The S&P Rises On Anticipation Of Continued Federal Reserve Easing Yet A Global Tectonic Economic And Political Paradigm Shift Commenced When The ECB Announced A Cyprus Bank Deposit Bailin … Liberalism Is Giving Way To Authoritarianism

Financial Market report for the week ending April 12, 2013

I) … Soon bears will be appearing in the stock market bringing tombstones for the leaders of investment choice … as EU Finance Ministers such as Olli Rehn raise the banner of diktat ever more prominently over the Eurozone economic scene.

Scott Grannis writes Corporate profits today are almost 200% above the levels of late 2000. Today’s S&P 500 PE ratio is just above 15, which is below its long-term average of 16. Shouldn’t PE ratios be much higher than average considering that risk-free discount rates are at all-time lows? Bonds and stocks are both priced to pessimistic assumptions about the future health of the U.S. economy, no matter how you look at it.  And Scott Grannis also writes (David Stockman is) dead wrong when he says “the Fed has resorted to a radical, uncharted spree of money printing.” I explain here why this is not true. The Fed is only swapping bank reserves for notes and bonds, and the evidence suggests that they have been doing this to satisfy the world’s demand for safe assets. The Fed may well make an inflationary mistake in the future if it fails to unwind its QE in a timely fashion, but that remains to be seen, it is not yet baked in the cake.

I respond monetary policy is most assuredly a preordained disaste

The swapping bank reserves for seemingly “money good” US Treasuries is going to turn toxic to the Fed Balance Sheet very soon, as the value of assets taken in by QE1 are Distressed Investments which trade in value with those in Fidelity Mutual Fund, FAGIX, are topping out in value. 

The Fed has no exit plan, save only to pay interest on the Excess Reserve; ti will have a load of Distressed Investments and a whole bunch of currencies on its books, which will be rapidly falling in value on competitive currency devaluaion. 

Thus, the world stands at Peak Toxic Credit, as is seen in the charst of Distressed Investment, FAGIX,  Senior Bank Loans, BKLN, and Junk Bonds, JNK, topping out. And indeed for a while as stocks, VT, trade lower, the US Government Debt, ZROZ, EDV, and TLT, will be increasing in value before they too fall dramatically lower in value. Point being all fiat assets, both credit and equities will be deflating in value.  

Shortly the banks will become integrated with the Fed, and be known as the government banks, or Govbanks, for short. The Too Big To Fail Banks, RWW, such as BAC, C, KEY, BK, will be seen and will exist as Big Enough To Help Govern. The same will be true in the Eurozone, the European Financials, EUFN, will be unified into a One Euro Government, as leaders meet in summits to waive national sovereignty and pool sovereignty regionally, and announce regional framework agreements to establish EU regional governance.

With the failure of credit, that is trust in the world central banks’ monetary authority to simulate global growth and trade, as well as to grow corporate earnings, investors will rapidly derisk out of small cap pure value stocks, RZV.  And the Currency Demand Curve, RZV:RZG, will turn increasing lower in value, confirming that competitive currency devaluation is underway, and confirming that the fiat money system is beginning to die; this will be reflected in Major World Currencies, DBV, and possibly also the US Dollar, $USD, UUP, trading lower in value.

Please consider that traditional carry trade investing, which is long currencies, and short the Japanese Yen, FXY, is coming to an end, as is seen in the chart of the Optimized Carry Trade ETFN, ICI, rising along an ascending wedge pattern; soon this will be falling sharply out of its consolidation pattern as the World Major Currencies, DBV and the Emerging Market Currencies, CEW, trade strongly lower on competitive currency devaluation, as the desire for risk assets evaporates, and the Risk On ETN, ONN, falls lower in value, as investors deleverage out of toxic debt such, as Distressed Investments, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, stimulating investors to derisk out of the most debt enhanced stocks such as Leveraged Buyouts, PSP, and the most carry traded stocks such as  Global Producers, FXR, such as KUB, FMX, ERIC, ABB, NVS, IR, BA, QCOM, CR, MTW, JBT, CFX, GE, HUB-B, FLS, MIDD, ZBRA, IEX, ROP, DOV, GPC, MMM, ETN, APH, ROK, ITW, MKTAY, SNA, LECO, IP, WY, PKG, BLL, GPK, KS, MWV, seen in this Finviz Screener.

Institutional Investors such as banks and insurance companies as well as nono profit corporations should be short the stock market using FSG, DGP, OFF, STPP, UDN, EUO, seen in this Finviz Screener, as a basis for their margin short selling account, and not only selling the Global Producers listed above but also the Small Cap Pure Value Stocks seen in this Finviz Screener  … and in this Finviz Screener …   

The Milton Friedman Free To Choose Floating Currency Regime, that is the Banker Regime, is giving way to the Beast Regime of regional governance, totalitarian collectivism, and debt servitude, as foretold in bible prophecy of Revelation 13:1-4.  Soon in Euroland, after a European sovereign Default, presented in Revelation 13:3, the periphery countries, especially the PIIGS, will exist as hollow moons, revolving around Planet Germany, for which the Troika, will write the script for eurozone technocratic governance, this being seen in the Reuters report Luxembourg minister says Germany seeks euro zone “hegemony”

A economic and political collapse is coming very soon to Europe, as Reuters reports German imports, exports slump unexpectedly in February, and as the profligate PIGS, that is the periphery countries, Portugal, Italy, EWI, Greece, GREK, and Spain, EWP, are insolvent nations; and the European Financial Institutions, EUFN, are insolvent banks.

Insolvent sovereigns, and insolvent banks cannot provide seigniorage, that is moneyness.    

Jesus Christ is at the helm of the economy of God, Ephesians 1:10, and out of His dispensation, that is out of His administrative rule of the Eurozone sovereign debt and banking crisis, He is pivoting the world from the paradigm of Liberalism into the paradigm of Authoritarianism.

Sovereignty begets seigniorage, that is moneyness. Insolvent sovereigns and their banks are unable to govern and are unable to provide moneyness. Zero Hedge reports 97% of Spanish social security pension fund in domestic bonds. There are a number of reasons why EU banks and retirement funds have loaded up on their own country treasury debts; one being that the purchase of the debt provides funding for the country’s fiscal spending that the financial markets no longer provide. This fake seigniorage, this fake moneyness, cannot continue forever. The purchase of national treasury debt by national banks and national retirement agencies in insolvent countries only concentrates moral hazard for all Euro using nations.

Liberalism was an era characterized by sovereign nations states, whose central banks practiced liberal policies of monetary expansion. The monetary authority of the world central banks gave seigniorage to fiat assets producing Peak Credit Providers, AXP, DFS, V, MA, Peak US Stock Wealth, VTI, and Peak Large Cap Stock Wealth, SPY, Peak US Real Estate, IYR, Peak Banking, IXG, Peak Leverage Investment, PSP, Peak IPOs, FPX, and Peak Dividend Investing, VIG,

Out of growing sovereign crisis will come the new economic and political paradigm of Authoritarianism, as well as a new money system, that being the diktat money system, where diktat of sovereign regional leaders and sovereign regional bodies, serves as currency, money and power directing both economic and political activity most likely through public private partnerships, that is statist organizations, led by representatives from industry, banking and government, to oversee the factors of production. 

Seigniorage that is moneyness, will no longer come from the Banker Regime of Investment Choice, but rather seigniorage will come from the Beast Regime of Diktat, manifesting in the world’s ten regional zones, and in all of mankind’s seven institutions. A world, governed by the Iron Hegemony of The British Empire and the US OIl for Blood Empire, is giving way to a Ten Toed Kingdom of Regional Governance as communicated by the Statue of Empires present in Nebuchadnezzar’s Dream interpreted by the prophet Daniel in Daniel 2:25-45, where toes of iron diktat and clay democracy form an unstable mixture of governance. Inasmuch as Peak Wealth, VT, has been achieved  Peak Hegemony has been achieved.    

EU Finance Ministers such as Olli Rehn are raising the banner of diktat ever more prominently over the Eurozone economic scene, as is seen in the Reuters report The European Commission supports Italy’s plan to accelerate the liquidation of trade debt accumulated by its public administration, Olli Rehn says.

