Financial Market Report for th Week Ending May 3, 2013
1) … Introduction
God has appointed His Son as the heir of all things and has tasked him with the responsibility of bringing to full maturity the things of every time priod. In dispensation, that is in the house hold administration of the economy of God, Jesus Christ, Ephesians 1:10, has brought Liberalism to its very zenith of completion.
Peak Soveignty and Peak Seigniorage, has produced Peak Prosperty, that has come by ever increasing moral hazard and ever increasing risk to one’s ethics, via currency carrry trade investing and credit liquidity, based upon the monetary expansion of the world central banks’ fiat money system.
Jesus Christ has appointed Joshua Flecka as herald of a soon coming Eurozone Federal Government.
While Liberalism was the era of investment choice, Authoritarianism is the age of diktat. Just as investors today trust in the authority of the world central bankers such as Ben Bernanke, Mario Draghi, and Hiroki Kuroda, to provide credit. All people, everywhere with increasing frequency will be required to comply with the diktat of regional nannycrats in regional governance, debt servitude and labyrinthian austerity measures in the diktat money system.
2) … On Wednesday, May 1, 2013, European Labor Day, a major Illuminati Holiday, the sovereignty of the nation state of Greece utterly gave way as Christoph Dreier of WSWS reports More mass layoffs in Greece. The Greek parliament has voted to dismiss 15,500 public service workers and slash the minimum wage. Constitutional law, all historic law, and natural law has been superced by the word will and way of sovereign Eurozone regional leaders, that is by nannycrats, and by sovereign regional bodies such as the EU Finance Ministers and the ECB. And The Telegraph reaports Portugal to slash 30,000 public sector jobs and raise retirement age. Portugal’s prime minister has announced that the government plans to slash 30,000 public sector jobs as part of a sweeping package of spending cuts to satisfy international creditors
On the one hand, it is truly manipulative for the EU Finance Ministers to seize control of Greece and terminate Greek Socialism. Their endeavor is like setting off a neutron bomb which destroys all life, yet leaves the structurs standing. But then agin the Greeks, should never have been allowed into the Eurozone, for thier clientelism and tax avoiding ways; but they were invited in simply because, with interest rates falling, their treasury debt rose in value, presenting a fantasic invesment opportunity. Greek Socialism featured not only an anticompetive economic system, but a system described by the Economist Magazine as pork and patronage, that is one of clientelism. Needless to say, nannycrats are just now, beginning to literally wipe out Greek socialism.
The Greeks no longer live by Liberalism’s seigniorage of investment choice; they live by the a new seigniroage, the seigniorage of diktat as Chris Marsden of WSWS reports A Grand Coalition for austerity in Italy.
The First Horseman of the Apocalypse, presented in Revelation 6:1-2, as the Rider on the White Horse, who has a bow but now arrows, is effecting a Eurozone coup d’etat and is passing the baton of sovereignty from nation states to EU regional leaders and EU regional sovereign bodies such as the EU Finance Ministers and the ECB.
Jesus Christ is operating at the helm of the economy of God, Ephesians, 1:10, pivoting the world from Liberalism to Authoritarianism. That is He is operating in dispenstion, that is the economic and political administrative plan of God for producing peak experience in every age, epoch, era, and time period, drawing out the very fullness and completion of that experience, that He might be known as being sovereign over all thing, and in all things.
News reports document that the paradigm of Liberalism is being replaced by Authoritarianism, its as Zero Hedge relates Europe has become a totalitarian state.
Chris Marsden of WSWS reports No retreat from austerity in Italy. Enrico Letta heads a coalition tasked with continuing the savage austerity measures begun under Mario Monti.
Alex Lantier of WSWS reports Amid jobs collapse, French President Hollande backs austerity in Europe. With 26 million workers unemployed in Europe, Hollande is signaling that he will keep supporting social cuts that are devastating the French and European economies.
Chris Marsden of WSWS again reports A Grand Coalition for austerity in Italy. The formation of a Grand Coalition government in Italy shows the degree to which the global financial oligarchy dominates political life.
Greeks are no longer citizens of a nation state, rather they exists as serfs residing under regional govenance, totalitarian collectivism, debt servitude and austerity. These profligate ones, are the first to become subjects of the prophecied Beast Regime of Revelation 13:1-4, which is rising out of the Mediterranean Sea sovereignty and solvency crisis, to replace the Milton Friedman Free To Choose Banker Regime. And The Guardain reports the toll of economic decay being experienced. Greece suffers more misery as retails sales slump by nearly a third With a eurozone record of 27.5% of Greeks unemployed, the country’s retailers say the economy has gone into freefall .
Wikipedia relates that Joschka Fischer is a European Federalist thought leader who left office on November 22, 2005. On 15 September 2010 Fischer supported the new initiative Spinelli Group, which was founded to reinvigorate efforts towards federalisation of the EU. Other prominent supporters are: Jacques Delors, Daniel Cohn-Bendit, Guy Verhofstadt, Andrew Duff, and Elmar Brok.
Joschka Fischer is profiled as holding a professorship at the Woodrow Wilson School of International and Public Affairs at Princeton University, is a member of the Board of Trustees of the International Crisis Group, and of the Executive Board of the European Council on Foreign Relations.
David R Reagan writes that sovereignty will be sacrificed as a Federal Europe is formed. “German Foreign Minister Joschka Fischer repeated his call for a European government in July, 2000, and said the European single currency, the Euro, was “the first step to a federation.” He added that he wanted a “powerful president.”1 Fischer said his aim was “nothing less than a European parliament and a European government, which really do exercise legal and executive power,” to operate under his powerful president. More sinisterly, he welcomed the progress made in removing the “sovereign rights” of nations which he defined as control of currency and control of internal and external security. In summary, Fischer said, “Political union is the challenge for this generation.”2 … (1 and 2 Ibid, “German Foreign Minister floats idea of elected EU president,” The Financial Times, July 7, 2000. This article was a report on a speech by Joschka Fischer to the European Parliament’s constitutional affairs committee.)
Joschka Fischer writes in Project Syndicate Germany is once again at the center of the process of disintegration of trust. For the distressed southern European states, the German-backed mixture of austerity and structural reforms is proving fatal, because the decisive third and fourth components – debt relief and growth – are missing. It is only a matter of time before one of the large European crisis countries elects a political leadership that no longer accepts the austerity diktats. What does Germany want? A German Europe would never work, and the country’s political class lacks both the courage and the determination to pursue a European Germany. What needs to be done has long been clear. The price of the monetary union’s survival, and thus that of the European project, is more community: a banking union, fiscal union, and political union. Those who oppose this because they fear common accountability, transfers from rich to poor, and a loss of national sovereignty will have to accept Europe’s re-nationalization – and thus its exit from the world stage. No alternative – and certainly not the statusquo – will work.
