Archive for November, 2013

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

November 22, 2013

Investment report for the week ending November 15, 2013

1) …Introduction

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EMFN 2.2

EMMT 1.9

EMIF 4.0

VTI rose 1.7%, new high

EZU  1.2

EPP -0.3

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

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

Nations trading higher included

YAO rose 5.1%, new high

ECNS 4.0, new high

EWW 4.7

VNM 3.3

EWZ 3.3

EZA 3.1

THD 2.9

EPOL 2.8

ARGT 2.7

EIRL 2.6, new high

EPHE 2,4

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

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

EWY 2.1

TUR 1.9

NORW 1.6

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

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

EGPT -2.6

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

RWW 1.5, new high

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

KCE 1.5, new high

EUFN 0.3

FEFN 6.2, new high

CHIX 4.5, new high

EMFN 2.2

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

KRE -1.0

Global Natural Resources,GNR rose 1.1%

XOP 1.8

PSCE 1.1

OIH, 0.2, new rally high

USO -0.4

UNG +2.2

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

SOCL 6.0

ITB 4.4

XTN, 4.2, new high

PNQI 4.1, new high

IBB, 4.0

XRT 3.7 new high

CSD 3.3, new high

FDN 3.1, new high

PJP 3.0, new high

PBJ 2.9, new high

PBS 2.9, new high

FXR 2.5, new high

RXI 2.5, new high

IYC 2.5, new high

FPX 2.5, new high

PKB 2.3, new high

CARZ 2.1

RXI 1.7, new high

PSCI 1.7, new high

RZV 1.6, new high

RZG 1.5, new high

KXI 1.4, new high

PPA 1.0, new high

TAN 1.0, new high

Yield bearing sectors trading higher

PHO rose 2.8%

XLU 0.7, such as those in this Finviz Screener.

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

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

Ratios suggest peak fiat wealth has been achieved

VT:DBV 2.26

XLB:DBC 1.77

EZU:EU 1.74

PICK:DBD 1.25

VT:BWX 1.00

VTI:TLT 0.89

VT:AGG 0.54

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

2013-11-04  10938.9

2013-10-28  10858.8

2013-10-21  10938.7

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

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

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

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

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

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

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

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

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

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

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

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

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

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

November 14, 2013

Financial Market Report for the week ending November 8, 2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Global Financials, IXG, -0.9%

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

Emerging Market Financials, EMFN, -1.2

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

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

Chinese Financials, CHIX, -1.7

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

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

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

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

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

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

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

Turkey, TUR, -3.5

Mexico, EWW -3.2

Brazil, EWZ, -2.9 and EWZS, -3.1

South Africa, EZA, -2.4

Peru, EPU, -2.1

Poland, EPOL, -2.0

Taiwan, EWT, -1.7

Chile, ECH, -1.7

India, INP -1.7

Philippines, EPHE, -1.7

Russia, RSX, -1.7 and ERUS, -1.9

Spain, EWP, -1.7

Italy, EWI, -1.5

Malaysia, -1.5

Sweden, EWD, -1.4

South Korea, EWY, -1.3

China, YAO, -1.2

Greece, GREK -1.2

The Nikkei, NKY, -0.9

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sectors trading higher included

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

Software, IGV, 1.0

Resorts and Casinos, BJK, 0.8

Stockbrokers, IAI, 0.8

Regional Banks, KRE, 0.8

Sectors trading lower included,

Biotechnology, IBB -2.9

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

Pharmaceuticals, PJP, -1.1

IPOs, FPX, -1.0

Transportation, XTN, -1.0

Yield Bearing Sectors trading higher included

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

Leveraged Buyouts, PSP, 0.9

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

Nations trading higher included

Norway, NORW, 2.2

Thailand, THD, 2.1

Sweden, EWD, 1.8

Nikkei, NKY, 1.7

Poland, EPOL, 1.6

New Zealand, ENZL, 1.5

Egypt, EGPT, 1.4

Turkey, TUR, 1.1

Switzerland, EWL, 1.1

German Small Caps, GERJ, 1.1

Netherlands, EWN, 1.1

Greece, GREK, 1.1

Italy, EWI, 1.1

Spain, EWP, 1.1

Ireland, EIRL, 1.0

The Eurozone, EZU, 1.0

Nations trading lower included

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sectors trading lower included

Solar Energy, TAN, -5.1%

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

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

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

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

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

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

Food and Beverage, PBJ, -2.5

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

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

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

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

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

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

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

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

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

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

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

Paper Producers, WOOD, -1.7

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

Transportation, XTN, -1.7.

