Archive for October, 2013

The New Economic And Political Paradigm Of Authoritarianism Emerges To Establish A Eurozone Banking Union And Fiscal Union Featuring The Diktat Of Nannycrats As Jesus Christ Opens The First Seal Of The Scroll

October 28, 2013

Financial Market Report for the week ending October 25, 2013

1) … Under the new economic and political paradigm of authoritarianism, fiscal policy is established by the diktat of regional nannycrats. Please consider the concept that the economic and political paradigm of liberalism stands at its zenith, as is seen in the Weekly Finviz Chart of Global Financials, IXG, showing 30% gain over the last year, as the Banker Regime has established a Washington US Dollar Hegemonic Empire, greatly rewarding investment choice providing a moral hazard based prosperity, based upon schemes of credit liquidity and carry trade investing.

Yet, the world is at an epic inflection point.

Jesus Christ, operating in the Economy of God, as revealed by the Apostle Paul in Ephesians 1:10, that is operating in the administration of all things economic and political, is pivoting the world into the economic and political paradigm of authoritarianism, where the Beast Regime will establish the Ten Toed Kingdom of regional governance and totalitarian collectivism, where in the Eurozone a fiscal union creates fiscal policies of diktat providing “the new normal” of austerity, based upon schemes of debt servitude.

I relate that The Dispensation Economics Manifest presents that the democratic nation state theory of money is being replaced by the regional governance theory of money; said another way, the fiat money system is being replaced by the diktat money system.

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

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

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

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

On Monday, October 21, 2013, trading manifested as deflationary, as in a turn lower from market highs.

Zero Hedge reports Yen Drops, Nikkei Pops On Japan’s Worst Trade Deficit On Record. In overnight trading,  In  Japan, The Nikkei, NKY, traded 0.9% higher, as the Japanese Yen, FXY, came under pressure and traded lower on slowing export growth and on reaffirmed central bank commitment to provide ultra loose monetary.  Roger Bootle of The Telegraph reports It’s Not Yet The End Of The World As We Know It, But Watch Japan’s Debt Grow. Japan has managed to muddle through, but it now looks as though it is close to a tipping point.  And Reuters reports Tokyo Steel, Wary Of  Imports Threat, Keeps November Prices Mostly Unchanged.

The National Bank of Greece, NBG, rose strongly. Eurozone Stocks, EZU, traded unchanged at their rally highs, while the European Financials, EUFN, traded slightly lower, while the EUR/JPY carry trade, closed slightly higher at 134.33, as the Euro, FXE, closed unchanged at 135.33, and the Yen, FXY, closed lower at 99.52.

The Nikkei, NKY, closed slightly higher on the day, while World Stocks, VT, US Stocks, VTI, Asia Excluding Japan, EPP, Emerging Market Stocks, EEM, and the BRICS, EEB, all traded unchanged.

Solar Energy Stocks, TAN, Gold Mining Stocks, GDX, and Silver Mining Stocks, SIL, traded higher. Biotechnology, IBB, Pharmaceuticals, PJP, traded lower. Egypt, EGPT, and Argentina, ARGT, traded higher. Thailand, THD, Indonesia, IDX, and the Philippines, EPHE, traded lower.  Tesla, TSLA, fell 5.9% lower, as Zero Hedge reports A German Magazine’s Story About Tesla’s Prospects In Europe Has The Stock Sinking Today.

The US Dollar, $USD, UUP, traded unchanged, as Major World Currencies, DBV, traded unchanged, and the Emerging Market Currencies, CEW, traded slightly lower.

Aggregate Credit, AGG, Junk Bonds, JNK, Ultra Junk Bonds, UJB, and Government Bonds, GOVT, traded slightly lower, as the Steepner ETF, STPP, traded slightly higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher to close at 2.61% as Michael Pinto writes Safehaven De-Crowning The US Dollar While most are now celebrating the end of government gridlock (however ephemeral it may be), the truth is few understand the consequences of our addictions. The real problems of government largess, money printing, artificial interest rates, asset bubbles and debt have not been addressed at all. Rather, Washington has merely agreed to perpetually extend its lines of credit and to have the central bank purchase most of that new debt. Instead of placating the fears of our foreign creditors we have cemented into their minds that the U.S. dollar and bond market cannot be safe repositories of their savings.

Commodities, DBC, hit resistance at 26.26, last Friday, that is October 18, 2013, and closed slightly lower today at 26.20. Oil, USO, traded sharply lower, as Bespoke Investment Group, reports Crude Oil Inventories Rise More Than Expected.  Small Cap Energy, PSCE, an Energy Production, XOP, manifested bearishly at the top of their ascending wedge chart patterns.

Scott Grannis writes Bank Lending Continues To Increase Confidence is slowly returning, and risk-aversion is slowly declining. I comment, yes, this is true.

And he continues “and those are essential ingredients for a stronger economy in the years to come”.

I comment that this would be true, but a strong economy is not in the works, it is simply not going to happen, as the growth that has come since 2008, has been due to central bank policies of credit liquidity, specifically QE1 through QETernity, and POMO, as well as banker provided credit liquidity for speculative leverage invesment which has resulted in a fiat asset crack up boom, which is always followed by spectacular crash, often called a Minsky Moment.

And he continues “The decline in the price of gold (see chart above) is another way to see how risk-aversion is slowly declining”

This is incorrect, the decline in the price of gold is due to investors use a record amount of margin debt, the WSJ reports, “to go all in”, and buy risk assets such as the following:

Solar Stocks, TAN, with year-to-date performance of 152% gain.

Social Media, SOCL, with year-to-date performance of 60% gain.

Nasdaq Internet, PNQI, with year-to-date performance with 53% gain.

Biotechnology, IBB, with ETF, year-to-date performance with  50% gain.

Internet Retail, FDN, with year-to-date performance with 47% gain.

The US Dollar’s dramatic fall lower is seen in the chart of the 200% ETF, UUP, trading parabolically lower, as currency traders bought the Major World Currencies, DBV, such as FXB , FXF, FXS, FXE, FXA, FXC, and FXY, and Emerging Market Currencies, CEW, such as BZF, ICN, which can be seen in the trading of these financial instruments in their Finviz Screener.

With the strong trade in Euro-Yen currency carry trade, that its the EUR/JPY, FXE:FXY, and the Australian Dollar-Yen currency carry trade, AUD/JPY, FXA;FXY, coupled with the strong surge in risk free lending, seen in the chart of the short term credit ETF, FLOT, which is translated into a parabolic rise in World Stocks, VT, it is reasonable to perceive that peak fiat money has been achieved, and that Major World Currencies, DBV, an Emerging Market Currencies, CEW, will be trading lower, as investors pivot from risk-on investing to risk-off investing, deleveraging out of risk assets. The result will be a loss of confidence and a strong economic downturn.

The price of the Gold ETF, GLD, seen in Finviz Chart, …  http://tinyurl.com/nrehus … shows it to be in breakout at 127; it is likely to fall lower, as it is will trade lower with falling currencies and with falling commodities, before it soars as people safe assets; in a debt deflationary environment, that is interest rate rising environment and in an enduring currency value falling world, especially one characterized by authoritarianism, it and diktat will be the only assets of confidence, that is the only things people will trust in.

In Safehaven.com araticle Lara Iriarte provides GOLD Elliott Wave Technical Analysis. The dips that are coming in the next few days present buying opportunities, as in a bull market one buys into dips, whereas in a bear market one sells into pips.

News reports herald the development of Eurozone regional governance. Both an austerity union and an austerity regime is being established in the Eurozone. Eventually a One Euro Government, that is a European Super State, featuring a fiscal union, led by nannycrats will provide fiscal policy governance, based upon schemes of debt servitude.

Bloomberg reports the development of the Eurozone as an austerity union relating Euro Capitals Tighten Fiscal Leash as EU Starts Austerity.

Jordan Shilton of WSWS writes Irish Government Unveils New Austerity Budget. The Fine Gael Labour coalition has outlined new austerity measures, including €1.6 billion in spending cuts aimed at the most vulnerable. And The Irish Independent reports Ireland’s Health Minister Reilly To Cut 1,000 Jobs In Bid For €666m Savings.

Marianne Arens of WSWS reports Italian Government Adopts Austerity Budget  Pay for public servants will be frozen next year and vacant positions will not be filled. Then in 2015, only 40 percent of those who leave will be replaced; in 2016, it will be 60 percent. In order to obtain the necessary resources for budget cuts and tax relief, privatisation is being pursued. The state’s holdings in the airline Alitalia and in telecommunications are to be sold. Two days before the adoption of the budget, the government still planned to cut spending in the health sector by over €4 billion. At the last minute this was left out. Health minister Beatrice Lorenyin threatened to resign, and chemists and hospital associations protested strongly. Nonetheless, it is expected that such cuts will be imposed later. Italy barely complied with an EU deadline of 15 October for the presentation of the budget. Several passages in the budget remain to be determined or are simply blank. They will be negotiated in parliament in the coming weeks. The Democratic Party, which emerged from the once-powerful Communist Party, is dominated today by conservative officials like Letta, who began his political career together with his deputy Prime Minister and PDL secretary Alfano in the Christian-democratic youth movement. The numerous pseudo-left groups which gathered in Rifondazione Comunista in the 1990s and acted as a left fig leaf for a series of bourgeois governments, have also moved far to the right or no longer exist.

Open Europe, in its for fee newsletter, which I recommend that one purchase, relates Spiegel Online reports Merkel Demands EU Treaty Change To Give Commission Control Over National Budgets. In a meeting with EU Council President Herman Van Rompuy last week, German Chancellor Angela Merkel set out her proposals for giving the EU greater powers over eurozone members’ national budgets, a move which would require EU Treaty change. Merkel will reportedly insist on legally enforceable contracts between the Commission and individual member states, setting out their obligations for maintaining budgetary discipline and improved competitiveness. In return, Germany could agree to a eurozone budget which would amount to tens of billions. Finally, the President of the Eurogroup would become a “Euro Finance Minister”.  … Spiegel Online cites Axel Schäfer, deputy-chair of the SPD’s parliamentary group as saying that “the SPD will not support any settlements if Merkel conducts parallel negotiations with Britain’s David Cameron over the transfer of EU competences back to member states.” Schäfer also warns that the SPD will not support an EU Treaty changes that trigger referenda in individual member states.

Open Europe: What to expect after the German elections … Spiegel Spiegel 2 … DWN … Irish Times

Kate Randall of WSWS writes Nearly Half Of US Public School Children Are Poor.   Nearly half of public school children in the United States were poor in the school year that ended in 2011, according to a new study by the Southern Education Foundation (SEF), the oldest US educational charity.

The SEF study, based on data collected by the National Center for Education Statistics (NCES), further found that the percentage of low-income students in public schools rose dramatically from 2001 to 2011, far outpacing public school funding. The study also found a direct correlation between levels of poverty and academic performance.

The findings are the latest exposure of the growth of poverty in the US alongside burgeoning social inequality.

Levels of poverty among schoolchildren were the highest in the South and West, including in all but two of the 15 Southern states. The five most impoverished school populations also came from states in these regions: Mississippi (71 percent), New Mexico (68 percent), Louisiana (66 percent), Oklahoma (61 percent), and Arkansas (60 percent).

The SEF study’s most staggering finding is that 48 percent of all US public school children come from poor households. While figures for poor school children were highest in the South and West, 53 percent and 50 percent respectively, poverty levels were also extremely high in the Midwest, 44 percent, and the Northeast, 40 percent

The study notes that reduced family incomes in the US since the 2008 recession have directly contributed to the growth in the number of poor students in public schools, especially in states hard hit by the housing market crisis.

More than two-thirds of African American and Hispanic public school students attend schools where poor students are the majority. A high number of students from Pacific Islander (53 percent) and American Indian/Alaska Native (65 percent) households also attend schools where more than half of students are poor. About a third of white and Asian students attend schools where the majority is poor.

Several Northeastern states have extremely high levels of poor students in their cities. The figure for New Jersey is 78 percent, for Pennsylvania it is 75 percent, and for New York it is 74 percent. In these same three states, 30 percent or less of students in suburban schools are poor, an indication of striking social inequality in these urban centers.

The study also found that the regions with the largest proportion of poor students spend the least on educating them. For example, the South (53 percent poor students) spent $9,226 per pupil in 2011, compared to the Northeast (40 percent poor students), which spent $16,045 per pupil. This disparity in funding can only serve to perpetuate social inequality and the decay of education in poorer schools.

Data cited by the SEF study show that poor students are more likely than students from more well-off families to have lower test scores, fall behind in school, drop out, and fail to acquire a college degree. Problems faced by children coming from households where poverty, hunger and the accompanying stress are a daily fact of life are exacerbated by conditions in schools that are starved for funding.

Austerity budgets at the federal, state and local level threaten to further starve the poorest school districts of cash, while growing income inequality will increase the percentage of low-income students attending these struggling public schools.

I believe that it would have been better, and would be better now, if children would be educated only through 6th grade. From a moral, that is virtue, viewpoint, and economic, that is ethical, viewpoint, I believe parents should provide homeschooling or private schooling after 6th grade. Public schooling after 6th grade terribly corrupts one’s morals, that is virtues, and one’s economics, that is ethics in many ways. And psychopathy becomes quite pronounced after 6th grade; sending one’s child to public school exposes that child to either becoming a psychopath or becoming damaged by a psychopath.   In fifth and sixth grade, most children grow up to be able to comprehend morals and ethics. Being accountable, they can be taught to value independence and liberty, and to turn away from dependency,  clientelism, and moral hazard. Public education beyond the sixth grade is an impediment to the development of good character, and such education does not help one get employment as CNBC reports, More Youth Not In School, Without Jobs. Almost 6 million young people are neither in school nor working, according to a study released Monday. That’s almost 15 percent of those aged 16 to 24 who have neither desk nor job, according to The Opportunity Nation coalition, which wrote the report.

And now, school is a battleground for communication of economics, which should be a matter of parental education. Fox News reports Second Graders Taught Labor Politics In Core Curriculum Aligned Lesson Plan. A textbook company contracted to produce materials under the Common Core State Standards is trying to teach students as young as second grade about economic fairness by praising unions, protests and labor leader Cesar Chavez, according to an education watchdog group. Zaner-Bloser, which is based in Columbus, Ohio, is distributing a lesson plan aimed at teaching second-graders about “equality” by highlighting labor issues, according to Education Action Group Foundation, a non-partisan organization that looks to promote education reform.

Patrick Martin in WSWS communicates in article Top Senate Democrat Backs Medicare, Social Security Cuts that the recent Raise The Debt Ceiling and Fund Obamacare Legislation mandates that US fiscal policy be established by a House Senate conference committee co-chaired by Democratic Senator Patty Murray and Republican Congressman Paul Ryan. The committee is tasked with drafting a budget for the balance of the current fiscal year, to be submitted by December 13. It is widely expected to begin discussing cuts in Social Security and Medicare, a significant first step even if there is not yet bipartisan agreement on the exact measures to be taken.

I know Patty Murray to be a politically powerful woman, as I live in Washington State, and have benefited from Patty Murray Earmarks, in particular new city busses provided by her to WTA, that is  Whatcom County Transportation Authority, which manages public transportation in Bellingham, Blaine, Ferndale, and Lynden. The van pool and bus system is well financed through a sales tax scheme (which Canadians who come across the border to shop contribute to) and fortunately does an excellent job of providing low cost transportation for the elderly disabled like myself.

Peter Nicholas of the WSJ reports Budget Discord Simmers Among Democrats  Neil Sroka of Democracy for America, a group founded by former Democratic presidential hopeful and Vermont Governor Howard Dean, said to “expect a civil war within the Democratic Party if any Democrats [in] Congress think about following through on the president’s proposed cuts to Social Security benefits.” Mr. Sroka said his group would be following the committee’s work and is prepared to take out ads and support primary campaigns against Democratic lawmakers who agree to cuts in entitlement programs.

Danny Hakim of the NYT writes The Man Who’ll Do Triage on Europe’s Banks.  Ignazio Angeloni, is a man with a mission: “You have to supervise what banks do,” Mr. Angeloni of the ECB said.  He heads the European Central Bank’s financial stability division, giving him a lead role in a task about to begin: examining the books of the 130 or so largest banks in the 17 members of the European Union who use the euro. It will be financial triage aimed at determining which banks are sound and which are not; good luck with that.

(I comment that none of Europe’s banks are sound, as they are all loaded to the gills with nation state Treasury debt, EU, that cannot be and will not be repaid. The European Financial Institution, EUFN, are insolvent financial institutions, and the European nations, at least the PIIGS, that is the periphery nations Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns.  Insolvent sovereigns cannot govern, and insolvent banks cannot provide seigniorage. It is only through  godsend, that is a lifesaver, that the European banks have financial life; it came through the genius of Mario Draghi, who provided the monetary policies of LTRO1, LTRO2, and OMT.

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

Angeloni is one of the more multifaceted lieutenants of Mario Draghi, the president of the European Central Bank. The immediate task is to prepare for the inception of a quasi-independent supervisory branch of the central bank, which will have its own chairman.

(I comment that as Mario Draghi’s banking lieutenant, he is one of many regional nannycrats rising in power to effect regional economic governance).

The first step is reviewing the financial health of the biggest banks of Europe. The central bank must do so in the next 12 months, while creating a supervisory wing staffed by a thousand new employees.

“People come to us and ask, ‘How can you do it? You have to recruit many supervisors, you don’t have many resources,’ ” he said. “That’s not true.” The central bank has the advantage of drawing on the aid and experience of national regulators that have long been at work in member states, he said.

“What makes it difficult is that it is very fragmented,” he said. “It is diversified in different countries, and they are not used to working together, so it’s a huge organizational effort, and it’s also a huge political effort in the sense of convincing everybody to converge to common styles of supervision.”

For the supervisory process to be truly useful, specialists say it must be accompanied by a so-called single resolution mechanism, a system for winding down failing banks in an orderly way, to avoid market upheavals. Regulators hope an independent body to oversee such work will be in place by 2015, but almost every detail of the banking overhaul effort has been mired in political wrangling among the member states.

“The stakes are the recovery and well functioning of Europe and the euro,” Mr. Angeloni said. “Europe has this project for several decades, to not only live in peace, that’s already an important thing in itself, but also to make its economic model function and potentially,  why not?,  be also exported elsewhere. And it’s a good economic model, because the quality of life in Europe is very high in many ways.”

(I comment that the European model, specifically European Socialism, and Greek Socialism, being based upon clientelism, and national laws which present structures that impede economic growth, is unsustainable; and having reached its fullest expansion, is about to implode).

“You have to make the system work, you have to reform it a little bit, and what we are doing is part of this reform,” he said, adding, “Building a federation is a long process.”

(I comment that yes, Ignazio Angeloni is a man tasked to build the banking infrastructure of a  Eurozone Superstate. The soon coming One Euro Government will be built upon a banking union as well as a fiscal union; Mr. Angeloni is a leader in establishing European regional governance.

Liberalism featured the Banker Regime. Authoritarianism features the Beast Regime, where leaders  meet in summits and workgroups to waive national sovereignty and establish regional pooled sovereignty, as The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, going out as a conqueror bent on conquest, Revelation 6:1-2, is effecting coup d’etat globally to transfer the baton of sovereignty, from liberalism’s democratic nation states, to authoritarianism’s nannycrats, as they rise to rule in public private partnerships, providing seigniorage through oversight of the factors of production, commerce, banking and trade, all for regional security, stability and sustainability.)

On Tuesday, October 22, 2013, financial marketplace trading produced liberalism’s peak nation state sovereignty, seigniorage, and moral hazard based prosperity, as it’s Krugmanomics here, and Abenomics, as well as Draghinomics, over there.

Liberalism attained peak prosperity on global currency carry trade investing and a pursuit of yield. Both of liberalism’s spigots of investment liquidity were open full wide. Said another way, the financial markets were under total leverage as evidenced by the Euro, FXE, Ultra Junk Bonds, UJB, and Leveraged Buyouts, PSP, rising strongly, and the US Dollar, $USD, falling strongly lower.

Currency traders bought all of the major world currencies, DBV, such as Swiss Franc, FXF, up 0.8%, The Euro, FXE, 0.7%, The Swedish Krona, FXS, 0.6%, The British Pound Sterling, FXB, 0.5%, and The Australian Dollar, FXA, 0.5%, as well as emerging market currencies, CEW, such as The Brazilian Real, BZF, 0.6%, and The Indian Rupe, ICN, 0.4%. Currency traders went “long, all in”.

The Japanese Yen, FXY, rose only a meager 0.05%, enabling a stunning leverage to those invested long risk assets, such as Biotechnology Stocks, IBB, Nation Investment, EFA, such as the Philippines, EPHE, and European Financials, EUFN, such as the National Bank of Greece, NBG, and Ireland’s Bank, IRE.  Seen in its chart, Nation Investment, EFA, clearly manifested a blow-off market top.

The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.51%, stimulated investors to chase yield, and resulted in a strong rise in credit, with Ultra Junk Bonds, UJB, up 0.75%, Junk Bonds, JNK 0.25%, Aggregate Credit, AGG 0.35%, Government Bonds, GOVT, 0.40%, and Floating Rate Note, FLOT 0.08%. The Steepner ETF, STPP, traded a strong 2.1% lower, reflecting the flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX.

The monetary policies of the world central banks, have produced fully produced Krugmanomics here, and Abenomics. as well as Draghinomics, over there.  The strong rise in Major World Currencies, DBV, and Emerging Market Currencies, CEW, drove World Treasury Bond, BWX, and International Corporate Bonds, PICB, to new highs, as the flurry of currency leverage and debt leverage caused the US Dollar, $USD, UUP, to plummet strongly to close at 79.29.

The precious metals at times trade inversely of the US Dollar; and that was the case today on the sharp trade lower in the US Dollar, $USD, as Gold, GLD, rose 1.8%, and Silver, SLV, rose 2.2%, stimulating Gold Miners, GDX, and Silver Miners, SIL, to rise 4.4%.  The strong rise in Commodity Currencies, that is the Euro, FXE, and the Australian Dollar, FXA, caused Copper Miners, COPX, Global Industrial Miners, PICK, and Coal Miners, KOL, rose strongly. Gold, GLD, and Silver, SLV,  are in breakout, but risk trading lower on soon falling currencies.

World Stocks, VT, rose a solid 0.7%.  Sectors rising strongly included Biotechnology, IBB, Solar Stocks, TAN, Design Build, FLM, Pharmaceuticals, PJP, Global Consumer Discretionary, RXI, and Global Industrial Producers, FXR,  Spinoffs, CSD, and Transportation, XTN,  And Yield Bearing Sectors rising included Utilities, XLU, Global Utilities, DBU, such as HNP, Real Estate, IYR, and Global Real Estate, DRW, Global Telecom, IST, such as VIP, as well as Leveraged Buyouts, PSP.

The strength of liberalism’s peak currency carry trade investing, is seen in investors taking Ireland’s CRH, IR, and COV, and Netherland’s, ST, AER, ING, LYB, and PHG, as well as Germany’s ABB, and SI, strongly higher.  And the strength of liberalism’s peak chasing of yield is seen in investors taking Tupperware, TUP, Cinemark, CNK, Ichan, IEP, Targa Resources, TRGP, and Vimpel, VIP, strongly higher.

Asia Excluding Japan, EPP, and the Eurozone, EZU, led World Stocks, VT, higher; all manifesting blow off market tops. In Asia, the Philippines, EPHE, New Zealand, ENZL, Turkey, TUR, Thailand, THD, Malaysia, EWM. and Australia, EWZ, KROO, led the way higher.  In Europe, Germany, EWG, EWGS, the Netherlands, EWN, and Italy, EWI, led the way higher. Argentina, ARGT, continued to a new rally high.

Ireland’s Bank, IRE, and the National Bank of Greece, NBG, rose strongly, to new rally highs, as the European Financials, EUFN, blasted higher, taking the Eurozone Stocks, EZU, higher, all on the, EUR/JPY, carry trade, which rose to close higher at 135.98, as the Euro, FXE, at 136.34, and Yen, FXY, at 20.71. The Elliott Wave Surfer chart article of the EURJPY communicates an Elliott Wave 5 High in liberalism’s great currency carry trade; the hart should be placed in future economic books as a tribute to liberalism’s currency carry trade leverage and the moral hazard prosperity that came through debt which cannot be repaid.

The vertical rise seen in the chart of the EURUSD, comes on the Reuters news report that the ECB names 130 European Banks for supervision; this news is truly epic, and together with currency carry trade investing, and the availabilty of credit seen in the strong rise of the Short Term Bond ETF, FLOT, accounts for the parabolic rise in European Financials, EUFN,  as well as nation investment in Ireland, EIRL, and its bank, IRE. The rise of the Euro, FXE, to 136 marks the zenith of Liberalism, as the age of investment choice, which was based upon schemes of currency carry trade investing, and central bank credit liquidity.

The Financial Times documents PBOC’s great provision of credit reporting China’s Credit Has Inspired Statistical Economic Growth. A surge in lending by banks and other financial institutions at the start of this year is one of the main explanations for the upturn in Chinese growth. Total social financing, China’s widest measure of credit, rose 52 percent year-on-year in the first five months of 2013.

The Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, as well as real estate investor, BX, have produced a terrific moral hazard based peak prosperity.

Peak fiat wealth was achieved on October 22, 3013. The strong trade lower in the US Dollar, $USD, to close at 79.29, and the strong rise in Nation Investment, EFA, and Global Industrial Producers, FXR, marks the zenith of Liberalism’s Milton Friedman Free to Choose Floating Currency Banker Regime, and the achievement of peak democratic nation state sovereignty, and banker driven seigniorage.

Mike Mish Shedlock writes New Rules for Italy Banks “I’ll Guarantee Your Derivatives If You Guarantee Mine”.  Basel III rules require extra capital for derivative positions. Banks in Italy have already figured out a way around that rule. The leverage of European banks to their own sovereign debt is enormous. This mutual guarantee agreement encourages banks to continue the leverage party.

Out of a soon coming Financial Apocalypse, foretold in bible prophecy of Revelation 13:3-4, authoritarianism’s Beast Regime of regional governance and totalitarian collectivism will provide regional nannycrat sovereignty and their diktat driven seigniorage, where undollar bartering amongst regional partners increasingly replaces US Dollar, $USD, based transactions.

Benson te asks Has The Fed’s Taper Talk Induced Foreign Selling, Swap And Bilateral Currency Deals?  Currency swaps or bilateral domestic currency trades have been small, nonetheless such deals means that many Asian governments have been gradually redirecting or decreasing their exposures on the US dollar. As Chinese philosopher Laozi once said, a journey to a thousand miles begins with a single step. China and Thailand have even undertaken a project to build a railway connection between the two countries, where Thailand will for pay for her share in the cost of railway construction via barter, particularly rice and rubber. Also currency swaps are not a free pass or license for bubbles. They serve as possible cushion from currency based tail events.

I’m not into short selling, but for those who are, or plan to be, one might consider using the ETFs, seen in this Finviz Portfolio, … OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG … as a basis for one’s margin account, now that the financial markets have peaked out.

Volatility, ^VIX, rose from 13.04, for the second straight day, taking the Volatility ETFS, seen in this Finviz Screener, TVIX, VIXY, VIXM, XVZ, higher.

Bloomberg reports China Swap Rate Rises a Fourth Day as PBOC Doesn’t Inject Funds. “It looks like we’re entering a phase when the PBOC will refrain from selling reverse repos,” said Cheng Qingsheng, an analyst at Evergrowing Bank Co. in Shanghai. “The PBOC is sending a clear signal to the market about its prudent stance.”

Liberalism was the age of investment choice based upon schemes of currency trade investment, and world central bank schemes of credit liquidity.

But authoritarianism is the age of diktat based upon schemes of debt servitude, as is evidenced by the Ulrich Rippert WSWS report German Social Democrats’ Convention Backs Coalition Talks With Conservative Parties. The SPD has dropped the reformist demands it raised during the election campaign to signal its readiness to cooperate with the conservative parties.  As well as by the report Andrei Tudora WSWS report Romanian Government And Unions Carve Up The Health System. Romanian unions are playing a key role in dismantling the public health system in Romania.  As well as the Mike Head WSWS report Queensland Australian Government Legislates Draconian Anti-bikie Laws.  The Queensland legislation marks an escalation of the far-reaching “criminal association” laws passed by state governments since 2001, which erode basic democratic rights.  As well as by the Dylan Lubao WSWS report Canada’s Conservatives To Intensify Assault On Working People Stephen Harper’s Conservatives have laid out a reactionary legislative agenda, including deep government spending cuts, attacks on public sector workers, and a massive arms buildup.

Johannes Stern of WSWS reports Germany: The Left Party Embarks On A War Course. Up to now, the Left Party was the only parliamentary party to officially oppose overseas missions of the Bundeswehr, German Armed Forces, criticizing US foreign policy and even calling for the dissolution of NATO in its party programme. This is now officially over. After the general election, the Left Party is dumping whatever empty phrases might become obstacles to supporting whatever wars Berlin might wage in the future.

COG writer relates Handelsblatt Bluntly States That The German Army Will Be Rebuilt “in order to be used all over the world.” The vast majority of the German population is vehemently opposed to militarism. The fact that the Handelsblatt can so publicly formulate the goals of the German bourgeoisie is above all a devastating indictment of the Green Party, the Social Democratic Party and the Left Party. (Stern J. The Return of German Imperialism. Global Research, 21 February 2013). The Mission of the Bundeswehr Germany and protects its citizens, secures the action in foreign policy of Germany, contributes to the defense of allies, contributes to stability and partnership in the international context, and promotes multinational cooperation and European integration. Notice that the defense of Germany anywhere and supporting European integration are essentially the stated goals of the Bundeswehr.  European integration will lead to the rise of the end-time Beast power of biblical prophecy! Wikipedia (viewed 06/25/13) has the following comment about the Bundeswehr: “The Bundeswehr in general is among the world’s most technologically advanced and best-supplied militaries, as befits Germany’s overall economic prosperity and significant military industry.”

While many believe that Germany’s intentions are peaceful (and the Bible teaches that many in Germany truly think they are per Isaiah 10:7), they will not remain that way.  Preparing their people to better respect and support their military, while increasing its technical abilities will lead to war, and several of them.

This inquiring mind asks, well which wars? I believe Germany will be involved in the soon coming Isaiah 17 war in Syria as well as the Ezekiel 38 Middle East War.

The German led, and Eurozone empowered Superstate, will be led by The Sovereign, Revelation 13:5-10, who according to Daniel 11:38-39, will be a military leader. “But in their place he shall honor a god of fortresses; and a god which his fathers did not know he shall honor with gold and silver, with precious stones and pleasant things. Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain.”

He is described as The Little Horn, one of seemingly little authority, Daniel 7:8, yet will rise to power through through his adept working in regional framework agreements, Daniel 8:23-26, and will set his attentions on The Glorious Land, Daniel 8:9, and as the prophesied  Prince who is to come, will provide a Middle East Peace Plan, and establish a One World Government, and One World Religion, with his global headquarters in Jerusalem, Daniel 9:25. The Sovereign will be accompanied in his rise to power, by the Seignior, Revelation 13:11-18, that is the top dog banker who takes a cut; his role will be to call people worldwide to emperor worship.

And please consider that according to Jesus, There will be signs in the sun, moon and stars, preceding His return, Luke 21:25. Duane and Shelley Muir write Comet ISON’s Blazing Green Tail Captured In Stunning Photo.

On Wednesday, October 23, 2013, the Market Off ETN, OFF, traded higher, as currency traders reversed course, and sold out of yen based carry trades, by calling the Yen, FXY, higher, and Major World Currencies DBV, and Emerging Market Currencies, CEW, lower, thereby causing investors to deleverage out of Global Financial Institutions, IXG, which were led lower by the National Bank of Greece, NBG, Spain’s Banco Santander, SAN, and Chinese Financials, CHIX, Argentina’s Banks, BFR, BMA, BBVA, GGAL, and South Korea’s Banks, KB, SHG, and WF, reflecting investor conviction that the monetary policies of the world central banks are no longer able to stimulate global growth and trade, nor corporate profitability, in any nation,  EFA, especially Greece, GREK, Ireland, EIRL, China, YAO, South Korea, EWY, Taiwan, EWT, India, INP, or Australia, EWA, KROO.

The derisking out of currency carry trade investment, turned off the ongoing rise of credit as is seen in the value of Short Term Bond, ETF, FLOT, trading lower in value.

Both of the levers of ongoing fiat wealth creation, these being currency carry trade investing and credit liquidity are no longer working.

Said another way, the twin spigots of fiat money creation, these being first, floating currencies and second, trust in the world central banks’s monetary authority to stimulate global growth and trade, establish corporate profitability, and develop nation investment, have run dry.

Benson te communicates Markets move on perceived changes in fundamentals. Speculators don’t just drive markets up or down according to “whims”, but through perceived profit opportunities mainly based on changing expectations of fundamental conditions of specific political economies. In other words, meltdowns don’t happen because of confidence alone, but because of perceived (rightly or wrongly) dramatic negative or adverse changes in fundamentals that incites an abrupt loss of confidence of market participants whose actions are ventilated on the markets via a stampede or panic.

The chart of the EUR/JPY carry trade shows a close lower at 134.19, as the Euro, FXE, traded unchanged at its rally high of 136.31, and the Yen, FXY, traded  0.8%  higher to 100.37.

The chart of the AUD/JPY carry trade shows a close lower at 93.70.

Major World Currencies, DBC, traded strongly lower, -1.4%, with Canadian Dollar, FXC, -1.0%, Australian Dollar, FXA, -0.9, and British Pound Sterling, FXB, -0.5. Emerging Market Currencies, CEW, traded lower, -0.5%, with Brazilian Real, BZF, -0.8%, and Indian Rupe, ICN, -0.6.

The US Dollar, USD, UUP, rose slightly, to 79.33

Energy Production, XOP, -2.6% and Small Cap Energy, PSCE, -2.4%, on a lower price of Oil, USO.

World Stocks, VT, -1.0%, with the following sectors trading lower: Semiconductors, XSD, -4.1%, Solar Stocks, TAN, -2.8, Networking, IGN, -1.8, Social Media, SOCL, -1.8, Steel, SLX, -1.6, Resorts and Casinos, BJK -1.6, and Global Financials, IXG, -1.5.

Yield Bearing Sectors trading lower included Global Telecom, IST, -1.2, with carry trade darlings, TKC, TSU, TEF, NTT, ORAN, MBT, NTT, trading lower.  And Global Utilities, -1.4, DBU, and its carry trade darlings, NHP, CIG, EBR, trading lower.  And Global Real Estate, DRW, -1.0,  And Leveraged Buyouts, PSP, -1.0, a very  high yielding ETF.

Nation Investment, EFA, -1.0% with Global Financials, IXG, -1.4%; Countries and their banks leading lower included the following:

Greece, GREK, -4.4%, with NBG -8.9%,

Argentina, ARGT, -3.3, with BFR, -8.2, BMA, -5.6,  BBVA, -4.1, and GGAL,-3.6,

China, YAO, -3.0, ECNS, -2.1, with CHIX, -3.2,

Nikkei, NKY, -2.7,  with MTU, -2.1, MFG, -2.1, and SMFG, -2.0,

India, INP, -2.6, SCIN, -1.9, with IBN, -1.5, and HDB, -1.2

Brazil, EWZ, -2.5, EWZS, -2.5, with BBD -3.2, ITUB -2.5, and BSBR, -2.2, all on an unwinding Brazilian Real Japanese Yen currency carry trade, as is seen in the chart of BZF:FXY

Emerging Markets, EEM, -2.3, with EMFN, -1.2,

Taiwan, EWT -2.1, with its semiconductor manufacturers, TSM, -2.3, and ASX, -2.3

Spain, EWP, -2.0, with SAN, -3.1,

South Korea, EWY, -1.8, with KB -3.5, WF, -3.2, and SHG, -3.1,

Australia, EWA, -1.7, KROO, -2.0 with WBK, -1.6.

Ireland, EIRL, -0.5 with IRE, -1.6

Eurozone, EZU, -0.7 with EUFN, -1.7

Fox News reports Boeing Boosts Outlook Amid 12% Profit Growth. Boeing’s, BA,  profit jumped 12% in the third quarter, as the aerospace giant’s commercial aircraft unit outweighed softness at its defense business.

Reuters reports Chip Stocks Drop As Widespread Weak Demand Worries investors. Shares of semiconductor companies slumped after a host of underwhelming quarterly revenue forecasts left Wall Street concerned about lackluster demand in markets from industrial to smartphones. Chipmakers trading lower included ASX, TSM, SPIL, HIMX, NXPI, AVGO, INTC, ASML, ASMI, AMAT, KLAC, QCOM, SWKS, ADI, LSI, MRVL, MU, STM, XLNX, MX, HITT, FSL, CREE, IDTI, RFMD, FSL, TQNT, MSCC.

Reuters reports Chinese Shares Dip As PBOC Curbs Liquidity Chinese shares slipped in volatile trading as a further spike in China’s money-market rates tempered the effect of a survey showing a pickup in manufacturing. China’s benchmark seven-day repo rates opened up nearly a full percentage point at 5 percent after the central bank let cash drain from the money market for a second week.

Reuters reports Copper Falls On Worries Over China Tightening. Copper, JJC,  slid 2%  as fears of tighter monetary policy. Copper Miners, COPX, traded 2.6% lower on the day.

Commodities, DBC, -1.5%, with Oil, USO, -1.3%, Base Metals, DBB, -2.0%, and Copper, JJC, -2.3%.

Gold, GLD, -0.5%, and Silver, 0.5%, causing Gold Miners, GDX, and Silver Miners, SIL, -3.2%.

Aggregate Credit, AGG, traded unchanged as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly lower to 2.49%.

Lack of trust in what is turning out to be a mercurial Imperial President is one of many factors that has commenced the end of US Dollar Hegemonic Empire, and will be the a factor in the birth of regional governance in each of the world’s ten regions.

Annette Hauser of The Bertelsmann Foundation writes, The Erosion Of Transatlantic Trust.  And Thomas Seibert writes US Concerned After Turkey Buys Chinese Arms. And Benson te writes Saudi Arabia Cuts Ties with the US over Syria-Iran. After the US government has been forced by the public, aided by Russian President Vladimir Putin’s appeal, to stand down against attacking Syria, Saudi Arabia reportedly severed ties with the US.

And Hennigan with the WSJ writes Obama’s Credibility Is Melting. Here and abroad, Obama’s partners are concluding they cannot trust him. The collapse of ObamaCare is the tip of the iceberg for the magical Obama presidency. From the moment he emerged in the public eye with his 2004 speech at the Democratic Convention and through his astonishing defeat of the Clintons in 2008, Barack Obama’s calling card has been credibility. He speaks, and enough of the world believes to keep his presidency afloat. Or used to. All of a sudden, from Washington to Riyadh, Barack Obama’s credibility is melting.

