The Death Of Fiat Money Will Be The Cause Of Worldwide Recession … And Will Be The Genesis Factor Of Both A Global Financial System Crash And The Rise Of Trust In Regional Governance

December 5, 2013

Financial Market Report for the Week Ending November 29, 2013Dear

1)  … Previously on Friday, November 22, 2013, Jesus Christ working in dispensation, that is the economy of God, was seen producing liberalism’s peak fiat wealth.

The dispensation economics manifest presents the concept that Jesus Christ, as the Heir of God, has been appointed with dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, where He is to mature and perfect every age, much like a ship’s captain completes the ship’s manifest before setting sail.

Under liberalism, fiat wealth investments were inflated via central banks policies of investment choice, and schemes of credit and carry trade investment, based upon the sovereignty of democratic nation states, such as the US, VTI, and the UK, EWU, and their Treasury Debt, TLT, and BWX.  Zero Hedge reports The S&P Closes Above 1800, Posts 7th Consecutive Weekly Increase: Longest Streak Since 2007.  It’s likely that Friday November 22, 2013 was the completion of the Creature From Jekyll Island’s, the ECB’s LTROs  and OMT’s, and PBOC’s, monetary stimulus. Thus completing a regulatory capture, clientelism and crony capitalism, as well as a European Socialism, and Greek Socialism, and Chinese Communism, fiat wealth experience, that came through moral hazard based investing. Certainly the financial market rally is getting “long in the tooth”

One of liberalism’s most terrifically inflated fiat investments is UK based Prudential Life Insurance, PUK, which has risen 450% in the last five years; its seigniorage, that is its moneyness, has come through trust in the long term debt that it has invested in. Another example of terrifically inflated fiat investments include 3M Co, MMM, and Rite Aid, RAD, whose values have risen parabolically since the 20008 Financial Collapse. And likewise the Small Cap Growth Stocks, RZG, such as CLW, KWR, HEES, and BDC, the Nikkei, NKY, and China, YAO, rose on money coming out of Bonds, BOND, as well as on currency carry trade investing.

With the rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48 % on October 23, 2013, Jesus Christ has opened the First Seal on The Scroll Of End Time Events, and has released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, who will rule in regional governance policies of diktat. and totalitarian collectivism schemes of debt servitude.

Beginning on October 23, 2013, the strong rise in the Interest Rate on the US Ten Year Note, ^TNX, and the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, has destroyed yield bearing investments such as Utilities, XLU, Real Estate, IYR, DRW, and had destroyed currency carry trade investments in the Emerging Markets, EEM, and their banks, such as BRAF, and EPI, in Brazil, EWZ, in Thailand, THD, and in its investment twin, Philippines, EPHE, and in Australia, EWA, KROO, ENZL, its bank WBK, and iron ore miner BHP.

As nations lose their sovereignty to the bond vigilantes and the currency traders through debt deflation, the Interest Rate on the US Ten Year Note, ^TNX, is going substantially higher, further destroying fiat money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, stimulating investors out of Stocks, VT, and creating an investment demand for gold bullion.

In the age of authoritarianism, there are only two forms of sovereign wealth, and sustainable wealth, these being diktat, and the physical possession of gold bullion. As of November 22, 2013, the price of Spot Gold, $GOLD, traded by the ETF, GLD, fell to $1,242, which is the cash price of production for a number gold producers; thus a bottom has been established for gold.

2)  … Booms are always followed by a horrific bust; such is the nature of the business cycle; the final business cycle will see the rise of ten regional kings to rule in the world’s ten regions.

The world is entering Kondratieff Winter, the final business cycle. The death of fiat money means monetary deflation, CPI Deflation, as well as Wage Deflation, and is the genesis factor for both intense global recession and the rise of beast regime of regional governance and totalitarian collectivism, presented in Revelation 13:1-4.

Out of turmoil of EU soveign insolvency, banking insolvency, and corporate insolvency,such as the tremendous swell in France as reported by Mike Mish Shedlock, will come unifying economic and political leadership. There is waiting in the wing’s of Europe’s stage, one who will soon step into the limelight, one who will work in regional framework agreements to provide order out of chaos. The Sovereign, Revelation 13:5-10, and his partner, the Seignior, Revelation 13:11-18, the top dog money lord who in coining money, takes a cut, will rise to power in the EU, to become the world’s preeminent king. The Seignior will create goodwill, that is create “good face”, for the Sovereign, and his rule over the Eurozone. Alexis Tsipras, the leader of Greece’s far-left SYRIZA party and a candidate to European Commission Presidency, writes in the Guardian, The Left Can Unite To Build A better Europe.  “For millions of people, the European dream has turned into a nightmare. Eurobarometer surveys show the growing crisis of confidence in the EU and the catastrophic rise in the popularity of far-right parties” … “ Austerity is wreaking havoc, It is our destiny to fight back”.

When the currency traders call the EUR/JPY lower from its Friday November 22, 2013 value of 137.43, as bond vigilantes call the Interest Rate on the US Ten Year Note, ^TNX, consistently higher from 2.75%, then World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, the Eurozone, EZU, and European Financials, EUFN, will tumble like a house of cards, with the result that there will be terrible economic recession, with a grievous epicenter in France and the PIIGS, that is Portugal, Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, and a falling rate of wage inflation in the US, seen in FRED AHETPI, trending lower, as employers simply won’t be able to continually highly  reward their laborers.

Reporting from Open Europe reports that Greece and Ireland have been the test beds for evolving Eurozone regional economic government.  Now with regional nannycrats having pooled sovereignty, in particular the sovereignty of diktat in regional governance, and in providing seigniorage schemes of debt servitude in totalitarian collectivism, such as exercising budget powers in demanding more austerity in Italy and Spain, regionalism will be the dynamo of economics, with the aim of establishing regional security, stability, and sustainability, to counter national economic recession.

Germany is pressing for Eurozone leadership. Open Europe publishes The First English Translation Draft Of The German Grand Coalition Agreement. The draft agreement states that the way out of the eurozone crisis is to “combine structural reforms and a strict, sustained continuation of budget consolidation.” The coalition will also be committed “to ensuring that the euro countries agree binding, enforceable and democratically legitimised contractual reform agreements at the European level.”

Authoritarianism features regional framework agreements, that is policies of diktat in regional governance, based upon regional fiscal sovereignty, and schemes of debt servitude in totalitarian collectivism. Open Europe reports Eurozone Reform Contracts Take Shape, And They Include Fiscal Transfers.  A profound change in the nature of government and moneyness is emerging. Regional government, not democratic nation states, is sovereign. And regional nannycrats, not banks and financial markets, provide seigniorage, that is moneyness.  Yes, diktat policies of regional governance and fiscal and debt servitude schemes of totalitarian collectivism, is the EU’s future.

Open Europe news reports FT  WSJ  FAZ  FAZ 2  Süddeutsche  Bild  Welt  Welt 2  Guardian: Posener clearly evidence that the beast regime of regional governance and totalitarian collectivism, with its seven heads occupying in each of mankind’s seven institutions, and its ten horns ruling in the world’s ten regional zones, presented in Revelation 13:1-4, is rising from sovereign, banking and corporate insolvency, and is making landfall in the Eurozone, occupying with feet of a bear in EU banking supervision in Frankfurt Germany; with mouth of a lion in NATO headquarters in Brussels; and camouflage of a leopard in ongoing technocratic governance in Greece as well as in ECB banking supervision from Berlin, and in nannycrat fiscal rule from Brussels enforcing budget rules demanding more austerity in Spain and Italy.

Liberalism was characterized by monetary inflation, and it fueling economic growth and global trade, where the banker regime financialized nation state fiat money. And Sober Look posts in Credit Writedowns Five Years Of QE And The Distributional Effects.  Who really benefited since the first QE was launched? There is a great deal of debate on the topic, but here are a couple of facts. Financial asset valuations, particularly in the corporate sector have seen sharp increases. For example the S&P 500 index total return (including dividends) has delivered 144% over the 5-year period. Those who had the resources to stay with stock investments were rewarded handsomely .The housing recovery has certainly been helpful (for those who kept their homes), but according to the S&P Case-Shiller Home Price Index, US housing is up less than 5% over the past five years.

But with the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, and economic recession coming from the failure of Credit, AGG, and Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging market Currencies, CEW, such as the Brazilian Real, BZF, becoming the norm worldwide, these two forces (higher interest rates and economic recession) are the genesis factors for authoritarianism beast regime’s rise to power in regional integration, to establish regional security, stability, and sustainability.

Liberalism’s seigniorage, that is its moneyness, came via policies of credit, such as POMO, and carry trade investment, such as the EUR/JPY juicing up World Stocks, VT, and risk assets such as Small Cap Pure Growth, RZG, Small Cap Pure Value Stocks, RZV, Nation Investment in Ireland, EIRL, its bank, IRE, and its companies, such as Seagate, STX, and Ingersoll Rand, IR, greatly rewarding investors.

Authoritarianism’s seigniorage comes in mandates of all kinds, such as in EU banking supervision, and in EU fiscal spending rules, and will result in a full fledged banking union, fiscal union, and economic union, where nannycrats exercise power in regional framework agreements to oversee the factors of production, commerce and economic trade, to establish regional security, regional stability, and regional sustainability. While the Nordics, such as the Germans, the Dutch, and the Belgians will never be Latins, such as Greeks, the Spaniards and the Italians, all those living in Euroland will be one, living in a regional gulag of debt servitude, under the word, will and way of the Sovereign and the Seignior. The EU periphery will exist as hollow moons revolving around planet Berlin and planet Brussels.

The soon coming European Superstate comes from the concepts of the Euro’s Father, Columbia University Professor Robert Mundell, who received the 1999 Nobel Prize in Economics for his 1961 paper “A Theory of Optimum Currency Areas”, as cited by EconoLib.org and other internet resources.

The US Federal Reserve finally crossed the rubicon of sound monetary policy; the result was the failure of the US Fed money printing operation is seen in M2 Money trending lower. The US Federal Reserve site shows M2 Money peaked on 10-21-2013 at 10,988, Billion, and has been trending lower: 10980, 10974, and now 10922. Just like fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, died on October 23, 2013, M2 Money died when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.

The bursting of the fiat money bubble, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, will result in a new form of money, that being diktat money, where the components of M2 Money, such as savings accounts, will be placed under capital controls and under transfer restrictions, and the factors of production, commercial businesses as well as trading organizations, are overseen by regional monetary and economic cardinals, that is regional nannycrats, working in statist public private partnerships and workgroups to establish regional, security, stability, and sustainability in response to economic recession, and CPI deflation, and monetary deflation, that is the fall lower in the value of money, as well as the accumulation of money, like the pile of M2 Money, dwindling lower in nominal value. Ludwig Von Mises, wrote of the new order in Planned Chaos,

“There are two different patterns for the realization of socialism. The one pattern, we may call it the Marxian or Russian pattern, is purely bureaucratic. All economic enterprises are departments of the government just as the administration of the army and the navy or the postal system.”

“The second pattern,we may call it the German or Zwangswirtschaft system—differs from the first one in that it, seemingly and nominally, maintains private ownership of the means of production, entrepreneurship, and market exchange. So-called entrepreneurs do the buying and selling, pay the workers, contract debts and pay interest and amortization. But they are no longer entrepreneurs. In Nazi Germany they were called shop managers or Betriebsführer. The government tells these seeming entrepreneurs what and how to produce, at what prices and from whom to buy, at what prices and to whom to sell. The government decrees at what wages labourers should work, and to whom and under what terms the capitalists should entrust their funds. Market exchange is but a sham.”

Shaun Richards asks pessimistically in Mindful Money What Options Are Left For The European Central Bank?  The ECB faces a potential growth slowdown which when we consider is supposed to be in an economic recovery phase (after another recession) must disappoint it. Added to this are the recent signs of divergence in the Euro area with Germany living up to the locomotive stereotype but France and Italy left behind in a siding. So all the signals are green for further easing as  the latest 0.25% interest rate cut was as much for media spinning as for any likely real impact on the situation.

Today’s data from Spain only confirmed the disinflationary drumbeat of these times.  The annual rate of the Industrial Price Index stands at –0.2%, three tenths over that registered in September   The monthly variation rate of the Industrial Price Index is –0.6%.  We get an idea of the change in the situation here if we note that the annual rate of change was 3.9% in October 2012. We can add to this by noting that in September producer prices in Italy were falling at an annual rate of 1.8% and in October they were falling at an annual rate of 1.6%. Even Germany saw this. In October 2013 the index of producer prices for industrial products fell by 0.7% from the corresponding month of the preceding year. Indeed wholesale prices in Germany were falling at an annual rate of 2.7% in October.

The international agreement over Iran and its nuclear ambitions has seen the price of a barrel of Brent crude oil drop by nearly 2% this morning to around US $109 per barrel. Actually it has been at this sort of level for a while now which is part of the issue as the Euro has strengthened by 4% over the past year. So cheaper oil is good for economic growth but also generates disinflationary pressure.

John Mauldin communicates concepts of EU CPI deflation, monetary deflation, and economic recession in Thoughts From The Frontline PDF report Game of Thrones – European Style. Key measures of inflation are decelerating across the Eurozone, and the region is as close as it has ever been to a deflationary bust. It’s troubling enough that Eurozone headline CPI collapsed from 1.1% in August to 0.7% in September and that core CPI fell from 1.0% to 0.8% over the same period; but measures of EU money supply (M1, M2, & M3) are also decelerating rapidly, suggesting that the deflationary trend will most likely continue without decisive action from the ECB, which has been strangely absent from the current rush by central bankers to print mountains of money.

There are two major problems associated with an extended period of ultra-low inflation or deflation in the Eurozone.

First, peripheral countries will have a much harder time servicing and retiring their debts without the extra boost to nominal GDP that positive inflation provides. Even if you are working on lowering the absolute amount of your debt, it is impossible to improve your debt-to-GDP ratio when GDP is falling and your debts are growing. Moreover, outright deflation works to crush debtors (and debtor nations) by increasing the real weight of the debt and triggering the destructive debt-deflation cycle described in Irving Fisher’s Debt Deflation Theory of Great Depressions (1933).

The second major problem is that currency appreciation always accompanies deflation, all else being constant, so that affected economies also become less competitive in terms of exports at the very moment that a positive trade balance is most important.

These are problems that I have written about for years. The effects of a common currency and monetary policy are spread around very unevenly in Europe, creating a boom in certain countries (chiefly Germany) and a sad bust in others. This disparity is the very predictable result of a currency union sans fiscal union. And trying to fix the Eurozone fiscal structure after the fact is akin to fixing the engine of an airplane while flying at 30,000 feet.

The rapidly weakening inflation we are seeing in Europe is a very big deal, because deflation can become a chronic, crushing condition, making it even harder to deal with excessive debt, under capitalized banks, and runaway fiscal deficits in major countries like Spain, Italy, and France. Over time the masses begin to expect falling rather than rising prices, and these expectations can be very difficult to reverse without credible, decisive, and powerful action from the central bank.

Up to this point, the ECB has been almost completely unwilling to squarely confront the issues at hand. The ECB balance sheet has been inexplicably shrinking for the past year (more on that in a moment). That is why ultra-low inflation readings should not come as a surprise. Not only has the ECB not been easing, it has actually tightened its balance sheet considerably over the past year. To many observers, this trend clearly demonstrates German dominance within the ECB. ECB restraint has kept the euro entirely too strong, at least for certain countries in the EZ, again showing the dysfunctionality of the common monetary union. A 2013 study from Deutsche Bank says the “pain threshold” for the EUR/USD exchange rate (the level at which further appreciation impairs competitiveness and economic recovery) is $1.79 for Germany, $1.24 for France, and $1.17 for Italy.

Shown against the current EUR/USD exchange rate, the “pain thresholds” make it obvious that Germany is sitting pretty while France and Italy are getting crushed by the strong euro. Although Spain shows a higher threshold than Germany, gains in Spanish competitiveness are really attributable to mass unemployment and a major fall in unit labor costs. Spain has already taken a tremendous amount of pain, while France and Italy are just starting to absorb theirs. Arnaud Montebourg, French industry minister, claims that each 10% rise in the EUR exchange rate costs France 150,000 jobs, and the trade-weighted EUR index has risen by 9% in the past 15 months. The strong euro is inflicting damage on the textile industry and other low-margin sectors across Southern Europe. As Ambrose Evans-Pritchard notes, “Any policy set at this stage for Club Med needs is destructive for Germany, and any policy set for German needs is destructive for Club Med. You cannot set a workable policy. The intra-EMU gap is already too wide.”

The European landscape has changed so that Germany is benefiting at the periphery’s expense and the uncompetitive periphery is losing major export share to Asia. The European Union has broken down as a functioning system. France, Italy, and Spain should together pound their fists on the table, but they are not doing so because they delude themselves that they can go it alone.  Today there is only one country and only one in command: Germany. Romano Prodi, the Italian prime minister who prepared Italy for EMU membership in the 1990s and presided over the euro’s launch as European Commission chief.  Martin Wolf writes in the Financial Times that the OECD is insisting that Europe’s North South gap in labor competitiveness cannot be closed by putting all the burden of adjustment on already depressed economies in the south.

And let’s look at three more quotes from Ambrose (from separate columns over the past few weeks) that clearly illustrate the zeitgeist in Europe: Conflicting narratives of the crisis are emerging, pitting creditor and deficit states against one another. The central tenant of EMU doctrine is that countries will not reform unless they face a crisis, and their feet are held to the fire. There is a near religious belief in Berlin, evangelized by Brussels, and the EMU gang of five, that any let-up in austerity, any recourse to stimulus, let alone a new deal, is a gift to shirkers who want to dodge reform.

Yet the ECB surprised us all and cut its interest rates a few weeks ago. Does this signal potential rebellion within the ECB? A recognition that perhaps the crisis is coming to a new head? Mario Draghi denies that the Eurozone is slipping into a Japan-style deflation trap, but he admits the trend toward deflation is alarming (which is probably the most we can expect from a central banker trying to speak confidence into the markets). He claims the governing council is “wholly in agreement about the need to act,” but does his statement reflect a better appreciation of the situation by German inflation hawks or a revolt by debtor countries (France, Spain, Italy, Portugal, Greece, Ireland, et al.)? The question is, who is in control now? Does this “agreement” signal a major policy shift or a limited compromise by credit countries? The ECB had to do something. The rise of the euro was becoming deflationary and threatening to choke off growth…. It is very rare for a central bank to change its policy so dramatically from one month to the next, so something profound must have happened. – David Bloom, HSBC

Yet all this German bashing prompts a very spirited defense of prudence from my favorite irascible French curmudgeon, Charles Gave: When Keynesian policies are failing, as they always do,  proponents never fail to look for a scapegoat. Usually this is Germany, rebuked for the un-Keynesian practice of earning and saving. Our concern is that when German bashing reaches fever pitch, panic selling often follows. So when I see the U.S. Treasury once again going after the Germans, and that sentiment immediately seconded by the International Monetary Fund, the European Commission and prominent financial commentators, then I start to worry. If these guys have gotten to the desperate stage of rebuking Germany for being prudent and productive, then perhaps it is time to panic.

The euro may be fairly valued versus the US dollar, but it is not “fair value” for Germany and Italy to have the same exchange rate. German industry is slowly but surely destroying the Italian economy (in the French and the Spanish industries). This is what has always happened in history when two countries with different productivity rates are joined by a fixed exchange rate. The trading goods sectors of the one country with the highest productivity destroy the trading goods sector of the one with the lowest productivity. It cannot be otherwise. So the cashed-up Germans will keep doing what they do best: investing in their export industry, while the Italians are forced to stop investing. And since increases in salaries in Germany have been lower than increases in the country’s productivity, then we have both a cost of capital and a unit labor cost that is more favorable than in Italy. One would have to be brain-dead to invest in the trade goods sectors in Italy.

As long as the euro is around, European economies will keep diverging from each other. It cannot be otherwise. There is not going to be a returned equilibrium. The solution proposed by the US Treasury or various columnists in the FT is for Germany to do like everybody else: start wasting capital and moving to lower productivity. An interesting idea, which the British government under Mr. Brown explored at length, but the end result was not that pretty. And for some strange reason, this idea is not very popular in Germany.

My convictions thus are that: this is not a stable system; the Germans will not change their policies; the French or the Italians will not reform; the European economies will keep diverging; and anti-euro political groups will continue to rise in the EMU. If even one country elects an anti-euro party to the majority, then all bets are off.

Stories are beginning to percolate all over Europe but especially in France about the crisis that will be brewing next year. President Hollande’s approval rating has fallen to 15% (not a typo). This is a precipitous comedown for someone swept into power just last year by a small majority of French voters. Unemployment has risen to over 11%. A few months ago, the National Front party won handily in regional elections in liberal strongholds. Led by the fiery Marine Le Pen, it is very nationalist and anti-euro and favors protectionism and a different sort of socialism, but radical economic socialism nonetheless. This is not your father’s conservative party.

My friend Charles Gave, among many others, is convinced that the Eurozone cannot hold together. Forty percent of me agrees with him, yet the other sixty percent acknowledges the sincere desire among European leaders and many European citizens to maintain the union at all cost. And what a cost it will be. There must first be a serious banking union, and within the next year. If they can’t create a banking union, how can they expect to create a fiscal union, which is far more contentious and will require every one of the Eurozone nations to give up a great deal of fiscal sovereignty?

A decisive moment is coming for Europe. If winter is coming, can a French spring be far behind? Will we once again hear the cries of “Aux barricades, mes amis!”? Stay tuned.

Gordon T Long relates in Safehaven.com Euro Pressure Going Critical  The end stag economic issues inherent to European Socialism and Greek Socialism in a long enduring currency union. The EMU has now had Six quarters of recession, historic unemployment and slowing exports. And he posts this chart relating Since 2011 the flow of corporate loans in the EMU remains very weak.

Mike Mish Shedlock reports Founder Of Hollande Resignation Arrested For Insulting The President. Liberalism featured wildcat finance, a Doug Noland term, where bankers waived credit and carry trade wands of fiat money creation. Authoritarianism features wildcat governance where despots waive authoritarian and debt servitude clubs of diktat money creation.

3)  … Details of this week’s financial market trading

On Monday, November 25, 2013,  Japan’s Bank, Sumitomo, SMFG, Chinese Financials, CHIX, and Brazil Financials, BRAF, led World Stocks, VT, -0.4%, Nation Investment, EFA, -0.3%, and Global Financials, IXG, -0.2%, lower, while Aggregate Credit, AGG, traded higher, commencing the see-saw destruction of fiat wealth and fiat money, and pivoting the stock markets from bull to bear, and pivoting the world from the age of liberalism, the era of investment choice, fully into the age of authoritarianism, the era of diktat, on fears that the world central bank’s monetary authority have crossed the rubicon of sound monetary policy, and have made money good investments bad.   Yes, as fiat wealth, Stocks, VT, traded 0.4% lower on Monday, November 25, 2013, the world pivoted from the economic paradigm of liberalism into the paradigm of authoritarianism.

Please consider the following concept as a foundation upon which future analysis can be built. Fiat money is defined as Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW.  If that is true then one can understand that concept, that the death of fiat money, which occurred on October 23, 2013, when the bond vigilantes called the Interest Rate on the Ten Year Note, ^TNX, higher from 2.48%, was decisively transmitted to fiat investments, that is Stocks, VT, on November 25, 2013, which traded 0.4% lower.

Sectors trading higher included, Biotechnology, IBB, Health Care Providers, IHF,  and Transportation, XTN.

Sectors trading lower included Social Media, SOCL, Solar Energy, TAN, and Steel Producers, SLX.

Yield bearing Investment sectors trading lower included Global Real Estate, DRW.

Small Cap Energy, PSCE, Energy Production, XOP, and Energy Service, OIH, traded lower on a lower price of Oil, USO.

Gold Miners, GDX, traded slightly lower and Silver Miners, SIL, traded slightly higher.

Countries trading higher included Inda, INP, SCIN, on higher banks, EPI.

On November 25, 2013, The BRICS, EEB, were led by the Brazil Financials, BRAF, the Chinese Financials, CHIX. And The Emerging Markets, EEM, were led lower by the Emerging Market Financials, EMFN.

On November 25, 2013, investors sold out of the concept of the Global Hot Money trade, this being seen in the strong sell of Thailand, THD, and Philippines, EPHE, as well as China, YAO, CHIX, ECNS, Russia, RSX, ERUS, Brazil, EWZ, EWZS, Mexico, EWW, Chile, ECH, and Indonesia, IDX.

Currency traders in their war of competitive currency devaluation against the world central banks, are successfully selling the Thai Baht, the Philippine Peso, the Russian Ruble, the Brazilian Real, BZF, the Mexico Peso, the Chile Peso, the Indonesia Rupiah, and the Peru Sol short, on the rise of the Interest Rate on the US Ten Year Note^, TNX, resulting in the destruction of nation investment in these Emerging Market Nations, EEM. Ask people living in these countries, if their money died, and they will respond yes, emphatically yes. And as a result their investments, that is their wealth died as is seen in the death of the Emerging Markets, EEM,  and individual stocks within each of the countries, such as in the Philippines, PHI, in Russia, MBT, in Brazil, ERJ, GFA, in Mexico KOF, SIM, in Chile, EOC,  and in Peru, SCCO.

On the rise of the Interest Rate on the US Ten Year Note, investors sold the investment linchpin of liberalism, that being globalism. With the paradigm of liberalism being undermined, a new paradigm is emerging, that being regionalism. It will serve to coordinate economic activity, commerce, and trade around the themes of regional security, stability and sustainability, thereby giving authoritarianism its power to rule in policies of diktat in regional governance in each of the world’s ten regions, and in schemes of debt servitude in every one of mankind’s seven institutions.

US Stocks, VTI, traded 0.1% lower, and the S&P 500, SPY, traded lower, 0.1% lower.  The $SPX traded lower to close at 1802 which is a 0.1% trade lower from its Elliott Wave 5 High of $1,804.The $NYSI traded lower to 319.49. Then $NYMO traded lower to 5.46. The $NYAD traded lower to -326. The $BPSPX traded lower to 83.06.  Of note, Trader Art posts  ($SPX, $SPY) % Bears plummets to a record low.

The US Fed’s QE has brought the S&P 500 up from 666 on March 23, 2009, when the US Treasury announced plans to buy Distressed Investments, such as those traded by Fidelity’s Mutual Fund FAGIX, to 1804, on November 25, 2013.  The US Fed’s trading out “money good” US Treasuries, for the most distressed of asset backed securities, underwrote investment confidence and served as the basis of trust in fiat money and further intervention, that is further stimulus, by the world central banks, to the point of providing Global ZIRP, which has underwritten investment growth in the Awesome Nine Sectors, Aerospace, PPA, Biotechnology, IBB, Pharmaceuticals, PJP, Spin Offs, CSD, Global Consumer Discretionary, RXI, Small Cap Pure Value, RZV, Small Cap Growth, RZG, Transportation, XTN, and Global Industrial Production, FXR.

Chinese Financials, CHIX, led China, YAO, lower, terminating the economic stimulus coming from  PBoC Governor Zhou’s liberalization of domestic interest rates and reduction of intervention in the foreign exchange market, as reported by MarketWatch.  Japan’s Bank, SMFG, led the Nikkei, NKY, lower on fears of the failure of Abenomics; the Yen, FXY, traded lower closing at 96.27.

Of great significant note, the EUR/JPY closed lower at 137.40, down from 137.43 on Friday November 22, 2013. The Eurozone, EZU, traded lower on fears of uncontrollable deflation; the Euro, FXE, traded lower closing at 133.70.

Oil, USO, and Unleaded Gas, UGA, led Commodities, DBC, lower. Natural Gas, UNG, Agricultural Commodities, RJA, JJA, Gold, GLD, and SLV, traded higher. The price of Spot Gold, $GOLD, closed higher at $1,248.

Aggregate Credit, AGG, traded higher, as the Interest Rate on the US Ten Year Note, traded slightly lower .

Bloomberg reports Abe’s Stimulus Folly May Destroy Yen and JGBs. Japanese Prime Minister Shinzo Abe’s reliance on fiscal and monetary easing to defeat deflation may precipitate a “plunge” in the yen and sovereign bonds, said Noriko Hama, an economics professor at Doshisha University’s Business School. “The Bank of Japan is no longer functioning as a proper central bank,” Hama said at a speech in Tokyo on Nov. 21, referring to the BOJ’s doubling of monthly bond purchases to more than 7 trillion yen ($68.8 billion) in April. “The scariest scenario, and the one we should be most wary of, is a bottomless crash in the yen,” as the global financial community loses faith in the currency, Hama said.

Bloomberg reports Oil Sinks on Iran Deal as Stocks Advance; Yen Slides. Crude oil headed for the biggest drop in three weeks after Iran agreed to limit its nuclear program in exchange for relief from some sanctions. Asian stocks climbed, while the yen fell to its weakest since May. Brent crude sank 2.2 percent to $108.62 a barrel by 12:32 p.m. in Tokyo. Futures on the Standard & Poor’s 500 Index, which capped a seventh weekly gain Nov. 22, rose 0.3 percent. The MSCI Asia Pacific Index added 0.4 percent, while credit risk in the region fell. The Yen dropped  0.5 percent while Thailand’s currency and equities slid amid protests in Bangkok with Smartknowledgeu reporting in Zero Hedge Thai Capital Plagued By the Biggest Anti-Government Protests in Years.

Bloomberg reports Europe Twin Woes Fester in Draghi Job-to-Inflation Fight. Europe’s twin woes of too little inflation and too many unemployed will dominate data due this week just as officials prepare forecasts backing the rationale for Mario Draghi’s surprise interest-rate cut. Inflation stayed close to the lowest level in almost four years in November with a reading of 0.8 percent.

On Tuesday, November 26, 2013, the death of fiat money, that is Credit, AGG, and Currencies, DBV, and CEW, transmitted death to periphery nation investment, by the short selling of the currency traders.  The death of fiat money, that started on October 23, 2013, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, transmitted death to Emerging Market Mining, EEMT, Emerging Market Financials, EMFN, Industrial Miners, PICK, Steel Producers, SLX, and Metal Manufacturers, XME, largely by the currency traders selling the Brazilian Real, BZF, and the Australian Dollar, FXA, thus establishing the end of profitable investment choice in global mining and in industrial production.  Debt deflation, that is currency deflation, at the hands of the currency traders, forced Emerging Market bonds, EMB, lower as well, on a day when other credit investments traded higher as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.70%.

Gordon T Long relates in Safehaven.com Euro Pressure Going Critical posts chart showing the Current Account Balances of the Peripheral BRICS, where Brazil, EWZ, Peru, EPU, Chile, ECH, and India, INP, reading terrifically red current account balances; with the first three nations have born the greatest disinvestment and short selling.

Brazil Financials, BRAF, traded lower, taking Emerging Market Financials, EMFN, Brazil, EWZ, EWZS, and its Paper Producer, FBR, on a lower Brazilian Real, BZF. Emerging Market Miners, EMMT, such as Brazil’s VALE, traded lower on lower Emerging Market Currencies, CEW.

And the death of fiat money, on October 23, 2013, transmitted death to yield bearing Electric Utility Stock Invesment, XLU, on November 26, 2013, immediately after earnings season. These large scale, debt intensive, high yield industrial investments died a delayed death; these are among the first of globalism’s yield bearing investment investment gems to lose their glory. Liberalism’s pursuit of yield rally started to come to an end on November 26, 2013, with the sale of hugely debt burdened Electric Utilities, XLU, These include Electric Utilities, OGE, CNP, AES, NEE, and LNT.  The Debt Trade, that along with Currency Carry Trade Investment, such as AUD/JPY, which has been the basis of Globalism and the basis of liberalism, as both as an age, and as a paradigm, is peaking out.

And with the death of the Global Hot Money trade, seen in Thailand, THD, Philippines, EPHE, Peru, EPU, Chile, ECH, Brazil, EWZ, trading lower on November, 25, 2013, and now with the failure of  Global Industrial Production Investment, seen in Industrial Miners, PICK, Steel, SLX, and Metal Manufacturing, XME, trading lower, liberalism as the age of invesment choice, and its schemes of credit and carry trade investment, are being relegated to the dustbin of history.

With fiat money, that is Credit, AGG, and Currencies, DBV, CEW, dead as a doornail, and now yield bearing fiat wealth Electric Utilities, XLU, failing, and Global Hot Money fiat wealth, THD, EPHE, EWZ, failing, and Global Industrial Production wealth, PICK, SLX, and XME, failing, its reasonable to believe that World Stocks, VT, Nation State Investment, EFA, and Financial Institution Investment, EFA, will begin to fail.

The Apostle Paul’s word of 2 Corinthians 5:17-18 communicates that all things be of God. And the Apostle John’s bible prophecy of Revelation 13:1-4, foretells that out of waves of sovereign insolvency and banking insolvency, that liberalism will be replaced by authoritarianism; specifically that regional governance will come to rule in the world’s ten regions, and totalitarian collectivism to occupy in each of mankind’s seven institutions.  The failure of the US Dollar Hegemonic Empire, known also as the banker regime, is seen in the US Dollar, $USD, UUP, rising in value since October 23, 2013, and fiat money, that is Credit, AGG, and Currencies, DBV, CEW, falling in value.

Confirmation of the failure of this Empire is seen in the news reports by Gareth Porter US Officials Hint at Reservations on Final Nuclear Deal and Jason Ditz US Threatens To End Afghanistan Occupation; both documenting that the US is no longer a global kick-ass empire.

In Prometheus Fashion, To Create, One Must First Destroy. The prophet Daniel’s Bible prophecy of Daniel 2:25-45 foretells that the two iron legs of global hegemonic power, the UK, and the US, will collapse, and a Ten Toed Kingdom, consisting of the miry mixture of iron diktat and clay debt servitude, will emerge in the world’s ten regional zones, to replace investment choice and credit.  The failure of the Milton Friedman Free To Choose floating currency regime, and the US Dollar as the world’s reserve currency, is pivoting the world out of liberalism and into authoritarianism.  Authoritarianism features an entirely new empire, the US is no longer in charge of economic and political matters. Eventually, according to Bible prophecy of Revelation 17:12, ten kings will come to rule in each one of the Toes, that is in each one of the world’s ten regions.

This ten toed monster is described as in Daniel 7:7, as beastly, dreadful and terrible, exceedingly strong; it has huge iron teeth; it’s devouring, breaking in pieces, and tramples the residue with its feet. It’s different from all the beasts that were before it, as it has ten horns. This fourth beast is very much a revived Roman Empire, as Elevation Ministries posts The Last In A Lineage Of Four Beasts: the Roman Empire, the Greek Empire, the Merdo Persian Empire, and the Babylonian Empire.

The Sovereign of Revelation 13:5-10, will begin to take control of the ten king empire as he rises from his beginning as a little-horn, that is one of little authority, as presented in Daniel 7:8, Daniel 7:20, Daniel 7:23, and Daniel 7:24.  He will eventually seduce with intrigue the entire nation of Israel, Daniel 11:32. All legal precedent, traditional authority and power will be swept away before him, as he rises to destroy the “prince of the covenant”, the leader in Israel, that is the one who presides over the temple and the government, as foretold in Daniel 9:26.  He will depose three of the original ten kings,  Daniel 7:8. The Sovereign is of Jewish heritage, whether he or others recognize it, as Daniel 11:28 communicates he returns to his land, and his heart is moved in rage against the Jewish covenant.

Sectors trading higher included Homebuilders, ITB, Small Cap Growth, RZG, Spin Offs, CSD, Small Cap Industrials, PSCI, Small Cap Pure Value, RZV, Aerospace, PPA, Media, PBS, Retailers, XRT, Health Care Providers, IHF, Consumer Services, IYC, Global Consumer Discretionary, RXI, Global Industrial Producer, FXR, such as Ireland’s Ingersoll Rand, IR, and Germany’s Siemens, SI, and Biotechnology, IBB, all to new rally highs, very likely terminating the investment gains that have come as investors have rotated out of Bonds, BOND, beginning October 23, 2013.

Sectors trading lower included Global Industrial Miners, PICK, such as the UK’s RIO, on a lower Australian Dollar, FXA, and Brazil’s VALE, on a lower Brazilian Real BZF, Uranium Miners, URA, Copper Miners, COPX, Rare Earth Miners, REMX, Steel Producers, SLX, Metal Manufacturers, XME, Rare Earth Miners, REMX, and Agriculture Fertilizer Manufacturers, SOIL.  Currency traders through competitive currency devaluation are destroying investment opportunities in global mining and global industrial production. Their authority comes from the bond vigilantes having called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, beginning October 23, 2013.

Nations trading higher included Argentina, ARGT, Taiwan, EWT, South Korea, EWY, and Germany, EWG, to a new rally high. Thailand, THD, and Philippines, EPHE, bounced higher recovering some from yesterday’s strong trade lower; as these two nations trade in tandem, as Benson te remarks, “So ASEAN equities appear to trade in pairs: Singapore’s STI-Indonesia’s JCI and Philippine Phisix-Thailand SETi”.

Nations trading lower included Brazil, EWZ, EWZS, Australia, EWA, KROO, New Zealand, ENZL, Indonesia, IDX, Egypt, EGPT, The Nikkei, NKY, and Canada, EWC

The death of fiat money, that is Credit, AGG, and Currencies, DBV, CEW, was transmitted to yield bearing investment sectors Electric Utilities, XLU, such as AES, D, and NEE. Residential REITS, REZ, which took Real Estate, IYR, lower, as well as Global Utilities, DBU, this action came by short sellers who successfully sold these sectors lower now that it is after earnings season.

Gold Miners, GDX, and Silver Miners, SIL, traded lower, as all currency carry trade investment washed out of these sectors.

Global Consumer Staples, KXI, traded lower as PEP, IBA, PG, DEO, UN, K, SAFM, PPC, CAG, INGR. traded lowe.

A trade lower in the Interest Rate on the US Ten Year Note, ^TNX, to 2.70%, and a flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Flattner ETF, FLAT, trading higher in value and the Steepner ETF, STPP, trading lower in value, took Ultra Junk Bonds, UJB, and Junk Bonds, JNK, Senior Bank Loans, BKLN, and Distressed Investments, FAGIX, to their rally highs. Of note, the Finviz chart of Aggregate Credit, AGG, and the chart of Mortgage Backed Bonds, MBB, both show trading in the middle of consolidation triangles, violent movement can be expected, either up or down, from these trading patterns; I expect a violent move down, more than a move higher.

The WSJ reports Volatile Loan Securities Are Luring Fund Managers Again. Collateralized Loan Obligations Offer High Returns, And Risk.  Investment funds aimed at individual investors are barreling into collateralized loan obligations, a complex and volatile type of security that was shaken by the financial crisis. Lured by annual returns of as high as 20%, some mutual-fund managers are buying CLOs through investment funds that purchase stakes in loans to companies with low credit ratings. Another type of loan investment fund, business-development companies, also have begun buying CLOs, according to securities filings.

The NYT reports New Boom in Subprime Loans, for Smaller Businesses. A small, little-known company from Missouri borrows hundreds of millions of dollars from two of the biggest names in Wall Street finance. The loans are rated subprime. What’s more, they carry few of the standard protections seen in ordinary debt, making them particularly risky bets. But investors clamor to buy pieces of the loans, one of which pays annual interest of at least 8.75 percent. Demand is so strong, some buyers have to settle for less than they wanted. A scene from the years leading up to the financial crisis in 2008? No, last month.

Liberalism’s grand finale financial market rally, has been a pursuit of yield rally, as is seen in the Awesome Nine ETFs, PPA, IBB, PJP, CSD, RXI, RZV, RZG, XTN, FXR, trading higher on a rise in Distressed Investments, FAGIX, and as is seen in the Eurozone Stocks, EZU, trading higher on Eurozone Debt, EU, as well as a currency carry trade rally, as is seen in US Stocks, VTI, trading higher, on the Euro Yen carry trade, that is the EURJPY.

Under liberalism, credit and currency carry trade investing has created tremendous banker driven moral hazard based prosperity.

Under authoritarianism, diktat and debt servitude, will create crushing regional nannycrat enforced austerity.  For example, AP Portugal’s Latest Austerity Budget Wins Approval.

The overvalued stock markets is communicated by Abe Gulkowitz of The Punch Line as he writes in Zero Hedge Meager Growth But The Markets Roar Major Economies face debilitating deflation pressures.

In Europe, for example, the latest annual inflation statistics fell in twenty-three Member States, remained stable in one and rose in only four. The HSBC/Markit Flash China PMI came in at 50.4 in November, marking a two-month low and missing expectations.

The survey still indicated that the Chinese economy is expanding but it also raised fears that growth may be tailing off in the fourth quarter. China will be lucky if it manages to hit its official target of 7.5% growth in 2013, a far cry from the double-digit rates that the country had come to expect in the 2000s.

Growth in India (around 5%), Brazil and Russia (around 2.5%) is barely half what it was at the height of the boom.

In Europe, the Markit Flash Eurozone PMI fell from 51.9 to 51.5, the lowest reading for three months. The French index was particularly weak, the PMI was at its lowest level since June. Germany continued to improve but the rest of the eurozone seems to be languishing. Questions abound whether the EU risks following the path carved by the sluggish Japan in the 1990s.

Yet financial assets point to a worrisome asset inflation environment. Many have written off the likelihood that the Federal Reserve would begin QE tapering this year. As stocks hit new records and small investors, finally, return to the market, some analysts are getting worried.

Yes indeed there is cause to worry, as the death of fiat money, that is Aggregate Credit, AGG, and the Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, beginning with the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, was transmitted to fiat wealth, specifically Global Industrial Miners, PICK, Uranium Miners, URA, Copper Miners, COPX, Rare Earth Miners, REMX, Steel Producers, SLX, Metal Manufacturers, XME, Rare Earth Miners, REMX, and Agriculture Fertilizer Manufactuers, SOIL. on November 26, 2013, as is seen in their combined ongoing Google Finance Chart trading lower in value. Debt deflation working in competitive currency devaluation through the hands of the currency traders is destroying fiat wealth; first came the death of fiat money on October 23, 2013, and now comes the death of fiat wealth on November 26, 2013.

Liberalism as a paradigm, an age, and a way of life is history, as investors no longer trust in the world central banks policies of investment stimulus; they believe that such has crossed the rubicon of sound monetary policy, and has made “money good” investments bad. Credit instruments such as Emerging Market Bonds, EMB, and carry trade investment schemes such as the AUD/JPY are no longer able to generate fiat wealth.

Authoritarianism as a paradigm, an age and a way of life, is the way of future, as people place trust in the diktat of regional nannycrats and regional bodies such as the ECB, and statist public private partnerships for regional security, stability, and sustainability.

It’s reasonable to expect that the death of fiat money will be transmitted to other sectors of fiat wealth very soon as the bull market fades and the bear market that commenced on November 25, 2013, gets underway.

One might consider a program of short selling, and using the ETFs, STPP, HDGE, XVZ, GLD, JGBS, EUO, HYHG, SAGG, seen in this Finviz Screener, as a basis for margin in one’s brokerage account, where one might sell Small Cap Pure Value Stocks, RZV, and Small Cap Growth Stocks, RZG, short.

If God’s Word of Bible prophecy be true, there will never, ever be a sound money system, with free prices, nor any experience of liberty as perceived by Libertarians and Austrian Economists, like FA Hayek or Murray Rothbard of the Mises Institute, or Lew Rockwell of the Ludwig Von Mises Institute.  Such dreams of freedom are mirages on the authoritarian desert of the real; and such dreamers are those who worship their own will in matters of human philosophy, as communicated by the Apostle Paul in Colossians 2:18.

Rather than delve into the writings of men, I suggest that one reflect on the Doug Batchelor question Why Does The Bible Cloak Prophecies In Symbols?  as he writes on Animals and their parts, Colors, Metals, elements, and natural objects, Miscellaneous objects, Actions, activities, and physical states, and People and body parts.

On Wednesday, November 27, 2013, World Stocks, VT, and Global Financials, IXG, rose to new rally highs. Eurozone Nations Germany, EWG, Finland, EFNL, Spain, EWP, Finland, EWN, and Greece, GREK, traded higher.  Eurozone Stocks, EZU, popped to a new rally high as currency traders sold the Japanese Yen,  FXY, and held the Euro, FXE, steady, which resulted in a blast higher in the Euro Yen Currency Carry Trade, EUR/JPY, which closed at 138.69.  The US Dollar, $USD, UUP, rose to close at 80.27.

US Stocks, VTI, comprised of Large Cap Nasdaq Stocks, QQQ, the Russell 2000, IWM, and the S&P 500, SPY, rose to new rally highs.  The Nikkei, NKY, rose slightly.  However, Asia excluding Japan, EPP, Russia, RSX, Brazil, EWZ, Canada, EWC, traded lower as the currency traders also sold the Australian Dollar, FXA, the Brazilian Real, BZF, the Russian Ruble, and the Canadian Dollar, FXC. Of note, the chart of Brazil, EWZ, shows that it fell strongly through support.

World Stocks, VT, rose 0.4% to a new rally high, as most every sector traded higher.

Global Growth Sectors rose the most, in what is likely to be liberalism’s grand finale rally.

Timber Producers, WOOD, 1.6; the Timber Producers rose vertically in price.

Design Build, FLM, 0.9; FWLT, TPC, AGX, FIX, MTRX, STRL, PRIM, rose strongly (JEC, FLR, and CBI did not rally)

Metal Manufacturing, XME, 0.8

Social Media, SOCL, 0.7

Resorts and Casinos, BJK, 0.6

Yield Bearing Sectors

XLU, -0.2

DBU, -0.3

Global Industrial Producers,

PICK, 0.7

SLX, 0.6

General Sectors,

TAN, 1.3

CSD, 1.2

PNQI, 1.1

XTN, 1.0

RZV, 0.9

CARZ, 0.9

PPA, 0.8

FPX,  0.7

FDN, 0.7

RXI, 0.7

PSCI, 0.6

RZG, 0.6

XRT, 0.5

PBS, 0.5

FXR, 0.4

IGV, 0.3

PJP, 0.2

In yield bearing stocks, Leveraged Buyouts, PSP, and Shipping SEA, traded higher, but remained below their October 23, 2013 high. Utility Stocks, XLU, continued trading lower. Most every yield bearing sector, seen in this Finviz Screener, is trading below their October 23, 2013 high.

Global Financials, IXG, rose 0.3% to a new rally high; financial sectors traded as follows:

Money Center Bank Leader, LYG 3.2

Chinese Financials, CHIX, 2.1

Emerging Market Financials, EMFN, 0.9 led by Argentina’s BRF, BBVA, and Brazil BRAF, BBD, BBDO, ITUB,

European Financials, EUFN, 0.7 led by IRE, NBG, SAN,

Regional Banks, KRE, 0.5, led by SNV, HBAN, STI, USB, FITB, RF, SNV, PNC,

Investment Bankers, KCE, 0.2, led by MS

Stock Brokers, IAI, 0.2

Too Big To Fail Banks, RWW, 0.1 led by BK

Asset Managers, 0.1, led by BLK, STT, and WETF

Nation Investment, EFA, traded 0.2% higher, but remained below its recent highs.

YAO, 1.9

ECNS, 1.4

THD, 0.6

EPHE, 2.4

ARGT, 1.5

EWT, 0.7

EWY, 0.8

NORW, 0.7

EWZ, -1.2; all hot money has flowed out of Brazil; investors are now selling it short

EWA, -0.4

KROO, -1.6

TUR, -1.5

ENZL, -0.6

RSX, -0.6

EWC -0.5

Stocks of note include the following …  MU 4.2,  GM 3.1,  S 2.5,  PUK 1.8, WDC 1.8,  FDX 1.4, AMZN 1.4, BLK 1.3,  SNDK 1.2,  IR 1.1, DAL 1.0,  SAP 1.0,  SI 1.0,  PCLN 1.0,  ORCL 1.0,  YHOO 0.9, MSFT 0.9.  BT 0.7,  VOD 0.6,  QCOM 0.4,  STX 0.4,  XRX 0.3,  APH 0.1,  APH 0.1, AMAT -1.0,  TU -0.1,  MSI -0.1,  CA -.02,   VZ -0.2,  TNX  -0.4,

Global Industrial Miners, PICK, traded higher, even though the price of base metals, DBB, traded higher.  Copper Miners, COPX, traded lower on a lower price of Copper, JJC. Global Agriculture, PAGG, traded unchanged, even though the price of Agricultural Commodities, RJA, JJA, rose.

Small Cap Energy, PSCE, Energy Production, XOP, and Energy Service, OIH, traded lower, as Oil, USO, plummeted, and Natural Gas, UNG, continued its rally higher. Unleaded Gas, UNG, traded unchanged.  The price of Spot Gold, $GOLD, closed at $1,237.

Closed end equity funds, CSQ, GAM, JCE, seen in their combined ongoing Yahoo Finance Chart traded higher.

Call Write Bonds, CWB, the stock market investor’s weather vane, traded to a new rally high.

Japanese Government Bonds, traded slightly lower, as reflected in their inverse, JGBS, trading slightly higher.

There has been a death. The death of fiat money, that is Credit, AGG, and Currencies, DBV, and CEW, that commenced on October 23, 2013, when bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, and called the Interest Rate higher on the US Ten Year Note, TNX, higher from 2.48%, continued dieing even more today November 27, 2013.

Confirmation of such a death comes from two sources.

The first evidence that of death of fiat money comes from God’s Word, as the Revelation of Jesus Christ, commenced, as those things which must shortly come to pass, Revelation 1:1, flowed out, as He opened the First Seal of The Scroll of End Time Events, Revelation 6:1, releasing the First Horseman of the Apocalypse, the Rider on the White Horse, the one who has a bow without any arrows to effect a bloodless global coup d’etat, to take sovereignty from democratic nation states, and transfer that sovereignty to nannycrats working in policies of regional governance diktat and schemes of totalitarian collectivism debt servitude; this is clearly seen in the chart of Nation Investment, EFA, trading lower from October 23, 2013.

And the second evidence is of the death of fiat money is Olivier Blanchard, one of liberalism’s thought leaders, who spoke to the importance of lenders of last resort in liberalism, as he delivered Liberalism’s Eulogy in IMF speech Monetary Policy Will Never Be The Same.  Turning to liquidity provision: in advanced countries (but, again, the lesson is more general), we have learned that runs are relevant not only for banks, but also for other financial institutions, and for governments. In an environment of high public debt, rollover risks cannot be excluded. An implication, and one of the themes emphasized by Paul Krugman, is that it is essential to have a lender of last resort, ready to lend not only to financial institutions but also to governments. The evidence on periphery sovereign bonds in the Euro area, pre and post the European Central Bank’s announcement of outright monetary transactions, is quite convincing on this point.  Bloomberg reports PBOC Will Basically End Normal Yuan Intervention.

Although fiat money is dead as a doornail, investors rallied World Stocks, VT, in very much a zombie fashion, on margin debt, and currency carry trade investing. Whereas the death of fiat money, transmitted death to Emerging Markets, EEM, on October 23, 2013, terminating profitable investment in many Asian Nations, including, IDX, THD, EPHE, EWT, EWM, EWS, and EWY, as well as in South America Nations of EWZ, EPU, and Major World Markets, such as Russia, RSX, as well as Sweden, EWD, a country with a large current account deficit.

And the death of fiat money transmitted death to Design Build, FLM, Metal Manufacturing, XME, Resorts and Casinos, BJK, such as MGM, and Timber Producers, WOOD, such as SWM, PCL, MV, DEL, LPX, GLT, WY, RYN, and PCH, on October 23, 2013. And the death of fiat money transmitted death to Yield Bearing Utilities, XLU, such as AES, D, and NEE, and Global Industrial Production, specifically, Industrial Miners, PICK, such as Australia’s BHP, and Steel Producers, SLX, on November 7, 2013.  Globalism died October 23, 2013, when the bond vigilantes calle the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.  Regionalism is now the new dynamo for economic life; Europe will be the model region for the new normal of dikat money.

Ultra Junk Bonds, UJB, and Junk Bonds, JNK, traded higher, while the bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, and called the Interest Rate on the US Note,  ^TNX, higher to now be established at 2.75%.  Long Duration Tips, LTPS, Emerging Market Bonds, EMB, US Treasuries, TLT, World Treasury Bonds, BWX, and Mortgage Backed Bonds, MBB, led Aggregate Credit, AGG, lower, as most every credit investment seen in this Finviz Screener, traded lower.

The Japanese Yen, FXY, the Australian Dollar, FXA, and the Canadian Dollar, FXC, led Major World Currencies, DBV, lower, and the Brazilian Real, BZF, led Emerging Market Currencies, CEW, lower.

Today’s rally in stocks is simply the continuation of a zombie rally with stocks rising on a risk-on margin credit and currency carry trade rally. Fiat wealth, that is World Stocks, VT, and Global Financials, IXG, and Nation Investment, EFA, were zombified on November 26, 2013, by margin credit and Euro Yen Currency Carry Trade, that is EURJPY, investment.

On Thanksgiving Day, November 2013

Liberalism’s entire financial system has been based on ever-increasing debt to prevent it from imploding. Chris Martenson writes in Mises The Fed Must Inflate. For the Fed to achieve anything even close to the historical rate of credit growth …  (Seen in the Chart of Total Credit Market Debt, TCMD, which is produced quarterly and has last reading for 2013:Q2 of 57,562.88 Billions of Dollars, and which is a measure of all the various forms of debt in the U.S. That includes corporate, state, federal, and household borrowing. So student loans are in there, as are auto loans, mortgages, and municipal and federal debt. It’s pretty much everything debt-related) …  the dollar will have to lose a lot of value. This may in fact be the Fed’s grand plan, and it’s entirely about keeping the financial system primed with sufficient new credit to prevent it from imploding.

Edward Harrison of Credit Writedowns writes The Limits Of Monetary Policy So the central bank lowers interest rates to stimulate credit growth. As a result, financial institutions deem a greater number of projects and … If the secular stagnationists are right, there will still be a shortage of demand when the future comes around, so there will be a need for ever-greater injections of monetary stimulus (presumably through quantitative easing) in order to avoid an ever-worsening recession. Sir Mervyn King pointed this out shortly before he retired from the BoE.  Monetary policy’s transmission channels are more geared to asset prices than to the real economy. This is why I call the over-reliance on monetary policy.

The bond vigilantes came into control of the Interest Rate on the US Ten Year Note, ^TNX, on October 23, 2013, and as a result the US Federal Reserve’s monetary policies, as well as those of the other world central banks no longer support credit growth, as investors no longer trust that the policies that have supported expansion of  key GDP investment areas.

First, Global Growth Sectors, Timber, WOOD, and Design Build and Construct, FLM.

Second, Global Hot Money Nations: Thailand, THD, Philippines, EPHE, and Brazil EWZ

Third, Yield Bearing Sectors: Electric Utilities, XLU.

Fourth, Global Industrial Production Sectors:, Global Miners, PICK, Steel Producers, SLX, and Metal Manufacturing, XME

The combined investment chart of these, when plotted with International Corporate Bonds, PICB, shows these to be losing investment value on the exhaustion of credit, coming at the hands of bond vigilantes who are steepening the 10 30 US Sovereign Debt Yield Curve, STPP, calling the Bellwether Interest Rate, ^TNX, higher.

Failure of trust in the world central banks’ monetary authority is causing not only monetary deflation, seen in the US Fed’s report of M2 money supply growth turning negative, and is also causing investors to derisk out of capital intensive investments.  The traditional plan of the Fed Reserve cannot work and will not work, as the world pivoted from the era of credit growth to credit decline, and era of monetary growth to monetary decline, on October 23, 2013, when Jesus Christ, acting in dispensation, that is the administration of all things economic and political, for the completion of every age, opened the first seal of the scroll of end time events, and released the Rider on the White Horse, who has a bow without any arrows to effect global coup d’etat to transfer sovereignty from democratic nation states to regional nannycrats and regional bodies such as the ECB. Thus enabling the bond vigilantes to call the Interest Rate on the Ten Year Note, ^TNX, higher from 2.48% utterly terminating Credit, AGG, and Currencies, DBV, and CEW.

On October 23, 2013, the world reached the economic tipping point whereby monetary stimulus could no longer sustain economic growth. Furthermore much of the stimulus is now left it on deposit at the Fed as an interest-bearing, zero-risk asset.

Quietly, the world central banks have came out with a new end game, that is to roll out the antifragile financial system (an Alberto Mingardi Econolog Econolib term) where banks of all types, the Too Big To Fail Banks, RWW, the Regional Banks, KRE, the Nasdaq Community Banks, QABA, and Savings and Loans, S&Ls, such as BOFI, STSA, EBSB, ISBC, STSA, PULB, BANR, are going to be integrated into government, and will will be known as the government banks, or gov banks for short, and will serve as the bedrock for regional governance, which replaces democratic nation state rule.

The Fed, and other central banks don’t have an endgame that includes helping the investor, the working class or middle class. Monetary policies of easing and monetary tools such as $85 billion of purchasing of debt is history, that is history in the sense that it has any useful benefit.

The world central bankers are effecting a global economic and political coup d’etat, … with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … pivoting the world from liberalism’s regime of nation state democracy into authoritarianism’s regime of regional statism, specifically regional governance and totalitarian collectivism, except for the Big Apple, as the WSJ reports New York City Takes Left Turn.

It’s inevitable that money market fund, MMF, will break the buck, because they are bond based, and interest rates are rising quickly destroying the underlying investment. Thus capital controls are coming soon. Arnold King writing in Ask Blog has it right Rogoff Eventually Says That One Source Of Financial Crisis Is Ordinary Debt. One of the reasons that debt is over-utilized is that it often comes with a government guarantee, either explicit or implicit. One solution he proposes is to get rid of bank deposits. Instead, he would have the Fed run ATMs, and the only transaction accounts people would have would be deposits at the Fed, which I’m guessing would not earn interest. In order to earn interest, people would have to invest in risky securities.

On Friday, November 29, 2013,  Daily FX reports EURJPY Gaps Open Higher To 139.06. And the ongoing Google Finance Chart of the EUR/JPY communicates that for the day and for the last five months, beginning in July 2013, this currency carry trade has given seigniorage, that is moneyness to World Stocks, VT, Global Financials, IXG, and Nation Investment, EFA; but of note, Nation Investment, EFA, has not attained its October 23, 2013 high, when Jesus Christ, opened the first seal on the Scroll of End Time Events, and released the Rider on the White Horse, to take sovereignty from democratic nation states and transfer it to regional nannycrats.

Ever since the bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, rising, and called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, debt deflation has been underway, commencing the death of fiat wealth, seen in four key GDP investments areas:

First, Global Growth Sectors: Timber, WOOD, Small Cap Energy, PSCE, and Energy Production, XOP, Energy Service, OIH, Social Media, SOCL, Solar Energy, TAN, Resorts And Casinos, BJK, Design Build, FLM,

Second, Global Hot Money Trade Nations: Thailand, THD, Philippines, EPHE, and Brazil EWZ.

Third, Yield Interest Bearing Sectors: Electric Utilities, XLU, such as AES, D, and NEE.

Fourth, Global Industrial Production Sectors: Industrial Mincers, PICK, such as BHP, Steel Producers SLX, and Metal Manufacturers, XME.

Credit, AGG, failed on October 23, 2013. The value of US Ten Year Note, TLT, has fallen 3.1%, Eurozone Debt, EU, 1.6%, Emerging Market Bonds, EMB, 1.9%, Mortgage Backed Bonds, MBB, 0.7%.

Competitive currency devaluation has been ongoing, at the hands of the currency traders; and even by some central banks, as The Czech National Bank’s drove its koruna down by 4.4 percent versus the euro on Nov. 7, the most since the single currency’s creation in 1999, when it intervened to spur inflation. Governor Miroslav Singer pledged to keep selling koruna “for as long as needed” to boost growth.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, failed. on October 23, 2013.

In the last month, Finviz charts communicate that the Euro, FXE, has fallen 1.3%, and the Yen FXY, FXY, has fallen 3.9%, giving monetary inflation to Global Financials, IXG, of 1.2%, and giving monetary inflation to World Stocks, VT, of 0.6%, but giving monetary deflation to Nation Investment, EFA, of 0.6%, as the Brazilian Real and the Australian Dollar have fallen more than the Japanese Yen.

The Brazilian Real, BZF, has fallen 5.6%, The Yen, FXY, 3.9%, giving monetary deflation to Brazil, EWZ, of 8.7%.  And The Australian Dollar, FXA, has fallen 4.0%, The Yen, FXY, 3.9%, giving monetary deflation to Australia, EWA, of 5.1%.

An important economic principle is that the of the failure of fiat money, Credit, AGG, and Currencies, DBV, CEW, has transmitted death to investors in Australia, EWA, Thailand, THD, Philippines, EPHE, Indonesia, IDX, Brazil, EWZ. This as Australia’s Bank, WBK, and Brazil, BBDO, BBD, BSBR, and ITUB, along with Peru’s BAP, and Chile’s ECH, have been decimated by the failure of fiat money; these financial institutions stand as white washed tombs in the former age of liberalism.

The people living in Australia, Thailand, Philippines, and Indonesia, have had their economies and their GDP capability literally wiped out overnight, because of the failure of their money, at the hands of the currency traders and the bond vigilantes. These people have lost their investment seigniorage, as their nation’s economies have been destroyed by the rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48% on October 23, 2013.

Inasmuch as their currencies no longer float, but rather sink, these can no longer be termed with the expression “citizens”; they are no longer Aussies, Thais, Filipinos, nor Indonesians, but rather, Aseans, residents of the region of Asia.  Likewise, the Brazilians, the Peruvians be residents of South America.

These people are no longer citizens of a democratic nation state, rather they are debt serfs, soon to experience diktat money, whose seigniorage, comes from the mandates of authoritarians and nannycrats overseeing the factors of production, commerce, banking and trade, as they increasingly participate in schemes of regional totalitarian collectivism.

In contrast, through the genius of Milton Friedman, the father of Liberalism’s Free To Choose Banker Floating  Currency Regime, Argentina’s GGAL, BFR, BMA, Ireland’s IRE, Spain’s SAN, Greece’s NBG, and Germany’s DB, as well as the Too Big To Fail Bank leaders, BAC, C, BK, MS, JPM, SNV, as well as Life Insurance leader, PUK, stand as gems of Euro Yen EUR/JPY, that is FXE:FXY, currency carry trade investing.  With the savvy investor the great winner under liberalism’s swell.

What was an intoxicating swell for the those in Europe, was a stabbing death for those in the Emerging Markets, EEM, such as Indonesia, IDX.

In the terminal phase of the age of Liberalism, the greatest swing in wealth came not from the sovereignty of democratic nation states, but from a global currency war between the currency traders and the world central banks. Liberalism’s final debt trade and currency carry trade investing gave  strong seigniorage to the most toxic of investments. For example the Finviz Chart of The National Bank of Greece, NBG, shows that popped higher the week ending November 29, 2013 to rally near its October 23, 2013 high.

Out of increasing waves of unwinding currency carry trade investment, will come the new economic order of regional economic governance. Specifically out of sovereign insolvency, banking insolvency and corporate insolvency will come regional nannycrat policies of fiscal, economic, and monetary diktat, and schemes of regional totalitarian collectivism to establish authoritarianism.

At the end of the day and month, FX Street reports EURJPY Peaks At A 5 And 1/2 Year High At 139.27. Investing.com charts shows the weekly chart of the EUR/USD at strong resistance at 136.11. And the Invensting.com chart shows the weekly chart of the USD/JPY at strong resistance at 102.33. The EURJPY has likely topped out, and will not be providing further seigniorage to fiat wealth, that is to Global Financials, IXG, World Stocks, VT, and Nation Investment, EFA; one can expect see these fall lower lower in their ongoing combined Yahoo Finance Chart.

Liberalism’s peak prosperity has been achieved on both the pursuit of yield, and investment in the Euro Yen Currency Carry Trade, that is EUR/JPY.

Global Financials, IXG, traded to a new rally high; financials trading higher included  India Earnings, EPI , European financials, EUFN, on a higher UBS, CS, IRE, GREK, DB, EMFN and BFR.  Financials trading lower included Japan’s SMFG, and MFG, as well as Brazil Financials, BRAF.

World Stocks, VT, traded to a new rally high; sectors trading to new highs included CHII, FDN, PNQI, PSCI, RZG, QQQ, RZV, PKB, SEA, IBB, FXR. Sectors recovering from a strong sell included BJK, PICK, SLX, EMIF; sectors trading lower today included Solar Energy, TAN.

Credit providers surging to new rally highs included Subprime Auto Lender, CACC, Pawn Shop Lender, FCFS, Student Lender, SLM, and Small Business Lender, AXP.  And Amazon, AMZN, Priceline, PCLN, and Netflix, NFLX, rose parabolically higher, taking Internet Retailers, FDN, to a new rally high.

Of note, the most risk of yield bearing sectors Leveraged Buyouts, PSP., such as DLPH, traded to a new rally high; while other  yield bearing sectors traded lower today; included Real Estate, IYR, Commercial Office Reits, FNIO, and Mid Cap Residential REITS, REZ, such as SUI, SNH, MAA, CPT, AIV, North American Energy Partnerships, EMLP.

For the first time, Dividend Growth  VIG, traded lower. Liberalism as an age and paradigm no longer provides increasing dividends, as there has been a failure of trust in debt based and capital intensive based equities, such as Mortgage REITS, REM, Residential REITS, REZ, North American Energy Partnerships, EMLP, and Electric Utilities, XLU, and as there has been a failure in Major World Currencies, such as the Australian Dollar, FXA, and in Emerging Market Currencies, such as the Brazilian Real, BZF.

Nation Investment, EFA, and Emerging Markets, EEM, traded higher; but remained below their October 23, 2013 highs; nations trading higher today including EZU, EIRL, GREK, EWI, EWG, INP, SCIN, EPHE, EWY, EWT, EWM, EWW, ARGT, EIS and EWU, EWUS, the latter two’s seigniorage came from a 0.9% buy of the British Pound Sterling, FXB, and a 1.2% sell of the Japanese Yen, FXY, which fueled UK Financial Firms, such as PUK, LYG, strongly higher. Nations trading lower included developed economies Australia, EWA, and New Zealand, ENZL, and emerging economies Indonesia, IDX. Gold Miners, GDX, traded higher 2.2% higher, on a higher price of Gold, GLD, and a higher price of Silver. Spot Gold, $GOLD, traded higher to close at $1,250, which is slightly higher than cash production cost for a number of miners. Traders bought volatility, ^VIX, with VIXY, VIXM, XVZ.

On Friday November 29, 2013, the world stands at the apex of a historic pivot point with liberalism on one side and authoritarianism on the other. Please consider the chart of Closed End Equities Fund CSQ, evidencing investment choice; and Closed End Debt Funds, PTY, AWP, PFL, RCS, and EIM, evidencing debt servitude. The former stands a perfect maturity in monetary inflation, while the latter have passed into monetary deflation, as can be seen in their combined ongoing Yahoo Finance chart.

Liberalism’s grand finale rally has been characterized by a pursuit of yield. Wes Goodman of Bloomberg reports “The extra yield corporate bonds offer over Treasuries was one basis point away from the narrowest level in six years as the Federal Reserve’s pledge to keep interest rates low drives a search for income”. And Tracy Alloway of Bloomberg reports “US banks accelerated their purchases of structured products in the third quarter of the year, pushing their holdings of the higher-yielding assets to record levels as they seek to offset continued profit pressure from ultra-low interest rates. Structured finance investments surged to $69bn in the three months to September, a 45% increase on the same period last year and the highest level since the FDIC began breaking the individual figure out in 2009”

Monetary inflation was a characteristic of liberalism. But as investors lost trust in the monetary policies of the world central banks, fiat money has begun to lose its moneyness. Soon fiat money will utterly die, like totally die, and the world will pass into authoritarianism, where the regional integration economic mandates of nannycrats, in public private statist partnerships, provides moneynesss.

In producing peak prosperity, through currency trader’s 1.1% sell of the Yen, FXY, and the 0.3% buy of the EURO, FXE, this week ending November 29, 2013, drove the European Financials, EUFN, 2.0% higher, with Greece’s Bank, NBG, 8.8%, Ireland’s Bank, IRE, 6.4%, and Spain’s, SAN, 1.9% higher, while forcing Japan’s Bank SMFG, 3.4% lower, and a 2.5% rise in Greece, GREK, 0.7% rise in Ireland, EIRL, a 2.1% rise in Germany, EWG, a 1.0% rise in Eurozone Stocks, EZU, a 0.3% rise in Global Banking, IXG, and a 0.1% rise in World Stocks, VT, to achieve liberalism’s peak wealth.

Of note, peak nation investment, EFA, occurred when the US Dollar, $USD, UUP, no longer fell in value, but started to rise when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, resulting in the death of fiat money, that is Credit, AGG, and Currencies, DBV, and CEW.  The US Dollar, $USD, UUP, no longer serves as the world’s reserve currency, with the result that the world’s dynamo of globalism, is failing to reward investment choice, which is resulting in the rise of regionalism to establish regional security, regional stability and regional sustainability.

Liberalism was an age that provided great financial reward to investors as is seen in the weekly chart of Jazz Pharmaceuticals, JAZZ. David Brown writes in Seeking Alpha, that the company is Trading for 19x current earnings estimates and 14x forward earnings estimates. Nearly all covering analysts have revised EPS estimates up in last 30 days. 17% projected EPS growth for the current quarter, 24% next year, 23% over the next 5 years. Yet, I comment that its stock chart suggest a great fall potential of this highly successful Biotechnology, IBB company.  And liberalism was an age that profited those invested in US Oil and Gas Refiners, such as Tesoro, TSO,  which has risen 540% int five years.

Mike Mish Shedlock writes It’s Time For Banks To Be Banks, Not Hedge Funds Or Slush Funds.  I have to agree, up to a point; one bank that has excelled in responsible economic lending is Bridge Bank, BBNK, Marketwired reports Bridge Bank Ranks Third Amongst Most Active SBA Lenders.

In his article Mr. Shedlock calls for a sound money system, one that is based upon gold bullion. Such be dreaming of the Austrian economics mind, and is a mirage on the authoritarian desert of the real. Jesus Christ, acting in in dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, is tasked by God The Father, to fulfill and perfect every age, bringing it completion much like a ship’s captain completes the manifest before setting sail.

Liberalism was an age and a paradigm whose objective was to make investors wealthy via the seigniorage of a banker regime consisting of a speculative leveraged investment community and a US Dollar Hegemonic Empire, through the process of globalism, based upon the sovereignty of democratic nation states, founded upon the most extreme financialization of equity and debt as is possible, as has been foretold in bible prophecy of the Statue of Empires in Daniel 2:25-45.  It was God’s desire from eternity past to create two massive legs of iron wealth, these being the British Empire, and the US Dollar Hegemonic Empire, immediately before He brings forth the Two Feet Empire, with its miry mixture of policies of regional economic diktat in the world’s ten regional zones, and totalitarian collectivism in mankind’s seven human institutions.

God ordained from eternity past that there be adept individuals living in creativity doing great things in Greenwich, CT, Louisville, CO, Lone Tree, CO, San Jose, CA, Palo Alto, CA, or Midland-Odessa, TX,  and a whole host of other modern cities. And that there be psychopaths, living in clientelism and dependency on transfer payments, SNAP Food Stamps, Medicaid, and Public Housing in in the Mission District in San Francisco, CA, and in other skid rows, as well as living next door to you!

Any moralizing by Austrian economists, coming from the reasoning of liberty, or scolding from Socialists, coming from the presentation of egalitarianism, is what the Apostle Paul calls subjective will worship, the worship of one’s own beliefs coming from philosophy or religion, and is a position that is not based upon the objective truth of New Testament Scripture.

Jesus Christ on November 27, 2013, during the week of Thanksgiving 2013, manifested peak liberalism in the investment marketplace creating peak prosperity, immediately before he pivots the world’s economy from liberalism into authoritarianism.

He perfected the banker regime through the speculative leveraged investment community and the financialization of Equity Investments, such as FXR, PPA, IBB, PJP, CSD, RXI, RZV, RZG, and XTN, as well as through the agency of moral hazard Credit Investments such as Distressed Investments, FAGIX, Leveraged Buyouts, PSP, Ultra Junk Bonds, UJB, and Junk Bonds, JNK, as people placed full faith in trust in Stock Brokers, IAI, and the minting, that is the coinage of Asset Managers, such as BLK, EV, STT, WETF, IVZ, FNGN, BEN, VOYA, and Other Investment Overlords, such as DNB, MORN, BR.

Since the 2008 financial collapse, great investment reward came to those who trusted in Ben Bernanke monetary policies to revitalize economic growth and provide fiat wealth through QE; cases in point be Pure Small Cap Growth, RZG, RBC Bearings,  ROLL, and Pure Small Cap Value, RZV, POOL.  Over the last five and one half years there has been a risk-on trade, debt based and currency carry trade investment bonanza for the savy investor, where the greatest gain went to those invested in the most risky of stocks, those being the Small Cap Pure Value Stocks, RZV. These got a full drink of Ben Bernanke’s investment cool aid, or perhaps better said full helicopter money drop. Monetary inflation galore came to those who received Paulson’s Gift.

A Nobel Peace Prize should have been awarded to Treasury Secretary Hank Paulson. It was on Columbus Day 2008, that Alan S. Blinder in his book After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead, wrote Paulson made a no strings offer to the banks to trade out money good US Treasuries for toxic debt owned by the banks, specifically assets like those traded in Fidelity Mutual Debt Funds FAGIX, this became known as the TARP program.

Pietro Veronesi of The National Bureau Of Economic Research reports Paulson’s Gift. “We calculate the costs and benefits of the largest ever U.S. Government intervention in the financial sector announced the 2008 Columbus Day weekend. We estimate that this intervention increased the value of banks’ financial claims by $131 billion at a taxpayers’ cost of $25 and $47 billions with a net benefit between $84bn and $107bn. By looking at the limited cross section we infer that this net benefit arises from a reduction in the probability of bankruptcy, which we estimate would destroy 22% of the enterprise value. The big winners of the plan were the three former investment banks and Citigroup, while the loser was JP Morgan”.

The provision of TARP as a Fed Monetary policy was the genesis and foundation of QE, which underwrote the expansion of liberalism by securing the seigniorage of investment choice, and established the dynamos of corporate profit and global growth based upon investment opportunities in nation states, and underwrote trust in bankers, such as JP Morgan, JPM, as well as Savings and Loan, such as Bofl Holding, BOFI, carry trade investing and credit, in particular Treasury debt, TLT, and which provided economic action of inflationism, and provided great fiat wealth seen in World Stocks, VT, rising to its November 29, 2013, value of 58.50, and which has produced economic life in both crony capitalism and its luxury, as well as clientelism and its dependency, even extending to support  European socialism, and Greek socialism.

Doug Noland writes in Safehaven.com With the average stock, The Value Line Arithmetic Index, ^VAY, up 40% in 12 months, “global government finance Bubble” excess has certainly turned more publicly conspicuous. Predictably, there is more than ample rationalization and justification. Valuations are not at “Bubble extremes”, is the popular refrain. But at least there’s some superficial attention paid to the “Bubble” issue. At the same time, the predominant attitude in the markets seems to be “if there’s a lot of talk of Bubbles, then the markets surely have much further to run.” I found Byron Wien’s Wednesday comment on CNBC telling: “You don’t stay out of the market waiting for the moment of truth.”

The moment of truth is coming very soon as inflationism is turning to destructionism. When the Lord pivots the world fully in authoritarianism, the counterpart of today’s will worshipers, whether they be philosophers, or priests, or financial seers, will be worshipers of the beast.

George Orwell wrote “The real division is not between conservatives and revolutionaries, but between authoritarians and libertarians.”

I extend that concept to write The real division is between those of fiat, having life experience out of human philosophy or religion, and the elect of God, who live and move and have their being out of Him.

All be spiritual beings, who make decisions based upon the movement of the Spirit of Righteousness, or the movement of Spirit of Iniquity.

All be economists. And economics is synonymous with ethics, as when one says he has economic regard on an issue, he is saying he has ethical regard on the issue. Every person acts in dispensation, that is in household administration of things civil, monetary and political, and these action come from one’s convictions in philosophy or religion. Thus economics is either a philosophy or a religion. Economics is defined as the quality and type of ethical experience present between a person, and another or others, corporations and the state, that is government

Mike Mish Shedlock writes War Between Spain And Germany Erupts Over Watered Down Stress Tests.  I comment that Doug Noland writing in Credit Bubble Bulletin has posted many times that liberalism was an age characterized by wildcat finance. I relate that authoritarianism is an age characterized by wildcat governance where nannycrats bite, rip and tear one another apart to become the top dog despot and top dog seignior.

4) …. Metadata: it’s one essence that is known by the government. By collecting and analyzing one’s metadata, the government is able to compile a “digital persona” of one’s essence, and thus is able to creating a profile of one’s convictions; thus the government is able to know you and what you believe, as it segregates you out from others.

Dahlia Lithwick and Steve Vladeck of Slate write by analyzing our metadata over time, the government can separate the signal from the noise and use it to identify behavioral patterns. And by analyzing the metadata of every American across a span of years, the NSA could learn almost as much about our health, our habits, our politics, and our relationships as it could by eavesdropping on our calls. It’s not the same thing, but the more data the government collects, the more the distinction between metadata and actual content disappears. And that’s just telephony metadata. This week’s disclosures confirmed that the government has collected years’ worth of our Internet metadata as well. And there’s little reason to believe that other species of metadata have not also been vacuumed up, perhaps our financial records, software metadata, and the potential goldmine of our everyday commercial transactions.

We might well think we don’t have an expectation of privacy in information we separately provide to Amazon, Bank of America, Costco, Facebook, and Walgreen’s, but only the government is in a position to aggregate all of that data and thereby build a comprehensive accounting of our lives by examining everything but the “content.”  The Obama administration has insisted that it is not actually accessing these vast stores of data without some kind of individualized suspicion. But such restraint is not required under any statute, and future administrations may not feel similarly circumspect. In any event, every new round of NSA disclosures brings with it fresh reports of “compliance incidents,” where such records were accessed despite such promises. These concerns highlight the significance of the pending legal challenges to the telephony metadata program. We may not get as excited about the government’s sweeping collection of our metadata as we have been over eavesdropping, subway searches, or stop-and-frisk policies, but that may only be because we don’t fully appreciate just how invasive and intrusive these separate data streams can become, once someone is in a position to put them all together.

5) Summary: Out Of Low Inflation Comes Systemic Risk And Not The Risk Of Inflation Perse.

A fall in the money supply and even a fall in the rate of growth in money portends economic increasing recession, Ambrose Evans Pritchard writes in Eurozone M3 Money Plunge Flashes Deflation Alert For 2014. Eurozone money supply growth plummeted in October and loans to firms contracted at a record rate. The European Central Bank said M3 money growth fell to 1.4pc from a year earlier, lower than expected and far below the bank’s own 4.5pc target deemed necessary to keep the economy on an even keel. Monetarists watch the M3 data – covering cash and a broad range of bank accounts – as an early warning signal for the economy a year or so in advance. “This a large dark cloud hanging over the eurozone in 2014; it means the public debt ratios in Southern Europe are at greater risk of exploding,” said Tim Congdon from International Monetary Research.

And Mr. Pritchard goes on to communicate that lack of lending reflects and also causes recession.  Jacques Cailloux from Nomura said the ECB’s actions have yet to restore a functioning interbank market in Europe, and it remains unclear whether the nascent recovery will be enough to lift the region out of “dangerously low inflation”. Nomura said eurzone risks being trapped in “secular stagnation” until the middle of the decade.  The dire credit data may force the ECB to take bolder measures. The Süddeutsche Zeitung said the bank is exploring a variant of the Bank of England’s funding for lending, offering credit lines to banks provided loans are passed on to credit-starved firms.

Lars Christensen of Danske Bank relates “The debt problem in Italy will be much worse if they let nominal GDP fall, leading to yet more austerity.”

Mario Draghi warned that low inflation makes it harder for crisis states in Southern Europe to control their debt trajectories while at the same time carrying out internal devaluations within EMU to regain competitiveness, though he denied that the two goals are inherently contradictory. “If average inflation is allowed to drift too low, adjustment runs into major headwinds as demand suffers and real debt burdens rise,” he said.

Jack Ewing of The NYT writes Tepid Data From Euro Zone Leaves Open Debate on Price Downdraft

Low inflation was the result of falling energy prices, Eurostat said, while the cost of food rose an estimated 1.6 percent and services 1.5 percent. Prices of industrial goods rose just 0.3 percent.

Some economists, noting a pickup in prices for services, saw the rise in inflation as a sign that deflation fears were overblown.

“The data confirm our assessment that the fall of the inflation rate in October was an outlier and the euro zone is not heading for deflation,” Christoph Weil, an economist at Commerzbank, said in a note.

But others warned that deflation, once it starts, could plunge Europe back into crisis and revive doubts about the survival of the euro zone. Deflation can lead consumers to delay purchases in anticipation of ever lower prices, undercutting corporate profits and causing companies to stop investing in new plants and equipment.

Analysts at the advisory firm Oxford Economics calculate that if the euro zone suffered deflation, unemployment could rise to 16.5 percent by 2018. At the same time, Greece and other hard-hit countries in Europe would have even more trouble meeting their obligations, because economic output would shrink and tax receipts would dwindle.

“While there has been a lot of talk about deflation in the euro zone, we think that the implications of such a scenario have not been fully grasped,” Oxford Economics said in a report issued Friday. “Without decisive policy action, a euro zone breakup would be hard to avoid in this scenario.”

New York Fed economists Giannoni and Herman, present that Price Inflation Has Stabilized. Since the early 1990s, the PCE deflator has remained remarkably close to a 2 percent trend line. It has continued to track this trend since the beginning of Chairman Bernanke’s tenure in January 2006, despite a dramatic financial crisis and the Great Recession. By committing to stabilizing inflation over the long run, the FOMC is de facto at least partially stabilizing the price level around a trend line.

