Archive for August, 2013

All Forms Of Fiat Money Die On The Rise Of The Interest Rate On The US Ten Year Note … Liberalism’s Sovereignty of Democratic Nation States And Its Seigniorage of Credit And Currency Carry Trades Is Failing … Authoritarianism’s Sovereignty of Regionalism And The Seigniorage Of Ditkat Is Rising To Rule The World

August 19, 2013

Financial Market Report for the week ending August 17, 2013

 

1) … In this week’s financial market trading

 

On Monday, August 12, 2013, The Interest Rate on the US Ten Year Note, ^TNX, rose to 2.61%, causing Aggregate Credit, AGG, to trade lower.

 

Energy Partnerships, AMJ, seen in this Finviz Screener traded lower 1.0% lower. Tesla, TSLA, led the Automobile sector, CARZ, lower.

 

Silver Miners, SSRI, 10.2%, SILJ, 7.6%, SIL, 6.2%, as Silver, SLV, rose 4.4%  Gold Miners, GDXJ, 8.7%, GDX, 5.7%, as Gold, GLD, rose 1.8%.  China Financials, CHIX, rose, taking China, YAO, higher.

 

The US Dollar, USD, rose 0.4% from the edge of a head and shoulders pattern. I expect the US Dollar, $USD, to rise to about 84, before it once again falls through its broadening top chart pattern, seen in Corey Rosenbloom article August trendlines for the US Dollar Index.  It’s as Street Authority relates, when you see a broadening top, the market will eventually drop.  A higher dollar is not conducive with rising stocks, I believe that the seven week long rally in Nation Investment, EFA, Small Cap Nation Investment, IFSM, World Stocks, VT, and Global Producers, FXR, is over. With a stronger US Dollar, look for the Japanese Yen, FXY, to now trade lower; and look for significant deleveraging out of stocks once the EUR/JPY starts to trade lower.

 

Bloomberg reports Indian Banks to drop on record yield inversion. India’s banking stocks may extend their 26% plunge since mid-May as short-term bond yields exceed long-term rates for the longest period since 2008. The inversion of the bond gauge since May 22 is also the steepest since 2001, when Bloomberg began compiling the data. If the pattern from five years ago repeats, the share index will extend its retreat from the 2013 peak even after the yield curve’s inversion ends.

 

Daily Ticker repoerts Cheap corn means fat wallets for consumers A 40% decrease in in corn prices is hurting farmers who saw their incomes surge to their highest levels since the 1970s.

 

Robert Wenzel of Economic Policy Journal asks If  Friedman is nothing but a Keynesian, why should he be relevant, since Keynes had already advanced that same bad economic theory, decades earlier?

 

I relate that the totality of evidence supports the concept that Friedman was a Keynesian. Milton Friedman was the very linchpin in the Economy of God. Seth Godin communicates that A linchpin is defined as one who invents, leads (regardless of title), connects others, make things happens, and create order out of chaos. They figure out what to do when there’s no rule book.

 

To answer Mr. Wenzel’s question “why should he be relevant, since Keynes had already advanced that same bad economic theory, decades earlier?”  I answer that God was looking for one man, and developed that one man, Milton Friedman, to bring forth the most destructive economic and morally corrupt economic theories that could be developed.

 

Milton Friedman build on John Maynard Keynes concepts to become God’s point man, that is God’s appointed one from eternity past, to bring forth the Free to Choose, floating currency Banker Regime of democratic nation states, for which he received the Nobel Peace Prize.

 

This economic genius encouraged President Nixon to go off the gold standard, and through inflationism create the US Dollar Hegemonic Empire that now rules the world.

 

Milton Friedman’s contribution to liberalism was that bankers, corporations, government, entrepreneurs, and citizens of democracies became the legislators of economic value and the legislators of economic life.

 

Furthermore, Milton Friedman was the Father of liberalism’s policy of investment choice, as well as the Father of its schemes of currency carry trade investing and debt trade investing.

 

Without Milton Friedman, and the Speculative Leveraged Investment Community, consisting of Investment Bankers, KCE, such as JPMorgan, JPM, the Stock Brokers, such as Etrade, ETFC, and Asset Managers, such as Blackrock, BLK, and WisdomTree, WETF, investors could never have profited from Nation Investment, EFA, and Small Cap Nation Investment, IFSM, such the US VTI, IWM, its banks, BAC, and RF, Ireland, EIRL, and its bank IRE, or the UK, EWU,  EWUS, and its banks,  LYG, and RBS, Global Producer Investment, FXR, such as International Paper, IP, Small Cap Pure Value Investing, RZV, such as Pacific Sunware, PSUN, and Investing in Vice Stocks, with Fidelity Investments, VICEX, mutual fund.

 

May God be praised, for it has been Jesus Christ acting in the Economy of God, Ephesians 1:10, developing the most moral hazard based and the most monetary inflationary based economic theories, to build Crony Capitalism, European Socialism, and Greek Socialism, to blow the greatest false, degenerate, and oppressive, prosperity bubble possible, termed the Global Government Finance Bubble by Doug Noland.  

 

Jesus Christ acting in dispensation, which is in the household administration plan of economics and politics, Ephesians 1:10, fulfilled and completed Liberalism by manifesting Peak Nation Investment, EFA, and Peak Small Cap Nation Investment, IFSM, August 9, 2013.  Yahoo Finance chart shows that the nation of Ireland, EIRL, has been a Liberalism investment superstar, this is seen in its Finviz Chart, which shows that it provided a 57% return over the last year.

 

Please consider reading the Dispensation Economics Manifest for more details on the Economy of God, and the ideas of a Dispensationalist, on Dispensationalism.

 

Another Austrian Economist, Mike Mish Shedlock writes  “Hope is an illusion provided by economists who think Greece should stay committed to the Euro”.  

 

I reply, I’m a dispensationalist economist, which is one who studies, analyses, and presents the Economy of God, presented in Ephesians 1:10, that is the household operation of all things, spiritual, monetary, political, ethical, and virtuous by Jesus Christ. His dispensation, that is stewardship, assures the fulfillment of all things, completing every age.  

 

Greek socialism is one of the most anticompetitive forms of economics ever developed, and it has been well known for decades that its oligarchs have abandoned the country, that its people simply do not pay taxes, and when forced to do so, they appeal and get their assessments reduced to thirty percent of the amount owing, and that it is a stunning example of clientelism, which the Economist Magazine describes as pork and patronage.  Only disaster can come out of such a state of affairs.

 

In 95 AD, angels gave the Apostle John a dream, while he was living in exile on the Isle of Patmos, entitled the Revelation of Jesus Christ, which serves as the basis for the reality that the sovereign and banking insolvency of Greece, and the other Mediterranean Sea nations, will the beachead for the rise of Authoritarianism’s Beast regime of regional governance and totalitarian collectivism, to replace Liberalism’s Banker regime of Free To Choose floating currency nation state, global producer and financialized product investment, Revelation 13:1-4  

 

Wikipedia relates that this scroll, with seven seals, is presented and it is declared that the Lion of the tribe of Judah, from the “Root of David,” is the only one worthy to open this scroll, Revelation 5:1-5.

When the “Lamb having seven horns and seven eyes” took the scroll, the creatures of heaven fell down before the Lamb to give him praise, joined by myriads of angels and the creatures of the earth, Revelation 5:6-14. Seven Seals are opened, and in the First Seal, A white horse appears, whose crowned rider has a bow with which to conquer, Revelation 6:1-2.

 

With the Greek Bailout I in May 2013, the First Horseman of the Apocalypse passed the baton of sovereignty from Greece to the Troika, and from that date Greece will forever more stay committed to the Euro. As it is now, Greece is no longer a sovereign nation state and receives seigniorage aid for its fiscal spending from the Troika. Its former citizens are now residents of a region of economic governance.

 

On Tuesday, August 13, 2013, Despite a rising US Dollar, $USD, UUP, it was on a rising Euro Yen Currency trade, the EUR/JPY, to close at 130.20, (the Euro, FXE, traded lower, and the Yen, FXY, even more strongly lower), that the UK, EWU, UK Small Caps, EWUS, Italy, EWI, Ireland, EIRL, The Eurozone, EZU, and Argentina, ARGT, rose strongly, rallying Small Cap Nation Investment, IFSM, and Nation Investment, EFA, to new highs.  

 

The rally in the Eurozone ADRs, seen in this Finviz Screener, such as ALU, ICLR, TRNX, TOT, BUD, SI, and TS, gave seigniorage to Eurozone debt, as Zero Hedge reports Europe’s riskiest bonds rally most in 3 weeks to 2 year low spreads.

 

The National Bank of Greece, NBG, led Greece, GREK, lower; while Argentina Banks, BMA, GGAL, BFR, BBVA, rallied Argentina strongly higher.

 

South Korea Bank, SHG, WF, and KB, rose, taking South Korea, EWY, to a new rally high.

 

China Financials, CHIX, China Real Estate, TAO, China Industrials, CHII, and China Small Caps, ECNS, rose parabolically, taking China, YAO, vertically higher. The China Real Estate, TAO, to US Real Estate, IYR, difference seen in their combined ongoing Yahoo Finance Chart is quite stunning, as since July 1, 2013, China Real Estate has been rallying.   

 

Automobile Dealerships, PAG, SAH, ABG, KAR, AN, KMX, LAD, seen in this Finviz Screener traded to new rally highs, as did Ireland’s Cement Manufacturer, JHX, and US Drug Store, RAD.

 

Sectors trading higher included Networking, IGN, Energy Service, OIH and IEZ, on higher Oil, USO, Design Build, FLM, Gaming, BJK, and Telecom, IST.

 

Industrial, XLI, rose; but Transportation, XTN, traded lower as Regional Airlines, RJET, JBLU, ALK, ALGT, LUV, SKYW, seen in this Finviz Screener traded lower, as Zero Hedge reports Airline stocks monkey hammered on news DOJ seeks to block American-US Airways merger. Of the Great Nine ETFs, Transportation Stocks, XTN, have been the best performers over the last year; but since August 1, 2013, they have been leading the way lower, as is seen in their combined ongoing Yahoo Finance Chart.  

 

Brazil’s Bank, BSBR, BBDO, and BBD, led Brazil, EWZ, and Brazil Small Caps, EWZS, traded lower.

 

Reuters reports Zombie Banks in India. India’s banks,( IBN and HDB, seen in their combined ongoing Yahoo Finace Chart, having fallen 30% since the rise of the Interest Rate on the US Ten Year Note, ^TNX, on May 21, 2013), are starring into an abyss. Loans are soaring rapidly as the economy stalls. Meanwhile, rising bond yields are making it harder for lenders to absorb credit losses from current earnings

 

Steel, SLX, and the Metal Manufacturing Stocks, XME, have been rallying of late; they manifested bearish engulfing today, suggesting a turn lower; these include STLD, RS, NUE, CRS, GTLS, WOR, SXC, MLI, GHM, CMC, ITW, SID, MT, PKX, CLF, VALE, GSM, ZINC, SLCA, seen in this Finviz Screener.

 

Gold, GLD, traded lower, on the higher US Dollar, turning Gold Miners, GDX, GDXJ, lower. And Silver, SLV, traded unchanged. MarketWatch reports Currency wars driving new gold rush.

 

The Interest Rate on the US Ten Year Note, ^TNX, traded strongly higher to 2.71%, turning Aggregate Credit, AGG, lower, and forcing International Treasury Bonds, BWX, European Debt, EU, and the following interest rate sectors lower: Solar, TAN, Homebuilding, ITB, Energy Partnerships, AMJ, Mortgage REITS, REM, Residential REITS, REZ,  Premium REITS, KBWY, Small Cap Real Estate, ROOF, Real Estate, IYR, and Utility Stocks, XLU, seen in this Finviz Screener, lower.  

 

What Doug Noland terms the Global Government Finance Bubble has finally and totally popped, on the rise in the US Ten Year Note, from 2.59% to 2.71% on Tuesday August 13, 2013, as is seen in the charts of Aggregate Credit, AGG, World Treasury Bonds, BWX, 30 Year US Government Bonds, EDV, 10 Year US Government Notes, TLT, International Corporate Bonds, PICB, Corporate Bonds, LQD, Mortgage Backed Bonds, MBB, Emerging Market Bonds, EMB, Junk Bonds, JNK, and Ultra Junk Bonds, UJB, trading lower.  Credit broke down on Tuesday August 13, 2013, when the 30 Year US Government Bond, EDV, and the US Ten Year Note, TLT, led all of the world’s credit investments, seen in this Finviz Screener, parabolically lower.

 

Another word for credit is trust. Investors no longer trust in the world central bank’s monetary policies to support profitable investment choice, and to provide stimulus for credit and currency carry trade schemes enabling global growth and trade. Ben Bernanke’s, Haruhiko Kuroda’s and Mario Draghi’s monetary policies have crossed the Rubicon of sound monetary policy and have made “money good” investments bad.     

 

While the closed end stock fund CSQ rose, its peers, PTY, AWP, PFL, RCS, and EIM, as seen in their combined ongoing Yahoo Finance Chart traded lower, communicating that the way is now down in all financial markets.  

 

On May 24, 2013, Jesus Christ, operating at the helm of the economy of God, Ephesians 1:10, enabled the bond vigilantes to call the interest rate on the US Government Note, ^TNX, higher to 2.01%, making for an extinction event that terminated Emerging Market Investment, EEM, and Utility Stock Investment, XLU.  The rise of the interest rate on August 13 2013, to 2.71%, constituted an “apocalyptic event” that has terminated fiat money.

 

With the failure of credit on August 13, 2013, both the sovereignty of democratic nation states, (this being seen in World Treasury Bonds, BWX, collapsing in value), and the seigniorage of the world central banks, has failed. Jesus Christ, has pivoted the world’s economic and political paradigm from Liberalism to Authoritarianism.

 

From August 13, 2013, forward, regional nannycrats will set the rules for the formation of the new money, that being diktat money, which will determine everything else.

 

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, sale of a country’s central bank’s gold reserves, fiscal councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, when sovereign regional leaders such as Jeroen Dijsselbloem, President of the Eurogroup, and Michel Barnier, EU Commissioner responsible for internal market and services, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability.

 

Diktat and physical possession of gold bullion will be the only trusted forms of wealth under Authoritarianism.

