A report on sovereignty and seigniorage as of the week ending Friday May 17, 2013
1) … Last week, with the commencement of competitive currency devaluation on Friday May 10, 2013, the world’s economic and political paradigm pivoted from Liberalism to Authoritarianism.
Last week, as currency traders called the individual currencies such as the Australian Dollar, FXA, the Swiss Franc, FXF, the Indian Rupe, ICN, the Swedish Krona, FXS, the Euro, FXE, the British Pound Sterling, FXB, the Brazilian Real, BZF, the Canadian Dollar, FXC, the Japanese Yen, FXY, as well as the Emerging Market Currencies, CEW, lower, the world transitioned from the economic and political paradigm of Liberalism to Authoritarianism.
With the trade lower in not only in Aggregate Credit, AGG, but also highly indebted Electric Utilities, XLU, the world pivoted from the age of investment choice, to the age of diktat; the era of Inflationism has ceased, and the epoch of Destructionism commenced.
The coordinated intensification by the central banks throughout the world for the reduction of interest rates, established Global ZIRP, and as reported by Bento te writing 511 Interest cuts and sluggish economic growth, is causing a blow off stock market top in World Stocks, VT
Austrian Economist Robert Wenzel of Economic Policy Journal writes More for the Krugman file. Paul Krugman just endorsed the mad money printing that has been launched in Japan under the rule of the new Prime Minister Shinzo Abe.
The words of Austrian Economist Ludwig von Mises, return in deja vu warning, as he wrote In the eyes of cranks and demagogues, interest is a product of the sinister machinations of rugged exploiters. The age-old disapprobation of interest has been fully revived by modern interventionism. It clings to the dogma that it is one of the foremost duties of good government to lower the rate of interest as far as possible or to abolish it altogether. All present-day governments are fanatically committed to an easy money policy. And, it is Ludwig von Mises who provides also writes providing insight into the end of the crack up boom in Liberalism’s money, relating The boom can last only as long as the credit expansion progresses at an ever-accelerated pace. The boom comes to an end as soon as additional quantities of fiduciary media are no longer thrown upon the loan market. But it could not last forever even if inflation and credit expansion were to go on endlessly. It would then encounter the barriers which prevent the boundless expansion of circulation credit. It would lead to the crack-up boom and the breakdown of the whole monetary system.
Aggregate Credit, AGG, collapsed, the week ending May 10, 2013, as is seen in International Treasury Bonds, BWX, US Government Bonds, GOVT, most notably, the Zeroes, ZROZ, the 30 Year US Government Bond, EDF, and the 10 Year US Government Bond, TLT, Mortgage Backed Bonds, MBB, as well as Long Duration Corporate Bonds, BLV, Corporate Bonds, LQD, International Corporate Bonds, PICB, all falling lower as seen in their combined Google Finance chart.
In compliment of the currency traders, who have started a sell of the world currencies, the bond vigilantes have gained a nascent control of interest rates, as is seen in their call of the Interest Rate on the US Ten Year Note, ^TNX, higher to 1.95%, and a steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening.
The world central banks’ monetary policies of Global ZIRP, have finally started to turn “money good” investments, bad. A case in point is Australia’s Westpac Banking, WBK; in contrast, currency carry trade endowed, Lloyds Bank, LYG, rose strongly in a Global ZIRP grand finale finish. Failing of Global ZIRP, stimulated investors to derisk out of Nation Investment in Australia, EWA; in contrast Malaysia, EWM, rose strongly on Global ZIRP cool aid. And souring Global ZIRP, in particular the debt dynamics of Australia Dividends, AUSE, turned this investment lower, while investors pursued Pharmaceuticals, PJP, to its zenith. Another example of investors derisking on excessive credit policies, is the trade lower in Japanese Treasury Bonds, as seen in their inverse, JGBS, trading higher, in contrast Japan, EWJ, rose strongly.
It is sovereignty that provides order, begets seigniroage, that is moneyness, and prosperity. The rule of Liberalism’s democratic nation states provided a moral hazard, toxic credit, and global carry trade financed seigniorage, via the genius of the Milton Friedman Free To Choose fiat money system.
With Jesus Christ at the helm of the economy of God, as presented by the Apostle Paul in Ephesians 1:10, there will never ever be a free market, sound money system, as envisioned by the Libertarians, such as Lew Rockwell, Ron Paul, and Murray Rothbard, who Wikipedia relates advocated full reserve banking (“100 percent banking”) and a voluntary, nongovernmental gold standard
As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is
pivoting the world from Liberalism which featured the Banker’s Regime, Milton Friedman Free To Choose, fiat money system to Authoritarianism which features the Beasts’ Regime, regional governance, totalitarian collectivism, debt servitude, and austerity, diktat money system.
Diktat Money was born out of the Cyprus Bank Deposit Bailin and is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional leaders such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability. CNBC reports Eurogroup Chief says France must speed up reforms. Jeroen Dijsselbloem, the president of the 17-nation euro bloc of nations, said France needs to accelerate its reform program after the country was given a two-year extension to meet European Union budget-deficit targets. I comment, most assuredly, God has put, and is putting Liberalism’s leaders, such as Milton Friedman, Phil Gramm, and Robert Rubin, out to pasture, and bringing in Authoritarianism’s new leaders. Yes, new leaders for a new age.