Last weekend the diplomatic world was agog at the refusal of Saudi Arabia’s King Abdullah to accept a seat on the U.N. Security Council. Global disbelief gave way fast to clear understanding: The Saudis have decided that the United States is no longer a reliable partner in Middle Eastern affairs.

The Saudi king, who supported Syria’s anti-Assad rebels early, before Islamic jihadists polluted the coalition, watched Mr. Obama’s red line over Assad’s use of chemical weapons disappear into an about-face deal with Vladimir Putin. The next time King Abdullah looked up, Mr. Obama was hanging the Saudis out to dry yet again by phoning up Iran’s President Hassan Rouhani, Assad’s primary banker and armorer, to chase a deal on nuclear weapons. Within days, Saudi Arabia’s intelligence chief, Prince Bandar, let it be known that the Saudis intend to distance themselves from the U.S.

What is at issue here is not some sacred moral value, such as “In God We Trust.” Domestic politics or the affairs of nations are not an avocation for angels. But the coin of this imperfect realm is credibility. Sydney Greenstreet’s Kasper Gutman explained the terms of trade in “The Maltese Falcon”: “I must tell you what I know, but you won’t tell me what you know. That is hardly equitable, sir. I don’t think we can do business along those lines.”

Bluntly, Mr. Obama’s partners are concluding that they cannot do business with him. They don’t trust him. Whether it’s the Saudis, the Syrian rebels, the French, the Iraqis, the unpivoted Asians or the congressional Republicans, they’ve all had their fill of coming up on the short end with so mercurial a U.S. president. And when that happens, the world’s important business doesn’t get done. It sits in a dangerous and volatile vacuum.

Mike Mish Shedlock writes ECB President Mario Draghi Announces New Stress Tests; Translating Draghize.  When it comes to stress tests, especially for European banks, the one thing history suggests is the tests will be essentially stress-free, by design. Why should this time be any different?

Nonetheless, Bloomberg reports European Central Bank Mario Draghi Says ECB Won’t Hesitate to Fail Banks in Stress Tests. For those of you who do not speak Draghize, I offer these translations.

Draghize: “The region’s governments will be ready to fill any capital holes that emerge as a result of the stress tests.”

Mish: The region’s governments are totally unprepared to fill any capital holes that emerge as a result of the stress tests.

The ANSAMed Anna Foundation report Italy’s Debt Hits Record High Of 133.3% Of GDP In 2nd Quarter, indicates the true nature of Italy’s sovereign capability. Its level of Treasury Debt, suggests that it is an insolvent sovereign. Its seigniorage does not come from risk appraisal between bond buyers and sellers, but rather from the ECB’s monetary policies of LTRO 1 and 2, as well as OMT. And the only reason why it has fiscal capability is because of what amounts to seigniorage aid from the word, will and way of central banker Mario Draghi.

The Economist reports The Eurozone Is Blighted By Private Debt Even More Than By Government Debt And the Economist also reports It’s Not Just Sovereign Borrowing: There Are Too Many Zombie Firms And Over Indebted Households.

The Telegraph reports Citi Forecasts Greek Devastation, Unstoppable Debt Spirals In Italy And Portugal

The WSJ reports Italy’s Government Looks to Tap Pensions Funds

The reality is that the periphery European nations, specifically the PIIGS, that is Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns, and the European Financials, EUFN, are insolvent banks. These cannot provide stable governance; it is only through regional integration and regional governance, with a footprint of supervised banking, leading to a banking union, as well as fiscal union, and statist economic governance overseeing the factors of production, as well as commerce and trade, that regional security, stability, and sustainability can be achieved.

As reported above, with the Market Off ETN, OFF, trading higher, on Wednesday, October 23, 2013, reflecting that currency traders reversed course, and sold out of yen based carry trades, by calling the Yen, FXY, higher, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower, causing investors to deleverage out of Global Financial Institutions, IXG, which were led lower by the National Bank of Greece, NBG, and Spain’s Banco Santander, SAN, as well as Chinese Financials, CHIX, Argentina’s Banks, BFR, BMA, BBVA, GGAL, Brazil Banks, BSBR, BBD, ITUB, BBVA, BBDO, and South Korea’s Banks, KB, SHG, WF, reflecting investor conviction that the monetary policies of the world central banks are no longer able to stimulate global growth and trade, nor corporate profitability, nor nation investment, EFA, in any country, especially Greece, GREK, Ireland, EIRL, China, YAO, South Korea, EWY, Taiwan, EWT, India, INP, Australia, EWA, KROO, and Brazil, EWZ, EWZS.

Failure of confidence in the monetary policies of the world central banks, has enabled currency traders to sell the Brazilian Real, BZF, short, stimulating deleveraging not only of Brazil Banks, BRAF, but of out of Brazil, EWZ, Brazil Small Caps, EWZS, and Brazil Infrastructure, BRXX; funding of the latter is very much need for seaport and rail projects in this natural resource and agricultural exporter; but unfortunately state money goes to support sports stadiums, documenting the failure of liberalism’s crony capitalism.

And as reported, investors derisked out of Semiconductors, XSD, seen in this Finviz Screener, trading 3.3% lower on the day, on fears that underwhelming quarterly revenue forecasts reflect lack of demand, indicating the failure of global economic growth policies of the world central banks.

Not only out of sovereign insolvency and banking insolvency of the PIIGS, that is Portugal, Italy, Ireland, Greece and Spain, but also out of the quicksand of a mercurial imperial presidency, as well as a failure of the Milton Friedman Free To Choose, Floating Currency, Banker Regime, … the Ten Toed Kingdom of regional governance, with its toes of iron diktat and clay democracy, seen in the Statue of Empires of Daniel 2:25-45, which is synonymous with the ten headed, that is ten regional area centered and seven human institution headed, Beast Regime of regional governance and totalitarian collectivism  … is rising to rule mankind’s economic and political activity.

Wednesday, October 23, 2013, was a pivotal day in mankind’s economic and political history. The trade lower in World Stocks, VT, Nation Investment, EFA, Semiconductors, XSD, and Copper Miners, COPX, yield investments, such as Global Utilities, DBU, Global Real Estate, DRW, and Leveraged Buyouts, PSP, as well as in credit, specifically Short Term Bonds, FLOT, on Wednesday October 23, 2013, reflects that Jesus Christ is operating in the economy of God, Ephesians, 1:10, that is in the administrative oversight of all things economic and political, and has pivoted the world out of the paradigm of liberalism and into the paradigm of authoritarianism.

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

Liberalism was the Banker era of investment choice, which provided schemes of credit and carry trade investment, establishing a moral hazard based prosperity. But authoritarianism is Beast era of diktat, which provides schemes debt servitude, enforcing austerity.

Jesus Christ oversaw the former order and having perfected it, is now perfecting the new order. What was formerly an age of righteousness is now an age of iniquity, formerly providence now calamity, formerly democracy now dictatorship, formerly economic growth now economic deflation, formerly inflationism now destructionism, formerly choice now diktat, as the Lord announces His Advent to install His Millennial Kingdom.

The austrian economic dream of freedom and free things, such as free prices, and such as Hayek’s free market monetary system, is simply a mirage on the Authoritarian Desert of the Real.

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

The trade lower in Nation Investment, EFA, and Global Financials, IXG, seen in this Finviz Screener, on October 23, 2013, terminated democratic nation state sovereignty, and liberalism’s bank seigniorage.  Ireland, EIRL, and its Bank, IRE, were the defacto standard bearers of liberalism fiat wealth. Their stunning investment success came through carry trade investing in the EUR/JPY, as well as Mario Draghi providing Eurozone liquidity, by LTRO 1, 2, and OMT, sustaining Eurozone Debt, EU.  But now, both the nation of Ireland, EIRL, and its Bank, IRE, stand as white washed tombs on the prior age of investment choice. While the Irish complain vociferously of austerity, such successful sealing investment trading in Ireland’s Bank, IRE, driving its value parabolically higher 162% over the last year.

On October 22, 2013, Jesus Christ terminated liberalism’s  Creature from Jekyll Island, through the failure of currency carry trade investment, seen in the EURJPY and the AUDJPY trading lower, as well as the failure of credit, seen in the short term bond fund ETF, FLOT, trading lower. Jesus Christ operating through dispensation, that is the completion of every ear, epoch, era, and time frame, has ended the Fed.  He did what Ron Paul could not do. The Fed be dead, and its policies no longer provide stimulus, only death. The fiat asset inflation that came via the grand experiment by the US Federal Reserve policies of monetary intervention is over, finished and done. Fiat asset deflation has arrived and is bearing down on the World Financial Institutions, IXG, and on currency trading and credit sensitive nations, such as Brazil, EWZ, EWZS, and India, INP, SCIN, and China, YAO, ECNS, with Brazil Financials, BRAF, India Earnings, EPI, and China Financials, CHIX, leading lower.

On October 22, 2013, Jesus Christ gave birth to authoritarianism’s Beast Regime of regional governance and totalitarian collectivism, through the Mario Draghi announcement of plans for European banking supervision.

News events clearly reflect the fulfillment of bible prophecy. As presented in Revelation 13:1-4, Jesus Christ has designed the Beast Regime to be the ultimate predator, having feet of a bear, the mouth of a lion, and camouflage of a leopard.  It’s feet have emerged in the European banking supervision system; its feet enable the monster to stand upright against all enemies, as well as to run down and trample all naysayers; and its claws enable it to root out and tear apart all opposition.

On Thursday, October 24, 2013, a massively long enduring market top formed as some sectors rose to new market highs.

Sectors rising strongly included US Infrastructure, PKB, such as TSCO, EXP, WIRE, TEX, USG, APOG, MHK, WHR, LII, TRW, PKG, ADS, CBI, PPG, PRIM, CSL, WSO, CTAS, RS, STLD, WOR, FMC, Small Cap Pure Value, RZV, such as STMP, CKEC, Global Industrial Producers, FXR, such as ABB, SI, TRS, MMM, TYC, ITW, ROK, ROLL, ENS, DXPE, HON, GGG, Defense And Aerospace, PPA, such as NOC, Transportation, XTN, Global Consumer Discretionary, RXI, such as CMCSA, DIS, FOXA, STRZA, TWX, VIAB, and Consumer Credit Companies, seen in this Finviz Screener.

Of note, Lloyds Group, LYG, rose strongly to a new high, taking the UK, EWU, to a new rally high. Regional Banks, KRE, such as GBCI, FIBK, SBNY, CITZ, CBIN, BOH, LKFN, Investment Bankers, KCE, Asset Managers, such as BLK, seen in this Finviz Screener, Mortgage REIT, SFI, and Specialty Financier, Icahn Enterprises, IEP, rose to new rally highs.

The EUR/JPY closed at 134.29.

The AUD/JPY closed at 93.56.

The BRICS, EEB, traded lower again today, as Brazil, EWZ, Brazil Small Caps, EWZS, Brazil Infrastructure, BRXX, Brazil Financials, BRAF, India, INP, SCIN, India Earnings, EPI, traded lower on a falling Brazilian Real, BZF, and on a falling India Rupe, ICN, and as Chinese Financials, CHIX, traded strongly lower.

US Health Care Providers, IHF, seen in this Finviz Screener, traded lower.

On Friday, October 25, 2013, World Stocks, VT, and Nation Investment, EFA, traded lower from their Tuesday October, 22, 2013, confirming the pivot of Stocks, VT, Nation Investment, EFA, Major World Currencies, DBV, and Emerging Market Currencies, CEW, from their recent rally highs, as well as establishing the pivot of the world’s democratic nation state economy from liberalism into regional governance and totalitarian collectivism beginning with the announcement of ECB oversight of 130 European Banks.

Yield Bearing Sectors trading higher today included

Utilities, XLU, 1.1%

Real Estate, IYR, 1.0

Industrial Office REITS, FNIO, 1.0

Ultra Junk Bonds, UJB, 1.0

Sectors trading higher today included

Gold Miners, GDX, 1.0

Silver Miers, SIL, 1.0

Sectors trading lower today included

Solar Stocks, TAN, -4.5%

Industrial Miers, PICK, -1.7

Paper Producers, WOOD, -1.2

Automobiles, CARZ, -1.0

Nations trading higher today included

INdonesia, IDX, 3.0%, IDXJ, 3.0

Greece, GREK, 1.8

Malaysia, EWM, 1.3

Norway, NORW, 1.3

Egypt, EGPT, 1.1

Turkey, TUR, 1.0

Philippines, EPHE, 1.0

Thailand, THD, 1.0

Nations trading lower today included

Argentina, ARGT, -1.4

Nikkei, NKY, -1.5

Spain, EWP, -1.0

Italy, EWI, -1.0

The Interest Rate on the US Ten Year Note, ^TNX, closed the week at 2.50%

The EUR/JPY closed the week at 134.40, with the Euro, FXE, closing at 136.58, and the Yen, FXY, closing at 100.35.

The AUD/JPY closed the week at 93.35.

The stock market bubble of all times has formed as is seen in the leverage off stocks, ETFs, and mutual funds over debt.

World Stocks relative to Aggregate Credit, VT:AGG

Eurozone Stocks relative to EU Credit, EZU:EU

Nation Investment relative to World Treasury Bonds, EFA:BWX

Vice Stocks relative to Distressed Debt, VICEX:FAGIX

A summary of this week’s trading presents the following trading activity

World Stocks, VT, +0.6; a market top on Tuesday, October 22, 2013

Naton Investment, EFA, +0.6; a market top on Tuesday, October 22, 2013

Global Financials, IXG, -0.4; a blow off market top on Wednesday, October 23, 2013

Financials

IXG, -0.4

EMFN, -1.9

EUFN, -0.2

FEFN, -0.4

RWW, -0.7

KRE, +0.9

IAI, +0.4

KCE, +1.6

CHIX, -5.1 Benson te writes PBoC Tapers: China’s Interest Rate Markets Under Pressure

EPI, -0.5

BRAF, -2.3

Credit Services, AXP, MA, and V, rose to new all time highs this week.

Regions

EEB, -2.4

EEM, -1.3

VTI, +0.8

EZU, +0.8

EPP, -0.1

Nations

SPY, +0.9 ; the chart of the S&P 500, $SPX, shows a likely grand finale top of $,1759

IWM, +0.4

NKY, -2.4

EWI, -1.4

EWP, -1.4

EIRL, -0.1

EWN, +1.7

EWG, +2.4

EWGS, +1.7

GREK, +0.4

EWU, +1.8

EWUS, +0.4

TUR, +0.5

EGPT, +2.3

EWA, +0.6

KROO, +0.2

THD, -2.2

ENZL, -0.5

EWY, -1.6

EWT, -1.3

EPHE, -1.4

EWM, +1.8

ENZL, -0.6

ARGT, -0.4

The BRICS

EWZ, -0.9

EWZS, -2.0

RSX, -0.7

ERUS, -1.2

INP, -0.6

SCIN, -0.4

YAO, -3.4

ECNS, -2.1

Sectors

XTN, +2.4

FXR, +1.9

PSCI, +0.8

IGN, -3.1

PICK, +0.8

URA,  +6.2

REMX, -0.5

KOL, +1.0

WOOD, -1.4

GDX, +2.8, as GLD, +2.8

SIL, +7.1, and SSRI, 7.4, as SLV, +2.8

FLM, +0.4

SOCL, -4.3

RXI, +1.1

IBB, +2.3

RZV, +0.9

CARZ, -1.2

TAN,  -4.5

XSD, -4.2

SLX, -0.1

PKB, +2.5

KXI. +1.2

RXI, +1.4

IYC, +1.8

XRT, +0.1

BJK, -0.9

IHF, -2.3

PPA, +2.4, as BA, +7.1

IBB, +5.2

FPX, -0.1

PBS, -0.2

CSD, +1.8

FDN, -0.5

PNQI, -0.9

PJP, +0.9

Energy Sectors

PSCE, -1.4

XOP, -1.8

OIH, -1.7

Yield Bearing Sectors

XLU, +2.0

DBU, -0.3

PSP, +0.8

IYR, +1.7

FNIO, +1.5

REZ, +1.2

DRW, -0.3

IST, -1.0

Junk Bonds

JNK, +0.3

UJB, +1.4

Credit

FLOT,  +0.02

Aggregate Credit, AGG,  +0.2

Spot Gold, $GOLD, closed at $1,352; and the US Dollar, $USD, at 79.26

Christopher Thompson of FT writes “A burst of investor ‘animal spirits’ has boosted the value of mergers and acquisitions-related bonds to the highest raised since the financial crisis. Global acquisition-related bond issuance from non-investment grade, or high yield, companies has risen by 15% to $62.9bn for the year to date compared with the same period in 2012. This is the highest amount since 2007, according to Dealogic. Overall, global high yield issuance rose 18% for the year to date to $395.5bn, the highest ever. Much of the issuance came from Europe, where there have been signs of a tentative economic recovery in some areas since the height of the debt crisis, while many of the regions’ banks have been deleveraging.”

Business Insider posts Global Bellwether Caterpillar Had A Bad Quarter And Its Outlook Stinks.

Reuters reports US Jobless Claims Stay Elevated, Manufacturing Slows.

Market Watch posts Looming China Debt Crisis Resurfaces As A Market Fear

Zero Hedge writes There Will Be No Place To Hide

Prison Planet posts Gerald Celente Warns Of Collapse In 2014

Otterwood Capital writes A Crash Caused By Excess Debt. Wait, Haven’t We Already Seen This?

24hGold Gold And Silver As Standards Of Value

Robert Wenzel of Economic Policy Journal posts Carl Icahn’s Advice in the Age of Ben Bernanke

Shaun Richards asks Can Italy reverse the economic decline of the last twenty years?

3) … Dollar Collapse reports in its  Clean Tech News section

Grid-scale energy storage to support and compete with conventional generation – GreenTech Media

California passes huge grid energy storage mandate – GreenTech Media

Vivint adds half a billion dollars to residential solar finance surge – GreenTech Media

SolarCity PV deployments boom, more growth expected – Solar Plaza

First Solar to build California solar plant for Nextra – Solar Plaza

4) … An inquiring mind asks what is economics?

Benson te writes correctly Economics Isn’t A Science, And Never Will Be.

I comment relating that some ask me, are you a Republican or a Libertarian? I reply neither, I Am a reformed Christian, that is one remade by God, and a recovered Christian, one living in recovery of grace and truth. Those of political party will exist having political movement of some type to the end of this age. I have no fiat identity; rather I have identity out of Christ’s life, and life experience out of the His indwelling Spirit.  Republicans and Libertarians both know “will worship”, that is they worship out of their will, things of human philosophy, whereas I worship Chris’s will, out of respect for Scripture, and know a movement of His Holy Spirit. I add that Republicans and Libertarians will forever be divided on moral issues such as what constitutes life and same sex marriage, and they both will forever be divided on economic issues, that is ethical issues.

Economics is synonymous with ethics, as when one says he has economic regard on an issue, he is saying he has ethical regard on the issue. Every person acts in dispensation, that is in household administration of things civil, monetary and political, and these action come from one’s convictions in philosophy or religion. Thus economics is either a philosophy or a religion; economics is defined as the quality and type of ethical experience present between a person, and another or others, corporations and the state, that is government. Obamacare, that is HealthCare.Gov, tops the list as unethical experience, as Ilana Mercer writes in Economic Policy Journal Obamacare Is An Enterprise In Failure And Fraud.

An Benson te writes Quote of the Day: Law Is The Unconscious Creation Of Society  Law is not a body of commands imposed upon society from without, either by an individual sovereign or superior, or by a sovereign body constituted by representatives of society itself.  It exists at all times as one of the elements of society springing directly from habit and custom.  It is therefore the unconscious creation of society, or in other words, a growth.

This is from page 21 of the American Bar Association’s publication of James C. Carter’s 1890 essay “The Ideal and the Actual in the Law“. The source of the above quote Café Hayek’s prolific blogger and economic professor Don Boudreaux expounds on the James Carter quote

Legislators are legislation-makers; they are not lawmakers. True law can no more be consciously designed and created outside of the myriad social interactions that give rise to true law than can a true price be consciously chosen outside of the myriad economic interactions that give rise to true prices.  Commands that look to some people like law can be, and are, consciously designed and created.  But these are not law.  And because commands typically run against the spontaneous forces that give rise to law, such commands are typically against the law – just as a government-imposed price (or price control) results in something that looks like a price but is, in fact, not a true price at all.

European Federalist Foundation Bertelsmann Stiftung, and The Spinelli Group, present the book A Fundamental Law of the European Union. The financial crash and lengthy economic recession have tested the institutions of the European Union as never before. Debate about the future of Europe has polarized: Some want no more integration; others campaign for disintegration. Those who believe in deeper unity and a stronger federal Europe have yet to make their case. “A Fundamental Law” does this by offering a prospectus for radical reform. It amends the Lisbon Treaty to make the government of the EU more powerful and democratic. It embraces banking and fiscal union while showing the way forward to a legitimate settlement of Europe’s constitutional dilemma. Ten years after the Convention on the Future of Europe proposed its constitutional treaty, the Spinelli Group of federalist MEPs has drafted comprehensive proposals for an ambitious new treaty. Anyone who wonders how a more united Europe should best be governed should read this. The members of the next Convention will.

To both the above authors, I respond that I operate by the law of the Spirit of Life in Christ, as I know God, and He speaks to me,  While, I do not hear a voice in my head, I feel after God in my spirit and have consciousness therein, and write about economics, that is ethics; specifically I write the Dispensation Economics Manifest which presents the foundation for a life of virtue and godly ethics, establishing the elect as separate from the fiat, who live in carnality and iniquity.

The Dispensation Economics Manifest, is based upon Ephesians 1:10, the biblical revelation that Jesus Christ, is operating in dispensation, that is the household management plan of God to complete and fulfill all things in every age, epoch, era and time period. This contemporary form of dispensationalism presents Fifteen Corollaries, that is Fifteen New Things, which are coming by the Economy of God to establishing the New Normal.

On Wednesday October 23, 2013, Jesus Christ pivoted World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower from their recent rally highs, and is so doing pivoted the world out of the paradigm of liberalism, which featured the democratic nation state banker economy, and into the paradigm of authoritarianism, which features the regional governance and totalitarian collectivism beast economy. In so doing he destroyed the fiat money system and introduced the diktat money system.

Corollary #1 of the Dispensation Economic Manifest presents that the former paradigm featured bankers, corporations, government, entrepreneurs, and citizens of democracies, as the legislators of economic value and the legislators of economic life.  Now, under authoritarianism, currency traders, bond vigilantes and nannycrats working in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

The rule of law, consisting of constitutions and national laws, of the state banker system increasingly exists as tombstones of the bygone era of liberalism. Regional framework agreements serve as law for the nannycrat beast system of regional governance and totalitarian collectivism in the era of authoritarianism. Libertarians perceive of themselves as sovereign individuals, but there be only One Sovereign, that is Jesus Christ. On October 23, 2013, He opened the First Seal, Revelation 6:1-2, of the Scroll, Revelation 1:1, and released the Rider on The White Horse, who has a bow without any arrows, to effect global coup d’etat, passing the baton of sovereignty from sovereign nation states to sovereign regional nannycrats, such as Mario Draghi, and sovereign regional bodies, such as the ECB.

While, I’ve taken only three college courses in economics, Economics 101, 102, and 103, I took a lot of accounting courses, to graduate from Metro State College in Denver with a B.S. Degree in Accounting. And through recent reflection I’ve come to understand that with the trade lower in World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, on October 23, 2013, Jesus Christ is operating in what Apostle Paul presents as the Economy of God in Ephesians 1:10, to open the First Seal, Revelation 6:1-2, of the Scroll, Revelation 1:1, to do away with the economic law known as the Double Entry Bookkeeping System and establish His Millenium Kingdom.

Thus, the Jesus Story, that is the Jesus Narrative. Jesus Christ is going to wipe out 6,000 years of what will be a number of global empires, so as to establish a His Kingdom on planet earth for a Sabbath’s Day’s Rest for humanity. We are on the dawning of the New Age, we are entering the Third Day, and as Jesus Christ promised that on the Third Day, he would raise up His Body, that is His Church.  It is as the Apostle Peter who relates, that with the Lord, a day is as a thousand years, and a thousand years are as a day. Most definitely it has been two one thousand year days, and on the Third Day, Jesus Christ is going to resurrect the saints to rule and reign with Him for a thousand years. What a glorious day it will be.

Jesus Christ, in opening the First Seal of The Scroll, is commencing the greatest liberation movement the world has even seen or will see. He, by releasing the Four Horsemen of The Apocalypse, is acting as The Great Liberator, as He is returning to set mankind from sin, that is doubt, and death. Genuine Liberalism, that is the movement of setting mankind free from the state, is commencing.

5) … The short selling opportunity of a lifetime has emerged as the financial markets have turned from bull to bear the week ending October 23, 2013.

Not only did the S&P 500, but the Morgan Stanley Cyclical Index, ^CYC, which is approximated by Global Industrial Producers, FXR, and Vice Stocks, traded by the Fidelity Mutual Fund, VICEX, rose to a new all time high, while the Bear Market Fund, Grizzly Short Fund, GRZZX, traded to a new all time low. The June 24, 2013 to October 22, 2013 stock market rally, known as the PBOC Monetary Stimulus, and No Taper, and ECB Bank Supervision Rally, came to an end on October 23, 2013, as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, traded lower in value.

Bespoke Investment Group posts As Bullish Sentiment Is Rising, Bearish Sentiment Plummeted To 17.6%, which is the lowest reading since January 2012! We just sent out a report to clients showing how the S&P 500 has performed following prior periods in the current bull market where bearish sentiment dipped below 20%. Clients can view the report by clicking on the link below. If you are not currently a client, sign up today for a five-day free trial and instant access. Bearish Sentiment Declines Below 20%.

The Great Bear Market of 2013, commenced on October 23, 2013, as evidenced in the Market Off ETN, OFF, rising in value. In a bull market one buys into dips; in a bear market one sells into pips.

A short selling strategy: one could sell short the 40 ETFs/ETNs, IBB, PNQI, FDN, TAN, BJK, RZV, FPX, IST, FLM, CSD, PBS, IAI, PSCI, XTN, FXR, CARZ, XRT, EUFN, PJP, SMH, WOOD, PSP, RWW, PPA, SLX, RXI, ENZL, EIRL, GREK, EWP, YAO, TUR, ARGT, EPHE, SCIN, THD, EGPT, EWZS, EWY, UJB, seen in this Finviz Screener, for great future reward as these are high beta risk averse ETFs. And one could use the 10 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, what I term the market vane ETFs, as the basis for one’s margin account, as these will increase in value with rapidly growing financial instability, as carry trades, such as the EUR/JPY and the AUD/JPY start to aggressively unwind, and as credit becomes more expensive, as will be seen in the Short Term Bond ETF, FLOT, trading lower in value.

6) … Summary

On Friday October 25,2013, The stock market bubble of all times has formed as is seen in the leverage off stocks, ETFs, and mutual funds over debt.

World Stocks relative to Aggregate Credit, VT:AGG

Eurozone Stocks relative to EU Credit, EZU:EU

Nation Investment relative to World Treasury Bonds, EFA:BWX

Vice Stocks relative to Distressed Debt, VICEX:FAGIX

A summary of this week’s trading presents the following trading activity

World Stocks, VT, +0.6; a market top on Tuesday, October 22, 2013

Nation Investment, EFA, +0.6; a market top on Tuesday, October 22, 2013

Global Financials, IXG, -0.4; a blow off market top on Wednesday, October 23, 2013

The chart of the S&P 500, $SPX, SPY, shows an Elliott Wave V High Top at  $,1759

Please consider The Dispensation Economics Manifest, which is based upon Ephesians 1:10, the biblical revelation that Jesus Christ, is operating in dispensation, that is the household management plan of God to complete and fulfill all things in every age, epoch, era and time period. This contemporary presentation of dispensationalism presents Fifteen Corollaries, that is Fifteen New Things, which are coming by the Economy of God to establishing the New Normal.

On Wednesday October 23, 2013, Jesus Christ pivoted World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower from their recent rally highs, on fears that the world central banks’ monetary policies are no longer able to stimulate global growth and trade, nor able to maintain corporate profitability, nor secure ongoing democratic nation state treasury values, and is so doing pivoted the world out of the paradigm of liberalism, which featured the democratic nation state banker economy, and into the paradigm of authoritarianism, which features the regional governance and totalitarian collectivism beast economy. In so doing he destroyed the fiat money system and introduced the diktat money system.

The ANSAMed Anna Foundation report Italy’s Debt Hits Record High Of 133.3% Of GDP In 2nd Quarter, indicates the true nature of Italy’s sovereign capability. Its level of Treasury Debt, suggests that it is an insolvent sovereign. Its seigniorage does not come from risk appraisal between bond buyers and sellers, but rather from the ECB’s monetary policies of LTRO 1 and 2, as well as OMT. And the only reason why it has fiscal capability is because of what amounts to seigniorage aid from the word, will and way of central banker Mario Draghi.

The reality is that the periphery European nations, specifically the PIIGS, that is Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns, and the European Financials, EUFN, are insolvent banks. These cannot provide stable governance; it is only through regional integration and regional governance, with a footprint of supervised banking, leading to a banking union, as well as fiscal union, and statist economic governance overseeing the factors of production, as well as commerce and trade, that regional security, stability, and sustainability can be achieved.

News reports detail the development of Eurozone regional governance. Eventually a One Euro Government, that is a European Super State, featuring a fiscal union, led by nannycrats will provide fiscal policy governance, based upon schemes of debt servitude, where money and credit will closely controlled through a banking union, MSNBC reports EU Parliament Approves Legislation Creating A Single Banking Framework For the Eurozone … Bloomberg reports the development of the Eurozone of a fiscal union relating Euro Capitals Tighten Fiscal Leash as EU Starts Austerity … Reuters reports the foundation of a banking union relating The ECB names 130 European Banks for supervision.

William F. Jasper provides a history of efforts that have been leading the development of a Federal Europe in New American article United States Of Europe:An End To Nationhood. Mr Jasper highlights Hilaire du Berrier who presented a story from the diary of Joseph Retinger that illustrates how the CFR’s agents built the movement for European merger.

Retinger was seeking more funds for the European Movement, which was headed at the time by Belgian Prime Minister Paul Henri Spaak, who was known as “Mr. Socialist. Joseph Retinger recruited Prince Bernhard of the Netherlands to host the meeting at the Hotel Bilderberg in Oosterbeek, Holland in May 1954, that launched the annual secretive Bilderberg conclaves, at which the international ruling elite meet to scheme and palaver.The first concrete step forward in the plan for abolition of the European nation-states came in 1951 with the signing of the treaty creating the European Coal and Steel Community (ECSC).

In his valuable research, Mr. Jasper provides details of how numerous individuals contributed to the development of the European Union, naming for example Monsieur Monnet, whom columnist Joseph Alsop (CFR) dubbed “the good, gray wizard of Western European union,” was appointed the first president of the powerful new ECSC.

Monnet knew full well just how powerful and revolutionary his new creation was. The Brombergers report in Jean Monnet and the United States of Europe that, when Monnet and his “brain trust” had outlined the basics of the ECSC proposal, they called in legal expert Maurice Lagrange to take care of the detail work:

Lagrange was stunned. An idea of revolutionary daring had been launched and was being acclaimed by the Six and the United States, a minerals and metals superstate.

The brain trust worked feverishly from ten o’clock in the morning until midnight, without taking Sundays or holidays off, not even Christmas day. Even the secretaries and the office boys were infected by the general excitement, by the feeling that they were part of a fantastic undertaking.

The Brombergers, who are ardent admirers of Monnet, admit the totalitarian mindset of their hero.

Gradually, it was thought, the supranational authorities, supervised by the European Council of Ministers at Brussels and the Assembly in Strasbourg, would administer all the activities of the Continent. A day would come when governments would be forced to admit that an integrated Europe was an accomplished fact, without their having had a say in the establishment of its underlying principles. All they would have to do was to merge all these autonomous institutions into a single federal administration and then proclaim a United States of Europe.

The next nail in the coffin of national sovereignty came on March 25, 1957 with the signing by the six ECSC nations of the two Treaties of Rome. These created the European Economic Community (EEC, or Common Market) and the European Atomic Energy Community (Euratom), which greatly furthered the merging of the economic and energy sectors of the member states. (The ECSC, Euratom, and EEC are now collectively referred to as the European Community or EC.) “The EEC Treaty,” said Carroll Quigley, “with 572 articles over almost 400 pages … looked forward to eventual political union in Europe, and sought economic integration as an essential step on the way.” But the merger architects settled on an approach of “patient gradualism”; what Richard N. Gardner (CFR) would later call “an end run around national sovereignty, eroding it piece by piece.” According to the late Professor Quigley, “This whole process was to be achieved by stages over many years.”

The next stages involved bringing the rest of Western Europe into the fold. In 1973, after more than two decades of resisting, the United Kingdom came in, along with Ireland and Denmark. Greece joined in 1981, bringing the number of member states to ten. Spain and Portugal became the 11th and 12th members in 1986.

The CFR spared no expense in aiding its European co-conspirators, especially Jean Monnet, to establish their dreamed-of Brave New World. A very enlightening source on this phenomenon is Insider Ernst H. van der Beugel, Honorary Secretary General of the Bilderberger Group, Vice Chairman of the Netherlands Institute for Foreign Affairs (a CFR affiliate), Harvard lecturer, etc. In his book From Marshall Aid to Atlantic Partnership, van der Beugel explained, Not only has Monnet been the auctor intellectualis of many steps on the road to European unification, he has also been a driving force in the execution of existing plans. His most remarkable capacity has been his great influence on the formulation of United States policy towards Europe. He exercised this influence through a network of close friendships and relationships, some of them going back to the pre-war period.

The principal assaults underway now include the campaigns for a European central bank, led by French President François Mitterrand, and the unified value added tax (VAT) being pushed by Jacques Delors. The major opposition to both schemes has come from Britain’s Margaret Thatcher. “A European Central Bank, in the only true meaning of the term, means surrendering your economic policy to that banking system,” said the British Prime Minister in October of 1988. “I neither want nor expect ever to see such a bank in my lifetime — nor, if I am twanging a harp — for quite a long time afterwards.”

But there are indications that the “Iron Lady” may have weakened on this matter. Du Berrier, in a recent telephone interview with The New American,  expressed grave concern over rumors that Mrs. Thatcher “may have cut some sort of deal with Mitterrand on the issues of a central bank and a common currency” during her visit with the French socialist president in Paris at the end of February.

Basil Venitis in Venitism, a blog calling for a new libertarian paradigm which integrates politics, economics, ethics, and spirituality, weeps European Countries Are Losing Their National Sovereignty.

We want the Netherlands not just out of the Eurozone, but out of the EU altogether, including the so-called Schengen area, the group of 26 European countries that have abolished passport and immigration controls at their common borders. We reserve the right to reinstall random border controls. We want to retain our independence. We want home rule! We want to be the masters in our own house! We want to be the masters over our own borders. We want to be the masters of our own money. The Party for Freedom wants the Netherlands to leave the EU and join the European Free Trade Association EFTA. But here is the good news, my friends.

We seem to be on the eve of a major and truly historic event. In Europe, the time is ripe for a glorious democratic and non-violent revolution to preserve our national freedoms and restore our sovereignty.

Next year’s European elections offer a unique opportunity to liberate the nations of Europe. Next Spring’s European elections offer a unique chance to correct the fatal error made by previous politicians who sold away their taxpayers’ money and their national sovereignty to Brussels.

As a European politician, I am fully aware of my duty to grab this chance. The European elections next May must deal a blow to the parties that sold us out to the EU. Not just in the Netherlands. But everywhere in Europe. That is why I do what is in my power to forge an alliance of democratic parties standing for the restoration of the sovereignty and freedom of their nation. I want to bring these parties together in a common endeavor to defend our identity and our values. I do not know whether I will succeed, but I am trying. It is my conviction that we have to work together. Because we are all in the same boat.

My friends, it is easy to despair. Time is running out for Britain, for France, for Germany, for the Netherlands, for all the other great nations of Europe. The present situation in Europe is bleak. If we do nothing, it will become even bleaker. If we do nothing we will be swept away by economic and demographic disaster. The nation-state is the political body in which we live. We must preserve and cherish it. So that we can pass on to our children our national identity, our democracy, our liberty.

Fraser Cameron, Senior Adviser, European Policy Centre, Adjunct Professor, Hertie School of Governance, Berlin posts in CFR Blog The European Union As A Model For Regional Integration. This essay examines the state of the European Union post-Eurozone crisis, and assesses the European Union’s prospects as a model for regional integration efforts around the globe.

I relate, the rule of law, consisting of constitutions and national laws, of the state banker system increasingly exist as tombstones of the bygone era of liberalism.  Regional framework agreements serve as law for the nannycrat beast system of regional governance and totalitarian collectivism in the era of authoritarianism. Libertarians perceive of themselves as sovereign individuals, but there be only One Sovereign, that is Jesus Christ.

On October 23, 2013, He opened the First Seal, Revelation 6:1-2, of the Scroll, Revelation 1:1, and released the Rider on The White Horse, who has a bow without any arrows, to effect global coup d’etat, passing the baton of sovereignty from sovereign nation states to sovereign regional nannycrats, such as Mario Draghi, and sovereign regional bodies, such as the ECB, as the June 24, 2013 to October 22, 2013 stock market rally, known as the PBOC Monetary Stimulus, and No Taper, and ECB Bank Supervision Rally, came to an end with World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, trading lower in value, on the ECB announcement of ECB oversight of 130 European Banks.

Liberalism’s banker regime is being replaced by authoritarianism’s beast regime; as foretold in bible prophecy of Revelation 13:1-4.  All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The periphery nations, that is the PIIGS, will exist as hollow moons revolving around planet Belgium and planet Germany. The Portugese, Irish, Italians, Greeks and Spaniards, can be neither Belgians nor Germans, yet all will be one, living in a gulag of austerity and debt servitude existing under the word, will, and way of sovereign regional technocrats.

The only two forms of sovereign and sustainable wealth are diktat, and the physical possession of gold and silver bullion. Jack Chan writing in Safehaven chart article, This Past Week in Gold, gave his buy signal to the Gold ETF, GLD.

Liberalism Attains Peak Sovereignty, Peak Seigniorage, Peak Prosperity, And Peak Clientelism, As A Deal Is Brokered To Increase Debt Limit, Fund Obamacare, And Reopen The Government After A Partial Shutdown

October 21, 2013

Financial market report for the week ending Friday October 18, 2013

1) … This weeks financial market trading.