 

Lance Roberts of Street Talk Live blog, asks in Zero Hedge Are we re-tracing a market peak?  I reply yes, the world has attained Peak Sovereignty, as is seen in Small Cap Nation Investment, IFSM, Nation Investment, EFA, World Producers, FXR, and Small Cap Pure Value Stocks, topping out in value. And, the world has attained Peak Seigniorage, that is Peak Moneyness, as the hoped for end game with Quantitative Easing, read money printing, was done to achieve four purposes, and has proven to be extremely successful.  

 

First, to increase the M2 Money Supply, and thereby goose the economy so much that tax reveunes would increase; this was achieved as Yahoo Finance reports US budget deficit down 37.6 percent through July.  

 

Second, to stimulate the service economy; this was achieved as Steve Slifer of Number Nomics reports ISM Nonmanufacturing remains strong. The Institute for Supply Management not only publishes an index of manufacturing activity each month, they publish one day later a survey of non-manufacturing firms — which largely consists of services.  The July index for business activity jumped 6.7 points from 51.7 to 60.4.  That sounds impressive but in June the index inexplicably fell 4.8 points which did not square with anything else we knew about the economy.  The 60.4 reading sounds more normal and roughly duplicates the high that was reached in the spring of last year, and is only a couple of points shy of the high for the cycle that was set in early 2011.  

 

Third, to create a vast reservoir of safe assets, that would preserve the US Dollar as the world’s reserve currency, whereby there could be currency carry trades and debt trades galore. It’s a well known fact that most of the assets traded out under QE are being held today in the form of “excess reserves.”  This points the way forward, as the Interest Rate on the US Ten Year Note, ^TNX, rises, and investors around the world sell out of US Ten Year Notes, TLT, banks of all types, the Too Big To Fail Banks, RWW, as well as Nasdaq Community Banks, QABA, and the Regional Banks, KRE, will be integrated into the US Federal Reserve, and be known as the Government Banks, or Gov Banks, for short. Evidence of a global selling of US Treasuries is undeway as Daniel Kruger of Bloomberg reports  “Holdings of Treasuries in China, the largest foreign lender to the U.S., fell in June for the first time in five months amid discussion by Federal Reserve officials about slowing the pace their bond purchases. China’s stake dropped by $21.5 billion in June, or 1.7%, to $1.276 trillion. The pullback by China comes as overseas holdings of Treasuries have grown $26.8 billion, or 0.5% this year, the slowest pace since a 2.8% decline in the first six months of 2006. Treasuries have lost 3.1% this year, headed for the worst performance since 2009.”

  

 

Fourth, to provide a cornucopia of moral hazard based investment choices, for the Speculative Leverage Investment Community to trade, this was achieved as is seen in the topping out of the 30 ETFs, seen in this Finviz Screener, … http://tinyurl.com/kp4aftyXIV, FDN, CARZ, PBS, IGV, IBB, RZV, PSCI, FPX, PPA, IAI, SPHB, SMH, XRT, PJP, PSP, UJB, TAN, RXI, FLM, EIRL, IYC, EUFN, RWW, ITB, FXR, IGN, BJK, PBJ, ING, with the last entry a life insurance company serving as proxy for the Life Insurance sector. If one is looking for short selling opportunities, these should be at the top of the list.   

 

Bond yields are soaring because investors fear that the debtors cannot make good and repay their loans.      

 

Zero Hedge reports US Treasury finally admits the truth: It’s all POMO. So, thanks to the US Treasury, we know that between January 2009 and April 2013, on days in which the Fed POMO was more than $5 billion, the stock market rose a total of 570 points, on days in which the POMO was less than $5 billion, the cumulative stock market gain was “only” 141 points, and when there was no POMO, the S&P gained… -51 points.

 

Ambrose Evans Pritchard of The Telegraph reports Investors euphoric as US margin debt reaches ‘danger’ levels. Fund managers are around the world are gripped by euphoria, convinced that America is in full recovery and Europe has overcome its debt crisis.

 

World Stocks, VT, are tremendously leveraged over Credit, AGG, as is seen in the chart of World Stocks, relative to Credit, AGG, VT:AGG.  The Risk Off ETN, OFF, and Volatility, XVZ, have been rising since August 5, 2013, confirming that a blow off top in the stock market has been achieved.

 

Small Cap Nation Investment, IFSM, Nation Investment, EFA, World Stocks, VT, The BRICs, EEB, Emerging Markets, EEM, European Stocks, VGK, Eurozone Stocks, EZU, US Stocks, VTI, China, YAO, Asia Excluding Japan, EEP, the Nikkei, NKY, have all topped out, as bond vigilantes have control of the bond markets, and are calling Interest Rates higher globally, and will enable currency traders to short sell Major World Currencies, DBV, such as the Euro, FXE, the Swiss Franc, FXF, the British Pound Sterling, FXB, the Swedish Krona, FXS, and the Canadian Dollar, FXC, as well as the  Emerging Market Currencies, CEW, which will result in a tremendous fall lower in the currency and credit sensitive Small Cap Pure Value Stocks, RZV, the Vice Stocks, VICEX, such as the Gaming Stocks, BJK, and Liberalism’s great carry trade nation Ireland, EIRL.  One can use this Finviz Screener of 50 Leading ETFs,  … http://tinyurl.com/lgzgur8 … to follow stock wealth trade lower.

 

Look for an upward explosion in the 200% Proshares Bear Market ETFs, such as BIS, FXP, SQQQ, SDD, EEV, EFU, SMDD, SSG, DUG, EWV, SRS, SKF, SDP, JGBS, seen in this Finviz Screener  … http://tinyurl.com/m9ovk7n  …

 

And look for an upward explosion as well as in the 300% Direxion Bear Market ETFS, EDZ, YANG, RUSS, DPK, MIDZ, ERY, TZA, SOXS, DRV, seen in this Finviz Screenerhttp://tinyurl.com/n6zkatu

 

Benson te of Prudent Investor Newsletter presents the concept that “ Shrinking US trade deficits can signify a symptom of unsustainable imbalances from the current monetary order, the US dollar standard.”

 

The US reportedly posted a substantial 22% reduction in the deficits of her trade balance owing to record exports and to a shrinking oil import bill according to the Wall Street Journal [1].

 

Shrinking US trade deficits can signify a symptom of unsustainable imbalances from the current monetary order, the US dollar standard.

 

Over 50% (right window) of the $12 trillion (left window [3]) of international debt securities has been denominated in US dollars.

 

The point of this exercise is to demonstrate of the world’s continuing dependence on the US dollar as medium of exchange and as reserve currency.

 

Yet the US dollar standard seems to operate on the principle of the Triffin Dilemma, formulated by the late Belgian American economist Robert Triffin.

 

The eponymous theory by Mr. Triffin elucidates of the economic conflict emanating from a world reserve currency particularly on meeting short term-domestic interests as against long term international objectives [4]

 

Under the Triffin dilemma, the issuing reserve currency makes it easy for a nation to consume more goods and services via an overvalued currency.

 

The same overvalued currency easily allows for financing of either budget deficits and or trade deficits, aside from having more latitude in “determining multilateral approaches to either diplomacy or military action” [5].

 

In short, a reserve currency provides the issuer the privilege of an interim “free lunch” or to quote the French economist Jacques Rueff “deficit without tears” [6]                        

 

One of the other side effects of the Triffin dilemma has been the intense deepening of the financialization of the US economy [7].

 

Instead of producing goods, the US economy evolved towards shuffling of financial papers partly required by foreigners to recycle their dollar holdings. As one would note, the gist of expansion of financialization came as the US dollar became unhinged from the Bretton Wood System in August 1971.

 

Of course the other side effect of the Triffin dilemma has been the growing frequency of global bubble cycles as evidenced by the greater incidences of global banking crises since the Nixon Shock of 1971

 

Aside from the massive accumulation of reserve currency by foreigners that would eventually undermine the reserve currency status, a dynamic which the world seems headed for, an equally detrimental factor to a reserve currency status is the proportional devaluation that would shrink these deficits.

 

Mr. Triffin actually articulated the problems of the Bretton Woods System where the failed system seemed to have validated his thesis.

 

In a testimony before the US congress in November 1960, Mr Triffin argued that “If the United States stopped running balance of payments deficits, the international community would lose its largest source of additions to reserves. The resulting shortage of liquidity could pull the world economy into a contractionary spiral, leading to instability. [8]”

 

Given the deep reliance by global markets and global economy on the US dollar system, improving US trade deficits are likely to extrapolate to reduced liquidity in the ex-US global system. Such dynamic will only provide more muscle or ammunition for bond vigilantes, and equally, would mean a tightening of a system deeply dependent on the largesse of US dollar steroids from US authorities.

 

In the recent past, a reduction in the deficits of US trade balance coincided with strains in the global ex-US equity markets as measured by the MSCI [9] (lower pane)

 

Diminishing trade deficits here functioned as symptoms to dot.com bubble bust and to the 2008 Lehman bankruptcy. When financial markets collapsed as consequence to a bubble, international trade grinded to a near halt. This led to a substantial reduction of US trade deficits. Thus the narrowing trade balance coincided with recessions.

 

The causal flow may or could be reversed today; perhaps reduced liquidity from US exports of her currency the dollar may incite instability in the global financial markets.

 

The effect of shrinking liquidity on the global system will likewise affect US corporations. With 34% of the revenues of US S&P 500 companies coming from non-US sales [10], the adverse effect is that shrinking global liquidity will eventually land on US shores.

 

And it’s not just trade deficits that has contracted, US budget deficits have also dwindled to 4.2% of the GDP from 7.7% a year ago [11]. So this could be a one-two punch against the global markets and economy. And should the FED taper, such will exacerbate on the effects of the Triffin Paradox.

 

Will the European Central Bank, the Bank of Japan, the Bank of England and the People’s Bank of China fill in the vacuum from improving US twin deficits?

 

Or will Triffin’s ghost haunt the global financial markets?

 

Interesting times indeed.

 


[1] Wall Street Journal Oil Boom Helps to Shrink U.S. Trade Deficit by 22% August 6, 2013

 

[2] The European Central Bank THE INTERNATIONAL ROLE OF THE EURO July 2013 p.19

 

[3] The European Central Bank, op cit., p23

 

[4] Wikipedia.org Triffin dilemma

 

[5] See The Nonsense About Current Account Imbalances And Super-Sovereign Reserve Currency April 20, 2009

 

[6] Jacques Rueff, The Monetary Sin of the West, Mises.org

 

[7] Wikipedia.org Financialization

 

[8] IMF.org The Dollar Glut Money Matters: An IMF Exhibit—The Importance of Global Cooperation System in Crisis (1959-1991)

 

[9] MSCI.com World Ex-US MSCI Index Performance

 

[10] Businessinsider.com CHART: The S&P 500 Is Not The US Economy, May 10, 2013

 

[11] National Forex Calculated Risk; US Deficit is Shrinking August 10, 2013

 

On Wednesday, August 14, 2013, Yield bearing sectors such as those seen in this Finviz Screener, led World Stocks, VT, lower; these included Homebuilders, ITB, Utilities, XLU, Water Resources, PHO, Telecom, IST, and Dividend Growth, VIG. An ever increasing Interest Rate on the US Ten Year Note, ^TNX, is not conducive with sustaining or growing dividends.  Sectors trading lower included Industrial Textile Manufacturers, seen in this Finviz Screener, Apparel Manufacturers, seen in this Finviz Screener, Regional Airlines, seen in this Finviz Screener, Staffing Services, seen in this Finviz Screener, Home Improvement Store, seen in this Finviz Screener, Media Companies, PBS, seen in this Finviz Screener, Printing Companies, seen in this Finviz Screener, Internet Retail, FDN, seen in this Finviz Screener, Semiconductors, SMH, seen in this Finviz Screener, Industrial Stocks, XLI, PSCI, seen in this Finviz Screener, and Consumer Services, IYC, seen in this Finviz Screener.

Gold, GLD, rose 1.0% and Silver, SLV, 1.8%, taking Miners GDX 2.1, GDXJ, 4.5, SIL, 3.7, SILJ, 6.9, SSRI, 5.0, higher.

Corey Rosenbloom, provides an excellent chart article Quick charting August 15 internals ahead of the open showing the topping out and downturn in the S&P 500, $SPX. The Market Vectors Egypt Index ETF, EGPT, fell 3.1% as Egypt’s death toll rose to 95; the country’s interim vice president resigned and a state of emergency was imposed following political clashes in the country. Eurozone Stocks, EZU, traded slightly higher, as the EUR/JPY traded slightly lower to 130.05. The iPath JPY/USD, JYN, traded lower. US Stocks, VTI, traded, lower, and the Nikkei, NKY, traded lower.  

Zero Hedge reports Europe returns to “growth” after record 6-Quarter long “double dip” recession; Depression continues.

 

I comment that the value of European Stocks, VGK, relative to German Bunds, BUND, are extremely overvalued, as is seen in the chart of VGK:BUND.

 

Likewise Eurozone Stocks, EZU, relative to Eurozone Debt, EU, are extremely overvalued, as is seen in the chart of EZU:EU. Mark Deen of Bloomberg reports “The bond-market calm that has descended on the euro area in the run-up to next month’s German election masks unresolved conflicts that have frustrated the region’s leaders for more than three years. Greece needs more debt relief, the International Monetary Fund says; Portugal is struggling to exit its support program; Spanish Prime Minister Mariano Rajoy is battling corruption allegations and calls to resign; France faces unrest as Socialist President Francois Hollande follows through on his promise to cut pension-system losses. ‘There is a European ability to turn down the volume on problems when elections are looming,’ said Ludovic Subran, chief economist at Euler Hermes, a Paris-based credit insurer. ‘You can feel that the tough questions have been postponed.’”

 

Zacks Investment Research reports TSS Grows Debit Processing in Ireland Expanding its debit card portfolio in Ireland, yesterday Total System Services Inc TSS, entered into a strategic alliance with KBC Bank Ireland, which is part of the Europe’s leading global financial services provider, KBC Group. KBC Bank has a history of operations of over 40 years in the fields of banking and business development. This bank is currently armed with over 700 employees across Ireland’s Dublin, Cork, Limerick, Belfast and Galway. As per the deal, Total System will now process KBC Bank’s debit card portfolio through its best-in-class TS2 platform. The partnership also complements the company’s strategy to bolster its relationship with bank’s customers as it plans to offer risk management, fraud avoidance and other support services on these cards. Overall, the alliance is expected to strengthen the card processor’s client base and payment processing network in Ireland. Moreover, the new contract should enhance Total System’s payment volumes and a number of processed transactions, thereby supporting the financials.