The Eurozone has been and will continue to be the lynchpin in Christ’s Dispensation, Ephesians 1:10, to bring democracy and investment choice to completion, that is its fulfillment, and introduce regionalism and diktat to fruition. With three Greece Bailouts, and now the Cyprus Bank Deposit Bailin, diktat is coming to underwrite mankind’s economic and political activities, as Jesus Christ is bringing forth a New Regime, that is the Beast Regime of regional governance, totalitarian collectivism, and debt servitude, Revelation 13:1-4, which will be accompanied by the rise to power of a New Pharaoh, Revelation 13:5-10, and a New Monetary Pope, Revelation 13:11-18.
To accomplish His aims, He is unleashing the Four Horsemen of the Apocalypse. The First Horseman of the Apocalypse is the Rider on The White Horse, who has a bow, without any arrows to effect a bloodless global and economic coup d’etat, to transfer the baton of sovereignty from nation states to regional leaders and regional sovereign bodies such as the EU Finance Ministers and the ECB, Revelation 6:1-2.
This monster of authoritarian rule, is also seen in the prophet Daniel’s Statue of Empires, given in interpretation of King Nebuchadnezzar’s dream as presented in Daniel 2:25-45, where ten toes of iron diktat and clay democracy form out of the iron hegemony of a great nation, that is the US, and a company of nations, that is the British Empire, which whose domination was foretold in the Bethel, that is House of God, prophecy of Genesis 35:11.
2) … This week, the final component of fiat money, stock wealth, traded parabolic higher.
China, YAO, and Chinese Financials, CHIX, traded lower, as Bloomberg reports Chinas stocks fall most in 3 weeks on economic, an property Concerns. Russsia, RSX, and Russia Small Caps, ERUS, traded lower. Emerging Market Financials, EMFN, traded lower. Emerging Market Infrastructure, EMIF, traded lower as Bloomberg reports Tata Steel flags $1.6 billion writedown on weak Europe demand.
China, YAO, Russia, RSX, the Emerging Market Finanancials, EMFN, and the Emerging Market Infrasturucture, EMIF, as well as Australia, EWA, and Australia Dividends, AUSE, and New Zealand, ENZL, are reflecting that the world central bank’s monetary policies have crossed the rubicon of sound monetary policies allowing bond vigilantes to call interest rates higher globally commencing the destruction of credit, AGG. Another word for credit is trust. Under Liberalism, investors trusted in the world’s sovereign nation states, their central bank chiefs, such as Ben Bernanke, Mario Draghi, and Hiroki Kuroda/Shinzo Abe, and policies of Global ZIRP, to leverage up both equity and debt investments. That trust is beginning to evaporate now that currency traders are calling curencies lower, and the bond vigilantes are calling interest rates higher.
Liberalism’s moral hazard has finally come of age and is beginning to sour some investment trust. Debt deflation is underway destroying fiat wealth, beginning frist with Credit, AGG, and currences, such as the Australian Dollar, AUD, and the New Zealand Dollar, NZD.
The crack up boon in equities marks the end of Liberalism’s speculative leveraged investing, as seen in the closed end equity fund, CSQ, is running higher while closed end deb,t PTY, is running lower.
One can follow the destruction of fiat wealth by following the fifty common ETFs seen in this Finviz Screener.
Greek Crisis Net provides the Social Europe Jürgen Habermas article Democracy, solidarity and the European crisis. “The European Union owes its existence to the efforts of political elites who could count on the passive consent of their more or less indifferent populations as long as the peoples could regard the Union as also being in their economic interests, all things considered.”
Jürgen Habermas continues, “The Union has legitimized itself in the eyes of the citizens primarily through its outcomes and not much by the fact that it fulfilled the citizens’ political will”.
I comment that The Union is legitimate in that it owes its unity to the genius of Federalist leaders committed to pooled sovereignty; these include Herman van Rompuy, Jean-Claude Trichet, Angela Merkel, Jean-Claude Juncker, Olli Rehn, Jose Manuel Barroso, and Mario Draghi who provided LTRO 1, LTRO 2, and OMT. It is this mindset of pooled sovereignty that is the basis for “more Europe” diktat. Diktat Money was born out of the Cyprus Bank Deposit Bailin and is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, when austerity schemes are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional leaders such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability.
Jesus Christ, working in dispensation, that is the household administration for the completion and fulfillment of every age, era, epoch and time period, is pivoting the world out of Liberalism which featured the Banker’s Regime, Milton Friedman Free To Choose, fiat money system; and into Authoritarianism which features the Beasts’ Regime, regional governance, totalitarian collectivism, debt servitude, and austerity, diktat money system.
And Wikipedia relates Jürgen Habermas considers his major contribution to be the development of the concept and theory of communicative reason or communicative rationality, which distinguishes itself from the rationalist tradition, by locating rationality in structures of interpersonal linguistic communication rather than in the structure of the cosmos. This social theory advances the goals of human emancipation, while maintaining an inclusive universalist moral framework. This framework rests on the argument called universal pragmatics – that all speech acts have an inherent telos (the Greek word for “end”) — the goal of mutual understanding, and that human beings possess the communicative competence to bring about such understanding.
Habermas’s works resonate within the traditions of Kant and the Enlightenment and of democratic socialism through his emphasis on the potential for transforming the world and arriving at a more humane, just, and egalitarian society through the realization of the human potential for reason, in part through discourse ethics.