II … Daily stock market trading

IIA) … Monday April 8, 2013

Quartz writes Margaret Thatcher’s Legacy for Business and Economics—the World Weighs in

Despite the fact that her tenure as prime minister ended nearly 25 years ago, Margaret Thatcher continues to divide opinion. Here’s a roundup of views on her economic and business legacy. The AP reports Margaret Thatcher, Iron Lady, dead at 87.Thatcher’s Thoughts from a Life in Politics

The chart of the Japanese Yen, FXY, shows three days of collapse in value causing a blast higher in Hedged Japan, DXJ.

Emerging market Financials, EMFN, are being led lower by Argentine, ARGT, Banks, BBVA, BRF, BMA, GGAL, and India, INP, Banks, HDB, IBN, as is seen in their ongoing Yahoo Finance Chart. The UK, EWW, area banks, LYG, BCS, and especially RBS have fallen sharply as is seen in their ongoing combined Yahoo Finance Chart. South Korea, EWY, Banks KB, and WF, have fallen sharply as is seen in their ongoing combined Yahoo Finance Chart, on the threat of war on the Korean Peninsula. Antiwar reports North Korea closes border industrial region.

IIB) … Tuesday April 9, 2013

Major World Currencies, DBV, blasted higher as investors when long a number of currencies, causing the US Dollar, $USD, UUP, to trade lower.   A rising Euro, FXE, took Greece, GREK, Spain, EWP, Italy, EWI, and Ireland, EIRL, higher.  A rising Australian Dollar, FXA, took Australia, EWA, Australia Dividend, AUDE, Westpac Banking, and Australia Small Caps, KROO, higher.  A rising Canadian Dollar, FXC, took Canada, EWC, and its banks, RY, BMO, BNS, TD, CM, higher, as seen in their combined Yahoo Finance Chart.  A rising Swedish Krona, FXS, took Sweden, EWD, higher.  A rising British Pound Sterling, FXB, took the UK, EWU, higher.  A rising Brazilian Real, BZF, took Brazil, EWZ, and Brazil Small Caps, EWZS, higher.  Rising Emerging Market Currencies, CEW, took the Emerging Markets, EEM, higher.  Mexico, EWW, rose to a triple high.  New Zealand, ENZL, rose to a new high.  Of note, Finland, EFNL, and Poland, EPOL, which had been selling off strongly over the last month as seen in their ongoing Yahoo Finance Chart, traded strongly higher on the day.  Rising currencies gave strong seigniorage, that is strong moneyness to Large Cap Dividend Stocks, Excluding Financials, DTN; these are in a terrific currency and credit based bubble and include S&P Telecom, IST, Utilities, XLU, and Pharmaceuticals, XPH.  

A parabolic rise seen in a number of stock charts suggest that a market top is being achieved; these include IYR, KBWD, ROOF, AMJ, as seen in their combined ongoing Yahoo Finance chart with Dividend Appreciation, VIG. Gold Miners, GDX, SILJ, and Silver Mines, SIL, SILJ, seen in this Finviz Screener, rose strongly. 

Megan Greene of Atlantic Council and chief economist at Maverick Intelligence, previously director of European economic research at Roubini Global Economics, and graduate of Princeton University and of Nuffield College, Oxford University, who worked at JP Morgan Chase & Co. and as an advisor to the Liechtenstein royal family, writes a blog at and ediorializes in Bloomberg relating Cyprus can save itself by fleeing the Euro.  And C. Boyden Gray also of Atlantic Council writes An Economic NATO: A new alliance for a new global insider.  Gary of Between the Hedges relates China Securities Journal reports China risks collapse on outflow, Yu Yongding says. Unexpected outflows without capital account control will lead to massive capital flights, currency depreciation, inflation, asset-bubble bursts, bankruptcy, debt default and finally the collapse of China’s financial system, Yu Yongding, wrote.

IIC) … Wednesday, April 10, 2013

The chart of the S&P 500, $SPX, SPY, shows a strong rise to a new record high as Large Cap Value Shares Excluding Financials, DTN, Real Estate, IYR, and risk assets such as Biotechnology, XBI, rose strongly on anticipation of the Federal Reserve Minutes showing continuing Fed Easing, this despite charts show that a global tectonic economic and political paradigm shift commenced when the ECB announced a Cyprus Bank Deposit Bailin.  The twin spigots of credit liquidity, these being Carry Trade Investing, ICI, with seen in Major World Currencies, DBV, rising higher, and Toxic Credit, consisting of Distressed Investments, FAGIX, Senior Bank Loans, BKLN, and Junk Bonds, JNK, were open and running full-on, supporting the rally in the the S&P 500. reports After alternating between gains and losses for 14 straight sessions, the S&P 500 has pulled a hat trick this week.  It has now scored gains in every session this week and, boy, the third time was a charm.

The market rallied sharply, bolstered by its confidence in the support of the Federal Reserve and healthy gains in influential leadership groups that helped both the Dow and S&P 500 register all-time intraday highs and closing highs today.

The minutes from the March FOMC meeting were the focal point throughout the session.  To begin, they caused a stir after being released early (9:00 a.m. ET) since the Fed discovered they were inadvertently released to 100 Congressional staffers and employees of trade organizations around 2:00 p.m. ET on Tuesday.  The matter of their premature release is under investigation, yet the minutes themselves underpinned today’s gains.

Several views were expressed in the minutes, but the compilation of those views pointed to a majority view that the Fed should at least start tapering its purchases by the end of the year on the assumption labor market conditions are improved by then.  It is important not to forget that what the FOMC decides to do will ultimately be dictated by incoming data. The Fed has been clear on that reminder for a long time. To that end, the minutes also pointed out that a couple of members noted the pace of purchases might appropriately be increased (emphasis our own) if progress toward the committee’s economic goals was not maintained. Our view is that the minutes were supportive for the equity market for the following reasons:

  • Not many participants want the Fed to stop or to taper purchases without proof that improving economic conditions are sustainable. Therefore, when the time comes it will be against a backdrop of sustained economic improvement that bodes well for consumer and business spending, and earning prospects.

  • The minutes are working toward reducing the element of surprise for market participants as it relates to future policy decisions.

  • The March nonfarm payrolls report, out after the FOMC meeting, does not fit with the tapering parameters maintained by Fed Chairman Bernanke, Vice Chairman Dudley, and Fed Governor Yellen who will continue to steer the policy directive.

The debate about the inferences of the FOMC Minutes will persist, yet the equity market certainly did not act as if it feared an earlier-than-expected tapering.  The major averages moved steadily higher from the sound of the opening bell before leveling off around 1:00 p.m. ET.  From that point on, they held in tight trading ranges that left them in close proximity to their best levels of the day by the time the closing bell rang.

John Carney of CNBC relates It wasn’t just Capitol Hill staffers and trade groups that received the Federal Reserve minutes a day early. Many banks and other financial institutions also got an early look at the minutes. A list of recipients obtained by CNBC reveals that at least 12 banks, a Wall Street law firm, a hedge fund, and a private equity fund were on the distribution list that got the minutes early.

The banks included Fifth Third, FITB, Citigroup, C, UBS Bank, UBS, Barclays, BCS, Goldman Sachs GS, Wells Fargo, WFC, HSBC Holdings, HSBC, BB&T, BBT, JPMorgan, JPM,  and PNC Financial Services, PNC.  Sullivan & Cromwell, one of the most powerful Wall Street law firms, also got the email.

Indices … A striking divergence has arisen between the S&P 500, SPY, and the Russell 2000, IWM, on the ongoing assumption that the US Federal Reserve will continue QE, supporting the S&P 500, and and the reality that the end of credit is commencing, destabilizing the credit sensitive Russell 2000.  

SPY 1.2 Rose strongly on the rise of the Large Cap Value Excluding Financials, DTN, 1.2

IWM 1.8

VT 1.4 … New rounded top high

Small Caps … The small cap sector stock charts show a total breakdown beginning in April 1, 2013

RZV 2.1

RZG 1.4

Banking … Banking and the Asset Managers, BLK,WDR, EV, STT, WETF, AMG seen in this Finviz Screener which rose 3.6% today, 

EUFN 2.7

KCE 2.1

IXG 1.9

IAI 1.9

KRE 1.6

EMFN 1.4

RWJ 1.1

RWW 1.1

Risk assets rose to or above recent rally highs in anticipation of the Federal Reserve Minutes

IBB 2.7

PBS 1.9

BJK 1.7

FPX 1.2 … Rose parabolically to a new high

PSP 1.1 … Rose parabolically to a new high

KBWD 0.7

Yield bearing sectors seen in this Finviz Screener Screener, 0.7

DBU 1.7

AUSE 1.4 … Australia Dividends rose to a double top high on a rally in the Australian Dollar, FXA.