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

Yield Bearing Sectors trading lower included

SEA, -2.5%

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

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

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

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

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

Aggregate Credit, AGG, closed weakly higher.

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

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

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

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

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

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

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

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

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

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

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

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

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

Sectors trading higher included

Solar Energy, TAN 4.5%

Pharmaceuticals, PJP 3.8, a new rally high

Biotechnology, IBB 3.2

Small Cap Pure Growth, RZG 2.5

Media, PBS 2.3

Internet Retail, FDN 1.9

Small Cap Pure Growth, RZV 1.8

Nasdaq Internet, PNQI 1.8

Spin Offs, CSD 1.8

Small Cap Industrial, PSCI 1.7

Transportation, XTN 1.7

Global Industrial Producers, FXR 1.5

Retail, XRT 1.4

Design Build, FLM 1.4

Aerospace, PPA 1.4

Consumer Services, IYC 1.4

Semiconductors, XSD 1.4

US Small Cap Stocks, IWM, 1.8%

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

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

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

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

A summary of this week’s financial market trading

World Stocks, VT -0.9%

Nation Investment, EFA -0.5

Global Financials, IXG +0.1

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

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

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

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

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

Transportation, DAL, LCC, FDX, KSU, ODFL

Food Retail, KR

Software, CRM,

Technology, MSI,

Life Insurance GNW,

Research Services, ELN

Communications Services, VZ

Credit Provider, MA

Real Estate, BX

Office Supplies Retailer, ODP

Design Build, FLR, JEC,

Chemicals, DD, PPG

Pharmaceuticals, BMY, PFE,

Consumer Staples, CL, KMB, ECL

Aerospace, BA, RTN, LMT, NOC,

Automobiles DORM,

Energy Service HAL,

Industrial Textiles, MHK,

Medical Devices, COV,

Semiconductors, TNX

Industrial Machinery Manufacturers, ROK, ITW,

Steel Manufacturer, MT

Research Services, ELN

Biotechnology, REGN

Iron Ore Miner, BHP

Communications Equipment Manufacturer, PHG

Energy Producer, APC

Business Services, ADS, SNX

US Stocks, VTI +0.4

Eurozone, EZU -0.7

Asia Excluding Japan, EPP -0.4

Nikkei, NKY -0.5

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

Global Financials, IXG +0.1%

European Financials, EUFN -2.0

Chinese Financials, CHIX, -3.1

Emerging Market Financials, EMFN -5.0

Regional Banks, KRE +3.8

Stockbrokers, IAI, +2.6

Too Big To Fail Banks, RWW +1.8

Aggregate Credit, AGG -0.6%

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

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

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

Mexico, EWW -4.2

Turkey, TUR -4.0

Peru, EPU -4.0, Bank BAP is sharply lower

Philippines, EPHE -3.2

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

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

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

South Africa, EZA -2.5

Thailand, THD, -2.3

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

Russia, RSX, -2.4

This week sectors trading lower included

Social Media, SOCL -3.2%

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

Resorts and Casinos, BJK -1.8

Nasdaq Internet, PNQI -1.5

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

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

Industrial Office REITS, FNIO -5.1%

Residential REITS, REZ -4.5;

Mortgage REITS, REM -4.0

Real Estate, IYR -3.9

Small Cap Real Estate, ROOF, -3.5

Global Utilities, DBU -2.1

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

November 8, 2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Gold, GLD, is both a commodity and a currency, and being that it had carry trade seigniorage under liberalism, it is now trading lower in value, as investors deleverage out of currency carry trades. Its trade lower today, caused investment derisking out of gold mining stocks, GDX, and Silver Mining Stocks, SIL. Silver Standard Resources Inc, SSRI, a carry trade darling, traded 5.4% lower.

Globalism as a driver in economic affairs, is history. The death of globalism with the death of fiat money, and this death is terminating the rule of the Banker democratic nation state regime, and is introducing regionalism, thus commencing the rule of the beast regime of regional governance and totalitarian collectivism, which provides the diktat money system for mankind’s economic and political life.

Benson te writes on the collapse of credit More Signs of China’s Hissing Bubble: Four Biggest Banks Post Biggest Surge in Bad Loans From Bloomberg, China’s top four banks posted their biggest increase in soured loans since at least 2010 as a five-year credit spree left companies with excess manufacturing capacity and slower profit growth amid an economic slowdown.