 

On Thursday, August 15, 2013, US Stocks, VTI, led World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, stock sectors and yield bearing stocks sectors lower, as the Interest Rate on the US Ten Year Note, ^TNX, rose to 2.75%, which turned Aggregate Credit, AGG, lower again, and which sent Major World Currencies, DBV, of which the US Dollar, is a component, and Emerging Market Currencies, CEW, lower. The Brazilian Real, BZF, and The US Dollar, $USD, UUP, traded lower at strong support at 81.24; while the  Swiss Franc, FXF, the British Pound Sterling, FXB, the Japanese Yen, FXY, and the Australian Dollar, FXE, traded higher.  The Euro Yen Currency Carry trade, EUR/JPY, traded only slightly lower, which helped maintain the Eurozone, EZU, loss on the day.

 

Jesus Christ acting in the Economy of God, Ephesians, pivoted the world out of Liberalism and into Authoritarianism on Thursday, August 15, 2013, by enabling the bond vigilantes to call the Interest Rate higher on the US Ten Year Note, ^TNX, to 2.75%, which destroyed the sovereignty of the Banker Milton Friedman Free To Choose Floating Currency based regime of investment choice, with its credit and carry trade schemes. The Beast Regime of diktat and its schemes of debt servitude and austerity, is rising to rule the world, out of the collapse of democratic nation state seigniorage of credit.  The world central bank’s monetary policies designed to support and stimulate global growth and trade, have exhausted.  Ben Bernanke’s and The US Fed’s Quantitative Easing, Haruhiko Kuroda’s and the Bank of Japan’s Abenomics, Mervyn King’s and the Bank of England’s Forward Guidance, have not only failed, but have turned toxic, and have made “money good” investments bad.  

 

A higher Interest Rate on the US Ten Year Note, ^TNX, has destroyed the sovereignty of democracy as is seen in World Government Treasury Debt, BWX, trading lower this week, and has destroyed the seigniorage of nation investment. Nations, EFA, trading lower included US, VTI, China Industrials, CHII, and Japan, EWJ.  Small Cap Nations, IFSM, trading lower included Egypt, EGPT, US, IWM, China, ECNS, Brazil, EWZS, India, SCIN, Greece, GREK, Philippines, EPHE, Turkey, TUR, UK, EWUS, Ireland, EIRL, Mexico, EWW, Indonesia, IDXJ, Japan, JSC.

 

Out of the collapse of democratic nation states, new regional authoritarian, political, economic, monetary, fiscal authority, is rising to rule mankind. Leaders will meet in summits to waive national sovereignty and to announce regional framework agreements, which will pool sovereignty regionally, and which will feature nannycrats and public private partnership policies of diktat, and provide the seigniorage of diktat, where moneyness will come from the word, will and way of sovereign regional leaders. Along this line of thought comes the Zero Hedge report India bans all gold coin imports, increases capital controls

 

Sectors trading lower included

XIV, -5.2

TAN, -4.5

IGN, -2.6, such as CSCO, FNSR, JNPR,

PBJ, -2.5, such as KOF, DEO, JSDA, FIZZ, CCH, MNST, PEP, COKE, DPS, CCE,

FDN, -2.4

PBS, -2.4, such as MDP, LVNTA, CMLS, JRN, NXST,

RZV, -2.3, such as UNTD, ECOL, TISI, ADUS, ABG, ANGI, ELI, MCRI, ASR, CSU, BBSI, TRAX

SMH, -2.2

XRT, -2.0, such as PSUN, KIRK, ULTA, PLCE, HSNI, JNY, GES, ANF, ROST, EXPR, COST, M,

IGV, -2.0, such as PLUS, SPSC, IMPV, ADVS, ZIXI, SPLK, TYPE, CRM, SNCR, CTRX, CNQR

IBB, -2.0

IYC, -2.0

PSCI, -2.0

 

Foreign Airlines, seen in this Finviz Screener, traded lower.

 

Consumer Recreational Goods, seen in this Finviz Screener, traded lower.

 

Real Estate Development, seen in this Finviz Screener, traded lower.

 

Educational Services, seen in this Finviz Screener, traded lower.

 

Yield bearing sectors trading lower included

KBWY, -2.8

ROOF, -2.4

REM, -2.0

REZ, -2.1

FNIO, -2.0

PSP, -1.5

VIG -1.5

XLU, -1.3

 

Financials trading lower included the following

Ireland Bank, IRE, led European Financials, EUFN, -.9

Argentina Banks, BRBR, BSBR, BMA, and GGAL, led Emerging Market Financials, EMFN, -.6

China Financials, CHIX, -.7

US Banks, BAC, and C, led Too Big To Fail Banks, RWW, -1.6

Asset Managers, seen in this Finviz Portfolio,  

Regional Banks, KRE, -1.0

Investment Bankers, KCE, -1.9

Stockbrokers, IAI, -1.7

 

Business Insider provides 46 charts that every gold bull will love.

 

Jeff Mackie of Breakout reports that Google is planning to offer its O3b Internet Service, from medium orbit satellites, in Q4 of 2013.

 

As I’ve shared with you, I live in the downtown area of Bellingham, just off skid row, that is Holly Street, in the Sea Breeze Apartments, operated by a nonprofit corporation. It’s a licentiousness part of town. I was at home late in day, I had my door open, and noticed that the hallway light came on; yet strangely I didn’t hear any knocks or any speaking; so I stepped into the doorframe and looked down the hall. There outside the door of the apartment across the way stood two divas; you know, two young hot looking women; not anything like who most of the old and disabled who live here. The first was an enforcer and overlord; she stood supporting herself with her left arm on the hallway; and she gave me a look like she wanted to kill me; I’ve seen the big men here at Sea Breeze, that is the antisocial ones, have given me this look dozens of times. The second was a harlot; when I looked at her, she looked at the door. Well, the apartment across the way is transit station where people do sex and drugs; the landlord, how I hate that term, and the police, know this, and are working to remedy the situation; the only gripe I have, is that the apartment could be rented out to some poor disabled person like myself who really would treasure the place.

 

On Friday, August 16, 2013, The Interest Rate on the US Ten Year Note, ^TNX, rose to 2.83%, a two year high, causing Aggregate Credit, AGG, to trade strongly lower. Market Watch reports Treasurys tank; 10-year yield up 75% since May.

 

Yield bearing sectors trading lower included

REZ, -2.5

KBWY, -2.2

ROOF, -1.8

XLU, -1.2

 

Sectors trading lower included

Gold Miners, GDX- .2.1, GDXJ, -1.6, traded lower on a higher price of Gold,  GLD, which closed in what may a breakout, in a questioning harami.

Metal Manufacturing, XME, -1.3

Uranium Miners, URA, -1.2

 

The EUR/JPY closed the week lower, slightly from last week’s close, at 103.01, sustaining and even enabling the Eurozone Stocks, EZU, to close the week in a questioning harmai. A number of European Nations rose to new rally highs on higher European Financials, EUFN, these included Italy, EWI, and Spain, EWP.    

 

World stocks, VT, US Stocks, VTI, Nation Investment, EFA, and Small Cap Nation Investment, traded lower from their Wednesday August 14, 2013, highs.

 

A rising Interest Rate on the US Ten Year Note, ^TNX, since May 21, 2013, to 2.01%,  has created debt deflation, that is currency deflation, striking the emerging market banks, emerging market currencies, and emerging market bonds hard. Business Standard reports Indian stocks plunge on falling rupee.  India Banks, IBN, HDB, traded lower forcing India, INP, SCIN, lower. And Brazil Banks, ITUB, BBDO, BBD, traded lower forcing Brazil, EWZ, EWZS, lower. Chile Banks, BCH, BCA, BSAC, traded lower forcing Chile, ECH, lower.  Mexico Bank BSMX traded lower, forcing Mexico, EWW, lower.

 

Liberalism’s credit scheme of Dollarization has failed as Rajesh Kumar Singh and Archana Chaudhary of Bloomberg report “Power company bonds are India’s worst performing this year as failures in fuel supply inflate coal-import bills and lengthen project delays. Dollar notes sold by electricity generators and distributors lost an average 5.1% through Aug. 12.”

 

Rogerio Jelmayer and Matthew Cowley of the WSJ report “Brazil’s government-run Banco do Brasil SA is pressing ahead with its rapid increase in lending, urged on by the government, even as the economy slows and its private-sector rivals hold back. President Dilma Rousseff and her administration have pressed government lenders including Banco do Brasil to lend more to help jump-start weak economic growth. Low unemployment, rising salaries and ample credit have fueled strong consumer demand, while industry has contracted. Some investors fear that Banco do Brasil, Latin America’s largest bank by assets, could be storing up trouble for the future. The economy is showing little sign of a strong recovery, and unemployment levels have started to lift off their recent historical lows. That could lead to more defaults on the new loans Banco do Brasil made during the slowdown.”

 

This week sectors leading lower included

Biotechnology, IBB, -3.7

Pharmaceuticals, PJP, -3.2

Consumer Discretionary, IYC, -3.1

Internet Retail, FDN, -2.9

Transportation, XTN, -2.6

Retail, XRT, -2.5;  Major US retailers posted reduced quarterly sales this week

Small Cap Pure Value, RZV, -2.3

Solar, TAN, -2.3

 

And this week yield bearing sectors trading lower included

REZ, -7.1

KBWY, -6.2

ROOF, -5.5

REM, -5.0

FNIO, -4.7

XLU, -4.0  

 

This week the chart of the S&P 500, $SPX, SPY, shows a 2.1%, trade lower.

 

The week ending August 16, 2013, saw all forms of fiat money die on the rise of the Interest Rate On The US Ten Year Note, ^TNX, to 2.83%.  Major World Currencies, DBV, Emerging Market Currencies, CEW, Aggregate Credit, AGG, Nation Investment, EFA, and Small Cap Nation Investment, IFSM,  all traded lower on Friday August 16, 2013, on the exhaustion of the world central banks’ monetary authority.  

 

Jesus Christ acting in dispensation, that is in the household administration plan of economics and politics, Ephesians 1:10, fulfilled and completed Liberalism by manifesting Peak Nation Investment, EFA, and Peak Small Cap Nation Investment, IFSM, the week ending August 16, 2013.  Yahoo Finance chart shows that the nation of Ireland, EIRL, has been a Liberalism investment superstar, this is seen in its Finviz Chart, which shows that it provided a 57% return over the last year.

 

Liberalism’s sovereignty of democratic nation states and its seigniorage of credit and currency carry trades is failing. Bible prophecy of Revelation 13:1-4, communicates that out of Mediterranean Sea nation sovereign insolvency and banking insolvency, that Authoritarianism’s sovereignty of regional governance, producing nannycrat rule, and the seigniorage of ditkat, producing totalitarian collectivism, is rising to rule the world.

 

Wall Street Economist Steve Slifer says In our opinion, the current drop is nothing more than typical stock market volatility. Finally, the spread between long-term and short-term interest rates, known as the “yield curve”, is an important indicator of future economic activity. With the 10-year currently at 2.8% and the funds rate at 0.1% the yield curve currently is 2.7%.  It is not going to slow the pace of economic activity.  We do not have to worry about a recession (or a significant growth slowdown) until the yield curve flattens sharply – which will probably not occur until the Fed actually begins to raise the funds rate in mid-2015. We will not become alarmed until the stock market declines by at least 10%, and is confirmed by alarm bells from some of these other leading economic indicators.

 

John Redwood, MP, says US rates have risen on expectations that the Fed will soon end its large Quantitative Easing programme. They have risen despite various attempts to reassure people that the stimulus will not be withdrawn prematurely, to damage recovery. When the UK withdrew or temporarily suspended its QE programme there was no such impact. Central bankers have to try to guide market expectations in the way they wish, to keep enough confidence in an economy without letting inflation race away. So far in his short time as Governor Mr Carney has been lucky, that he arrived just as the UK economy was showing good signs of revival. He was less lucky with the background for launching forward guidance. The US pushing rates up has had more impact on the UK bond markets than the Bank’s statements. It has produced the irony that the Governor’s policy was designed to keep rates down, yet the markets have pushed borrowing rates up rapidly for the government.

 

Doug Noland writes Introducing “Government Finance Quasi-Capitalism”. After much contemplation, I’ve decided it’s again appropriate to update Minsky’s “Stages of development of Capitalist finance.”

 

I’m going to call the new “Minsky Stage” – “Government Finance Quasi-Capitalism” (GFQC). The government now essentially determines market yields throughout the entire Credit system. The government now basically insures system mortgage Credit and sets mortgage borrowing costs. Massive federal deficits and low Fed-dictated borrowing costs sustain inflated corporate earnings and cash-flows. The Fed has come to believe it is within its mandate to inflate securities and asset prices. It has crushed returns on saving instruments. Amazingly, the Fed believes it is within its mandate to dictate that savers flee the safety of deposits and other “money” for the risk markets.

 

“Government Finance Quasi-Capitalism” exacerbates fragilities. It fosters ongoing Credit excesses including a historic expansion of non-productive government debt. GFQC and the resulting flow of finance exacerbate imbalances and economic maladjustment. Accordingly, resulting financial and economic fragilities ensure an even bigger role for Washington in the real economy and for the Federal Reserve in the financial markets.

 

With securities markets near record highs, it has become popular to refer to “enlightened” policymaking. As a student of monetary history, I see the seductive workings of the monetary inflation expedient. Once commenced, it always assumes increasing control. The expansion of government finance ensures dependency on fiscal deficits and central bank “money printing.” Inflating securities prices, highly speculative and distorted financial markets, and economic maladjustment ensure ongoing fragilities. “Government Finance Quasi-Capitalism” ensures the over-issuance of mispriced finance, the misallocation of resources and a deficient real economy. The widening gulf between weak fundamentals and monetary inflation-induced market Bubbles creates a highly unstable, uncertain and precarious backdrop. All seem to ensure only greater government intrusion, control and stagnation.