Within sociology, Habermas’s major contribution was the development of a comprehensive theory of societal evolution and modernization focusing on the difference between communicative rationality and rationalization on one hand and strategic / instrumental rationality and rationalization on the other. His defence of modernity and civil society has been a source of inspiration to others, and is considered a major philosophical alternative to the varieties of poststructuralism. He has also offered an influential analysis of late capitalism.
Habermas perceives the rationalization, humanization and democratization of society in terms of the institutionalization of the potential for rationality that is inherent in the communicative competence that is unique to the human species. Habermas contends that communicative competence has developed through the course of evolution, but in contemporary society it is often suppressed or weakened by the way in which major domains of social life, such as the market, the state, and organizations, have been given over to or taken over by strategic/instrumental rationality, so that the logic of the system supplants that of the lifeworld.
Habermas has expressed optimism about the possibility of the revival of the public sphere. He discerns a hope for the future where the representative democracy-reliant nation-state is replaced by a deliberative democracy-reliant political organism based on the equal rights and obligations of citizens. In such direct democracy-driven system, the activist public sphere is needed for debates on matters of public importance and as well as the mechanism for that discussion to affect the decision-making process.
Habermas is famous as a public intellectual as well as a scholar; most notably, in the 1980s he used the popular press to attack the German historians Ernst Nolte, Michael Stürmer, Klaus Hildebrand and Andreas Hillgruber. Habermas first expressed his views on the above-mentioned historians in the Die Zeit on July 11, 1986 in a feuilleton (opinion piece) entitled “A Kind of Settlement of Damages”. Habermas criticized Nolte, Hildebrand, Stürmer and Hillgruber for “apologistic” history writing in regard to the Nazi era, and for seeking to “close Germany’s opening to the West” that in Habermas’s view had existed since 1945. He argued that they had tried to detach Nazi rule and the Holocaust from the mainstream of German history, explain away Nazism as a reaction to Bolshevism, and partially rehabilitate the reputation of the Wehrmacht (German Army) during World War II. Habermas wrote that Stürmer was trying to create a “vicarious religion” in German history which, together with the work of Hillgruber, glorifying the last days of the German Army on the Eastern Front, was intended to serve as a “kind of NATO philosophy colored with German nationalism”
It addresses such important contemporary questions as these:
Does this decline of rationality signal an opportunity or a deep crisis for religion itself?
In this debate a recent shift of Habermas became evident — in particular, his rethinking of the public role of religion. Habermas writes as a “methodological atheist,” which means that when doing philosophy or social science, he presumes nothing about particular religious beliefs. Yet while writing from this perspective his evolving position towards the role of religion in society has led him to some challenging questions, and as a result conceding some ground in his dialogue with the Pope, that would seem to have consequences which further complicate the positions he holds about a communicative rational solution to the problems of modernity.
In an interview in 1999 Habermas stated that, “For the normative self-understanding of modernity, Christianity has functioned as more than just a precursor or catalyst. Universalistic egalitarianism, from which sprang the ideals of freedom and a collective life in solidarity, the autonomous conduct of life and emancipation, the individual morality of conscience, human rights and democracy, is the direct legacy of the Judaic ethic of justice and the Christian ethic of love. This legacy, substantially unchanged, has been the object of a continual critical reappropriation and reinterpretation. Up to this very day there is no alternative to it. And in light of the current challenges of a post-national constellation, we must draw sustenance now, as in the past, from this substance. Everything else is idle postmodern talk.”
Habermas talks about the emergence of “post-secular societies” and argues that tolerance is a two-way street: secular people need to tolerate the role of religious people in the public square and vice versa1]
I comment that Isms they are important for they define a person and establish a life view.
An inquiring mind asks, what is an ism? An ism is defined as a life process, with an inherent authority, that creates a state of being and claims lives. There be many isms; each is based upon an idea that is in short supply, and work through inherent authority, to produce a identity and experience which claims the life of an individual.
Beginning in 1913, with the creation of the Creature from Jekyll Island up until the First Greek Bailout in May of 2010, Liberalism and its principal investment choice ruled decisively as the world’s paradigm for economic and political experience. But increasingly Authoritarianism with its diktat is rising out of the Mediterranean nation states of Portugal, Italy, Greece, and Spain, that is the PIGS, to be the ruling architecture for mankind’s political and economic experience.
Liberalism’s dynamo of investment choice, is winding down capitalism, European socialism, and Greek Socialism, on the exhaustion of the world central bank’s monetary authority to grow corporate profits and stimulate global trade. Authoritarianism’s dynamo of diktat, is powering up regionalism, as European leaders work to provide for regional security, stability and sustainability.
Dispensationalism is the concept, that there is a God, that He has a Son, Jesus Christ, who has universal authority, that He supervises all authority in heaven and in earth, and is working in dispensation, that is the administrative plan of God, for the fullness and completion of every epoch, era and time period, Ephesians 1:10, and is producing the Element of Life, Colossians 3:1-4, in people, thereby creating saints, which stand out as His elect, that is His chosen, from the aints, and that He, Jesus Christ, is dispensing himself into the believer in Christ, as one’s All Inclusive Life Experience, Colossians 3:11.