I respond what will work and what is starting to work in the Eurozone is the diktat money system. The seigniorage, that is the moneyness, of the Milton Friedman Free To Choose Banker Regime, has been one of investment choice, supportied by the fiat money system. But now, with Libealism pivoting into Authoritarianism on May 1, 2013, with the failure of the political sovereignty of Greece, the world is beginning to be based upon the seigniorage of the Angela Merkel and Olli Rehn Beast Regime, which is one of diktat.
Diktat money was born out of the Cyprus Bank Deposit Bailin and issued in Authoritarianism.
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 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.
In dispensation, that is the economic and political administrative plan of God, Jesus Christ is terminating Liberalism and introducing Authoritarianism, where ever increasing moneyness will come from the mandates of regional leaders, such as the EU Finance Ministers and regional bodies such as the ECB, underwritten by Authoritarianism’s schemes such as regional framework agreements, which will waive national sovereignty and pool sovereignty regionally. The Nordic Latin Divide, that is the Eurozone North South Divide, will be bridged by such agreements, establishing a One Euro Government. While Germans, cannot be Greeks, they will be one, unified as residents of a region of “true European Government” as proposed by Angela Merkel, and reported by Spiegel and others. Clearly the Greek status is one of responsibility and accountability to sovereigns in Brusssels and Berlin; the future of the EU is a “ditkat union”.
3) … On Thursday, May 2, 2013, the S&P 500, $SPX SPY, rose 1.0% to a new high. Turkey, TUR, Japan Small Caps, JSC, the Phillippines, EPHE, rose to new highs. World Financials, IXG, rose to a new high as the European Financials, EUFN, and as the Too Big To Fail Banks, RWW, led Emerging Markets Financials, EMFN, the Regional Banks, KRE, and Far East Financials, FEFN, higher on the day.
Liberalism has created equity, credit and currency markets which have become utterly dependent upon government support. Increasing wealth, that is increasing money in the form of World Stocks, VT, and Nation Investment, EFA, has come through not only the Quantitative Easing policies of the US Federal Reserve, but also through the zero interest rate policies of the other leading central banks, such as the Bank of Japan, the ECB, the Australian Central Bank, and the New Zealand Central Bank as well, which has resulted in Global ZIRP, leveraging up investment results through carry trade investing, ICI, and the issuance of Junk Bonds, JNK, and all types of credit, AGG.
Economic Policy Journal reports Federal Reserve continues current monetary policy, The Fed said in a statement today that it is going to continue its aggressive expansion of the monetary base.
Benton te writes More poker bluffs. The removal or even a reduction of such stimulus essentially would “pull the rug from under” the inflationary boom and undermine the current government debt financing mechanics that would stir such massive market and economic disorder and volatility. This would raise the spectre of the “deflation”, a market phenomenon which incumbent authorities have a rabid phobia on, as well as, raise the risks of a default.
Simon Black of the Sovereign Man eloquently enunciates why US Federal Reserve has been TRAPPED by their own actions on financing the US government or the monetization of US treasuries.
Now, bear in mind that US debt already exceeds 100% of GDP.
Even using the US government’s own ridiculous budget projections (which assume 3.5% REAL GDP growth) Uncle Sam will still accumulate over $5 trillion in debt over the next decade.
But here’s the thing– the current $16.75 trillion of US debt has an average maturity of just 65 months. This means that the US government will be on the hook to repay a huge chunk of its debt within the next 5 1/2 years. So in addition to issuing $5 trillion (optimistically) in new debt, they’ll also have to re-issue trillions more in existing debt.
Someone is going to have to mop up all that debt. The question is… who? The Chinese are actually REDUCING their Treasury exposure as a percentage of total US debt (see chart). This is consistent with their objective to strengthen the renminbi. The story is the same with Japan at the moment, whose nominal US debt holdings have actually been decreasing. The US Social Security trust fund is also a major holder of US debt. Yet, according to the Washington Post, roughly 10,000 people EACH DAY become eligible to receive Social Security pension benefits. Given the increased outflows and high level of US unemployment (fewer people paying into the system), it’s doubtful that the Social Security trust fund will have sufficient cash to bail out the Federal government.
This leaves the US Federal Reserve as the lone player to mop up all this debt. There simply are no other options; the US government will default in all likelihood, unless the Fed continues debauching the currency to buy Treasuries. Fed officials and their apologists will continue with their blandishments of steroid withdrawals but real political economic conditions suggests that all these represent as mere bluffs.
4) … On Friday, May 3, 2013, World Stocks, VT, rose 1.1%, Nation Investment, EFA, 1.2, Small Cap Nation Investment, IFSM, 1.2, all rose to new highs on the announcement off lower ECB interest rates, despite the Reuters report that Factory orders fell sharply in March. And as Zero Hedg reports Non-manufacturing ISM, factory orders both miss expectation. And as Mike Mish Shedloc writes Global manufacturing stagnates; global recession will follow
Ambrose Evans Pritchard writes German bond yields hit record low after ECB rate cut falls short. The European Central Bank cut interest rates a quarter point to a record low of 0.5pc. Mr Draghi said the ECB is “technically ready” to cut the deposit rate below zero, an unprecedented step. This would impose a fee on banks for parking excess cash at the ECB, forcing them to lend. “We will look at this with an open mind,” he said. Analysts were divided over the significance of the move. Michael Krautzberger from BlackRock said the shift in thinking shows that the ECB has finally understood “the seriousness of the situation”. Monument’s Marc Ostwald said it was an admission of defeat. “It is the bottom of the barrel. What this really shows is that Draghi is scrabbling around trying to find anything. The problem is that the ECB is not a full central bank and has manacles stopping it doing anything,” he said.
The ECB said it is studying options to help small business in the Club Med bloc, where credit stress is comparable with levels seen in the Lehman crisis of 2008-2009. Jacques Cailloux from Nomura said large parts of EMU economy need “designated credit-easing” along the lines of Britain’s Funding for Lending. “The credit transmission channel is broken,” he said. The ECB’s reluctance to stop the “nominal” GDP growth grinding ever lower spells trouble for the debt trajectories of the Club Med states. The OECD warned in a report on Thursday that Italy’s public debt would rise to 131pc of GDP this year and 134pc next year, levels that enter uncharted waters for a major country without a sovereign central bank. The recession itself is undermining debt dynamics.
Benton te adds I have been expecting bolder and more aggressive experiments or tinkering with the financial system from central bankers. Central bankers will push using central banking (inflationism) tools to the limits.