On Wednesday, October 16, 2013, AP reports Senate Leaders Announce Deal to Avoid Default and Open Government. Senate leaders announced last-minute agreement Wednesday to avert a threatened Treasury default and reopen the government after a partial, 16-day shutdown. Congress raced to pass the measure by day’s end. And Reuters reports Wall Street climbs as Senate leaders announce fiscal deal. And AP reports Cruz won’t delay vote on bipartisan budget deal.

Mike Mish Shedlock writes Deal Brokered To Continue Bickering Through February 14. Boehner’s End Obamacare (and Lower Spending) proposals did not have a chance in the Senate,and thus were a big waste of time and energy, with Republicans taking the blame for the shutdown.

European Financials, EUFN, rose 0.6%, as Ireland’s Bank, IRE, rose 6.3%, and Spain’s Banco Santander, SAN, rose 2.7, to new rally highs. The Too Big To Fail Banks, RWW, rose 1.8%.

World Stocks, VT, rose 1.1%, and Nation Investment, EFA, rose 0.8%, both rising near their September 20, 2013, highs.  US Stocks, VTI, 1.4%, rose to a new rally high. Eurozone Stocks, EZU, 1.0%, rose to a new rally high.

Nasdaq Large Caps, QQQ, rose 1.2%, to a new rally high.

Global Industrial Producers, FXR, rose 1.0% to a new rally high, with Boeing, BA, 1.8%, achieving  a new rally high.

Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging World Currencies, CEW, such as the Indian Rupe, ICN, rose strongly near their September 20, 2013, highs.

The Australian Dollar-Japanese Yen currency carry trade, AUD/JPY, rose to close higher at 94.32, taking Australia, EWA, and New Zealand, ENZL, to new rally highs.

And, The Euro-Yen currency carry trade, EUR/JPY, rose to close higher at 133.63, taking Eurozone Stocks, EZU, Ireland, EIRL, Spain, EWP, Italy, EWI, to new rally highs.

Stock sectors rising strongly included the following:

Nasdaq Biotechnology, IBB 3.1%, includes stocks such as Gilead Sciences GILD, 3.2%, and Celgene, CELG, 2.0%

Energy Production, XOP 2.8%, includes stocks such as PXD, 6.1, CLR, 3.1 NBL, 2.8, APC, 1.8, COP 1.5, EOG, 1.4, all to new rally highs

IPOs, FPX 1.8%,

Spin Offs, CSD, 1.8%

Retail, XRT 1.7%

Health Care Providers, IHF, 1.5%, to a new rally high

Internet Retail, FDN, 1.5%

Yield Bearing Sectors rising strongly included

Leveraged Buyouts, PSP 1.6%, to a new rally high, includes stocks such as Delphi, DLPH

Global Telecom, IST 1.5%, to a new rally high

Aggregate Credit, AGG, rose, as the Interest Rate on the US Note, TNX, closed at 2.67%. Liberalism’s metric of credit liquidity, Flot, FLOT, rose to a new rally high, as Ultra Junk Bonds, UJB, and Junk Bonds, JNK, rose strongly; Build America Bonds, BABS, Zeroes, ZROZ, 30 Year US Government Bonds, EDV, and US Treasuries, TLT, also rose strongly, taking Aggregate Credit, AGG, higher.

Liberalism, the age of investment choice, is based upon world central bank policies of investment choice and schemes of leveraged credit and leveraged carry trade investment, is attaining peak sovereignty, peak seigniorage, and peak prosperity, on October 16, 20123, as Republican Senator Boehner failed to defund Obamacare, and ceded to Democrat demands for an increase in the debt limit, and reopened the government after a partial shutdown.

Obamacare and massive ongoing deficit spending defines Liberalism’s peak democratic nation political experience. The CNBC report Vast Majority Of Obamacare Exchange Visitors [99.6 percent] Don’t Enroll, suggests that Obamacare is a disaster waiting to happen, when it fully comes on line as Elizabeth Lee via Casey Research writes in Zero Hedge Ten Things to Expect from Obamacare in 2014

On Thursday, October 17, 2013, In the wake of the political deal in Washington to fund Obamacare and raise the US Debt, World Stocks, VT, rose 1.0%, to a five year high, Nation Investment, EFA, rose 1.3%, and Global Industrial Producers, FXR, rose, 0.8%, all rallying to new highs, on monetization of debt stemming from a sell of the US Dollar, $USD, which traded strongly lower to close at 79.72, as the Euro, FXE, blasted strongly higher to 135.35. 

The Finviz daily chart presentation of the Euro, FXE, at 135.35, is truly an awesome thing; it’s terrific that the Euro would rise to its February 2013 level given the fact that the European Banks, EUFN, are loaded to the gills with really worthless PIIGS sovereign debt.  The Euro’s strength is not a function of  free market place trading between buyers and sellers of nation state treasury debt; but rather the Euro has been given seigniorage by the sovereignty of one man, that being the ECB’s Mario Draghi. Not only is the Euro standing at 135.35 an awesome thing, it is truly and epic, and pivotal thing; and it is also a terminal thing.

Benson te communicates that the profound strength of the Euro is a product of Mario Draghi’s’ vision and intervention. ECB’s Mario Draghi’s “do whatever it takes to save the euro” via a bond buying guarantee program [the unused Outright Monetary Transactions (OMT)] as well as the previous or OMT’s predecessor Long Term Refinancing Operations (LTRO). The LTRO has also functioned as credit subsidies to the banking system. The LTRO, the ECB learned lately, has entrenched the dependence of the banking industry, where the latter can hardly wean away from the LTRO without disorderly adjustments. Also the Spanish government via Social Security Funds and other public pensions, as well as, the banking (€225 bn in March) and financial sectors have been made to support sovereign bond prices. The banks likewise use these bonds as collateral to draw loans on the ECB. By keeping rates low, banks and the Spanish government benefits from these political subsidies financed by the economy.  I comment that the ECB certainly has role has been greatly extended beyond its price stability mandate, to be actively involved in supporting EU economic policies.

The US Dollar’s dramatic fall lower is seen in the chart of the 200% ETF, UUP, trading parabolically lower, as currency traders bought the Major World Currencies, DBV, such as FXB , FXF, FXS, FXE, FXA, FXC, and FXY, and Emerging Market Currencies, CEW, such as BZF, ICN, which can be seen in the trading of these financial instruments in their Finviz Screener

With this week’s strong trade in Euro-Yen currency carry trade, that its the EUR/JPY, FXE:FXY, and the Australian Dollar-Yen currency carry trade, AUD/JPY, FXA;FXY, coupled with the strong surge in risk free lending, seen in the chart of the short term credit ETF, FLOT, which is translated into a parabolic rise in World Stocks, VT, it is reasonable to perceive that peak fiat money has been achieved, and that Major World Currencies, DBV, an Emerging Market Currencies, CEW, will be trading lower, as investors pivot from risk-on investing to risk-off investing, deleveraging out of risk assets.      

Global Financials, IXG, rose a stunning 1.3%, higher, taking Nation Investment, EFA, 1.3%, higher. The world’s leading banks can be followed in this Finviz Screener.

European Financials, EUFN, rose 1.5%, with Ireland’s Bank, IRE, rose, 5.8%, The National Bank of Greece, NBG, 4.4%, Spain’s Banco Santander, SAN, 2.0%.  These banks drove Ireland, EIRL, up 0.9%, Greece, GREK, up 4.0%, Spain, EWP, up 1.5%, and Italy, EWI, up 1.2%. The rise in European Financials drove Eurozone Stocks, EZU, up 1.1%, and blasted Eurozone Debt, EU, up 2.0%. 

The Too Big To Fail Banks, RWW, rose 0.7%, and Regional Banks, KRE, 0.6%, taking US Stocks, VTI, up 0.7%, the S&P, SPY, up 0.7%, and the especially credit and carry trade sensitive Russell 2000, IWM, up 0.9%.

South Korea’s Banks, KB, rose, 3.9%, WF, 2.8% and SHG, 2.3%, taking South Korea, EWY, 1.0% higher.  

Australia’s Westpac Bank, WBK, rose 2.9%, taking Australia, EWA, 1.5%, Australia Small Caps, KROO, 1.3%, and New Zealand, ENZL, 1.3%, higher.

The UK’s Bank, LYG, rose 2.3%, taking, the UK, 1.7%, and UK Small Caps, EWUS, 1.8%, higher. 

Switzerland’s Bank, CS, rose 1.5%, and UBS, rose 1.5%, taking Switzerland, EWL, 2.2% higher.

Other nations trading higher included the following. In Asia, Thailand, THD, 1.8%, the Philippines, EPHE, 1.5%. In South America, Argentina, ARGT, 1.3%. In Europe, Norway, NORW, 1.7%, and Sweden, EWD, 1.3%.

Sectors trading higher included

Home Building, ITB, 3.2

Spin Offs, CSD, 1.5

Pharmaceuticals, PJP, 1.5

Solar Energy, TAN, 1.2

Small Cap Pure Value, RZV, 1.2

Aerospace, PPA, 1.1

Transportation, XTN, 1.1

Paper and Lumber Producers, WOOD, 1.1

IPOs, FPX, 1.1

Small Cap Industrials, PSCI, 1.0

Of note, Global Consumer Staples, KXI, which had been strongly sold off rose 1.5%.

Yield bearing sectors trading higher included

Global Real Estate, DRW, 1.5

Real Estate, IYR, 1.6

Mortgage REITS, REM, 2.8

Industrial and Office REITS, FNIO, 1.7

Residential REITS, REZ, 1.7

Small Cap Real Estate, ROOF, 1.0

Utilities, XLU, 1.6

US Telecom, IST, 1.6

Leveraged Buyouts, PSP, 1.2

Global Utilities, DBU, 1.0

Shipping, SEA, 1.0

The chart of Euro-Yen currency carry trade, EUR/JPY, presented as FXE:FXY, trading higher at 33.92, together with the chart of Australian Dollar-Yen, AUD/JPY, currency carry trade, presented as FXA:FXY, trading unchanged at 94.31, communicate the zenith of liberalism’s schemes of carry trade investment.   

The rise in the credit ETF FLOT, to an all time high, and strong rise in Ultra Junk Bonds, UJB, and Junk Bonds, JNK, communicates the zenith of liberalism’s schemes of credit.

Aggregate Credit, AGG, rose strongly as The Interest Rate on the US Ten Year Note, ^TNX, dropped sharply to 2.59%, and the Steepner ETF, STPP, dropped sharply to close at 38.95. Debt rose strongly as follows:

International Treasuries, BWX, 1.3

Long Duration Corporate Bonds, BLV, 1.0

Emerging Market Bonds, EMB, 0.8

Mortgage Backed Bonds, MBB, 0.4

Government Bonds, GOVT, 0.4

Zeroes, ZROZ, 1.8

30 Year US Treasuries, EDV, 1.7

10 Year US Government Notes, TLT, 0.9

On October 17, 2013, liberalism is achieving peak fiat wealth, as stocks rose beyond their No Taper Rally highs of September 20, 2013 to rally strongly higher. Liberalism’s flagship investments include, Boeing, BA, BE Aerospace, BEAV, Celgene, CELG, and Dow Chemical, DOW.

The concept that peak money is being achieved on October 17, 2013, is seen in Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading up to strong resistance; look for competitive currency devaluation to recommence drawing these lower once again, as bond vigilantes call the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.59%.  

The strong rise in European Financials, EUFN, taking the Eurozone Stocks, EU, and Eurozone Debt, EU, to stratospheric levels, is truly unprecedented, and is something beyond irrational exuberance, something beyond tulip mania, best described by Nature Economist Elaine Meinel Supkis as Attaining Infinity; something that only the gods can experience.  The leverage of the Euro, EURUSD, is seen in the Stockchats.com chart of Eurozone Stocks, EZU, relative to Eurozone Debt, EU, … EZU:EU.  

Liberalism’s gods be the US Dollar Hegemonic Empire, with its deficit spending and provision of Obamacare, the Milton Friedman Free To Choose Banker Regime, Mario Draghi OMT credit liquidity, and the Eurozone’s Austerity Hawks; these are reigning in peak sovereignty on October 17, 2013.

Keynesian Ambrose Evans Pritchard writes of liberalism’s peak Eurozone technocratic governance fiscal policy Ireland: The Poster Child Of Internal Devaluation And Austerity. Labour leader Eamon Glimore has long been grumbling that EU ideologues treat his country like “some type of economic experiment for austerity hawks”.

To the extent that Ireland is recovering, this is because its people are formidably enterprising and have an ultra-open economy with a high enough trade gearing to withstand the combined shock of a fiscal squeeze equal to 19pc of GDP and a double-digit collapse of the money supply.

The Celtic Tiger has never been seriously uncompetitive within the euro, and it needs no lessons on free markets from Brussels. It places 15 on the World Bank’s ease of doing business index, the best EMU state after Finland, compared to: Portugal (30), Spain (44), Italy (73), and Greece (78). Note that Ireland has slipped from 7th place since it submitted to EU suzerainty three years ago. As the Irish trade unions have said all along, Troika medicine is brutish austerity and nothing else.

Germany’s Wolfgang Schauble repeated this week that Ireland can expect no help on legacy assets. “Ireland did what Ireland had to do and now everything is fine,” he said. Whether everything is fine is a matter of dispute. Ireland’s budget deficit is still 7.3pc of GDP. Public debt is 123pc, near the point of no return. “The debt is massive. There is almost no domestic growth. In the end they are going to need debt restructuring,” said Ms Greene. US investor Franklin Templeton made a fortune buying up a tenth of Ireland’s debt stock in the dark days, and so have others. Ireland’s 10-year yields are down to 3.67pc. Kudos to them, but Moody’s still rates Irish debt as “junk”, citing the risk of economic stagnation for the debt trajectory. Household debt is still 200pc of income (IMF), while the assets that underpin it are greatly shrunken after a 57pc fall in house prices. Mortgages in arrears by 180 days are at a record 17 percent.

Whether or not Ireland can pull through depends on trade, and in this respect the country tells us nothing about prospects for Club Med. Irish exports of goods and services are 108 pc of GDP, compared to: Portugal (39pc), Spain (32pc), Italy (30pc), and Greece (27p). In other words, it is three times easier for Ireland to claw its way back to viability through trade, and even so it has not been easy. The ‘patent cliff’ — as Viagra and Lipitor go generic — has cut exports by 17pc over the last year. Yet the country at least has a current account surplus of 2.3pc of GDP. Its great gamble two decades ago has paid off. The niche industries of IT, pharma, and financial services have all reached critical mass.

No doubt large pockets of Spain can replicate this feat. The Basque country comes to mind. But Spain has a much bigger hill to climb. It has turned a deficit of 10pc of GDP five years ago into a 1.3pc surplus this year, but chiefly by crushing internal demand. The export surge has tapered off.

The IMF says gains in Spanish unit labour costs (ULC) are a productivity illusion caused by mass unemployment. The harsh reality is that Spain’s net international investment position is still minus 90pc of GDP and even in depression with a jobless rate of 26pc the country still imports too much to cover this imbalance.

Nothing is written in stone. Whether Ireland or any other EMU victim state can claw its way back to viability depends on the actions of the ECB. If Frankfurt reflates aggressively, Ireland can undoubtedly make it, and perhaps Spain as well in an ideal world. If it continues to let debt-deflation run its course, even the poster child is doomed.

Liberalism’s sovereigns, these being US Dollar Hegemonic Empire, with its deficit spending and provision of Obamacare, the Milton Friedman Free To Choose Banker Regime, Mario Draghi OMT credit liquidity, and the Eurozone’s Austerity Hawks; have given stunning seigniorage to fiat assets, completing liberalism’s age of investment choice, bringing its schemes of credit and currency carry trade investment, to their zenith, establishing peak seigniorage on October 17, 2013.  Zero Hedge reports Stocks Best 6-Day Swing in 20 Months As USD Collapses And Gold Soars. And Tyler

Durden writes in Zero Hedge communicating peak clientelism Entitlement Nation, Now And Forever.

Ambrose Evans Pritchard further relates Washington Truce Stretches Out Debt Crisis. Festering political conflict as “a Sword of Damocles”, with politicians facing three more showdowns until March. And Mr Pritchard also writes China’s Soaring Fiscal Deficit Rings Alarm Bells

As interest rate risk rises, the Steepner ETF, STPP, will once again rise in value. It rose in value, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened beginning in May 2013, running through September 1, 2013, as bond vigilantes gained control of the Interest Rate on the US Ten Year Note, $TNX, causing a steepening of the 10 30 US Sovereign Debt Yield Curve, that is $TNX:$TYX. But then from early September to October 4, 2013, the Steepner ETF, STPP, declined in value, as the Interest Rate on the US Ten Year Note, $TNX, fell to its October 4. 2013, rate of 2.65%; and then on October 7, 2013, the Steepner ETF, STPP, took a real hit, trading lower, in strong volume, to close at 39.30. And on October 17, 2013, the current rise in the Steepner ETF, STPP, closed strongly lower  at 38.95. When the steepener ETF, rises once again, not only will it communicate a steepening yield curve, but also a defining indicator, of the sea-saw destruction of liberalism’s fiat money.

Jesus Christ acting in the economy of God, that is in the administration of all things economic and political, a concept presented by the Apostle Paul in Ephesians 1:10, to oversee the completion and fulfillment of Liberalism’s age of investment choice, and its policies of credit liquidity and carry trade investing; where the Milton Free To Choose, Floating Currency, Banker regime, based upon the sovereignty of democratic nation states, has provided seigniorage. The Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Far East Financials, FEFN,  Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, have produced a terrific moral hazard based peak prosperity.

Through His empire building process, He has produced the US Dollar Hegemonic Empire that spans the globe, existing as the best example of a kick-ass, might makes right, government. Jesus has always been efficient in producing kingdoms. And now Liberalism stands at its zenith of dominion, with banking and nation state despots ruling at will. The Telegraph reports The Sun Is Setting On Dollar Supremacy, And With It, American Power. And Liu Chang writes in xinhuanet US Fiscal Failure Warrants a De-Americanized World. And Spiegel write US Democracy Is Nearing Its Limit.  And Follow the Money writes The Twilight Of American Hegemony.

In contrast, authoritarianism is emerging as the age of diktat based upon debt servitude, where there are no central bank monetary policies providing rewards for investment choices, only regional nannycrat policies of diktat, establishing regional governance and totalitarian collectivism.

All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The Irish, Greeks, Italians, and Belgians cannot be Germans, yet all will be one, living under the word, will, and way of sovereign regional technocrats. Debt servitude, poverty and austerity is the object of the Lord’s new endeavor.

Authoritarianism features the Beast Regime, where leaders will meet in summits and workgroups to waive national sovereignty and establish regional pooled sovereignty, as The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1-2, is effecting coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule in public private partnerships, providing seigniorage through oversight of the factors of production, commerce, banking and trade, all for regional security, stability and sustainability. In as much as the banker and nation state model is gone, there is no International Reserve Currency; rather there are regional alliances which feature undollar economic transactions, featuring regional currencies and regional bartering arrangements, as seen in the Iranian.com report China Pushes Yuan To Freeze Out The US.

Jesus Christ, acting in the economy of God will be overseeing the exhaustion of the US Fed’s monetary policies of easing, which came as the provision of QEternity, constituted a crossing of the Rubicon of sound monetary policy, and will be destabilizing global economics, and pivoting the world from liberalism’s Banker regime of democratic nation states, into authoritarianism’s Beast regime of regional governance and totalitarian collectivism, as presented in Revelation 13:1-4.

The bust phase of the business cycle, comes after the boom phase, which came through world central bank monetary intervention, will be resolved by ten kings rising in authority and power, to establish regional integration for regional security, stability, and sustainability, as Revelation 17:12, relates, “The ten horns of the Beast are ten kings who have not yet risen to power. They will be appointed to their kingdoms for one brief moment to reign with the beast”. Satan, Lucifer, The Devil, is in control of the Beast, as Revelation 12:6, relates, “And there was seen another sign in heaven; and behold, a great red dragon, having seven heads and ten horns, and upon his heads seven diadems.”

Bible prophecy reveals that God has destined eight empires to rule over humanity; the first five empires are Babylon, Medo-Persia, Greece, The Old Roman Empire, The Ten Kingdoms, Daniel 2:25-45, the sixth is the Great Tribulation, Daniel 7:25, the seventh is the Millennial Kingdom, Revelation 20:1-6, and the eighth is The Everlasting Kingdom, Daniel 7:27. 

Major World Currencies, the Japanese Yen, FXY, the Euro, FXE, the Canadian Dollar, FXC, the British Pound Sterling, FXB, the Swedish Krona, FXS, the Swiss Franc, FXF, and the Australian Dollar, FXA, as well as Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, and the Indian Rupe, ICN, as well as Stocks, DBV, and Bonds, BND, will all be falling into the Pit of Financial Abandon, as investors find that liberalism’s sovereigns, these being THE Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Far East Financials, FEFN,  Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, will no longer be able to provide seigniorage, by leveraging fiat money higher over debt. This being seen in the chart of World Stocks, VT, relative to Aggregate Credit, AGG … VT:AGG .. trading lower in value. Stocks will no longer be leveraging higher on credit and currencies: fiat money literally will be disintegrating on the collapse of nation state sovereignty.

Out of a soon coming Financial Armageddon, that is a credit bust and financial system breakdown, presented in Revelation 13:3-4, authoritarianism’s new sovereigns, that being regional nannycrats, as well as Europe’s Sovereign, described in Revelation 13:5-10, and his partner, the Eurozone’s Seignior, Revelation 13:11-18, will rise to power, establishing regional sovereignty and providing diktat money to replace fiat money.

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

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

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

Said another way, the extinguishment of Nation Investment, EFA, on the failure of credit and carry trade investment, will destabilize liberalism’s nation state sovereignty, and its banker seigniorage.

The new economic and political paradigm of authoritarianism, will rise through sovereign insolvency and banking insolvency, as foretold in Revelation 13:3-4, that being a Minsky Moment, where European leaders will renounce national sovereignty, pool regional sovereignty, and announce regional framework agreements that appoint regional nannycrats sovereign, who will oversee the seigniorage of public private partnership, as they issue mandates for regional security, stability, and sustainability.

Liberalism is characterized by trust in bankers, stock brokers, and asset managers, to the point of being insestious, through US Fed and other world central bank monetary policies such as POMO. But authoritarianism is characterized by trust in the word, will and way of the regional nannycrats; so much so that the Apostle Paul wrote in Revelation 13:3-4, that All the world marveled and followed the beast; so they worshiped the dragon who gave authority to the beast; and they worshiped the Beast.

Soon, Nation Investment, EFA, will trade lower on awareness that the US Fed’s monetary policies no longer stimulate global growth and trade, and have actually turned” money good” investments bad, as well as on awareness of European nation state political and banking instability.

Fiat money will be dying soon, and will be seen in World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower, terminating the sovereignty of democratic nation states and terminating the seigniorage of the world central banks. Confirmation of such will be seen in THE Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Far East Financials, FEFN,  Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, trading lower in value.

There has been an unprecedented and truly fantastic strong drive for risk assets, such as Small Cap Pure Value Stocks, RZV, Solar Energy, TAN, Resorts And Casinos, BJK, Clean Energy, PBD, Global Utilities, DBU, Small Cap Industrials, PSCI, Steel Producers, SLX, Stock Brokers, IAI, Global Telecom IST, and Semiconductors, XSD, driven by the credit and carry trade investing.

Correspondingly, the demand for genuinely safe assets, that is something of worth, not something of fiat mandate, has been quite low. But this is changing, as gold is going higher, and will heading awesomely higher, very soon as investors derisk out of credit enabled and carry traded risk assets.  Spot Gold, $GOLD, will be trading consistently higher from its recent low of $1,260; the Gold ETF, GLD, will be trading consistently higher from its recent low of 122.

On October 17, 2013, the chart of Spot Gold, $GOLD, rose to $1,320; and the chart of the Gold ETF, GLD, rose to 127; on a strongly lower US Dollar, $USD, which closed at 79.72. Business Insider posts 50 Charts That Every Gold Investor Will Love. And Gregor Horvat of EWForecast writes in Safehaven.com chart article GOLD Breaking Out Of Downward Channel; Two Elliott Wave Counts Are Pointing Towards 1375

Gold Miners, GDX, such as EGO and IAG, GDXJ and Silver Miners, SIL, SILJ, SSRI, seen in this Finviz Screener, rose strongly on the day; Nelson Hem writes in Benzinga Gold Miners Sqw Their Short Interest Plunge More Than 60 Percent. And Energy Producers, XOP, and Small Cap Energy, PSCE, rose even as Bloomberg reports Crude Drops As API Reports Increase in U.S. Inventories.

Railroads, led by Union Pacific, UNP, seen in this Finviz Screener, traded lower. Yahoo Finance Chart of S&P Transports, XTN, and Railroads, shows that the Railroads have been lagging investment growth for the last week.

On Friday, October 18, 2013,

The chart of the S&P 500, $SPX, traded by the ETF, SPY, rose 0.7% for the day, to complete a 2.5% rise for the week, to stand at an Elliott Wave 5 High, saluting liberalism’s peak sovereignty, as seen here in chart in George Krum Safehaven.com article The State Of The Trend at a price of 174.39.  

Stephen Dinan of The Washington Times reports, “US debt jumped a record $328 billion on Thursday, the first day the federal government was able to borrow money under the deal President Obama and Congress sealed this week. The debt now equals $17.075 trillion, according to figures the Treasury Department posted online on Friday. The $328 billion increase shattered the previous high of $238 billion set two years ago. The giant jump comes because the government was replenishing its stock of ‘extraordinary measures’ , the federal funds it borrowed from over the last five months as it tried to avoid bumping into the debt ceiling. Under the law, that replenishing happens as soon as there is new debt space. In this case, the Treasury Department borrowed $400 billion from other funds beginning in May, awaiting a final deal from Congress and Mr. Obama.”

The chart of the US Dollar, $USD, closed the week down 1.0% at 79.68. Chris Ciovacco posts the Safehaven.com chart article Markets Pop On Weak US Dollar, communicating that it was an ugly week for the US Dollar.  

Inasmuch as the US Dollar is the world’s reserve currency and has been driven terrifically lower by the currency traders supporting a rally in risk assets, an ugly week for the US Dollar, $USD, translates into the death of the Milton Friedman Free To Choose Floating Currency System, and the speculative leveraged banker remine that rode this workhouse into the ground. The world now stand at Peak Currency. Inasmuch as chart show Peak British Pound Sterling, FXB, Peak Euro, FXE, Peak Indian Rupe, ICN, Peak Brazilian Real, BZF, and Peak Australian Dollar, FXA, have been achieved, the world is going to experience massive and quick competitive currency devaluation at the hands of the currency traders as they sell currencies short, which will be made even more intense at the hands of the bond vigilantes as they call interest rates higher globally on World Treasury Bonds, BWX, and Emerging Market Bonds, EMB.  

The chart of the AUD/JPY closed up at 94.59, taking Australia, EWA, and Australia Small Caps, KROO, higher. The Geek Knows presents The Daily Chart of the AUDUSD, and remarks, Looking at the AUD/USD  we note that the currency pair left the previous region behind and climbed further on the heels of bullish momentum. And ForexAchievers presents The Weekly Chart of the AUDUSD, and remarks, This is the AUD/USD, as you can see on this chart, the pair is hitting a support turned resistance area.

The chart of the EUR/JPY closed at 133.87, taking Eurozone Stocks, EZU, higher. ActionForex presents the Chart of the EURUSD. I comment that it certainly has attained strong resistance. 

The chart of FLOT, closed at 50.69, and Ultra Junk Bonds, UJB, closed at 54.55, both indicating ongoing credit liquidity

Small Cap Energy, PSCE rose 1.4%, and Energy Production, XOP rose 1.3%

Sectors trading higher included

Nasdaq Internet, PNQI 3.5%

Internet Retail, FDN 3.2

Resorts and Casino, BJK 2.0

Solar Stocks, TAN 2.0

Small Cap Pure Value, RZV 1.8

Media, PBS 1.6

Nasdaq Internet, QQQ 1.6

Small Cap Industrial, PSCI 1.4

Global Industrial Producers, FXR 1.2

China Industrials, CHII 1.2

Computer Spin Offs, CSD 1.2

Networking, IGN 1.2

IPOs, FPX 1.1

Design Build, FLM 1.1

Stockbrokers, IAI 1.1

Transportation, XTN 1.0

Retail, XRT 1.0

Countries trading higher included

Greece, GREK 3.8%

Argentina, ARGT 2.1

Egypt, EGPT 1.5

Sweden, EWD 1.4

Norway, NORW 1.2

Australia, EWA 1.2

Australia Small Caps, KROO 1.3

US Small Caps, IWM 1.1

Yield Bearing Sectors trading higher included

Leveraged Buyouts, PSP 1.1%

Health Care Providers, IHF, WLP, UNH, ESRX, WLP, AET, CI, traded strongly lower. 

Summary of financial market activity for the week ending Friday October 18, 2013

Doug Noland writes in Safehaven.com Terminal Phases Upon this week’s legislation to reopen the government and raise the debt ceiling, the President stated that there were “no winners.” Yet equities (and, more generally, financial asset) investors and speculators did just fine.

I relate that sectors rising the week ending October 18, included the following, with the more risky assets clearly outperforming all others.

Energy Production, XOP 6.2% and Small Cap Energy Production, PSCE 4.1%.

Solar Stocks, TAN 6.2%, #1 ETF with year-to-date performance of 152% gain.

Social Media, SOCL 5.1, #2 ETF with year-to-date performance of 60% gain.

Enviornmental Services, EVX 4.9

Nasdaq Internet, PNQI 4.5, #3 ETF with year-to-date performance with 53% gain.

Internet Retail, FDN 4.3, #5 ETF with year-to-date performance with 47% gain.

Resorts and Casinos, BJK 4.2

Computer Spin Offs, CSD 3.8

Small Cap Pure Value, RZV 3.7

IPOs, FPX 3.6

Paper and Lumber Producers, WOOD 3.5

Stockbrokers, IAI 3.5

Global Industrials, PSCI 3.3

Transportation, XTN 3.3

Pharmaceuticals, PJP 3.2

Media, PBS 3.0

Biotechnology, IBB 3.0 #5 with ETF year-to-date performance with  50% gain.

Yield Bearing Sectors trading higher included

US Telecom, IST 4.0%

Leveraged Buyouts, PSP 3.8

Countries trading higher included

Greece, GREK 8.6% as NBG rose 20.6%

Argentina, ARGT 5.7

Australia Small Caps, KROO 5.5

Spain, EWP 4.8  as SAN rose 7.5%

Ireland, EIRL 4.4 as IRE rose 14.1%

Italy, EWI 3.1

The strong rally in Eurozone periphery nation equity markets drove down the corresponding Treasury Debt rates, as Doug Noland writes Ten-year Portuguese yields increased 2 bps to 6.15% (down 60bps y-t-d). Italian 10-yr yields fell 11 bps to 4.16% (down 34 bps). Spain’s 10-year yields declined 4 bps to 4.24% (down 103 bps).

Debt trading higher included

Ultra Junk Bonds, UJB 3.0%

Doug Noland continues, On a weekly basis, I track global central bank International Reserve Assets (data from Bloomberg). This data provide a decent proxy for global financial flows, especially to the emerging markets (EM). From $6.63 TN back in April of 2009, International Reserves surged this week to a record $11.415 TN. Reserves have inflated 330% in ten years. Reserve Assets showed atypically slow growth between May 10th ($11.124 TN) and September 20th ($11.174 TN), not coincidentally a period a heightened EM instability. Courtesy of the Fed, BOJ, and Chinese, the “money” spigot was reopened.

China’s International Reserves jumped a notable $164bn during the third quarter to a record $3.660 TN (from $250 billion when Dr. Bernanke joined the Fed back in 2002). This compares to Q2 growth of $54bn. The People’s Bank of China this week stated that trade and capital-related inflows were again bolstering excess: “The pressure for monetary and credit expansion is still large.” Myriad data, including stronger-than-expected 7.8% Q3 growth, support the view of a meaningful pickup in Chinese activity. And while the consensus sees China’s recovery as fundamental to a bullish global backdrop, I’ll offer a contrary opinion.

My Macro Credit thesis holds – and there is ample fundamental support for – the view that we’re now five years into history’s greatest global Bubble. I have posited that China is deep into its “Terminal Phase” of Credit excess. With China’s 1.35 billion people and Trillions of unrestrained Credit expansion, I’ll argue China’s “Terminal Phase” is integral to the overall “Terminal Phase” of a most protracted and dangerous global Credit Bubble.

In general, post-2008 global monetary inflation pushed EM to precarious “Terminal Phase” Bubble excess, leaving deep wounds of economic maladjustment and financial fragility.

I believe the initial cracks in the EM Bubble developed this spring. Market turbulence from May and June provoked further global monetary accommodation, which somewhat reshuffled the deck in the global liquidity chase. And I wouldn’t be surprised if history looks back at this period as a final manic speculative blow-off in U.S. and global equities.

Despite generally bullish sentiment, I continue to believe that China faces serious imminent issues. Chinese officials in early June moved belatedly to try to rein in runaway Credit excesses. Not surprisingly, an increasingly powerful Credit expansion and attendant asset Bubbles were impervious to cautious attempts to restrain mortgage and local government borrowing. When they resorted to more aggressive actions in June, financial and economic fragilities forced officials to quickly retreat from tightening measures. And, not surprisingly, Credit excess bounced right back as powerful as ever.

The value of China’s September residential apartment sales surged 34% from August to $113bn. Year-to-date sales are running up about 35% from 2012. After bouncing back strongly in August (almost doubling July), September’s total system Credit growth (“social financing”) was reported at a stronger-than-expected $230bn. This puts year-to-date “social financing” at about $2.25 TN, a pace almost 20% above a record 2012. Some reports have mortgage Credit growing at a rate about 50% faster than last year. Forecasts are calling for Q4 corporate bond issuance to jump to $135bn from Q3′s $40bn.

There are multiple facets of “Terminal Phase” Credit Bubble excess at play today in China. In asset-based lending Bubbles, the rapid growth in both transactions and prices combine for exponential growth in underlying mortgage Credit. It’s worth recalling that annual U.S. mortgage Credit growth increased annually from 1997′s $313bn to 2003′s $1.011 TN to 2006′s $1.410 TN. Importantly, along with the exponential rise in mortgage borrowing comes a corresponding spike in the riskiness of late-cycle lending booms. Indeed, and fundamental to Credit Bubble analysis, “Terminal Phase” excesses foster an unsustainable parabolic rise in Credit and economic risks. Systemic stability becomes a major concern anytime circumstances dictate that officials prolong the “Terminal Phase.”

The surge in risky credit tends to have myriad distorting effects on financial and economic systems.

On the financial side, increasingly creative/aggressive risk intermediation is required to transform progressively risky mortgage debt into more “money”-like instruments palatable to savers, speculators and institutional holders. In the U.S. and now in China, so called “shadow banking” came to play an instrumental role. Here in the U.S., 2006′s $1.0 TN of subprime CDOs (collateralized debt obligations) provided the fateful risk intermediation mechanism. In China’s historic “shadow bank” Bubble, there is huge ongoing growth in trust deposits and various “wealth management” vehicles. A rapidly expanding chasm – between the perceived safety of “money”-like deposits/savings vehicles and the mounting risks inherent in system Credit – is fundamental to “Terminal Phase” processes and fragilities.

There is another key “Terminal Phase” dynamic at work in the Chinese Bubble, as was (and remains) the case in the U.S and elsewhere. As late-cycle financial and economic Bubble risks grow exponentially, policymakers turn increasingly timid. Powerful Bubble Dynamics become impervious to policy “tinkering,” while officials come to see the environment as too risky to implement the type of stringent (pain-inflicting) tightening measures required to quash (now well-entrenched) inflationary biases and rein in increasingly destabilizing excess. The above reference to “serious imminent issues” reflects my expectation that the Chinese are likely gearing up for another stab at restraining Credit Bubble excess. It’s reasonable to presume they won’t do anything that would cause serious disruption. Yet, from my perspective, if they are serious about disrupting an increasingly destabilizing Bubble, there is no way around major global ramifications. And with international securities markets turning more intensely overheated by the week, this creates a potentially volatile dynamic.

There were more rumblings out of Beijing this week. At this point, it’s difficult to gauge whether they are more frustrated with Congress or the Federal Reserve. One of these days they may even be willing to rein in their Credit system and let the global chips fall where they will. Perhaps even one of these days global policymakers may actually part ways in what has been to this point concerted efforts to reflate global economies and markets. Over time, when monetary inflation’s fog begins to break, those on the losing end of inflationary processes begin to see things a little more clearly.

I conclude that the 40 ETFs presented in this Finviz Screener, which can be replicated in a Finviz Portfolio, to experience sharp deleveraging. These are IBB, PNQI, FDN, TAN, BJK, RZV, FPX, IST, EVX, CSD, PBS, IAI, PSCI, XTN, FXR, CARZ, XRT, EUFN, PJP, XSD, WOOD, PSP, RWW, PPA, RXI, SOCL, ENZL, EIRL, GREK, EWP, YAO, TUR, ARGT, EPHE, SCIN, THD, EGPT, EWZS, EWY, UJB,

And I conclude, that the 10 ETFs presented in this Finviz Screener, which can be replicated in a Finviz Portfolio, to experience appreciation. These are OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY; and could serve as the basis of margin short selling account.

As Mr. Noland relates “The surge in risky credit tends to have myriad distorting effects on financial and economic systems”. Risky credit is seen the demand for Ultra Junk Bonds, UJB, as well as margin credit and currency carry trade lending which fueled the great gains in the above listed ETFs.

John Detrixhe of Bloomberg reports, “Carry trades are making investors the most money in more than a year after U.S. budget brinkmanship pushed back estimates of when the Federal Reserve will begin paring its monetary stimulus program. Deutsche Bank AG’s G-10 FX Carry Basket index has gained 4.6% since Aug. 30, poised for its biggest two-month gain since rising 4.8% from June to July 2012. Confidence in trades where investors borrow in countries with low interest rates and use the proceeds to invest in those with higher rates has also been supported by the lowest volatility since January.”

Soon bond vigilantes will call the Interest Rate on the US Ten Year Note, $TNX higher from 2.59, where easily seen in its chart, stands an Elliott Wave 2 Down, and is now ready to enter an Elliott Wave 3 Up . And the Steepner ETF, STPP, will rise from 38.81, and that currency carry trades, in particular the EURJPY, and the AUDJPY, will unwind as competitive currency devaluation gets underway as currency traders successfully sell Major World Currencies, DBV, and Emerging Market Currencies, CEW, short. And for a period of time, the Yen, FXY, will be falling and the US Dollar, $USD, rising, causing investors to delverage and derisk out of stocks. 