The dispensationalist view is different, from all other life views. The dispensationalist view comes out of sound bible doctrine, and believes and trusts in Christ, and responds daily to God’s will. All other views come from the fiat, that is the mandate, of will worship in philosophy or religion, Colossians 2:23. For example the libertarian view, is that one is a sovereign individual, and that one seeks liberty, specifically the use of personal property free from government interference in a gold based money system. Libertarianism claims lives establishing them as Free Individuals. This contrasts with the Dispensationalist view that only God is sovereign, and that man’s will died in the garden experience with Adam and Eve, and that Christ alone makes one free, and that He, has a group of Free People, known as the Church, that is the called out ones.
Authors and speakers on dispensationalism include,
Witness Lee, The Recovery Version of the Bible, and The Economy of God
John McArthur, The John McArthur Study Bible
From the Monergism website, Numerous Audio and Book Resources on the Book of Revelation
Wayne Grudem, The Gift of Prophecy in the New Testament and Today
Richard Sibbes, A Description of Christ
RC Sproul, The Reformation Study Bible
Matthew Henry, Exposition of the Old and New Testaments, and Complete Commentary,
John Gill, The Works of John Gill
John Bunyan, The Pilgrim’s Progress
Ryan Jankowski and Benjamin C. Richards, Reformed Audio Sermons
The EU owes its existence to Jesus Christ, who in dispensation, that is the economic and political oversight of God, Ephesians 1:10, developed the Eurozone as a currency union, to mature and complete socialism as a moral hazard nation state debt based and currency carry trade based economic and political experience, as means of producing Liberalism’s Peak Sovereignty and Peak Seigniroage. that is Peak Moneyness; and specifically to produce Greek socialism as the most extreme form of non competitive and clientelism pork and privilege economic system on planet earth.
Out of the Mediterranean Sea sovereign and debt currency crisis, that is out of the PIGS profligacy, Jesus Christ will install a One Euro Government, that is a European Superstate with headquarters in Brussels and Berlin, Revelation 13:1-4, which will establish a regional lord, Revelation 13:5-10, a monetary pope, Revelation 13:11-18, and monetary cardinals. Nannycrats from banking, government, and industry will emerge to form councils of wise men, that is statist public private partnerships, to oversee regional factors of production and regional economic activity.
Benton te writes providing economic reality. Parallel Universe: Booming German and French stocks as economies stagnate. In a the world where central bankers have become demigods, the disconnection between the financial markets and the real economy have increasingly become evident.
Liberalism was an economic and political experience that was fathered by the great Milton Friedman, whose Banker and democratic nation state, free to choose, floating currency system, was the backbone of the fiat money system, which featured investment choice.
Currencies are no longer floating, they are sinking, and interest rates are up across the board on higher Treasury interest rates, most notably in Japan. A see-saw destruction of fiat wealth is now underway. Equities, will soon be pulled lower by debt deflation, that is by currency deflation. And all fiat wealth, Credit, AGG, Currencies, DBV, CEW, and Equities, VT, will be trading lower, as Friday May 10, 2013, was the pivot point from Liberalism to Authoritarianism, with the rise higher in the interest rate on the 10 Year US Note, ^TNX, and the dismissal announcement of 15,500 Greek state workers.
The US Dollar $USD, UUP, rose, 1.8% to close at 84.35, as individual currencies, traded lower again this week on competitive currency devaluation; FXA, -2.7%, FXC, -1.7%, FXF, -1.6%, FXY, -1.6%, FXS, -1.2%, FXB, -1.2%, FXE, -1.2%, and BZF, -0.3%.
Gold, GLD, is a both a commodity, and a metal. The spot price of gold, $GOLD, fell 6.1% lower to close at $1,350. In Authoritarianism’s epoch of Destructionism, the physical possession of gold, either in bullion form or in Internet Trading Vaults, such as Bullion Vault will be the sold means of preserving wealth. Gold Miners, GDX, -11.5%, GDXJ, 14.-2%, SIL, -11.1%, SILJ, -8.0%, and SSRI, -9.7%.and Uranium Miners, URA, -5.7%, Industrial Miners, PICK, -2.8, Coal Miners, KOL, -2.3
Implode-O-Meter write Russia’s plan for the BRICS to dismantle the dollar system
GoldSilver Works relates A new chapter in currency wars – Russia joins the games
Washinton Post reports In global currency war, a new front opens in the South Pacific
Mike Mish Shedlock writes Breakout in Japanese 10-Year Bond Yield. All week, yields on benchmark 10-year Japanese government bonds (JGBs) have been rising, causing their value to fall, and their inverse ETF, JGBS, to rise. I comment that Japan’s public debt stands at $10 trillion, or 245pc of GDP; and its life insurers and pension funds are loaded to the gills with these bonds. No developed country has ever before recorded such a high level of public debt.
Bloomerg reports Economic production falls as US feels global weakness
MarketWatch reports U.S. jobless claims jump to six-week high
Zero Hedge reports Initial claims soar, housing starts plunge, CPI below expectations
Doug Noland writes Financial Euphoria. The perception that central bankers will ensure ongoing asset inflation is an unprecedented global phenomenon. The collapse in yields and risk premiums in debt markets across the globe is unlike anything I’ve ever witnessed or studied historically. These days, asset inflation, speculation and Bubbles prevail virtually everywhere. Moreover, the gulfs between inflating assets and weakening economic fundamentals seemingly widen everywhere, as Financial Euphoria engulfs debt and equity securities markets around the world. As noted this week by the great market watcher and historian Art Cashin: This market is unlike anything we’ve ever experienced.
Global sectors rose with the most speculative and central bank financed countries rising the most.