Central bankers have been revealed as having no qualms using the economy as guinea pigs for their grand designs.
And for whose benefit? Mr. Draghi on the direction of ECB policies: I would use the word frustrated, yes. We view improvements in financial markets. We think financial markets are the only and the necessary channel for the transmission of monetary policy. You don’t go around with helicopter money, throwing money. In Europe, you go through banks. You don’t have capital markets as you have in the U.S. We have to go via the banking system. That is why in my press conference I try to give you a very detailed reading of different indicators because it shows how closely we are trying to examine and analyze reality to see whether these impulses that we’ve been transmitting to the economy get translated into better welfare, lower unemployment, better economic activity.
So there you have it folks, no helicopter money, ECB’s policies will mainly be directed at the rescues of the crony banking system.
Thus the consideration of negative deposit rates or of the charging financial institutions for the money they deposited with the central bank which once again will penalize savers.
Today’s derring-do rock star central bankers hardly understands why centralization will mostly fail to accomplish its goals.
As the great Nobel laureate Austrian economist Friedrich von Hayek warned of Fatal Conceit by political authorities. The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. To the naive mind that can conceive of order only as the product of deliberate arrangement, it may seem absurd that in complex conditions order, and adaptation to the unknown, can be achieved more effectively by decentralizing decisions and that a division of authority will actually extend the possibility of overall order. Yet that decentralization actually leads to more information being taken into account.
Doug Noland writes Stock prices surge to record highs, while Credit market risk premiums collapse to multiyear lows. “We’re now well into the fifth year of unprecedented monetary and fiscal stimulus – with, incredibly, no end in sight! Predictably, economic results have been disappointing. Also, and just as predictable, the most outspoken proponents of aggressive “Keynesian” measures are these days claiming the limited success is due to stimulus not being administered in sufficiently powerful doses. This is regrettably consistent with the history of monetary inflations. They corrupt money, minds, markets and economies.”
I comment that Mr. Noland has written for the last five years warning that a “global government finance bubble”, also known now as Global ZIRP, has stimulated a “global leveraged speculating community.” Mr. Noland relates “Mature bubbles require ongoing leveraging and risk-embracement – or else. Dr. Bernanke spent much of his academic career building a thesis that massive monetary inflation would eliminate much of the traditional downside of bursting bubbles. What most today refer to as “deflation” I call the inevitable consequence of inflationary bubbles.”
Mr Noland continues, “As it has been throughout history, monetary inflation was viewed as the readily available expedient. The massive shot of federal debt and Fed liquidity supported home prices, inflated stock and bond prices and incentivized financial leveraging. Importantly, monetary and fiscal policy inflated aggregate household incomes, in the process ensuring a resurgent consumer, inflated corporate cash flows and earnings. In short, resuscitating the Credit Bubble and asset inflation was the least painful path to sustaining the Bubble Economy structure and avoiding protracted economic restructuring.”
“We’re now witnessing some of the downside of resuscitating Credit and asset Bubbles. First, an enormous infrastructure evolved over the past two decades that profited from asset inflation. In my nomenclature, the asset markets enjoy a much more robust “inflationary bias” than maladjusted real economies. As we’ve seen, massive stimulus will generate perhaps a couple percent of U.S. GDP growth while spurring stock and bond prices to all-time record highs.”
“The Fed dug itself a deeper hole this week when it opened up the possibility of actually increasing its $85bn monthly “money” printing.:”
“The Fed and global central banks have made an incredible mess of things. Global asset markets today enjoy robust inflationary biases, while stagnant real economies suffer from deep structural deficiencies and maladjustment. Dismal economic performance and related fragilities provoke hyper-aggressive “activist” monetary measures that now work predominantly to feed financial speculation and inflate asset Bubbles. This has nurtured the Great Divergence – a huge and expanding gulf between inflating asset prices and anesthetized real economies. And, importantly, by stoking the Great Divergence, monetary stimulus today exacerbates global fragilities and instabilities..”
“Dr. Krugman and others argue that the Fed is not doing enough, and point to Europe as evidence of the fallacy of so-called “austerity.” When I look at Europe I see the dire consequences of Credit excess and asset Bubbles on full display. In particular, Spain is locked in depression after housing and mortgage finance Bubbles so badly distorted the Spanish real economy. For too long, easy “money” and buoyant asset markets masked deep structural issues in Greece, Portugal, Spain, Italy, France and throughout the Eurozone.”
“The Fed is now dealing with historic – and, I believe, precarious – securities market Bubbles. And they’re Bubbles that will demand unending QE – or else risk a very problematic Bubble deflation. This is a dysfunctional Bubble that likes good economic news but loves weak data that ensures more monetary inflation for longer. And the greater the Great Divergence – the Greater the Dysfunction – the more the speculator community can leverage and speculate, confident that central banks are trapped by highly speculative markets, weak economies and acute fragilities.”
“the Fed is now dealing with historic – and, I believe, precarious – securities market Bubbles. And they’re Bubbles that will demand unending QE – or else risk a very problematic Bubble deflation. This is a dysfunctional Bubble that likes good economic news but loves weak data that ensures more monetary inflation for longer. And the greater the Great Divergence – the Greater the Dysfunction – the more the speculator community can leverage and speculate, confident that central banks are trapped by highly speculative markets, weak economies and acute fragilities.”
Investors celebrated the ECB’s lowering of its lending rate by buying risk assets and consumer discretionary investments of all types; sectors rising strongly on the day included
COPX 4.0 and PICK 3.0
SLX 3.1
PSCI 2.7
REMX 2.6
CSD 2.5 to a new high
XSD 2.2
PKB 2.1
FXR 1.8
FLM 1.7
WOOD 1.7
RXI 1.6 to a new high
XRT 1.6 to a new high
PPA 1.4 to a new high
PBS 1.4 to a new high
FPX 1.3 to a new high
ITB 1.3 to a new high
IBB 1.2 to a new high
PDP 1.1 to a new high
PDB 1.0 to a new high
FDN 1.0 to a new high
IYC 1.0 to a new high
IXG 1.0 to a new high
DEF 0.9 to a new high
BJK 0.6 to a new high
CARZ 0.3 to a new high
Energy sectors traded higher
XOP 2.7
PSCE 1.9
IEZ 2.4
OIH 2.3
Yield bearing sectors traded higher
AUSE 1.7 to a new high; this as Mise Mish Shedlock reports Australia manufacturing collapses as commodity supercycle stalls. And Business Insider reports AU dollar falls sharply, NZ govt bond yields at 28 year lows.