Yet, what they do not present is that systemic risk has gone off the scale, and that once a global credit bust and financial system occurs, then all bets are off, and recession could likely occur. I am of the opinion that massive CPI inflation, and headline inflation is a political event and not an economic event.

Fiat money, that is Credit, AGG, and Currencies, DBV, and CEW, died October 23, 2013, with the bond vigilantes calling the Interest Rate on the US Ten Year Note higher from 2.48%, which has destroyed not only US Treasuries, TLT, but also Emerging Market Bonds, EMB.

The failure of Emering Market Bonds, EMB, has compelled those seeking funds to seek money via Dollarization.

Enda Curran of the WSJ reports “Asia’s market for foreign-currency loans is booming. Banks across the region are lending record sums in the ‘G3 currencies’ , the U.S. dollar, the Yen and the Euro,  even as economic growth slows and bad debts continue to rise in places like China and Korea. So far this year, loans in these currencies amounting to $133.4 billion have been issued in Asia, excluding Japan  — 54% more than during the same period a year earlier and more than in all of 2011, the record year for such loans, according to Dealogic.”

Tanya Angerer of Bloomberg reports “Indonesia is planning a sale of U.S. dollar-denominated global bonds next year as Barclays Plc predicts issuance in 2014 will exceed this year’s record. Southeast Asia’s largest economy expects to raise 19% of its debt financing next year from notes denominated in dollars, euro or yen. The Philippines yesterday hired six banks to arrange a series of investor updates next week. US currency note sales in the region outside Japan this year reached a record $123.6 billion last week, exceeding 2012’s all-time high of $121.4 billion.”

Shaun Richards writes on the failure of monetary growth; the growth rate in the money supply is faltering. The Dwindling Euro Area Money Supply And A Liquidity Trap. The news on this was yet again a disappointment. The annual growth rate of the broad monetary aggregate M3 decreased to 1.4% in October 2013, from 2.0% in September 2013.1 The three-month average of the annual growth rates of M3 in the period from August 2013 to October 2013 decreased to 1.9%, from 2.2% in the period from July 2013 to September 2013.

As you can see the rate of growth is declining and if we project that forwards we will have concerns for the Euro area economy as we move through the spring and summer of 2014. This is not inspiring when it is supposed to be recovering and growing after the recession which has just ended.

If we look to the amount of credit being advanced an even grimmer picture emerges from the gloom. the annual growth rate of total credit granted to euro area residents was more negative at -1.0% in October 2013, from -0.8% in the previous month.

Actually Euro area banks were lending to governments so the picture for the private-sector was even worse. Among the components of credit to the private sector, the annual growth rate of loans stood at -2.1% in October, compared with -2.0% in the previous month.The annual growth rate of loans to nonfinancial corporations stood at -3.7% in October, compared with -3.6% in the previous month.

As you can see the picture gets worse as we progress because it is lending to businesses which is in the worst state of all.

A liquidity trap; this is a theoretical concept in economics where monetary policy loses effectiveness. Actually it is mostly defined in terms of interest-rates when they approach zero. But the reality of the credit crunch is wider than that as other monetary measures are lauded and praised but the truth is that their effectiveness has disappointed too.

Another phrase for this situation was called “pushing on a string”. If we look to analyse that we can take a look at what is called narrow money as the ECB can “push” on that.

the annual growth rate of M1 stood at 6.6% in October 2013, compared with 6.7% in September.

As you can see the ECB has been pushing hard but even there the effect may be fading. Now let me add a nuance as you can regard a narrow money measure such as M1 as a money supply but a wider one such as M3 is much more a measure of money demand. So if we take a sweeping simplification we see that the ECB is supplying money that the economy does not want. If we nail that down we see that the main area where there is not “demand” is exactly where the ECB would like to see lending, the business sector.

So the “push” of the ECB is being lost in the financial intermediation of the banking sector which takes the liquidity it provides and seems to prefer at least in the southern periphery to invest the money in government bonds than to actually lend it out as hoped.

It is easy to blame the banks but the ECB has to turn the mirror on itself too. It has imposed a risk measurement system where government bonds in the Euro area have a risk weighting of zero. Apart from being obviously wrong (Greece has had a default and will be joined by others in my opinion) it tempts banks to invest in something “risk-free”. This is exacerbated by the fact that banks are under capital pressure with new stress tests approaching so they are pushed towards “risk-free” sovereign bonds as opposed to risky business lending. In fact business lending is usually regarded in capital terms as very risky. So if you were setting up a structure to cut business lending you actually might have imposed what is taking place right now.Of course at the height of the Euro area crisis it was convenient for the ECB to nudge banks into investing in sovereign bonds as it helped reduce yields but now it is clear that this diverted funds away from more productive areas.

Mr Richards continue with thoughts of credit liquidity in the UK. The value of the pound has risen by 5% since Mark Carney introduced his policy of Forward Guidance we may be getting a bit of deja vu. However there is a difference.

Total lending to individuals increased by £1.7 billion in October. The three-month annualised and twelve-month growth rates were 1.6% and 1.2% respectively.

And I guess that readers will not be falling off their seats when we see the breakdown of this.

Lending secured on dwellings increased by £1.2 billion in October. The three-month annualised and twelve-month growth rates were 1.1% and 0.8% respectively.

Also it looks as though there is more to come.

The number of loan approvals for house purchase was 67,701 in October, compared to the average of 60,685 over the previous six months. Actually consumer credit is currently the strongest component.

The three-month annualised and twelve-month growth rates were 6.0% and 4.7% respectively.

This does seem to have impacted on the real economy if we think of the UK car market which seems to have been boosted by the availability of finance in 2013.

The call of the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, was an extinction event, that terminated fiat Money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW.

The death of fiat money has been transferred to a growing number of investment sectors, such as Timber Production, WOOD, Design Build, FLM, Utilities, XLU, Industrial Miners, PICK, and Metal Manufacturers, XME, seen in their combined ongoing Yahoo Finance chart

And the death of fiat money has been transferred to Nation Investment, EFA, in particular the Emerging Markets, EEM, Emerging Market Financial Institutions, EMFN, Emerging Market Mining, EMMT, and Emerging Market Infrastructure, EMIF; examples being Indonesia, IDX, Thailand, THD, and Philippines, EPHE, and Brazil, EWZ, EWZS, BRAF, BRXX, Chile, ECH, and Peru, EPU, as well as Developed Nations, Australia, EWA, KROO, and New Zealand, ENZL.

And of note, the death of money is causing monetary deflation in the US, as the stock of M2 Money is on the decline from its peak of 10,988 on 10-21-2013 to 10,922 as of 11-22-2013.

When the death of fiat money is transmitted to World Stocks, VT, and Global Financial Institutions, IXG, there will be a worldwide credit crisis and financial system breakdown known as Financial Apocalypse, foretold in Bible Prophecy of Revelation 13:3-4, and this will be the genesis event for regional governance and totalitarian collectivism to rule the world in each of the world’s ten regions, and for totalitarian collectivism to occupy in each of mankind’s seven institutions, as foretold in Bible prophecy of Revelation 13:1-4.

Low inflation and low interest rates have been the normal under the liberalism’s Global ZIRP, coming from the monetary authority of the world central banks.

Tyler Durden writes in Zero Hedge Banks Warn Fed They May Have To Start Charging Depositors.

Contrary to what the hypocrite banker said that “the danger is that banks are pushed into riskier assets to find yield”, banks are already in the riskiest assets: just look at what JPM was doing with its hundreds of billions in excess deposits, which originated as Fed reserves on its books – we explained the process of how the Fed’s reserves are used to push the market higher most recently in “What Shadow Banking Can Tell Us About The Fed’s “Exit-Path” Dead End.”

What the real danger is, is that once the Fed lowers IOER and there is a massive outflow of deposits, that banks which have used the excess deposits as initial margin and collateral on marginable securities to chase risk to record highs (as JPM’s CIO explicitly and undisputedly did) that there would be an avalanche of selling once the negative rate deposit outflow tsunami hit. Needless to say, the only offset would be if the proceeds from the deposits outflows were used to invest in stocks instead of staying inert in some mattress or, worse (if only from the Fed’s point of view) purchase inert assets like gold or Bitcoin. Which brings us back to the first sentence and the Fed’s now massive Catch 22: on one hand, should the Fed taper, rates will surge and stocks will once again plunge, as they did, in early summer, just to teach the evil, non-appeasing Fed a lesson. On the other hand, should the Fed cut IOER as a standalone move or concurrently to offset the tapering pain, banks will crush depositors by cutting rates, depositors will pull their money from banks en masse, and banks will have no choice but to close on a record levered $2.2 trillion in margined risk.

Holding cash, which pays almost nothing, has been most unattractive, especially when compared to the much higher yields available on alternative investments, such as Leveraged Buyouts PSP, paying 9.9% Junk Bond, JNK, paying 6.2%, Energy Partnerships, AMJ, paying 4.2%, and Global Telecom, IST, paying 3.8%; the pursuit of yield has caused principle in most of these investments to increase in value

In contrast, those who have been holdouts in credit instruments, AGG, have lost principal, Mortgage Backed Bonds, MBB, have lost 1.8% over the last year.

An inquiring mind asks what constitutes safe money? Are money market funds, safe? Will they be able to maintain their constant $1.00 value, or will they “break the buck”?  During QE, business-loan based short term bond funds, such as FLOT, were safe investments, in that they were ever increasing in value; of note, this fiat investment traded sharply lower as world stocks peaked. When the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, on the exhaustion of the world central banks authority, the “money good” attribute of this short term bond funds failed, and serves as ominous warning to those who thing money market funds are safe. And an inquiring mind asks, will the 1-3 Year Treasury Bonds, SHY, be safe investments, that is will they retain their value, or will they too fall lower, as the bond vigilantes steepen the 10 30 US Sovereign Debt Yield Curve, seen in the STPP ETN, STPP, steepening, and call the Interest Rate on the US Ten Year Note, ^TNX, yet even further higher from 2.75%?

By divine intervention The Fed be dead; at least the US Federal Reserve as it has been known is dead, and gone, swept away into the dustbin of history, and rising interest rates are “the new normal”. The death of fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, occurred on October 23, 2013, when Jesus Christ, acting in dispensation, that is the administration of all things economic and political, for the completion of every age, opened the first seal of the scroll of end time events, and released the Rider on the White Horse, who has a bow without any arrows to effect global coup d’etat to transfer sovereignty from democratic nation states to regional nannycrats and regional bodies such as the ECB. Thus enabling the bond vigilantes to call the Interest Rate on the Ten Year Note,  higher from 2.48% utterly terminating Credit, AGG.

Friday November 27, with its strong stock market performance was likely the zenith of the banker regime’s rule, which featured The Creature From Jekyll Island’s, the ECB’s LTROs and OMT’s, and PBOC’s, monetary stimulus. which came via POMO, and the ongoing Fed’s purchase of Treasuries and Mortgage Backed Bonds, MBB, as David Chapman writes The Fed’s Exploding Balance Sheet! and as Sober Look posts Why Fed’s Taper Is Essential To Stabilize Agency MBS Liquidity

This zenith of fiat wealth investing has completed a regulatory capture, clientelism and crony capitalism, as well as a European Socialism, and Greek Socialism, and Chinese Communism, fiat wealth experience, that came through moral hazard based investing prosperity.  Capitalism, Socialism, and Communism, are epitaphs on liberalism’s tombstone. Fiat money ruled in liberalism.

The beginning of the beast regime’s rule will commence soon out of a global credit bust and financial system breakdown. It features regional governance monetary diktat. Thus introducing regional totalitarian collectivism’s fiat poverty experience, which comes through debt servitude austerity. Regionalism is the flag on authoritarianism’s life experience. Diktat money rules in authoritarianism.

We are at the very end stage of liberalism as Zero Hedge reports Margin Debt Soars To New Record, The result that stocks are terrifically leveraged over debt, and are set for a fall, as is seen in the ratio of  VT:AGG …  EFA:BWX CSQ:PFLEZU:EU …  and most importantly VT:GLD.

Most assuredly there has been a death, that being fiat money. The death of fiat money, that is Credit, AGG, and Currencies, DBV, CEW, has already started to transmit death to fiat wealth, that being World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG.

Out of waves of sovereign, banking, and corporate insolvency, a new monster, the beast regime, with feet of a bear, mouth of lion, and camouflage of a leopard, is coming to rule mankind, displacing the banker regime, and it is making its claw-hold in Europe with its paws well secured in the German coalition agreement, which paves the way for social attacks throughout Europe, and its mouth announcing the militarization of German foreign policy and attacks on democratic rights, as Christoph Dreier of WSWS reports German Grand Coalition: A Government Of Social Austerity And Militarism.

Under liberalism, globalism was the way of life as the banker regime provided democratic nation state policies of investment choice, based upon schemes of credit and carry trade investment, where investors lived as credit genies.  However under authoritarianism, regionalism is the way of life as the beast regime provides regional governance policies of diktat, based upon schemes of totalitarian collectivism, where all live as debt serfs.

Wall Street Investment Banker Christopher Richard Whalen writes in Zero Hedge Default, Deflation and Financial Repression Once interest rates start to rise, the necessity of debt restructuring in Europe, Japan and even the US will become more apparent.  There is no free lunch.  Either we kill growth via financial repression of savers or we embrace the painful process of debt restructuring for the major industrial nations.

There will be no debt restructuring; all of liberalism’s debt will be applied by the beast regime’s  nannycrats to every man woman an child on planet earth in regional gulags of debt servitude. There will be no further monetary stimulus, well, there will be no more effective monetary stimulus; while the central bankers may use existing monetary tools, they will only serve as means for the bond vigilantes and currency traders to continue further debt deflation.

Now, there will be monetary deflation causing recession, coming via the ongoing failure of credit and disinvestment and deleveraging out of currency currency carry trade investing. The new normal is for nannycrats to rule in statist regional governance providing totalitarian collectivism schemes of debt servitude, despite what past and current great economic thinkers present as the way forward.

Recently Pedro Schwartz wrote in EconLibOrg In Praise of Neo-liberalism “The period 1875 to 1945 (or more precisely, to 1947) saw the inner logic of classical liberalism slowly unravel. Ironically, it was around the middle of the 19th century, just when free trade was triumphant, that classical liberalism took a turn in the wrong direction at the hand of John Stuart Mill; his proposal to fundamentally change the institution of private property was the first step on the primrose path.”

“Come 1900, nations around the world began to mimic Bismarck’s Social Insurance. At the same time, Teddy Roosevelt surfed on the wave of Progressivism in the United States. After the upheaval of WWI, the reaction against classical liberalism deepened. The Soviets and fascism became respectable in some quarters of Europe. In America, Franklin Delano Roosevelt barefacedly called his political program “liberal,” when it was fundamentally contrary to what had been taught by liberals from Adam Smith to Frederic Bastiat.”

He calls for reformulation of the tenets of the great classical economists (Hayek, Friedman, Coase, and Buchanan) to help undo the damage caused to liberalism by a century of negative criticism.

“I am averse to labels and do not much mind whether I am seen as a libertarian or an Austrian economist or a follower of the Chicago school, as long as what I hold makes sense from the point of view of truth and liberty. But I have now come to think “neo-liberalism” a useful label, for its defiant assertion that economic theory and policy must be put back at the center of the philosophy of liberty.”

In rebuttal, I write that there will be no neo-liberal reformation. New economic theory and new policies, and as well as new schemes, are coming that are based on the philosophy of authoritarianism; these will be based on regional framework agreements, as leaders meet in summits and workgroups to renounce national sovereignty and annonce regional pooled sovereignty.

Marcel Fratzscher, President of the German Institute for Economic Research (DIW Berlin) and professor of macroeconomics and finance at Humboldt University Berlin writes in European Voice Three Illusions Are Responsible For The German Public’s Growing Aversion To European Integration. The main challenge to the euro’s long-term viability is the lack of political will to implement complementary policies, such as a banking union and a credible fiscal union. Such an undertaking requires the restoration of trust among European countries. I respond, yes Jens Weidmann, President of the Deutsche Bundesbank, speaking at Harvard University, Cambridge, MA, on November, 2013, 2013, presented opposition to a banking union and a fiscal union,  when he called for The Art Of Separation especially with regard to the sovereign-bank doom loop. “Let me put it this way: Rather than for monetary policy to waltz with fiscal and financial policy, we need to erect walls between banks and sovereigns”, he said

Please consider that on October 23, Jesus Christ opened the Scroll of End Time Events, and released the Rider on the White Horse, who enabled the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, and to enable the currency traders to sell the World Major World Currencies, DBV, and Emerging Market Currencies, CEW, terminating the Creature Jekyll Island and birthing the Beast Regime of Revelation 13:1-4, thus pivoted the world from a policy of investment choice …  consisting of credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, securitization of debt, dollarization, financialization of stocks and ETFs, such as corporate bonds which convert into stocks, and currency carry trade investing schemes, all of which created capital for corporations to operate and revenue for governments to operate in an environment of economic growth …  to a policy of diktat … consisting of government mandates such as ObamaCare, and consisting of debt servitude schemes such as regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, ECB banking supervision, EU fiscal rules enforced by a Fiscal Sovereign, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability in an environment of monetary deflation, economic deflation, and economic recession.

Soon, the utter and total death of fiat money will be the cause of worldwide recession … And will be the genesis factor of both a global financial system crash and the rise of trust in regional governance, beginning first in the Eurozone, and that eventually ten kings will come to rule in each of the world’s ten regions, as foretold in Bible prophecy of Revelation 17:12.

World Achieves Peak Stock Wealth …. EU Nannycrats Begin Fiscal Rule With Policies Of Diktat In Regional Governance And Schemes Of Debt Servitude In Totalitarian Collectivism

November 22, 2013

Investment report for the week ending November 15, 2013

1) …Introduction

The Janet Yellen confirmation hearing, a buy of the Euro, FXE, and a sell of the Japanese Yen, FXY, and a leaked Chinese economic policy document purporting free enterprise in China, drove stocks higher to attain peak stock wealth.  Yet the death of fiat money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, came with bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, beginning October 23, 2013. When the currency traders sell the EUR/JPY, global financial institutions, IXG, and World Stocks, VT, will collapse like a house of cards. The world central bankers and regional nannycrats are introducing diktat money to replace fiat money, with the aim of establishing regional security, stability and sustainability.

2) … Details of this week’s financial marketplace trading

On Monday, November 11, 2013, The Australian Dollar, FXA, led Major World Currencies, DBV, lower, forcing Australia, EWA, and Asia Excluding Japan, EPP, lower. And the Indian Rupe, ICN, traded lower forcing India, INP, lower.

Ireland, EIRL traded higher. Emerging Market Nations trading lower included Turkey, TUR, Chile, ECH, Indonesia, IDX, India, INP, and the Philippines, EPHE.  Major Countries trading lower included Australia, EWA, New Zealand, ENZL, Russia, RSX, and South Korea, EWY.  Sectors trading higher included Solar, TAN, Pharmaceuticals, PJP, Transportation, XTN, Copper Miners, COPX, Resorts and Casinos, BJK, and Energy Services, OIH.

Retailers, XRT, led so by WMT, COST, JWN, LTD, and KORS rallied strongly. The rally in Retailers, carried through to US Credit Provider, MA, which traded strongly higher; while Japanese Credit Provider, IX, traded strongly lower; and the rally carried through to Advertising Agencies, as well as to Apparel Manufacturers. It’s likely that the world has attained peak retailer investment experience, as well as peak consumer credit experience, on the sovereignty of liberalism’s democratic nation state and banker regime.

Social Media, SOCL, Regional Banks, KRE, traded lower; and Mortgage REITS, REM, traded strongly lower; it is the financial market’s loss leader; this as Zero Hedge posts October Mortgage Purchase Applications Collapse To Decade Lows. Liberalism has passed through peak mortgage banking.

Aggregate Credit, AGG, traded lower, as the Interest Rate on the US Ten Year Note, ^TNX, traded higher. The bond vigilantes in calling the Interest Rate on the US 10 Year Note, ^TNX, higher, from 2.48% beginning October 23, 2013, as well as in Steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETN, STPP, steepening, have destroyed fiat money, that is Credit, AGG,  as well as Major World Currencies, DBV, and  Emerging Market Currencies, CEW. The world passed through peak fiat money, that is peak credit and peak currencies on October 23, 2013.

The death of fiat money is seen first in the periphery, with the destruction of the Emerging Market debt trade, EMB, which has enabled currency traders to commence competitive currency devaluation, in Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, which has deleveraged and derisked investors out of Emerging Market Investments, EEM, Emerging Market Financials, EMFN, such as Brazil Financials, BRAF, and Brazil Small Caps, EWZS, as well as out of the Nation of Greece, GREK, and the National Bank of Greece, NBG.

And the death of fiat money is seen secondly in the high yield debt trade, with Junk Bonds, JNK, Ultra Junk Bonds, UJB, as well as short term debt, Short Term Government Bonds, SHY, and Short Term Bonds, FLOT, topping out.

Furthermore the death of fiat money is seen in the Euro Yen Currency Carry Trade, EUR/JPY, recovering to attain its October 23, 2013 value of 135.15; the double topping out of this carry trade is presented quite striking in Action Forex Report EUR/JPY Weekly Outlook, as of November 16, 2013.

The trade lower in this currency carry trade, caused  disinvestment and derisking out of Global Financials, IXG, the European Financials, EUFN, UBS, CS, NBG, SAN, DB, South Korea Banks, KB, SHG, UK Banks, RBS, BCS, Mexico Banks, BSMX, Columbia Bank, CIB, Chile Bank, BCH, BSAC, BCA, Peru Bank, BAP, and Brazil Banks, BBD, ITUB, BBDO, BSBR, from which they have not significantly recovered.

When the EUR/JPY unwinds the second time, there will be a tremendous unwinding of currency carry trades not only from the aforementioned banks but from all the world’s financial institutions, IXG.  Quietly, world central bankers and regional nannycrats are introducing diktat money, to replace fiat money, with the aim of establishing regional security, stability, and sustainability.

Acting behind the scenes, Jesus Christ, in oversight of the economy of God, that is in administration of all things economic and political for the completion and fulfillment of every age, epoch and time period, a concept presented by the Apostle Paul in Ephesians 1:10, enabled the bond vigilantes to call the Interest rate higher on the US Ten Year Note, ^TNX, higher from 2.48% on October 2013, pivoting the world out of liberalism’s fiat money system, into authoritarianism’s diktat money system.

As seen in the Revelation of Jesus Christ, that is the unveiling of Jesus Christ, a dream given by angels to John the Revelator, while living in exile to the Isle of Patmos, in his 90s, Jesus Christ on October 23, 2013, opened the First of Seven Seals of The Scroll, Revelation 6:1, containing the details of the culmination of history, Revelation 1:1, which releases the First of the Four Horsemen of the Apocalypse, the Rider on the White Horse, who has a bow but no arrows, signifying his role in effecting a global coup d’etat, transferring sovereignty from nation states and bankers to nannycrats and regional bodies, as they come to rule in regional governance, effecting totalitarian collectivism, in each of the world’s ten regional areas.

The US Fed be dead; He did what Ron Paul could not do; He ended the Fed, as it has been known. He decimated the creature from Jekyll Island, and is bringing forth a more horrible monster, that being the beast regime, which is rising out of the failure of fiat money, specifically out of the failure of Aggregate Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, on October 23, 2013, with the rise of the Interest Rate on the US Ten Year Note, ^TNX, from 2.48%.

Liberalism was the era of democratic nation state and banker sovereignty. But authoritarianism is the era of beast regional governance and totalitarian collectivism sovereignty, ruling in each of the world’s ten regions, and in all of mankind’s seven institutions, as presented in Revelation 13:1-4.  Jesus Christ has designed the beast regime to be the ultimate predator, having feet of a bear, the mouth of a lion, and camouflage of a leopard.

The beast’s feet have emerged in the European banking supervision system run out of the ECB in Frankfurt Germany; its feet enable the monster to stand upright against all enemies, as well as to run down and trample all naysayers; and its claws enable it to root out and tear apart all opposition.

The beast’s mouth has emerged in NATO with headquarters in Brussels, as Reuters reports NATO Builds $1 Billion HQ As Allies Cut Military Spending; its feet enable the monster to devour all in its territory. Sven Heymann of WSWS reports NATO Reform Strengthens Germany’s Role. Though coalition talks between the Christian Democratic Union (CDU) and Social Democratic Party (SPD) have only just begun, Defence Minister Thomas de Maizière has already presented a new plan for NATO. It envisages Germany assuming a leading role in the military alliance. Only six weeks after the federal election, it is clear that the new government will have a far more aggressive foreign policy, seeking to lead the country back into the ranks of the major military powers.

The beast’s camouflage is the statist, collective experience of not only Obamacare but technocratic governance in Greece. Christoph Dreier of WSWS reports Vote Of No Confidence In Greek Government Fails. A vote of no confidence in the Greek government initiated by the largest opposition party, Syriza (Coalition of the Radical Left), failed by a wide margin on Sunday. “The government has emerged stronger from the vote,” said Prime Minister Antonis Samaras (ND) after the ballot, which was broadcast live on Greek television. No further no confidence motion can be proposed for six months.

The result did not come as a surprise. The government has a clear majority, with 155 seats in parliament, and DIMAR had announced that it would abstain in the event of a no confidence vote. In order to obtain the 151 votes required for new elections, SYRIZA needed the support of 20 deputies from the governing parties.

SYRIZA introduced the motion fully expecting it to fail. It was a parliamentary manoeuvre intended to provide political cover for its collaboration in the ongoing austerity offensive against the working class. The aim as well was to contain and dissipate growing popular anger over the attacks on social conditions and democratic rights, further inflamed by the police attack on the ERT workers.

There are no fundamental political differences between SYRIZA and the government. Representatives of SYRIZA have repeatedly pointed out that they do not oppose the austerity agenda of the European Union (EU), but merely want to renegotiate its terms.

Last week, SYRIZA leader Alexis Tsipras confirmed this at a forum at the University of Texas, where he reiterated that a SYRIZA government would under no circumstances leave the European Union. Under these conditions, SYRIZA is doing all in its power to defend the government and the troika against the resistance of the workers.

With the death of fiat money, one no longer has economic life in investment choice but in nannycrat diktak, as regional integration, is the dynamo of regionalism; which is replacing global growth and trade, which was globalism’s dynamo of crony capitalism, European socialism and Greek socialism.

As the beast regime rises out of sovereign crisis and banking crisis in the Eurozone, a New Charlemagne, foretold in Revelation 13:5-10, will rise as Europe’s Sovereign. And a Monetary Prophet, Revelation 13:11-18, most likely Mario Draghi, will rise as the EU’s Seignior, that is top dog banker, who taking a cut, mints money.

The banker regime featured Asset Managers such as BLK, WDR, EV, STT, WETF, A MG, IVZ, CNS, AMP, PFG, LM, BX, FNGN, BEN, VOYA, who waived wands of credit and financialization; but the beast regime features nannycrats who waive wands of debt servitude and regionalization.

Liberalism, being based upon the Milton Friedman Free to Choose concept of floating currencies, featured a mercantilist economic model, which benefited Sweden, with its ALV, Germany, with its SAP, SI, South Korea, with its SAMSUNG, Ireland, with its STX, IR, and Netherlands, with its, NXPI, LYB, which became export driven superstars having current account surpluses.

But with the death of fiat money on October 23, 2013, as seen in Aggregate Credit, AGG, failing, and the Major World Currencies, DBV, and Emerging Market Currencies, CEW, both collapsing, a regional integration economic model will emerge under authoritarianism, as fountainheads of regionalization rise to preeminence out of credit, banking, investment crisis, and fiscal crisis. It seems that crisis, can seeming come out of nowhere, as Focus reports Austria May Face A Budgetary Crisis, The nation’s budgetary deficit could reach up to €40 billion by 2018, equivalent to around half of the country’s federal budget.

These new talking heads, such as Angela Merkel, and her More Europe proposal; and new thought leaders, such Jeroen Dijsselbloem, Olli Rehn, Michel Barnier, Klaus Regling, Werner Hoyer, Jorg Asmussen and Viviane Reding, will come to the forefront of economic and political leadership in the Eurozone.  These will move society away from constitutionally limited government, free markets, individual liberty, personal responsibility, and traditional property rights, and show the way forward through regional framework agreements, which renounce nation state sovereignty, and announce regional pooled sovereignty, for regional security, stability, and security.

Eurozone nannycrats are beginning EU fiscal rule, by exercising in policies of diktat in regional governance and schemes of debt servitude in totalitarian collectivism. The Telegraph reports The EU Uses New Budget Powers To Demand More Austerity In Italy And Spain The European Commission has exercised historic new EU powers allowing it to revise national budgets for the first time.

Fabio Braggion and Steven Onega write in Voxeu Firm-Bank Relationships, The depth of the recent financial crisis is often contributed to excessively high leverage of corporations and banks. This column analyzes corporate leverage in the long-run, and in particular the shift from bilateral to multilateral firm-bank relationships in the UK. This shift is related to the firms’ use of debt finance, and subsequently to their increased leverage.

Deniz Anginer, Asli Demirgüç-Kunt, Harry Huizinga, and Kevin Ma  write in Vox EU Corporate governance and bank capitalisation. Bank capitalisation determines the probability of a bank failure. This column discusses how bank’s corporate governance affects its capitalisation. Corporate governance, in which the bank acts in the interest of its shareholders, is defined as a good one. Such governance, however, can lead to lower bank capitalisation. It also has possibly negative implications for financial stability.

Fabian Bornhorst, Marta Ruiz Arranz write in Voxeu Private Deleveraging In The Eurozone. Private and public debt in the Eurozone increased since the 2000s, and especially so in certain countries. This column presents evidence that high levels of private and public debt, together with deleveraging of all sectors, are especially harmful for economic growth. Private sector debt is more detrimental to growth than public sector debt. Therefore, policies aimed at reducing the private debt could yield important benefits.

Andrew Cullen of The Cantillon Observer asks Is The Next Phase Of The ECB’s Large Scale Asset Purchases Imminent? Growth of PIIGS governments’ debts as a proportion of GDP (Table 1) have now crossed above the critical 90 percent ratio advised by Rogoff and Reinhart as being the threshold above which growth rates irrevocably decline ( K. Rogoff and C. Reinhardt, “Growth in a Time of Debt,” American Economic Review (May 2010).

There is another potential problem: European commercial banks may be too fragile to fulfil their allotted role. ECB President Mario Draghi himself has initiated another round of stress testing of European banks’ balance sheets against external shocks, a sign that the ECB itself has doubts about systemic stability in the banking sector. But this testing has hardly begun. Here are four risk factors in play:

First, there has been large-scale flight of deposits from banks operating within the PIIGS’ toward banks of other Eurozone countries, as well as outside the Eurozone entirely. This phenomenon is caused by elevated risk of seizures, consequent upon the forced losses on bondholders at Greek banks and the recent “bail-in” of depositors at the Bank of Cyprus.

Second, many PIIGS’ domestic banks still hold on their books bad loans arising from the boom years (2000-2007). Failure to deleverage and liquidate losses is prolonging the banks’ adjustment process.

Third, they already hold huge quantities of sovereign debt (treasury bonds) from Eurozone governments from previous rounds of buying. Banks have had to increase their risk weightings on such debt holdings as Ratings Agencies have downgraded these investments to comply with Basel II. This constrains their forward capacity for lending to these governments.

Fourth, there is concern for rising interest rates. Since the famous “Draghi put” in July 2012, real rates remain low and yields on PIIGS’ sovereign bonds fell back closer to German bunds. But this summer yields on US Treasury bonds with long maturities started to rise on Fed taper talk Negative surprises knock confidence in the international bond markets. The risk of massive losses should bond prices drop is one that the European-based banks cannot afford given their still low capital reserves and boom phase legacy of over-leveraging.

Implementation impediments aside, a new phase of aggressive easy money policy from the ECB is both probable and imminent.

On Tuesday November 12, 2013,  Major World Currencies, DBV, and Emerging Market Currencies, CEW, continued sinking in value; with ongoing global competitive currency devaluation, at the hands of currency traders who are unwinding the EUR/JPY, and the AUD/JPY, coming from the bond vigilantes calling the Interest Rate On the US Ten Year Note, ^TNX, higher since October 23, 2013, which has terminated liberalism’s Milton Friedman Free To Choose nation state floating currency banker regime, causing disinvestment out of World Stocks, VT, and is introducing authoritarianism’s beast regime of regional governance and totalitarian collectivism.

The Nikkei, NKY, traded higher, on a lower Japanese Yen, FXY.  But the Emerging Markets, EEM, traded lower, on a lower Emerging Market Bond, EMB, and a lower Emerging Market Currencies, CEW.  Asia Excluding Japan, EPP, traded lower on a lower Australian Dollar, FXA, which took Australia, EWA, Indonesia, IDX, New Zealand, ENZL, and Malaysia, EWM, lower. Sweden, EWD, traded lower on a lower Swedish Krona, FXS.

The National Bank of Greece, NBG, fell sharply, leading Greece, GREK, sharply lower.  India, INP, traded strongly lower on a lower Indian Rupe, ICN. Argentina ARGT, Norway, NORW, Brazil, EWZ, Turkey, TUR, Egypt, EGPT, China, YAO, Mexico, EWW, and Peru, EPU, traded lower.

Australia’s WBK, The National Bank of Greece, NBG, Brazil’s BBDO, BSBR, BBD, IBN, Mexico’s BSMX, The UK’s RBS, BCS, LYG, India’s IBN, HDB, Chinese Financials, CHIX, European Financials, EUFN, Regional Banks, KRE, and the Too Big to Fail  Banks, RWW, led World Financials, IXG, lower; while Ireland’s Bank, IRE, traded higher taking Ireland, EIRL, higher.  And Japan’s IX, NMR, SMFG, MFG, and MTU, traded higher, taking the Nikkei, NKY, higher on the higher Yen.

Transportation, XTN, and Retail, XRT, traded higher. While Solar Energy, TAN, Steel, SLX, Metal Manufacturing, XME, Energy Service, OIH, Engineering, FLM, Paper Producers, WOOD, Copper Miners, COPX, Industrial Miners, PICB, Chinese Minerals, CHIM, and Coal Miners, KOL, traded lower.  Energy Production, XOP, and Small Cap Energy, PSCE, traded lower on a lower price of Oil.

In the yield bearing sectors, Utilities, XLU, such as Next Era Energy, NEE, and Global Real Estate, DRW, traded lower.

Silver Miners, SIL, traded lower on a lower price of Silver, SLV, and Gold Miners, GDX, traded lower on a lower price of Gold, GLD. Spot Gold, $GOLD, traded lower to 1,265, with strong support seen at $1,260, which is seen by many as the price of production.  The chart of Gold Miner, TGD, suggests that now is the appropriate time to invest in Gold Miners; it has lost 60% YTD, and has a PE of 7.

Investment in the Shipping State of Greece, GREK, is history on the failure of credit, AGG.  Since May 2010, with the First Greek Bailout, it has been an insolvent sovereign, and its bank, NBG,is an insolvent sovereign, is loaded with Greek Treasury debt that cannot be paid. Insolvent sovereigns and insolvent financial institutions lack seigniorage to meet their fiscal spending needs. Greece’s seigniorage has come via Global ZIRP, and Euro Yen currency carry trade investment that ended October 23, 2013, when bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% and currency traders sold the EURJPY short.

The global economic and political paradigm of liberalism, mercantilism, and global growth and trade, failed October 23, 2013, as bond vigilantes called the Interest Rate higher on the US Ten Year Note, ^TNX, higher from 2.48%, and currency traders sold carry trades such as the EURJPY short.

With currency carry trades now unwinding investment in Sweden, EWD, India, INP, Brazil, EWZ, Australia, EWA, Asia Excluding Japan, EPP, as well as in Greece, GREK, as well as with the debt trade failing in the Emerging Markets, EEM, liberalism’s paradigm of Nation Investment EFA, Global Industrial Production, FXR, and Global Financial Investment, IXG, is an epitaph on the tombstones of crony capitalism, European Socialism, and Greek Socialism.

Under liberalism, the speculative leveraged investment community, consisting of Investment Bankers, KCE, Stock Brokers, IAI, Regional Banks, KRE, the Too Big To Fail Banks, RWW, European Financial Institutions, EUFN, Chinese Financial Institutions, CHIX, Emerging Market Financial Institutions, EMFN, coupled with the world central banks policies of credit easing, established schemes of carry trade investing and debt trade investment choice, producing a moral hazard based credit prosperity, for the purpose of investment gain.  The world is at peak democracy, as the seigniorage, that is the moneyness, of nation investment is at its zenith, as is seen in Nation Investment, EFA, failing to attain its previous high, and is seen with former rally leader, Greece, GREK, trading lower, since October 23, 2013.

Under authoritarianism, said organizations, will be integrated regionally into policies of regional governance and totalitarian collectivism, and become known as government banks or gov banks for short, to establish schemes of diktat, producing a debt servitude based austerity, for the purpose of regional security, stability, and sustainability.  The world will now be moving into ever increasing statist, collectivist, public private partnership, where regional nannycrats act as fiscal and economic cardinals overseeing the factors of production, finance, commerce, trade.

Aggregate Credit, AGG, traded lower. The pivoting of economic paradigms from liberalism into authoritarianism featuring regional integration, totalitarian collectivism, and debt servitude, began on October 23, 2013, with the failure of credit, seen in the Interest Rate on the US Ten Year Note, ^TNX, rising higher in value, and the failure of currencies, seen in the EURJPY trading lower in value.

The apostle Paul reveals in Ephesians 1:10, that The God, that is The Sovereign Lord God, has appointed His Son, Jesus Christ, as heir of all things and has tasked his with dispensation, that is the household administration of all things economic and political, as well as all things moral, that is virtuous, and ethical, that is relationally, to effect political government by kings in empires and to effect economic government in those empires by monetary priests, and to bury institutions of one age in graves and tombs, as He brings forth new empires and institutions of a new era.

Collectivism was a part of liberalism, and is seen in transfer payments such as social security disability under crony capitalism, national wage laws under European socialism and pork and patronage under Greek socialism.  Now under authoritarianism, there is a tyrannical collectivism at work, as is seen in the Troika technocratic governance and the introduction of Obamacare.

The new normal of tyrannical collectivism is seen in Obamacare regulatory capture, with the WSJ reporting A New Survey Shows That Employers Will Drop Coverage And Cut Hours. One of President Obama’s proudest boasts about the Affordable Care Act is that it helps small business. The White House website says the health law “makes it easier for businesses to find better coverage options” and “stops insurance companies from taking advantage of you, giving the consumer and business owner more control and making health-care coverage more affordable.”

Kate Randall WSWS reporters Obama Proposes Fix To Pro Corporate Health Care Overhaul. Insurers will be allowed to offer health plans through 2014 that do meet the requirements of the Affordable Care Act and will be able to raise premiums on these policies. Yet the reality is that so far is that Four Million Americans Have Had Their Insurance Policy Cancelled, Benson Te  reports.  Upon realizing this, President Obama backtracks and said “insurers can extend by one year those policies they had canceled for failing to meet the law’s requirements” (WSJ) And in response, the House of Representatives just passed a bill “to let insurance companies sell health plans that had previously been canceled due to ObamaCare regulations” (Fox).

Mike Mish Shedlock writes Washington State Declares That It Will Not Allow Obama’s Fix To Go Through suggesting that rising premiums are only a symptom of the disease. And Mike Mish Shedlock asks Is Obamacare Workable And Is It Constitutional?  Has anyone (on either side of the aisle) thought about how their alleged fix was going to work in real life?  What constitutional right does Obama have to unilaterally change the law of the land, even if it’s only for a year? And CBS reports Obamacare marketplaces needs relatively healthy customers as Poor Get Into Obamacare Premium Crunch.

The aim of regionalism is to transfer the means of production, and all economic matters, from private ownership to the ownership of the region. While credit and currencies were the operative dynamic of liberalism, debt servitude and statist diktat is the operative dynamic of authoritarianism; private property its rights are being replaced by regional property and its rights.

While liberalism featured capitalism, European Socialism, and Greek Socialism, authoritarianism features regionalism where capital, resources, and property, are overseen by nannycrats for regional security stability, security, and sustainability.  Under liberalism, Energy Limited Partnerships, AMJ, such as NGLS, WES, MMP, SEMG, TRGP, SE, ENB, ETP, and PBA, rewarded investment choice.  But under authoritarianism, such will, like banks, be integrated into the government as a collective resource. Authoritarianism features regional ownership of productive assets.

Jesus Christ, acting in the economy of God, Ephesians, 1:10, terminated the British Empire, and is now terminating the US Dollar Hegemonic Empire, as He brings forth the Ten Toed Kingdom of Collectivism, seen in Daniel 2:25-45, via the destruction of both Credit, AGG, and Currencies, such as the Japanese Yen, FXY, the Euro, FXE, the Indian Rupe, ICN, and the Brazilian Real, BZF.

The press is abuzz with talk of tapering and there is much concern about ongoing investment and economic stimulus. Liberalism featured inflationism that came via central bank intervention of credit stimulus, as well as currency swaps supporting countries around the world. The failure of credit, seen in the rise of the Interest Rate on the US Ten Year Note, ^TNX, and the trade lower in Aggregate Credit, AGG, as well as the sell of currencies by currency traders, beginning October 23, 2103, is causing destructionism, that is economic deflation and economic recession; and these will be the new normal.

Ann Saphir of Bloomberg reports According to research study co-authors Richard Dobbs and Susan Lund of McKinsey & Company, All told, major central banks have added $4.7 trillion to their balance sheets over the past five years. The findings are sure to resonate among central bankers as they debate when and how fast they may be able to scale down the monetary stimulus they have used to keep deflation at bay and try and pull ravaged economies from the depths of recession. I comment that the world central bank monetary policies had nothing to do with helping economies, simply only bankers.

The world central banks monetary policies, of Global ZIRP and their asset purchases, crossed the rubicon of sound monetary policy on October 23,2013, as documented by the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX higher from 2.48%.

Any more world central bank monetary intervention with more easing will only intensify a vicious cycle of  economic deflation, that is economic recession, and assure more credit failure and more currency selloffs, resulting in investors derisking out of Nation Stocks, EFA, and Financial Stocks, IXG, destabilizing democratic nation state rule, and intensifying pressure for regional leaders to renounce national sovereignty, and announce regional pooled sovereignty for regional security, stability and sustainability. Stefan Steinberg of WSWS warns Europe Tilts Back Towards Recession.

Quietly, the world central banks have came out with a new end game, that is to roll out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, where banks of all types, the Too Big To Fail Banks, RWW, the Regional Banks, KRE, the Nasdaq Community Banks, QABA, and Savings and Loans, S&Ls, such as BOFI, STSA, EBSB, ISBC, STSA, PULB, BANR, are going to be integrated into government, and will will be known as the government banks, or gov banks for short, and will serve as the bedrock for regional governance, which replaces democratic nation state rule.

The Fed, and other central banks don’t have an endgame that includes helping the investor, the working class or middle class. Monetary policies of easing and monetary tools such as $85 billion of purchasing of debt is history, that is history in the sense that it has any useful benefit.

The world central bankers are effecting a global economic and political coup d’etat, … with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … pivoting the world from liberalism’s regime of nation state democracy into authoritarianism’s regime of regional statism, specifically regional governance and totalitarian collectivism, except for the Big Apple, as the WSJ reports New York City Takes Left Turn.

Its inevitable that money market fund, MMF, will break the buck, because they are bond based, and interest rates are rising quickly destroying the underlying investment. Thus capital controls are coming soon. Arnold King writing in Ask Blog has it right Rogoff Eventually Says That One Source Of Financial Crisis Is Ordinary Debt. One of the reasons that debt is over-utilized is that it often comes with a government guarantee, either explicit or implicit. One solution he proposes is to get rid of bank deposits. Instead, he would have the Fed run ATMs, and the only transaction accounts people would have would be deposits at the Fed, which I’m guessing would not earn interest. In order to earn interest, people would have to invest in risky securities, (Rogoff was racing through his talk at this point, so I am doing some interpolation here that might not be exactly correct.)

The late June 2013, through October 2013, rally in Energy Production, XOP, and Small Cap Energy, PSCE, was at the leading edge of currency carry trade and debt trade investing; but now investors are deleveraging out of these investments, just like they are out of Emerging Market Infrastructure, EMIF, Emerging Market Mining, EMMT, and Emerging Market Financials, EMFN, as is seen in their ongoing combined Yahoo Finance Chart.

With the Euro, FXE, soon falling faster than the Yen, FXY, and the Steepner ETN, STPP, rising in value on a steepening 10 30 US Soveign Debt Yield Curve, and the Interest Rate on the US Ten Year Note, ^TNX, rising from 2.48, beginning October 23, 2013, investors will be derisking out of World Stocks, VT, and World Small Cap Stocks, VSS, as is seen in the combine ongoing Yahoo Finance Chart of FXE, FXY, STPP, ^TNX, VT, and VSS, with the Emerging Markets, EEM, leading lower. Today,  Asia Excluding Japan, EPP, traded lower on a lower Australian Dollar, FXA.

I believe that the next sectors to quickly fall lower will not be the S&P 500 Companies, such as Micron, MU, but the credit dependent Small Cap Pure Growth Companies, RZG, such as HEES, and Small Cap Pure Value Companies, RZV, such as NICK.

Of note, the ongoing combined Yahoo Finance Chart of Ireland, and other EU nations, reflects that Ireland, EIRL, and its Bank, IRE, as well as Seagate, STX and Ingersoll Rand, IR, have been liberalism’s currency carry trade and debt trade darlings, largely on the guarantee of the Troika’s economic governance and implementation of austerity, with Ireland’s’ Finance Ministry reporting Successful Completion Of The Final Review Mission of the EU/ IMF Programme.  And Irish Economy writing Ireland To Exit The EU/IMF Programme Without Further Support.

Yes awesome financial rewards came to those who trusted that the Troika would lord it over Ireland and risked nation investment, banking investment and corporate investment in Ireland.

The Grand Finale of liberalism’s finance is seen in the Finviz chart of Ireland, EIRL, and its Bank, IRE, racing higher in an investment crack up boom, while Greece, GREK, and its Bank, NBG, trade parabolically lower, on the falling EURJPY, and the higher Interest Rate on the US Ten Year Note, ^TNX.

Booms are always followed by a horrific bust; such is the nature of the business cycle. Great was the investment boom; how horrific and gruesome will be the bust.

Jonathan Weil of Bloomberg reports Andrew Huszar, as saying “I can only say: I’m sorry America”.  He managed the Federal Reserve’s mortgage-backed-security purchase program in 2009-2010, penned an op-ed for the Wall Street Journal in which he apologized for QE: “I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time. (HT Lisa Abramowitz Tweet)

Lohud.com reports Lower Hudson Valley Housing: Buyers are ready, but where are all the homes? Wikipedia relates that Rockland County, NY, located in the lower Hudson Valley, has the largest Jewish population per capita of any U.S. county, with 31.4%, or 90,000 residents, being Jewish. Rockland also ranks 9th on the list of highest-income counties by median household income in the United States with $75,306 according to the 2000 census.About 6% of families and 10% of the population were below the poverty line, including 14% of those under age 18 and 8% of those age 65 or over. In 2010 CNNMoney.com named Clarkstown the 41st best small “city” to live in America, which was the highest such ranking in New York. According to a 2007 estimate, the median income for a household in the town was $92,121, and the median income for a family was $104,909. Males had a median income of $57,773 versus $40,805 for females. The per capita income for the town was $34,430. About 2.5% of families and 3.8% of the population were below the poverty line, including 4.5% of those under age 18 and 3.4% of those age 65 or over. Clarkstown is the most densely populated town in Rockland County and is home to New City, which is the county seat. Clarkstown has more business districts in it than any other town in Rockland County, including the Palisades Center, which is among the largest malls in the world.

On Wednesday, November 12, 2013  US Shares, VTI, rose to new highs on anticipation of Yellonomics, that is on anticipation that Janet Yellen will announce ongoing US Federal Reserve easing. US Stockbrokers, IAI, such as IBRK, ETFC, MKTX, Investment Bankers, KCE, such as MS, rose to new rally highs.  The Too Big To Fail Banks, RWW, such as BAC, BK, STI, STT, Regional Banks, KRE, such as FIBK, SBNY FITB, HBAN, and Asset Managers, such as BX, AMP, AMG, rose strongly.  Currency traders called the EUR/JPY higher.

Sectors trading higher included Social Media, SOCL, Solar, TAN, Nasdaq Internet, PNQI, Media, PBS, Spin Offs, CSD, IPOs, FPX, Internet Retail, FDN, Consumer Services, IYC, Retail, XRT, Consumer Discretionary, RXI, Pharmaceuticals, PJP, Semiconductors, XSD, Global Industrial Producers, FXR, Transportation, XTN, Aerospace, PPA, Software, IGV, Small Cap Pure Value, RZV,  Small Cap Pure Growth, RZG, as well as Homebuilding, ITB.  Macys, M, Ross Stores, ROST, Ulta Salon, ULTA, TJX Companies, TJX, Kors, KORS, Foot Locker, FL, Designer Shoe Warehouse, DSW, Nike, NKE, and Rite Aid, RAD, led Retailers, XRT, higher.  Yield bearing sectors trading higher included Utilities, XLU, Global Utilities, DBU, US Real Estate, IYR, Small Cap Real Estate, ROOF.

Sectors trading lower included Copper Miners, COPX, and which sent Emerging Market Miners, EMMT, strongly lower.

Japan, NKY, traded higher, with banks, MTU, MFG, and SMFG, and Credit Provider, IX,  trading higher. Other nations trading higher included Turkey, TUR, Thailand, THD, Indonesia, IDX, New Zealand, ENZL, India, INP, traded higher with banks, ITUB, IBN, trading higher. Brazil, EWZ, traded higher, with banks, BBDO, BSBR, BBD, IBN, trading higher.

Peru, EPU, traded lower as its Copper Miner, SCCO, traded lower. South Korea, EWY, traded lower with banks SHG, WF, KB, trading lower. Australia, EWA, KROO, traded lower after yesterday’s fall lower in bank WBK, on a lower Australian Dollar, FXA. China, YAO, traded lower with Chinese Financials, CHIX, trading lower.

Aggregate Credit, AGG, traded higher on a Flattening Yield Curve, as is seen in the Flattner ETN, FLAT, trading higher, and the Steepner ETN, STPP, trading lower, and as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.72 %.

On Thursday, November 13, 2013  Silver Miners, SIL, 2.8%, SILJ, 3.7%, and Gold Miners, GDX, +2.7%,  GDXJ, 2.8%, led all sectors higher, and that by a much significant factor, on a higher price of Gold, GLD, 1.1%, and a higher price of Silver, SLV, 1.4%.

US Stocks, VTI, rose to a new high on a broad spectrum of stocks, mostly S&P 500, SPY, and S&P 500 High Beta, SPHB, stocks higher, such as MA, QCOM, WHR, DIS, BA, MU, DD, HON, APH, IFF, TWX, MM, JNJ, TXN, VZ, TXN, ITT, EMR, ITW, ADSK, IT,BA, MMM, HD, and MHK.

World Stock, VT, traded higher as currency traders sold the Yen, FXY, which closed lower at 97.72, sending Japan, NKY, higher, with banks, MTU, MFG, and SMFG, and Credit Provider, IX, higher.

Turkey, TUR, Mexico, EWW, Argentina, ARGT, Indonesia, IDX, and Thailand, THD, led the Emerging Markets, EEM, higher. The BRICS, Brazil, EWZ, Russia, RSX, India, INP, and China, YAO, traded higher. Emerging Market Infrastructure, EMIF, traded higher.

A market top, not only in Solar Stocks, but finally in the S&P 500, SPY, is seen in numerous stock charts. Canadian Solar, CSIQ, manifested bearish harami at the top of a parabolic curve. Sunpower Corp, SPWR, manifested a spinning top doji. And the Solar Stocks, TAN, manifested a dark cloud covering candlestick, at the top of an ascending wedge. Amazon, AMZN, Priceline, PCLN, and Nasdaq Internet, PNQI, manifested blow off market tops; seen also in their combined Yahoo chart.

The Too Big To Fail Banks, RWW,  and Investment Bankers, KCE, rose to new rally highs, taking Health Care Providers, IHF, Pharmaceuticals, PJP, Homebuilders, ITB, Steel, SLX, US Infrastructure, PKB, Consumer Services, IYC, Global Consumer Discretionary, RXI, Biotechnology, IBB, Internet Retail, FDN, Aerospace, PPA, Transportation, XTN, and Global Industrial Producers, FXR, higher.

Yield bearing sectors trading higher included Mortgage REITS, REM, Utilities, XLU, US Real Estate, IYR, Small Cap Real Estate, ROOF, Industrial and Office REITS, FNIO, were spurred higher by Federal Reserve Vice Chair Janet Yellen’s dovish comments in remarks released ahead of her greatly awaited Senate confirmation hearing, which said the Fed has “more work to do” to help the economy, indicating she was in no hurry to start tapering stimulus.

Aggregate Credit, AGG, traded higher once again, on a Flattening Yield Curve, as is seen in the Flattner ETN, FLAT, trading higher, and the Steepner ETN, STPP, trading lower.

The rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48%, on October 23, 2013, was a pivotal day in investment history, as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, have  traded lower, on falling Emerging Markets, EEM, and falling Emerging Market Financials, EMFN, yet with anticipation of Yellonomics, a sell of the Japanese Yen, and a surprise economic policy in China, these recovered. It was largely money coming out of Pimco’s debt funds, such as BOND, that produced the awesome rise in dollar based stocks. The rise in US Stocks, VTI,  has been noticeably bullish, this rise is simply investor euphoria, and makes the S&P 500, SPY, the Large Cap Nasdaq, QQQ, the Large Cap Growth, JKE, and the Too Big To Fail Banks, RWW, walking dead men investments, that is zombie investments.

Benson te writes US Stocks Are On A Wile E Coyote Running Off The Cliff Momentum. The melt up frenzy mode in US stock markets has been broad based. All four major benchmarks from the S&P 500, Dow Jones, Nasdaq and the Russell 2000 have performed strongly.

The bond vigilantes in calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, beginning October 23, 2013, created an “extinction event” which terminated profitable investing, as well as liberalism, that is the age of investment choice, as Credit, AGG, failed, and Major World Currencies, DBV, such as the Swedish Krona, FXS, and the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF, started sinking.

With the US Dollar, $USD, UUP, trading parabolically higher, the Milton Friedman Free To Choose floating currency democratic nation state regime came to an end.  Liberalism’s fiat money, that is the credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, died and outside of the US, VTI, and Japan, EWJ, are no longer able to provide seigniorage, that is moneyness, to fiat assets such as Brazil Small Cap Stocks, EWZS, Emerging Market Infrastructure, EMIF, Emerging Market Mining, EMMT, and Copper Miners, COPX.

Inasmuch as fiat money has died, the sovereignty, that is the rulership of liberalism’s democratic nation states has perished.  Democracy as a political experience died, with the rise in the US Ten Year Note, ^TNX, from 2.48% beginning October 23, 2013; as this was an “apocalyptic event” that pivoted the world from liberalism, the age of investment choice, into authoritarianism, the age of diktat.  Under authoritarianism, new sovereignty, that being regional governance and totalitarian collectivism, will emerge to provide economic security, stability, and sustainability. This new sovereignty will provide the seigniorage of diktat, that is the moneyness of diktat, via the diktat money system.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as those reported by the such as The Irish Times report Troika Seeking Tough Post Bailout Terms In Ireland In Exchange For Precautionary Loan, heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal policy councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, for Eurozone wide fiscal governance, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke all kinds of mandates for regional security, stability, and sustainability.

These leaders, that is nannycrats include, Jeroen Dijsselbloem, President of the Eurogroup meeting of euro-zone finance ministers,  Olli Rehn, Vice President of the European Commission responsible for economic and monetary affairs, Michel Barnier, EU Commissioner responsible for internal market and services, Klaus Regling, Managing Director of the European Stability Mechanism,  Werner Hoyer, President of the European Investment Bank, Jorg Asmussen, Member of Executive Board of the ECB, Viviane Reding, European Commissioner for Justice, Fundamental Rights and Citizenship.

And diktat money is seen in countries with high current account deficit, such as in India, where import duties have been declared on the import of gold, and the import of gold coins banned; and such as in Indonesia, where curbs are placed on the import of luxury cars and some branded goods.

In the age of authoritarianism, diktat and the physical possession of gold bullion will be the two forms of sovereign and sustainable wealth.  As credit and currencies increasingly fail, there will be a flight to safety in this hard asset, and there will be a strong ongoing investment demand for it. Some favor silver as precious metal, but gold will have a much stronger demand as it packs more value into a compact size.

The chart of the Gold ETF, GLD, shows a 1.2% price rise; the spot price at gold, $GOLD, of $1,286, may be a bottom; a price of $1,260 is cash cost for a number of gold miners.  And the chart of Silver ETF, SLV, shows a 1.4% price rise; the spot price of silver, $SILVER, closed at $20.75.

On Friday, November 14, 2013, Not only did the Janet Yellen confirmation hearings gave investment stimulus, but also in totally surrealistic way, China’s Stock Market Soars On ‘Leaked’ Reform Documents As Bond Markets Seize Up, Benson T reports.  And Ambrose Evans Pritchard provides insight writing Chinese President Xi Jinping Announces Free-market Blitz.

China, YAO, China, China Industrials, CHII, China Small Caps, ECNS, China Minerals, CHIM, and

China Financials, CHIX, all rose strongly. Far East Financials, FEFN, blasted higher. Asia Excluding Japan, EPP, soared, as Australia, EWA, KROO, Philippines, EPHE, Vietnam, VNM, Thailand, THD, Indonesia, IDX, and Malaysia, EWM, rose strongly. India, INP, SCIN, Brazil, EWZ, EWZS, Russia, EWZ, ERUS, Turkey, TUR, Argentina, ARGT, rose strongly.

Industrial Miners, PICK, Steel, SLX, Coal Miners, KOL, rose strongly.

Emerging Market Infrastructure, EMIF, Emerging Market Mining, EMMT, Emerging Market Financials, EMFN, all rose strongly.

Sectors rising included Biotechnology, IBB, Transportation, XTN, Pharmaceuticals, PJP, Gaming, BJK, Automobiles, CARZ, Global Consumer Discretionary, RXI, and Retail, XRT, rose.

Yield Bearing Sectors Rising included Global Real Estate, DRW, Shipping, SEA, Utilities, XLU, Energy Partnerships, AMJ, and Global Telecom, IST, rose.

The nation of Greece, GREK, the National Bank of Greece, NBG, and Solar Stocks, TAN, traded lower.

Silver Miners, SIL, manifested no change, and SILJ, no change, and Gold Miners, GDX, -1.7%, GDXJ, -1.2%, on no change price of Gold, GLD, and no change in the price of Silver, SLV.

Call Write Bonds, CWB, rose to an all time high as John Glover of Bloomberg reports Sales of convertible bonds in Europe are at a four-year high as companies take advantage of investor demand stoked by a 15% stock market surge. Air France KLM. And the Milan-based cable maker Prysmian SpA are among companies that have sold $25 billion of notes this year that can be swapped for equity.. Globally, convertible issuance is the highest in three years. Investors are increasingly gravitating toward riskier assets as central banks, led by the European Central Bank’s surprise interest-rate cut last week, step up efforts to suppress borrowing costs and stimulate growth.

Liberalism has attained peak production, and peak profitability based upon debt levels, production facilities, and cost of labor. Peak liberalism has been achieved; that is peak crony capitalism, European Socialism, and Greek socialism, has been attained. AP reports Heinz Closing 3 Plants, Cutting 1,350 Jobs.  HJ Heinz is closing three plants in North America and cutting 1,350 jobs in an effort to operate more efficiently. The food maker said Thursday that it will close facilities in South Carolina, Idaho and Canada over the next six to eight months.

And Marketwatch reports Fuji To End Toyota Camry Production in US Fuji Heavy Industries Ltd. (7267.TO) is considering terminating its production of Toyota Motor Corp.’s (7203.TO) Camry sedan at a U.S. plant as requested by Toyota, Kyodo News reported Friday, citing Fuji Heavy officials. Fuji, the maker of Subaru cars, started Camry production in 2007 at the Indiana plant which currently has an annual production capacity of 270,000 units including 100,000 units for the Camry.

International Financing Review posts Hunt For Yield Reaches Fever Pitch. Investors and bankers last week shrugged off concerns of a credit bubble forming and insisted that bumper supply volumes were unlikely to diminish before the end of the year, with issuers keen to pre-empt macroeconomic risks and make use of welcoming market conditions. Since the beginning of October, issuance in the euro and sterling markets by high-yield, corporate and financial institutions has reached US$115bn, according to Thomson Reuters data, just US$22bn short of the total issued in both October and November last year.

Economic Times reports Global Telecom Merger And Acquisition Volume Hits Highest Level Since 2000. M&A volume in the telecom sector sector soared to $ 343.4 billion so far this year, driving Global Telecom Stocks, IST, up 40% in the last year.

Jesus Christ acting in dispensation, that is the oversight, fulfillment and completion of every age, era, epoch and time period, Ephesians, 1:10, has released the First Horseman of the Apocalypse, that is the Rider on the White Horse, with a bow, but without any arrows, has set the bond vigilantes loose to call the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, beginning on October 23, 2013, effected a global economic and political coup d’etat, that terminated democratic nation state sovereignty, together with its credit and currency seigniorage, that since 1971, underwrote global growth and trade, as well as corporate profitability.

The Fed be dead; yes the banker regime, that is The  Creature from Jekyll Island died on October 23, 2013; it exists today only as a zombie financial institution of the bygone era of liberalism.

Now, regional nannycrat pooled sovereignty, in particular the sovereignty of regional governance and totalitarian collectivism, and its debt servitude and diktat seigniorage, is underwriting regional security, stability, and sustainability.

The beast regime of regional governance and totalitarian collectivism, with its seven heads occupancy mankinds seven institutions, and its ten horns ruling in the world’s ten regional zones, Revelation 13:1-4, is rising from sovereign insolvency and banking insolvency of the nations, and is making landfall in the Eurozone, occupying with feet of a bear in EU banking supervision in Frankfurt Germany; with mouth of a lion in NATO headquarters in Brussels; and camouflage of a leopard in the statist, collective experience of not only Obamacare but technocratic governance in Greece.

Salon’s Andrew Leonard posts Ayn Rand, of course, is herself one of the fountainheads of modern get-rid-of-government libertarianism. Alexander Hamilton was something quite different. The first secretary of the Treasury not only created the nation’s first central bank, but was also the earliest and most forceful advocate of a strong government role in developing the U.S. economy. In his Report on Manufactures he laid out in painstaking detail a program for industrial policy arguing that if the United States was to compete with the established nations of Europe and make the most productive use of its labor possible, the government needed to get involved. America’s budding manufacturing start-ups needed help! He wrote  “To be enabled to contend with success, it is evident, that the interference and aid of their own government are indispensable,” he wrote. To this day, hard-money libertarians, such as Thomas DiLorenzo, who writes in Mises.org, Alexander Hamilton: The Founding Father of Crony Capitalism, are aghast at Hamilton’s strong advocacy of issuing government debt to pay for infrastructural improvements and other measures that would implement federal economic policy.

Just as Alexander Hamilton fathered the interventionism of crony capitalism, there are those in the Eurozone today who are fathering the interventionism of regionalism; these fountainheads of regional governance and totalitarian collectivism include Prime Minister Antonis Samaras, Jeroen Dijsselbloem, Olli Rehn, Michel Barnier, Klaus Regling, Werner Hoyer, and Jorg Asmussen.

Summary of the financial market trading over the last week and month

The combined ongoing Yahoo Finance chart of the United States, VTI, Nikkei, NKY, Eurozone, EZU, Australia, EWA, Sweden, EWD, South Korea, EWY, China, YAO, Russia, RSX, Brazil, EWZ, EWZS, India, INP, SCIN, communicates that for the last month, the bond vigilantes in calling the Interest Rate higher on the US Ten Year Note, ^TNX, higher from 2.48%, has destroyed Aggregate Credit, AGG, and has commenced global competitive currency devaluation, in particular the Australian Dollar, FXA, and the Indian Rupe, ICN, causing disinvestment out of the periphery nations, evidencing the beginning of the failure of global growth and trade, and causing a crack up boom in the Nikkei, NKY, and US Stocks, in particular the Large Cap Growth Stocks, JKE, US Large Cap Value Stocks, Large Cap Nasdaq Stocks, QQQ, the Small Cap Value Stocks, RZV, and the Small Cap Growth Stocks, RZG, as is seen their combined ongoing Yahoo Finance chart, with the S&P 500, SPY, stocks, such as those in this Finviz Screener, such as MU, and DAL, being the primary beneficiaries of a rally in the US Dollar, $USD, UUP, and a sell of the Japanese Yen, FXY, as is seen in their combined ongoing Yahoo Finance chart.

The destruction of Aggregate Credit, AGG, is seen in combined ongoing Yahoo Finance chart of the Zeroes, ZROZ, 30 Year US Government Bonds, EDV, US Ten Year Notes, TLT, Longer Duration  Bonds, BLV, Short Duration Bonds, LQD, World Treasury Debt, BWX, and International Corporate Debt, PICB. Junk Bonds, JNK, and Ultra Junk Bonds, UJB, have experienced a melt up rally in conjunction with the S&P 500 Stocks, as is seen in their ongoing combined Yahoo Finance Chart.

The Janet Yellen confirmation rally drove the S&P 500, SPY, and US Stocks, VTI, higher to attain peak fiat wealth; but it failed to bring Nation Investment, EFA, and Global Financials, IXG, to new rally highs, thus communicating that a bear market stock market commenced October 23, 2013, when these two global bellwether investments turned lower in value, as the Interest Rate on the US Ten Year Note, ^TNX, rose from 2.48, with the result of commencing debt deflation, that is currency deflation in the Major World Currencies, DBV, and Emerging Market Currencies, CEW.

Nation Investment, EFA rose 1.5%; yet it is still trading below its October 23, 2013 high.

EEM rose 2.6% these received leverage on a slight rise in Emerging Market Currencies, CEW, and a rise in the Flattner ETF, FLAT, and a decline in the Steepner ETF, STPP, and 1.5% trade lower in the Interest Rate on the US Ten Year Note, ^TNX, which closed the week at 2.71%.

EMFN 2.2

EMMT 1.9

EMIF 4.0

VTI rose 1.7%, new high

EZU  1.2

EPP -0.3

NKY 6.1, new high; a gift from the currency traders on their sale of the Japanese Yen, FXY; Japanese 10-year “JGB” yields closed up slightly at 0.63%, which enabled a tiny rise in their inverse, JGBS.

Chikako Mogi of Bloomberg reports Japanese companies eased off on capital-spending growth in the third quarter and failed to step up exports even with a cheaper yen, contributing to an economic slowdown that puts pressure on Prime Minister Shinzo Abe. Gross domestic product rose at an annualized 1.9%, down from 3.8% the previous quarter, with the gain relying on government spending and an accumulation of inventories. A widening trade gap lopped off 1.8 percentage point from growth. Corporate investment increased 0.7%, down from 4.4%. ‘Warning lights are flashing for Abenomics,’ said Kiichi Murashima, chief economist at Citigroup Inc. in Tokyo. ‘With the absence of further weakening in the yen and a clear global recovery, Japan’s recovery is losing momentum.’”

Nations trading higher included

YAO rose 5.1%, new high

ECNS 4.0, new high

EWW 4.7

VNM 3.3

EWZ 3.3

EZA 3.1

THD 2.9

EPOL 2.8

ARGT 2.7

EIRL 2.6, new high

EPHE 2,4

EWZS 2.2; Brazil and its Small Cap Stocks is one of the first investor-recognized failed democracies.

The Nation of Brazil, EWZ, exists solely because it has currency swaps with the US Fed and other world central banks. Brazil’s Financials, BRAF, that is Brazil’s banks,  BBD, ITUB, BBDO, BSBR, are truly failed failed financial institutions  BBD, ITUB, BBDO, BSBR, are truly failed financial institutions.

EWY 2.1

TUR 1.9

NORW 1.6

GREK declined 3.4%, on NBG -5.9; Greece is an insolvent nation and receives seigniorage aid from the Troika for its fiscal spending needs. Doug Noland reports Ten-year Portuguese yields slipped 2 bps to 5.87%, Italian 10-yr yields fell 5 bps to 4.09%, Spain’s 10-year yields were down 5 bps to 4.06%, German bund yields declined 5 bps to 1.71%, French yields fell 5 bps to 2.18%,. Greek 10-year note yields rose 23 bps to 8.24%.

EPU, -2.8 on COPX -2.4 and SCCO -4.2

EGPT -2.6

Global Financials, IXG rose 1.5%; it is still trading below its October 23, 2013 high.

RWW 1.5, new high

IAI 1.9, new high, peak investment experience has been achieved.

KCE 1.5, new high

EUFN 0.3

FEFN 6.2, new high

CHIX 4.5, new high

EMFN 2.2

BRAF 1.4  Brazil’s banks,  BBD, ITUB, BBDO, BSBR, are truly failed failed financial institutions

KRE -1.0

Global Natural Resources,GNR rose 1.1%

XOP 1.8

PSCE 1.1

OIH, 0.2, new rally high

USO -0.4

UNG +2.2

World Stocks, VT, rose 1.5%, a new rally high; with sectors rising as follows

SOCL 6.0

ITB 4.4

XTN, 4.2, new high

PNQI 4.1, new high

IBB, 4.0

XRT 3.7 new high

CSD 3.3, new high

FDN 3.1, new high

PJP 3.0, new high

PBJ 2.9, new high

PBS 2.9, new high

FXR 2.5, new high

RXI 2.5, new high

IYC 2.5, new high

FPX 2.5, new high

PKB 2.3, new high

CARZ 2.1

RXI 1.7, new high

PSCI 1.7, new high

RZV 1.6, new high

RZG 1.5, new high

KXI 1.4, new high

PPA 1.0, new high

TAN 1.0, new high

Yield bearing sectors trading higher

PHO rose 2.8%

XLU 0.7, such as those in this Finviz Screener.

The chart of the S&P 500, $SPX, SPY, manifested a close at 1798; up 1.6% for the week; Finance My Money writes S&P Up 26% YTD.

Of note, the charts of an number of commodities, such as Corn, CORN, suggest a bottoming out. Corn is either at a bottom of 31.49 or 31.00 or 30.

Ratios suggest peak fiat wealth has been achieved

VT:DBV 2.26

XLB:DBC 1.77

EZU:EU 1.74

PICK:DBD 1.25

VT:BWX 1.00

VTI:TLT 0.89

VT:AGG 0.54

The US is likely achieving a double top peak in M2 Money as recent readings are as follows

2013-11-04  10938.9

2013-10-28  10858.8

2013-10-21  10938.7

The spot price at gold, $GOLD, closed the week at a price of $1,289; The spot price of silver, $SILVER, closed the week at a price of $20.77

I believe that there will be an investment demand for gold, but none for silver. And as such I expect Silver, SLV, to be seen as an industrial metal, just like base metals, DBB, and its price will begin to depart from gold, GLD.

3) … In news of Brazil credit, failure of coherent fiscal policy and incestious corporate government credit policy, have destroyed infrastructure development, economic growth and investment opportunities in Brazil.

11/07/2013 Bloomberg reports Investors Fear Treasury Debt Downgrade After Tax Revenue Shortfall

11/07/2013 Brazil Portal and Agriculture.com reports Brazil’s Crop Logistics Drama

11/05/2013 Bloomberg reports Brazil Real Tumbles On Concern Government Lax On Budget Deficits

11/04/2013 Bloomberg reports Shiller’s Bubble Warning Dismissed In Brazil Loan Surge.  Brazil’s President Dilma Rousseff is disregarding warnings about a housing bubble and is stoking demand instead by helping people buy more homes as prices surge.

10/28/2013 Merco Press News And Brazil Portal report  Rousseff And Mantega Dispute IMF Report On Brazil As Incoherent.

10/21/2013 Brazil Portal and The Economist report Public Finances In Brazil: Going For Broke In this week’s print issue we wrote about the huge increase in government-subsidised credit in Brazil in recent years, funnelled through state-controlled institutions such as the national development bank, BNDES, and Caixa Econômica Federal, a state retail bank. This is weakening the banks’ balance-sheets and cutting their credit ratings—and damaging the credibility of official statistics as the government manoeuvres to try to hide the impact on its own finances.

On October 14th the finance minister signalled a change of course, saying that over the next few years the government would gradually stop capitalising BNDES with transfers from the treasury. But as we explained in print, the electoral appeal of cheap consumer credit and the government’s desire to use BNDES to fund a big upcoming infrastructure-concession programme make it doubtful that such good intentions will become reality.

Equally worrying for Brazil’s public finances is the news that the federal government is about to make it easier for states and municipalities to take on more debt. The Fiscal Responsibility Law of 2000 bailed out local governments who had taken on debts they could not repay, with one of the conditions being the acceptance of strict limits on total future indebtedness. The law is generally regarded as having been an essential precondition for Brazil’s subsequent economic stabilisation and growth, including keeping inflation under control, gaining investment-grade status, rescuing tens of millions from dire poverty and creating a vast new lower-middle class

10/18/2013 Bloomberg reports Ending Blind Loans to Aid Crackdown on 323% Rates  Brazil’s President Dilma Rousseff is disregarding warnings about a housing bubble and is stoking demand instead by helping people buy more homes as prices surge.

01/09/2013 Reuters reports Brazil Backs Away From Budget Target Policy Pillar Brazil goes after corporate taxpayers as revenue dwindles. Brazil’s hot, dry summer may lead to energy rationing.

The Eurozone Emerges As A Regional Bloc Having A Common Credit Foundation In the Word, Will And Way of Mario Draghi ….. Gold Closes The Week At 1,290 With Strong Support Seen At 1,260

November 14, 2013

Financial Market Report for the week ending November 8, 2013

1) … Details of this week’s financial market trading

On Monday, November 4, 2013, Export centric ETFs and currency carry traded ETFs traded higher on short sell covering, however, Commodities, DBC, led by Base Metals, DBB, traded lower.

Sectors trading higher included Solar Energy, TAN, 8.3%, Metal Manufacturing, XME, 3.0, Steel, SLX, 2.4, Transportation, XTN 1.9, Coal, KOL, 1.8, Small Cap Pure Growth, RZG, 1.7, Small Cap Pure Value, RZV, 1.7, Healthcare, IHF, 1.9, Spin Offs, CSD, Industrial Miners,  PICK, 1.1, Global Industrial Producers, FXR, 1.1, Small Cap Industrials,  PSCI, 1.0, Leveraged Buyouts, PSP, 1.0, Social Media, SOCL, 1.0, Retail, XRT, 0.9. and Energy Production, XOP, 3.1, and Small Cap Energy, PSCE, 2.9.

Metal Manufacturers, XME, 3.1%. Steel, SLX, 2.4%, Coal Miners, KOL, 1.85, and Industrial Miners, PICK, 1.2%; all rising, as is seen in their combined ongoing Yahoo Finance Chart, while Base Metal Commodities, DBB, fell sharply lower.  Natural Gas, UNG, plummeted to strong support. OilPrice relates Russia Opens LNG Floodgates.  The Russian government has made room in the natural gas market by letting companies other than Gazprom export liquefied natural gas. The shale natural gas revolution in the United States is pushing Russia from its leadership position in terms of output. Gazprom, meanwhile, only has one LNG plant in service. On Monday, engineering company Foster Wheeler said it landed a contract to help with the initial phase of an LNG plant for Russia’s Far East. That plant, and Russia’s new export concessions, may wind up taking a slice out of the US natural gas pie.

Countries trading higher included Germany Small Caps, GERJ, 2.6%, Poland, EPOL, 2.1, China Industrials, CHII, 1.5, South Africa, EZA, 1.4, Argentina, ARGT, 1.3, Egypt, EGPT, 1.3, India Small Caps, SCIN, 1.2, New Zealand, ENZL, 1.2, Philippines, EPHE, 1.2, Vietnam, VNM, 1.2,  Ireland, EIRL, 1.1, Norway, NORW, 1.0.

While Global Financials, IXG, traded slightly higher, on November 4, 2013, Swiss Banks, UBS AG, UBS, and Credit Suisse, CS, traded strongly lower.  South Korea Banks, KB Financial, KB, and Shinhan Financial, SHG, as well as Royal Bank of Scotland, RBS, and National Bank of Greece, NBG, traded lower.  It is these banks that are pivoting the Global Financials, IXG, lower.

The Global Financials, IXG, are leading World Stocks, VT, and Nation Investment, EFA, lower, as is communicated by the ongoing Combined Google Finance Chart of Global Financials, IXG, Transportation, XTN, Global Industrial Producers, FXR, Small Cap Pure Value, RZV, and Small Cap Pure Growth, RZG.

It’s important to review history.  Milton Friedman truly was an economic genius, but cannot be considered a true libertarian along the lines of Hayek, Mises, and Rothbard, as he proposed the Free to Choose floating currency regime, which President Nixon embraced and took the world off the gold standard to commence the Vietnam War, which inaugurated President Nixon as an Imperial President and placed him in charge of the what would become the US Dollar Hegemonic Empire.

According to Milton Friedman’s doctrine, the US Dollar became the world’s reserve currency, and currencies began to float in relation to investment opportunities based upon investment opportunities in democratic nation states. Corporations embraced globalism, which drove Global Industrials Producers to seek ever increasing profit as well as debt.  Investors embraced schemes of credit, such as Junk Bonds, JNK, Ultra Junk Bonds, UJB, Spin Offs, CSD, and Leveraged Buyouts, PSP, as well as schemes of currency and carry trade investing, such as the EURJPY, and the value of Risk Assets, like Small Cap Value Stocks, RZV, Small Cap Growth Stocks, RZG, Biotechnology, IBB, Solar Energy, TAN, Social Media, SOCL, Energy Producers, XOP, and Small Cap Energy, PSCE, soared.

Dr. Friedman should be honored as the father of liberalism credit system and currency carry trade system, which was built later upon by the many fathers of the leveraged speculative investment community, known as the banking system, to fully complete liberalism as the age of investment choice.

Benson te informs of the current banking elite relating Central Bankers Are The Real Centers Of Political Power The fiscal revenues in the Land of the Free rest exclusively in the hands of a tiny banking elite. Everything else is just an illusion to conceal the truth and make people think that they’re in control. Money, which represents half of almost every transactions made every day, has been in the control of a few unelected technocrats who have the capacity to run society aground. Said differently centralization of money equates to a top-down dynamic of risk distribution in terms of money thereby making risks systemic, e.g. boom bust cycles, stagflation and hyperinflation.

Liberalism pivots into authoritarianism  as the Great Bear Market of 2013 commences. The trade lower in World Stocks, VT, Semiconductors, XSD, Nation Investment, EFA, Global Financials, IXG, Copper Miners, COPX, established Wednesday, October 23, 2013, as an epic and pivotal day in economic and political history, as fears arose that the greatly interventionist monetary policies of the world central banks have turned “money good” investment bad, and have thus turned Major World Currencies, DBV, such as the Euro, FXE, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, lower in value. The fiat money system died, and the diktat money system came into being turning the financial markets from bull to bear as money stopped growing on QEs.   The pursuit of risk assets, such as Small Cap Growth Stocks, RZG, and Small Cap Value Stocks, RZV, and Vice Stocks, VICEX, and the pursuit of yield fed risk appetite in liberalism. But now under authoritarianism, risk aversion feeds the investment demand for possession of precious metals with the price of Gold, $GOLD, starting to rise beginning on October 14, 2013.

The Great Bear Market of 2013, commenced on October 23, 2013, as confirmed by the Market Off ETN, OFF, rising in value, terminating liberalism’s Milton Friedmans Free To Choose Floating Currency and Credit Banker Regime.

The world passed through peak democratic nation state sovereignty and peak banker seigniorage on October 23, 2013, as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, turned lower from their PBOC Monetary Stimulus, and US Fed No Taper, and ECB Bank Supervision Rally highs.

And on October 23, 2013, The US Ten Year Notes, TLT, rose to strong resistance at 108 and turned lower, and on Friday November 1, 2013, fell parabolically lower when the Interest rate on the US Ten Year Note, ^TNX, rose to 2.62%.

Friday November 1, 2013, will be known as Black Friday for Bonds, as the following traded strongly  lower, 30 Year US Government Bonds, EDV, 10 Year US Government Note, TLT, Government Short Term Bonds, SHY, Long Duration Corporate Bonds, BLV, Corporate Bonds, LQD, International Treasury Bonds, PICB, World Treasury Bonds, BWX, Emerging Market Bonds, EMB, Municipal bonds, MUB, Junk Bonds, JNK, Mortgage Backed Bonds, MBB, and even Short Duration Bonds, FLOT. The failure of liberalism’s credit was complete.

There are no safe bonds anywhere in the world. This puts what has been traditionally perceived as risk free money, like Short Term Bonds, FLOT, Short Term Government Bond, SHY, Enhanced Bonds, MINT, and GSY, and Money Market Mutual Funds which have traditionally maintained a constant one-dollar value, at risk for loss of capital.

Jason Kephart of Investment News reported on August 5, 2013, More Regulation Is Likely On The Way For Money Market Funds. The average money market fund yields just 0.01% today, according to money market research firm iMoneyNet.

The low yields that money market funds offer have caused companies that manage them to waive some of the fees tied to them, to ensure that investors aren’t investing in a losing proposition. Since 2008, for example, Schwab has waived more than $2 billion in money market fund fees.

The SEC has proposed two potential changes. One would direct prime institutional money market funds to disclose their daily net asset value rather than the stable $1 NAV that is the norm. The other proposal would limit withdrawals and charge withdrawal fees during times of market stress.