XPH 1.3

DTN 1.2 … It has been the rise in Large Cap Value Excluding Financials, DTN, that has underwritten rising stocks globally. These have risen on an ongoing assumption that the US Federal Reserve will continue its QE program. Large Cap Value Excluding Financials, DTN, rose parabolically above upper channel resistance on anticipation of the US Federal Reserve Minutes.   

XLU 0.8 … Utilities, XLU, have risen strongly since the Interest Rate on the Ten Year Note, ^TNX, has fallen from below 2.0% since March 15, 2013, when the ECB announced a Cyprus Bank Deposit Bailin as covered by Edward Harrison of Credit Writedowns, which commenced a safe haven rally in US Government Bonds, TLT

VIG 0.8

IST 0.7

IYR 0.6  … Real Estate, IYR, has risen vertically on anticipation of continued US Federal Reserve QE.

Country Investment

EFA 1.5 Chart shows a new rounded top high

GREK 3.2

EWP 3.1

EWI 2.5

DXJ 2.5 New high on a continued fall in the Yen, FXY, to 98.16

EFNL 2.1

EWN 1.9

EWJ 1.8 New high on a continued fall in the Yen, FXY, to 98.16

EWD 1.4

EWW  1.4 New high

EWA 1.1 Rose strongly on a rally in the Australian Dollar, FXA.

EIRL 0.8

Small Cap Nation Investment

IFSM  1.7 Rose near its recent high

EPHE 2.3 Triple top high

KROO 1.7 Rose strongly on a rally in the Australian Dollar, FXA.

ENZL 1.5 New high

JSC 0.3  New high on a continued fall in the Yen, FXY, to 98.16

Real Estate has risen parabolically in anticipation of the Federal Reserve Minutes

KBWY 0.9

FNIO 0.9 … Rose parabolically to a new high

IYR 0.7 … Rose parabolically to a new high

ROOF 0.4

REZ 0.3

REM 0.1

Global Economic Producers … All the charts of the Global Economic Producers show sell off since March 15, 2013, when the ECB announced a Cyprus Bank Deposit Bailin as covered by Edward Harrison of Credit Writedowns.  

IGN 2.8

IGV 2.8

FDN 2.5

XSD 2.0

CARZ 1.9

XTN 1.8

FXR 1.6

XLI 1.3

WOOD 1.1


XRT 1.5 New high

IYC  1.0 New high

Emerging Markets show a bear market beginning in January 2013

EEM 1.3

EFMN 1.4

EMMT 2.5

Diversified Equipment Manufacturers, seen in this Finviz Screener 1.7

Business Service Providers seen in this Finviz Screener 2.3%

The spigot of Toxic Debt has risen parabolically in anticipation of the Federal Reserve Minutes.


BKLN  0.1

JNK 0.5

The spigot of both Major World Currencies and Emerging Market Currencies, rose vertically in anticipation of the Federal Reserve Minutes.

DBV 0.6 rose vertically

CEW 0.2 rose vertically

UUP  0.1

IID) … Thursday, April 11, 2013, a broad number of S&P 500 stocks attain 52 week highs.

It was a currency carry trade day. again today.Hedged Japan, DXJ rose 2.1%, establishing a new high on a continued fall in the Yen, FXY, to 98.00. Sweden, EWD, rose on a higher Swedish Krona, FXS. The UK, EWU, EWUS, continued higher on a higher British Pound Sterling, FXB. Europe, VGK, and the European Financials, EUFN, continue higher on a higher Euro, FXE. Australia, EWA, continued higher on a higher Australian Dollar, FXA.

A broad range of sectors rose to new highs on renewed confidence that the US Federal Reserve will continue its monetary policies of Inflationism, specifically ZIRP and Quantitative Easing; these included

1) Risk-on Sectors such as seen in this Finviz Screener.

2) Consumer Sectors seen in this Finviz Screener.

3) Economic Producers seen in this Finviz Portfolio.

4) Real Estate Sectors seen in this Finviz Screener

Bespoke Investment Group writes We finally saw a breakout in new 52-week highs that hasn’t been seen since April 26th, 2010, which was right around the one-year mark after the 2009 bear market low.  As shown below, 31.6% of S&P 500 stocks made new 52-week highs today.  When an index like the S&P 500 is making new highs, technicians like to see a large number of individual stocks in the index also making new highs.  When that is happening, it means there is broad participation in the rally, which is indicative of a healthy bull market.  That’s certainly happening now. An inquiring mind asks, a health bull market or a market top, as Bespoke Investment Group writes Stocks in extreme overbought territory.  The chart of the S&P 500, $SPX, SPY, rose to a new all time high.

IIE) … Weekly  Summary for the week ending Friday, April 12, 2013

This week, the chart of the Major World Currencies, DBV, shows a vertical rise, producing a crack up boom in World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Global Producers, FXR, Dividend Excluding Financials, DTN, and Small Cap Pure Value, RZV, rose higher, as is seen in their ongoing Yahoo Finance chart, producing Peak Stock Wealth.

This week the US Dollar, $USD, -0.5%, UUP -0.1% as DBV 1.1, CEW 0.8. On the upside,  the Swedish Krona, FXS 1.7, the Australian Dollar, FXA 1.1, the Euro, FXE 0.7, the Brazilian Real, BZF, 0.7, the Swiss Franc, FXF 0.5, the Canadian Dollar, FXC 0.3; and on the downside, the Japanese Yen, FXY- 0.9.

Marketwatch reports 30-year mortgage rate falls to 3.43%.

Yahoo Finance reports that the Interest Rate on the 10 Year US Government Note, ^TNX, traded to close at 1.72%

The strong rally in anticipation of the Federal Reserve minutes has now provided short sellers an entry point at the end of this week, as in a bull market one buys in dips, but in a bear market one sells into pips. Daily Ticker video interview reports S&P 500 may fall more than 40% by fall: Chris Martenson  And Breakout video interview reports Bet Against the Herd by Buying Stocks Making New Highs: Detrick. One could go short the ETFs, seen in this Finviz screener as they were as a group are at market top : PSP, IBB, RZV, CARZ ,BJK ,FXR, TAO, WOOD, ITB ,FEMS, AUSE, FPX, ECNS, XSD, FDN, XRT, PXE, PKB, EUFN, IYC, PJP, PBS, XOP, PSCE, ROOF, KBWY, REM, DLS, EWW, THD, EPHE, EIRL, TUR, IDXJ, NMR, RWW, DXJ, KROO, ENZL, IGN, JNK, IAI, KBWD

As revealed in the last book of the Bible, The Revelation of Jesus Christ,  He is now bringing forth ten new things; these are:

  • a New Age, (from the age of investment choice to the age of diktat),

  • New Economic Action (from inflationism to destructionism),

  • New Dynamos (from the dynamos of corporate profit and global growth to the dynamos of regional security, stability and sustainability),

  • a New Trust (from trust in bankers, carry trade investing and credit to trust in nannycrats , totalitarian collectivism, public private partnerships and debt servitude),

  • a New Paradigm, (from liberalism to authoritarianism),

  • a New Sovereignty, (from the Banker Regime of democratic nation states to the Beast Regime of regional governance),

  • a New Seigniorage, (from the seigniorage of investment choice to the seigniorage of diktat),

  • a New Economy (from crony capitalism, european socialism, and Greek socialism, to Regionalism),

  • a New Religion (from religions and philosophies based upon the worship of one’s own will to a mandatory one world religion consisting of emperor worship)

  • a New Money System, (from the fiat money system to the diktat money system)

Spot Gold, $GOLD, traded at $1480 on Friday April, 12, 2013, making for a new low. Yet, wealth will increasingly be preserved and owing by physical ownership of gold, in bullion coins, and in global trading forms, that is in Internet trading vaults, such as BullionVault.  Its only a short matter of time before gold trades higher, recovering from its death cross as is seen in Jack Chan’s chart of the Gold ETF, GLD.

Money, that is wealth as it has been known, is going to be extinguished, yes wiped out, as the monetary policies of the world central banks have passed the rubicon of sound monetary policy; monetization of debt by the world central banks have made “money good” investments bad. While Reuters reports BOJ’s Kuroda: have taken all steps needed for inflation goal, the world is actually at a point where excessive credit liquidity has finally blown the top off the stock market.