PSP 0.9 to a new high
DBU 1.0 to a new high
DRW 0.9 to a new high
ROOF 0.1 to a new high
DLN 0.7 to a new high
REM trade strongly lower, falling 2.8%, on the higher US 10 Year Interest Rate
Nation Investment, EFA, 1.3; Small Cap Nation Investment, IFSM, 1.2 with VGK 1.3, the US, VTI 1.1, and Asia, EPP 0.9, all to a new highs.
GREK 2.5
EWG 2.3
EIRL 1.5, to a new high
EWN 1.4
India, INP, 4.3, a new rally high
EPHE 1.9 to a new high
EWA 1.4 to a new high
EWU 1.3 to a new high
EWT 1.8 to a new high
IWM 1.7 to a new high
EWD 1.2 to a new high
EWUS 1.0 to a new high
EWL 0.5 to a new high
TUR 0.1 to a new high
Strong weekly gains were recorded across the board
World Financials, IXG, 2.6, to a new market top
Asset Managers, such as BLK, 2.5, seen in this Finviz Screener, to a new market top
The Too Big To Fail Banks, RWW, 2.5, to a new marke top
European Financials, EUFN, 2.2
Emerging Market Financials, EMFN, 1.1
Far East Market Financials, FEFN, 1.0, to a new market top
Asia, Ecluding Japan, EPP 1.9, a new market top
Philippines, EPHE, 4.6, a new market top
Australia, EWA 2.0 with WBK 4.2, both a new market top
Japan Small Caps, 4.1, a new market top
Japan, EWJ, 2.1, a new market top
Hedged Japan, DXJ, 1.7, a new market top
Indonesia Small Caps, IDXJ, 1.3, a new market top
Indonesia, IDX, 0.3; a new market top
New Zealand, ENZL, 0.1, near its recent market top
US, VTI 1.9; a new market top
Europe, VGK, 2.6, a new market top
The completion of Liberalism was marked by currency carry trade investing. Individual stocks gaining on carry trade investing included the following:
MGAM, ISLE, CHDN, LVS, WYNN, MGM, MCRI, UWN, PNK, CSR, PENN, BYD, MAR, HOT… VTI, Resorts and Casinos
MREL, … EWH, Resorts and Casinos
TWX, FUN, SIX, … VTI, Entertainment
WWE, RGC, IMAX, CNK, … VTI, Recreation
CBS, CMLS, GTN, OUTD, EVC, BLC, STRZA, LGF, NWSA, DWA … VTI, Broadcasting,
AMCX, DTV, DISH, CMCSA, DISCA, SATS, VMED, LBTYA,.VIAB, .. VTI, Cable TV
MAT, HAS, … VTI, Toys and Games
RUK, … EWU, Publishing
XOXO, SSP, WBMD, DNB, … VTI, Publishing
SSP, NCMI, MDCA, … VTI, Media
ACAT, … VTI, Recreational Vehicles
ENPH, CSIQ, SCTY, GPRE, FSLR, WFR, SPWR, AEIS, APFC, PENX, MEOH, CREE … VTI, Clean Energy
WBK, UBS, CS, IBN, HDB, BBDO, IRE, BPOP, CIB, HDB, HBC, LYG, DB, JPM, BAC, C, MFG, MTU, SMFG , NMR, IX, EUFN, RF, FITB, … VT, Banks
BLK, WDR, EV, STT, WETF, AMG, IVZ, … VTI, Asset Managers
IX, … EWJ, Credit Services
V, AXP, DFX, MA, … VTI, Credit Services
CBOE, ICE, … VT, Stock Exchanges
PUK, … EWU, Insurance
ACE, .. EWL, Insurance
OUT, NLS,, POOL, BGFV, … VTI, Small Cap Pure Value
SOHU, BITA, …YAO, Internet Service
YNDX, INXN, … EWN, Internet Service
IIJI, …EWJ, Internet Service
AKAM, MARK, YELP, VCLK, LNKD, SFLY, TZOO, AOL, TRIP, RATE, YHOO, GOOG, TST, OPEN, BCOR, AKSM, HTSM, MOVE, FB, AWAY, PCLN, AMZN, … VTI, Internet Service
PM, MO, RAI, BTI, … VT, Tobacco Stocks
DEO, STZ, BUD, TAP… VT, Vice Stocks,
SNE, … EWJ, Electrical Equipment
KUB, … EWJ, Machinery
NTT, … EWJ, Telecom Services
MKTAY, … EWJ, Industrial Tools
ITW, SNA, … VTI, Industrial Tools
TBI, TMH, CODI, … VTI, Staffing Services
BAK, … EWZ, Chemicals
DD, … VTI, Chemicals
MON, … VT, Agricultural Chemicals
SYT, … EWL, Agricultural Chemicals
PPG, BCPC, GRA, RPM, ECL, IFF, KWR, STAL, .. VTI, Specialty Chemicals
AEPI, CMT, … VTI, Rubber and Plastics
NVS, … EWL, Pharmaceuticals
ABB … EWL, Electric Equipment
CBI, … EWL, Engineering Sevices
VIV, … EWZ, Wireless Communications
PT, … VGK, Wirlesess Communications
SKM, … EWK, Wireless Communications
EEFT, … VGK, Business Services,
ACN, … EIRL, Business Services
WNS, … INP, Business Sevices
PAYX, … VTI, Business Services
STX, … EIRL, Data Storage
ALV, ,,,, EWD, Automobiles
GM, … VTI, Automobiles
DLPH, … EWU, Automobiles
REY, … INP, Drug Manufacturing
CREE, PLAB, AMAT, AFOP, CYMI, … VTI, Semiconductors
ASML, … EWN, Semiconductros
TSM, HIMX, SPIL, … EWT, Semiconductors
ARMH, …EWU, Semiconductors
SSW, … EWH, Shipping
DAC, TOPS, SB, GLBS, CPLP, NNA, NM, NMM, CMRE, SSW, GSL, … GREK, Shipping
FL, DECK, WWW .. VTI, NKE, Textiles Clothing
APP, JOEZ, FNP, HBI, OXM, UNF, CRUS, RL, GII, VGC, GIL, … VTI, Textiles Apparel
DXYN, UFI, AIN, MHK, … VTI, Textiles Industrial
PIR, FBHS, LOW, HD, LL, SHW, … VTI, Home Furnishing Stores,
PETM, … VTI, Petcare Stores
LUX, … EWI, Apparel Stores
GPS, JWN, LTD, GAP, BKE, COH, SSI, LTD, ROST, … VTI, Apparel Stores
COST, M, TGT, … VTI, Department Stores
MNRO, STMP, CSS, FLWS, XOXO … VTI, Specialty Retail
WHR, … VTI, Appliances
HTZ, CAR, UHAL, URI, … VTI, Rental and Leasing
IPAR, EL, … VTI, Personal Products
RCL, … VTI, Cruise Ships
RLOC, OMC, LAMR, VCLK, NCMI, MDCA… VTI, Advertising Agencies
FMCN, … YAO, Advertising Agencies
RUTH, DNKN, SBUX, PNRA, IRG, FRGI, RRGR, JACK, DPZ, EAT, SONC, DAVE, WEN, BWLD, CMGE, THI, DENN, NATH, PZZA, … VTI, Restaurants,
PKG, SWM, RKT, SON, CCK, … VTI, Containers
XRM, GLT, KS, … VTI, Paper
IIIN, WOR, NWPX, … VTI, Metal Manufacturing
AAON, PGTI, AOS, TREX, MLM, WSO, USCR, BECN, HW, MAS, … VTI, Building Matrerials
LBY, NWL, JAH, … VTI, Housewares
The very end of the completion of Liberalism was also marked by a pursuit of yield. Miller’s Money writes Reaching for yield. Investors have hotly chased yield bearing credit such a Ultra High Yield Credit Investments, UJB, and Junk Bonds, JNK. as well as yield bearing equity investments, such as the ones listed below, as Global ZIRP, drove Interst Rates lower globally, and investment value of yield bearing investments higher; these included the following
Australia Dividends, AUSE. 1.9
Small Cap Real Estate, ROOF 1.4
Global Real Estate, Excluding the US, DRW 2.3
Mortgage REITS, REM such as ACAS, and IVR, traded lower, on the higher 10 Year US Interest Rate
Global Utilities, DBU, 2.7 such as HNP, … YAO, and ELP, CIG, CPL, … EWZ,
Telecom Services, IST, 1.5
Leveraged Buyouts, PSP 1.8
Energy Partnerships, AMJ, 1.7
Shipping, SEA, 1.4
Dividends Excluding Financials, DTN, 1.3
Pharmaceuticals, XPH 0.2 and PJP, 0.5
Utiliies, XLU, traded 0.2 lower.
