitalism is a long-term process of optimal development of human solidarity. The memo is a political strategy of privatization as a political instrument of domination. Privatization of media and education are key to this strategy, control of opinion formation, culture and ideology is essential to conquest of power by a minority. This is why Powell memo has influenced or inspired the creation of many think tank organizations likes the American Legislative Exchange Council (ALEC), Heritage Foundation, the Manhattan Institute, the Cato Institute and political activism of some business leaders. The Koch brothers are first in the line of this effort to control the destiny of American people with sub-privatization. This is why activities of republican think tanks have been important in the process of transformation of bipartisanship and our political culture. The Powell memo is founded on ignorance and an unhealthy understanding of capitalism. The free market is not driven by the dualism private sector versus public sector. Both are interconnected structure of capitalism. Success of industrial-capitalism in the 20^th century was based on harmonization of this interconnection. Politization of privatization by the Republican Party has created an antagonism between public and private sector. Free market capitalism cannot be feed with negative energy of this antagonism because it creates a disruption in the process of wealth creation. Our economy has been weakening by this disruption and an erosion of our democracy is the consequence. The market should not an opposition between corporate interest and democracy or management of conflict between dominants and subjects. In the 34 pages documents sent to Mr. Sydnor Jr, Chairman Education Committee US. Chamber of Commerce, Lewis F. Powell wrote “American business and the enterprise system have been affected as much by the courts as by the executive and legislative branches of the government. Under our constitutional system, specially with activist-minded Supreme court, the judiciary may be the most important instrument for social, economic and political change.” The memo is a degradation of the institutions of democracy and capitalism in USA. The US judiciary, legislative and judiciary power are 3 institutions of democracy, and foundations of free market capitalism. This memo is a deployment of spirit of domination. Social, economic and political changes in America come from the American people, not from domination of one branch of our democratic institutions. The Powell memo is not a reflection of the success of democracy and industrial-capitalism in USA in 1971. The thinking of Powell is a product of belligerent spirit with limited understanding of capitalism. Mr. Powell political culture is an expression of confusion between the political conflict of the cold war and contradictions inherent to development of capitalism.

American government has created the biggest and most productive free market capitalist system in modern history. Powell memo was written in 1971, when Richard Nixon cancelled the convertibility of US dollar to gold and USA was the world number one free market economy. The Powel memo is the beginning of an obscure theorization of capitalism based on degradation of institutions of democracy and industrial-capitalism. Reagan was elected 40^th President of United State of America from 1981 to 1989. His administration plays a very important role in the execution of the Powell memorandum. The ideological marketing build around the leitmotif “ Get the government of my back” was essential to transform government to a political adversary of republicans. Pdt Reagan said:

“The nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help.”

“Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. “

“Man is not free unless government is limited”

“Government exists to protect us from each other. Where government has gone beyond its limits is in deciding to protect us from ourselves”

“Government's first duty is to protect the people, not run their lives”

“No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!”.

Reagan administration was a representation of big government. When PDT Carter left office in 1980, the federal government spending was 27.9% of national income. As a skill politician PDT Reagan criticized Carter on this spending, but

 he spend 28.7% of national income at the end of his term. He spends more than Carter. His budget for the Department of Education has more than doubled to $22.7 billion, Social Security spending has risen from $179 billion in 1981 to $269 billion in 1986. The price of farm programs went from $21.4 billion in 1981 to $51.4 billion in 1987, a 140% increase. Medicare spending in 1981 was $43.5 billion; in 1987 it was $80 billion. Federal entitlements cost $197.1 billion in 1981, it was $477 billion in 1987. (1)Big government is at the heart of the republican ideology and their political strategy of conquest of power is build around this obscure concept. Democrats have not been able to stifle this concept and demonstrate that the Republican Party is the party of big government and excessive debt. This is a weakness the Democrats should correct if they want to make a strong difference with the Republican Party. In politic you cannot allow your opponent to label you for what you are not. Republican have been good in labeling democrat has big government and democrat have not been able to return the favor. To their benefit, they build a strong political capital with this false political labeling of the Democratic Party. The Reagan administration was a political platform of development and execution of the Powell memorandum, which lead to the beginning of an erosion of institutions of the republic and disintegration of industrial capitalism in USA. It is was a period when bipartisanship start to show its limits. The leitmotif “ Get big government of my back” has created a political culture

to transform government to an insignificant institution of the republic, but It is an illusion. The US government is a bureaucracy like any other government in free market capitalism. But, it is here to stay as an important institution of democracy and organizational platform of our society. The challenge is not the size of our government, but the efficiency of this institution of the republic. We are in a world of performance, innovation, competition and speed. The best governments in the 21^st century will those who will be able to adapt to these new realities. Creation of Efficient government is our priority. Development of smart cities will have strong

 impact on formation of Efficient government. Boston, San Jose, San Diego, Austin, Seattle are among the 10 top smart cities in USA. Copenhagen-Denmark, Curitiba-Brazil, Barcelona-Spain, Stockholm-Sweden, Vancouver-Canada are the top 5 smart cities in the world. “Our cities are fast transforming into artificial ecosystems of interconnected, interdependent intelligent digital organisms.” William J. Mitchell, (2). Multinational corporations like IBM and CISCO are involve in development of smart grids in smart cities. Smart grid technologies make possible construction of new cities from scratch like Songdo City in South Korea. The city is being build by CISCO. Efficient government is engineer by technology and innovation, not politic. When capitalism is confronted by severe crisis, government is the solution. This was the case in 1929 and it was the same for the great depression in 2008. The total US government bailout for private sector and banks was $ 1.2 trillion on December 5^th 2008. US financial institutions borrow money from the US treasury and the Federal Reserve. Half of the borrowers of the US Federal Reserve secret lending are foreign banks. Royal Bank of Scotland got $84.5 billion and UBS AG got $77.2 billion from the US Federal Reserve. The Dodd-Frank Wall Street Reform and Consumer Protection Act mandated GAO one-time limited audit of the Federal Reserve. The audit reveal a massive corruption, ignore by the US congress, American people and the media. The Federal Reserve made $16.1 trillion (From December 1, 2007 to July 21, 2010) in secret loans to bankers during the financial crisis. The total the loans went to Wall Street “too big to fail” banks and foreign financial institutions received $ 3.8 trillion. Main Street America did not one dollar from these loans. $16.1 trillion is more than United State GDP per year, 8 times US federal tax revenues ($ 2.40 trillion) and 5 times our federal revenues ($ 3.54 trillion). The recipients are: Citigroup – $2.513 trillion, Morgan Stanley – $2.041 trillion, Merrill Lynch – $1.949 trillion, Bank of America – $1.344 trillion, Barclays PLC – $868 billion, Bear Sterns – $853 billion, Goldman Sachs – $814 billion, Royal Bank of Scotland – $541 billion, JP Morgan Chase – $391 billion, Deutsche Bank – $354 billion, UBS – $287 billion, Credit Suisse – $262 billion, Lehman Brothers – $183 billion, Bank of Scotland – $181 billion, BNP Paribas – $175 billion, Wells Fargo – $159 billion, Dexia – $159 billion, Wachovia – $142 billion, Dresdner Bank – $135 billion, Societe Generale – $124 billion (3).The loan is an expression of the US Federal Reserve limitless power and there is no legislation to limit this power. It is important to point out that the Federal Reserve is not a government agency, but a private institution. So, an unaccountable private monopoly is running our economy. There is nothing democratic in the US Federal Reserve.

The US government of the people prevented a total collapse of capitalism created by private industry. In common sense, an institution that solves existential risk in human society cannot be the problem. Ideological retardation is the problem. This government is all us, has a human society if our solidarity was not deployed many of the financial institutions in Wall Street will not exist after 2008. In the tragedy of this crisis created by the actions of the private sector, there is a savior. It is not the private sector, but the US government. A savior cannot be insignificant or the problem. This savior is all of us, citizen of the United Stated of America. The precedent of the great recession of 2008 is the great depression of 1929. A businessman and Republican President Herbert Hoover with contribution of the financial industry created it. A Democrat President solved the great depression: Franklin D. Roosevelt. History repeat it self, the great recession of 2008 happened under the watch of a republican president and businessman G.W.Bush. Again a democrat president is correcting his mistakes. An intervention of US government solve both crises, but it no a big government of a republican administration. Free market capitalism in a humanism founded on the process of conciliation of interests of different nature and creation of value in human organization. In January 1914, Henry Ford decision to double the basis rate of pay of his worker to $ 5/day is a perfect example of conciliation of interests in capitalism. Henry Ford decision transforms him to an extremely wealthy man without tax cuts or government deregulation. He made the following statement after his decision ““We believe in making 20,000 men prosperous and contented rather than follow the plan of making a few slave drivers in our establishment millionaires” (Fortune- Alex Taylor III, October 8, 2012-The Greatest Business Decisions of all time by Verne Harnish). With this decision, Ford has double production, reduce worker day from 9h to 8h, created a lot of new jobs, expanded consumption and market, reduce Model T’s price from $800 to $350 and productivity went up from 40% to 70%. Ford understood that capitalism is a process of building human society in solidarity and harmony. Capitalism is a long-term process of maturation through different phases of wealth creation and manufacturing of “made in America’. This is what makes the complexity of the system and his capacity to give birth to a better future for humanity. It is a harmonized economic system to building more efficient institutions of the republic, private sector, education system, media and work force...Etc. This is what industrial-capitalism has achieved with success in USA for many centuries. The Powell memo lack this vision to build a better human society, in contrary it is founded on short term satisfaction of corporate financial interests, depreciation of the institution of Republic and fragmentation of American society. This understanding is a limitation of the system. Romney-Ryan project is a refection of this limitation. Their plan of massive privatization is a fragmentation and dismantlement of our social fabric. They claim that Medicare and Social Security are going bankrupt, but it is not true. Social security will have a surplus of $ 4.3 trillion by 2023 and is expected to pay out 75 percent of benefits until 2084.

(4). Social security was created by F.D. Roosevelt in 1935, but republicans never stop to fight for its privatization. It is their dream gift to a political clientele in Wall Street. Capitalism is a phenomenon of stabilization of social fabric, the transfer of the management of social security to the moral hazard of Wall Street will result collapse of our social organization. Social security is a key stabilizer and an expression of our solidarity. This transfer will also weaken our institutional power to control the future our social organization and “wealth of the nation”. Social security is an important part of the “wealth of nation”. All assets of human organization cannot be subject to risk of private entities; we are founded on the “Common good”. Romney-Ryan project is an expression of development of the subprime syndrome.  They are asking American people to embrace the same policy that is creating so much pain and suffering since 2008. The republican concept of privatization is a deployment of human private excess, this why it is destabilizing American society.

In the last 40 years, the Powel memo has build has build this concept

 and weaken institutions of our democracy and changed the nature of our national priorities. This memo is a roadmap to failure of bipartisanship. This is why very few Americans identified themselves with the US congress. Only 13% of American approved the job of US congress (5).

This low approval of our elected representative shows the necessity to renew American democracy. It signals the need for an ideological transformation in our democracy, the need to become more Americans, less democrats and less republicans. Innovation in the 21^st century, cannot be manage by twentieth century political system characterized by immobilism. Renewal of American democracy cannot be done with out an engineering of new Industrialization of America and production of “made in America”. But, our Democracy is dominated by a power struggle between Democrats and Republicans that limit innovation. The interests of American people are no longer the priority of bipartisanship. The dualism of this political structure is fuel by apolitical antagonism define by the will to dominate political power. This domination can be achieved through accession or conquest of power. In democracy, this political objective can only be achieved by accession to power by universal suffrage, expression of the people's trust in individual sovereignty to represent their interests. Universal suffrage is result of delegation of power and foundation of democracy. Conquest of power is the anti-thesis of democracy; it is founded on annihilation of democratic process. Temptation to conquest of power is inherent to all human organization and human nature. The history of human society is the history of domination, and society mature with demarcation from domination. This is why democracy is set up on a mechanism of control, alternation and transparency of power such as political term limits and the principle of separation of power. The objective of these two mechanisms is to prevent the existence of any form of domination and permanent political power in the hands of a single individual or group of individuals. Permanence of power weakens democracy. This is the political phenomenon we are witnessing today in American democracy. Bipartisanship is permanence and domination of political power and the US legislature and judiciary are 2 institutions characterized by this permanence of power. The lack of term limitation in these two institutions of our democracy is source of the dynamics of conquest of power initiated by the Republican in the last 40 years. The permanence of political power of sovereign individuals in our legislature and judiciary is an erosion of democratic values and development of political culture of self-identification to supreme political power. But, the dynamic of conquest of power developed within the Republican Party, because this party is more sensitive to political innovation and progress of democracy. The Republican Party also develops for many decades a political culture of identification to the private sector. This self-identification explain why they sympathy for democracy is low. Democracy is founded on dynamic of political innovation, but the conservatism of  Grover Norquist Republicans is not compatible with the creative character of democracy, specially when we are moving in the phenomenal world of knowledge society in the 21^st century.

The presidential election of November 2012 will be an important test for

Grover Norquist Republicans to conquest power in America. The culture of conquest of power is not new in this party. The Powell memo was an ideological legitimation of this culture. November 2012 is frame by the opponents of Obama to legitimate the selection of Romney as PDT of USA. Selection of Bush in 2000 was a precedent.

The dynamic of conquest of power is defined by selection not election of the President. November 2012 will be a test for the republican project

to weaken universal suffrage and institutions of the republic in USA. The emergence and convergence of these two factors create an incompatibility of bipartisanship with the requirements of democracy in the 21st century. Tentative of

conquest of power and degradation of democracy are the two most important political risk of bipartisanship. This political structure has a propensity to transform productive symmetric relationship into an irreversible and unproductive asymmetry. Deterioration of political relations between the 2 parties is the consequence of this political risk. An exacerbation of this deterioration can lead to the development of irreversible antagonism. November 2012 presidential election is driven by an antagonism of Grover Norquist Republicans toward President Obama and American democracy. Our political system is now experiencing a fundamental transformation; it is a field of expression of republican political antagonism and erosion of our democratic values. In this analysis, it is prudent to make a clear distinction between the republican party of Abraham Lincoln and Theodor Roosevelt and the current party of Mitch McConnell and John Boehner. I call the current Republican Party: “Grover Norquist Republicans” (GNR). The signature of Grover Norquist Tax pledge by the republican leadership is an ideological rupture inside the Republican Party and seal the division of our nation. The division of our nation in two blogs characterized 2012 presidential elections. On November 7^th, the President of the United States of America will have the political obligation the make us more Americans, less Republicans and less Democrats.

The USA became the world number one democracy and free market capitalist system with the help of a productive bipartisanship, in which antagonism was non-existent. Bipartisanship was a fertile structure of political collaboration between democrats and republicans. But, it has been loosing gradually this political fertility since the 1^st publication of the Powell memo in 1971 and reach the level of irreversible antagonism during the great recession of 2008, the election of Obama and emergence of  T-party. This political and ideological mutation transformed the political culture of cooperation between Republicans and Democrats to a culture of confrontation and put the management of the interests of American people in secondary position. The ideological rupture with the original Republican Party and illusion of privatization lead to the transformation of American economy to a society of debt. Grover Norquist republican are the principal architect of the public and private indebtedness of America and degradation of our economy. Debt is not a human virtue, but rather a restriction of freedoms and leads to destabilization of human organization. A political party cannot claim freedom when his political agenda create excessive private debt. This is the case of the current Republican Party. When George W. Bush was selected President, the federal government was running a surplus of $86 billion inherited from the Clinton administration. Bush turned it into a $642 billion deficit at the end of his 2^nd term. PDT Obama spend less than any United States president since Dwight D. Eisenhower. During Obama’s 1^st term, federal spending is on track to rise from $3.52 trillion to $3.58 trillion, an annualized increase of just 0.4%. But, Bush score 7.3% and 8.1% and Reagan 8.7% and 4.9%. (6). So, the big government and big spender are republican presidents Bush and Reagan. The Republican Party has been very good to make Americans believe the contrary, but democrats are very weak to defend their own record. This is a terrible weakness of the Democratic Party.