World Stocks, VT, 1.2%
US Stocks, VTI, 2.1
S&P 500, SPY, 2.1
Asia, EPP, -1.9
Europe, VGK, –
Japan, EWJ, 3.0
Hedges Japan, DXJ, 4.9
Greece, GREK, 17.8
National Bank of Greece, NBG, soared 82.4% parabolically higher, taking Greece, GREK, 17.8% higher, on a tide of investment coming from hedge funds which in turn has been based upon a rise in the value of Greek Treasury debt.
FT reports Top hedge funds bet on Greek banks Some of the world’s leading hedge funds are pouring money into the Greek banking sector in expectation of huge potential returns, even as the country struggles to right its economy in the face of deep government spending cuts. Farallon Capital, York Capital Management, QVT Financial and Dromeus are among hedge funds that are set to participate in the recapitalisation of the country’s banks. The hedge funds are among the largest institutions involved in a €550m share issue from Alpha Bank, Greece’s second-largest lender, set for completion in mid June, said people familiar with the plans. Others understood to be looking at bank investments include Third Point, which last year made $500m by snapping up cheap Greek government bonds and CQS, Europe’s largest credit hedge fund. Farallon, York, CQS and Third Point declined to comment. QVT did not respond to requests for comment on Friday. Some hedge fund managers believe a wager on the country’s banks could prove even more lucrative than other bets on the recovery of Greek markets.
WSJ reports Greek government bonds have been on a tear since June. The latest sign is that hedge funds and private banks are seeking out bonds issued by Greek companies, which are tapping credit markets in increasing numbers. Among the buyers are York Capital Management, Dromeus Capital, LNG Capital and CQS LLP. Third Point LLC, run by Daniel Loeb, is starting a hedge fund focused on buying Greek assets.
Emerging Marktet Details, EMFN, -1.1 and EMMT, -4.1 and EMIF, -1.1
Emerging Markets, EEM, -0.3 with EPU, -5.6, ECH, -3.5, EWW, -2.1,
Gabriela Lopez of Reuters reports Struggling with slowing home sales and a lack of liquidity, Mexico’s top three homebuilders may have to seek bankruptcy protection if they fail to reach an agreement with creditors in the short term. Home sales at Geo, Urbi and Homex plummeted in the first quarter, exacerbating the companies’ long-running cash shortfalls and, in some cases, leading them to miss payments on debt and derivatives. Analysts are skeptical that restructuring efforts will work, arguing that at least in the cases of Geo and Urbi, the companies will likely have to rely on protection under Mexico’s version of U.S. Chapter 11, known as Concurso Mercantil.
Brendan Case of Bloomberg reports Empresas ICA SAB’s bond plunge is showing that Mexican homebuilders aren’t the only construction companies losing favor in the country’s debt market because of President Enrique Pena Nieto’s policies. ICA’s $500 million of notes due in 2021 have tumbled 9.37 cents in the past two months as the company reported quarterly earnings that fell short of analysts’ estimates, pushing up yields 1.59 percentage points to 8.96 percent… Bond buyers are souring on ICA, Mexico’s biggest construction company, after it said revenue from building projects dropped 41% in the first quarter.
Global trade sectors rose
Global Industrial Production, FXR, 2.7%,
Industrials, XLI, 2.3%,
Small Cap Industrials, PSCI, 2.5%,
Transports, XTN, 2.8%
Engineering Design Build FLM, 1.3%
Automobiles, CARZ, 5.2
Paper Production, WOOD, 1.0
Networking, IGN, 3.2
Software, IGV, 2.3
Semiconductors, XSD, 1.6
Technical Leaders, PDP, 1.9
Design Build, PKB, 2.5
Financial sectors rose
Financials, IXG, 1.7
Regional Banking, KRE, 3.1
Too Big To Fail Banks, RWW, 3.8
Chines Financials, CHIX, -2.5
Emerging Market Financials, EMFN, -1.1
Far East Finaancials, FEFN, -1.8
Investmet Bankers, KCE, 4.8
JP Morgan, JPM, 6.8
Stock Brokers, IAI, 4.2
Lloyds Group, LYG, 6.1
IX Corp, IX, 7.7
Nomura Investments, NMR, 9.2; its rise reflects that it is a beneficiary of Prime Minister Shinzo Abe’s stimulus policies.