Debt deflation enabled the currency traders to commence competitive currency devaluation in the beginning of what will be an epic currency war against the world central bankers, with the result that the US Dollar, $USD, stopped falling in value, and the Australian Dollar, FXA, Euro, FXE, British Pound Sterling, FXB, Swedish Krona, FXS, Swiss Franc, FXF, Brazilian Real, BZF, Indian Rupe, ICN, Emerging Market Currencies, CEW, all traded lower in value. The collapse of currencies is seen in their combined ongoing Yahoo Finance chart together with the 200% Dollar ETF, UUP.

In response to the downturn in financial stocks, the world central banks have came out with a new end game, that is to roll out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, where banks of all types, the Too Big To Fail Banks, RWW, the Regional Banks, KRE, the Nasdaq Community Banks, QABA, and Savings and Loans, S&Ls, such as BOFI, STSA, EBSB, ISBC, STSA, PULB, BANR, are going to be integrated into government, and will will be known as the government banks, or gov banks for short, and will serve as the bedrock for regional governance, which replaces democratic nation state rule.

The Fed, and other central banks don’t have an endgame that includes helping the investor, the working class or middle class. Monetary policies of easing and monetary tools such as $85 billion of purchasing of debt is history, that is history in the sense that it has any useful benefit.

The world central bankers are effecting a global economic and political coup d’etat, … with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … pivoting the world from liberalism’s regime of nation state democracy into authoritarianism’s regime of regional statism, specifically regional governance and totalitarian collectivism, except for the Big Apple, as the WSJ reports New York City Takes Left Turn. Election of Bill de Blasio as Mayor could be test of revival of liberalism in American political life.

Dollar Vigilante asks Are You Prepared For A US Bank Bail-In?

Mankind’s journey of liberalism came to an end on October 23, 2013 with the failure of credit, AGG, the collapse of currencies, such as Brazilian Real, BZF, the Australian Dollar, FXA, the Euro, FXE,  and disinvestment out of Global Financials, IXG, World Stocks, VT, Nation Investment, EFA.

Mankind’s journey of authoritarianism commenced on October 23, 2013, with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio.  The provision of new world central bank monetary policies and schemes was the Genesis Event, that terminated the world out of the twin global former empires of the British Empire and the US Hegemonic empire, and into the new rule of the Ten Toed Kingdom, where nannycrats rule establishing regional stability, security and sustainability in of the world’s ten regions.

Shaun Richards asks How long will the UK economy be run for the benefit of banks like RBS and the Co-op?  The RBS has continued on a troubled path since its effective nationalisation back on October 13th 2008. The (new) measures will include the creation of an internal bad bank to manage the run-down of high risk assets projected to be £38 billion by the end of 2013.

John Redwood writes The Bad News Still Continues From RBS. The Bank reported more losses and still pays no dividends. It has published a report on its own small and medium sized business lending and service which is extremely critical.

Bloomberg reports Swiss Banks May Shrink on Higher Leverage, JPMorgan Says. UBS AG and Credit Suisse, AG, Switzerland’s biggest banks, may have to shrink their fixed income, currencies and commodities activities if the nation’s regulator imposes higher leverage ratios than currently planned, according to JPMorgan Chase & Co analysts.

On Tuesday, November 5, 2013, All forms of fiat money traded lower, strengthening the Bear Market which commenced October 23, 2013 on a number of fears, such as that the world central bank’s monetary policies no longer provide stimulus, that the global banks cannot provide the investment returns that they have in the past, that traditional democratic governance is at an impasse, and that debtors cannot repay lenders.

It was on October 23, 3013, that bond vigilantes regained control of interest rates globally, as is reflected in the Interest Rate on the US Ten Year Note, ^TNX, rising from 2.48%, to its current rate of 2.66%. Debt deflation commenced in World Treasury Bonds, BWX, and Emerging Market Bonds, EMB.  And competitive currency commenced with the Major World Currencies, such as FXE, FXC, FXB, FXS ,FXF, FXA, and the Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF, trading lower in value, which caused the US Dollar, $USD, UUP to rise in value, stimulating investors to derisk out of World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG.

On Tuesday November 5, 2013, Global Financials, IXG, World Stocks, VT, and Nation Investment, EFA, traded lower with the Eurozone, EZU, traded sharply lower on lower European Financials, EUFN, such as UBS, CS, NBG, DB, SAN, RBS, BCS, and a lower European Debt, EU; and the Emerging Markets, EEM, also traded sharply lower, with Emerging Market Infrastructure, EMIF, Emerging Market Mining, EMMT, and Emerging Market Financials, EMFN, such as BFR, BMA, GGAL, BBVA, BBD, BBVA, ITUB, BSBR, BAP, BCH, and CHIC, trading lower on a lower Emerging Market Currencies, CEW, and lower Emerging Market Bond, EMB.

Global Financials, IXG, -0.9%

European Financials, EUFN, -2.0, with Spain’s Bank, SAN, -2.0, Germany’s Bank DB, -2.0, and Ireland’s Bank, IRE,-1.5,

Emerging Market Financials, EMFN, -1.2

Brazil’s, BBDO, -3.5, ITUB, -4.1, BBVA, -2.7, and BSBR, -2.4

India’s Banks, IBN, -2.0, and HDB, -2.0

Chinese Financials, CHIX, -1.7

UK Banks, RBS, -2.5, BCS, -2.0, and LYG,-1.0,  all traded lower.

Japanese Banks, MTU, -1.7, and SMFG, -1.1, traded lower.

World Stocks, VT, -0.7%; sectors trading lower included

Paper and Lumber Producers, WOOD -2.0, and Homebuilding, ITB, -1.6

Yield bearing sectors trading lower included Real Estate, IYR, -1.5%, Global Real Estate, DRW, -0.9, Real Estate Reits, REZ, -2.1, Global Utilities,  DBU, -0.8, and Leveraged Buyouts, PSP, -0.7

Energy Production, XOP, -2.1,  and Small Cap Energy, PSCE, -2.0

Nation Investment, EFA, -0.9%; nations trading lower included

Turkey, TUR, -3.5

Mexico, EWW -3.2

Brazil, EWZ, -2.9 and EWZS, -3.1

South Africa, EZA, -2.4

Peru, EPU, -2.1

Poland, EPOL, -2.0

Taiwan, EWT, -1.7

Chile, ECH, -1.7

India, INP -1.7

Philippines, EPHE, -1.7

Russia, RSX, -1.7 and ERUS, -1.9

Spain, EWP, -1.7

Italy, EWI, -1.5

Malaysia, -1.5

Sweden, EWD, -1.4

South Korea, EWY, -1.3

China, YAO, -1.2

Greece, GREK -1.2

The Nikkei, NKY, -0.9

Solar Stocks, TAN, traded 1.2% higher, manifesting a spinning top doji chart pattern; the same chart pattern is seen in GTAT, and SCTY.

Commodities, DBC, -0.3%, with Oil, USO, -1.2%.

The US Dollar, $USD, traded higher, as the Brazilian Real, BZF, -1.7%, led Emerging Market Currencies, CEW, -0.6 lower; and the Swiss Franc, -0.5%, and the Euro FXE, -0.4, led Major World Currencies, lower.

The expansionary part of the credit cycle has come to an end as the Steepner ETF, STPP, rose 0.9%, reflecting a steepening of the 10 30 US Sovereign Debt Yield Curve, as the Interest Rate on the US Ten Year Note, ^TNX, shows a rise to close at 2.66%, forcing Aggregate Credit, AGG, -0.3%, with the longer duration bonds traded more lower than the shorter duration bonds; Junk Bonds, JNK, -0.3%.

The chart of the EUR/JPY, showed a close lower at 132.79, as the Euro, FXE, closed lower at 133.27, and the Yen, FXY, closed higher at 95.17.

One definition of credit is trust, and it is clearly failing. Debt deflation, in Europe, and in the periphery, is destroying fiat wealth. The world central banks policies of monetization of debt, have finally crossed the rubicon of sound monetary policy and have destroyed credit as well as currency carry trade investing.  With liberalism’s dual spigots of investment liquidity turned off and now running toxic, charts of Global Financials, IXG, Major World Currencies, DBV, Emerging Market Currencies, CEW, and Aggregate Credit, ACC, show fiat money died on October 23, 2013. And Japan with Japanese Government Debt At Record 1,011.2 Trillion Yen, according to the Global Post, is an example of the death in fiat money, with the Nikkei, NKY, trading lower and the inverse of its Treasury debt, JBGS, trading higher.

The very nature of credit, currencies, money, and economic systems is changing.

Under liberalism, investors trusted in the policy of investment choice and banker schemes of credit and carry trade investment of the speculative leveraged investment community for profitable investment returns.  The Sarah Mulholland and Tim Higgins Bloomberg report Good Job Is Good Enough As Subprime Car Buyers Lift Sales, and the stunning rise in subprime automobile lender Nicholas Financial, NICK from $2 to $17 documents the schemes of credit that existed under liberalism.

With the failure of fiat money on October 23, 2013, people worldwide will increasingly come to trust the diktat of regional nannycrats and their schemes of debt servitude for regional security, regional stability, and regional sustainability, as the diktat money system rises to replace the fiat money system under authoritarianism.

News reports document the rise of diktat money. Christoph Dreir of WSWS reports Greek Police Storm ERT Broadcasting Centre To End Workers’ Occupation. That’s how fascism acts, shifty and in the dark,” another colleague called out as they left the building  …  Patraick O’Connor of WSWS reports Australian Treasurer Warns Of Spending Cuts, Declining Living Standards. Joe Hockey declared that “fiscal sustainability” required “winding back some spending that people have come to take for granted.”  …  And Mark Church and Richard Phillips of WSWS report Australia Public Housing Tenants Face Evictions. Australian governments, Labor, Liberal and Green, are stepping up their attacks on people living in public housing.

Crony capitalism European socialism and Greek Socialism are epitaphs on the bygone era of liberalism. Now regionalism is singular economic system under authoritarianism. Regional integration, that is regionalization is the wave of the future.

Open Europe reports Talks between the Greek government and the EU/IMF/ECB Troika resumed yesterday. According to Kathimerini Kathimerini 2 WSJ WSJ 2 Reuters the Troika is pressing for a cut in the level of social security contributions employers are obliged to pay, and for the closure or streamlining of the state-owned firm Hellenic Defense Systems (EAS).

The Euro Currency Union has expanded to its full limit, presenting the maximum stress in the South North divide, that is the Latin Nordic divide. Zero Hedge reports Greek Companies Unable To Pay Taxes Explode From 182K To Over Half A Million In One Month. And Ambrose Evans Pritchard writes EU Commission Opens Door To Showdown With Germany. The European Commission has warned Germany it could face disciplinary action for running excess trade surpluses at the expense of EU partners.

Isabella Rota Baldini, Paolo Manasse, post in VoxEU What’s wrong with Europe? Unlike the US, Europe is struggling to recover from the crisis. This is especially the case in certain European countries. This column discusses why the process of convergence in the Eurozone has slowed down. It proposes a way for European institutions to cope with the structural problems. with individual country level reforms and a federal budget. Otherwise, the alternative could be a disintegration of the Eurozone.

John Redwood, Conservative MP writes Its Slow Going In Europe As Its Economic Policies Make For A Recession Machine.

Aristides N Hatzis of GreekCrisisNet writes in FT Watch Greece As It May Be The Next Weimar Germany. And BBC reports General Strike Against Cuts Brings Greece To A Halt.   Kathimerini posts Greece’s Biggest Telecom OTE To Cut 1,100 Fixed Line Telecoms Jobs. And Kathimerini also reports Biggest Deflation In Half A Century In Greece. Major drop in demand and in imports signalled a 2 percent annual shrinking of prices in October. Roger Bootle of Capital Economics writes in The Telegraph Survival Of The Eurozone May Have Been Greatly Exaggerated: Last week’s surprise interest rate cut by the ECB was largely a response to the looming danger of deflation in the eurozone.

Marianne Arens and Peter Schwarz, of WSWS report Italian government crisis remains unresolved.  Even after surviving a second no-confidence vote at the beginning of October, the Italian government of Prime Minister Enrico Letta is staggering from one crisis to the next.

On Wednesday, November 6, 2013. World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, rose on short sell covering, recovering most of Tuesday’s losses. Spain’s SAN, rose helping European Financials, EUFN, recover some of its yesterday’s losses. But India’s Banks, IBN, and HDB, continued lower.

Sectors trading higher included

Industrial Miners, PICK, 1.9 on higher BHP, RIO, VALE,

Software, IGV, 1.0

Resorts and Casinos, BJK, 0.8

Stockbrokers, IAI, 0.8

Regional Banks, KRE, 0.8

Sectors trading lower included,

Biotechnology, IBB -2.9

Solar Energy, TAN, -1.9, as is seen in the stocks in this Finviz Screener trading lower.

Pharmaceuticals, PJP, -1.1

IPOs, FPX, -1.0

Transportation, XTN, -1.0

Yield Bearing Sectors trading higher included

Utilities, XLU, 1.4; with  OGE, ITC, AES, D, NEE, LNT, recovering to their May 2013 highs.

Leveraged Buyouts, PSP, 0.9

Energy Production, XOP -2.2, and Small Cap Energy, PSCE, -1.4

Nations trading higher included

Norway, NORW, 2.2

Thailand, THD, 2.1

Sweden, EWD, 1.8

Nikkei, NKY, 1.7

Poland, EPOL, 1.6

New Zealand, ENZL, 1.5

Egypt, EGPT, 1.4

Turkey, TUR, 1.1

Switzerland, EWL, 1.1

German Small Caps, GERJ, 1.1

Netherlands, EWN, 1.1

Greece, GREK, 1.1

Italy, EWI, 1.1

Spain, EWP, 1.1

Ireland, EIRL, 1.0

The Eurozone, EZU, 1.0

Nations trading lower included

Argentina, ARGT, -2.2, on the trade lower in its Banks, GGAL, BFR, BMA,

India, INP, -1.0, SCIN, -1.6, on a lower India Rupe, ICN.

While Junk Bonds, Aggregate Credit, AGG, bounced higher; Ultra Junk Bonds, UJB, traded strongly lower from their rally high.

The US Dollar, USD, traded lower, as most major world currencies, such as the Swedish Krona, FXS, the Australian Dollar, FXA, the Euro, FXE, the British Pound Sterling, FXB, and the Swiss Franc, FXF, leveraged higher over the Japanese Yen, FXY, accounting for Wednesday’s November 5, 2013, short sell covering strength.

In wrote in my blog entry for the week ending October, 25, 2013, The New Economic And Political Paradigm Of Authoritarianism Emerges To Establish A Eurozone Banking Union And Fiscal Union Featuring The Diktat Of Nannycrats As Jesus Christ Opens The First Seal Of The Scroll. None of Europe’s banks are sound, as they are all loaded to the gills with nation state Treasury debt, EU, that cannot be and will not be repaid. The European Financial Institutions EUFN, such as Germany’s DB, Spain’s SAN, and Ireland’s IRE, are insolvent financial banks, and the European nations, at least the PIIGS, that is the periphery nations Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns.

Insolvent sovereigns cannot govern, and insolvent banks cannot provide seigniorage. It is only through  godsend, that is a lifesaver, that the European banks have financial life; it came through the genius of Mario Draghi, who provided the monetary policies of LTRO1, LTRO2, and OMT.

The Euro FXE, is trading at its rally high of 135.36; its strength is not a function of free market place trading between buyers and sellers of nation state treasury debt; but rather the Euro has been given seigniorage by the sovereignty of one man, that being the ECB’s Mario Draghi.  Not only is the strength of the Euro, FXE, the European Financials, EUFN, and nation investment in Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, an awesome thing, it is truly an epic thing, as well as a pivotal thing, and a terminal thing. Liberalism has attained peak sovereignty, peak seigniorage, and peak prosperity.

(The NYT writes) Ignazio Angeloni is one of the more multifaceted lieutenants of Mario Draghi, the president of the European Central Bank. The immediate task is to prepare for the inception of a quasi-independent supervisory branch of the central bank, which will have its own chairman. I wrote as Mario Draghi’s banking lieutenant, he is one of many regional nannycrats rising in power to effect regional economic governance.

Since liberalism’s peak experience in peak money on October 22, 2013, the Euro, FXE, has traded parabolically lower to trade at 133.77. The European Financials, EUFN, have slid from 24.75 to 24.00, and the Eurozone, EZU, have slid from 40.30 to 39.70

Interest rates are headed dramatically higher: the expansionary part of the credit cycle ended on October 23, 2013, as the Interest Rate on the US Ten Year Note, ^TNX, rose from 2.49%, causing World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, to turn lower from their PBOC Monetary Stimulus, and US Fed No Taper, and ECB Bank Supervision Rally highs, as bond vigilantes now have control of Interest Rates globally, enabling currency traders to short sell major world currencies, such as the Euro, FXE, and emerging market currencies, such as Brazilian Real, BZF.  It has been the currency carry traded countries which have experienced the greatest debt deflation since the world entered Kondratieff Winter on October 23, 2013, as is seen in the combined ongoing Yahoo Finance chart of Turkey, TUR, Argentina, ARGT, Brazil, EWZ,  and Indonesia, IDX.

Given the failure of money, that is stocks, credit, and currencies on October, 23, 2013, economies cannot and will not grow; expect economic contraction, especially in China which saw a dramatic rise in fiat asset values, beginning in late June 2013, only to experience a sell off since October 23, 2013, as is seen in the combined ongoing Yahoo Finance Chart of YAO, CHIX, CHII, ECNS, and TAO.

Liberalism was the age of investment choice, which came from the world central bank’s loose monetary policies and banker schemes of credit and currency carry trade investment. Liberalism’s flag was the Milton Friedman free to choose fiat money system, coming on line in 1971.

But Jesus Christ, acting in dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, that is in the economic and political plan of God to complete every age, epoch, era and time period, fully matured liberalism on October 23, 2013, producing its peak fiat money experience, as is seen in the value of risk free money, Short Term Bonds, FLOT, trading lower.

Jesus Christ, has pivoted the world into the age of diktat, and is changing the dynamic of banking, where the world central bank elite are rolling out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, where the banks, that is the Too Big To Fail Banks, RWW, the Regional Banks, KRE, the Nasdaq Community Banks, QABA, and Savings and Loans, S&Ls, such as EBSB, ISBC, COLB, PULB, BANR, NYCB, and BOFI, are going to be integrated into government, and will be known as the government banks, or gov banks for short, as is seen with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, where nannycrat schemes of diktat and debt servitude will prevail. While Scott Grannis writes The Fed’s Objective Is To Destroy The Demand For Cash, I believe that the Fed’s objective, as well as all the other world central banks’ objective, is to corner all cash and place cash everywhere under regional control as part of the growing dynamic of regionalism which is replacing globalism. Authoritarianism’s flag is the diktat money system.

Obamacare is a leading example of diktat money as Robert Wenzel posts in Economic Policy Journal Obama personally apologizes for americans losing health coverage … and asks So what the hell is he going to do, give us our healthcare liberties back? Not a chance.  Many are appalled by the debt servitude and totalitarian collectivism of Obamacare, Mike Mish Shedlock relates New Obamshock Rules. Obamacare reflects one of the lynchpin failings of democracy, that being Obamacare has nothing to do with social justice but rather documents regulatory capture, as Mish continues Five Reasons Obamacare Legislation Failed. First, Lobbyists wrote the ACA legislation. When Nancy Pelosi stated “We have to pass the health care bill so that you can find out what is in it“, she was referring to you , me, and Congress. An extremely tiny number of people knew what was in the bill: lobbyists for hospitals, lobbyists for insurance companies, lobbyists for HMOs, and lobbyists for major pharmaceutical companies. For historical record, the second lynchpin failing of democracy, is that of capitulation to whoever the president in exercise of his will as is seen in the Jason Ditz Antiwar report Kerry: Obama Willing to Attack Iran At Any Time.

The major concept here is that with the rolling out of the antifragile financial system, an Alberto Mingardi Econolog Econolib term, as well as the rollout of Obamacare, the US has passed though liberalism’s peak democracy and has entered into authoritarianism.

There is a risk reward relationship in all things, and it is a fundamental reality to investing. For every investment there is a reward. When risks arise to lessen the rewards, or when risks arise which present the risk of losing one’s investment, then one sells, and seeks a safe haven and safe haven assets.

I do not consider money market funds or saving accounts, safe investments, as they are all bond based, and are likely to be subject to capital controls, where for all practical purposes one’s wealth will be confiscated.  One might consider investing in the Grizzly Short Bear Market Mutual Fund, GRZZX, as well as the non yield bearing ETFs, OFF, STPP, HDGE, XVZ, GLD, JGBS, YCS, SAGG, HYHG, seen in this Finviz Screener, as all of these ETFs are now rising from their recent lows.

Some will read the chilling and stirring Robert Wenzel, Economic Policy Journal article, You Have To Prepare and Act Very Early,  and make a decision to begin to move some of their funds offshore.

Yet moving one’s investment funds out of US banks, such as Bank of America, BAC, or in US investment banks, such as JP Morgan, JPM, or in Stockbrokers, such as E*Trade, ETFC, or TD Ameritrade, AMTD, presents currency risks. One might consider a bank in Hong Kong where one can place one’s investments in any number of currencies or even denominate it in gold; yet overseas financial centers whether they be London, or Hong Kong, could very well be the epicenter of the next financial system meltdown. Be advised that there exists the risk that one’s margined brokerage account will be swept-up into litigation in the event of a financial market collapse.

Inasmuch as the world has pivoted from liberalism’s risk-on age of investment choice to authoritarianism’s risk-off age of diktat, risk aversion will drive investors out of traditional safe haven investments, such as savings accounts into gold, the classic refuge from monetary risk and political risk. The age of the investment demand for gold commenced in July 2013, as is seen in the chart of the gold ETF, GLD, trading higher. I recommend that one start to dollar cost average an investment in, and take possession of, gold and silver bullion.

Open Europe in their for fee newsletter, which I recommend that one purchase, reports Lord Jones: If we can’t change the EU, we must leave. Lord Jones, the former director-general of the CBI writes in  Times Times: Jones Telegraph: Cameron “Staying in a reformed Europe has to be the right course, but should we stay in the current mess? Frankly, our nation just can’t afford to, if we are to provide our grandchildren with a globally competitive economy.”  Meanwhile, the House of Commons is due to vote on the next stage a Bill legislating for a referendum on British membership of the EU by 2017.  Conservatives are expected to back James Wharton MPs’ Private Member’s Bill with between 5 and 20 rebels, who want an immediate referendum

And Open Europe also relates Euractiv EUobserver  reports German MEP Martin Schulz has been nominated as “candidate designate” for President of the European Commission by 19 out of 28 parties in the Party of European Socialists (PES).

On Thursday, November 7, 2013, The seesaw destruction of fiat money that commenced October 23, 2013, accelerated as the Euro, FXE, and European Debt, EU, plummeted, forcing Eurozone Stock, EZU, European Financials, EUFN, and Base Metals, DBB, Gold, GLD, and Commodities, DBC, lower, after Reuters reported ECB Unexpectedly Announced Cuts In Interest Rates; the fall of these forced the Interest Rate on the US Ten Year Note, ^TNX, down to 2.61%, which caused Aggregate Credit, AGG, to weakly rise.

This sawing asunder of fiat money is seen in both the world’s largest equity ETF, VTI, and the world’s largest credit ETF, BOND, now both falling lower in value.

Of note equities of all types are no longer able to leverage higher over credit, as the twin spigots of liberalism’s leveraged speculative investment, these being the debt trade, seen in Junk Bonds, JNK, and currency carry trades, seen in the EUR/JPY, both trading lower in value.  Investors are no longer interested in convertible securities, as is seen in Barclays Convertible Securities, CWB, trading parabolically lower; the age of financialization of stocks, and the securitization of debt is over, through, finished and done.

With US Stocks are no longer leveraging higher over US Ten Year US Treasury Bonds, VTI:TLT, and Eurozone Stocks are no longer leveraging higher over EU Credit, EZU:EU, the sovereignty of democratic nation states, EFA, and their banker driven, IXG, seigniorage is history.

The era of liberalism, and its monetary policies of investment choice, has failed on the liberalization of credit. QEs whether they be by the US Fed, the ECB, the BoJ, or the PBOC, not only do not work, they are now turning money good investments bad. And as a result, economic conditions, in particular economic growth can no longer be stimulated by liberal monetary policies of the world central banks. Now, economic deflation will surely accelerate and Monty Pelerin of Economic Noise warns Another Step Closer To Economic Armageddon.

World Stocks, VT, -1.4%, Nation Investment, EFA, -1.6%, and Global Financials, IXG, -1.4, with Asset Managers, such as Blackrock, BLK, seen in this Finviz Screener, -2.6%, India Earnings, EPI, -3.2%, Chinese Financials, CHIX, -1.7%, Brazil Financials, BRAF, -1.4%, and European Financials, EUFN, -1.4%.

The BRICS, EEB, -2.0, with Brazil, EWZ, -2.6, Russia, RSX, -1.4, India, INP, -2.1, and China, YAO, -1.6. And the Emerging Markets, EEM, -1.8, with Philippines, EPHE, -3.2, Argentina, ARGT, -2.9, Poland, EPOL, -2.9, Egypt, -2.7, South Africa, EZA, -2.2, New Zealand, ENZL, -2.0, Thailand, THD, -1.9, Indonesia, -1.7.

Norway, NORW, -2.9, Nikkei, NKY, -2.4, The UK, EWU, -2.0, US Small Caps, IWM, -1.7, Sweden, EWD, -1.7.

Benson te writes ECB Cuts Interest Rates While it may be true that general bank lending has been falling, in breaking down the details we find the Eurozone’s banking system credit to the government has exploded even as credit to the private sector has weakened. In short, government borrowing has taken the slack from the private sector. The complex maneuvering by the troika, the ECB, the banking system and the government to keep rates low has resulted to a massive expansion of debt. The Eurozone’s debt as % to the GDP has been skyrocketing.

I remark that today November 7, 2013, the benefit of all that credit burst, as Eurozone Stocks, EZU, fell 1.7%, and Italy, EWI, fell 3.7%, Spain, EWP, 2.8%, Netherlands, EWN, 1.8%. This suggests to me that the late June 2013 through October 23, 2013, rally in Eurozone Stocks is over.

Benson te continues Contra policymakers and the mainstream, the risks of deflation remains a popular bogeyman used to justify the “euthanasia of the rentier” via zero bound rates and QE.

While the Eurozone’s banking system remains clogged or the transmission mechanism broken due to impaired balance sheets, substantial credit growth has been taking place at the bond markets.

And credit growth in the bond markets fired up by ECB and government policies has been redistributing resources or has been benefiting the asset markets (via asset inflation) at the expense of the real economy (revealed by CPI disinflation).  The real intent of the ECB’s rate cut has been to keep interest payments low for the rapidly swelling the Eurozone’s government debts since the Eurozone government’s refusal to reform, France should serve as an example. A second unstated goal has been to boost asset markets in order to keep their ‘broken’ banking system afloat.

European politicians, bureaucrats and their mainstream lackeys have been pulling a wool over everyone’s eyes. Has the global financial markets seen ECB’s actions as insufficient? Or has the positive impact on financial markets from credit easing policies reached a tipping point in terms of diminishing returns?

I respond that yes a tipping point has been reached, the world is tipping from liberalism into authoritarianism; where capitalism, European socialism, and Greek socialism, no longer exist as economic systems, but rather regionalism exists as the sole economic system.  Regional integration is rising to support regional currencies, and bartering agreements in each of the world’s ten regions, as undollar transactions rise to be the norm. The Caixin Online report, Canadian Province Issues Offshore Yuan Denominated Bonds, supports the concept that regional sovereignty and seigniorage is rising to provide regional security, stability, and sustainability, replacing democratic nation state rule and wall street banker seigniorage.

The S&P 500, SPY, manifested 1.3% parabolica fall lower to close at 1747.

Sectors trading lower included

Solar Energy, TAN, -5.1%

Social Media, SOCL, -3.5 … with FB, LNKD, ZNGA, GRPN, P, RENN, lower

Spin Offs, CSD, -3.0 … with FENG, LMOS, XLS, TAXI, SXC, FBHS, AMCX, MSG, lower

Nasdaq Internet, PNQI, -2.8 … with RAX, VRSN, SFLY, CCOI, BIDU, TRIP, YHOO, AOL, lower

Copper Miners, COPX, -2.8 … with FCX, SCCO, lower

Metal Manufacturing, XME, -2.7 … GSM, PKOH, WOR, PCP, MLI, CRS, BOOM, RS, SCHN, STLD

Industrial Miners, PICK, -2.5 … with RIO, VALE, BHP, lower

Food and Beverage, PBJ, -2.5

Resorts and Casinos, BJK, -2.5 … with IGT, MCRI, SGMS, MPEL, BYI, BYD, CZR, MGAM, PENN,

Media, PBS, -2.4 … with SBGI, SNI, CBS, CMLS, NYT, AHC, GCI, MEG, ROAI, lower

Semiconductors, XSD, -2.3 … with PLAB, DSPG, NXPI, lower

Design Build, FLM, -2.3 … with JEC, FLR, FRM, URS, TTEK, lower

IPOs, FPX, -2.3 … with Z, TRLA, VNET, YNDX, GOGO, lower

Steel, SLX, -2.3 … with TS, SID, GGB, SSLT, PKX, NUE, lower

Internet Retail, FDN, -2.2 … with AMZN, PCLN, lower

Small Cap Industrial, PSCI,  -2.1 … BEAV, B, DXPE, ROLL, MWA, TTC, LECO, HEES, lower

Consumer Services, IYC, -2.0 … with TWX, DIS, STRZA, FOXA, NFLX, AMCX, DISCA, DISH, DTV, TIVO, TWC, VIAB, lower

Small Cap Consumer Staples, PSCC, -1.9 … with AGRO, BDBD, CQB, lower

Global Consumer Discretionary, RXI, -1.8 … with TWX, DIS, STRZA, FOXA, NFLX, AMCX , DISCA, DISH, DTV, TIVO, TWC, VIAB, lower

Paper Producers, WOOD, -1.7

Biotechnology, IBB, -1.7 … with REGN, AMGN, BIIB, GILD, ALXN, ILMN, lower

Transportation, XTN, -1.7.

Global Industrial Producers, FXR, -1.7 … with ETN, FLS, ITW, GWW, PLL, ITT, CFX, lower.

Yield Bearing Sectors trading lower included

SEA, -2.5%

DBU, -2.2 % with HNP, EBR, ELP, CIG, lower

IST, -1.9% with TI-A, VOD, ORAN, lower

PSP, -1.7% with DLPH, MRO, LUK, lower

Energy Production, XOP, -2.8% and Small Cap Energy, PSCE, -2.5%.

Silver Miners, SIL, -2.8% Gold Miners, GDX, -2.6% as the Silver ETF, SLV, -0.8% to close at 20.83; and the Gold Gold ETF, GLD, -0.8% to close at 126.16.

Aggregate Credit, AGG, closed weakly higher.

The chart of the US Dollar, $USD, UUP, manifested a strong rise to close at 80.92. The Euro, FXE, closed sharply lower at 132.74; and the Japanese Yen, FXY, closed higher at 99.73, propelling the master currency carry trade, that is the EURJPY sharply lower, taking Commodities, DBC, lower.

Currencies traded lower as follows: Australian Dollar, FXA, -0.9%, Euro, FXE, – 0.8%, Swedish Krona, FXS, -0.7%, Swiss Franc, FXF, -0.5%, and Emerging Market Currencies, CEW, -0.4%, such as the Brazilian Real, BZF, -0.9%, and the Indian Rupe, ICN, -0.3%.

Business Week reports Super Typhoon Haiyan Hits The Philippines. Super Typhoon Haiyan, the equivalent of a Category 5 hurricane, slammed into the Philippines today after forcing thousands of people to evacuate. Haiyan had top winds of almost 196 miles (315 kilometers) per hour when it was about 489 miles southeast of Manila, the US Navy’s Joint Typhoon Warning Center said at 2 p.m. East Coast time. Winds gusted to as high as 235 mph, the Navy said. About 125,600 people in 22 provinces have been evacuated, the nation’s disaster monitoring agency said in a 6 a.m. bulletin. “If it maintains its strength, there has never been a storm this strong making landfall anywhere in the world,” said Jeff Masters, founder of Weather Underground in Ann Arbor, Michigan. “This is off the charts.”

Killer storms and their related social issues have been expected and should serve as a spiritual wake-up call as Jesus Christ warned, “There will be famines, pestilences, and earthquakes in various places; all these are the beginning of sorrows”, Matthew 24:7-8.  And The Apostle John wrote of end time events relating, When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. 6 And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.” Revelation 6:5-6.

Tyler Durden reports Typhoon Death Count Surpasses 10,000; People “Walk Like Zombies Looking For Food; Martial Law Imminent With over 10,000 dead in the Philippines, here is a selection of what the survivors in the aftermath of the tragic hurricane saw: “The devastation is so big.”… “I don’t know how to describe what I saw. It’s horrific.”…”People are walking like zombies looking for food,” said Jenny Chu, a medical student in Leyte. “It’s like a movie.”…”It’s like the end of the world.”

On Friday, November 8, 2013, The Interest Rate on the US Ten Year Note, ^TNX, exploded higher to 2.75%, and the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened dramatically, as is seen in the Steepner ETF, STPP, steepening,sending Aggregate Credit, AGG, plummeting.

The Emerging Market Financials, EMFN, tumbled as India’s Banks, IBN, and HDB, and as Brazil’s Banks, ITUB, BBD, BBDO, BSBR, and as Peru’s Banks, BAP, and as Chile’s Banks, BCH, BCA, all tumbled lower on the higher Interest Rate on the US Ten Year Note, ^TNX, and as debt deflation struck Emerging Market Currencies, CEW, and as Emerging Market Bonds, EMB, causing Emerging Market Infrastructure, EMIF, China Infrastructure, CHXX, and Emerging Market Mining EMMT, as well as China Minerals, CHIM, to sell off. India, INP, Brazil, EWZ, Turkey, TUR, Peru, EPU, Chile, ECH, Philippines, EPHE, Argentina, ARGT, Mexico, EWW, and Russia, RSX, traded lower.

Homebuilders, ITB, -1.5%, Mortgage REITS, REM, -1.9%, US Real Estate, IYR, -1.3%, Small Cap Real Estate, ROOF, -1,.2%, Industrial Office REITS, FNIO, -1.5%,  traded lower, on the higher Interest Rate on the US Ten Year Note, ^TNX, which closed at 2.75%.

The Bear Market that commenced October 23, 2013, is still in place as World Stock, VT, Nation Investment, EFA, and Global Financials, IXG, although trading higher, are still well below their late June 2013 through late October 2013 rally highs.

The leveraged speculative investment community, took the US Financial Institutions to a new rally high.  Regional Banks, KRE, 3.9%, Stock Brokers, IAI, 3.0%, The Too Big To Fail Banks, RWW, 2.6%, Invesment Bankers, KCE, 2.6%, Asset Managers, such as Blackrock, BLK, seen in this Finviz Screener, 2.6%,

AP reports US Stocks Rise After Jobs Report Shows A Surprising Surge In Hiring Last Month

Yet, Mike Mish Shedlock writes Establishment Survey Were it not for people dropping out of the labor force, the unemployment rate would be over 9%. In addition, there are 8,050,000 workers who are working part-time but want full-time work. Digging under the surface, much of the drop in the unemployment rate over the past two years is nothing but a statistical mirage coupled with a massive increase in part-time jobs starting in October 2012 as a result of Obamacare legislation. Of note, Zero Hedge reports Obamacare’s Biggest Failure So Far: Just 18% Of Uninsured Have Expressed An Interest In Enrolling.

And My Budget 360 writes Those Not In The Labor Force Surged By Nearly 1,000,000. A large portion of added jobs were in low wage sectors.

Sectors trading higher included

Solar Energy, TAN 4.5%

Pharmaceuticals, PJP 3.8, a new rally high

Biotechnology, IBB 3.2

Small Cap Pure Growth, RZG 2.5

Media, PBS 2.3

Internet Retail, FDN 1.9

Small Cap Pure Growth, RZV 1.8

Nasdaq Internet, PNQI 1.8

Spin Offs, CSD 1.8

Small Cap Industrial, PSCI 1.7

Transportation, XTN 1.7

Global Industrial Producers, FXR 1.5

Retail, XRT 1.4

Design Build, FLM 1.4

Aerospace, PPA 1.4

Consumer Services, IYC 1.4

Semiconductors, XSD 1.4

US Small Cap Stocks, IWM, 1.8%

The S&P 500, SPY, rose 1.4%, recovering all of yesterday’s losses.

Energy Production, XOP, +2.5%, and Small Cap Energy, PSCE, +2.7%.  And Gold Miners, GDX, +0.5%, on lower Gold, GLD, -1.5%. And Silver Miners, SIL, -0.3%, Silver Standard Resources Inc, SSRI +4.0%, on lower, Silver, SLV, -0.7%.

Prashant Gopal of Bloomberg reports Home Prices Climb In 88% Of US Cities. Most regions of the country are experiencing strong home-price appreciation off a low base,” Neil Dutta, head of US economics at Renaissance Macro Research LLC in New York, said yesterday in a telephone interview. “Cities with the biggest price appreciation are in places that had bigger busts.” Price gains are at unsustainable levels, with cities such as San Francisco and San Jose, California, approaching records, Fitch Ratings said today in a report. Much of coastal California is more than 20 percent overvalued. .

The areas with the biggest declines were all in Illinois, led by Peoria, where prices fell 13.9 percent from a year earlier. Following were Kankakee, with a 9.9 percent drop, and Rockford, with an 8.4 percent decrease. San Jose was the most expensive market in the third quarter, with a median home price of $805,000, the Realtors said. Following were San Francisco, at $705,000, and Honolulu, at $679,800. The most affordable areas were Toledo, Ohio, with a median price of $87,500; Rockford, at $88,900; and Decatur, Illinois, at $91,000.

A summary of this week’s financial market trading

World Stocks, VT -0.9%

Nation Investment, EFA -0.5

Global Financials, IXG +0.1

The chart of the S&P 500, $SPX, seen in Safehaven.com TheWaveTrading Weekly Technical Analysis Saturday November 9, 2013, manifested a 0.6% weekly rise to a new all time high at 1770, as the chart of the Finanical Sector, XLF, has already achieved its high at 21, and is now falling sharply lower; this suggests to me that the $SPX has finally achieved its all time high.

The Weekly Finviz Chart of the S&P 500, SPY, shows its rise beginning in August 2011, with an Elliott Wave 1 Up, on September, 12, 2011, at 116; and an Elliott Wave 2 Down on September 19, 2011, at 108; from which it began its Elliott Wave 3 Up rise to achieve its Elliott Wave 5 High on November 8, 2013, at 177.

George Krum writes in Safehaven The State of the Trend Saturday Nov 9, 2013.  QE3 kicked off in November ’12, and its first leg lasted until Bernanke decided to conduct a little experiment by mentioning taper in the Summer of ’13. The second leg of the QE3 rally began at the end of June ’13, when taper was dismissed as just crazy talk. So far the second leg of the rally is matching the trend and magnitude of the first leg pretty closely. There is another commonality, though. Now, just like in May ’13, the SPX is trading at the upper channel line defining the whole ’09 – ’13 rally. So the question at this juncture becomes whether the SPX will break above that channel, and continue on the trajectory started in November ’12, or will taper concerns, once again, derail the continuation of the rally and keep it confined within the broader channel lines.

The following large cap value and large cap growth stocks have been leading the S&P 500, SPY, higher.

Consumer Discretionary, DISH, DTV, AMZN, CMCSA, GOOG, TWC, TWX, PCLN

Transportation, DAL, LCC, FDX, KSU, ODFL

Food Retail, KR

Software, CRM,

Technology, MSI,

Life Insurance GNW,

Research Services, ELN

Communications Services, VZ

Credit Provider, MA

Real Estate, BX

Office Supplies Retailer, ODP

Design Build, FLR, JEC,

Chemicals, DD, PPG

Pharmaceuticals, BMY, PFE,

Consumer Staples, CL, KMB, ECL

Aerospace, BA, RTN, LMT, NOC,

Automobiles DORM,

Energy Service HAL,

Industrial Textiles, MHK,

Medical Devices, COV,

Semiconductors, TNX

Industrial Machinery Manufacturers, ROK, ITW,

Steel Manufacturer, MT

Research Services, ELN

Biotechnology, REGN

Iron Ore Miner, BHP

Communications Equipment Manufacturer, PHG

Energy Producer, APC

Business Services, ADS, SNX

US Stocks, VTI +0.4

Eurozone, EZU -0.7

Asia Excluding Japan, EPP -0.4

Nikkei, NKY -0.5

Emerging Markets, EEM  -3.1 for the week; and -3.5 for the month

Global Financials, IXG +0.1%

European Financials, EUFN -2.0

Chinese Financials, CHIX, -3.1

Emerging Market Financials, EMFN -5.0

Regional Banks, KRE +3.8

Stockbrokers, IAI, +2.6

Too Big To Fail Banks, RWW +1.8

Aggregate Credit, AGG -0.6%

This week nations trading lower included the following; note how they almost all are emerging market nations, EEM. Nation Investment, EFA, has turned lower on the periphery on debt deflation as the Interest Rate on the US Ten Year Note has induced debt deflation in Emerging Market Bonds, EMB, enabling competitive currency deflation in Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF, causing derisking out of nation banks

Brazil, EWZ, -5.2%, Banks BBD, BBDO, ITUB, BSBR, are sharply lower,

India, INP, -5.0, Banks, HDB, IBN, are lower

Mexico, EWW -4.2

Turkey, TUR -4.0

Peru, EPU -4.0, Bank BAP is sharply lower

Philippines, EPHE -3.2

South Africa, EWY, -2.8, Banks, WF, KB, SHG, are lower

Chile, ECH, -2.8, Banks BCH, and BCA are lower

Argentina, ARGT, -2.6, Banks BFR, BMA, GGAL, BBBA, are sharply lower.

South Africa, EZA -2.5

Thailand, THD, -2.3

China, YAO -2.3, Chinese Financials, CHIX, are lower

Russia, RSX, -2.4

This week sectors trading lower included

Social Media, SOCL -3.2%

Automobiles, CARZ -2.2 such as DLPH, LKQ, GM, and VC,

Resorts and Casinos, BJK -1.8

Nasdaq Internet, PNQI -1.5

Paper Producers, WOOD -1.5 such as LPX, WY, IP and NP

This week yield bearing sectors trading lower included; the real estate REITS, RWR, did not participate in the late June 2013 through October 2013 rally because they were heavily burdened by the Interest Rate on the US Ten Year Note; but Global Utilities, DBU, had no such restriction and enjoyed both the global debt trade and global currency carry trade investment.

Industrial Office REITS, FNIO -5.1%

Residential REITS, REZ -4.5;

Mortgage REITS, REM -4.0

Real Estate, IYR -3.9

Small Cap Real Estate, ROOF, -3.5

Global Utilities, DBU -2.1

Many of the Washington DC beltway elite, that is the Federal Government employees, lobbyists, consultants, and media commentators, live in Falls Church, VA, 22046.  Wikipedia relates that In 2011, Falls Church was named the richest county in the United States with median annual household income of $113,313.[49] While Fortune 500 companies Computer Sciences Corporation,[50] General Dynamics,[51] and Northrop Grumman[52] have headquarters addressed in Falls Church, they are physically in Fairfax County.

Only the affluent can afford to live in Falls Church as houses list for $699,0000, such as the 3 Bedroom and 2 Bath houses available on Redfin … 501 Great Falls St  … and  524 Greenwich St

Quick facts from the Census Bureau for Falls Church VA relates only 3.9% of persons live below the poverty level in Falls Church, VA, and 10.7% overall in Virginia.

Falls Church is Super Zip, a term coined by American Enterprise Institute scholar and author Charles Murray to describe the country’s most prosperous, highly educated demographic clusters.

The Connecticut Gold Coast is a bastion of financial wealth; the wealthiest include Darien, or Greenwich or New Canaan, depending on which statistic you use. The Higley 1000, reports on The Gold Coast of Long Island. Long Island has 53 Higley 1000 neighborhoods that I have divided into four distinct geographic clusters.

2) … The very nature of credit, currencies, money, and economic systems changed the week ending November 8, 2013, as the Eurozone emerged as a regional bloc having common credit foundation in the monetary policy and banking seigniorage of ECB Chairman Mario Draghi.

Through the word, will, and way of Mario Draghi, all those living in the EU now have a common credit experience. His assurance of Eurozone credit liquidity mandated an EU debt union.

Through Mario Draghi’s assurance of credit liqudity, he monetized all debt within the EU, and single handedly crafted a region, having not only a common currency experience, but also a common credit experience. Through the assurance of credit liquidity, he effected regioncraft and laid the foundation of trust for More Europe, that is the foundation for unified economic governance which will consist of nannycrats overseeing the factors of production, commerce and trade via statist public private partnerships.

All those living in the EU now have economic identity, experience and monetary life, in the seigniorage, that is the moneyness, of Mario Draghi.  He is rightly titled the confidence man, running as Robert Wenzel posts in Economic Policy Journal The Ship Of Confidence In The Eurozone.

Seigniorage no longer comes through the traditional credit marketplace. Now, through mandate, that is through diktat, Mario Draghi has become the EU’s Seignoir, that is the top dog banker who mints money, and takes a cut.  He single handedly created diktat money replacing traditional fiat money, terminating the age of liberalism and introducing the age of authoritarianism in Europe.

Under liberalism, Mario Draghi, provided ECB monetary policies supporting investment choice via schemes of credit liquidity, specifically LTRO 1, LTRO 2, and OMT. Joseph Salerno  of Ludwig Von Mises Institute reports How The Fed Learned To Stop Worrying And Love Easy Money. Now under authoritarianism, the ECB Chairman provides monetary policies of diktat supporting a banking supervision union as well as a debt union.

Just as Milton Friedman was the father of the Free To Choose fiat money system in 1971; Mario Draghi is the father of the diktat money system in 2013. An inquiring mind asks, could Mario Draghi be the great high monetary priest presented in Revelation 13:11-18.

I believe that Money Market Funds, MMF, being bond based cannot stand the strain of rising interest rates and will break the buck, meaning that they will not retain their constant one dollar value, and investors will panic and attempt to run for the doors, which may be closed through capital controls, resulting in great financial loss. Furthermore, Alasdair Macleod writes in Gold Money. There’s A Liquidity Crunch Developing.  I agree and relate that a Financial Apocalypse, that is a global credit bust and financial system breakdown, is imminent; and is foretold by John The Revelator in Revelation 13:3-4; it’s origin is in the credit excess of the world central banks monetary policies of credit easing and Global ZIRP.

Bible prophecy of Revelation 5-10, reveals that there is waiting in Europe’s wings, the Sovereign, who will rise to political power to complement the Seignior’s monetary power, through his adept knowledge of regional framework agreements, which will be created by national leaders who meet in summits and workgroups to renounce national sovereignty and announce regional pooled sovereignty for regional security, stability and sustainability.

All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The periphery nations, that is the PIIGS, will exist as hollow moons revolving around planet Belgium and planet Germany. The Portugese, Irish, Italians, Greeks and Spaniards, can be neither Belgians nor Germans, yet all will be one, living in a gulag of austerity and debt servitude existing under the fiscal sovereignty of regional technocrats. Spiegel reports World From Berlin: A Last Warning Shot For Southern Europe.

3) … In the age of authoritarianism, dikat and the physical possession of gold bullion will be the two forms of sovereign wealth.

On Monday, October 14, 2013, the Gold ETF, GLD, entered an Elliott Wave 3 of 3 Up, at a price of 122.83; these are the most expansive of all economic waves; they create the bulk of the wealth, as they increase, going up to peak at an Elliott Wave 5 High. The beginning of the great rise in the price of Spot Gold, that is $GOLD, started at $1260, with first price objective of 1,570, seen in Brian Bloom of BeyondNeanderthal chart article Extraordinary Dangerous Equity Markets.  Of note, Jack Chan in October 26, 2013, Safehaven article This Past Week in Gold, gave his Buy Signal to the Gold ETF. And then in November 9, 2013, Safehaven article This Past Week In Gold, gave his Sell Signal.

On Monday, October 14, 2013, Jason Cozen wrote Gold Price Opens Up The Week Higher. You can see that sell-order hit the tape just after 13:00, taking the price as low as $1260. However today Gold has taken back all those losses.

The chart of Gold, $GOLD, showed closed lower due to the surge in the Too Big To Fail Banks, at 1,290 on November 8, 2013, with strong support at its October 14, 2013 breakout price of 1,260.

4) … Strange ideologies arise at the end of one age and the beginning of another, as Mike Mish Shedlock writes Prime Minister Abe Calls For Wage Price Spiral To Create “Virtuous Circle”,  and as he writes Czech Republic Enters Currency Debasement Club.

5) … News events reflect the fulfillment of bible prophecy as well as two soon coming middle east conflagrations.

Duane and Shelly Muir of Sign Posts Of The Times relate two end time prophecy signs. First,  the division of the Temple Mount Groundbreaking Law to Facilitate Jewish Prayer on Temple Mount. and second, Staking A Jewish Claim To The Temple Mount.

News events are lining up for a Isaiah 17 War in Syria and a Ezekiel 38 war in the Middle East as . WND reports Israel Must Make Fateful Decision On Iran Strike, Bolton Says  … and Duane and Shelly Muir of Sign Posts Of The Times report  Geneva fallout: Iran becomes a nuclear power, followed by Saudis. Israel loses trust in Obama  … and Jason Ditz of Antiwar reports Cleared of Corruption Charges, New FM Lieberman Eyes Role of PM and Jason Ditz continues French Sabotaged Iran Pact for Arms Deal and Times of Israel reports Israel Will Attack if You Sign the Deal, French MP Told Fabius and Iran Nuclear Deal in Danger of Unravelling and Jason Ditz of reports Netanyahu Vows Action Against Iran Diplomacy and continues Major Split Between US and Israel on Iran and Reuters reports Israel’s Netanyahu Pleased No Iran Deal Reached and CS Monitor reports Failure to Reach Iran Nuclear Deal May Fortify Hardline Opponent and The Guardian reports Iranians Angry and Bewildered After French Torpedo Nuclear Entente and Haaretz reports Netanyahu Urges Jews: Rally Behind Me Against Iran Deal.

Elaine Meinel Supkis writes on Zionist Media Power US/Saudi/Israeli attacks using puppets like Saddam have been relentless for decades and won’t stop now, it is amping up.  When Congress stabbed the negotiations in the back in a blatant power play by AIPAC, no US media organization analyzed this or talked about AIPAC which flies under the radar nearly totally thanks to the ‘invisibility cloak’ given to them by the US media owners many of whom are Jewish Zionists.

The ‘con game’ is the business of hiding who is pulling the strings here: Netanyahu and his gang operating via a few dozen very rich Jews and the entire Saudi royal family. This toxic alliance of the super rich and powerful means the people of Iran, the core of the Shi’ite power base, will be strangled as much as possible forever until they collapse into chaos like so many other rivals of Saudi/Israeli power.

Back to France, the Jews and Saudis decided France should scuttle the talks in Paris because the Jewish power base there isn’t as notable as in the US.  So it could fly under the radar which is why the Iranians were shocked when hit by France out of the blue at midnight.  The previous President of France was Nicolas Sarkozy, Wikipedia relates, whose father was Jewish but he converted to Catholic.  What Francois Hollande Means for French Jews, Jewish & Israel News Algemeiner.com relates.

The very first person killed by the Saudis on 9/11 was a top Mossad plane hijacking agent who just so happened to sit right next to the hijackers and whose throat was suddenly slit by the attackers that day. To this day, the ‘coincidence’ of all this is carefully hidden from view with the great assistance of the DARPA push to delude everyone into the ‘bombs in the buildings’ scam.

I have pointed out this ‘coincidence’ since November of 2001.  And it is steadily ignored for obvious reasons.  Even the ‘dancing Israelis’ in New Jersey get more attention from ‘truthers’ than this very salient event.  Blindness to the dark side of espionage is typical as we see with the Kennedy assassination, successfully derailed by the fake ‘second assassin’ tale.  Untangling the many threads that run in the dark is very difficult especially if one is easily distracted by spectacular tales of derring do that are unlikely or even silly.

And Mossad, the CIA and others know this very well which is why they participate in spreading lies.  They need the cover of these lies especially if the truth begins to emerge from the dark murk.  And I lost a LOT of readers over the years because I refuse to fall for these stories.

The Iranians thought they were having real negotiations not believing that the forces aimed at destroying them are going to give up.  Even as the entire planet knows that Israel  has secret bombs and chemical weapons and that the Saudis have or want the same and that the US has used both chemical weapons and nuclear bombs on civilians in the past, most recently chemical weapons in Iraq, the farce that Iran is the problem will continue so long as the US/Saudi/Israeli empire rules the Middle East with an iron fist.

I relate accompanying the rise of the Beast Regime as foretold in Revelation 13:1-4, which is replacing the Milton Friedman Free to Choose Banker Regime, that commenced beginning with the Greek Bailout I in May 2010, and intensified with the rise of the Interest Rate on The US Ten Year Note, ^TNX, to 2.1% in May 2013, that there will soon be a war in Syria as foretold in Isaiah, 17, resulting in the total and absolute destruction of Damascus, and a third world war, foretold in Ezekiel 38.

Illuminati Prophet Albert Pike had Luciferian insight that there would be three world wars. D. Robert Singer writes the article The Modern State of Israel: Providence, Miracle, or What Really Happened.  In 1871 Albert Pike founder of one of the Rothschild secret societies, Order of Perfectibilists, received a vision, which he described in a letter dated August 15, 1871 that graphically outlined plans for three world wars that were seen as necessary to bring about the One World Order.

ThreeWorldWars.com writes The Third World War must be fomented by taking advantage of the differences caused by the “agentur” of the “Illuminati” between the political Zionists and the leaders of Islamic World. The war must be conducted in such a way that Islam (the Moslem Arabic World) and political Zionism (the State of Israel) mutually destroy each other. Meanwhile the other nations, once more divided on this issue will be constrained to fight to the point of complete physical, moral, spiritual and economical exhaustion…We shall unleash the Nihilists and the atheists, and we shall provoke a formidable social cataclysm … Then everywhere, the citizens, obliged to defend themselves against the world minority of revolutionaries, will exterminate those destroyers of civilization, and the multitude, disillusioned with Christianity, whose deistic spirits will from that moment be without compass or direction, anxious for an ideal, but without knowing where to render its adoration, will receive the true light through the universal manifestation of the pure doctrine of Lucifer, brought finally out in the public view. [1] [Cmdr. William Guy Carr: Quoted in Satan: Prince of This World, Albert Pike received a vision, which he described in a letter that he wrote to Mazzini, dated August 15, 1871.

Bible Prophecy foretells there will soon be a war in Syria as foretold in Isaiah, 17, resulting in the total and absolute destruction of Damascus, and that following this there will be a third world war as foretold in Ezekiel 38, which will be the basis for the rise of power of Europe’s Sovereign, Revelation 13:5-10, and Europe’s Seignior, Revelation 13:11-18,  as they establish their joint global regime in Jerusalem, through promotion of a middle east peace plan, Daniel 9:25.

World Central Banks Roll Out New Policies And Tools To Establish The Antifragile Financial System … These Integrate Banks Into The Government … Banks Once Integrated Into The Government Will Serve As The Foundation For Regional Governance Replacing Nation State Democratic Rule

November 8, 2013

Financial market report for he week ending Friday November 1, 2013

1) … A collateral crisis will escalate into a global credit crisis and worldwide financial system breakdown which will prompt nannycrats to establish regional governance … Beginning first with a banking union, fiscal union, and deep economic union being established in the eurozone.

Shaun Richards communicates that the UK Central Bank plans to provide limitless credit. The UK Is Open For More Banking Business Says Mark Carney  Yesterday the vast majority of those who were considering the UK economy would have been speculating as to how fast the UK economy was growing and what speed would be announced today. However one person instead woke up and decided that the UK banking sector needed more support! As it was Mark Carney the Governor of the Bank of England who was echoing the Brian Clough claim to be in a class of one I intend to put his new plans under the microscope.

What did Mark Carney say? At the occasion of the 125th anniversary of the Financial Times the opening sound hopeful. “Fairness demands the end of a system that privatises gains but socialises losses. And simple economics dictates that the UK state cannot stand behind a banking system that is already many times the size of the economy.”

But as we examine the revised Sterling Monetary Framework, SMF, which was announced, we see that in fact it is the intention to do exactly the reverse. For example see this:

“Five simple words describe our approach: we are open for business. We are offering money and collateral for longer terms. The range of assets we will accept in exchange will be wider, extending to raw loans and, in fact, any asset of which we are capable of assessing the risks. And using our facilities will be cheaper. In some cases the fees are being more than halved. Banks can be confident that, when they want to use our facilities, they will be allowed to access them.”

Let me give you the crucial words here ….. longer ….. cheaper ….. any asset ….. banks

How did the credit crunch begin? The credit crunch began through the misvaluation of Mortgage Backed Securities in the United States as AAA credit.

Now can anyone see the danger in the Bank of England doing this?

I relate that I see plenty of risk in the revised Sterling Monetary Framework, SMF, announced by BoE Chairman Mark Carney.

The credit crunch which came through the misvaluation of Mortgage Backed Securities as AAA credit, caused the Financial Crisis of 2007–08; this debacle was resolved, or perhaps better said carried to a whole new level of credit overvaluation, as investors came to trust in an ever expanding set of liberalized world central banks’ monetary policies for the purpose not only of global financial system recovery, but also for leverage speculative investing via a pursuit of yield as is seen in Ultra Junk Bonds, UJB, Junk Bonds, JNK, and the short term bond, FLOT, trading higher in value, as well as in the EUR/JPY and the AUD/JPY, trading higher in value. The reinvigoration of credit after the 2008 financial collapse, formerly began when the US Fed took in distressed investments, such as those traded by the Fidelity Mutual Fund FAGIX, with the start of QE1, which stimulated the value of Excess Reserves to skyrocket, and which has driven up risk assets such as Solar Energy, TAN, Social Media,  SOCL, and Small Cap Pure Value, RZV, to their peak value.

On  the week ending Friday, October 25, 2013, World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower from their rally highs, thus pivoting the world from the economic paradigm of liberalism, based upon democratic nation states, and into the economic paradigm of authoritarianism, based upon regional governance and totalitarian collectivism, which came upon the European Parliament and ECB announcement of banking oversight of European Banks. This epic event, that is the beginning of the supervision of 130 European Financial Institutions, EUFN, literally terminated the Milton Friedman Free To Choose banker regime, and birthed the beast regime of regional governance and totalitarian collectivism foretold in bible prophecy of Revelation 13:1-4, and which is synonymous with the Ten Toed Kingdom, seen in Daniel’s Statue of Empires prophecy of Daniel 2:25-45.

Providing limitless credit to UK, EWU, banks, such as LYG, RBS, BCS, and HBC, at the time of a financial market turn lower, is not going to provide economic stimulus; limitless credit is only going to help the banks and integrate the banks with government.

Documentation that on Friday, October 23, 2013, the financial markets, pivoted from risk-on to risk-off, is seen in the Market Off ETN, OFF, trading higher. Very soon, there is coming a global credit bust and financial system breakdown, foretold in bible prophecy of Revelation 13:3-4; this is termed by some as the Financial Apocalypse.

Nannycrats will act to tightly integrate banks of all types, everywhere into government; these will be know as the government banks or gov banks for short, and in so doing there will be a great tidying up of the banks Excess Reserves at the US Fed; those funds will not ever be released into the economy.  The UK’s banks LYG, RBS, BCS, and HBC, will be integrated into the UK Government. And the US Banks, JPM, BAC, WFC, GS, MS, and C, will be integrated into the US Federal Reserve.

Much like the UK’s central bank in providing limitless credit, Mike Mish Shedlock reports New Tools! More Pure Bank Profit!

The Fed is pumping money into the economy at a rate of $85 billion a month. Banks cannot use the money and are not lending it. The money piles up as excess reserves and the Fed (taxpayers) pays interest on excess reserves.

Nonetheless, the Fed has a clever idea! It proposes a new tool to pay banks even more interest on money banks don’t lend and cannot use (as an alternative to shrinking money supply).

New Tools! With little fanfare or analysis by mainstream media as to what is really happening, Bloomberg reports Fed Gets Bigger in Markets as QE Prompts New Tools; Enter The Fixed Rate Full Allotment Reverse Repo Facility. The Federal Reserve is getting more involved in debt markets as it tries to compensate for the impact of its almost $4 trillion balance sheet on short-term interest rates.

Policy makers are testing a new tool intended to improve their control of near-term borrowing costs. The facility would allow banks, broker-dealers, money-market funds and some government-sponsored enterprises to lend the Fed unlimited amounts of cash overnight at a fixed rate in exchange for borrowing Treasuries in so-called reverse repo transactions.

The facility is the latest innovation from a central bank that has participated on an unprecedented scale in U.S. debt markets since the credit crisis began in 2007. It’s designed to help policy makers, buying $85 billion of bonds a month, siphon off excess cash in the banking system when they begin to tighten policy. Three rounds of so-called quantitative easing have enlarged the Fed’s balance sheet to almost $3.8 trillion.

The new tool, called the fixed-rate, full-allotment overnight reverse repo facility, also is aimed at helping Fed officials address distortions in the market caused by their securities purchases.

“It will serve to put whatever floor they want under rates,” said Lou Crandall, chief economist at Wrightson ICAP LLC in Jersey City, New Jersey. “You’re providing pretty broad-based access to Fed balances as an investment option.”

While the Fed gained the ability in 2008 to pay interest on cash it holds in the form of excess bank reserves, that tool has limited effect in anchoring borrowing costs because only banks could park their funds at the central bank, Crandall said. By now offering to pay a fixed rate to a wider range of counterparties for their cash overnight, policy makers should be able to improve their control of near-term rates, he said.

“By offering a new, essentially risk-free investment, one would expect that anyone with access to such a facility would generally be unwilling to lend instead to someone else” at a lower rate, New York Fed President William C. Dudley said in a speech in New York Sept. 23.

Where Does It End? From the Bloomberg article, one person sees things correctly. With “the amount of bonds that have been piling up on the Fed’s System Open Market Account” there “has been a collateral shortage,” said Jim Bianco, president of Bianco Research LLC in Chicago. “What worries me about the Fed is that in reacting to the fact that their actions have created an unintended consequence in a free market, instead of saying ‘Oh, maybe we ought to re-think these actions,’ their answer is ‘No, we’ll go manipulate that problem now.’ Where does this end?”

I reply that it begins to end with the a collateral shortage, goes on to a massive delveraging out of fiat assets, beginning with risk assets at first, then proceeding to a global selloff of currencies, and going on to interest rates rising on yield investments, which will likely break the buck, that is the constant one-dollar value of money market funds, and result in the failure of credit and trust in the world central banks. Rest assured, out of chaos, will come order. The fiat money system will literally disintegrate, and the diktat money system be installed by leaders who renounce national sovereignty and announce regional pooled sovereignty.

In authoritarianism’s paradigm, nannycrats, working through regional framework agreements, will establish regionalism, where through regional integration, specifically through regional banking integration, regional fiscal integration, and regional economic integration, they will establish regional stability, regional security, and regional sustainability. In this manner, liberalism’s paradigm and its economic systems of capitalism, European socialism, and Greek Socialism, will come to an end.

AP reports US Proposes Liquidity Requirements Liquidity is the ability to access cash quickly. Under the proposed US Federal Reserve Liquidity Coverage Ratio, LCR, the largest banks, those with more than $250 billion in assets, would be required to hold enough cash and securities to fund their operations for 30 days during a time of market stress. Smaller banks, those with more than $50 billion and less than $250 billion, would have to keep enough to cover 21 days.

Fed officials said the rules are stronger than new international standards for banks. The public has 90 days to comment on them. After that, they would be phased in starting in January 2015.

“Liquidity is essential to a bank’s viability and central to the smooth functioning of the financial system,” Fed Chairman Ben Bernanke said. He said the new regime “would foster a more resilient and safer financial system in conjunction with other reforms.”

The requirements were mandated by Congress after the financial crisis. They are part of new regulations that are intended to prevent another collapse severe enough to require taxpayer-funded bailouts and threaten the broader financial system.

It’s apparent to me that a liquidity crisis is imminent, and as such investors should begin to dollar cost average an investment in gold. Of note, Jack Chan writing in Safehaven chart article This Past Week in Gold, gave his buy signal to the Gold ETF, GLD on October 23, 2013.

The trade lower in World Stocks, VT, Semiconductors, XSD, Nation Investment, EFA, Global Financials, IXG, Copper Miners, COPX, established Wednesday, October 23, 2013, as an epic and pivotal day in economic and political history, as fears arose that the greatly interventionist monetary policies of the world central banks have turned “money good” investment bad, and have thus turned Major World Currencies, DBV, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, lower in value. The fiat money system died, and the diktat money system came into being with the  turning the financial markets from bull to bear.

The Great Bear Market of 2013, commenced on October 23, 2013, as confirmed by the Market Off ETN, OFF, rising in value.

In a bull market one buys into dips; but in a bear market one sells into pips.

Corporations should set up margin accounts at the largest of stock brokerages and commence a short  selling strategy  The following 40 high beta ETFs/ETNs, IBB, PNQI, FDN, TAN, BJK, RZV, FPX, IST, FLM, CSD, PBS, IAI, PSCI, XTN, FXR, CARZ, XRT, EUFN, PJP, SMH, WOOD, PSP, RWW, PPA, SLX, RXI, ENZL, EIRL, GREK, EWP, YAO, TUR, ARGT, EPHE, SCIN, THD, EGPT, EWZS, EWY, UJB, seen in this Finviz Screener, might be comprise part of a short selling strategy.

The 10 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, are what I term the market vane ETFs,  and could serve as the basis for a margin account, as these will increase in value with rapidly growing financial instability, as carry trades, such as the EUR/JPY and the AUD/JPY start to aggressively unwind, and as credit becomes more expensive, as will be seen in the Short Term Bond ETF, FLOT, trading lower in value.

The Irish Times reports Troika Seeking Tough Post Bailout Terms In Ireland In Exchange For Precautionary Loan.  I comment that strong austerity measures already enforced by the Troika on Ireland have resulted in internal devaluation and have produced competitive nation investment rewards for Ireland, traded by the ETF, EIRL, as well as for strong competitive financial institution investment rewards for its bank, IRE.  Said another way Ireland, EIRL, and its bank, IRE, have been the investor’s currency carry trade and global credit debt trade darlings, greatly rewarding those invested in the nation and its bank, and serve as the premier example of  liberalism as being the age of investment choice. Inasmuch a the world has pivoted from liberalism into authoritarianism, Ireland’s financing will now be the leading example of diktat money which is replacing fiat money.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as those reported by the such as The Irish Times report Troika Seeking Tough Post Bailout Terms In Ireland In Exchange For Precautionary Loan, heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal policy councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, for Eurozone wide fiscal governance, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke all kinds of mandates for regional security, stability, and sustainability.

These leaders, that is nannycrats include, Jeroen Dijsselbloem, President of the Eurogroup meeting of euro-zone finance ministers,  Olli Rehn, Vice President of the European Commission responsible for economic and monetary affairs, Michel Barnier, EU Commissioner responsible for internal market and services, Klaus Regling, Managing Director of the European Stability Mechanism,  Werner Hoyer, President of the European Investment Bank, Jorg Asmussen, Member of Executive Board of the ECB, Viviane Reding, European Commissioner for Justice, Fundamental Rights and Citizenship.

And diktat money is seen in  countries with high current account deficit, such as in India, where import duties have been declared on the import of gold, and the import of gold coins banned; and such as in Indonesia, where curbs are placed on the import of luxury cars and some branded goods.

Liberalism was an era characterized by clientelism, as MyBudget360 reports Means-Tested Recovery.

Over 108,000,000 Americans received means-tested benefits in latest report from Census Bureau, more than are currently employed full-time. Over 108,000,000 Americans received means-tested benefits in latest report from Census Bureau, more than are currently employed full-time.

2) … COGWriter presents sound bible doctrine regarding the soon coming war in Syria, that is the Isaiah 17 War.

COGwriter relates I have been warning for some time that a regional war involving Iran, Israel, the USA, and/or Syria seems likely. And Israel and Iran keep taking steps which may help it get ready for such a war (Isaiah 22:6-13).

Since Iran, however, is NOT really south of Jerusalem (though it may support such a king per certain interpretations of the peoples listed in Ezekiel 30:1-9), it will not be the final King of the South of Bible prophecy (cf. Daniel 11:40-43). Because of that, I have tended to believe that Iran may somehow get “neutralized” before this final king rises up. A serious attack by the USA and/or Israel may neutralize Iran and much of its influence. It also may take a regional war for the seven-year confirmation of the deal in Daniel 9:27 to come about.

My reading and re-reading of Bible prophecy simply does not show that Iran will be a major player in Daniel 11:21-44 nor the deal of Psalm 83:4-8 (Arabs, Turks, and Europeans are); though Ezekiel 30:1-9 possibly implicates Iran as a supporter of an end-time confederation involving Egypt.

“Neutralizing” Iran would allow most of the other Islamic states (like Saudi Arabia and Egypt) to continue to exist (Syria might not do well per Isaiah 17:1) and allow for the rising of the prophesied King of the South to rise up (revolution in Iran, is also another possibility, for its “neutralization”).

Leaders in the USA and Israel have suggested that they may intervene and attack Iran. But if the USA and Israel do hit Iran, Iran would likely not fare well, but that does not mean that Israel and/or the USA would not suffer. Israel seems prophesied to possibly be hit by Iran per Isaiah 22:6-13.

The USA and others are vulnerable to being hurt by EMP weapons (which Iran may have), chemical weapons (which at least Syria has), dirty bombs (which Iran already can make), terrorism (which Iran sometimes sponsors), and biological weapons (which both Iran and Syria likely have). Although the USA (nor Europe) will NOT to eliminated by this type of conflict, the USA certainly could be partially or even greatly weakened by these type of attacks.

COGwriter also relates Notice that the late Herbert W. Armstrong wrote that the king of the North is involved in the final crisis in the close of this age and involves “the beast and the false prophet” in Daniel chapter 11:

Verse 40  “And at the time of the end shall the king of the south push at him ….”…There is yet another leader to arise in Europe! Notice what will next happen!

Verse 41 “He shall enter also into the glorious land … ” — the Holy Land. This is yet to be fulfilled.

When the coming revival of the Roman Empire takes the Holy Land, then the nations will be plunged into the initial phase of the great, last and final crisis at the close of this age!…

Verse 45 the coming Roman Empire shall establish its palace, as capital of the revived Roman Empire, and eventually its religious headquarters, at Jerusalem! Zechariah 14:2 says the city shall be taken! “Yet he shall come to his end, and none shall help him”! This language signifies the end of the “beast” and the “false prophet” at the hand of God! You will find this end described in Revelation 19:19-20 and Zechariah 14:12. (Armstrong HW. The Middle East in Prophecy. Worldwide Church of God, 1972 edition).

While the current in Syria will change.  More trouble is coming to Damascus as it will be destroyed (Isaiah 17:1). An Islamic confederation that will include the land of Syria is coming (Daniel 11:40-43; Ezekiel 30:1-8; Psalm 83:4-8) is coming. There will be other troubles for Israel.

3)  … An inquiring mind asks, Is it now just a matter of weeks before war breaks out in the Middle East?

Prophecy Update asks Rumors Of War: A Matter Of Weeks? Once again, we are seeing more ominous warnings coming from Israel, as the concern over Iran’s nuclear capabilities moves to the critical stage. It appears that Israel firmly believes that Iran is only a matter of being “weeks” away from the point of no return in having the necessary materials to assemble a nuclear weapon.

If this is true, we may see the triggering point in the cascade of events in the Middle East which could very well lead directly into the prophecies involving Isaiah 17 and Ezekiel 38-39:

USA Today posts Israel Issues Warning. A new report that says Iran may need as little as a month to produce enough uranium for a nuclear bomb is further evidence for why Israel will take military action before that happens, an Israeli defense official said Friday.

“We have made it crystal clear – in all possible forums, that Israel will not stand by and watch Iran develop weaponry that will put us, the entire Middle East and eventually the world, under an Iranian umbrella of terror,” Danny Danon, Israel’s deputy defense minister told USA TODAY.

“This speedy enrichment capability will make timely detection and effective response to an Iranian nuclear breakout increasingly difficult,” he said.

“Breakout” refers to the time needed to convert low-enriched uranium to weapons-grade uranium. On Thursday, the Institute for Science and International Security issued a report stating that Iran could reach that breakout in as little as one month based in part on Iran’s own revelations about its nuclear program.

The report comes as the White House is trying to persuade Congress not to go ahead with a bill to stiffen sanctions on Iran to force it to open up its program to inspection. The White House on Thursday invited senate staffers to a meeting on Iran strategy for negotiations that are to resume next month with Iran, it said.

4)  … Many currently enrolled in health care plans are receiving cancellation letters forcing them to buy more costly policies on state health insurance exchanges that are non operational or go without health insurance; this chaos is sending the stock value of Health Care Providers lower at a time when  other stock market sectors have been rising; and is establishing Obamacare as liberalism’s peak crony capitalism and peak democracy experience.

Kate Randall, reports Obamacare prompts insurers to drop hundreds of thousands from coverage.  Private insurers are sending hundreds of thousands of cancellation letters to people who presently buy their own coverage and forcing others to buy more costly policies. In recent days, it has come to light that the Affordable Care Act, commonly known as Obamacare, is provoking another health insurance crisis. Private insurers are sending hundreds of thousands of cancellation letters to people who presently buy their own coverage and substantially raising the cost of premiums for new policies. Many of these people are being forced onto the federal insurance exchange at HealthCare.gov.

Under the legislation signed into law in 2010, individuals and families that are not insured through their employer or through a government program such as Medicaid or Medicare must obtain insurance or pay a penalty. Beginning January 1, 2014, the ACA also requires policies sold on the so-called “individual market” after March 2010 to cover ten “essential” benefits, such as preventive care, prescription drugs, mental health treatment, and maternity care.

The main reason insurers are canceling their coverage is because the plans do not meet these ACA standards. By forcing some of these more healthy self-insured people onto the insurance exchanges set up under Obamacare, the government and private insurers hope that the lower cost of covering them will offset the cost of providing insurance to those with preexisting conditions and other less-healthy individuals.

The Obama administration’s oft-repeated pledge that “if you like your plan, you can keep it,” is being exposed as a fraud for hundreds of thousands of the estimated 14 million Americans who purchase their own insurance because they don’t receive it through their job. These people are finding out that new coverage through their present insurer will be much more expensive, and that in most cases insurance offered through the insurance exchanges set up under Obamacare will either have more costly premiums or will include large out-of-pocket costs, while limiting choices. Many of these people will not be eligible for subsidies through Obamacare.

Los Angeles real estate agent Deborah Cavallaro received a cancellation notice from Anthem Blue Cross this month, the Los Angeles Times reports. Her insurer told her that a comparable Bronze plan on the federal insurance exchange would cost $484 a month, or about 65 percent more than her present policy. Cavallaro says she will most likely go uninsured because she cannot afford the increase.

The main driver of the policy cancellations and rate increases is that while Obamacare requires that individual insurers offer a certain level of coverage, and that customers cannot be discriminated against due to preexisting medical conditions, there is no meaningful oversight on what the private insurers can charge for their policies.

While the government-run Medicare program for the elderly and disabled and the Medicaid program for the poor—the latter jointly administered by the federal government and the states—involved a certain encroachment on the private insurance market, the Affordable Care Act is the opposite. From the beginning, it has been entirely tailored to the interests of the private insurers and aimed at slashing costs for the government and corporations while reducing care for the majority of Americans.

The price hikes by insurers in the individual insurance market, as well as the “sticker shock” many are experiencing on HealthCare.gov if they are actually able to log in, are the inevitable result of a program that proceeds from the interests of the giant insurers, pharmaceuticals and health care chains. Insurance companies will respond to any infringement on their profits connected to provisions of the ACA by either dumping customers or raising their premiums.

I relate that this chaos is sending the value of Health Care Providers, IHF, lower while other stock markets sectors are rising. Thus Obamacare is a no win scenario for those invested in health care providers such as  WLP, UNH, ESRX, WLP, AET, CI, as is seen in their combined ongoing Yahoo Finance Chart. UnitedHealth Group, UNH, has lost the greatest market value in the last month. I comment that with enrollment declining, Health Insurers will not be a good investment value and will start falling lower in value.

Barons reports UNH Sees Medicare Payment Shortfall  In a press release on the company’s website, Chief Executive Officer and President Stephen Hemsley said: We expect our 2014 earnings outlook to be impacted by overall Medicare Advantage funding levels as well as the effects of the non-deductible insurer fee on Medicare as we indicated in our last earnings call. The significant and continued level of underfunding can not be fully offset in 2014 from the performance we expect from the balance of our health benefits markets. And we see limited potential for significant further improvement in overall medical cost trends, recognizing how well medical costs have been controlled over 2012 and 2013. United’s disappointment has helped drag down other health insurers.

Bloomberg reports Google, Oracle Workers Enlisted for Obamacare Tech Surge Bloomberg Google, Red Hat, Oracle and other companies are contributing dozens of computer engineers and programmers to help the Obama administration fix the U.S. health-insurance exchange website.

The introduction of Obamacare in the US is an example of diktat money that is destroying fiat money: individuals are no longer free to choose a plan, rather they must go through an exchange, and corporations must pay a flat fee per employee to help fund those who come onboard with preexisting health conditions; thus they are participating in debt servitude, having identity and experience in austerity. Bloomberg reports Insurers Oppose Obamacare Extension as Danger to Profits.

The WSJ reports The Obamacare Awakening. Americans are losing their coverage by political design. The law is systematically dismantling the individual insurance market, as its architects intended from the start. The millions of Americans who are receiving termination notices because their current coverage does not conform to Health and Human Services Department rules may not realize this is by design. Maybe they trusted President Obama’s repeated falsehood that people who liked their health plans could keep them. But Americans should understand that this month’s mass cancellation wave has been the President’s goal since 2008. Liberals believe they must destroy the market in order to save it.

We are witnessing crony capitalism, and peak democracy, which is actually the failure of democracy as

people are not free to choose. Mike Mish Shedlock writes As Many As 16 million Americans Will Lose Their Existing Coverage That They Want To Keep. And he writes Five Reasons Obamacare Legislation Failed; The Worst Legislation Money Can Buy; Putting the Patient in the Driver’s Seat.

Jesus Christ is bringing forth the beast regime of Revelation 13:1-4, to rise up out of the chaos, that comes from the experience of clientelism, and failures of democracy, as well as the eclipse of personal responsibility found in Obamacare, to occupy in totalitarian rule in every of mankind’s seven institutions, these being 1) Education, 2) Finance, banking, commerce, investment and trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science & Technology.  Under the beast regime, government mandate, not investment choice, pervades and integrates every human experience. The seigniorage of diktat, that is the moneyness of diktat, establishes economic life under authoritarianism.

Under liberalism, one exercised choice; but under authoritarianism, one looks to the mandates of nannycrats and their rule for life experience.

Under liberalism, the seigniorage of choice ruled everything and provided value in human endeavors; but under authoritarianism, the seigniorage of diktat governs all things and gives economic value to human activities.

Under liberalism, the Milton Friedman, free to choose, banker regime provided fiat money for economic transactions; but under authoritarianism, the nannycrat, diktat, beast regime provides diktat  money for economic transactions.

5) … An inquiring mind asks, Are superstorms the new normal?

Zero Hedge posts Superstorm Pounds UK. Almost exactly one year after Superstorm Sandy crushed the eastern seaboard of the USA, and 26 years after the last devastating storm to hit the south of England, the so-called St.Jude’s Day storm, among the worst in recent memory, is battering the UK (and some of Europe) with winds up to 99 mph. So far there are 2 reported deaths, 220,000 homes without power, all South West trains halted, and over 130 flights cancelled at Heathrow airport. Two nuclear plants have been shutdown and hundreds of trees have fallen blocking roads and rail links across as the storm begins to shift into mainland Europe.

6) … The world central banks roll out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, it is also known as the diktat money system, where banks are integrated into the government, and serve as the bedrock for regional governance which replaces democratic nation state rule.

On Monday, October 28, 2013, liberalism’s risk free credit, that is short term bonds, and major currency carry trades, that is the EUR/JPY and AUD/JPY, manifested bearishly, as the European Financials, EUFN, traded lower, taking World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, lower.

World Stocks, VT, traded lower. Sectors trading lower included, Solar Energy, TAN, Spin Offs, CSD, Social Media, SOCL, and Nasdaq Internet, PNQI.  Yield bearing sectors trading lower included, Energy Partnerships, AMJ, and Shipping, SEA. Nicholas Financial, NICK, a subprime automobile lender, and a Russell 2000 Value leader, traded lower.  The chart of Small Cap Energy, PSCE, manifested a terrific bearish lollipop candlestick at the top of an ascending wedge, communicating an end of its long performing rally.

Nation Investment, EFA, traded lower; countries trading lower included Egypt, EGPT, Vietnam, VNM, India, INP, SCIN, Greece, GREK, Spain, EWP, and Ireland, EIRL.

Financial Investments, IXG, traded lower; the National Bank of Greece, NBG, Banco Santander, SAN, and Ireland’s Bank, IRE, led the European Financials, EUFN, as well as Greece, GREK, Spain, EWP, and Ireland, EIRL, lower.

Cathy Barnato of CNBC reports Bad Loans At European Banks Hit $1.7 Trillion. The figures raise questions about the market impact, should Europe’s new stress tests force banks to offload distressed assets.

Last Wednesday, the ECB unveiled tough criteria for its stress tests of euro zone banks, designed to determine their ability to withstand adverse economic conditions or “stress”. The region’s 128 “systemically important” banks will undergo an assessment of their risky assets, the quality of their balance sheets and the amount of capital they hold.