Thus, I expect that both the JPY/USD Exchange Rate, JYN, seen its chart value of 58.48, and the Yuan, CYB, seen in its chart value of 26.45, to rise, as Fion Li of Bloomberg relates “The yuan had its biggest weekly gain in a year as data showed China’s economic expansion accelerated in the third quarter. The currency climbed to a 20-year high today after the People’s Bank of China boosted its fixing by 0.1% to 6.1372 per dollar, the strongest since a peg to the greenback ended in 2005.”

In summary, the October 2013 Reopen The Government, Raise The Debt Ceiling and Fund Obamacare Rally, comes on the tailwinds of the September 2013 No Taper Rally, driving the S&P 500, SPY, as well as World Stocks, VT, to five year highs, producing liberalism’s peak experience. 

Michael S. Derby of THE WSJ reports, “Chicago Fed leader Charles Evans said ‘I expect our overall stance of monetary policy to remain highly accommodative for some time to come … It is not yet time to remove accommodation.’ ”  And Vivien Lou Chen Bloomberg reports, “Fed officials must do ‘whatever it takes’ to push for faster return to full employment while keeping inflation near 2%, including possibly providing more stimulus, Minneapolis Fed Pres. Narayana Kocherlakota said. Fed should keep current stimulus in place even if asset prices rise to unusually high levels, leading to concerns about ‘bubbles,’ Kocherlakota said. ‘It may not be easy to stick to this path,’ yet benefits in terms of employment gains ‘will be significant’. ‘Doing whatever it takes in the next few years’ means FOMC ‘is willing to continue to use the unconventional monetary policy tools that it has employed’. Low levels of inflation show FOMC has ‘lot of room’ to provide ‘much needed stimulus to the labor market’, there’s ‘considerable monetary policy capacity’.”

In response, to both the US Fed’s No Taper Announcement, and Washington’s reopening the government, raising the debt ceiling, and funding Obamacare, investors drove the Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Far East Financials, FEFN,  Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, to new rally highs, as is seen in their combined ongoing Yahoo Finance Chart, communicating Liberalism’s peak economic and investment experience.  

The economic and political paradigm of liberalism stands at its zenith, as the Banker Regime has established a Washington US Dollar Hegemonic Empire, greatly rewarding investment choice providing a moral hazard based prosperity, based upon schemes of credit and carry trade investing.

Thus, the world is at an epic inflection point.

Jesus Christ, operating in the Economy of God, as revealed by the Apostle Paul in Ephesians 1:10, that is operating in the administration of all things economic and political, is pivoting the world into the economic and political paradigm of authoritarianism, where the Beast Regime will establish the Ten Toed Kingdom of regional governance and totalitarian collectivism, where diktat provides  “the new normal” of austerity, based upon schemes of debt servitude and unified regional fiscal policy governance.    

Jordan Shilton of WSWS writes Irish Government Unveils New Austerity Budget. The Fine Gael Labour coalition has outlined new austerity measures, including €1.6 billion in spending cuts aimed at the most vulnerable.  And The Irish Independent reports Ireland’s Health Minister Reilly To Cut 1,000 Jobs In Bid For €666m Savings.  And Bloomberg reports Euro Capitals Tighten Fiscal Leash as EU Starts Austerity

The Apostle John revels in Revelation 13:1-4 that the aim of Jesus Christ is to pivot the world out of democratic nation state governance and reward for nation state investment, and into regional governance and reward of regional security, stability and sustainability, where the fiat money system is replaced by the diktat money system.  

While liberalism was characterized by what Doug Noland terms wildcat finance where bankers waived magic wealth wands of credit and carry traded investing, authoritarianism will be characterized by what I term wildcat governance where nannycrats yield oppressive austerity clubs of debt servitude.

Martin Banks of the UK Telegraph reports, “Marine Le Pen aims to set up radical, anti-Europe faction in the European parliament with help of Geert Wilders, the Dutch MP. The leader of France’s far-Right party has vowed that the European Union would ‘fall like the Soviet Union’ as she conspired to form what would be the most radical faction yet seen in the European parliament. Marine Le Pen, buoyed by a weekend by-election triumph in southern France, criticised the EU as a ‘global anomaly’ and pledged to return the bloc to a ‘cooperation of sovereign states’. She said Europe’s population had ‘no control’ over their economy or currency, nor over the movement of people in their territory. ‘I believe that the EU is like the Soviet Union now: it is not improvable,’ she said. ‘The EU will collapse like the Soviet Union collapsed.’” 

Jim Brunsden of Bloomberg reports, “In their campaign to bring the financial industry under control, European Union policy makers have a deadline problem. The EU, which took three decades to clear such milestones as defining chocolate and setting up a common patent, has just months to create a system to handle failing lenders. It’s the biggest step toward building a banking union that its leaders say is essential to preventing a rerun of the euro debt crisis. Without a deal before European Parliament elections in May, the politicians and bureaucrats who have been working on the project since it was announced in June 2012 risk leaving the European Central Bank lacking a critical tool when it starts supervising euro-area lenders next year.”

Jeff Black and Boris Groendahl of Bloomberg report, “The European Central Bank is sizing up just how tough it wants to get with the region’s lenders. Policy makers at the ECB will this week try to agree on the ground rules of its three-pronged probe into the health of the 130 banks it will start supervising next year. The process will stress-test balance sheets for exposure to sovereign debt as well as push institutions to admit to more of their bad debt than they have before, according to three officials who spoke on condition of anonymity.”

Andrew Frye of Bloomberg reports, “Former Prime Minister Mario Monti, the economics professor who imposed austerity on Italy in 2011, quit the leadership of his political party after criticizing the policies of his successor, Prime Minister Enrico Letta. Monti stepped down as president of Civic Choice, the third- biggest party in Letta’s coalition, because his objection to the government’s 2014 budget put him at odds with 12 of the party’s senators, Monti said… The 12 senators gave what amounted to ‘a motion of no confidence in me’ when they expressed satisfaction with the budget, Monti said. ‘I accept it.’”

2) …Mike Mish Shedlock foresees the election of a national leader and nation exit from the Eurozone, yet Mario Draghi calls for a more perfect union.

Austrian economist and libertarian Mike Mish Shedlock writes Eventually, Nation Exit. Eventually, there will come a time when a populist office-seeker will stand before the voters, hold up a copy of the EU treaty and (correctly) declare all the “bail out” debt foisted on their country to be null and void. That person will be elected. Le Pen may be too early, and France may not be that country, but the time will come. Greece, Finland, Germany, Belgium, and even France are possibilities. All it will take, is for one charismatic person, timing social mood correctly, to say precisely one right thing at exactly the right time. It will happen.

Mario Draghi, President of the ECB, in address before the Harvard Kennedy School, in Cambridge, MA, on October 9, 2013, heralds Europe’s Pursuit Of A More Perfect Union.

Mr. Draghi calls for moving beyond “ever closer union” presented in the Preamble of the European Treaty, to a “more perfect union” … stating … “I will argue that a single market necessarily has political implications, in which a partial sharing of individual and national sovereignty can be the best means to preserve that sovereignty. Second, I will explain how the concepts of a banking union and a strengthened fiscal setup are supportive of the single market and the single currency.”

I comment that the word perfect has many meanings; these include …. the best, just right, ideal, pure, …. mature, full attainment, accomplished, final, complete, fully developed, …. indefatigable, …. supreme, cardinal, sovereign.

Mr Draghi’s call for unity is more in line with bible prophecy than Mr. Shedlock’s vision of freedom.

The Apostle John, while in his 90s living in exile on the Isle of Patmos, was given a dream by Angels, and wrote the details in the Book, The Revelation of Jesus Christ, which in bible prophecy foretells “those things which must shortly come to pass”, Revelation 1:1, meaning that once end-time world events start to occur, they will fall in place, all occurring  in a connected order, just like lined-up dominoes, topple one upon another, when given a genesis or starting event.

Liberalism featured the Banker regime, and was built on the sovereignty of democracy nation states and provided the banker driven seigniorage of government treasury bonds to provide investment profit, and serve as the foundation to develop global trade, as well as to grow corporate profitability.

Jesus Christ acting in the economy of God, that is in the administration of all things economic and political, a concept presented by the Apostle Paul in Ephesians 1:10, is overseeing the completion and fulfillment of liberalism’s Banker Regime, and introducing authoritarianism’s Beast Regime, which is God’s design for the mature, complete, indefatigable, supreme, and cardinal plan for mankind’s economic and political life.

The Beast Regime will have its genesis out of Financial Apocalypse, that is a credit bust and global financial system breakdown, foretold in Revelation 13:3-4, producing sovereign insolvency and banking insolvency.

Out of chaos, national leaders will meet in summits and workgroups to waive national sovereignty and establish regional pooled sovereignty, as THE First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1-2, will effect coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule sovereignly in public private partnerships, providing seigniorage through mandates of oversight of the factors of production, and all commerce, banking and trade, for regional security, stability and sustainability. An austerity union, featuring fiscal consolidation, is coming to the Eurozone; it is simply a matter of destiny, the fulfillment of God’s will.

Under authoritarianism, the banker and nation state model no longer exists, and there is no International Reserve Currency. There are regional alliances which feature undollar economic transactions, such as regional currencies and regional bartering arrangements, as seen in the Iranian.com report China Pushes Yuan To Freeze Out The US.

All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The periphery nations, that is the PIIGS, will exist as hollow moons revolving around planet Belgium and planet germany. The Portugese, Irish, Italians, Greeks and Spaniards, can be neither Belgians nor Germans, yet all will be one, living in a gulag of austerity and debt servitude existing under the word, will, and way of sovereign regional technocrats.

Liberalism featured a moral hazard based prosperity; but authoritarianism feature a debt servitude based poverty and austerity, with as BBC reports Angela Merkel, The Triumphant Queen of Austerity, Edle Astrup Tshuki writing, Merkel, The Unelected “Mutti” Of Europe, leading the way forward.   

Mr. Draghi continues with the details of his vision for a More Perfect Union relating the principle, Sharing sovereignty in a single market. The more difficult question in Europe is the degree to which powers must be transferred to the supranational level to support the single market, or put differently, how much sovereignty needs to be shared. In my view, one way to approach this question is by considering more carefully what we mean by sovereignty.

John Locke, in his second treatise of government, affirms that the sovereign exists only as a fiduciary power to act for certain ends. It is the ability to achieve those ends that defines, and legitimises, sovereignty. I see this positive view as essentially the right way to think about sovereignty. From a single currency to a banking union. The implications of the decision to set up a genuine single market are not limited to the creation of the single currency. The single currency itself has consequences, of which the most pressing is a banking union. The establishment of a banking union has been agreed by the Heads of State and Government in Europe and is now being delivered in stages, starting with the single supervisory mechanism. This has been entrusted to the ECB and has recently been approved by the European Parliament. We trust that a single resolution mechanism will enter into force by the beginning of 2015.

We are thus moving these functions to the European level to ensure that the single currency is matched by a single banking system. And this is consistent with the positive definition of sovereignty I gave earlier: a genuine banking union can give citizens more trust in their money than can different national approaches. A banking union can play a major role in breaking the vicious circle we see in Europe between banks and their sovereigns. But there is also a strong onus on governments to ensure that sovereign debt performs its expected function in the financial system – that is, as a risk-free, safe asset.

Let me therefore briefly turn to fiscal policies.

The implications for fiscal policies. It is welcome that governments in the euro area have made significant progress in consolidating their budgets, and hence removing some sovereign risk from the financial system. The primary fiscal deficit for the euro area has fallen from 3.5% of GDP in 2009 to around 0.5% in 2012. In the United States, by comparison, it was around 6% of GDP in 2012.

That said, we need to ensure time consistency. We all know the experience of the first decade of the euro. Fiscal rules enshrined in the Maastricht Treaty were not sufficiently binding; market discipline likewise did not work in an effective way. For this reason, the ECB has long argued in favour of moving towards more effective rules in the fiscal domain. We are convinced that they are crucial for the stability of the common currency in the longer term. I am therefore encouraged that policy-makers in Europe have been taking significant steps to strengthen the common fiscal rules.

These steps include new ways of dealing with countries that do not comply with recommendations from the European Commission. They include giving the Commission the right to inspect national budgets before they go before national parliaments – a power the US federal government does not have over the states. And they include inserting balanced budget rules into their national constitutions or equivalent. We look forward to a full and transparent implementation of this new regime.

These changes do to some extent represent a transfer of powers to the European level. But as with a banking union, I do not view it as a loss of sovereignty. Rather, I see the strengthening of the fiscal pillar in a manner that lends credibility to fiscal policies as a way to restore the efficacy of policy: for the Union as a whole, as countries are less affected by spillovers from fiscal difficulties in an integrated financial market; and also for the Member States themselves.

This budget stabilisation capacity through the automatic stabilisers is diminished if governments are unable to run a deficit at the low point of the cycle – or put differently, if the credit of the government deteriorates to the point where its debt is no longer regarded as a safe asset. Indeed, if the credit of the government is impaired, and behaves like private credit, then government’s relative cost of borrowing increases at precisely the time when it needs to borrow.

One can see this as the real loss of sovereignty. It prevents national governments from using normal fiscal policy for macroeconomic stabilisation. In this sense, steps that restore faith in public credit, such as more credible fiscal rules, restore the ability of governments to exercise the functions that citizens expect from them. This is particularly important in a monetary union where the burden of macroeconomic stabilisation cannot be entirely shifted onto the shoulders of the central bank. Our monetary policy mandate is to deliver medium-term price stability in the euro area as a whole. Fiscal policy has to absorb idiosyncratic or asymmetric shocks at a national level

Looking forward. Overall, the changes taking place in the euro area are making our monetary union more robust. At the national level, consolidation and structural reforms are helping most countries reach a more sustainable external position.

At the European level, we are approaching a balance of competencies which, taken in combination, should provide more effective stabilisation.

That said, it would seem misplaced to exclude that over time the euro area may move to a new equilibrium. Integration is a dynamic process and we need a certain degree of humility about where it will lead.

If we look at the US, we see that it strengthened its union in different stages, with each stage eventually begetting the next. The creation of the Federal Reserve System in 1913, for example, was followed twenty years later by the creation of the FDIC, a key pillar of America’s banking union. The federal budget also developed significantly at this time.

In Europe today, we are in some ways undergoing an analogous process. It is not analogous in the sense that the destination is the same. We do not know this. What is analogous is the guiding principle. Like the US, our orientation is pragmatic and driven by a desire for policy efficacy and to provide the functions citizens expect of government. We are then drawing the policy conclusions that follow, at the time when they are relevant.

(European commentators) mistook the euro for a fixed exchange rate regime, when in fact it is an irreversible single currency. And it is irreversible because it is born out of the commitment of European nations to closer integration, a commitment which, as the Nobel committee recognised last year, has roots in our desire for peace, security and transcending national differences.

In related article Bloomberg reports Draghi Turns Judge on Europe Banks as ECB Studies Balance Sheets. The European Central Bank is sizing up just how tough it wants to get with the region’s lenders. Policy makers at the Frankfurt-based ECB will this week try to agree on the ground rules of its three-pronged probe into the health of the 130 banks it will start supervising next year. The process will stress-test balance sheets for exposure to sovereign debt as well as push institutions to admit to more of their bad debt than they have before.

Revelation 13:1-2 presents the concept that the Beast System, with its ten horns and its seven heads, will rule over mankind in the last days. The Beast’s ten horns are ten regions of economic and political power and authority. The Beast’s seven heads are mankind’s seven institutions; these being 1) Education, 2) Banking, Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science and Technology. Each of these seven institutions will increasingly be integrated with each other, in totalitarian collectivist regional governance, in each of the world’s ten regions.

This monster will emerge out of Financial Apocalypse, that is a global credit bust and financial system breakdown as foretold in Revelation 13:3-4, and more specifically out of sovereign insolvency and banking insolvency of the periphery and southern European periphery nations of Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, that is the so called PIIGS, as these nations are at the epicenter of an ever growing debt burden relative to GDP,  to become a European Super State, which is based on the Euro Currency, FXE, whose economic rubble will be seen in the devastation of the Eurozone Stocks, EZU. Across the Atlantic Ocean, a growing intertwining of institutions will eventually produce a North American Continental Government, that is a North American Union; which is already underway as The United States Canada Regulatory Council Seeks Input on Boosting US-Canada Regulatory Cooperation.

The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1, is effecting coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule in regional governance and totalitarian collectivism. Thus, leaders from each of the seven institutions who will increasingly be working in statist public private partnerships for regional integration, as they oversee the factors of production to manage regional commerce and trade, to establish regional security, stability and sustainability; in the Eurozone this will manifest as a strong economic union, banking union, and fiscal union, to address fiscal dominance, financial repercussions and regional divergences.

The Beast System of Revelation 13:1-2, is the same as the Fourth Beast of Daniel 7:7, whose mission is to pulverize mankind in ten regions of regional governance and totalitarian collectivism. The Little Horn seen in Daniel 7:8, is a person, Europe’s Sovereign, Revelation 13:5-10, the Second Beast of Revelation Chapter 13. He will rise to power with the Seignior, that is Euroland’s top dog banker and religious leader who takes a cut, Revelation 13:11-18, the Third Beast of Revelation Chapter 13.

3) … The Four Horsemen Of The Apocalypse Are Riding Through The Financial Markets, The Environment, And The World At Large, as Jesus Christ is opening the first four seals of the scroll to commence the beginning of birth pangs of calamities presented in Jesus’ Olivet Discourse, Matthew 24:5-8, that precede the day of the Lord’s wrath; like labor contractions, these escalate in frequency and intensity before the Great Tribulation.

Thomas R. Schreiner of Credo Magazine presents Christ The Redeemer. We read in Revelation 5:9-10, “Worthy are you to take the scroll and to open its seals, for you were slain, and by your blood you ransomed people for God from every tribe and language and people and nation, 10 and you have made them a kingdom and priests to our God, and they shall reign on the earth.” In v. 9 we return to the theme of worthiness. Jesus is worthy to open the sealed book because he was slain. And what did he accomplish by his death? He ransomed some from every tribe, tongue, language, people and nation. This verse doesn’t say that he potentially ransomed some from every tribe, tongue, people, and nation. It says that he actually purchased some from every tribe, tongue, people, and nation. God honors the blood of his Son that it has actually won redemption for some from every people group.

Orett S of The Living Word Of God writes The Prophetic Seals Most of Revelation, about two thirds of its content, is devoted to the seventh seal. The contents of the first six seals are found in chapter 6 alone; concerning these particular afflictions, Jesus had earlier warned that “all these are the beginning of sorrows”, or “of birth pains” signifying calamities that would, like labor contractions, escalate in frequency and intensity before the end. He also said: “Do not be terrified; for these things must come to pass first, but the end will not come immediately”, Luke 21:9.

Bails of Desiring To Know God More Deeply writes Chapter 6 Is The Beginning Of A New Section Of Material In The Book Of Revelation, where we encounter three sets of seven with interludes: seven seal, seven trumpets, and seven bowls (6:1-16:21). For reasons we shall see along the way, I take these three series of sevens to be cycles which intensify with each cycle, repeating common themes and each ending with a description of the second coming (6:12-17, 11:15-19, 16:17-21). You should think of this as you would a piece of music, with chord progressions that cycle and have interludes, and where each cycle intensifies the previous one.

Alan Kurschner, of Eschatos Ministries, amplifies by asking, Are the Seven Seals of Revelation’s Scroll the Wrath of God Because Jesus Opens Them Up? The individual seals … function as conditions that must happen before God’s wrath, not expressing God’s wrath itself. The scroll represents the title deed of earth and only King Jesus is “worthy” to open it, because he alone is worthy to rule the world (see Revelation 5). The contents of the scroll are the trumpet and bowl judgments, which function to transfer the title deed of the earth that belongs to Satan over to the ownership (rule) of Jesus. Before the scroll is opened there are seven seals on the scroll which serve as conditions that must be met before the scroll is opened.

Seal 1. First Horseman. the rider on the white horse, signifying conquest over mankind.

Scripture Reference: (Rev 6:1-8 NIV) I watched as the Lamb opened the first of the seven seals. Then I heard one of the four living creatures say in a voice like thunder, “Come!” {2} I looked, and there before me was a white horse! Its rider held a bow, and he was given a crown, and he rode out as a conqueror bent on conquest.

The Greek word “crown” here is “stephanos” or “conqueror’s crown”. Economic and political conquerors will arise, effecting bloodless economic and political coups, to establish regional oligarchies of state corporate rule. Leaders will emerge to shape and mold foreign policy such as the Project For The New American Century has done with US Foreign Policy and the Ahtisaari plan for establishing Kosovo as a sovereign nation state. And leaders will announce Security and Prosperity Framework Agreements, which replace traditional and constitutional law. Stakeholders will be appointed oversee natural resources, and manage the economic institutions of finance, banking, commerce, investment and trade. Society will become more pyramidal in shape. Eventually, a global king will rise to rule over mankind.

Arlen L Chitwood notes the difference between the Greek words “stephanos” and “diadema”, relative to the Antichrist and his kingdom. Stephanos is used of the type crown worn by the Antichrist, when he is first introduced in the book of Revelation (6:2), but later diadema, is used relative to his exercise of delegated power and authority, (12:3; 13:1, 2).

This current world belongs to Lucifer and his angels, who use every evil and erroneous thing, to enable those of the world, to conquer over good and truthful principles and processes.

The Libertarians hold that one is a sovereign individual, these include: the individual anarchists, (Lysander Spooner), the anarcho-capitalists (Murray Rothbard, John Locke), the constitutionalists (Chuck Baldwin), the fiscal libertarians (Kristin Davis), the objectivists (Ayn Rand), the libertarian economists (Milton Friedman), the left-libertarians (Noam Chomsky), and the anarcho surrealists (Andre Breton). Yet, God has appointed the rider of the white horse sovereign; and he will triumph eventually over all who believe they are sovereign.

Seal 2. Second Horseman. the rider on the red horse signifying violence.

Scripture Reference: {3} When the Lamb opened the second seal, I heard the second living creature say, “Come!” {4} Then another horse came out, a fiery red one. Its rider was given power to take peace from the earth and to make men slay each other. To him was given a large sword.

Seal 3. Third Horseman. the rider on the black horse, signifying increasing famine, price inflation and financial death.

Scripture Reference: {5} When the Lamb opened the third seal, I heard the third living creature say, “Come!” I looked, and there before me was a black horse! Its rider was holding a pair of scales in his hand. {6} Then I heard what sounded like a voice among the four living creatures, saying, “A quart of wheat for a day’s wages, and three quarts of barley for a day’s wages, and do not damage the oil and the wine!”

The cry to not “damage” the oil and wine could represent attempts to safeguard the pockets of abundance against plundering. An alternative meaning is that there is practically no oil and wine left; that would also fit with the admonition that what is left not be harmed—lest there be none left at all.

Financial death will come as World Stocks, VT, Major World Currencies, DBV, Emerging Market Currencies, CEW, and Aggregate Credit, AGG, will all be turning lower in value.

Seal 4. Fourth Horseman. the rider on the pale green horse, signifying chaos, that comes by destruction, calamity, and disaster.

Scripture Reference: {7} When the Lamb opened the fourth seal, I heard the voice of the fourth living creature say, “Come!” {8} I looked, and there before me was a pale horse! Its rider was named Death, and Hades was following close behind him. They were given power over a fourth of the earth to kill by sword, famine and plague, and by the wild beasts of the earth.

Please consider Corollary #7 from the Dispensation Economics Manifest, that Jesus Christ is establishing “the new normal” comprised of new economic action (from inflationism, to destructionism), and new action in nature (from benefit and favor, to calamity and disaster).

CBS News reports 100,000 Cattle Feared Dead After Early South Dakota Snowstorm

Elaine Meinel Supkis posts Huge Typhoon Heads Towards Fukushima, Dr. Simper Says Mess Is ‘Average–A New Normal’. She writes What is happening at Fukushima? – Channel 4 News says that it cannot cope with one of the world’s worst nuclear disasters of all time alone admission by Japan means we should pay some attention to this enormous global disaster. Here is an ‘expert’ coughing up the same old hairball about how this isn’t all that big a deal:

Tepco has not yet responded to Channel 4 News requests for comment on the situation. But Dr Simper denies that the recent flurry of international interest in Fukushima is a sign of panic, and stressed that no-one was taking over from Tepco – saying in fact that IRID was set up with Tepco’s backing.

“It’s not panic, not ‘let’s call in the nuclear red team’,” he said. “Look at the kind of people involved. Look at my CV. There is no emergency management on it. What I do is strategy and planning.”

He described the situation at Fukushima as “the new normal”.

“It’s not a nuclear power plant having a really bad day. Think of this as a difficult decommissioning site having a fairly average day. It’s a change of mindset in that there is now no threat to people or the environment. But that doesn’t mean you walk away.”

What, this clown is actually suggesting ‘you can walk away’? He basically says there is no threat at all! And this is an average ‘decommissioning’. This sort of obvious insanity means he should be put in a hospital with locked doors. The man is literally insane. [Pacific contamination] Cs-137 detected 1km offshore Fukushima plant for the first time: the Fukushima Diary. Japan Physician: Radiation level was 100 times higher in Fukushima than gov’t reported 50 days after 3/11 — Geiger counter ‘off the scale’ at train station 60 km from plant — Blatant concealment of data shows us that the assurances that this is a ‘fairly average’ decommissioning event is insane.

4) … New alliances in Israel suggest that Jerusalem will continue to be the undivided capital of the nation of Israel. Jason Ditz of Antiwar reports Shas Chairman Aryeh Deri claims to have a deal in place now that will quickly lead to the collapse of the tenuous far-right/secular right coalition government, and might potentially force early election. According to Times of Israel Deri, the deal was made with Avigdor Lieberman, the head of Yisrael Beiteinu, and he agreed to collapse the coalition in return for a Shas endorsement of his mayoral candidate for Jerusalem, Moshe Lion.

5) …. Liberalism stands at Peak Empire. Jesus Christ operating in the economy of God, that is in the administration of all things economic and political, as presented by the Apostle Paul, in ephesians 1:10, is making liberalism complete, with the expansion of The US Dollar Hegemonic to its most full capability: peak empire is being achieved. Nation state democracy is at its zenith.

The robust phase of liberalism is being achieved. The banker regime came into being with the birth of the Creature from Jekyll Island, one hundred years ago in 1913, and stands in peak sovereignty and peak seigniorage. The banker regime is in its terminal phase. Through financial apocalypse, that is a credit bust and global financial system breakdown, as foretold in bible prophecy of Revelation 13:3, the economic head of the Beast System will experience a massive and apparently fatal wound, yet recover, mostly through nannycrats working in regionalism, that is regional integration, for regional stability, security and sustainability.

Benson te writes Philippine Politics: South Korean War Jets Means Bigger Taxes and More Financial Repression. I comment that it’s interesting to observe the US-Israel military industrial complex in operation in Asia. From reading in Antiwar, I observe that the US and Israel are diverging, and that the US is open to negotiation with Iran. It appears that President Obama is oblivious to reality that Israel is  left to go it alone to destroy the nuclear ambitions of Iran. This leaves the US terrifically overexposed, that is overstretched, in its plans to be involved in Japanese, Philippine, and South Korea conflict with China as well as North Korea.  There is a limit to empire, and the limits of the US Dollar Hegemonic empire are being achieved. 

Benson te concludes his article stating “The fantasy of arming for defense by the Philippine government to protect against the far more powerful China serves as economic privileges for the US-Israel defense industry (also Korea’s KAI), the Philippine bureaucracy and the Philippine military as well as the US military. The first three will be charged to us, the Philippine taxpayers. The US military base/s will be charged to the American taxpayers but whose subsequent social and environmental costs will a burden to local communities in the Philippines who will serve as host/s to the base/s.”

Not only is there a moral hazard, but an economic hazard as well, where social and environmental burdens are transferred to parties that did not sign on to the military deal. Delusions of grandeur are all part of peak empire. Jesus Christ operating in the economy of God, is terminating the banker regime and is bringing forth a new empire, that being regional governance and totalitarian collectivism in each of the world’s ten regional zones, something heralded by the 300 elite of the Club of Rome in 1913, and presented in bible prophecy of both Revelation 13:1-4, and Daniel 2:25-45.

6) … The risk reward relationship suddenly favors investment in taking gains, accruing payment for taxes due, moving one’s investment resources offshore, and dollar cost averaging into gold bullion.

Not many are going to base their investment decisions in the dream given by angels to the Apostle John, while he was in his 90s living in exile on the Isle of Patmos, which conveys the concept that the current banker regime is going to be replaced by the beast regime of regionalism and totalitarian collectivism, as presented in Revelation 13:1-4.

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

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

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

Bruce posts in Econobrowser comment Real private nonresidential investment less private employment, and real final sales per capital is in a deflationary mode, communicating that fiat investment growth is peaking.

Inasmuch as Jesus Christ is pivoting the world from liberalism into authoritarianism, sovereign wealth in the new normal will consist of diktat and the physical possession of gold bullion.

For most, the choice and place of one’s investment decision will be based investment science, and not on the interpretation of bible prophecy; for the gainsayers, I recommend that one subscribe to investment science advisory services; these include

Simply Profits JC’s Buy And Sell Signals

EW Forecast

Sigma Trading Oscillator

Gordon T Long Long Wave

The bottom line of economics and investing is that one’s ideology is either myth or sound doctrine; world events will either confirm or deny the truth of one’s beliefs.

One economic reality is the MarketWatch report Bettors’ Verdict: GOP Could Lose the House

Another reality is the Peak Prosperity report Growth Is Obsolete

The USA Gold China’s London-Zurich-Hong Kong Gold Conduit – a major financial coup d’etat

Three Beasts Are Rising To Rule Mankind: The Beast System, The Beast Ruler, And The Beast Banker

October 13, 2013

Financial market report for the week ending October 11, 2013

1) … Revelation 13:1-2 presents the concept that the Beast System, with its ten horns and its seven heads, will rule over mankind in the last days.

The Beast’s ten horns are ten regions of economic and political power and authority.

The Beast’s seven heads are mankind’s seven institutions; these being 1) Education, 2) Banking, Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science and Technology.  Each of these seven institutions will increasingly be integrated with each other, in totalitarian collectivist regional governance, in each of the world’s ten regions.

This monster will emerge out of Financial Apocalypse, that is a global credit bust and financial system breakdown as foretold in Revelation 13:3-4, and more specifically out of sovereign insolvency and banking insolvency of the periphery and southern European periphery nations of Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, that is the so called PIIGS, to become a European Super State, which is based on the Euro Currency, FXE, whose economic rubble will be seen in the devastation of the Eurozone Stocks, EZU.  Across the Atlantic Ocean, a growing intertwining of institutions will eventually produce a North American Continental Government, that is a North American Union; which is already underway as The United States Canada Regulatory Council Seeks Input on Boosting US-Canada Regulatory Cooperation.

The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1, is effecting coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule in regional governance and totalitarian collectivism.

Thus, leaders from each of the seven institutions who will increasingly be working in statist public private partnerships for regional integration, as they oversee the factors of production to manage regional commerce and trade, to establish regional security, stability and sustainability.

The Beast System of Revelation 13:1-2, is the same as the Fourth Beast of Daniel 7:7, whose mission is to pulverize mankind in ten regions of regional governance and totalitarian collectivism. The Little Horn seen in Daniel 7:8, is a person, Europe’s Sovereign, Revelation 13:5-10, the Second Beast of Revelation Chapter 13.  He will rise to power with the Seignior, that is Euroland’s top dog banker and religious leader who takes a cut, Revelation 13:11-18, the Third Beast of Revelation Chapter 13. The Sovereign’s power will be so great that he will pluck out three entire economic and political regions.

For emphasis, I repeat that the Beast of Revelation 13:1-2, is the same as the Beast of Daniel 7:7;  they are the same global empires; yet these will collapse when even diktat money fails, and the Sovereign, Revelation 13:5-10, and the Seignior, Revelation 13:11-18, introduce the charagma 666 money system, Revelation 13:18 to establish a one world government and a one world religion.

The First Beast of Revelation Chapter 13, is not Islamic and will not have an Islamic Caliphate, as Joel Richardson of Joel’s Trumpet writes in his two books “The Islamic Antichrist” and “Mideast Beast”.

For further reading one might consider Olivet Journal The Bottomless Pit and The Beast, and James McDairmant Man of Sin, Son of Perdition, The Wicked One, The Willful king, The Beast, The Little Horn.

2)  … As it was in the days of Noah, so it shall be in the days of the parousia, that is coming, of the Son Of Man, Jesus related in Matthew 24:27-31, and in Mark 13:24-27, as well as in Luke 21:25-28.

The world has entered the beginning of the end, as the Nephilim of Genesis 6:1-6, are returning; that is the Halfbreeds, those created by Lucifer’s children and women are once again being created as 23andMe Receives Patent to Create Designer Babies, But Denies Plans to Do So, TIS reports.

The reason for the deluge was that Lucifer had corrupted mankind’s DNA. Now corporations, physicians and women are playing God. We are witnessing the emergence of a great deception of humanity, an apostasy is emerging encouraging people to believe that geneticists have the keys to our next evolutionary step. The Lord God will not let a genetic modification industry to come to fruition; He will intervene to terminate mankind’s endeavors by the Advent of His Son, Jesus Christ.

And Rady Ananda writes in GlobalResearch.ca Genetically Modified Babies. In October 2013, the US Food and Drug Administration will hold a two-day public meeting to discuss genetic modification within the human egg, which changes will be passed on generationally. The United Kingdom is also moving to allow GM babies.

Human gene therapy has been ongoing since 1990, but most of that involved non-heritable genes, called somatic (non-sex cell) gene therapy. Somatic modifications only affect the individual and are not passed on, and so do not affect the human genome.

The game changed with the successful birth of at least 30 genetically modified babies by 2001. Half of the babies engineered from one clinic developed defects, so the FDA stepped in and asserted jurisdiction over “the use of human cells that receive genetic material by means other than the union of gamete nuclei” (sperm and egg nuclei). Now the FDA is considering going forward with “oocyte modification” which involves genetic material from a second woman, whereby offspring will carry the DNA from three parents. These kinds of genetic changes (“germline modification”) alter the human genome.

For further reading one might consider reading Duane and Shelly Muir of Signposts of the Times Blog Section UFO Phenomenon to understand how the Nephilim are returning, and fulfilling end time bible prophecy.

Day by Day Blog writes Noah, The Boat Builder Preacher. The flood distinctly marks the end of one order of things and the beginning of another. A man called Noah was chosen by God to be the one to make provision for the continuation of all human and animal life on earth when the deluge was over.

Notice Hebrews 11:7 tells us about this amazing servant of God in what we call the faith chapter, “By faith Noah, when warned about things yet not seen, in holy fear built an ark to save his family. By his faith he condemned the world and became heir of the righteousness that is in keeping with faith.”

Jesus had something to say about the evil days in which Noah lived, while answering a question posed by the Pharisees about the time of the coming of the Kingdom of God. He replied; “Just as it was in the days of Noah, so also will it be in the days of the Son of Man. People were eating, drinking, marrying and being given in marriage up to the day Noah entered the ark. Then the flood came and destroyed them all.” (Luke 17:26) The people then were doing all of these things but one thing they weren’t doing was listening. “It will be just like this on the day the Son of Man is revealed.”(verse 30)

Fred H relates Nephilim Comes From Hebrew Root Nawfal … Meaning Fallen … Or Fallen Ones. Strong’s: Nephilim: “giants,” name of two peoples, one before the flood and one after the flood. The LXX uses the term “gigantes”being descriptive of demigods (In Greek mythology, these are the Giants or Gigantes (Greek: Γίγαντες, Gigantes) Gigantes as described in Wikipedia as the children of Gaia, who was fertilized by the blood of Uranus, after Uranus was castrated by his son Cronus. Some depictions stated that these gigantes had snake-like tails. The term mighty men (gibbor in the Hebrew) is synonym for giant. Nimrod was a gibbor Genesis 10:8-9; 1 Chronicles 1:10). Nimrod as a “mighty man” (concordance SH5248 for his name is of “foreign origin.” The Bible Exhaustive Dictionary of Bible Names defines Nimrod as “a rebel, to be rebellious to resist authority, He who rules, we will rebel” He was a “mighty hunter before the Lord. Before is SH6440 פּנים pânı̂ym paw-neem’, means in defiance, in the face (of God), against, anger, to wound, to dissolve; figuratively, to profane (a person, place or thing), to break (one’s word), to begin (as if by an “opening wedge”).

“There were giants in the earth in those days; and also after that” (Genesis 6:4). This Scriptural text describes two insurgents of giants that raised mayhem among mankind. The giants of this first insurgence were the nephilim, whose fathers were the fallen angels. They were the incarnate “sons of God” who came into (mated with) the daughters of men” (Genesis 6:4) in the days of Noah. In those days, they were “marrying and giving in marriage” (Matthew 24:37-38).

Very likely these “mighty men,” nephilim, were unable to procreate. Hence, their origin was from a breeding program with the angels – “gods” – to produce demigods, or the mystical Titans of folklore.

The insurgence of giants after the flood, were called Rephaim (Strong’s Hebrew number 7497), who resided in the Valley of the Rephaim. These Rephaim giants after the flood were smaller in stature. Perhaps this was because they were the offspring of genetically modified DNA, transmitted from the wife of Ham, as an X-chromosome, sex-linked recessive trait. Hence, giants after the flood could self-replicate as both male and female to perpetuate their race and inbreed with the other pagans within the land of Canaan because of their smaller size. At the time of Joshua, perhaps one-half of the population of the Promise Land carried the mutant DNA, as a consequence of pagan (fornication) fertility rites. Hence, God ordered Moses to kill all the “-ites,” men, women, children and their livestock!

Steve Quayle, is the leading authority on giants; and frequently updates his blog Genesis 6 Giants, The Truth Is Too Strong to Ignore

3) … The coming of “the Son of Man” will usher in these future events: according to (Pendelton, 2007) and (Knapp, 2008) “The Great Doctrines of the Bible” (The Doctrine of “Last Things”), Rev. William Bodie writes

1.    After the Jews pass through the great tribulation (Matthew. 24:21, 22, 29; Revelation. 3:10; 7:14); are converted (as a nation) at the coming of Christ (Zechariah. 12:10; Revelation. 1:7); become great missionaries (Zechariah. 8:13-23); never more to be removed from the land (Amos 9:15; Ezekiel. 34:28).