The republican Party of Abraham Lincoln, Ulysses S. Grant, Theodore Roosevelt, Dwight D. Eisenhower was a party of wealth creation, strong ethic, industrialization of America, production of “made in America”, mass employment and low debt. It was a party of unity and solidarity for prosperity and well-being of all Americans. Historian shows how Lincoln leadership is define by the preservation of the Union and end of slavery. He established our national currency and national banking system with the signature of National Banking Act in 1863. The leadership model of the 16^th President of the United State of America was based on freedom and union, but this model is not represented in the republican party of Grover Norquist. The first American PDT to win the Nobel Prize was Roosevelt. He was the 26^th President of the United State of America. TR developed the United State sea power with the creation of the navy and expanded the presence of USA in the world. Theodore Roosevelt naval diplomacy plays an important role in the emergence of USA as a world power. He was the peacemaker in the russo-japanese war (Feb, 1904-Sep 1905). Theodore Roosevelt created 150 National Forests, 5 National Parks, 18 National Monuments, 4 National Game Preserves, 21 Reclamation Projects, and 51 Federal Bird Reservations. In today’s political culture his leadership in conservation of nature will be identified as environmentalism. But, the Republican Party does not embrace his excellent culture of protection of environment, peace and world affairs. TR created 230 million acres of federally protected land. He identified himself as a representative of all American and wrote 35 books. But, the republicans of Romney identified themself as a representative of big money. Dwight D. Eisenhower was 34^th President of the USA. He was a peacemaker and manages not to go to war in a period of cold war when multiples crisis could create a nuclear war. The success of his fiscal policy lead to prosperity in America. He balanced the budget three times, refused to cut taxes and raise defense spending. Dwight D. Eisenhower ends the Korean War (1953) and created the Interstate Highway System in 1956. He sponsored and signed the Civil Rights Bill of 1957. None of his accomplishments are close to the Republican Party. Eisenhower balanced the budget three times, but recent republican president like Bush and Reagan was skill deficit creator. The Bureau of Labor Statistics shows that the federal deficit doubled under Reagan, going from $790 billion to $1.55 trillion. Dwight D. Eisenhower skill of peacemaker is not an inspiration for the current Republican Party. Dwight D. Eisenhower refused to cut taxes and raise defense spending; this is a huge difference with the current Republican Party. This brief description of accomplishment of past republican presidents demonstrated the phenomenal contribution of the Republican Party to the success of American capitalism, but also demonstrates an important ideological rupture with the republican leadership of Grover Norquist, the Koch brothers and Sheldon Adelson.

American dream is not possible with Grover Norquist Republicans. We are now a country of deindustrialization, destruction of “wealth of the nation” and gradual dismantlement of American democracy. The ideological shift triggered in the last 40 years by engineering of self-regulatory society, Ann Rand mediocre novel, Powell memo established strong limitations to the future of American society and create a dynamic of formation of sub-capitalism which is a degradation of capitalism. The phenomenon of sub-capitalism is unique to industrialized nations. It is characterized by deindustrialization and financialization. It is a degradation of economic success. But, it is not new in world history. The consequences of sub-capitalism are constant economic crisis, exacerbation of social disequilibrium, destruction of “wealth of nation”, massive creation of debt and depreciation of democracy. Globally, the great recession has destroyed  $ 34.4 trillion of wealth.

(7). Certain research indicated the figure of $ 50 trillion in 2012, as this crisis is not over yet. In the US, wealth destruction is evaluated at least $12.8 trillion in estimated actual and avoided GDP loss, $19 trillion of household wealth was lost from July 2007 when it was evaluated at $74 trillion to January 2009 when it was $55 trillion. The great recession destroyed of $7 trillion in homeowner equity and 40% of American family’s net worth was lost from 2007 to 2010(8). Our economy has lost approximately 42,400 factories since 2001 and 90,000 manufacturing companies could disappear if a strong national manufacturing strategy is not in place (9). Rep. Betty Sutton (D-OH) estimated a higher number of 56,190 and 15 factory closure per day and 5 to 6 million jobs have been lost during the same period of Bush presidency. 33% decline of share of total manufacturing jobs exceeded the rate of loss in the Great Depression, which was 30.9%. Social cost of deindustrialization is extremely high. It has trigger a process of dismantlement of our social fabric with massive unemployment, reduction of amount of taxes collected by public authorities, lack of health care, weak education, increase of level of social disruption and violence. All these inadequacies are elements of development of sub-capitalism in USA. In 1970, 27% of the U.S. work force held jobs in manufacturing; in 2012 it is a third: 9% (12 millions American). From January 2000 to January 2010, manufacturing jobs fell by 6.17 million, or 34 %. This sector represented 27% of US GDP in 1950, 23% in 1970, 14% in 2000 and 11% (1.7 trillion in value/year) in 2011 (10). If considered as an economy, US manufacturing sector is the 8^th largest economy in the world with 22% of the world output. (11). Manufacturing is an employment multiplier. The Milken Institute report: Manufacturing 2.0 (June 2009) demonstrated that 2.5 jobs are created from every manufacturing job and every computer-manufacturing job created 15 jobs outside the factory. In their publication: The information technology & innovation foundation (APRIL 2011), Stepen J. Ezell and Robert D. Atkinson explains: “From 2000 to 2008, manufacturing investment as a proportion of GDP was on average lower in the United States than in most competitor countries. And from 2000 to 2009, capital investment within the United States by U.S. manufacturers declined over 7 percent. The declines were steep in many industries. Paper declined by 29 percent, motor vehicles by 42 percent, furniture by 50 percent, and apparel by 73 percent. Even sectors that the United States is supposed to lead in saw declines, with computers and electronic products down 4 percent and chemicals down 13 percent”. Income inequality is at a level never reached in our modern history. Increase in income inequality is an important sign of failure of bipartisanship and financial-capitalism. Development of inequity destabilized human organization. From 1992 to 2007 the top 400 earners in the U.S saw their income increase by 392%. One percent of the US population make an average $ 27 million per year and their wealth increase by an average $600,000/ year, but the bottom 90 % make an average $31,244/year and lost 6000/year. Two third of American net worth is control 10% of US population. Since 1950 payroll tax increase from 12% to 43% but corporate tax decrease from 27% to 8% (12). Economists, David Moss of the Harvard Business School commented:

“It is also striking that the two peaks in inequality occurred in 1928 and 2007 – in each case immediately before a major financial crisis”

“Bank failures and financial crises were common in the U.S. until 1933. Then federal financial regulation was dramatically strengthened (starting in 1933). Bank failures and financial crises virtually disappeared after that, for nearly 50 years, but reappeared after financial deregulation commenced beginning in the 1980s” (13).

Deindustrialization is a massive destruction of private sector, and republicans initiated it. This reality demonstrate that republicans do not support the real free market capitalism, but a political clientele operating in the private sector to access means of acquisition of power. Growing inequality and deindustrialization are two majors failure of bipartisanship. Health of human organization can be measure by the level of gap in income inequality. When this level increase health of human society will depreciate. This is the reality of United State of America in this second decade of the 21^st century.

The campaign for November elections is not a display of solutions or a road map for reduction of inequality in America. 2012 presidential campaign is a sum of exposes of economic policy defines by “cuts” in government spending. Punishment and humiliation of American people is the only solution for the republicans, this why Romney-Ryan is focus on cuts. This bad solution is dismantling the fabric of our society. Americans are learning every day how they are being punished and humiliated; and how this treatment should continue for the next 4 years with more “cuts” in education, health care, transportations, Social Security, Medicare, Medicaid, food stamps, police forces, firefighter, school and teachers. Republicans cuts will also eliminate Social Services Block Grants, a $1.7 billion a year program that gives states money for Meals on Wheels, day care, adoption assistance, and transportation help for the elderly and disabled (14). Cuts will also include $156 million from the Centers for Disease Control's funding for immunization and respiratory diseases. The consequences of this cut will lower vaccination rates and result in more outbreaks that endanger public health. Special education grants to states will be cut by $1.4 billion, or 11 %. The lack of humanism an economic growth in this economic policy will fracture the health of American society. Leadership without plan for future prosperity will be a huge handicap in our economy and lower our level of competitivity in the world. But, Romney would like to increase our military budget by $2,1 trillion over the next 10 years, if selected as President. Great leaders guide their people to more not less.

 “Cuts” endanger our society with a meticulous process of piece-by-piece dismantlement of our social cohesion. Great leaders do not lead their people in austerity but to prosperity. Great leader increase “wealth of nation”, expand freedom and democracy. They do not restrict right to vote and women right. Great political leaders build bright the future. Cuts are obstruction to clear vision for the future; this is why the electoral campaign is not full of optimism. 2012 presidential campaign is an expression of failure of bipartisanship. By nature, electoral campaign is a period of confrontation of the best ideas and a display of limitless possibilities of the future. The American people do not deserve a political campaign dominated by restriction of freedom and wealth. But, Grover Nor Quist Republican (15) attempt to conquest power by restriction of freedom and wealth is the main reason of lack of clear vision for the future in this campaign. Conqueror of power does not have any interest in creation of better future for the people. The future is only defined by his success to conquest power. We are in a Machiavellian situation. Conqueror of power cannot develop a coherent theory of management of human society. This is not their goal, it explains Romney’s inconsistencies in all his positions. This why Romney-Ryan cannot develop a coherent and rational political theory and give any specifics in fiscal policy and economic growth. His only rational is the illusion of his right to control power and entitlement to power. The conqueror of power think he is the power and does not have to explain why.

This ideology is not new in the culture of the Republican Party. It has been in development since the publication of Powell memo in 1971. It is the ideology of creation of what Machiavelli call “new Principality”. Moral and ethical rules are discarded and conquest of power is executed with fortune and inequity. Romney’s conquest of power in November 2012 is base on lack of moral and ethical rule, but full of money and inequity. The republican candidate is a perfect representation of anti-democracy, but could be the next President of United States of America. Machiavelli wrote: "Such princes stand simply upon the will and fortune of whoever conceded it to them, which are two most voluble and unstable things: and they do not know how and they have not the power to hold that rank: they do not know, because, if he is not a man of great genius and virtue, it is not reasonable that, having always lived in private fortune, he knows how to command; they cannot, because they do not have forces that might be friendly and faithful to them. Moreover, the states that come right away, like all other things of nature that are born and grow fast, cannot have their roots and connections, so that the first adverse circumstances extinguish them...” (16). This ideology has grown and develop in the last 40 years in American democracy and the leadership of the Democratic party have not able to stop its dynamic. It is a demonstration of terrible ideological weakness in the elite of the Democratic Party. Republicans knows how to capitalize on this ideological weakness, this is why they are always competitive in moment of elections. The republican political brand is at a very low level, but have very strong presence in American political culture. To solve this problem the Democratic Party leadership must initiate a new strategy of ideological marketing and much more aggressive political offensive attack. Restrictions of freedom by introduction of voter ID law and ban of abortion are key objective of conquest of power to disrupted society of freedom. This disruption is more challenging for a sitting president because he has a record to defend. We can understand the swings in the Democrats rhetoric in 3 directions: define a clear plan for the next 4 years, fight the great recession and defeat Romney-Ryan disruption of freedom. Our national conversation should be centered on positives solutions to the great recession and definition of our future in the digital world. Disruption of freedom by destruction of achievements of our democracy has change the nature of the political message and presidential elections. The dynamic of this disruption will exacerbate the crisis of American society. The strategy of conquest of power is founded on exploitation of economic, political and social chaos because this type of situation is fertile to political realization of vote of sanction.   Romney-Ryan candidature to the presidency and vice presidency of United State of America is structured on the political possibility of vote of sanction by American and make Obama a one term president because of high unemployment rate; 7.9% in October 2012. But, his 1^st term is full of performances; his consistently create jobs since he was elected President. 4.5 millions jobs was created by his administration. Vote of sanction is the biggest political risk for Obama, and Romney’s strategy is based only on the realization of this vote. It can happen and Obama will have only himself to blame. No doubt, PDT Obama’s realization are very importants, but he did not reach the level of job creation that will satisfied the American people. He could achieve a better unemployment rate, if FDR model of infrastructure and public work was implemented. Our nation infrastructure is collapsing and need to be renewed. Investment in infrastructure will help increase our competitivity in the global economy. It is always very risky for a President not to implemented precedent historic and successful models. FDR model of economic success was very present in Obama’s 2008 campaign. But, President Obama took the risk not to follow FDR model. This is one of the reasons why his economic policy  have not reach better result in job creation.  The resemblance between the two crises is enormous. If Obama is elected with the current unemployment rate of 7.9%, he will create a precedent in high unemployment rate after WW II. PDT Reagan was elected with 7.4%. Obama has already created a precedent in US history by being the 1^st black President. November 2012 elections is more than a challenge for the reelection of Obama, it is about preservation of achievements of our democracy. These rights are the foundation of our democracy and free market capitalism.  Elimination or restriction of these rights reinforce the development a new form of capitalism: sub-capitalism, because it move our economy out of the boundaries of capitalism. Sub-capitalism is a limited form of capitalism in advance democracy. This is what makes November 2012 presidential elections a very unique political competition in modern history of United State of America and democracy in the world. We are in the 21^st century; new boundaries of democracy in the world are opening. Millions of people around the world are just starting to experience democracy and the world most mature and sophisticated democracy is challenge with return to anti-democracy. This one the most astonishing paradox of the 21^st century, but democracy is a permanent fight. The dynamic of the Arab revolution is a perfect demonstration of expansion of democracy and freedom in the world. The new sphere of digital world has raise the nature of unity of human community to a level never reach before in human history. But, the world most powerful nation is moving in the opposite direction. This new paradox is a precedent in the history of democracy: emergence of anti-democracy in the world most efficient free market. This paradox will undermine the standing of United State of America as a world leader. Our position has world leader will face more challenges if our democracy is guided by restriction of freedom.

It should not be a surprise if Romney wins the elections. Anti-democratic leadership could emerge in moment of severe human crisis, and the United State of America is not immune from establishment of a political power that will end equality between the citizens of our republic. Lilly Ledbetter Fair Pay Act established equality of pay between women and men in the work place, but Romney stated clearly that he would not support it. Obama signed lilly Ledbetter Fair Pay Act into law in 2009. Romney position shows that GNR are not for equality between women and men. The Senate republican bloc (52-47) in June 2012 the "Paycheck Fairness Act,” introduce by Sen. Barbara Mikulski, D-Md. The goal of this bill was to strengthen equal pay between women and men. In Machiavelli’s new principality, power is conquest with inequity.