Richard Thompson, the chairman of PwC’s European portfolio advisory group, forecasted the volume of NPLs would continue rising for the next two years, driving the loan portfolio market, which will also be boosted by the ECB’s prospective stress tests and the need to meet Basel III capital requirements. “With an uncertain economic climate it is difficult to forecast any meaningful reduction in aggregate across Europe and indeed we believe that reported NPLs in many countries will continue to rise over the next couple of years, adding further impetus to the already buoyant loan portfolio market,” said Thompson in PwC’s biannual report on European NPLs.

PwC’s rival EY (Ernst & Young) noted in its annual NPL investor report that European distressed debt opportunities were increasingly tempting investors away from the US. “European banks have increasingly begun to reduce their exposure to NPLs via portfolio sales. Consequently, global NPL investors are turning their attention to Europe, and for good reason. An estimated 1 trillion euros of NPLs are sitting on the balance sheets of the region’s banks, far surpassing the magnitude of distress in the US,” said EY partners Howard Roth and Christopher Seyarth in the report.

“By far, Europe represents the biggest opportunity worldwide,” said Lee Millstein, head of European and Asian distressed and real estate investments at Cerberus Capital Management, quoted in EY’s report.

Bloomberg reports, Italian Bank Foundations Under Siege as Visco Seeks Overhaul. Italy’s banking foundations, the biggest shareholders in the country’s financial industry, are under siege as their leaders gather in Rome today. Bank of Italy Governor Ignazio Visco wants them to loosen their grip on management. The IMF has urged an overhaul of an ownership structure vulnerable to cronyism. In the last 12 months, their appointees at the banks were ousted in Genoa and probed by prosecutors in Siena.

I comment that the reinvigoration of credit after the 2008 financial collapse, formerly began when the US Fed took in distressed assets, such as those traded by the Fidelity Mutual Fund FAGIX, with the start of QE1, which stimulated the value of Excess Reserves to skyrocket, and which has driven up risk assets to their peak value, such as Solar Stocks, TAN, Social Media, SOCL, and Small Cap Pure Value Stocks, RZV, and which has driven up the market value of credit service companies, such as Nelnet,  NNI, American Express, AXP, and Nicholas Financial, NICK, and the market value of the whole spectrum of the most liberal forms of credit, such as Junk Bonds, JNK, Ultra Junk Bonds, UJB, Senior Bank Loans BKLN, Distressed Assets, FAGIX, which in turn reinvigorated currency carry trades.

And most recently beginning in late June 2013, it was the value of Eurozone distressed assets, together with the European nation state treasury debt, that has underwritten the PBOC Monetary Stimulus, the US Fed No Taper, and the ECB Bank Supervision Rally, and has brought the world to liberalism’s peak economic and political experience, that being peak democratic nation state sovereignty, peak banker driven seigniorage, peak credit, peak fiat wealth, and peak trust in the fiat money system, in other words, peak moral hazard based prosperity.

Processed and Packaged Foods, FLO, GIS, K, CAG, CPB, and Personal Products, PG, UN, NUS,  EL, CL, KMB, Cleaning Products, CLX, ECL, Beverages, CCE, and Confectioners, HSY, MDLZ, led Global Consumer Staples, KXI, seen in this Finviz Screener, to a new rally high. And in similar way, JJSF, SNAK, BBBD, FHCO, STKL, led Small Cap Consumer Staples, PSCC, to a new rally high.

Short Term Bonds, FLOT, manifested bearish harami and traded lower. Ultra Junk Bonds, UJB, and Junk Bond, JNK, traded higher.

The chart of the Euro Yen Currency Carry Trade, EUR/JPY, manifested bearish engulfing and traded lower at 134.85, as the Euro, FXE, closed at lower 136.38. and the Yen, FXY, closed lower at 100.01.

And the chart of the Australian Dollar Yen Currency Carry Trade, AUD/JPY, also manifested bearish engulfing and traded lower at 93.95, as the Australian Dollar, FXA, closed lower at 95.81. Emerging Market Currencies, CEW, traded lower at 20.60. And The Chinese Yuan, CYB, manifested a massive dark cloud covering, and traded lower at 26.47.

Liberalism was the age of investment choice based upon schemes of credit liqudity and carry trade investing; both of its spigots of investment liquidity traded lower on Monday, October 28, 2013, and competitive currency devaluation commenced with currency traders calling currencies lower, and the US Dollar, $USD, UUP, higher.

Financial marketplace trading on Monday, October 28, 2013, continued a trend lower from October 23, 2013, and communicates that the financial markets has turned from bull to bear.

With the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … the monetary policies of the world central banks are going beyond expanding the money supply, to integrating banks into government by introducing the antifragile financial system, an Alberto Mingardi Econolog Econolib term.

The traditional Fed be dead, its previous interventionist monetary policies and monetary tools no longer provide stimulus, only death. The fiat asset inflation that came via the grand experiment by the US Federal Reserve policies of monetary intervention is over, finished and done. Fiat asset deflation has arrived and is bearing down on the World Financial Institutions, IXG, and on currency trading and credit sensitive nations, such as Greece, GREK, Ireland, EIRL, Spain, EWP, Brazil, EWZ, EWZS, India, INP, SCIN, China, YAO, ECNS, with Greece’s National Bank of Greece, NBG, Ireland’s Bank, IRE, and Spain’s Banco Santander, SAN, Brazil Financials, BRAF, leading lower.

Financial market place trading, world central banks’ monetary policies and monetary tools, as well as enduring enforcement of austerity measures by the Troika in exchange for seigniorage aid, have pivoted the world from the economic and political paradigm of liberalism into authoritarianism.

The world central bankers have effected a global economic and political coup d’etat, … with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … pivoting the world from democracy into statism, where banks have charter in governance with the government.

On October 23, 2013, Jesus Christ, fully opened the First of Seven Seals of The Scroll, Revelation 6:1, containing the details of the culmination of history, Revelation 1:1, which releases the First of the Four Horsemen of the Apocalypse, the Rider on the White Horse, who has a bow but no arrows, signifying his role in effecting a global coup d’etat, transferring sovereignty from nation states to nannycrats and regional bodies, as they come to rule in regional governance, in each of the world’s ten regional areas.

Liberalism was the age of investment choice based upon schemes of credit and carry trade investing. Authoritarianism is the age of diktat based upon schemes of debt servitude and totalitarian collectivism. As a result, investors can no longer profit from investing long the financial markets; wealth can only be preserved by investing in and taking possession of gold and silver bullion.

The world passed through peak nation state sovereignty and seigniorage on October 23, 2013, as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, turned lower from their PBOC Monetary Stimulus, and US Fed No Taper, and ECB Bank Supervision Rally highs.

Under liberalism, central bankers provided democracies, that is nation states, with fiscal, and investment seigniorage, that is investment moneyness, based upon investment opportunities in each country, and those investment opportunities were enhanced by strict austerity coming from the Troika, two cases in point being Ireland, EIRL, and Greece, GREK.

Liberalism’s world central bank credit interventionist and money creation monetary policies and monetary tools, gave investors stunning investment gains from June 24, 2013, to October 23, 2013, with the PBOC Monetary Stimulus, and US Fed No Taper Stimulus, and ECB Bank Supervision Rally Stimulus, producing seigniorage for Eurozone Stocks, EZU, Eurozone Financials, EUFN, Ireland, EIRL, and its bank, IRE, and Spain, EWP, and its bank, SAN, and Greece, GREK, and its bank, NBG.

Yet on Monday October 29, 2013, traditional investment seigniorage was eclipsed, by the seigniorage of authoritarianism, specifically the seigniorage of diktat, which is terminating democracy  and commencing regional governance, for the purpose of regional security, regional stability, and regional security, by the establishment of EU bank supervision, led by its banking nannycrat, Ignazio Angeloni.

Danny Hakim of the NYT writes The Man Who’ll Do Triage on Europe’s Banks. Ignazio Angeloni, is a man with a mission: “You have to supervise what banks do,” Mr. Angeloni of the ECB said.  He heads the European Central Bank’s financial stability division, giving him a lead role in a task about to begin: examining the books of the 130 or so largest banks in the 17 members of the European Union who use the euro, European Press Release reports.

Regionalism is replacing capitalism, European Socialism, and Greek Socialism as a way of life. And regional integration is replacing global growth and trade, and corporate profitability as the dynamo of economics.

The world attained peak prosperity on October 22, 2013, when Global Financial Institutions, IXG, traded to an all time new high, which came through the world central banks monetary policies of investment choice, and provision of credit and carry trade investment, through the speculative leveraged investment community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, as well as real estate investor, BX, and which produced a terrific moral hazard based peak prosperity.

Democratic nation state sovereignty and seigniorage attained its fullest potential, on October 22, 2013; this coming on the swell of world central bank assets, which drove up the market value of credit service companies, such as Nelnet, NNI, American Express, AXP, and Nichola Financial, NICK, and the market value of risk assets, such as Solar Energy, TAN, Social Media, SOCL, and Small Cap Pure Value Stock, RZV, and the market value of the whole spectrum of liberal credit, such as Junk Bonds, JNK, Ultra Junk Bonds, UJB, Bank Loans, BKLN, and Distressed Assets, FAGIX, and which also in turn reinvigorated currency carry trades, such as the EURJPY and the AUDJPY.

Under democracy, bankers, corporations, government, entrepreneurs, and citizens of democracies, acting as investors were the legislators of economic value and the legislators of economic life.

Evidence of peak nation state sovereignty and seigniorage comes from the investment value of small cap stocks such as the Small Cap Pure Value, RZV, and Small Cap Pure Growth, RZG,  as well as the Russell 2000, IWM, the Russell 2000 Pure Value, IWN, and the Russell 2000, IWO, reaching new all time highs, as investors have given full credit, that is full trust, to these fiat assets.

Peak nation state sovereignty and seigniorage has produce peak fiat wealth, on the sovereignty of the world central banks, and the seigniorage of the speculative leveraged investment community.

Libertarians, especially austrian economists, have always desired free things, such as free prices, Hayek’s free market monetary system, even a free land, but their dreams are simply a mirage on the Authoritarian Desert of the Real, as God has always promoted empires as seen in Daniel’s Statue of Empires, Daniel 2:25-45.

Under authoritarianism, currency traders, bond vigilantes, and nannycrats working in public private partnerships, banks integrated into government, and in statist regional governance, are the legislators of economic value, and are the legislators that shape one’s means and one’s ends.

With the world central banks new monetary policies and new monetary tools, the sovereignty of the world central banks is moving into statist regional governance and totalitarian collectivism, where the diktat money system provides the seigniorage of diktat. In response to credit crisis, leaders will meet in summits to renounce national sovereignty and announced pooled sovereignty, and appoint nannycrats to public private partnerships, to oversee the factors of production, commerce, banking and trade, establishing the Eurozone, as a banking union, fiscal union, and fully developed economic union, characterized as an austerity union and debt union.

With the world central banks new monetary policies and new monetary tools, the sovereignty of the world central banks is moving into statist regional governance and totalitarian collectivism, where the diktat money system provides the seigniorage of diktat. In response to credit crisis, leaders will meet in summits to renounce national sovereignty and announced pooled sovereignty, and appoint nannycrats to public private partnerships, to oversee the factors of production, commerce, banking and trade, establishing the Eurozone, as a banking union, fiscal union, and fully developed economic union, characterized as an austerity union and debt union.

Fiat money, consisting of Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, Emerging Market Currencies, CEW, and Short Term Bonds, FLOT, died October 23, 2013, with the European Parliament and ECB announcement of banking oversight of European Banks.

Out of the liberalism’s peak nation state sovereignty, peak banker seigniorage, and peak crony capitalism, and peak democracy, Obamacare is pivoting liberalism into authoritarianism which features the nannycrat, dikat, beast regime which provides diktat as money for economic transactions, with Obamacare being a prime example of economic and political life under authoritarianism.

The beast regime of Revelation 13:1-4, is rising up out of the chaos, that comes from the experience of clientelism, the failures of democracy, and the extremities of crony capitalism, as well as the eclipse of personal responsibility, to occupy in totalitarian rule in every of mankind’s seven institutions, these being 1) Education, 2) Finance, banking, commerce, investment and trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science & Technology.  Under the beast regime, government mandate, not investment choice, pervades and integrates every human experience. The seigniorage of diktat, that is the moneyness of diktat, establishes economic life under authoritarianism.

Under liberalism, one exercised choice; but under authoritarianism, one looks to the mandates of nannycrats and their rule for life experience. Under liberalism, the seigniorage of choice ruled everything and provided value in human endeavors; but under authoritarianism, the seigniorage of diktat gives economic value to everything.  Liberalism featured the Milton Friedman, Free to Choose, banker regime which provided fiat money for economic transactions.

Out of the liberalism’s peak nation state sovereignty, peak banker seigniorage, and peak crony capitalism, and peak democracy, Obamacare is pivoting liberalism into authoritarianism which features the nannycrat, dikat, beast regime which provides diktat as money for economic transactions, with Obamacare being a prime example of economic and political life under authoritarianism.

Eventually, people will come to full trust in the beast regime of regional governance and totalitarian collectivism, to the extent that it will be described as worship as the Apostle Paul foretells in Revelation 13:3-4,  All the world marveled and followed the beast; so they worshiped the dragon who gave authority to the beast; and they worshiped the Beast.

On Tuesday, October 29, 2013, World Stocks, VT, Global Financials, IXG, and Nation Investment, EFA, traded slightly higher, with World Stocks, VT, attaining its previous high.  US Stocks, VTI, ended at a new all time high as the S&P 500, SPY, extended a string of record highs, as economic data supported views the Federal Reserve will keep its stimulus intact for several months. Yet US Real Estate, IYR, traded lower, with Small Cap Real Estate, ROOF, Residential REITS, REZ, and Mortgage REITS, REM, trading lower; Industrial Office REITS, FNIO, and Blackstone, BX, traded higher.

The EUR/JPY closed higher at 134.91, nearing it recent rally high, as the Euro, FXE, closed lower at 135.97, and the Yen, FXY, closed at 99.55. Yet the AUD/JPY, closed lower at 93.04, as the Australian Dollar, FXA, closed strongly lower at 94.89.

The US Dollar, $USD, UUP, traded slightly higher, which induced Silver Miners, SIL, and Gold Miners, GDX, to trade lower.

The National Bank of Greece, NBG, continued lower, taking Greece, GREK, lower. Argentina’s Banks, GGAL, BFR, BMA, continued lower, taking Argentina, ARGT, lower. Chile’s Bank, BCA, traded lower, taking Chile, ECH, lower; this as CNBC reports Greece’s Piraeus Bank Warns Of Rising Bad Loans.

India’s Bank, IBN, and HDB, and Steel Producer, SSLT, Auto Manufacturer, TTM, and Information Technology Services Company, WIT, traded higher, on a higher India Rupe ICN, taking India, INP, SCIN, higher.  And Brazil’s Bank, ITUB, traded strongly higher to a new rally high, taking Brazil, EWZ, higher.

Debt deflation continued today as currency traders successfully sold currencies short, introducing competitive currency devaluation. Australia, EWA, KROO, New Zealand, ENZL, and Indonesia, IDX, IDXJ, traded lower on the lower Australian Dollar, FXA; and Sweden, EWD, traded lower on a lower Swedish Krona, FXS; and Switzerland, EWL, traded lower on a lower Swiss Franc, FXF, which forced its Banks, CS and UBS, strongly lower; and UK’s Banks, LYG, and RBS, traded lower on a lower British Pound Sterling, FXB. The Nikkei, NKY, traded higher on a lower Japanese Yen, FXY.

Sectors trading higher included Solar Energy, TAN, Small Cap Energy, PSCE, Energy Production, XOP, Spin Offs, CSD, Home Building, ITB, Semiconductors, XSD. Nasdaq Internet, PNQI, Internet Retail, FDN, Small Cap Pure Value, RZV, Pharmaceuticals, PJP, Investment Bankers, KCE, Retail, XRT, Small Cap Consumer Discretionary, PSCC, Global Consumer Discretionary, RXI, Global Consumer Staples, KXI, Global Industrial Producers, FXR, Media, PBS, Aerospace, PPA, and Transportation, XTN.  Educational Services, seen in this Finviz Screener, traded to new rally highs.

Yield Bearing Sectors trading higher included Shipping, SEA, and Energy Partnerships, AMJ.

Paper Producers, WOOD, Automobile Producers, CARZ, and Resorts and Casinos, BJK, traded lower. Small Cap Growth Company, RF Industries, RFIL, traded parabolically higher, manifesting a massive evening star candlestick in its trading chart.

Aggregate Credit, AGG, traded unchanged as the Interest Rate on the US Government 10 Year Treasury Note, ^TNX, closed unchanged at 2.51%.

On Wednesday, October 30, 2013, CNBC reports To The Surprise Of Virtually No One, The Fed Kept Its Cheap-Money Policy In Place And Pledged To Continue Pumping $85 Billion A Month. I relate that stocks have peaked out inasmuch as they traded slightly lower after the Fed communicated that on Wednesday October 30, 2013, that it intends to continue debt purchases at $85 billion a month.

The investment rally that began June 24, 2013, has run its course not only for Nation Investment, EFA, and Global Financials, IXG, on October 22, 2013, but also for World Stocks, VT, and Global Industrial Producers, FXR, on October 30, 2013.

The June 2013 through October 2013 rally, specifically the PBOC Monetary Stimulus, the US Fed No Taper, and the ECB Bank Supervision Rally, has produced liberalism’s peak investment, economic and political experience. The rally was a fantastic debt trade and currency trade, that produced stunning gains for those invested in Greece, GREK, German Small Caps, GERJ, Italy, EWI, Spain, EWP, Ireland, EIRL, and the European Financials, EUFN. This investment enthusiasm was built on confidence in the ability of the world central bank’s ability to stimulate global growth and trade, as well as to produce ongoing corporate profitability; but both of these goals are now faltering.

The world central banks’ monetary policies and monetary tools, now have the effect of turning “money good” investments bad.  And the European Parliament and ECB announcement of banking oversight of European Banks, has pivoted the world from liberalism’s age of investment choice into the authoritarianism’s age of diktat.

The world central banks are developing new monetary policies and new monetary tools, for two purposes.  First to integrate banks into government, this seen in the European Parliament and ECB announcement of banking oversight of European Banks, as well as the US Federal Reserve Fixed Rate Full Allotment Reverse Repo Facility. And, second to introduce the antifragile financial system, an Alberto Mingardi Econolog Econolib term, this seen in the Bank of England Revised Sterling Monetary Framework, and the US Fed Liquidity Coverage Ratio.

World Stock have attained peak leverage over credit as is seen in the chart of World Stocks relative to Aggregate Credit, VT:AGG, as well as is seen in the chart of Nation Investment relative to World Treasury Bonds, EFA:BWX, as well as is seen in the chart of Eurozone Stocks relative to EU Debt, EZU:EU, as well as seen in German Stocks relative to German Bunds, EWG:BUND as well as is seen in VTI:TLT.  Credit Writedowns notes US Stock Market Capitalization Higher Than Any Time Except NASDAQ Bubble

The details of the day’s trading were as follows:

World Stocks, VT, traded 0.4%, lower; down from its double top high.

Nation Investment, EFA, traded 0.4% lower; manifesting well below its October 22, 2013 high.

Global Financials, IXG, traded 0.4% lower; also manifesting well below its October 22, 2013 high.

Global Industrial Producers, FXR, traded 0.7% lower; down from its rally high.

US Stocks, VTI, traded 0.6%, lower, Russell 2000, IWM, -1.4, S&P 500, SPY, -0.5; all down from their rally highs.

Nikkei, NKY, traded unchanged; now trading below its recent rally high.

Asia Excluding Japan, EPP, traded 0.2% lower; well below its evening star high.

Eurozone, EZU, traded 0.6%, lower, European Financials, EUFN, -1.0, Deutsche Bank, DB, -1.7, Banco Santander, SAN, -1.2, Ireland’s Bank, IRE, -1.0, National Bank of Greece, NBG, +3.1.

Sectors trading lower included Solar Stocks, TAN, traded 3.2% lower, Biotechnology, IBB, -2.0, US Homebuilders, ITB , -1.9, Internet Retail, FDN, -1.9 , Social Media, SOCL -1.9, Media, PBS, -1.8, Networking, IGN, -1.5, Pharmaceuticals, PJP, -1.5, Nasdaq Internet, PNQI -1.4, Semiconductors, XSD, -1.3, US Infrastructure, PKB, -1.1, Small Cap Industrials, PSCI, -1.1, Small Cap Consumer Staples, PSCC, -1.0.

Yield Bearing Sectors trading lower included, DRW, 0.9%, Leveraged Buyouts, PSP, -0.7, Global Telecom, IST, -0.7, Global Utilities, DBU, -0.6, Utilities, XLU, -0.6, Small Cap Real Estate, ROOF, -0.2

Small Cap Pure Growth Stocks, RZG, traded 1.4% lower; examples include MEI, SPA, EXTR, CAMP, FLDM, PDFS, DXPE, HEES, and KAI. And Small Cap Pure Value Stocks, RZV, traded 1.0 lower, examples include ACSM, EEFT, FNGN. And Energy Production, XOP, traded 1.9%, lower, and Small Cap Energy, PSCE, traded 1.2% lower,  as Oil, USO, traded 1.6% lower.

Nations trading lower included Thailand, THD, 3.5%, Turkey, TUR, -2.2, Indonesia, IDX -2.1, Israel, EIS, -2.1, Russia, RSX, -1.0, Argentina, ARGT, -1.4, and the Russell 2000, IWM, -1.4.

Aggregate Credit, AGG, traded lower, as the Interest Rate on the US Ten Year Note, ^TNX, closed slightly higher at 2.53%. The Steepner, STPP, rose slightly higher.

Liberalism’s two spigots of investment liquidity, the first being carry trade investing, and the second being credit liquidity, are both starting to run dry, and are no longer able to provide investment funding. The Telegraph notes JP Morgan Sees Most Extreme Excess Of Global Liquidity Ever.

The first spigot, carry trade investing is topping out and turning over. The chart of the EUR/JPY showed a close at 135.44, with the Euro, FXE, closing at 136.84, and the Japanese Yen, FXY, closing at 99.10. And The chart of the AUD/JPY showed a close at 93.45, with the Australian Dollar, FXA, closing at 94.84.

The second spigot, credit liquidity is topping out and turning over as well. The chart of Short Term Bonds, FLOT, showed no change on the day; these are trading consistently below their October 22, 2013, high.

The US Dollar, $USD, UUP, traded somewhat higher to close at 79.70, it is now trading consistently higher from its October 22, 2013, low. Monetary debasement, a key factor in fiat asset inflation, is history. A sell of the US Dollar no longer serves to support carry trade investment in risk assets, such as Vice Stocks, VICEX, and no longer serves to float currencies.

Inflationism is turning into destructionism as all the Major World Currencies, DBV, and Emerging Market Currencies, CEW, will be sinking, as faith wanes in the ability of debtors to repay lenders.  Liberalism’s debt trade and the currency carry trade is over, through, finished and done. The US Dollar can’t and won’t serve as the world’s reserve currency. Regional framework agreements will provide undollar bartering resources for regional integration, security, stability, and sustainability.

On Thursday, October 31, 2011, inflationism turned to destructionism on the death of fiat money. Liberalism featured globalism, where bankers ruled in investment choice for the purpose of global growth and trade as well as for corporate profitability. But the death of fiat money on October 28, 2013, seen in World Stocks, VT, Nation Invesment, EFA, and Global Financials, IXG, Credit Service Companies, such as American Express, AXP, Visa, V, Capital One, COF, and Nicholas Financial, NICK, together with Major World Currencies, CEW, as well as Aggregate Credit, AGG, all trading lower, together with collapse of currency carry trade investment, such as the EUR/JPY, and the collapse of credit, such as Short Term Bonds, FLOT, has commenced regionalism, where nannycrats rule in diktat working in regional framework agreements featuring undollar transactions such as bartering agreements to establish regional security, regional stability, and regional sustainability.

Some question, did fiat money really die? Most assuredly so; and in responding, it is important to define money. Money is defined as that the medium of exchange used in payment of goods and services in an economic and political regime; it is a storehouse of investment worth; it is minted, that is coined by an agent of the sovereign, that is the ruler, and carries the seal of authenticity of the seignior, that is the top dog banker who takes a cut, and it provides economic and political life experience, as well as identity to all using it. Bitcoins do not meet the definition of money. and have been deemed by some authorities as illegal contraband.

How does one know fiat money died? One knows fiat money died on Wednesday, October 30, 2013, as the investment value of all metrics of fiat wealth, Stocks, VT, Credit, AGG, Major World Currencies, such as Chinese Yuan, CYB, Australian Dollar, FXA, Swiss Franc, FXF, Euro, FXE, Swedish Krona, FXS, India Rupe, ICN, and Brazilian Real, BZF, as well as Emerging Market Currencies, CEW, are now worth less; and will one day be totally worthless, when people no longer trust ruling sovereigns.

How did fiat money die? Fiat money died on the exhaustion of the world central banks’ monetary authority as investors now fear that debtors will be unable to repay creditors, as is evidenced by the bond vigilantes calling the Interest Rate on the US Ten Year Government Note, ^TNX, higher from 2.53%. And as a result, debt deflation has commenced in World Treasury Bonds, BWX, and International Corporate Bonds, PICB, and in Emerging Market Local Currency Bonds, EMLC.

Competitive currency devaluation, more specifically, unwinding currency carry trades are causing investment devaluation in periphery of Nation Investment, EFA, specifically in Sweden, EWD, Brazil, EWZ, EWZS, Norway, NORW, South Korea, EWY, Indonesia, IDX, IDXJ, Malaysia, EWM, Turkey, TUR, Peru, EPU, and Chile, ECH.  Investors are derisking and deleveraging out of the banks of these nations, such as Peru’s BAP, South Korea’s SHG, and KB, and Brazil’s BSBR, ITUB, BBD, and BBDO.  Emerging Market Financials, EMFN, Emerging Market Miners, EMMT, and Emerging Market Infrastructure are among the sectors that are now leading investment lower, as the world has turned from risk on investing to risk off investment, seen in the Risk Off ETN, OFF, trading higher.

The death of money comes at a time when the pursuit of yield has reached its zenith, as Lisa Abramowicz tweets There’s only $140 bln left out of >$6 trln of EU and US corporate bonds that yield 7% or more & trade somewhat frequently: UBS strategists. And Zero Hedge relates LBO Multiples: The Latest Credit Bubble.

I comment that the dearth of tradeable toxic debt is reflected in Distressed Investments, FAGIX, Ultra Junk Bonds, UJB, Senior Bank Loans, BKLN, and Junk Bonds, JNK, rising near their May 2013 highs on the pursuit of yield.  And I ask, can you imagine the awesome fall in value, that is collapse in money, that is coming to these fiat investments, when investors exit the debt trade?

The chart of the EUR/JPY shows a close lower at 133.54, with the Euro, FXE, closing parabolically lower at 134.31, and the Yen, FXY, closing higher at 99.40. And The chart of the AUD/JPY shows a close lower at 93.00, with the Australian Dollar, FXA, closing lower at 94.65.

Gold, GLD, is both a commodity and a currency, and being that it had carry trade seigniorage under liberalism, it is now trading lower in value, as investors deleverage out of currency carry trades. Its trade lower today, caused investment derisking out of gold mining stocks, GDX, and Silver Mining Stocks, SIL. Silver Standard Resources Inc, SSRI, a carry trade darling, traded 5.4% lower.

Globalism as a driver in economic affairs, is history. The death of globalism with the death of fiat money, and this death is terminating the rule of the Banker democratic nation state regime, and is introducing regionalism, thus commencing the rule of the beast regime of regional governance and totalitarian collectivism, which provides the diktat money system for mankind’s economic and political life.

Benson te writes on the collapse of credit More Signs of China’s Hissing Bubble: Four Biggest Banks Post Biggest Surge in Bad Loans From Bloomberg, China’s top four banks posted their biggest increase in soured loans since at least 2010 as a five-year credit spree left companies with excess manufacturing capacity and slower profit growth amid an economic slowdown.

Nonperforming loans at Industrial & Commercial Bank of China Ltd. (601398), China Construction Bank Corp. (939), Agricultural Bank (1288) of China Ltd. and Bank of China Ltd. (3988) rose 3.5 percent in the three months to Sept. 30 from June to a combined 329.4 billion yuan ($54 billion), according to data compiled by Bloomberg News based on third-quarter results.

The rise in defaults adds to concerns bank profitability may decline as policy makers seek to trim production at cement makers to paper manufacturers that have gorged on credit since 2008, while urging lenders to build buffers to cover loan losses. China’s biggest state-run banks are trading near record-low valuations as investors brace for a surge in bad debts and slower credit growth.

Interest rate payments soar. Interest owed by borrowers has risen to 12.5 percent of Chinese gross domestic product in 2013 from 7 percent in 2008, Fitch Ratings estimated in a report last month. The figure may rise to as high as 22 percent by the end of 2017, which could “ultimately overwhelm borrowers,” the agency said.

When the markets begin to question the ability of firms or nations to service their debt/s, where the cost of servicing debt (interest and principal) overcome the profit centers, then confidence to refinance existing bad loans will grind to a screeching halt. This leads to more accounts of bad loans and more bankruptcies.  I comment that the collapse of trust in the debtor to repay lender caused Chinese Financials, CHIX, to trade lower on October 22, 2013, which recovered in price this week.

SFGate reports Rents Soaring Across Region. Asking rents for San Francisco apartments listed on www.livelovely.com clocked in at a record $3,398 in the third quarter, up 21 percent from 2012, said apartment-finding company Lovely.

Greek Newspaper Kathimerini reports Greek Private Clinics Refuse Patients Insured With EOPYY Over Outstanding Payments Greece’s private clinics will no longer admit patients insured by the National Organisation for Healthcare Provision (EOPYY), and will continue to withhold care until at least 3 November, unless the organisation settles its outstanding debts, estimated at a total of €800m.

Commodities, DBC, traded lower. There is a global glut of natural gas, and that today, Natural Gas, UNG, traded strongly lower; and Oil USO, traded lower again today

Gold Miners, GDX, Silver Miners, SIL, Homebuilders, ITB, Emerging Market Miners, EMMT, Emerging Market Infrastructure, EMIF, Casinos and Resorts, BJK, Energy Production, XOP,  Small Cap Energy, PSCE, Small Cap Pure Value Stocks, RZV, Small Cap Pure Value Growth Stocks, RZG, Too Big To Fail Banks, RWW, Regional Banks, KRE, Biotechnology, IBB, and Transportation, XRT, were the loss leading sectors of the day.

Robert Wenzel of Economic Policy Journal relates New $90 Million Condos in NYC Needle Towers. I respond with the Max Raskin, Michael Deal, and Evan Applegate of Bloomberg post of 08-08-2008 Correlations: Skyscraper Index. Sometimes a skyscraper is not just a skyscraper, at least to economists who see them as harbingers of downturns. The Skyscraper Index measures the correlation between the world’s tallest building and the business cycle. The theory, first proposed in 1999 by Dresdner Kleinwort analyst Andrew Lawrence, is that construction of the world’s tallest building is usually completed right before an economic downturn. The Empire State Building went up early in the Great Depression, and the World Trade Center was completed on the eve of a recession.

On Friday, November, 1, 2011 Regions trading lower included the Eurozone, EZU, -1.0, the Nikkei, NKY, -1.1, with Nation Investment, EFA, trading -1.0, lower; nations trading lower included Turkey, TUR, -2.1, Greece,  GREK, -2.0, Indonesia, IDX, -1.7, IDXJ, -2.9, South Africa, EZA, -1.5,Argentina,  ARGT, -1.2, Brazil, EWZ, -1.1, EWZS, -1.3, Spain, EWP -1.0, Sweden, EWD, -1.0, Philippines,  EPHE, -1.0, Egypt,  EGPT, -1.0, EWG, -1.0, GERJ,

Sectors trading lower included Small Cap Pure Growth, RZG, -1.1, and Home Building, ITB, -1.0.

Yield Bearing Sectors trading lower included Global Real Estate, DRW, -1.0, Global Utilities, DBU, -1.0, and Leveraged Buyouts, PSP, -1.0

Energy Production, XOP, -1.0, and Small Cap Energy, PSCE, -2.0, on lower Oil, USO, -1.6.

The chart of the EUR/JPY, showed a close at 133.22. And the chart of the AUD/JPY, showed a close at  93.21.

Some of the fastest derisking and deleveraging out of Nation Investment, EFA, is in those nations where the current account deficit is the largest, that being Indonesia, IDX, IDXJ, Brazil, EWZ, EWZS, Turkey, TUR, and South Africa, EZA, as is seen in their combined ongoing Yahoo Finance Chart. Heather Mathers posts Reemergence Of Currency Wars. The spectre of global contagion from Brazil, Indonesia, India, Turkey and South Africa is looming, Alan Ruskin, global macro strategist at Deutsche Bank has warned. The phrase “Fragile Five” seems to have been first coined by Morgan Stanley analyst James Lord.. This has hit those countries’ balance of payments, which measures the balance of a country’s transactions with the rest of the world. If a country’s exports, including financial transactions, are less than its imports it runs a current account deficit.

Gareth Vaughn of Bloomberg reports Moody’s Investors Service Considered Lowering New Zealand’s Triple A Credit Rating due to concerns the country’s current account deficit increases its vulnerability to external shocks. “So we discussed it, but we decided we should not downgrade New Zealand,” Bloomberg reported Steven Hess as saying.

Statistics New Zealand said last month the country’s current account deficit narrowed more than expected to $9.1 billion in the year to June 30, equivalent to 4.3% of Gross Domestic Product. At June 30 New Zealand’s net international liability position was $151.3 billion, or 71.1% of GDP.

Hess also said Moody’s would be watching the New Zealand housing market closely given the Reserve Bank’s decision to apply restrictions to banks’ high loan-to-value ratio lending. “Obviously the Reserve Bank thought they should do something about it, so it’s something that needs to be monitored and we’ll be doing that,” Hess told Bloomberg.

Last month Moody’s, which also confirmed its stable Aaa sovereign rating on New Zealand, maintained its stable outlook on New Zealand’s banking system, but said the risk of an asset bubble triggered by a lending boom remained a key credit concern. And in May Moody’s said the Budget highlighted New Zealand’s main vulnerability of reliance on foreign savings to fund investment.

Alan Wheatley and Tim Reid of Reuters report Property Hot Spots Renew Easy Money Bubble Bears. To assess property market risk, house prices need to be gauged in relation to income. Whereas the U.S. price-to-income ratio at the end of 2012 stood at 84.3, measured against a rolling long-run average of 100, the ratio in Canada was at a 10-year high of 131.7, according to the Organisation for Economic Cooperation and Development. Moreover, Canada’s debt-to-income ratio reached a record high of 163.4 percent in the second quarter.”Debt is at record levels, and we know consumers are biting off more than they can chew financially, so does this lead to more problems down the road?” asked Laurie Campbell, chief executive at Credit Canada, a credit counseling agency. And Macleans Canada posts Macleans provides the Chart Of Canadian Household Debt Since 2008, showing a continual and strong rise.

Alex Matveev posts Vancouver West Detached Home Real Estate Market Update 830 active listings, 105 sold listings. Sales-to-active listings ratio is 12.7 per cent. List prices are ranging from $948,000 to $23,800,000. Median list price is $2,888,000.

Justin Lee posts Alexandra English Bay Is A New Vancouver West Real Estate Project by Millennium Development Corporation, Concord Pacific and Alexandra English Bay Properties Ltd. Alexandra English Bay is located at 1221 Bidwell Street. The project has a total of 85 units and is scheduled for completion this Fall/Winter. Sales for available condos/apartments at Alexandra English Bay range in price from CAD$869,900 to over CAD$990,000. With unit sizes from 907 Sq Ft To 985 Sq Ft and ceiling heights from 9’0″ to 10’6″.

Roy Wang posts Chinese Buyers Boost Point Grey Vancouver West Property Market. According to the real estate company founder Bob Rennie Associates Realty • Rainey (Bob Rennie) estimated price of more than $ 2 million in Western homes, about 80% of buyers are Chinese people, they want to live in the adjoining West Point Grey Academy, St. George’s School (Saint George’s) and g Johor Dayton School (Crofton House) and other private residential area.

West Point a distant mountain views overlooking the sea and a five-bedroom house, Rennie & Associates Realty agency launched the price is 4.98 million Canadian dollars (about 4.83 million U.S. dollars). Relax intermediary company also introduced a Western set with indoor pool, seven bedroom home, it covers an area of ​​1.15 hectares, the price of 17.8 million Canadian dollars.

University of British Columbia (University of British Columbia) is a leading Western universities, but also attracted a lot of attention from buyers attention. Sotheby’s Canadian International Real Estate Limited (Sotheby’s International Realty Canada) President and CEO Ross • McCredie (Ross McCredie) estimates that 10% -15% of the West End apartment housing homeowners are international buyers. “Many people in this study, it will advance the room for their children ready, because they feel it is stabilized by investment,” he said.

Perchance, are you looking for a home in Bellingham, WA, just south of Vancouver. Well then, perhaps the home listed in Redfin 210 N Garden St Bellingham, WA 98225, is for you.

7) … News reports fulfill bible prophecy that Jerusalem will become a stumbling stone. Jason Ditz of Antiwar reports the following middle east news:

In Iraq, Sunni Attacks Spark Shi’ite Calls to Arms

Israel Issues Plans for 5,000 New Settlement Homes

Syria Peace Talks Face Delay as Big Powers Split

Forget Sanctions: House Hawks Push for Iran War

House: Israel Attacked Syria Airbase.

Prophecy Update posts Jerusalem: “A Burdensome Stone” Jerusalem is back in the news. One cannot read these articles without thinking about the warnings from the prophet Zechariah: “And In that day I will make Jerusalem a burdensome stone for all people: all that burden themselves with it shall be cut in pieces, though all the people of the earth be gathered together against it.” (Zechariah 12:3)

8) … Notes on “the new normal” Signposts Of The Times writes Prophecy Sign: roaring and tossing of the seas and anomalous weather patterns. Now Get Ready For An Ice Age As Experts Warn Of Siberian Winter Ahead

9) … Some cities are very psychopathic. Rockford, IL, is a city of great psychopathy. Wikipedia relates Rockford, IL 61101, is the most populous city in Illinois outside of Chicago.  Crime on the west side of town is endemic, with huge areas of old established neighborhoods in extreme blight. The homicide rate in these areas is quite high. Many houses were vacant with no one wishing to buy them.

Rockford was ranked #3 on Forbes’ 2013 America’s Most Miserable Cities list, mainly due to its excessive tax rate for the city’s size as well as its high unemployment rate.[23]

In February 2009, The Wall Street Journal published a series of stories on Rockford and its mayor focusing on various challenges faced by the city, including higher unemployment and lower education levels of workers compared to some cities.[24]

Blogs eRockford relates A 24/7 Wall St. review of 2010 FBI crime data shows Rockford was ranked the 9th most dangerous city in the U.S. for violent crimes per capita. Rockford was ranked behind Flint, Detroit, St. Louis, New Haven, Memphis, Oakland, Little Rock, and Baltimore, and just before Stockton. Median Income: $36,990 (26% below national average) and Unemployment Rate: 13.3% (4.3% above national average). Rockford has unusually high violent crime rates for a city of its size. Most notably, the city has the fourth highest rate of aggravated assault in the country, with 10.5 cases for every 1,000 citizens in 2010. During the same period, 20 murders occurred, almost double the number in 2000.

I add that the pursuit of municipal debt in Illinois, has reached psychopathic levels. as Tim Jones and John McCormick of Bloomberg report “Nothing thrives in Illinois like local government, almost 7,000 units that tax, spend and drive up debt in a state struggling to pay off vendors and cover almost $100 billion of unfunded pension liabilities. More than any other state, Illinois illustrates how local taxing bodies flourish across the U.S., whether urban or rural, Republican or Democrat. The governments duplicate services and burn tax dollars at the same time states slash money for education and Washington cuts discretionary spending. In Illinois, which has the 11th highest state and local tax burden in the U.S., overlapping government agencies managing everything from mosquito abatement to fire protection collect billions of dollars, employ tens of thousands and consume resources that could help pay pension deficits and $7.5 billion in outstanding government bills. ‘The big focus is on Washington D.C. and deficits and tax increases,’ said Dan Cronin, chairman of the DuPage County board… ‘But people frequently overlook a significant chunk represented by under-the-radar government — quiet, sleepy, unaccountable.’ Across the country, there are 38,266 special purpose districts, or government units distinct from cities, counties and schools, each with its own ability to raise money

10) … An inquiring mind asks what is risk free money, and what is “risk free” collateral?  Automatic Earth asks an important question How can we have record bad loans and record excess liquidity at the same time? I comment that inasmuch as a collateral shortage is coming soon, as investors derisk out of stocks, and deleverage out of currency carry trades, what constitutes “risk free” collateral, and thus what constitutes “money good” investments?

Physical possession of gold bullion certainly is “risk free” collateral, and a “money good” investment.

And The 10 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, are what I term the market vane ETFs, constitute risk free money, and could serve as the basis for a margin account, as these will increase in value with rapidly growing financial instability, as carry trades, such as the EUR/JPY and the AUD/JPY start to aggressively unwind, and as credit becomes more expensive, as will be seen in the Short Term Bond ETF, FLOT, trading lower.

11) … Summary … The new endgame of the US Fed and other world central banks is to establish the antifragile financial system where banks are integrated into the government with both serving as the foundation for regional governance replacing nation state democratic rule.

Credit failed the week ending November 1, 2013. The bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.62%, which stimulated investors to stop chasing yield, and resulted in a strong rise in the failure of credit, with Ultra Junk Bonds, UJB, Junk Bonds, JNK, Aggregate Credit, AGG, World Treasury Bonds, BWX, International Corporate Bonds, PICB, Government Bonds, GOVT, and Short Term Bonds, FLOT, trading lower in value. The Steepner ETF, STPP, traded higher, reflecting the flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX.

On October 23, 2013, The US Ten Year Notes, TLT, rose to strong resistance at 108 and turned lower, and on Friday November 1, 2013, fell parabolically lower when the Interest rate on the US Ten Year Note, ^TNX, rose to 2.62%.

Friday November 1, 2013, will be known as Black Friday for Bonds, as the following traded strongly  lower, 30 Year US Government Bonds, EDV, 10 Year US Government Note, TLT, Government Short Term Bonds, SHY, Long Duration Corporate Bonds, BLV, Corporate Bonds, LQD, International Treasury Bonds, PICB, World Treasury Bonds, BWX, Emerging Market Bonds, EMB, Municipal bonds, MUB, Junk Bonds, JNK, Mortgage Backed Bonds, MBB, and even Short Duration Bonds, FLOT. The failure of liberalism’s credit was complete. There be no safe Bonds, BND, anywhere in the world.

Debt deflation enabled the currency traders to commence competitive currency devaluation in the beginning of what will be an epic currency war against the world central bankers, with the result that the US Dollar, $USD, stopped falling in value, and the Australian Dollar, FXA, Euro, FXE, British Pound Sterling, FXB, Swedish Krona, FXS, Swiss Franc, FXF, Brazilian Real, BZF, Indian Rupe, ICN, Emerging Market Currencies, CEW, all traded lower in value. The collapse of currencies is seen in their combined ongoing Yahoo Finance chart together with the 200% Dollar ETF, UUP.

The Great Bear Market of 2013, commenced on October 23, 2013, as confirmed by the Market Off ETN, OFF, rising in value.

And in response to the failure of both credit and currencies, Global Financials, IXG, traded lower, leading World Stocks, VT,  and Nation Investment, EFA, lower on October 23, 2013; this just as the world central banks came out with a new end game, that is to roll out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, where banks are integrated into government, and serve as the bedrock for regional governance which replaces democratic nation state rule.

The Fed, and other central banks don’t have an endgame that includes helping the investor, the working class or middle class. Monetary policies of easing and monetary tools such as $85 billion of purchasing of debt is history, that is history in the sense that it has any useful benefit.

The world central bankers are effecting a global economic and political coup d’etat, … with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … pivoting the world from liberalism’s regime of nation state democracy into authoritarianism’s regime of regional statism, specifically regional governance and totalitarian collectivism.

Mankind’s journey of liberalism came to an end on October 23, 2013 with the failure of credit, AGG, the collapse of currencies, such as Brazilian Real, BZF, the Australian Dollar, FXA, the Euro, FXE,  and disinvestment out of Global Financials, IXG, World Stocks, VT, Nation Investment, EFA.

Mankind’s journey of authoritarianism commenced on October 23, 2013, with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio.  The provision of new world central bank monetary policies and schemes was the Genesis Event, that terminated the world out of the twin global former empires of the British Empire and the US Hegemonic empire, and into the new rule of the Ten Toed Kingdom, as foretold in bible prophecy by the prophet Daniel in his interpretation of the Statutes of Empire Dream of Daniel 2:25-45.

Under liberalism’s regime, credit underwrote all human social interaction; and currencies of nation states characterized the fiat money system. Another word for credit is trust. It was trust in the monetary policies such as Global ZIRP, and monetary tools, such as POMO, and QE of the world central bankers that supported the fiat money system’s debt trade and currency carry trade investment schemes

Liberalism has moved far to the right since its origination with Calvin and Hayek and Mises.  Contemporary liberalism is defined as nation state banker economic and political rule, characterized by clientelism and regulatory capture crony capitalism, municipal governance European socialism, as well as pork and patronage Greek socialism.  Contemporary liberalism has been very Orwellian, and with Obamacare, has passed the tipping point, and has fallen to authoritarianism.

It was world central bank policies of investment choice and schemes of credit and carry trade investing, that produced liberalism’s peak democratic nation state sovereignty, peak banker seigniorage, and moral hazard based peak prosperity.

With Obamacare one is no longer free to choose, as the health care policy is now of mandated health care with schemes of state insurance exchanges, so that seigniorage comes Health and Human Services Secretary Kathleen Sebelius’s seigniorage, which establishes debt servitude, as those without health care are subsidized by those with better paying jobs.

Under authoritarianism’s regime, diktat underwrites all human social interaction; and the mandates of regional nannycrats characterizes the diktat money system.  It will be trust in the world central bankers monetary policies such as regional banking supervision, and monetary tools such as the Fixed Rate Full Allotment Reverse Repo Facility, as well as the mandates of  regional nannycrats in statist oversight of the factors of the production, commerce, banking and trade, that will support the diktat money system’s schemes of debt servitude and austerity

Mankind’s economic and political experience has been and always will be one of mandates. There will never ever be any libertarian experience of freedom, that is liberty, as those of the Mises persuasion, long for.

Fiat investment choice was the way of life under liberalism’s nation state banker regime. Liberalism was an experience in credit, where the mandates of bankers supported by democratic nation state rule, coupled with currency carry trade investment produces tremendous prosperity in the pursuit of risk assets, such as Social Media, SOCL, Small Cap Pure Growth Stocks, RZG, Small Cap Pure Value Stocks, RZV, and Resorts and Casinos, BJK, as well as nation state investment, EFA, such as Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP.

Now compliance with diktat is the way of life under authoritarianism’s beast regime. Authoritarianism is an experience in debt servitude, where the mandates of nannycrats in regional governance and totalitarian collectivism, produces crushing austerity in the pursuit of regional security, stability, and sustainability.

Please consider that national state democratic rule is history and the Maastricht Treaty is simply an epitaph on one of the tombstones of the bygone era of liberalism.

The Maastricht Treaty was a scheme of liberalism, designed by the Council on Foreign Relations and leading European federalists to destroy the sovereignty of the British Empire and to establish a United States of Europe with ever increasing democratic deficit.

France played a key role in the development of the great European experience.  Dexia Bank, a joint French and Belgian endeavor, underwrote French municipal debt which for years served as the basis for money market funds, sustaining their constant one dollar value.

French municipal government was a leading factor in the development and ongoing support for French National Wage law which, with other national wage laws, served as part of the bedrock of Europoean Socialism.   Of note, the framework for the edifice of European Socialism came from European Financial Institution, EUFN, securitization and trade in Italy, EWI, and Greece, GREK, Treasury debt.

Mankind’s economic and political experience has been and always will be fiat, that is one of mandate. For the longest time it was centered in the rule of kings and priests.  But with liberalism, the experience matured into one of resource in the rule of bankers and democratically elected officials, beginning with in 1913 with the creation of the Creature From Jekyll Island. But on October 23, 2013, economic and political experience pivoted into liberalism, with the death of the former monster and the rise of appointed nannycrats ruling in the beast regime of regional governance and totalitarian collectivism, with the joint European Parliament and ECB announcement of European wide banking supervision.

Austrian economists dream of sovereign individuals and true democratic states, existing with sound monetary systems, where free prices and liberty prevail. But dispensationalist economists such as myself, perceive that Jesus Christ is acting in dispensation, Ephesians, 1:10, that is in the administrative plan of God, to bring forth the fullness and completion of every age, era, epoch, and time period; specifically that Jesus Christ has produced Liberalism’s peak experience of democratic nation state sovereignty, peak banker seigniorage, and peak moral hazard based prosperity, and that He has ended the Fed, something that Ron Paul could not do, and has brought forth a new monster, that being the beast of regional banking.

The stock market, in turning from bull market to bear market, the week ending November 1, 2013, produced the following results:

Sectors trading lower this week included

Homebuilding, ITB, -4.0

European Financials, EUFN, -3.0

Social Media, SOCL -2.9

Biotechnology, IBB, -2.5

Small Cap Pure Growth, RZG, -2.5

Small Cap Pure Value, RZV, -1.7

Automobiles, CARZ, -1.7

Resorts and Casinos, BJK, -1.6

Paper Producers, WOOD, -1.4

Global Financials, IXG, -1.3

Yield Bearing Sectors trading lower this week included

Mortgage REITS, REM, -3.5

Residential REITS, REZ, -2.7

US Real Estate, IYR, -2.3

Small Cap Real Estate, ROOF, -2.1

Leveraged Buyouts,  PSP, -2.0

Nations trading lower this week included

Indonesia, IDX, -7.0

Turkey, TUR, -5.5

Argentina, ARGT, -5.0

Sweden, EWD, -4.2

South Africa, EZA, -3.9

Brazil Small Caps, EWZS, -3.8

Greece, GREK, -3.2

Chile, ECH, -3.1

Thailand, THD, -2.9

German Small Caps, GERJ, -2.9

Malaysia, EWM, -2.3

Switzerland, ESL, -2.2

US Small Caps, IWM, -2.1

Nation trading higher this week included

China, YAO, +2.8

India, SCIN, +2.3

Natural resource stocks trading lower this week included

Energy Production, XOP, -3.2, Small Cap Energy, PSCE, -2.4, on a lower price of Oil, USO, -3.4.

Silver Standard Resources, SSRI, -11.1, Silver Miners, SIL, -9.6, Gold Miners, GDX, -8.5, on a lower price of Silver, SLV, -2.9, and Gold, -2.7.

The New Economic And Political Paradigm Of Authoritarianism Emerges To Establish A Eurozone Banking Union And Fiscal Union Featuring The Diktat Of Nannycrats As Jesus Christ Opens The First Seal Of The Scroll

October 28, 2013

Financial Market Report for the week ending October 25, 2013

1) … Under the new economic and political paradigm of authoritarianism, fiscal policy is established by the diktat of regional nannycrats. Please consider the concept that the economic and political paradigm of liberalism stands at its zenith, as is seen in the Weekly Finviz Chart of Global Financials, IXG, showing 30% gain over the last year, as the Banker Regime has established a Washington US Dollar Hegemonic Empire, greatly rewarding investment choice providing a moral hazard based prosperity, based upon schemes of credit liquidity and carry trade investing.

Yet, the world is at an epic inflection point.

Jesus Christ, operating in the Economy of God, as revealed by the Apostle Paul in Ephesians 1:10, that is operating in the administration of all things economic and political, is pivoting the world into the economic and political paradigm of authoritarianism, where the Beast Regime will establish the Ten Toed Kingdom of regional governance and totalitarian collectivism, where in the Eurozone a fiscal union creates fiscal policies of diktat providing “the new normal” of austerity, based upon schemes of debt servitude.

I relate that The Dispensation Economics Manifest presents that the democratic nation state theory of money is being replaced by the regional governance theory of money; said another way, the fiat money system is being replaced by the diktat money system.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal policy councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, for Eurozone wide fiscal governance, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke all kinds of mandates for regional security, stability, and sustainability.

These leaders, that is nannycrats include, Jeroen Dijsselbloem, President of the Eurogroup meeting of euro-zone finance ministers, Olli Rehn, Vice President of the European Commission responsible for economic and monetary affairs, Michel Barnier, EU Commissioner responsible for internal market and services, Klaus Regling, Managing Director of the European Stability Mechanism, Werner Hoyer, President of the European Investment Bank, Jorg Asmussen, Member of Executive Board of the ECB, Viviane Reding, European Commissioner for Justice, Fundamental Rights and Citizenship.

And diktat money is seen in countries with high current account deficit, such as in India, where import duties have been declared on the import of gold, and the import of gold coins banned; and such as in Indonesia, where curbs are placed on the import of luxury cars and some branded goods.

2) … Details of this week’s financial market trading

On Monday, October 21, 2013, trading manifested as deflationary, as in a turn lower from market highs.

Zero Hedge reports Yen Drops, Nikkei Pops On Japan’s Worst Trade Deficit On Record. In overnight trading,  In  Japan, The Nikkei, NKY, traded 0.9% higher, as the Japanese Yen, FXY, came under pressure and traded lower on slowing export growth and on reaffirmed central bank commitment to provide ultra loose monetary.  Roger Bootle of The Telegraph reports It’s Not Yet The End Of The World As We Know It, But Watch Japan’s Debt Grow. Japan has managed to muddle through, but it now looks as though it is close to a tipping point.  And Reuters reports Tokyo Steel, Wary Of  Imports Threat, Keeps November Prices Mostly Unchanged.

The National Bank of Greece, NBG, rose strongly. Eurozone Stocks, EZU, traded unchanged at their rally highs, while the European Financials, EUFN, traded slightly lower, while the EUR/JPY carry trade, closed slightly higher at 134.33, as the Euro, FXE, closed unchanged at 135.33, and the Yen, FXY, closed lower at 99.52.

The Nikkei, NKY, closed slightly higher on the day, while World Stocks, VT, US Stocks, VTI, Asia Excluding Japan, EPP, Emerging Market Stocks, EEM, and the BRICS, EEB, all traded unchanged.

Solar Energy Stocks, TAN, Gold Mining Stocks, GDX, and Silver Mining Stocks, SIL, traded higher. Biotechnology, IBB, Pharmaceuticals, PJP, traded lower. Egypt, EGPT, and Argentina, ARGT, traded higher. Thailand, THD, Indonesia, IDX, and the Philippines, EPHE, traded lower.  Tesla, TSLA, fell 5.9% lower, as Zero Hedge reports A German Magazine’s Story About Tesla’s Prospects In Europe Has The Stock Sinking Today.

The US Dollar, $USD, UUP, traded unchanged, as Major World Currencies, DBV, traded unchanged, and the Emerging Market Currencies, CEW, traded slightly lower.

Aggregate Credit, AGG, Junk Bonds, JNK, Ultra Junk Bonds, UJB, and Government Bonds, GOVT, traded slightly lower, as the Steepner ETF, STPP, traded slightly higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher to close at 2.61% as Michael Pinto writes Safehaven De-Crowning The US Dollar While most are now celebrating the end of government gridlock (however ephemeral it may be), the truth is few understand the consequences of our addictions. The real problems of government largess, money printing, artificial interest rates, asset bubbles and debt have not been addressed at all. Rather, Washington has merely agreed to perpetually extend its lines of credit and to have the central bank purchase most of that new debt. Instead of placating the fears of our foreign creditors we have cemented into their minds that the U.S. dollar and bond market cannot be safe repositories of their savings.

Commodities, DBC, hit resistance at 26.26, last Friday, that is October 18, 2013, and closed slightly lower today at 26.20. Oil, USO, traded sharply lower, as Bespoke Investment Group, reports Crude Oil Inventories Rise More Than Expected.  Small Cap Energy, PSCE, an Energy Production, XOP, manifested bearishly at the top of their ascending wedge chart patterns.

Scott Grannis writes Bank Lending Continues To Increase Confidence is slowly returning, and risk-aversion is slowly declining. I comment, yes, this is true.

And he continues “and those are essential ingredients for a stronger economy in the years to come”.

I comment that this would be true, but a strong economy is not in the works, it is simply not going to happen, as the growth that has come since 2008, has been due to central bank policies of credit liquidity, specifically QE1 through QETernity, and POMO, as well as banker provided credit liquidity for speculative leverage invesment which has resulted in a fiat asset crack up boom, which is always followed by spectacular crash, often called a Minsky Moment.

And he continues “The decline in the price of gold (see chart above) is another way to see how risk-aversion is slowly declining”

This is incorrect, the decline in the price of gold is due to investors use a record amount of margin debt, the WSJ reports, “to go all in”, and buy risk assets such as the following:

Solar Stocks, TAN, with year-to-date performance of 152% gain.

Social Media, SOCL, with year-to-date performance of 60% gain.

Nasdaq Internet, PNQI, with year-to-date performance with 53% gain.

Biotechnology, IBB, with ETF, year-to-date performance with  50% gain.

Internet Retail, FDN, with year-to-date performance with 47% gain.

The US Dollar’s dramatic fall lower is seen in the chart of the 200% ETF, UUP, trading parabolically lower, as currency traders bought the Major World Currencies, DBV, such as FXB , FXF, FXS, FXE, FXA, FXC, and FXY, and Emerging Market Currencies, CEW, such as BZF, ICN, which can be seen in the trading of these financial instruments in their Finviz Screener.

With the strong trade in Euro-Yen currency carry trade, that its the EUR/JPY, FXE:FXY, and the Australian Dollar-Yen currency carry trade, AUD/JPY, FXA;FXY, coupled with the strong surge in risk free lending, seen in the chart of the short term credit ETF, FLOT, which is translated into a parabolic rise in World Stocks, VT, it is reasonable to perceive that peak fiat money has been achieved, and that Major World Currencies, DBV, an Emerging Market Currencies, CEW, will be trading lower, as investors pivot from risk-on investing to risk-off investing, deleveraging out of risk assets. The result will be a loss of confidence and a strong economic downturn.

The price of the Gold ETF, GLD, seen in Finviz Chart, …  http://tinyurl.com/nrehus … shows it to be in breakout at 127; it is likely to fall lower, as it is will trade lower with falling currencies and with falling commodities, before it soars as people safe assets; in a debt deflationary environment, that is interest rate rising environment and in an enduring currency value falling world, especially one characterized by authoritarianism, it and diktat will be the only assets of confidence, that is the only things people will trust in.

In Safehaven.com araticle Lara Iriarte provides GOLD Elliott Wave Technical Analysis. The dips that are coming in the next few days present buying opportunities, as in a bull market one buys into dips, whereas in a bear market one sells into pips.

News reports herald the development of Eurozone regional governance. Both an austerity union and an austerity regime is being established in the Eurozone. Eventually a One Euro Government, that is a European Super State, featuring a fiscal union, led by nannycrats will provide fiscal policy governance, based upon schemes of debt servitude.

Bloomberg reports the development of the Eurozone as an austerity union relating Euro Capitals Tighten Fiscal Leash as EU Starts Austerity.

Jordan Shilton of WSWS writes Irish Government Unveils New Austerity Budget. The Fine Gael Labour coalition has outlined new austerity measures, including €1.6 billion in spending cuts aimed at the most vulnerable. And The Irish Independent reports Ireland’s Health Minister Reilly To Cut 1,000 Jobs In Bid For €666m Savings.

Marianne Arens of WSWS reports Italian Government Adopts Austerity Budget  Pay for public servants will be frozen next year and vacant positions will not be filled. Then in 2015, only 40 percent of those who leave will be replaced; in 2016, it will be 60 percent. In order to obtain the necessary resources for budget cuts and tax relief, privatisation is being pursued. The state’s holdings in the airline Alitalia and in telecommunications are to be sold. Two days before the adoption of the budget, the government still planned to cut spending in the health sector by over €4 billion. At the last minute this was left out. Health minister Beatrice Lorenyin threatened to resign, and chemists and hospital associations protested strongly. Nonetheless, it is expected that such cuts will be imposed later. Italy barely complied with an EU deadline of 15 October for the presentation of the budget. Several passages in the budget remain to be determined or are simply blank. They will be negotiated in parliament in the coming weeks. The Democratic Party, which emerged from the once-powerful Communist Party, is dominated today by conservative officials like Letta, who began his political career together with his deputy Prime Minister and PDL secretary Alfano in the Christian-democratic youth movement. The numerous pseudo-left groups which gathered in Rifondazione Comunista in the 1990s and acted as a left fig leaf for a series of bourgeois governments, have also moved far to the right or no longer exist.

Open Europe, in its for fee newsletter, which I recommend that one purchase, relates Spiegel Online reports Merkel Demands EU Treaty Change To Give Commission Control Over National Budgets. In a meeting with EU Council President Herman Van Rompuy last week, German Chancellor Angela Merkel set out her proposals for giving the EU greater powers over eurozone members’ national budgets, a move which would require EU Treaty change. Merkel will reportedly insist on legally enforceable contracts between the Commission and individual member states, setting out their obligations for maintaining budgetary discipline and improved competitiveness. In return, Germany could agree to a eurozone budget which would amount to tens of billions. Finally, the President of the Eurogroup would become a “Euro Finance Minister”.  … Spiegel Online cites Axel Schäfer, deputy-chair of the SPD’s parliamentary group as saying that “the SPD will not support any settlements if Merkel conducts parallel negotiations with Britain’s David Cameron over the transfer of EU competences back to member states.” Schäfer also warns that the SPD will not support an EU Treaty changes that trigger referenda in individual member states.

Open Europe: What to expect after the German elections … Spiegel Spiegel 2 … DWN … Irish Times

Kate Randall of WSWS writes Nearly Half Of US Public School Children Are Poor.   Nearly half of public school children in the United States were poor in the school year that ended in 2011, according to a new study by the Southern Education Foundation (SEF), the oldest US educational charity.

The SEF study, based on data collected by the National Center for Education Statistics (NCES), further found that the percentage of low-income students in public schools rose dramatically from 2001 to 2011, far outpacing public school funding. The study also found a direct correlation between levels of poverty and academic performance.

The findings are the latest exposure of the growth of poverty in the US alongside burgeoning social inequality.

Levels of poverty among schoolchildren were the highest in the South and West, including in all but two of the 15 Southern states. The five most impoverished school populations also came from states in these regions: Mississippi (71 percent), New Mexico (68 percent), Louisiana (66 percent), Oklahoma (61 percent), and Arkansas (60 percent).

The SEF study’s most staggering finding is that 48 percent of all US public school children come from poor households. While figures for poor school children were highest in the South and West, 53 percent and 50 percent respectively, poverty levels were also extremely high in the Midwest, 44 percent, and the Northeast, 40 percent

The study notes that reduced family incomes in the US since the 2008 recession have directly contributed to the growth in the number of poor students in public schools, especially in states hard hit by the housing market crisis.

More than two-thirds of African American and Hispanic public school students attend schools where poor students are the majority. A high number of students from Pacific Islander (53 percent) and American Indian/Alaska Native (65 percent) households also attend schools where more than half of students are poor. About a third of white and Asian students attend schools where the majority is poor.

Several Northeastern states have extremely high levels of poor students in their cities. The figure for New Jersey is 78 percent, for Pennsylvania it is 75 percent, and for New York it is 74 percent. In these same three states, 30 percent or less of students in suburban schools are poor, an indication of striking social inequality in these urban centers.

The study also found that the regions with the largest proportion of poor students spend the least on educating them. For example, the South (53 percent poor students) spent $9,226 per pupil in 2011, compared to the Northeast (40 percent poor students), which spent $16,045 per pupil. This disparity in funding can only serve to perpetuate social inequality and the decay of education in poorer schools.

Data cited by the SEF study show that poor students are more likely than students from more well-off families to have lower test scores, fall behind in school, drop out, and fail to acquire a college degree. Problems faced by children coming from households where poverty, hunger and the accompanying stress are a daily fact of life are exacerbated by conditions in schools that are starved for funding.

Austerity budgets at the federal, state and local level threaten to further starve the poorest school districts of cash, while growing income inequality will increase the percentage of low-income students attending these struggling public schools.

I believe that it would have been better, and would be better now, if children would be educated only through 6th grade. From a moral, that is virtue, viewpoint, and economic, that is ethical, viewpoint, I believe parents should provide homeschooling or private schooling after 6th grade. Public schooling after 6th grade terribly corrupts one’s morals, that is virtues, and one’s economics, that is ethics in many ways. And psychopathy becomes quite pronounced after 6th grade; sending one’s child to public school exposes that child to either becoming a psychopath or becoming damaged by a psychopath.   In fifth and sixth grade, most children grow up to be able to comprehend morals and ethics. Being accountable, they can be taught to value independence and liberty, and to turn away from dependency,  clientelism, and moral hazard. Public education beyond the sixth grade is an impediment to the development of good character, and such education does not help one get employment as CNBC reports, More Youth Not In School, Without Jobs. Almost 6 million young people are neither in school nor working, according to a study released Monday. That’s almost 15 percent of those aged 16 to 24 who have neither desk nor job, according to The Opportunity Nation coalition, which wrote the report.

And now, school is a battleground for communication of economics, which should be a matter of parental education. Fox News reports Second Graders Taught Labor Politics In Core Curriculum Aligned Lesson Plan. A textbook company contracted to produce materials under the Common Core State Standards is trying to teach students as young as second grade about economic fairness by praising unions, protests and labor leader Cesar Chavez, according to an education watchdog group. Zaner-Bloser, which is based in Columbus, Ohio, is distributing a lesson plan aimed at teaching second-graders about “equality” by highlighting labor issues, according to Education Action Group Foundation, a non-partisan organization that looks to promote education reform.

Patrick Martin in WSWS communicates in article Top Senate Democrat Backs Medicare, Social Security Cuts that the recent Raise The Debt Ceiling and Fund Obamacare Legislation mandates that US fiscal policy be established by a House Senate conference committee co-chaired by Democratic Senator Patty Murray and Republican Congressman Paul Ryan. The committee is tasked with drafting a budget for the balance of the current fiscal year, to be submitted by December 13. It is widely expected to begin discussing cuts in Social Security and Medicare, a significant first step even if there is not yet bipartisan agreement on the exact measures to be taken.

I know Patty Murray to be a politically powerful woman, as I live in Washington State, and have benefited from Patty Murray Earmarks, in particular new city busses provided by her to WTA, that is  Whatcom County Transportation Authority, which manages public transportation in Bellingham, Blaine, Ferndale, and Lynden. The van pool and bus system is well financed through a sales tax scheme (which Canadians who come across the border to shop contribute to) and fortunately does an excellent job of providing low cost transportation for the elderly disabled like myself.

Peter Nicholas of the WSJ reports Budget Discord Simmers Among Democrats  Neil Sroka of Democracy for America, a group founded by former Democratic presidential hopeful and Vermont Governor Howard Dean, said to “expect a civil war within the Democratic Party if any Democrats [in] Congress think about following through on the president’s proposed cuts to Social Security benefits.” Mr. Sroka said his group would be following the committee’s work and is prepared to take out ads and support primary campaigns against Democratic lawmakers who agree to cuts in entitlement programs.

Danny Hakim of the NYT writes The Man Who’ll Do Triage on Europe’s Banks.  Ignazio Angeloni, is a man with a mission: “You have to supervise what banks do,” Mr. Angeloni of the ECB said.  He heads the European Central Bank’s financial stability division, giving him a lead role in a task about to begin: examining the books of the 130 or so largest banks in the 17 members of the European Union who use the euro. It will be financial triage aimed at determining which banks are sound and which are not; good luck with that.

(I comment that none of Europe’s banks are sound, as they are all loaded to the gills with nation state Treasury debt, EU, that cannot be and will not be repaid. The European Financial Institution, EUFN, are insolvent financial institutions, and the European nations, at least the PIIGS, that is the periphery nations Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns.  Insolvent sovereigns cannot govern, and insolvent banks cannot provide seigniorage. It is only through  godsend, that is a lifesaver, that the European banks have financial life; it came through the genius of Mario Draghi, who provided the monetary policies of LTRO1, LTRO2, and OMT.

The Euro FXE, is trading at its rally high of 135.36; its strength is not a function of free market place trading between buyers and sellers of nation state treasury debt; but rather the Euro has been given seigniorage by the sovereignty of one man, that being the ECB’s Mario Draghi.  Not only is the strength of the Euro, FXE, the European Financials, EUFN, and nation investment in Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, an awesome thing, it is truly an epic thing, as well as a pivotal thing, and a terminal thing. Liberalism has attained peak sovereignty, peak seigniorage, and peak prosperity.)

Angeloni is one of the more multifaceted lieutenants of Mario Draghi, the president of the European Central Bank. The immediate task is to prepare for the inception of a quasi-independent supervisory branch of the central bank, which will have its own chairman.

(I comment that as Mario Draghi’s banking lieutenant, he is one of many regional nannycrats rising in power to effect regional economic governance).

The first step is reviewing the financial health of the biggest banks of Europe. The central bank must do so in the next 12 months, while creating a supervisory wing staffed by a thousand new employees.

“People come to us and ask, ‘How can you do it? You have to recruit many supervisors, you don’t have many resources,’ ” he said. “That’s not true.” The central bank has the advantage of drawing on the aid and experience of national regulators that have long been at work in member states, he said.

“What makes it difficult is that it is very fragmented,” he said. “It is diversified in different countries, and they are not used to working together, so it’s a huge organizational effort, and it’s also a huge political effort in the sense of convincing everybody to converge to common styles of supervision.”

For the supervisory process to be truly useful, specialists say it must be accompanied by a so-called single resolution mechanism, a system for winding down failing banks in an orderly way, to avoid market upheavals. Regulators hope an independent body to oversee such work will be in place by 2015, but almost every detail of the banking overhaul effort has been mired in political wrangling among the member states.

“The stakes are the recovery and well functioning of Europe and the euro,” Mr. Angeloni said. “Europe has this project for several decades, to not only live in peace, that’s already an important thing in itself, but also to make its economic model function and potentially,  why not?,  be also exported elsewhere. And it’s a good economic model, because the quality of life in Europe is very high in many ways.”

(I comment that the European model, specifically European Socialism, and Greek Socialism, being based upon clientelism, and national laws which present structures that impede economic growth, is unsustainable; and having reached its fullest expansion, is about to implode).

“You have to make the system work, you have to reform it a little bit, and what we are doing is part of this reform,” he said, adding, “Building a federation is a long process.”

(I comment that yes, Ignazio Angeloni is a man tasked to build the banking infrastructure of a  Eurozone Superstate. The soon coming One Euro Government will be built upon a banking union as well as a fiscal union; Mr. Angeloni is a leader in establishing European regional governance.

Liberalism featured the Banker Regime. Authoritarianism features the Beast Regime, where leaders  meet in summits and workgroups to waive national sovereignty and establish regional pooled sovereignty, as The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, going out as a conqueror bent on conquest, Revelation 6:1-2, is effecting coup d’etat globally to transfer the baton of sovereignty, from liberalism’s democratic nation states, to authoritarianism’s nannycrats, as they rise to rule in public private partnerships, providing seigniorage through oversight of the factors of production, commerce, banking and trade, all for regional security, stability and sustainability.)

On Tuesday, October 22, 2013, financial marketplace trading produced liberalism’s peak nation state sovereignty, seigniorage, and moral hazard based prosperity, as it’s Krugmanomics here, and Abenomics, as well as Draghinomics, over there.

Liberalism attained peak prosperity on global currency carry trade investing and a pursuit of yield. Both of liberalism’s spigots of investment liquidity were open full wide. Said another way, the financial markets were under total leverage as evidenced by the Euro, FXE, Ultra Junk Bonds, UJB, and Leveraged Buyouts, PSP, rising strongly, and the US Dollar, $USD, falling strongly lower.

Currency traders bought all of the major world currencies, DBV, such as Swiss Franc, FXF, up 0.8%, The Euro, FXE, 0.7%, The Swedish Krona, FXS, 0.6%, The British Pound Sterling, FXB, 0.5%, and The Australian Dollar, FXA, 0.5%, as well as emerging market currencies, CEW, such as The Brazilian Real, BZF, 0.6%, and The Indian Rupe, ICN, 0.4%. Currency traders went “long, all in”.

The Japanese Yen, FXY, rose only a meager 0.05%, enabling a stunning leverage to those invested long risk assets, such as Biotechnology Stocks, IBB, Nation Investment, EFA, such as the Philippines, EPHE, and European Financials, EUFN, such as the National Bank of Greece, NBG, and Ireland’s Bank, IRE.  Seen in its chart, Nation Investment, EFA, clearly manifested a blow-off market top.

The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.51%, stimulated investors to chase yield, and resulted in a strong rise in credit, with Ultra Junk Bonds, UJB, up 0.75%, Junk Bonds, JNK 0.25%, Aggregate Credit, AGG 0.35%, Government Bonds, GOVT, 0.40%, and Floating Rate Note, FLOT 0.08%. The Steepner ETF, STPP, traded a strong 2.1% lower, reflecting the flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX.

The monetary policies of the world central banks, have produced fully produced Krugmanomics here, and Abenomics. as well as Draghinomics, over there.  The strong rise in Major World Currencies, DBV, and Emerging Market Currencies, CEW, drove World Treasury Bond, BWX, and International Corporate Bonds, PICB, to new highs, as the flurry of currency leverage and debt leverage caused the US Dollar, $USD, UUP, to plummet strongly to close at 79.29.

The precious metals at times trade inversely of the US Dollar; and that was the case today on the sharp trade lower in the US Dollar, $USD, as Gold, GLD, rose 1.8%, and Silver, SLV, rose 2.2%, stimulating Gold Miners, GDX, and Silver Miners, SIL, to rise 4.4%.  The strong rise in Commodity Currencies, that is the Euro, FXE, and the Australian Dollar, FXA, caused Copper Miners, COPX, Global Industrial Miners, PICK, and Coal Miners, KOL, rose strongly. Gold, GLD, and Silver, SLV,  are in breakout, but risk trading lower on soon falling currencies.

World Stocks, VT, rose a solid 0.7%.  Sectors rising strongly included Biotechnology, IBB, Solar Stocks, TAN, Design Build, FLM, Pharmaceuticals, PJP, Global Consumer Discretionary, RXI, and Global Industrial Producers, FXR,  Spinoffs, CSD, and Transportation, XTN,  And Yield Bearing Sectors rising included Utilities, XLU, Global Utilities, DBU, such as HNP, Real Estate, IYR, and Global Real Estate, DRW, Global Telecom, IST, such as VIP, as well as Leveraged Buyouts, PSP.

The strength of liberalism’s peak currency carry trade investing, is seen in investors taking Ireland’s CRH, IR, and COV, and Netherland’s, ST, AER, ING, LYB, and PHG, as well as Germany’s ABB, and SI, strongly higher.  And the strength of liberalism’s peak chasing of yield is seen in investors taking Tupperware, TUP, Cinemark, CNK, Ichan, IEP, Targa Resources, TRGP, and Vimpel, VIP, strongly higher.

Asia Excluding Japan, EPP, and the Eurozone, EZU, led World Stocks, VT, higher; all manifesting blow off market tops. In Asia, the Philippines, EPHE, New Zealand, ENZL, Turkey, TUR, Thailand, THD, Malaysia, EWM. and Australia, EWZ, KROO, led the way higher.  In Europe, Germany, EWG, EWGS, the Netherlands, EWN, and Italy, EWI, led the way higher. Argentina, ARGT, continued to a new rally high.

Ireland’s Bank, IRE, and the National Bank of Greece, NBG, rose strongly, to new rally highs, as the European Financials, EUFN, blasted higher, taking the Eurozone Stocks, EZU, higher, all on the, EUR/JPY, carry trade, which rose to close higher at 135.98, as the Euro, FXE, at 136.34, and Yen, FXY, at 20.71. The Elliott Wave Surfer chart article of the EURJPY communicates an Elliott Wave 5 High in liberalism’s great currency carry trade; the hart should be placed in future economic books as a tribute to liberalism’s currency carry trade leverage and the moral hazard prosperity that came through debt which cannot be repaid.

The vertical rise seen in the chart of the EURUSD, comes on the Reuters news report that the ECB names 130 European Banks for supervision; this news is truly epic, and together with currency carry trade investing, and the availabilty of credit seen in the strong rise of the Short Term Bond ETF, FLOT, accounts for the parabolic rise in European Financials, EUFN,  as well as nation investment in Ireland, EIRL, and its bank, IRE. The rise of the Euro, FXE, to 136 marks the zenith of Liberalism, as the age of investment choice, which was based upon schemes of currency carry trade investing, and central bank credit liquidity.

The Financial Times documents PBOC’s great provision of credit reporting China’s Credit Has Inspired Statistical Economic Growth. A surge in lending by banks and other financial institutions at the start of this year is one of the main explanations for the upturn in Chinese growth. Total social financing, China’s widest measure of credit, rose 52 percent year-on-year in the first five months of 2013.

The Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, as well as real estate investor, BX, have produced a terrific moral hazard based peak prosperity.

Peak fiat wealth was achieved on October 22, 3013. The strong trade lower in the US Dollar, $USD, to close at 79.29, and the strong rise in Nation Investment, EFA, and Global Industrial Producers, FXR, marks the zenith of Liberalism’s Milton Friedman Free to Choose Floating Currency Banker Regime, and the achievement of peak democratic nation state sovereignty, and banker driven seigniorage.

Mike Mish Shedlock writes New Rules for Italy Banks “I’ll Guarantee Your Derivatives If You Guarantee Mine”.  Basel III rules require extra capital for derivative positions. Banks in Italy have already figured out a way around that rule. The leverage of European banks to their own sovereign debt is enormous. This mutual guarantee agreement encourages banks to continue the leverage party.

Out of a soon coming Financial Apocalypse, foretold in bible prophecy of Revelation 13:3-4, authoritarianism’s Beast Regime of regional governance and totalitarian collectivism will provide regional nannycrat sovereignty and their diktat driven seigniorage, where undollar bartering amongst regional partners increasingly replaces US Dollar, $USD, based transactions.

Benson te asks Has The Fed’s Taper Talk Induced Foreign Selling, Swap And Bilateral Currency Deals?  Currency swaps or bilateral domestic currency trades have been small, nonetheless such deals means that many Asian governments have been gradually redirecting or decreasing their exposures on the US dollar. As Chinese philosopher Laozi once said, a journey to a thousand miles begins with a single step. China and Thailand have even undertaken a project to build a railway connection between the two countries, where Thailand will for pay for her share in the cost of railway construction via barter, particularly rice and rubber. Also currency swaps are not a free pass or license for bubbles. They serve as possible cushion from currency based tail events.

I’m not into short selling, but for those who are, or plan to be, one might consider using the ETFs, seen in this Finviz Portfolio, … OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG … as a basis for one’s margin account, now that the financial markets have peaked out.

Volatility, ^VIX, rose from 13.04, for the second straight day, taking the Volatility ETFS, seen in this Finviz Screener, TVIX, VIXY, VIXM, XVZ, higher.

Bloomberg reports China Swap Rate Rises a Fourth Day as PBOC Doesn’t Inject Funds. “It looks like we’re entering a phase when the PBOC will refrain from selling reverse repos,” said Cheng Qingsheng, an analyst at Evergrowing Bank Co. in Shanghai. “The PBOC is sending a clear signal to the market about its prudent stance.”

Liberalism was the age of investment choice based upon schemes of currency trade investment, and world central bank schemes of credit liquidity.

But authoritarianism is the age of diktat based upon schemes of debt servitude, as is evidenced by the Ulrich Rippert WSWS report German Social Democrats’ Convention Backs Coalition Talks With Conservative Parties. The SPD has dropped the reformist demands it raised during the election campaign to signal its readiness to cooperate with the conservative parties.  As well as by the report Andrei Tudora WSWS report Romanian Government And Unions Carve Up The Health System. Romanian unions are playing a key role in dismantling the public health system in Romania.  As well as the Mike Head WSWS report Queensland Australian Government Legislates Draconian Anti-bikie Laws.  The Queensland legislation marks an escalation of the far-reaching “criminal association” laws passed by state governments since 2001, which erode basic democratic rights.  As well as by the Dylan Lubao WSWS report Canada’s Conservatives To Intensify Assault On Working People Stephen Harper’s Conservatives have laid out a reactionary legislative agenda, including deep government spending cuts, attacks on public sector workers, and a massive arms buildup.

Johannes Stern of WSWS reports Germany: The Left Party Embarks On A War Course. Up to now, the Left Party was the only parliamentary party to officially oppose overseas missions of the Bundeswehr, German Armed Forces, criticizing US foreign policy and even calling for the dissolution of NATO in its party programme. This is now officially over. After the general election, the Left Party is dumping whatever empty phrases might become obstacles to supporting whatever wars Berlin might wage in the future.

COG writer relates Handelsblatt Bluntly States That The German Army Will Be Rebuilt “in order to be used all over the world.” The vast majority of the German population is vehemently opposed to militarism. The fact that the Handelsblatt can so publicly formulate the goals of the German bourgeoisie is above all a devastating indictment of the Green Party, the Social Democratic Party and the Left Party. (Stern J. The Return of German Imperialism. Global Research, 21 February 2013). The Mission of the Bundeswehr Germany and protects its citizens, secures the action in foreign policy of Germany, contributes to the defense of allies, contributes to stability and partnership in the international context, and promotes multinational cooperation and European integration. Notice that the defense of Germany anywhere and supporting European integration are essentially the stated goals of the Bundeswehr.  European integration will lead to the rise of the end-time Beast power of biblical prophecy! Wikipedia (viewed 06/25/13) has the following comment about the Bundeswehr: “The Bundeswehr in general is among the world’s most technologically advanced and best-supplied militaries, as befits Germany’s overall economic prosperity and significant military industry.”

