Genuinely curious: how do other languages manage? Surely societies adopt words, idioms, shorthand phrases that haven't (yet) been officially sanctioned? There's plenty professional jargon that, while not "proper" English, is understood within certain contexts. There are also, to my old ears' chagrin, plenty of teenage neologisms that come into common usage, either through popularity or attrition.

Do other languages remain static? What happens when actually new things happen? Does "CD-ROM" just get integrated in whole? Translated? Rejected?

While I find many "new" english words unacceptable for my use, I wouldn't personally declare them "not English words". Moreover, if there were an authority over authentic english (especially American english) word existence and usage, I get the feeling that most would laugh said authority out of the room.