 

I comment that the chart of Mortgage Backed Bonds, MBB, together with, US Stocks, VTI, Eurozone Stocks, EZU, the Nikkei, NKY, Chinese Stocks, YAO, and Small Cap Pure Value Stocks, RZV, reflects the movement of money to risk assets, and their topping out, that has come through “Government Finance Quasi Capitalism”      

 

This Finviz Screener presents the top 30 Risk Assets of Liberalism’s “Government Finace Quasi Capitalism”; these are XIV, FDN, CARZ, PBS, IGV, IBB, RZV, PSCI, FPX, PPA, IAI, SPHB, SMH, XRT, PJP, PSP, UJB, TAN, RXI, FLM, EIRL, IYC, EUFN, RWW, ITB, FXR ,IGN, BJK, PBJ, ING

 

John Rubino of Dollar Collapse provides this week’s Precious Metals Report

8/17 Hathaway – ‘Paper gold’ short squeeze underway – GotGoldReport

8/17 4 indicators that show gold prices are set to surge – ETF Daily News

8/17 Cannabis revealed: why marijuana is illegal? – Don’t Tread On Me

8/16 Casey’s Louis James warns: “Don’t try to time the market” – Casey Research

8/16 Gold’s new rally begins now – Daily Reckoning

 

Jack Chan of JC’s buy and sell signals, gave his Buy Signal to gold, as is seen in the chart of the Gold, ETF, GLD, this week; this as Mike Mish Shedlock writes Losing faith in gold at the wrong time.

 

2) … Is the stage being set for the rise of a King of the North? … And is the King of the South now rising to power?

Bible prophecy of Daniel 11:11 and Daniel 11:40-42 foretells that a confederation of North African and Middle East countries will form an Islamic Empire, which will produce the King of the South, who will eventually go to war against the King of The North, that is Europe’s soon coming sovereign, that is the Prince who is to come, that being the Prince of the people.

 

Daniel 11:11 “And the king of the South shall be moved with rage, and go out and fight with him, with the king of the North, who shall muster a great multitude; but the multitude shall be given into the hand of his enemy.”

 

Daniel 11:40 “At the time of the end the king of the South shall attack him; and the king of the North shall come against him like a whirlwind, with chariots, horsemen, and with many ships; and he shall enter the countries, overwhelm them, and pass through.”

 

Scott at Prophecy Update writes EU convenes emergency meeting on Egypt: EEAS back in the news.

We know from Daniel 9:27 that the coming antichrist will “confirm” the covenant with the many, and part of any confirmation of a peace deal in the Middle East will include some kind of peace-keeping forces. It requires some degree of speculation, but it seems obvious that any plan will have to consider a combination of border control forces and forces on the streets to maintain peace. The EEAS was formed for this very purpose, and the fact that this group was born in the revived Roman Empire becomes a compelling story for a prophecy watcher.  If the EEAS is considering involvement in Egypt it is very easy to see similar maneuvering whenever the covenant of Daniel 9:27 is confirmed. This story is worth watching closely,

 

Duane and Shelly Muir of Signposts of the Times write It’s official, military chief Sisi is new king of Egypt 

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US Stocks And World Stocks Trade Lower …. While European Stocks, Eurozone Stocks, Small Cap Nation Investment, And Nation Investment Rally To New Market Highs

August 12, 2013

Financial market report for the week ending May 9, 2013

1) Details of this week’s financial market trading

On Monday, August 5, 2013, Briefing.com reports Stocks slipped out of the gate after better-than-expected economic data from China and Great Britain was unable to spark an early bid. In China, the Non-Manufacturing PMI rose to 54.1 from 53.9 while Great Britain’s Services PMI posted its best reading since 2006, rising to 60.2 from 56.9.  Equities climbed off their early lows before receiving an additional push following the release of the ISM Non-Manufacturing Index, which posted its best reading since February 2011. The index jumped to 56.0 from 52.2 as business activity and production levels spiked to 60.4 in July from 51.7 in June. Just like the manufacturing report, the jump in production came from a strong gain in new orders (57.7 from 50.8). Although today’s data provided stocks with a boost, the S&P never made it into the green as comments from Dallas Fed President Richard Fisher knocked the key indices off their highs. Mr. Fisher said the Fed’s bond buying program may lay the groundwork for misallocation of resources and fuel future inflation. In addition, he said the market could expect a slowdown in asset purchases later in the year if the economy continues to “improve along the lines envisioned by the Committee.”

The chart of the EUR/JPY shows a trade lower from Friday, August 2  2013, to close today at 130.35, with the Euro, FXE, trading lower and the Yen, FXY, trading higher.

The Interest Rate on the US Ten Year Note, ^TNX, rose strongly to close at 2.64%, driving interest rate sensitive Homebuilding, ITB, and Automobiles, CARZ lower; stocks tradng lower included F, JCI, SIRI, RAD, ITW, IP, UTX, GILD, AMGN, and KORS.

Today’s higher Interest Rate on the US Ten Year Note, ^TNX, drove the BRICS, EEB, such as  Brazil, EWZ, EWZS, India, INP, SCIN, and China, YAO, lower.  And drove the Emerging Markets, EEM, such as the Philippines, EPHE, Indonesia, IDX, Thailand, THD, Turkey, TUR, and Chile, ECH, lower as well.

The trade lower in the Andean 40, AND, Brazil Financials, BRAF, Thailand, THD, the Philippines, EPHE, and Indonesia, IDX, coincides with the rise of the Interest Rate on the US Ten Year Note, ^TNX, on May 21, 2013, as is seen in their combined ongoing Yahoo Finance Chart, and docmuents the failure of liberalism’s credit scheme of Dollarization, as well as documents that the rally in nation investment in these countries, came via a credit induced inflationism, and constituted a crack up boom.

Philippine Austrian economist Benson te documents the tremendous amount of credit flowing in the Philippines stating In terms of debt, the rate of increases in Philippine debt outstanding [18] both from domestic and from foreign lenders over the past 17 years have been at CAGR 9.49% and 9.62% respectively; total debt has grown 9.59%.   It is true that the current administration has reduced the rate of growth in total debt levels by almost half or 4.84% from 2010-2012, aside from changing the mix of the debt exposure in favor of domestic debt, where domestic debt grew by 8.46% while foreign debt contracted by .523%. Domestic debt now commands nearly 64% share of the total outstanding debt. The shift to tilt the balance of debt outstanding towards domestic debt from foreign debt deftly avoids external debt risks and at the same maximizes the Philippine government’s financial repression policies, through not only the stealth transfer of people’s savings in favor of the government (debtor) but importantly by keeping interest artificially rates low, such reduces the government’s interest expenditures which effectively operates as a covert deficit reduction mechanism.

Dividend yielding sectors trading lower on today’s higher interest rate included Brazil Financials, BRAF, Emerging Market Financials, EMFN, European Financials, EUFN, India Earnings, EPI, China Financials, CHIX, and Utility Stocks, XLU, such as those seen in this Finviz Screener, as well as  Dividend Growth, VIG.

The trade lower in Utilities, XLU, and Dividend Growth, VIG,  are strong indicators that the stock market is now once again turning lower, on the failure of credit.  Bond vigilantes are again calling the Interest Rate on the US Ten Year Note, ^TNX, higher, on the conviction that the World Central Banks, credit schemes, especially those of Ben Bernanke of the US Federal Reserve, have crossed the Rubicon of sound monetary policy, and have turned “money good” investments bad.  Banks trading lower included the UK’s HDC, Brazil’s ITUB, BSBR, BBD,  BBDO, and South Korea’s WF.  Reuters reports Output in emerging market economies contract in July. Energy Partnerships, AMJ, seen in this Finviz Screener, traded lower on a lower price of Oil, USO.

The chart of Stocks, VT, relative to Aggregte Credit, AGG, VT:AGG, suggests that stocks are terrifically over leveraged, and that are soon going to experience strong investment derisking and deleveraging.

Bankers, under liberalism’s monetization of debt, have produced a moral hazard based peak prosperity. Nannycrats under authoritarianism will apply all of liberalism’s debts to every man, woman and child under planet earth, establishing global austerity.  After selling off last Friday, Solar Energy Stocks, TAN, blasted to a new rally high. While Reuters reporting Dow, S&P slip from record highs on year’s lowest volume, the Dow, DIA, traded only 0.3% lower, and the S&P, SPY, traded only 0.2%, lower.

The Risk Off ETN, OFF, traded in a highly volatile manner, and then closed spiked down; and the 200% Volatility ETN, TVIX, traded lower as well; both suggesting that stock market place acceptance of higher interest rates without any real overall market trade lower, has reached the maximum level of credit and currency carry trade leverage possible. Along this line of thought, Tyler Durden of Zero Hedge writes Diapason Commodities Sean Corrigan’ Blue-Sky index is flashing red. And in news of a disconnect from the reality that bonds underwrite stocks, Reuters reports Japan $80 billion public fund may shift funds to stocks from bonds. The pension fund for Japan’s civil servants is considering changing its ultraconservative investment strategy to allow more of its $80 billion to go into stocks and less into domestic government bonds.

Gary of Between The Hedges relates that Zero Hedge reports the following:

China Bails Out Its Shipping Industry, Blows Latest Capital Misallocation Bubble

Fisher Warns Feral Hogs: “Don’t Rely On Fed Put”.

Dallas Fed’s Fisher: “We Own A Significant Slice Of Critical Markets. This Is Something Of A Gordian Knot”.

Japan Finally Admits The Truth: “Right Now, We Have An Emergency At Fukushima”.

Darryl Schoon wrote in Financial Sence on January 4, 2012, China, 2012 and Von Mises’ Crack-Up Boom Ludwig von Mises wrote in Human Action in 1949, The credit boom is built on the sands of banknotes and deposits. It must collapse… If the credit expansion is not stopped in time, the boom turns into the crack-up boom; the flight into real values begins, and the whole monetary system founders.

The bankers’ artificial injection of credit into free markets ultimately overwhelms supply and demand fundamentals. This distortion, conveniently overlooked during expansions, becomes painfully apparent during contractions when demand disappears leaving behind excess capacity, defaulting debts and high levels of unemployment. Capitalism’s foundation of debt-based money was destabilized by America’s expansion of its monetary base after 1980; resulting in the eventual overcapacity of supply in the East, e.g. China. Japan, Korea, whose economies had expanded to satisfy the artificially inflated demands of the West, e.g. the US, the UK, Europe. Capitalism, an always uneasy imbalance between credit and debt, is now trying to regain its balance. It can’t. The present crisis, created by decades of excess credit, is being treated with even more credit; a dangerous palliative that will exacerbate, not solve, what is happening. Modern monetary debauchery is no longer a Western phenomenon. China has now joined the party and in a very big way.

Professor David Hackett Fisher in The Great Wave, Price Revolutions and the Rhythm of History writes that for the last eight hundred years, periods of economic and social stability have been intermittently interrupted by waves of rising prices. Each of these great waves according to Professor Fisher culminated in the economic and societal collapse of the existing order, bringing to an end the Middle Ages, the Renaissance, the Age of Enlightenment, etc. Finally, the great wave crested and broke with shattering force in a cultural crisis that included demographic contraction, economic collapse, political revolution, international war and social violence pp. 237-238, David Hackett Fisher, The Great Wave: Price Revolutions and the Rhythm of History, Oxford University Press, 1996.

Great waves take 80 to160 years before they end in the eventual decline and collapse of existing epochs. Today, another great wave is about to crest and break; and the changes could be even more extreme as the amplitude of change is greater than in any previous wave.

The crackup boom will end as von Mises predicts in monetary disarray, i.e. the debasement of currencies and possible hyperinflation where paper money loses all value. Today, money is no longer a store of value. It’s a trap for the unsuspecting that has already been sprung. The 300 year viral spread of the banker’s fraudulent paper money is best explained by Gresham’s Law wherein bad money drives out good. But the global success of the banker’s debt-based money has led to its own undoing; for when there’s no good money left, only bad remains. In 1971, after which gold no longer backed the bankers’ now fiat money, the growth of credit and debt became exponential. Today, they are reaching their limits. Tomorrow, those limits will be exceeded. Yes, Dr. Keynes, Dr. Friedman, Dr. Greenspan, Dr. Bernanke, et. al. while there are no limits to economic hubris, there are limits to monetary imbalances. Throughout history, time and time again monetary chaos has led to the explosive rise in the price of precious metals. It’s happening again today.

The price of Gold, $GOLD, fell immediately after Darryl Schoon wrote that article from $1,800 to $1,200; and has since risen to $1,300. An inquiring mind asks, has the S&P 500, SPY, the Russelll 2000, IWM, the Pure Value Small Caps, RZV, and Global Producers, FPX, seen in their combined ongoing Yahoo Finance Chart, all risen to Elliott Wave 5 Highs, and are they poised to awesomely and quickly lower?  And an inquiring minds asks, is the price of gold bound to explode massively higher once again.

Buckminster Fuller wrote in his Book Critical Path and its chapter, Twilight of the World’s Power Structures, Humanity is moving ever deeper into crisis, a crisis without precedent. An inquiring mind asks, with fiat wealth peaking, that is with World Stocks, VT, trading at an all time high, is the world about to enter its Buckminster Fuller Moment?

Paul Craig Roberts writes in Shift Frequency article, Washington Signals Dollar Deep Concerns on the soon coming end of the US Dollar Hegemonic Empire, which is foretold in King Nebuchadnezzar’s Statue of Empires Dream in Daniel 2:25-45, where a Ten Toed Kingdom of Regional Governance, whose toes of iron diktat and clay democracy form regional zones of economic and political activity, when the iron like power of the British Empire and the US collapse.

Quantitative Easing has been underway since December 2008. During these 54 months, the Federal Reserve has created several trillion new dollars with which the Fed has monetized the same amount of debt.

One result of this policy is that most real US interest rates are negative. Another result is that the supply of dollars has outstripped the world’s demand for dollars.

These two results are the reason that the Federal Reserve’s policy of printing money with which to purchase Treasury bonds and mortgage backed derivatives threatens the dollar’s exchange value and, thus, the dollar’s role as world reserve currency.