While many believe that Germany’s intentions are peaceful (and the Bible teaches that many in Germany truly think they are per Isaiah 10:7), they will not remain that way.  Preparing their people to better respect and support their military, while increasing its technical abilities will lead to war, and several of them.

This inquiring mind asks, well which wars? I believe Germany will be involved in the soon coming Isaiah 17 war in Syria as well as the Ezekiel 38 Middle East War.

The German led, and Eurozone empowered Superstate, will be led by The Sovereign, Revelation 13:5-10, who according to Daniel 11:38-39, will be a military leader. “But in their place he shall honor a god of fortresses; and a god which his fathers did not know he shall honor with gold and silver, with precious stones and pleasant things. Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain.”

He is described as The Little Horn, one of seemingly little authority, Daniel 7:8, yet will rise to power through through his adept working in regional framework agreements, Daniel 8:23-26, and will set his attentions on The Glorious Land, Daniel 8:9, and as the prophesied  Prince who is to come, will provide a Middle East Peace Plan, and establish a One World Government, and One World Religion, with his global headquarters in Jerusalem, Daniel 9:25. The Sovereign will be accompanied in his rise to power, by the Seignior, Revelation 13:11-18, that is the top dog banker who takes a cut; his role will be to call people worldwide to emperor worship.

And please consider that according to Jesus, There will be signs in the sun, moon and stars, preceding His return, Luke 21:25. Duane and Shelley Muir write Comet ISON’s Blazing Green Tail Captured In Stunning Photo.

On Wednesday, October 23, 2013, the Market Off ETN, OFF, traded higher, as currency traders reversed course, and sold out of yen based carry trades, by calling the Yen, FXY, higher, and Major World Currencies DBV, and Emerging Market Currencies, CEW, lower, thereby causing investors to deleverage out of Global Financial Institutions, IXG, which were led lower by the National Bank of Greece, NBG, Spain’s Banco Santander, SAN, and Chinese Financials, CHIX, Argentina’s Banks, BFR, BMA, BBVA, GGAL, and South Korea’s Banks, KB, SHG, and WF, reflecting investor conviction that the monetary policies of the world central banks are no longer able to stimulate global growth and trade, nor corporate profitability, in any nation,  EFA, especially Greece, GREK, Ireland, EIRL, China, YAO, South Korea, EWY, Taiwan, EWT, India, INP, or Australia, EWA, KROO.

The derisking out of currency carry trade investment, turned off the ongoing rise of credit as is seen in the value of Short Term Bond, ETF, FLOT, trading lower in value.

Both of the levers of ongoing fiat wealth creation, these being currency carry trade investing and credit liquidity are no longer working.

Said another way, the twin spigots of fiat money creation, these being first, floating currencies and second, trust in the world central banks’s monetary authority to stimulate global growth and trade, establish corporate profitability, and develop nation investment, have run dry.

Benson te communicates Markets move on perceived changes in fundamentals. Speculators don’t just drive markets up or down according to “whims”, but through perceived profit opportunities mainly based on changing expectations of fundamental conditions of specific political economies. In other words, meltdowns don’t happen because of confidence alone, but because of perceived (rightly or wrongly) dramatic negative or adverse changes in fundamentals that incites an abrupt loss of confidence of market participants whose actions are ventilated on the markets via a stampede or panic.

The chart of the EUR/JPY carry trade shows a close lower at 134.19, as the Euro, FXE, traded unchanged at its rally high of 136.31, and the Yen, FXY, traded  0.8%  higher to 100.37.

The chart of the AUD/JPY carry trade shows a close lower at 93.70.

Major World Currencies, DBC, traded strongly lower, -1.4%, with Canadian Dollar, FXC, -1.0%, Australian Dollar, FXA, -0.9, and British Pound Sterling, FXB, -0.5. Emerging Market Currencies, CEW, traded lower, -0.5%, with Brazilian Real, BZF, -0.8%, and Indian Rupe, ICN, -0.6.

The US Dollar, USD, UUP, rose slightly, to 79.33

Energy Production, XOP, -2.6% and Small Cap Energy, PSCE, -2.4%, on a lower price of Oil, USO.

World Stocks, VT, -1.0%, with the following sectors trading lower: Semiconductors, XSD, -4.1%, Solar Stocks, TAN, -2.8, Networking, IGN, -1.8, Social Media, SOCL, -1.8, Steel, SLX, -1.6, Resorts and Casinos, BJK -1.6, and Global Financials, IXG, -1.5.

Yield Bearing Sectors trading lower included Global Telecom, IST, -1.2, with carry trade darlings, TKC, TSU, TEF, NTT, ORAN, MBT, NTT, trading lower.  And Global Utilities, -1.4, DBU, and its carry trade darlings, NHP, CIG, EBR, trading lower.  And Global Real Estate, DRW, -1.0,  And Leveraged Buyouts, PSP, -1.0, a very  high yielding ETF.

Nation Investment, EFA, -1.0% with Global Financials, IXG, -1.4%; Countries and their banks leading lower included the following:

Greece, GREK, -4.4%, with NBG -8.9%,

Argentina, ARGT, -3.3, with BFR, -8.2, BMA, -5.6,  BBVA, -4.1, and GGAL,-3.6,

China, YAO, -3.0, ECNS, -2.1, with CHIX, -3.2,

Nikkei, NKY, -2.7,  with MTU, -2.1, MFG, -2.1, and SMFG, -2.0,

India, INP, -2.6, SCIN, -1.9, with IBN, -1.5, and HDB, -1.2

Brazil, EWZ, -2.5, EWZS, -2.5, with BBD -3.2, ITUB -2.5, and BSBR, -2.2, all on an unwinding Brazilian Real Japanese Yen currency carry trade, as is seen in the chart of BZF:FXY

Emerging Markets, EEM, -2.3, with EMFN, -1.2,

Taiwan, EWT -2.1, with its semiconductor manufacturers, TSM, -2.3, and ASX, -2.3

Spain, EWP, -2.0, with SAN, -3.1,

South Korea, EWY, -1.8, with KB -3.5, WF, -3.2, and SHG, -3.1,

Australia, EWA, -1.7, KROO, -2.0 with WBK, -1.6.

Ireland, EIRL, -0.5 with IRE, -1.6

Eurozone, EZU, -0.7 with EUFN, -1.7

Fox News reports Boeing Boosts Outlook Amid 12% Profit Growth. Boeing’s, BA,  profit jumped 12% in the third quarter, as the aerospace giant’s commercial aircraft unit outweighed softness at its defense business.

Reuters reports Chip Stocks Drop As Widespread Weak Demand Worries investors. Shares of semiconductor companies slumped after a host of underwhelming quarterly revenue forecasts left Wall Street concerned about lackluster demand in markets from industrial to smartphones. Chipmakers trading lower included ASX, TSM, SPIL, HIMX, NXPI, AVGO, INTC, ASML, ASMI, AMAT, KLAC, QCOM, SWKS, ADI, LSI, MRVL, MU, STM, XLNX, MX, HITT, FSL, CREE, IDTI, RFMD, FSL, TQNT, MSCC.

Reuters reports Chinese Shares Dip As PBOC Curbs Liquidity Chinese shares slipped in volatile trading as a further spike in China’s money-market rates tempered the effect of a survey showing a pickup in manufacturing. China’s benchmark seven-day repo rates opened up nearly a full percentage point at 5 percent after the central bank let cash drain from the money market for a second week.

Reuters reports Copper Falls On Worries Over China Tightening. Copper, JJC,  slid 2%  as fears of tighter monetary policy. Copper Miners, COPX, traded 2.6% lower on the day.

Commodities, DBC, -1.5%, with Oil, USO, -1.3%, Base Metals, DBB, -2.0%, and Copper, JJC, -2.3%.

Gold, GLD, -0.5%, and Silver, 0.5%, causing Gold Miners, GDX, and Silver Miners, SIL, -3.2%.

Aggregate Credit, AGG, traded unchanged as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly lower to 2.49%.

Lack of trust in what is turning out to be a mercurial Imperial President is one of many factors that has commenced the end of US Dollar Hegemonic Empire, and will be the a factor in the birth of regional governance in each of the world’s ten regions.

Annette Hauser of The Bertelsmann Foundation writes, The Erosion Of Transatlantic Trust.  And Thomas Seibert writes US Concerned After Turkey Buys Chinese Arms. And Benson te writes Saudi Arabia Cuts Ties with the US over Syria-Iran. After the US government has been forced by the public, aided by Russian President Vladimir Putin’s appeal, to stand down against attacking Syria, Saudi Arabia reportedly severed ties with the US.

And Hennigan with the WSJ writes Obama’s Credibility Is Melting. Here and abroad, Obama’s partners are concluding they cannot trust him. The collapse of ObamaCare is the tip of the iceberg for the magical Obama presidency. From the moment he emerged in the public eye with his 2004 speech at the Democratic Convention and through his astonishing defeat of the Clintons in 2008, Barack Obama’s calling card has been credibility. He speaks, and enough of the world believes to keep his presidency afloat. Or used to. All of a sudden, from Washington to Riyadh, Barack Obama’s credibility is melting.

Last weekend the diplomatic world was agog at the refusal of Saudi Arabia’s King Abdullah to accept a seat on the U.N. Security Council. Global disbelief gave way fast to clear understanding: The Saudis have decided that the United States is no longer a reliable partner in Middle Eastern affairs.

The Saudi king, who supported Syria’s anti-Assad rebels early, before Islamic jihadists polluted the coalition, watched Mr. Obama’s red line over Assad’s use of chemical weapons disappear into an about-face deal with Vladimir Putin. The next time King Abdullah looked up, Mr. Obama was hanging the Saudis out to dry yet again by phoning up Iran’s President Hassan Rouhani, Assad’s primary banker and armorer, to chase a deal on nuclear weapons. Within days, Saudi Arabia’s intelligence chief, Prince Bandar, let it be known that the Saudis intend to distance themselves from the U.S.

What is at issue here is not some sacred moral value, such as “In God We Trust.” Domestic politics or the affairs of nations are not an avocation for angels. But the coin of this imperfect realm is credibility. Sydney Greenstreet’s Kasper Gutman explained the terms of trade in “The Maltese Falcon”: “I must tell you what I know, but you won’t tell me what you know. That is hardly equitable, sir. I don’t think we can do business along those lines.”

Bluntly, Mr. Obama’s partners are concluding that they cannot do business with him. They don’t trust him. Whether it’s the Saudis, the Syrian rebels, the French, the Iraqis, the unpivoted Asians or the congressional Republicans, they’ve all had their fill of coming up on the short end with so mercurial a U.S. president. And when that happens, the world’s important business doesn’t get done. It sits in a dangerous and volatile vacuum.

Mike Mish Shedlock writes ECB President Mario Draghi Announces New Stress Tests; Translating Draghize.  When it comes to stress tests, especially for European banks, the one thing history suggests is the tests will be essentially stress-free, by design. Why should this time be any different?

Nonetheless, Bloomberg reports European Central Bank Mario Draghi Says ECB Won’t Hesitate to Fail Banks in Stress Tests. For those of you who do not speak Draghize, I offer these translations.

Draghize: “The region’s governments will be ready to fill any capital holes that emerge as a result of the stress tests.”

Mish: The region’s governments are totally unprepared to fill any capital holes that emerge as a result of the stress tests.

The ANSAMed Anna Foundation report Italy’s Debt Hits Record High Of 133.3% Of GDP In 2nd Quarter, indicates the true nature of Italy’s sovereign capability. Its level of Treasury Debt, suggests that it is an insolvent sovereign. Its seigniorage does not come from risk appraisal between bond buyers and sellers, but rather from the ECB’s monetary policies of LTRO 1 and 2, as well as OMT. And the only reason why it has fiscal capability is because of what amounts to seigniorage aid from the word, will and way of central banker Mario Draghi.

The Economist reports The Eurozone Is Blighted By Private Debt Even More Than By Government Debt And the Economist also reports It’s Not Just Sovereign Borrowing: There Are Too Many Zombie Firms And Over Indebted Households.

The Telegraph reports Citi Forecasts Greek Devastation, Unstoppable Debt Spirals In Italy And Portugal

The WSJ reports Italy’s Government Looks to Tap Pensions Funds

The reality is that the periphery European nations, specifically the PIIGS, that is Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns, and the European Financials, EUFN, are insolvent banks. These cannot provide stable governance; it is only through regional integration and regional governance, with a footprint of supervised banking, leading to a banking union, as well as fiscal union, and statist economic governance overseeing the factors of production, as well as commerce and trade, that regional security, stability, and sustainability can be achieved.

As reported above, with the Market Off ETN, OFF, trading higher, on Wednesday, October 23, 2013, reflecting that currency traders reversed course, and sold out of yen based carry trades, by calling the Yen, FXY, higher, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower, causing investors to deleverage out of Global Financial Institutions, IXG, which were led lower by the National Bank of Greece, NBG, and Spain’s Banco Santander, SAN, as well as Chinese Financials, CHIX, Argentina’s Banks, BFR, BMA, BBVA, GGAL, Brazil Banks, BSBR, BBD, ITUB, BBVA, BBDO, and South Korea’s Banks, KB, SHG, WF, reflecting investor conviction that the monetary policies of the world central banks are no longer able to stimulate global growth and trade, nor corporate profitability, nor nation investment, EFA, in any country, especially Greece, GREK, Ireland, EIRL, China, YAO, South Korea, EWY, Taiwan, EWT, India, INP, Australia, EWA, KROO, and Brazil, EWZ, EWZS.

Failure of confidence in the monetary policies of the world central banks, has enabled currency traders to sell the Brazilian Real, BZF, short, stimulating deleveraging not only of Brazil Banks, BRAF, but of out of Brazil, EWZ, Brazil Small Caps, EWZS, and Brazil Infrastructure, BRXX; funding of the latter is very much need for seaport and rail projects in this natural resource and agricultural exporter; but unfortunately state money goes to support sports stadiums, documenting the failure of liberalism’s crony capitalism.

And as reported, investors derisked out of Semiconductors, XSD, seen in this Finviz Screener, trading 3.3% lower on the day, on fears that underwhelming quarterly revenue forecasts reflect lack of demand, indicating the failure of global economic growth policies of the world central banks.

Not only out of sovereign insolvency and banking insolvency of the PIIGS, that is Portugal, Italy, Ireland, Greece and Spain, but also out of the quicksand of a mercurial imperial presidency, as well as a failure of the Milton Friedman Free To Choose, Floating Currency, Banker Regime, … the Ten Toed Kingdom of regional governance, with its toes of iron diktat and clay democracy, seen in the Statue of Empires of Daniel 2:25-45, which is synonymous with the ten headed, that is ten regional area centered and seven human institution headed, Beast Regime of regional governance and totalitarian collectivism  … is rising to rule mankind’s economic and political activity.

Wednesday, October 23, 2013, was a pivotal day in mankind’s economic and political history. The trade lower in World Stocks, VT, Nation Investment, EFA, Semiconductors, XSD, and Copper Miners, COPX, yield investments, such as Global Utilities, DBU, Global Real Estate, DRW, and Leveraged Buyouts, PSP, as well as in credit, specifically Short Term Bonds, FLOT, on Wednesday October 23, 2013, reflects that Jesus Christ is operating in the economy of God, Ephesians, 1:10, that is in the administrative oversight of all things economic and political, and has pivoted the world out of the paradigm of liberalism and into the paradigm of authoritarianism.

On October 23, 2013, Jesus Christ, fully opened the First of Seven Seals of The Scroll, Revelation 6:1, containing the details of the culmination of history, Revelation 1:1, which releases the First of the Four Horsemen of the Apocalypse, the Rider on the White Horse, who has a bow but no arrows, signifying his role in effecting a global coup d’etat, transferring sovereignty from nation states to nannycrats and regional bodies, as they come to rule in regional governance, in each of the world’s ten regional areas.

Liberalism was the Banker era of investment choice, which provided schemes of credit and carry trade investment, establishing a moral hazard based prosperity. But authoritarianism is Beast era of diktat, which provides schemes debt servitude, enforcing austerity.

Jesus Christ oversaw the former order and having perfected it, is now perfecting the new order. What was formerly an age of righteousness is now an age of iniquity, formerly providence now calamity, formerly democracy now dictatorship, formerly economic growth now economic deflation, formerly inflationism now destructionism, formerly choice now diktat, as the Lord announces His Advent to install His Millennial Kingdom.

The austrian economic dream of freedom and free things, such as free prices, and such as Hayek’s free market monetary system, is simply a mirage on the Authoritarian Desert of the Real.

The trade lower in World Stocks, VT, Semiconductors, XSD, and Copper Miners, COPX, established Wednesday, October 23, 2013, as an epic and pivotal day in economic and political history, as fears arose that the monetary policies of the world central banks have turned “money good” investment bad, which turned Major World Currencies, DBV, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, lower in value. The fiat money system died, and the diktat money system came into being with Mario Draghi promising reliable European bank stress tests, turning the financial markets from bull to bear.

The trade lower in Nation Investment, EFA, and Global Financials, IXG, seen in this Finviz Screener, on October 23, 2013, terminated democratic nation state sovereignty, and liberalism’s bank seigniorage.  Ireland, EIRL, and its Bank, IRE, were the defacto standard bearers of liberalism fiat wealth. Their stunning investment success came through carry trade investing in the EUR/JPY, as well as Mario Draghi providing Eurozone liquidity, by LTRO 1, 2, and OMT, sustaining Eurozone Debt, EU.  But now, both the nation of Ireland, EIRL, and its Bank, IRE, stand as white washed tombs on the prior age of investment choice. While the Irish complain vociferously of austerity, such successful sealing investment trading in Ireland’s Bank, IRE, driving its value parabolically higher 162% over the last year.

On October 22, 2013, Jesus Christ terminated liberalism’s  Creature from Jekyll Island, through the failure of currency carry trade investment, seen in the EURJPY and the AUDJPY trading lower, as well as the failure of credit, seen in the short term bond fund ETF, FLOT, trading lower. Jesus Christ operating through dispensation, that is the completion of every ear, epoch, era, and time frame, has ended the Fed.  He did what Ron Paul could not do. The Fed be dead, and its policies no longer provide stimulus, only death. The fiat asset inflation that came via the grand experiment by the US Federal Reserve policies of monetary intervention is over, finished and done. Fiat asset deflation has arrived and is bearing down on the World Financial Institutions, IXG, and on currency trading and credit sensitive nations, such as Brazil, EWZ, EWZS, and India, INP, SCIN, and China, YAO, ECNS, with Brazil Financials, BRAF, India Earnings, EPI, and China Financials, CHIX, leading lower.

On October 22, 2013, Jesus Christ gave birth to authoritarianism’s Beast Regime of regional governance and totalitarian collectivism, through the Mario Draghi announcement of plans for European banking supervision.

News events clearly reflect the fulfillment of bible prophecy. As presented in Revelation 13:1-4, Jesus Christ has designed the Beast Regime to be the ultimate predator, having feet of a bear, the mouth of a lion, and camouflage of a leopard.  It’s feet have emerged in the European banking supervision system; its feet enable the monster to stand upright against all enemies, as well as to run down and trample all naysayers; and its claws enable it to root out and tear apart all opposition.

On Thursday, October 24, 2013, a massively long enduring market top formed as some sectors rose to new market highs.

Sectors rising strongly included US Infrastructure, PKB, such as TSCO, EXP, WIRE, TEX, USG, APOG, MHK, WHR, LII, TRW, PKG, ADS, CBI, PPG, PRIM, CSL, WSO, CTAS, RS, STLD, WOR, FMC, Small Cap Pure Value, RZV, such as STMP, CKEC, Global Industrial Producers, FXR, such as ABB, SI, TRS, MMM, TYC, ITW, ROK, ROLL, ENS, DXPE, HON, GGG, Defense And Aerospace, PPA, such as NOC, Transportation, XTN, Global Consumer Discretionary, RXI, such as CMCSA, DIS, FOXA, STRZA, TWX, VIAB, and Consumer Credit Companies, seen in this Finviz Screener.

Of note, Lloyds Group, LYG, rose strongly to a new high, taking the UK, EWU, to a new rally high. Regional Banks, KRE, such as GBCI, FIBK, SBNY, CITZ, CBIN, BOH, LKFN, Investment Bankers, KCE, Asset Managers, such as BLK, seen in this Finviz Screener, Mortgage REIT, SFI, and Specialty Financier, Icahn Enterprises, IEP, rose to new rally highs.

The EUR/JPY closed at 134.29.

The AUD/JPY closed at 93.56.

The BRICS, EEB, traded lower again today, as Brazil, EWZ, Brazil Small Caps, EWZS, Brazil Infrastructure, BRXX, Brazil Financials, BRAF, India, INP, SCIN, India Earnings, EPI, traded lower on a falling Brazilian Real, BZF, and on a falling India Rupe, ICN, and as Chinese Financials, CHIX, traded strongly lower.

US Health Care Providers, IHF, seen in this Finviz Screener, traded lower.

On Friday, October 25, 2013, World Stocks, VT, and Nation Investment, EFA, traded lower from their Tuesday October, 22, 2013, confirming the pivot of Stocks, VT, Nation Investment, EFA, Major World Currencies, DBV, and Emerging Market Currencies, CEW, from their recent rally highs, as well as establishing the pivot of the world’s democratic nation state economy from liberalism into regional governance and totalitarian collectivism beginning with the announcement of ECB oversight of 130 European Banks.

Yield Bearing Sectors trading higher today included

Utilities, XLU, 1.1%

Real Estate, IYR, 1.0

Industrial Office REITS, FNIO, 1.0

Ultra Junk Bonds, UJB, 1.0

Sectors trading higher today included

Gold Miners, GDX, 1.0

Silver Miers, SIL, 1.0

Sectors trading lower today included

Solar Stocks, TAN, -4.5%

Industrial Miers, PICK, -1.7

Paper Producers, WOOD, -1.2

Automobiles, CARZ, -1.0

Nations trading higher today included

INdonesia, IDX, 3.0%, IDXJ, 3.0

Greece, GREK, 1.8

Malaysia, EWM, 1.3

Norway, NORW, 1.3

Egypt, EGPT, 1.1

Turkey, TUR, 1.0

Philippines, EPHE, 1.0

Thailand, THD, 1.0

Nations trading lower today included

Argentina, ARGT, -1.4

Nikkei, NKY, -1.5

Spain, EWP, -1.0

Italy, EWI, -1.0

The Interest Rate on the US Ten Year Note, ^TNX, closed the week at 2.50%

The EUR/JPY closed the week at 134.40, with the Euro, FXE, closing at 136.58, and the Yen, FXY, closing at 100.35.

The AUD/JPY closed the week at 93.35.

The stock market bubble of all times has formed as is seen in the leverage off stocks, ETFs, and mutual funds over debt.

World Stocks relative to Aggregate Credit, VT:AGG

Eurozone Stocks relative to EU Credit, EZU:EU

Nation Investment relative to World Treasury Bonds, EFA:BWX

Vice Stocks relative to Distressed Debt, VICEX:FAGIX

A summary of this week’s trading presents the following trading activity

World Stocks, VT, +0.6; a market top on Tuesday, October 22, 2013

Naton Investment, EFA, +0.6; a market top on Tuesday, October 22, 2013

Global Financials, IXG, -0.4; a blow off market top on Wednesday, October 23, 2013

Financials

IXG, -0.4

EMFN, -1.9

EUFN, -0.2

FEFN, -0.4

RWW, -0.7

KRE, +0.9

IAI, +0.4

KCE, +1.6

CHIX, -5.1 Benson te writes PBoC Tapers: China’s Interest Rate Markets Under Pressure

EPI, -0.5

BRAF, -2.3

Credit Services, AXP, MA, and V, rose to new all time highs this week.

Regions

EEB, -2.4

EEM, -1.3

VTI, +0.8

EZU, +0.8

EPP, -0.1

Nations

SPY, +0.9 ; the chart of the S&P 500, $SPX, shows a likely grand finale top of $,1759

IWM, +0.4

NKY, -2.4

EWI, -1.4

EWP, -1.4

EIRL, -0.1

EWN, +1.7

EWG, +2.4

EWGS, +1.7

GREK, +0.4

EWU, +1.8

EWUS, +0.4

TUR, +0.5

EGPT, +2.3

EWA, +0.6

KROO, +0.2

THD, -2.2

ENZL, -0.5

EWY, -1.6

EWT, -1.3

EPHE, -1.4

EWM, +1.8

ENZL, -0.6

ARGT, -0.4

The BRICS

EWZ, -0.9

EWZS, -2.0

RSX, -0.7

ERUS, -1.2

INP, -0.6

SCIN, -0.4

YAO, -3.4

ECNS, -2.1

Sectors

XTN, +2.4

FXR, +1.9

PSCI, +0.8

IGN, -3.1

PICK, +0.8

URA,  +6.2

REMX, -0.5

KOL, +1.0

WOOD, -1.4

GDX, +2.8, as GLD, +2.8

SIL, +7.1, and SSRI, 7.4, as SLV, +2.8

FLM, +0.4

SOCL, -4.3

RXI, +1.1

IBB, +2.3

RZV, +0.9

CARZ, -1.2

TAN,  -4.5

XSD, -4.2

SLX, -0.1

PKB, +2.5

KXI. +1.2

RXI, +1.4

IYC, +1.8

XRT, +0.1

BJK, -0.9

IHF, -2.3

PPA, +2.4, as BA, +7.1

IBB, +5.2

FPX, -0.1

PBS, -0.2

CSD, +1.8

FDN, -0.5

PNQI, -0.9

PJP, +0.9

Energy Sectors

PSCE, -1.4

XOP, -1.8

OIH, -1.7

Yield Bearing Sectors

XLU, +2.0

DBU, -0.3

PSP, +0.8

IYR, +1.7

FNIO, +1.5

REZ, +1.2

DRW, -0.3

IST, -1.0

Junk Bonds

JNK, +0.3

UJB, +1.4

Credit

FLOT,  +0.02

Aggregate Credit, AGG,  +0.2

Spot Gold, $GOLD, closed at $1,352; and the US Dollar, $USD, at 79.26

Christopher Thompson of FT writes “A burst of investor ‘animal spirits’ has boosted the value of mergers and acquisitions-related bonds to the highest raised since the financial crisis. Global acquisition-related bond issuance from non-investment grade, or high yield, companies has risen by 15% to $62.9bn for the year to date compared with the same period in 2012. This is the highest amount since 2007, according to Dealogic. Overall, global high yield issuance rose 18% for the year to date to $395.5bn, the highest ever. Much of the issuance came from Europe, where there have been signs of a tentative economic recovery in some areas since the height of the debt crisis, while many of the regions’ banks have been deleveraging.”

Business Insider posts Global Bellwether Caterpillar Had A Bad Quarter And Its Outlook Stinks.

Reuters reports US Jobless Claims Stay Elevated, Manufacturing Slows.

Market Watch posts Looming China Debt Crisis Resurfaces As A Market Fear

Zero Hedge writes There Will Be No Place To Hide

Prison Planet posts Gerald Celente Warns Of Collapse In 2014

Otterwood Capital writes A Crash Caused By Excess Debt. Wait, Haven’t We Already Seen This?

24hGold Gold And Silver As Standards Of Value

Robert Wenzel of Economic Policy Journal posts Carl Icahn’s Advice in the Age of Ben Bernanke

Shaun Richards asks Can Italy reverse the economic decline of the last twenty years?

3) … Dollar Collapse reports in its  Clean Tech News section

Grid-scale energy storage to support and compete with conventional generation – GreenTech Media

California passes huge grid energy storage mandate – GreenTech Media

Vivint adds half a billion dollars to residential solar finance surge – GreenTech Media

SolarCity PV deployments boom, more growth expected – Solar Plaza

First Solar to build California solar plant for Nextra – Solar Plaza

4) … An inquiring mind asks what is economics?

Benson te writes correctly Economics Isn’t A Science, And Never Will Be.

I comment relating that some ask me, are you a Republican or a Libertarian? I reply neither, I Am a reformed Christian, that is one remade by God, and a recovered Christian, one living in recovery of grace and truth. Those of political party will exist having political movement of some type to the end of this age. I have no fiat identity; rather I have identity out of Christ’s life, and life experience out of the His indwelling Spirit.  Republicans and Libertarians both know “will worship”, that is they worship out of their will, things of human philosophy, whereas I worship Chris’s will, out of respect for Scripture, and know a movement of His Holy Spirit. I add that Republicans and Libertarians will forever be divided on moral issues such as what constitutes life and same sex marriage, and they both will forever be divided on economic issues, that is ethical issues.

Economics is synonymous with ethics, as when one says he has economic regard on an issue, he is saying he has ethical regard on the issue. Every person acts in dispensation, that is in household administration of things civil, monetary and political, and these action come from one’s convictions in philosophy or religion. Thus economics is either a philosophy or a religion; economics is defined as the quality and type of ethical experience present between a person, and another or others, corporations and the state, that is government. Obamacare, that is HealthCare.Gov, tops the list as unethical experience, as Ilana Mercer writes in Economic Policy Journal Obamacare Is An Enterprise In Failure And Fraud.

An Benson te writes Quote of the Day: Law Is The Unconscious Creation Of Society  Law is not a body of commands imposed upon society from without, either by an individual sovereign or superior, or by a sovereign body constituted by representatives of society itself.  It exists at all times as one of the elements of society springing directly from habit and custom.  It is therefore the unconscious creation of society, or in other words, a growth.

This is from page 21 of the American Bar Association’s publication of James C. Carter’s 1890 essay “The Ideal and the Actual in the Law“. The source of the above quote Café Hayek’s prolific blogger and economic professor Don Boudreaux expounds on the James Carter quote

Legislators are legislation-makers; they are not lawmakers. True law can no more be consciously designed and created outside of the myriad social interactions that give rise to true law than can a true price be consciously chosen outside of the myriad economic interactions that give rise to true prices.  Commands that look to some people like law can be, and are, consciously designed and created.  But these are not law.  And because commands typically run against the spontaneous forces that give rise to law, such commands are typically against the law – just as a government-imposed price (or price control) results in something that looks like a price but is, in fact, not a true price at all.

European Federalist Foundation Bertelsmann Stiftung, and The Spinelli Group, present the book A Fundamental Law of the European Union. The financial crash and lengthy economic recession have tested the institutions of the European Union as never before. Debate about the future of Europe has polarized: Some want no more integration; others campaign for disintegration. Those who believe in deeper unity and a stronger federal Europe have yet to make their case. “A Fundamental Law” does this by offering a prospectus for radical reform. It amends the Lisbon Treaty to make the government of the EU more powerful and democratic. It embraces banking and fiscal union while showing the way forward to a legitimate settlement of Europe’s constitutional dilemma. Ten years after the Convention on the Future of Europe proposed its constitutional treaty, the Spinelli Group of federalist MEPs has drafted comprehensive proposals for an ambitious new treaty. Anyone who wonders how a more united Europe should best be governed should read this. The members of the next Convention will.

To both the above authors, I respond that I operate by the law of the Spirit of Life in Christ, as I know God, and He speaks to me,  While, I do not hear a voice in my head, I feel after God in my spirit and have consciousness therein, and write about economics, that is ethics; specifically I write the Dispensation Economics Manifest which presents the foundation for a life of virtue and godly ethics, establishing the elect as separate from the fiat, who live in carnality and iniquity.

The Dispensation Economics Manifest, is based upon Ephesians 1:10, the biblical revelation that Jesus Christ, is operating in dispensation, that is the household management plan of God to complete and fulfill all things in every age, epoch, era and time period. This contemporary form of dispensationalism presents Fifteen Corollaries, that is Fifteen New Things, which are coming by the Economy of God to establishing the New Normal.

On Wednesday October 23, 2013, Jesus Christ pivoted World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower from their recent rally highs, and is so doing pivoted the world out of the paradigm of liberalism, which featured the democratic nation state banker economy, and into the paradigm of authoritarianism, which features the regional governance and totalitarian collectivism beast economy. In so doing he destroyed the fiat money system and introduced the diktat money system.

Corollary #1 of the Dispensation Economic Manifest presents that the former paradigm featured bankers, corporations, government, entrepreneurs, and citizens of democracies, as the legislators of economic value and the legislators of economic life.  Now, under authoritarianism, currency traders, bond vigilantes and nannycrats working in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

The rule of law, consisting of constitutions and national laws, of the state banker system increasingly exists as tombstones of the bygone era of liberalism. Regional framework agreements serve as law for the nannycrat beast system of regional governance and totalitarian collectivism in the era of authoritarianism. Libertarians perceive of themselves as sovereign individuals, but there be only One Sovereign, that is Jesus Christ. On October 23, 2013, He opened the First Seal, Revelation 6:1-2, of the Scroll, Revelation 1:1, and released the Rider on The White Horse, who has a bow without any arrows, to effect global coup d’etat, passing the baton of sovereignty from sovereign nation states to sovereign regional nannycrats, such as Mario Draghi, and sovereign regional bodies, such as the ECB.

While, I’ve taken only three college courses in economics, Economics 101, 102, and 103, I took a lot of accounting courses, to graduate from Metro State College in Denver with a B.S. Degree in Accounting. And through recent reflection I’ve come to understand that with the trade lower in World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, on October 23, 2013, Jesus Christ is operating in what Apostle Paul presents as the Economy of God in Ephesians 1:10, to open the First Seal, Revelation 6:1-2, of the Scroll, Revelation 1:1, to do away with the economic law known as the Double Entry Bookkeeping System and establish His Millenium Kingdom.

Thus, the Jesus Story, that is the Jesus Narrative. Jesus Christ is going to wipe out 6,000 years of what will be a number of global empires, so as to establish a His Kingdom on planet earth for a Sabbath’s Day’s Rest for humanity. We are on the dawning of the New Age, we are entering the Third Day, and as Jesus Christ promised that on the Third Day, he would raise up His Body, that is His Church.  It is as the Apostle Peter who relates, that with the Lord, a day is as a thousand years, and a thousand years are as a day. Most definitely it has been two one thousand year days, and on the Third Day, Jesus Christ is going to resurrect the saints to rule and reign with Him for a thousand years. What a glorious day it will be.

Jesus Christ, in opening the First Seal of The Scroll, is commencing the greatest liberation movement the world has even seen or will see. He, by releasing the Four Horsemen of The Apocalypse, is acting as The Great Liberator, as He is returning to set mankind from sin, that is doubt, and death. Genuine Liberalism, that is the movement of setting mankind free from the state, is commencing.

5) … The short selling opportunity of a lifetime has emerged as the financial markets have turned from bull to bear the week ending October 23, 2013.

Not only did the S&P 500, but the Morgan Stanley Cyclical Index, ^CYC, which is approximated by Global Industrial Producers, FXR, and Vice Stocks, traded by the Fidelity Mutual Fund, VICEX, rose to a new all time high, while the Bear Market Fund, Grizzly Short Fund, GRZZX, traded to a new all time low. The June 24, 2013 to October 22, 2013 stock market rally, known as the PBOC Monetary Stimulus, and No Taper, and ECB Bank Supervision Rally, came to an end on October 23, 2013, as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, traded lower in value.

Bespoke Investment Group posts As Bullish Sentiment Is Rising, Bearish Sentiment Plummeted To 17.6%, which is the lowest reading since January 2012! We just sent out a report to clients showing how the S&P 500 has performed following prior periods in the current bull market where bearish sentiment dipped below 20%. Clients can view the report by clicking on the link below. If you are not currently a client, sign up today for a five-day free trial and instant access. Bearish Sentiment Declines Below 20%.

The Great Bear Market of 2013, commenced on October 23, 2013, as evidenced in the Market Off ETN, OFF, rising in value. In a bull market one buys into dips; in a bear market one sells into pips.

A short selling strategy: one could sell short the 40 ETFs/ETNs, IBB, PNQI, FDN, TAN, BJK, RZV, FPX, IST, FLM, CSD, PBS, IAI, PSCI, XTN, FXR, CARZ, XRT, EUFN, PJP, SMH, WOOD, PSP, RWW, PPA, SLX, RXI, ENZL, EIRL, GREK, EWP, YAO, TUR, ARGT, EPHE, SCIN, THD, EGPT, EWZS, EWY, UJB, seen in this Finviz Screener, for great future reward as these are high beta risk averse ETFs. And one could use the 10 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, what I term the market vane ETFs, as the basis for one’s margin account, as these will increase in value with rapidly growing financial instability, as carry trades, such as the EUR/JPY and the AUD/JPY start to aggressively unwind, and as credit becomes more expensive, as will be seen in the Short Term Bond ETF, FLOT, trading lower in value.

6) … Summary

On Friday October 25,2013, The stock market bubble of all times has formed as is seen in the leverage off stocks, ETFs, and mutual funds over debt.

World Stocks relative to Aggregate Credit, VT:AGG

Eurozone Stocks relative to EU Credit, EZU:EU

Nation Investment relative to World Treasury Bonds, EFA:BWX

Vice Stocks relative to Distressed Debt, VICEX:FAGIX

A summary of this week’s trading presents the following trading activity

World Stocks, VT, +0.6; a market top on Tuesday, October 22, 2013

Nation Investment, EFA, +0.6; a market top on Tuesday, October 22, 2013

Global Financials, IXG, -0.4; a blow off market top on Wednesday, October 23, 2013

The chart of the S&P 500, $SPX, SPY, shows an Elliott Wave V High Top at  $,1759

Please consider The Dispensation Economics Manifest, which is based upon Ephesians 1:10, the biblical revelation that Jesus Christ, is operating in dispensation, that is the household management plan of God to complete and fulfill all things in every age, epoch, era and time period. This contemporary presentation of dispensationalism presents Fifteen Corollaries, that is Fifteen New Things, which are coming by the Economy of God to establishing the New Normal.

On Wednesday October 23, 2013, Jesus Christ pivoted World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower from their recent rally highs, on fears that the world central banks’ monetary policies are no longer able to stimulate global growth and trade, nor able to maintain corporate profitability, nor secure ongoing democratic nation state treasury values, and is so doing pivoted the world out of the paradigm of liberalism, which featured the democratic nation state banker economy, and into the paradigm of authoritarianism, which features the regional governance and totalitarian collectivism beast economy. In so doing he destroyed the fiat money system and introduced the diktat money system.

The ANSAMed Anna Foundation report Italy’s Debt Hits Record High Of 133.3% Of GDP In 2nd Quarter, indicates the true nature of Italy’s sovereign capability. Its level of Treasury Debt, suggests that it is an insolvent sovereign. Its seigniorage does not come from risk appraisal between bond buyers and sellers, but rather from the ECB’s monetary policies of LTRO 1 and 2, as well as OMT. And the only reason why it has fiscal capability is because of what amounts to seigniorage aid from the word, will and way of central banker Mario Draghi.

The reality is that the periphery European nations, specifically the PIIGS, that is Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns, and the European Financials, EUFN, are insolvent banks. These cannot provide stable governance; it is only through regional integration and regional governance, with a footprint of supervised banking, leading to a banking union, as well as fiscal union, and statist economic governance overseeing the factors of production, as well as commerce and trade, that regional security, stability, and sustainability can be achieved.

News reports detail the development of Eurozone regional governance. Eventually a One Euro Government, that is a European Super State, featuring a fiscal union, led by nannycrats will provide fiscal policy governance, based upon schemes of debt servitude, where money and credit will closely controlled through a banking union, MSNBC reports EU Parliament Approves Legislation Creating A Single Banking Framework For the Eurozone … Bloomberg reports the development of the Eurozone of a fiscal union relating Euro Capitals Tighten Fiscal Leash as EU Starts Austerity … Reuters reports the foundation of a banking union relating The ECB names 130 European Banks for supervision.

William F. Jasper provides a history of efforts that have been leading the development of a Federal Europe in New American article United States Of Europe:An End To Nationhood. Mr Jasper highlights Hilaire du Berrier who presented a story from the diary of Joseph Retinger that illustrates how the CFR’s agents built the movement for European merger.

Retinger was seeking more funds for the European Movement, which was headed at the time by Belgian Prime Minister Paul Henri Spaak, who was known as “Mr. Socialist. Joseph Retinger recruited Prince Bernhard of the Netherlands to host the meeting at the Hotel Bilderberg in Oosterbeek, Holland in May 1954, that launched the annual secretive Bilderberg conclaves, at which the international ruling elite meet to scheme and palaver.The first concrete step forward in the plan for abolition of the European nation-states came in 1951 with the signing of the treaty creating the European Coal and Steel Community (ECSC).

In his valuable research, Mr. Jasper provides details of how numerous individuals contributed to the development of the European Union, naming for example Monsieur Monnet, whom columnist Joseph Alsop (CFR) dubbed “the good, gray wizard of Western European union,” was appointed the first president of the powerful new ECSC.

Monnet knew full well just how powerful and revolutionary his new creation was. The Brombergers report in Jean Monnet and the United States of Europe that, when Monnet and his “brain trust” had outlined the basics of the ECSC proposal, they called in legal expert Maurice Lagrange to take care of the detail work:

Lagrange was stunned. An idea of revolutionary daring had been launched and was being acclaimed by the Six and the United States, a minerals and metals superstate.

The brain trust worked feverishly from ten o’clock in the morning until midnight, without taking Sundays or holidays off, not even Christmas day. Even the secretaries and the office boys were infected by the general excitement, by the feeling that they were part of a fantastic undertaking.

The Brombergers, who are ardent admirers of Monnet, admit the totalitarian mindset of their hero.

Gradually, it was thought, the supranational authorities, supervised by the European Council of Ministers at Brussels and the Assembly in Strasbourg, would administer all the activities of the Continent. A day would come when governments would be forced to admit that an integrated Europe was an accomplished fact, without their having had a say in the establishment of its underlying principles. All they would have to do was to merge all these autonomous institutions into a single federal administration and then proclaim a United States of Europe.

The next nail in the coffin of national sovereignty came on March 25, 1957 with the signing by the six ECSC nations of the two Treaties of Rome. These created the European Economic Community (EEC, or Common Market) and the European Atomic Energy Community (Euratom), which greatly furthered the merging of the economic and energy sectors of the member states. (The ECSC, Euratom, and EEC are now collectively referred to as the European Community or EC.) “The EEC Treaty,” said Carroll Quigley, “with 572 articles over almost 400 pages … looked forward to eventual political union in Europe, and sought economic integration as an essential step on the way.” But the merger architects settled on an approach of “patient gradualism”; what Richard N. Gardner (CFR) would later call “an end run around national sovereignty, eroding it piece by piece.” According to the late Professor Quigley, “This whole process was to be achieved by stages over many years.”

The next stages involved bringing the rest of Western Europe into the fold. In 1973, after more than two decades of resisting, the United Kingdom came in, along with Ireland and Denmark. Greece joined in 1981, bringing the number of member states to ten. Spain and Portugal became the 11th and 12th members in 1986.

The CFR spared no expense in aiding its European co-conspirators, especially Jean Monnet, to establish their dreamed-of Brave New World. A very enlightening source on this phenomenon is Insider Ernst H. van der Beugel, Honorary Secretary General of the Bilderberger Group, Vice Chairman of the Netherlands Institute for Foreign Affairs (a CFR affiliate), Harvard lecturer, etc. In his book From Marshall Aid to Atlantic Partnership, van der Beugel explained, Not only has Monnet been the auctor intellectualis of many steps on the road to European unification, he has also been a driving force in the execution of existing plans. His most remarkable capacity has been his great influence on the formulation of United States policy towards Europe. He exercised this influence through a network of close friendships and relationships, some of them going back to the pre-war period.

The principal assaults underway now include the campaigns for a European central bank, led by French President François Mitterrand, and the unified value added tax (VAT) being pushed by Jacques Delors. The major opposition to both schemes has come from Britain’s Margaret Thatcher. “A European Central Bank, in the only true meaning of the term, means surrendering your economic policy to that banking system,” said the British Prime Minister in October of 1988. “I neither want nor expect ever to see such a bank in my lifetime — nor, if I am twanging a harp — for quite a long time afterwards.”

But there are indications that the “Iron Lady” may have weakened on this matter. Du Berrier, in a recent telephone interview with The New American,  expressed grave concern over rumors that Mrs. Thatcher “may have cut some sort of deal with Mitterrand on the issues of a central bank and a common currency” during her visit with the French socialist president in Paris at the end of February.

Basil Venitis in Venitism, a blog calling for a new libertarian paradigm which integrates politics, economics, ethics, and spirituality, weeps European Countries Are Losing Their National Sovereignty.

We want the Netherlands not just out of the Eurozone, but out of the EU altogether, including the so-called Schengen area, the group of 26 European countries that have abolished passport and immigration controls at their common borders. We reserve the right to reinstall random border controls. We want to retain our independence. We want home rule! We want to be the masters in our own house! We want to be the masters over our own borders. We want to be the masters of our own money. The Party for Freedom wants the Netherlands to leave the EU and join the European Free Trade Association EFTA. But here is the good news, my friends.

We seem to be on the eve of a major and truly historic event. In Europe, the time is ripe for a glorious democratic and non-violent revolution to preserve our national freedoms and restore our sovereignty.

Next year’s European elections offer a unique opportunity to liberate the nations of Europe. Next Spring’s European elections offer a unique chance to correct the fatal error made by previous politicians who sold away their taxpayers’ money and their national sovereignty to Brussels.

As a European politician, I am fully aware of my duty to grab this chance. The European elections next May must deal a blow to the parties that sold us out to the EU. Not just in the Netherlands. But everywhere in Europe. That is why I do what is in my power to forge an alliance of democratic parties standing for the restoration of the sovereignty and freedom of their nation. I want to bring these parties together in a common endeavor to defend our identity and our values. I do not know whether I will succeed, but I am trying. It is my conviction that we have to work together. Because we are all in the same boat.

My friends, it is easy to despair. Time is running out for Britain, for France, for Germany, for the Netherlands, for all the other great nations of Europe. The present situation in Europe is bleak. If we do nothing, it will become even bleaker. If we do nothing we will be swept away by economic and demographic disaster. The nation-state is the political body in which we live. We must preserve and cherish it. So that we can pass on to our children our national identity, our democracy, our liberty.

Fraser Cameron, Senior Adviser, European Policy Centre, Adjunct Professor, Hertie School of Governance, Berlin posts in CFR Blog The European Union As A Model For Regional Integration. This essay examines the state of the European Union post-Eurozone crisis, and assesses the European Union’s prospects as a model for regional integration efforts around the globe.

I relate, the rule of law, consisting of constitutions and national laws, of the state banker system increasingly exist as tombstones of the bygone era of liberalism.  Regional framework agreements serve as law for the nannycrat beast system of regional governance and totalitarian collectivism in the era of authoritarianism. Libertarians perceive of themselves as sovereign individuals, but there be only One Sovereign, that is Jesus Christ.

On October 23, 2013, He opened the First Seal, Revelation 6:1-2, of the Scroll, Revelation 1:1, and released the Rider on The White Horse, who has a bow without any arrows, to effect global coup d’etat, passing the baton of sovereignty from sovereign nation states to sovereign regional nannycrats, such as Mario Draghi, and sovereign regional bodies, such as the ECB, as the June 24, 2013 to October 22, 2013 stock market rally, known as the PBOC Monetary Stimulus, and No Taper, and ECB Bank Supervision Rally, came to an end with World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, trading lower in value, on the ECB announcement of ECB oversight of 130 European Banks.

Liberalism’s banker regime is being replaced by authoritarianism’s beast regime; as foretold in bible prophecy of Revelation 13:1-4.  All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The periphery nations, that is the PIIGS, will exist as hollow moons revolving around planet Belgium and planet Germany. The Portugese, Irish, Italians, Greeks and Spaniards, can be neither Belgians nor Germans, yet all will be one, living in a gulag of austerity and debt servitude existing under the word, will, and way of sovereign regional technocrats.

The only two forms of sovereign and sustainable wealth are diktat, and the physical possession of gold and silver bullion. Jack Chan writing in Safehaven chart article, This Past Week in Gold, gave his buy signal to the Gold ETF, GLD.

Liberalism Attains Peak Sovereignty, Peak Seigniorage, Peak Prosperity, And Peak Clientelism, As A Deal Is Brokered To Increase Debt Limit, Fund Obamacare, And Reopen The Government After A Partial Shutdown

October 21, 2013

Financial market report for the week ending Friday October 18, 2013

1) … This weeks financial market trading.

On Wednesday, October 16, 2013, AP reports Senate Leaders Announce Deal to Avoid Default and Open Government. Senate leaders announced last-minute agreement Wednesday to avert a threatened Treasury default and reopen the government after a partial, 16-day shutdown. Congress raced to pass the measure by day’s end. And Reuters reports Wall Street climbs as Senate leaders announce fiscal deal. And AP reports Cruz won’t delay vote on bipartisan budget deal.

Mike Mish Shedlock writes Deal Brokered To Continue Bickering Through February 14. Boehner’s End Obamacare (and Lower Spending) proposals did not have a chance in the Senate,and thus were a big waste of time and energy, with Republicans taking the blame for the shutdown.

European Financials, EUFN, rose 0.6%, as Ireland’s Bank, IRE, rose 6.3%, and Spain’s Banco Santander, SAN, rose 2.7, to new rally highs. The Too Big To Fail Banks, RWW, rose 1.8%.

World Stocks, VT, rose 1.1%, and Nation Investment, EFA, rose 0.8%, both rising near their September 20, 2013, highs.  US Stocks, VTI, 1.4%, rose to a new rally high. Eurozone Stocks, EZU, 1.0%, rose to a new rally high.

Nasdaq Large Caps, QQQ, rose 1.2%, to a new rally high.

Global Industrial Producers, FXR, rose 1.0% to a new rally high, with Boeing, BA, 1.8%, achieving  a new rally high.

Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging World Currencies, CEW, such as the Indian Rupe, ICN, rose strongly near their September 20, 2013, highs.

The Australian Dollar-Japanese Yen currency carry trade, AUD/JPY, rose to close higher at 94.32, taking Australia, EWA, and New Zealand, ENZL, to new rally highs.

And, The Euro-Yen currency carry trade, EUR/JPY, rose to close higher at 133.63, taking Eurozone Stocks, EZU, Ireland, EIRL, Spain, EWP, Italy, EWI, to new rally highs.

Stock sectors rising strongly included the following:

Nasdaq Biotechnology, IBB 3.1%, includes stocks such as Gilead Sciences GILD, 3.2%, and Celgene, CELG, 2.0%

Energy Production, XOP 2.8%, includes stocks such as PXD, 6.1, CLR, 3.1 NBL, 2.8, APC, 1.8, COP 1.5, EOG, 1.4, all to new rally highs

IPOs, FPX 1.8%,

Spin Offs, CSD, 1.8%

Retail, XRT 1.7%

Health Care Providers, IHF, 1.5%, to a new rally high

Internet Retail, FDN, 1.5%

Yield Bearing Sectors rising strongly included

Leveraged Buyouts, PSP 1.6%, to a new rally high, includes stocks such as Delphi, DLPH

Global Telecom, IST 1.5%, to a new rally high

Aggregate Credit, AGG, rose, as the Interest Rate on the US Note, TNX, closed at 2.67%. Liberalism’s metric of credit liquidity, Flot, FLOT, rose to a new rally high, as Ultra Junk Bonds, UJB, and Junk Bonds, JNK, rose strongly; Build America Bonds, BABS, Zeroes, ZROZ, 30 Year US Government Bonds, EDV, and US Treasuries, TLT, also rose strongly, taking Aggregate Credit, AGG, higher.

Liberalism, the age of investment choice, is based upon world central bank policies of investment choice and schemes of leveraged credit and leveraged carry trade investment, is attaining peak sovereignty, peak seigniorage, and peak prosperity, on October 16, 20123, as Republican Senator Boehner failed to defund Obamacare, and ceded to Democrat demands for an increase in the debt limit, and reopened the government after a partial shutdown.

Obamacare and massive ongoing deficit spending defines Liberalism’s peak democratic nation political experience. The CNBC report Vast Majority Of Obamacare Exchange Visitors [99.6 percent] Don’t Enroll, suggests that Obamacare is a disaster waiting to happen, when it fully comes on line as Elizabeth Lee via Casey Research writes in Zero Hedge Ten Things to Expect from Obamacare in 2014

On Thursday, October 17, 2013, In the wake of the political deal in Washington to fund Obamacare and raise the US Debt, World Stocks, VT, rose 1.0%, to a five year high, Nation Investment, EFA, rose 1.3%, and Global Industrial Producers, FXR, rose, 0.8%, all rallying to new highs, on monetization of debt stemming from a sell of the US Dollar, $USD, which traded strongly lower to close at 79.72, as the Euro, FXE, blasted strongly higher to 135.35. 

The Finviz daily chart presentation of the Euro, FXE, at 135.35, is truly an awesome thing; it’s terrific that the Euro would rise to its February 2013 level given the fact that the European Banks, EUFN, are loaded to the gills with really worthless PIIGS sovereign debt.  The Euro’s strength is not a function of  free market place trading between buyers and sellers of nation state treasury debt; but rather the Euro has been given seigniorage by the sovereignty of one man, that being the ECB’s Mario Draghi. Not only is the Euro standing at 135.35 an awesome thing, it is truly and epic, and pivotal thing; and it is also a terminal thing.

Benson te communicates that the profound strength of the Euro is a product of Mario Draghi’s’ vision and intervention. ECB’s Mario Draghi’s “do whatever it takes to save the euro” via a bond buying guarantee program [the unused Outright Monetary Transactions (OMT)] as well as the previous or OMT’s predecessor Long Term Refinancing Operations (LTRO). The LTRO has also functioned as credit subsidies to the banking system. The LTRO, the ECB learned lately, has entrenched the dependence of the banking industry, where the latter can hardly wean away from the LTRO without disorderly adjustments. Also the Spanish government via Social Security Funds and other public pensions, as well as, the banking (€225 bn in March) and financial sectors have been made to support sovereign bond prices. The banks likewise use these bonds as collateral to draw loans on the ECB. By keeping rates low, banks and the Spanish government benefits from these political subsidies financed by the economy.  I comment that the ECB certainly has role has been greatly extended beyond its price stability mandate, to be actively involved in supporting EU economic policies.

The US Dollar’s dramatic fall lower is seen in the chart of the 200% ETF, UUP, trading parabolically lower, as currency traders bought the Major World Currencies, DBV, such as FXB , FXF, FXS, FXE, FXA, FXC, and FXY, and Emerging Market Currencies, CEW, such as BZF, ICN, which can be seen in the trading of these financial instruments in their Finviz Screener

With this week’s strong trade in Euro-Yen currency carry trade, that its the EUR/JPY, FXE:FXY, and the Australian Dollar-Yen currency carry trade, AUD/JPY, FXA;FXY, coupled with the strong surge in risk free lending, seen in the chart of the short term credit ETF, FLOT, which is translated into a parabolic rise in World Stocks, VT, it is reasonable to perceive that peak fiat money has been achieved, and that Major World Currencies, DBV, an Emerging Market Currencies, CEW, will be trading lower, as investors pivot from risk-on investing to risk-off investing, deleveraging out of risk assets.      

Global Financials, IXG, rose a stunning 1.3%, higher, taking Nation Investment, EFA, 1.3%, higher. The world’s leading banks can be followed in this Finviz Screener.

European Financials, EUFN, rose 1.5%, with Ireland’s Bank, IRE, rose, 5.8%, The National Bank of Greece, NBG, 4.4%, Spain’s Banco Santander, SAN, 2.0%.  These banks drove Ireland, EIRL, up 0.9%, Greece, GREK, up 4.0%, Spain, EWP, up 1.5%, and Italy, EWI, up 1.2%. The rise in European Financials drove Eurozone Stocks, EZU, up 1.1%, and blasted Eurozone Debt, EU, up 2.0%. 

The Too Big To Fail Banks, RWW, rose 0.7%, and Regional Banks, KRE, 0.6%, taking US Stocks, VTI, up 0.7%, the S&P, SPY, up 0.7%, and the especially credit and carry trade sensitive Russell 2000, IWM, up 0.9%.

South Korea’s Banks, KB, rose, 3.9%, WF, 2.8% and SHG, 2.3%, taking South Korea, EWY, 1.0% higher.  

Australia’s Westpac Bank, WBK, rose 2.9%, taking Australia, EWA, 1.5%, Australia Small Caps, KROO, 1.3%, and New Zealand, ENZL, 1.3%, higher.

The UK’s Bank, LYG, rose 2.3%, taking, the UK, 1.7%, and UK Small Caps, EWUS, 1.8%, higher. 

Switzerland’s Bank, CS, rose 1.5%, and UBS, rose 1.5%, taking Switzerland, EWL, 2.2% higher.

Other nations trading higher included the following. In Asia, Thailand, THD, 1.8%, the Philippines, EPHE, 1.5%. In South America, Argentina, ARGT, 1.3%. In Europe, Norway, NORW, 1.7%, and Sweden, EWD, 1.3%.

Sectors trading higher included

Home Building, ITB, 3.2

Spin Offs, CSD, 1.5

Pharmaceuticals, PJP, 1.5

Solar Energy, TAN, 1.2

Small Cap Pure Value, RZV, 1.2

Aerospace, PPA, 1.1

Transportation, XTN, 1.1

Paper and Lumber Producers, WOOD, 1.1

IPOs, FPX, 1.1

Small Cap Industrials, PSCI, 1.0

Of note, Global Consumer Staples, KXI, which had been strongly sold off rose 1.5%.

Yield bearing sectors trading higher included

Global Real Estate, DRW, 1.5

Real Estate, IYR, 1.6

Mortgage REITS, REM, 2.8

Industrial and Office REITS, FNIO, 1.7

Residential REITS, REZ, 1.7

Small Cap Real Estate, ROOF, 1.0

Utilities, XLU, 1.6

US Telecom, IST, 1.6

Leveraged Buyouts, PSP, 1.2

Global Utilities, DBU, 1.0

Shipping, SEA, 1.0

The chart of Euro-Yen currency carry trade, EUR/JPY, presented as FXE:FXY, trading higher at 33.92, together with the chart of Australian Dollar-Yen, AUD/JPY, currency carry trade, presented as FXA:FXY, trading unchanged at 94.31, communicate the zenith of liberalism’s schemes of carry trade investment.   

The rise in the credit ETF FLOT, to an all time high, and strong rise in Ultra Junk Bonds, UJB, and Junk Bonds, JNK, communicates the zenith of liberalism’s schemes of credit.

Aggregate Credit, AGG, rose strongly as The Interest Rate on the US Ten Year Note, ^TNX, dropped sharply to 2.59%, and the Steepner ETF, STPP, dropped sharply to close at 38.95. Debt rose strongly as follows:

International Treasuries, BWX, 1.3

Long Duration Corporate Bonds, BLV, 1.0

Emerging Market Bonds, EMB, 0.8

Mortgage Backed Bonds, MBB, 0.4

Government Bonds, GOVT, 0.4

Zeroes, ZROZ, 1.8

30 Year US Treasuries, EDV, 1.7

10 Year US Government Notes, TLT, 0.9

On October 17, 2013, liberalism is achieving peak fiat wealth, as stocks rose beyond their No Taper Rally highs of September 20, 2013 to rally strongly higher. Liberalism’s flagship investments include, Boeing, BA, BE Aerospace, BEAV, Celgene, CELG, and Dow Chemical, DOW.

The concept that peak money is being achieved on October 17, 2013, is seen in Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading up to strong resistance; look for competitive currency devaluation to recommence drawing these lower once again, as bond vigilantes call the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.59%.  

The strong rise in European Financials, EUFN, taking the Eurozone Stocks, EU, and Eurozone Debt, EU, to stratospheric levels, is truly unprecedented, and is something beyond irrational exuberance, something beyond tulip mania, best described by Nature Economist Elaine Meinel Supkis as Attaining Infinity; something that only the gods can experience.  The leverage of the Euro, EURUSD, is seen in the Stockchats.com chart of Eurozone Stocks, EZU, relative to Eurozone Debt, EU, … EZU:EU.  

Liberalism’s gods be the US Dollar Hegemonic Empire, with its deficit spending and provision of Obamacare, the Milton Friedman Free To Choose Banker Regime, Mario Draghi OMT credit liquidity, and the Eurozone’s Austerity Hawks; these are reigning in peak sovereignty on October 17, 2013.

Keynesian Ambrose Evans Pritchard writes of liberalism’s peak Eurozone technocratic governance fiscal policy Ireland: The Poster Child Of Internal Devaluation And Austerity. Labour leader Eamon Glimore has long been grumbling that EU ideologues treat his country like “some type of economic experiment for austerity hawks”.

To the extent that Ireland is recovering, this is because its people are formidably enterprising and have an ultra-open economy with a high enough trade gearing to withstand the combined shock of a fiscal squeeze equal to 19pc of GDP and a double-digit collapse of the money supply.

The Celtic Tiger has never been seriously uncompetitive within the euro, and it needs no lessons on free markets from Brussels. It places 15 on the World Bank’s ease of doing business index, the best EMU state after Finland, compared to: Portugal (30), Spain (44), Italy (73), and Greece (78). Note that Ireland has slipped from 7th place since it submitted to EU suzerainty three years ago. As the Irish trade unions have said all along, Troika medicine is brutish austerity and nothing else.

Germany’s Wolfgang Schauble repeated this week that Ireland can expect no help on legacy assets. “Ireland did what Ireland had to do and now everything is fine,” he said. Whether everything is fine is a matter of dispute. Ireland’s budget deficit is still 7.3pc of GDP. Public debt is 123pc, near the point of no return. “The debt is massive. There is almost no domestic growth. In the end they are going to need debt restructuring,” said Ms Greene. US investor Franklin Templeton made a fortune buying up a tenth of Ireland’s debt stock in the dark days, and so have others. Ireland’s 10-year yields are down to 3.67pc. Kudos to them, but Moody’s still rates Irish debt as “junk”, citing the risk of economic stagnation for the debt trajectory. Household debt is still 200pc of income (IMF), while the assets that underpin it are greatly shrunken after a 57pc fall in house prices. Mortgages in arrears by 180 days are at a record 17 percent.

Whether or not Ireland can pull through depends on trade, and in this respect the country tells us nothing about prospects for Club Med. Irish exports of goods and services are 108 pc of GDP, compared to: Portugal (39pc), Spain (32pc), Italy (30pc), and Greece (27p). In other words, it is three times easier for Ireland to claw its way back to viability through trade, and even so it has not been easy. The ‘patent cliff’ — as Viagra and Lipitor go generic — has cut exports by 17pc over the last year. Yet the country at least has a current account surplus of 2.3pc of GDP. Its great gamble two decades ago has paid off. The niche industries of IT, pharma, and financial services have all reached critical mass.

No doubt large pockets of Spain can replicate this feat. The Basque country comes to mind. But Spain has a much bigger hill to climb. It has turned a deficit of 10pc of GDP five years ago into a 1.3pc surplus this year, but chiefly by crushing internal demand. The export surge has tapered off.

The IMF says gains in Spanish unit labour costs (ULC) are a productivity illusion caused by mass unemployment. The harsh reality is that Spain’s net international investment position is still minus 90pc of GDP and even in depression with a jobless rate of 26pc the country still imports too much to cover this imbalance.

Nothing is written in stone. Whether Ireland or any other EMU victim state can claw its way back to viability depends on the actions of the ECB. If Frankfurt reflates aggressively, Ireland can undoubtedly make it, and perhaps Spain as well in an ideal world. If it continues to let debt-deflation run its course, even the poster child is doomed.

Liberalism’s sovereigns, these being US Dollar Hegemonic Empire, with its deficit spending and provision of Obamacare, the Milton Friedman Free To Choose Banker Regime, Mario Draghi OMT credit liquidity, and the Eurozone’s Austerity Hawks; have given stunning seigniorage to fiat assets, completing liberalism’s age of investment choice, bringing its schemes of credit and currency carry trade investment, to their zenith, establishing peak seigniorage on October 17, 2013.  Zero Hedge reports Stocks Best 6-Day Swing in 20 Months As USD Collapses And Gold Soars. And Tyler

Durden writes in Zero Hedge communicating peak clientelism Entitlement Nation, Now And Forever.

Ambrose Evans Pritchard further relates Washington Truce Stretches Out Debt Crisis. Festering political conflict as “a Sword of Damocles”, with politicians facing three more showdowns until March. And Mr Pritchard also writes China’s Soaring Fiscal Deficit Rings Alarm Bells

As interest rate risk rises, the Steepner ETF, STPP, will once again rise in value. It rose in value, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened beginning in May 2013, running through September 1, 2013, as bond vigilantes gained control of the Interest Rate on the US Ten Year Note, $TNX, causing a steepening of the 10 30 US Sovereign Debt Yield Curve, that is $TNX:$TYX. But then from early September to October 4, 2013, the Steepner ETF, STPP, declined in value, as the Interest Rate on the US Ten Year Note, $TNX, fell to its October 4. 2013, rate of 2.65%; and then on October 7, 2013, the Steepner ETF, STPP, took a real hit, trading lower, in strong volume, to close at 39.30. And on October 17, 2013, the current rise in the Steepner ETF, STPP, closed strongly lower  at 38.95. When the steepener ETF, rises once again, not only will it communicate a steepening yield curve, but also a defining indicator, of the sea-saw destruction of liberalism’s fiat money.

Jesus Christ acting in the economy of God, that is in the administration of all things economic and political, a concept presented by the Apostle Paul in Ephesians 1:10, to oversee the completion and fulfillment of Liberalism’s age of investment choice, and its policies of credit liquidity and carry trade investing; where the Milton Free To Choose, Floating Currency, Banker regime, based upon the sovereignty of democratic nation states, has provided seigniorage. The Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Far East Financials, FEFN,  Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, have produced a terrific moral hazard based peak prosperity.

Through His empire building process, He has produced the US Dollar Hegemonic Empire that spans the globe, existing as the best example of a kick-ass, might makes right, government. Jesus has always been efficient in producing kingdoms. And now Liberalism stands at its zenith of dominion, with banking and nation state despots ruling at will. The Telegraph reports The Sun Is Setting On Dollar Supremacy, And With It, American Power. And Liu Chang writes in xinhuanet US Fiscal Failure Warrants a De-Americanized World. And Spiegel write US Democracy Is Nearing Its Limit.  And Follow the Money writes The Twilight Of American Hegemony.

In contrast, authoritarianism is emerging as the age of diktat based upon debt servitude, where there are no central bank monetary policies providing rewards for investment choices, only regional nannycrat policies of diktat, establishing regional governance and totalitarian collectivism.

All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The Irish, Greeks, Italians, and Belgians cannot be Germans, yet all will be one, living under the word, will, and way of sovereign regional technocrats. Debt servitude, poverty and austerity is the object of the Lord’s new endeavor.

Authoritarianism features the Beast Regime, where leaders will meet in summits and workgroups to waive national sovereignty and establish regional pooled sovereignty, as The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1-2, is effecting coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule in public private partnerships, providing seigniorage through oversight of the factors of production, commerce, banking and trade, all for regional security, stability and sustainability. In as much as the banker and nation state model is gone, there is no International Reserve Currency; rather there are regional alliances which feature undollar economic transactions, featuring regional currencies and regional bartering arrangements, as seen in the Iranian.com report China Pushes Yuan To Freeze Out The US.

Jesus Christ, acting in the economy of God will be overseeing the exhaustion of the US Fed’s monetary policies of easing, which came as the provision of QEternity, constituted a crossing of the Rubicon of sound monetary policy, and will be destabilizing global economics, and pivoting the world from liberalism’s Banker regime of democratic nation states, into authoritarianism’s Beast regime of regional governance and totalitarian collectivism, as presented in Revelation 13:1-4.

The bust phase of the business cycle, comes after the boom phase, which came through world central bank monetary intervention, will be resolved by ten kings rising in authority and power, to establish regional integration for regional security, stability, and sustainability, as Revelation 17:12, relates, “The ten horns of the Beast are ten kings who have not yet risen to power. They will be appointed to their kingdoms for one brief moment to reign with the beast”. Satan, Lucifer, The Devil, is in control of the Beast, as Revelation 12:6, relates, “And there was seen another sign in heaven; and behold, a great red dragon, having seven heads and ten horns, and upon his heads seven diadems.”

Bible prophecy reveals that God has destined eight empires to rule over humanity; the first five empires are Babylon, Medo-Persia, Greece, The Old Roman Empire, The Ten Kingdoms, Daniel 2:25-45, the sixth is the Great Tribulation, Daniel 7:25, the seventh is the Millennial Kingdom, Revelation 20:1-6, and the eighth is The Everlasting Kingdom, Daniel 7:27. 

Major World Currencies, the Japanese Yen, FXY, the Euro, FXE, the Canadian Dollar, FXC, the British Pound Sterling, FXB, the Swedish Krona, FXS, the Swiss Franc, FXF, and the Australian Dollar, FXA, as well as Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, and the Indian Rupe, ICN, as well as Stocks, DBV, and Bonds, BND, will all be falling into the Pit of Financial Abandon, as investors find that liberalism’s sovereigns, these being THE Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Far East Financials, FEFN,  Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, will no longer be able to provide seigniorage, by leveraging fiat money higher over debt. This being seen in the chart of World Stocks, VT, relative to Aggregate Credit, AGG … VT:AGG .. trading lower in value. Stocks will no longer be leveraging higher on credit and currencies: fiat money literally will be disintegrating on the collapse of nation state sovereignty.

Out of a soon coming Financial Armageddon, that is a credit bust and financial system breakdown, presented in Revelation 13:3-4, authoritarianism’s new sovereigns, that being regional nannycrats, as well as Europe’s Sovereign, described in Revelation 13:5-10, and his partner, the Eurozone’s Seignior, Revelation 13:11-18, will rise to power, establishing regional sovereignty and providing diktat money to replace fiat money.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal policy councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, for Eurozone wide fiscal governance, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke all kinds of mandates for regional security, stability, and sustainability.

These leaders, that is nannycrats include, Jeroen Dijsselbloem, President of the Eurogroup meeting of euro-zone finance ministers, Olli Rehn, Vice President of the European Commission responsible for economic and monetary affairs, Michel Barnier, EU Commissioner responsible for internal market and services, Klaus Regling, Managing Director of the European Stability Mechanism, Werner Hoyer, President of the European Investment Bank, who in the WSJ op-edited credit for the Eurozone’s economic recovery, as well as Jorg Asmussen, Member of Executive Board of the ECB, Viviane Reding, European Commissioner for Justice, Fundamental Rights and Citizenship.

And diktat money is seen in countries with high current account deficit, such as in India, where import duties have been declared on the import of gold, and the import of gold coins banned; and such as in Indonesia, where curbs are placed on the import of luxury cars and some branded goods.

Said another way, the extinguishment of Nation Investment, EFA, on the failure of credit and carry trade investment, will destabilize liberalism’s nation state sovereignty, and its banker seigniorage.

The new economic and political paradigm of authoritarianism, will rise through sovereign insolvency and banking insolvency, as foretold in Revelation 13:3-4, that being a Minsky Moment, where European leaders will renounce national sovereignty, pool regional sovereignty, and announce regional framework agreements that appoint regional nannycrats sovereign, who will oversee the seigniorage of public private partnership, as they issue mandates for regional security, stability, and sustainability.

Liberalism is characterized by trust in bankers, stock brokers, and asset managers, to the point of being insestious, through US Fed and other world central bank monetary policies such as POMO. But authoritarianism is characterized by trust in the word, will and way of the regional nannycrats; so much so that the Apostle Paul wrote in Revelation 13:3-4, that All the world marveled and followed the beast; so they worshiped the dragon who gave authority to the beast; and they worshiped the Beast.

Soon, Nation Investment, EFA, will trade lower on awareness that the US Fed’s monetary policies no longer stimulate global growth and trade, and have actually turned” money good” investments bad, as well as on awareness of European nation state political and banking instability.

Fiat money will be dying soon, and will be seen in World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower, terminating the sovereignty of democratic nation states and terminating the seigniorage of the world central banks. Confirmation of such will be seen in THE Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Far East Financials, FEFN,  Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, trading lower in value.

There has been an unprecedented and truly fantastic strong drive for risk assets, such as Small Cap Pure Value Stocks, RZV, Solar Energy, TAN, Resorts And Casinos, BJK, Clean Energy, PBD, Global Utilities, DBU, Small Cap Industrials, PSCI, Steel Producers, SLX, Stock Brokers, IAI, Global Telecom IST, and Semiconductors, XSD, driven by the credit and carry trade investing.

Correspondingly, the demand for genuinely safe assets, that is something of worth, not something of fiat mandate, has been quite low. But this is changing, as gold is going higher, and will heading awesomely higher, very soon as investors derisk out of credit enabled and carry traded risk assets.  Spot Gold, $GOLD, will be trading consistently higher from its recent low of $1,260; the Gold ETF, GLD, will be trading consistently higher from its recent low of 122.

On October 17, 2013, the chart of Spot Gold, $GOLD, rose to $1,320; and the chart of the Gold ETF, GLD, rose to 127; on a strongly lower US Dollar, $USD, which closed at 79.72. Business Insider posts 50 Charts That Every Gold Investor Will Love. And Gregor Horvat of EWForecast writes in Safehaven.com chart article GOLD Breaking Out Of Downward Channel; Two Elliott Wave Counts Are Pointing Towards 1375

Gold Miners, GDX, such as EGO and IAG, GDXJ and Silver Miners, SIL, SILJ, SSRI, seen in this Finviz Screener, rose strongly on the day; Nelson Hem writes in Benzinga Gold Miners Sqw Their Short Interest Plunge More Than 60 Percent. And Energy Producers, XOP, and Small Cap Energy, PSCE, rose even as Bloomberg reports Crude Drops As API Reports Increase in U.S. Inventories.

Railroads, led by Union Pacific, UNP, seen in this Finviz Screener, traded lower. Yahoo Finance Chart of S&P Transports, XTN, and Railroads, shows that the Railroads have been lagging investment growth for the last week.

On Friday, October 18, 2013,

The chart of the S&P 500, $SPX, traded by the ETF, SPY, rose 0.7% for the day, to complete a 2.5% rise for the week, to stand at an Elliott Wave 5 High, saluting liberalism’s peak sovereignty, as seen here in chart in George Krum Safehaven.com article The State Of The Trend at a price of 174.39.  

Stephen Dinan of The Washington Times reports, “US debt jumped a record $328 billion on Thursday, the first day the federal government was able to borrow money under the deal President Obama and Congress sealed this week. The debt now equals $17.075 trillion, according to figures the Treasury Department posted online on Friday. The $328 billion increase shattered the previous high of $238 billion set two years ago. The giant jump comes because the government was replenishing its stock of ‘extraordinary measures’ , the federal funds it borrowed from over the last five months as it tried to avoid bumping into the debt ceiling. Under the law, that replenishing happens as soon as there is new debt space. In this case, the Treasury Department borrowed $400 billion from other funds beginning in May, awaiting a final deal from Congress and Mr. Obama.”

The chart of the US Dollar, $USD, closed the week down 1.0% at 79.68. Chris Ciovacco posts the Safehaven.com chart article Markets Pop On Weak US Dollar, communicating that it was an ugly week for the US Dollar.  

Inasmuch as the US Dollar is the world’s reserve currency and has been driven terrifically lower by the currency traders supporting a rally in risk assets, an ugly week for the US Dollar, $USD, translates into the death of the Milton Friedman Free To Choose Floating Currency System, and the speculative leveraged banker remine that rode this workhouse into the ground. The world now stand at Peak Currency. Inasmuch as chart show Peak British Pound Sterling, FXB, Peak Euro, FXE, Peak Indian Rupe, ICN, Peak Brazilian Real, BZF, and Peak Australian Dollar, FXA, have been achieved, the world is going to experience massive and quick competitive currency devaluation at the hands of the currency traders as they sell currencies short, which will be made even more intense at the hands of the bond vigilantes as they call interest rates higher globally on World Treasury Bonds, BWX, and Emerging Market Bonds, EMB.  

The chart of the AUD/JPY closed up at 94.59, taking Australia, EWA, and Australia Small Caps, KROO, higher. The Geek Knows presents The Daily Chart of the AUDUSD, and remarks, Looking at the AUD/USD  we note that the currency pair left the previous region behind and climbed further on the heels of bullish momentum. And ForexAchievers presents The Weekly Chart of the AUDUSD, and remarks, This is the AUD/USD, as you can see on this chart, the pair is hitting a support turned resistance area.

The chart of the EUR/JPY closed at 133.87, taking Eurozone Stocks, EZU, higher. ActionForex presents the Chart of the EURUSD. I comment that it certainly has attained strong resistance. 

The chart of FLOT, closed at 50.69, and Ultra Junk Bonds, UJB, closed at 54.55, both indicating ongoing credit liquidity

Small Cap Energy, PSCE rose 1.4%, and Energy Production, XOP rose 1.3%

Sectors trading higher included

Nasdaq Internet, PNQI 3.5%

Internet Retail, FDN 3.2

Resorts and Casino, BJK 2.0

Solar Stocks, TAN 2.0

Small Cap Pure Value, RZV 1.8

Media, PBS 1.6

Nasdaq Internet, QQQ 1.6

Small Cap Industrial, PSCI 1.4

Global Industrial Producers, FXR 1.2

China Industrials, CHII 1.2

Computer Spin Offs, CSD 1.2

Networking, IGN 1.2

IPOs, FPX 1.1

Design Build, FLM 1.1

Stockbrokers, IAI 1.1

Transportation, XTN 1.0

Retail, XRT 1.0

Countries trading higher included

Greece, GREK 3.8%

Argentina, ARGT 2.1

Egypt, EGPT 1.5

Sweden, EWD 1.4

Norway, NORW 1.2

Australia, EWA 1.2

Australia Small Caps, KROO 1.3

US Small Caps, IWM 1.1

Yield Bearing Sectors trading higher included

Leveraged Buyouts, PSP 1.1%

Health Care Providers, IHF, WLP, UNH, ESRX, WLP, AET, CI, traded strongly lower. 

Summary of financial market activity for the week ending Friday October 18, 2013

Doug Noland writes in Safehaven.com Terminal Phases Upon this week’s legislation to reopen the government and raise the debt ceiling, the President stated that there were “no winners.” Yet equities (and, more generally, financial asset) investors and speculators did just fine.

I relate that sectors rising the week ending October 18, included the following, with the more risky assets clearly outperforming all others.

Energy Production, XOP 6.2% and Small Cap Energy Production, PSCE 4.1%.

Solar Stocks, TAN 6.2%, #1 ETF with year-to-date performance of 152% gain.

Social Media, SOCL 5.1, #2 ETF with year-to-date performance of 60% gain.

Enviornmental Services, EVX 4.9

Nasdaq Internet, PNQI 4.5, #3 ETF with year-to-date performance with 53% gain.

Internet Retail, FDN 4.3, #5 ETF with year-to-date performance with 47% gain.

Resorts and Casinos, BJK 4.2

Computer Spin Offs, CSD 3.8

Small Cap Pure Value, RZV 3.7

IPOs, FPX 3.6

Paper and Lumber Producers, WOOD 3.5

Stockbrokers, IAI 3.5

Global Industrials, PSCI 3.3

Transportation, XTN 3.3

Pharmaceuticals, PJP 3.2

Media, PBS 3.0

Biotechnology, IBB 3.0 #5 with ETF year-to-date performance with  50% gain.

Yield Bearing Sectors trading higher included

US Telecom, IST 4.0%

Leveraged Buyouts, PSP 3.8

Countries trading higher included

Greece, GREK 8.6% as NBG rose 20.6%

Argentina, ARGT 5.7

Australia Small Caps, KROO 5.5

Spain, EWP 4.8  as SAN rose 7.5%

Ireland, EIRL 4.4 as IRE rose 14.1%

Italy, EWI 3.1

The strong rally in Eurozone periphery nation equity markets drove down the corresponding Treasury Debt rates, as Doug Noland writes Ten-year Portuguese yields increased 2 bps to 6.15% (down 60bps y-t-d). Italian 10-yr yields fell 11 bps to 4.16% (down 34 bps). Spain’s 10-year yields declined 4 bps to 4.24% (down 103 bps).

Debt trading higher included

Ultra Junk Bonds, UJB 3.0%

Doug Noland continues, On a weekly basis, I track global central bank International Reserve Assets (data from Bloomberg). This data provide a decent proxy for global financial flows, especially to the emerging markets (EM). From $6.63 TN back in April of 2009, International Reserves surged this week to a record $11.415 TN. Reserves have inflated 330% in ten years. Reserve Assets showed atypically slow growth between May 10th ($11.124 TN) and September 20th ($11.174 TN), not coincidentally a period a heightened EM instability. Courtesy of the Fed, BOJ, and Chinese, the “money” spigot was reopened.

China’s International Reserves jumped a notable $164bn during the third quarter to a record $3.660 TN (from $250 billion when Dr. Bernanke joined the Fed back in 2002). This compares to Q2 growth of $54bn. The People’s Bank of China this week stated that trade and capital-related inflows were again bolstering excess: “The pressure for monetary and credit expansion is still large.” Myriad data, including stronger-than-expected 7.8% Q3 growth, support the view of a meaningful pickup in Chinese activity. And while the consensus sees China’s recovery as fundamental to a bullish global backdrop, I’ll offer a contrary opinion.

My Macro Credit thesis holds – and there is ample fundamental support for – the view that we’re now five years into history’s greatest global Bubble. I have posited that China is deep into its “Terminal Phase” of Credit excess. With China’s 1.35 billion people and Trillions of unrestrained Credit expansion, I’ll argue China’s “Terminal Phase” is integral to the overall “Terminal Phase” of a most protracted and dangerous global Credit Bubble.

In general, post-2008 global monetary inflation pushed EM to precarious “Terminal Phase” Bubble excess, leaving deep wounds of economic maladjustment and financial fragility.