Japan is a nation overwhelmed with debt. When one cannot go to the left or to the right, and one can not go up on down, and one cannot return to the light of day, then one must go further in. Japan, EWJ, has gone all in; it has received all the inflation it is going to receive; the benefit of the inflationary stimulus went to those who invested in the stock market beginning in October 2012. On this subject of going all in, Doug Noland provides the following news clippings:

April 10 – Bloomberg (John Detrixhe): “Japanese and investors following them may have purchased about $13.5 billion of non-Japanese bonds since the Bank of Japan announced its unprecedented stimulus last week, 10 times more than the previous period, according to a Societe Generale SA estimate. Speculation has intensified that money will flow out of Japan in search of higher yields elsewhere after BOJ Governor Haruhiko Kuroda said… the central bank will double its monthly bond purchases to 7.5 trillion yen ($76bn).”

April 9 – Bloomberg (Anchalee Worrachate): “Euro-area bonds are rallying as the Bank of Japan’s unprecedented stimulus pushes Japanese investors to Europe for higher returns, neutralizing the impact of Cypriot bank meltdowns and an Italian political stalemate. The BOJ said last week it plans to purchase 7.5 trillion yen ($75.8bn) of bonds a month. That strategy exceeded economists’ median estimate of 5.2 trillion yen a month and is the biggest such move since the nation began a program of so-called quantitative easing in 2001 to stimulate its economy.”

April 11 – Bloomberg (Katie Linsell): “The world’s biggest fund managers see Europe’s junk-bond boom continuing as the prospect of further interest-rate cuts and sustained demand for higher- yielding assets push issuance to a record. BlueBay Asset Management LLP predicts sub-investment grade European companies will sell more than $100 billion of debt this year to lock in cheap funding, beating a 2011 record of $70.5 billion…”

April 11 – Bloomberg (Lisa Abramowicz): “Investors are favoring the riskiest, hardest-to-trade junk bonds by the most in 17 months as confidence mounts that central banks from Japan to the U.S. will prop up debt markets through year-end. The extra yield investors demand to buy the least-traded bonds with the lowest speculative-grade ratings instead of more liquid securities narrowed to 1.2 percentage points on April 9, the smallest gap since November 2011… Yields on the smallest and oldest CCC rated notes contracted by 1.9 percentage points this year, three times the drop on yields for more active notes with comparable grades. Bond buyers seeking to escape the financial repression brought on by near zero interest rates are venturing deeper into the market in search of returns.”

April 12 – Bloomberg (Boris Korby and Julia Leite): “Gerdau SA and JBS SA are leading a revival in overseas corporate debt sales from Brazil as unprecedented bond buying from Japan fuels the biggest drop in emerging-market borrowing costs since November. After the slowest start to a year since 2009, at least six Brazilian companies have sold or are marketing debt abroad this week.”

April 11 – Bloomberg (Yumi Teso and Fion Li): “Borrowing costs in emerging markets sank to record lows as Japan’s unprecedented monetary easing spurs demand for higher-yielding assets. The average yield on developing-nation local-currency debt tracked by JPMorgan Chase & Co. fell 16 basis points since April 3, the day before the Bank of Japan expanded its asset-purchase program, to an all-time low of 5.39 percent yesterday. Ten-year government yields dropped to levels not seen before in Mexico, Czech Republic, Poland and South Africa this week, while comparable rates in South Korea and the Philippines touched all- time lows in the past month. The BOJ said last week it will buy 7.5 trillion yen ($75 billion) of bonds a month and double its monetary base in two years…” 

April 12 – Bloomberg (Toru Fujioka and Masahiro Hidaka): “Governor Haruhiko Kuroda said the Bank of Japan will not set a time limit for easing and will continue until it achieves sustainable inflation. ‘It is not appropriate to say that the monetary easing will only last for two years,’ Kuroda said… ‘The bank will continue with monetary easing, aiming to achieve the price stability target of 2 percent, as long as it is necessary.’”

April 11 – Financial Times (Jeremy Grant): “When a team of analysts at Credit Suisse visited Indonesia a few weeks ago to take the temperature of Southeast Asia’s biggest economy, they were startled by what they were told by one of the country’s biggest property developers. Ciputra Development, which builds luxury condominiums, said that, while prices in central Jakarta, the capital, had been growing at a rapid clip – about 30-40% a year – a new trend had emerged. Demand had started to spill over to greater Jakarta and even to so-called second-tier cities, where Ciputra had seen property prices jump by 50% last year. ‘We felt this was evidence of a property bubble,’ says Robert Prior-Wandesforde, director of research… While the economies of the 10-nation Association of Southeast Asian Nations grew by an average of 5.6% last year… there are dark clouds gathering. ‘The price of key assets, such as property, is rising fast as monetary easing in developed countries continues to send ‘hot’ money from advanced economies in the west, chasing anything that will produce yield.”

The whole concept of God is mysterious, and He loves mysteries, that is secrets revealed to those of His choosing, where His choice is not based upon meritocracy, or the exercise of one’s own will or choice, but the exercise of His Will, from eternity past.

These secrets are known unknowns and revolve around His Son Jesus Christ, who is working according to the law of Universal Administration, that being Dispensationalism, for the fullness of every age, epoch, era and time period, completing it, much as a ship’s captain, assures that everything on the manifest is present before the ship sets sail, Ephesians 1:10.

One of the greatest known unknowns is the Revelation of Jesus Christ, that is, the future today; it is truth for end-times living, Revelation 1:1, which God gave to the Apostle John, in his 90s, in a dream by angels while he was living in exile on the Isle of Patmos, to edify His servants, the saints, as to what must soon take place and fall in place, like lined dominoes toppling one upon another, once the first is knocked over. 

These last days events began in May of 2010 when Herman van Rompuy arranged for the first Greek bailout which began a gradual loss of its national sovereignty, and which served to undermine Liberalism’s democracy based nation investment, crony capitalism, European socialism, Greek Socialism, and started to introduce Authoritarianism’s regionalism, totalitarian collectivism and debt servitude.     

The road to serfdom is paved with the expansion of credit that has come from the two spigots of credit liquidity. The first spigot of credit liquidity has been the world central banks monetization of debt. And the second spigot of credit liquidity has been the sell of the Yen, FXY, beginning October 1, 2013.

Liberalism’s credit liquidity was based upon the Banker Regime’s Fiat Money System, where currencies, founded on national sovereignty, or in the case of the Euro, the Maastricht Treaty, created money, that is wealth. Money was also coined by Asset Managers, BLK, WDR, EV, STT, WETF, AMG, and the securitization of debt and equity by banks such as BAC, JPM, and DEXIA. 

Authoritarianism’s debt servitude is based upon the Beast’s Diktat Money System, where diktat money is coined by the diktat of sovereign regional leaders and the diktat of sovereign regional bodies. The schemes of LIberalism included the repeal of the Glass Steagall Act, and the provision of Quantitative Easing; but the schemes of Authoritarianism include the following:

1) Regional framework agreements such as Greek Bailout I, II, III.

2) Mandates of sovereign regional bodies, that is nannycrats, such as the EU Finance Ministers,  meeting in summits and workgroups, as in the case of the Cyprus Bank Deposit Bailin

3) Policies of regional sovereign leaders, such as the Monetary Pope, Mario Draghi, and his LTRO1, LTRO2, and OMT.

4) Directives of regional public private partnerships, that is where Monetary Cardinals, leaders from industry, banking and government, meet in task forces for statist oversight of the factors of production to manage regional economies, and provide for regional security, stability, and sustainability.  

Sovereignty produces seigniorage, that is moneyness.

Under Liberalism’s fiat money system, the sovereignty of democratic nation states provided  seigniorage, specifically the seigniorage of investment choice establishing credit and prosperity.

But under Authoritarianism’s diktat money system, the word, will and way of sovereign regional leaders, such as the nannycrats, that is the EU Finance Ministers, and regional sovereign bodies, such as the ECB, provides seigniorage, specifically the seigniorage of diktat establishing debt servitude and austerity.