Nonperforming loans at Industrial & Commercial Bank of China Ltd. (601398), China Construction Bank Corp. (939), Agricultural Bank (1288) of China Ltd. and Bank of China Ltd. (3988) rose 3.5 percent in the three months to Sept. 30 from June to a combined 329.4 billion yuan ($54 billion), according to data compiled by Bloomberg News based on third-quarter results.

The rise in defaults adds to concerns bank profitability may decline as policy makers seek to trim production at cement makers to paper manufacturers that have gorged on credit since 2008, while urging lenders to build buffers to cover loan losses. China’s biggest state-run banks are trading near record-low valuations as investors brace for a surge in bad debts and slower credit growth.

Interest rate payments soar. Interest owed by borrowers has risen to 12.5 percent of Chinese gross domestic product in 2013 from 7 percent in 2008, Fitch Ratings estimated in a report last month. The figure may rise to as high as 22 percent by the end of 2017, which could “ultimately overwhelm borrowers,” the agency said.

When the markets begin to question the ability of firms or nations to service their debt/s, where the cost of servicing debt (interest and principal) overcome the profit centers, then confidence to refinance existing bad loans will grind to a screeching halt. This leads to more accounts of bad loans and more bankruptcies.  I comment that the collapse of trust in the debtor to repay lender caused Chinese Financials, CHIX, to trade lower on October 22, 2013, which recovered in price this week.

SFGate reports Rents Soaring Across Region. Asking rents for San Francisco apartments listed on www.livelovely.com clocked in at a record $3,398 in the third quarter, up 21 percent from 2012, said apartment-finding company Lovely.

Greek Newspaper Kathimerini reports Greek Private Clinics Refuse Patients Insured With EOPYY Over Outstanding Payments Greece’s private clinics will no longer admit patients insured by the National Organisation for Healthcare Provision (EOPYY), and will continue to withhold care until at least 3 November, unless the organisation settles its outstanding debts, estimated at a total of €800m.

Commodities, DBC, traded lower. There is a global glut of natural gas, and that today, Natural Gas, UNG, traded strongly lower; and Oil USO, traded lower again today

Gold Miners, GDX, Silver Miners, SIL, Homebuilders, ITB, Emerging Market Miners, EMMT, Emerging Market Infrastructure, EMIF, Casinos and Resorts, BJK, Energy Production, XOP,  Small Cap Energy, PSCE, Small Cap Pure Value Stocks, RZV, Small Cap Pure Value Growth Stocks, RZG, Too Big To Fail Banks, RWW, Regional Banks, KRE, Biotechnology, IBB, and Transportation, XRT, were the loss leading sectors of the day.

Robert Wenzel of Economic Policy Journal relates New $90 Million Condos in NYC Needle Towers. I respond with the Max Raskin, Michael Deal, and Evan Applegate of Bloomberg post of 08-08-2008 Correlations: Skyscraper Index. Sometimes a skyscraper is not just a skyscraper, at least to economists who see them as harbingers of downturns. The Skyscraper Index measures the correlation between the world’s tallest building and the business cycle. The theory, first proposed in 1999 by Dresdner Kleinwort analyst Andrew Lawrence, is that construction of the world’s tallest building is usually completed right before an economic downturn. The Empire State Building went up early in the Great Depression, and the World Trade Center was completed on the eve of a recession.

On Friday, November, 1, 2011 Regions trading lower included the Eurozone, EZU, -1.0, the Nikkei, NKY, -1.1, with Nation Investment, EFA, trading -1.0, lower; nations trading lower included Turkey, TUR, -2.1, Greece,  GREK, -2.0, Indonesia, IDX, -1.7, IDXJ, -2.9, South Africa, EZA, -1.5,Argentina,  ARGT, -1.2, Brazil, EWZ, -1.1, EWZS, -1.3, Spain, EWP -1.0, Sweden, EWD, -1.0, Philippines,  EPHE, -1.0, Egypt,  EGPT, -1.0, EWG, -1.0, GERJ,

Sectors trading lower included Small Cap Pure Growth, RZG, -1.1, and Home Building, ITB, -1.0.

Yield Bearing Sectors trading lower included Global Real Estate, DRW, -1.0, Global Utilities, DBU, -1.0, and Leveraged Buyouts, PSP, -1.0

Energy Production, XOP, -1.0, and Small Cap Energy, PSCE, -2.0, on lower Oil, USO, -1.6.