2.    With Regard to Antichrist, and the Enemies of God’s People (2 Thessalonians. 1:7-9; Revelation. 19:20; 20:10). The enemies of God shall be destroyed by the brightness of His coming; The Antichrist will be cast finally into the bottomless pit.

3.    The Millennium begins with the coming of Christ with His saints; with the revelation of Christ after the great tribulation (Matthew. 24:29, 30); at the close of the seventieth week of Daniel. (Revelation. 19:11-14; Daniel. 7:21, 22; Zechariah. 14:3-9).

4.    Then comes the destruction of Antichrist, the binding of Satan, and the destruction of the enemies of God’s people (Revelation. 19:20; 20:1-3, 10).

5.    The Judgment of the Living Nations (Matthew. 25).

6.    The conversion and missionary activity of the Jews (Zechariah. 8:13-23; cf. Acts 15:14-17). Then, we may have a converted world, but not now, nor in this age; This evangelistic effort concerns Israel, not the Church. The Church was gathered at the Rapture.

The Nature of the Millennium Kingdom:

1.    It is a Theocracy: Jesus Christ Himself is the King (Jeremiah. 23:5; Luke 1:30-33). The Apostles will, doubtless, reign with Christ over the Jews (Isaiah. 66; Matthew. 19:28); the Church, over the Gentile nations (Luke 19:11-19; Hebrews. 2:6, 7).

2.    The capitol city will be Jerusalem (Isaiah. 2:1-4). Pilgrimages will be made to the Holy City (Zechariah. 14:16). The reign of Christ will be one of righteousness and equity (Isaiah. 11:4; Psalms. 98:9).

3.    A renovated earth (Romans. 8:19-31; Isaiah. 65:17; c. 35).

4.    The events closing the Millennium are apostasy and rebellion (Revelation. 20:7-9); the destruction of Satan (Revelation. 20:10); the Great White Throne judgment (Revelation. 20:11-15); a new heaven and a new earth (Revelation 21 and 22).

4) … Financial Apocalypse, that is a global credit bust and financial system breakdown, is at hand.

Financial Apocalypse could commence immediately on either on a US Default, or a surge of stock market short selling caused by a rise in the Interest Rate on the US Ten Year Note, $TNX, or currency traders selling any number of currencies such as the Japanese Yen, FXY, the Euro, FXE, the Canadian Dollar, FXC, the British Pound Sterling, FXB, the Swedish Krona, FXS, the Swiss Franc, FXF, the Brazilian Real, BZF, the Australian Dollar, FXA, the Indian Rupe, ICN, or Emerging Market currencies, CEW, which would cause the US Dollar, $USD, UUP, to rise for a period of time from its greatly sold off price of 80.25. A rising US Dollar is incompatible with rising World Stocks, VT.

Under QE, the Fed bought 30 Year US Treasuries, EDV, and Zeroes, ZROZ, taking them out of the hands of private investors who looked for something else to buy, and thwarting the bond short sellers, bidding up the prices of other bonds, and driving down the Interest Rate on the US Ten Year Note, $TNX, causing the Flattner ETF, FLAT, to rise in value, and the Steepner ETF, STPP, to fall in value.

This ETF, that is STPP, rose in value, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened beginning in May 2013, running through September 1, 2013, as bond vigilantes gained control of the Interest Rate on the US Ten Year Note, $TNX; but then from early September to October 4, 2013, the Steepner ETF, STPP, declined in value, as the Interest Rate on the US Ten Year Note, $TNX, fell to its October 4. 2013, rate of 2.65%.

Yes, up until May 14, 2013, investors bought other bonds; but then they sold Junk Bonds, JNK, and Ultra Junk Bonds, UJB, Mortgage Backed Bonds, MBB, International Treasury Bonds, BWX, and International Corporate Bonds, PICB.  On July 14, 2013, investors reversed course once again and have been long the others, as is seen in combined ongoing credit Yahoo Finance Chart, which reinvigorated World Stocks, VT, Emerging Market Stocks, EEM, Global Industrial Producers FXR, Asia Excluding Japan, EPP, Nation Investment EFA, Eurozone Stocks, EZU, and the Nikkei, NKY, as is seen in combined ongoing equity Yahoo Finance Chart.  The Nikkei has been falling lately on the rise of the Japanese Yen, FXY, which hurts export companies.

The world as of September 20, 2013, stood at peak prosperity, peak democratic nation sovereignty, and peak seigniorage, that is at Peak Moneyness, as is seen in the chart of World Stocks, VT, relative to Aggregate Credit, AGG,  that is VT:AGG; stocks are unable to leverage higher on credit.  Zero Hedge writes The Life And Death Of Massive Debt Bubble In Seven Charts

Liberalism’s prosperity has been a terrific moral hazard based prosperity, as investors came to trust in the US Fed’s policies of easing, which started when it took in Distressed Investments such as those traded by the Fidelity Mutual Fund FAGIX, with the start of QE1, driving up risk assets such as Small Cap Value Stocks, RZV, Biotechnology, IBB, Resorts and Casinos, BJK, IPOS, FPX, Media, PBS, Nasdaq Internet, PNQI, Pharmaceuticals, PJP, Aerospace, PPA, Spin Offs, CSD, Leveraged Buyouts, PSP, and Solar Energy Stocks, TAN. An now, another Great Depression will take place because  the Federal Reserve’s bank bailouts and fiscal stimulus have created fingers of instability.

James A. Kostohryz writing in Seeking Alpha asked How Will The No Taper Surprise Affect Stocks  The end of QE will be bad for the general stock market and index ETFs such as SPDR S&P 500 (SPY) and SPDR Dow Jones Industrials Average (DIA). I do not agree. Anticipation of the end of QE, in the context of a tapering cycle, may trigger a garden-variety stock market correction at some point. But for reasons I will elaborate on in future articles, I believe that precisely at the point when the end of QE becomes clearly visible, the US stock market may go parabolic and enter into a bubble phase.

Mr. Kostohyryz’s article proves to one gigantic strategic miss. As Jesus Christ acting in dispensation, that is in the administrative plan of God for the fulfillment of every age, Ephesians 1:10,  pivoted the world from liberalism into authoritarianism on Friday September 20, 2013, as is seen the chart of World Stocks, VT, and the S&P, SPY, trading lower in value.

Fiat money died Friday September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower, as Jesus Christ operating in dispensation, as presented by the Apostle Paul in Ephesians 1:10, that is in administrative oversight of all things economic and political, pivoted the world out of liberalism and into authoritarianism, and as such the stock market has turned from bull to bear with the Too Big To Fail Banks, RWW, trading lower in value, all on the No Taper Rally.

Those ETF sectors which rallied over the last year and countries which rallied, from late June 2013 to late September, 2013, seen in this Finviz Screener, will be trading ever lower from the Tuesday October 1, 2013 rally, on competitive currency devaluation and on the exhaustion of the world central banks’ monetary authority, as investors come to greater realization that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

Friday, September 20, 2013, was liberalism’s day of investment instability that marked an inflection point that pivoted the world from the paradigm of liberalism into the paradigm of authoritarianism, and from a moral hazard based prosperity into a debt servitude based austerity, as the financial markets turning from risk-on to risk-off, as indicated by the Market Off ETN, OFF, trading higher, and the stock market turned from bull to bear. Risk on investing has turned to risk off disinvestment.

Please consider Corollary #8 from the Dispensation Economics Manifest. The No Taper Rally of September 20, 2013, in World Stocks, Major World Currencies, DBV, and Emerging Market Currencies, was Liberalism’s peak event, which terminated the Creature Jekyll Island and birthed the Beast Regime of Revelation 13:1-4. and which pivoted the world from a policy of investment choice … consisting of credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, currency carry trade investing, securitization of debt, dollarization, financialization of stocks and ETFs, such as corporate bonds which convert into stocks, all of which created capital for corporations to operate and revenue for governments to operate … to a policy of diktat … consisting of debt servitude schemes, such as, regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability.

September 20, 2013, was a pivotal day in global economic history from which there is now no return, despite what credit liquidity measures any central banker might propose.

The exhaustion of the US Fed’s monetary policies of easing, came as the provision of QEternity constituted a crossing of the Rubicon of sound monetary policy, and destabilized global economics pivoting the world from liberalism’s banker regime of democratic nation states, into authoritarianism’s Beast regime of regional governance and totalitarian collectivism, presented in Revelation 13:1-4.

Liberalism was the era of investment choice based upon credit and carry trade investing. Ireland’s Bank, IRE, has been the investor’s carry trade darling, In the last year, Ireland’s Bank, IRE, stock market performance has soared 118%, compared to Lloyds Banking Group performance of 100%. And in the last year Ireland, EIRL, has outperformed its nation investment peers, Finland, EFNL, Netherlands, EWN, and Germany, EWG, EWGS, by a huge margin rising some 43%. While bankers dance with glee; austerity bites consumers, as Bloomberg reports Steak No More in Yeats Country Amid Scant Irish Recovery.

In contrast, authoritarianism is the era of diktat based upon debt servitude, where there are no central bank monetary policies providing rewards for investment choices, only regional nannycrat policies of diktat, establishing debt servitude and totalitarian collectivism.  All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin.  The Irish, Greeks, Italians, and Belgians cannot be Germans, yet all will be one, living under the word, will, and way of sovereign regional technocrats.

The Yahoo Finance chart of the EUR/JPY, and the Google Finance Chart of the EUR/JPY, and the Forex Trading chart of the EUR/JPY, and FXStreet chart of the EUR/JPY, show a close at 132.45 on October 3, 2013; from which a trade lower, will soon propel Eurozone Stocks, EZU, and European Financials, EUFN, as well as World Stocks, VT, lower.

On Friday, October 4, 2013, currency traders took the Japanese Yen, FXY, slightly lower to a new weekly rally high, at 100.30, its dark filled candlestick suggests that the rally in the Yen, is at its zenith. And the Euro, FXE, even more slightly lower, to a new weekly rally high of 134.12, forcing the EUR/JPY, to lower to close the week lower at 132.04, yet Eurozone Stocks, EZU, rose to close near their all time high. As the Euro Yen currency trade unwinds, Ireland, EIRL, and Ireland’s Bank, IRE, will be leading Nation Investment, EFA, and Global Financials, IXG, lower.

While Resorts and Casinos, BJK, International Telecom, IST, IPOs, FPX, Small Cap Energy, PSCE, and Energy Production, XOP, traded to a new rally high, monetization of debt, has finally turned “money good” investments bad.  Investments in Risk Assets, such as Small Cap Pure Value Stocks, RZV, has ended, as confirmed the Market Off ETN, OFF, trading higher this month of October 2013.

The interventionist policies of the world central banks no longer provide investment stimulus as is seen in Global Industrial Producers, FXR, trading lower. Jesus Christ acting in the Economy of God, Ephesians, 1:10, has ended the Fed; He did what Ron Paul could not do.

Yes, the Fed be dead. Charles Hugh-Smith of OfTwoMinds blog, asks in Zero Hedge, Have We Reached Peak Federal Reserve? I respond, that The Fed Bubble Era is over. This is seen in the Too Big To Fail Banks, RWW, trading lower from their rally highs. And Asset Managers such as BlackRock, BLK, and Eaton Vance, EV, that coined liberalism’s wealth, are trading lower as well.  Now under authoritarianism, the policies of nannycrats and technocrats, working in schemes of regional integration, will underwrite economic activity.

Debt deflation, specifically competitive currency devaluation, has commenced, terminating liberalism’s fiat wealth investments in Nation Investment, EFA, and Emerging Market Investment, EEM.

The modern money system is broken and bust; the age of speculative leveraged investment, is done, over, and finished.  Liberalism’s democratic fiat money and banking system is being replaced by authoritarianism’s diktat money and regional governance and totalitarian collectivism system.

The ongoing destruction of fiat money can be followed via the trade lower in Stock ETFs, seen in this Finviz Screener, and the Currency ETFs, seen in this Finviz Screener.

The decline in the price of Gold, $GOLD, since late August 2013, will soon be a buying opportunity, as the Gold ETF, GLD, is in an Elliott Wave 3 Up, from its early July 2013 bottom of 117.5, as is seen its Weekly Finviz Chart. The Elliott Wave 3 Ups, are the most dramatic of all economic waves, and create the bulk of wealth gains, of all of the ascending five waves.

5) … This week’s financial market trading.

On Monday, October 7, 2013, Jennifer Carinci of Yahoo’s Hot Stock Minute reported immediately before the market open Markets Around The World Are Reacting Negatively To The Lack Of Progress Out Of Washington On Budget Talks Over The Weekend. Japan’s Nikkei lost one-percent and Europe is down across the board as the world watches the stalled U.S. budget talks. Here at home futures are indicating a rough open, poised to open lower by nearly 1%.

Briefing.com reports Mr. Boehner Told ABC’s George Stephanopolous

  • that the House does not have the votes to pass a clean continuing resolution

  • that the votes are not in the House to pass a clean debt limit increase; and

  • that the US is on a path to default because President Obama won’t negotiate over the debt ceiling.

The NYT reports Boehner Hews to Hard Line in Demanding Concessions From Obama. And NBC News reports Obama to Boehner: Hold a Vote. Call a Vote Right Now. Let’s See What Happens.

Investors fear that the US Government will not come to political terms to deal with its ongoing budget deficits, and that the US may experience a default, this being the most fearsome of all investment fears, and as a result a global financial system meltdown has commenced, as is seen in the Global Financials, IXG, trading 1.0% lower.

Risk assets traded lower: sectors trading lower included Biotechnology, IBB, Internet Retail, FDN, and Nasdaq Internet, PNQI.

The Great Bear Market commenced on the fears of a US Default, and on fears that the monetary policies of the world central banks no longer stimulates investment and have actually turned “money good” investments bad.  The first investment casualties of the Great Bear Market are Biotechnology, IBB, Internet Retail, FDN, and Nasdaq Internet, PNQI.

The higher Yen, FXY, sent the Nikkei, NKY, tumbling 2.2%, making Japan the Bear Market nation loss leader; this as Bloomberg reports Japan current-account surplus plunges to record August low.

The US Dollar, $USD, UUP, traded slightly lower to close at 79.9; I believe it will be increasing in value for a while. Liberalism featured the Milton Friedman Free To Choose Banker Regime, where the coordinated central bank policies of democratic nations, such as the US, Japan, Australia, Indonesia, Thailand, India, Brazil, Singapore, and the Philippines, established Global ZIRP, assuring low interest rates, and backing for credit and carry trade investing, as the US Dollar, continually traded lower in value, and currencies floated, providing investment choices and great rewards for the savy investor.

But bond vigilantes will increasingly gain the upper hand in their war on the world central bank chiefs, calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.63%, and causing debt deflation, specifically competitive currency devaluation globally, as currency traders successfully sell currencies short.

Individual major world currencies such as the Australian Dollar, FXA, and the Euro, FXE, the Swiss Franc, FXF, the Swedish Krona, FXS, the British Pound Sterling, FXB, as well as Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF, are on the verge of collapsing in value, causing sovereign insolvency, banking insolvency and corporate insolvency.

Emerging Market Nations, EEM, especially those with trade deficits, such as Peru, EPU, and Chile, ECH, have seen terrific nation state investment deflation on the rise of the Interest Rate on the US Ten Year Note, ^TNX.  Advisor.ca reports Currency Wars Go Global.  “The currency war in the emerging world has gone global,” says Vincent Lépine, vice-president of global economic strategy at CIBC Global Asset Management. Lépine co-manages the Renaissance Optimal Inflation Opportunities Portfolio. That’s because countries can no longer lower their interest rates to boost growth, given rates are close to zero. Governments are also finding it challenging to use fiscal policy measures to stimulate their economies due to “lousy situations on the fiscal front,” he adds. Fighting the currency war, then, is the only option left, says Lépine. Countries don’t want to be the “one stuck with the strongest currency. Eventually, that will affect [their] competitiveness.”  And GATA reports Taiwan and New Zealand Want Their Dollars Down.

Authoritarianism features the Beast Regime, where leaders will meet in summits and workgroups to waive national sovereignty and establish pool sovereignty regionally, as the The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, Revelation 6:1-2, is effecting coup d’etat globally to transfer the baton of sovereignty, from democratic nation states to nannycrats, as they rise to rule in regional governance and totalitarian collectivism.

Thus, leaders from each of mankind’s seven institutions, these being 1) Education, 2) Banking, Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science and Technology, will increasingly be working in statist public private partnerships for regional integration, as they oversee the factors of production to manage regional commerce and trade, to establish regional security, stability and sustainability.

Lisa Abramowicz of Bloomberg reports Hedge Funds Expand Bets With Most Junk Since ’08.  Hedge funds have amassed the greatest share of the $1.2 trillion U.S. junk-bond market since the credit crisis, raising concern bets with borrowed cash will accelerate losses when the Federal Reserve stops printing record amounts of money. The funds, which typically use leverage to bolster returns, hold as much as 23% of outstanding dollar-denominated high-yield bonds, from as much as 18% last year and the highest since 2008, according to Barclays. Credit hedge funds have boosted assets by 89% since 2008, outpacing the 66% growth of the junk market, data from Hedge Fund Research and BoA indexes show.

The 0.04% trade lower in iShares Floating Rate Bond, FLOT, communicates the failure of liberalism’s credit. This investment is a short term bond ETF which corresponds generally to the Barclays US Floating Rate Note, and yields 0.65%, and represents risk free capital investment. Under liberalism’s central bank monetary policies of credit liquidity, it has risen in value from 48.50 in December 2011, to 50.67 on October 7, 2013. Short term bond ETFs, like FLOT, are considered an ultra-safe bond investment, and some have argued that they can act as a cash alternative or money market substitute. The trade lower in FLOT communicates that interest rate risk cannot be managed.  Not only are currencies, such as the Emerging Market Currencies, CEW, failing, but now credit has failed. Another word for credit is trust.  Investors can no longer trust the monetary policies of Ben Bernanke, Mario

As interest rate risk rises, the Steepner ETF, STPP, will once again rise in value. It rose in value, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened beginning in May 2013, running through September 1, 2013, as bond vigilantes gained control of the Interest Rate on the US Ten Year Note, $TNX, causing a steepening of the 10 30 US Sovereign Debt Yield Curve, that is $TNX:$TYX. But then from early September to October 4, 2013, the Steepner ETF, STPP, declined in value, as the Interest Rate on the US Ten Year Note, $TNX, fell to its October 4. 2013, rate of 2.65%; and then on October 7, 2013, the Steepner ETF, STPP, took a real hit, trading lower, in strong volume, to close at 39.30. The rise in the Steepner ETF, reflecting a steepening yield curve, will be a marker, that is a defining indicator, of the sea-saw destruction of money. Whatever one considers money to be, it is no more as fears arise that current sovereigns are unable to govern.

“Taper gone bad”, is the genesis of the see-saw destruction of fiat wealth that commenced October 1, 2013, and recommenced October 7, 2013.  Major World Currencies, the Japanese Yen, FXY, the Euro, FXE, the Canadian Dollar, FXC, the British Pound Sterling, FXB, the Swedish Krona, FXS, the Swiss Franc, FXF, and the Australian Dollar, FXA,  as well as Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, and the Indian Rupe, ICN, as well as Stocks, DBV, and Bonds, BND, are all falling into the Pit of Financial Abandon, as investors find that liberalism’s sovereigns, these being the leveraged speculative investment community, consisting of the Too Big To Fail Banks, Regional Banks, KRE, Investment Banker, KCE, and Stockbrokers, IAI, ar no longer able to leverage fiat money higher over debt; this being seen in the chart of World Stocks, VT, relative to Aggregate Credit, AGG … VT:AGG .. trading lower in value.

Out of a soon coming Financial Armageddon, that is a credit bust and financial system breakdown, authoritarianism’s new sovereigns, that being regional nannycrats, as well as Europe’s Sovereign, described in Revelation 13:5-10, and his partner, the Eurozone’s Seignior, Revelation 13:11-18, will rise to power, totally establishing diktat money, which replaces fiat money.

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

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

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

God has always provided empires for governance; the most recent ones have been liberalism’s, British Empire and the US Dollar Hegemonic Empire. But these are being swept into the dustbin of history, as Jesus Christ is operating in Dispensation, that is in the administrative oversight of all things economic and political, Ephesians 1:10, introducing authoritarianism’s Beast Regime of regional governance and totalitarian collectivism, which is the same empire of the Ten Toed Kingdom, presented in Daniel’s Statue of Empires, 2:25-45, with its toes being a miry mixture of clay democracy and iron diktat.

Ambrose Evans Pritchard of The Telegraph writes Factional Conflicts Have The Power To Destroy Empires – And Republics

An inquiring mind asks, how much longer will money market accounts be a safe haven investment, that is, how much longer will they keep their constant one dollar value with a rising Ten Year Interest Rate, ^TNX?

Ludwig von Mises Institute posts Skyscraper Index Is Flashing Red Alert

Bloomberg reports Aluminum Costs Seen Dropping as LME Unclogs Depots. The London Metal Exchange’s plan to ease congestion at warehouses storing near-record amounts of aluminum will accelerate deliveries and reduce premiums paid for supply, at a time when prices are already near a four-year low.  The Yahoo Finance Chart of Aluminum, JJU, shows it to be a commodity loss leader.

Bloomberg reports Biggest Pension Fund at Risk Holding 60% in Japanese Debt. Japan’s Government Pension Investment Fund, the world’s largest manager of retirement savings, isn’t ready for Abenomics, according to the head of an expert panel advising on public investments. The set of policies from Prime Minister Shinzo Abe aims to defeat 15 years of deflation and spur growth by using the “three arrows” of fiscal stimulus, monetary easing and business deregulation. GPIF needs to reduce the risk of losses on its bond holdings should interest rates start to rise as the economy improves, said Takatoshi Ito.

“The majority of the panel thinks the GPIF is exposed to too much interest-rate risk,” Ito said in an Oct. 4 interview. “If they’re really aware of interest-rate risk, why are 60 percent of the assets in domestic bonds?” An interim report from the panel on September 26, 2013, showed some members wanted the 121 trillion yen ($1.25 trillion) GPIF to add new assets such as real-estate trusts, infrastructure and private-equity investments and commodities. The group will meet two to four more times before issuing its final report next month, Ito said.

The ministry is likely aligned with Abe who “is keen to reallocate resources both to contribute to the sustainability of social welfare and to support market and corporate sentiment,” Aoki wrote in an Oct. 7 report. The Topix, ITF, has surged 33 percent this year. The nation’s sovereign bonds handed investors a 2.2 percent return in the same period, according to an index compiled by Bloomberg. Japan’s 10-year bond rose one basis point to 0.65 percent as of 1:05 p.m. in Tokyo after reaching 0.625 percent Oct. 4, a level not seen since May 10.

Energy Post writes in OilPrice.com Tensions Threaten Long Standing Natural Gas Partnership between EU and Russia

Mike Mish Shedlock writes Mainstream Media Finally Catches on to Disability Fraud: 60 Minutes Reports on “Disability USA” . Coburn selected cases at random and found 25% of the cases were fraudulent and another 20% were “highly questionable”. The “system is being gamed pretty big right now”, said Coburn. “You need look no further than disability lawyers trolling for new clients.”

Jaso Ditz of Antiwar reports Egypt Rules Brotherhood ‘Outlaws’ as Attacks Kill 9 Troops

Michael Krieger of Liberty Blitzkrieg blog, writes in Zero Hedge, Meet The Disability Industrial Complex: Up To 45% On Disability Insurance Are Frauds. In the economically depressed border area of Kentucky and West Virginia we find 10% to15% of the population on disability, or three times the national average. Senator Coburn says disability payments are now propping up the economy in some of the poorest regions in the country. Which is why he sent his investigators to the border area of Kentucky and West Virginia. More than a quarter of a million people in this area are on disability with  10 to 15 percent of the population, about three times the national average. Jennifer Griffith and Sarah Carver processed disability claims at the Social Security regional office in Huntington, West Virginia

Here, in Bellingham, WA, the City of Subdued Excitement, just south of the Canadian Border, and just north of Seattle, a cottage industry of disability lawyers has sprung up surrounding the local mission, located at Holly and F; the use of which is necessary to obtain SSI/SSD.

And there are a large number of social service counselors who encourage that one obtain a psych eval from Washington State DSHS, located at Guide Meridian and Bakerview, which entails that one go see a shrink for diagnosis of mental illness, such as narcism, bipolar disorder, anxiety, antisocial disorder, ADHD, or depression, as well as to go see a physician for diagnosis of fibromyalgia, hepatitis or chronic pain, as any of these conditions, are legal reasons for making the case, that one is unable to work. All veterans claiming PTSD are guaranteed a disability award.

Once one has been awarded SSI/SSD, one can then “live free”.  I know many individuals who are psychopaths; these mean and crazy individuals, have obtained SSI/SSD for their busybodyness; and now, most keep to themselves, except for a few who go on to be real hooligans, engaging other in all kinds of mischievous behavior, all at taxpayer expense.

Liberalism was an age of clientelism, providing millions of supposedly disabled individuals with transfer payments. The truth is that many choose not to work, and thus probably 50% of disability claims are fraudulent. The amount of assistance is equivalent to working at minimum wage which is $1,400 a month, (8 hours a day at $8/hour for 22 days a month).  SSI/SSD assistance consists of $730 in Disability, $170 in SNAP Food Stamps, $500 in Section 8 Housing Voucher Assistance, and then there is Medicaid as well, for physician visits, psychiatric care, dermatology and other specialty care, prescriptions, hospitalization, benefits, valued at $400, for a total welfare dole of $1,800 monthly.

On Tuesday, October 8, 2013, the beginning of the extinguishment of Nation Investment, EFA, started to destabilize liberalism’s nation state sovereignty, and its banker seigniorage, on investor’s fears of a US Default.

The new economic and political paradigm of authoritarianism, will rise out of  sovereign insolvency and banking insolvency, as foretold in Revelation 13:3-4, that being a Minsky Moment, where regional nannycrats will be appointed sovereign, and provide public private partnership seigniorage, as they issue diktat for regional security, stability, and sustainability.

Liberalism was characterized by trust in bankers, stock brokers, and asset managers, to the point of being insestious, through US Fed and other world central bank monetary policies such as POMO.  But authoritarianism will be characterized by trust in the word, will and way of the regional nannycrats; so much so that the Apostle Paul wrote in Revelation 13:3-4, that All the world marveled and followed the beast; so they worshiped the dragon who gave authority to the beast; and they worshiped the Beast.

Nation Investment, EFA, traded lower 0.6% lower on fears of US Default, and on awareness that the US Fed’s monetary policies no longer stimulate global growth and trade, and have actually turned” money good” investments bad.

Fiat money died Friday September 20, 2013, when World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, terminating the sovereignty of democratic nation states and terminating the seigniorage of the world central banks. Confirmation of such is seen in the Too Big To Fail Banks, RWW, and Regional Banks, KRE, trading lower in value, the Market Off ETN, OFF, rising in value.

Competitive currency devaluation has commenced on the exhaustion of the world central banks’ monetary authority, as investors are coming to realize that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

On Wednesday, October 9, 2013, World Stocks, VT, and Nation Investment, EFA, traded slightly higher on hopes for resolution of the fiscal impasse;  and gold turned down, just as it appeart to breaking out.

The WSJ reports Chinese Think Tank Puts Shadow Banking at 40% of GDP.  As the fastest growing part of China’s financial sector, shadow banking is no longer the sideshow it was five years ago. The sector grew from almost nothing a few years ago to the equivalent of 40% of gross domestic product at the end of 2012, the Chinese Academy of Social Sciences said.

Please consider that under liberalism, the liquidity effect of the world central banks’ monetary policies, in particular the Federal Reserve, established global ZIRP, flooded the world with credit and stimulated currency carry trade investing, in particular the EURJPY and the AUDJPY, which created a crack up boom in the value of Risk Assets, such as Biotechnology, IBB, Solar, TAN, IPOs, FPX, Media, PBS, Leveraged Buyouts, PSP, Pharmaceuticals, PJP, Small Cap Pure Value, RZV, Aerospace, PPA, Resorts and Casinos, BJK, as is seen their combined ongoing Yahoo Finance Chart.

But on September 20, 2013, that speculative leveraged investment bubble burst, as is seen in World Stocks, VT, trading lower, on fears that the world’s central banks monetary policies have crossed the Rubicon of sound monetary policy, and have turned “money good” investments bad.

Earlier on May 21, 2013, the First Horseman of the Apocalypse, the Rider on the White Horse, seen in Revelation 6:1-2, enabled the bond vigilantes to call the Interest Rate on the US Note, ^TNX, higher to 2.1%, destroying Aggregate Credit, AGG, and creating debt deflation, that is  competitive currency devaluation, turning Major World Currencies, DBV, and Emerging Market Currencies, CEW. lower.

The world central bankers, no longer have tight control over interest rates, and The Great Bear Market commenced on fears of a US Default as well as on fears that the monetary policies of the world central banks no longer stimulate global growth and trade and corporate profitability, and have actually turned “money good” investments bad.

With the transition from bull to bear market on September 20, 2013, as is seen in the Market Off ETN, OFF, rising in value as Jesus Christ is acting in Dispensation, that is in oversight of all things economic and political, as presented by the Apostle Paul in Ephesians, 1:10, having pivoted the world from liberalism to authoritarianism.

The Fed plans for QETernity. David Malpass of the WSJ reports The Bigger Battle Behind the Shutdown. A staggering $250 billion per month, 80% of spending, runs on autopilot without congressional control. At its core, the shutdown is part of a much bigger battle to restrain the federal government. It is spending $3.6 trillion per year without a budget, and its expenditures are expected to increase rapidly in the years ahead. Meanwhile, the government has piled up $17 trillion in debt and $60 trillion more in unfunded spending promises. The Federal Reserve will borrow $1.1 trillion in 2013 alone to buy bonds and it reserves the right to borrow unlimited amounts for future bond purchases without congressional or presidential permission.

Through anticipation of ongoing monetary intervention by the US Fed, the see-saw destruction of fiat wealth that commenced October 1, 2013, and intensified October 7, 2013, will become more vigorous, as bond vigilantes call the Interest Rate on US Ten Year Note, ^TNX, higher from 2.65%, and as currency traders sell the EURJPY, the AUDJPY, and Major World Currencies such as the Canadian Dollar, FXC, the British Pound Sterling, FXB, the Swedish Krona, FXS, the Swiss Franc, FXF, and Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF.

Out of a soon coming Financial Apocalypse, that is a global credit bust and financial system breakdown, as foretold in Revelation 13:3-4, and more specifically out of sovereign insolvency and banking insolvency of the periphery and southern European periphery nations of Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, that is the so called PIIGS, the Beast Regime of regional governance and totalitarian collectivism, presented in Revelation 13:1-4, will rise to rule, in all of the world’s ten regions, and occupy in all of mankind’s seven institutions.

Under authoritarianism, physical possession of gold bullion and silver bullion will be the only means of financial wealth preservation and growth.

On Thursday, October 10, 2013,  World Stocks, VT, Nation Investment, EFA,  and Global Industrial Producer, FXR, rose, as President Obama announced dovish banking insider Janet Yellen as his choice for Federal Reserve Chair, and as lawmakers moved toward an agreement to increase the debt ceiling and avoid a default, causing risk assets and financial stocks to rise strongly.

The yield curve is now steepening as the Fed did not taper, and will not taper. The Interest Rate on the US Ten Year Government Bond, ^TNX, rose to 2.68%, and the Steepner ETF, STPP, rose strongly as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened. A steepening yield curve suggests that bond vigilantes are once again obtaining a strong hold over interest rates, in their war on the world central banks; and that they are once again calling US Government Bonds, GOVT, lower, on the monetization of debt by the US Federal Reserve.  The Steepner ETF, is a great ETF for rising rates.

Junk Bonds, JNK, rose taking Aggregate Credit, AGG, higher.  Gold turned strongly lower to close at  $1,272.

Currency traders, sold the Japanese Yen, FXY, causing the chart of EUR/JPY to rally strongly to 132.86, and the chart of AUD/JPY to rally strongly to 92.02. Of note, the Chinese Yuan, CYB, rose strongly to a new rally high. CNBC writes Yuan moves one step closer to global currency status.

Ambrose Evans Pritchard wrote Rejoice: “The Yellen Fed Will Print Money Forever to Create Jobs.”

The October 10, 2013, rally in stocks, on the announcement of Janet Yellen as Obama’s choice for Federal Reserve Chairperson, and on hopes of an accord to avoid US Default, coupled with the likelihood of a developing impasse on resolving a US Budget, and consequential Default on US Debt, is likely to stimulate fears of a market sell off, and presents the short selling opportunity of a lifetime, continuing a Bear Market that commenced with a market top on September 20, 2013, which came with the No Fed Taper Rall.

In a bull market, one buys in dips, and in a bear market, one sells into pips. The Great Bear Market commenced on September 20, 2013, as evidenced in the Market Off ETN, OFF, rising in value.

One could sell short the 40 ETFs/ETNs, IBB, PNQI, FDN, TAN, BJK, RZV, FPX, IST, FLM, CSD, PBS, IAI, PSCI, XTN, FXR, CARZ, XRT, EUFN, PJP, SMH, WOOD, PSP, RWW, PPA, SLX, RXI, ENZL, EIRL, GREK, EWP, YAO, TUR, ARGT, EPHE, SCIN, THD, EGPT, EWZS, EWY, UJB, seen in this Finviz Screener, for great future reward as these are high beta risk averse ETFs.

And one could use the 8 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, what I term the market vane ETFs, as the basis for one’s margin account, as these will increase in value with rapidly growing financial instability, as carry trades unwind, and as the Interest Rate on the US Ten Year Note, ^TNX, rises.

Benson te writes Graphic: The Globalization of Boeing’s Dreamliner. Assembled in the US, much of what makes up the Boeing’s Dreamliner has been sourced overseas.  I comment that although sourced overseas, Boeing still does employ many here in Washington State. The freeways, that is expressways, are clogged with its workers. And then, after working for Boeing, they often retire in sunnier climates like Hawaii, or retire in nearby areas like Bellingham, where I live, driving up the prices of real estate. Boeing exemplifies the “best practices” of capitalism, is an economic success story, is a leading Global Industrial Producer, FXR, is a leading Defense and Aerospace Producer, PPA, and has been an investor’s darling, as is seen in its ongoing Yahoo Finance chart. Boeing, BA, rose 3.8% on the October 10, 2013, Yellen Rally, compared to the 2.1% for the S&P 500, SPY. Yet nevertheless it is a participant in the Great Bear Market which commenced that September 20, 2013, as reflected in the Market Off ETN, OFF, rising in value. The way is inexorably down now.  One of the factors that drove Boeing higher under liberalism was its high level of debt; a Long Term Debt to Equity Ratio of 1.3%. In liberalism’s final Global ZIRP credit rally, investors pursued debt laden companies, like Boeing, as they chased yield.

Ed Yardeni posts Europe’s Recovery. The OECD Leading Composite Index for Europe is confirming the region’s recovery. It is up for the past 11 consecutive months to August’s 100.5, the highest reading since July 2011. Leading the way up have been some of the more distressed countries in the euro zone, particularly Spain. The UK is also looking very strong. Here is August’s ranking: Spain (102.0), Ireland (101.9), Greece (101.8), Portugal (101.4), UK (101.2), Italy (100.7), Europe (100.5), Germany (100.4), Belgium (100.2), Netherlands (100.0), and France (99.7). Yet the IMF is expecting that the euro zone’s real GDP will grow by only 1.0% next year after falling 0.4% this year. The organization’s latest report challenges the notion that the region is out of the woods. It sees potential for a renewed financial crisis, and is critical of the slow pace of banking and economic reforms. Labor markets remain mostly uncompetitive in the peripheral countries. Bank credit continues to shrink.

I comment that since 2008, through the credit liquidity monetary policies of the ECB, the US Federal Reserve and the other world central banks, have eked out a marginal recovery in the Eurozone, and a fantastic moral hazard based smorgasbord of investment choice, that has rewarded the savvy investor, providing great prosperity for those connected to the speculative leveraged investment community.

The Times of London reports Eurozone Companies Face Huge Debt Overhang That Could Harm Recovery.  And the WSJ reports IMF Warns On Corporate Exposures of Euro Zone Banks.

On Friday, October 11, 2013, Wall Street Ends Higher on Hopes of Weekend Resolution in Washington.  U.S. stocks extended gains on Friday, a day after their biggest rally in more than nine months, as investors were hopeful for a solution to end the partial government shutdown that would stave off a possible U.S. default, Reuters reported.

The chart of the EUR/JPY shows a close for the week at 133.48. And the chart of AUD/JPY shows a close for the week at 93.27

Gold, GLD, plummeted 1.3%, and Silver, SLV, 1.5%, forcing Gold Miners, GDX, 2.1%, lower, and Silver Miners, SIL, 1.6%, lower, reflecting demand for Risk Assets, such as Solar Stocks, TAN, and Resorts and Casinos, BJK, as well as for Emerging Market Infrastructure, EMIF, and US Infrastructure, PKB, supported by a strong EURJPY and AUDJPY, as is seen in their ongoing Yahoo Finance Chart. Jack Chan Safehaven.com chart report This Week In Gold communiates that Gold was posed for a breakout this week but faltered an went into a breakdown

This week World Stocks, VT, rose, 0.9%, as Nation Investment, EFA, rose, 0.9%, and as the Eurozone, EZU, rose 1.6% and the Emerging Markets, EEM, rose 1.7%. This week, US Stocks, VTI, and The Russell 2000, IWM, both rose 0.6%. And the S&P 500, SPY, rose 0.8%; with the chart of the S&P 500, $SPX, closing at $1,703, up  0.7%.

The S&P 500, SPY, closed at 170.25. Inasmuch as September 20, 2013, marked an Elliott Wave 5 High in the S&P 500; its current rise marks an Elliott Wave 2 High, from which the S&P 500 will fall into an Elliott Wave 3 Down; these are the most aggressive of all economic waves, creating the bulk of wealth on the way up, and destroying most of wealth on the way down.

Mark Zandi, in Calculated Risk PDF Document. gave testimony before the Joint Economic Committee on October 11, 2013, stating “equities … have been slowly grinding lower since mid-September.” Zandi, makes the case that Congress should end the shutdown and reverse the sequester in order to boost the economy. Yet the S&P 500, is a participant in the Great Bear Market which commenced that September 20, 2013, as reflected in the Market Off ETN, OFF, rising in value. The way is inexorably down now.