Peak monetary expansion and peak credit liquidity has been achieved, as evidenced by the crack up boom, in S&P Telecom, IST, Utilities, XLU, Pharmaceuticals, XPH, as well as the Global Industrial Shares seen in this Finviz Screener, and by the Elliott Wave 5 High of Major World Currencies, DBV, and the Elliott Wave 2 High of Emerging Market currencies, CEW.  Debt deflation will be getting underway very soon as the FX currency traders sell currencies short, inducing Financial Apocalypse, that is a credit bust and global financial breakdown, as foretold in Bible Prophecy of Revelation 13:3.

Diktat Money is the compliance required, as well as the trust that is engendered, the austerity that is experienced, and the debt servitude that is enforced, when sovereign regional leaders such as Olli Rehn, and sovereign regional bodies such as the EU Finance Ministers or the ECB, invoke mandates for regional security stability and sustainability.

Diktat money is the replacement for fiat money that comes from the paradigm shift tinto Authoritarianism and out of Liberalism where the fiat money system produced fiat wealth via securitization of stocks and bonds by Asset Managers, such as BLK, WDR, EV, STT, WETF, AMG, seen in this Finviz Screener, and the Too Big To Fail Banks, RWW, such as BK, BAC, C,WFC, and Investment Bankers, KCE,  such as JP Morgan, JPM.

The coming of age of diktat money is a characteristic of devolution that comes from the failure of credit seen which will be seen in Leveraged Buyouts, PSP, and Credit Providers, AXP, NNI, COF, MA, V, PRAA,  WRLD, RCII, DFS, FSC, FCFS, CPSS, AGM, SLM, CSE, GPN, NICK , CSH, CACC, ECPG, CIT, NEWS, WU, IX, seen in this Finviz Screener, that comes from the two spigots of Liberal Finance being turned off and running toxic; this being first, Toxic Credit, consisting of Distressed Investments, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, and the second being Currency Carry Trade Investment, ICI, terminating on the exhaustion of the World Central Banks’ monetary authority, which will be evidenced by Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower in value, which also soon may include the US Dollar, $USD, UUP trading lower in value. Competitive currency devaluation, will cause disinvestment out of Nation Investment, EFA, Small Cap Nation Investment, EFA, Global Industrial Producers, FXR, Small Cap Value Stock, RZV, and Risk Assets, such as PSP, PBD, IBB, FPX, BJK, CSD, as well as out of International Corporate Debt, PICB, and National Treasury Bonds, BWX.

Out of ever increasing European sovereign debt crisis, and out of  soon coming Financial Armageddon, that is a credit bust and global financial system breakdown, as foretold in bible prophecy of Revelation 13:3, the diktat money system will rise to replace the fiat money system. This mega financial extinction of investors will occur like the extinction of the woolly mammoth, which died out around the time of the last glacial retreat, as part of a mass extinction of megafauna in northern Eurasia and the Americas, except that Financial Apocalypse will come on with lighting velocity and intensity, catching most investors off guard. 

III) … Disclosure

I exist in poverty, and while I do have an investment account, that is a savings account, it is unfunded; and I use credit and have a big, big, big bill to pay off. 

I live in the faith of Jesus Christ; He provides the His Life indemnity policy, whereby I exchanged my old self for the New Man, and He is now my All Inclusive Life Experience.

I reside in the city of subdued excitement, in the downtown area, near skid row, in the seabreeze apartments, where many “live free” on social security disability, food stamps, have the Obama Phone, and receive assistance from charity non profit organizations such as Opportunity Council providing Springwire community voice mail service, and the Mission providing three hots and a cot if needed.

Ever since a teenager I have lived with antisocial people, but it is only recently that I have come to understand them as psychopaths, a term which likely came into use around 1985, and became increasingly known in 2000 when the Google search engine came into wide use.

I devote time every day to thinking about, and reflecting upon psychopathy, and psychopathic behavior, as it intrudes into my life so frequently, largely because there is so much of it in my two Claritas Lifestyle Prizms, that is Big City Blues (the low income, the uneducated, and the unskilled) and Low Rise Living (the disabled, the derelict, the delusioned, the devoid, and the defunct.)  

The New Testament is written in Greek, a very powerful language, and was wisely translated into English by the King James authors who provided strong presentation of words.

A bible word used to describe psychopaths is poneros, Strong’s word #4190, pronounced pon-ay-ros’,  which depending upon the context of use, means bad, evil, and worst of all wicked, manifesting as full of labours and annoyances producing hardships in lives of all who come into contact with the individual, basically a troublemaker; it occurs 76 times.

In the end times, love of all types will grow cold because of the poneros: love for others, love for God, love for a knowledge of the truth, all will grow cold.     

An important question one should ask is What motivates me and others?  Psychopaths are unreasonable individuals, and get life satisfaction from being poneros, who manifest as bears, lions, and leopards, the three animal characters of the Beast System of Revelation 13:1-4; these be crude, rude, and lewd.

Psychopaths operate in territories as predators, with you being the prey; their territory can be the personal space surrounding them, their workplace, a club they visit, or their neighborhood; and the economy. Their aim is to be an overlord of their territory; they see themselves as cultural warriors, seeking to both assert and protect their culture, that is their way of thinking and things that they themselves determine to be right or wrong according to their own subjective standards; in short they are self appointed social sheriffs who are driven by a need to confront others about everything and anything and to be preeminent.   There are three types of psychopaths:  

1) the bears … gossips,  neighborhood bullies,  busybodies, corporation presidents,  punditsTV personalitiestalk show hosts, and  think tank organizations; they want to rule over you, or make a meal out of you; they are like Diotrephes, “who loves to have the preeminence”, 3 John 1:9;   

2) the lions … nicolaitans, the church clergy, Revelation 2:6, 14-15; they want to make merchandise out of you, 2 Peter 2:3.

3) the leopards … eurozone nannycrats, that is the sovereigns of the Beast Regime; they want to Cyprus you, that is put capital controls on you, place you under totalitarian collectivism, and force you into debt servitude.

All  psychopaths are chameleons and learn through mimicry to act a certain way, which advances their opportunity to engage in devious and mischievous behaviors because who would suspect?

Abuse Sanctuary Blog relates April Wilkinson writes Psychologist explains the psyche of psychopaths. Dr. Sue Stone is a clinical psychologist at the Citizen Potawatomi Nation in Shawnee, a position she’s held since January. Although her work here is in general psychology and therapy, her specialty area is psychopathy, and she came from three years’ work at the Department of Corrections, doing criminal court evaluations, consulting on capital murder cases and more.

Psychopaths also differ in that their intellectual and emotional understanding of things don’t match. Stone said psychologist Robert Hare has a saying for this condition: Psychopaths know the words but don’t know the music when it comes to emotions. “They know intellectually what it is to be sad, but their empathy and regard for other people is not there,” Stone said. “They can mimic the feeling, but they really can’t put words to how they feel because they don’t have that internal experience.”

There is no known treatment for psychopaths; rather, behavior management is the course of action, Stone said. Psychopaths don’t say, “I need help” because they see others as the cause of their problems; they don’t have anxiety to prohibit their behavior, she said. And studies have shown that group therapy not only doesn’t work for psychopaths, it makes their behavior worse, Stone said. They use the therapy setting as practice for manipulating people.

I relate that there is a resolution process of dealing with psychopaths; it involves marking and turning away, as well as withdrawing, as presented in the bible in Romans 16:17, and 2 Thessalonians 3:2-6. Christians practice  Biblical Separation daily; it is a tenet of sound christian doctrine: there are four aspects of Biblical separation: political (separation of church and state), personal (separation from sin), ecclesiastical (separation from false teaching), and practical (separation from others who walk disorderly). 

IV … Sound and beneficial ideas are in scarce, that is in the general sense of the word in limited supply … Sound and beneficial ideas help one understand reality and make sound and beneficial decisions

One’s ideology is based upon either the fiat of philosophy or religion which is basically will worship, that is, the worship of one’s own will. On the other hand, one’s idea are based upon Scripture, that is the Gospel, or Good News of the objective reality of Christ, Ephesians 4:21-24, which provides Grace and Truth, John 1:17.

Unfortunately, much of today’s christian religion is based upon the false premise that one chooses Jesus.  However, sound doctrine is both reformed based, along the lines of John McArthur, John Gill, and John Calvin, as well as restored based, along the lines of Witness Lee and Watchman Nee; and presents that God chose the believer in Christ from eternity past, predestined him, appointed him, and made him accepted in The Beloved.  