The chart of the EUR/JPY, showed a close at 133.22. And the chart of the AUD/JPY, showed a close at  93.21.

Some of the fastest derisking and deleveraging out of Nation Investment, EFA, is in those nations where the current account deficit is the largest, that being Indonesia, IDX, IDXJ, Brazil, EWZ, EWZS, Turkey, TUR, and South Africa, EZA, as is seen in their combined ongoing Yahoo Finance Chart. Heather Mathers posts Reemergence Of Currency Wars. The spectre of global contagion from Brazil, Indonesia, India, Turkey and South Africa is looming, Alan Ruskin, global macro strategist at Deutsche Bank has warned. The phrase “Fragile Five” seems to have been first coined by Morgan Stanley analyst James Lord.. This has hit those countries’ balance of payments, which measures the balance of a country’s transactions with the rest of the world. If a country’s exports, including financial transactions, are less than its imports it runs a current account deficit.

Gareth Vaughn of Bloomberg reports Moody’s Investors Service Considered Lowering New Zealand’s Triple A Credit Rating due to concerns the country’s current account deficit increases its vulnerability to external shocks. “So we discussed it, but we decided we should not downgrade New Zealand,” Bloomberg reported Steven Hess as saying.

Statistics New Zealand said last month the country’s current account deficit narrowed more than expected to $9.1 billion in the year to June 30, equivalent to 4.3% of Gross Domestic Product. At June 30 New Zealand’s net international liability position was $151.3 billion, or 71.1% of GDP.

Hess also said Moody’s would be watching the New Zealand housing market closely given the Reserve Bank’s decision to apply restrictions to banks’ high loan-to-value ratio lending. “Obviously the Reserve Bank thought they should do something about it, so it’s something that needs to be monitored and we’ll be doing that,” Hess told Bloomberg.

Last month Moody’s, which also confirmed its stable Aaa sovereign rating on New Zealand, maintained its stable outlook on New Zealand’s banking system, but said the risk of an asset bubble triggered by a lending boom remained a key credit concern. And in May Moody’s said the Budget highlighted New Zealand’s main vulnerability of reliance on foreign savings to fund investment.

Alan Wheatley and Tim Reid of Reuters report Property Hot Spots Renew Easy Money Bubble Bears. To assess property market risk, house prices need to be gauged in relation to income. Whereas the U.S. price-to-income ratio at the end of 2012 stood at 84.3, measured against a rolling long-run average of 100, the ratio in Canada was at a 10-year high of 131.7, according to the Organisation for Economic Cooperation and Development. Moreover, Canada’s debt-to-income ratio reached a record high of 163.4 percent in the second quarter.”Debt is at record levels, and we know consumers are biting off more than they can chew financially, so does this lead to more problems down the road?” asked Laurie Campbell, chief executive at Credit Canada, a credit counseling agency. And Macleans Canada posts Macleans provides the Chart Of Canadian Household Debt Since 2008, showing a continual and strong rise.

Alex Matveev posts Vancouver West Detached Home Real Estate Market Update 830 active listings, 105 sold listings. Sales-to-active listings ratio is 12.7 per cent. List prices are ranging from $948,000 to $23,800,000. Median list price is $2,888,000.

Justin Lee posts Alexandra English Bay Is A New Vancouver West Real Estate Project by Millennium Development Corporation, Concord Pacific and Alexandra English Bay Properties Ltd. Alexandra English Bay is located at 1221 Bidwell Street. The project has a total of 85 units and is scheduled for completion this Fall/Winter. Sales for available condos/apartments at Alexandra English Bay range in price from CAD$869,900 to over CAD$990,000. With unit sizes from 907 Sq Ft To 985 Sq Ft and ceiling heights from 9’0″ to 10’6″.

Roy Wang posts Chinese Buyers Boost Point Grey Vancouver West Property Market. According to the real estate company founder Bob Rennie Associates Realty • Rainey (Bob Rennie) estimated price of more than $ 2 million in Western homes, about 80% of buyers are Chinese people, they want to live in the adjoining West Point Grey Academy, St. George’s School (Saint George’s) and g Johor Dayton School (Crofton House) and other private residential area.