The world is experiencing a phenomenal moment of transformation with creation of the digital sphere. In this new sphere of development of human intelligence, prosperity of nations will be inevitably founded on our ability to manage new complex systems. This crucial moment of transformation will give birth to a new capitalist system. Financial-capitalism is a transition to this new form of capitalism. Management of knowledge is a determinant of the new capitalism of the future. It is

 opening extraordinary new frontiers to wealth creation and will strengthen human solidarity. The USA is the world center of knowledge and development of its applications. We are the country that created the Internet, GPS, the computer, Apple, Microsoft, Google, Facebook, Twitter, Dell….Ect. We are the creator of the new digital sphere that is give limitless possibilities to our future. Our new challenge is to conciliate the digital sphere with new industrial-capitalism and create a new model of capitalism: renaissance of industrial capitalism. Financial-capitalism has fail. It is a capitalism of experimentation of illusion of self-regulatory society and deindustrialization. We are human and we cannot lose leadership control of our destiny. The United States of America lost the first 2 decades of the 3^rd millennium, and the last 3 decades of the 20th century was a period of dismantlement of industrial-capitalism. Wealth creation and growth is at the center of capitalism. Our capacity of wealth creation is gradually diminishing; this is why it is imperative to engineer the renaissance of American industrialism. It is a “sine qua non” condition for the return of America to a society of wealth creation and production “made ​​in America”. Production of less wealth and gradual disappearance of “made in America” is making our free market less healthy. This is the fundamental characteristic of United State of America in the beginning of this millennium. Therefore, return to an optimal level of wealth creation is the most important challenge of American society, but it is not at the center of our national conversation for the election of the next American president in November 2012. Lack of focus on wealth creation lower the quality of our national conversation. The best way to lower our debt is not to punished American people with inhuman cuts but to create more wealth by manufacturing “made in America”. The success of the next commander in Chief will depend on the ability of his administration to engineer new wealth creation in America. He will not have the honor of historians, if he leads our nation only in a series of cuts to punish American people. A Romney administration will be a punisher of American people. His political agenda is a marathon of cuts and restriction of freedom. Wealth creation is not a priority for conqueror of power. A second term of President Obama will leads to wealth creation. He is already in this trajectory. Obama’s first term was not a big transformative moment because of lack of engineering of new policy of industrial renaissance in America. He will be a transformative President, only if he can follow the steps of FDR and engineered such a policy in his 2^nd term. PDT Obama could simply follow the model of F.D.Roosevelt and engineer a new stream of new industrial production and infrastructure development. The possibilities was there in the 1^st two years of his presidency, but he did not.

Powell memo was not about wealth creation and industrialization of America. Illusions of Ann Rand mediocre novels have the same characteristics. But, both strongly shape the political culture of the Republican Party and key decision makers of American economy. Alan Greenspan was strongly influence by Ann Rand, this is why the former Fed chairman lead our economy to disaster. Greenspan supported the repeal of Glass-Steagall signed into law by PDT Clinton on November 12^th,

1999. The new law Gramm–Leach–Bliley Act was the result of $300 million worth of lobbying in 25 years. This invest yield trillions for Wall Street. Paul Ryan, the current republican vice president candidate is influence by Ayn Rand intellectual deficiency. The emergence of her inhuman individualism in the sphere of republican political thinking is an ideological rupture with the American values and vision of the founding fathers of USA. Our nation was founded on extraordinary solidarity, that is why we have always overcome all challenges in the process of building a nation that has inspire the rest of the world. As Americans, our fundamental source of ideological strength and political inspiration came from the founding father of the United State of America like John Adams, Benjamin Franklin, Alexander Hamilton, John Jay, Thomas Jefferson, James Madison, and George Washington. By turning their backs to our most important source of ideological strength, the current elite of GNR betrayed our American values define by the founding fathers. This ideological betrayal is at the origin of the republican party transformation to a political organization submitted to short-term profit, inspire by the objectivism of Ayn Rand responsibility is the anti-thesis of our American values of solidarity, cohesion, sacrifice, success, unity, freedom, democracy, industrialization and well-being. Americans do not need a mediocre writer to teach them about personal responsibility. The great recession has demonstrated that Ann Ryan theory is a total failure and is at the origin of the transformation of our nation to a debt-nation. Debt is a restriction of freedom and indebtedness weaken human organization. Our country is founded on personal responsibility to build a strong nation and efficient free market capitalism. American values are founded on strong personal responsibility to build an independent nation, stable democracy and freedom.

 The dynamic of human solidarity is at the origin of success of capitalism. Process of wealth creation is a deployment of many human activities with different nature. Solidarity cements those activities to produce wealth and well being for all American. That is how America was build, and why we have been very successful to create an industrial-capitalism, society of freedom and democracy in which every American is a valuable asset. For centuries, we fought for freedom, liberty, unity, social cohesion and prosperity with personal responsibility. Free market capitalism was build through a succession of different historical periods by the sacrifice, ingenuity, solidary and peace of American people. The process was sustained by high morals value, backbone of industrial-capitalism success. But, financial-capitalism is a phenomenal depreciation of moral values; this is what explains our transformation from a producing nation of wealth to a producing nation of debt. The founding fathers of our nation demonstrated high moral value. But, these values are missing in 2012 bipartisanship and they are also missing in financial- capitalism. Benjamin Franklin theorization of moral perfection is more actual than ever. He wrote: "It was about this time I conceiv'd the bold and arduous Project of arriving at moral Perfection." His 13 virtues are model of moral values and better road map to success than Powell memo and Ayn Rand illusion. Weakness of moral values is a failure of bipartisanship. Human society growth and develop with execution of historical and successful models. It is often a mistake, when they are not implemented.

American capitalism was not created by collection of private entrepreneurs or a group of private investors looking for short-term profit. Our society is founded on the common unless a GNR can demonstrate that our nation is a private entity or should be a private property. American industrial-capitalism was created with vision, work and sacrifice of American people. It is a process of valorization of every American. The Powell memorandum has trigger development of an ideology, which downgrades ​​American citizen and worker. Industrial-capitalism is founded on valorization of human being. Leading capitalism to the opposite direction has weakened the system and give birth to society of debt. The great recession is a result of depreciation of American people. It is defined by an increase of public and private debt in USA. But the crisis has been trigger by an extraordinary increase of private debt: sub-prime loan and securitization. But, GNR does not want Americans to focus on the danger of private debt and commoditization our lives. The ideology of privatization develop by the republican elite is to make Americans more dependent of the private sector. Conquest of power is centered on reduction of freedom. Capitalism is not a process to create dependency between citizen of the republic and private sector. Increase of private debt creates a relationship of domination and submission and fracture capitalism. Commoditizations of human activities weaken individual sovereignty and gradually create an erosion of democracy. The process creates synthetic wealth with risk that we cannot be control. This is one the key characteristic of financial capitalism and explains why we are constantly hurt by severe economic crisis. We have a total debt to GPD ratio of 279% (17). This combine public and private debt more than double from $ 26 trillion in 2000 to 54 trillions in 2008 and decrease to $ 52,554 trillion in June, 2011 representing 350,4% of our GDP (18). Our gross federal debt is $16.4 trillion and projected to be $17.5 trillion in 2013. From 2000 to 2008, under President Bush, Federal spending rose by $1.3 trillion, from $1.9 trillion a year to $3.2 trillion a year. From 2009 to 2012, meanwhile, under President Obama, federal spending has risen by $600 billion, from $3.2 trillion a year to $3.8 trillion a year. This data shows that big government is a creation of republican administration.  In the last 12 years our federal revenue is in decline, this is one of the reasons of our public debt. In 2000 federal revenues represented $ 2,025.2 b (20.6% of GDP), in 2008 it was $2,524.0 b (17.5% of GDP). Those revenues represented 14.9% of GDP in 2009, the level of 1950 when it was 14.4%. We saw a very small increase to 15% and16% in 2010 and 2011 (19). Corporate tax loophole plays an important role in the decline of federal revenues. In 1952, corporate income taxes were responsible for 32.1% of all federal tax revenue but in 2009 it was only 8.9%. But at the same time payroll taxes increase from 9.7% to 40%. (20). Corporate taxes loopholes cost US taxpayer about $100b/year. We can increase the income of our federal government if we close corporate tax loophole. The money is available, and big part of this money it is not in USA. Corporate taxes are less than 10% of federal revenues. A company like Microsoft avoided at least $6.5 billion in taxes using offshore transactions and transfer pricing process. We have the highest marginal corporate tax rate in the world: 39.2% but US corporations are not paying this rate. David Cay Johnston (Pulitzer Prize-winning reporter and author) explains on The Daily Ticker: “A 1909 law requires that companies not hold more cash than needed to reasonably run their business. If they don't re-invest the extra cash into the business or pay dividends, they face a 15% penalty.  President Reagan added a loophole to the law allowing companies to avoid the 15 percent penalty if they hold the extra funds offshore. Using that loophole, companies like and Hewlett-Packard can borrow against some of those foreign assets ehole also reducing their tax liability”. The Senate's Permanent Subcommittee on Investigations hearing on Offshore Profit Shifting and the U.S. Tax Code shows that U.S. multinational corporations have $1.7 trillion in earnings offshore. The Senate's Permanent Subcommittee also indicate: “For Fiscal Years 2009, 2010 and 2011, Apple has been able to defer taxes on over $35.4 billion in offshore passive income covered by Subpart F.  Google has deferred over $24.2 billion in the same period. For Microsoft, the number is $21 billion”(21). Decline of federal revenues is a very good news for republican conquerors of power. Low revenues put fiscal pressure on the US government, because it limits the possibilities of the US government to spend money and should consequently lead to a substantial reduction of the capacity of US government. This is the heart of GNR economic and political thinking, it is called: Starving the beast (STB), an idea that emerges in the 70s. The objective is to weaken to the maximum the presence of US government in the management of affairs of American people. Starving the beast  is a process of transfer of this management to privates entities. The objective is to turn the US government to an insignificant institution, privatize human affairs and weakening American democracy. Human society and free market capitalism are founded on the common, transferring management of people affairs to private entities will diminished democracy and created sub-capitalism. Government is not a political adversary. It is one the 3 institutions of democracy. Government is a platform of democratic management of human organization and free market capitalism. This is the responsibility of government. But, Starving the beast is a destruction of this responsibility. Politization of Government by republicans is a political retardation and ignorance. This politization has totally mystified our national objective and divides our nation by the obscure concept of “small government” and “big government”. Our national objective is to create more wealth and better well-being for all American, not to develop bellicose relationship with our own democratic institution. Small government or big government is pure illusion. Neither of these two governments has existed in the history of democracy. This is political thinking  weaken institutions of our republic with development of political culture against government. It is easier to conquest power when people turn against their own government. The strategy to weaken government has been growing since the publication of Powell memo. Government is not an anti-thesis of private sector, it is all of us.

"The will of the people is the only legitimate foundation of any government, and to protect its free expression should be our first object." Thomas Jefferson.

"No man is good enough to govern another man without that other's consent." Abraham Lincoln

PDT Dwight David Eisenhower said: "People in the long run are going to do more to promote peace than governments."

The US government is the biggest creator of private sector in the history of modern capitalism. Government has the responsibility to protect our nation and responsibility of government is also to develop and manage our nation democracy and economy. Politization of government is centered on government debt, but not on private debt. Republicans conquerors of power do not like to talk about private debt in the USA because it is an instrument of conquest of power. Private debt is the biggest treat to our economic. We are in the great depression because of the mounting excess and risks of private debt. Sub-prime loan are private debt. Our total private debt is $ 40 trillion and growing (22). The great depression and recession are the only 2 periods when the ratio debt to GDP is over 150% total private debt to GDP ratio (23). These 2 crisis are the only two periods in the past century that were preceded by more than 40 % decade of growth in private debt to GDP ratio. This crisis is not a crisis of public debt, but a crisis of private debt and bipartisanship. The USA was an AAA country since 1917, but we lost this statute on August 5th, 2011. Failure of leadership is the reason of this downgrade. Standard & Poor’s (S&P) downgrade of our sovereign credit rating because of political risks and rising debt burden. Standard & Poor’s stated the following: “ the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011” (24). Identification of USA as a country of political risk is a new phenomenon. The decision Standard & Poor highlighted the weakness of our democratic institutions and failure of bipartisanship. But, this downgrade did not hurt the safety of US treasury, foreign holdings of our Treasuries rose to $5.26 trillion in May 2012 up from $4.7 trillion in July of 2011 (25) and the 10-Year U.S. Treasury Note was at 1,75% on November 2nd, 2012(26). With more than $11 trillion, our country has the world’s largest and most liquid government bond market, but our private debt is bigger. This is a composition of our debts: personal debt: $15.8 t, mortgage debt: $13.1t, student loan: $ 1t, credit card debt: $900 billion, business debt (Nonfinancial Sectors): $12.01 t. Our federal debt is $ 16.04 trillion and our total debt is $58,5 trillion (27). What is remarkable is the fact that we have $ 745.5 trillion in currency and credit derivative. This number increases since 2008 and represent more than 10 times the world GDP. It is an indication that we are not immune from another crash, because the derivative market still deregulated.

Deregulation of the derivative market is at the origin of the great recession. We were warned by Brooksley Born but she was fought by a group of men in power including Allen Greenspan, Robert Rubin and Larry Summers. Deregulation has create lawlessness, lack of ethics and morals, but capitalism is a system of law. Student loans could trigger the next crash. It has reach $1 trillion, composed of $864 billion in federal government loans and $150 billion in private student loan debt. Cumulative defaults on private student loans exceeded $8 billion and in the past 15 years the average college tuition has increased by nearly 500%. The default rate for Profit College is 22.7% and the average student borrower now owes $25,000.

 It is not possible to build healthy economy and growth with unlimited increase of private and public debt. In 1929, Private Debt in America was 240% of GDP; in 2009 it was 300% of GDP (28). Financial sector debt is more than $13 trillion. Reduction our debt will not be realized if we do not produce “made in America”. The politic of tax cut is an illusion. President Bush cut taxes was a total failure. There has not been in modern history a model of capitalism driven only by tax cuts. Tax cuts are a gift to the republican political client and execute the strategy of “starving the beast” key of conquest of power. Power is easier to conquest when the institutions of democracy are weak. Starving the beast weaken the government of the republic and American people, but do not touch military budged. It limited to welfare, social security, Medicare. Growth and expansion of free market capitalism is not founded on tax cuts, but it is a very long process of maturation of human investment. It took the world centuries of coordinated human effort and reaches this level of maturation of free market capitalism. Shift from agrarian economy to the painful dynamic of industrial revolution was an extraordinary moment of sacrifice and suffering of American people. As a follower of Ayn Rand “Objectivism”, Alan Greenspan admitted in front of congress that his economic thinking was a mistake. In modern history no human society have been founded on the illusions of Ayn Rand mediocre novels. When she published Atlas Shrugged in 1957, the USA was already the world number one economy and a model to follow. So what is the rational to follow unproven theory, when we have created the most efficient human society for optimal development? Conquest of power is not guided by any model of economic growth. It is an adventure not directed by predictability of human activities. Ayn Rand was probably an exiting intellectual adventure for Greenspan, but the former chairman of the Fed make the mistake to dismiss proven historical model. Our individualism created the world best leaders in politic, business, science and technology. Their contributions are proven historical model of development of free market capitalism. We are the country of John Rockefeller, Andrew Carnegie, Ray Kroc, Charles Coffin, Bill Allen and Steve jobs. Our individualism is the perfect expression of individual sovereignty in democracy and capitalism. But we are also specie of self-destruction. We are the only known intelligent species in our biosphere. But, if intelligence is a faculty of construction, it is also an extraordinaire faculty of self-destruction. It was the case of Allan Greenspan economic policy, now we are challenge by the new case of Paul Ryan in November 2012 conquest of power by republicans.  GNR are transforming the American society to a land of experimentation of the illusion of self-regulatory human organization. Paul Ryan will follow this direction and we will return to the disaster of Bush or worst. Expression of Subprime syndrome is helping Romney-Ryan to build strong momentum in this campaign. Their political project is extraordinary similar to the Bush policy that cause so much pain and suffering to the American people; and they plan to make the tragedy worst if they conquest the White House next month. The law of the land will be the law of the “New Principality”: less right, less education, less freedom, less food, less health care, less housing, less transportation…Ect . Our well-being will be restricted with cuts and dynamic of depreciation of human capital will reach a very high level. The pedestal of capitalism is human capital not tax cuts or public spending cuts. When we trigger a process of depreciation of human capital for political reason, our economic system become very weak. This depreciation is at the origin of deindustrialization in USA, phenomenal loss of value in our economy and low competitivity in the global market. Our imperative is to rebuild the US labor force, and manufacture “made in America”. But GNR do not support any form of valorization of American labor, they engineer a complete dismantlement of labor right. Cuts will only increase severe disequilibriums in American society, restrict freedom and our capacity the create wealth. This not the right moment to experimented fail economic policy. Our position in the world is declining, that’s the verdict from the Economic Freedom of the World Annual Report. The U.S fell to 18th in 2012, but America was consistently in the top five.