To be the world reserve currency means that the dollar can be used to pay any and every country’s oil bills and trade deficit. The dollar is the medium of international payment. This is very helpful to the US and is the main source of US power. Because the dollar is the reserve currency, the US can cover its import costs and pay for its cost of operation simply by creating its own paper money.

If the dollar were not the reserve currency, Washington would not be able to finance its wars or continue to run large trade and budget deficits. Therefore, protecting the exchange value of the dollar is Washington’s prime concern if it is to remain a superpower.

The threats to the dollar are alternative monies–currencies that are not being created in enormous quantities, gold and silver, and Bitcoins, a digital currency (or undollar regional bartering schemes).

The Bitcoin threat was eliminated on May 17 when the Gestapo Department of Homeland Security seized Bitcoin’s accounts. The excuse was that Bitcoin had failed to register in keeping with the US Treasury’s anti-money laundering requirements.

Washington has stifled the threat from other currencies by convincing other large currencies to out-print the dollar. Japan has complied, and the European Central Bank, though somewhat constrained by Germany, has entered the printing mode in order to bail out the private banks endangered by the “sovereign debt crisis.”

That leaves gold and silver. The enormous increase in the prices of gold and silver over the last decade convinced Washington that there are a number of miscreants who do not trust the dollar and whose numbers must not be permitted to increase.

The price of gold rose from $272 an ounce in December 2000 to $1,917.50 on August 23, 2011. The financial gangsters who own and run America panicked. With the price of the dollar collapsing in relation to historical real money, how could the dollar’s exchange rate to other currencies be valid? If the dollar’s exchange value came under attack, the Federal Reserve would have to stop printing and would lose control over interest rates.

The bond and stock market bubbles would pop, and the interest payments on the federal debt would explode, leaving Washington even more indebted and unable to finance its wars, police state, and bankster bailouts.

Something had to be done about the rising price of gold and silver.

There are two bullion markets. One is a paper market in New York, Comex, where paper claims to gold are traded. The other is the physical market where personal possession is taken of the metal–coin shops, bullion dealers, jewelry stores.

The way the banksters have it set up, the price of bullion is not set in the markets in which people actually take possession of the metals. The price is set in the paper market where speculators gamble.

This bifurcated market gave the Federal Reserve the ability to protect the dollar from its printing press.

Previously, on Friday, April 12, 2013, short sales of gold hit the New York market in an amount estimated to have been somewhere between 124 and 400 tons of gold. This enormous and unprecedented sale implies an illegal conspiracy of sellers intent on rigging the market or action by the Federal Reserve through its agents, the BTBF that are the bullion banks.

The enormous sales of naked shorts drove down the gold price, triggering stop-loss orders and margin calls. The attack continued on Monday, April 15, and has continued since.

Before going further, note that there are position limits imposed on the number of contracts that traders can sell at one time. The 124 tons figure would have required 14 traders with no open interest on the exchange to sell all together in the same few minutes 40,000 futures contracts. The likelihood of so many traders deciding to short at the same moment at the maximum permitted is not believable. This was an attack ordered by the Federal Reserve, which is why there is no investigation of the illegality.

Note also that no seller that wanted out of a position would give himself a low price by dumping an enormous amount all at once unless the goal was not profit but to smash the bullion price.

Since the April 12-15 attack on the gold price, subsequent attacks have occurred at 2pm Hong Kong time and 2 am New York time. At this time activity is light, waiting on London to begin operating. As William S.Kaye has observed, no entity concerned about profits would choose this time to sell 20,000 to 30,000 futures contracts, but this is what has been happening.

Who can be unconcerned with losing money in this way? Only a central bank that can print it.

Now we come to the physical market where people take possession of bullion instead of betting on paper instruments. Look at this chart from ZeroHedge, The demand for physical possession is high, despite the assault on gold that began in 2011, but as the price is set in the non-real paper market, orchestrated short sales, as in the current quarter of 2013, can drive down the price regardless of the fact that the actual demand for gold and silver cannot be met.

While the corrupt Western financial press urges people to abandon bullion, everyone is trying to purchase more, and the premiums above the spot price have risen. Around the world there is a shortage of gold and silver in the forms, such as one-ounce coins and ten-ounce bars, that individuals demand.

That the decline in gold and silver prices is an orchestration is apparent from the fact that the demand for bullion in the physical market has increased while naked short sales in the paper market imply a flight from bullion.

What does this illegal manipulation of markets by the Federal Reserve tell us? It tells us that the Federal Reserve sees no way out of printing money in order to support the federal deficit and the insolvent banks. If the dollar came under attack and the Federal Reserve had to stop printing dollars, interest rates would rise. The bond and stock markets would collapse. The dollar would be abandoned as reserve currency. Washington would no longer be able to pay its bills and would lose its hegemony. The world of hubristic Washington would collapse. It remains to be seen whether Washington can prevail over the world demand for gold and silver. Can the dollar remain supreme when offshoring has deprived the US of the ability to cover its imports with exports? Can the dollar remain supreme when the Federal reserve is creating 1,000 billion new ones each year, while the BRICS, China and Japan, China and Australia, and China and Russia are making deals to settle their trade balances without the use of the dollar?

If the consumption-based US economy deprived of consumer income by jobs offshoring takes a further dip down in the third or fourth quarter–a downturn that cannot be masked by phony statistical releases–the federal deficit will rise. What will be the effect on the dollar if the Federal Reserve has to increase its Quantitative Easing?

A perfect storm has been prepared for America. Real interest rates are negative, but debt and money are being created hand over foot. The dollar’s demise awaits the world’s decision how to get out of it. The Federal Reserve can print dollars with which to keep the bond and stock markets high, but the Federal Reserve cannot print foreign currencies with which to keep the dollar afloat.

When the dollar goes, Washington’s power goes, which is why the bullion market is rigged. Protect the power. That is the agenda. Is it another Washington over-reach?

And Cliff Kule writes Charles Hugh Smith notes Chapter 12 of David Stockman’s new book The Great Deformation describes the realities of the end of the gold standard .. “Richard Nixon soon found that meeting the nation’s obligation to pay its debts in gold and to uphold the Bretton Woods system were distinctly inconvenient to his own reason of state: reelection in 1972 .. Severing the link to gold paved the way for the T-bill standard and a vast multi-decade spree of central bank debt monetization and money printing. Since a régime of floating-rate paper money had never been tried before on a global basis, the Keynesian professors and their Friedmanite collaborators can perhaps be excused for not foreseeing its destructive consequence. The record of the next several decades, however, eliminated all doubt. Freely printed money gave rise to a toxic deformation; the vast financialization of the world economy and the rise of endless carry trades, massive arrangements of speculative hedging, and monumental daisy chains of debts, owned by debts, owned by still more debts.”

“Like the bubonic plague, financialization has a lifecycle that cannot be reversed by Federal Reserve or European Central Bank intervention. Let’s pretend the Federal Reserve can force the financialization lifecycle back into expansion. Why do we need to pretend this can happen? Because the entire U.S. economy and its expansionist Central State now depends on ever-expanding financialization for its survival. Financialization is like the bubonic plague–it constantly needs new victims as it kills off its existing hosts .. What is financialization? Simply put, it is finance infecting and hollowing out all levels of an economy .. BUT you can’t create a new cycle of plague when the hosts are either dead or already infected. The world has run out of sectors that can be financialized; that plague has already killed or infected every corner of the global economy.”

On Tuesday, August 6, 2013, the world passed through peak prosperity, and peak stock wealth, as all forms of wealth, Gold, GLD, Silver, SLV, Commodities, DBC, World Stocks, VT, Major World Currencies, DBV, Emerging Market Currencies, CEW, and Credit, AGG, traded lower, as the Interest Rate on the US Ten Year Note, ^TNX, traded higher to 2.64%, on the exhaustion of the world central banks’ monetary authority.

Thus, an Elliott Wave 5 High was attained the week ending August 2, 2013, in World Stocks, VT, the S&P 500, SPY, the Russell 2000, IWM, Global Producers, FXR, Small Cap Pure Value Stocks, RZV, Dividend Growth, VIG, and a whole host of other ETFs, such as nation investment in Ireland, EIRL; and an Elliot Wave 2 High was attained in Utility Stocks, XLU, and Global Utilities, DBU.

Richard Evans, Investment Editor of The Telegraph, writes Rate rises threaten crash in every asset, relating that the value of almost all investments, including shares, bonds and property, could fall if investors believe that interest rates are about to return to normal, a senior fund manager has warned.

With the rise in the Interest Rate on the US Ten Year Note, ^TNX, to 2.64%, what Doug Noland of Prudent Bear terms the Global Government Finance Bubble, has burst.  Hyman P. Minsky identified five stages of the Credit Cycle, displacement, boom, euphoria, profit taking and panic; the profit taking stage has been reached, and the panic stage is coming very soon. The collapse of fiat investments will be seen in what were Liberalism’s fastest rising ETFs, XIV, FDN, CARZ, PBS, IGV, IBB, RZV, PSCI, FPX, PPA, IAI, SPHB, SMH, XRT, PJP, PSP, UJB, TAN, RXI, FLM, EIRL, IYC, EUFN, RWW, ITB, FXR, IGN, BJK, seen in this Finviz Screener.

The Business Cycle, specifically the Austrian Business Cycle, and the Kondratieff Cycle, is complete as nation states are no longer sovereign governors of economic and political activity, and are unable to provide seigniorage, that is moneyness, to investor’s choice of investments, currencies and credit, which featured a moral hazard based prosperity.

The Milton Friedman Free to Choose banker regime is no longer able to support Liberalism’s policy of investment choice, and its credit schemes, such as the debt trade of junk bond investing, JNK, and the currency carry trade of Eurozone investing, EUR/JPY, and the safe haven trade in US Banks, KRE, and the credit responsive US Small Caps, IWM, as the monetary policies of the world central banks, especially those of Ben Bernanke of the US Federal Reserve, have crossed the Rubicon of sound monetary policy, and have turned “money good” investments bad, as evidenced by the failure of Treasury Bonds, BWX, at the hand of bond vigilantes, calling interest rates higher, as well as the failure of currencies, such as the Indian Rupe, ICN, and the Brazilian Real, BZF, in ongoing competitive currency devaluation, at the hands of currency traders, selling currencies short.

With the failure of all forms of fiat wealth on August 6, 2013, Jesus Christ, acting at the helm of the Economy of God, that is in Dispensation, seen in Ephesians 1:10, has pivoted the world from the paradigm of Liberalism into the paradigm of Authoritarianism.

The Beast Regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, is now rising as the sovereign governor of economic and political activity, and to provide seigniorage, that is moneyness, to nannycrats and their regional statist rule over the factors of production, enforcing Authoritarianism’s policies of diktat, and schemes of debt servitude, establishing austerity over all of mankind.

The world central bankers, together with The Too Big To Fail Bankers, RWW, The European Financials, EUFN, and the Far East Financials, FEFN, defined Libealism’s money; and the Asset Manager, BLK, WDR, EV, STT, WETF, AMG, IVZ, CNS, AMP, PFG, LM, BX, FNGN, and BEN, seen in this Finviz Screener, coined Liberalism’s money.

With the August 6, 2013, financial marketplace trading, many are starting to distrust bankers and the institution of banking. Beginning with the announcment of QE 3 on On September 13, 2012, which provided for an open-ended commitment to purchase $40 billion agency mortgage-backed securities per month until the labor market improves “substantially”. The very nature of credit and money started to become not only inflated, but dangerously warped and distorted, so that now, the world central bankers and their policies no longer can serve as the basis for economic and political activity.

With the rise of the Interest Rate on the US Ten Year Note, ^TNX, on August 6, 2013, to 2.64%, Liberalism’s fiat money system died; and Authoritrianism’s diktat money system now serves as trust, medium of exchange, wealth and power.

With the rise of the ETF, JYN, beginning on May 24, 2013, trust in money as it has been construed, started to die. The rise of the baseline interest rate on May 24, 2013, to 2.01%, constituted an “extinction event”, that terminated Emerging Market Investment, EEM, and Utility Stock Investment, XLU. Now the rise of the interest rate on August 6, 2013, to 2.64%, constituted an “apocalyptic event” that terminated fiat money.

From August 6, 2013, forward, nannycrats, will set the rules for the formation of the new money, that being diktat money, which will determine everything else.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional leaders such as Jeroen Dijsselbloem, and  Michel Barnier, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability.

Reuters reports Stocks Drop After Comments From Fed’s Evans, Lockhart.  Stocks slid following comments from the presidents of the Atlanta and Chicago Federal Reserve Banks that the central bank could start reducing its bond-buying program as soon as September.  Fed may cut bond buys as soon as next month, Evans says And Fed could taper in September but doesn’t have to, Lockhart says.

Permabear Doomster reports The chart of Volatility holds moderate gains; Volatility, TVIX, and XVZ, rose.

Yahoo Finance reports all forms of fiat wealth traded lower as Aggregate Credit, AGG, traded, lower, as the Interest Rate on the US Ten Year Note, ^TNX, traded higher to 2.64%.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower.

The EUR/JPY closed lower again to close at 130.08, as the Yen, FXY, rose more than the Euro, FXE.

Commodities, DBC, such as Oil, USO, Natural Gas, UNG, Base Metals, DBB, Gold, GLD, and Silver, SLV, traded lower.

World Stocks, VT, traded 0.5% lower; stock sectors trading lower included the following:

US Infrastructure, PKB, 2.7%, traded lower on lower TREX, PGTI, EXP, USG, MAS,

Drug Stores, DRST, 2.2, traded lower on lower RAD, WAG, CVS,

Home Builders, ITB, 2.1,

Biotechnology, IBB, 2.1, on lower REGN, CELG, MNKD, BIIB,

Design Build, FLM, 1.5, traded lower on lower KBR, FLR, JEC, URS,

Global Producers, FXR, 1.5, traded lower on lower WHR, GM, IR, LYB, ERJ, SNE,

Transportation, XTN, 1.5, on lower, UNP, KSU, R,

Solar Stocks, TAN, 1.5,

Regional Airlines, REAI, seen in this Finviz Screener, traded lower 1.5% lower,

Small Cap Industrial, PSCI, 1.1, traded lower on lower HEES, WTS, JBT, KDN,

Retailers, XRT, 1.1, traded lower on lower BODY, PSUN.