Isms are processes that produce states-of-beings from ideas. For example dispensationalism is the  concept that Jesus Christ is exercising administrative management of all things in each of mankind’s epochs, eras, eras, and time periods, to make them full, Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, Colossians 1:25.

Dispensationalism comes from Strong’s Greek word oikonomia, #3622, dispensation, literally means household dispensing, household stewardship, household management and economic oversight of property. Dispensations are epochs, ages, eras, and time periods of mercy and judgement.

MB-Soft relates Dispensational theology grows out of a consistent use of the hermeneutical principle of normal, plain, or literal interpretation. This principle does not exclude the use of figures of speech, but insists that behind every figure is a literal meaning. Applying this hermeneutical principle leads dispensationalism to distinguish God’s program for Israel from his program for the church. Thus the church did not begin in the OT but on the day of Pentecost, and the church is not presently fulfilling promises made to Israel in the OT that have not yet been fulfilled.

The objective reality is that this week’s robust stock market performance is concluding an age of investment trust in the world central bank’s monetary authority, as Jesus Christ through dispensationalism is completing Liberalism, and is introducing Authoritarianism, an era where trust will be in the diktat of sovereign regional leaders, such as the EU Finance Ministers, and sovereign regional bodies, such as the ECB.

Through currency debasement, in particular the long term sell of the US Dollar, $USD, UUP, up until February 1, 2013, and now the sell of the Japanese Yen, FXY, money, that is wealth, inflated in value.

Under Liberalism, money was coined by Asset Managers such as BLK, WDR, EV, STT, WETF, AMG, with the provision of ETFs, and money was coined by the securitization of investments by banks such as BAC, JPM, and DEXIA.

Yet Liberalism’s two spigots of Liberal Finance will soon be turned off and will be running toxic. The first t being, Toxic Credit, consisting of Distressed Investment, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, and the second being Currency Carry Trade Investment, ICI, terminating on the exhaustion of the World Central Banks’ monetary authority, which will be evidenced by Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower in value, which also soon may included the US Dollar, $USD, UUP trading lower in value. Soon coming competitive currency devaluation, will cause disinvestment out of Nation Investment, EFA, Small Cap Nation Investment, EFA, Global Industrial Producers, FXR, Small Cap Value Stock, RZV, and Risk Assets, such as PSP, PBD, IBB, FPX, BJK, CSD, as well as out of International Corporate Debt, PICB, and National Treasury Bonds, BWX.

The Cyprus Bank Deposit Bailin, as covered by Edward Harrison of Credit Writedowns, was and continues to be a corruption of money. Money, took a turn lower in value the week ending April 5, 2013, only to recover in value this week on anticipation of continued US Federal Reserve monetary policies of ZIRP and Quantitative Easing.

Money as it has been known will be taking a turn for the worse, as the seigniorage, that is the money producing capability of the world central banks’ monetary policies, is turning toxic on excessive credit, and as the terms of Cyprus Bank Deposit Bailin will be perceived as onerous presenting investment risk.

With the failure of the seigniorage of the fiat money system, the seigniorage of the diktat money system, will arise from the diktat of sovereign regional leaders, such as the EU Finance Ministers, and the diktat of sovereign regional bodies, such as the ECB. 

Money under authoritarianism will consist of required compliance to mandates of soveign regional leaders and sovereign regional bodies, trust in nannycrats, the experience of austerity, and debt servitude, all for the purpose of securing regional security stability and sustainability; and thus cannot be measured with metrics such as M2 Money. 

Diktat Money was born out of the Cyprus Bank Deposit Bailin; it is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity that is experienced, such as heavy losses on large bank deposits, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional sovereign leaders such as Olli Rehn, and sovereign regional sovereign bodies such as the EU Finance Ministers or the ECB, invoke mandates for regional security stability and sustainability.

V … Ideas come from fathers, that is from starters, and serve as the basis for eveyr age, epoch, era and time period … their ideas form the basis for economic and political authority.

Liberalism began on November 22, 1910, when a handful of senators and bankers left Hoboken, New Jersey on a train to design the creature from Jekyll Island, that is what would become the US Federal in 1913; Wikipedia relates these included Senator Nelson Aldrich,  Senator A.P. Andrew, Paul Warburg Frank A. Vanderlip,  Henry P. Davison, Charles D. Norton,  and Benjamin Strong

David Ben-Gurion led Israel in the 1948 war which the Israelis referred to as the War of Independence and thus Israel expanded the territory awarded by the British Empire under the Balfour Declaration of November 2, 1917, to become a nation state. His nation craft was one of many events that diminished the global hegemonic power of the British Empire. Geography relates that in 1954, Egypt and the UK signed a seven year contract that resulted in the withdrawal of British forces from the canal area and allowed Egypt to take control of the former British installations.  The handing back of Hong Kong to China on July 1, 1997, closed the final chapter on the British Empire as it was the last significant colony.

Thus the first of the two global hegemonic powers to fall, as seen in bible prophecy of King Nebuchadnezzar’s Statue of Empires, Daniel 2:25-45. was the British Empire. The other kick-ass, commerce and debt based global hegemonic power, is the United States.

This second iron leg of prophesied global hegemonic power, rose to preeminence beginning in 1971 when Milton Friedman proposed the Free To Choose Floating Currency Banker Regime.  It was embraced by President Nixon, who took the US off the gold standard and was able to fund the Vietnam War.  In 1997, neoconservative writers and pundits advocated aggressive US foreign policies and rallied support for American global leadership via the Project for the New American Century, PANC, which according to William Rivers Pitt writing in Information Clearing House, resulted in the organization of the US military into regions and a Blood for Oil War in Iraq.  Al Jazeera reports that    dozens of US and allied forces present a globe-spanning American archipelago of bases. The goal of the Free To Choose Floating Currency Banker Regime was never ever to promote Freedom, but rather to ground, that is make Democracy firm, that is make the currencies of democratic republics reliable for nation investment. Democracy was strengthened by Free Trade Agreements, cooked up by think tanks, which opened the door for corporations to grow profits and expand global growth and trade. The world central banks’ monetary policies of ZIRP and Easing facilitated Inflationism to the point where Nation Investment, EFA, Small Cap Nation Investment, IFSM, and Global Industrial Production, FXR, rose to new highs this week reflecting Peak Democracy. Wherever there be a central bank, and participation in the Free To Floating Currency Regime, there will never ever be a Free People.               

Liberalism’s Banker Regime was greatly empowered by the the repeal of the Glass Steagall Act, spearheaded by Representative Jim Leach, Senator Phil Gramm, and Robert Rubin.

Scott Grannis in Come and get it,  communicates that Liberalism featured Free Money. With the deductibility of mortgage interest and inflation, a 30-yr fixed-rate mortgage is essentially free money. The CPI has averaged about 2.5% for the past 15 years, and most folks with a jumbo loan should be able to deduct about 35% of the interest. The after-tax interest cost would be about 2.5%, and subtracting inflation of 2.5% gives you zero.

Today, through trust in monetary expansion policies of the world central banks, the world stands at Peak US Hegemony, as Liberalism’s Banker Regime has succeeded in coining Peak Money, that is Peak Wealth, measured by World Stocks, VT,  Global Industrial Producers, FXR,  rising to a new weekly highs. The crack up boom, which came on rising credit of all types,  has reached its zenith.  

Peak Credit has been achieved as is seen by the rise in Toxic Credit to new heights, this includes Distressed Investments, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, as well as the credit providers, AXP, V, MA, IX, residing near record highs.

Peak Carry Trade Investing has been achieved, as is seen in the Optimized Carry Trade ETN, ICI, residing at the apex of an ascending wedge, and Major World Currencies, DBV, having risen to a new rally high, and Emerging Market Currencies, CEW, rising near its recent high. 

And Peak Mortgage Recovery has been achieved as Jeff Macke of Breakout reports Mortgage recovery has peaked: Whalen says Chris Whalen, managing director of Institutional Risk Analytics, says there’s turmoil under the surface for big ban.

This the Golden Age of America. The online dictionary informs, a time period when some activity or skill was at its peak; and the Oxford dictionary defines, an idyllic, often imaginary past time of peace, prosperity, and happiness. the period when a specified art, skill, or activity is at its peak.