Nations rising strongly this week included the following

Egypt, EGPT, 5.5,

Israel, EIS, 3.8

India, INP, 3.4, SCIN, 2.1,

Brazil, EWZ, 2.7, EWZS, 2.5,

Spain, EWP, 2.4

Italy, EWI, 3.1

Greece, GREK,  2.9

Thailand, THD, 2.8,

Philippines, EPHE, 2.7

South Korea, EWY, 2.1

Argentina, ARGT, 1.4

Sectors rising this week to new rally highs included the following:

Solar, TAN, 3.0%

Design Build, FLM, 2.2

Leveraged Buyouts, PSP, 1.6

Resorts and Casinos, BJK, 1.4

Small Cap Industrials, PSCI, 0.9

Sectors falling strongly this week included the following:

Biotechnology, IBB, -5.4

Nasdaq Internet, PNQI, -2.9%

Internet Retail, FDN, -2.4,

these are the first investment casualties of the Great Bear Market.

Yield Bearing Sectors rising strongly this week included

Electric Utilities, XLU, 2.6%

Real Estate, IYR, 2.6, with REZ 3.6, FNIO, 3.0, ROOF 2.4, and DRW, 1.2.

Telecom, IST, 1.0

Shipping, SEA, 0.6

Small Cap Energy, PSCE, 1.9%, Energy Production, XOP, 1.7. both new rally highs on a lower price of Oil, USO, -1.0. Demand for Small Cap Industrials, PSCI, and Small Cap Energy, PSCE, have driven the Small Cap Growth Stocks, RZG, to a new rally high as investors have shunned Large Cap Value Stocks, JKF, as is seen in their combined ongoing Yahoo Finance Chart.

On Friday, Junk Bonds, JNK, rose 0.4%, and Ultra Junk Bonds, UJB, rose 0.1%, taking Aggregate Credit, AGG, 0.1% higher. The Interest Rate on the US Ten Year Note, ^TNX, closed at 2.68%.

An inquiring mind asks, is the JYN, which has been rising with the Interest Rate on the US Ten Year Note, ^TNX, on May 13, 2013, going to continue to rise from its October 11 value of 58.85?

Rob Sheridan of Bloomberg reports The cost of shipping iron ore, coal and grains along China’s coast rose to an 18-month high as surging imports of the commodities boost demand for vessels to redistribute them between the nation’s ports. The China Coastal Bulk Freight Index measuring the domestic shipping prices for commodities advanced 2.2% to 1,167 points in the past week, according to data from the Shanghai Shipping Exchange. It rose 11% since the start of the year and is now the highest since April 2012.  An inquiring mind asks, is the rise in Shipping Rates and Shipping Stocks, SEA, due to a growth in credit or a growth in China’s economy?

Reuters reports Two More Pipeline Deals as U.S. Shale Production Booms

Jim Lobe & Daniel Luban write The Messianic, Apocalyptic Bibi Netanyahu.

Itechpost relates The Samsung Galaxy Note 10.1 – 2014 Edition is now available in the U.S. from Amazon. The retailer just started offering both the 16GB and 32GB versions of the tablet. This powerful tablet provides fast performance in a sleek design that’s comfortable to hold. It features Samsung’s most efficient processor for fast Web browsing and multitasking and longer battery life.

Take Handwritten Notes and More with the S Pen. Included with the Galaxy Note 10.1 is Samsung’s S Pen, which is a digital pen that allows you to jot down notes, phone numbers, search terms, contact information, and more right on the display. Samsung’s handwriting-to-text engine automatically converts your written notes to digital type. The S Pen offers precise control along with access to shortcuts to a wide range of S Pen functions via the Air Command feature.

Use As a Universal Remote Control. Watching television just got simpler, thanks to the Galaxy Note 10.1′s built-in IR blaster, which allows you to use the tablet as a universal remote control. The Samsung WatchON feature lets you type in your zip code and cable provider to browse and search current TV listings and get personalized recommendations based on your viewing history.

Provide Curated Content with My Magazine. Built into the Galaxy Note 10.1 is Samsung’s My Magazine feature, which you can personalize with your favorite news sources, celebrities, sports teams, musical artists, and Twitter streams. Access it from the home screen by simply swiping up. My Magazine provides an easy, convenient way to keep track of everything that’s important to you.

Amazon is offering the Samsung Galaxy Note 10.1 – 214 Edition for $549 for 16GB and $599 for 32GB. The retailer is also including free shipping with the order.

6)  … Monday October 13, 2013, is Nobel Peace Prize Day. All things have fathers, that is starters. Liberalism’s floating currency regime was fathered by Milton Friedman, who presented the concept to President Nixon, who went off the gold standard, and commenced ongoing global war.

The Nobel Peace Plan should be awarded to and shared amongst, Dr. Friedman’s three liberal offspring; yes, these be the Milton Friedman of today.

First, Ben Bernanke, for effecting the No Taper Rally which drove up World Stocks, VT, to its September 20, 2013, high of 56.53.

Second, Mario Draghi, for stating that the ECB stands “ready to act accordingly and as needed to contain money market rates”, according to Jana Randow and Andre Tartar of Bloomberg. His words drove Italy, EWI, up 3.1%, Spain, EWP, 2.4% and Greece, GREK, 2.9%, as well as European Financials, EUFN, up 1.2%, for the week ending October 11, 2013.

Three Jeroen Dijsselbloem, President of the Eurogroup meeting of euro-zone finance ministers, Olli Rehn, Vice President of the European Commission responsible for economic and monetary affairs, Michel Barnier, EU Commissioner responsible for internal market and services, Klaus Regling, Managing Director of the European Stability Mechanism, Werner Hoyer, President of the European Investment Bank, who in the WSJ op-edited credit for the Eurozone’s economic recovery,

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

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

The provision of TARP as a Fed Monetary policy was the genesis and foundation of QE, which underwrote the expansion of liberalism by securing the seigniorage of investment choice, and established the dynamos of corporate profit and global growth based upon investment opportunities in nation states, and underwrote trust in bankers, carry trade investing and credit, in particular Treasury debt, and which provided economic action of inflationism, and provided great wealth seen in World Stocks, VT, rising to its September 20, 2013 high value of 56.53, which has secured economic life in crony capitalism, clientelism and its dependency, European socialism, and Greek socialism.

Please consider the Dispensation Economist Manifest, which presents that Jesus Christ is at the helm of the Economy of God, and as presented by the Apostle Paul in Ephesians 1:10, is in administration of all things economic and political to fulfill and complete every age, epoch, era and time period. Through inflationism of the Banker Regime in particular through POMO and Quantitative Easing, produced peak moral hazard prosperity, peak wealth, peak democratic nation state sovereignty, peak banker seigniorage, through leveraged speculative investing by the issuance of debt and the practice of carry trade investing, on September 20, 2013, with the No Taper Rally, terminated liberalism. He has pivoted the world out of the paradigm of liberalism and into authoritarianism; where there will no longer be policies of investment choice and schemes of credit and carry trade investing; but rather policies of diktat and schemes of control and debt servitude

Now, Jesus Christ, in providing the Beast System, the Beast Ruler and the Beast Banker, as well as in providing the Four Horsemen of the Apocalypse, Revelation 6:1-8, is introducing a number of new things. These include, a new seigniorage, the seigniorage of diktat, and new dynamos, the dynamos of regional security, stability and sustainability, and a new trust, the trust in statist nannycrats, totalitarian collectivism, public private partnerships and debt servitude, and new economic action of destructionism, as well as a new action in nature, that being calamity and disaster, and new economic experience of poverty, as well as new economic life in regionalism.

Of timely note, Stefan Steinberg in WSWS writes New Reports Warn Of Mass Poverty And Social Decline In Europe. The social crisis in Europe is being consciously exploited by the continent’s political elite to affect a major redistribution of wealth from the bottom of society to the top

The fiat money system, that is the Milton Friedman Free to Choose Floating Currency Regime,  died September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower; and the diktat money system is now in place for mankind’s economic and political action. There be no human action, as perceived by the Austrian economists and the Libertarians, rather only the action of Jesus Christ if providing the diktat money system, where all currencies ever-sink into the pit of financial abandon.

Dr Milton Friedman’s liberal offspring waived wands of magic prosperity in what Doug Noland termed wildcat finance. In Authorianism’s sinking currency regime, Angela Merkel has fathered authoritarian offspring, the Troika, who are waiving clubs of austerity in what I term wildcat governance.

7) … Summary, All things be of God, and He is bringing forth three beasts to rule mankind, which will provide diktat money to replace fiat money, which places liberty of conscience at risk.

All things be of God, 2 Corinthians 5:17-18.

Either one be of the of the like precious faith, 2 Peter 1:1, or one be one of fiat, which means “be it so

Thus either one be called, that is elect, and be made accepted in the Beloved; or one be of fiat. that is of mandate, established so, by authoritative decree.

Examples of those of fiat, that is those who be by authoritative decree, include the following:

1) … a person with inalienable rights, a citizen of the Unites States of America by decree of national constitution.

2) … a religious person, by declaration of membership in a church.

3) … a resident in a client state of a sovereign region, one of ten, called for by the Club of Rome in 1974; such as those living in Greece be residents of a client state, living under the sovereign authority of the EU ECB and IMF Troika in technocratic government, and by receiving seigniorage aid.

4) … a political person, a Republican, as these are such, by reference to and participation in social conservative values.

5) … an ethical person, by embracing and announcing and receiving affirmation by others, in statement, ie a Libertarian statement, such as Austrian economics Benson te who writes Almost all social order emerges undesigned and unplanned.

6) … or self appointmented ruler over others, ie a sociopath.

In contrast, the elect, those of like precious faith, participate in the divine nature, as they add to their faith seven things: virtue, knowledge, self moderation, perseverance, godliness, brotherly kindness, and love, 2 Peter 1:5-7.

A good conscience is a gift from God that comes in answer to prayer, Psalm 51:10. With practice, one can develop conscience so as to be acceptable to God and approved by others, Romans 14:18. It is through a good conscience, together with the additive process, and one another living, that one becomes a moral person in Christ.

The conscience is used to be reflective on one’s attitudes, behavior and speech, so as to show oneself to God, a worker who need not be ashamed, 2 Timothy 2:15.  It is in consistent application of the additive process, and in keeping God’s word, that is in maintaining and practicing His Word in attitude, speech and action, as well as respecting His presence and authority, Revelation 3:8, that one is able to maintain good works, as called for in Titus 3:8.

Said another way, The Believer receives the Word in faith and love, and attends to it with preparation, thanksgiving, prayer, and diligence, laying it up in his heart and practicing it in his life, so as to experience the divine nature and receive the exceeding great and precious promises of God, 2 Peter 1: 5-7.

Good character flows from conscience, the additive process, living the one another lifestyle, and maintaining good works. Faith of God.Net provides bible references for character.

Having life out of moral identity, one experiences a morally beneficial and spiritually fruitful life, 2 Peter 1:8. As one makes his calling and election sure, 2 Peter 1:10, he has wide acceptance into the everlasting Kingdom, 2 Peter 1:11.

And of course, one can be self deceived, as James says in James 1:26, If anyone among you thinks he is religious and does not bridle his tongue, he deceives himself and his religion is useless.

Those of the divine nature have values, ethics and virtues, that is moral excellencies, and live assured of God’s exceedingly great and precious promises.

Austrian economist and libertarian Mike Mish Shedlock complain Ten Real Problems

  1. Fractional Reserve Lending

  2. The Fed

  3. Lack of a gold standard

  4. Deficit Spending

  5. Public unions

  6. Davis Bacon and prevailing wage laws drive up costs

  7. Disability fraud

  8. Warmongering

  9. Politicians get into bed with corporations, unions, and crony constituents

  10. Lack of incentives to hold down costs on medicare, food stamps, and entitlements

If you fix the first four or five, most of the rest of the problems will be fixed automatically. The primary reason for wage inequity is the Fed’s inflationary boom-bust practices. In addition, public unions and untenable pension obligations drive up costs (and taxes). As I have stated dozens of times, inflation benefits those with first access to money (the banks and the already wealthy).

Please consider that from eternity past, God planned and brought forth liberalism, as part of his design for providing empires for governance; the most recent ones have been liberalism’s British Empire and the US Dollar Hegemonic Empire, the two iron legs presented in Daniel’s Statue of Empires, 2:25-45.

But these are being swept into the dustbin of history, as Jesus Christ is operating in Dispensation, that is in the administrative oversight of all things economic and political, Ephesians 1:10, introducing authoritarianism’s Beast Regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, which is the same empire of the Ten Toed Kingdom, with its toes being a miry mixture of clay democracy and iron diktat, seen in Daniel 2:25-45.

The collapse of the first iron leg of liberalism’s empire came with the failure of the sovereignty of the British Empire in four stages. First, in 1948 the the UK was kicked out of Palestine with establishment of the State of Israel. Second, in 1951 Egypt repudiated the Anglo-Egyptian Treaty of 1936, and in 1954 the UK agreed to remove its troops, and withdrew is troops in 1956 Third, The Treaty of Maastricht was an amendment to the Treaty of Rome, to which the UK had become a signatory by terms of the Treaty of Accession of November 1972, Conservative Michael Spicer relates in History of the Maastricht Treaty.  Fourth, the UK transferred authority over Hong Kong in June of 1985.

Now the second iron leg is about to crumble as International Man relates in Casey Research What Ron Paul Told Me About The End Of Dollar Hegemony. And Benson te writes Why A US Debt Default Extrapolates To The End Of US Dollar Hegemony

Anthony Migchels of Real Currencies writes The Dying Dollar and the Rise of a New Currency Order.

The roles of a reserve currency are to finance international trade and to function as a store of value for Governments. Until the second world war it used to be the British pound, but with the demise of the British Empire, the pound lost its international relevance and was overtaken by the dollar. This was formalized in the 1944 Bretton Woods system. All other currencies were fiat currencies, but pegged to the dollar, which in turn was pegged to Gold at 40 dollars an ounce and redeemable for international trading partners.

The Eurodollar. With the dollar as the reserve currency, the US had to export dollars. In the early years after the war especially for Europe, the famous Eurodollars. This sounds great: print money and buy whatever you like. But with the Gold window it was also risky: overprinting could mean excess dollars would be exchanged back to Gold, depleting US Gold reserves.

This was also a weakness that those annoyed with American Hegemony could exploit. In 1967 the leftist press mogul Jean-Jacques Servan-Schreiber penned a famous screed called ‘le défi Américain’ (the American challenge’), arguing Europe was being colonized economically by superior American competition. France, at the time, was run by de Gaulle, who never was impressed with Anglo-American supremacy. He made a point of exchanging every dollar he could lay his hands on as a means to undermine it.

In the late sixties the situation got badly out of hand because of the Great Society and the Vietnam war, very costly projects that were deficit financed, leading to serious inflationary pressures. Inflation that the US tried to export, leading to an excess of dollars abroad. Especially the resurging Deutschmark’s appreciation became untenable. The Europeans started pressuring the US to fix its deficits, provoking the US Treasury Secretary John Connally famous cry ‘the dollar is our currency and your problem’.

But the situation had become unsustainable and Nixon was forced to close the Gold window to stop the depletion of US gold. This was the end of the Bretton Woods system and from then on the major currencies were floated freely in the international currency markets.

The Petrodollar. But it did not end the dollar reserve currency status, as the Empire had been found another basis for it: they reached an agreement with the House of Saud, to accept only dollars for its oil. The Sauds agreed to invest their dollar wealth on Wall Street, making the deal even more powerful for the Empire. Saudi Arabia controlled OPEC and the dollar was saved: international oil trading is financed with dollar only.

Since then we have been on an informal Black Gold standard, known as the petrodollar.

This situation was better than before, because overprinting of the dollar for international trade or to finance all sorts Empire projects could no longer be punished by depleting Gold reserves and would result only in rising prices.

In the last decade the problem of over printing was solved by artificially raising oil prices through the Peak Oil hoax, and ending Iraqi oil production. It must be understood that the Empire is not looking for more oil production. There is so much oil in the world that should it be drilled for freely, it would end the Money Power’s energy monopoly. The Iraq invasion and the quest for control of the Middle-East is to keep a lid on oil production. Saddam’s suicidal decision to accept euro for his oil only hastened his demise.

Even today Iraqi oil production is not even half of what it was before 1991. With the Western Oil companies now in charge, it will most likely never fully recover.

By raising the price for oil, the oil market has mopped up excess dollar supplies, which are now needed for the oil trade. As a result, the dollar has remained relatively stable in its value. Of course, it fits well with the agenda of decapitating the middle classes and under this agreement higher oil prices also means ever more oil profits invested in Wall Street.

Of course, the great boon of this for the Empire is that it can pay with worthless paper for real goods. It can eternally finance a major trade deficit.

Trade deficits are incorrectly understood as problematic.

From a nation’s point of view, the goal of trade is not to export, but to import. We export to give back for what we need from others. If you run the reserve currency, you don’t need to export as much as you import, because you can partially finance your imports with money printing. For all other nations this is impossible and trade deficits are lethal in the long run, as it leads to net capital outflow.

But the US Empire is in trouble. Its infrastructure is crumbling, its manufacturing base gone, it’s badly over extended. It needs ever more virulent threats to coerce the nations into dollar submission and just like Connally failed in 1971, the US is failing today. The Money Power is done with the Empire and the dollar and it is moving to the next phase. The dollar will have to step back and we are seeing a realignment.

The new currency order. China is moving towards a Gold backed yuan that will be very powerful in the international arena. Recently Australia, which is already completely dependent on China, with 30% of its exports going there, is preparing direct convertibility between the yuan and the Australian dollar, meaning they will no longer use US dollar to finance bilateral trade. This means less US dollars are needed in its reserve currency role.

And there is of course the euro, which, make no mistake, is in great shape. True, Eurocrat legitimacy is suffering because of the euro crisis, even in Germany the currency is losing support. But the euro crisis is purely for internal consumption, to sucker the nations into surrendering budget responsibility to Brussels. This is the final frontier for a full blown EU federalist Super State. While the euro is deeply hated, this is not really a problem for the Money Power: it isn’t in this business to make friends and it does not mind a big fight. It only fears real alternatives and these are nowhere to be seen. There is nobody proposing anything real, people are just letting off steam. Once they get their fiscal union, the crisis will quickly end. People have a short memory.

We are seeing the advent of the new currency order. There will be a number of more or less equal blocks: a dollar zone, a Yuan/BRICS zone and the euro, with the Yen and the Pound as lesser entities. These will later be able to converge to even more ‘cooperation’, in the Money Power’s relentless march towards World Currency.

These units will be at least partially Gold backed, implying long term deflationary pressures. Central Banks are buying Gold in major quantities, creating the interesting question why Gold prices have not risen in the last 18 months.

The problem for the United States will be to manage the transition. Trillions of dollars that will no longer be needed will have to be repatriated and this will lead to very strong inflationary pressures at home. It is unclear how the Fed is going to deal with that. It probably can’t. Furthermore, the US is probably in the worst of positions to deal with a new Gold standard. They claim to have 8,000 tonnes of Gold in Fort Knox, but nobody really believes that.

The hyperinflation scare that the Austrians have been promoting because of ‘money printing’ is ridiculous: we are in a stagflationary depression and prices are rising because of speculation, not because of excess money. But when the dollar loses its current status, long term price rises will become the norm. The Greatest Depression has only just started.

John Redwood, MP, writes Ministers and The UK Government. The UK has two governments for the price of three. Ministers are busier these days, because so much of what they do entails checking the EU government will let them do what they wish, or requires endless negotiation of new laws and requirements with their European partners. The EU has made huge changes to our constitution. One of the biggest is Parliament now regularly binds its successors,by rubber stamping EU law which a future UK Parliament cannot repeal. Another major change is Ministers are now not only beneath the law, but in the case of European law cannot change the law for the future when it gets in the way of good UK government (Unless the Commission, the European Parliament and other member states agree).

Given that Mr. Shedlock has complained about Liberalism’s Banker Regime, and Mr. Redwood about Eurozone interference in UK matters, it’s reasonable to believe they will complain even more about authoritarianism’s Beast Regime foretold in Revelation 13:1-4, its Beast Ruler, in Revelation 13:5-10, and Beast Banker in Revelation 13:12-18; their purpose to enforce authoritarianism’s policies of diktat and schemes of debt servitude and austerity, replacing liberalism’s policies of investment choice and schemes of credit and carry trade investment.

Diktat money has come of age. Diktat money is the developing form of money in the age of authoritarianism; diktat money will be the basis of The Beast System’s power.

Millions of LBJ’s grandchildren and great grandchildren are beginning to experience austerity with Head Start program reductions, which come with the US Government shutdown and its associated budget cuts; some 7,000 Preschool Children Nationwide Were Forced Out Of Classrooms, CBS News reports; and Millions Face Loss Of Day Care And Food As Shutdown Drags On, Samuel Davidson of WSWS report. Social program eliminations in programs such as Head Start are a form of diktat money.

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

Diktat money is the major form of money in the age of authoritarianism, the other is physical possession of gold and silver bullion; it replaces fiat money which prevailed during the age of liberalism.

Jesus Christ acting in dispensation, that is in the administrative plan of God for the fulfillment of every age, Ephesians 1:10,  pivoted the world from liberalism into authoritarianism on Friday September 20, 2013, as is seen the chart of World Stocks, VT, trading lower in value.

Fiat money died Friday September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower, as Jesus Christ operating in dispensation, as presented by the Apostle Paul in Ephesians 1:10, that is in administrative oversight of all things economic and political, pivoted the world out of liberalism and into authoritarianism, and as such the stock market has turned from bull to bear with the Too Big To Fail Banks, RWW, trading lower in value.

Those ETF sectors which rallied over the last year and countries which rallied, from late June 2013 to late September, 2013, seen in this Finviz Screener, will be trading ever lower from the Tuesday October 1, 2013 rally, on competitive currency devaluation and on the exhaustion of the world central banks’ monetary authority, as investors come to greater realization that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

Friday, September 20, 2013, was liberalism’s day of investment instability that marked an inflection point that pivoted the world from the paradigm of liberalism into the paradigm of authoritarianism, and from a moral hazard based prosperity into a debt servitude based austerity, as the financial markets turning from risk-on to risk-off, as indicated by the Market Off ETN, OFF, trading higher, and the stock market turned from bull to bear. Risk on investing has turned to risk off disinvestment. Those companies which were were liberalism’s investment darlings will be authoritarianism’s loss leaders.

Liberalism Was The Age Of Wildcat Finance And Investment Choice … Authoritarianism Is The Age Of Wildcat Governance And Diktat

October 8, 2013

Financial Market Report for the Week Ending Friday October 4, 2013

1) … The short selling opportunity of a lifetime has emerged with the stock market rally of  Tuesday October 1, 2013.

Tuesday October 1, 2013, was a strongly bullish day in the financial markets with short covering accounting for the day’s gain as Yahoo Finance In Play reports Risk assets benefited from the rebound in Europe where yesterday’s fears of a possible collapse of the Italian government were alleviated by reports indicating about 20 PDL ministers are ready to form a breakaway party supporting Prime Minister Enrico Letta. The fluid situation is expected to become a bit clearer tomorrow when the prime minister appears in front of the parliament.

Precious Metals traded strongly lower with Gold, GLD, -2.8%, and Silver, SLV -2.3, which stimulated Gold and Silver Mining lower, GDX -2.4%, GDXJ -3.1, SIL -2.1, SSRI -1.8; the outlook for these stocks is terribly bearish as not only are they unable to leverage higher on rising prices of the underlying commodity, but are leveraged lower on falling prices.

World Stocks, VT, rose 0.8%, Nation Investment, EFA, 0.5%, Global Industrial Producers, FXR, 1.2%, nearing its recent high, and Solar, TAN, 4.0%, led a whole host of sectors higher which included

Inverse Volatility, XIV 3.3

Paper Producers, WOOD 2.1

Pharmaceuticals, PJP 2.0

Nasdaq Internet, PNQI 2.0 New High

Biotechnology, IBB 2.0 New High

Internet Retail, FDN 1.7 New High

Media, PBS 1.6 New High

Health Care Providers, IHF 1.5

China Industrials, CHII 1.5

Design Build, PKB, 1.2

Transportation, XTN 1.2

Retail, XRT 1.3

IPOs, FPX 1.3

Resorts and Casinos, BJK 1.2

Semiconductors, SMH 1.2

Networking, IGN 1.2

Small Cap Pure Value, RZV 1.2 New High

Financials,

European Financials, EUFN, 1.1 led by LYG, RBS, UBS, CS, SAN, IRE, DB,

Energy

Small Cap Energy, PSCE 2.2 New High

Energy Production, XOP 2.0 New High

Yield Bearing Investments,

Global Telecom, IST 1.3 New High

US Stocks,VTI 0.9

BRICS, EEB 1.3

Russia, RSX 2.3

India, INP 1.7

China, YAO 1.6

Brazil, EWZ 1.0

Nation Investment, EFA, 0.5

Taiwan, EWT 1.7

South Korea, EWY 1.5

Sweden, EWD 1.5

Emerging Markets EEM, 2.0

Turkey, TUR 4.7

Thailand, THD 4.6

Philippines, EPHE 2.2

Mexico, EWW 2.4

Argentina, ARGT, 2.8 New High, led by BBVA, BFR, GGAL

Egypt, EGPT 1.9 New High

Eurozone, EZU, 1.2 led by Life Insurance Company, ING,

Italy, EWI 2.5 New High

Greece, GREK 2.1 New High

Spain, EWP 1.6 New High

Netherlands, EWN 1.2

Finland, EFNL 1.2

Credit traded lower as the Interest Rate on the US Ten Year Note, ^TNX trade higher to close at 2.65%

Aggregate Credit, AGG -.25

High Yield Municipal Bonds, HYD -1.0

Zeroes, ZROZ -0.7

30 Year US Treasuries, EDV -0.7

Ten Year Government Notes, TLT -0.6

Emerging Market Bonds, EMB -0.6

Long Duration Corporate Treasuries, BLV -0.6

Fiat money died Friday September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower, as Jesus Christ is operating in dispensation, as presented by the Apostle Paul in Ephesians 1:10, that is in administrative oversight of all things economic and political, and has pivoted the world out of liberalism and into authoritarianism, and as such the stock market has turned from bull to bear; those ETF sectors which rallied over the last year and countries which rallied from late June 2013 to late September, 2013, seen in this Finviz Screener, will be trading lower from the Tuesday October 1, 2013 rally, on competitive currency devaluation and on the exhaustion of the world central banks’ monetary authority as investors come to greater realization that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

The late September 2013, S&P 500, $SPX, price of 1709, and SPY price of 172, reflects an Elliott Wave 5 High. Thus the October 1, 2013, rally marked the short selling opportunity of a lifetime, as in a bull market one buys into dips, but in a bear market, one sells into pips. Of note Sam Jones and Arash Massoudi of Financial Times report Hedge funds’ bets on falling share prices have dropped to their lowest level in years as traders predict an extended bull run for equities over the coming months. According to data from Markit, the overall value of short positions on European shares has dropped to $133bn, the lowest level since the data provider began monitoring in 2006. In the US too, short positions are touching record lows. Just 2.4% of S&P 500 shares are on loan to short sellers.

When fiat money died Friday September 20, 2013, with the trade lower in World Stocks, VT, Major World Currencies, DBV, and Emerging Market Economies, CEW, a new form of money rose to govern mankind’s economic transactions, that being diktat money.

Thursday, October 3, 2013, was a bearish day, as ETF Daily News reports Outer limits of monetary policy and inflation and the Finviz Chart of the Market OFF ETN, OFF, rose, and the Yahoo Finance Chart of Volatility, ^VIX, also rose, stimulating Volatility ETFs, TVIX,VIXY,VIXM, higher.  The Great Bear Market that commenced Friday September 20, 2013, recommenced Thursday, October 3, 2013, as is seen in the 200% Bear Market ETFS, such as BIS, FXP, SQQQ, SDD, SSG, trading higher.

The chart of the S&P 500, $SPX, seen here in Chart Gazer chart, shows a 0.9% close lower at 1,697; its 50 day moving average.

Nations trading lower included

Indonesia, IDX,

Mexico, EWW

Philippines, EPHE

Turkey, TUR

Brazil, EWZ, and Brazil Small Caps, EWZS

Sectors trading lower included

Inverse Volatility, XIV

Solar, TAN

Internet Retail, FDN

Nasdaq Internet, PNQI

Biotechnology, IBB

Homebuilding, ITB

US Infrastructure, PKB

Media, PBS

Design Build, FLM

Small Cap Pure Value, RZV

Aerospace, IBB

Small Cap Industrials, PSCI

Industrials, XLI

Paper Producers, WOOD

Automobiles, CARZ

Steel, SLX

IPOS, FPX

Consumer Discretionary, IYC

Retail, XRT

Yield Bearing Sectors trading lower included

Utilities, XLU

Global Real Estate, DRW

Real Estate, IYR

Leveraged Buyouts, PSP

Of note, Global Consumer Staples, KXI, seen in this Finviz Screener, which includes TSN, PG, KRFT, MDLZ, CAG, and GIS, is a loss leading sector, since September 20, 2013, as is seen in their combined ongoing Yahoo Finance Chart.

The decline in the price of Gold, $GOLD, since late August 2013, is a buying opportunity, as the Gold ETF, GLD, is in an Elliott Wave 3 Up, from its early July 2013 bottom of 117.5, as is seen its Weekly Finviz Chart. The Elliott Wave 3 Ups, are the most dramatic of all economic waves, and create the bulk of wealth gains, of all of the ascending five waves

On Thursday, October 3, 2013, Spot Gold, $GOLD, closed at $1,316, with support lower at $1,300 and a strong floor at $1,275. The chart of the Gold ETF, GLD, rose slightly, to the edge of a massive consolidation triangle, to close at 127, from which it will either break out, or break lower. Either way, it is wise to Dollar Cost Average, an investment in the purchase of gold bullion, as in the age of authoritarianism, the possession of gold and diktat, will be the two forms of sovereign and sustainable wealth.

On Thursday, October 3, 2013, the chart of the Euro, FXE, shows a close at 134.82; likely it’s rally high. And the chart of the Yen, FXY, shows a close at 100.54; with room to rally higher.

The Yahoo Finance chart of the EUR/JPY, and the Google Finance Chart of the EUR/JPY, and the Forex Trading chart of the EUR/JPY, and FXStreet chart of the EUR/JPY, show a close at 132.45 on October 3, 2013; from which a trade lower, will soon propel Eurozone Stocks, EZU, and European Financials, EUFN, as well as World Stocks, VT, lower, as The Great Bear Market of all time commenced Friday, September 20, 2013, and envigorated Thursday, October 3, 2013.

Jesus Christ, operating in Dispensation, that is in administration of all things economic and political, as presented by the Apostle Paul in Ephesians 1:10, completed liberalism with a burst of credit in the No Taper Rally, and a rally in currency carry trade investing, followed by a trade lower in World Stocks, VT, Nation Investment, EFA, and Global Industrial Producers, FXR, and US Stocks,VTI, such as the S&P 500, to which Jack Chan of JC’s Buy and Sell Signals, gave his Sell Signal to the S&P 500, SPY, during the week ending Friday, October 4, 2013.

       

On Friday, October 4, 2013, currency traders took the Japanese Yen, FXY, slightly lower to a new weekly rally high, at 100.30, its dark filled candlestick suggests that the rally in the Yen, is at its zenith. And the Euro, FXE, even more slightly lower, to a new weekly rally high of 134.12, forcing the EUR/JPY, to lower to close the week lower at 132.04, yet Eurozone Stocks, EZU, rose to close near their all time high.

While Resorts and Casinos, BJK, International Telecom, IST, IPOs, FPX, Small Cap Energy, PSCE, and Energy Production, XOP, traded to a new rally high, monetization of debt, has finally turned money good investments bad.  Investments in Risk Assets, such as Small Cap Value Socks, RZV, has ended, as confirmed the Market Off ETN, OFF, and Volatility, XVZ, trading higher this month of October 2013.  The interventionist policies of the world central banks no longer provide investment stimulus in Global Industrial Producers, FXR, as leaders such LPL, IP, WHR, MHK, PHG, ERIC, VPRT, ABB, ENR,  ITW, ROK, MMM, FLS, SNA, LECO, SI, GM, GE, and BA, are trading lower. Jesus Christ acting in the Economy of God, Ephesians, 1:10, has ended the Fed; He did what Ron Paul could not do.

Yes, the Fed be dead. Charles Hugh-Smith of OfTwoMinds blog, writes in Zero Hedge, The Fed Bubble Era Is Over This is seen in the Too Big To Fail Banks, RWW, trading lower from their rally highs. And Asset Managers such as BlackRock, BLK, and Eaton Vance, EV, that coined liberalism’s wealth, are trading lower as well.  Now under authoritarianism, the policies of nannycrats and technocrats, working in schemes of regional integration, will underwrite economic activity.

Debt deflation, specifically competitive currency devaluation, has commenced, terminating Nation Investment, EFA, and Small Cap Nation Investment, IFSM, and Emerging Market Investment, EEM, and liberalism’s fiat wealth, VT. The ongoing destruction of fiat money can be followed via the trade lower in Stock ETFs, seen in this Finviz Screener, and the Currency ETFs, seen in this Finviz Screener

A falling EUR/JPY, has turned the Swedish Krona, FXS, lower, taking Sweden, EWD, lower; and has turned the Swiss Franc, FXF, lower, taking Switzerland, EWL, lower.

A falling British Pound Sterling, FXB, has turned the UK, EWU, and UK Small Caps, EWUS, lower.

The Chinese Yuan, CYB, popped higher, suggesting that it can go still higher.

The Indian Rupe, ICN, rose to a new rally high, taking India, INP, SCIN, higher,  Yet its banks, IBN, and HDB, while rising today, are India’s dead weight. In similar fashion Mexico’s BSMX, is Mexico’s, EWW, dead weight.

The rising Japanese, Yen, FXY, now at strong resistance, has turned Far East Financials, FEFN, such as SMFG, MFG, MTU, and IX, and Japan, EWJ, and its exporters, such as SNE, CAJ, KYO, HMC, and NJ, as well as Japan Small Caps, JSC, such as MKTAY, lower; the Nikkei, NKY, lost 2.8% the week ending October 4, 2013.

In perverse way, the National Bank of Greece, NBG, rose taking Greece, GREK, to a new rally high. Italy, EWI, and Spain, EWP, rose to a new rally high as well, while Ireland, EIRL, Netherlands, EWN, Germany, EWG, and Finland, EFNL, have peaked. Reuters reports Greece’s Piraeus And NBG To Set Up Bad Banks As Bad Loans Soar.

Liberalism’s credit is at its zenith as World Treasury Bonds, BWX, and International Corporate Bonds, PICB, stand at their rally high, while Emerging Market Bonds, EMB, and US Treasuries, TLT, have sold off.  The trade lower in Junk Bonds, JNK, and Ultra Junk Bonds, UJB, as well as the trade lower in Convertible Securities, CWB, reflects the beginning of the end of liberalism’s credit. Of note Credit Providers, such as American Express, AXP, seen in this Finviz Screener, are trading lower.

The strong trade lower in the US Dollar, $USD, seen in the chart of its 200% ETF, UUP, has finally put the nail in the coffin of the Milton Friedman Free To Choose, Banker Regime.  Major World Currencies, DBV, and Emerging Market Currencies, CEW, are no longer floating, they are sinking. The US Dollar no longer serves as the world’s reserve international currency, and as a result World Real Estate Excluding the US, DRW, and Real Estate, IYR, are trading lower in value. The Chinese Renminbi will serve as a regional currency for the Association of Southeast Asian Nations, ASEAN, trade bloc. Trust in the diktat of regional alliances will be the basis for regional integration and economic sustainability in the age of authoritarianism.

The Chinese Money Report provides the WSJ report China for the first time joined the ranks of the most-traded international currencies, underscoring the rise of the world’s second largest economy

and the growth of the global foreign exchange market. The Chinese Yuan vaulted to ninth in the Bank for International Settlements’ latest report on foreign exchange turnover, surpassing the Swedish Krona and New Zealand Dollar, among other widely used currencies.

Trading in the Chinese currency, also known as the renminbi, has more than tripled over the past three years, to $120 billion a day in 2013, the BIS said, referencing survey data from April.  Daily U.S. Dollar trading in 2013 has averaged $4.65 trillion. Yuan gains highlight China’s ambitions to play a larger role in a market long dominated by the dollar and, to a lesser extent, the Euro.  Daily global currency flows have risen more than 30% in three years. The Yuan ranked 17th in the previous BIS survey, in 2010.  The shift also highlights the international nature of the manufacturing supply chain and the flexibility U.S. based firms can gain by using Yuan.

2)  … John The Revelator, at the age of 90, while in exile on the Isle of Patmos, wrote the details of a dream given to him by angels, which foretells that regional governance and totalitarian collectivism will arise out of waves of sovereign and banking insolvency in the Mediterranean Sea nations of Portugal, Italy, Greece and Spain.

Inasmuch as the sovereignty of nation states is failing, on the collapse of fiat money, beginning with the Emerging Market Currencies, CEW, and Emerging Market Bonds, EMB, nannycrats will increasingly meet in summits and work groups, to renounce national sovereignty, and to establish regional sovereignty, where monetary, fiscal, and economic policies will be directed by statist public private partnerships of banks, businesses, labor organizations and governments, all acting to establish regional integration for the purpose regional security, stability and sustainability.

The IMF is showing the way forward, as the centerpiece statement of its position paper More Fiscal Integration to Boost Euro Area Resilience, dated September 25, 2013, calls for better oversight of national policies and enforcement of rules: “Going forward, reinstating fiscal discipline and reviving market discipline may require stronger involvement of the center in national fiscal decisions.”

Peter Schwarz of WSWS reports The Return Of The Euro Crisis. In the euro zone, the average sovereign debt has risen from 88 to 92 percent of gross domestic product (GDP) in just one year. Despite deep cuts that have left over half of the country’s youth out of work, Spain had a budget deficit of 10.2 percent of GDP last year, Greece of 10, Ireland of 8.3, and Portugal of 6.4 percent. France also will not meet the 3 percent limit demanded by the EU; its budget deficit is expected to exceed 4 percent.

After the failure of the no-confidence vote against Italian Prime Minister Enrico Letta, the financial press called for more social cuts. Letta “now has the upper hand,” wrote the Financial Times. He must re-establish the country’s competitiveness “by cutting the high taxes on labor and paying for it by slashing public spending.”

I relate that out of a soon coming Financial Apocalypse, that is a credit bust, and global financial system breakdown, foretold in Bible prophecy of Revelation 13:3-4, a One Euro Government will rise to provide order; it will be a United States of Europe, with a great democratic deficit.

WSWS reports on German Unity Day, German President Joachim Gauck Calls For A Stronger German Role In World Politics And In The Euro Crisis. “The question is bluntly posed: does our commitment reflect the importance of our country,” he said.