I believe the initial cracks in the EM Bubble developed this spring. Market turbulence from May and June provoked further global monetary accommodation, which somewhat reshuffled the deck in the global liquidity chase. And I wouldn’t be surprised if history looks back at this period as a final manic speculative blow-off in U.S. and global equities.

Despite generally bullish sentiment, I continue to believe that China faces serious imminent issues. Chinese officials in early June moved belatedly to try to rein in runaway Credit excesses. Not surprisingly, an increasingly powerful Credit expansion and attendant asset Bubbles were impervious to cautious attempts to restrain mortgage and local government borrowing. When they resorted to more aggressive actions in June, financial and economic fragilities forced officials to quickly retreat from tightening measures. And, not surprisingly, Credit excess bounced right back as powerful as ever.

The value of China’s September residential apartment sales surged 34% from August to $113bn. Year-to-date sales are running up about 35% from 2012. After bouncing back strongly in August (almost doubling July), September’s total system Credit growth (“social financing”) was reported at a stronger-than-expected $230bn. This puts year-to-date “social financing” at about $2.25 TN, a pace almost 20% above a record 2012. Some reports have mortgage Credit growing at a rate about 50% faster than last year. Forecasts are calling for Q4 corporate bond issuance to jump to $135bn from Q3′s $40bn.

There are multiple facets of “Terminal Phase” Credit Bubble excess at play today in China. In asset-based lending Bubbles, the rapid growth in both transactions and prices combine for exponential growth in underlying mortgage Credit. It’s worth recalling that annual U.S. mortgage Credit growth increased annually from 1997′s $313bn to 2003′s $1.011 TN to 2006′s $1.410 TN. Importantly, along with the exponential rise in mortgage borrowing comes a corresponding spike in the riskiness of late-cycle lending booms. Indeed, and fundamental to Credit Bubble analysis, “Terminal Phase” excesses foster an unsustainable parabolic rise in Credit and economic risks. Systemic stability becomes a major concern anytime circumstances dictate that officials prolong the “Terminal Phase.”

The surge in risky credit tends to have myriad distorting effects on financial and economic systems.

On the financial side, increasingly creative/aggressive risk intermediation is required to transform progressively risky mortgage debt into more “money”-like instruments palatable to savers, speculators and institutional holders. In the U.S. and now in China, so called “shadow banking” came to play an instrumental role. Here in the U.S., 2006′s $1.0 TN of subprime CDOs (collateralized debt obligations) provided the fateful risk intermediation mechanism. In China’s historic “shadow bank” Bubble, there is huge ongoing growth in trust deposits and various “wealth management” vehicles. A rapidly expanding chasm – between the perceived safety of “money”-like deposits/savings vehicles and the mounting risks inherent in system Credit – is fundamental to “Terminal Phase” processes and fragilities.

There is another key “Terminal Phase” dynamic at work in the Chinese Bubble, as was (and remains) the case in the U.S and elsewhere. As late-cycle financial and economic Bubble risks grow exponentially, policymakers turn increasingly timid. Powerful Bubble Dynamics become impervious to policy “tinkering,” while officials come to see the environment as too risky to implement the type of stringent (pain-inflicting) tightening measures required to quash (now well-entrenched) inflationary biases and rein in increasingly destabilizing excess. The above reference to “serious imminent issues” reflects my expectation that the Chinese are likely gearing up for another stab at restraining Credit Bubble excess. It’s reasonable to presume they won’t do anything that would cause serious disruption. Yet, from my perspective, if they are serious about disrupting an increasingly destabilizing Bubble, there is no way around major global ramifications. And with international securities markets turning more intensely overheated by the week, this creates a potentially volatile dynamic.

There were more rumblings out of Beijing this week. At this point, it’s difficult to gauge whether they are more frustrated with Congress or the Federal Reserve. One of these days they may even be willing to rein in their Credit system and let the global chips fall where they will. Perhaps even one of these days global policymakers may actually part ways in what has been to this point concerted efforts to reflate global economies and markets. Over time, when monetary inflation’s fog begins to break, those on the losing end of inflationary processes begin to see things a little more clearly.

I conclude that the 40 ETFs presented in this Finviz Screener, which can be replicated in a Finviz Portfolio, to experience sharp deleveraging. These are IBB, PNQI, FDN, TAN, BJK, RZV, FPX, IST, EVX, CSD, PBS, IAI, PSCI, XTN, FXR, CARZ, XRT, EUFN, PJP, XSD, WOOD, PSP, RWW, PPA, RXI, SOCL, ENZL, EIRL, GREK, EWP, YAO, TUR, ARGT, EPHE, SCIN, THD, EGPT, EWZS, EWY, UJB,

And I conclude, that the 10 ETFs presented in this Finviz Screener, which can be replicated in a Finviz Portfolio, to experience appreciation. These are OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY; and could serve as the basis of margin short selling account.

As Mr. Noland relates “The surge in risky credit tends to have myriad distorting effects on financial and economic systems”. Risky credit is seen the demand for Ultra Junk Bonds, UJB, as well as margin credit and currency carry trade lending which fueled the great gains in the above listed ETFs.

John Detrixhe of Bloomberg reports, “Carry trades are making investors the most money in more than a year after U.S. budget brinkmanship pushed back estimates of when the Federal Reserve will begin paring its monetary stimulus program. Deutsche Bank AG’s G-10 FX Carry Basket index has gained 4.6% since Aug. 30, poised for its biggest two-month gain since rising 4.8% from June to July 2012. Confidence in trades where investors borrow in countries with low interest rates and use the proceeds to invest in those with higher rates has also been supported by the lowest volatility since January.”

Soon bond vigilantes will call the Interest Rate on the US Ten Year Note, $TNX higher from 2.59, where easily seen in its chart, stands an Elliott Wave 2 Down, and is now ready to enter an Elliott Wave 3 Up . And the Steepner ETF, STPP, will rise from 38.81, and that currency carry trades, in particular the EURJPY, and the AUDJPY, will unwind as competitive currency devaluation gets underway as currency traders successfully sell Major World Currencies, DBV, and Emerging Market Currencies, CEW, short. And for a period of time, the Yen, FXY, will be falling and the US Dollar, $USD, rising, causing investors to delverage and derisk out of stocks. 

Thus, I expect that both the JPY/USD Exchange Rate, JYN, seen its chart value of 58.48, and the Yuan, CYB, seen in its chart value of 26.45, to rise, as Fion Li of Bloomberg relates “The yuan had its biggest weekly gain in a year as data showed China’s economic expansion accelerated in the third quarter. The currency climbed to a 20-year high today after the People’s Bank of China boosted its fixing by 0.1% to 6.1372 per dollar, the strongest since a peg to the greenback ended in 2005.”

In summary, the October 2013 Reopen The Government, Raise The Debt Ceiling and Fund Obamacare Rally, comes on the tailwinds of the September 2013 No Taper Rally, driving the S&P 500, SPY, as well as World Stocks, VT, to five year highs, producing liberalism’s peak experience. 

Michael S. Derby of THE WSJ reports, “Chicago Fed leader Charles Evans said ‘I expect our overall stance of monetary policy to remain highly accommodative for some time to come … It is not yet time to remove accommodation.’ ”  And Vivien Lou Chen Bloomberg reports, “Fed officials must do ‘whatever it takes’ to push for faster return to full employment while keeping inflation near 2%, including possibly providing more stimulus, Minneapolis Fed Pres. Narayana Kocherlakota said. Fed should keep current stimulus in place even if asset prices rise to unusually high levels, leading to concerns about ‘bubbles,’ Kocherlakota said. ‘It may not be easy to stick to this path,’ yet benefits in terms of employment gains ‘will be significant’. ‘Doing whatever it takes in the next few years’ means FOMC ‘is willing to continue to use the unconventional monetary policy tools that it has employed’. Low levels of inflation show FOMC has ‘lot of room’ to provide ‘much needed stimulus to the labor market’, there’s ‘considerable monetary policy capacity’.”

In response, to both the US Fed’s No Taper Announcement, and Washington’s reopening the government, raising the debt ceiling, and funding Obamacare, investors drove the Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Far East Financials, FEFN,  Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, to new rally highs, as is seen in their combined ongoing Yahoo Finance Chart, communicating Liberalism’s peak economic and investment experience.  

The economic and political paradigm of liberalism stands at its zenith, as the Banker Regime has established a Washington US Dollar Hegemonic Empire, greatly rewarding investment choice providing a moral hazard based prosperity, based upon schemes of credit and carry trade investing.

Thus, the world is at an epic inflection point.

Jesus Christ, operating in the Economy of God, as revealed by the Apostle Paul in Ephesians 1:10, that is operating in the administration of all things economic and political, is pivoting the world into the economic and political paradigm of authoritarianism, where the Beast Regime will establish the Ten Toed Kingdom of regional governance and totalitarian collectivism, where diktat provides  “the new normal” of austerity, based upon schemes of debt servitude and unified regional fiscal policy governance.    

Jordan Shilton of WSWS writes Irish Government Unveils New Austerity Budget. The Fine Gael Labour coalition has outlined new austerity measures, including €1.6 billion in spending cuts aimed at the most vulnerable.  And The Irish Independent reports Ireland’s Health Minister Reilly To Cut 1,000 Jobs In Bid For €666m Savings.  And Bloomberg reports Euro Capitals Tighten Fiscal Leash as EU Starts Austerity

The Apostle John revels in Revelation 13:1-4 that the aim of Jesus Christ is to pivot the world out of democratic nation state governance and reward for nation state investment, and into regional governance and reward of regional security, stability and sustainability, where the fiat money system is replaced by the diktat money system.  

While liberalism was characterized by what Doug Noland terms wildcat finance where bankers waived magic wealth wands of credit and carry traded investing, authoritarianism will be characterized by what I term wildcat governance where nannycrats yield oppressive austerity clubs of debt servitude.

Martin Banks of the UK Telegraph reports, “Marine Le Pen aims to set up radical, anti-Europe faction in the European parliament with help of Geert Wilders, the Dutch MP. The leader of France’s far-Right party has vowed that the European Union would ‘fall like the Soviet Union’ as she conspired to form what would be the most radical faction yet seen in the European parliament. Marine Le Pen, buoyed by a weekend by-election triumph in southern France, criticised the EU as a ‘global anomaly’ and pledged to return the bloc to a ‘cooperation of sovereign states’. She said Europe’s population had ‘no control’ over their economy or currency, nor over the movement of people in their territory. ‘I believe that the EU is like the Soviet Union now: it is not improvable,’ she said. ‘The EU will collapse like the Soviet Union collapsed.’” 

Jim Brunsden of Bloomberg reports, “In their campaign to bring the financial industry under control, European Union policy makers have a deadline problem. The EU, which took three decades to clear such milestones as defining chocolate and setting up a common patent, has just months to create a system to handle failing lenders. It’s the biggest step toward building a banking union that its leaders say is essential to preventing a rerun of the euro debt crisis. Without a deal before European Parliament elections in May, the politicians and bureaucrats who have been working on the project since it was announced in June 2012 risk leaving the European Central Bank lacking a critical tool when it starts supervising euro-area lenders next year.”

Jeff Black and Boris Groendahl of Bloomberg report, “The European Central Bank is sizing up just how tough it wants to get with the region’s lenders. Policy makers at the ECB will this week try to agree on the ground rules of its three-pronged probe into the health of the 130 banks it will start supervising next year. The process will stress-test balance sheets for exposure to sovereign debt as well as push institutions to admit to more of their bad debt than they have before, according to three officials who spoke on condition of anonymity.”

Andrew Frye of Bloomberg reports, “Former Prime Minister Mario Monti, the economics professor who imposed austerity on Italy in 2011, quit the leadership of his political party after criticizing the policies of his successor, Prime Minister Enrico Letta. Monti stepped down as president of Civic Choice, the third- biggest party in Letta’s coalition, because his objection to the government’s 2014 budget put him at odds with 12 of the party’s senators, Monti said… The 12 senators gave what amounted to ‘a motion of no confidence in me’ when they expressed satisfaction with the budget, Monti said. ‘I accept it.’”

2) …Mike Mish Shedlock foresees the election of a national leader and nation exit from the Eurozone, yet Mario Draghi calls for a more perfect union.

Austrian economist and libertarian Mike Mish Shedlock writes Eventually, Nation Exit. Eventually, there will come a time when a populist office-seeker will stand before the voters, hold up a copy of the EU treaty and (correctly) declare all the “bail out” debt foisted on their country to be null and void. That person will be elected. Le Pen may be too early, and France may not be that country, but the time will come. Greece, Finland, Germany, Belgium, and even France are possibilities. All it will take, is for one charismatic person, timing social mood correctly, to say precisely one right thing at exactly the right time. It will happen.

Mario Draghi, President of the ECB, in address before the Harvard Kennedy School, in Cambridge, MA, on October 9, 2013, heralds Europe’s Pursuit Of A More Perfect Union.

Mr. Draghi calls for moving beyond “ever closer union” presented in the Preamble of the European Treaty, to a “more perfect union” … stating … “I will argue that a single market necessarily has political implications, in which a partial sharing of individual and national sovereignty can be the best means to preserve that sovereignty. Second, I will explain how the concepts of a banking union and a strengthened fiscal setup are supportive of the single market and the single currency.”

I comment that the word perfect has many meanings; these include …. the best, just right, ideal, pure, …. mature, full attainment, accomplished, final, complete, fully developed, …. indefatigable, …. supreme, cardinal, sovereign.

Mr Draghi’s call for unity is more in line with bible prophecy than Mr. Shedlock’s vision of freedom.

The Apostle John, while in his 90s living in exile on the Isle of Patmos, was given a dream by Angels, and wrote the details in the Book, The Revelation of Jesus Christ, which in bible prophecy foretells “those things which must shortly come to pass”, Revelation 1:1, meaning that once end-time world events start to occur, they will fall in place, all occurring  in a connected order, just like lined-up dominoes, topple one upon another, when given a genesis or starting event.

Liberalism featured the Banker regime, and was built on the sovereignty of democracy nation states and provided the banker driven seigniorage of government treasury bonds to provide investment profit, and serve as the foundation to develop global trade, as well as to grow corporate profitability.

Jesus Christ acting in the economy of God, that is in the administration of all things economic and political, a concept presented by the Apostle Paul in Ephesians 1:10, is overseeing the completion and fulfillment of liberalism’s Banker Regime, and introducing authoritarianism’s Beast Regime, which is God’s design for the mature, complete, indefatigable, supreme, and cardinal plan for mankind’s economic and political life.

The Beast Regime will have its genesis out of Financial Apocalypse, that is a credit bust and global financial system breakdown, foretold in Revelation 13:3-4, producing sovereign insolvency and banking insolvency.

Out of chaos, national leaders will meet in summits and workgroups to waive national sovereignty and establish regional pooled sovereignty, as THE First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1-2, will effect coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule sovereignly in public private partnerships, providing seigniorage through mandates of oversight of the factors of production, and all commerce, banking and trade, for regional security, stability and sustainability. An austerity union, featuring fiscal consolidation, is coming to the Eurozone; it is simply a matter of destiny, the fulfillment of God’s will.

Under authoritarianism, the banker and nation state model no longer exists, and there is no International Reserve Currency. There are regional alliances which feature undollar economic transactions, such as regional currencies and regional bartering arrangements, as seen in the Iranian.com report China Pushes Yuan To Freeze Out The US.

All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The periphery nations, that is the PIIGS, will exist as hollow moons revolving around planet Belgium and planet germany. The Portugese, Irish, Italians, Greeks and Spaniards, can be neither Belgians nor Germans, yet all will be one, living in a gulag of austerity and debt servitude existing under the word, will, and way of sovereign regional technocrats.

Liberalism featured a moral hazard based prosperity; but authoritarianism feature a debt servitude based poverty and austerity, with as BBC reports Angela Merkel, The Triumphant Queen of Austerity, Edle Astrup Tshuki writing, Merkel, The Unelected “Mutti” Of Europe, leading the way forward.   

Mr. Draghi continues with the details of his vision for a More Perfect Union relating the principle, Sharing sovereignty in a single market. The more difficult question in Europe is the degree to which powers must be transferred to the supranational level to support the single market, or put differently, how much sovereignty needs to be shared. In my view, one way to approach this question is by considering more carefully what we mean by sovereignty.

John Locke, in his second treatise of government, affirms that the sovereign exists only as a fiduciary power to act for certain ends. It is the ability to achieve those ends that defines, and legitimises, sovereignty. I see this positive view as essentially the right way to think about sovereignty. From a single currency to a banking union. The implications of the decision to set up a genuine single market are not limited to the creation of the single currency. The single currency itself has consequences, of which the most pressing is a banking union. The establishment of a banking union has been agreed by the Heads of State and Government in Europe and is now being delivered in stages, starting with the single supervisory mechanism. This has been entrusted to the ECB and has recently been approved by the European Parliament. We trust that a single resolution mechanism will enter into force by the beginning of 2015.

We are thus moving these functions to the European level to ensure that the single currency is matched by a single banking system. And this is consistent with the positive definition of sovereignty I gave earlier: a genuine banking union can give citizens more trust in their money than can different national approaches. A banking union can play a major role in breaking the vicious circle we see in Europe between banks and their sovereigns. But there is also a strong onus on governments to ensure that sovereign debt performs its expected function in the financial system – that is, as a risk-free, safe asset.

Let me therefore briefly turn to fiscal policies.

The implications for fiscal policies. It is welcome that governments in the euro area have made significant progress in consolidating their budgets, and hence removing some sovereign risk from the financial system. The primary fiscal deficit for the euro area has fallen from 3.5% of GDP in 2009 to around 0.5% in 2012. In the United States, by comparison, it was around 6% of GDP in 2012.

That said, we need to ensure time consistency. We all know the experience of the first decade of the euro. Fiscal rules enshrined in the Maastricht Treaty were not sufficiently binding; market discipline likewise did not work in an effective way. For this reason, the ECB has long argued in favour of moving towards more effective rules in the fiscal domain. We are convinced that they are crucial for the stability of the common currency in the longer term. I am therefore encouraged that policy-makers in Europe have been taking significant steps to strengthen the common fiscal rules.

These steps include new ways of dealing with countries that do not comply with recommendations from the European Commission. They include giving the Commission the right to inspect national budgets before they go before national parliaments – a power the US federal government does not have over the states. And they include inserting balanced budget rules into their national constitutions or equivalent. We look forward to a full and transparent implementation of this new regime.

These changes do to some extent represent a transfer of powers to the European level. But as with a banking union, I do not view it as a loss of sovereignty. Rather, I see the strengthening of the fiscal pillar in a manner that lends credibility to fiscal policies as a way to restore the efficacy of policy: for the Union as a whole, as countries are less affected by spillovers from fiscal difficulties in an integrated financial market; and also for the Member States themselves.

This budget stabilisation capacity through the automatic stabilisers is diminished if governments are unable to run a deficit at the low point of the cycle – or put differently, if the credit of the government deteriorates to the point where its debt is no longer regarded as a safe asset. Indeed, if the credit of the government is impaired, and behaves like private credit, then government’s relative cost of borrowing increases at precisely the time when it needs to borrow.

One can see this as the real loss of sovereignty. It prevents national governments from using normal fiscal policy for macroeconomic stabilisation. In this sense, steps that restore faith in public credit, such as more credible fiscal rules, restore the ability of governments to exercise the functions that citizens expect from them. This is particularly important in a monetary union where the burden of macroeconomic stabilisation cannot be entirely shifted onto the shoulders of the central bank. Our monetary policy mandate is to deliver medium-term price stability in the euro area as a whole. Fiscal policy has to absorb idiosyncratic or asymmetric shocks at a national level

Looking forward. Overall, the changes taking place in the euro area are making our monetary union more robust. At the national level, consolidation and structural reforms are helping most countries reach a more sustainable external position.

At the European level, we are approaching a balance of competencies which, taken in combination, should provide more effective stabilisation.

That said, it would seem misplaced to exclude that over time the euro area may move to a new equilibrium. Integration is a dynamic process and we need a certain degree of humility about where it will lead.

If we look at the US, we see that it strengthened its union in different stages, with each stage eventually begetting the next. The creation of the Federal Reserve System in 1913, for example, was followed twenty years later by the creation of the FDIC, a key pillar of America’s banking union. The federal budget also developed significantly at this time.

In Europe today, we are in some ways undergoing an analogous process. It is not analogous in the sense that the destination is the same. We do not know this. What is analogous is the guiding principle. Like the US, our orientation is pragmatic and driven by a desire for policy efficacy and to provide the functions citizens expect of government. We are then drawing the policy conclusions that follow, at the time when they are relevant.

(European commentators) mistook the euro for a fixed exchange rate regime, when in fact it is an irreversible single currency. And it is irreversible because it is born out of the commitment of European nations to closer integration, a commitment which, as the Nobel committee recognised last year, has roots in our desire for peace, security and transcending national differences.

In related article Bloomberg reports Draghi Turns Judge on Europe Banks as ECB Studies Balance Sheets. The European Central Bank is sizing up just how tough it wants to get with the region’s lenders. Policy makers at the Frankfurt-based ECB will this week try to agree on the ground rules of its three-pronged probe into the health of the 130 banks it will start supervising next year. The process will stress-test balance sheets for exposure to sovereign debt as well as push institutions to admit to more of their bad debt than they have before.

Revelation 13:1-2 presents the concept that the Beast System, with its ten horns and its seven heads, will rule over mankind in the last days. The Beast’s ten horns are ten regions of economic and political power and authority. The Beast’s seven heads are mankind’s seven institutions; these being 1) Education, 2) Banking, Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science and Technology. Each of these seven institutions will increasingly be integrated with each other, in totalitarian collectivist regional governance, in each of the world’s ten regions.

This monster will emerge out of Financial Apocalypse, that is a global credit bust and financial system breakdown as foretold in Revelation 13:3-4, and more specifically out of sovereign insolvency and banking insolvency of the periphery and southern European periphery nations of Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, that is the so called PIIGS, as these nations are at the epicenter of an ever growing debt burden relative to GDP,  to become a European Super State, which is based on the Euro Currency, FXE, whose economic rubble will be seen in the devastation of the Eurozone Stocks, EZU. Across the Atlantic Ocean, a growing intertwining of institutions will eventually produce a North American Continental Government, that is a North American Union; which is already underway as The United States Canada Regulatory Council Seeks Input on Boosting US-Canada Regulatory Cooperation.

The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1, is effecting coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule in regional governance and totalitarian collectivism. Thus, leaders from each of the seven institutions who will increasingly be working in statist public private partnerships for regional integration, as they oversee the factors of production to manage regional commerce and trade, to establish regional security, stability and sustainability; in the Eurozone this will manifest as a strong economic union, banking union, and fiscal union, to address fiscal dominance, financial repercussions and regional divergences.

The Beast System of Revelation 13:1-2, is the same as the Fourth Beast of Daniel 7:7, whose mission is to pulverize mankind in ten regions of regional governance and totalitarian collectivism. The Little Horn seen in Daniel 7:8, is a person, Europe’s Sovereign, Revelation 13:5-10, the Second Beast of Revelation Chapter 13. He will rise to power with the Seignior, that is Euroland’s top dog banker and religious leader who takes a cut, Revelation 13:11-18, the Third Beast of Revelation Chapter 13.

3) … The Four Horsemen Of The Apocalypse Are Riding Through The Financial Markets, The Environment, And The World At Large, as Jesus Christ is opening the first four seals of the scroll to commence the beginning of birth pangs of calamities presented in Jesus’ Olivet Discourse, Matthew 24:5-8, that precede the day of the Lord’s wrath; like labor contractions, these escalate in frequency and intensity before the Great Tribulation.

Thomas R. Schreiner of Credo Magazine presents Christ The Redeemer. We read in Revelation 5:9-10, “Worthy are you to take the scroll and to open its seals, for you were slain, and by your blood you ransomed people for God from every tribe and language and people and nation, 10 and you have made them a kingdom and priests to our God, and they shall reign on the earth.” In v. 9 we return to the theme of worthiness. Jesus is worthy to open the sealed book because he was slain. And what did he accomplish by his death? He ransomed some from every tribe, tongue, language, people and nation. This verse doesn’t say that he potentially ransomed some from every tribe, tongue, people, and nation. It says that he actually purchased some from every tribe, tongue, people, and nation. God honors the blood of his Son that it has actually won redemption for some from every people group.

Orett S of The Living Word Of God writes The Prophetic Seals Most of Revelation, about two thirds of its content, is devoted to the seventh seal. The contents of the first six seals are found in chapter 6 alone; concerning these particular afflictions, Jesus had earlier warned that “all these are the beginning of sorrows”, or “of birth pains” signifying calamities that would, like labor contractions, escalate in frequency and intensity before the end. He also said: “Do not be terrified; for these things must come to pass first, but the end will not come immediately”, Luke 21:9.

Bails of Desiring To Know God More Deeply writes Chapter 6 Is The Beginning Of A New Section Of Material In The Book Of Revelation, where we encounter three sets of seven with interludes: seven seal, seven trumpets, and seven bowls (6:1-16:21). For reasons we shall see along the way, I take these three series of sevens to be cycles which intensify with each cycle, repeating common themes and each ending with a description of the second coming (6:12-17, 11:15-19, 16:17-21). You should think of this as you would a piece of music, with chord progressions that cycle and have interludes, and where each cycle intensifies the previous one.

Alan Kurschner, of Eschatos Ministries, amplifies by asking, Are the Seven Seals of Revelation’s Scroll the Wrath of God Because Jesus Opens Them Up? The individual seals … function as conditions that must happen before God’s wrath, not expressing God’s wrath itself. The scroll represents the title deed of earth and only King Jesus is “worthy” to open it, because he alone is worthy to rule the world (see Revelation 5). The contents of the scroll are the trumpet and bowl judgments, which function to transfer the title deed of the earth that belongs to Satan over to the ownership (rule) of Jesus. Before the scroll is opened there are seven seals on the scroll which serve as conditions that must be met before the scroll is opened.

Seal 1. First Horseman. the rider on the white horse, signifying conquest over mankind.

Scripture Reference: (Rev 6:1-8 NIV) I watched as the Lamb opened the first of the seven seals. Then I heard one of the four living creatures say in a voice like thunder, “Come!” {2} I looked, and there before me was a white horse! Its rider held a bow, and he was given a crown, and he rode out as a conqueror bent on conquest.

The Greek word “crown” here is “stephanos” or “conqueror’s crown”. Economic and political conquerors will arise, effecting bloodless economic and political coups, to establish regional oligarchies of state corporate rule. Leaders will emerge to shape and mold foreign policy such as the Project For The New American Century has done with US Foreign Policy and the Ahtisaari plan for establishing Kosovo as a sovereign nation state. And leaders will announce Security and Prosperity Framework Agreements, which replace traditional and constitutional law. Stakeholders will be appointed oversee natural resources, and manage the economic institutions of finance, banking, commerce, investment and trade. Society will become more pyramidal in shape. Eventually, a global king will rise to rule over mankind.

Arlen L Chitwood notes the difference between the Greek words “stephanos” and “diadema”, relative to the Antichrist and his kingdom. Stephanos is used of the type crown worn by the Antichrist, when he is first introduced in the book of Revelation (6:2), but later diadema, is used relative to his exercise of delegated power and authority, (12:3; 13:1, 2).

This current world belongs to Lucifer and his angels, who use every evil and erroneous thing, to enable those of the world, to conquer over good and truthful principles and processes.

The Libertarians hold that one is a sovereign individual, these include: the individual anarchists, (Lysander Spooner), the anarcho-capitalists (Murray Rothbard, John Locke), the constitutionalists (Chuck Baldwin), the fiscal libertarians (Kristin Davis), the objectivists (Ayn Rand), the libertarian economists (Milton Friedman), the left-libertarians (Noam Chomsky), and the anarcho surrealists (Andre Breton). Yet, God has appointed the rider of the white horse sovereign; and he will triumph eventually over all who believe they are sovereign.

Seal 2. Second Horseman. the rider on the red horse signifying violence.

Scripture Reference: {3} When the Lamb opened the second seal, I heard the second living creature say, “Come!” {4} Then another horse came out, a fiery red one. Its rider was given power to take peace from the earth and to make men slay each other. To him was given a large sword.

Seal 3. Third Horseman. the rider on the black horse, signifying increasing famine, price inflation and financial death.

Scripture Reference: {5} When the Lamb opened the third seal, I heard the third living creature say, “Come!” I looked, and there before me was a black horse! Its rider was holding a pair of scales in his hand. {6} Then I heard what sounded like a voice among the four living creatures, saying, “A quart of wheat for a day’s wages, and three quarts of barley for a day’s wages, and do not damage the oil and the wine!”

The cry to not “damage” the oil and wine could represent attempts to safeguard the pockets of abundance against plundering. An alternative meaning is that there is practically no oil and wine left; that would also fit with the admonition that what is left not be harmed—lest there be none left at all.

Financial death will come as World Stocks, VT, Major World Currencies, DBV, Emerging Market Currencies, CEW, and Aggregate Credit, AGG, will all be turning lower in value.

Seal 4. Fourth Horseman. the rider on the pale green horse, signifying chaos, that comes by destruction, calamity, and disaster.

Scripture Reference: {7} When the Lamb opened the fourth seal, I heard the voice of the fourth living creature say, “Come!” {8} I looked, and there before me was a pale horse! Its rider was named Death, and Hades was following close behind him. They were given power over a fourth of the earth to kill by sword, famine and plague, and by the wild beasts of the earth.

Please consider Corollary #7 from the Dispensation Economics Manifest, that Jesus Christ is establishing “the new normal” comprised of new economic action (from inflationism, to destructionism), and new action in nature (from benefit and favor, to calamity and disaster).

CBS News reports 100,000 Cattle Feared Dead After Early South Dakota Snowstorm

Elaine Meinel Supkis posts Huge Typhoon Heads Towards Fukushima, Dr. Simper Says Mess Is ‘Average–A New Normal’. She writes What is happening at Fukushima? – Channel 4 News says that it cannot cope with one of the world’s worst nuclear disasters of all time alone admission by Japan means we should pay some attention to this enormous global disaster. Here is an ‘expert’ coughing up the same old hairball about how this isn’t all that big a deal:

Tepco has not yet responded to Channel 4 News requests for comment on the situation. But Dr Simper denies that the recent flurry of international interest in Fukushima is a sign of panic, and stressed that no-one was taking over from Tepco – saying in fact that IRID was set up with Tepco’s backing.

“It’s not panic, not ‘let’s call in the nuclear red team’,” he said. “Look at the kind of people involved. Look at my CV. There is no emergency management on it. What I do is strategy and planning.”

He described the situation at Fukushima as “the new normal”.

“It’s not a nuclear power plant having a really bad day. Think of this as a difficult decommissioning site having a fairly average day. It’s a change of mindset in that there is now no threat to people or the environment. But that doesn’t mean you walk away.”

What, this clown is actually suggesting ‘you can walk away’? He basically says there is no threat at all! And this is an average ‘decommissioning’. This sort of obvious insanity means he should be put in a hospital with locked doors. The man is literally insane. [Pacific contamination] Cs-137 detected 1km offshore Fukushima plant for the first time: the Fukushima Diary. Japan Physician: Radiation level was 100 times higher in Fukushima than gov’t reported 50 days after 3/11 — Geiger counter ‘off the scale’ at train station 60 km from plant — Blatant concealment of data shows us that the assurances that this is a ‘fairly average’ decommissioning event is insane.

4) … New alliances in Israel suggest that Jerusalem will continue to be the undivided capital of the nation of Israel. Jason Ditz of Antiwar reports Shas Chairman Aryeh Deri claims to have a deal in place now that will quickly lead to the collapse of the tenuous far-right/secular right coalition government, and might potentially force early election. According to Times of Israel Deri, the deal was made with Avigdor Lieberman, the head of Yisrael Beiteinu, and he agreed to collapse the coalition in return for a Shas endorsement of his mayoral candidate for Jerusalem, Moshe Lion.

5) …. Liberalism stands at Peak Empire. Jesus Christ operating in the economy of God, that is in the administration of all things economic and political, as presented by the Apostle Paul, in ephesians 1:10, is making liberalism complete, with the expansion of The US Dollar Hegemonic to its most full capability: peak empire is being achieved. Nation state democracy is at its zenith.

The robust phase of liberalism is being achieved. The banker regime came into being with the birth of the Creature from Jekyll Island, one hundred years ago in 1913, and stands in peak sovereignty and peak seigniorage. The banker regime is in its terminal phase. Through financial apocalypse, that is a credit bust and global financial system breakdown, as foretold in bible prophecy of Revelation 13:3, the economic head of the Beast System will experience a massive and apparently fatal wound, yet recover, mostly through nannycrats working in regionalism, that is regional integration, for regional stability, security and sustainability.

Benson te writes Philippine Politics: South Korean War Jets Means Bigger Taxes and More Financial Repression. I comment that it’s interesting to observe the US-Israel military industrial complex in operation in Asia. From reading in Antiwar, I observe that the US and Israel are diverging, and that the US is open to negotiation with Iran. It appears that President Obama is oblivious to reality that Israel is  left to go it alone to destroy the nuclear ambitions of Iran. This leaves the US terrifically overexposed, that is overstretched, in its plans to be involved in Japanese, Philippine, and South Korea conflict with China as well as North Korea.  There is a limit to empire, and the limits of the US Dollar Hegemonic empire are being achieved. 

Benson te concludes his article stating “The fantasy of arming for defense by the Philippine government to protect against the far more powerful China serves as economic privileges for the US-Israel defense industry (also Korea’s KAI), the Philippine bureaucracy and the Philippine military as well as the US military. The first three will be charged to us, the Philippine taxpayers. The US military base/s will be charged to the American taxpayers but whose subsequent social and environmental costs will a burden to local communities in the Philippines who will serve as host/s to the base/s.”

Not only is there a moral hazard, but an economic hazard as well, where social and environmental burdens are transferred to parties that did not sign on to the military deal. Delusions of grandeur are all part of peak empire. Jesus Christ operating in the economy of God, is terminating the banker regime and is bringing forth a new empire, that being regional governance and totalitarian collectivism in each of the world’s ten regional zones, something heralded by the 300 elite of the Club of Rome in 1913, and presented in bible prophecy of both Revelation 13:1-4, and Daniel 2:25-45.

6) … The risk reward relationship suddenly favors investment in taking gains, accruing payment for taxes due, moving one’s investment resources offshore, and dollar cost averaging into gold bullion.

Not many are going to base their investment decisions in the dream given by angels to the Apostle John, while he was in his 90s living in exile on the Isle of Patmos, which conveys the concept that the current banker regime is going to be replaced by the beast regime of regionalism and totalitarian collectivism, as presented in Revelation 13:1-4.

There is a risk reward relationship in all things, and is a fundamental reality to investing. For every investment there is a reward. When risks arise to lessen the rewards, or when risks arise which present the risk of losing one’s investment, then one sells.  

Some will read the chilling and stirring Robert Wenzel, Economic Policy Journal article, You Have To Prepare and Act Very Early,  and make a decision to begin to move some of their investment funds offshore.

Yet moving one’s investment funds out of US banks, such as Bank of America, BAC, or in US investment banks, such as JP Morgan, JPM, or in Stockbrokers, such as E*Trade, ETFC, or TD Ameritrade, AMTD, presents currency risks. One might consider a bank in Hong Kong where one can place one’s investments in any number of currencies or even denominate it in gold; yet overseas financial centers whether they be London, or Hong Kong, could very well be the epicenter of the next financial system meltdown. Be advised that there exists the risk that one’s margined brokerage account will be swept-up into litigation in the event of a financial market collapse.    

Bruce posts in Econobrowser comment Real private nonresidential investment less private employment, and real final sales per capital is in a deflationary mode, communicating that fiat investment growth is peaking.

Inasmuch as Jesus Christ is pivoting the world from liberalism into authoritarianism, sovereign wealth in the new normal will consist of diktat and the physical possession of gold bullion.

For most, the choice and place of one’s investment decision will be based investment science, and not on the interpretation of bible prophecy; for the gainsayers, I recommend that one subscribe to investment science advisory services; these include

Simply Profits JC’s Buy And Sell Signals

EW Forecast

Sigma Trading Oscillator

Gordon T Long Long Wave

The bottom line of economics and investing is that one’s ideology is either myth or sound doctrine; world events will either confirm or deny the truth of one’s beliefs.

One economic reality is the MarketWatch report Bettors’ Verdict: GOP Could Lose the House

Another reality is the Peak Prosperity report Growth Is Obsolete

The USA Gold China’s London-Zurich-Hong Kong Gold Conduit – a major financial coup d’etat

Three Beasts Are Rising To Rule Mankind: The Beast System, The Beast Ruler, And The Beast Banker

October 13, 2013

Financial market report for the week ending October 11, 2013

1) … Revelation 13:1-2 presents the concept that the Beast System, with its ten horns and its seven heads, will rule over mankind in the last days.

The Beast’s ten horns are ten regions of economic and political power and authority.

The Beast’s seven heads are mankind’s seven institutions; these being 1) Education, 2) Banking, Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science and Technology.  Each of these seven institutions will increasingly be integrated with each other, in totalitarian collectivist regional governance, in each of the world’s ten regions.

This monster will emerge out of Financial Apocalypse, that is a global credit bust and financial system breakdown as foretold in Revelation 13:3-4, and more specifically out of sovereign insolvency and banking insolvency of the periphery and southern European periphery nations of Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, that is the so called PIIGS, to become a European Super State, which is based on the Euro Currency, FXE, whose economic rubble will be seen in the devastation of the Eurozone Stocks, EZU.  Across the Atlantic Ocean, a growing intertwining of institutions will eventually produce a North American Continental Government, that is a North American Union; which is already underway as The United States Canada Regulatory Council Seeks Input on Boosting US-Canada Regulatory Cooperation.

The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1, is effecting coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule in regional governance and totalitarian collectivism.

Thus, leaders from each of the seven institutions who will increasingly be working in statist public private partnerships for regional integration, as they oversee the factors of production to manage regional commerce and trade, to establish regional security, stability and sustainability.

The Beast System of Revelation 13:1-2, is the same as the Fourth Beast of Daniel 7:7, whose mission is to pulverize mankind in ten regions of regional governance and totalitarian collectivism. The Little Horn seen in Daniel 7:8, is a person, Europe’s Sovereign, Revelation 13:5-10, the Second Beast of Revelation Chapter 13.  He will rise to power with the Seignior, that is Euroland’s top dog banker and religious leader who takes a cut, Revelation 13:11-18, the Third Beast of Revelation Chapter 13. The Sovereign’s power will be so great that he will pluck out three entire economic and political regions.

For emphasis, I repeat that the Beast of Revelation 13:1-2, is the same as the Beast of Daniel 7:7;  they are the same global empires; yet these will collapse when even diktat money fails, and the Sovereign, Revelation 13:5-10, and the Seignior, Revelation 13:11-18, introduce the charagma 666 money system, Revelation 13:18 to establish a one world government and a one world religion.

The First Beast of Revelation Chapter 13, is not Islamic and will not have an Islamic Caliphate, as Joel Richardson of Joel’s Trumpet writes in his two books “The Islamic Antichrist” and “Mideast Beast”.

For further reading one might consider Olivet Journal The Bottomless Pit and The Beast, and James McDairmant Man of Sin, Son of Perdition, The Wicked One, The Willful king, The Beast, The Little Horn.

2)  … As it was in the days of Noah, so it shall be in the days of the parousia, that is coming, of the Son Of Man, Jesus related in Matthew 24:27-31, and in Mark 13:24-27, as well as in Luke 21:25-28.

The world has entered the beginning of the end, as the Nephilim of Genesis 6:1-6, are returning; that is the Halfbreeds, those created by Lucifer’s children and women are once again being created as 23andMe Receives Patent to Create Designer Babies, But Denies Plans to Do So, TIS reports.

The reason for the deluge was that Lucifer had corrupted mankind’s DNA. Now corporations, physicians and women are playing God. We are witnessing the emergence of a great deception of humanity, an apostasy is emerging encouraging people to believe that geneticists have the keys to our next evolutionary step. The Lord God will not let a genetic modification industry to come to fruition; He will intervene to terminate mankind’s endeavors by the Advent of His Son, Jesus Christ.

And Rady Ananda writes in GlobalResearch.ca Genetically Modified Babies. In October 2013, the US Food and Drug Administration will hold a two-day public meeting to discuss genetic modification within the human egg, which changes will be passed on generationally. The United Kingdom is also moving to allow GM babies.

Human gene therapy has been ongoing since 1990, but most of that involved non-heritable genes, called somatic (non-sex cell) gene therapy. Somatic modifications only affect the individual and are not passed on, and so do not affect the human genome.

The game changed with the successful birth of at least 30 genetically modified babies by 2001. Half of the babies engineered from one clinic developed defects, so the FDA stepped in and asserted jurisdiction over “the use of human cells that receive genetic material by means other than the union of gamete nuclei” (sperm and egg nuclei). Now the FDA is considering going forward with “oocyte modification” which involves genetic material from a second woman, whereby offspring will carry the DNA from three parents. These kinds of genetic changes (“germline modification”) alter the human genome.

For further reading one might consider reading Duane and Shelly Muir of Signposts of the Times Blog Section UFO Phenomenon to understand how the Nephilim are returning, and fulfilling end time bible prophecy.

Day by Day Blog writes Noah, The Boat Builder Preacher. The flood distinctly marks the end of one order of things and the beginning of another. A man called Noah was chosen by God to be the one to make provision for the continuation of all human and animal life on earth when the deluge was over.

Notice Hebrews 11:7 tells us about this amazing servant of God in what we call the faith chapter, “By faith Noah, when warned about things yet not seen, in holy fear built an ark to save his family. By his faith he condemned the world and became heir of the righteousness that is in keeping with faith.”

Jesus had something to say about the evil days in which Noah lived, while answering a question posed by the Pharisees about the time of the coming of the Kingdom of God. He replied; “Just as it was in the days of Noah, so also will it be in the days of the Son of Man. People were eating, drinking, marrying and being given in marriage up to the day Noah entered the ark. Then the flood came and destroyed them all.” (Luke 17:26) The people then were doing all of these things but one thing they weren’t doing was listening. “It will be just like this on the day the Son of Man is revealed.”(verse 30)

Fred H relates Nephilim Comes From Hebrew Root Nawfal … Meaning Fallen … Or Fallen Ones. Strong’s: Nephilim: “giants,” name of two peoples, one before the flood and one after the flood. The LXX uses the term “gigantes”being descriptive of demigods (In Greek mythology, these are the Giants or Gigantes (Greek: Γίγαντες, Gigantes) Gigantes as described in Wikipedia as the children of Gaia, who was fertilized by the blood of Uranus, after Uranus was castrated by his son Cronus. Some depictions stated that these gigantes had snake-like tails. The term mighty men (gibbor in the Hebrew) is synonym for giant. Nimrod was a gibbor Genesis 10:8-9; 1 Chronicles 1:10). Nimrod as a “mighty man” (concordance SH5248 for his name is of “foreign origin.” The Bible Exhaustive Dictionary of Bible Names defines Nimrod as “a rebel, to be rebellious to resist authority, He who rules, we will rebel” He was a “mighty hunter before the Lord. Before is SH6440 פּנים pânı̂ym paw-neem’, means in defiance, in the face (of God), against, anger, to wound, to dissolve; figuratively, to profane (a person, place or thing), to break (one’s word), to begin (as if by an “opening wedge”).

“There were giants in the earth in those days; and also after that” (Genesis 6:4). This Scriptural text describes two insurgents of giants that raised mayhem among mankind. The giants of this first insurgence were the nephilim, whose fathers were the fallen angels. They were the incarnate “sons of God” who came into (mated with) the daughters of men” (Genesis 6:4) in the days of Noah. In those days, they were “marrying and giving in marriage” (Matthew 24:37-38).

Very likely these “mighty men,” nephilim, were unable to procreate. Hence, their origin was from a breeding program with the angels – “gods” – to produce demigods, or the mystical Titans of folklore.

The insurgence of giants after the flood, were called Rephaim (Strong’s Hebrew number 7497), who resided in the Valley of the Rephaim. These Rephaim giants after the flood were smaller in stature. Perhaps this was because they were the offspring of genetically modified DNA, transmitted from the wife of Ham, as an X-chromosome, sex-linked recessive trait. Hence, giants after the flood could self-replicate as both male and female to perpetuate their race and inbreed with the other pagans within the land of Canaan because of their smaller size. At the time of Joshua, perhaps one-half of the population of the Promise Land carried the mutant DNA, as a consequence of pagan (fornication) fertility rites. Hence, God ordered Moses to kill all the “-ites,” men, women, children and their livestock!

Steve Quayle, is the leading authority on giants; and frequently updates his blog Genesis 6 Giants, The Truth Is Too Strong to Ignore

3) … The coming of “the Son of Man” will usher in these future events: according to (Pendelton, 2007) and (Knapp, 2008) “The Great Doctrines of the Bible” (The Doctrine of “Last Things”), Rev. William Bodie writes

1.    After the Jews pass through the great tribulation (Matthew. 24:21, 22, 29; Revelation. 3:10; 7:14); are converted (as a nation) at the coming of Christ (Zechariah. 12:10; Revelation. 1:7); become great missionaries (Zechariah. 8:13-23); never more to be removed from the land (Amos 9:15; Ezekiel. 34:28).

2.    With Regard to Antichrist, and the Enemies of God’s People (2 Thessalonians. 1:7-9; Revelation. 19:20; 20:10). The enemies of God shall be destroyed by the brightness of His coming; The Antichrist will be cast finally into the bottomless pit.

3.    The Millennium begins with the coming of Christ with His saints; with the revelation of Christ after the great tribulation (Matthew. 24:29, 30); at the close of the seventieth week of Daniel. (Revelation. 19:11-14; Daniel. 7:21, 22; Zechariah. 14:3-9).

4.    Then comes the destruction of Antichrist, the binding of Satan, and the destruction of the enemies of God’s people (Revelation. 19:20; 20:1-3, 10).

5.    The Judgment of the Living Nations (Matthew. 25).

6.    The conversion and missionary activity of the Jews (Zechariah. 8:13-23; cf. Acts 15:14-17). Then, we may have a converted world, but not now, nor in this age; This evangelistic effort concerns Israel, not the Church. The Church was gathered at the Rapture.

The Nature of the Millennium Kingdom:

1.    It is a Theocracy: Jesus Christ Himself is the King (Jeremiah. 23:5; Luke 1:30-33). The Apostles will, doubtless, reign with Christ over the Jews (Isaiah. 66; Matthew. 19:28); the Church, over the Gentile nations (Luke 19:11-19; Hebrews. 2:6, 7).

2.    The capitol city will be Jerusalem (Isaiah. 2:1-4). Pilgrimages will be made to the Holy City (Zechariah. 14:16). The reign of Christ will be one of righteousness and equity (Isaiah. 11:4; Psalms. 98:9).

3.    A renovated earth (Romans. 8:19-31; Isaiah. 65:17; c. 35).

4.    The events closing the Millennium are apostasy and rebellion (Revelation. 20:7-9); the destruction of Satan (Revelation. 20:10); the Great White Throne judgment (Revelation. 20:11-15); a new heaven and a new earth (Revelation 21 and 22).

4) … Financial Apocalypse, that is a global credit bust and financial system breakdown, is at hand.

Financial Apocalypse could commence immediately on either on a US Default, or a surge of stock market short selling caused by a rise in the Interest Rate on the US Ten Year Note, $TNX, or currency traders selling any number of currencies such as the Japanese Yen, FXY, the Euro, FXE, the Canadian Dollar, FXC, the British Pound Sterling, FXB, the Swedish Krona, FXS, the Swiss Franc, FXF, the Brazilian Real, BZF, the Australian Dollar, FXA, the Indian Rupe, ICN, or Emerging Market currencies, CEW, which would cause the US Dollar, $USD, UUP, to rise for a period of time from its greatly sold off price of 80.25. A rising US Dollar is incompatible with rising World Stocks, VT.

Under QE, the Fed bought 30 Year US Treasuries, EDV, and Zeroes, ZROZ, taking them out of the hands of private investors who looked for something else to buy, and thwarting the bond short sellers, bidding up the prices of other bonds, and driving down the Interest Rate on the US Ten Year Note, $TNX, causing the Flattner ETF, FLAT, to rise in value, and the Steepner ETF, STPP, to fall in value.

This ETF, that is STPP, rose in value, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened beginning in May 2013, running through September 1, 2013, as bond vigilantes gained control of the Interest Rate on the US Ten Year Note, $TNX; but then from early September to October 4, 2013, the Steepner ETF, STPP, declined in value, as the Interest Rate on the US Ten Year Note, $TNX, fell to its October 4. 2013, rate of 2.65%.

Yes, up until May 14, 2013, investors bought other bonds; but then they sold Junk Bonds, JNK, and Ultra Junk Bonds, UJB, Mortgage Backed Bonds, MBB, International Treasury Bonds, BWX, and International Corporate Bonds, PICB.  On July 14, 2013, investors reversed course once again and have been long the others, as is seen in combined ongoing credit Yahoo Finance Chart, which reinvigorated World Stocks, VT, Emerging Market Stocks, EEM, Global Industrial Producers FXR, Asia Excluding Japan, EPP, Nation Investment EFA, Eurozone Stocks, EZU, and the Nikkei, NKY, as is seen in combined ongoing equity Yahoo Finance Chart.  The Nikkei has been falling lately on the rise of the Japanese Yen, FXY, which hurts export companies.

The world as of September 20, 2013, stood at peak prosperity, peak democratic nation sovereignty, and peak seigniorage, that is at Peak Moneyness, as is seen in the chart of World Stocks, VT, relative to Aggregate Credit, AGG,  that is VT:AGG; stocks are unable to leverage higher on credit.  Zero Hedge writes The Life And Death Of Massive Debt Bubble In Seven Charts

Liberalism’s prosperity has been a terrific moral hazard based prosperity, as investors came to trust in the US Fed’s policies of easing, which started when it took in Distressed Investments such as those traded by the Fidelity Mutual Fund FAGIX, with the start of QE1, driving up risk assets such as Small Cap Value Stocks, RZV, Biotechnology, IBB, Resorts and Casinos, BJK, IPOS, FPX, Media, PBS, Nasdaq Internet, PNQI, Pharmaceuticals, PJP, Aerospace, PPA, Spin Offs, CSD, Leveraged Buyouts, PSP, and Solar Energy Stocks, TAN. An now, another Great Depression will take place because  the Federal Reserve’s bank bailouts and fiscal stimulus have created fingers of instability.

James A. Kostohryz writing in Seeking Alpha asked How Will The No Taper Surprise Affect Stocks  The end of QE will be bad for the general stock market and index ETFs such as SPDR S&P 500 (SPY) and SPDR Dow Jones Industrials Average (DIA). I do not agree. Anticipation of the end of QE, in the context of a tapering cycle, may trigger a garden-variety stock market correction at some point. But for reasons I will elaborate on in future articles, I believe that precisely at the point when the end of QE becomes clearly visible, the US stock market may go parabolic and enter into a bubble phase.

Mr. Kostohyryz’s article proves to one gigantic strategic miss. As Jesus Christ acting in dispensation, that is in the administrative plan of God for the fulfillment of every age, Ephesians 1:10,  pivoted the world from liberalism into authoritarianism on Friday September 20, 2013, as is seen the chart of World Stocks, VT, and the S&P, SPY, trading lower in value.

Fiat money died Friday September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower, as Jesus Christ operating in dispensation, as presented by the Apostle Paul in Ephesians 1:10, that is in administrative oversight of all things economic and political, pivoted the world out of liberalism and into authoritarianism, and as such the stock market has turned from bull to bear with the Too Big To Fail Banks, RWW, trading lower in value, all on the No Taper Rally.

Those ETF sectors which rallied over the last year and countries which rallied, from late June 2013 to late September, 2013, seen in this Finviz Screener, will be trading ever lower from the Tuesday October 1, 2013 rally, on competitive currency devaluation and on the exhaustion of the world central banks’ monetary authority, as investors come to greater realization that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

Friday, September 20, 2013, was liberalism’s day of investment instability that marked an inflection point that pivoted the world from the paradigm of liberalism into the paradigm of authoritarianism, and from a moral hazard based prosperity into a debt servitude based austerity, as the financial markets turning from risk-on to risk-off, as indicated by the Market Off ETN, OFF, trading higher, and the stock market turned from bull to bear. Risk on investing has turned to risk off disinvestment.

Please consider Corollary #8 from the Dispensation Economics Manifest. The No Taper Rally of September 20, 2013, in World Stocks, Major World Currencies, DBV, and Emerging Market Currencies, was Liberalism’s peak event, which terminated the Creature Jekyll Island and birthed the Beast Regime of Revelation 13:1-4. and which pivoted the world from a policy of investment choice … consisting of credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, currency carry trade investing, securitization of debt, dollarization, financialization of stocks and ETFs, such as corporate bonds which convert into stocks, all of which created capital for corporations to operate and revenue for governments to operate … to a policy of diktat … consisting of debt servitude schemes, such as, regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability.

September 20, 2013, was a pivotal day in global economic history from which there is now no return, despite what credit liquidity measures any central banker might propose.

The exhaustion of the US Fed’s monetary policies of easing, came as the provision of QEternity constituted a crossing of the Rubicon of sound monetary policy, and destabilized global economics pivoting the world from liberalism’s banker regime of democratic nation states, into authoritarianism’s Beast regime of regional governance and totalitarian collectivism, presented in Revelation 13:1-4.

Liberalism was the era of investment choice based upon credit and carry trade investing. Ireland’s Bank, IRE, has been the investor’s carry trade darling, In the last year, Ireland’s Bank, IRE, stock market performance has soared 118%, compared to Lloyds Banking Group performance of 100%. And in the last year Ireland, EIRL, has outperformed its nation investment peers, Finland, EFNL, Netherlands, EWN, and Germany, EWG, EWGS, by a huge margin rising some 43%. While bankers dance with glee; austerity bites consumers, as Bloomberg reports Steak No More in Yeats Country Amid Scant Irish Recovery.

In contrast, authoritarianism is the era of diktat based upon debt servitude, where there are no central bank monetary policies providing rewards for investment choices, only regional nannycrat policies of diktat, establishing debt servitude and totalitarian collectivism.  All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin.  The Irish, Greeks, Italians, and Belgians cannot be Germans, yet all will be one, living under the word, will, and way of sovereign regional technocrats.

The Yahoo Finance chart of the EUR/JPY, and the Google Finance Chart of the EUR/JPY, and the Forex Trading chart of the EUR/JPY, and FXStreet chart of the EUR/JPY, show a close at 132.45 on October 3, 2013; from which a trade lower, will soon propel Eurozone Stocks, EZU, and European Financials, EUFN, as well as World Stocks, VT, lower.

On Friday, October 4, 2013, currency traders took the Japanese Yen, FXY, slightly lower to a new weekly rally high, at 100.30, its dark filled candlestick suggests that the rally in the Yen, is at its zenith. And the Euro, FXE, even more slightly lower, to a new weekly rally high of 134.12, forcing the EUR/JPY, to lower to close the week lower at 132.04, yet Eurozone Stocks, EZU, rose to close near their all time high. As the Euro Yen currency trade unwinds, Ireland, EIRL, and Ireland’s Bank, IRE, will be leading Nation Investment, EFA, and Global Financials, IXG, lower.

While Resorts and Casinos, BJK, International Telecom, IST, IPOs, FPX, Small Cap Energy, PSCE, and Energy Production, XOP, traded to a new rally high, monetization of debt, has finally turned “money good” investments bad.  Investments in Risk Assets, such as Small Cap Pure Value Stocks, RZV, has ended, as confirmed the Market Off ETN, OFF, trading higher this month of October 2013.

The interventionist policies of the world central banks no longer provide investment stimulus as is seen in Global Industrial Producers, FXR, trading lower. Jesus Christ acting in the Economy of God, Ephesians, 1:10, has ended the Fed; He did what Ron Paul could not do.

Yes, the Fed be dead. Charles Hugh-Smith of OfTwoMinds blog, asks in Zero Hedge, Have We Reached Peak Federal Reserve? I respond, that The Fed Bubble Era is over. This is seen in the Too Big To Fail Banks, RWW, trading lower from their rally highs. And Asset Managers such as BlackRock, BLK, and Eaton Vance, EV, that coined liberalism’s wealth, are trading lower as well.  Now under authoritarianism, the policies of nannycrats and technocrats, working in schemes of regional integration, will underwrite economic activity.

Debt deflation, specifically competitive currency devaluation, has commenced, terminating liberalism’s fiat wealth investments in Nation Investment, EFA, and Emerging Market Investment, EEM.

The modern money system is broken and bust; the age of speculative leveraged investment, is done, over, and finished.  Liberalism’s democratic fiat money and banking system is being replaced by authoritarianism’s diktat money and regional governance and totalitarian collectivism system.

The ongoing destruction of fiat money can be followed via the trade lower in Stock ETFs, seen in this Finviz Screener, and the Currency ETFs, seen in this Finviz Screener.

The decline in the price of Gold, $GOLD, since late August 2013, will soon be a buying opportunity, as the Gold ETF, GLD, is in an Elliott Wave 3 Up, from its early July 2013 bottom of 117.5, as is seen its Weekly Finviz Chart. The Elliott Wave 3 Ups, are the most dramatic of all economic waves, and create the bulk of wealth gains, of all of the ascending five waves.

5) … This week’s financial market trading.

On Monday, October 7, 2013, Jennifer Carinci of Yahoo’s Hot Stock Minute reported immediately before the market open Markets Around The World Are Reacting Negatively To The Lack Of Progress Out Of Washington On Budget Talks Over The Weekend. Japan’s Nikkei lost one-percent and Europe is down across the board as the world watches the stalled U.S. budget talks. Here at home futures are indicating a rough open, poised to open lower by nearly 1%.

Briefing.com reports Mr. Boehner Told ABC’s George Stephanopolous

  • that the House does not have the votes to pass a clean continuing resolution

  • that the votes are not in the House to pass a clean debt limit increase; and

  • that the US is on a path to default because President Obama won’t negotiate over the debt ceiling.

The NYT reports Boehner Hews to Hard Line in Demanding Concessions From Obama. And NBC News reports Obama to Boehner: Hold a Vote. Call a Vote Right Now. Let’s See What Happens.

Investors fear that the US Government will not come to political terms to deal with its ongoing budget deficits, and that the US may experience a default, this being the most fearsome of all investment fears, and as a result a global financial system meltdown has commenced, as is seen in the Global Financials, IXG, trading 1.0% lower.

Risk assets traded lower: sectors trading lower included Biotechnology, IBB, Internet Retail, FDN, and Nasdaq Internet, PNQI.

The Great Bear Market commenced on the fears of a US Default, and on fears that the monetary policies of the world central banks no longer stimulates investment and have actually turned “money good” investments bad.  The first investment casualties of the Great Bear Market are Biotechnology, IBB, Internet Retail, FDN, and Nasdaq Internet, PNQI.

The higher Yen, FXY, sent the Nikkei, NKY, tumbling 2.2%, making Japan the Bear Market nation loss leader; this as Bloomberg reports Japan current-account surplus plunges to record August low.

The US Dollar, $USD, UUP, traded slightly lower to close at 79.9; I believe it will be increasing in value for a while. Liberalism featured the Milton Friedman Free To Choose Banker Regime, where the coordinated central bank policies of democratic nations, such as the US, Japan, Australia, Indonesia, Thailand, India, Brazil, Singapore, and the Philippines, established Global ZIRP, assuring low interest rates, and backing for credit and carry trade investing, as the US Dollar, continually traded lower in value, and currencies floated, providing investment choices and great rewards for the savy investor.

But bond vigilantes will increasingly gain the upper hand in their war on the world central bank chiefs, calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.63%, and causing debt deflation, specifically competitive currency devaluation globally, as currency traders successfully sell currencies short.

Individual major world currencies such as the Australian Dollar, FXA, and the Euro, FXE, the Swiss Franc, FXF, the Swedish Krona, FXS, the British Pound Sterling, FXB, as well as Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF, are on the verge of collapsing in value, causing sovereign insolvency, banking insolvency and corporate insolvency.

Emerging Market Nations, EEM, especially those with trade deficits, such as Peru, EPU, and Chile, ECH, have seen terrific nation state investment deflation on the rise of the Interest Rate on the US Ten Year Note, ^TNX.  Advisor.ca reports Currency Wars Go Global.  “The currency war in the emerging world has gone global,” says Vincent Lépine, vice-president of global economic strategy at CIBC Global Asset Management. Lépine co-manages the Renaissance Optimal Inflation Opportunities Portfolio. That’s because countries can no longer lower their interest rates to boost growth, given rates are close to zero. Governments are also finding it challenging to use fiscal policy measures to stimulate their economies due to “lousy situations on the fiscal front,” he adds. Fighting the currency war, then, is the only option left, says Lépine. Countries don’t want to be the “one stuck with the strongest currency. Eventually, that will affect [their] competitiveness.”  And GATA reports Taiwan and New Zealand Want Their Dollars Down.

Authoritarianism features the Beast Regime, where leaders will meet in summits and workgroups to waive national sovereignty and establish pool sovereignty regionally, as the The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1-2, is effecting coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule in regional governance and totalitarian collectivism.

Thus, leaders from each of mankind’s seven institutions, these being 1) Education, 2) Banking, Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science and Technology, will increasingly be working in statist public private partnerships for regional integration, as they oversee the factors of production to manage regional commerce and trade, to establish regional security, stability and sustainability.

Lisa Abramowicz of Bloomberg reports Hedge Funds Expand Bets With Most Junk Since ’08.  Hedge funds have amassed the greatest share of the $1.2 trillion U.S. junk-bond market since the credit crisis, raising concern bets with borrowed cash will accelerate losses when the Federal Reserve stops printing record amounts of money. The funds, which typically use leverage to bolster returns, hold as much as 23% of outstanding dollar-denominated high-yield bonds, from as much as 18% last year and the highest since 2008, according to Barclays. Credit hedge funds have boosted assets by 89% since 2008, outpacing the 66% growth of the junk market, data from Hedge Fund Research and BoA indexes show.

The 0.04% trade lower in iShares Floating Rate Bond, FLOT, communicates the failure of liberalism’s credit. This investment is a short term bond ETF which corresponds generally to the Barclays US Floating Rate Note, and yields 0.65%, and represents risk free capital investment. Under liberalism’s central bank monetary policies of credit liquidity, it has risen in value from 48.50 in December 2011, to 50.67 on October 7, 2013. Short term bond ETFs, like FLOT, are considered an ultra-safe bond investment, and some have argued that they can act as a cash alternative or money market substitute. The trade lower in FLOT communicates that interest rate risk cannot be managed.  Not only are currencies, such as the Emerging Market Currencies, CEW, failing, but now credit has failed. Another word for credit is trust.  Investors can no longer trust the monetary policies of Ben Bernanke, Mario

As interest rate risk rises, the Steepner ETF, STPP, will once again rise in value. It rose in value, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened beginning in May 2013, running through September 1, 2013, as bond vigilantes gained control of the Interest Rate on the US Ten Year Note, $TNX, causing a steepening of the 10 30 US Sovereign Debt Yield Curve, that is $TNX:$TYX. But then from early September to October 4, 2013, the Steepner ETF, STPP, declined in value, as the Interest Rate on the US Ten Year Note, $TNX, fell to its October 4. 2013, rate of 2.65%; and then on October 7, 2013, the Steepner ETF, STPP, took a real hit, trading lower, in strong volume, to close at 39.30. The rise in the Steepner ETF, reflecting a steepening yield curve, will be a marker, that is a defining indicator, of the sea-saw destruction of money. Whatever one considers money to be, it is no more as fears arise that current sovereigns are unable to govern.

“Taper gone bad”, is the genesis of the see-saw destruction of fiat wealth that commenced October 1, 2013, and recommenced October 7, 2013.  Major World Currencies, the Japanese Yen, FXY, the Euro, FXE, the Canadian Dollar, FXC, the British Pound Sterling, FXB, the Swedish Krona, FXS, the Swiss Franc, FXF, and the Australian Dollar, FXA,  as well as Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, and the Indian Rupe, ICN, as well as Stocks, DBV, and Bonds, BND, are all falling into the Pit of Financial Abandon, as investors find that liberalism’s sovereigns, these being the leveraged speculative investment community, consisting of the Too Big To Fail Banks, Regional Banks, KRE, Investment Banker, KCE, and Stockbrokers, IAI, ar no longer able to leverage fiat money higher over debt; this being seen in the chart of World Stocks, VT, relative to Aggregate Credit, AGG … VT:AGG .. trading lower in value.

Out of a soon coming Financial Armageddon, that is a credit bust and financial system breakdown, authoritarianism’s new sovereigns, that being regional nannycrats, as well as Europe’s Sovereign, described in Revelation 13:5-10, and his partner, the Eurozone’s Seignior, Revelation 13:11-18, will rise to power, totally establishing diktat money, which replaces fiat money.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability.

These leaders, that is nannycrats include, Jeroen Dijsselbloem, President of the Eurogroup meeting of euro-zone finance ministers, Olli Rehn, Vice President of the European Commission responsible for economic and monetary affairs, Michel Barnier, EU Commissioner responsible for internal market and services, Klaus Regling, Managing Director of the European Stability Mechanism, Werner Hoyer, President of the European Investment Bank, who in the WSJ op-edited credit for the Eurozone’s economic recovery, as well as Jorg Asmussen, Member of Executive Board of the ECB, Viviane Reding, European Commissioner for Justice, Fundamental Rights and Citizenship.

And diktat money is seen in countries with high current account deficit, such as in India, where import duties have been declared on the import of gold, and the import of gold coins banned; and such as in Indonesia, where curbs are placed on the import of luxury cars and some branded goods.

God has always provided empires for governance; the most recent ones have been liberalism’s, British Empire and the US Dollar Hegemonic Empire. But these are being swept into the dustbin of history, as Jesus Christ is operating in Dispensation, that is in the administrative oversight of all things economic and political, Ephesians 1:10, introducing authoritarianism’s Beast Regime of regional governance and totalitarian collectivism, which is the same empire of the Ten Toed Kingdom, presented in Daniel’s Statue of Empires, 2:25-45, with its toes being a miry mixture of clay democracy and iron diktat.

Ambrose Evans Pritchard of The Telegraph writes Factional Conflicts Have The Power To Destroy Empires – And Republics

An inquiring mind asks, how much longer will money market accounts be a safe haven investment, that is, how much longer will they keep their constant one dollar value with a rising Ten Year Interest Rate, ^TNX?

Ludwig von Mises Institute posts Skyscraper Index Is Flashing Red Alert

Bloomberg reports Aluminum Costs Seen Dropping as LME Unclogs Depots. The London Metal Exchange’s plan to ease congestion at warehouses storing near-record amounts of aluminum will accelerate deliveries and reduce premiums paid for supply, at a time when prices are already near a four-year low.  The Yahoo Finance Chart of Aluminum, JJU, shows it to be a commodity loss leader.

Bloomberg reports Biggest Pension Fund at Risk Holding 60% in Japanese Debt. Japan’s Government Pension Investment Fund, the world’s largest manager of retirement savings, isn’t ready for Abenomics, according to the head of an expert panel advising on public investments. The set of policies from Prime Minister Shinzo Abe aims to defeat 15 years of deflation and spur growth by using the “three arrows” of fiscal stimulus, monetary easing and business deregulation. GPIF needs to reduce the risk of losses on its bond holdings should interest rates start to rise as the economy improves, said Takatoshi Ito.

“The majority of the panel thinks the GPIF is exposed to too much interest-rate risk,” Ito said in an Oct. 4 interview. “If they’re really aware of interest-rate risk, why are 60 percent of the assets in domestic bonds?” An interim report from the panel on September 26, 2013, showed some members wanted the 121 trillion yen ($1.25 trillion) GPIF to add new assets such as real-estate trusts, infrastructure and private-equity investments and commodities. The group will meet two to four more times before issuing its final report next month, Ito said.

The ministry is likely aligned with Abe who “is keen to reallocate resources both to contribute to the sustainability of social welfare and to support market and corporate sentiment,” Aoki wrote in an Oct. 7 report. The Topix, ITF, has surged 33 percent this year. The nation’s sovereign bonds handed investors a 2.2 percent return in the same period, according to an index compiled by Bloomberg. Japan’s 10-year bond rose one basis point to 0.65 percent as of 1:05 p.m. in Tokyo after reaching 0.625 percent Oct. 4, a level not seen since May 10.

Energy Post writes in OilPrice.com Tensions Threaten Long Standing Natural Gas Partnership between EU and Russia

Mike Mish Shedlock writes Mainstream Media Finally Catches on to Disability Fraud: 60 Minutes Reports on “Disability USA” . Coburn selected cases at random and found 25% of the cases were fraudulent and another 20% were “highly questionable”. The “system is being gamed pretty big right now”, said Coburn. “You need look no further than disability lawyers trolling for new clients.”

Jaso Ditz of Antiwar reports Egypt Rules Brotherhood ‘Outlaws’ as Attacks Kill 9 Troops

Michael Krieger of Liberty Blitzkrieg blog, writes in Zero Hedge, Meet The Disability Industrial Complex: Up To 45% On Disability Insurance Are Frauds. In the economically depressed border area of Kentucky and West Virginia we find 10% to15% of the population on disability, or three times the national average. Senator Coburn says disability payments are now propping up the economy in some of the poorest regions in the country. Which is why he sent his investigators to the border area of Kentucky and West Virginia. More than a quarter of a million people in this area are on disability with  10 to 15 percent of the population, about three times the national average. Jennifer Griffith and Sarah Carver processed disability claims at the Social Security regional office in Huntington, West Virginia

Here, in Bellingham, WA, the City of Subdued Excitement, just south of the Canadian Border, and just north of Seattle, a cottage industry of disability lawyers has sprung up surrounding the local mission, located at Holly and F; the use of which is necessary to obtain SSI/SSD.

And there are a large number of social service counselors who encourage that one obtain a psych eval from Washington State DSHS, located at Guide Meridian and Bakerview, which entails that one go see a shrink for diagnosis of mental illness, such as narcism, bipolar disorder, anxiety, antisocial disorder, ADHD, or depression, as well as to go see a physician for diagnosis of fibromyalgia, hepatitis or chronic pain, as any of these conditions, are legal reasons for making the case, that one is unable to work. All veterans claiming PTSD are guaranteed a disability award.

Once one has been awarded SSI/SSD, one can then “live free”.  I know many individuals who are psychopaths; these mean and crazy individuals, have obtained SSI/SSD for their busybodyness; and now, most keep to themselves, except for a few who go on to be real hooligans, engaging other in all kinds of mischievous behavior, all at taxpayer expense.

Liberalism was an age of clientelism, providing millions of supposedly disabled individuals with transfer payments. The truth is that many choose not to work, and thus probably 50% of disability claims are fraudulent. The amount of assistance is equivalent to working at minimum wage which is $1,400 a month, (8 hours a day at $8/hour for 22 days a month).  SSI/SSD assistance consists of $730 in Disability, $170 in SNAP Food Stamps, $500 in Section 8 Housing Voucher Assistance, and then there is Medicaid as well, for physician visits, psychiatric care, dermatology and other specialty care, prescriptions, hospitalization, benefits, valued at $400, for a total welfare dole of $1,800 monthly.

On Tuesday, October 8, 2013, the beginning of the extinguishment of Nation Investment, EFA, started to destabilize liberalism’s nation state sovereignty, and its banker seigniorage, on investor’s fears of a US Default.

The new economic and political paradigm of authoritarianism, will rise out of  sovereign insolvency and banking insolvency, as foretold in Revelation 13:3-4, that being a Minsky Moment, where regional nannycrats will be appointed sovereign, and provide public private partnership seigniorage, as they issue diktat for regional security, stability, and sustainability.

Liberalism was characterized by trust in bankers, stock brokers, and asset managers, to the point of being insestious, through US Fed and other world central bank monetary policies such as POMO.  But authoritarianism will be characterized by trust in the word, will and way of the regional nannycrats; so much so that the Apostle Paul wrote in Revelation 13:3-4, that All the world marveled and followed the beast; so they worshiped the dragon who gave authority to the beast; and they worshiped the Beast.

Nation Investment, EFA, traded lower 0.6% lower on fears of US Default, and on awareness that the US Fed’s monetary policies no longer stimulate global growth and trade, and have actually turned” money good” investments bad.

Fiat money died Friday September 20, 2013, when World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, terminating the sovereignty of democratic nation states and terminating the seigniorage of the world central banks. Confirmation of such is seen in the Too Big To Fail Banks, RWW, and Regional Banks, KRE, trading lower in value, the Market Off ETN, OFF, rising in value.

Competitive currency devaluation has commenced on the exhaustion of the world central banks’ monetary authority, as investors are coming to realize that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

On Wednesday, October 9, 2013, World Stocks, VT, and Nation Investment, EFA, traded slightly higher on hopes for resolution of the fiscal impasse;  and gold turned down, just as it appeart to breaking out.

The WSJ reports Chinese Think Tank Puts Shadow Banking at 40% of GDP.  As the fastest growing part of China’s financial sector, shadow banking is no longer the sideshow it was five years ago. The sector grew from almost nothing a few years ago to the equivalent of 40% of gross domestic product at the end of 2012, the Chinese Academy of Social Sciences said.

Please consider that under liberalism, the liquidity effect of the world central banks’ monetary policies, in particular the Federal Reserve, established global ZIRP, flooded the world with credit and stimulated currency carry trade investing, in particular the EURJPY and the AUDJPY, which created a crack up boom in the value of Risk Assets, such as Biotechnology, IBB, Solar, TAN, IPOs, FPX, Media, PBS, Leveraged Buyouts, PSP, Pharmaceuticals, PJP, Small Cap Pure Value, RZV, Aerospace, PPA, Resorts and Casinos, BJK, as is seen their combined ongoing Yahoo Finance Chart.

But on September 20, 2013, that speculative leveraged investment bubble burst, as is seen in World Stocks, VT, trading lower, on fears that the world’s central banks monetary policies have crossed the Rubicon of sound monetary policy, and have turned “money good” investments bad.

Earlier on May 21, 2013, the First Horseman of the Apocalypse, the Rider on the White Horse, seen in Revelation 6:1-2, enabled the bond vigilantes to call the Interest Rate on the US Note, ^TNX, higher to 2.1%, destroying Aggregate Credit, AGG, and creating debt deflation, that is  competitive currency devaluation, turning Major World Currencies, DBV, and Emerging Market Currencies, CEW. lower.

The world central bankers, no longer have tight control over interest rates, and The Great Bear Market commenced on fears of a US Default as well as on fears that the monetary policies of the world central banks no longer stimulate global growth and trade and corporate profitability, and have actually turned “money good” investments bad.

With the transition from bull to bear market on September 20, 2013, as is seen in the Market Off ETN, OFF, rising in value as Jesus Christ is acting in Dispensation, that is in oversight of all things economic and political, as presented by the Apostle Paul in Ephesians, 1:10, having pivoted the world from liberalism to authoritarianism.

The Fed plans for QETernity. David Malpass of the WSJ reports The Bigger Battle Behind the Shutdown. A staggering $250 billion per month, 80% of spending, runs on autopilot without congressional control. At its core, the shutdown is part of a much bigger battle to restrain the federal government. It is spending $3.6 trillion per year without a budget, and its expenditures are expected to increase rapidly in the years ahead. Meanwhile, the government has piled up $17 trillion in debt and $60 trillion more in unfunded spending promises. The Federal Reserve will borrow $1.1 trillion in 2013 alone to buy bonds and it reserves the right to borrow unlimited amounts for future bond purchases without congressional or presidential permission.

Through anticipation of ongoing monetary intervention by the US Fed, the see-saw destruction of fiat wealth that commenced October 1, 2013, and intensified October 7, 2013, will become more vigorous, as bond vigilantes call the Interest Rate on US Ten Year Note, ^TNX, higher from 2.65%, and as currency traders sell the EURJPY, the AUDJPY, and Major World Currencies such as the Canadian Dollar, FXC, the British Pound Sterling, FXB, the Swedish Krona, FXS, the Swiss Franc, FXF, and Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF.

Out of a soon coming Financial Apocalypse, that is a global credit bust and financial system breakdown, as foretold in Revelation 13:3-4, and more specifically out of sovereign insolvency and banking insolvency of the periphery and southern European periphery nations of Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, that is the so called PIIGS, the Beast Regime of regional governance and totalitarian collectivism, presented in Revelation 13:1-4, will rise to rule, in all of the world’s ten regions, and occupy in all of mankind’s seven institutions.

Under authoritarianism, physical possession of gold bullion and silver bullion will be the only means of financial wealth preservation and growth.

On Thursday, October 10, 2013,  World Stocks, VT, Nation Investment, EFA,  and Global Industrial Producer, FXR, rose, as President Obama announced dovish banking insider Janet Yellen as his choice for Federal Reserve Chair, and as lawmakers moved toward an agreement to increase the debt ceiling and avoid a default, causing risk assets and financial stocks to rise strongly.

The yield curve is now steepening as the Fed did not taper, and will not taper. The Interest Rate on the US Ten Year Government Bond, ^TNX, rose to 2.68%, and the Steepner ETF, STPP, rose strongly as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened. A steepening yield curve suggests that bond vigilantes are once again obtaining a strong hold over interest rates, in their war on the world central banks; and that they are once again calling US Government Bonds, GOVT, lower, on the monetization of debt by the US Federal Reserve.  The Steepner ETF, is a great ETF for rising rates.

Junk Bonds, JNK, rose taking Aggregate Credit, AGG, higher.  Gold turned strongly lower to close at  $1,272.

Currency traders, sold the Japanese Yen, FXY, causing the chart of EUR/JPY to rally strongly to 132.86, and the chart of AUD/JPY to rally strongly to 92.02. Of note, the Chinese Yuan, CYB, rose strongly to a new rally high. CNBC writes Yuan moves one step closer to global currency status.

Ambrose Evans Pritchard wrote Rejoice: “The Yellen Fed Will Print Money Forever to Create Jobs.”

The October 10, 2013, rally in stocks, on the announcement of Janet Yellen as Obama’s choice for Federal Reserve Chairperson, and on hopes of an accord to avoid US Default, coupled with the likelihood of a developing impasse on resolving a US Budget, and consequential Default on US Debt, is likely to stimulate fears of a market sell off, and presents the short selling opportunity of a lifetime, continuing a Bear Market that commenced with a market top on September 20, 2013, which came with the No Fed Taper Rall.

In a bull market, one buys in dips, and in a bear market, one sells into pips. The Great Bear Market commenced on September 20, 2013, as evidenced in the Market Off ETN, OFF, rising in value.

One could sell short the 40 ETFs/ETNs, IBB, PNQI, FDN, TAN, BJK, RZV, FPX, IST, FLM, CSD, PBS, IAI, PSCI, XTN, FXR, CARZ, XRT, EUFN, PJP, SMH, WOOD, PSP, RWW, PPA, SLX, RXI, ENZL, EIRL, GREK, EWP, YAO, TUR, ARGT, EPHE, SCIN, THD, EGPT, EWZS, EWY, UJB, seen in this Finviz Screener, for great future reward as these are high beta risk averse ETFs.

And one could use the 8 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, what I term the market vane ETFs, as the basis for one’s margin account, as these will increase in value with rapidly growing financial instability, as carry trades unwind, and as the Interest Rate on the US Ten Year Note, ^TNX, rises.

Benson te writes Graphic: The Globalization of Boeing’s Dreamliner. Assembled in the US, much of what makes up the Boeing’s Dreamliner has been sourced overseas.  I comment that although sourced overseas, Boeing still does employ many here in Washington State. The freeways, that is expressways, are clogged with its workers. And then, after working for Boeing, they often retire in sunnier climates like Hawaii, or retire in nearby areas like Bellingham, where I live, driving up the prices of real estate. Boeing exemplifies the “best practices” of capitalism, is an economic success story, is a leading Global Industrial Producer, FXR, is a leading Defense and Aerospace Producer, PPA, and has been an investor’s darling, as is seen in its ongoing Yahoo Finance chart. Boeing, BA, rose 3.8% on the October 10, 2013, Yellen Rally, compared to the 2.1% for the S&P 500, SPY. Yet nevertheless it is a participant in the Great Bear Market which commenced that September 20, 2013, as reflected in the Market Off ETN, OFF, rising in value. The way is inexorably down now.  One of the factors that drove Boeing higher under liberalism was its high level of debt; a Long Term Debt to Equity Ratio of 1.3%. In liberalism’s final Global ZIRP credit rally, investors pursued debt laden companies, like Boeing, as they chased yield.

Ed Yardeni posts Europe’s Recovery. The OECD Leading Composite Index for Europe is confirming the region’s recovery. It is up for the past 11 consecutive months to August’s 100.5, the highest reading since July 2011. Leading the way up have been some of the more distressed countries in the euro zone, particularly Spain. The UK is also looking very strong. Here is August’s ranking: Spain (102.0), Ireland (101.9), Greece (101.8), Portugal (101.4), UK (101.2), Italy (100.7), Europe (100.5), Germany (100.4), Belgium (100.2), Netherlands (100.0), and France (99.7). Yet the IMF is expecting that the euro zone’s real GDP will grow by only 1.0% next year after falling 0.4% this year. The organization’s latest report challenges the notion that the region is out of the woods. It sees potential for a renewed financial crisis, and is critical of the slow pace of banking and economic reforms. Labor markets remain mostly uncompetitive in the peripheral countries. Bank credit continues to shrink.

I comment that since 2008, through the credit liquidity monetary policies of the ECB, the US Federal Reserve and the other world central banks, have eked out a marginal recovery in the Eurozone, and a fantastic moral hazard based smorgasbord of investment choice, that has rewarded the savvy investor, providing great prosperity for those connected to the speculative leveraged investment community.

The Times of London reports Eurozone Companies Face Huge Debt Overhang That Could Harm Recovery.  And the WSJ reports IMF Warns On Corporate Exposures of Euro Zone Banks.