The temptation of conquest of power is inherent to all human organization and human nature. This is why democracy is a permanent fight that will never stop. Democratic power is structure by a mechanism of alternation of power such as political term limits and the principle of separation of power to prevent  realization of any form of conquest of power. The objective of these two mechanisms is to make impossible the existence of possible form of permanent political power in the hands of a single individual or group of individuals. But in our American democracy, there is permanence of power in the hands of individuals or group of people in our legislature and the judiciary. This is source of conquest of power and disequilibrium in our democracy. Permanence of power lead to bad decisions like the US supreme court opinion “Citizen United” and the legislative decision to repeal of “Glass Straggle” which is at the origin of the great recession of 2008. Restoration of Glass Steagall is a necessity for the engineering of American industrial renaissance. We should notice that in our national conversation lead by Pdt Obama and Romney, there is no mention of “Glass Steagall”. A healthy US economy will be impossible if a legal structuration of management of “wealth of nation” like Glass Steagall is not in place. The repeal of this law was a donation of the wealth of American to private financial institutions. This is not how capitalism was build. Free market capitalism does not put in danger  “wealth of the nation” as a hedging instrument for uncontrollable risk of private financial company. Free market capitalism protects the “wealth of nation” as a key instrument of growth, development, safety and equilibrium of human organization. Lack of term limitation has gradually created a culture of individual permanence and ownership of political power in bipartisanship. Both political parties identified themselves with the power. Personal identification to power is the beginning of tyranny. Many of our founding fathers supported congressional term limits. Thomas Jefferson wrote: "To prevent every danger which might arise to American freedom by continuing too long in office the members of the Continental Congress". Bipartisanship is a political structure of permanence of power for American political elite. But, in democracy the only permanent power is the power of individual sovereignty and democratic institutions. This process of political and cultural identification to power has transform the republican party to an organization of conquest of power not guided by the principle of democracy, but by the instruments of conquest of power. Money is the most important instrument of this conquest, this is why GNR is now an ideological trading platform where political and economic success of industrial capitalism is swap with the failure of financial-capitalism. In the last 40 years, the gradual substitution of industrial-capitalism by financial-capitalism has created a new structure of power founded on transfer of management of democracy and human affairs to a political elite and privates institutions by legal means. “Citizen United” and “Glass Steagall” are perfect examples. “Citizen United” is a commoditization of vote and private enterprises are source of funding. Glass Steagall increase private companies access to public funding as a reward of their political contribution. In our democracy we can now think and structure Political investment. The Lobbying Index has now beaten the S&P 500 for 12 years in a row. Return on investment for corporate lobby is extremely high. ROI for oil, gas and fossil industry is 5900%. The 111st congress got $ 347 m from this industry and in return they got $20 billion in subsidies. Multinationals lobby for corporate tax break got 22,000% return on investment and big pharmaceutical companies got 77,500% (29).

The Powell memo is at the origin of this strategy of conquest of power by transformation of USA legal infrastructure. To reach the goal to select the next President of United States in November 2012 or later, GNR has reinvented itself to an organization of social engineering for the establishment of karl Rove “republican permanent majority”. The Powell memo was the starting point. A republican permanent majority will establish absolute power driven by excess of political power, legal vacuum and private interest. When Obama was elected 4 years ago, Senator Mitch McConnell was very clear. He stated: “The single most important thing we want to achieve is for President Obama to be a one-term president.” (October 2010). His statement was an expression of an irreconcilable antagonism. In his new book: "Do Not Ask What Good We Do: Inside the U.S. House of Representatives" Robert Draper reported that the republican lawmaker meet the night of Obama’s inauguration and structured a strong strategy to make him a first term President. According to Robert Draper, the following person was presents:

 Reps. Eric Cantor (Va.), Kevin McCarthy (Calif.), Paul Ryan (Wis.), Pete Sessions (Texas), Jeb Ensnarling (Texas), Pete Hoekstra (Mach), Dan Lofgren (Calif.), Republican Sens. Jim DeMint (S.C.), Jon Keel (Ariz.), Tom Coburn (Okla.), John Ensign (Nev.) Bob Corker (Tenn.), Newt Gingrich and Frank Lutz. Grover Norquist republicans were very clear in their political objective. Bipartisanship is no more guided by the principle of primacy of American people interests. It is guided by the single objective to defeat Obama in November 2012. A political battle without restriction was declared. Bipartisanship become dominated by a “Machiavielian” reality that Obama did not know how to manage. He nominated many republicans: Ben Bernanke has Chairman of the Federal reserve, Robert Gate was secretary of Defense, Ray LaHood, Sec. of Transportation, John McHugh, Sec. of the Army and Chuck Hagel, Co-Chair of Intelligence Board. He tries all his best to a collaborative relationship without success. His political efforts of positive bipartisanship were perceive has sign of weakness and make him more vulnerable. “Machiavellian” situation involve a technic of management of power that implies the treatment of political opposition as pure adversary. Preservation of power is one of the most important objectives and desire in politic. Our legislator has reach this objective with lack of term limit. Preservation of power for the president of United States of America is to be reelected to a second term. The strategy to reach this goal cannot be achieved without depreciation of the opponent political position and ideology. In Obama’s case the opponent is the Republican Party. But he adds political value to this party with his numerous attempt of collaboration. Accession power for a first term is different from maintenance in power for a second term. There two totally different realities. The second is a Machiavellian situation that need self-centered political tactic. Obama is a pure product of bipartisanship and he treated this party has a political partner in the interest of the nation. But, power has an intrinsic value: it is not to be share, but executed. If he treated the Republican Party as adversary in his first 2 years, his reelection could be less challenging at this point. A sitting president must hedge his political position all the time to be reelected, because he is building a record that could undermine this objective. In this process of balance of power, the President of United States should always manage to execute his power and have the upper hands in all situations. Obama did not realize that bipartisanship has reached his final stage of development with the disaster of Bush administration and his election as the 1^st black President. President Obama is himself a leader of bipartisanship; his personal political culture is a culture of bipartisanship. This is why he could not make serious demarcation from this obsolete political structure. The republican warning was very clear; bipartisanship is in the sphere of political antagonism. Obama wanted to change Washington, but Washington is the symbol of bipartisanship. If Washington is dysfunctional, bipartisanship is also dysfunctional. The resignation of Olympia Snow (Republican-Maine) from the US senate is the ultimate demonstration of this dysfunctionality. She stated: “There’s no longer political reward for consensus building.” When the republican party’s leading presidential contenders declare at a debate that they would oppose any deal that cut $10 of spending and raise tax by $1, she though the position was extreme. This position shows extraordinary antagonism and economic ignorance. Economic policy is simply reduced to cuts on public spending and refusal to raise tax, Reagan raise taxes. Republican presidents are the biggest spender and creator of big government.

Obama will be a transformative President, only if he can politically move beyond bipartisanship and initiate a new American democracy in the 21^st century. He has the capacity to initiate this fundamental transformation of our democracy in his second term. It will require at least 2 political initiatives: “cannibalization” of bipartisanship and opening the national political competition to other political parties like: American independent party, American Electe Party, Green Party, Libertarian Party, Peace and Freedom Party. In 2010, cannibalization of the Republican Party started with creation of Tparty, but it has fail. The process could start again. Human societies make extraordinary progress with innovation and new energies. We are in a propitious period for deep transformation of American democracy. But, We should not lost sight that the political architecture of bipartisanship has been very successful in the development of American democracy and industrial capitalism. In 1787, The Great Compromise established the House and the Senate so that both the smaller states in the union and the larger, more populous states could have equal representation. Since then the USA did not stop to prosper in bipartisanship. In 1945 Senator Vandenberg create bipartisan foreign policy. Senator Vandenberg said in 1952, “To me ‘bipartisan foreign policy’ means a mutual effort, under our indispensable two-Party system, to unite our official voice at the water’s edge so that America speaks with maximum authority against those who would divide and conquer us and the free world. It does not involve the remotest surrender of free debate in determining our position. On the contrary, frank cooperation and free debate are indispensable to ultimate unity. In a word, it simply seeks national security ahead of partisan advantage. Every foreign policy must be totally debated (and I think the record proves it has been) and the “loyal opposition” is under special obligation to see that this occurs.” (30). His success was follow by the Civil Rights Act in 1964, Food stamp program in 1977, Social Security reform in 1983, Welfare Reform in 1996, Obama’s cabinet in 2009. (31) The 1^st term of Obama is a period of expression of failure of bipartisanship by GNR. This failure is an ideological rupture in the Republican Party. Performance of the Obama administration has been affected by the failure of this  “political partner” more and more disconnected from the reality of the 21^st century. The Republican Party can be identified as a party of restriction of freedom, money, lack of diversification, close to innovation and expansion of ignorance. We should applaud Obama’s important realizations despite the antagonism in the political environment. Rational of democracy is not founded on antagonism, but diversity of political opinion and collaborative effort. Antagonism is a negative approach of political opposition, it undermine rules of democracy and democracy itself. Antagonism is a destructive strategy. His adoption by GNR has created disequilibrium in the symmetry of bipartisanship and sterilized the political structure. Since the election of Obama as President of United State, GNR express only one priority: win November 2012 presidential election. The consequence of this political objective is a subordination of interest of democracy to the absolute desire of the republican leadership to conquer power. The strategy was first founded on a tentative of delegitimization of the power Obama. In the culture of conqueror of power, no political power can be legitimate. Perfect democracy is not the right way to obtain power for conqueror of power. This is why restriction of rights is key in the political dynamic of Romney’ agenda.

Challenging the legitimacy of a sitting President is a political and legal act of questioning the legitimacy the electoral process and universal suffrage that brought him to power. This is why they have so much attention on his birth certificate and  origin. GNR have not succeeded to delegitimized Obama, but their project has gain momentum with the US Supreme Court decision “Citizen United”(2010). The decision is a realization of Powell memorandum and a legal precedent: “Under our constitutional system, specially with activist-minded Supreme court, the judiciary may be the most important instrument for social, economic and political change.”(Powell memo). “Citizen United” change the nature of American democracy

and fracture our political system. The decision advanced a political agenda to destabilized American democracy. World peace will be affected if American democracy is destabilized. “Citizen United” is preceded by the US Supreme Court decision to select G.W. Bush as President. With 2 keys victories in the highest court of the nation, conquest of power by legal means is making progress but will not defeat democracy. The competitive race between Obama and Romney is an expression of this reality and could realize the ultimate political risk: vote of sanction. This vote is not an approval of the political agenda of the president opponent. It is executed against a sitting President has a disapproval of his performance. By comparison, Romney-Ryan political agenda is worst than Bush, but he is well position in this race because the vote of sanction is building against Obama. Romney’s political agenda is one the most retrograde plan in modern history. It is centered only on cuts and privatization of social security, postal office, health care, education, outlaw abortion, diminished our right…Ect. His plan is an abandonment of responsibility to lead the American people to prosperity. Republican antagonism toward PDT Obama is also an abandonment of responsibility. Obama’s plan for the future may not be perfect but it is clear and coherent. He leads our nation in peace, better position in the world stage; make progress in health care and safe our economy from total collapse. But, he can do much better in his second term. Possibility of vote of sanction gives an enormous advantage to his opponent: he doesn’t have to demonstrate a clear political plan or coherence. This is what makes the complexity of this election; in moment of severe human crisis the choice of a leader can be completely irrational. Romney’s campaign is defined by lack of specificity, ignorance, tergiversation and understanding of the live of Americans. His own personality does not fit with average American. But, he is competitive because his strategy is to capitalize on Obama biggest political risk: vote of sanction. In this vote, citizen of the republic vote against a sitting president, not for his opponent. Romney is also competitive, because the Obama campaign has not put in place a strategy to hedge Obama’s position against the risk of vote of sanction. More display and demonstration of his administration accomplishment could help hedge his political position. His administration tax cuts is one of the many examples: “According to the Tax Policy Center, Federal taxes are lower than at any time since 1955. Obama has now reduced taxes by more than any president since Dwight D. Eisenhower”(32). His administration created 5 million jobs, when Bush was loosing jobs. The only moment when, Americans saw and appreciate the Obama administration accomplishments is when President Bill Clinton spoke at the 2011 Democratic convention. Presidential accomplishment should be permanently display in front of the eyes and ears of Americans.

The political will to conquer power is different from the political will of acquisition of power. This is the fundamental difference between Democrats and GNR in the presidential contest of November 2012.  Obama and the Democratic Party are playing by the rule of access to power base on consent of American people to delegate political power. The republican leadership plays by the rule of conquest of power base on acquisition of power with limitation of American people consent to delegate power. In democracy, individual sovereignty accedes to power with universal suffrage. Acquisition of power is made with restriction of universal suffrage. November 2012 will be a confrontation between the right of American people to exercise power and a new right to buy the exercise of power. It will be a defining moment of the future of our democracy. Democracy is not a commodity and cannot be bought. Restriction of right to vote and women rights will have a boomerang effect and open new frontiers for expansion of our rights. American people have been in this situation before and democracy has won. Tentative of degradation of our democracy in this presidential election is an opportunity to reinvent our political system in the digital period. New political consciences are emerging in this new period. Conquest of power by restriction of rights to vote is creating ruptures in American democracy. But, political rupture should not an element of advanced democracy; it is a phenomenon of pre-democratic society and democracy at an early stage of development. Political ruptures are moment of

transition from lower state to higher state of democracy. It can be very painful and long. American revolution and the civil right movement are examples of political rupture. Both are defining moment of progress of American democracy and emergence of exceptional leaders like George Washington, Thomas Jefferson, and M.L. King. Advanced democracies are beyond painful period of formation of the state. Human societies are now defined by innovation and our capacity to move possibilities beyond known boundaries of human intelligence. The interaction between biosphere and digital sphere has create a new world order and

technologies. Constant innovation trigger dynamic qualitative and quantitative transformations in advance democracy. Our new challenge is to manage theses transformations. Human beings now have a digital imprint and a digital live, digital democracy is being created, the web has destroyed physical boundaries and connect human consciences and we are living longer. But, the ideology of bipartisanship is not a reflection of these transformations in the 21^st century and new possibilities of production of “made in America”. Americans are exploring planet Mars, creating driverless automobiles and very soon television and computer will be totally integrated. The future is now and the world is defined by speed. We are leader in world innovation, this is why economic policy centered on past failure and lack of innovation will not lead American in management of future. Cuts are incentives; they are not economic driver and will not recreate American prosperity in the 21^st century. We are a country of wealth creation and innovation. Precedent model of American industrial-capitalism have never been base on tax cuts. Growth in American capitalism has never been created by good will of American investors. This is pure illusion, but our country has been managed by this fiction for more than 30 years. It is one of the reasons why our position is diminishing in the world competition, in 3 to 5 years China will be the world number one economy. Citizen who benefit from tax cut, no matter what is their level of income contribute the development of our society. But, their contribution is only one of the many elements of the complex structure of capitalism. It is a dishonesty to make Americans believe that tax cuts will solve our problem. Bush tax cuts fail and create the great recession. Capitalism is a process, a dynamic, maturation, solidarity, unity and peace of coordinated human activities. The result is construction of strong and coherent social fabric. This is what defines the predictability of human activities in capitalism. Cuts will destroyed this predictability by weakening our social fabric. Democracy is sustained by continuity of the state, institutions and democratic processes. Continuity is an essential factor of stability; it is an uninterrupted connection in time and space of coordinated human activities. But, this process will be disrupted by political rupture cause by conquest of power. Voter suppression, starving the beast, cuts in public spendings, restriction of women right, moneytization of vote will destabilize coordinated human activities and continuity of the state. We are in a paradox of American democracy. Degradation of democracy is creating what Machiavelli call “new principality”. This degradation of American democracy is a reflection of failure of our economic system. Financial-capitalism is a result of degradation of industrial-capitalism and an acquisition of power. Financial capitalism is also a conquest of power by destabilization of our legal infrastructure with deregulation and repeal of Glass Steagall. As an industry non-productive of wealth, Wall Street has successful made an acquisition of “wealth of nation”. Their risks are hedge with taxpayer’s money. This acquisition of economic and financial power is also executed by a small group of people. The new principality of Machiavelli is build with money and inequity.