Regional Banks, KRE, 1.0 on lower FFIN, FIBK, RF, NASB, CFFI, SUBK

Of note, the Russell 2000, IWM, traded 1.0% lower.

Metal and Mining sectors traded lower on prospects of diminished global growth.

Silver Miners, SIL, 7.0%

Junior Silver Miners, SILJ, 6.5, on lower SSRI

Gold Miners, GDX, 5.3 on South Africa’s, lower AU, GFI, HMY;  as well as IAG, AUY, BRD, NEM, BVN, NEM, RGOLD, GOLD and GG

Junior Gold Miners, GDXJ, 5.2, on lower JAG, ANV, TGD, NV, VGZ, SRA

Metal Manufacturing, XME, 2.5

Copper Miners, COPX, 2.0

Global Industrial Miners, PICK, 1.6

Uranium Miners, URA, 1.5

Rare Earth Miners, REMX, 1.5

Steel, SLX, 1.5%

Energy shares traded lower on a lower price of Oil, USO.

Small Cap Energy, PSCE, 1.8%, on lower EPM, CIE, PDCE, EGN, BCEI, GPOR, MRO,

Energy Service, OIH, and IEZ, 1.2, on lower HLX, EXH, OII,

Taiwan, EWT, South Korea, EWY, South Africa, EZA, led Nation Investment, EFA, lower.  India, INP, Russia, RSX, Brazil, EWZ, and China, YAO, led the BRICS, EEB, lower, as India Banks, HDB, and IBN, Brazil Banks, ITUB, BBD, BBDO, Chinese Financials, CHIX, and the Emerging Market Financials, EMFN, traded lower.  The Philippines, EPHE, Chile, ECH, and Argentina, ARGT, led Small Cap Nation Investment, IFSM, and the Emerging Markets, EEM, lower.

Ambrose Evans Pritchard reports India’s financial prophet Raghuram Rajan to run central bank.  India has picked Raghuram Rajan, the prophet of financial Armageddon, to take over the country’s central bank and avert a full-blown currency crisis as the economy hits the buffers

Yield Bearing sectors, Water Resources, PHO, Global Utilities, GBU, and Electric Utilities, XLU, traded lower.

On Wednesday, August 7, 2013,  World Stocks, VT, traded lower for a third straight day, on the failure of the world central banks’ monetary policies to stimulate global growth and corporate profitability.

Japanese Banks, NMR, MTU, SMFG, MFG, led the Nikkei, NKY, 1.9% lower, documenting a failure of Kuroda Abenomics, and the UK’s bank HBC, led EWU, lower, documenting that the inability of the Bank of England’s monetary policy of Forward Guidance to provide investment stimulus. Australia Bank, WBK, led Australia, EWA, lower, establishing that the Reserve Bank of Australia’s rate cute has had a toxic effect, and has turned money good investment bad.  Sectors trading lower included

Solar, TAN, -8.2,

Homebuilding, ITB, -2.2,

Retail, XRT, -1.4, on lower PSUN, EXPR, ANF, BKE, CBK, GCO,

Automobiles, CARZ, -1.2, on lower MGA, TEN, BWA, F, GM, DLPH, AXL, TRW

Semiconductors, SMH, -1.0, on lower ATML, TQNT, RMBS, TSM, MU,

Regional Banks, KRE, -1.0, on lower FFIN, STT, SNV, ORIT,

Small Cap Energy, PSCE, -1.5, and Energy, XOP,-1.5, on lower MRO, PDCE, GPOR, GDP, EPM, RRC, COG, BECI, KOG, ERF, all on a lower price of Oil, USO.

Asset Managers, such as BLK, seen in this Finviz Screener, traded 1.4% lower

Asia Excluding Japan, EPP, traded lower on lower Australia Dividends, AUSE, and China Financials, CHIX, which turned China, YAO, Australia, EWA, South Korea, Indonesia, and Malayasia, EWM, lower.  Taiwan, EWT, traded lower on lower Semiconductors TSM, and HIMX, and Semiconductor Material Manufactuer, UMC,

India Banks, IBN, and HDB, led India, INP, lower, the BRICS, EEB, lower. And

Chile, ECH, led Emerging Markets, EEM, lower.

Canadian Banks, TD, RY, BMO, BNS, CM, led Canada, EWC, lower.

CNBC reports Tesla posts surprise profit; shares jump 15%. Tesla reported a surprise second-quarter operating profit, causing the premium electric carmaker’s shares to jump more than 15 percent after the closing bell.

Yield bearing sectors trading lower included the following: BRAF, on the trade lower yesterday in Brazil’s Banks. Australia Dividends, AUSE, China Financials, CHIX, and China Real Estate, TAO.

Of note, the Euro Yen Currecny Carry Trade, EUR/JPY, traded lower once again to close at 128.68, as even though the Euro, FXE, rose, the Yen, FXY, blasted strongly higher. The JYN has been trading higher ever since bond vigilantes gained control of the Interest Rate on the US Ten Year Note, ^TNX, calling it higher to 2.01% on May 24, 2013.

Gary of Between the Hedges relates the Bloomberg report Fragile five currencies unravel as developing economies suffer.. Emerging market currencies, CEW, are trailing their peers in advanced economies by the most since 2009 as a global recovery eludes countries from China, YAO, to Brazil, EWZ. The 20 most-traded developing nation currencies tracked by Bloomberg weakened an average 5.3% against the dollar in the past three months, compared with a 1.1 percent gain for the six comprising IntercontinentalExchange’s Dollar Index, DYX. That’s the biggest gap since the height of the banking crisis four years ago. Kitco remarks Currency markets: the next crisis has begun.

The chart of the 200% US Dollar ETF, UUP, shows that the Dollar is falling to strong support, after a seven week down, suggesting that the Euro, FXE, will soon be trading lower.  Major World Currencies, DBV, and Emerging Market Currencies, CEW, are trading lower on competitive currency devaluation, causing debt deflation, in World Stocks, VT.  Money as it has traditionally been known died August 6, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose to 2.64%. A new money, that being ditat, perhaps better said diktat money, will arise out of a Minsky Moment, that is a sudden major collapse of asset values which is part of the credit cycle or business cycle, as foretold in bible prophecy of Revelation 13:3-4.

Soon diktat will serve as trust, medium of exchange, wealth and power, as leaders meet in summits to renounce national sovereignty and pool sovereignty regionally, for regional security, stability, and security, and to appoint nannycrats to oversee the factors of production and oversee regional commerce, trade, banking and fiscal spending, as presented by the Prophet Daniel in Daniel 2:25-45, as a Ten Toed Kingdom, and John the Revelator, in Revelation 13:1-4, as the Beast Regime.

Three Beasts are rising to rule mankind. The First Beast, that is the monster of Regional Goverance and Totalitarian Collectivism, is presented in Revelation 13:1-4. It is rising from the sovereign and banking insolvency of Mediterranean Sea nations of Portugal, Italy, Greece and Spain. It will give the Second Beast, that is the Little Horn of Daniel 7:20-25, presented in Revelation 13:5-10, as the Sovereign, his power. This individual is described in 2nd Thessalonians 2:3, 2nd Thessalonians 2:8, Daniel 9:25, Daniel 11:21, and Daniel 11:36.  And yet another beast, the Third Beast, the Seignior, is presented in Revelation 13:11-18. He will rise to accompany the Beast Regime, and the Sovereign, as the world’s banking and religious leader.

Tyler Durden of Zero Hedge reports Greek villagers chase tax collectors out of town.

Via Ekathermini.com A team of inspectors from the Financial Crimes Squad (SDOE), was on Tuesday heckled by locals at a village in Crete and coerced to leave, before a one-month closure order was issued against the owner of a taverna where the team was intimated, local media reported.

The SDOE team turned up at the village of Archanes in Iraklio as locals were celebrating their patron saint with a church fete. According to reports, local residents took offense that the tax inspectors chose that day to conduct raids on businesses for tax code violations. Their displeasure became more than apparent among a group of people at a large local taverna, who heckled the tax officers and threatened them with force if they did not leave the village. Last summer SDOE inspectors were prevented from leaving the Saronic island of Hydra by disgruntled locals. Police had to be sent from Athens to ensure their safe passage back to the mainland. Following Tuesday’s incident in Crete, the Finance Ministry issued orders for the taverna at which the intimidation was centered to be shut down for one month and for a complete audit to be conducted of its finances.

End Time Headlines reports Mexico and Canada declared part of US homeland by Senate maps. Senator Dianne Feinstein referred to the US, Canada and Mexico as “the Homeland” at an NSA Senate briefing on Wednesday, presenting a map that united the three nations as one. At a Senate Judiciary Committee meeting held to acquire details on the National Security Agency’s mass surveillance programs, Sen. Feinstein (D-Calif.) made a geographic mistake in which she united three large countries into one. The error went by without comment during the briefing, but generated a significant response upon closer examination of the map.

On Thursday, August 8, 2013 World Stocks, VT, World Small Cap Stocks, VSS, US Stocks, VTI,  Global Producers, FXR, and Small Cap Pure Value Stocks, RZV, rose on higher European, VGK, Eurozone, EZU, and European Financials, EUFN, while Semiconductors, SMH, Biotechnology, IBB, Pharmaceuticals, PJP, and Energy Partnerships, AMJ, traded lower. The 9% rise in Internet Banks, that is Online Banks, First Internet Bancorp, INBK, and the 6% rise in BofI Federal Bank, BOFI, gives a Grand Finale Salute to the Liberalism’s age of investment choice.  Liberalsim’s feartured Banker driven credit and carry trade investing schemes, producing a moral hazard based prosperity. Authoritarianism’s features Beast ruling debt servitude schemes, such as bank deposit bailins, new taxes, and capital controls, producing grining austerity.

Aggregate Credit, AGG, rose as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.59%.

The EUR/JPY rose to close at 129.4, as the Euro, FXE,  closed higher at 132.34, and the Yen FXY, closed lower at 101.15. The Swedish Krona, FXS, blasted higher, taking Sweden, EWD, higher.

Gold, GLD, rose 2.1% higher, and Silver, SLV, blasted 4.2, higher.

Sectors trading higher included

Junior Gold Miners, GDXJ, 9.2%, such as IAG, Gold Miners, GDX, 8.6, such as EGO, as Gold, GLD,  1.8%

Silver Miners, SIL, 8.1, such as SLW, and SSRI, 14.6, as Silver, SLV, 7.6%.

Copper Miners, COPX 5.0, as Copper, JJC, 2.6%

Industrial Miners, PICK 4.6, as Base Metals, DBB, 4.1%

Metal Manufacturing, XME, 4.1

Steel, SLX 2.9

Global Financials, IXG 1.2

Gaming, BJK 1.1

Internet Retail, FDN 1.0

Liberalism’s final currency carry trade and debt trade, carried Liberalism’s most volatile banks and their countries to rally highs.

Greece’s GREK, 9.0, NBG, 9.0

Ireland’s EIRL, 1.3, IRE, 7.6

UK’s EWU, 2.2, EWUS, 2.7, LYG, 2.1%, RBS 1.6

Australia’s EWA 2.9, WBK, 2.1%

Spain’s EWP, 2.0, SAN,  2.1

South Korea EWY, 1.0, WF, 3.0,  KB, 1.7, SHG 1.5

China’s YAO, 1.7, ECNS, 1.4, CHIX, 1.5

Germany Small Caps’ GERJ, 1.5, DB,1.8

Switzerland’s EWL, 0.4, UBS 1.6, CS, 1.5

Sweden EWD, 1.3

Taiwan EWT, 1.0

Emerging Markets, EEM, 2.0

Chile, ECH, 4.0

Poland, EPOL, 3.3

Peru, EPU, 2.8

Turkey, TUR, 2.5

Thailand, THD, 2.4

Mexico’s, EWW, 2.3, Financo Santander, BSMX, 3.2%

Argentina’s  ARGT, 1.6,  BBVA, 2.2, GGAL, 1.4,  BMA, 0.1, BFR, 0.1

Philippines, EPHE, 1.1

The BRICS, EEB, 2.5

Brazil, EWZ, 3.2

India, INP, 3.0

China, YAO, 1.8

Russia, RSX, 1.0

Yield bearing sectors trading higher included

DRW, 1.8

DBU, 1.5

PSP, 1.0

IST, 0.8

SEA, 0.5

XLU, 0.4

Dig And Dirt Mining Stocks, such as MIW, seen in this Finviz Screener, 1.2%

The Eurozone Stocks, EZU, rose 1.4, propelled higher by the European Financials, EUFN, 1.0; it was the Eurozone Countries, Spain, EWP, Italy, EWI, Netherlands, EWN, Greece, GREK, Ireland, EIRL, Germany, EWG, as well as Sweden, EWD, and their banks, SAN, NBG, IRE, DB, that drove Small Cap Nation Investment, IFSM, as well as Nation Investment, EFA, to rally highs, despite the fact that the Eurozone, EZU, is characterized by insolvent sovereigns and insolvent banks.

Ambrose Evans Pritchard communicates that Greece is a failed nation state Greece becoming new Kosovo as youth jobless hits 65pc. Greek youth unemployment has soared to a record 64.9pc as the country’s downward spiral continues almost unchecked.  Everyday news reports communicate that God’s Word of prophecy in Revelation 13: 1-4, is proving true. Out of waves of Mediterranean Sea nation state chaos, He is bringing forth a Beast regime, to occupy in all of mankind’s seven heads, that is each of humanity’s seven institutions; and to rule in every one of the world’s ten horns, that is in each of the globe’s ten regional zones. This monster is the same as the same as the Ten Toed Kingdom seen in the Statue of Empires in Daniel 2:25-45. Apocalypse Blog provides a summary of the rise of a  New World Empire.

Tobias Adrian and Michael Fleming write in Federal Reserve Bank article The recent bond market selloff in historical perspective “What Explains the Bond Market Selloff? Are investors expecting higher short-term rates in the future than just a short time ago? Or can some, or all, of the rise in yields be explained by an increase in the term premium, so that investors are demanding greater compensation for the risk of holding longer-term Treasuries? To answer these questions, we use the ten-year, zero-coupon term premium estimates from Adrian, Crump, and Moench (2008) and, for each selloff, cumulate the returns that can be explained by changes in the term premium alone. Our findings, reported in the chart below, suggest that nearly all of the recent increase in yields can be explained by a rising term premium.”