The periphery nations, will exist as hollow moons revolving about planet Brussels and planet Berlin. While Greeks cannot be Germans, all will be living as one, in common debt servitude to centralized task masters, such as Jenz Weidmann, President of the Bundesbank, and Viviane Reding,   European Commissioner for Justice, Fundamental Rights and Citizenship, as they direct a Eurozone Fiscal Union. She is seen in Facebook Meeting with Pietro De Matteis, co-President of the European Federalist Party; and is seen in Youtube Video Address for a Federal Europe.  Of note The Express UK recently reported Fury Erupted Over A Fresh Brussels Plot To Transform The EU Into A Federal Superstate. Justice commissioner ­Viviane Reding, a European Federalist, communicated the EU should have powers to impose human rights rulings. Her masterplan includes a vision of the European Commission as a “quasi-judicial authority” alongside an EU “justice minister” and powers for Europe’s courts to impose rulings, overriding national governments.

Liberalism featured trust in the world central bankers for investment gain. Now in authoritarianism, specifically out of waves of economic and political turmoil in the Mediterranean Sea nation states of Portugal, Italy, Greece, and Spain, people will come to trust in the word, will, and way of sovereign regional leaders, that is statist nannycrats, for regional security, stability, and sustainability, as communicated in bible prophecy of Revelation 13:3-4.

Doug Noland of Prudent Bear frequently penned liberalism as the age of wildcat finance; an epoch where bankers of all types fiercely strived to outdo one another to generate the greatest investment results, and where Ben Bernanke fathered credit easing.

But now with Jesus Christ, operating in dispensation, that is the administration of all things economic and political, as presented in Ephesians 1:10, the world has pivoted from liberalism to authoritarianism, where Angela Merkel fathered debt servitude with Greek Bailouts I, and II, and where she in calling for More Europe, laid the groundwork for a soon coming One Euro Government.

Authoritarianism is the age of wildcat governance, where leaders bite, rip and tear one another apart, in their struggle to become top dog leader; these will increasingly rule regionally, in diktat.

Peter Schwarz of WSWS reports on the emergence of wildcat goverance and its diktat in article Italian Government Survives Confidence Vote. When it became clear that Letta would survive the confidence vote, Berlusconi backed down. On Wednesday, he called for support for the prime minister and voted in favor of the government. As a result, far from being resolved, the political crisis has merely been postponed.

In the media, the conflict between Berlusconi and Letta is invariably portrayed as pitting an egomaniac who pursues his own interests against a selfless premier who puts the interests of the country first. In reality, behind all the twists and turns there is the attempt to establish a government that is stable enough to enforce hitherto unimaginable social attacks against the Italian working class.

Letta is a Christian Democrat who owes his political rise to support from the successor organization of the Italian Communist Party. He is currently regarded by both the European and Italian bourgeoisie as best suited for the task of imposing new austerity measures. This is why he enjoys the full support of all European governments and the European Union, and why a wing of Berlusconi’s PdL has now turned against its mentor and lined up behind Letta.

When Berlusconi withdrew his support from the government, Italian share prices plummeted and interest rates on government bonds soared. On Tuesday, when it appeared increasingly likely that Letta would obtain a majority, the trend on the stock markets reversed. The rates charged for Italian government bonds fell sharply and the Milan stock exchange rose by 3.1 percent. Ironically, the share of Berlusconi’s Mediaset group also rose by 6 percent.

In his speech to the Senate on Wednesday, Letta tried to win support by promising to reduce taxes, cut public spending and reform political institutions to ensure stable governance.

For his part, Berlusconi justified his support by citing Letta’s commitment to cut taxes, initiate reforms of the judiciary and particularly to reduce the cost of labour.

The savings and labor market reforms Letta proposes are huge and will reduce the working population to a standard of living comparable to that at the beginning of last century—a period of bitter poverty recorded in many notable literary works.

Italy is currently in a deep recession. Industrial production has fallen by a quarter since 2007, and GDP will shrink this year by 2 percent. The official unemployment rate is 12 percent, and among young people, a massive 40 percent. The national debt is 135 percent of GDP and rising. To reverse this trend, Letta plans to slash billions in social spending.

Rather than constituting a “historic day for Italian democracy”, as Letta claimed in his speech to the Senate, Wednesday’s confidence vote demonstrates a closing of ranks within the ruling class in order to undertake a fresh assault on the working class.

The Johannes Stern WSWS report German President Gauck Calls For Aggressive Foreign Policy is of timely importance as Bible prophecy foretells of the rise of a Eurozone Ruler, that is the Sovereign, seen in Revelation 13:5-10, to be accompanied in his rise to power by a Banker, the Seignior, presented in Revelation 13:11-18, who will call people to worship him.  The European Ruler’s power will come through his adept working in regional framework agreements of diktat, and will be so great, that this one described as The Little Horn, one of seemingly little authority, will set his attentions on The Glorious Land, Daniel 8:1-27, and as the propheced Prince who is to come, will provide a Middle East Peace Plan, and establish a One World Government, and One World Religion, with his global headquarters in Jerusalem, Daniel 9:25. This individual is described as the Son of Perdition, that is the Son of Destruction, a truly lawless individual, 2 Thessalonians 2: 2-4. And he is described as the Willful King in Daniel 11:36-45. The Apostle Paul relates that the coming of the Lawless One will be by the activity of Satan, 2 Thessalonians 2:9, and the Apostle stresses he will perform great signs and wonders, that will deceive many people, 2 Thessalonians 2:8.  This individual is one who takes the place of and serves as a substitute for Jesus Christ, 1 John 2:18-22. He is the Prince of the Covenant, that is the Middle East Peace Pact. After the league is made with him, he will act deceitfully, as he will arise and become strong with a small number of people, having usurped the high priestly office of Israel for power and gain, Daniel 11:22-23.  In the middle of the week, that is at the 3 and 1/2 year mark of his rule in Jerusalem, he will bring an end to sacrifice and offering, Daniel 9:27, and impose emperor worship from all of earth’s inhabitants and impose the Charagma, 666, money system, Revelation 13:18.

Those Things Which Much Shortly Come to Pass Will Unleash A New Sovereignty And A New Seigniorage As A Sovereign Encounter With Jesus Christ Forces Stocks And Currencies To Trade Lower In Value

October 4, 2013

Financial Market Report for the week ending September 27, 2013

1) … Those things which must shortly come to pass will unleash a new sovereignty and a new seigniorage.

Friday, September 20, 2013, was liberalism’s day of investment instability that marked an inflection point that pivoted the world from the paradigm of liberalism into the paradigm of authoritarianism, and from a moral hazard based prosperity into a debt servitude based austerity. With the financial markets turning from risk-on to risk-off, as indicated by the Market Off ETN, OFF, trading higher, and  the stock market turne from bull to bear.

Currency Carry Trades unwound worldwide with the Japanese Yen, FXY, trading higher and individual currencies such as the India Rupe, ICN, and the Euro, FXE, trading lower. Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, causing investors to derisk and deleverage out of World Stocks, VT, and Global Industrial Producers, FXR, such as BA, UTX, DOW, EMR, GE, ROK, F, GM, MT, CRH, BUD, SAP, CNH, COV, CRH, MHK, HON, MMM.

Action Forex chart report shows the EUR/JPY closed at 134.54, standing at the middle of a broadening top pattern, that goes back to January 2010; it’s as Street Authority relates, when you see the broadening too, the market will eventually drop.  Yahoo Finance chart report showing the EUR/JPY down from its Wednesday September 18, 2013, high of 134.726, on Wednesday September 18, 2013, evidences the zenith of carry trade investing in the business cycle.

With Jesus Christ at the helm of the Economy of God, Ephesians 1:10, World Stocks, VT, and Nation Investment, EFA, traded lower, on Friday September 20, 2013, from the climax of the No Taper Rally,with the Emerging Markets, EEM, and Asia Excluding Japan, EPP, leading, the way lower. South Africa, India, INP, Thailand, THD, The Philippines, EPHE, Indonesia, IDX, Malaysia, EWM, Turkey, TUR, and Chile, ECH, traded lower, on the the exhaustion of the US Fed’s monetary policies of easing, as the provision of QEternity marked the crossing of the Rubicon of sound monetary policy, and destabilized global economics pivoting the world from liberalism’s banker regime of democratic nation states into authoritarianism’s beast regime of regional governance and totalitarian collectivism.

The 1.3% rise seen in the weekly chart of the S&P 500, $SPX, closing at 1709, reflects an Elliott Wave 5 High.  The chart of $NYMO, shows there is as sudden and severe loss of breadth momentum (an important red flag) is taking place, communicating that one should flee to the exit doors, as the stock market is moving from bull to bear.

India Banks, EPI, such as IBN and HDB, led India, INP, and the Emerging Market Financials, EMFN, lower.

The National Bank of Greece, NBG, Ireland’s IRE, and Germany’s DB, led Greece, GREK, Ireland, EIRL, and the European Financials, EUFN, lower.

China’s Bank, SHG, and China Financials, CHIX, led China, YAO, and Far East Financials, FEFN, lower. The Finviz chart of Catalog and Mail Order Company, DANG, shows a massive broadening top pattern, with rise to strong resistance at 9.84.  It’s as Street Authority relates When you see the broadening top, the market will eventually drop.

Interest Rate Sensitive Stocks, that is Leveraged Buyouts, PSP, Home Builders, ITB, Utilities, XLU, Global Utilities, DBU, Real Estate, IYR, and Global Real Estate, DRW, traded lower.

Sectors trading lower included Aerospace, PPA, Paper Producers, WOOD, and Automobiles, CARZ. And Metal Manufacturing, XME, was led lower by Coal Miners, KOL, Industrial Miners, PICK, and Steel Producers, SLX. And Gold, GLD, and Silver, SLV, traded lower, forcing Junior Gold Mines, GDXJ, Gold Miners, GDX, Junior Silver Miners, SILJ, and Silver Miners, SIL, lower.

Aggregate Credit, AGG, traded unchanged, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to close the week at 2.73%, down sharply from its recent high near 3.0%.

Financial Times Lexicon writes of Bubblecovery. A bubblecovery is a term coined by financial blogger Jesse Colombo to describe what he calls a bubble-driven economic recovery spurred by cheap credit. He says the cheap credit has a tendency to flow into temporary growth-generating speculative endeavours.

JP of The Capital Spectator writes The evidence is compelling for arguing that the latest profile of economic activity continues to suggest that business cycle risk is low.

But I contend, that both the fiat asset inflation and economic expansion part of the business cycle ended Friday September 20, 2013, with Aggregate Credit, AGG, having fallen strongly in value since May 2013, and now with the weekly jobless claims report heralding the reality that the economy is failing to produce new jobs, as Andrew Klips reports in Equities.com reports. In August, the U.S. only added 169,000 new jobs and June and July figures underwent sharp revisions, including July’s figure plunging to only 104,000 new jobs. The unemployment rate ticked down to 7.3 percent, but only because more people gave up actively seeking employment.

The 38 ETFs seen in this Finviz Screener, exemplify the financial assets that have been fueled by Bubblcovery, that is by stimulus of the US Federal Reserve’s QE monetary policy, and are poised to fall strongly lower on the exhaustion of the US Fed’s and world central bank’s monetary authority, that is as bond vigilantes, begin calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.73%, and currency traders once again, begin selling Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower; these are XIV, FDN, CARZ, PBS, IBB, RZV, PSCI, FPX, IAI, XTN, SMH, XRT, PJP, PSP, TAN, RXI, FLM, EIRL, WOOD, EUFN, RWW, FXR, BJK, PBJ, EFNL, YAO, PPA, PNQI, EZA, KROO, ARGT, EWY, GNW. The short selling opportunity of a lifetime has arrived, and these ETFs can serve as the basis of a short selling portfolio, as well as a metric to follow the entrance into Kondratieff Winter, the very last season of the business cycle. Wiley investors went long these fiat assets, lived risk free on a moral hazard based rally, to experience tremendous gains; but now it’s as Mamta Badkar of Business Insider writes, All Hell Is Going To Break Loose, Fleckenstein Says.

Asset Managers such as Blackrock, BLK, coined the final swell of Liberalism’s wealth with QEternity; since April 2009 the Keynesian and Monetarist money printing policies of the US Federal Reserve, together with carry trade financing have inflated the Sector ETFs from this Finviz Screener as follows below.

The business cycle is now showing nascent signs of completion, with the weekly jobless report indicating that the economy is failing to provide new jobs, and the PMI is in downturn, and that an investment bubble is apparent … presenting both short selling opportunities, as well as the opportunity for investing in physical possession of gold bullion.

Fiat money died Friday September 20, 2013, with World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower as Jesus Christ is operating in dispensation, presented by the Apostle Paul in Ephesians 1:10, that is in administrative oversight of all things economic and political, and has pivoted the world out of liberalism and into authoritarianism, and as such the stock market is turning from bull to bear; those ETF sectors which rallied over the last year and countries which rallied from late June 2013 to late September, 2013, seen in this Finviz Screener, will be trading lower on competitive currency devaluation and on the exhaustion of the world central banks’ monetary authority as investors come to greater realization that the US Fed’s monetary policies have crossed the Rubicon of sound monetary policy, and have made “money good” investments bad.

Please consider Corollary #8 from the Dispensation Economics Manifest. The No Taper Rally of September 18, 2013, in World Stocks, Major World Currencies, DBV, and Emerging Market Currencies, was Liberalism’s peak event, which terminated the Creature Jekyll Island and birthed the Beast Regime of Revelation 13:1-4. and which pivoted the world from a policy of investment choice …  consisting of credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, currency carry trade investing, securitization of debt,  dollarization, financialization of stocks and ETFs, such as corporate bonds which convert into stocks, all of which created capital for corporations to operate and revenue for governments to operate …  to a policy of diktat … consisting of debt servitude schemes, such as, regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability.

The gains seen in the following ETFs over the last year, are over, through, finished, and done.

Internet Retail, FDN, 40%

Automobiles, CARZ, 56%

Media, PBS, 39%

Biotechnology, IBB, 45%

Small Cap Pure Value, RZV, 33%

Small Cap Industrial, PSCI, 35%

IPOs, FPX, 42%

Stock Brokers, IAI, 46%

Transportation, XTN, 48%

Semiconductors, SMH, 26%

Retail, XRT, 29%

Pharmaceuticals, PJP, 35%

Leveraged Buyouts, PSP, 32%

Solar, TAN, 87%; of note this ETF, rose 1.1% today, and ReneSola, SOL, traded strongly lower.

Global Consumer Discretionary, RXI, 33%

Design Build, FLM, 22%

Paper Producers, WOOD, 24%

Too Big To Fail Banks, RWW, 35%

Global Industrial Producers, FXR, 36%

Resorts and Casinos, BJK, 44%,

Food and Beverage, PBJ, 28%

Aerospace, PPA, 40%

Nasdaq Internet, PNQI, 45%

The Keystone Speculator posts VIX Volatility Daily Chart  Projection is for VIX to move higher in the days and weeks ahead, and, considering the CR deadline is now only 6 days away, it is reasonable to expect fear to increase and volatility to rise. I comment look for Volatility, XVZ, as well as TVIX, VIXY, VIXM, seen in this Finviz Screener to soar.

Michael Snyder of The Economic Collapse blog, asks in ZeroHedge Are You Ready For Yellenomics?  Are you ready for Janet Yellen? Wall Street wants her, the mainstream media wants her and it appears that her confirmation would be a slam dunk. She would be the first woman ever to chair the Federal Reserve, and her philosophy is that a little bit of inflation is actually good for an economy. She was reportedly the architect for many of the unprecedented monetary decisions that Ben Bernanke made during his tenure, and that has many on Wall Street and in the media very excited. Noting that we “already know that Yellen is on board with Bernanke’s easy money policies”, CNN recently even went so far as to publish a rabidly pro-Yellen article with this stunning headline: “Dear Mr. President: Name Yellen now!

But after watching what a disaster Bernanke has been, do we really want more of the same? It doesn’t really matter whether she is a woman, a man, a giant lizard or a robot, the question is whether or not she is going to continue to take us down the path to ruin that Bernanke has taken us. As I have written about so many times, the Federal Reserve is at the very heart of our economic problems, and under Bernanke the Fed has created a mammoth financial bubble unlike anything that we have ever seen before. If Yellen keeps us going down that road, financial disaster is inevitable.

Sadly, Yellen is not a woman that believes in free markets. She had the following to say back in 1999

“Will capitalist economies operate at full employment in the absence of routine intervention?  Certainly not.”  Yellen believes that without the “routine intervention” of the central planners at the Fed, our economy will not produce satisfactory results. So if you thought that Bernanke was an “interventionist”, you haven’t seen anything yet.

In fact, according to Time Magazine, Yellen was continually urging Bernanke to do even more “to help stimulate the economy”. But as the most recent financial crisis proved, a good Fed chief needs to be willing to think outside the box to achieve its goals of low, steady inflation and full employment. This is exactly what Bernanke did, using the powers of his office to launch a massive bond-buying program aimed at lowering interest rates further down the yield curve and promising to keep short-term interest rates at near zero for years. Bernanke, however, didn’t launch these programs immediately. Behind the scenes, it was reportedly Yellen who was the most forceful advocate for the Fed doing more to help stimulate the economy. It is truly frightening to think that Yellen might turn out to be “Bernanke on steroids”. Let’s hope that she is not the choice.

The costs of healthcare are too big to pay for. So, the doctor can’t see you now, that’s right, rationing of doctors and services has commenced. Under President Obama’s Affordable Care Act, with a swell of people coming into the system with the dual mandate to cover preexisting conditions and the mandate to hold down premiums, health care providers and major insurers are sharply limiting the number of doctors and hospitals available to patients in the various states’ new health insurance markets opening Oct. 1, 2013.

Fox News reports Ohio Clinic Touted By Obama Slashes Budget Due To ObamaCare. An Ohio clinic that was touted by Obama while he was speaking on health care reform is now blaming ObamaCare after it was forced to cut $330 million from its budget. Fox 8 reports the Cleveland Clinic, which is the largest employer in Northeast Ohio with about 39,000 workers in the region, announced the cuts to its 2014 budget at a meeting Wednesday. A spokeswoman for the clinic tells Fox News the clinic is being forced to cut back to prepare for increased costs and decreased revenue under the health care reform law. These changes will include offering early retirement to approximately 3,000 employees, reducing operational costs, and then layoffs as needed.

Steve Midkiff writes of A Sovereign Encounter heralding “those things which must shortly come to pass” as presented in Revelation 1:1.

It is through Christ’s Sovereignty, and out of banking insolvency and sovereign insolvency of the Mediterranean Nation Sea States of Portugal, Italy, Greece and Spain, that is out of a Financial Apocalypse, a credit bust and financial system breakdown, that nannycrats will unleash Authoritarianism’s sovereignty of regional governance and totalitarian collectivism, as well as its seigniorage of diktat, as foretold in Revelation 13:1-4.

Liberalism was defined by what Doug Noland terms wildcat finance, where bankers of all types fiercely outdo one another to generate the greatest investment gains, and where Ben Bernanke fathered credit easing.

Authoritarianism, on the other hand, is defined by wildcat governance, where leaders bite, rip and tear one another apart in their struggle to become top dog leader, and where Angela Merkel fathered debt servitude with Greek Bailouts I, and II, and she  in calling for More Europe, laid the groundwork for a soon coming One Euro Government.

Of note, Katerina Selin and Christoph Dreir of WSWS writes Greek workers demonstrate against mass sackings, fascist violence. Protests were held in all major Greek cities Wednesday, September 18, 2013, against the austerity measures of the Greek government and the European Union.

The Globe and Mail of Toronto writes For Victorious Merkel, Little Incentive To Change Course On Austerity and Reuters reports Merkel Romps To Victory But Faces Tough Coalition Choices and an

article in Greek Ta Nea carries the headline, Europe becomes Merkeland after the triumph of the Queen of austerity.  WSWS writes Why Merkel Won The German Elections.

Charles Hugh-Smith of the OfTwoMinds blog, posts in Zero Hedge The Big-Picture Economy, Part 3: Scarcity, Risk And Debt. Manipulating rates to near-zero and opening the credit floodgates has incentivized everything sound economic policy avoids: moral hazard, speculation, leverage and reliance on marginal credit expansion for profits and “growth.” “Growth” that depends on manipulated interest rates and easy credit is a sand castle awaiting the rising tide; its destruction is assured.

Money as it has been known no longer exists. Fiat money died Friday September 18, 2013, with the trade lower in World Stocks, VT, Major World Currencies, DBV, and Emerging Market Economies, CEW.  Diktat money is rising it its place, as the sovereignty of nation states gives way, and nannycrats meet in summits and work group to renounce national sovereignty, and establish ever increasing regional sovereignty. Liberalism featured credit, and trust in the world central bankers. Another word for credit is trust. Now in authoritarianism, specifically out of waves of economic and political turmoil in the Mediterranean Sea nation states of Portugal, Italy, Greece, and Spain, people will come to trust in the word, will, and way of sovereign regional leaders, that is statist nannycrats, for regional security, stability, and sustainability, as communicated in bible prophecy of Revelation 13:3-4.

On Friday September 20, 2013, the National Bank of Greece, NBG, led both Greece, GREK, and the European Financials, EUFN, lower, as Roger Cohen of NY Times The perfect political storm for violent extremism has descended on Greece. As Kyriakos Mitsotakis, the minister responsible for the cuts, explained to me inside the besieged ministry, the message from the “troika” (the International Monetary Fund, the European Commission and the European Central Bank) is clear: “If you don’t do it, no more money!” Europe’s requirement is: Reform or else.

Greece, with an estimated $3.3 billion shortfall in its social security fund this year and a larger financing gap looming over the next two years, still needs money, if much less than before. More urgently, it needs international understanding. The combination of the demands of the troika (widely seen by Greeks as a Trojan horse for Germany) and the frustration evident outside the ministry, Soultos’s private sector has lost close to 1.5 million jobs as unemployment has reached 28 percent, is combustible.

Troika officials will visit Athens next week. If they make further demands for cuts in wages and pensions they could push Greece over the edge. Germany has not yet learned to play the benign superpower. It is time; and after the German election this Sunday there may be a little more wiggle room. Toughness toward Greece has played well in Germany but, as Mitsotakis put it: “The country has been stretched to its limits. This needs to be very, very clear.”

LuggageTag posts Greece Is Characterized By The 3Cs: Cronyism, Clientelism And Corruption. The pervasiveness of corruption at all levels of society, including the widespread and “honorable” practice of “fakelaki”, cash inside an envelope for the attainment of public services and personal favors; hence also the routine violation of civility norms and a culture of complacency that pervades public life.

Indeed, for decades, the dominant image that prevailed about Greeks among many northern Europeans and Americans was a nation of lazy, uncultured and irresponsible citizens, mustachioed men who spent all their time either inside or outside coffee houses, usually with a cigarette in one hand and a string of beads in the other, while the women worked in the fields. The contributions to world culture of the likes of Giorgos Seferis and Odysseus Elytis two Nobel Prize winners in Literature, Nikos Kazantzakis and Yannis Ritsos both nominated scores of times for the Nobel Prize in Literature, but rejected because of their communist beliefs, Angelos Sikelianos one of the most inspiring poets in modern Greek history, Maria Callas the greatest opera diva of last century, Dimitri Mitropoulos and Mikis Theodorakis two world class conductors and composers, respectively were reserved for conversations in polite society. According to the dominant impression, average Greeks lacked discipline and the capacity for self-reflection and were instinctively drawn to populist, charismatic political leaders who promised them bread, butter and honey in their everyday lives, a position not a job! in the public sector, and retirement after a couple of decades of working.

In recent times, this caricaturish image of the Greek national character has insidiously resurfaced in various non-Greek newspapers and magazines, with regard to the profile of the typical Greek public employee: fat, lazy, and unshaved, sitting behind a desk with stacks of papers in front of him and with a cigarette hanging out of his mouth. Which brings us back to the question of Greece’s current crisis. Is the nation’s political culture, the civil culture, responsible for the economic and social ills facing Greece today?

Probably to the surprise of those who still hold on to a caricaturish image of contemporary Greek culture, the majority of Greek citizens seem to be convinced that the political culture is indeed primarily responsible for the catastrophic crisis currently facing the nation – although it is uncertain to what extent they all understand, or accept, the idea of political culture as a reflection of the customs and mores of a society. For instance, while tax evasion has been traditionally a national sport for all social classes in Greece, almost everyone expects and demands that the state provide free services in all areas of public life, generous benefits to the unemployed and the pensioners, subsidies to small businesses and farmers, and so on and so forth. Likewise, people may speak of meritocracy, but family amoralism permeates every pore of the national life. As yet another example of distorted values shaping a nation’s culture, students with the overwhelming majority of faculty on their side want free access to university education and books free of charges, but no conditions placed upon academic progress and the completion of studies. Hence, students are not required to attend classes, may repeat course exams as many times as they like, and there are no limits to how many years they may remain enrolled in a university program. In sum, lots of rights, but no obligations.

For a nation that throughout its history has fought heroic battles for precious rights and liberties recall only Winston Churchill’s famous words, inspired by the Greek resistance to the Italian and German invasions of Greece in the course of World War II: “Hence we will not say that Greeks fight like heroes, but that heroes fight like Greeks!”, gaining rights and privileges but shedding obligations and social responsibilities developed, somehow, into something of a cultural movement in contemporary times in Greece. The roots of this trend can be traced to the immediate period following the re establishment of parliamentary democracy after seven years of a brutal dictatorship 1967-1973, but it takes off and becomes an institutionalized incentive system of behavior with the rise of PASOK Panhellenic Socialist Movement of the 1980s and the irresponsible populism of its leader Papandreou.

While populism, clientelism and cronyism were ever-present ingredients in modern Greek political life, under the pseudo-socialism of PASOK, they became constitutive of the party’s fundamental strategy: locking voters into long-term relationships based not on the delivery of public goods and a just social order, but on promises of targeted resource distribution to the party faithful. At least two generations of “leftist” voters were shaped and molded in the Papandreou/PASOK era, including the major syndicalist movement, the General Confederation of Greek Workers GSEE. Of course, the conservatives relied on the same unscrupulous tactics thus making it virtually impossible to judge which of the two parties was more immoral, corrupt and dangerous to the nation’s interests, but they did not have history on their side, let alone the fact that they were no match for Papandreou’s political canniness and personal magnetism.

Under PASOK, the public sector became a cash cow to be bled, not just milked, a practice the conservatives also did not shy away from on the few occasions they found themselves in power during the past 30 years. After all, it is far more difficult to change the culture of an organizational setting than to create a new one, especially if the parties involved are the main beneficiaries. Thus, for decades, socialists and conservatives alike were involved in various large-scale scandals centered on exploiting state resources to transfer wealth from the public to the private sector, to enrich themselves and to redistribute wealth from the bottom to the top. Corruption became so endemic that it was perceived as normal for public sector employees in Greece’s tax, urban development and municipal government offices to be bribed and even to confuse at times public finances with their personal finances. It was normal for hospital doctors to be recipients of cash gifts by a patient’s family members who were afraid that their loved one would not otherwise receive proper medical attention. It was normal for people to hold two, three and sometimes even four different paid appointments in the public sector. It was normal for already employed journalists to be simultaneously on the payroll of government ministers

The Team at The Institute for New Economic Thinking writes The Problem of Too Big to Fail Is Even Bigger Than Before 2008, Simon Johnson relates.

Benson te writes Essentially the UnTaper seem to have been designed to burn short sellers with particular focus on the bond vigilantes, where the latter may impact the balance sheets of the banking system.  Dramatic volatility from the May “taper talk” even compelled Fed chair Dr. Ben Bernanke to explicitly say “I don’t think the Fed can get interest rates up very much, because the economy is weak, inflation rates are low. If we were to tighten policy, the economy would tank” [16]. In other words, the taper option functioned as a face saving valve in case the rampaging bond vigilantes would force their hand. For me Dr. Bernanke’s calling of the Poker “taper” Bluff has been part of the tactic.

The bond vigilantes have gone beyond the Fed’s assumed control over them. And since the Fed construes that the rising yields has been built around the expectations of the Fed’s pullback on monetary accommodation, what has been seen a Fed “spook” for the mainstream may have really been a desperate ALL IN ante “surprise strike” gambit against the bond vigilantes. The UnTaper was the Pearl Harbor equivalent of Dr. Bernanke and company against the bond vigilantes.

The question now is if the actions in the yield curve have indeed been a function of perceived “tapering”. If yes, then given the extended UnTaper option now on the table, bond yields will come down and risk assets may continue to rise. But if not, or if yields continue to ascend in the coming days that may short circuit the risk ON environment, then this may force the FED to consider the nuclear option: bigger purchases.  With shrinking budget deficits, meaning lesser treasury issuance and with the FED now holding $1.678 trillion in ten year equivalents, or 31.89% as of August 30th total according to ZeroHedge [17], the Fed’s size in bond markets have been reducing availability of collateral. Reduced supply of treasuries, which function as vital components of banking reserves will only amplify volatility. The Fed’s policies are having far wider unintended effects on the bond markets. Should the Fed consider more purchases it may expand to cover other instruments. Quantitative Easing extrapolates to discoordination or the skewing of consumption and production activities which leads to massive misallocation of capital or “malinvestments”. QE also translates to grotesque mispricing of securities and maladjusted price levels in the economy benefiting the first recipients of credit expansion. Eventually such imbalances will be powerful enough to overwhelm whatever interventions made to prevent them from happening, specifically once real savings or capital has been depleted.

Austrian Ludwig von Mises warned in Interventionism An Economic Analysis [22] The boom cannot continue indefinitely. There are two alternatives. Either the banks continue the credit expansion without restriction and thus cause constantly mounting price increases and an ever-growing orgy of speculation, which, as in all other cases of unlimited inflation, ends in a “crack-up boom” and in a collapse of the money and credit system. Or the banks stop before this point is reached, voluntarily renounce further credit expansion and thus bring about the crisis. The depression follows in both instances.

Banks, that is the Too Big To Fail Banks, and the Regional Banks have been the engine of QE. Currently the Too Big To Fail Banks, RWW, are trading 2%, and the Regional Banks, KRE, are trading 7%, below their August 1, 2013, high, in stark contrast to the Large Cap Growth Stocks, JKE, which led the No Taper Rally as is seen in the combined Google Finance Chart of JKE, together with RWW, and KRE. The reason for the banks relatively strong decline is the large amount of US Treasury Based Excess Reserves, such as 10 Year US Government Bonds, TLT, residing at the Fed, which have lost a lot of value since early May, 2013, creating very much a deadweight loss for the banks. Banks certainly do not have any incentive to hold Excess Reserves other than loyalty to the Fed.

On Friday, September 20, 2013, the financial markets pivoted from risk-on to risk-off, as seen in the Market Off ETN, OFF, trading higher. The financial markets manifested an inflection point that marked the beginning of the end of financialization, which will come through a soon coming global credit bust and financial system breakdown, foretold in Revelation 13:3-4, whereby nannycrats will act to integrate banks of all types into government; these will be know as the government banks or gov banks for short, and in so doing there will be a great tidying up of the Banks Excess Reserves at the US Fed.

Along this line of thought James Brewer of WSWS writes Detroit’s emergency manager plans early payoff of top banks

Michael Snyder of The Economic Collapse Blog writes Too Big To Fail Is Now Bigger Than Ever Before. The too big to fail banks are now much, much larger than they were the last time they caused so much trouble. The six largest banks in the United States have gotten 37 percent larger over the past five years. Meanwhile, 1,400 smaller banks have disappeared from the banking industry during that time. What this means is that the health of JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley is more critical to the U.S. economy than ever before. If they were “too big to fail” back in 2008, then now they must be “too colossal to collapse”. Without these banks, we do not have an economy. The six largest banks control 67 percent of all U.S. banking assets, and Bank of America accounted for about a third of all business loans by itself last year. Our entire economy is based on credit, and these giant banks are at the very core of our system of credit. If these banks were to collapse, a brutal economic depression would be guaranteed. Unfortunately, as you will see later in this article, these banks did not learn anything from 2008 and are being exceedingly reckless. They are counting on the rest of us bailing them out if something goes wrong, but that might not happen next time around.

Yardeni posts Government Support Increasingly Boosts Incomes (excerpt) The big story here is that entitlements (“government social benefits to persons”) has soared from less than 5% of national income in the early 1950s to recent record highs around 17%. The federal and state governments are currently redistributing income at an annualized rate of almost $2.4 trillion, which slightly exceeds the sum of federal income and payroll taxes. In effect, every tax dollar collected from workers by the federal government is redistributed to entitlement beneficiaries.

Liberalism was characterized by clientelism, and in particular transfer payments to Social Security recipients in the form SSI Disability which for many is simply another name for welfare; many “live free” from work by claiming and being awarded SSDI, and SSI, for conditions such as chronic pain, anxiety, antisocial disorder, ADHD, Depression, Asperger Syndrome, PTSD, Bipolar Disorder, Depression, and Fibromyalgia, make it impossible for them to work.

Real Clear Markets posts America’s Growing Social Security Disability Problem. The latest Social Security Administration data document that Social Security Disability Insurance (SSDI) rolls reached a record high of 8.85 million in March 2013, an increase of 1.6 million or 21 percent since the start of the Great Recession.

This long running disability epidemic, which hit its pandemic stage in the aftermath of the 2007 recession, has almost nothing to do with a decline in the overall health of working age Americans or in the severity of their health-based impairments. Rather, it is primarily the consequence of fundamental flaws in the SSDI program and its administration which have increasingly made it a long term unemployment program rather than the last resort transfer program for those unable to work due to their health-based impairments that Congress intended it to be. These flaws become most evident during severe during economic downturns but will remain long after we recover from the Great Recession.

Most SSDI growth is driven by its incentive structure and the increasing difficulty of its administrators to determine disability (as discussed in my recent book, co-authored with Mary Daly, The Declining Work and Welfare of People with Disabilities (AEI Press, 2011) and in our point-counterpoint debate article in The Journal of Policy Analysis and Management).

The New American reports Record Number: 10.9 Million Americans Collecting Disability

And The New American reports Disability Recipients Admit Finding Employment Isn’t a Priority. The Examiner reported that many recipients were in a “general cycle of poverty”, a way of life wherein families break down, education efforts fail, and government dependency is virtually assured. The cycle is especially apparent when evaluating recipients who have little knowledge about their fathers.

For example, 30 percent of SSDI recipients are unsure of the highest year or grade their father finished in school, while 40 percent of SSI recipients answered the same; thirty-one percent of SSDI recipients noted that their father did not complete high school or receive a GED, while 26 percent of SSI recipients reported the same.

The number of people claiming disabilities has climbed upward since the recession began. Investor’s Business Daily noted in a 2012 report: “More workers joined the federal government’s disability program in June than got new jobs, according to two new government reports, a clear indicator of how bleak the nation’s jobs picture is after three full years of economic recovery.”

With an aging U.S. population, a weakened job market, and a relaxing of eligibility requirements for disability, fraud has undoubtedly played an integral role in the government’s rapidly expanding disability system. The U.S. Senate’s Permanent Subcommittee on Investigations reported last September that 25 percent of disability cases were granted benefits “without properly addressing insufficient, contradictory and incomplete evidence.”

According to a 2009 study by the Social Security Administration, recipients of federal disability checks acknowledge that finding a job is not a priority, with a startling majority making no effort to gain professional or educational skills to find employment. While the study was published years ago, it was just recently brought to light by the Washington Examiner, which released a lengthy report on the findings, including the fact that many recipients admit that pursuing opportunities to escape the disability rolls is not among their goals. Compiled from responses of 2,300 disability beneficiaries, the report noted that most recipients had not seen a doctor or received medical treatment for their condition within a year, even though medical issues are the basis for qualification of disability benefits. The Examiner inspected the results from the individuals surveyed and condensed the findings into a pool, which helped highlight the survey’s trends.

Unearned disability, or Supplemental Security Income (SSI), applies to individuals who have very limited income and assets, and who have petitioned to be classified as disabled. Earned disability, or Social Security Disability Insurance (SSDI), applies to individuals who were previously employed and have rendered at least some of their income into Social Security before becoming disabled. Approximately 11 million Americans are on the SSDI roll, while seven million Americans are receiving SSI benefits.

Whereas if recipients’ claims for disability are genuine one would expect both groups to give similar answers to questions about their levels of suffering, this was not the case. Recipients of government checks in the SSI program were found to have less bodily pain than recipients who paid into the system, according to the analysis, and they are typically uneducated, overweight, or were raised in broken homes.

SSDI – Earned Disability for those who paid into Social Security prior to applying for disability benefits.

SSI – Unearned Social Security disability benefits.

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

On Monday, US Stocks, VTI, such as US Infrastructure, PKB, Home Building, ITB, and Regional Banks, KRE, led World Stocks, VT, lower as Bloomberg reports Markit PMI Factory Index In US Fell To 52.8 in September From 53.1 providing more evidence that the business cycle has peaked and is turning lower. And Zero Hedge reports US PMI Misses Expectations To 3-month Lows. And Yahoo News reports U.S. Factory Activity Loses Momentum In September..

Sectors trading lower included Too Big To Fail Banks, RWW, Solar, TAN, Internet Retail, FDN, Networking IGN, and Biotechnology, IBB.  Yield bearing sectors trading lower included Global Utilities, DBU, and Global Real Estate, DRW. European Financials, EUFN, traded lower. Countries trading lower included Thailand, THD, and Indonesia, IDX. Gold Mines, GDX, and Silver Miners, SIL, traded lower, on a lower price of Gold, GLD, and Silver, SLV. The EUR/JPY closed lower at 133.31. MarketWatch reports JP Morgan, Bank of America, Citi, And Financials Drop On Fears Of Trading Decline.

Mike Mish Shedlock reports Europe Hooked On Easy Money Too: ECB President Draghi Threatens Another LTRO, Sings Praises OF Excess Liquidity. It’s liquidity full throttle in the Eurozone as well because Draghi Says ECB Will Offer More Long-Term Loans If Needed, Bloomberg reports. The largest global-coordinated financial gambit in history shows no real signs yet of slowing down.

September 20, 2013, was a pivotal day in global economic history from which there is now no return, despite what liquidity measures Mario Draghi might propose.  With Jesus Christ at the helm of the Economy of God, Ephesians 1:10, World Stocks, VT, and Nation Investment, EFA, traded lower, with the Emerging Markets, EEM, and Asia Excluding Japan, EPP, leading, the way lower. South Africa, India, INP, Thailand, THD, The Philippines, EPHE, Indonesia, IDX, Malaysia, EWM, Turkey, TUR, and Chile, ECH, traded lower, on the the exhaustion of the US Fed’s monetary policies of easing, as the provision of QEternity marked the crossing of the Rubicon of sound monetary policy, and destabilized global economics pivoting the world from liberalism’s banker regime of democratic nation states into authoritarianism’s beast regime of regional governance and totalitarian collectivism.