Bush vs. Gore decision by the US Supreme Court is a historical precedent of acquisition of political power. Recourse to legal decision to select the President of USA demonstrates serious weakness of the democratic process. Substitution of universal suffrage by legal decision has created a new order in American democracy. Precedent can be repetitive; this is why it is dangerous. We should not be surprise if the US supreme court is again challenge by a new case that oppose Pdt Obama to Mitt Romney. All the evidences are being put in place for this possible legal confrontation. Litigation has already begun in courts around the country to stop voter suppression and the risk of a fraudulent presidential election is very high. In 2000, democracy was challenge in court for presidential election, in November 2012 the challenge could be bigger. It could be about presidential election, right to vote and women rights. When right to vote and results of election are litigated in court of justice, democracy is in danger. Litigation of democracy is a failure of bipartisanship. It is not in the interest of the United State to continue in this direction. Our standing in this world of globalization will loose a lot of value if we are identified has a country not capable to organize fair and transparent elections or guarantee the right of his citizen. The danger is greater for world peace if we disrupt our country’s social stability with restriction of rights. The international community starts to express concern about American democracy. Since 2002, the US government has invited international observers to watch our major national elections. Forty-four members of Organization for Security and Co-operation in Europe (OSCE) will be presents during November 2012 elections. But this time, Texas State Attorney General Greg Abbott is threatening to arrest them if they entered a polling place.

The presidential elections in November 2012 will be the 1^st presidential political contest since “Citizen United” in 2010. Republicans would like to see less Americans at the polling place and democrats want to see more. This is a very unique characteristic of republican ideology and paradox of American democracy. The impact of this ideology of fewer votes is visible in our country voting record. We have one of the lowest rates of vote in industrialized nation with 47%, but the boomerang effect of monetization of vote could bring more American to the voting boots. Right to vote is a human right that cannot be destroy with money. The American people will fight again and democracy will win. Teaching of our precedent model of instauration of popular democracy will make it easier. Conquest of power is always executed with instruments and strategy incompatible with democracy: money, polarization of judiciary system, restriction of early voting and polling hours…Ect. Our democracy is now defined by hybrid rule: “one person-one vote” and “more money-more votes”. The goal of this new rule is to select Mitt Romney as the next President of USA.  Capitalism can perform well only when democracy is popular. This is not the case of our democracy in the second decade of the 21^st century. Capitalism strengthens democracy with harmonization and satisfaction of human interests with different nature. Human society is defined by presence of the interests of a mother who want to educate her child. It is different from the interest of the researcher working on new discovery. Industrial-capitalism in America was very successful in satisfaction and harmonization of different interests. Democracy and capitalism are strong, only if our human organization can satisfied the needs of maximum citizen. This objective was an American reality. But we lost this success with a series of very bad decisions like transformation of industrial-capitalism to financial-capitalism. We are now in a period of cuts, punishment of American people or disatisfaction of needs. The mother who want educate her child may not reach her goal because of cuts in our education system. We are now building more prisons than schools. Since 1980, we saw a decrease of 13% in higher education spending in California, but an increase of 436% the prison system (33). Education fund is dropping around the country, Arizona, California, Hawaii and South Carolina cuts more than 20% since pre-recession. Thirty states are funding schools at levels lower than they were in 2008 and 17 states have cut funding by more than 10 percent (34). A less educated population cannot build performing capitalist system and our position as world leader will diminish. This is one of the many disequilibriums create the economic policy of cut. In recent study, Teresa Ghilarducci, a professor of economics at The New School indicate that 75% of Americans nearing retirement age will have between $16,034 and $30,000 to live and a daily food budget less than $ 5 a day. This data shows the failure of our pension system and financial capitalism. Teresa Ghilarducci’s study is a demonstration of an important disequilibrium in our society. Our incapacity to provide safety to retirees is an indication of moral and economic depreciation. Capitalism is humanism, not a system of creation of existential risk. Financial-capitalism is destroying one of the finest products of capitalism: strong and reliable pension system.

When human organization demonstrates total incapacity to manage with safety and success human live, its economic system has failed. Retirement is a very important moment of the live of every American. It is a crucial moment of conclusion that deserves total safety and protection. In our society, this moment should not be define by poverty and insecurity. The failure of our current retirement system is a moral failure; we have the moral obligation to protect the live of those who have worked for the success of our Union. Capitalism is a system of protection of wealth of nation, not a system of speculation of wealth. Industrial-capitalism managed our retirement system with success because of protection of “wealth of Nation” and high moral standard. Financial-capitalism does not protect this wealth, consequently endangered human society. We have the moral obligation to protect “wealth of nation” the same way we must protect the safety of our nation and its citizens. Wealth production is an important function of capitalism, but protection of this wealth is essential to its growth. Our moral obligation is to protect this wealth against speculation or we will endanger human existence. Capitalism is not limited to a simple process of generation of short-term profit or privatization. The convergence of these 2 elements has created financial-capitalism and deployment of private interests excess.  Excess of human being is destructive in politic and entrepreneurship. Sub-prime loan that trigger the great recession is an expression of this excess and deregulation is a road map for its execution. Excess of private interest is incompatible with capitalism and excess of political interest is incompatible with democracy. Financial-capitalism is the economic system of private interest excess defines by debt, inequity and speculation. Financial institutions are making record profit with use of flash trading, hedging their risk with taxpayer money but American are in deep crisis. This imbalance is not a characteristic of capitalism but define sub-capitalism. Privatization, securitization, deregulation are the cornerstones of this new form of capitalism in America. This is not how America became the world number one economy. Privatization, securitization and deregulation are all legislatives decisions that exclude American people in the process of wealth creation. It is not possible to develop any form of human organization with exclusion of population. Capitalism is a process of inclusion of all assets of human society. This is why capitalism is humanism because human being is the center of its development. Process of wealth creation is a phenomenal inclusion of creativity, entrepreneurship, labor, capital, social stability, democracy, culture, history, intelligence…Ect This is how capitalism was created. Short-term profit and privatization do not create wealth in financial-capitalism, it extracts wealth from the American people. The banks bailout was an extraction of wealth from the American people. Strong moral values and ethic are the backbone of inclusion in capitalism.

At the end of the 20^th century, the combination of Privatization, securitization, deregulation and 'Starving The Beast' has put American economy on the descent.

Allen Greenspan articulated the theory of 'Starving The Beast' in 1978:"Let us remember that the basic purpose of any tax cut program in today's environment is to reduce the momentum of expenditure growth by restraining the amount of revenue available and trust that there is a political limit to deficit spending." (35). Citing Greenspan's testimony, conservative columnist George Will wrote about Starving The Beast on this term (July 27, 1978): "The focus of the fight to restrain government has shifted from limiting government spending to limiting government receipts". The goal of this economic policy is to depressed government revenues, put fiscal pressure on this institution and execute spending cuts. There is no ambiguity in GNR attempt to depreciate the nature of our government. But, when government becomes insignificant it creates disfunctionality in democracy and weakens capitalism. Republicans obsession with government is driven by politisation of this institution. Transformation of government to a political adversary is an ideological marketing to depreciation the 3 powers of our democracy and open more doors for successful conquest of power. After more than 40 years of politisation of government, “anti-government” is a key ideological position in American political culture. It fuel weakness in capitalism and democracy. Modern democracy all over the world has been challenge by the bureaucracy of government. We should precise that republican obsession with this institution is not limited to the bureaucracy of government, but they want to make it disappear. Government bureaucracy is inherent to management of human society. Government bureaucracy and overspending is part of the daily challenges of capitalism. It is an element of imperfection of the system and need constant improvement, especially in the dynamic of transformation and speed of the digital world. Emergence of this new world gives us an enormous possibility to create Efficient Government. Much sophisticated tools for rational management of government and other organs of human society exist. But, the economic policy crafted by “Starving The Beast” is not aim at the creation of Efficient Government. “Starving The Beast” is a political agenda to deprive American people the means to manage their own destiny. “Starving The Beast” cut the tree branch on which we are sitting on. This economic policy is an illusion and it has fail. But it is the direction that Romney would like to take America and we are experiencing a manifestation of sub-prime syndrome. Precedents of Romney’s agenda is the fail economic policy of Allen Greenspan inspire by the illusion of the mediocre novel of Ayn Rand, “Starving the Beast” and Bush policy.

Grover Norquist Republicans strategy to conquest of power in November 2012 is a corollary of political strategy in democratic election. It is a succession of new series of legislative and judicial interferences to neutralize the universal suffrage. The voter ID law is a corollary of universal suffrage with the goal to increase low rate of vote in USA. In the develop world only 3 countries have less than 50% of voter turn out. With only 47% (It is not Romney’s 47%) of participation the USA is the 2nd lowest country, South korea being last (36). Lower rate of vote is one of the most important objectives of Karl Rove project of instauration of “permanent republican majority” in USA. It devalues ​​democracy and triggered a process of disintegration of our political system and dynamic of conquest of power. In 1980, the co-founder of the Heritage foundation, Paul M. Weyrich stated:

“I don't want everybody to vote. Elections are not won by a majority of the people. They never have been from the beginning of our country and they are not now. As a matter of fact, our leverage in the elections quite candidly goes up as the voting populace goes down." "We are different from previous generations of conservatives. We are no longer working to preserve the status quo. We are radicals, working to overturn the present power structure of this country." Paul M. Weyrich statements are perfect definition of anti-democracy in the framework of execution of Powell

memo. Reduction of the rate of vote is a neutralization of principle of delegation of

power which is the foundation of democracy. By neutralizing the universal suffrage,

conqueror of power initiate a process of restructuring the political power and

established a new order. Therefore management of democracy ceases to be an affair

of the people to become an affair dominated by private institutions and small group

of private individuals. The US supreme court decision “Citizen United” is a legal

legitimation of this anti-democratic transfer. November 2012 will be a test for this

dynamic of neutralization of the universal suffrage. The voter ID engineered by GNR

will prevent a 80 years old women to exercise a civic duty she have been doing for

more than 50 years. In Philadelphia Mayor Michael Nutter indicated that up to

 43 % of voters may lack a valid form of state-issued identification, therefore will not

be able to vote. In this state the case of a 93-year-old women named Viviette

Applewhite is a perfect example. She have been doing her civic duty since 1960, but

under Pennsylvania’s new voter ID law, Ms. Apple white will not be able to

vote. We are in common law, previous legal acts should be enough to prove the

legitimacy of future acts. GNR has initiated this legislation by arguing that there is a

lot of voter fraud in our democracy. But, the argument is not supported by any

serious evidence. Historically our democracy was very transparent. Electronic

voting machine is the serious danger to the transparency of our democracy but

bipartisanship has failed to address the problem. Results can be manipulated and

they are manufactured by private entity. Expression of suffrage universal should not

be manage by private institution looking for profit.

Voter ID law will have a boomerang effect, and trigger an opposite effect if the Democratic party show strong organizational skill to energized the American people, register the maximum voter and win in November 2012. In a long term, this legislation could be one of the key elements for renewal of American electoral system in the 21^st century. Bush-Gore was a historical moment to put an end to the anachronism of the Electoral College, but bipartisanship culture of immobilism did not show strong capacity to initiate this major transformation of our democracy. Sixty-two (62%) percent of American are against the Electoral College. Winning a presidential election in United State of America with 270 electoral college votes or loosing with the majority of popular votes is not viable in the 21^st century. This situation happened 3 times in our history and it is a possibility in November 2012. The division of the country could give us a 269-269 result. In this scenario, the 12th Amendment to the Constitution says the House of Representatives chooses a president from among the top three vote-getters. Many states start to reform the Electoral College. In 2007, Maryland became the first state to enact state legislation to guarantee the election of the President by popular votes. We lost the 1^st decade of the 21^st century and we are in the same direction in this second decade. The 1^st decade was a failure economic policy of a republican president and creation of two wars that cost American taxpayer more than $3 trillion. The second decade is an ideological failure of the Republican Party caused by an antagonism against Obama and abandonment of management of American people affairs. The progressive destruction of the middle class in America is our biggest lost in the last 4 decades. The median household income fall from $72,956 in 2001 to $ 69,487 in 2010 (37). Success of industrial-capitalism was defined by an expansion of the middle and increase of buying power. But, apparition of financial-capitalism and excessive private debt has created lost of buying power, develop extreme inequality: 50% of Americans only own 2,5% of the country wealth, 0.5 % of investment assets and 73% of the debt is own by the bottom 90% of Americans (38). CEO pay has increase 300% since 1990 and earns more than 1800 times what the average worker makes. In 2010, their compensation grew 28% and went down to 15% in 2011.

(39). The Economic Policy Institute indicate: “From 1978 to 2011, CEO compensation increased more than 725 %, a rise substantially greater than stock market growth and the painfully slow 5.7 percent growth in worker compensation over the same period”. Workers in private industry, meanwhile, saw their compensation grow just 2.1%. This is a consequence shareholder ideology in financial-capitalism. It is a limitation of free market capitalism to satisfaction of immediate and short-term interests and stock market manipulation. Financialization is a process of creation of disproportionate growth of deregulated financial sector centered on short-term financial return. The disproportionate growth generates synthetic wealth and uncontrollable risk. Derivative market is more than $ 700 trillion. Capitalism is not a faculty to create fictitious wealth, but a capacity of real wealth production. This contradiction is very disruptive; it is an opposition between productivity and short-term financial return. When productivity is dominated by short term financial return the system underperform. This is the reality of American economy. Financial-capitalism has developed a hypertrophy of financial sector in our economy, subordination of productive industries and ruptures in the functioning of our political system. The solution to this hypertrophy of financial sector is renaissance of industrial capitalism. Wealth is not created with daily swing in the stock market and performance of flash trading. Maximization of shareholders value is not maximization of “wealth of nation”. Shareholder ideology develops a process of synthetic wealth creation and marginalized the stock market from the dynamic of real wealth creation. The market is a key element of capitalism and his role is vital to development of investment. Capitalism is a complex process of value adds in human interaction. But, the market-computerized system should not be an anti-thesis of this humanism. The future of humanity will be defined by our intelligence to created a symbiosis between man and computer system. But, we cannot submit “wealth of nation” to speculation of the market. This is why financial-capitalism endanger human organization. is

In light of poor performance of republican presidents, history demonstrates that our economy is better managed by Democrat Presidents. PDT Bill Clinton highlighted this fact very well in his speech at the 2011 Democratic convention. Bloomberg government (BGOV) barometer shows that since Democrat John F. Kennedy took office in January 1961, non-government payrolls in the U.S. swelled by almost 42 million jobs under Democrats, compared with 24 million for Republican presidents (40). That’s an average of 150,000 new paychecks a month under Democrat Presidents and 71,000 per month under Republican Presidents.