National Bank of Greece, NBG, 82.4
Consumer sectors rose
Home Building, ITB, 1.7
Defensive Secor, DEF, 1.0
Global Consumer Discretionary, RXI, 2.7
Consumer Services, IYC, 1.1
Networking, FDN, 3.2
Consumer Staples, KXI, 1.0
Retail, XRT, 1.7
Energy sectors rose
Energy Service, OIH, 1.4 and IEZ, 1.5
Energy, XOP, 2.8 and PSCE, 1.3
Risk Assets rose
Aerospace, PPA, 3.1
Semiconductors, XSD, 1.6
Home Building, ITB, 1.7
Clean Energy, PBD, 5.3
Small Cap Value, RZV, 2.8
Small Cap Growth, RZG, 1.8
Biotechnology, IBB, 1.0
Automobiles, CARZ, 5.2
Spin Offs, CSD, 3.5
Yield bearing sectors rose
Premium Reits, KBWY, 2.5
Global Real Estate, DRW, –
Residential REITS, REZ, 3.0
Small Cap Real Estate, ROOF, 1.0
Dividends Exluding Financials, DTN, 2.0
Leveraged Buyouts, PSP, 1.0
Global Small Cap Dividend, DLS, -1.0
Shipping, SEA, 1.1
Energy Partnerships, AMJ, -1.0
3) … As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is establishing a new order consisting of fifteen New Things. These New things establish the Dispensationalist’s Creed which is based upon Ephesians 1:10, the biblical revelation that Jesus Christ, is operating in dispensation, that is the household management plan of God to complete and fulfill all things in every age, epoch, era and time period
The New Things that come by the Economy of God are:
1) a New Paradigm, (from liberalism to authoritarianism),
2) a New Sovereignty, (from the Milton Friedman Free to Choose floating currency Banker Regime of democratic nation states, to the Nannycrat Diktat Beast Regime of regional governance),
3) a New Seigniorage, (from the seigniorage of investment choice, to the seigniorage of diktat),
4) New Dynamos (from the dynamos of corporate profit and global growth, to the dynamos of regional security, stability and sustainability),
5) a New Trust (from trust in bankers, carry trade investing and credit, in particular Treasury debt, to trust in nannycrats, totalitarian collectivism, public private partnerships and debt servitude),
6) a New Age, (from the age of investment choice, to the age of diktat),
7) New Economic Action (from inflationism, to destructionism),
8) New Schemes (from free trade agreements, financial deregulation, leveraged buyouts, to regional framework agreements, new taxes, austerity measures, bank deposit bailins, and capital controls)
9) New Economic Experience (from wealth and prosperity, to poverty and austerity),
10) a New Economy (from crony capitalism, European Socialism, and Greek socialism, to regionalism),
11) New Leaders (from Milton Friedman, Phil Gramm, and Robert Rubin, to Angela Merkel, Jörg Asmussen, Klaus Regling, Werner Hoyer, Olli Rehn, Jens Weidmann, Jeroen Dijsselbloem, and Michel Barnierm),
12) a New Religion (from religions and philosophies based upon the worship of one’s own will, to a mandatory one world religion consisting of emperor worship, and for the elect, faith in Christ),
13) a New Money System, (from the fiat money system, to the diktat money system).
14) a new Reality, (from human experience, to the experience of the divine nature; where the elect are called to live in godliness, 2 Peter 1:6, mainly manifest in the fruits of the spirit, and experience Christ as one’s life, Colossians 3:4, and one’s all inclusive life experience, Colossians 3:11. They keep the word of His endurance, and shrink not from His Name, and thereby live in His presence and authority. They live a live of biblical seperation. They practice the New Man in Christ, mortifying that is putting to death the carnal desires that come up through temptation, so as to prevent the pain and dislocation that comes from stumbling and falling in sin. And live a life of ethical regard; for example, they pursue peace with all men, defraud no one, and do not make merchandise out of others)..
15) a new Way (from carnality and iniquity to virtue and ethics)
Liberalism began on November 22, 1910, when a handful of senators and bankers left Hoboken, New Jersey on a train to design the creature from Jekyll Island, that is what would become the US Federal in 1913; Wikipedia relates these included Senator Nelson Aldrich, Senator A.P. Andrew, Paul Warburg, Frank A. Vanderlip, Henry P. Davison, Charles D. Norton, and Benjamin Strong.
David Ben-Gurion led Israel in the 1948 war which the Israelis referred to as the War of Independence and thus Israel expanded the territory awarded by the British Empire under the Balfour Declaration of November 2, 1917, to become a nation state. His nation craft was one of many events that diminished the global hegemonic power of the British Empire. About.com Geography relates that in 1954, Egypt and the UK signed a seven year contract that resulted in the withdrawal of British forces from the canal area and allowed Egypt to take control of the former British installations. The handing back of Hong Kong to China on July 1, 1997, closed the final chapter on the British Empire as it was the last significant colony.
Thus the first of the two global hegemonic powers to fall, as seen in bible prophecy of King Nebuchadnezzar’s Statue of Empires, Daniel 2:25-45. was the British Empire. The other take names and kick-ass, commerce, and debt based global hegemonic power, is the United States.
This second iron leg of prophesied global hegemonic power, rose to preeminence beginning in 1971 when Milton Friedman proposed the Free To Choose Floating Currency Banker Regime.
Liberalism’s Banker Regime was embraced by President Nixon, who took the US off the gold standard and was able to fund the Vietnam War. In 1997, neoconservative writers and pundits advocated aggressive US foreign policies and rallied support for American global leadership via the Project for the New American Century, PANC, which according to William Rivers Pitt writing in Information Clearing House, resulted in the organization of the US military into regions and a Blood for Oil War in Iraq. Al Jazeera reports that dozens of US and allied forces present a globe-spanning American archipelago of bases. The goal of the Free To Choose Floating Currency Banker Regime was never ever to promote Freedom, but rather to ground, that is make Democracy firm, that is make the currencies of democratic republics reliable for nation investment. Democracy was strengthened by Free Trade Agreements, cooked up by think tanks, which opened the door for corporations to grow profits and expand global growth and trade.
The world central banks’ monetary policies of Cordinated ZIRP and Easing, known as Global ZIRP, facilitated Inflationism to the point where Nation Investment, EFA, Small Cap Nation Investment, IFSM, has risen to new highs this week reflecting Peak Democracy,.which gave seigniroage, that is moneyness, to Global Industrial Producers, FXR, producing Peak Global Industrialization seen in Induatrials, XLI, Small Cap Industrials, PSCI, as well as Transportation,XTN, topping out.