The chart of the S&P 500, $SPX, SPY, shows a trade 1.1% higher to a new high to close at $1,615; and SPHB, shows a trade 2.4% higher, near its recent high.
The style gainer of the day was Small Cap Pure Value, RZV, up 2.8; Small Cap Pure Gorwth, RZG, 2.5
Commodities, DBC, rose 1.2%, Oil, USO, 1.6%, Base Metals, DBB, 4.3%.
Doug Noland reports weekly, the wealth of the sovereigns, that is the wealth of the world central banks: , Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $637bn y-o-y, or 6.1%, to $11.093 TN. Over two years, reserves were $1.315 TN higher, for 13% growth. And he also reports weekly the discretionary wealth of the people: M2 (narrow) “money” supply dropped $49.6bn to $10.501 TN. “Narrow money” expanded 6.8% ($667bn) over the past year.
Major World Currencies, DBV, traded higher; Emerging Market Currencies, CEW, traded to a new high. The Euro, FXE, traded higher, after yesterday’s strong trade lower, to close at 129.96.The US Dollar, $USD, UUP, 0.1%; traded lower to strong support at 82.15 The chart of the US Dollar, $USD, UUP for the week closed down 0.5% at 82.15.
The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened strongly, as is seen in the chart of the Steepner, ETF, STPP, steepening 2.4%. The Interest Rate on the US Ten Year Note, ^TNX, blasted higher to close at 1.75%. Aggregate Credit, AGG, fell strongly loweer, trading 0.40% lower; Junk bond, JNK, traded 0.04 higher, to a new high.
Mike Mish Shedlock writes Shock and Awe: ECB Prepared to “Cope With Consequences of Negative Deposit Rates”; Dancing in the Dark Experiment
As expected the ECB, cut its lending rate 25 basis points to 0.50%. Yesterday, I suggested the ECB may try a “shock and awe” move. They did, just not the move anyone expected.
Instead, Mario Draghi said the ECB was Prepared to “Cope With Consequences of Negative Deposit Rates”.
Shock and awe.
Bloomberg reports Euro Falls as Draghi Open to Negative Rates; Dollar Strengthens
The euro fell for the first time in five days against the dollar after European Central Bank President Mario Draghi said policy makers may take the unprecedented step of charging banks to hold excess reserves.
“The euro was quite upbeat until Draghi made his comment that the ECB would be able to cope with any consequences of negative deposit rates,” said Daragh Maher, a currency strategist at HSBC Holdings Plc in London. “Previously, the language of the ECB on this front has characterized it as uncharted waters. Today, it seems the ECB is more open to the idea. The euro was clearly spooked by the mere concept of negative deposit rates in the euro zone.”
For an analysis of what this means, with a tip of the hat to Steen Jakobsen at Saxo Bank for the link, let’s flashback to a decision to cut the deposit rate to zero in July of 2012.
Dancing in the dark experiment
The Financial Times says ECB Dances in the Dark. It’s clear the ECB has gone into experimental mode.
A positive deposit rate was the last thing anchoring money market rates to zero — or vague profitability. This is because banks could arbitrage the difference between the rates they received at the ECB and the rates money market funds were able to invest at.
By cutting the deposit rate, the ECB is killing this arbitrage. There will not be any profit associated with taking money from non-banks and parking it at the ECB for a small profit. Non-banks won’t even be able to get zero.
This will leave real-rates exposed to further deterioration. The ECB, of course, is hoping that non-banks will choose to channel that money into risky assets instead.
Death of banking.
FT Alphaville makes the case Negative rates as a precursor to the death of banking. What we believe is that rather than stimulating the lending market — and the economy along with it — such a rate policy could have a disastrous impact on collateral markets and money market funds, not to mention the net interest income of lending institutions. All of which could unleash a protracted deflationary spiral.
The move could also presage the death of banks and lending institutions completely.
FT Alphaville cites Morgan Stanley Research as follows: Our rates team expects short end German yields to follow financing rates into negative territory and some investors to extend along duration and credit curves to achieve positive yields to maturity.
But we do not think negative ECB deposit rates would drive any increase in cross-border interbank lending. Rather, we see a risk of greater Balkanisation of European banking markets from funding pressures.
Today, a fall in rates would hit NII and reduce banks confidence in their earnings build and capital plan – making them wish to delever more not less, although time should heal. Market liquidity is likely to fall; Bank and insurers earnings under further pressure.
In Japan, JGB trading volumes fell by 2/3 over the coming 12 years as ZIRP was adopted, particularly at the short end – one reason why the Japan Central Bank does not want front end rates to be negative. Negative rates would likely be a negative for earnings and could thus impact solvency of banks and insurers.