Democrats held the presidency for 24 years compared with 28 years for Republican. Investing $1,000 in a hypothetical fund that tracks the Standard & Poor’s 500 index over the past 50 years would have returned $10,920 when Democrats held the White House. The return when Republicans are in power should be $2,087. Annualized returns were 11 % for the Democrats, 2.7 % for the Republicans. Real GDP grew faster under Democratic administrations with 4.1 % and 2.7 % for Republicans. Under Democrats, the real median income over the past 50 years grew at 2.2 percent; it is 0.6 % under Republicans (41). Since January 1961, federal, state and local government employment grew by 7.1 million under Republican presidents and 6.3 million when Democrats were in the White House. (42) In this political rivalry, Democrats have not been effective to demonstrate to the American people these very important differences of economic performance with the Grover Norquist Republican. This is a big weakness for Democrats, they need better ideological marketing machine. When Obama came to power after Bush, our economy was loosing 800 000 jobs per month, now we are creating new jobs every month. The automobile industry, symbol of success of American industrial-capitalism have been save from bankruptcy, we have a safer country with the death of Ben Laden and we are ending the war. These are important achievements of Obama’s administration even if unemployment rate is high in normal standard. If Obama is reelected with 7.9%, he must turn to FDR for inspiration. During this 1^st term of Obama, abandonment of responsibilities to manage the affairs of American people by GNR was a consequence of bipartisanship failure to created healthy political environment for economic growth. Bipartisanship is now a new political risk since we lost our triple A statute. Political risk is new in advance democracy like the United State Of America. It is an indication of weakness of bipartisanship and a necessity to reinvented new political system in the 21^st century. Political dualism is the center for development of irreconcilable antagonism. Dualism generate a process of identification of the other party as the most important obstacle to power and consequently develop a desire for total elimination of this party as a mean of conquest of power. In the political culture of GNR, the Democratic Party is an obstacle to conquest of power and the right to vote for all American citizens is the second obstacle.

GNR would like to win the White House in November 2012 by taking the position of conqueror of power and capitalizing on vote of sanction. Obama has contributed to the creation of this political risk and created the conditions of tough political competition for his reelection. It was clearly visible in the beginning of his 1^st term that his economic performance would not meet the expectation of the American people. The appointment of Tim Geithner as Treasury Secretary and Lawrence Summers Director of  National Economic Council (NEC) was a good indication. Both are architect of deregulation and transformation our nation to a nation of debt. These 2 appointments demonstrate Obama’s political will not to use the previous successful model of FDR. It was a bad choice of economic policy, this why unemployment still high.

The race between Romney and Obama is very competitive. Bipartisanship has divided our country in multiple dualism: republicans and democrats; big government and small government; private sector and public sector. We became more republicans and democrats than Americans. This culture of division of Americans into two camps stifle innovative political thinking and creation of new innovative political organization. If we want to keep our position as world leader and improve the well being of Americans, our nation political structure must be innovative and open channels of new political energies. A bipartisanship solutions are not anymore enough to solve our nation problems and selecting Romney as PDT of United State of America will make it worst. There is no difference between the destructive policy of Bush and Romney’s political agenda. The republican candidate political project will be more destructive than Bush policy. The project of privatization in a future Romney administration will be extended to medicare, social security, US postal services…Ect. It will be an installation of conqueror of power, continuation of dismantlement American social fabric by commoditization of our live. The means for elementary operations of a coherent society will disappear with implementation of “Starving The Beast”. Capitalism cannot be productive in society with out social cohesion and solidarity with cuts and restriction of women right.

It is the important to focus our attention to the effective presence of the republican candidate in this race, despite many political blunders and anti-democratic positions. One might ask……… how American citizens can identify with a policy that has caused so much pain and suffering? What is the rational in the support of a policy that destroy the American dream? The response is: development of a vote of sanction against Obama. In moment of crisis population can vote against a sitting President because they are looking for better solution. Political blunders have been wide spread in the Republican Party, but did not stifle Romney’s momentum. Romney campaign is full of Political blunders: “I like to fire people”, “Binder full of women” and 47% comment are few examples. US senate candidate Rep. Todd Akin scandalous comment on “legitimate rape” is another example. But, his position represents the real political thinking of the GOP as conqueror of power. His statement is in the logic of “Sanctity of Human Life Act” a bill he sponsors with republican vice-presidential candidate Paul Ryan. Conquest of power transforms individual sovereignty from citizen of the republic to subjects submitted to the domination of the conqueror. Control of women sexuality with “Sanctity of Human Life Act” is an element of this domination. Republicans tentative to deteriorate women rights and right to vote shift our national priorities of economic growth to a project of criminalization of woman sexuality and degradation of human rights. In 2007, Rick Berg North Dakota republican senate candidate voted to make abortion in case of rape and incest carry life sentence. Rick Berg was speaker at the Republican National convention on August 28^th, 2012 and ironically had the courage to criticize Todd Akin comment a few weeks earlier. It should not be a surprise in the future if the ban of abortion will be a reason to increase women healthcare cost and pregnancy view as medical risk. We are in the dynamic of development on GNR  financial-capitalism characterized by “commoditization” of our live. These positions are expression of a political retardation. Like any conqueror of power, the objective of the republican presidential candidate is not centered on the well-being of American or perfection of our democracy. Romney’s conquest of power is to cease a historical moment to grab political power, dominate American people and satisfied short-term private interests. This historical moment is define by the possibility of vote of sanction. Denial of global warming, science and evolution is another expression of political retardation of the elite of GNR. The subject is conspicuous by its absence in the electoral campaign. But, it is one the major challenges of human conscience in the 21^st century. As human beings, we are the most self-destructive species in our biosphere, but we have morale obligation of preservation of nature. Global warming is developing a new risk in USA and around the world: existential risk. The extinction of a variety of animal species has started, and human being will be next if do not find a solution to this universal problem. Development of global warming is a failure of intelligent organization and capitalism. The phenomenon is an opportunity for a redefinition of capitalism in the 21^st century. Free market is a human adventure to build better society. By nature, it develops with emergence of imperfections and unpredictable consequences. Since the shift from agrarian economy to the development of dynamic of industrial revolution, capitalism has demonstrated an extraordinary ability to overcome imperfections. Throughout history we experience war, famine, political instability, natural disaster, but capitalism has always improves and became a better economic system. This strength of capitalism is due to the fact that the system is a human process. Human being have an extraordinary capacity adaptation and innovation. Global warming and existential risk are not a handicap to a new level of maturation of capitalism, but a warming to human consciousness. The moment is crucial; we should be more American, less democrat and less republican and turn global warming to an opportunity. Our focus should not be on satisfaction of short-term private interests, they do not always coincide with long-term interests of capitalism and human development. Global warning is cause of private interests excess and failure of human conscience. Destruction of biosphere is not an objective of capitalism, but a consequence of the system. This economic system is founded on long-term process of construction of human society. In this crucial moment, elimination of existential risk should be our priority. Our leader should have the courage to address this very serious human challenge and help build more efficient free market capitalism. Danger of existential risk became greater when GNR elite denied the existence of global warning and science. The position is expression of ignorance not at the image of USA. Hurricane Sandy is a manifestation of global warming and existential risk. But, the damage of this natural disaster will not be solve by republicans political clientele in the private sector like Kosh brother or Sheldon Adelson. It will be solve by us as organize human society. We have the responsibility to protect our society in all circumstances. Only institutions that govern us can assume this responsibility. The nature of this responsibility makes government a very unique institution to respect. This dimension of management of human affairs is beyond profit and private sector creation, it about human existence. Challenge to human existence can only be solve with human solidarity not partisan politic.

 We are a country that sent a man to the moon and we are define by knowledge and science. We cannot manage Free market capitalism with ignorance. But, republicans conqueror of power is not define by knowledge. They do not have any interest in power of knowledge; only instruments of acquisition of political power can attract their attention. The domination of the Republican Party by the wealth of small group of people deteriorated the democratic nature of this political organization. It will not be possible for the USA to face the complexity of challenges in the 21^st century with an ignorant political elite. Ignorance is not an American value; it is the ideology of GNR elite. America is an economic and knowledge super-power. Our extraordinary capacity to create, manage and develop knowledge is the backbone of our success. Benjamin Franklin created the Lightning Rod in 1752 and the USA issues its first patent to William Pollard of Philadelphia in 1790. In  

1844  the creation of Telegraph by Samuel F.B. Morse was the beginning of a new era in communication. Christopher Latham Sholes invented the Typewriter in 1873. In1876 we entered a more sophisticated period of communication,

Alexander Graham Bell patents his telephone and 3 years later Thomas Edition invented the electric light bulb in 1879. The J.P. Holland torpedo boat company created the submarine in 1898 and Henry Ford created the Ford Model T car in 1908. Philo Farnsworth invented television in 1927. Dr. Albert Sabin develops a polio vaccine in 1957 and in 1969 an American Neil Armstrong becomes the first human to set foot on the moon. President Kennedy’s prediction was correct. He predicted that the United States would put a human on the moon before 1970. This few historical events demonstrate the extraordinary contribution of USA to world knowledge and the development of science and technology. Again, we transform the world in 1962 with the creation of the Internet. This creation has been follow by the extraordinary success of the digital sphere and emergence of new technology. All these success are also success of the government of the republic. Politization of government is an extraordinary ignorance and divide the American people.

 Severe crisis in human organization define new priorities and possibilities, this is why the sub-prime crisis is an opportunity to create better capitalism. We are in the 21^st century, period of extraordinary development of knowledge and expansion of capitalism around the world. The revolution in the Middle East is a defining moment of expansion of capitalism and knowledge. In this region of the world, 400 million people are in the process to enter real free market capitalism. The great recession is a moment when the center of free market capitalism is shifting from the West to Africa, Asia, Eastern Europe, Latin America and Middle East. John Naisbitt first described this phenomenon in his book Megatrends in 1982. The boundaries of free market capitalism are expanding and emerging thinking will shape our future.

 The USA capacities of wealth creation are better today than 50 years ago and we are on top of creation of new technology and innovation. The digital sphere is a multi-trillion dollars market and sphere of new possibilities for humanity. We are the country of APPLE the world most valuable company estimated at more than $ 600 b. We are also the country of Microsoft, HP, IBM, Facebook, Twitter, Dell, Google, Yahoo, Cisco, American Express, Visa, …Ect.

Democracy is a permanent fight. On November 6^th, if vote of sanction is realized, democracy in United State of America will be transform to Michiavelli’s “New principality” and political power will be conquered by the Prince. Our country’s economic policy will be guided by sub-prime syndrome. But Conquest of power has an ephemeral nature and democracy can’t be bought. Obama’s campaign incapacity to edge political risk of vote of sanction and development of sub-prime syndrome are one the most important political lesson of this political competition. Transformative President needs two terms. A victory of President Obama, will be a victory for democracy. PDT Obama’s second term should be a moment to realize American industrial renaissance and a moment to be more Americans, less democrats and less republicans.

Aboubacar Sissoko

Author

newworldcapitalinc@gmail.com

                                                                                        NOTES

1-mises.org- The Sad Legacy of Ronald Reagan by Sheldon L. Richman Volume VI, No. 10, October 1988

2-www.metropolismag.com

3-www.GAO.gov/ Federal Reserve System, Opportunities Exist to Strengthen Policies andProcesses for Managing Emergency Assistance

4- addictinginfo.org

5- Gallup, September 14, 2012

6- marketwatch.com/2012-05-22

7-www.rooseveltinstitute.org- The crisis of wealth destruction, By Henry C.K. Liu - April 5, 2010

8- BETTER MARKETS:THE COST OF THE CRISIS - Sep 12, 2012

9- The American Prospect, “The Plight of American Manufacturing” - RICHARD MCCORMACK DECEMBER 21, 2009

10-http://www.tradereform.org

11-http://www.tradereform.org

12- Mother Jones - It's the Inequality, Stupid-By Dave Gilson and Carolyn Perot | March/April 2011

13- David Moss, “An Ounce of Prevention: Financial Regulation, Moral Hazard, and the End of ‘Too Big to Fail,’” Harvard Magazine, September-October 2009

14- www.huffingtonpost.com/2012/05/07/)

15- Grover Norquist Republicans

16-www.emachiavelli.com - Machiavelli's The Prince (1513) Chapter VII: Concerning New Principalities which are Acquired either by the Arms of Others or by Good Fortune.

17- McKinsey Global Institute, Debt and deleveraging: Uneven progress on the path to growth January 2012.

18-www.creditwritedowns.com

19-www.usgovernmentrevenue.com

20- Congressional Research Service

21- www.levin.senate.gov/newsroom- "Offshore Profit Shifting and the U.S. Tax Code."

22- blogs.cfainstitute.org

23- How to predict the next financial crisis? Steve Clemons and Richard Vague-2012

24- standardandpoors.com- August 5, 2011

25- Wells Fargo: The U.S. Debt Downgrade: Where Do We Stand One Year Later?- Marc A. Doss, CFA®, CFP®, Regional Chief Investment Officer, Peter Wilson, Senior Fixed Income Portfolio Analyst
Peter Donisanu, Global Research Analyst- August 2, 2012

26-www.treasury.gov

27-www.treasury.gov

28- seekingalpha.com, MICHAEL J CLARK,

29- www.zerohedge.com

30- Partnership for a Secure America – PSA

31- bipartisanpolicy.org.

32- politicususa.com - Barack Obama Is Now The Biggest Tax Cutter In American History-Jason Easley-April 17th, 2011

33-34-Winners and Losers: Corrections and Higher Education in California

35- Forbes, Tax Cuts And 'Starving The Beast'-Bruce Bartlett, 05.07.10

36- OECD, 2011 REPORT

37- Pew research center

38- businessinsider.com

39- thinkprogress.org

40- US Labor Department

41- Politico-Facts show Democrats are job creators - JENNIFER GRANHOLM, May 12

42- Bloomberg-Private Jobs Increase More With Democrats in White House, By Bob Drummond - May 7, 2012).

Germany’s court decision and The European Stability Mechanism (ESM)

Monday, September 10, 12

Germany’s court decision and The European Stability Mechanism (ESM)

September 12^th, 2012, will be a constitutional test for

The European Stability Mechanism (ESM) 500 billion-euro ($639 billion) bond in Germany’s Federal Constitutional Court. The future decision of the High Court in Germany will be an important jurisprudence in the search of healthy solution to the euro zone debt crisis. The court will rule on the constitutionality to transfer national sovereignty to Brussels. The EMS bond issuance is a violation of Germany’s parliament constitutional authority over the budget of the most powerful economy in the Euro zone. Argument of the opponents to this bond is founded on this key element. This is the heart of the euro crisis; a viable monetary union cannot exist without preliminary transfer of national sovereignty to a supranational institution. The new dynamics to create a banking and fiscal union can not be achieved without transfer of national sovereignty. The decision that will be taken on September 12 will open a new chapter in this crisis: exercise of national sovereignty to help or prevent partial or total transfer of sovereignty. The decision to create a single currency was an initiative of European leaders, but the creation of banking and fiscal union cannot be effective without the approval of national parliaments. Now, the voice of the European population will be heard in this process of unification that marginalized them since the beginning. But, it is probably too late. The fabric of European unification has been torn by an exacerbation of the crisis, deep political divisions and suffering of European population. These consequences will make Mario Draghi’s “irreversibility” of the euro a pure illusion. An injection of more debt in European economy will not solve the massive private and public debt in the monetary union. The execution of austerity measures with a strategy of “cut and dry privatization” is sterile. Buying bonds will not solve the massive (22.6%) unemployment of the youth in the Euro zone where more than 18m people are unemployed. An economy with out clear and define policy to manage the future of his youth is a system in danger. Human capital is the most important capital in any society, specially the youth. When this important capital is depreciated by a series of austerity measure, debt and humiliation, the possibility of collapse of human organization became a reality. The euro crisis is structural; transformation of industrial capitalism to financial capitalism was one of the biggest mistakes of the 20^th century. Industrial capitalism is a system of wealth creation in a long process of maturation of social cohesion and solidarity, but financial capitalism created a phenomenon of human subordination by creation of massive debt and short-term profit. Healthy economic growth and human development is not possible when debt is a key driver of human organization. The euro could survive, but only if European leaders will have the courage or audacity to solve the structural problem of the Eurozone. A new bond issuance will only postpone the collapse of the monetary union and paid back private lenders.