This week stock sector gainers included Nasdaq Biotechnology, IBB, 5.9%, Biotechnology, XBI, 5.1%

Dynamic Media, 4.4%, Semiconductors, XSD, 4.1%, Retail, XRT, 4.1%, Gaming Stock, BJK, 3.7%,  Networking, IGN, 3.5%, Consumer Discretionary, IYC, 3.1%, Leveraged Buyouts, PSP, 3.0%, Industrial Office REITS, 3.0%, Real Estate, IYR. 2.7%, Small Cap Real Estate, 1.3%.

This week stock sector losers included Gold Mining, GDX, -8.1% as GLD, -5.8 and Silver Mining, SIL, -5.3% as SLV, -4.2.

Vice Stocks, VICEX, have performed quite well. Benton te writes of this and the risks in The Philippine casino bubble.

Countries taking Nation Investment, EFA, to a new high include Japan, EWJ, Sweden, EWD, US, VTI

Switzerland, EWL, Australia, EWA, Mexico, EWW, The UK, EWU, and Turkey, TUR.

Countries taking Small Cap Nation Investment, IFSM, to a new high include The Philippines, EPHE,

Indonesia Small Caps, IDXJ, Ireland, EIRL, Australia Small Caps, KROO, Japan Small Caps, JSC

UK Small Caps, EWUS.

Doug Noland reports weekly on sovereign wealth that the wealth of the sovereigns has continued on to a new high:  Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $674bn y-o-y, or 6.5%, to a record $11.082 TN. Over two years, reserves were $1.433 TN higher, for 15% growth. The world has achieved Peak Sovereign Wealth.

And Mr. Noland reports M2 (narrow) “money” supply surged $67.8bn to a record $10.518 TN. “Narrow money” expanded 7.0% ($684bn) over the past year. The world has achieved Peak Discretionary Wealth reflected in investment in Retail, XRT, Consumer Services,  IYC, Global Consumer Consumer Staples, KXI, Global Consumer Discretionary, RXI, Homebuilding, ITB, and US Health Care Providers, IHF, rising to new highs or trading just under recent highs. 

It is sovereignty that begins seigniorage. Liberalism through the monetary policies of the world central banks has succeed in producing Peak Sovereignty and Peak Seigniorage. 

On the topic of Peak Money Doug Noland writes Things have gone to far. As difficult as it may be for most to believe, the world’s preeminent central bankers are a select group of highly intelligent public servants that suffer from a huge void in their understanding of contemporary finance.

They subscribe to an erroneous and outdated doctrine of how finance operates and seem to share a flawed perspective with respect to the interplay of contemporary finance, financial markets and economies. Worse yet, Dr. Bernanke is wedded to a (Milton) “Friedmanite” revisionists view that the “Roaring Twenties” was the “Golden Age of Capitalism” brought needlessly to an end by negligent central bankers unwilling to print and inflate. His fixation has been with policy mistakes in the 1930s – with little apparent interest in those from the 20s, 70s, 80s, 90s or 2000s.

For too many years (going back to the 90’s) the Fed and global central bank policies have incentivized leveraged speculation. This has fostered a massive inflation in this global pool of speculative finance that has ensured too much market-based liquidity (“money”) has been chasing too few risk assets. Speculative excess today encompasses all markets, including gold and the commodities. Over recent months, these Bubbles have become increasingly unwieldy and unstable. Commodities are the first to crack.

Forecasting Bubble behavior is a tricky, tricky business. Yet I’ll stick with the view that Europe is the initial major crack in the “global government finance Bubble.” And while Draghi resuscitated “risk on” throughout Europe, this actually works to exacerbate fragilities as that region struggles with a deep and evolving crisis. I’ll stick with the view that five years of global financial excess has helped push China to the status of a crazy dangerous Bubble. And I see no reason to back away from the analysis that the emerging economies in general suffer from a dangerous Bubble mix of rampant Credit excess, problematic imbalances and deteriorating economic performance. Moreover, I’m content with the view that the “global leveraged speculating community” is one huge accident in the making.

I relate that Jesus Christ is working Dispensationalism to pivot the world from Liberalism into Authoritarianism, Ephesians 1:10.

Authoritarianism’s fathers or starters include Angela Merkel and Nicolas Sarkozy who Spiegel reports  have called for a region of true European economic government.  The Telegraph reports that EU Finance Ministers Jeroen Dijsselbloem, Michel Barnier, and Olli Rehn spearheaded the Cyprus Bank Deposit Bailin.

Daily Silver News reports Draghi orders Cyprus to sell all gold reserves to cover shortfall in Emergency Loan Assistance by the ECB. relating that the ECB chief said “the government must abide by the central bank’s handling of the gold stock, since it is independent from political control under European rules.” 

Mike Mish Shedlock writes of Cyprus Band Deposit Bailin Liar, liar, pants on fire; spoon-fed demands by the number. About that Cyprus shortfall, As I expected, it’s a lot bigger than the Troika expected, assuming you believe the Troika was telling the truth about the size of the needed bailout. The Guardian reports Cyprus forced to find extra €6bn for bailout, leaked analysis shows. Cypriot politicians have reacted with fury to news that the crisis-hit country will be forced to find an extra €6bn (£5bn) to contribute to its own bailout, much of which is expected to come from savers at its struggling banks.

A leaked draft of the updated rescue plan, which emerged late on Wednesday night, revealed that the total bill for the bailout has risen to €23bn, from an original estimate of €17bn, less than a month after the deal was agreed – and the entire extra cost will be imposed on Nicosia.

Visiting Athens, the Cypriot parliament’s president, Yannakis Omirou, said the tiny island nation had been “served poison” by its EU partners.

The €23bn overall bill is larger than an entire year’s output from the Cypriot economy.

Cyprus hammered into submission.

Step by step, Cyprus has been hammed into submission. Its economy has been ruined for at least a decade.

Recall the original deal was €13bn. It is now €23bn.

Recall that Cyprus Popular Bank, Laiki, was supposed to have 30% losses. Guess what?

Spoon-fed demands by the number

  1. Laiki 100% wiped out

  2. Capital controls

  3. Losses exceed the size of the entire Cypriot economy

  4. Cyprus would have to sell its gold

  5. The Cypriot Central Bank would lose its independence

  6. Cyprus will go into an economic depression for a decade to pay for the “bailout”

Cyprus has been spoon-fed a pack of escalating demands by the Troika.

Had Cyprus initially understood the totality of what was going to happen, Cyprus may have done the right thing which should now be obvious: Tell the Troika to go to hell, default, exit the eurozone. It’s still not too late, but Cyprus needs to do so before it sells its gold.

Zero Hedge relates The European Commission lays out the true blueprint for the future pf every European country.

Tobias Buck in Madrid and Michael Steen of Financial Times report Mariano Rajoy, the Spanish prime minister, has called for the European Central Bank to be handed more powers, highlighting renewed north-south political tensions about the bank’s role in battling the eurozone debt crisis. ‘I think in Europe we must all ask ourselves whether the ECB should have the same powers as other central banks around the world,’ the Spanish leader said.

CNBC relates El-Erian: Cyprus Rescue goes from bad to worse.

Reuters reports Germany puts brakes on EU bank union with treaty call

Christoph Dreier of WSWS relates The Cypriot bailout marks a new stage in the euro crisis.    Fifty-five years after the founding of the European Economic Community, the project of unifying Europe on a capitalist basis has been irrevocably shattered by the global economic crisis. And Robert Stevens of WSWS relates European Union imposes austerity bailout on Cyprus. The terms dictated to Cyprus by the European Union in exchange for a bailout are predicated on the destruction of the pay and conditions of the working class.

The Telegraph reports Cyprus faces economic meltdown as EU-IMF refuses extra aid:.Cyprus must take on an extra €5.5bn in the cost of its bail-out, a sum equivalent to a third of the island’s annual GDP, without any additional help from the European Union and IMF.

Marketwatch reports Cyprus causing fresh market pain as doubts grow over ability to meet bailout terms

CNBC reports Confusion over Cyprus’ Bailin funding grows

The NYT reports Bailout terms are eased for Ireland and Portugal

Reuters reports Slovenia eyes bank sell-off, budget revision to avoid bailout

I relate that The Luminaries of Authoritarians are providing the few scarce ideas that are powering up the Beast Regime of regionalism, totalitarianism, and debt servitude, as foretold in bible prophecy of Revelation 13:-14. This monster is rising from EU sovereign default and from the banking crisis of the PIGS, that is the Mediterranean Sea nations of Portugal, Italy, Greece, and Spain. 