I comment that I reject that expalanation, I believe that the bond market sell off beginning in May 2013, reflects that bnd vigilantes are again calling the Interest Rate on the US Ten Year Note, ^TNX, higher, on the conviction that the World Central Banks, credit schemes, especially those of Ben Bernanke of the US Federal Reserve, have crossed the Rubicon of sound monetary policy, and have turned “money good” investments bad.

The authors continue “Lastly, we present a table listing attributes of the fifteen largest bond market selloffs since 1961. The three selloffs highlighted in this post—1994, 2003, and 2013—are ranked fifth, ninth, and thirteenth, respectively, and are highlighted in blue. Beyond reporting figures behind the earlier discussion, the table shows the change in the ten-year, zero-coupon yield and in the spread between the ten-year and three-month yields between the start of each selloff and the maximum selloff date. Of note, the recent episode and 2003 are instances in which the yield spread moved almost as much as the ten-year yield itself (that is, the three-month yield rose little), explaining the importance of the term premium in those cases. In contrast, the 1994 episode is one in which the yield spread rose little (that is, the three-month yield increased almost as much as the ten-year yield), explaining the importance of short-term rate expectations in that case.”

I comment that the authors are correct in relating “Of note, the recent episode and 2003 are instances in which the yield spread moved almost as much as the ten-year yield itself (that is, the three-month yield rose little), explaining the importance of the term premium in those cases.”  The yield spread is seen in the 10 30 US Sovereing Debt Yield Curve, $TNX:$TYX, steepeing, that is in the Steepner ETF, STPP, jumping sharply.

The significance of the bond market selloff is three fold. First, with the rise of the ETF, JYN, beginning on May 24, 2013, trust in money as it has been construed, started to die. Secondly, the rise of the baseline interest rate, that is ^TNX, on May 24, 2013, to 2.01%, constituted an “extinction event”, that terminated Emerging Market Investment, EEM, and Utility Stock Investment, XLU. Thirdly, the rise of the interest rate on the US Treasury Note, ^TNX, on August 6, 2013, to 2.64%, constituted an “apocalyptic event” that terminated fiat money. The rise of JYN to strong resistance at 60, and its oppsite, the Japanese Yen, FXY, to strong resistance at 101, suggests that the rally in the Euro, FXE, is complete at 132.50, and that there will be a strong unwinding of Liberalism’s master currency carry, the EUR/JPY from its weekly close at 128.5

On Friday, August 9, 2013, the Financial Markets traded bascially unchanged from yesterday, with the exception of the metal manufacturiang and mining sectors which continued higher as follows

Industrial Miners, PICK 3.9

Copper Miners, COPX 3.8

Coal Miners, KOL 3.2

Steel Producers, SLX 3.4

Metal Manufacturing, XME 2.8

Gold Miners, GDX 1.8, Junior Gold Miners, GDXJ 1.9

Silver Miners, SIL 4.5, Junior Silver Miners, SILJ 9.8, Silver Standard Resources, SSRI 4.2

2) … US Stocks And World Stocks Trade Lower …. While European Stocks, Eurozone Stocks, Small Cap Nation Investment, And Nation Investment Rally To New Market Highs

This week, Risk On, has turned to Risk Off, OFF, as is seen in the Risk Off ETN, OFF, rising

The interest rate on the US Ten Year Note, ^TNX, closed at 2.58%; Aggregate Credit, AGG, rose 0.3% for the week.

The chart of the S&P 500, $SPX, shows a 1.1% trade lower.

Sectors trading higher this week included:

Life Insurance, ING 8.4

Industrial Miners, PICK 5.6

Copper Miners, COPX 5.5

Steel Producers, SLX 5.4

Metal Manufacturing, XME 3.8

Coal Miners, KOL 3.6

The Eurozone. EZU 1.3

Europe, VGK 1.3

Shipping SEA, 1.2

Internet Retailing, FDN, 1.2

Mining sectors traded as follows: Silver Standard Resources Inc, SSRI, 12.0, Silver Miners, SIL 5.3, Junior Silver Miners, SILJ, 3.6, Junior Gold miners, DXJ 6.1, Gold Miners, GDX 3.4

Sectors trading lower this week included:

Homebuilding, ITB -5.2

US Infrastructure, PKB -3.0

Biotechnology, IBB -2.8

Small Cap Energy, PSCE -2.6

Inverse Volatility, XIV -2.6

Transportation, XTN, -2.5

Retail stocks, XRT, -2.2 as Market Watch reports Retailers’ July sales, warnings add to unease about consumers, back to school.

Too Big To Fail Banks, RWW -2.1

Regional Banks KRE -2.0

Semiconductors, SMH, -1.8

Investment Bankers, KCE -1.7

Stock Brokers, IAI -1.3

Pharmaceuticals, PJP -1.5

Global Producers, FXR -1.4

Media, PBS, -1.3

Small Cap Industrials, PSCI -1.2

Solar Energy, TAN, -1.2

Utilities, XLU, -1.1

Global sectors trading lower this week included

The Nikkei, NKY -2.8

US Stocks, VTI, -0.9,

Emerging Markets, EEM, -0.9

World Stocks, VT, -0.4

Small Cap Pure Value, RZV, -0.4

Global sectors trading higher this week included

European Stocks, VGK, 1.9

Eurozone Stocks, EZU, 1.2

Small Cap Nation Investment, IFSM, 1.2

The BRICS, EEB, 0.6

Asia Excluding Japan, EPP, 0.6

Nation Investment, EFA, 0.3

European Debt, EU, 4.4

Commodities traded as follows this week

Oil, USO -0.9 and Natural Gas, UNG -3.6

Gold, GLD 0.4 and Silver, SLV 3.3

Base Metals, DBB 4.0, and Copper, JJC, 4.7

Agriculture, RJA 0.2 and Agriculture, JJA -0.2

Commodities, DBC -0.7

Financial Survival Network report Hgher education and finance are getting the ax, Jim Rogers relates. And Finance My Money reports The bursting law school bubble: Cash cow law schools are facing 30 year lows in applications as applicants confront high tuition and low wages. And My Budget 360 reports The accelerating race to a student debt implosion: Federal student loans rose by $266 billion since 2011. 85 percent of consumer debt growth since 2011 because of student debt. This week Education Service Companies, such as DV, seen in this Finviz Screener, traded lower.

This week Real Estate Development Companies, such as JOE, seen in this Finviz Screener traded lower.

This week Major Airlines, such as DAL, seen in this Finviz Screener, traded lower.

This week Regional Airlines, such as RJET, seen in this Finviz Screener, traded lower.

This week Asset Managers, such as BLK, seen in this Finviz Screener, traded lower.

This week Staffing Services, such as KELYA, seen in this Finviz Screener, traded lower.

Marc Faber relates in CNBC interveiw It’s time to short sell stocks; yet I suggest that one take physical possession of gold bullion, as it and diktat, will be the only forms of sovereign wealth in the age of Authoritairanism.

If one is going to short sell, I  suggest that one sell the 30 ETFs, seen in this Finviz Screener short; these include  XIV, FDN, CARZ, PBS, IGV, IBB, RZV, PSCI, FPX, PPA, IAI, SPHB, SMH, XRT, PJP, PSP, UJB, TAN, RXI, FLM, EIRL, IYC, EUFN, RWW, ITB, FXR, IGN, BJK, PBJ, ING, with the last suggestion being a proxy for life insurance companies.

Zero Hedge reports Stock market bubbles and record margin debt: A repeating  history of ignoring all warnings.

In Surveillance State news, Antiwar reports Obama claims broad surveillance powers

Pete Carey writes in San Jose Mercury News, Bay Area real estate market is hot even in hardest-hit areas. With Bay Area home prices at levels not seen in nearly five years, the communities hit hardest by the housing crash are starting to boom again. From Oakley and Antioch to East Oakland, East Palo Alto and East San Jose, all-cash offers and free rent for a month for sellers are sweetening bids as a swarm of move-in buyers and investors compete for a relatively small number of homes for sale. And Oregon Live reports Portland’s accelerating real estate market stands out among major cities. And Charlotte Observer relates Charlotte home sales up 33%.

Robert Wenzel in Economic Policy Journal article Milton Friedman as nothing but an extended footnote writes Friedman’s key contributions to macroeconomics look hard to defend.

I comment that Milton Friedman was God’s point man, that is God’s appointed one from eternity past, who called forth the Free to Choose, floating currency Banker Regime of democratic nation states; this economic genius encouraged President Nixon to go off the gold standard, and through inflationism create the US Dollar Hegemonic Empire that now rules the world. Milton Friedman’s contribution to liberalism was that bankers, corporations, government, entrepreneurs, and citizens of democracies became the legislators of economic value and the legislators of economic life.  Milton Friedman was the Father of liberalism policy of investment choice, as well as the father of its schemes of currency carry trade investing and debt trade investing.

Without Milton Friedman, and the Speculative Leveraged Investment Community, consisting of Investment Bankers, KCE, such as JPMorgan, JPM, the Stock Brokers, such as Etrade, ETFC, and Asset Managers, such as BlackRrock, BLK, and WisdomTree, WETF, investors could never have profited from Nation Investment, EFA, and Small Cap Nation Investment, IFSM, such the US VTI, IWM, its banks, BAC, and RF, Ireland, EIRL, and its bank IRE, or the UK, EWU,  EWUS, and its banks,  LYG, and RBS, Global Producer Investment, FXR, such as International Paper, IP, Small Cap Pure Value Investing, RZV, such as Pacific Sunware, PSUN, and Investing in Vice Stocks, with Fidelity Investments, VICEX, mutual fund.

Perhaps Mr. Wenzel’s criticism stems from liberalism’s moral hazard based prosperity and clientelism, which is devoid of genuine meritocracy and full of taxation of every type on personal property, govenment intervention and liberal intervention throughout the world.

Jason Ditz of Antiwar reports Israel rejects deal on EU grants over settlement opposition. I comment that the Bible in Daniel 9:26-27, tells of a time when the soon coming Eurozone’s leader, the Sovereign, will confirm a middle east peace treaty, in what will turn out to be a seven-year deal; the middle of which will see the Sovereign move his governmental headquarters to Jerusalem, where he will defile the then existing Jewish Temple, and demand that the whole world worship him.

CoG in article communicates that a type of revived Roman Empire is coming. There are several reasons that this “prince” is referring to the leader of the developing European empire (see King of the North and Europa, the Beast, and the Book of Revelation). One is that it was the people of the Roman Empire of the 1st century that fulfilled the portion of Daniel 9:26 as they destroyed the city (Jerusalem) in 70 A.D. The European Union includes much of the land and peoples that were part of the ancient Roman Empire.  And it is the “prince” coming from that people that verse 27 is referring to. Thus, this prophecy tells us that a lower level European leader will officially start to rise up about 3 1/2 years before the great tribulation (and yes, according to Jesus, some “tribulation” does happen prior to the start of the Great Tribulation). Another is the fact that the “beast of the sea” (Revelation 13:1) fits with the beasts from the “great sea” (Daniel 7:2)–and that is the Mediterranean Sea according to the Old Testament–hence this is an empire like the old Roman one (for more details, please see Europa, the Beast, and the Book of Revelation).

The idea of this being a seven-year end-time deal was also understood by the Catholic theologian Hippolytus (died 235) in the third century: the iron and the clay shall be mingled together. Now Daniel will set forth this subject to us. For he says, “And one week will make a covenant with many, and it shall be that in the midst (half) of the week my sacrifice and oblation shall cease.” By one week, therefore, he meant the last week which is to be at the end of the whole world of which week the two prophets will take up the half. For they will preach 1,260 days clothed in sackcloth, proclaiming repentance to the people and to all the nations. (Hippolytus. On Christ and Antichrist, Chapter 43. Online edition Copyright © 2008 by Kevin Knight).

While the leader in Daniel 9:27 is only referred to as a prince when he confirms the one week covenant, he probably will not be known as the “King” until shortly before he breaks the covenant at the mid-week point (most likely he will be considered simply one of several leaders negotiating a treaty when this deal in Daniel 9:27 is initially made). The two witnesses (who are prophets) rise up around the mid-point of the week. The iron and clay mingled together refers to a power (like Europe) that is not totally cohesive.

Although he has several events out of sequence, even the famed Protestant theologian John Walvoord understood the importance of the deal in Daniel 9:27: The seven-year peace treaty with Israel; consummated seven years before the second coming of Christ (Dan. 9:27; Revelation 19:11-16). (Walvoord J. The Prophecy Knowledge Handbook. Victor Books, 1990, p. 551)

Why is this believed to be a peace deal? There are several reasons, but notice some other scriptures that discuss this leader:

25 And through his policy also he shall cause craft to prosper in his hand; and he shall magnify himself in his heart, and by peace shall destroy many: he shall also stand up against the Prince of princes; but he shall be broken without hand. (Daniel 8:25, KJV).

23 And after the league is made with him he shall act deceitfully, for he shall come up and become strong with a small number of people. 24 He shall enter peaceably, even into the richest places of the province; and he shall do what his fathers have not done, nor his forefathers: he shall disperse among them the plunder, spoil, and riches; and he shall devise his plans against the strongholds, but only for a time. (Daniel 11:23-24, NKJV)

So this leader gives people the impression that there will be “peace” and is involved in some type of deal. Term is translated as “peace” in Daniel 8:25 is from the Hebrew term shalvah and essentially means security. In other words, this leader will destroy “many” who are under the impression that they are secure because of some type of security arrangement. Such arrangements are now commonly referred to as peace deals. But as the prophesied one has not been confirmed, at least not publicly, the Great Tribulation would seem to be at least 3 1/2 years away (you may also wish to watch a YouTube video titled Can the Great Tribulation Begin in 2013?).

While the Israelis do not like what the Europeans are now proposing, the time will come that they will feel that they have no choice but to enter in a major deal involving the Europeans.  A covenant that Bible prophecy teaches that the Europeans will break (Daniel 9:27; 11:31; Matthew 24:15) and that Israel will come to regret.

Some articles of possibly related interest may include the following; Jerusalem: Past, Present, and Future What does the Bible say about Jerusalem and its future? Is Jerusalem going to be divided and eliminated? Is Jesus returning to the area of Jerusalem? Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is a link to a video titled Can You Prove that the Beast to Come is European?