On Friday, October 11, 2013, Wall Street Ends Higher on Hopes of Weekend Resolution in Washington.  U.S. stocks extended gains on Friday, a day after their biggest rally in more than nine months, as investors were hopeful for a solution to end the partial government shutdown that would stave off a possible U.S. default, Reuters reported.

The chart of the EUR/JPY shows a close for the week at 133.48. And the chart of AUD/JPY shows a close for the week at 93.27

Gold, GLD, plummeted 1.3%, and Silver, SLV, 1.5%, forcing Gold Miners, GDX, 2.1%, lower, and Silver Miners, SIL, 1.6%, lower, reflecting demand for Risk Assets, such as Solar Stocks, TAN, and Resorts and Casinos, BJK, as well as for Emerging Market Infrastructure, EMIF, and US Infrastructure, PKB, supported by a strong EURJPY and AUDJPY, as is seen in their ongoing Yahoo Finance Chart. Jack Chan Safehaven.com chart report This Week In Gold communiates that Gold was posed for a breakout this week but faltered an went into a breakdown

This week World Stocks, VT, rose, 0.9%, as Nation Investment, EFA, rose, 0.9%, and as the Eurozone, EZU, rose 1.6% and the Emerging Markets, EEM, rose 1.7%. This week, US Stocks, VTI, and The Russell 2000, IWM, both rose 0.6%. And the S&P 500, SPY, rose 0.8%; with the chart of the S&P 500, $SPX, closing at $1,703, up  0.7%.

The S&P 500, SPY, closed at 170.25. Inasmuch as September 20, 2013, marked an Elliott Wave 5 High in the S&P 500; its current rise marks an Elliott Wave 2 High, from which the S&P 500 will fall into an Elliott Wave 3 Down; these are the most aggressive of all economic waves, creating the bulk of wealth on the way up, and destroying most of wealth on the way down.

Mark Zandi, in Calculated Risk PDF Document. gave testimony before the Joint Economic Committee on October 11, 2013, stating “equities … have been slowly grinding lower since mid-September.” Zandi, makes the case that Congress should end the shutdown and reverse the sequester in order to boost the economy. Yet the S&P 500, is a participant in the Great Bear Market which commenced that September 20, 2013, as reflected in the Market Off ETN, OFF, rising in value. The way is inexorably down now.

Nations rising strongly this week included the following

Egypt, EGPT, 5.5,

Israel, EIS, 3.8

India, INP, 3.4, SCIN, 2.1,

Brazil, EWZ, 2.7, EWZS, 2.5,

Spain, EWP, 2.4

Italy, EWI, 3.1

Greece, GREK,  2.9

Thailand, THD, 2.8,

Philippines, EPHE, 2.7

South Korea, EWY, 2.1

Argentina, ARGT, 1.4

Sectors rising this week to new rally highs included the following:

Solar, TAN, 3.0%

Design Build, FLM, 2.2

Leveraged Buyouts, PSP, 1.6

Resorts and Casinos, BJK, 1.4

Small Cap Industrials, PSCI, 0.9

Sectors falling strongly this week included the following:

Biotechnology, IBB, -5.4

Nasdaq Internet, PNQI, -2.9%

Internet Retail, FDN, -2.4,

these are the first investment casualties of the Great Bear Market.

Yield Bearing Sectors rising strongly this week included

Electric Utilities, XLU, 2.6%

Real Estate, IYR, 2.6, with REZ 3.6, FNIO, 3.0, ROOF 2.4, and DRW, 1.2.

Telecom, IST, 1.0

Shipping, SEA, 0.6

Small Cap Energy, PSCE, 1.9%, Energy Production, XOP, 1.7. both new rally highs on a lower price of Oil, USO, -1.0. Demand for Small Cap Industrials, PSCI, and Small Cap Energy, PSCE, have driven the Small Cap Growth Stocks, RZG, to a new rally high as investors have shunned Large Cap Value Stocks, JKF, as is seen in their combined ongoing Yahoo Finance Chart.

On Friday, Junk Bonds, JNK, rose 0.4%, and Ultra Junk Bonds, UJB, rose 0.1%, taking Aggregate Credit, AGG, 0.1% higher. The Interest Rate on the US Ten Year Note, ^TNX, closed at 2.68%.

An inquiring mind asks, is the JYN, which has been rising with the Interest Rate on the US Ten Year Note, ^TNX, on May 13, 2013, going to continue to rise from its October 11 value of 58.85?

Rob Sheridan of Bloomberg reports The cost of shipping iron ore, coal and grains along China’s coast rose to an 18-month high as surging imports of the commodities boost demand for vessels to redistribute them between the nation’s ports. The China Coastal Bulk Freight Index measuring the domestic shipping prices for commodities advanced 2.2% to 1,167 points in the past week, according to data from the Shanghai Shipping Exchange. It rose 11% since the start of the year and is now the highest since April 2012.  An inquiring mind asks, is the rise in Shipping Rates and Shipping Stocks, SEA, due to a growth in credit or a growth in China’s economy?

Reuters reports Two More Pipeline Deals as U.S. Shale Production Booms

Jim Lobe & Daniel Luban write The Messianic, Apocalyptic Bibi Netanyahu.

Itechpost relates The Samsung Galaxy Note 10.1 – 2014 Edition is now available in the U.S. from Amazon. The retailer just started offering both the 16GB and 32GB versions of the tablet. This powerful tablet provides fast performance in a sleek design that’s comfortable to hold. It features Samsung’s most efficient processor for fast Web browsing and multitasking and longer battery life.

Take Handwritten Notes and More with the S Pen. Included with the Galaxy Note 10.1 is Samsung’s S Pen, which is a digital pen that allows you to jot down notes, phone numbers, search terms, contact information, and more right on the display. Samsung’s handwriting-to-text engine automatically converts your written notes to digital type. The S Pen offers precise control along with access to shortcuts to a wide range of S Pen functions via the Air Command feature.

Use As a Universal Remote Control. Watching television just got simpler, thanks to the Galaxy Note 10.1′s built-in IR blaster, which allows you to use the tablet as a universal remote control. The Samsung WatchON feature lets you type in your zip code and cable provider to browse and search current TV listings and get personalized recommendations based on your viewing history.

Provide Curated Content with My Magazine. Built into the Galaxy Note 10.1 is Samsung’s My Magazine feature, which you can personalize with your favorite news sources, celebrities, sports teams, musical artists, and Twitter streams. Access it from the home screen by simply swiping up. My Magazine provides an easy, convenient way to keep track of everything that’s important to you.

Amazon is offering the Samsung Galaxy Note 10.1 – 214 Edition for $549 for 16GB and $599 for 32GB. The retailer is also including free shipping with the order.

6)  … Monday October 13, 2013, is Nobel Peace Prize Day. All things have fathers, that is starters. Liberalism’s floating currency regime was fathered by Milton Friedman, who presented the concept to President Nixon, who went off the gold standard, and commenced ongoing global war.

The Nobel Peace Plan should be awarded to and shared amongst, Dr. Friedman’s three liberal offspring; yes, these be the Milton Friedman of today.

First, Ben Bernanke, for effecting the No Taper Rally which drove up World Stocks, VT, to its September 20, 2013, high of 56.53.

Second, Mario Draghi, for stating that the ECB stands “ready to act accordingly and as needed to contain money market rates”, according to Jana Randow and Andre Tartar of Bloomberg. His words drove Italy, EWI, up 3.1%, Spain, EWP, 2.4% and Greece, GREK, 2.9%, as well as European Financials, EUFN, up 1.2%, for the week ending October 11, 2013.

Three Jeroen Dijsselbloem, President of the Eurogroup meeting of euro-zone finance ministers, Olli Rehn, Vice President of the European Commission responsible for economic and monetary affairs, Michel Barnier, EU Commissioner responsible for internal market and services, Klaus Regling, Managing Director of the European Stability Mechanism, Werner Hoyer, President of the European Investment Bank, who in the WSJ op-edited credit for the Eurozone’s economic recovery,

A Nobel Peace Prize should have been awarded to Treasury Secretary Hank Paulson. It was on Columbus Day 2008, that Alan S. Blinder in his book After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead, wrote Paulson made a no strings offer to the banks to trade out money good US Treasuries for toxic debt owned by the banks, specifically assets like those traded in Fidelity Mutual Debt Funds FAGIX, this became known as the TARP program.

P Veronesi of The National Bureau Of Economic Research reports Paulson’s Gift. “We calculate the costs and benefits of the largest ever U.S. Government intervention in the financial sector announced the 2008 Columbus Day weekend. We estimate that this intervention increased the value of banks’ financial claims by $131 billion at a taxpayers’ cost of $25 – $47 billions with a net benefit between $84bn and $107bn. By looking at the limited cross section we infer that this net benefit arises from a reduction in the probability of bankruptcy, which we estimate would destroy 22% of the enterprise value. The big winners of the plan were the three former investment banks and Citigroup, while the loser was JP Morgan” .

The provision of TARP as a Fed Monetary policy was the genesis and foundation of QE, which underwrote the expansion of liberalism by securing the seigniorage of investment choice, and established the dynamos of corporate profit and global growth based upon investment opportunities in nation states, and underwrote trust in bankers, carry trade investing and credit, in particular Treasury debt, and which provided economic action of inflationism, and provided great wealth seen in World Stocks, VT, rising to its September 20, 2013 high value of 56.53, which has secured economic life in crony capitalism, clientelism and its dependency, European socialism, and Greek socialism.

Please consider the Dispensation Economist Manifest, which presents that Jesus Christ is at the helm of the Economy of God, and as presented by the Apostle Paul in Ephesians 1:10, is in administration of all things economic and political to fulfill and complete every age, epoch, era and time period. Through inflationism of the Banker Regime in particular through POMO and Quantitative Easing, produced peak moral hazard prosperity, peak wealth, peak democratic nation state sovereignty, peak banker seigniorage, through leveraged speculative investing by the issuance of debt and the practice of carry trade investing, on September 20, 2013, with the No Taper Rally, terminated liberalism. He has pivoted the world out of the paradigm of liberalism and into authoritarianism; where there will no longer be policies of investment choice and schemes of credit and carry trade investing; but rather policies of diktat and schemes of control and debt servitude

Now, Jesus Christ, in providing the Beast System, the Beast Ruler and the Beast Banker, as well as in providing the Four Horsemen of the Apocalypse, Revelation 6:1-8, is introducing a number of new things. These include, a new seigniorage, the seigniorage of diktat, and new dynamos, the dynamos of regional security, stability and sustainability, and a new trust, the trust in statist nannycrats, totalitarian collectivism, public private partnerships and debt servitude, and new economic action of destructionism, as well as a new action in nature, that being calamity and disaster, and new economic experience of poverty, as well as new economic life in regionalism.

Of timely note, Stefan Steinberg in WSWS writes New Reports Warn Of Mass Poverty And Social Decline In Europe. The social crisis in Europe is being consciously exploited by the continent’s political elite to affect a major redistribution of wealth from the bottom of society to the top

The fiat money system, that is the Milton Friedman Free to Choose Floating Currency Regime,  died September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower; and the diktat money system is now in place for mankind’s economic and political action. There be no human action, as perceived by the Austrian economists and the Libertarians, rather only the action of Jesus Christ if providing the diktat money system, where all currencies ever-sink into the pit of financial abandon.

Dr Milton Friedman’s liberal offspring waived wands of magic prosperity in what Doug Noland termed wildcat finance. In Authorianism’s sinking currency regime, Angela Merkel has fathered authoritarian offspring, the Troika, who are waiving clubs of austerity in what I term wildcat governance.

7) … Summary, All things be of God, and He is bringing forth three beasts to rule mankind, which will provide diktat money to replace fiat money, which places liberty of conscience at risk.

All things be of God, 2 Corinthians 5:17-18.

Either one be of the of the like precious faith, 2 Peter 1:1, or one be one of fiat, which means “be it so

Thus either one be called, that is elect, and be made accepted in the Beloved; or one be of fiat. that is of mandate, established so, by authoritative decree.

Examples of those of fiat, that is those who be by authoritative decree, include the following:

1) … a person with inalienable rights, a citizen of the Unites States of America by decree of national constitution.

2) … a religious person, by declaration of membership in a church.

3) … a resident in a client state of a sovereign region, one of ten, called for by the Club of Rome in 1974; such as those living in Greece be residents of a client state, living under the sovereign authority of the EU ECB and IMF Troika in technocratic government, and by receiving seigniorage aid.

4) … a political person, a Republican, as these are such, by reference to and participation in social conservative values.

5) … an ethical person, by embracing and announcing and receiving affirmation by others, in statement, ie a Libertarian statement, such as Austrian economics Benson te who writes Almost all social order emerges undesigned and unplanned.

6) … or self appointmented ruler over others, ie a sociopath.

In contrast, the elect, those of like precious faith, participate in the divine nature, as they add to their faith seven things: virtue, knowledge, self moderation, perseverance, godliness, brotherly kindness, and love, 2 Peter 1:5-7.

A good conscience is a gift from God that comes in answer to prayer, Psalm 51:10. With practice, one can develop conscience so as to be acceptable to God and approved by others, Romans 14:18. It is through a good conscience, together with the additive process, and one another living, that one becomes a moral person in Christ.

The conscience is used to be reflective on one’s attitudes, behavior and speech, so as to show oneself to God, a worker who need not be ashamed, 2 Timothy 2:15.  It is in consistent application of the additive process, and in keeping God’s word, that is in maintaining and practicing His Word in attitude, speech and action, as well as respecting His presence and authority, Revelation 3:8, that one is able to maintain good works, as called for in Titus 3:8.

Said another way, The Believer receives the Word in faith and love, and attends to it with preparation, thanksgiving, prayer, and diligence, laying it up in his heart and practicing it in his life, so as to experience the divine nature and receive the exceeding great and precious promises of God, 2 Peter 1: 5-7.

Good character flows from conscience, the additive process, living the one another lifestyle, and maintaining good works. Faith of God.Net provides bible references for character.

Having life out of moral identity, one experiences a morally beneficial and spiritually fruitful life, 2 Peter 1:8. As one makes his calling and election sure, 2 Peter 1:10, he has wide acceptance into the everlasting Kingdom, 2 Peter 1:11.

And of course, one can be self deceived, as James says in James 1:26, If anyone among you thinks he is religious and does not bridle his tongue, he deceives himself and his religion is useless.

Those of the divine nature have values, ethics and virtues, that is moral excellencies, and live assured of God’s exceedingly great and precious promises.

Austrian economist and libertarian Mike Mish Shedlock complain Ten Real Problems

  1. Fractional Reserve Lending

  2. The Fed

  3. Lack of a gold standard

  4. Deficit Spending

  5. Public unions

  6. Davis Bacon and prevailing wage laws drive up costs

  7. Disability fraud

  8. Warmongering

  9. Politicians get into bed with corporations, unions, and crony constituents

  10. Lack of incentives to hold down costs on medicare, food stamps, and entitlements

If you fix the first four or five, most of the rest of the problems will be fixed automatically. The primary reason for wage inequity is the Fed’s inflationary boom-bust practices. In addition, public unions and untenable pension obligations drive up costs (and taxes). As I have stated dozens of times, inflation benefits those with first access to money (the banks and the already wealthy).

Please consider that from eternity past, God planned and brought forth liberalism, as part of his design for providing empires for governance; the most recent ones have been liberalism’s British Empire and the US Dollar Hegemonic Empire, the two iron legs presented in Daniel’s Statue of Empires, 2:25-45.

But these are being swept into the dustbin of history, as Jesus Christ is operating in Dispensation, that is in the administrative oversight of all things economic and political, Ephesians 1:10, introducing authoritarianism’s Beast Regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, which is the same empire of the Ten Toed Kingdom, with its toes being a miry mixture of clay democracy and iron diktat, seen in Daniel 2:25-45.

The collapse of the first iron leg of liberalism’s empire came with the failure of the sovereignty of the British Empire in four stages. First, in 1948 the the UK was kicked out of Palestine with establishment of the State of Israel. Second, in 1951 Egypt repudiated the Anglo-Egyptian Treaty of 1936, and in 1954 the UK agreed to remove its troops, and withdrew is troops in 1956 Third, The Treaty of Maastricht was an amendment to the Treaty of Rome, to which the UK had become a signatory by terms of the Treaty of Accession of November 1972, Conservative Michael Spicer relates in History of the Maastricht Treaty.  Fourth, the UK transferred authority over Hong Kong in June of 1985.

Now the second iron leg is about to crumble as International Man relates in Casey Research What Ron Paul Told Me About The End Of Dollar Hegemony. And Benson te writes Why A US Debt Default Extrapolates To The End Of US Dollar Hegemony

Anthony Migchels of Real Currencies writes The Dying Dollar and the Rise of a New Currency Order.

The roles of a reserve currency are to finance international trade and to function as a store of value for Governments. Until the second world war it used to be the British pound, but with the demise of the British Empire, the pound lost its international relevance and was overtaken by the dollar. This was formalized in the 1944 Bretton Woods system. All other currencies were fiat currencies, but pegged to the dollar, which in turn was pegged to Gold at 40 dollars an ounce and redeemable for international trading partners.

The Eurodollar. With the dollar as the reserve currency, the US had to export dollars. In the early years after the war especially for Europe, the famous Eurodollars. This sounds great: print money and buy whatever you like. But with the Gold window it was also risky: overprinting could mean excess dollars would be exchanged back to Gold, depleting US Gold reserves.

This was also a weakness that those annoyed with American Hegemony could exploit. In 1967 the leftist press mogul Jean-Jacques Servan-Schreiber penned a famous screed called ‘le défi Américain’ (the American challenge’), arguing Europe was being colonized economically by superior American competition. France, at the time, was run by de Gaulle, who never was impressed with Anglo-American supremacy. He made a point of exchanging every dollar he could lay his hands on as a means to undermine it.

In the late sixties the situation got badly out of hand because of the Great Society and the Vietnam war, very costly projects that were deficit financed, leading to serious inflationary pressures. Inflation that the US tried to export, leading to an excess of dollars abroad. Especially the resurging Deutschmark’s appreciation became untenable. The Europeans started pressuring the US to fix its deficits, provoking the US Treasury Secretary John Connally famous cry ‘the dollar is our currency and your problem’.

But the situation had become unsustainable and Nixon was forced to close the Gold window to stop the depletion of US gold. This was the end of the Bretton Woods system and from then on the major currencies were floated freely in the international currency markets.

The Petrodollar. But it did not end the dollar reserve currency status, as the Empire had been found another basis for it: they reached an agreement with the House of Saud, to accept only dollars for its oil. The Sauds agreed to invest their dollar wealth on Wall Street, making the deal even more powerful for the Empire. Saudi Arabia controlled OPEC and the dollar was saved: international oil trading is financed with dollar only.

Since then we have been on an informal Black Gold standard, known as the petrodollar.

This situation was better than before, because overprinting of the dollar for international trade or to finance all sorts Empire projects could no longer be punished by depleting Gold reserves and would result only in rising prices.

In the last decade the problem of over printing was solved by artificially raising oil prices through the Peak Oil hoax, and ending Iraqi oil production. It must be understood that the Empire is not looking for more oil production. There is so much oil in the world that should it be drilled for freely, it would end the Money Power’s energy monopoly. The Iraq invasion and the quest for control of the Middle-East is to keep a lid on oil production. Saddam’s suicidal decision to accept euro for his oil only hastened his demise.

Even today Iraqi oil production is not even half of what it was before 1991. With the Western Oil companies now in charge, it will most likely never fully recover.

By raising the price for oil, the oil market has mopped up excess dollar supplies, which are now needed for the oil trade. As a result, the dollar has remained relatively stable in its value. Of course, it fits well with the agenda of decapitating the middle classes and under this agreement higher oil prices also means ever more oil profits invested in Wall Street.

Of course, the great boon of this for the Empire is that it can pay with worthless paper for real goods. It can eternally finance a major trade deficit.

Trade deficits are incorrectly understood as problematic.

From a nation’s point of view, the goal of trade is not to export, but to import. We export to give back for what we need from others. If you run the reserve currency, you don’t need to export as much as you import, because you can partially finance your imports with money printing. For all other nations this is impossible and trade deficits are lethal in the long run, as it leads to net capital outflow.

But the US Empire is in trouble. Its infrastructure is crumbling, its manufacturing base gone, it’s badly over extended. It needs ever more virulent threats to coerce the nations into dollar submission and just like Connally failed in 1971, the US is failing today. The Money Power is done with the Empire and the dollar and it is moving to the next phase. The dollar will have to step back and we are seeing a realignment.

The new currency order. China is moving towards a Gold backed yuan that will be very powerful in the international arena. Recently Australia, which is already completely dependent on China, with 30% of its exports going there, is preparing direct convertibility between the yuan and the Australian dollar, meaning they will no longer use US dollar to finance bilateral trade. This means less US dollars are needed in its reserve currency role.

And there is of course the euro, which, make no mistake, is in great shape. True, Eurocrat legitimacy is suffering because of the euro crisis, even in Germany the currency is losing support. But the euro crisis is purely for internal consumption, to sucker the nations into surrendering budget responsibility to Brussels. This is the final frontier for a full blown EU federalist Super State. While the euro is deeply hated, this is not really a problem for the Money Power: it isn’t in this business to make friends and it does not mind a big fight. It only fears real alternatives and these are nowhere to be seen. There is nobody proposing anything real, people are just letting off steam. Once they get their fiscal union, the crisis will quickly end. People have a short memory.

We are seeing the advent of the new currency order. There will be a number of more or less equal blocks: a dollar zone, a Yuan/BRICS zone and the euro, with the Yen and the Pound as lesser entities. These will later be able to converge to even more ‘cooperation’, in the Money Power’s relentless march towards World Currency.

These units will be at least partially Gold backed, implying long term deflationary pressures. Central Banks are buying Gold in major quantities, creating the interesting question why Gold prices have not risen in the last 18 months.

The problem for the United States will be to manage the transition. Trillions of dollars that will no longer be needed will have to be repatriated and this will lead to very strong inflationary pressures at home. It is unclear how the Fed is going to deal with that. It probably can’t. Furthermore, the US is probably in the worst of positions to deal with a new Gold standard. They claim to have 8,000 tonnes of Gold in Fort Knox, but nobody really believes that.

The hyperinflation scare that the Austrians have been promoting because of ‘money printing’ is ridiculous: we are in a stagflationary depression and prices are rising because of speculation, not because of excess money. But when the dollar loses its current status, long term price rises will become the norm. The Greatest Depression has only just started.

John Redwood, MP, writes Ministers and The UK Government. The UK has two governments for the price of three. Ministers are busier these days, because so much of what they do entails checking the EU government will let them do what they wish, or requires endless negotiation of new laws and requirements with their European partners. The EU has made huge changes to our constitution. One of the biggest is Parliament now regularly binds its successors,by rubber stamping EU law which a future UK Parliament cannot repeal. Another major change is Ministers are now not only beneath the law, but in the case of European law cannot change the law for the future when it gets in the way of good UK government (Unless the Commission, the European Parliament and other member states agree).

Given that Mr. Shedlock has complained about Liberalism’s Banker Regime, and Mr. Redwood about Eurozone interference in UK matters, it’s reasonable to believe they will complain even more about authoritarianism’s Beast Regime foretold in Revelation 13:1-4, its Beast Ruler, in Revelation 13:5-10, and Beast Banker in Revelation 13:12-18; their purpose to enforce authoritarianism’s policies of diktat and schemes of debt servitude and austerity, replacing liberalism’s policies of investment choice and schemes of credit and carry trade investment.

Diktat money has come of age. Diktat money is the developing form of money in the age of authoritarianism; diktat money will be the basis of The Beast System’s power.

Millions of LBJ’s grandchildren and great grandchildren are beginning to experience austerity with Head Start program reductions, which come with the US Government shutdown and its associated budget cuts; some 7,000 Preschool Children Nationwide Were Forced Out Of Classrooms, CBS News reports; and Millions Face Loss Of Day Care And Food As Shutdown Drags On, Samuel Davidson of WSWS report. Social program eliminations in programs such as Head Start are a form of diktat money.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability.

Diktat money is the major form of money in the age of authoritarianism, the other is physical possession of gold and silver bullion; it replaces fiat money which prevailed during the age of liberalism.

Jesus Christ acting in dispensation, that is in the administrative plan of God for the fulfillment of every age, Ephesians 1:10,  pivoted the world from liberalism into authoritarianism on Friday September 20, 2013, as is seen the chart of World Stocks, VT, trading lower in value.

Fiat money died Friday September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower, as Jesus Christ operating in dispensation, as presented by the Apostle Paul in Ephesians 1:10, that is in administrative oversight of all things economic and political, pivoted the world out of liberalism and into authoritarianism, and as such the stock market has turned from bull to bear with the Too Big To Fail Banks, RWW, trading lower in value.

Those ETF sectors which rallied over the last year and countries which rallied, from late June 2013 to late September, 2013, seen in this Finviz Screener, will be trading ever lower from the Tuesday October 1, 2013 rally, on competitive currency devaluation and on the exhaustion of the world central banks’ monetary authority, as investors come to greater realization that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

Friday, September 20, 2013, was liberalism’s day of investment instability that marked an inflection point that pivoted the world from the paradigm of liberalism into the paradigm of authoritarianism, and from a moral hazard based prosperity into a debt servitude based austerity, as the financial markets turning from risk-on to risk-off, as indicated by the Market Off ETN, OFF, trading higher, and the stock market turned from bull to bear. Risk on investing has turned to risk off disinvestment. Those companies which were were liberalism’s investment darlings will be authoritarianism’s loss leaders.

Liberalism Was The Age Of Wildcat Finance And Investment Choice … Authoritarianism Is The Age Of Wildcat Governance And Diktat

October 8, 2013

Financial Market Report for the Week Ending Friday October 4, 2013

1) … The short selling opportunity of a lifetime has emerged with the stock market rally of  Tuesday October 1, 2013.

Tuesday October 1, 2013, was a strongly bullish day in the financial markets with short covering accounting for the day’s gain as Yahoo Finance In Play reports Risk assets benefited from the rebound in Europe where yesterday’s fears of a possible collapse of the Italian government were alleviated by reports indicating about 20 PDL ministers are ready to form a breakaway party supporting Prime Minister Enrico Letta. The fluid situation is expected to become a bit clearer tomorrow when the prime minister appears in front of the parliament.

Precious Metals traded strongly lower with Gold, GLD, -2.8%, and Silver, SLV -2.3, which stimulated Gold and Silver Mining lower, GDX -2.4%, GDXJ -3.1, SIL -2.1, SSRI -1.8; the outlook for these stocks is terribly bearish as not only are they unable to leverage higher on rising prices of the underlying commodity, but are leveraged lower on falling prices.

World Stocks, VT, rose 0.8%, Nation Investment, EFA, 0.5%, Global Industrial Producers, FXR, 1.2%, nearing its recent high, and Solar, TAN, 4.0%, led a whole host of sectors higher which included

Inverse Volatility, XIV 3.3

Paper Producers, WOOD 2.1

Pharmaceuticals, PJP 2.0

Nasdaq Internet, PNQI 2.0 New High

Biotechnology, IBB 2.0 New High

Internet Retail, FDN 1.7 New High

Media, PBS 1.6 New High

Health Care Providers, IHF 1.5

China Industrials, CHII 1.5

Design Build, PKB, 1.2

Transportation, XTN 1.2

Retail, XRT 1.3

IPOs, FPX 1.3

Resorts and Casinos, BJK 1.2

Semiconductors, SMH 1.2

Networking, IGN 1.2

Small Cap Pure Value, RZV 1.2 New High

Financials,

European Financials, EUFN, 1.1 led by LYG, RBS, UBS, CS, SAN, IRE, DB,

Energy

Small Cap Energy, PSCE 2.2 New High

Energy Production, XOP 2.0 New High

Yield Bearing Investments,

Global Telecom, IST 1.3 New High

US Stocks,VTI 0.9

BRICS, EEB 1.3

Russia, RSX 2.3

India, INP 1.7

China, YAO 1.6

Brazil, EWZ 1.0

Nation Investment, EFA, 0.5

Taiwan, EWT 1.7

South Korea, EWY 1.5

Sweden, EWD 1.5

Emerging Markets EEM, 2.0

Turkey, TUR 4.7

Thailand, THD 4.6

Philippines, EPHE 2.2

Mexico, EWW 2.4

Argentina, ARGT, 2.8 New High, led by BBVA, BFR, GGAL

Egypt, EGPT 1.9 New High

Eurozone, EZU, 1.2 led by Life Insurance Company, ING,

Italy, EWI 2.5 New High

Greece, GREK 2.1 New High

Spain, EWP 1.6 New High

Netherlands, EWN 1.2

Finland, EFNL 1.2

Credit traded lower as the Interest Rate on the US Ten Year Note, ^TNX trade higher to close at 2.65%

Aggregate Credit, AGG -.25

High Yield Municipal Bonds, HYD -1.0

Zeroes, ZROZ -0.7

30 Year US Treasuries, EDV -0.7

Ten Year Government Notes, TLT -0.6

Emerging Market Bonds, EMB -0.6

Long Duration Corporate Treasuries, BLV -0.6

Fiat money died Friday September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower, as Jesus Christ is operating in dispensation, as presented by the Apostle Paul in Ephesians 1:10, that is in administrative oversight of all things economic and political, and has pivoted the world out of liberalism and into authoritarianism, and as such the stock market has turned from bull to bear; those ETF sectors which rallied over the last year and countries which rallied from late June 2013 to late September, 2013, seen in this Finviz Screener, will be trading lower from the Tuesday October 1, 2013 rally, on competitive currency devaluation and on the exhaustion of the world central banks’ monetary authority as investors come to greater realization that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

The late September 2013, S&P 500, $SPX, price of 1709, and SPY price of 172, reflects an Elliott Wave 5 High. Thus the October 1, 2013, rally marked the short selling opportunity of a lifetime, as in a bull market one buys into dips, but in a bear market, one sells into pips. Of note Sam Jones and Arash Massoudi of Financial Times report Hedge funds’ bets on falling share prices have dropped to their lowest level in years as traders predict an extended bull run for equities over the coming months. According to data from Markit, the overall value of short positions on European shares has dropped to $133bn, the lowest level since the data provider began monitoring in 2006. In the US too, short positions are touching record lows. Just 2.4% of S&P 500 shares are on loan to short sellers.

When fiat money died Friday September 20, 2013, with the trade lower in World Stocks, VT, Major World Currencies, DBV, and Emerging Market Economies, CEW, a new form of money rose to govern mankind’s economic transactions, that being diktat money.

Thursday, October 3, 2013, was a bearish day, as ETF Daily News reports Outer limits of monetary policy and inflation and the Finviz Chart of the Market OFF ETN, OFF, rose, and the Yahoo Finance Chart of Volatility, ^VIX, also rose, stimulating Volatility ETFs, TVIX,VIXY,VIXM, higher.  The Great Bear Market that commenced Friday September 20, 2013, recommenced Thursday, October 3, 2013, as is seen in the 200% Bear Market ETFS, such as BIS, FXP, SQQQ, SDD, SSG, trading higher.

The chart of the S&P 500, $SPX, seen here in Chart Gazer chart, shows a 0.9% close lower at 1,697; its 50 day moving average.

Nations trading lower included

Indonesia, IDX,

Mexico, EWW

Philippines, EPHE

Turkey, TUR

Brazil, EWZ, and Brazil Small Caps, EWZS

Sectors trading lower included

Inverse Volatility, XIV

Solar, TAN

Internet Retail, FDN

Nasdaq Internet, PNQI

Biotechnology, IBB

Homebuilding, ITB

US Infrastructure, PKB

Media, PBS

Design Build, FLM

Small Cap Pure Value, RZV

Aerospace, IBB

Small Cap Industrials, PSCI

Industrials, XLI

Paper Producers, WOOD

Automobiles, CARZ

Steel, SLX

IPOS, FPX

Consumer Discretionary, IYC

Retail, XRT

Yield Bearing Sectors trading lower included

Utilities, XLU

Global Real Estate, DRW

Real Estate, IYR

Leveraged Buyouts, PSP

Of note, Global Consumer Staples, KXI, seen in this Finviz Screener, which includes TSN, PG, KRFT, MDLZ, CAG, and GIS, is a loss leading sector, since September 20, 2013, as is seen in their combined ongoing Yahoo Finance Chart.

The decline in the price of Gold, $GOLD, since late August 2013, is a buying opportunity, as the Gold ETF, GLD, is in an Elliott Wave 3 Up, from its early July 2013 bottom of 117.5, as is seen its Weekly Finviz Chart. The Elliott Wave 3 Ups, are the most dramatic of all economic waves, and create the bulk of wealth gains, of all of the ascending five waves

On Thursday, October 3, 2013, Spot Gold, $GOLD, closed at $1,316, with support lower at $1,300 and a strong floor at $1,275. The chart of the Gold ETF, GLD, rose slightly, to the edge of a massive consolidation triangle, to close at 127, from which it will either break out, or break lower. Either way, it is wise to Dollar Cost Average, an investment in the purchase of gold bullion, as in the age of authoritarianism, the possession of gold and diktat, will be the two forms of sovereign and sustainable wealth.

On Thursday, October 3, 2013, the chart of the Euro, FXE, shows a close at 134.82; likely it’s rally high. And the chart of the Yen, FXY, shows a close at 100.54; with room to rally higher.

The Yahoo Finance chart of the EUR/JPY, and the Google Finance Chart of the EUR/JPY, and the Forex Trading chart of the EUR/JPY, and FXStreet chart of the EUR/JPY, show a close at 132.45 on October 3, 2013; from which a trade lower, will soon propel Eurozone Stocks, EZU, and European Financials, EUFN, as well as World Stocks, VT, lower, as The Great Bear Market of all time commenced Friday, September 20, 2013, and envigorated Thursday, October 3, 2013.

Jesus Christ, operating in Dispensation, that is in administration of all things economic and political, as presented by the Apostle Paul in Ephesians 1:10, completed liberalism with a burst of credit in the No Taper Rally, and a rally in currency carry trade investing, followed by a trade lower in World Stocks, VT, Nation Investment, EFA, and Global Industrial Producers, FXR, and US Stocks,VTI, such as the S&P 500, to which Jack Chan of JC’s Buy and Sell Signals, gave his Sell Signal to the S&P 500, SPY, during the week ending Friday, October 4, 2013.

       

On Friday, October 4, 2013, currency traders took the Japanese Yen, FXY, slightly lower to a new weekly rally high, at 100.30, its dark filled candlestick suggests that the rally in the Yen, is at its zenith. And the Euro, FXE, even more slightly lower, to a new weekly rally high of 134.12, forcing the EUR/JPY, to lower to close the week lower at 132.04, yet Eurozone Stocks, EZU, rose to close near their all time high.

While Resorts and Casinos, BJK, International Telecom, IST, IPOs, FPX, Small Cap Energy, PSCE, and Energy Production, XOP, traded to a new rally high, monetization of debt, has finally turned money good investments bad.  Investments in Risk Assets, such as Small Cap Value Socks, RZV, has ended, as confirmed the Market Off ETN, OFF, and Volatility, XVZ, trading higher this month of October 2013.  The interventionist policies of the world central banks no longer provide investment stimulus in Global Industrial Producers, FXR, as leaders such LPL, IP, WHR, MHK, PHG, ERIC, VPRT, ABB, ENR,  ITW, ROK, MMM, FLS, SNA, LECO, SI, GM, GE, and BA, are trading lower. Jesus Christ acting in the Economy of God, Ephesians, 1:10, has ended the Fed; He did what Ron Paul could not do.

Yes, the Fed be dead. Charles Hugh-Smith of OfTwoMinds blog, writes in Zero Hedge, The Fed Bubble Era Is Over This is seen in the Too Big To Fail Banks, RWW, trading lower from their rally highs. And Asset Managers such as BlackRock, BLK, and Eaton Vance, EV, that coined liberalism’s wealth, are trading lower as well.  Now under authoritarianism, the policies of nannycrats and technocrats, working in schemes of regional integration, will underwrite economic activity.

Debt deflation, specifically competitive currency devaluation, has commenced, terminating Nation Investment, EFA, and Small Cap Nation Investment, IFSM, and Emerging Market Investment, EEM, and liberalism’s fiat wealth, VT. The ongoing destruction of fiat money can be followed via the trade lower in Stock ETFs, seen in this Finviz Screener, and the Currency ETFs, seen in this Finviz Screener

A falling EUR/JPY, has turned the Swedish Krona, FXS, lower, taking Sweden, EWD, lower; and has turned the Swiss Franc, FXF, lower, taking Switzerland, EWL, lower.

A falling British Pound Sterling, FXB, has turned the UK, EWU, and UK Small Caps, EWUS, lower.

The Chinese Yuan, CYB, popped higher, suggesting that it can go still higher.

The Indian Rupe, ICN, rose to a new rally high, taking India, INP, SCIN, higher,  Yet its banks, IBN, and HDB, while rising today, are India’s dead weight. In similar fashion Mexico’s BSMX, is Mexico’s, EWW, dead weight.

The rising Japanese, Yen, FXY, now at strong resistance, has turned Far East Financials, FEFN, such as SMFG, MFG, MTU, and IX, and Japan, EWJ, and its exporters, such as SNE, CAJ, KYO, HMC, and NJ, as well as Japan Small Caps, JSC, such as MKTAY, lower; the Nikkei, NKY, lost 2.8% the week ending October 4, 2013.

In perverse way, the National Bank of Greece, NBG, rose taking Greece, GREK, to a new rally high. Italy, EWI, and Spain, EWP, rose to a new rally high as well, while Ireland, EIRL, Netherlands, EWN, Germany, EWG, and Finland, EFNL, have peaked. Reuters reports Greece’s Piraeus And NBG To Set Up Bad Banks As Bad Loans Soar.

Liberalism’s credit is at its zenith as World Treasury Bonds, BWX, and International Corporate Bonds, PICB, stand at their rally high, while Emerging Market Bonds, EMB, and US Treasuries, TLT, have sold off.  The trade lower in Junk Bonds, JNK, and Ultra Junk Bonds, UJB, as well as the trade lower in Convertible Securities, CWB, reflects the beginning of the end of liberalism’s credit. Of note Credit Providers, such as American Express, AXP, seen in this Finviz Screener, are trading lower.

The strong trade lower in the US Dollar, $USD, seen in the chart of its 200% ETF, UUP, has finally put the nail in the coffin of the Milton Friedman Free To Choose, Banker Regime.  Major World Currencies, DBV, and Emerging Market Currencies, CEW, are no longer floating, they are sinking. The US Dollar no longer serves as the world’s reserve international currency, and as a result World Real Estate Excluding the US, DRW, and Real Estate, IYR, are trading lower in value. The Chinese Renminbi will serve as a regional currency for the Association of Southeast Asian Nations, ASEAN, trade bloc. Trust in the diktat of regional alliances will be the basis for regional integration and economic sustainability in the age of authoritarianism.

The Chinese Money Report provides the WSJ report China for the first time joined the ranks of the most-traded international currencies, underscoring the rise of the world’s second largest economy

and the growth of the global foreign exchange market. The Chinese Yuan vaulted to ninth in the Bank for International Settlements’ latest report on foreign exchange turnover, surpassing the Swedish Krona and New Zealand Dollar, among other widely used currencies.

Trading in the Chinese currency, also known as the renminbi, has more than tripled over the past three years, to $120 billion a day in 2013, the BIS said, referencing survey data from April.  Daily U.S. Dollar trading in 2013 has averaged $4.65 trillion. Yuan gains highlight China’s ambitions to play a larger role in a market long dominated by the dollar and, to a lesser extent, the Euro.  Daily global currency flows have risen more than 30% in three years. The Yuan ranked 17th in the previous BIS survey, in 2010.  The shift also highlights the international nature of the manufacturing supply chain and the flexibility U.S. based firms can gain by using Yuan.

2)  … John The Revelator, at the age of 90, while in exile on the Isle of Patmos, wrote the details of a dream given to him by angels, which foretells that regional governance and totalitarian collectivism will arise out of waves of sovereign and banking insolvency in the Mediterranean Sea nations of Portugal, Italy, Greece and Spain.

Inasmuch as the sovereignty of nation states is failing, on the collapse of fiat money, beginning with the Emerging Market Currencies, CEW, and Emerging Market Bonds, EMB, nannycrats will increasingly meet in summits and work groups, to renounce national sovereignty, and to establish regional sovereignty, where monetary, fiscal, and economic policies will be directed by statist public private partnerships of banks, businesses, labor organizations and governments, all acting to establish regional integration for the purpose regional security, stability and sustainability.

The IMF is showing the way forward, as the centerpiece statement of its position paper More Fiscal Integration to Boost Euro Area Resilience, dated September 25, 2013, calls for better oversight of national policies and enforcement of rules: “Going forward, reinstating fiscal discipline and reviving market discipline may require stronger involvement of the center in national fiscal decisions.”

Peter Schwarz of WSWS reports The Return Of The Euro Crisis. In the euro zone, the average sovereign debt has risen from 88 to 92 percent of gross domestic product (GDP) in just one year. Despite deep cuts that have left over half of the country’s youth out of work, Spain had a budget deficit of 10.2 percent of GDP last year, Greece of 10, Ireland of 8.3, and Portugal of 6.4 percent. France also will not meet the 3 percent limit demanded by the EU; its budget deficit is expected to exceed 4 percent.

After the failure of the no-confidence vote against Italian Prime Minister Enrico Letta, the financial press called for more social cuts. Letta “now has the upper hand,” wrote the Financial Times. He must re-establish the country’s competitiveness “by cutting the high taxes on labor and paying for it by slashing public spending.”

I relate that out of a soon coming Financial Apocalypse, that is a credit bust, and global financial system breakdown, foretold in Bible prophecy of Revelation 13:3-4, a One Euro Government will rise to provide order; it will be a United States of Europe, with a great democratic deficit.

WSWS reports on German Unity Day, German President Joachim Gauck Calls For A Stronger German Role In World Politics And In The Euro Crisis. “The question is bluntly posed: does our commitment reflect the importance of our country,” he said.

The periphery nations, will exist as hollow moons revolving about planet Brussels and planet Berlin. While Greeks cannot be Germans, all will be living as one, in common debt servitude to centralized task masters, such as Jenz Weidmann, President of the Bundesbank, and Viviane Reding,   European Commissioner for Justice, Fundamental Rights and Citizenship, as they direct a Eurozone Fiscal Union. She is seen in Facebook Meeting with Pietro De Matteis, co-President of the European Federalist Party; and is seen in Youtube Video Address for a Federal Europe.  Of note The Express UK recently reported Fury Erupted Over A Fresh Brussels Plot To Transform The EU Into A Federal Superstate. Justice commissioner ­Viviane Reding, a European Federalist, communicated the EU should have powers to impose human rights rulings. Her masterplan includes a vision of the European Commission as a “quasi-judicial authority” alongside an EU “justice minister” and powers for Europe’s courts to impose rulings, overriding national governments.

Liberalism featured trust in the world central bankers for investment gain. Now in authoritarianism, specifically out of waves of economic and political turmoil in the Mediterranean Sea nation states of Portugal, Italy, Greece, and Spain, people will come to trust in the word, will, and way of sovereign regional leaders, that is statist nannycrats, for regional security, stability, and sustainability, as communicated in bible prophecy of Revelation 13:3-4.

Doug Noland of Prudent Bear frequently penned liberalism as the age of wildcat finance; an epoch where bankers of all types fiercely strived to outdo one another to generate the greatest investment results, and where Ben Bernanke fathered credit easing.

But now with Jesus Christ, operating in dispensation, that is the administration of all things economic and political, as presented in Ephesians 1:10, the world has pivoted from liberalism to authoritarianism, where Angela Merkel fathered debt servitude with Greek Bailouts I, and II, and where she in calling for More Europe, laid the groundwork for a soon coming One Euro Government.

Authoritarianism is the age of wildcat governance, where leaders bite, rip and tear one another apart, in their struggle to become top dog leader; these will increasingly rule regionally, in diktat.

Peter Schwarz of WSWS reports on the emergence of wildcat goverance and its diktat in article Italian Government Survives Confidence Vote. When it became clear that Letta would survive the confidence vote, Berlusconi backed down. On Wednesday, he called for support for the prime minister and voted in favor of the government. As a result, far from being resolved, the political crisis has merely been postponed.

In the media, the conflict between Berlusconi and Letta is invariably portrayed as pitting an egomaniac who pursues his own interests against a selfless premier who puts the interests of the country first. In reality, behind all the twists and turns there is the attempt to establish a government that is stable enough to enforce hitherto unimaginable social attacks against the Italian working class.

Letta is a Christian Democrat who owes his political rise to support from the successor organization of the Italian Communist Party. He is currently regarded by both the European and Italian bourgeoisie as best suited for the task of imposing new austerity measures. This is why he enjoys the full support of all European governments and the European Union, and why a wing of Berlusconi’s PdL has now turned against its mentor and lined up behind Letta.

When Berlusconi withdrew his support from the government, Italian share prices plummeted and interest rates on government bonds soared. On Tuesday, when it appeared increasingly likely that Letta would obtain a majority, the trend on the stock markets reversed. The rates charged for Italian government bonds fell sharply and the Milan stock exchange rose by 3.1 percent. Ironically, the share of Berlusconi’s Mediaset group also rose by 6 percent.

In his speech to the Senate on Wednesday, Letta tried to win support by promising to reduce taxes, cut public spending and reform political institutions to ensure stable governance.

For his part, Berlusconi justified his support by citing Letta’s commitment to cut taxes, initiate reforms of the judiciary and particularly to reduce the cost of labour.

The savings and labor market reforms Letta proposes are huge and will reduce the working population to a standard of living comparable to that at the beginning of last century—a period of bitter poverty recorded in many notable literary works.

Italy is currently in a deep recession. Industrial production has fallen by a quarter since 2007, and GDP will shrink this year by 2 percent. The official unemployment rate is 12 percent, and among young people, a massive 40 percent. The national debt is 135 percent of GDP and rising. To reverse this trend, Letta plans to slash billions in social spending.

Rather than constituting a “historic day for Italian democracy”, as Letta claimed in his speech to the Senate, Wednesday’s confidence vote demonstrates a closing of ranks within the ruling class in order to undertake a fresh assault on the working class.

The Johannes Stern WSWS report German President Gauck Calls For Aggressive Foreign Policy is of timely importance as Bible prophecy foretells of the rise of a Eurozone Ruler, that is the Sovereign, seen in Revelation 13:5-10, to be accompanied in his rise to power by a Banker, the Seignior, presented in Revelation 13:11-18, who will call people to worship him.  The European Ruler’s power will come through his adept working in regional framework agreements of diktat, and will be so great, that this one described as The Little Horn, one of seemingly little authority, will set his attentions on The Glorious Land, Daniel 8:1-27, and as the propheced Prince who is to come, will provide a Middle East Peace Plan, and establish a One World Government, and One World Religion, with his global headquarters in Jerusalem, Daniel 9:25. This individual is described as the Son of Perdition, that is the Son of Destruction, a truly lawless individual, 2 Thessalonians 2: 2-4. And he is described as the Willful King in Daniel 11:36-45. The Apostle Paul relates that the coming of the Lawless One will be by the activity of Satan, 2 Thessalonians 2:9, and the Apostle stresses he will perform great signs and wonders, that will deceive many people, 2 Thessalonians 2:8.  This individual is one who takes the place of and serves as a substitute for Jesus Christ, 1 John 2:18-22. He is the Prince of the Covenant, that is the Middle East Peace Pact. After the league is made with him, he will act deceitfully, as he will arise and become strong with a small number of people, having usurped the high priestly office of Israel for power and gain, Daniel 11:22-23.  In the middle of the week, that is at the 3 and 1/2 year mark of his rule in Jerusalem, he will bring an end to sacrifice and offering, Daniel 9:27, and impose emperor worship from all of earth’s inhabitants and impose the Charagma, 666, money system, Revelation 13:18.

Those Things Which Much Shortly Come to Pass Will Unleash A New Sovereignty And A New Seigniorage As A Sovereign Encounter With Jesus Christ Forces Stocks And Currencies To Trade Lower In Value

October 4, 2013

Financial Market Report for the week ending September 27, 2013

1) … Those things which must shortly come to pass will unleash a new sovereignty and a new seigniorage.

Friday, September 20, 2013, was liberalism’s day of investment instability that marked an inflection point that pivoted the world from the paradigm of liberalism into the paradigm of authoritarianism, and from a moral hazard based prosperity into a debt servitude based austerity. With the financial markets turning from risk-on to risk-off, as indicated by the Market Off ETN, OFF, trading higher, and  the stock market turne from bull to bear.

Currency Carry Trades unwound worldwide with the Japanese Yen, FXY, trading higher and individual currencies such as the India Rupe, ICN, and the Euro, FXE, trading lower. Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, causing investors to derisk and deleverage out of World Stocks, VT, and Global Industrial Producers, FXR, such as BA, UTX, DOW, EMR, GE, ROK, F, GM, MT, CRH, BUD, SAP, CNH, COV, CRH, MHK, HON, MMM.

Action Forex chart report shows the EUR/JPY closed at 134.54, standing at the middle of a broadening top pattern, that goes back to January 2010; it’s as Street Authority relates, when you see the broadening too, the market will eventually drop.  Yahoo Finance chart report showing the EUR/JPY down from its Wednesday September 18, 2013, high of 134.726, on Wednesday September 18, 2013, evidences the zenith of carry trade investing in the business cycle.

With Jesus Christ at the helm of the Economy of God, Ephesians 1:10, World Stocks, VT, and Nation Investment, EFA, traded lower, on Friday September 20, 2013, from the climax of the No Taper Rally,with the Emerging Markets, EEM, and Asia Excluding Japan, EPP, leading, the way lower. South Africa, India, INP, Thailand, THD, The Philippines, EPHE, Indonesia, IDX, Malaysia, EWM, Turkey, TUR, and Chile, ECH, traded lower, on the the exhaustion of the US Fed’s monetary policies of easing, as the provision of QEternity marked the crossing of the Rubicon of sound monetary policy, and destabilized global economics pivoting the world from liberalism’s banker regime of democratic nation states into authoritarianism’s beast regime of regional governance and totalitarian collectivism.

The 1.3% rise seen in the weekly chart of the S&P 500, $SPX, closing at 1709, reflects an Elliott Wave 5 High.  The chart of $NYMO, shows there is as sudden and severe loss of breadth momentum (an important red flag) is taking place, communicating that one should flee to the exit doors, as the stock market is moving from bull to bear.

India Banks, EPI, such as IBN and HDB, led India, INP, and the Emerging Market Financials, EMFN, lower.

The National Bank of Greece, NBG, Ireland’s IRE, and Germany’s DB, led Greece, GREK, Ireland, EIRL, and the European Financials, EUFN, lower.

China’s Bank, SHG, and China Financials, CHIX, led China, YAO, and Far East Financials, FEFN, lower. The Finviz chart of Catalog and Mail Order Company, DANG, shows a massive broadening top pattern, with rise to strong resistance at 9.84.  It’s as Street Authority relates When you see the broadening top, the market will eventually drop.

Interest Rate Sensitive Stocks, that is Leveraged Buyouts, PSP, Home Builders, ITB, Utilities, XLU, Global Utilities, DBU, Real Estate, IYR, and Global Real Estate, DRW, traded lower.

Sectors trading lower included Aerospace, PPA, Paper Producers, WOOD, and Automobiles, CARZ. And Metal Manufacturing, XME, was led lower by Coal Miners, KOL, Industrial Miners, PICK, and Steel Producers, SLX. And Gold, GLD, and Silver, SLV, traded lower, forcing Junior Gold Mines, GDXJ, Gold Miners, GDX, Junior Silver Miners, SILJ, and Silver Miners, SIL, lower.

Aggregate Credit, AGG, traded unchanged, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to close the week at 2.73%, down sharply from its recent high near 3.0%.

Financial Times Lexicon writes of Bubblecovery. A bubblecovery is a term coined by financial blogger Jesse Colombo to describe what he calls a bubble-driven economic recovery spurred by cheap credit. He says the cheap credit has a tendency to flow into temporary growth-generating speculative endeavours.

JP of The Capital Spectator writes The evidence is compelling for arguing that the latest profile of economic activity continues to suggest that business cycle risk is low.

But I contend, that both the fiat asset inflation and economic expansion part of the business cycle ended Friday September 20, 2013, with Aggregate Credit, AGG, having fallen strongly in value since May 2013, and now with the weekly jobless claims report heralding the reality that the economy is failing to produce new jobs, as Andrew Klips reports in Equities.com reports. In August, the U.S. only added 169,000 new jobs and June and July figures underwent sharp revisions, including July’s figure plunging to only 104,000 new jobs. The unemployment rate ticked down to 7.3 percent, but only because more people gave up actively seeking employment.

The 38 ETFs seen in this Finviz Screener, exemplify the financial assets that have been fueled by Bubblcovery, that is by stimulus of the US Federal Reserve’s QE monetary policy, and are poised to fall strongly lower on the exhaustion of the US Fed’s and world central bank’s monetary authority, that is as bond vigilantes, begin calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.73%, and currency traders once again, begin selling Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower; these are XIV, FDN, CARZ, PBS, IBB, RZV, PSCI, FPX, IAI, XTN, SMH, XRT, PJP, PSP, TAN, RXI, FLM, EIRL, WOOD, EUFN, RWW, FXR, BJK, PBJ, EFNL, YAO, PPA, PNQI, EZA, KROO, ARGT, EWY, GNW. The short selling opportunity of a lifetime has arrived, and these ETFs can serve as the basis of a short selling portfolio, as well as a metric to follow the entrance into Kondratieff Winter, the very last season of the business cycle. Wiley investors went long these fiat assets, lived risk free on a moral hazard based rally, to experience tremendous gains; but now it’s as Mamta Badkar of Business Insider writes, All Hell Is Going To Break Loose, Fleckenstein Says.

Asset Managers such as Blackrock, BLK, coined the final swell of Liberalism’s wealth with QEternity; since April 2009 the Keynesian and Monetarist money printing policies of the US Federal Reserve, together with carry trade financing have inflated the Sector ETFs from this Finviz Screener as follows below.

The business cycle is now showing nascent signs of completion, with the weekly jobless report indicating that the economy is failing to provide new jobs, and the PMI is in downturn, and that an investment bubble is apparent … presenting both short selling opportunities, as well as the opportunity for investing in physical possession of gold bullion.

Fiat money died Friday September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower as Jesus Christ is operating in dispensation, presented by the Apostle Paul in Ephesians 1:10, that is in administrative oversight of all things economic and political, and has pivoted the world out of liberalism and into authoritarianism, and as such the stock market is turning from bull to bear; those ETF sectors which rallied over the last year and countries which rallied from late June 2013 to late September, 2013, seen in this Finviz Screener, will be trading lower on competitive currency devaluation and on the exhaustion of the world central banks’ monetary authority as investors come to greater realization that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

Please consider Corollary #8 from the Dispensation Economics Manifest. The No Taper Rally of September 18, 2013, in World Stocks, Major World Currencies, DBV, and Emerging Market Currencies, was Liberalism’s peak event, which terminated the Creature Jekyll Island and birthed the Beast Regime of Revelation 13:1-4. and which pivoted the world from a policy of investment choice …  consisting of credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, currency carry trade investing, securitization of debt,  dollarization, financialization of stocks and ETFs, such as corporate bonds which convert into stocks, all of which created capital for corporations to operate and revenue for governments to operate …  to a policy of diktat … consisting of debt servitude schemes, such as, regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability.

The gains seen in the following ETFs over the last year, are over, through, finished, and done.

Internet Retail, FDN, 40%

Automobiles, CARZ, 56%

Media, PBS, 39%

Biotechnology, IBB, 45%

Small Cap Pure Value, RZV, 33%

Small Cap Industrial, PSCI, 35%

IPOs, FPX, 42%

Stock Brokers, IAI, 46%

Transportation, XTN, 48%

Semiconductors, SMH, 26%

Retail, XRT, 29%

Pharmaceuticals, PJP, 35%

Leveraged Buyouts, PSP, 32%

Solar, TAN, 87%; of note this ETF, rose 1.1% today, and ReneSola, SOL, traded strongly lower.

Global Consumer Discretionary, RXI, 33%

Design Build, FLM, 22%

Paper Producers, WOOD, 24%

Too Big To Fail Banks, RWW, 35%

Global Industrial Producers, FXR, 36%

Resorts and Casinos, BJK, 44%,

Food and Beverage, PBJ, 28%

Aerospace, PPA, 40%

Nasdaq Internet, PNQI, 45%

The Keystone Speculator posts VIX Volatility Daily Chart  Projection is for VIX to move higher in the days and weeks ahead, and, considering the CR deadline is now only 6 days away, it is reasonable to expect fear to increase and volatility to rise. I comment look for Volatility, XVZ, as well as TVIX, VIXY, VIXM, seen in this Finviz Screener to soar.

Michael Snyder of The Economic Collapse blog, asks in ZeroHedge Are You Ready For Yellenomics?  Are you ready for Janet Yellen? Wall Street wants her, the mainstream media wants her and it appears that her confirmation would be a slam dunk. She would be the first woman ever to chair the Federal Reserve, and her philosophy is that a little bit of inflation is actually good for an economy. She was reportedly the architect for many of the unprecedented monetary decisions that Ben Bernanke made during his tenure, and that has many on Wall Street and in the media very excited. Noting that we “already know that Yellen is on board with Bernanke’s easy money policies”, CNN recently even went so far as to publish a rabidly pro-Yellen article with this stunning headline: “Dear Mr. President: Name Yellen now!

But after watching what a disaster Bernanke has been, do we really want more of the same? It doesn’t really matter whether she is a woman, a man, a giant lizard or a robot, the question is whether or not she is going to continue to take us down the path to ruin that Bernanke has taken us. As I have written about so many times, the Federal Reserve is at the very heart of our economic problems, and under Bernanke the Fed has created a mammoth financial bubble unlike anything that we have ever seen before. If Yellen keeps us going down that road, financial disaster is inevitable.

Sadly, Yellen is not a woman that believes in free markets. She had the following to say back in 1999

“Will capitalist economies operate at full employment in the absence of routine intervention?  Certainly not.”  Yellen believes that without the “routine intervention” of the central planners at the Fed, our economy will not produce satisfactory results. So if you thought that Bernanke was an “interventionist”, you haven’t seen anything yet.

In fact, according to Time Magazine, Yellen was continually urging Bernanke to do even more “to help stimulate the economy”. But as the most recent financial crisis proved, a good Fed chief needs to be willing to think outside the box to achieve its goals of low, steady inflation and full employment. This is exactly what Bernanke did, using the powers of his office to launch a massive bond-buying program aimed at lowering interest rates further down the yield curve and promising to keep short-term interest rates at near zero for years. Bernanke, however, didn’t launch these programs immediately. Behind the scenes, it was reportedly Yellen who was the most forceful advocate for the Fed doing more to help stimulate the economy. It is truly frightening to think that Yellen might turn out to be “Bernanke on steroids”. Let’s hope that she is not the choice.

The costs of healthcare are too big to pay for. So, the doctor can’t see you now, that’s right, rationing of doctors and services has commenced. Under President Obama’s Affordable Care Act, with a swell of people coming into the system with the dual mandate to cover preexisting conditions and the mandate to hold down premiums, health care providers and major insurers are sharply limiting the number of doctors and hospitals available to patients in the various states’ new health insurance markets opening Oct. 1, 2013.

Fox News reports Ohio Clinic Touted By Obama Slashes Budget Due To ObamaCare. An Ohio clinic that was touted by Obama while he was speaking on health care reform is now blaming ObamaCare after it was forced to cut $330 million from its budget. Fox 8 reports the Cleveland Clinic, which is the largest employer in Northeast Ohio with about 39,000 workers in the region, announced the cuts to its 2014 budget at a meeting Wednesday. A spokeswoman for the clinic tells Fox News the clinic is being forced to cut back to prepare for increased costs and decreased revenue under the health care reform law. These changes will include offering early retirement to approximately 3,000 employees, reducing operational costs, and then layoffs as needed.

Steve Midkiff writes of A Sovereign Encounter heralding “those things which must shortly come to pass” as presented in Revelation 1:1.

It is through Christ’s Sovereignty, and out of banking insolvency and sovereign insolvency of the Mediterranean Nation Sea States of Portugal, Italy, Greece and Spain, that is out of a Financial Apocalypse, a credit bust and financial system breakdown, that nannycrats will unleash Authoritarianism’s sovereignty of regional governance and totalitarian collectivism, as well as its seigniorage of diktat, as foretold in Revelation 13:1-4.

Liberalism was defined by what Doug Noland terms wildcat finance, where bankers of all types fiercely outdo one another to generate the greatest investment gains, and where Ben Bernanke fathered credit easing.

Authoritarianism, on the other hand, is defined by wildcat governance, where leaders bite, rip and tear one another apart in their struggle to become top dog leader, and where Angela Merkel fathered debt servitude with Greek Bailouts I, and II, and she  in calling for More Europe, laid the groundwork for a soon coming One Euro Government.

Of note, Katerina Selin and Christoph Dreir of WSWS writes Greek workers demonstrate against mass sackings, fascist violence. Protests were held in all major Greek cities Wednesday, September 18, 2013, against the austerity measures of the Greek government and the European Union.

The Globe and Mail of Toronto writes For Victorious Merkel, Little Incentive To Change Course On Austerity and Reuters reports Merkel Romps To Victory But Faces Tough Coalition Choices and an

article in Greek Ta Nea carries the headline, Europe becomes Merkeland after the triumph of the Queen of austerity.  WSWS writes Why Merkel Won The German Elections.

Charles Hugh-Smith of the OfTwoMinds blog, posts in Zero Hedge The Big-Picture Economy, Part 3: Scarcity, Risk And Debt. Manipulating rates to near-zero and opening the credit floodgates has incentivized everything sound economic policy avoids: moral hazard, speculation, leverage and reliance on marginal credit expansion for profits and “growth.” “Growth” that depends on manipulated interest rates and easy credit is a sand castle awaiting the rising tide; its destruction is assured.

Money as it has been known no longer exists. Fiat money died Friday September 18, 2013, with the trade lower in World Stocks, VT, Major World Currencies, DBV, and Emerging Market Economies, CEW.  Diktat money is rising it its place, as the sovereignty of nation states gives way, and nannycrats meet in summits and work group to renounce national sovereignty, and establish ever increasing regional sovereignty. Liberalism featured credit, and trust in the world central bankers. Another word for credit is trust. Now in authoritarianism, specifically out of waves of economic and political turmoil in the Mediterranean Sea nation states of Portugal, Italy, Greece, and Spain, people will come to trust in the word, will, and way of sovereign regional leaders, that is statist nannycrats, for regional security, stability, and sustainability, as communicated in bible prophecy of Revelation 13:3-4.

On Friday September 20, 2013, the National Bank of Greece, NBG, led both Greece, GREK, and the European Financials, EUFN, lower, as Roger Cohen of NY Times The perfect political storm for violent extremism has descended on Greece. As Kyriakos Mitsotakis, the minister responsible for the cuts, explained to me inside the besieged ministry, the message from the “troika” (the International Monetary Fund, the European Commission and the European Central Bank) is clear: “If you don’t do it, no more money!” Europe’s requirement is: Reform or else.

Greece, with an estimated $3.3 billion shortfall in its social security fund this year and a larger financing gap looming over the next two years, still needs money, if much less than before. More urgently, it needs international understanding. The combination of the demands of the troika (widely seen by Greeks as a Trojan horse for Germany) and the frustration evident outside the ministry, Soultos’s private sector has lost close to 1.5 million jobs as unemployment has reached 28 percent, is combustible.

Troika officials will visit Athens next week. If they make further demands for cuts in wages and pensions they could push Greece over the edge. Germany has not yet learned to play the benign superpower. It is time; and after the German election this Sunday there may be a little more wiggle room. Toughness toward Greece has played well in Germany but, as Mitsotakis put it: “The country has been stretched to its limits. This needs to be very, very clear.”

LuggageTag posts Greece Is Characterized By The 3Cs: Cronyism, Clientelism And Corruption. The pervasiveness of corruption at all levels of society, including the widespread and “honorable” practice of “fakelaki”, cash inside an envelope for the attainment of public services and personal favors; hence also the routine violation of civility norms and a culture of complacency that pervades public life.

Indeed, for decades, the dominant image that prevailed about Greeks among many northern Europeans and Americans was a nation of lazy, uncultured and irresponsible citizens, mustachioed men who spent all their time either inside or outside coffee houses, usually with a cigarette in one hand and a string of beads in the other, while the women worked in the fields. The contributions to world culture of the likes of Giorgos Seferis and Odysseus Elytis two Nobel Prize winners in Literature, Nikos Kazantzakis and Yannis Ritsos both nominated scores of times for the Nobel Prize in Literature, but rejected because of their communist beliefs, Angelos Sikelianos one of the most inspiring poets in modern Greek history, Maria Callas the greatest opera diva of last century, Dimitri Mitropoulos and Mikis Theodorakis two world class conductors and composers, respectively were reserved for conversations in polite society. According to the dominant impression, average Greeks lacked discipline and the capacity for self-reflection and were instinctively drawn to populist, charismatic political leaders who promised them bread, butter and honey in their everyday lives, a position not a job! in the public sector, and retirement after a couple of decades of working.

In recent times, this caricaturish image of the Greek national character has insidiously resurfaced in various non-Greek newspapers and magazines, with regard to the profile of the typical Greek public employee: fat, lazy, and unshaved, sitting behind a desk with stacks of papers in front of him and with a cigarette hanging out of his mouth. Which brings us back to the question of Greece’s current crisis. Is the nation’s political culture, the civil culture, responsible for the economic and social ills facing Greece today?

Probably to the surprise of those who still hold on to a caricaturish image of contemporary Greek culture, the majority of Greek citizens seem to be convinced that the political culture is indeed primarily responsible for the catastrophic crisis currently facing the nation – although it is uncertain to what extent they all understand, or accept, the idea of political culture as a reflection of the customs and mores of a society. For instance, while tax evasion has been traditionally a national sport for all social classes in Greece, almost everyone expects and demands that the state provide free services in all areas of public life, generous benefits to the unemployed and the pensioners, subsidies to small businesses and farmers, and so on and so forth. Likewise, people may speak of meritocracy, but family amoralism permeates every pore of the national life. As yet another example of distorted values shaping a nation’s culture, students with the overwhelming majority of faculty on their side want free access to university education and books free of charges, but no conditions placed upon academic progress and the completion of studies. Hence, students are not required to attend classes, may repeat course exams as many times as they like, and there are no limits to how many years they may remain enrolled in a university program. In sum, lots of rights, but no obligations.

For a nation that throughout its history has fought heroic battles for precious rights and liberties recall only Winston Churchill’s famous words, inspired by the Greek resistance to the Italian and German invasions of Greece in the course of World War II: “Hence we will not say that Greeks fight like heroes, but that heroes fight like Greeks!”, gaining rights and privileges but shedding obligations and social responsibilities developed, somehow, into something of a cultural movement in contemporary times in Greece. The roots of this trend can be traced to the immediate period following the re establishment of parliamentary democracy after seven years of a brutal dictatorship 1967-1973, but it takes off and becomes an institutionalized incentive system of behavior with the rise of PASOK Panhellenic Socialist Movement of the 1980s and the irresponsible populism of its leader Papandreou.

While populism, clientelism and cronyism were ever-present ingredients in modern Greek political life, under the pseudo-socialism of PASOK, they became constitutive of the party’s fundamental strategy: locking voters into long-term relationships based not on the delivery of public goods and a just social order, but on promises of targeted resource distribution to the party faithful. At least two generations of “leftist” voters were shaped and molded in the Papandreou/PASOK era, including the major syndicalist movement, the General Confederation of Greek Workers GSEE. Of course, the conservatives relied on the same unscrupulous tactics thus making it virtually impossible to judge which of the two parties was more immoral, corrupt and dangerous to the nation’s interests, but they did not have history on their side, let alone the fact that they were no match for Papandreou’s political canniness and personal magnetism.

Under PASOK, the public sector became a cash cow to be bled, not just milked, a practice the conservatives also did not shy away from on the few occasions they found themselves in power during the past 30 years. After all, it is far more difficult to change the culture of an organizational setting than to create a new one, especially if the parties involved are the main beneficiaries. Thus, for decades, socialists and conservatives alike were involved in various large-scale scandals centered on exploiting state resources to transfer wealth from the public to the private sector, to enrich themselves and to redistribute wealth from the bottom to the top. Corruption became so endemic that it was perceived as normal for public sector employees in Greece’s tax, urban development and municipal government offices to be bribed and even to confuse at times public finances with their personal finances. It was normal for hospital doctors to be recipients of cash gifts by a patient’s family members who were afraid that their loved one would not otherwise receive proper medical attention. It was normal for people to hold two, three and sometimes even four different paid appointments in the public sector. It was normal for already employed journalists to be simultaneously on the payroll of government ministers

The Team at The Institute for New Economic Thinking writes The Problem of Too Big to Fail Is Even Bigger Than Before 2008, Simon Johnson relates.

Benson te writes Essentially the UnTaper seem to have been designed to burn short sellers with particular focus on the bond vigilantes, where the latter may impact the balance sheets of the banking system.  Dramatic volatility from the May “taper talk” even compelled Fed chair Dr. Ben Bernanke to explicitly say “I don’t think the Fed can get interest rates up very much, because the economy is weak, inflation rates are low. If we were to tighten policy, the economy would tank” [16]. In other words, the taper option functioned as a face saving valve in case the rampaging bond vigilantes would force their hand. For me Dr. Bernanke’s calling of the Poker “taper” Bluff has been part of the tactic.

The bond vigilantes have gone beyond the Fed’s assumed control over them. And since the Fed construes that the rising yields has been built around the expectations of the Fed’s pullback on monetary accommodation, what has been seen a Fed “spook” for the mainstream may have really been a desperate ALL IN ante “surprise strike” gambit against the bond vigilantes. The UnTaper was the Pearl Harbor equivalent of Dr. Bernanke and company against the bond vigilantes.

The question now is if the actions in the yield curve have indeed been a function of perceived “tapering”. If yes, then given the extended UnTaper option now on the table, bond yields will come down and risk assets may continue to rise. But if not, or if yields continue to ascend in the coming days that may short circuit the risk ON environment, then this may force the FED to consider the nuclear option: bigger purchases.  With shrinking budget deficits, meaning lesser treasury issuance and with the FED now holding $1.678 trillion in ten year equivalents, or 31.89% as of August 30th total according to ZeroHedge [17], the Fed’s size in bond markets have been reducing availability of collateral. Reduced supply of treasuries, which function as vital components of banking reserves will only amplify volatility. The Fed’s policies are having far wider unintended effects on the bond markets. Should the Fed consider more purchases it may expand to cover other instruments. Quantitative Easing extrapolates to discoordination or the skewing of consumption and production activities which leads to massive misallocation of capital or “malinvestments”. QE also translates to grotesque mispricing of securities and maladjusted price levels in the economy benefiting the first recipients of credit expansion. Eventually such imbalances will be powerful enough to overwhelm whatever interventions made to prevent them from happening, specifically once real savings or capital has been depleted.

Austrian Ludwig von Mises warned in Interventionism An Economic Analysis [22] The boom cannot continue indefinitely. There are two alternatives. Either the banks continue the credit expansion without restriction and thus cause constantly mounting price increases and an ever-growing orgy of speculation, which, as in all other cases of unlimited inflation, ends in a “crack-up boom” and in a collapse of the money and credit system. Or the banks stop before this point is reached, voluntarily renounce further credit expansion and thus bring about the crisis. The depression follows in both instances.

Banks, that is the Too Big To Fail Banks, and the Regional Banks have been the engine of QE. Currently the Too Big To Fail Banks, RWW, are trading 2%, and the Regional Banks, KRE, are trading 7%, below their August 1, 2013, high, in stark contrast to the Large Cap Growth Stocks, JKE, which led the No Taper Rally as is seen in the combined Google Finance Chart of JKE, together with RWW, and KRE. The reason for the banks relatively strong decline is the large amount of US Treasury Based Excess Reserves, such as 10 Year US Government Bonds, TLT, residing at the Fed, which have lost a lot of value since early May, 2013, creating very much a deadweight loss for the banks. Banks certainly do not have any incentive to hold Excess Reserves other than loyalty to the Fed.

On Friday, September 20, 2013, the financial markets pivoted from risk-on to risk-off, as seen in the Market Off ETN, OFF, trading higher. The financial markets manifested an inflection point that marked the beginning of the end of financialization, which will come through a soon coming global credit bust and financial system breakdown, foretold in Revelation 13:3-4, whereby nannycrats will act to integrate banks of all types into government; these will be know as the government banks or gov banks for short, and in so doing there will be a great tidying up of the Banks Excess Reserves at the US Fed.

Along this line of thought James Brewer of WSWS writes Detroit’s emergency manager plans early payoff of top banks

Michael Snyder of The Economic Collapse Blog writes Too Big To Fail Is Now Bigger Than Ever Before. The too big to fail banks are now much, much larger than they were the last time they caused so much trouble. The six largest banks in the United States have gotten 37 percent larger over the past five years. Meanwhile, 1,400 smaller banks have disappeared from the banking industry during that time. What this means is that the health of JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley is more critical to the U.S. economy than ever before. If they were “too big to fail” back in 2008, then now they must be “too colossal to collapse”. Without these banks, we do not have an economy. The six largest banks control 67 percent of all U.S. banking assets, and Bank of America accounted for about a third of all business loans by itself last year. Our entire economy is based on credit, and these giant banks are at the very core of our system of credit. If these banks were to collapse, a brutal economic depression would be guaranteed. Unfortunately, as you will see later in this article, these banks did not learn anything from 2008 and are being exceedingly reckless. They are counting on the rest of us bailing them out if something goes wrong, but that might not happen next time around.

Yardeni posts Government Support Increasingly Boosts Incomes (excerpt) The big story here is that entitlements (“government social benefits to persons”) has soared from less than 5% of national income in the early 1950s to recent record highs around 17%. The federal and state governments are currently redistributing income at an annualized rate of almost $2.4 trillion, which slightly exceeds the sum of federal income and payroll taxes. In effect, every tax dollar collected from workers by the federal government is redistributed to entitlement beneficiaries.

Liberalism was characterized by clientelism, and in particular transfer payments to Social Security recipients in the form SSI Disability which for many is simply another name for welfare; many “live free” from work by claiming and being awarded SSDI, and SSI, for conditions such as chronic pain, anxiety, antisocial disorder, ADHD, Depression, Asperger Syndrome, PTSD, Bipolar Disorder, Depression, and Fibromyalgia, make it impossible for them to work.

Real Clear Markets posts America’s Growing Social Security Disability Problem. The latest Social Security Administration data document that Social Security Disability Insurance (SSDI) rolls reached a record high of 8.85 million in March 2013, an increase of 1.6 million or 21 percent since the start of the Great Recession.

This long running disability epidemic, which hit its pandemic stage in the aftermath of the 2007 recession, has almost nothing to do with a decline in the overall health of working age Americans or in the severity of their health-based impairments. Rather, it is primarily the consequence of fundamental flaws in the SSDI program and its administration which have increasingly made it a long term unemployment program rather than the last resort transfer program for those unable to work due to their health-based impairments that Congress intended it to be. These flaws become most evident during severe during economic downturns but will remain long after we recover from the Great Recession.

Most SSDI growth is driven by its incentive structure and the increasing difficulty of its administrators to determine disability (as discussed in my recent book, co-authored with Mary Daly, The Declining Work and Welfare of People with Disabilities (AEI Press, 2011) and in our point-counterpoint debate article in The Journal of Policy Analysis and Management).

The New American reports Record Number: 10.9 Million Americans Collecting Disability

And The New American reports Disability Recipients Admit Finding Employment Isn’t a Priority. The Examiner reported that many recipients were in a “general cycle of poverty”, a way of life wherein families break down, education efforts fail, and government dependency is virtually assured. The cycle is especially apparent when evaluating recipients who have little knowledge about their fathers.

For example, 30 percent of SSDI recipients are unsure of the highest year or grade their father finished in school, while 40 percent of SSI recipients answered the same; thirty-one percent of SSDI recipients noted that their father did not complete high school or receive a GED, while 26 percent of SSI recipients reported the same.

The number of people claiming disabilities has climbed upward since the recession began. Investor’s Business Daily noted in a 2012 report: “More workers joined the federal government’s disability program in June than got new jobs, according to two new government reports, a clear indicator of how bleak the nation’s jobs picture is after three full years of economic recovery.”

With an aging U.S. population, a weakened job market, and a relaxing of eligibility requirements for disability, fraud has undoubtedly played an integral role in the government’s rapidly expanding disability system. The U.S. Senate’s Permanent Subcommittee on Investigations reported last September that 25 percent of disability cases were granted benefits “without properly addressing insufficient, contradictory and incomplete evidence.”

According to a 2009 study by the Social Security Administration, recipients of federal disability checks acknowledge that finding a job is not a priority, with a startling majority making no effort to gain professional or educational skills to find employment. While the study was published years ago, it was just recently brought to light by the Washington Examiner, which released a lengthy report on the findings, including the fact that many recipients admit that pursuing opportunities to escape the disability rolls is not among their goals. Compiled from responses of 2,300 disability beneficiaries, the report noted that most recipients had not seen a doctor or received medical treatment for their condition within a year, even though medical issues are the basis for qualification of disability benefits. The Examiner inspected the results from the individuals surveyed and condensed the findings into a pool, which helped highlight the survey’s trends.

Unearned disability, or Supplemental Security Income (SSI), applies to individuals who have very limited income and assets, and who have petitioned to be classified as disabled. Earned disability, or Social Security Disability Insurance (SSDI), applies to individuals who were previously employed and have rendered at least some of their income into Social Security before becoming disabled. Approximately 11 million Americans are on the SSDI roll, while seven million Americans are receiving SSI benefits.

Whereas if recipients’ claims for disability are genuine one would expect both groups to give similar answers to questions about their levels of suffering, this was not the case. Recipients of government checks in the SSI program were found to have less bodily pain than recipients who paid into the system, according to the analysis, and they are typically uneducated, overweight, or were raised in broken homes.

SSDI – Earned Disability for those who paid into Social Security prior to applying for disability benefits.

SSI – Unearned Social Security disability benefits.

2) … Details of this week’s financial market trading

On Monday, US Stocks, VTI, such as US Infrastructure, PKB, Home Building, ITB, and Regional Banks, KRE, led World Stocks, VT, lower as Bloomberg reports Markit PMI Factory Index In US Fell To 52.8 in September From 53.1 providing more evidence that the business cycle has peaked and is turning lower. And Zero Hedge reports US PMI Misses Expectations To 3-month Lows. And Yahoo News reports U.S. Factory Activity Loses Momentum In September..

Sectors trading lower included Too Big To Fail Banks, RWW, Solar, TAN, Internet Retail, FDN, Networking IGN, and Biotechnology, IBB.  Yield bearing sectors trading lower included Global Utilities, DBU, and Global Real Estate, DRW. European Financials, EUFN, traded lower. Countries trading lower included Thailand, THD, and Indonesia, IDX. Gold Mines, GDX, and Silver Miners, SIL, traded lower, on a lower price of Gold, GLD, and Silver, SLV. The EUR/JPY closed lower at 133.31. MarketWatch reports JP Morgan, Bank of America, Citi, And Financials Drop On Fears Of Trading Decline.

Mike Mish Shedlock reports Europe Hooked On Easy Money Too: ECB President Draghi Threatens Another LTRO, Sings Praises OF Excess Liquidity. It’s liquidity full throttle in the Eurozone as well because Draghi Says ECB Will Offer More Long-Term Loans If Needed, Bloomberg reports. The largest global-coordinated financial gambit in history shows no real signs yet of slowing down.

September 20, 2013, was a pivotal day in global economic history from which there is now no return, despite what liquidity measures Mario Draghi might propose.  With Jesus Christ at the helm of the Economy of God, Ephesians 1:10, World Stocks, VT, and Nation Investment, EFA, traded lower, with the Emerging Markets, EEM, and Asia Excluding Japan, EPP, leading, the way lower. South Africa, India, INP, Thailand, THD, The Philippines, EPHE, Indonesia, IDX, Malaysia, EWM, Turkey, TUR, and Chile, ECH, traded lower, on the the exhaustion of the US Fed’s monetary policies of easing, as the provision of QEternity marked the crossing of the Rubicon of sound monetary policy, and destabilized global economics pivoting the world from liberalism’s banker regime of democratic nation states into authoritarianism’s beast regime of regional governance and totalitarian collectivism.

On Tuesday, Small Cap Energy, PSCE, and Energy Production, XOP, rose to new highs as Oil, USO, and Natural Gas, UNG, traded lower. Global Telecom, IST, rose to a new rally high with TI, and NOK, rising to new highs. Home Builders, ITB, US Infrastructure, PKB, Solar, TAN, and Internet Retail, FDN, bounced higher. Facebook, FB, Applied Material, AMAT, and Rite Aid, RAD, gapped open higher to new rally highs.  ASML Holding, ASML, Delta Airlines, DAL, General Motors, GM, Safeway, SWY, and Illinois Tool Works, ITS, traded higher.

Small Cap Pure Value, RZV, such as FNGN, NCI, III, CEB, NEWT, EXAM, III, MCS, RICK, STAN, ACXN, MEG, LOV, AHC, ASGN, ADUS, NICK, ECPG, WRLD, FTK, ODC, STMP, FICO, BYD, MOVE, CKEC, MDCA, NXST, FCFS, and DXPE, rallied to a new high, manifesting a questioning harami, as Large Cap Value, JKE, continued to trade lower from their rally high.

Software, IGV, traded lower. Investment Banker, JPM, traded strongly lower, inducing the Too Big To Fail Banks, RWW, to trade lower. Real Estate, IYR, traded lower.