Liberalism’s Banker Regime was greatly empowered by the the repeal of the Glass Steagall Act, spearheaded by Representative Jim Leach, Senator Phil Gramm, and Robert Rubin.
Scott Grannis in Come and get it, communicates that Liberalism featured Free Money. With the deductibility of mortgage interest and inflation, a 30-yr fixed-rate mortgage is essentially free money. The CPI has averaged about 2.5% for the past 15 years, and most folks with a jumbo loan should be able to deduct about 35% of the interest. The after-tax interest cost would be about 2.5%, and subtracting inflation of 2.5% gives you zero.
Through trust in monetary expansion policies of the world central banks, the world stands at Peak US Hegemony, as Liberalism’s Banker Regime has succeeded in coining Peak Money, that is Peak Wealth, measured by World Stocks, VT, rising to a new high. The crack up boom, which came on rising credit of all types, has reached its zenith, while, the world has passed through Peak Credit beginning in May, 2013, with Aggregate Credit, AGG, trading lower.
This the Golden Age of America. The online dictionary informs, a time period when some activity or skill was at its peak; and the Oxford dictionary defines, an idyllic, often imaginary past time of peace, prosperity, and happiness. the period when a specified art, skill, or activity is at its peak.
Sovereignty that begets seigniorage. Liberalism through the monetary policies of the world central banks has succeed in producing Peak Sovereignty and Peak Seigniorage.
Doug Noland reports weekly on sovereign wealth which has continued on to a new high stating: Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg’s Alex Tanzi – were up $656bn y-o-y, or 6.3%, to a record $11.126 TN. Over two years, reserves were $1.310 TN higher, for 13% growth.
And Mr. Noland reports weekly on discretonary US Wealth which has continued on to a new high stating: M2 (narrow) “money” supply increased $5.2bn to a record $10.540 TN. “Narrow money” expanded 6.6% ($651bn) over the past year
Authoritarianism’s fathers or starters are coming of age and include Angela Merkel and Nicolas Sarkozy. Spiegel reports have called for a region of true European economic government.
The Telegraph reports that EU Finance Ministers Jeroen Dijsselbloem, Michel Barnier, and Olli Rehn spearheaded the Cyprus Bank Deposit Bailin.
Daily Silver News reports Draghi orders Cyprus to sell all gold reserves to cover shortfall in Emergency Loan Assistance by the ECB. relating that the ECB chief said “the government must abide by the central bank’s handling of the gold stock, since it is independent from political control under European rules.”
Mike Mish Shedlock writes of Cyprus Band Deposit Bailin Liar, liar, pants on fire; spoon-fed demands by the number. About that Cyprus shortfall, As I expected, it’s a lot bigger than the Troika expected, assuming you believe the Troika was telling the truth about the size of the needed bailout.
The Guardian reports Cyprus forced to find extra €6bn for bailout, leaked analysis shows. Cypriot politicians have reacted with fury to news that the crisis-hit country will be forced to find an extra €6bn (£5bn) to contribute to its own bailout, much of which is expected to come from savers at its struggling banks.
A leaked draft of the updated rescue plan, which emerged late on Wednesday night, revealed that the total bill for the bailout has risen to €23bn, from an original estimate of €17bn, less than a month after the deal was agreed – and the entire extra cost will be imposed on Nicosia.
Visiting Athens, the Cypriot parliament’s president, Yannakis Omirou, said the tiny island nation had been “served poison” by its EU partners.
The €23bn overall bill is larger than an entire year’s output from the Cypriot economy.
Cyprus hammered into submission.
Step by step, Cyprus has been hammed into submission. Its economy has been ruined for at least a decade.
Recall the original deal was €13bn. It is now €23bn.
Recall that Cyprus Popular Bank, Laiki, was supposed to have 30% losses. Guess what?
Spoon-fed demands by the number
Laiki 100% wiped out
Losses exceed the size of the entire Cypriot economy
Cyprus would have to sell its gold
The Cypriot Central Bank would lose its independence
Cyprus will go into an economic depression for a decade to pay for the “bailout”
Cyprus has been spoon-fed a pack of escalating demands by the Troika.
Had Cyprus initially understood the totality of what was going to happen, Cyprus may have done the right thing which should now be obvious: Tell the Troika to go to hell, default, exit the eurozone. It’s still not too late, but Cyprus needs to do so before it sells its gold.
CNBC relates El-Erian: Cyprus Rescue goes from bad to worse.
Christoph Dreier of WSWS relates The Cypriot bailout marks a new stage in the euro crisis. Fifty-five years after the founding of the European Economic Community, the project of unifying Europe on a capitalist basis has been irrevocably shattered by the global economic crisis. And Robert Stevens of WSWS relates European Union imposes austerity bailout on Cyprus. The terms dictated to Cyprus by the European Union in exchange for a bailout are predicated on the destruction of the pay and conditions of the working class.
The Telegraph reports Cyprus faces economic meltdown as EU-IMF refuses extra aid:.Cyprus must take on an extra €5.5bn in the cost of its bail-out, a sum equivalent to a third of the island’s annual GDP, without any additional help from the European Union and IMF.