Jerusalem Post reports Germany will never be nutral on Israel, Merkel says. German chancellor criticizes settlements, but says crime of Holocaust will always be present, ensuring special relationship.

And also bible prophecy foretells that the Ezekiel 38 War is coming soon. Reuters reports US, Russia agree to prepare for Syria peace talks. And in comment, Sign Posts of the Times writes Today’s prophecy sign is The rise of Magog, (Russia), as an endtimes world power.  We believe that God has yet to judge Russia for her role in past world affairs. This is why God will reel-in Russia with a hook to the jaw and drag her into a conflict in the Middle-East. He will judge the leadership of Russia and destroy much of her armies, however the land of Russia will be spared and we pray a great many Russian people will come to faith as they witness these events during this coming time of war.  As presented in Ezekiel 28:14-15, “Therefore, son of man, prophesy and say to Gog: This is what the Sovereign Lord says: In that day, when my people Israel are living in safety, will you not take notice of it? You will come from your place in the far north, you and many nations with you, all of them riding on horses, a great horde, a mighty army.”

As the Economic Collapse Blog writes The rise of the Bear: 18 signs that Russia is rapidly catching up to the United States. The Russian Bear is stronger and more powerful than it has ever been before. Sadly, most Americans don’t understand this. They still think of Russia as an “ex-superpower” that was rendered almost irrelevant when the Cold War ended. And yes, when the Cold War ended Russia was in rough shape. I got the chance to go over there in the early nineties, and at the time Russia was an economic disaster zone. Russian currency was so worthless that I joked that I could go exchange a 20 dollar bill and buy the Kremlin. But since that time Russia has roared back to life. Once Vladimir Putin became president, the Russian economy started to grow very rapidly. Today, Russia is an economic powerhouse that is blessed with an abundance of natural resources. Their debt to GDP ratio is extremely small, they actually run a trade surplus every year, and they have the second most powerful military on the entire planet. Anyone that underestimates Russia at this point is making a huge mistake. The Russian Bear is back, and today it is a more formidable adversary than it ever was at any point during the Cold War.

Silver bulls believe that the futures market price is artificially determined and the recent upward price direction is pressing for price discovery. This is simply balone, silver is now and always will be an industrial metal used in the production of physical goods. The current futuress price of Silver, SLV, simply reflects what traders belive “buyers and sellers are willing to pay”; yet many silver mining companies such as Silver Wheaton, SLW, and Silver Silver Standard Resources Inc, SSRI, have contracts to produce at whatever the market price is, no matter what price the silver market is calling.

The chart of Silver Wheaton, SLW, suggests that it can comfortably produce silver at the current price, and as such, the price of Silver, SLV, and the producer will not be going up. As for Silver Standard Resources, SSRI, its chart shows no price earnings for next year, and as such, its stock price will not be going up; it’s production of silver will not be influencing market price. This means that the price of Silver Mining Stocks, SIL, and Silver, SLV, have seen their market tops as of August 9, 2013.

Emma Rowley of the Telegraph reports City economists say Eurozone recession is over. The eurozone has exited its longest recession since records began, official figures are expected to show this week.

Kevin O’Rourke posts in Irish Economy Cross of Euros.  Alan Taylor and I have a new paper on the never-ending crisis in the Eurozone (and yes, the crisis is still with us, unless you regard mass unemployment as a matter of no concern, and has a way to run yet). It is available here.

Mike Mish Shedlock asks When will the Spanish banking system collapse, and cites the CFR article, Will Portugal bring down the Spanish banking sector?  “Without an SMP to mutualize Spanish bank exposure to Portugal, the way it mutualized French bank exposure to Greece, delaying a Portuguese restructuring will also do nothing to help Spain weather the shock. The euro area has already lent Spain €41.3 billion to recapitalize its banks, finding a politically palatable way to convert that debt into mutualized eurozone equity may be a necessary cost of sustaining the European single currency.”

And Mr. Shedlock writes The problems in Europe are structural and many. The euro is a structural problem, the “one size fits Germany” interest rate policy by the ECB is a structural problem, trade deficit settlement via Target 2 mechanisms is a structural problem. Work rules, pensions, and unions are a structural problem of varying magnitude in various countries, with Greece, Italy, Spain, and France at the top of the list. Spending money countries do not have can hardly be a solution to those structural issues! Pray tell Ambrose, (writing in article article Defend Europe, if you still dare), what good would it do? What problems does it fix? The same applies to monetarist idiocy of printing more money and having all of it sit as excess reserves at banks.   It is the Austrian-eurosceptics that have it right. The eurozone needs to break up. Greece, France, Italy, Spain, and Portugal are in serious need of work rule reform, pension reform, and public sector reforms of all sorts.

I comment that it was Thursday August 8, 2013, slight rise in the EURJPY, that gave the Eurozone Stocks, EZU, their 1.4 blast higher on the day, completing a Year to Date gain of 33%, and a seven week rally gain of 11%.

In the last month, Greece’s, GREK, National Bank of Greece, NBG, Ireland’s, EIRL, Bank of Ireland, IRE, and Spain’s, EWP, Banco Santender, SAN, as seen in their ongoing combined Yahoo Finance Chart, and the whole spectrum of Eurozone Banks, EUFN, took the Eurozone Stocks, EZU, such as DEG, MT, CCH, ING, VE, ST, TS, ENL, CRH, CNH, ALU, BUD, ENL, LUX, NOK, RYAAY, SNY, PHG, COVI, SI, IR, ELN, VPRT, ICLR, NVO, seen in this Finviz Screener, higher to new rally highs as is seen in their combined onongoing Yahoo Finance chart.

Yahoo Finance chart shows that the nation of Ireland, EIRL, has been a Liberalism investment superstar, this is seen in its Finviz Chart, which shows that it provided a 57% return over the last year.

Philip Lane in The Irish Economy posts Journal of Economic Perspectives (Summer 2013).  In addition to Kevin’s paper, there are several others on the euro crisis.  In addition, there is a symposium on the “top one percent”. All papers free online (or download the whole issue free): here.

And Philip Lane posts Writers on the Irish Crisis. Tana French has an op-ed in the New York Times here. Enter the Legends of the Fall contest run by the Irish Times here.

Liberalism’s final inflationism resulted in a crack up credit boom, that provided a safe haven rally in US Regional Banks, RWW, and a currency carry trade and debt trade rally in the Eurozone, EZU, Global Producers, FXR, European Financials, EUFN, and Emerging Market Financials, EMFN, as is seen in the ongoing Yahoo Finance Chart of KRE, RWW, EMFN, EUFN, FEFN, FXR, RZV, EZU, which gave seigniorage, that is moneyness to Small Cap Nation Investment, IFSM, as is seen in the ongoing Yahoo Finance Chart of Eurozone Countries, Greece, GREK, Spain, EWP, and Emerging Market Countires, Mexico, EWW, Argentina, ARGT, Mexico, EWW, Poland, EPOL, and China Small Caps, ECNS.  Mexico, EWW, stocks rising strongy have included AMX, MXT, GMK, IBA, CX, TV, ASR, OMB, PAC, seen in their ongoing Yahoo Finance Chart.

Liberalism’s grand finale inflationism, coming from a rising Yen, FXY, and an even greater rising Euro, FXE, that is from a rising EURJPY, since May 21, 20123, to close August 9, 2013, at 128.34, seen here in this Action Forex chart report, when the Interest Rate on the US Ten Year Note, ^TNX, began to rise, which stimulated the Eurozone Stocks, EZU, to rise, and blasted European Debt traded by the Wisdom Tree ETF, EU, 4.4% higher for the week, as is seen in the ongoing Yahoo Finance Chart of FXY, FXE, EZU, and EU.

Usually it is debt, that is credit, gives seigniorage, that is moneyness to stocks; but not the week ending August 9, 2013, as just the opposite happened: investment demand for Eurozone Stocks, EZU, and especially European Banks, EUFN, was so strong that it drove Eurozone Debt, EU, up 5.0% over the last month.

Despite the rally in Greece, GREK, Ireland, EIRL, and Spain, EWP, all of the Eurozone southern periphery nations, that is the PIGS, are insolvent sovereigns, and their collective banks, the European Financials, EUFN, are insolvent sovereigns, which were given temporary seigniorage through the ECB, in a Risk On, ONN, currency carry trade rally, based upon the most toxic of liberalism’s Treasury Debt, BWX.  Of note, this week, Risk On, has turned to Risk Off, OFF, as is seen in the Risk Off  ETN, OFF, rising.

Austrian Economist Robert Wenzel reports The Ron Paul Channel Launches.

Austrian Economists have always called for a sound money system, yet with Jesus Christ at the helm of the Economy of God, presented in Ephesians, 1:10, from Friday August 9, 2013, forward, nannycrats will set the rules for the formation of the new money, that being diktat money, which will determine everything else.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, sale of a country’s central bank’s gold reserves, fiscal councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, and statist public private partnerships which oversee regional economic commerce, trade, and the factors of production, when sovereign regional leaders such as Jeroen Dijsselbloem, President of the Eurogroup, and Michel Barnier, EU Commissioner responsible for internal market and services, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability.

One should consider expatriate internationalized living, and even becoming an international person, Munkee writes Here are the mny bnefits of hving a bank account in Hong Kong. Simon Black of SovereignMan writes Hong Kong is an excellent place to bank. One of the best in the world, in my opinion. Why? Because the banks are strong, stable, innovative, and well-capitalized [and account holders] are free to choose what currency to accept (and save), whether HK dollars, US dollars, Chinese Yuan, gold, or anything else. And Darren Kaiser writes in Doug Casey’s Sovereign Man Chile to join US Waive Program. Countries listed in the Visa Waiver Program are listed below. Successfully joining the Visa Waiver Program means Chile would become a better option for Americans seeking a second passport, if they are considering renouncing their US citizenship one day. After Chile has joined the program, an American could obtain Chilean citizenship, give up their US passport, and still return to the US visa-free for up to 90 days. There are plenty of people who would like to renounce US citizenship but still would like to have the option to travel to the US occasionally, without the headache of applying for a visa. Obtaining Chilean citizenship after Chile has joined the Visa Waiver Program would allow them to do just that. Bensos te writes Americans are diching citizenship in record numbers, Part 2

Benson te writes Quote of the Day: Why capitalism is awesome.

In response, an inquriig mind asks, has it been human ingenuity seeking financial reward and/or intellectual reward in market economy that has provided great innovations and success in human endeavors, or has there been a movement of God’s Spirit, specifically the Mystery of Christ, operating through providence and appointment, that is destiny, providing the genius for innovation and development, as presented in 2 Corinthians 5:17-18, all within the Economy of God, that is dispensation, as presented in Ephesians 1:10?

The Nikkei is terribly overleveraged investments. The New York Times writes Japan’s debt looks like this: 1,000,000,000,000,000 Yen.  Booomberg writes Japan’s Debt exceeds 1 quadrillion Yen as Abe mulls tax rise. The Telegraph writes Just set fire to Japan’s quadrillion debt. And Benson te writes Japan’s ponzi finance: Public debt tops quadrillion Yen mark! And Zero Hedge reports A Japanese crisis nears.

Chris Rossini writes in Economic Policy Journal aricle The Ameican Democracy Pitch. The neocon Senators preach: “Our main message in Cairo was simple and straightforward: Democracy is the only viable path to lasting stability, national reconciliation, sustainable economic growth and the return of investment and tourism in Egypt. And democracy means more than elections. It means democratic governance: an inclusive political process in which all Egyptians are free and able to participate, so long as they do so nonviolently; the protection of basic human rights through the rule of law and the constitution; and a state that defends and fosters a vibrant civil society.” I have a different proposal for the Egyptian people, and it’s called Liberty …. more here … Only liberty, free markets, private property, and sound money will save you. And it’s the only thing that will save Americans as well.

I comment that Jesus Christ, operating in Dispensaion, that is the economic and political administration plan of God for both the fulfillment and completion of every Age, enabled the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher to on May 21, 2013, to 2.41%, terminating Liberalism’s  policy of political freedom and its schemes of investmen choice, and He is introducing Authoritarianism’s policy of diktat and schemes of debt servitude

The the only thing that will save anyone is the life of Jeusus Christ, which comes by faith in Him, and recognition that He is the Eternal King, possessing the Key of David, that is the rightful rule of Kindgom of God, and that He will be successful in introducing a Ten Toed Kingdom with toes of iron diktat and clay democracy, in each of the world’s ten regions, out of the hubris of the destruction of the iron rule of British Empire and the US Dollar Hegemonic Empire, as presented in Daniel 2:25-45.

This global monster is the same as the Beast Regime that is rising out of waves of Mediterranean Sea nation state chaos to replace the Banker Regime. He is bringing forth this monster to replace the Creature from Jekyll Island, to occupy in all of mankind’s seven heads, that is each of humanity’s seven institutions; and to rule in every one of the world’s ten horns, that is in each of the globe’s ten regional zones, presented in Revelation 13:1-4.

Please consider that reality exists only in Christ, Colossians 2:17. And that He is Grace, that is Resource, and He is Truth, that which is reliable for believe, as well as  that which is a trustworthy promise, John 1:17, and that the elect worship God’s will, John 4:23-24, while the fiat worship their own will in philosophy or religion, Colossians 2:23, and in so doing God sets one free indeed John 8:36. Thus choice is an illusion, and for the mature believer in Christ, one comes to see Christ as the his inclusive life experience, Colossians 3:11, the mature in Christ believe that God makes all of one’s decisions. Those who have life in Christ, are ever maturing in the only right there is, and finding genuine freedom therein, as put forth in John 1:12, “But as many as received Him, to them He gave the right to become children of God, to those who believe in His name.” The more I manifest in Jesus Christ, the more freedom I have, and the more splendid child of God I become. Inasmuch as Jesus Christ is operating at the helm of the Economy of God, Ephesians 1:10, and is pivoting the world from Liberalism’s age of investment choice and terminating it’s moral hazard based prosperity, to bring forth Authoritarianism’s age of nannycrats’ mandates of debt servitude and austerity, I simply go by the motto “Whatever the Lord provides for me is fine”. Through difficulty, through oppression, through loss, through every trial and temptation, I say “His Grace is sufficient for me”.)