Gold Miners, GDX, and Silver Miners, SIL, traded lower on a lower price of Gold, GLD, yet their chart patterns suggest a bottoming out.

The Vice Stocks, traded by Fidelity Mutual Fund VICEX, traded lower, communicating an end to leveraged speculative investing.

The Market Off ETN, OFF, rose as the US Dollar, $USD, traded slightly higher, as Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, led so by the Australian Dollar, FXA. The EUR/JPY closed lower at 133.05.

Greece, GREK, traded higher as Holly Ellyatt of CNBC reports Temperature rises in Athens amid 48-hour strike. Asia Excluding Japan, EPP, traded lower as Indonesia, IDX, IDXJ, Thailand, THD, the Philippines, EPHE, Malaysia, EWM, and New Zealand, ENZL, traded lower. China Financials, CHIX, led China, YAO, and Far East Financials, FEFN, lower. India, INP, Chile, ECH, Peru, EPU, and Turkey, TUR, traded lower;  all of which drove the Emerging Markets, EEM, and the BRICS, EEB, lower.

A see saw destruction of fiat wealth is underway, as Major World Currencies, DBV, Emerging Market Currencies, CEW, and World Stocks, VT, are trading lower, and Aggregate Credit, AGG, is trading higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.65%, from its recent high of almost 3.0%. Eurozone Debt, EU, traded higher on comments by Mario Draghi for ongoing ECB liquidity. Fiat wealth as it has been known, and the Milton Friedman Free To Choose Floating Currency Regime which generated that wealth be no more, as Jesus Christ is operating in the Economy of God, as presented by the Apostle Paul in Ephesians 1:10, pivoting the world out of liberalism and into authoritarianism. Liberalism was the era of investment choice based upon credit and carry trade investing. Authoritarianism is the era of diktat based upon debt servitude.

John Rubino references Forbes article China Corporates Not Making Debt Payments and highlights Credit Excesses In China. This article is even more apocalyptic than its title implies. To extract a few data points: China’s corporate debt has risen from 86% of GDP to 155% since 2008; “Net debt of the corporate sector was 30 times net earnings in 2012, up sharply from 10 times in 2011”; and “free cash flow is severely negative.” These are some serious trend reversals. Using IOUs to pay bills is exactly the same thing as borrowing the money, in the sense that it creates an obligation that eventually has to be satisfied with cash. So “acceptances” rising from 3% to 11% of GDP is a helluva jump in private sector debt. It’s not clear whether the analysts quoted above are counting this in their other totals.

Robert Wenzel of Economic Policy Journal Venezuela Orders Takeover of Toilet Paper Factory.  Price controls in action. Reuters reports Venezuelan state agency on Friday ordered the temporary takeover of a factory that produces toilet paper in what it called an effort to ensure consistent supplies after embarrassing shortages earlier this year. Critics of President Nicolas Maduro say the nagging shortages of products ranging from bathroom tissue to milk are a sign his socialist government’s rigid price and currency controls are failing. A national agency called Sundecop, which enforces price controls, said in a statement it would occupy one of the factories belonging to paper producer Manpa for 15 days, adding that National Guard troops would “safeguard” the facility. “The action in the producer of toilet paper, sanitary napkins and disposable diapers responds to the state’s obligation to ensure a steady supply of basic goods for the people,” Sundecop said, adding it had observed “the violation of the right” to access such products … Mr Wenzel comments Notice the use of National Guard troops. When price inflation heats up in the US, will price controls be implemented here? My greatest fear is that they will then be enforced by TSA and other DHS employees let loose on the land. Then you will know why you don’t want a surveillance state, even if “you have nothing to hide.” You will when you need to buy from a back market to survive.

Benson te writes Inflation and price controls are siblings. First government inflates, then they place the blame on the public for the ramifications of their actions, thus justifying price controls. Yet the consequence of this inflation price control feedback loop has been to create shortages. The toilet paper shortage in Venezuela is great example. The average Venezuelans seek titles to capital goods or proxies to real assets as haven from massive loss of purchasing power. As one would note, interventions breed interventions until the economy eventually collapses.

I comment that nannycrats, such as Sundecop, are now the economic leaders. Christ has been working and continues to work in dispensation, that is in the management plan of God, to complete and fulfill all things in every epoch, era and time period, as presented by the Apostle Paul in Ephesians 1:10. He is laboring to make diktat complete in the age of authoritarianism. Gone is free enterprise, it is simply an epitaph on the tombstone of the age of liberalism, as statism governs and is the legislator of economic value and is the legislator that shape one’s means and one’s ends. Authoritarianism features a new trust; liberalism featured trust in bankers, carry trade investing and credit, in particular nation state Treasury debt; but authoritarianism features trust in statist nannycrats, totalitarian collectivism, public private partnerships and debt servitude.

Reuters reports If You Live In Venezuela And Want To Fly Abroad, Get In Line. Flights are booked solid months in advance, not from a new interest in exotic destinations but because locals are profiting from a play on the nation’s tightly controlled currency market.

The airline scramble has added to shortages, power cuts and runaway prices as another symbol of the Byzantine economic challenges facing the new government of President Nicolas Maduro in the South American OPEC nation.

“It’s like you’re trapped here,” said travel agent Doris Gaal, telling a customer he would be better off taking a boat to a Caribbean island because the daily flights are fully booked. “It’s all because of these stupid dollars!”

After a decade of currency controls set up by late socialist leader Hugo Chavez in 2003, the disparity between the official and black-market rates for the local bolivar currency is higher than ever. Greenbacks now sell on the illegal market at about seven times the government price of 6.3 to the dollar.

There are strict limits on the availability of dollars at the 6.3 rate, but Venezuelans are cashing in on a special currency provision for travelers. With a valid airline ticket, Venezuelans may exchange up to $3,000 at the government rate.

Some are not even flying, leaving many planes half empty.

“It is possible to travel abroad for free due to this exchange rate magic,” said local economist Angel Garcia Banchs.

The profit is realized from an arbitrage process known locally as “el raspao,” or “the scrape.”

Credit cards are used abroad to get a cash advance — rather than buying merchandise. The dollars are then carried back into Venezuela and sold on the black market for some seven times the original exchange rate. The large profit margin easily absorbs the cost of flights and accommodation for a trip.”I’ve been able to buy new clothes and give some cash to all my closest family members!” said one delighted Venezuelan lady, just back from a trip to Europe. “It was really easy. There was a guy in a hotel room with 10 point-of-sale machines who swiped my card for $1,000 each day,” said a Venezuelan pensioner, also asking not to be named as he described his trip to a Caribbean island.

Some Venezuelans do not even bother leaving the country, but merely send their credit cards to friends overseas, who swipe the cards and send the cash back to Venezuela. “This is the reason many airlines are sending half-empty planes,” Ricardo Cusanno, head of a local tourism council, told Reuters, saying the government should cross-reference flight lists with those requesting foreign exchange to outwit the no-shows.

As a result of the high level of unused seats, some airlines are beginning to overbook at much higher rates than usual.

“Raspao” was now the “most dynamic sector” of the country’s economy, the story added.

The currency controls that Chavez implemented have exacerbated some of the very problems they were meant to address: inflation and capital flight from the country. The lack of dollars has left importers struggling to pay for basic items that range from toilet paper to bread and wine for church masses.

It is also fueling the highest price rises in the Americas, 45 percent in the last year. For critics of the government, the phenomenon of sold-out flights is a symbol of excessive interference and economic mismanagement during the last 14 years of socialist rule.

For Maduro and his team, it is symptomatic of unscrupulous and greedy capitalist opponents who are “sabotaging” Venezuela’s economy in order to sink him. Maduro recently set up a new telephone hotline, 0-800-SABOTAGE, for Venezuelans to report illegal economic activity.

Adding to the frenetic demand for plane tickets is the low cost of flights – when they are available – for those with hard currency that they have changed on the black market. This has turned Caracas into an informal hub for frequent fliers across the region. “People from all over Latin America come here to buy flights using black market money,” said Gaal, the travel agent. Given the high demand, at least one foreign airline is looking to expand in Venezuela.

Alexander Fangmann of WSWS writes Amid Extreme Inflation And Severe Shortages, Venezuela To Revamp Currency Laws Although the country’s severe problems result from global economic pressures along with deteriorating industry and infrastructure, Venezuelan President Nicolás Maduro has claimed they are the result of sabotage.

Bionic Mosquito, writes, “Gary North is far and away the expert when it comes to the intersection of economics and the Bible”  I ask, well what about me, theyenguy? I’m not being proud, but I believe that I run a close second, as I write on the Economy of God, continually, like day and night, and am here now to relate that Money as it has been known no longer exists. Fiat money died Friday September 18, 2013, with the trade lower in World Stocks, VT, Major World Currencies, DBV, and Emerging Market Economies, CEW.  Diktat Money is rising it its place, as the sovereignty of nation states gives way, and nannycrats meet in summits and in work groups to renounce national sovereignty, and establish ever increasing regional sovereignty. Liberalism featured credit, and trust in the world central bankers. Another word for credit is trust. Now in authoritarianism, specifically out of waves of economic and political turmoil in the Mediterranean Sea nation states of Portugal, Italy, Greece, and Spain, people will come to trust in the word, will, and way of statist regional leaders for regional security, stability, and sustainability, as communicated in Revelation 13:3-4.

Bionic Mosquito continues “The problem isn’t big business, the problem is the political entrepreneur; the idol isn’t money, it is central planning serving those who fail at serving customers. This is what the Pope should attack…humbly offered, of course.”  I respond that the problem is that people fail to comprehend the Bible doctrines of

1) Dispensation, Ephesians 1:10, specifically that Jesus Christ is acting in the household administration of God to bring about the completion and fulfillment of every age, epoch, era and time frame.

2) The Ordination of Empires, Daniel, 2:25-45, specifically The British Empire and the US Dollar Hegemonic Empire, where the UK becomes a global power as a multitude of nations, and the US follows it to be the leading world power, as promised to Abraham in Genesis 12:2, Genesis 17:4-6, and Genesis 48:16, immediately before these loose their global domination to a Ten Kingdom of Regional Governance, comprised of ten toes of a miry and unstable mixture of iron diktat and clay democracy.

3) Apocalyptic Bible Prophecy, specifically that three Beasts are rising to rule mankind. The First, a Beast Regime, Revelation 13:1-4. The Second, a Beast Sovereign, that is ruler, Revelation 13: 5-10, Daniel 9:25. And Third, a Beast Seignior, that is a top dog banker who takes a cut, Revelation 13:11-18.

4) Bible Prophecy of the Syrian War of Isaiah 17:1-11, will precede the Ezekiel 38-39 War, where war against Iran will be initiated. Robert Fisk relates in Common Dreams Iran, Not Syria, Is the West’s Real Target.  Business Insider reports The US Strategy In Syria Is Unraveling.  CNN reports Syrian Rebels Reject Interim Government, Embrace Sharia. A collection of some of Syria’s most powerful rebel brigades have rejected a Western-backed opposition group that announced the creation of an interim government in exile this month. The 13 rebel groups, led by the al Qaeda linked al-Nusra Front, also called on supporters of the Syrian opposition to embrace Sharia law “and make it the sole source of legislation. The WSJ reports UN Members Agree on Syria Disarmament. Security Council’s five top powers draft resolution that requires destruction of chemical arsenal but puts off enforcement.

In conclusion to Bonito Mosquito, I write that Austrian Economists are in denial of the truth as they hold forth that there be sovereign individuals who have experience in human action, as Ludwig von Mises wrote in Human Action (p.240 the scholars edition)

Theism and Deism of the Age of Enlightenment viewed the regularity of natural phenomena as an emanation of the decrees of Providence. When the philosophers of the Enlightenment discovered that there prevails a regularity of phenomena also in human action and in social evolution, they were prepared to interpret it likewise as evidence of the paternal care of the Creator of the universe. This was the true meaning of the doctrine of the predetermined harmony as expounded by some economists. The social philosophy of paternal despotism laid stress upon the divine mission of kings and autocrats predestined to rule the peoples. The liberals retorted that the operation of an unhampered market, on which the consumer–i.e., every citizen–is sovereign, brings about more satisfactory results than the decrees of anointed rulers. Observe the functioning of the market system, they said, and you will discover in it the finger of God

The reality is there is only the administration of Jesus Christ, Ephesians 1:10, in all things, and that it is Jesus Christ who appoints power structures under both liberalism, which came to an end September 20, 2013, on the failure of World Stocks, VT, Major World Currencies, DBC, and Emerging Market Currencies, CEW,  as well as under authoritarianism.

On Wednesday, Scott Grannis posts Dramatic Improvement In Household Balance Sheets

The Federal Reserve today released its estimate of households’ balance sheet as of the end of June. The report contained some significant upward revisions to past estimates of financial assets and net worth, with the result that household net worth now stands at $74.8 trillion, up some $4.5 trillion from the previous (March ’13) estimate, and up $18.4 trillion from the recession low. Virtually every metric of households’ financial health has shown significant improvement over the past several years. Owner’s equity in household real estate has surged 50% since 2009; net worth and financial assets are up 35% from their March 2009 low; the value of households’ real estate holdings is up 17% in just the past two years; owner’s equity as a percent of household real estate has jumped to almost 50%, up from its all-time low of 37% four years ago; household debt has declined by almost $1 trillion from its 2008 high, and is now back to the levels of early 2007. Net worth at a new high, financial assets at a new high, real estate values recovering, debt declining: what’s not to like?

I comment that Liberalism was defined by fiat investment wealth, specifically ETFs such as Gaming and Casinos, BJK, and Vice Stocks, such as those traded by the Fidelity Mutual Fund, VICEX, all of which were leveraged up by first the trade in debt, such as Eurozone Debt, EU, as well as the toxic debt taken in by the US Federal Reserve, such as that traded by the Fidelity Mutual Fund FAGIX, under QE1, and secondly by carry trade investing, such as the EUR/JPY. The Fed be dead, and its twin,  Japanese Yen based carry trades, be dead as well; both died the week ending September 20, 2013, on the climax on the No Taper Rally, where QEternity was announced, which pivoted the world from Liberalism to Authoritarianism.  Now, Authoritarianism is defined by the diktat of statist regional nannycrats, as well as by the physical possession of gold bullion for wealth preservation, and physical possession of silver bullion for bartering.

Silver Miners, SIL, and Gold Miners, GDX, and the Silver ETF, SLV, and Gold ETF, GLD, traded higher, as Spot Silver, $SILVER, traded higher to 21.78 and Spot Gold, $GOLD, traded higher to 1,333, continuing above its $1,300 breakout level.

The Gold ETF, GLD, moved higher in its Elliott Wave 3 UP, to close at 128.79, a move that commenced in July 2013, as Gold started to rise from its July 2013 bottom, as is seen its Weekly Chart, as Bloomberg reported US Budget Concerns Escalate. The Elliott Wave 3 Ups are the most dramatic of all economic waves, and create the bulk of wealth gains, of all of the five waves.

The No Fed Taper Rally, commenced global debt deflation, that is global competitive currency devaluation, as the US Fed’s QEternity monetary policy has crossed the Rubicon of sound monetary policy, and has turned money good investments bad. The chart of the US Dollar, $USD, shows a death cross, as it traded lower on September 18, 2013, on the UnTaper Rally, to $80.00, terminating the US Dollar’s power to be the world’s reserve currency.

World Stocks, VT, traded lower on lower Major World Currencies, DBV. China, YAO, traded lower on a lower Yuan, CYB. Sweden, EWD, traded lower on a lower Swedish Krona, FXS.  Emerging Markets, EEM, traded lower on lower Emerging Market Currencies, CEW.  Brazil, EWZ, EWZS, traded lower on a lower Brazilian Real, BZF. Indonesia, IDX, and Malaysia, EWM, traded lower. Argentina, ARGT, Greece, GREK, and Egypt, EGPT, traded higher.

As seen in the Statue of Empires, presented in Daniel 2:25-45, liberalism was characterized by the twin iron legs of global hegemonic power of the British Empire, and the United States of America.  Now, authoritarianism is characterized by ten toes of iron diktat of regional goverance and totalitarian collectivism, manifesting as statism in the Eurozone, and alliances in other regions, such as the ASEAN group of nations. Ulrich Rippert of WSWS reports Forming A New German Government: Parties Prepare For War And Social Attacks. All the parties are trying to establish a ruling coalition stable enough to push through unpopular measures on behalf of the ruling class.

GoldSilverWorlds reports CFTC Believes That Silver Is A Free Market After 5 Year Investigation. I comment that I hope this news puts to rest the ongoing debate as to potential of the price of silver to rise higher over the price of gold. Silver will never, ever, leverage higher over the price of gold. One of the reasons is because of the huge potential for production by Silver Standard Resources Inc, SSRI, which has been one of the most speculative and carry traded investments of all time. The company does not have a forward PE, and it has plenty of contracts to sell its production, so the result is that the price of silver will never, ever outperform gold.  Silver Standard Resources is a dead investment, and serves as an epitaph on Liberalism’s age of speculative leveraged investment.

In the last month, Gold Mining Stocks, GG, ABX, and NEM, have been unable to leverage up over the price of Gold, GLD, as is seen in their combined ongoing Yahoo Finance Chart. Gold Mining Stocks are now lagging the price of Gold because their PE’s have topped out; for example, Goldcorp, GG, has a Forward PE of 20; American Barrick, ABX of 8, and Newmont Mining, NEM, of 15.

Solar Stocks, TAN, traded higher. Aggregate Credit, AGG, traded higher as the Interest Rate, ^TNX, traded lower to close at 2.61%. Eurozone Debt, EU, traded lower.

Shares of Deutsche Bank, DB, traded 2.4%, lower as Bloomberg reports Jain Says Deutsche Bank’s Debt-Trading Revenue Falls. Deutsche Bank AG, DB, co-Chief Executive Officer Anshu Jain said third-quarter revenue from trading debt probably slumped at Germany’s largest bank. “We currently anticipate debt sales and trading revenues in the third quarter to decline significantly from last year,” Jain, 50, told investors at a conference in London today. “Market activity was substantially lower which has affected our corporate banking and securities revenues.”

Deutsche Bank, DB, has been an Eurozone Financials, EUFN, Germany, EWG, and Eurozone, EZU, stalwart, as is seen in the combined ongoing Yahoo Finance chart of EUFN, EWG, and EZU. The trade lower in DB, heralds a soon coming trade lower in Eurozone Financials, Germany and Eurozone stock.

The profitability of Deutsche bank and trade in Eurozone Financials has been predicated upon trading in Eurozone Debt, EU. Jesus Christ, acting in Dispensation, that is in the administration of all things economic and political, for the completion and fulfillment of every age, era, epoch and time period, is terminated trade in Eurozone debt, as part of the process of ending the sovereignty and seigniorage, of Liberalism, and introducing a the sovereignty and seigniorage of Authoritarianism.

A new sovereignty is coming, specifically from that of the Milton Friedman Free to Choose floating currency Banker Regime of democratic nation states, to the Nannycrat Diktat Beast Regime of statist regional governance, Revelation 13:1-4, where eventually there will be ten regional kings ruling in the world’s ten regions, Revelation 17:12. And a new seigniorage is occuring, that is a new moneyness, is happening, from the seigniorage of investment choice, to the seigniorage of diktat.

The change of sovereignty and seigniorage comes largely through Jesus Christ releasing the First Horseman of the Apocalypse, Revelation 6:1-2, where The Rider on the White Horse, who has a bow but no arrows, symbolizes a non-bloody economic and political coup d’etat, where the baton of sovereignty and seigniorage is being passed from democratic nation states to nannycrats in statist regional governance and totalitarian collectivism.

Fox News reports Kerry Signs UN Arms Treaty, Senators Threaten To Block It. US Secretary of State John Kerry signed a controversial U.N. treaty on arms regulation, riling U.S. lawmakers who vow the Senate will not ratify the agreement. As he signed the document, Kerry called the treaty a “significant step” in addressing illegal gun sales, while claiming it would also protect gun rights.

On Thursday,  Inverse Volatility, XVZ, rose, as Volatility, XVZ, traded lower, as World Stock, VT, rose, as Solar Stocks, TAN, Internet Retail, FDN, Nasdaq Internet, PNQI, Biotechnology, IBB, Media, PBS, Casinos and Resorts, BJK, Global Consumer Discretionary, RXI, Smallcap Industrials, PSCI, US Infrastructure, PKB, and Shipping Stocks, SEA, traded higher. Energy Production, XOP, and Small Cap Energy, PSCE, rose to new rally highs. The Russell 2000, traded to a new rally high on higher Small Cap Pure Growth, RZG, and Small Cap Pure Value, RZV, both rising to new rally highs.  In yield bearing sectors, Leveraged Buyouts, PSP, traded higher, and International Telecom, IST, rose to a new rally high, while Utilities, XLU, traded lower.

Japan, EWJ, JSC, rose taking the Nikkei, NKY, to a new rally high. Other nations trading higher included Egypt, EGPT, Indonesia, IDX, IDXJ, South Korea, EWY, New Zealand, ENZL, Australia, EWA, KROO.  Peru, EPU, Turkey, TUR, Netherlands, EWN, traded lower.

Intel, INTC, Broadcom, BRCM, Atmel, ATML, traded lower, turning Semiconductor, XSD, lower. Networking, IGN, and Transportation, XTN, traded lower.

China, YAO, traded unchanged as Value Walk reports Chinese Bank Problems Echo Those Of Japan (Not US), Michael Pettis Says. And Mike Mish Shedlock references Michael Pettis asking So why is China’s GDP growth rising again? The simple answer is shadow banking has revived. Is it sustainable? Of course not. Debt is growing faster than it can possibly be paid back. In his email Pettis stated that he felt like a broken record, repeating the same story over and over again.I don’t mind, because it’s clear that people have not gotten the message, especially in regards to using alleged reserves. Please reread that section until you understand it.

The UnTaper rally drove up Nation Investment, EFA, to an all time high, with the following nations leading the way higher: EGPT, 31%, ARGT, 23, EFNL, 22, EWY, 18, KROO, 17, YAO,  17, EIRL, 16, EZA, 16, EWN, 16, as is seen in their combined ongoing Yahoo Finance Chart. Ireland, EIRL, has been liberalism’s nation investment superstar.

The EUR/JPY closed up at 133.42, supporting Eurozone Stocks, EZU, despite a lower European Financials, EUFN, led so by Ireland’s IRE, and Germany’s DB, while Banco Santander, SAN, rose taking Spain, EWP, to a new rally high.

Silver Miners, SIL, and Gold Miners, GDX, lower on a lower price of Silver, SLV, and Gold, GLD.

Aggregate Credit, AGG, traded lower as The Interest Rate on the US Ten Year Note, ^TNX, rose to 2.64%; and the Steepner, STPP, rose after having fallen for two weeks, reflecting a re-steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX. The No Taper Rally supported a rally in the longer duration debt such as The Zeroes, ZROZ, 30 Year US Government Debt, EDV, High Yield Munis, HYD, Longer Duration Corporated Debt, BLV, Emerging Market Bonds, EMB, but inasmuch as money failed with the UnTaper Rally, the rally in these debts has ended as is seen in their combined ongoing Yahoo Finance Chart.

Patti Dom of CNBC reports Corporate America Took On A Record Amount Of Debt In September as corporate Treasurers rushed to take advantage of a dip in rates and a receptive market. Verizon’s biggest ever $49 billion offer helped drive the month’s investment grade offerings to an all-time high of $147.8 billion so far, besting the $133.9 billion of May, 2008, according to Informa Global Markets. But the offers picked up momentum as the month wore on, and particularly after the Fed surprised markets last week by leaving its $85 billion monthly bond buying program intact for now.

Zero Hedge reports Greece On The Verge? Military Special Forces Have 15 Demands, Or Else. As the website Keep Talking Greece notes, the statement on the union’ website included 15 demands,  including the resignation of the Greek President, and urged people to gather at the infamous Syntagma Square on Saturday. The statement was interpreted by some as a call to a coup d’etat, denied by the union, but prompted Greece’s Supreme Court to meet to discuss it.

Open Europe in their for fee newsletter reports Greek Golden Dawn MPs Consider Resigning, Could Trigger Fresh Elections. MPs of the far-right Golden Dawn party have threatened to resign from the Greek parliament, a move which could lead to demands for snap general elections. Kathimerini Kathimerini 2 EUobserver Times Reuters AFP HLN Volkskrant AFP2 Guardian Guardian 2

The ratio of equity to debt such as Eurozone Stocks relative to Eurozone Debt, EZU:EU, as well as Nation Investment relative to World Treasury Debt, EFA:BWX, and World Stocks relative to Aggregate Credit, VT:AGG, communicates that stocks are leveraged at terrific levels attained through the No Taper Rally.

The WSJ reports No Clear Path to Avoid Shutdown as House GOP Stands Firm. Congress’s rocky path to avoiding a government shutdown became even rougher Thursday, as Speaker John Boehner said the House wouldn’t accept the spending plan likely to emerge from the Senate. The Ohio Republican’s announcement foreshadows a set of last-minute legislative volleys between the House and Senate to fund federal agencies ahead of a deadline Monday, the final day of the fiscal year. he Senate is expected to pass a bill Friday that would fund the government for the first 1½ months of the new fiscal year. But Senate Democrats plan to restore money for the Affordable Care Act that House Republicans had stripped out, leaving the two chambers in conflict.

On Friday, September 27, 2013, The stock markets moved from risk-on, to risk-off, as the Risk On ETN, OFF, traded higher, as both Industrials, XLI, ie Small Cap Growth Stock, ROLL, and Large Cap Growth Stock, ITW, Transports, XTN, as well as Dividend Growth, VIG, traded lower on the week, establishing a turn from a bull stock market to a bear stock market, on the exhaustion of the world central banks monetary authority, specifically that the US Fed’s monetary policies have crossed the rubicon of sound monetary policy, and have turned money good investments bad, resulting in the end of the age of Nation State Investment, EFA, in countries such as the Netherlands, EWN, and its companies, PHG, CNH, YNDX, NXPI, and profitable global industrial production, FXR, ie WHR.

The chart of the Dollar’s 200% ETF, UUP, turned terribly bearish as The US Dollar, $USD, traded lower. The US Dollar, $USD, is being dethroned as the world’s reserve currency as AP reports Preparing for Shutdown, Government Plans Furloughs. More than a third of federal workers would be told to stay home if the government shuts down, forcing the closure of national parks from California to Maine and all the Smithsonian museums. The EPA would essentially be closed to most of its approximately 17,000 employees, except for those involved in shutting down systems, tasked with emergency cleanups, or doing legal work in ongoing federal cases, said John O’Grady, president of the local union of EPA employees in Chicago. NASA is still working on shutdown plans, but the agency doesn’t have a launch scheduled until Nov. 6, spokesman Bob Jacobs said. Nearly all but a few hundred of the space agency’s 18,000 employees would be furloughed under a contingency plan outlined in 2011.

Money as it has been known, died on the unwinding of the No Taper Rally, which some call the Un Taper Rally, as evidenced by a trade lower in World Stocks, VT, and Major World Currencies, DBV, as well as Emerging Market Stocks, EEM, Emerging Market Currencies, CEW, and Emerging Market Bonds, EMB.

Jesus Christ, operating at the helm of the Economy of God, that is in administration of all things economic and political, has completed the age of liberalism by producing a moral hazard and currency carry trade prosperity. With peak prosperity having been achieved, He is introducing the age of authoritarianism, which features a debt servitude based austerity.

Jesus Christ has unleashed the First Horseman of the Apocalypse, Revelation 6:1-2, where the Rider on the White Horse, having a bow but no arrows is effecting coup d’etat word wide, passing the baton of sovereignty to new sovereigns. A new money, that being diktat money is being established, as nannycrats meet in summits and workgroups to renounce national sovereignty and to pool sovereignty regionally for regional security, regional stability and regional sustainability.

The turn lower from the No Taper Rally of September 18, 2013, ends liberalism’s sovereignty of nation state democracy and marks the beginning of authoritarianism’s sovereignty of regional governance and totalitarian collectivism.

Liberalism was the epoch of the Milton Friedman Free To Choose Floating Currency Banker Regime, featuring policy of investment choice, and schemes of credit and carry trade investing.  Now, Authoritarianism is the epoch of the Angela Merkel Diktat Beast Regime of Revelation 13:1-4. featuring policies of diktat and schemes of debt servitude.

Brian Parkin and Tony Czuczka of Bloomberg report Germany’s Free Democrats, who have held the balance of power more than any other political party in the republic’s history, were ousted from parliament for the first time after voters defected to Angela Merkel’s Christian Democrats and the euro-skeptic AfD. The liberal FDP, which served as the junior partner in Christian and Social Democrat-led governments, gained just 4.8% in federal elections yesterday, less than the 5% needed to enter the Bundestag. The party’s worst result contrasts with its best of 14.6%, gained four years ago to rule under Angela Merkel. The FDP’s exit from Germany’s lower house marks the end of 64 years of parliamentary representation, in which it championed free market policies and personal freedoms, challenging the postwar consensus-orientated politics of the larger people’s parties.

Competitive currency deflation is strongly underway on the unwinding of the No Taper Rally, which some call the UnTaper rally. Debt deflation, that is currency deflation is seen in Major World Currencies, DBV, of which the US Dollar, $USD, is a component, which traded strongly lower.

Emerging Market Currencies, CEW, traded lower on a lower Indian Rupe, ICN, which forced India, INP, SCIN, and its banks, HDB, IBN, strongly lower. The Brazilian Real, BZF, traded lower, which forced Brazil, EWZ, EWZS, lower. The Mexico Peso, FXM, traded lower, taking Mexico’s Bank, BSMX, and Mexico, EWW, strongly lower. Emerging Market, EEM, Emerging Market Small Cap Dividend, DGS, and Emerging Market Bonds, EMB, finished the week lower.

The Euro, FXE, traded to a new rally high, and yet the Yen, FXY, traded even higher, taking the EUR/JPY, lower on both the day and on the week, to close at 132.77; yet Eurozone Stocks, EZU, traded near their week’s high; European Financials, EUFN, traded lower on the week. The Swiss Franc, FXF, traded higher, taking Switzerland, EWL, higher. Netherlands, EWN, Italy, EWI, traded lower. Spain, EWP, and Greece, GREK, traded higher.

Egypt, EGPT, traded higher. Argentina Banks, BFR, GGAL, and BMA, traded higher, taking ARGT,  higher.

The Chinese Yuan, CYB, traded lower as China’s Financials, CHIX, led China, YAO, China Industrials, CHII, and China Infrastructure, CHXX, lower.

US Stocks, VTI, traded lower; the chart of the S&P 500, $SPX, traded by the ETF, SPY, shows a 1.0% trade lower on the week.  A lower US Dollar, kept losses in World Stocks, VT, to a minimum. Countries with balance of payment issues traded lower, these included Thailand, THD, Turkey, TUR, South Africa, EZA, Philippines, EPHE, Malaysia, EWM, and Peru, EPU. Russia, RSX, ERUS, and Italy, EWI, traded lower.  Yahoo Finance Chart communicates that Peru, has the worst amount of derisking and deleveraging amongst all of the Emerging Markets over the last six months.   John Quigley of Bloomberg reports Peru’s bond risk is soaring more than any investment-grade debtor nation in the Americas as tumbling metal exports erode the country’s budget surplus and prompt the government to double its borrowing. The cost to protect Peruvian dollar debt against non-payment for five years using credit-default swaps has climbed 0.4 percentage point to 1.40 percentage points in the past six months..

Metal Manufacturers XME, such as CRS, MLI, STLD, WOR, RS, traded lower, Steel, SLX, such as TS, MT,  SID, NUE, Coal, KOL, such as CLF, Uranium, URA, Industrial Miners, PICK, such as VALE, ZINC, GSM, PKX, Rare Earth Miners, REMX, and China Miners, CHIM, traded lower.

Utilities, XLU, such as those seen in this Finviz Screener, traded lower.

Small Cap Pure Value Stocks, RZV, such as First Internet Bancorp, INBK, Home Health Care Company, ADUS, Casinos, Lakes Entertainment, LACO, and Boyd Gaming, BYD, traded lower.

International Paper, IP, traded lower, taking Paper Produces, WOOD, lower.

Halliburton, HAL, traded lower, taking Energy Service, OIH, lower.

Networking Stocks, IGN, traded lower.

Semiconductors, such as BRCM, ATML, INTC, MSCC, MRVL, FCS, TSM, FSL, XLNX, ADI, and LLTC, traded lower, taking Semiconductors, SMH, lower

Bank of America, BAC, traded lower, taking the Too Big To Fail Banks, RWW, lower. Asset Managers, such as BlackRock, BLK, traded lower. Investment Bankers, KCE, traded lower.

Life Insurance companies, such as ING, seen in this Finviz Screener, traded lower.

Shipping Stocks, SEA, such as those seen in this Finviz Screener, traded lower.

Agriculture, MOO, and Fertilizers, SOIL, traded lower.

Silver Miners, SIL, and Gold Miners, GDX, are unable to leverage higher on a rising price of Gold, GLD, and a rising price of Silver, SLV, as is seen in the charts of SIL:SLV, and GDX:GLD.

Liberalism was an era that was characterized by free-money, coming from the world central banks monetary policies of Global Zirp, a record level of margin credit, and the Bank of Japan, and its lenders such an NMR, MTU, SMFG, MFG, as well as China’s SHG, presented together in the chart of Far East Financials, FEFN, providing Yen carry trade loans. Leveraged Buyouts, PSP, traded higher. Debt laden Blackstone, BX, is trading near its rally high, as CNBC reports its chief Joseph Baratta, saying “We are in the middle of an epic credit bubble, in my opinion, the likes of which I haven’t seen in my career in private equity,” … “The cost of a high yield bond on an absolute coupon basis is as low as it’s ever been.” And Gerry Murray, head of JPMorgan Chase & Co.’s North America leveraged finance business, said The Federal Reserve’s surprise decision last week to not reduce its stimulus ‘gave a shot of adrenaline into the leveraged markets

Solar Stocks, TAN, seen in this Finviz Screener, traded to a new rally high.

Aggregate Credit, AGG, traded higher, as The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.62%.

Jesus Christ acting in Dispensation, that is in oversight of all things economic and political, has fully completed Liberalism as an age of investment choice powered by credit and carry trade investing, by expanding fiat wealth to an unprecedented level, as Doug Noland relates in Safehaven.com article, The Federal Reserve has created a massive Bubble of risk assets. Since since ’08 Household holdings of mutual funds and equities have surged $10.640 TN, or 85%, to $23.191 TN. Pension Fund Entitlements jumped $4.675 TN, or 33%, to $18.737 TN. It’s no longer true that American households have the majority of their wealth in savings and real estate. These days, and much the product of experimental monetary policy, Household perceived wealth is wrapped up in the risk markets. Those of a bullish persuasion would argue these dynamics confirm the underlying strength and stability of the U.S. economy. I’ll counter with the view – one supported by Fed data – that massive federal deficits and Federal Reserve monetization have created unprecedented and deeply systemic financial and economic distortions

In the age of authoritarianism, physical possession of gold bullion, and diktat will be the only forms of sovereign and thus sustainable wealth.

3) … The development of character begins in childhood. Elaine Meinel Supkis writes Berlin High Students Join Other Party-time Teens In Upstate NY To Vandalize Football Player’s Mansion.

It’s apparent that a wilding took place, it’s part of what the Bible refers to as the mystery of iniquity.

I live in the inner city, and use public facilities, like the local bus depot and the library, as well as reside in an apartment building owned by a non-profit charity which exposes me to many who live not only libertine but antisocial.

Psychopathy can be inherited, and can does develop as young people cross the rubicon of sound ethical behavior, so that over time the boundary between ruling over others and being independent from others is erased; so I feel sorry, in a sense, for the 300, as everyone of them now has eroded the ethical standard of responsible living and they live exposed to living more in iniquity.

There is a responsibility on the part of parents to educate their children in ethical living. I’m not particularly a fan of William J. Bennett, but he with the help of two individuals, wrote The Book of Virtues, and the Chapter on Responsibility presents CS Lewis Men Without Chests, and develops the  idea that parents and mentors have a responsibility to educate children in moments of learning to have the right response; specifically to train children to feel pleasure in doing and seeking after things which are noble and praiseworthy, and to feel disgust and contempt for things which are injurious, so that when the age of reason comes, he will embrace virtue and ethics, into his soul, and be nourished thereby, and in so doing become a person of gentle spirit and good way.

I feel sorry for the parents, they are the largest losers of all, as they lost the reward that comes from raising children who go on to live noble lives. Thank God, I have never had any children and have never been a parent. Residing where I do in the downtown area, I see daily the mystery of iniquity being played out and pray that I will have a love of Christ, and through his Spirit, live in the mystery of righteousness.

4) … The richest and poorest states revealed. Mike Sauter of 24/7 Wall St lists  America’s Richest and Poorest States Maryland is the wealthiest state while Mississippi, Arkansas, West Virginia, Alabama and Kentucky are the places of greatest poverty.  In Mississippi, about one in five households depended on food stamps last year, second only to Oregon. The state’s poverty rate was 24.2%, the highest in the nation by more than three percentage points.

5) … Are electrical waves making you sick? Liberty Crier reports Customers say OG&E smart meters making them sick, giving them headaches

Liberalism Achieves Peak Prosperity As Ben Bernanke Announces Plan For QEternity

September 22, 2013

Financial Market Report for the Week Ending September 20, 2013

1) … The possibility of withdrawal of US Central Bank monetary stimulus caused investment growth in the emerging markets to collapse beginning in May 2013.

The global central bank credit bubble, BWX, began to collapse, as bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.1% on May 24, 2013, and then to 2.9% on Friday September 13, 2013, on fears of US Fed tapering, with the result that the crack up boom in stocks began to implode; but only reflated with QEternity, on September 18, 2013. The benchmark rate fell to 2.73% the week ending September 20, 2013.

Beginning in May, 2013, investors began to sell mining export nations such as Chile, ECH, and Peru, EPU, Emerging Market Nations, EEM, with high balance of payments, such as Turkey, TUR, Indonesia, IDX, IDXJ, Malaysia, EWM, India, INP, SCIN, Philippines, EPHE, Thailand, THD, and New Zealand, ENZL, as well as interest rate sensitive stocks such Homebuilding Stocks, ITB, Utility Stocks, XLU, and Real Estate Stocks, IYR, such as REM, ROOF, REZ, FNIO.

Bloomberg reports on the collapse of state owned banking in India. Record Rout in Government Banks as Buffers Drop: Corporate India. Shares of India’s state-run banks are trading near record-low valuations as concern grows about narrowing risk buffers and rising bad loans. Indian Bank, United Bank (UNTDB) of India Ltd. and Union Bank of India, have fallen more than 55 percent this year to Sept. 12, the most among the nine government banks that are leading declines for India’s 40 bank stocks. Shares of the nine lenders are all trading below the value of their assets amid lower-than-average capital adequacy levels and bad loan ratios that are about double those of private-sector lenders.

Brand names disappear from the retail shelves when the balance of payments issue becomes extreme as Francisco Toro of Caracas Chronicles reports Keep walking…right over the BoP cliff-edge. Been having trouble shaking that end-of-times feeling over the looping Balance of Payments cliff-edge? Here’s some confirmation-bias catnip for you from Confirmando.com Faced with an acute shortage of dollars and no end-in-sight, the unthinkable has now happened: licquor stores in Caracas have started rationing the sale of Scotch. “No hay garantía de inventarios para el mes de mayor demanda como es diciembre y ha obligado a imponer una especie de racionamiento. ‘Vendemos solo 4 botellas de Old Parr, Buchanan’s o Etiqueta Negra 12 años’, apunta una de las promotoras de la tienda de Licores Mundial en la urbanización Las Mercedes.Una situación similar ocurre en las licorerías de varios supermercados en Caracas, donde se prohibió la venta de cajas de 12 botellas de estas marcas y sólo se acepta un máximo de 3 unidades. Frente al alza del precio y la limitación en la venta, hay consumidores que optan por migrar a otras marcas, pero no abandonan su hábito por el escocés. Fin. Du. Monde”!

Francisco Toro of Caracas Chronicles writes Occam’s razor on sabotage.  Willie Neuman’s piece in the New York Times on Maduro’s sabotage-obsession is a pretty good primer for people who haven’t been following the story. It bothers me a bit, though, that he barely mentions, in passing, the government’s obvious political rationale for making up outlandish tales that have no evidence to back them: deflecting blame for its own appalling record of neglect over the nation’s infrastructure. To Venezuelans with dos dedos de frente, this is obvious, but perhaps it is less so for Willie’s readers stateside: the maintenance culture inside Pdvsa and Corpoelec has frayed badly over the last 15 years, leaving a brittle infrastructure that’s given rise to an appalling industrial safety record. At Corpoelec in particular, efforts to face up to the crisis have taken the form of a loosening of safeguards against corruption, leading to the Bolichicos scandals we’re all too familiar with. So not only does the National Grid suck, the billions spent to fix it are being looted.

Fox News reports Venezuelan inflation soars as Maduro creates organization to fight sabotage

2)  … A disavowment of a Chinese taper stimulated Chinese stocks to rally beginning July 2013.

Tyler Durden writes in Zero Hedge China: No Leverage, No Growth. When it comes to the very simplest axiom on modern Keynesian economics, it seems one can’t repeat it enough times: have leverage, have growth … don’t have leverage, don’t have growth.

That is the main reason why in lieu of any organic credit growth (total consumer bank loans and leases now are still below the level when Lehman filed), it has been up to the Fed to step up and provide “leverage” into the system, in the form of excess reserves, resulting in $2.5 trillion in excess deposits over loans, or just the void filled by the Fed’s printing of lower powered money. That is also the reason why in early summer, China tried to conduct a mini-taper of its own to streamline its monetary pipeline which had been so filled with bad and non-performing credit, that the PBOC effectively pulled the switch on new liquidity for over a month.

What happened almost immediately after, when rates on ultra short term funding soared to 20%+, nearly destroyed the domestic banking system and resulted in a major slowdown in the Chinese economy. “Luckily” for China, its close encounter with the taper was brief, if quite painful, and following a period of shock, the Chinese central bank had no choice but to resume injecting banks with their daily dose of monetary morphine all over again.

This in turn, has brought us to square one: nothing in the local banking system has been fixed, and what’s worse, while China has bought itself a few months respite, the dominant old problem of a collapsing credit impulse, as described before, in the country with the largest corporate credit bubble in the world, is about to come back with a bang in a few short months. In short: China just did what the US has boldly done so many times before kicked the can.

NidStyles comments On December 1913, when the monetary system was fraudulently changed into a debt based fractional reserve monetary system through the creation of the Federal Reserve. Since then, there can be no economic growth without credit growth. Economic growth is tied up to credit growth. If the overall debt of the system was to be reduced then the entire system would collapse into a deflationary death spiral. For this reason, no government in this fiat based currency world should have a balanced budget. They all have to keep a certain amount yearly growth of their national debt. The EU for example is aiming at a yearly growing debt rate of 3% of GDP for each Euro Zone country (they are still far from it though). And Tabarnaque commentsI was about to forget. In case you haven’t seen this classic Youtube Video Money as debt. This is a must be seen in order to understand the monetary system we live in.

Investors bought China’s kicking the can credit rally, from Mid June 2013 to September 13, 2013, as is seen in the ongoing Yahoo Finance Chart of China Financials, CHIX, China YAO, China Industrials, CHII, China Mining, CHIM, and China Real Estate, TAO, providing investment gains of 20%, in just  three months; as well as similar gains in Industrial Mining Stocks, PICK, such as RIO, Steel Mining, SLX, such as MT, GSM, as well as in Asia Regional Stocks, Australia Small Caps, KROO, Australia Bank WBK, New Zealand, ENZL, South Korea, EWY, as well as in Distant Regional Stocks, Egypt, EGPT, South Africa, EZA, Argentina, ARGT, as well as in Shipping Stocks, SEA, seen in this Finviz Screener. These stock investments are ready to implode.

In early September, China, YAO, Finland, EFNL, Shipping, SEA, Solar, TAN, Biotechnology, IBB, Casinos and Resorts, BJK, Semiconductors, SMH, Internet Retail, FDN, Design Build, FLM, Internet Retail, FDN, Small Cap Industrial, PSCI, Automobiles, CARZ, S&P High Beta, SPHB, and Paper Producers, WOOD, such as TIS, SWM, KS, SEE, PKG, GPK and IP, seen in this ongoing Yahoo Finance Chart have outperformed and are primed for a great fall.

3) … Nation investment soared the week ending September 20, 2013, on confirmation of QEternity

On Monday September 16, 2013, Stocks rally, dollar dips as Summers quits Fed race.  Marc Jones of Reuters reports that investors wagered that U.S. monetary policy would stay easier for longer should the other leading candidate for Fed chair, Janet Yellen, get the job. Markets had perceived Summers as less wedded to aggressive policies such as quantitative easing and more likely to scale stimulus back quickly than Yellen, who is currently second in command at the Fed.

Nation Investment, EFA, and Small Cap Nation Investment, IFSM, traded to new rally highs.

The Eurozone, EZU, and the traded to a new rally high, as Italy, EWI, Netherlands, EWN, Spain, EWP, Italy, EWI, Ireland, EIRL, Greece, GREK, and Germany, EWG, EWGS, traded higher. 

US Stocks, VTI, traded to a new rally high.

Asia Excluding Japan, EPP, traded to a new rally high.

World stocks, VT, and Global Industrial Producers, FXR, rose to a new rally high.

Sectors trading higher included Paper Producers, WOOD, Solar, TAN, Design Build, FLM, Gaming, BJK, Automobiles, CARZ, Inverse Volatility, XIV.

Filled black candlesticks formed in a number of stock charts such as SPY, IWM, FXI, EZU, EUFN, SMH, IBB, KROO, SPHB, XTN, YAO, PSP, and RXI, as well as the Euro, FXE, foreshadowing a market reversal. 

Yahoo Finance chart shows the EUR/JPY closed at 132.26. 

The US Dollar, $USD, traded lower, as the Indian Rupe, ICN, the Swedish Krona, FXS, and the Australian Dollar, FXA, and the Euro, FXE, traded higher.

The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.87%.

Oil, USO, traded 1.9% lower.

The Gold ETF, GLD, traded 1.1% lower as Spot Gold, $GOLD, traded lower to $1313.

On Tuesday, September 17, 2013, Volatility, XVZ, and the US Dollar, $USD, traded lower, as World Stocks, VT, traded slightly higher,  ahead of FOMC Day. Reuters reports Wall Street ends up amid Fed talks; Nasdaq logs best close in 13 years.  US Stocks, VTI, rose on Tuesday on expectations the Federal Reserve will make only modest changes to a monetary policy that has been highly supportive of stocks and other assets.

Gold Mining Stocks, GDX, such as those seen in this Finviz Screener, traded higher, on a slight rise in the price of the Gold ETF, GLD; the internals of their chart patterns suggest that their direction is going higher once again.

Australia’s Westpac banking, WBK, led New Zealand, ENZL, Australia, EWA, and Asia Excluding Japan, EPP, higher, while Shanghai, CAF, led China Industrials, CHII, Indonesia, IDX, and Indonesia Small Caps, IDXX, lower.  German Small Cap Stocks, GERJ, and Greece, GREK, led the Eurozone, EZU, slightly higher.

Sectors trading higher included, Inverse Volatility, XIV, Nasdaq Internet, PNQI, IPOs, FPX, Networking, IGN, Retail, XRT, such as RAD, KR, TJX, Semiconductors, SMH, Consumer Services, IYC, Internet Retail, FDN, Small Cap Pure Value, RZV, Stockbrokers, IAI, and Aerospace and Defense, PPA.  Regional Bands, KRE, traded higher. Energy Production, XOP, and Small Cap Energy, PSCE, traded higher despite a trade lower in Oil, USO.

Credit Provider MasterCard, MA, rose strongly, and Delta Airlines, DAL, rose strongly on recent announcement that it will join the S&P 500.

The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.85%.

On Wednesday September 18, 2013, Wall Street ends at record, Fed maintains stimulus US stocks rallied to record highs on Wednesday after the Federal Reserve surprised investors and decided against trimming its bond-buying stimulus program, which has fueled Wall Street’s rally of more, Reuters reports.  Volatility, XVZ, traded strongly lower. The US Dollar, $USD, traded strongly lower to close at  80.23.  Major World Currencies, Brazilian Real, BZF, Indian Rupe, ICN, Australian Dollar, FXA, Swedish Krona, FXS, Swiss Franc, FXF, British Pound Sterling, FXB, and the Euro, FXE, as well as Emerging Market Currencies, CEW, all rose strongly.

Spot Gold, $GOLD, rose 4.2% to close at $1,365. The Gold, ETF, GLD, rose 4.4%, and the Silver ETF, Silver, SLV, 6.4%, taking Gold Miners, GDX, 8.9%, and Silver Miners, SIL, 11.0%, higher. Oil, USO, rose 2.5%. 

In what amounts to debt monetization, that is free money for investors, World Stocks, VT, rose 2.0%, Nation Investment, EFA, 2.7% … Emerging Markets, EEM, 4.2% … The  BRICS, EEB, 3.2%, with INP 5.3, EWZ 5.1, RSX 4.9, YAO, 1.7 …  Asia Excluding Japan, EPP, 2.6%, with, IDX, 8.6, EPHE 7.2, THD 5.9, TUR 5.6, EWM 4.6, ENZL, 2.2 … Others with ECH, 5.3, EZA 4.6, ARGT 4.5, EWY 4.1 … The Eurozone, EZU, 2.6%, with EWP, 3.8, EFNL, 3.4, EWI, 3.3, GREK, 2.8, EWG, 2.6, EIRL 2.2, EWN 2.2, EWGS, 1.7 … US Stocks, VTI, 1.2%, with SPY 1.2, QQQ 1.2% with sectors Home Building, ITB 4.8%, Inverse Volatility, XIV 3.7, Coal Miners, KOL 3.7, Industrial Miners, PICK 3.2, China Industrials, CHII 3.2, Solar Stocks, TAN 2.9, Steel Producers, SLX 2.9.

Investors have been clamoring for Growth Stocks, Large Cap Growth, JKE, and Small Cap Pure Growth, RZG, have been outperforming their peers, Large Cap Value, JKF, and Small Cap Pure Value, RZV, as is seen in their combined ongoing Yahoo Finance Chart

Aggregate Credit, AGG, rose strongly as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to close at 2.71%, as the Father of QE, Ben Bernanke, called for ongoing monetary intervention.

The apostle of QE Unlimited, a promise to buy assets every month until conditions improve, Dr. Marc Faber, and investment newsletter publisher of The Gloom Boom & Doom Report, posts in Zero Hedge My view was that they would taper by about $10 billion to $15 billion, but I’m not surprised that they don’t do it for the simple reason that I think we are in QE Unlimited. The Fed will continue to print and if the stock market goes down 10%, they will print even more. And they don’t know anything else to do. And quite frankly, they have boxed themselves into a corner where they are now kind of desperate. The endgame is a total collapse, but from a higher diving board now.  Wikipedia relates He correctly predicted QE to infinity.[16] And On March 27, 2013 Faber said that the U.S. is creating “nowhere to hide” bubbles in many emerging economies such as Indonesia, the Philippines, Thailand (up four times from 2009 lows).[17]

I comment that when one can not go left or right, and when one can not go up or down, then all one can do is go further in at an accelerated rate. which will result in total destruction known as supernova, in this case Financial Armageddon, a global credit bust and worldwide financial system breakdown, that is foretold in Bible Prophecy of Revelation 13:3-4. 

Benson te writes Inflationism represents just one of the many slippery slope towards more interventionism (price controls, foreign exchange and capital controls, wage and labor controls, trade controls, border controls and more) and even risks of wars.

And Benson te also writes Poker bluff called: US Federal Reserve balks at taper. I have been saying so. The supposed taper talk, like all the rest of “exit” talks since 2010, has all been but a poker bluff.

Given the entrenched dependency relationship by the mortgage markets and by the US government on the US Federal Reserve, the Fed’s QE program can be interpreted as a quasi-fiscal policy whose major beneficiaries have been the political class and the banking class. Thus, there will be little incentives for FED officials to downsize the FED’s actions, unless forced upon by the markets. Since politicians are key beneficiaries from such programs, Fed officials will be subject to political pressures.

This is why I think the “taper talk” represents just one of the FED’s serial poker bluffs. The US Federal Reserve called the bluff. The FOMC announced that they will refrain from tapering until supposed evidence will warrant it.

The global system has been acutely hooked on steroids which will only be given up when forced upon by the markets. Such dependency will even be more entrenched.

Such actions by the FED also runs in contradiction to supposed claims of economic recovery as the Zero Hedge rightly observed.  It seems the Fed is so scared about something (despite every long-only asset manager telling us day after day that the economy is recovering and the US doesn’t need crisis support… oh and can withstand higher rates) that they have gone against consensus and decided that Tapering now is premature.

FED policy represents a subsidy or transfer of resources to Wall Street and the government diverted from the main street, the economy will hardly post a robust real recovery. And worse, such transfers encourage malinvestments and consumption of capital.

Naturally markets addicted to the FED steroids went into a bacchanalia. The markets has turned into a full Risk ON mode. The taper bluff reinforces the record run for the S&P 500.

QEternity in September 2012 had a 3 month effect of the tempering of bond yields. Confirmation of QEternity will have a shorter duration of impact. In other words, the bond vigilantes will be having a short vacation but they will back soon, perhaps in less than a month.

Back in August PBS Holdings wrote Emerging markets want QEternity.  Over the past few years, QEternity is the humorous moniker that’s been used to describe the Federal Reserve’s seemingly never ending monetary stimulus. But the beginning of the end of QE and one of the most liberal monetary experiments in human history is nigh.

Central banks from emerging market countries like Brazil, India,Indonesia, and Turkey, are already taking aggressive steps to prepare for massive capital outflows ahead of the Fed’s decelerated asset purchases.

But as money flows away from emerging economies back into to developed countries, funding future economic growth and servicing debt becomes more difficult. Also, there’s the problem of containing inflation, which is still too high in BRIC nations like Brazil and India.

Emerging markets have been among the greatest beneficiaries of the Federal Reserve’s five-year easy money cycle. Essentially, Bernanke & Co. encouraged the “risk-on” trade of owning riskier assets by pushing investors out of low-yielding “safe” assets.

On Wednesday September 18, 2013, a QEternity rally drove the Emerging Market Stocks which had sold off, strongly higher, as is seen in the combined ongoing Yahoo Finance Chart of New Zealand, ENZL, Chile, ECH, Malaysia, EWM, India, INP, and especially thailand, THD, Philippines, EPHE, Turkey, TUR, and Indonesia, IDX, with the latter recovering 20% from their sell off lows.

Mike Mish Shedlock writes One sided risk assessment. The Fed sees risks all the time. But it’s all one-sided. The Fed never sees risk in tightening too little. The Fed always sees risks in tightening too much. The result is a series of bubbles of ever-increasing amplitude.

And Mike Mish Shedlock writes Let’s see how long this rally in emerging market currencies lasts. I suspect not long. Brazilian state development bank president Luciano Coutinho who expects currency volatility to increase because the Fed didn’t start tapering. “For us, the sooner it starts and ends, the better. I would rather see it start today and have some date to finish because then we will feel the whole impact. The worst thing is the uncertainty.” And Bloomberg reports One-hundred-year bond wipeout in Mexico triggered by Fed.

Back in July Wall Street Fool wrote Home builders about to feel the wrath of The Titans.  The FED tapering its QEternity Program, is probably the single worst news for Home Builders Stocks.

QEternity rallied Home Builders, ITB, more than any other sector.

On Thursday September 19, 2013, Stocks soared In overnight trading. Benson te writes Asian markets jump on the FED’s QE extension. The reality is that all these stock market-currency market movements have been representative of the pricing of distortions brought about by FED and other central bank policies that has nurtured the market’s addiction to low interest rates environment and the subsequent credit fueled asset boom that has largely little to do with “fundamentals” or the real economy. Europe’s parallel universe should be a prime example.  What really has been a bubble has been misconstrued as a boom. Eventually booms end up in busts and crises as have been through history.

And in overnight trading, AP reports Fed shock sweeps through financial markets. Global stocks surge after Fed maintains stimulus in surprise move. The response in financial markets was immediate, tocks around the world surged, with the major U.S. indexes and Germany’s DAX striking record highs, while the dollar and U.S. government bond yields were pummeled. Commodities, such as oil and gold, were also in demand as were financial assets in many emerging markets as much of the money generated by the stimulus over the years has been invested around the globe to seek potentially higher returns. “Given the extreme moves in financial markets overnight and this morning, some participants have been on the receiving end of a short and sharp lesson on the dangers of attempting to second guess the U.S. Federal Reserve,” said Brenda Kelly, senior market strategist at IG.

Volatility, XVZ, traded slightly higher.  AP reports Dow, S&P End Lower After Record-Setting Run; Groupon, GRPN, Tesla, TSLA,  Spike after record setting rally.  Rite Aid, RAD, spiked higher as well.

Global Producers, FXR, trading higher included TWX, ETN,  FLS, ROK, SNA, CIR, ITT, DOV, and JBT.

Eurozone Stocks, EZU, trading higher included TS, ASML, and CRH.

Japanese Stocks, EWJ, trading higher included IX.

US Regional Banks, KRE, such as RF, STI, HBAN, SNV, traded lower. Global Banks such as LBCS, YG, RBS, SAN, and IBN, HDB, and BPOP traded lower as well. European Financials, EUFN, traded lower. Emerging Market Financials, EMFN, blasted higher, reflecting yesterday’s rally. 

Nations trading lower included South Africa, EZA, Russia, RSX,  ERUS, Australia, EWA, and the Philippines, EPHE. Nations trading higher included Turkey, TUR, and Thailand, THD. Sectors trading lower included Health Care Providers, IHF, Home Building, ITB, and Leveraged Buyouts, PSP, as well as Gold Miners, GDX, and Silver Miners, SIL.

The chart of the US Dollar, $USD, shows a slightly higher close at $80.50. The Chinese Yuan, CYB, as well as Major World Currencies, DBV, Emerging Market Currencies, CEW, traded slightly higher to a rally highs; these are now primed for a competitive currency devaluation at the hand of currency traders as investors derisk and deleverage out of World Stocks, VT.

Yahoo Finance reports that EUR/JPY blasted higher to close at 134.5 but below its recent high of 135, as the Euro, FXE, closed at 133.87, and the Japanese Yen, FXY, shows close lower at 98.41.  The Stockcharts.com chart of EURJPY shows what may turn out to be a dark cloud covering evening star candlestick, communicating an end to Liberalism’s carry trade investing.

The Stockcharts.com charts of World Stocks relative to Aggregate Credit, VT:AGG, Nation Investment relative to World Government Treaury Bonds, EFA:BWX, and Eurozone Stocks relative to EU Deb, EZU:EU, communicate the end of Liberalism’s credit induced speculative leveraged invesing, as well as the achievement of peak wealth: Liberalism’s fiat wealth system is at its zenith

The Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher to close at 2.75%.

Business Insider reports BlackBerry Plans To Fire Up To 5,000 Employees.

Robert Wenzel of Economic Policy Journal writes White House signals “Yale School” Yellen will be nominee for Fed Chief. For the record, Yellen comes out of the “Yale school” of Keynesian macroeconomics. Her dissertation adviser was the Keynesian James Tobin.   Tobin was a huge advocate of using government intervention to stabilize financial markets

CNBC reports Eurozone’s North South divide to widen further. Economic differences between the euro zone’s core and periphery are their most marked in over 10 years, according to a new report, and look set to widen as the region’s nascent recovery takes hold.

Professional services firm Ernst and Young (EY) said that euro zone countries were now at their most economically divergent since the early 2000s, according to its “convergence indicator,” which takes into account variables including gross domestic product, inflation, unemployment rates and government balances.

The gap can been seen in terms of growth – Germany’s economy expanded by 0.7 percent in the second quarter of this year, but the economies of a number of countries, such as Spain and Italy, continued to shrink – as well across lending and employment.

“Sharp differences in financing conditions and labor market developments will maintain stark divergence between euro zone countries,” according to the Eurozone Forecast, published on Thursday. “This poses a threat to efficient decision-making and further economic integration – both of which are necessary to ensure the eurozone’s stability.”

EY said it expected unemployment in the region to continue to rise, peaking at 12.6 percent in the middle of next year, and warned that the “substantial divergence” in unemployment rates across the continent would persist. It said it expected joblessness in Spain and Greece to peak at 27.6 percent and 29 percent respectively in 2014 – while Germany’s will be remain substantially lower at 5.4 percent.

On Friday September 20, 2013, Volatility, XVZ, rose, as the US Dollar, $USD, rose slightly to close at 80.56. The Market Off ETN, OFF, rose in value. Currency Carry Trades unwound worldwide with the Japanese Yen, FXY, trading higher and individual currencies such as the India Rupe, ICN, and the Euro, FXE, trading lower. Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, causing investors to derisk and deleverage out of World Stocks, VT, and Global Industrial Producers, FXR, such as Boeing, BA.

Masaki Kondo, Mariko Ishikawa and John Detrixhe of Bloomberg report Federal Reserve Chairman Ben S. Bernanke’s surprise decision yesterday to refrain from reducing the central bank’s unprecedented stimulus threatens one of the surest bets in currency markets this year. Traders borrowing funds in Japanese yen and using the proceeds to buy dollars earned an annualized 21% this year through Sept. 17, a record based on data compiled by Bloomberg back to 1990.

Nation Investment, EFA, traded lower, with the Emerging Markets, EEM, and Asia Excluding Japan, EPP, leading, the way lower. South Africa, India, INP, Thailand, THD, The Philippines, EPHE, Turkey, TUR, and Chile, ECH, traded lower.

India Banks, EPI, such as IBN and HDB, led India, INP, and the Emerging Market Financials, EMFN, lower.

The National Bank of Greece, NBG, Ireland’s IRE, and Germany’s DB, led Greece, GREK, Ireland, EIRL, and the European Financials, EUFN, lower.

China’s SHG, and China Financials, CHIX, led China, YAO, and Far East Financials, FEFN, lower.

Interest Rate Sensitive Stocks, that is Leveraged Buyouts, PSP, Home Builders, ITB, Utilities, XLU, Global Utilities, DBU, Real Estate, IYR, and Global Real Estate, DRW, traded lower.

Sectors trading lower included Aerospace, PPA, Paper Producers, WOOD, and Automobiles, CARZ.

Metal Manufacturing, XME, was led lower by Coal Miners, KOL, Industrial Miners, PICK, and Steel Producers, SLX.

Gold, GLD, and Silver, SLV, traded lower, forcing Junior Gold Mines, GDXJ, Gold Miners, GDX, Junior Silver Miners, SILJ, and Silver Miners, SIL, lower.   

Aggregate Credit, AGG, traded unchanged, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to close the week at 2.73%.

Summary of this financial market trading for the week ending May 20, 2013.

Liberalism achieved peak prosperity on a non taper rally. On going monetization of debt, specifically Ben Bernanke’s call for no tapering, that is for QEternity, made for a sell of the US Dollar, $USD, which closed the week down 1.2% at 80.56, and propelled Nation Investment, EFA, 2.2%, World Stocks, VT, 1.6%, Global Producers, FXR, 1.4%, US Stocks, VTI, 1.3%, and the S&P 500, SPY, 0.8%, to new all time highs. 

Sectors rising this week included Solar Stocks, TAN, 3.8%, Nasdaq Internet, 3.6%, Home Builders, ITB, 3.0%, Small Cap Pure Value, RZV, 2.4%, Casinos and Resorts, 2.2% higher.  Global Real Estate, DRW, popped 3.9%, higher.

The Eurozone, EZU, rose 3.1%, to a new rally high, as Italy, EWI, rose 3.8%, Spain, EWP, 3.6%, Germany, EWG, 3.3%, and Ireland, Ireland, EIRL 3.2%, and Finland, EFNL, 3.0%. 

Asia Excluding Japan, EPP, rose 2.5%, to a new rally high, as THD, rose, 6.7%, IDX 5.6%, New Zealand, ENZL, 4.4%, EWM 4.1%, and the Philippines, EPHE, 3.8%.

Emerging Markets, EEM, rose 2.2%, to a new rally high, as Turkey, TUR, rose, 9.5%, Chile, ECH 4.9%, Argentina, ARGT, 4.7%.

US Stocks, VTI, rose 1.4%, and the S&P 500, SPY, 0.8%, both to new all time highs, with the chart of the S&P 500, $SPX, showing a rise of 1.3% to its new all time high.

Doug Noland reports Last week set an all-time weekly record for corporate debt issuance. The year is on track for record junk bond issuance and on near-record pace for overall corporate debt issuance. At 350 bps, junk bond spreads are near 5-year lows (5-yr avg. 655bps). At about 70 bps, investment grade Credit spreads closed Thursday at the lowest level since 2007 (5-yr avg. 114bps). It is a huge year for M&A. And with the return of “cov-lite” and abundant cheap finance for leveraged lending generally, U.S. corporate debt markets are screaming the opposite of tightening.

August existing home sales were the strongest since February 2007. National home prices are now rising at double-digit rates. An increasing number of local markets certainly including many in California are showing signs of overheating. Prices at the upper-end in many markets are back to all-time highs. And despite a backup in mortgage borrowing costs from record lows, housing markets have yet to indicate a tightening of Financial Conditions. Clearly benefiting from loose lending conditions, August auto sales were the strongest since 2006.

Anna-Louise Jackson and Anthony Feld of Bloomberg reports More Americans took to the water in new boats this summer, often buying smaller, less expensive models, as the industry is showing signs of a recovery. Purchases of powerboats, which include yachts, pontoons and fishing vessels, rose 18.9% in July from a year earlier, according to Statistical Survey.

Lisa Abramowicz of Bloomberg reports America’s companies, from Apple to Verizon, are saving about $700 billion in interest payments with the Federal Reserve’s unprecedented stimulus. Corporate bond yields over the past four years have fallen to an average of 4.6% from 6.14% in the five years before Lehman Brothers Holdings Inc.’s demise, a savings equal to $15.4 million annually per every $1 billion borrowed. Businesses took advantage of the Fed’s largesse to lock in record low rates, extend maturities and raise cash by selling $5.16 trillion of bonds.  ‘The stimulus was a huge saving grace in the economy overall,’ said J. Michael Schlotman, the chief financial officer at Kroger. The grocery store operator that estimates it’s paying about $80 million less in interest than it would have pre-crisis.

I comment that the Fed’s ongoing stimulus has created unprecented inflation in the most debt ridden of stocks such as Kroger, KR, whose stock value has more than doubled since November 2011.

The 37 ETFs seen in this Finviz Screener, have risen strongly under US Fed relentless QE monetary policy, and are poised to fall strongly lower on the exhaustion of the US Fed’s and world central bank’s monetary authority, that is as bond vigilantes, begin calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.75%, and currency traders once again, begin selling Major World Currencies, DBV, and Emerging Market Currencies, CEW, these are XIV, FDN, CARZ, PBS, IBB, RZV, PSCI, FPX, IAI, XTN, SMH, XRT, PJP, PSP, TAN, RXI, FLM, EIRL, WOOD, EUFN, RWW, FXR, BJK, PBJ, EFNL, YAO, PPA, PNQI, EZA, KROO, ARGT, EWY, GNW

Jim Sinclair writes of the Wednesday September 17, 2013, money printing operation by the US Federal Reserve in article QE to infinity. QE is in fact debt monetization but central banks do not want to call it that because the historical and traditional understanding of debt monetization is and will in time follows.

I comment that a re-monetization of the world’s only debt-free money, that being gold, is underway. And that the chart of the Gold ETF, GLD, shows that it entered an Elliott Wave 3 up with a 4.4% rise on Wednesday, September 17, 2013; these are the most powerful of all economic waves, generating the bulk of wealth gains.

Jesus Christ has always been at the helm of the economy of God, Ephesians 1:10, operating in dispensation, that is in active oversight of human economic and political endeavors, for the fulfillment of every age, epoch, era and time period.  

Under his administration the fiat wealth of liberalism has been surging ever higher. With Fed Chairman Ben Bernanke affirming QEternity; it’s provision constitutes passing the Rubicon of sound monetary policy, as evidenced by the trade lower in World Stocks, VT, on Friday September 20, 2013 manifesting as Liberalism’s fated day of instability, with the Market Off ETN, OFF, and Volatility, XVZ, as well as TVIX, VIXY, and VIXM, rising in value.  Peak Prosperity has come via a policy of investment choice in the moral hazard based fiat money system, which is based on schemes of credit and carry trade investing, all designed for investment gain.

Nikolaj Gammeltoft and Cecile Vannucci of Bloomberg report The next drop in U.S. equities may spur a bigger jump in the Chicago Board Options Exchange Volatility Index as investors rush to cover their record bets against the gauge, according to Societe Generale SA. Hedge funds and other large speculators have more than doubled short positions on VIX futures to 189,020 contracts since the end of June. This year’s rally in U.S. stocks has led to a 19% plunge in the VIX, creating profitable strategies to bet against volatility futures. A decline in equities and subsequent increase in share-price swings would bring losses for VIX short sellers, which may drive them to cover the trades, according to Ramon Verastegui of Societe Generale. Increased demand for the contracts will push volatility higher and may exacerbate the stock-market selloff, he said. ‘The concentrated short in the VIX futures is like a red point if you look at a map of the market, signaling potential risk,’ Verastegui, head of engineering and strategy at the French bank, said. ‘A short squeeze in the VIX will have an impact on the volatility market and that can spill over into other markets, accelerating a move down in the S&P.’

The zenith of liberalism was foretold in the statue of empires, as foretold in Bible prophecy of Daniel 2:25-45, where two iron legs of hegemonic power, would rise to rule the world, these being the British Empire, and the US Dollar Hegemonic Empire, only to experience dissolution into an unstable mixture of ten toes of iron diktat and clay democracy, that is ten zones of regional governance and totalitarian collectivism, this being confirmed by the rise of the Beast Regime of Revelation 13:1-4, to replace liberalism’s Banker Regime.  God’s idea of economy has been, is now, and will ever be one of empire. The Libertarian dream of freedom, and free things like “free prices” for labor, for example, is an illusion on both the liberalism as well as authoritarianism “desert of the real”. 

Under authoritarianism, the schemes of debt servitude schemes, are the order of the day and include such things as regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability; all of which enforces austerity.

The details of the US Hegemonic Empire are provided by Robert Wenzel of Economic Policy Journal in the post of Llewellyn H. Rockwell, Jr. article Who are the champions of the common man?

As the country at large endures great economic distress, civilian employment has skyrocketed in Washington, DC, where the average federal worker earns more than double the salary of the average worker in the private sector. The parasite-host relationship that exists between the ruling few and the toiling many is rarely so stark.

It’s no coincidence that Murray Rothbard, was also a pioneer in power-elite analysis. For instance, Rothbard’s essay “Wall Street, Banks, and American Foreign Policy,” published as a small book by the Center for Libertarian Studies, proposes that there might be a teensy bit more to American foreign policy than a disinterested dedication to promoting “democracy.”

Consider just a few paragraphs:

A glance at foreign policy leaders since World War II will reveal the domination of the banker elite. Truman’s first Secretary of Defense was James V. Forrestal, former president of the investment-banking firm of Dillon, Read & Co., closely allied to the Rockefeller financial group. Forrestal had also been a board member of the Chase Securities Corporation, an affiliate of the Chase National Bank.

Another Truman Defense Secretary was Robert A. Lovett, a partner of the powerful New York investment-banking house of Brown Brothers Harriman. At the same time that he was Secretary of Defense, Lovett continued to be a trustee of the Rockefeller Foundation. Secretary of the Air Force Thomas K. Finletter was a top Wall Street corporate lawyer and member of the board of the CFR while serving in the cabinet. Ambassador to Soviet Russia, Ambassador to Great Britain, and Secretary of Commerce in the Truman Administration was the powerful multi-millionaire W. Averell Harriman, an often underrated but dominant force within the Democratic Party since the days of FDR. Harriman was a partner of Brown Brothers Harriman.

Also Ambassador to Great Britain under Truman was Lewis W. Douglas, brother-in-law of John J. McCloy, a trustee of the Rockefeller Foundation, and a board member of the Council on Foreign Relations. Following Douglas as Ambassador to the Court of St. James was Walter S. Gifford, chairman of the board of AT&T, and member of the board of trustees of the Rockefeller Foundation for almost two decades. Ambassador to NATO under Truman was William H. Draper, Jr., vice-president of Dillon, Read & Co.

That’s just half of Rothbard’s analysis of the power elite surrounding just one president’s foreign policy team.

Who has benefited from the American warfare state? Who, that is, apart from those with political connections or government jobs? The question answers itself. Everyone else has suffered from the trillions of dollars looted from them so the Pentagon might have the power to obliterate every conceivable enemy city a dozen times over. We have suffered from increased indebtedness, and – because capital formation is undermined by the squandering of resources in war and in massive diversion of resources to the military sector – lower real wages than we would otherwise have enjoyed. We’ve suffered from the civilian research and development that never occurred because the brains behind it were siphoned into military research. The costs go on and on.

Who angled for the Federal Reserve? The American public, or the bankers themselves? Anyone reading Rothbard knows the answer. It is not reasonable to expect us to believe that in just this one case, an interest group coming together to enshrine its preferences in law was doing so entirely for the public welfare.

The Fed, meanwhile, has not “stabilized the economy,” contrary to the usual propaganda, and in recent years gave rise to a housing bubble that wrecked the finances of a great many ordinary Americans. Then, adding insult to injury, it bailed out – on preposterous and indefensible grounds – some of the most reckless and irresponsible institutions.

What has the Fed’s economic planning accomplished for Main Street? The Fed’s planning, according to David Stockman, was based on the “wealth effect”: if the Fed pushed stock prices higher, Americans would feel wealthier and would be likely to spend and borrow more, thereby stimulating economic activity.

The results? Zero net breadwinner jobs created between early 2000 and early 2007. From 2000 to 2012, there have been 18,000 new jobs created each month. That’s about one-eighth of the growth in the labor force over the same period.This is what the average person is supposed to be so grateful for?

The state, in short, enriches itself at the expense of the public it fleeces, all the while using its influence over education, the media, and culture to persuade the people that all this fleecing is good for them, that taxes are donations, and that bombing foreigners on ludicrous pretexts is “serving your country.” It urges the general public to consider the absence of the state as the most horrifying, inconceivable scenario of all.

The libertarian tears off the mask of the state, revealing it as the wealth-destroying, poverty-enhancing instrument of terror and expropriation it is. The advances that constitute civilization, libertarians argue, have resulted not from the orders of hangmen and other executioners, or the social planning of bureaucrats and academics, but from human beings cooperating voluntarily in ways that will amaze and astonish anyone who opens his eyes to see them.

And that makes libertarianism the most liberating political philosophy of all.

In rebuttal to Llewellyn H. Rockwell, Jr, I state that God, and His Son Jesus Christ are sovereign over all; that there are no sovereign individuals, and that there is no human action, as there is only the dispensation of Jesus Christ, Ephesians 1:10, in all things, and that it is Jesus Christ who appoints power structures under both liberalism as well as under authoritarianism. God operates in empires; always has, and always will. He has a King, that being Jesus Christ, and a Kingdom, and it is coming by the Revelation of Jesus Christ, Revelation 1:1, where we are witnessing “those things which must shortly come to pass”, before it begins as the 1000 year rule and reign of Jesus Christ on planet earth.

I’m rejoicing because I know the truth, and it has set me free from the deception of human philosophy of Libertarianism, which is simply just another experience in will worship, that is the worship of human things desired, as communicated by the Apostle Paul in Colossians 2:23.

Now under authoritarianism, the only form of genuine wealth will be diktat and the physical possession of gold, as the diktat money system becomes fully established enforcing austerity; where debt servitude schemes, are the order of the day and include such things as regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability.

4) … Regional governance will arise out of the failure of nation investment as well as out of the collapse of the US Dollar and the Rise of the Petro Yuan

Deviant Investor provides the Bill Fleckenstein quote Money-printing cannot solve problems. It doesn’t really give us much gross domestic product growth, as we have seen. It hasn’t really helped on the employment front either, as job growth is meager (of course, it is also hampered by other government policies). What money-printing has accomplished is to push the stock market high enough to cause people to once again become delusional in their expectations” … and Deviant Investor relates To the extent we rely upon the fantasies of ever-increasing debt, money printing, and credit bubbles, we are vulnerable to financial collapses.

Nation Investment, EFA, is now peaking. Yet out of a soon coming Financial Armageddon, a global credit bust and worldwide financial system breakdown, foretold in Bible Prophecy of Revelation 13:3-4. regional governance will rise as leaders meet in summits to renounce national sovereignty and pool sovereignty regionally, for regional security, stability, security and sustainability. 

Zero Hedge reports Canadian Billionaire Investor Ned Goodman in video report relates The dollar is about to be dethroned as the world’s de facto currency. The President and CEO of US $ 9.6 billion Dundee Capital markets sees the end of the US dollar as the world’s reserve currency with the rise of the Petro Yuan, as China is replacing the USD with oil being traded in the Renminbi, that is the RMB, or Yuan, CYB.  Dan Collins in Financial Sense writes Rise of the PetroYuan. No more King Dollar.

US Dollar hegemony accelerated when massive money printing took place after 2001. As the U.S. government began buying its own bonds with money it printed to keep interest rates low for the domestic market, it dropped the bond yields of countries like Saudi Arabia and China, reinforcing the petro-dollar as a means of global growth and trade.

Now, history is being written in the East, and the petro-yuan will be a driving factor in the rise of the king of the east, who presented in Bible prophecy, will come with a 200 million man army to the Battle of Armageddon.

5) … A Soon Coming Global Credit Bust And Financial System Breakdown Will Lead To The Establishment Of a New Global Religion, Specifically A One World Religion Unifying Mankind.

Libertarian Dr. Ron Paul keynoted the Fatima Center conference  “Fatima: The Path to Peace”, held in Niagara Falls, Ontario, Canada on September 8-13, 2013. Other speakers included John McManus, president of the John Birch Society, and William F. Jasper, senior editor of the JBS publication New American. John McManus’ presentation was titled “We’re being led to a one world government and a one world religion”. 

It was Milton Friedman who received the Nobel Peace Prize for his Free To Choose economic doctrine that provided Liberalism’s bedrock floating currency regime and which served as the basis for interventionist policies of monetary inflation by the world central banks.  Out of the ruin of a soon coming global credit bust and financial system breakdown, a world sovereign, that is a world leader, and a world seignior, that is a top dog banker who takes a cut, will unify the world in the establishment of a one world religion establishing Authoritarianism’s beast regime of diktat.   

The first attempt to establish a one world religion was by humans coming together with a single language and migrating from the east, that is the land of Shinar to build the Tower of Babel, Genesis 11.  Mitt Vittnesbord writes on the emergence of a one world religion. The word Babel is from the Hebrew Ba-bhel, from Akkadian ba-b-ilu “gate of god.” Bab is the semitic word for gateway or portal and el means deity or god. So Bab-il means gate or portal to god. These people were attempting to unite into a powerful ecumenical force.

Francisco Toro of Caracas Chronicles writes of a state religion in Journey into the heart of Chavista Chronicles. Because chavismo, deep-down, isn’t really a political movement. Its essence is mystical, afro-caribbean, rooted in a form of spirituality that nobody in Germany has any kind of reference point for. What Hugo Chávez brought to Venezuela isn’t a “dictatorship” in any sense that would make sense to Erich Honecker or even Nicolae Ceaușescu. What we have is the takeover of the state, and much of the public sphere, by a new kind of religious cult that borrows heavily from the language of the political left to create a new devotional system.

I reply that those of apocalyptic vision, perceive that Bible Prophecy of Daniel 2:25-45, foretells of the soon coming of a Ten Toed Kingdom of regional governance, consisting of toes, that is regions, consisting of a miry mixture of iron diktat and clay democracy, which is synonymous with the Beast Regime of diktat and totalitarian collectivism, seen in Revelation 13:1-4, will arise out of a global credit bust and financial system breakdown, having its origins in the sovereign insolvency and banking insolvency of the Mediterranean Sea PIGS; the Beast Regime, which is replacing the Creature from Jekyll Island, will be popular with many, even to the extent that they will actually worship this monster, as presented in Revelation 13:3-4.

Through this soon coming financial apocalypse, the sovereignty and seigniorage of the nation state banker regime will fail and a fierce individual committed to policies of regional diktat, and schemes of debt servitude, will come to rise to rule the Eurozone, as foretold in bible prophecy of Daniel 8:23-25. This leader is also presented in Revelation 13:5-10, as the New Pharaoh, who will be accompanied by the New Prophet, Revelation 13:11-17, who will call for emperor worship, Daniel 9:25, and who will introduce the charagma money system, that is the 666 one world currency system, where all will be required to take the Mark, in order to buy or sell, Revelation 13:18.

John the Revelator in Revelation 13:4, foretells that people will worship the Dragon, that is Satan, Lucifer, the Devil, and the Beast as people will be so amazed of the economic recovery that comes through regional governance and totalitarian collectivism, that the trust engendered in the Beast Regime’s diktat, will be defined as worship.

Worship is one thing Satan has always wanted for himself, and he will receive it through the success of the Beast Regime, the Sovereign and the Segnior, as he imbues, and comes to occupy in all three. In Revelation 5, the Lamb is declared worthy to take the scroll and to “receive power and riches and wisdom, and strength and honor and glory and blessing.” But in Revelation 13, it is three Beasts, a Beast Regime, A Beast Ruler, and a Beast Prophet, who take the place of the Lamb and rule over mankind.

6) … A potential government shutdown looms for October 1, 2013

Andre Dimon of WSWS reports The House also passed a bill that would link continued government operations to the removal of funding for the Obama administration’s Affordable Care Act, setting the stage for a potential government shutdown on October 1.