West Point a distant mountain views overlooking the sea and a five-bedroom house, Rennie & Associates Realty agency launched the price is 4.98 million Canadian dollars (about 4.83 million U.S. dollars). Relax intermediary company also introduced a Western set with indoor pool, seven bedroom home, it covers an area of ​​1.15 hectares, the price of 17.8 million Canadian dollars.

University of British Columbia (University of British Columbia) is a leading Western universities, but also attracted a lot of attention from buyers attention. Sotheby’s Canadian International Real Estate Limited (Sotheby’s International Realty Canada) President and CEO Ross • McCredie (Ross McCredie) estimates that 10% -15% of the West End apartment housing homeowners are international buyers. “Many people in this study, it will advance the room for their children ready, because they feel it is stabilized by investment,” he said.

Perchance, are you looking for a home in Bellingham, WA, just south of Vancouver. Well then, perhaps the home listed in Redfin 210 N Garden St Bellingham, WA 98225, is for you.

7) … News reports fulfill bible prophecy that Jerusalem will become a stumbling stone. Jason Ditz of Antiwar reports the following middle east news:

In Iraq, Sunni Attacks Spark Shi’ite Calls to Arms

Israel Issues Plans for 5,000 New Settlement Homes

Syria Peace Talks Face Delay as Big Powers Split

Forget Sanctions: House Hawks Push for Iran War

House: Israel Attacked Syria Airbase.

Prophecy Update posts Jerusalem: “A Burdensome Stone” Jerusalem is back in the news. One cannot read these articles without thinking about the warnings from the prophet Zechariah: “And In that day I will make Jerusalem a burdensome stone for all people: all that burden themselves with it shall be cut in pieces, though all the people of the earth be gathered together against it.” (Zechariah 12:3)

8) … Notes on “the new normal” Signposts Of The Times writes Prophecy Sign: roaring and tossing of the seas and anomalous weather patterns. Now Get Ready For An Ice Age As Experts Warn Of Siberian Winter Ahead

9) … Some cities are very psychopathic. Rockford, IL, is a city of great psychopathy. Wikipedia relates Rockford, IL 61101, is the most populous city in Illinois outside of Chicago.  Crime on the west side of town is endemic, with huge areas of old established neighborhoods in extreme blight. The homicide rate in these areas is quite high. Many houses were vacant with no one wishing to buy them.

Rockford was ranked #3 on Forbes’ 2013 America’s Most Miserable Cities list, mainly due to its excessive tax rate for the city’s size as well as its high unemployment rate.[23]

In February 2009, The Wall Street Journal published a series of stories on Rockford and its mayor focusing on various challenges faced by the city, including higher unemployment and lower education levels of workers compared to some cities.[24]

Blogs eRockford relates A 24/7 Wall St. review of 2010 FBI crime data shows Rockford was ranked the 9th most dangerous city in the U.S. for violent crimes per capita. Rockford was ranked behind Flint, Detroit, St. Louis, New Haven, Memphis, Oakland, Little Rock, and Baltimore, and just before Stockton. Median Income: $36,990 (26% below national average) and Unemployment Rate: 13.3% (4.3% above national average). Rockford has unusually high violent crime rates for a city of its size. Most notably, the city has the fourth highest rate of aggravated assault in the country, with 10.5 cases for every 1,000 citizens in 2010. During the same period, 20 murders occurred, almost double the number in 2000.

I add that the pursuit of municipal debt in Illinois, has reached psychopathic levels. as Tim Jones and John McCormick of Bloomberg report “Nothing thrives in Illinois like local government, almost 7,000 units that tax, spend and drive up debt in a state struggling to pay off vendors and cover almost $100 billion of unfunded pension liabilities. More than any other state, Illinois illustrates how local taxing bodies flourish across the U.S., whether urban or rural, Republican or Democrat. The governments duplicate services and burn tax dollars at the same time states slash money for education and Washington cuts discretionary spending. In Illinois, which has the 11th highest state and local tax burden in the U.S., overlapping government agencies managing everything from mosquito abatement to fire protection collect billions of dollars, employ tens of thousands and consume resources that could help pay pension deficits and $7.5 billion in outstanding government bills. ‘The big focus is on Washington D.C. and deficits and tax increases,’ said Dan Cronin, chairman of the DuPage County board… ‘But people frequently overlook a significant chunk represented by under-the-radar government — quiet, sleepy, unaccountable.’ Across the country, there are 38,266 special purpose districts, or government units distinct from cities, counties and schools, each with its own ability to raise money

10) … An inquiring mind asks what is risk free money, and what is “risk free” collateral?  Automatic Earth asks an important question How can we have record bad loans and record excess liquidity at the same time? I comment that inasmuch as a collateral shortage is coming soon, as investors derisk out of stocks, and deleverage out of currency carry trades, what constitutes “risk free” collateral, and thus what constitutes “money good” investments?