On Tuesday, Small Cap Energy, PSCE, and Energy Production, XOP, rose to new highs as Oil, USO, and Natural Gas, UNG, traded lower. Global Telecom, IST, rose to a new rally high with TI, and NOK, rising to new highs. Home Builders, ITB, US Infrastructure, PKB, Solar, TAN, and Internet Retail, FDN, bounced higher. Facebook, FB, Applied Material, AMAT, and Rite Aid, RAD, gapped open higher to new rally highs.  ASML Holding, ASML, Delta Airlines, DAL, General Motors, GM, Safeway, SWY, and Illinois Tool Works, ITS, traded higher.

Small Cap Pure Value, RZV, such as FNGN, NCI, III, CEB, NEWT, EXAM, III, MCS, RICK, STAN, ACXN, MEG, LOV, AHC, ASGN, ADUS, NICK, ECPG, WRLD, FTK, ODC, STMP, FICO, BYD, MOVE, CKEC, MDCA, NXST, FCFS, and DXPE, rallied to a new high, manifesting a questioning harami, as Large Cap Value, JKE, continued to trade lower from their rally high.

Software, IGV, traded lower. Investment Banker, JPM, traded strongly lower, inducing the Too Big To Fail Banks, RWW, to trade lower. Real Estate, IYR, traded lower.

Gold Miners, GDX, and Silver Miners, SIL, traded lower on a lower price of Gold, GLD, yet their chart patterns suggest a bottoming out.

The Vice Stocks, traded by Fidelity Mutual Fund VICEX, traded lower, communicating an end to leveraged speculative investing.

The Market Off ETN, OFF, rose as the US Dollar, $USD, traded slightly higher, as Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, led so by the Australian Dollar, FXA. The EUR/JPY closed lower at 133.05.

Greece, GREK, traded higher as Holly Ellyatt of CNBC reports Temperature rises in Athens amid 48-hour strike. Asia Excluding Japan, EPP, traded lower as Indonesia, IDX, IDXJ, Thailand, THD, the Philippines, EPHE, Malaysia, EWM, and New Zealand, ENZL, traded lower. China Financials, CHIX, led China, YAO, and Far East Financials, FEFN, lower. India, INP, Chile, ECH, Peru, EPU, and Turkey, TUR, traded lower;  all of which drove the Emerging Markets, EEM, and the BRICS, EEB, lower.

A see saw destruction of fiat wealth is underway, as Major World Currencies, DBV, Emerging Market Currencies, CEW, and World Stocks, VT, are trading lower, and Aggregate Credit, AGG, is trading higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.65%, from its recent high of almost 3.0%. Eurozone Debt, EU, traded higher on comments by Mario Draghi for ongoing ECB liquidity. Fiat wealth as it has been known, and the Milton Friedman Free To Choose Floating Currency Regime which generated that wealth be no more, as Jesus Christ is operating in the Economy of God, as presented by the Apostle Paul in Ephesians 1:10, pivoting the world out of liberalism and into authoritarianism. Liberalism was the era of investment choice based upon credit and carry trade investing. Authoritarianism is the era of diktat based upon debt servitude.

John Rubino references Forbes article China Corporates Not Making Debt Payments and highlights Credit Excesses In China. This article is even more apocalyptic than its title implies. To extract a few data points: China’s corporate debt has risen from 86% of GDP to 155% since 2008; “Net debt of the corporate sector was 30 times net earnings in 2012, up sharply from 10 times in 2011”; and “free cash flow is severely negative.” These are some serious trend reversals. Using IOUs to pay bills is exactly the same thing as borrowing the money, in the sense that it creates an obligation that eventually has to be satisfied with cash. So “acceptances” rising from 3% to 11% of GDP is a helluva jump in private sector debt. It’s not clear whether the analysts quoted above are counting this in their other totals.

Robert Wenzel of Economic Policy Journal Venezuela Orders Takeover of Toilet Paper Factory.  Price controls in action. Reuters reports Venezuelan state agency on Friday ordered the temporary takeover of a factory that produces toilet paper in what it called an effort to ensure consistent supplies after embarrassing shortages earlier this year. Critics of President Nicolas Maduro say the nagging shortages of products ranging from bathroom tissue to milk are a sign his socialist government’s rigid price and currency controls are failing. A national agency called Sundecop, which enforces price controls, said in a statement it would occupy one of the factories belonging to paper producer Manpa for 15 days, adding that National Guard troops would “safeguard” the facility. “The action in the producer of toilet paper, sanitary napkins and disposable diapers responds to the state’s obligation to ensure a steady supply of basic goods for the people,” Sundecop said, adding it had observed “the violation of the right” to access such products … Mr Wenzel comments Notice the use of National Guard troops. When price inflation heats up in the US, will price controls be implemented here? My greatest fear is that they will then be enforced by TSA and other DHS employees let loose on the land. Then you will know why you don’t want a surveillance state, even if “you have nothing to hide.” You will when you need to buy from a back market to survive.

Benson te writes Inflation and price controls are siblings. First government inflates, then they place the blame on the public for the ramifications of their actions, thus justifying price controls. Yet the consequence of this inflation price control feedback loop has been to create shortages. The toilet paper shortage in Venezuela is great example. The average Venezuelans seek titles to capital goods or proxies to real assets as haven from massive loss of purchasing power. As one would note, interventions breed interventions until the economy eventually collapses.

I comment that nannycrats, such as Sundecop, are now the economic leaders. Christ has been working and continues to work in dispensation, that is in the management plan of God, to complete and fulfill all things in every epoch, era and time period, as presented by the Apostle Paul in Ephesians 1:10. He is laboring to make diktat complete in the age of authoritarianism. Gone is free enterprise, it is simply an epitaph on the tombstone of the age of liberalism, as statism governs and is the legislator of economic value and is the legislator that shape one’s means and one’s ends. Authoritarianism features a new trust; liberalism featured trust in bankers, carry trade investing and credit, in particular nation state Treasury debt; but authoritarianism features trust in statist nannycrats, totalitarian collectivism, public private partnerships and debt servitude.

Reuters reports If You Live In Venezuela And Want To Fly Abroad, Get In Line. Flights are booked solid months in advance, not from a new interest in exotic destinations but because locals are profiting from a play on the nation’s tightly controlled currency market.

The airline scramble has added to shortages, power cuts and runaway prices as another symbol of the Byzantine economic challenges facing the new government of President Nicolas Maduro in the South American OPEC nation.

“It’s like you’re trapped here,” said travel agent Doris Gaal, telling a customer he would be better off taking a boat to a Caribbean island because the daily flights are fully booked. “It’s all because of these stupid dollars!”

After a decade of currency controls set up by late socialist leader Hugo Chavez in 2003, the disparity between the official and black-market rates for the local bolivar currency is higher than ever. Greenbacks now sell on the illegal market at about seven times the government price of 6.3 to the dollar.

There are strict limits on the availability of dollars at the 6.3 rate, but Venezuelans are cashing in on a special currency provision for travelers. With a valid airline ticket, Venezuelans may exchange up to $3,000 at the government rate.

Some are not even flying, leaving many planes half empty.

“It is possible to travel abroad for free due to this exchange rate magic,” said local economist Angel Garcia Banchs.

The profit is realized from an arbitrage process known locally as “el raspao,” or “the scrape.”

Credit cards are used abroad to get a cash advance — rather than buying merchandise. The dollars are then carried back into Venezuela and sold on the black market for some seven times the original exchange rate. The large profit margin easily absorbs the cost of flights and accommodation for a trip.”I’ve been able to buy new clothes and give some cash to all my closest family members!” said one delighted Venezuelan lady, just back from a trip to Europe. “It was really easy. There was a guy in a hotel room with 10 point-of-sale machines who swiped my card for $1,000 each day,” said a Venezuelan pensioner, also asking not to be named as he described his trip to a Caribbean island.

Some Venezuelans do not even bother leaving the country, but merely send their credit cards to friends overseas, who swipe the cards and send the cash back to Venezuela. “This is the reason many airlines are sending half-empty planes,” Ricardo Cusanno, head of a local tourism council, told Reuters, saying the government should cross-reference flight lists with those requesting foreign exchange to outwit the no-shows.

As a result of the high level of unused seats, some airlines are beginning to overbook at much higher rates than usual.

“Raspao” was now the “most dynamic sector” of the country’s economy, the story added.

The currency controls that Chavez implemented have exacerbated some of the very problems they were meant to address: inflation and capital flight from the country. The lack of dollars has left importers struggling to pay for basic items that range from toilet paper to bread and wine for church masses.

It is also fueling the highest price rises in the Americas, 45 percent in the last year. For critics of the government, the phenomenon of sold-out flights is a symbol of excessive interference and economic mismanagement during the last 14 years of socialist rule.

For Maduro and his team, it is symptomatic of unscrupulous and greedy capitalist opponents who are “sabotaging” Venezuela’s economy in order to sink him. Maduro recently set up a new telephone hotline, 0-800-SABOTAGE, for Venezuelans to report illegal economic activity.

Adding to the frenetic demand for plane tickets is the low cost of flights – when they are available – for those with hard currency that they have changed on the black market. This has turned Caracas into an informal hub for frequent fliers across the region. “People from all over Latin America come here to buy flights using black market money,” said Gaal, the travel agent. Given the high demand, at least one foreign airline is looking to expand in Venezuela.

Alexander Fangmann of WSWS writes Amid Extreme Inflation And Severe Shortages, Venezuela To Revamp Currency Laws Although the country’s severe problems result from global economic pressures along with deteriorating industry and infrastructure, Venezuelan President Nicolás Maduro has claimed they are the result of sabotage.

Bionic Mosquito, writes, “Gary North is far and away the expert when it comes to the intersection of economics and the Bible”  I ask, well what about me, theyenguy? I’m not being proud, but I believe that I run a close second, as I write on the Economy of God, continually, like day and night, and am here now to relate that Money as it has been known no longer exists. Fiat money died Friday September 18, 2013, with the trade lower in World Stocks, VT, Major World Currencies, DBV, and Emerging Market Economies, CEW.  Diktat Money is rising it its place, as the sovereignty of nation states gives way, and nannycrats meet in summits and in work groups to renounce national sovereignty, and establish ever increasing regional sovereignty. Liberalism featured credit, and trust in the world central bankers. Another word for credit is trust. Now in authoritarianism, specifically out of waves of economic and political turmoil in the Mediterranean Sea nation states of Portugal, Italy, Greece, and Spain, people will come to trust in the word, will, and way of statist regional leaders for regional security, stability, and sustainability, as communicated in Revelation 13:3-4.

Bionic Mosquito continues “The problem isn’t big business, the problem is the political entrepreneur; the idol isn’t money, it is central planning serving those who fail at serving customers. This is what the Pope should attack…humbly offered, of course.”  I respond that the problem is that people fail to comprehend the Bible doctrines of

1) Dispensation, Ephesians 1:10, specifically that Jesus Christ is acting in the household administration of God to bring about the completion and fulfillment of every age, epoch, era and time frame.

2) The Ordination of Empires, Daniel, 2:25-45, specifically The British Empire and the US Dollar Hegemonic Empire, where the UK becomes a global power as a multitude of nations, and the US follows it to be the leading world power, as promised to Abraham in Genesis 12:2, Genesis 17:4-6, and Genesis 48:16, immediately before these loose their global domination to a Ten Kingdom of Regional Governance, comprised of ten toes of a miry and unstable mixture of iron diktat and clay democracy.

3) Apocalyptic Bible Prophecy, specifically that three Beasts are rising to rule mankind. The First, a Beast Regime, Revelation 13:1-4. The Second, a Beast Sovereign, that is ruler, Revelation 13: 5-10, Daniel 9:25. And Third, a Beast Seignior, that is a top dog banker who takes a cut, Revelation 13:11-18.

4) Bible Prophecy of the Syrian War of Isaiah 17:1-11, will precede the Ezekiel 38-39 War, where war against Iran will be initiated. Robert Fisk relates in Common Dreams Iran, Not Syria, Is the West’s Real Target.  Business Insider reports The US Strategy In Syria Is Unraveling.  CNN reports Syrian Rebels Reject Interim Government, Embrace Sharia. A collection of some of Syria’s most powerful rebel brigades have rejected a Western-backed opposition group that announced the creation of an interim government in exile this month. The 13 rebel groups, led by the al Qaeda linked al-Nusra Front, also called on supporters of the Syrian opposition to embrace Sharia law “and make it the sole source of legislation. The WSJ reports UN Members Agree on Syria Disarmament. Security Council’s five top powers draft resolution that requires destruction of chemical arsenal but puts off enforcement.

In conclusion to Bonito Mosquito, I write that Austrian Economists are in denial of the truth as they hold forth that there be sovereign individuals who have experience in human action, as Ludwig von Mises wrote in Human Action (p.240 the scholars edition)

Theism and Deism of the Age of Enlightenment viewed the regularity of natural phenomena as an emanation of the decrees of Providence. When the philosophers of the Enlightenment discovered that there prevails a regularity of phenomena also in human action and in social evolution, they were prepared to interpret it likewise as evidence of the paternal care of the Creator of the universe. This was the true meaning of the doctrine of the predetermined harmony as expounded by some economists. The social philosophy of paternal despotism laid stress upon the divine mission of kings and autocrats predestined to rule the peoples. The liberals retorted that the operation of an unhampered market, on which the consumer–i.e., every citizen–is sovereign, brings about more satisfactory results than the decrees of anointed rulers. Observe the functioning of the market system, they said, and you will discover in it the finger of God

The reality is there is only the administration of Jesus Christ, Ephesians 1:10, in all things, and that it is Jesus Christ who appoints power structures under both liberalism, which came to an end September 20, 2013, on the failure of World Stocks, VT, Major World Currencies, DBC, and Emerging Market Currencies, CEW,  as well as under authoritarianism.

On Wednesday, Scott Grannis posts Dramatic Improvement In Household Balance Sheets

The Federal Reserve today released its estimate of households’ balance sheet as of the end of June. The report contained some significant upward revisions to past estimates of financial assets and net worth, with the result that household net worth now stands at $74.8 trillion, up some $4.5 trillion from the previous (March ’13) estimate, and up $18.4 trillion from the recession low. Virtually every metric of households’ financial health has shown significant improvement over the past several years. Owner’s equity in household real estate has surged 50% since 2009; net worth and financial assets are up 35% from their March 2009 low; the value of households’ real estate holdings is up 17% in just the past two years; owner’s equity as a percent of household real estate has jumped to almost 50%, up from its all-time low of 37% four years ago; household debt has declined by almost $1 trillion from its 2008 high, and is now back to the levels of early 2007. Net worth at a new high, financial assets at a new high, real estate values recovering, debt declining: what’s not to like?

I comment that Liberalism was defined by fiat investment wealth, specifically ETFs such as Gaming and Casinos, BJK, and Vice Stocks, such as those traded by the Fidelity Mutual Fund, VICEX, all of which were leveraged up by first the trade in debt, such as Eurozone Debt, EU, as well as the toxic debt taken in by the US Federal Reserve, such as that traded by the Fidelity Mutual Fund FAGIX, under QE1, and secondly by carry trade investing, such as the EUR/JPY. The Fed be dead, and its twin,  Japanese Yen based carry trades, be dead as well; both died the week ending September 20, 2013, on the climax on the No Taper Rally, where QEternity was announced, which pivoted the world from Liberalism to Authoritarianism.  Now, Authoritarianism is defined by the diktat of statist regional nannycrats, as well as by the physical possession of gold bullion for wealth preservation, and physical possession of silver bullion for bartering.

Silver Miners, SIL, and Gold Miners, GDX, and the Silver ETF, SLV, and Gold ETF, GLD, traded higher, as Spot Silver, $SILVER, traded higher to 21.78 and Spot Gold, $GOLD, traded higher to 1,333, continuing above its $1,300 breakout level.

The Gold ETF, GLD, moved higher in its Elliott Wave 3 UP, to close at 128.79, a move that commenced in July 2013, as Gold started to rise from its July 2013 bottom, as is seen its Weekly Chart, as Bloomberg reported US Budget Concerns Escalate. The Elliott Wave 3 Ups are the most dramatic of all economic waves, and create the bulk of wealth gains, of all of the five waves.

The No Fed Taper Rally, commenced global debt deflation, that is global competitive currency devaluation, as the US Fed’s QEternity monetary policy has crossed the Rubicon of sound monetary policy, and has turned money good investments bad. The chart of the US Dollar, $USD, shows a death cross, as it traded lower on September 18, 2013, on the UnTaper Rally, to $80.00, terminating the US Dollar’s power to be the world’s reserve currency.

World Stocks, VT, traded lower on lower Major World Currencies, DBV. China, YAO, traded lower on a lower Yuan, CYB. Sweden, EWD, traded lower on a lower Swedish Krona, FXS.  Emerging Markets, EEM, traded lower on lower Emerging Market Currencies, CEW.  Brazil, EWZ, EWZS, traded lower on a lower Brazilian Real, BZF. Indonesia, IDX, and Malaysia, EWM, traded lower. Argentina, ARGT, Greece, GREK, and Egypt, EGPT, traded higher.

As seen in the Statue of Empires, presented in Daniel 2:25-45, liberalism was characterized by the twin iron legs of global hegemonic power of the British Empire, and the United States of America.  Now, authoritarianism is characterized by ten toes of iron diktat of regional goverance and totalitarian collectivism, manifesting as statism in the Eurozone, and alliances in other regions, such as the ASEAN group of nations. Ulrich Rippert of WSWS reports Forming A New German Government: Parties Prepare For War And Social Attacks. All the parties are trying to establish a ruling coalition stable enough to push through unpopular measures on behalf of the ruling class.

GoldSilverWorlds reports CFTC Believes That Silver Is A Free Market After 5 Year Investigation. I comment that I hope this news puts to rest the ongoing debate as to potential of the price of silver to rise higher over the price of gold. Silver will never, ever, leverage higher over the price of gold. One of the reasons is because of the huge potential for production by Silver Standard Resources Inc, SSRI, which has been one of the most speculative and carry traded investments of all time. The company does not have a forward PE, and it has plenty of contracts to sell its production, so the result is that the price of silver will never, ever outperform gold.  Silver Standard Resources is a dead investment, and serves as an epitaph on Liberalism’s age of speculative leveraged investment.

In the last month, Gold Mining Stocks, GG, ABX, and NEM, have been unable to leverage up over the price of Gold, GLD, as is seen in their combined ongoing Yahoo Finance Chart. Gold Mining Stocks are now lagging the price of Gold because their PE’s have topped out; for example, Goldcorp, GG, has a Forward PE of 20; American Barrick, ABX of 8, and Newmont Mining, NEM, of 15.

Solar Stocks, TAN, traded higher. Aggregate Credit, AGG, traded higher as the Interest Rate, ^TNX, traded lower to close at 2.61%. Eurozone Debt, EU, traded lower.

Shares of Deutsche Bank, DB, traded 2.4%, lower as Bloomberg reports Jain Says Deutsche Bank’s Debt-Trading Revenue Falls. Deutsche Bank AG, DB, co-Chief Executive Officer Anshu Jain said third-quarter revenue from trading debt probably slumped at Germany’s largest bank. “We currently anticipate debt sales and trading revenues in the third quarter to decline significantly from last year,” Jain, 50, told investors at a conference in London today. “Market activity was substantially lower which has affected our corporate banking and securities revenues.”

Deutsche Bank, DB, has been an Eurozone Financials, EUFN, Germany, EWG, and Eurozone, EZU, stalwart, as is seen in the combined ongoing Yahoo Finance chart of EUFN, EWG, and EZU. The trade lower in DB, heralds a soon coming trade lower in Eurozone Financials, Germany and Eurozone stock.

The profitability of Deutsche bank and trade in Eurozone Financials has been predicated upon trading in Eurozone Debt, EU. Jesus Christ, acting in Dispensation, that is in the administration of all things economic and political, for the completion and fulfillment of every age, era, epoch and time period, is terminated trade in Eurozone debt, as part of the process of ending the sovereignty and seigniorage, of Liberalism, and introducing a the sovereignty and seigniorage of Authoritarianism.

A new sovereignty is coming, specifically from that of the Milton Friedman Free to Choose floating currency Banker Regime of democratic nation states, to the Nannycrat Diktat Beast Regime of statist regional governance, Revelation 13:1-4, where eventually there will be ten regional kings ruling in the world’s ten regions, Revelation 17:12. And a new seigniorage is occuring, that is a new moneyness, is happening, from the seigniorage of investment choice, to the seigniorage of diktat.

The change of sovereignty and seigniorage comes largely through Jesus Christ releasing the First Horseman of the Apocalypse, Revelation 6:1-2, where The Rider on the White Horse, who has a bow but no arrows, symbolizes a non-bloody economic and political coup d’etat, where the baton of sovereignty and seigniorage is being passed from democratic nation states to nannycrats in statist regional governance and totalitarian collectivism.

Fox News reports Kerry Signs UN Arms Treaty, Senators Threaten To Block It. US Secretary of State John Kerry signed a controversial U.N. treaty on arms regulation, riling U.S. lawmakers who vow the Senate will not ratify the agreement. As he signed the document, Kerry called the treaty a “significant step” in addressing illegal gun sales, while claiming it would also protect gun rights.

On Thursday,  Inverse Volatility, XVZ, rose, as Volatility, XVZ, traded lower, as World Stock, VT, rose, as Solar Stocks, TAN, Internet Retail, FDN, Nasdaq Internet, PNQI, Biotechnology, IBB, Media, PBS, Casinos and Resorts, BJK, Global Consumer Discretionary, RXI, Smallcap Industrials, PSCI, US Infrastructure, PKB, and Shipping Stocks, SEA, traded higher. Energy Production, XOP, and Small Cap Energy, PSCE, rose to new rally highs. The Russell 2000, traded to a new rally high on higher Small Cap Pure Growth, RZG, and Small Cap Pure Value, RZV, both rising to new rally highs.  In yield bearing sectors, Leveraged Buyouts, PSP, traded higher, and International Telecom, IST, rose to a new rally high, while Utilities, XLU, traded lower.

Japan, EWJ, JSC, rose taking the Nikkei, NKY, to a new rally high. Other nations trading higher included Egypt, EGPT, Indonesia, IDX, IDXJ, South Korea, EWY, New Zealand, ENZL, Australia, EWA, KROO.  Peru, EPU, Turkey, TUR, Netherlands, EWN, traded lower.

Intel, INTC, Broadcom, BRCM, Atmel, ATML, traded lower, turning Semiconductor, XSD, lower. Networking, IGN, and Transportation, XTN, traded lower.

China, YAO, traded unchanged as Value Walk reports Chinese Bank Problems Echo Those Of Japan (Not US), Michael Pettis Says. And Mike Mish Shedlock references Michael Pettis asking So why is China’s GDP growth rising again? The simple answer is shadow banking has revived. Is it sustainable? Of course not. Debt is growing faster than it can possibly be paid back. In his email Pettis stated that he felt like a broken record, repeating the same story over and over again.I don’t mind, because it’s clear that people have not gotten the message, especially in regards to using alleged reserves. Please reread that section until you understand it.

The UnTaper rally drove up Nation Investment, EFA, to an all time high, with the following nations leading the way higher: EGPT, 31%, ARGT, 23, EFNL, 22, EWY, 18, KROO, 17, YAO,  17, EIRL, 16, EZA, 16, EWN, 16, as is seen in their combined ongoing Yahoo Finance Chart. Ireland, EIRL, has been liberalism’s nation investment superstar.

The EUR/JPY closed up at 133.42, supporting Eurozone Stocks, EZU, despite a lower European Financials, EUFN, led so by Ireland’s IRE, and Germany’s DB, while Banco Santander, SAN, rose taking Spain, EWP, to a new rally high.

Silver Miners, SIL, and Gold Miners, GDX, lower on a lower price of Silver, SLV, and Gold, GLD.

Aggregate Credit, AGG, traded lower as The Interest Rate on the US Ten Year Note, ^TNX, rose to 2.64%; and the Steepner, STPP, rose after having fallen for two weeks, reflecting a re-steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX. The No Taper Rally supported a rally in the longer duration debt such as The Zeroes, ZROZ, 30 Year US Government Debt, EDV, High Yield Munis, HYD, Longer Duration Corporated Debt, BLV, Emerging Market Bonds, EMB, but inasmuch as money failed with the UnTaper Rally, the rally in these debts has ended as is seen in their combined ongoing Yahoo Finance Chart.

Patti Dom of CNBC reports Corporate America Took On A Record Amount Of Debt In September as corporate Treasurers rushed to take advantage of a dip in rates and a receptive market. Verizon’s biggest ever $49 billion offer helped drive the month’s investment grade offerings to an all-time high of $147.8 billion so far, besting the $133.9 billion of May, 2008, according to Informa Global Markets. But the offers picked up momentum as the month wore on, and particularly after the Fed surprised markets last week by leaving its $85 billion monthly bond buying program intact for now.

Zero Hedge reports Greece On The Verge? Military Special Forces Have 15 Demands, Or Else. As the website Keep Talking Greece notes, the statement on the union’ website included 15 demands,  including the resignation of the Greek President, and urged people to gather at the infamous Syntagma Square on Saturday. The statement was interpreted by some as a call to a coup d’etat, denied by the union, but prompted Greece’s Supreme Court to meet to discuss it.

Open Europe in their for fee newsletter reports Greek Golden Dawn MPs Consider Resigning, Could Trigger Fresh Elections. MPs of the far-right Golden Dawn party have threatened to resign from the Greek parliament, a move which could lead to demands for snap general elections. Kathimerini Kathimerini 2 EUobserver Times Reuters AFP HLN Volkskrant AFP2 Guardian Guardian 2

The ratio of equity to debt such as Eurozone Stocks relative to Eurozone Debt, EZU:EU, as well as Nation Investment relative to World Treasury Debt, EFA:BWX, and World Stocks relative to Aggregate Credit, VT:AGG, communicates that stocks are leveraged at terrific levels attained through the No Taper Rally.

The WSJ reports No Clear Path to Avoid Shutdown as House GOP Stands Firm. Congress’s rocky path to avoiding a government shutdown became even rougher Thursday, as Speaker John Boehner said the House wouldn’t accept the spending plan likely to emerge from the Senate. The Ohio Republican’s announcement foreshadows a set of last-minute legislative volleys between the House and Senate to fund federal agencies ahead of a deadline Monday, the final day of the fiscal year. he Senate is expected to pass a bill Friday that would fund the government for the first 1½ months of the new fiscal year. But Senate Democrats plan to restore money for the Affordable Care Act that House Republicans had stripped out, leaving the two chambers in conflict.

On Friday, September 27, 2013, The stock markets moved from risk-on, to risk-off, as the Risk On ETN, OFF, traded higher, as both Industrials, XLI, ie Small Cap Growth Stock, ROLL, and Large Cap Growth Stock, ITW, Transports, XTN, as well as Dividend Growth, VIG, traded lower on the week, establishing a turn from a bull stock market to a bear stock market, on the exhaustion of the world central banks monetary authority, specifically that the US Fed’s monetary policies have crossed the rubicon of sound monetary policy, and have turned money good investments bad, resulting in the end of the age of Nation State Investment, EFA, in countries such as the Netherlands, EWN, and its companies, PHG, CNH, YNDX, NXPI, and profitable global industrial production, FXR, ie WHR.

The chart of the Dollar’s 200% ETF, UUP, turned terribly bearish as The US Dollar, $USD, traded lower. The US Dollar, $USD, is being dethroned as the world’s reserve currency as AP reports Preparing for Shutdown, Government Plans Furloughs. More than a third of federal workers would be told to stay home if the government shuts down, forcing the closure of national parks from California to Maine and all the Smithsonian museums. The EPA would essentially be closed to most of its approximately 17,000 employees, except for those involved in shutting down systems, tasked with emergency cleanups, or doing legal work in ongoing federal cases, said John O’Grady, president of the local union of EPA employees in Chicago. NASA is still working on shutdown plans, but the agency doesn’t have a launch scheduled until Nov. 6, spokesman Bob Jacobs said. Nearly all but a few hundred of the space agency’s 18,000 employees would be furloughed under a contingency plan outlined in 2011.

Money as it has been known, died on the unwinding of the No Taper Rally, which some call the Un Taper Rally, as evidenced by a trade lower in World Stocks, VT, and Major World Currencies, DBV, as well as Emerging Market Stocks, EEM, Emerging Market Currencies, CEW, and Emerging Market Bonds, EMB.

Jesus Christ, operating at the helm of the Economy of God, that is in administration of all things economic and political, has completed the age of liberalism by producing a moral hazard and currency carry trade prosperity. With peak prosperity having been achieved, He is introducing the age of authoritarianism, which features a debt servitude based austerity.

Jesus Christ has unleashed the First Horseman of the Apocalypse, Revelation 6:1-2, where the Rider on the White Horse, having a bow but no arrows is effecting coup d’etat word wide, passing the baton of sovereignty to new sovereigns. A new money, that being diktat money is being established, as nannycrats meet in summits and workgroups to renounce national sovereignty and to pool sovereignty regionally for regional security, regional stability and regional sustainability.

The turn lower from the No Taper Rally of September 18, 2013, ends liberalism’s sovereignty of nation state democracy and marks the beginning of authoritarianism’s sovereignty of regional governance and totalitarian collectivism.

Liberalism was the epoch of the Milton Friedman Free To Choose Floating Currency Banker Regime, featuring policy of investment choice, and schemes of credit and carry trade investing.  Now, Authoritarianism is the epoch of the Angela Merkel Diktat Beast Regime of Revelation 13:1-4. featuring policies of diktat and schemes of debt servitude.

Brian Parkin and Tony Czuczka of Bloomberg report Germany’s Free Democrats, who have held the balance of power more than any other political party in the republic’s history, were ousted from parliament for the first time after voters defected to Angela Merkel’s Christian Democrats and the euro-skeptic AfD. The liberal FDP, which served as the junior partner in Christian and Social Democrat-led governments, gained just 4.8% in federal elections yesterday, less than the 5% needed to enter the Bundestag. The party’s worst result contrasts with its best of 14.6%, gained four years ago to rule under Angela Merkel. The FDP’s exit from Germany’s lower house marks the end of 64 years of parliamentary representation, in which it championed free market policies and personal freedoms, challenging the postwar consensus-orientated politics of the larger people’s parties.

Competitive currency deflation is strongly underway on the unwinding of the No Taper Rally, which some call the UnTaper rally. Debt deflation, that is currency deflation is seen in Major World Currencies, DBV, of which the US Dollar, $USD, is a component, which traded strongly lower.

Emerging Market Currencies, CEW, traded lower on a lower Indian Rupe, ICN, which forced India, INP, SCIN, and its banks, HDB, IBN, strongly lower. The Brazilian Real, BZF, traded lower, which forced Brazil, EWZ, EWZS, lower. The Mexico Peso, FXM, traded lower, taking Mexico’s Bank, BSMX, and Mexico, EWW, strongly lower. Emerging Market, EEM, Emerging Market Small Cap Dividend, DGS, and Emerging Market Bonds, EMB, finished the week lower.

The Euro, FXE, traded to a new rally high, and yet the Yen, FXY, traded even higher, taking the EUR/JPY, lower on both the day and on the week, to close at 132.77; yet Eurozone Stocks, EZU, traded near their week’s high; European Financials, EUFN, traded lower on the week. The Swiss Franc, FXF, traded higher, taking Switzerland, EWL, higher. Netherlands, EWN, Italy, EWI, traded lower. Spain, EWP, and Greece, GREK, traded higher.

Egypt, EGPT, traded higher. Argentina Banks, BFR, GGAL, and BMA, traded higher, taking ARGT,  higher.

The Chinese Yuan, CYB, traded lower as China’s Financials, CHIX, led China, YAO, China Industrials, CHII, and China Infrastructure, CHXX, lower.

US Stocks, VTI, traded lower; the chart of the S&P 500, $SPX, traded by the ETF, SPY, shows a 1.0% trade lower on the week.  A lower US Dollar, kept losses in World Stocks, VT, to a minimum. Countries with balance of payment issues traded lower, these included Thailand, THD, Turkey, TUR, South Africa, EZA, Philippines, EPHE, Malaysia, EWM, and Peru, EPU. Russia, RSX, ERUS, and Italy, EWI, traded lower.  Yahoo Finance Chart communicates that Peru, has the worst amount of derisking and deleveraging amongst all of the Emerging Markets over the last six months.   John Quigley of Bloomberg reports Peru’s bond risk is soaring more than any investment-grade debtor nation in the Americas as tumbling metal exports erode the country’s budget surplus and prompt the government to double its borrowing. The cost to protect Peruvian dollar debt against non-payment for five years using credit-default swaps has climbed 0.4 percentage point to 1.40 percentage points in the past six months..

Metal Manufacturers XME, such as CRS, MLI, STLD, WOR, RS, traded lower, Steel, SLX, such as TS, MT,  SID, NUE, Coal, KOL, such as CLF, Uranium, URA, Industrial Miners, PICK, such as VALE, ZINC, GSM, PKX, Rare Earth Miners, REMX, and China Miners, CHIM, traded lower.

Utilities, XLU, such as those seen in this Finviz Screener, traded lower.

Small Cap Pure Value Stocks, RZV, such as First Internet Bancorp, INBK, Home Health Care Company, ADUS, Casinos, Lakes Entertainment, LACO, and Boyd Gaming, BYD, traded lower.

International Paper, IP, traded lower, taking Paper Produces, WOOD, lower.

Halliburton, HAL, traded lower, taking Energy Service, OIH, lower.

Networking Stocks, IGN, traded lower.

Semiconductors, such as BRCM, ATML, INTC, MSCC, MRVL, FCS, TSM, FSL, XLNX, ADI, and LLTC, traded lower, taking Semiconductors, SMH, lower

Bank of America, BAC, traded lower, taking the Too Big To Fail Banks, RWW, lower. Asset Managers, such as BlackRock, BLK, traded lower. Investment Bankers, KCE, traded lower.

Life Insurance companies, such as ING, seen in this Finviz Screener, traded lower.

Shipping Stocks, SEA, such as those seen in this Finviz Screener, traded lower.

Agriculture, MOO, and Fertilizers, SOIL, traded lower.

Silver Miners, SIL, and Gold Miners, GDX, are unable to leverage higher on a rising price of Gold, GLD, and a rising price of Silver, SLV, as is seen in the charts of SIL:SLV, and GDX:GLD.

Liberalism was an era that was characterized by free-money, coming from the world central banks monetary policies of Global Zirp, a record level of margin credit, and the Bank of Japan, and its lenders such an NMR, MTU, SMFG, MFG, as well as China’s SHG, presented together in the chart of Far East Financials, FEFN, providing Yen carry trade loans. Leveraged Buyouts, PSP, traded higher. Debt laden Blackstone, BX, is trading near its rally high, as CNBC reports its chief Joseph Baratta, saying “We are in the middle of an epic credit bubble, in my opinion, the likes of which I haven’t seen in my career in private equity,” … “The cost of a high yield bond on an absolute coupon basis is as low as it’s ever been.” And Gerry Murray, head of JPMorgan Chase & Co.’s North America leveraged finance business, said The Federal Reserve’s surprise decision last week to not reduce its stimulus ‘gave a shot of adrenaline into the leveraged markets

Solar Stocks, TAN, seen in this Finviz Screener, traded to a new rally high.

Aggregate Credit, AGG, traded higher, as The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.62%.

Jesus Christ acting in Dispensation, that is in oversight of all things economic and political, has fully completed Liberalism as an age of investment choice powered by credit and carry trade investing, by expanding fiat wealth to an unprecedented level, as Doug Noland relates in Safehaven.com article, The Federal Reserve has created a massive Bubble of risk assets. Since since ’08 Household holdings of mutual funds and equities have surged $10.640 TN, or 85%, to $23.191 TN. Pension Fund Entitlements jumped $4.675 TN, or 33%, to $18.737 TN. It’s no longer true that American households have the majority of their wealth in savings and real estate. These days, and much the product of experimental monetary policy, Household perceived wealth is wrapped up in the risk markets. Those of a bullish persuasion would argue these dynamics confirm the underlying strength and stability of the U.S. economy. I’ll counter with the view – one supported by Fed data – that massive federal deficits and Federal Reserve monetization have created unprecedented and deeply systemic financial and economic distortions

In the age of authoritarianism, physical possession of gold bullion, and diktat will be the only forms of sovereign and thus sustainable wealth.

3) … The development of character begins in childhood. Elaine Meinel Supkis writes Berlin High Students Join Other Party-time Teens In Upstate NY To Vandalize Football Player’s Mansion.

It’s apparent that a wilding took place, it’s part of what the Bible refers to as the mystery of iniquity.

I live in the inner city, and use public facilities, like the local bus depot and the library, as well as reside in an apartment building owned by a non-profit charity which exposes me to many who live not only libertine but antisocial.

Psychopathy can be inherited, and can does develop as young people cross the rubicon of sound ethical behavior, so that over time the boundary between ruling over others and being independent from others is erased; so I feel sorry, in a sense, for the 300, as everyone of them now has eroded the ethical standard of responsible living and they live exposed to living more in iniquity.

There is a responsibility on the part of parents to educate their children in ethical living. I’m not particularly a fan of William J. Bennett, but he with the help of two individuals, wrote The Book of Virtues, and the Chapter on Responsibility presents CS Lewis Men Without Chests, and develops the  idea that parents and mentors have a responsibility to educate children in moments of learning to have the right response; specifically to train children to feel pleasure in doing and seeking after things which are noble and praiseworthy, and to feel disgust and contempt for things which are injurious, so that when the age of reason comes, he will embrace virtue and ethics, into his soul, and be nourished thereby, and in so doing become a person of gentle spirit and good way.

I feel sorry for the parents, they are the largest losers of all, as they lost the reward that comes from raising children who go on to live noble lives. Thank God, I have never had any children and have never been a parent. Residing where I do in the downtown area, I see daily the mystery of iniquity being played out and pray that I will have a love of Christ, and through his Spirit, live in the mystery of righteousness.

4) … The richest and poorest states revealed. Mike Sauter of 24/7 Wall St lists  America’s Richest and Poorest States Maryland is the wealthiest state while Mississippi, Arkansas, West Virginia, Alabama and Kentucky are the places of greatest poverty.  In Mississippi, about one in five households depended on food stamps last year, second only to Oregon. The state’s poverty rate was 24.2%, the highest in the nation by more than three percentage points.

5) … Are electrical waves making you sick? Liberty Crier reports Customers say OG&E smart meters making them sick, giving them headaches