Tom Stoukas of Bloomberg reports Greece’s unemployment rate increased to a record in January as the country’s economic downturn entered a sixth year. The rate rose to 27.2% from a revised 25.7% in December.  I comment that the Troika’s Diktat is producing its fruit of increasing austerity and debt servitude.

Andrew Davis and Lorenzo Totaro of Bloomberg report Italy’s debt will reach a postwar record this year as the recession-hit country borrows to contribute to bailouts and pay arrears to suppliers. The public debt will rise to 130.4% of gross domestic product in 2013 from 127% last year. The budget deficit will drop to 2.9% of GDP this year, putting Italy within the European Union’s 3% limit.

Angeline Benoit of Bloomberg reports Spain’s failure to honor budget-deficit goals has hurt the country’s credibility and justifies a negative outlook on the sovereign’s credit rating, Moodys’ said. ‘The continued deviations from agreed budgetary targets as well as the repeated revisions of budget deficit outcomes are weakening the credibility of the Spanish government in the area of public finance,’ Moody’s analysts Kathrin Muehlbronner and Bart Oosterveld wrote.

It is the debt issuance, run away fiscal spending, national wage laws, anti-competitive legislation, and clientelism of European socialism and Greek socialism, as well as the excesses of the world central banks’ monetary policies that have crossed the rubicon of sound monetary policy, that will make “money good” investment bad, and will result in the collapse of the second iron leg of global hegemony, that being the US, and the rise of the Ten Toed Kingdom of regional governance as seen in King Nebuchadnezzar’s Statue of Empires, Daniel 2:25-45.

Liberalism featured the fiat money system where sovereign nation states gave the seigniorage, that is moneyness, of investment choice to credit and currencies, producing prosperity

Authoritarianism features the diktat money system where sovereign regional leaders and sovereign regional bodies provide the seigniorage of diktat, where mandates serve as currency, money and power, producing debt servitude and austerity.

Wealth can only be preserved by investing in and taking possession of gold , either in bullion form or by trading on Internet vaults such as Bullion Vault. John Rubino relates The Long Wave  ersus the printing Press: Another 2008?  Marc Faber of the Gloom Doom Boom Report was interviewed by Bloomberg on Friday, and of course topic number one was the brutal takedown of gold. Reassuringly, he likes the resulting buying opportunity and expects “a major low in gold within the next two weeks.” 

An inquiring mind asks, Emulate Ron Paul, as the Daily Bell suggests, or imitate the Apostle Paul, as Scripture suggests?

Jesus Christ will oversee the destruction of all existing economic and political life as the pivots the world out of Liberalism and into Authoritarianism, in order that one might come to see Him as the Light of the world, John 8:12, and trust in Him for Life, Colossians  3:3-4, and as one’s All Inclusive Life Experience, Colossians 3:11.  

If you are looking for Freedom, that is the right to use personal property and intellectual property without state intervention, I must tell you that you are wasting your time, as Jesus Christ never, ever intended that be a Free People anywhere outside of The Church, that is the collection of believers in Him, Jesus Christ, Savior and Lord God Almighty.

Liberalism featured a Free To Choose Floating Currency Regime that awarded fantastic investment prosperity through the facilitation of moral hazard.  Risk Assets such as PSP, PBD, IBB, FPX, BJK, CSD, performed quite well on the World Central Banks’ Cool Aid of Toxic Debt, which included Distressed Investments FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, as well as their Cool Aid of Carry Trade Investing, ICI, which came on the purchase of Major World Currencies, DBV, Emerging Market Currencies, CEW, and sell of the Japanese Yen, FXY.  

Austrian economist Mike Mish Shedlock writes The Eurozone is a failed experiment. The Eurozone is a failed experiment. Structural flaws were too great initially, and they have increased over the years. No currency union in history has ever survived unless there was also a fiscal union. Current politics says it cannot happen, on meaningful terms. A breakup is inevitable, just as it has been from the beginning. The key is to manage a breakup in the least destructive manner.

The Eurozone has been and will continue to be the lynchpin in Christ’s Dispensation, Ephesians 1:10, to bring Democracy and Investment Choice to completion, that is its fulfillment, but these are coming to an end with the Cyprus Bank Deposit Bailin. Now Diktat is coming to underwrite mankind’s economic and political activities, as Jesus Christ is bringing forth a New Regime, that is the Beast Regime of Regional Governance, Totalitarian Collectivism, and Debt Servitude, Revelation 13:1-4, which will be accompanied by the rise to power of a New Pharaoh, Revelation 13:5-10, and a New Monetary Pope, Revelation 13:11-18.  To accomplish His aims, He is unleashing the Four Horsemen of the Apocalypse, the First Horseman of the Apocalypse is the Rider on The White Horse, who has a bow, without any arrows to effect a bloodless global and economic coup d’etat, to transfer the baton of sovereignty from nation states to regional leaders and regional sovereign bodies such as the EU Finance Ministers and the ECB, Revelation 6:1-2

VI … Suggested reading. Hat Tip to Dollar Collapse for most of these items.

Ron Paul’s Podcast Nation: Cyprus Fair Warning – Liberty Crier

Ron Paul’s Podcast Nation – Liberty Crier

Neo-Con War Addiction Threatens Our Future – Liberty Crier

Internationalizing Your Assets Webinar – Casey Research

Doug Casey On Internationalizing Your Assets – Casey Research

The Destruction Of Offshore Banking Tolls For Thee – Daily Bell

Don’t Depend On Bank Deposit Insurance: Mike Shedlock Says— Daily Ticker

Taking Distortion at Face Value – John Mauldin

A Big Week For IPOs, And More Are Coming –CNBC

Profiting From The End Of The Monetary System As We Know It – GoldSeek

Japan Move Raises Talk Of Currency Controls — BBC

5 Of 10 Top Economies In The World Drop The Dollar – Activist Post

Australia To Abandon The US Dollar  —

China’s Shadow Banking Boom Rings Alarm Bells — Ambrose Evans Pritchard 

Taking Distortion at Face Value – John Mauldin

The Theology of Inflation – John Mauldin

Witches Brew: Part 4 – Reality Bites – Ty Andros, 24hGold

Buying Dead Flowers – Rick Mills, Ahead of the Herd

ZIRP (0%) is Not Stimulus, Rather a Death Knell – Jim Willie

Doug Casey: All Banks Are Bankrupt – Casey Research

The Confiscation Scheme Planned For US And UK Depositors – Counterpunch

We’ve Been Lied To, Robbed, And Misled – Peak Prosperity

Countries Are Now Printing Paper Without Limit – Bull Market Thinking

Ron Paul’s Worldview Forged in Early Family Life – David Halbfinger, New York Times

US Government Debt Monetization – Michael Pollaro, Forbes

Crony Economist Mark Zandi Likely to Head Agency that Regulates Fannie Mae — Robert Wenzel of Economic Policy Journal

Ron Paul To Launch New Policy Institute: The Ron Paul Institute For Peace And Prosperity — Robert Wenzel of Economic Policy Journal

The Future Of The Euro: Lessons from History” Conference. It’s sponsored by the University of California, Institute of European Studies, the Austrian Marshall Plan Foundation and the Austrian National Bank, will be held at the University of California, Berkeley. According to the event organizers, the event will focus on the following questions: Will the Euro survive? Should it survive? Will the current crisis lead to the banking, fiscal, and political union ultimately required for monetary union and envisioned when the euro was created? Or will current efforts to stabilize the monetary union with only limited moves in the direction of banking, fiscal and political union suffice to save the euro? Is there danger that pressure for deeper integration will only worsen the “democratic deficit problem” and create a backlash against the larger European project? Helene Schuberth, Senior Advisor, Austrian National Bank and Brad DeLong will be among the participants. (Hat Tip to Robert Wenzel)

VII … Coming up in future reports

1) Is morality inherited? Does antipathy or empathy come by nature or nurture? Is virtue established in the womb or even before conception?

2) Defining characteristics of psychopaths. If one knows these characteristics, one can spot a psychopath a mile off and avoid them.

3) What is truth? It’s the most important question ever asked?

4) What establishes Scripture as authoritative and reliable for belief? 

5) Who’s that woman dressed in purple and riding the Beast?

6) Women can be psychopaths too.

7) Some claim to be Jews but are not.

8) Is there such a thing as a sovereign individual? Does a person have a soul, and what is the definition of a soul?

Keywords: diktatmoney


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