Physical possession of gold bullion certainly is “risk free” collateral, and a “money good” investment.

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

11) … Summary … The new endgame of the US Fed and other world central banks is to establish the antifragile financial system where banks are integrated into the government with both serving as the foundation for regional governance replacing nation state democratic rule.

Credit failed the week ending November 1, 2013. The bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.62%, which stimulated investors to stop chasing yield, and resulted in a strong rise in the failure of credit, with Ultra Junk Bonds, UJB, Junk Bonds, JNK, Aggregate Credit, AGG, World Treasury Bonds, BWX, International Corporate Bonds, PICB, Government Bonds, GOVT, and Short Term Bonds, FLOT, trading lower in value. The Steepner ETF, STPP, traded higher, reflecting the flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX.

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

Friday November 1, 2013, will be known as Black Friday for Bonds, as the following traded strongly  lower, 30 Year US Government Bonds, EDV, 10 Year US Government Note, TLT, Government Short Term Bonds, SHY, Long Duration Corporate Bonds, BLV, Corporate Bonds, LQD, International Treasury Bonds, PICB, World Treasury Bonds, BWX, Emerging Market Bonds, EMB, Municipal bonds, MUB, Junk Bonds, JNK, Mortgage Backed Bonds, MBB, and even Short Duration Bonds, FLOT. The failure of liberalism’s credit was complete. There be no safe Bonds, BND, anywhere in the world.

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

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

And in response to the failure of both credit and currencies, Global Financials, IXG, traded lower, leading World Stocks, VT,  and Nation Investment, EFA, lower on October 23, 2013; this just as the world central banks came out with a new end game, that is to roll out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, where banks are integrated into government, and serve as the bedrock for regional governance which replaces democratic nation state rule.

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

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

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

Mankind’s journey of authoritarianism commenced on October 23, 2013, with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio.  The provision of new world central bank monetary policies and schemes was the Genesis Event, that terminated the world out of the twin global former empires of the British Empire and the US Hegemonic empire, and into the new rule of the Ten Toed Kingdom, as foretold in bible prophecy by the prophet Daniel in his interpretation of the Statutes of Empire Dream of Daniel 2:25-45.

Under liberalism’s regime, credit underwrote all human social interaction; and currencies of nation states characterized the fiat money system. Another word for credit is trust. It was trust in the monetary policies such as Global ZIRP, and monetary tools, such as POMO, and QE of the world central bankers that supported the fiat money system’s debt trade and currency carry trade investment schemes

Liberalism has moved far to the right since its origination with Calvin and Hayek and Mises.  Contemporary liberalism is defined as nation state banker economic and political rule, characterized by clientelism and regulatory capture crony capitalism, municipal governance European socialism, as well as pork and patronage Greek socialism.  Contemporary liberalism has been very Orwellian, and with Obamacare, has passed the tipping point, and has fallen to authoritarianism.

It was world central bank policies of investment choice and schemes of credit and carry trade investing, that produced liberalism’s peak democratic nation state sovereignty, peak banker seigniorage, and moral hazard based peak prosperity.

With Obamacare one is no longer free to choose, as the health care policy is now of mandated health care with schemes of state insurance exchanges, so that seigniorage comes Health and Human Services Secretary Kathleen Sebelius’s seigniorage, which establishes debt servitude, as those without health care are subsidized by those with better paying jobs.

Under authoritarianism’s regime, diktat underwrites all human social interaction; and the mandates of regional nannycrats characterizes the diktat money system.  It will be trust in the world central bankers monetary policies such as regional banking supervision, and monetary tools such as the Fixed Rate Full Allotment Reverse Repo Facility, as well as the mandates of  regional nannycrats in statist oversight of the factors of the production, commerce, banking and trade, that will support the diktat money system’s schemes of debt servitude and austerity

Mankind’s economic and political experience has been and always will be one of mandates. There will never ever be any libertarian experience of freedom, that is liberty, as those of the Mises persuasion, long for.