The greatest risk our rates colleagues see would be for negative rates 2-3 years down the curve, in which case banks would need to re-price credit further.
Morgan Stanley European Insurance analyst Jon Hocking writes: “Earnings and solvency margins for European insurers are already under severe pressure from very low long-term bond yields.”
Deposit rate of zero did not work
It’s clear that cutting the deposit rate to zero did not work. So why will cutting them to less than zero work? A negative deposit rate will not stimulate lending because it does not fix any structural problems, it does not fix any liquidity issues, and it makes solvency problems worse by turning guaranteed arbitrage gains into guaranteed losses on excess reserves.
The destruction of Credit, has commenced as the Steepner ETF, STPP, steepned 2.0% for the week, evidencing a rising of credit risk, seen in the 10 30 US Sovereing Debt Yield Curve, $TNX:$TYX steepening, and can be followed by the trade lower in credit investments seen in this Finviz Screener, and can be followed by the trade lower in yield bearing equity investments in this Finviz Screener.
The Interest Rate on the US Ten Year Note, ^TNX traded higher to 1.75, turning the 10 Year US Government Bonds, TLT, 2.0% lower, with Government Bonds, GOVT, trading 0.3% lower.
The ratio of World Stock, VT, relative to Commodites, DBC, VT:DBC, shows a rise higher to an unprecedented high, reflecting the inflation of stock value that has come about as a result of the world central banks’ policies of monetary expansion and credit liquidity. While investors have deleverged out of Commodities, DBC, on fears of diminishing global growth and profitable corporation returns, Global ZIRP, established through monetary expansion of the US Fed, the ECB, and the Bank of Japan, has stimulated invetment in an unprecdented way, to the point of producing “warped money”, that is money which is so torqued and distorted, that it is unreliable nd untrustworthy for providing capability for economic activity. Money, under pressure, from the world central banks, finally is starting to come back into alignment with underlying economic reality, specifically a reality that underlying Eurozone economic conditions are faltering badly as Andre Damon and Stefan Steinber of WSWS report Euro zone unemployment hits record high for 23rd consecutive month. Unemployment in the euro zone hit another record in March, with no end in sight to the economic and social catastrophe gripping Europe.
The twin levers of producing wealth under Liberalism, these being first, the securitization and financialization of both junk bonds, JNK, and credit, AGG, and second, currency carry trade investing, in particular a strong Euro Yen Currency Carry Trade, EUR/JPY, FXE:FXY, have moved wealth under Liberalism to the extreme. The excesses of Liberalism have come of age, producing Peak Liberalism.
Liberalisms’s initiatives of LB Johnson’s Great Society, Milton Friedman’s Free To Choose Economics, and Ted Kennedy’s Immigration Initiatives, which have been based upon ever increasing moral hazard and ethical risk, have in excess, devloped Liberalism’s Bubble Economy to the max. The global Credit Bubble, that is Trust Bubble, has swelled, and with that Wealth, VT, has risen to a new al time high. Peak Wealth has arrived.
The wealth that the world central banks has created is most definitely a warped wealth, that is a wealth that is distorted from anything genuine or reliable, and which reflects
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consumer spending, that has come via disposable money, that is M2 Money, IYC, FDN, KXI, XRT, ITB, IHF, DEF, RXI
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risk asset investment RZV, IBB, PBD, BJK, FPX, PBS, PJP, IXG, PIE, ITB
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pursuit of yield, PSP, UJB, KBWY, ROOF, DRW, IFGL, as well as DBU, XLU, REM, AUSE, IST, SEA, BRAF, FNIO, REZ, PGF, KBWD, IYR,
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global growth and trade, CARZ, WOOD, TAO, FXR, IGN, IGV, PPA, XLI, XSD, XTN,
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nation investment that is not based upon the inherent capabilities of a nation such as natural resources, but rather, monetary policies of the world central banks producing Global ZIRP Nation investment in ARGT, EUFN, EIRL, EPHE, ENZL, EWA, EWJ, JSC, DXJ, IWM, IDXJ, THD, is totally distorted.
Furthermore, the monetary polices of the Fed, the ECB and the BoJ, have turned the very definition of wealth on its head, by making liability, that is debt, wealth. Thus wealth has become an oxymoron, a form of doublthink. The rise in global financials, IXG, on Globl ZIRP stimulus, represents financial alchemy, and thus Ben Bernanke, Mario Draghi, Hiroki Kuroda, are finacial alchemists who have made global financials, IXG, golden apples which will soon be apples of discord.
The current level of equity investments, VT, and credit investments, AGG, at today’s levels constitutes surreal wealth.
I wonder if Milton Friedman in proposing the Free To Choose Floating Currency Regime, could have wondered that debt and currencies would or could bubble up nation investment, EFA, and Small Cap Nation Investment, IFSM, to such gargantian levels, where wealth has become so torqued by the world central banks’ monetary policies, that is not only groestque, but is untrustworthy and unreliable, having no real value. Today’s wealth, VT, is so distorted that it cannot be and will not be maintained.
Credit liquidity has made equity investing, VT, and nation investment, EFA, and small cap nation investment, truly speculative, far more speculative than that which existed before the 1929 to 1932 collapse, and it is stunning to thingk that this wealth has come through ever strongly increasing moral hazard.
Just as there has been a flood of world central bank liquidity, theres is a flood of people, obtaining Social Security Disability, SSD, housing assistance, whether it be in public housing or with section 8 vouchers, as well as food stamps, all on an ever increasing demand for social justice. This tidal swell of receipients of SSD, is one which is supported by the Social Security Trust Fund, that is IOUs issued by the US Federal Government. I have to ask what about ethical justice, where one should be accountable for providing for one’s self even though one has a mental or physical disability; would it not make life more real, that is mor genuine for everyone. Social justice has trumped the opportunity for those with wealth to practice ethical giving. Just as wealth has expanded to become a warped thing, so social justice has become a fraudalent thing, where vast numbers of people who could be working, or could be relying on private charity, are not doing so, and thus avoiding a way where there would be appropriate controls and reviews with accountability for sane and responsible living.
I reside in the downtown area, in a SRO apartment, and I see and heard daily the libertine experience, as well as the psychopathic experience of those living on SSD, and assure you that the general rule is that once one receives SSD, virtue and ethics are quickly washed away by the desire for for both carnal and iniquity living, where men act out mean and crazy, as well as confrontational or preeminently, and women persue gossip and busy body opportunities. Under liberalism, promotion of social justice has produced a living experience which is far distant from virtuous and ethial living and reponsible living.
Jusus Christ has produced Liberalism’s Peak Soveriegnty, Peak Seigniorage, and Peak Prosperity,and He has also produced Peak Dependency and Clientelism.