Aboubacar Sissoko

ELEMENTS OF SUB-CAPITALISM (ONE)

                  ELEMENTS OF SUB-CAPITALISM (ONE)

 In a press release dated 06/27/2012, David Meister (CFTC) Director of Enforcement said:

“The American public and our markets rely upon the integrity of benchmark interest rates like LIBOR and Euribor because they form the basis for hundreds of trillions of dollars of transactions and affect nearly every corner of the global economy”

“Banks that contribute information to those benchmarks must do so honestly. When a bank acts in its own self-interest by attempting to manipulate these rates for profit, or by submitting false reports that result from senior management orders to lower submissions to guard the bank’s reputation, the integrity of benchmark interest rates is undermined. The CFTC launched this investigation to protect the markets and the public from such illegal conduct, and today’s action demonstrates that we will bring the full force of our authority to bear as we carry out that mission.” In this current transatlantic investigation concerning banks manipulation of Libor and the Euro interbank offered rate (Euribor), the CFTC fine Barclays $450m ($200m to CFTC, $160m to the criminal division of the US Department of Justice, $92,8 m to Britain’s Financial Services Authority). The investigation forced the resignation of the bank chairman Marcus Agius (he is now back!) and the CEO Bob Diamond. Regulators indicated that world's most powerful banks have been fixing the prices of almost every adjustable-rate vehicle on earth: mortgages, credit cards, interest-rate swaps and currencies…ect. It means that banks like Barclays, Citigroup, HSBC, J.P. Morgan Chase, Lloyds, UBS, Royal Bank of Scotland, Deutsche Bank AG (DBK) manipulated the world economy and $800 t. derivatives market. The practice started in 2005.This manipulation and false reporting concerning Libor and Euribor is an expression of a culture of fraud in the world financial. Fraud is an element of depreciation of capitalism. Deregulation can only lead to the development of fraud, weaken our economic system and create sub-capitalism.

Aboubacar Sissoko

Wednesday, June 13, 12

Disintegration of the Euro Zone and emergence of sub-capitalism.

          "Debt is the slavery of the free." Publilius Syrus: Sententiae, c. 50 B.C.

The Eurozone has created its own failure. “Ratio of general-government debt to gross domestic product can not exceed 60%”(Maastricht Treaty -1993). Only 5 countries have reach this target at the end of the 4^th quarter of 2011: Estonia 6%, Luxemburg 18.2%, Slovakia 43.3% and Slovenia 47.6%, Finland 50.5%. The others 12 counties are above 60%: Netherlands 70.1 %, Spain 80.9%, Cyprus 71.6 %, Malta 72.0%, Austria 74.2, Germany 82.2%, France 90.5%, Belgium 100.5%, Portugal 113.9%, Ireland 116.5%, Italy 123.5%, Greece 165.0% (Source EU). In Greece, Spain, Portugal, Italy and Ireland, austerity measures deployed by the “troika” (European Commission, European Central Bank and the International Monetary Fund) have not been successful. The failure of austerity measure is creating a phenomenon of disintegration of the Eurozone. The geographic division of the monetary union in countries of the south (PIIGS) and the North is the first sign of disintegration. After 3 years in this crisis and €2 trillion spend to save the Eurozone, the persistence of the crisis is a catalyst for the European disintegration and the beginning of formation of “sub-capitalism”. Political, economic, monetary and cultural unions are gradually weakening, social malaise is growing in the Union and European leaders can’t find a solution to this sovereign debt crisis. Greece is in total mutation. According to Fitch, the country’s debt-to-GDP ratio in 2011 was 165% and could rise to 170% in 2013 and the goal of the austerity measure is to get it down to 120.5% by 2020. Greece can have much lower debt to GDP ratio in the next 8 years, if the right public policy is implemented.

Germany (27% of the Eurozone GDP) is the biggest payer to bailout funds, with 211 billion euros of contribution to the European Financial Stability Facility (EFSL). German citizens are increasingly unhappy with the financial support made ​​by his country to Greece and the rest of the Eurozone. The same feeling is visible among the Greek citizen who think that their national and individual sovereignty is now subordinated to the Troika and Germany. This European malaise was expressed in a recent statement of Deutsche Bank co-chief executive officer: Juergen Fitschen. Speaking at a conference hosted by the American chamber of commerce in Berlin (May 25,2012), Mr. Juergen Fitschen has mad the following statements:

“Greece is a failed state and the population and business community don’t see a path out of the crisis”. “Greece is the only country, I feel, where we can say ‘it’s a failed state,’ it is a corrupt state, corrupt as far as its political leadership is concerned and obviously other people had to be willing to support this.” “I asked my counterparts, where are the people that you would trust to lead the country into a new era where you have open confidence that it can be a valued member of the euro zone? Unfortunately, the number of names was very limited, you wouldn’t find even a handful of names that are trusted political leadership candidates today.” “People are just not seeing the light at the end of the tunnel, they accept that they have to go through painful adjustment processes, but where’s the carrot that can guide them to accept it and cheerfully wait for better times to come? The moment that the public would feel that the momentum has returned, it becomes much easier.” Greece debt swap has reduced Deutsche Bank net risks related to Greek sovereign bonds from 1.6 billion euros to 94 million euros ($118 million). Mr. Juergen Fitschen opinions are the expression of a political disunity in the Eurozone. It is not possible to complete the European project when European leaders show pessimism, lack of vision and capacity of innovation. With Mr. Juergen Fitschen statement, we can understand why this crisis is a failure of European leadership. This deep political fracture between Greece and Germany can be identified between others nationalities of the union. It is one of many symptoms of disintegration that are spreading in the monetary union and can lead to the total collapse of the system. This fracture reduced the visions and possibilities of a United Europe and reinforces nationalism. The challenge today is about the survival of individual nations in the monetary union founded on a huge historical omission: there is no provision for the possible exit of a country from the Eurozone. National survival in a moment of severe economic crisis is the worst enemy of any form of regional integration. The dynamic of search for solution to the crisis has awakened Greek nationalism, French nationalism, Spanish nationalism, and German nationalism ... ect, consequently limiting the possibilities of realization of the European Federation.  The awakening of European nationalism is another factor of European disintegration. During this crisis, the vision of the European Union falls back several decades in this period of extraordinary development of capitalism and globalization. In this new period of interconnected world, Europe should be an example and a driver of economic growth, but it is not. The continent is losing a position of world leadership, this why it is possible to notice sign of disintegration. With unemployment at 50% among young people under 25 years, the future of Europe is darkened. From March 2011 through March 2012, the following data show the impact of austerity measures on unemployment in the 17 nations of the Eurozone: Austria: 4.2%-4.0%, Netherlands: 4.2%-5.0%, Luxemburg: 4.7%-5.2%, Germany: 6.2%-5.6%, Malta: 6.3%-6.8%, Belgium: 7.0%-7.3%, Finland: 7.9%-7.5%, Slovenia: 8.1%-8.5%, Italy: 8.1%-9.8%, Cyprus: 6.9%-10.0%, France: 9.6%-10.0%, Estonia: 13.9%-11.7%, Slovakia: 13.3%-13.9%, Ireland: 14.1%-14.5%, Portugal: 12.4%-15.3%, Greece: 14.3%-21.0%, Spain: 25.0%-24.1% (1). Unemployment went down only in 4 (Austria, Germany, Finland and Estonia) of the 17 countries. In the Eurozone it is 11%.  Bailout funds will recapitalized banks but will not solve the problem coherent economic growth. The imperative of the crisis is to create a new policy of industrialization capable of creating jobs, specially for the youths. European leaders must make a demarcation between the illusions of bailout funds and macro-economic policy of job creation.

In Greece, the strong opposition of the population to austerity measures, critical impoverishment of the country and impossibility to form a government after May 6^th election are key elements of destabilization of the Hellenic State and disintegration of the Eurozone. The process of maturation of the monetary union is not possible without total adhesion of the European population. Europe is a project to unify all people of the Eurozone. The discrepancy between the will of the people of Europe and political decision made by the European leadership is an important rift within the Eurozone. It is an indication of the contradiction between the needs of democracy and the needs of the market. This is the key challenge of financial capitalism in the 21^st century: how to conciliated the interest of the market and the interest of democracy? It will be only possible if the system is fueled by strong moral values, less creation of synthetic financial instrument, industrialization and low public and private. This discrepancy is also a challenge to democracy. When

non-elected officials make sovereign decisions it will create a conflict in the management of democracy. This is the most important weakness of the Union; National sovereignties are not fully engaged in the process of creation of European Federation. The crisis is a maturation of the conditions of creation of the Federation. It all depends on the political courage and ingeniosity of European leaders to seize this opportunity and create a banking, fiscal and political union. A severe crisis is mother of big realizations. The innovation of the European project was a result of World War 2 and the total destruction of European economy; the final realization of this project could come from the European sovereign debt crisis.

Like all European countries, Greece needs structural reform. We are in a moment of important shifts. The nature of the State and monetary union in the 20^th century is not the same in the 21^st century. These reforms must begin with a reform of Democracy. The elections of May 6th was a defeat for the two dominant parties: Pasok and New Democracy. The 2 parties are supporters of austerity measures and their combine share of vote went from 77% to 33%. Crisis are an opportunity of renewal of human society, it is also a moment of transition in which the reengineering of the success is possible. The European project was a born in the 20^th century; a 21^st century innovative thinking will be crucial to its maturation.

Since April 2010 Greece have been under the “administration” of austerity packages: 2 bailouts worth $300b. The austerity package of February 2012 was very though for the people of Greece. The measure imposes: 22% cut in minimum wage from the current €750 per month, holiday wage bonuses (two extra months of full wage being paid each year) are permanently cancelled, 150,000 jobs cut from state sector by 2015, of which 15,000 shall be cut by the end of 2012, pension cuts worth €300 million in 2012, changes to laws to make it easier to lay off workers, health and defense spending cuts, industry sectors are given the right to negotiate lower wages depending on economic development, opening up closed professions to allow for more competition, particularly in the health, tourism, and real estate sectors, privatizations worth €15 billion by 2015, including Greek gas companies DEPA and DESFA. The strategy is: “cut-and-dry-privatization”, a dynamic of degradation of capitalism with obstruction to wealth creation. It is articulated around 3 elements: cut on public spending, privatization and humiliation of populations. Austerity measures and bailout funds have failed to solve the crisis of capitalism in the Eurozone. They were engineered to pay debt and interest payment to private investors and Greece bondholders. Recently, the European Financial Stability Facility’s (EFSF) board of directors confirmed the release of 5.2 billion euros ($6.7 billion) in favor of Greece, but 4.2 billion euros will be transferred into a segregated account to be used for debt service payments. Excessive debt is at the center of the Eurozone crisis. Payment of debt and interest on the debt are the consequences of a huge accumulation of private and public debt since the beginning of the monetary union in January 1^st 1999. The total debt of Greece is € 356 billion euros ($449 billion), or 4.3% of the Eurozone total debt (2) by the end of this year and the debt service will cost the government € 51 billion annually from 2012 though 2014. The possibility to exit the Eurozone is an option to the failure of austerity measures. Greece return to Drachma is very high. A disorderly Greek exit from the monetary union will be very painful for its citizens and the Eurozone. It could cost more than a 1 trillion euro (5% of EU GDP), and we do not know the size of disaster that will be created by credit derivatives governed by US, Greek and British law. The risk of contagion to other European nations will be considerable. PIIGS debt to banks is estimated at $1.19 trillion. An important indication of Greece’s exit, is the current “Bank Jog” or capital flight out of Greek banks. Data from the ECB shows that 34 billion euros (17% of the country’s total) have been withdrawn from Greek banks in the past 12 months. Greek depositors are looking for asset protection in Germany, France, Switzerland…ECT. From the end of 2010 through the end of March 2012, total deposits at banks in Greece, Ireland, Italy, Portugal and Spain fell to 80.6 billion euros, or 3.2 %. At the same time, German and French banks saw an increased of deposits by 217.4 billion euros (6.3%). This trend of capital flight to northern Europe is increasing daily.

Capital flight is key element of the European disintegration and raises the problem of protections of Europeans savers money. In the eventuality of a return to national currency, national deposit-insurance programs (Guarantee at least 100,000 euros or $125,000 – unlimited state guaranty in Germany, France, and Ireland) will not be able to protect European depositors. The funds have been use to bailout banks in indebted countries of the southern Europe. In Italy, the deposits-insurance program are not funded, but Italians had 1.1 trillions of deposits at the end of March 2012. Spain and Portugal are in the same situation with respectively 931.2 billion and164.7 billion euros of deposits in the same period (*ECB data). Greece bank deposits are down 24% since June 2010. The country deposit is now estimated at 174 billion euros, and the deposit insurance fund is almost non-existent. The non-existence of a unified Eurozone deposit-insurance program is one of the key weaknesses of the monetary union. It is not healthy to have a monetary union in which the depositor’s funds are not equally protected. The crisis has totally destroyed European national deposit-insurance programs. The creation of Pan-European deposit-guarantee fund should now cover a redenomination risk. Federalism is not a half way political structure. European leader should have the political courage to address the question of European federalism at the heart of the thinking of Schuman and Monnet.

Greece exit may not be a bad decision in long term. Argentina and Iceland have experience this type of situation successfully in the past. But, the context is very different. Greece exit will set a precedent that will weaken the Euro. The common currency is declining versus the dollar. On the week of May 21^st-27^th, Euro has lost 2.1% and was trading at $ 1.2496 (the weakest level since July 2010). Net shorts ($27.7b) increased in the last few weeks, totaling 195,361(period ending May 22^nd) compares to 173,869 for the week before (CFTC-COT Report). This is the largest net euro short position since 2007. Short are outnumbering long position by a ratio of 6 to 1, putting the common currency in a dangerous position. The value of the dollar's net long position rose to $35.3 billion (+ 25%) the highest level since at least mid-2008. Financial-capitalism is founded on debt and usury, but these 2 financial instruments lack the ethical and moral values necessary for the development of a complex human organization and wealth creation in the digital interconnected world of the 21^st century. Debt and usury are mines planted in human consciousness. They downgrade individual personality and subordinate the sovereignty of states to the will of creditors. History has demonstrated that subordination of individual and national sovereignty by a political or economic system is contrary to freedom and democracy. As a low debt human organization, the success of industrial capitalism in Europe and USA was founded on the strengthening of individual and national sovereignty. This dual-subordination degrades capitalism and opens the possibility of emergence of sub-capitalism. Rebellion is inherent to all form of subordination. The opposition to the austerity measures is an expression of rebellion against this phenomenon of dual-subordination emerging from financial-capitalism. This is what we are experiencing today in Greece, Spain, Ireland and Italy. Greek poet Hesiod (750-650 BC) in his poem “ Theogony” (the birth of gods) said that debt and famine run together. Aristotle (Greek philopher, 384 BC – 322 BC) was against the charging of interest. His doctrine was: “a piece of money cannot beget another piece”. In his famous book “Politics” he said: “the most hated sort (of wealth), and with the greatest reason, is usury, which makes gain out of money itself, and from the natural objects of it. For money was intended to be used in exchange, and not increase at interest. Of all modes of getting wealth, this is most unnatural (Politics, 1258). Debt and usury are by nature oppressive.  Industrial capitalism found its most important strength in an ethical codification of our economic activities originated from universal religion like Islam, Christianity and Judaism and our moral beliefs. All universal religions prohibit charging interest on loan; promote the virtue of labor, the rule of law, trans-generational transfer of wealth and rationalization of economic activities. The development of industrial capitalism is highly correlated to universal religions. Islam has made an extraordinary contribution to capitalism during the period called by historian the Islamic Golden Age (750 to 1500 A.D). The current Arab revolution is shaping a new Islamic capitalism of the 21st. In the west, Catholicism has made the same contribution. We have created secular states, instrumentalized check and balance of power in democracy, but our code of ethic is defined by humanism and religious believe. Financial capitalism can be defined by lack of ethical codification and correlation with any universal religion or moral value. The financial crisis is a failure of morals value. Our humanity became weak when economic activities are not guided by ethics. Moral and religious values are the fundamental differences between our species and others species of the biosphere. An economic system that does not reflect our moral and religious values put human organization in extreme danger. This weakness of financial capitalism is exacerbated by the process of commoditization of human activities and fragilized the stability and growth of the “wealth nation” with constants crisis. “Wealth of nation” is an expression of sovereignty, stability and freedom of people. It cannot be subordinated to private interests. The fundamental characteristic of sub-capitalism is the subordination of “wealth of nation” to the need of private sector. The bailout of banks in this crisis is a phenomenon of subordination of “wealth of nation”.