Fiat investment choice was the way of life under liberalism’s nation state banker regime. Liberalism was an experience in credit, where the mandates of bankers supported by democratic nation state rule, coupled with currency carry trade investment produces tremendous prosperity in the pursuit of risk assets, such as Social Media, SOCL, Small Cap Pure Growth Stocks, RZG, Small Cap Pure Value Stocks, RZV, and Resorts and Casinos, BJK, as well as nation state investment, EFA, such as Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP.

Now compliance with diktat is the way of life under authoritarianism’s beast regime. Authoritarianism is an experience in debt servitude, where the mandates of nannycrats in regional governance and totalitarian collectivism, produces crushing austerity in the pursuit of regional security, stability, and sustainability.

Please consider that national state democratic rule is history and the Maastricht Treaty is simply an epitaph on one of the tombstones of the bygone era of liberalism.

The Maastricht Treaty was a scheme of liberalism, designed by the Council on Foreign Relations and leading European federalists to destroy the sovereignty of the British Empire and to establish a United States of Europe with ever increasing democratic deficit.

France played a key role in the development of the great European experience.  Dexia Bank, a joint French and Belgian endeavor, underwrote French municipal debt which for years served as the basis for money market funds, sustaining their constant one dollar value.

French municipal government was a leading factor in the development and ongoing support for French National Wage law which, with other national wage laws, served as part of the bedrock of Europoean Socialism.   Of note, the framework for the edifice of European Socialism came from European Financial Institution, EUFN, securitization and trade in Italy, EWI, and Greece, GREK, Treasury debt.

Mankind’s economic and political experience has been and always will be fiat, that is one of mandate. For the longest time it was centered in the rule of kings and priests.  But with liberalism, the experience matured into one of resource in the rule of bankers and democratically elected officials, beginning with in 1913 with the creation of the Creature From Jekyll Island. But on October 23, 2013, economic and political experience pivoted into liberalism, with the death of the former monster and the rise of appointed nannycrats ruling in the beast regime of regional governance and totalitarian collectivism, with the joint European Parliament and ECB announcement of European wide banking supervision.

Austrian economists dream of sovereign individuals and true democratic states, existing with sound monetary systems, where free prices and liberty prevail. But dispensationalist economists such as myself, perceive that Jesus Christ is acting in dispensation, Ephesians, 1:10, that is in the administrative plan of God, to bring forth the fullness and completion of every age, era, epoch, and time period; specifically that Jesus Christ has produced Liberalism’s peak experience of democratic nation state sovereignty, peak banker seigniorage, and peak moral hazard based prosperity, and that He has ended the Fed, something that Ron Paul could not do, and has brought forth a new monster, that being the beast of regional banking.

The stock market, in turning from bull market to bear market, the week ending November 1, 2013, produced the following results:

Sectors trading lower this week included

Homebuilding, ITB, -4.0

European Financials, EUFN, -3.0

Social Media, SOCL -2.9

Biotechnology, IBB, -2.5

Small Cap Pure Growth, RZG, -2.5

Small Cap Pure Value, RZV, -1.7

Automobiles, CARZ, -1.7

Resorts and Casinos, BJK, -1.6

Paper Producers, WOOD, -1.4

Global Financials, IXG, -1.3

Yield Bearing Sectors trading lower this week included

Mortgage REITS, REM, -3.5

Residential REITS, REZ, -2.7

US Real Estate, IYR, -2.3

Small Cap Real Estate, ROOF, -2.1

Leveraged Buyouts,  PSP, -2.0

Nations trading lower this week included

Indonesia, IDX, -7.0

Turkey, TUR, -5.5

Argentina, ARGT, -5.0

Sweden, EWD, -4.2

South Africa, EZA, -3.9

Brazil Small Caps, EWZS, -3.8

Greece, GREK, -3.2

Chile, ECH, -3.1

Thailand, THD, -2.9

German Small Caps, GERJ, -2.9

Malaysia, EWM, -2.3

Switzerland, ESL, -2.2

US Small Caps, IWM, -2.1

Nation trading higher this week included

China, YAO, +2.8

India, SCIN, +2.3

Natural resource stocks trading lower this week included

Energy Production, XOP, -3.2, Small Cap Energy, PSCE, -2.4, on a lower price of Oil, USO, -3.4.

Silver Standard Resources, SSRI, -11.1, Silver Miners, SIL, -9.6, Gold Miners, GDX, -8.5, on a lower price of Silver, SLV, -2.9, and Gold, -2.7.