The world is achieving Peak Sovereignty, Peak Seginrioage, and Peak Prosperity, has attaining Peak Wealth, VT, Peak Credit, AGG, JNK, Peak Nation Investment, EFA Peak Currencies, DBV, CEW, Peak Global Industrial Production, FXR, on Global ZIRP.
In juxtaposition, the failure of the world central banks’ monetary authority to stimulate global growth and trade, corporate profitability, as well as to prevent sovereign default in the Eurozone, looms large.
5) … In dispenstion, Jesus Christ is terminating Liberalism and introducing Authoritarianism.
The Apostle Paul communicates a number of important truths in his letter to the Ephesians, primary amongst these is the idea in Ephesians 3:10, that God has given administrative oversight of all things political and economic to His Son Jesus Christ, who operates in these for the fullfillment of every age, epoch, time period, and era, assuring its completion much like in the way a ship’s catptain assures the completion of the manifest before setting sail on a voyage. This administrative oversight is termed dispensation.
In dispensation, Jesus Christ is winding down Liberalism which was the paradigm that supported crony capitalism, European socialism, and Greek socialism, terminating the age of fiat asset inflation in two very big ways, first via the dismissal of 15,000 Greek state workers, and secondly via topping out World Stocks, VT, Credit, AGG, Curenices, DBV, CEW, and Commodities, DBC, on May 3, 2013.
Insolvent sovereigns, and their insolvent banks cannot provide governance or seigniorage, that is moneyness. The age of fiat asset deflation is coming out of the PIGS nation state sovereign and banking system crisis, where regionalism with its statist regional economic and political governance is already enforcing debt service, and austerity.
Having completed Liberaism’s properity on May 3 2013, Jesus Christ is putting Liberalism’s thought leaders out to pasture, as they successfully completed the full expansion of wealth, that is money, VT, credit, AGG, and currencies, DBV, CEW. Through ever increasing moral hazard, these labored in Liberalism’s schemes, to provide the very zenith of credit based prosperity; these schemes included:
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the creation of the Creature from Jeckyl Island, that is the US Federal Reserve,
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the creation of the nation state of Israel,
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the creation of the Euro as a currency union,
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the repeal of the Glass Steagall Act,
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the development and widspread use of LBOs as an investment vehicle,
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ever increasing clientelism through immigration and through social security disability,
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financial system recovery through Quantitative Easing which has produced a non-productive entertainment, recreational and financial services based economy,
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financialization of US Treasury Bonds via POMO as a means not only of providing fiscal resources for the US, but also as a means of distributing credit liquidity,
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securitization of mortgage backed bonds, MBB, through Mortgage REITS, REM, such as AGNC, whose investment value has soared as investors have pursued yield under Global ZIRP,
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liberalization of global trade through Free Trade Agreements.
Liberalism’s though leaders have included
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LB Johnson, father, that is starter, of Clientelism and Federal Government Dependency,
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Milton Friedman, father of the Free To Choose Floating Currency and Banker Regime,
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Robert Rubin,
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Alan Greenspan, father of Credit Liquidity,
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Ben Bernanke, father of Quantitative Easing,
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Ted Kennedy, father of US Immigration,
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Shinzo Abe and Hiroki Kuroda, the fathers of Kuroda Abenomics,
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Paul Krugman, Liberalism’s chief apologist,
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The fathers of the Creature from Jekyll Island; 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.,
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Phil Gramm, father of the repeal of the Glass Steagall Act which provided for deregulation of the financial services industry.
Now, much like John the Baptist, served as the herald for the coming of Christ, Joschka Fischer, is turuning the peoples’ ears to the call of Authoritarianism’s thought leaders; these include,
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Olli Rehn
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Jeroen Dijsselbloem,
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Michel Barnierm, The Business Recorder reports EU’s Barnier urges France to economic reforms. European Union Internal Market Commissioner Michel Barnier, the EU’s top financial regulator, called on the French government to pursue its planned reforms despite the Commission allowing two more years to meet its budget deficit target. Olli Rehn, the European monetary affairs commissioner, said on Friday France badly needed to unlock its growth potential and create jobs, adding Spain, Italy and the Netherlands as well as France – four of the euro zone’s five largest economies – would remain in recession this year. “It’s a moment of truth for the government which needs to have the political courage to carry out those reforms which will sometimes not be understood, and require effort,” he told French radio Europe 1 in an interview.
Through three Greek Bailouts and the Cypurs Bank Deposit Bailin, these nannycrats have replaced sovereign nation states as the Eurozone’s sovereign ruling authority. Their word, will and way, caries the power of law, trumping constitutional law, and even natural law held dear by Libertarians. The traditional concept of the rule of law does not apply under Authoritarianism. The rule of law, has gone down the memory hole.
Authoritarianism’s thought leaders are developing Authoritarianism’s schemes of diktat which include
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New taxes,
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Bank deposit bailins,
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Capital controls,
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Labrinthian austerity measures.
all of which are designed to develop a statist panopticon for regional security, stability and sustainability.
All people have values. Values are defined as the foundation, building blocks and framework for one’s life; they define one as bing elect having values and ethics, or fiat having carnality and iniquity; these are grouped into seven categories, as people have
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committment to work and experience its rewards or are involved in clientelism and dependency
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activities
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affiliations
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asssociations
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mode of traansportation, a Lexus, or the bus, or a bicycle, or walking
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plans
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public way or a private way
6) … Ones values will determine if one lives in virtue and ethics or if one lives in carnality and iniquity.
Virtue manifests as praiseworth speech and behavios. Ethics is the practice of a peaceful, honest and transparent way with others; these desire liberty and promote freedom and a prosperity that does not come from moral hazard, but rather a prosperity that comes from meritorous use of personal property, insight or skill.
Carnality is the manifestation of antipathy, sensual indulgence, or abuse of another, as there be those have no desire for heartfelt spiritual experience in a higher way; such be libertine.
Iniquity is the practice of preminence or intrusiveness or confronation with others; as there be those whose life’s satisfaction comes from being a busybody or interventionist in the lives of others. Remember it was Diotrephes, who loves to have the preeminence, as John relates in 3 John 1:9.
The Apostle Paul was stone, beaten, and kicked out of many towns for continually preaching that either one be elect, that is the chosen of God, or one be fiat, having mandate out of philosophy, religion, or regional governance.
The elect be those having the like precious faith of Jesus Christ, trust in the promises of God, experience the divine nature, practice the seven additives of faith, and in so doing make their calling and election sure, lessen the chance of stumbling, and have broad entrance into the kingdom of God.