The election of Francois Holland in France has created a new dynamic with the idea of the creation of the Eurobond. It is a partial solution. Eurobonds has the merit to lead toward a transfer of sovereignty. But, creating new debt to pay old debt is not a solution, but an illusion. The only viable solution is wealth creation and new industrialization of European nations. Without an effective transfer of national sovereignty to a supranational entity, the integration of multiple national economies with different level of economic performance and fiscal policy has created a mystification of the economic reality of the euro zone. The European monetary union has been fuel by an enormous amount of debt and maintain by the logic of debt for more than 2 decades. Massive accumulation of debt created an unhealthy economic system and lead to severe crisis. The mystification of the economic reality of the Eurozone can be identified in the different capacity of each nation to borrow money. In this crisis it is one of the most important sign of the disintegration. The divergence in the sovereign yields in the Eurozone is huge. In May 31^st, 2012, the 10 years sovereign bond yield are: Germany 1.2 %, France 2.36 %, Austria: 2.107%, Finland: 1.492 %, Spain: 6.69%, Greece: 38.5%, Netherlands: 1.5%, Luxemburg: (no outstanding long term debt securities), Malta: (?), Belgium: 2.8%, Slovenia: 6.96%, Italy: 5.9%, Cyprus: 14.21%, Estonia: (no outstanding long term debt securities), Slovakia: 4.37%, Ireland: 8.1%, Portugal: 12.03%. This divergence is also reflected in the credit derivatives. Five year CDS on Spain is 585.59 bps, Italy: 543,66 bps, Greece: 8529.59 bps, France: 213.223 bps, Germany: 108.39, Portugal: 1145.65bps and Ireland: 679.99 (CMA Datavision.).

In this current crisis, European capitalism has to solve two questions: how to pay back the debt? How to created “coherent-growth”? The answer to the 1^st question can be found in the proposal of the Euro Group dated February 21^st, 2012: “The Euro group also welcomes Greece's intention to put in place a mechanism that allows better tracing and monitoring of the official borrowing and internally-generated funds destined to service Greece's debt by, under monitoring of the troika, paying an amount corresponding to the coming quarter's debt service directly to a segregated account of Greece's paying agent. Finally, the Euro group in this context welcomes the intention of the Greek authorities to introduce over the next two months in the Greek legal framework a provision ensuring that priority is granted to debt servicing payments. This provision will be introduced in the Greek constitution as soon as possible”. In this statement, the troika requires Greece to change its constitution and give debt service top priority and relegated Greece sovereignty, democracy and people in a secondary position. The logic of debt is at the center of austerity measure deployed by the troika. It gives priority to debt payment and no consideration to coherent economic growth or structural reform of the country economy. The document is a creation of conditions of subordination of a sovereign nation to creditors. The European bailout money ($130b) is being used to service the interest of the debt. After the May 6^th election, the troika starts to wire Greece bailout payment to an escrow account. But, a big majority of this money will be sent back to the troika after 48 or 72 hours as interest payment. The prioritization of debt payment by the troika is coherent with the logic of debt and financial capitalism: debtor has the legal responsibility to paid back the debt plus interest. But prioritization of debt payment is not coherent with sovereignty of a nation in deep economic crisis. Prioritization of debt payment isolates capital from industrial production and handicap creation of “wealth of nation”. The priority of Greece is coherent economic growth fuel by creation of goods and services. Debt or interest on capital has to be paid, but in better condition than extraction of “wealth of nation” and subordination of a nation to creditors. Economic crisis in capitalism can not be solve the narrow strategy of cut-and-dry privatization: an effort of coordination of tax increases, public spending cuts, wage cuts, massive layoffs in public and private sector and debt service. Cut-and-dry privatization destroys the fabric of capitalism. With unemployment at more than 22%, Greece represents only 2.3 % of the Eurozone trading bloc’s GDP. The country is in total chaos and may leave the euro zone after the June 17^th election. In an interview at Bloomberg’s New York headquarters (June 4^th, 2012), Nobel laureate Joseph Stiglitz has indicated that an orderly exit of the Hellenic Republic could have an effect of stabilization of the monetary union and make the Euro currency stronger. Without Greece, The Eurozone trade deficit of 11 b. euros in 2011 could be a surplus of 9.8 b. euros. Nomura Holdings Inc. chief strategist Jens Nordvig expressed the same opinion. Greece’s departure could reduce the Eurozone debt-to-GDP ratio to 85.5% and the value of the common currency could raise up to 8%, according to Jens Nordvig (Finalist of 2012 Wolfson Economics Prize, 2^nd largest cash award in economics after the Nobel Price). The optimism of Joseph Stieglitz and Jens Nordvig shows that qualitative transformation of human organization can be the result of severe disequilibrium; severe crisis highlight possibilities.

It will be difficult for European leaders to answer correctly to the second question and solve the problem of “coherent-growth” because the Eurozone is frame in the “uncertainty” of financial capitalism. This system develops “speculative-growth” and synthetic financial instrument with uncontrollable risk. Coherent-growth will be impossible in a context of deleveraging that could take a decade. “Coherent-growth” is not the movements in different exchanges of the world; it cannot be measure by the abrupt swing of the price of a stock, nor by the Dow Jones. It is a coordinated movement of solidarity of all elements of human society in the process of creation of “wealth of nation”. This is how the West has created the best model of industrial capitalism in the 20^th century. Centered on short-term profit, financial capitalism is in an early stage of development. It is a self regulated computerized system of the market in which millisecond, flash order are key to the generation of profit. High concentration on short-term profit does not reflect the interests of democracy. Deregulation has made possible high concentration on short-term profit. It is a political and legal decision for the elimination of all morals, religious, ethical and legal inputs in the development of financial capitalism and consequently open the door to creative finance. Ethical and moral value are the fundamental characteristic of our humanity, they put limit to human private and public excess. High concentration on Short-term profit is not possible with any type of limitation; it is a process of creation of maximum profit without consideration of human value. Industrial capitalism is based on combination of short-term and long-term profit aim to the creation of “wealth of nation”. Profit is not wealth. This is an important difference between the 2 systems. Wealth is a product of human solidarity and can be identified by the attribute of trans-generational transfer. Short-term profit and synthetic wealth creation are isolate in exchanges and develop conflict with activities of human organization. Real wealth creation in industrial capitalism is the result of a very long and painful process of maturation of human solidarity called by historians: industrial revolution. Financial capitalism has been created by political decision of leaders of the West at the end of the 20^th century: Reagan in USA and Thatcher in Europe. It was a pivotal moment in the evolution of world democracy and economy and the most important difference between industrial capitalism and financial capitalism. Politicians and non-elected officials have transform themselves into a new role of social engineer and begin of a “marathon” of bad decisions that lead the world to this massive destruction of “wealth of nation” estimated at $14 trillions. The social engineering is complex; it cannot to be managed by a small group of individuals.

Financial capitalism is a battlefield of opposition of interests of the market and democracy. This is the root of disequilibrium’s in the Eurozone. The exacerbation of this disequilibrium with excessive increase of public and private debt is at the origin of this crisis. It has triggered a degradation of human condition by a huge increase of unemployment and poverty and develops signs of sub-capitalism, which is a degradation of capitalism. Securitization of assets is good for the market, but very dangerous for the health and stability of human society. An unregulated derivative market is an instrument of destruction of “wealth of nation”, but an excellent financial instrument for the market. The instantaneity of short-term profit, speculation, moneytarization of risk and time in a computerized market are not in total harmony with the nature of human organization. In recent decades the development of self-regulated computerized system by financial-capitalism has created a digital value chain different from modern human value chain of industrial capitalism. The current crisis is the result of the juxtaposition of these two types of value chain. Our imperative in the years to come is to make the shift from juxtaposition to harmonization of the 2 systems. By nature, human organization function with a unified system. A phenomenon of juxtaposition can create conflict of interest. First, capitalism is humanism and a human experience. Capitalism is founded on a complex system of moral, philosophical, ethical and religious value, but these values are absent from the thinking of financial-capitalism. For centuries, through the successive periods of merchant capitalism, renaissance, movement of humanism, the industrial revolution, ethic and religion have been at the center of the success of industrial capitalism. In his book “The protestant ethic and the spirit of capitalism” Max Weber demonstrate how the protestant work ethic play an important role in the development of capitalism. The thinking of Benjamin Franklin whose list of thirteen virtues is a roadmap of ethical guideline in modern capitalism inspired Weber’s “spirit of capitalism”. Historians have demonstrated how Christianity has developed the preliminary foundation of capitalism. The Order of Cistercians (11^th century) is a very good example. The Cistercians have been identified has catalysts for the development of market economy in Europe. They were defined by their entrepreneurial spirit, ingeniosity in agriculture, wool production, architecture and hydraulic engineering. The Benedictines were also excellent entrepreneurs. They were expert in rational cost accounting and creation of new ventures. Deregulation in financial capitalism is the anti-thesis of morale virtue articulated by Benjamin Franklin. Deregulation structure the financial industry as a “morale free zone” and subject “wealth of nation” to uncontrollable risk. It is a legal vacuum and created disequilibrium in the functioning of democracy. Capitalism is a society of law and our morale values are a fundamental source of law. An industry, which is not subjected to law and ethics, will lead human society to disaster by a normalization of fraud. The paradox of deregulation of the financial industry and unregulated derivative market is the fact that this industry created huge liabilities with creation of synthetic financial instrument. These liabilities manufacture by creative finance endanger “wealth of nation”. The world GDP is $78 trillions, but OTC derivatives are estimated at more than $700 trillions.

Shift from industrial capitalism to financial capitalism is an organic transformation of human organization. We are defined by the equilibrium of balance of power and

Democracy. The mechanic and functioning of the 3 powers is the base of stability of industrial capitalism. Organic transformation always leads to a new equilibrium. In the Eurozone, the substitution of sovereign powers by power of international institutions (the Troika) and the domination of the financial industry has created a new balance of power.  It triggers a destabilization of democracy by opposing the interests of the market to the interests of our population. “Uncertainty” is now a norm in financial capitalism, we can understand why recent market research indicated that private companies are sitting on more than $ 1 trillion in cash not ready to be invested in the world economy. The lost of stability in financial capitalism has made the private sector very uncomfortable in this new environment of “uncertainty”. The new balance of power is an opposition between creditors and debtors. The consequences are: development of dualism and antagonism fuel by the oppressive nature of debt collection. Development of financial-capitalism has been accompanied by deindustrialization. Payment of debt diverts capital from production consequently create the phenomenon of deindustrialization.

The European project was born in a capitalist system define by industrialization. By nature capitalism is an economic system in constant mutations. The emergence of new technologies has contributed to the current mutation and end isolation of national and regional economies. By ending this isolation, new technologies are expanding free markets worldwide. The challenge for Europe and universal conscience is to manage these mutations for the benefit of democracy. The digital sphere is a new human experience, and well instrumentalized by the capital market. Financial capitalism has developed a new process of wealth creation in this new sphere. The process is facilitated by a powerful electronic infrastructure of exchanges around the world. In this new process, algorithmic trading creates synthetic wealth by millisecond without input of human value and human labor.

The shift from industrial wealth creation to synthetic wealth creation has created disequilibrium with destruction of real wealth. High unemployment, return of poverty, excessive debt and destabilization of democracy are consequences of succession of bad decisions that lead to the creation of financial capitalism. Sovereign debt crisis is a challenge to human conscience: the necessity to innovate a new form of capitalism that will conciliate industrial and financial capitalism in the digital period. The current disequilibrium in Europe is an opportunity for the reorganization of balance of power in European democracy with creation of political union. Economic systems shape balance of power in all human society. The dynamic of transformation of the world into a complex system is testing the capacity of European democracies to lead Europe to new highs of economic success.

The crisis is a battlefield for a new structure of power. Political, fiscal and banking union combined with new industrial policy should define the structure of power in the Eurozone. Current failure of the current leadership raises the question of the necessity of emergence of a new type of leader able to manage the complexity of the world. Political and economic powers are founded on creation and control of “wealth of nation”. In the 21^st century “wealth of nation” have been increase by innovation of new technologies and knowledge economy. The dynamic of this complex mutation will give birth to a new breed of leaders in Europe. The shift to financial capitalism has transfer the control of “wealth of nation” to a self-regulatory computerized system manage by an elite not in full harmony with democracy, but structured in a balance of power that oppose creditors to debtors. This is a reduction of balance of power from the check and balance of the 3 powers to the dualism: creditor-debtor and put democracy in danger. The supremacy of the financial industry has created a disfunctionality in the Eurozone and world Economy. The success of capitalism is founded on harmonization of activities of all productive industries, but the financial industry is not one of them. We have an obligation to harmonize the activities and interests of all industries to create a stable and economy of performance.

The rule of capitalism allows predictable economic activities. It is founded on the capacity of human society to transform profit into wealth. When wealth creation is handicapped by urgent necessity of short-term profit, human society entered in a period of crisis. Human societies are defined by long-term process of wealth creation and well-balanced circulation of flow of wealth in social fabric. This is the success of Industrial capitalism. Excessive accumulation of public and private debt cannot build a viable capitalist society. Debt weakens our social fabric, it lowers the value of individualism and dismantled our economy. The Eurozone sovereign debt crisis is a failure of financial-capitalism. Forecast of Eurozone Real GDP growth is estimated at -0.1% in 2012 and 0.9% for 2013. The monetary union is the only region of the world with negative growth in 2012. After Greece, Ireland and Portugal, Spain is now a recipient of bailout funds estimated at 100 b. euros. With the highest unemployment rate (24.3%) in the Union and an estimated 180 b. euros of bad assets, Spain will probably need more bailout funds. The IMF indicated that Spain economy would shrink 1.8% this year. This is a sign of an increase disintegration of the Eurozone and Italy could be next probably with a debt of 2,5 trillions euros.“Europe” is a project of integration born in the success of European industrial capitalism of the 20^th century. The success of this model of capitalism has made Europe and the West the world center of economic growth and wealth creation for many centuries. Industrial capitalism has generated massive wealth creation and employment, low poverty, stability and strong social fabric in the West. The world is now a juxtaposition of 2 spheres: biosphere and digital sphere with creation of knowledge economy. Our challenge is to develop a new capitalism able to produce more success than industrial capitalism. At this early stage of development, financial capitalism has proven its incapacity to deliver this result.

Since the May 6^th elections, the Athens Stock Exchange (ASE) index has fallen 25%. The risk of Greece exit from the Eurozone is growing by day. Fitch ratings agency downgraded Greece into junk territory. But, the election of June 17^th will be an opportunity for the people of Greece and Europe to enter a new period of economic performance higher than the performance achieved by industrial capitalism in the 20^th century. It should not be a surprise if Greece stays in the Eurozone.

The Schumann declaration of May 9th 1950: “Europe will not be made all at once, or according to a single plan. It will be built through concrete achievements which first create a de facto solidarity.”

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 (1) Source: Eurostat

(2) Fitch ratings’ report: Greece: debt dynamics post private sector involvement (April 3^rd, 2012)

Aboubacar Sissoko