The fiat be those who have no faith in God, at least no faith in Christ, experience power from their convicions, and develop honor in their philosophy or their religion or develop standing in regional governance.
The elect, rely on sound, that is reasoned, New Testament doctrine. practice God’s will, adore God’s authority, and have experience in the person of Jesus Christ.
The fiat, rely on idelogy, practice will worship, that is the worship of one’s own will, venerate worldly authority or natural law, and have experience out of the beliefs of philosphy, the tenenets of religion, the delights of human nature, or the rule of diktat.
The elect have had some sort of transcendental experience that takes them out of normal experience and translates them into grace and truth. Usually it is the Morpheus Proposal, whereby God, presents the Red Pill or the Blue Pill for ones life’s direction. It was the Aposle John, who had the good fortune like all of the twelve apostle of being called of God, and it was Peter, James, and John, who were the Lord’s three most intimate and it is from these we have revelation as to what constitutes, resourceful living as well as the present truth, which contrasts with the past truth which is that of the nation of Israel, the law and the prophets.
The life outcome for the elect and the fiat ar entirely different; they are polar opposites
The elect enjoy heartfelt spritual satisfaction and joy in intellectual knowldeg of God, and have the objective of making their calling and election sure, that is a genuine thing, avoid stumbling, having a broad entrance into the kingdom of God, and becoming the child of God.
The fiat are established, that is bult up in the belief system of their philosophy or religion, and become its object; for example, those who practice Libertarianism become Libertarians, those who practice Muslimism become Islamists, those who practice Rooman Catholicism become Roman Catholics, those who practice Libertarianism become libertine, and those who practice psychopathy become psychopaths.
Values are comprised of
1) … The experience of discipline of work or the experience of dependency and clientelism
2) … One activities
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Volunteer somewhere
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Participate in study groups
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Have a music or audio time where one listens to music or audio presentations
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Has a quiet time for reading and reflection, planning and role playing
3) .. One’s party and club affiliation
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Attends political party meetings
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Goes to charity meetings, or attends a religious, or civic or social club
4) … Experiences with one’s associates, that is people who one spends time with or experienses that one has with friends.
5) … One’s mode of transportation, ie whether one drives a Lexus, or uses a skateboard
6) … Ones’ plans
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Health Plan
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Fitness Plan
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Budget Plan
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Vacation Plan
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Education Plan
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Reading or Audio Plan
7) … One’s public way and one’s private way. For example, Tiger Woods, when not out attending Gentlemens Clubs, has a very private way.
Those located in the person of Christ, have a very private way, communicate this to others, and live a life of biblical seperation; which goes a long ways, so as to speak, to avoiding conflict as well as to resolving conflict; whereas the psychopaths continually interject themselves into the lives of others, or are busybodies, are looking for gossipy opportunities, or go about being preminent, mean and crazy or confrontational; they are unreasonable, have no conscience, it got burned away by trespassing the rubicon of morality long ago, serve only for themselves, live for today, and have no remorse ever.
Those located in Christ are well advised by the admonition of the Oracle in the movie the Matrix who said, “Know thyself”, yes “balls to bone know thyself”, she said. Those located in Christ should consider developing and using a psychopaathic radar on a daily basis, where one knows and looks for the characteristic speech and behavior of psychopaths. Thus one marks and avoids those who walk disorderly; and in fact actively turns away from any contact or approach by psychopaths. God has established a “no contact order” for Christians; they are to have no contact with psychopaths at any time and for any reason.
Liberalism was the era of investment choice as well as an era of values clarification, where one was free to choose, and 1) be reserved, 2) be libertine, or 3) be psychopathic. Those who valued freedom, were reserved; those who valued licentiousness were libertine, and those who valued ruling over others were psychopathic; it was a free for all, in every way. Profits were privatized and losses were socialized. Society became so great as to grant social security disability to whoever complained of any mental illness or practically any physical illness. The Federal Department of Health and Human Services, DSHS, set up a free land, where many came to live free, doing as they pleased on social security disability payments of $700 a month, food stamps of $200 a month, and Public Housing or Section 8 Housing valued at $800 a month, as well as welfare benefits or foster care benefits for their offspring; that’s a total of $1,700 a month simply by going to see a shrink and getting a disability letter to live a life of clientelism and dependency, without any checkup ever to see if one is abusing one’s neighbor or living drunk.
Many who appear nice, or who appear to be a ladies man, or come across as being whitty, charming or beautiful, are often wolves in sheeps clothing, waiting to emotionally, physically, sexually or financially, use another to satisfy their ego and need to be preminent or rude, crude or manipulative or mischievious. Such have lost all consicence, or better said burned their conscience, to the point where it no longer exists. These have knowingly crossed the rubicon of morality, and pursued iniquity, simpy because it is carnally satisfying; such are continually eating of the tree of knowldege of good and evil, tasting different fruits, even consuming rotten things, simply for the pleasure of doing so. They are kick ass people, that is, those take names and kick ass; and they continually want others to kiss their ass as well. They have preemince, and seek the rule as social lords in their territory which could be the immediate area around themselves or their neighborhood, or simply the situation they are in, such as a meeting. One non profit organization I worked for, required that I and others sign a loyalty oath to the executive; now I now know why he required this; he didn’t want someone coming along and challenging his authority; he had a mision to do, and didn’t want any interference whatsoever. All of this contrasts with the elect who eat of the tree of the life, that is Jesus, and eperience his spiritual wisdom and grow in knowledge of Him.
Liberalism was facilitated by
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the establishment of the nation of Israel
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the telling of the tale of The Cat In The Hat
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the development and increase of the income tax
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widespread use of public education rather than private education and home schooling
Liberalism was powered by fiat asset inflation, and featured the mystery of knowledge, and rewarded working, wise choice of investing, as well as for many, living in dependency and in clientelism.
Authoritarianism is powered by fiat asset deflation, features the mystery of iniquity, and commands compliance to regional governance, totalitarian collectivism, debt servitude and austerity for all.
The interventionist and monetary inflation policies of the world central banks, have torqued the money supply so much that wealth, that is money, VT, has become warped; in fact warped so badly that new money, must be used, and is being used, and will increasingly be used in its place. This new money, is called diktat money.
Diktat money was born out of the Cyprus Bank Deposit Bailin and issued in Authoritarianism; 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.
An inquiring mind asks, where does virtue come from. William J. Bennet writing in the Book of Virtue, p 262 to 265, in Men without Chests, communicates that the objective of education is to produce “just sentiments” in a child’s nature, so that at an ealy age, he feels after things which are noble, so that when the age of reason comes, he will percieve virtue as beautiful and receive her into his heart and mind, and welcome and embrace virtue, having already an affinity for her.
The Diktat Money System Journal 
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