Mark John and Ingrid Melander of Reuters report on May 16, 2013, France’s Hollande urges Euro Zone Government. At a press conference marking French President Francois Hollande’s first year in office, the powerful head of the large EU state called for an economic government for the euro zone. It would have its own budget, the right to borrow, a harmonized tax system, and a full-time president. Hollande said a future euro zone economic government would debate the main political and economic decisions to be taken by member states, harmonize national fiscal and welfare policies, and launch a battle against tax fraud.
This as Henry Samuel and Bruno Waterfield of the Telegrpah report France has fallen spectacularly out of love with the European Union and is now more Eurosceptic than Britain, a new study has found. The European project ‘now stands in disrepute across much of Europe’, concluded the Pew Research Centre, which described the EU as ‘the sick man of Europe’. Overall support for the EU has fallen among the French from 60% in 2012 to 45% in 2013. Germany is now the only country where a majority backs granting more power to Brussels. No European country, however, has become more swiftly ‘dispirited and disillusioned’ than France, the study of eight EU countries found. As economic gloom grips the country under Socialist president François Hollande, that support has plummeted to just 41%, making the French less in favour of the EU than the British, on 43%. ‘The stereotypical view is of Eurosceptics in Britain while we don’t think about Eurosceptics in France except for the (far-Right) Le Pen phenomenon,’ Bruce Stokes of Pew Research told the Daily Telegraph. ‘Perhaps we should take Euroscepticism in France more seriously than we have in the past,’ he said.
The Luminaries of Authoritarians are providing the few scarce ideas that are powering up the end times Beast Regime of regionalism, totalitarianism, and debt servitude, as foretold in bible prophecy of Revelation 13:-14. This monster is rising from EU sovereign default and from the banking crisis of the PIGS, that is the Mediterranean Sea nations of Portugal, Italy, Greece, and Spain.
It is the debt issuance, run away fiscal spending, national wage laws, anti-competitive legislation, and clientelism of European socialism and Greek socialism, as well as the excesses of the world central banks’ monetary policies that have crossed the rubicon of sound monetary policy, that has made “money good” investment bad, and will result in the collapse of the second iron leg of global hegemony, that being the US, and will result in the rise of the Ten Toed Kingdom of regional governance as seen in King Nebuchadnezzar’s Statue of Empires, Daniel 2:25-45.
Liberalism featured the fiat money system where sovereign nation states gave the seigniorage, that is moneyness, of investment choice to credit and currencies, producing a currency cary trade, toxic debt, and moral hazaad based prosperity.
Authoritarianism features the diktat money system where sovereign regional leaders and sovereign regional bodies provide the seigniorage of diktat, where mandates serve as currency, money and power, producing debt servitude and austerity.
Wealth can only be preserved by investing in and taking possession of gold, either in bullion form or by trading on Internet vaults such as Bullion Vault.
Since May of 2010, beginning with the announcement of Greek Bailout I, under the auspices of Herman Van Rompuy, I’ve been writing proclaiming the increase of pooled sovereignty; and now with the stocks rising to all time highs on investment mania, and with currencies trading lower since May 10, 2013, and credit trading lower since May 1, 2013, the sovereignty of democratic nation states has finally peaked; and Liberalism is genuinly and firmly passing from Liberalism to Auhoritarianism, at the hands of Jesus Christ working in dispensation, that is the economic and political administrative plan of God, Ephesians 1:10.
Many fail to appreciate the genius of Jesus Christ terminating the era of ivnestment choice and introducing the age of diktat; these include
European Socialists, such as the French and their president Hollande, a career socialist politician, who have eperienced agricultral production and distribution, and who have seen French real estate prices soar due in large part to the stability of French treasury debt and who have benefited from the sale of French municipal debt purchased by US Money Market Funds.
Trotskyists who believe that soicalism has been ursurped by capitalists.
Anarcho capitalists who are irate because of coordinated govenrment internvention in producing Global ZRIP
Northern bloc fiscally Dutch and Finnish socialists who see their economic gains threatened by Latin bloc profligacy.
Jesus Christ being sovereign in all things and over all thing, Colossians 1:16-18, produced Peak Prosperity through US Dollar Hegemony of the USA financial and military empire as foretold in the Statue of Empire bible prophecy of Daniel 2:25-45, with the Israel prophecy of a great nation, that being the US, and a compnay of nations, that being the British Empire, with its financial center of the City of London, of Genesis 35:9-11.
Through the sovereigny of the Banker Milton Freidman Free to Choose Floating Currenecy Regime and the seigniorage of its financial system mint, that being the Too Big to Fail Banks, RWW, such as BAC, the World Money Center Banks, such as HBC, LYG, WBK, IRE, NBG, IBN, UBS, Regional Banks, KRE, such as RF, Global Creditors, such as V, IX, Asset Managers, such as BLK, Investment Bankers, KCE, such as JPM, Stock Brokers, IAI, such as NMR, TROW, Stock Exchanges such as CBOE, ICE, NYX, NYX, Mortgage REITS, such as IVR, ACAS, Residential REITS, such as SUN, SNH, Diversified REITS, such as WFC, Industrial REITS, such as CUBE, Office REITS such as SFI, STD, LSE, COR, and Real Estate Investors, such as BX, Jesus Christ, has produced Peak Stock Wealth, VT, Peak Nation Investment, EFA, Peak Small Cap Nation Investment, IFSM, Peak Industrial Production, FXR, and Peak US Large Cap Stock Wealth, seen in the chart of the S&P 500, $SPX, SPY, closing at 1,666, up 2.1% for the week.
An inquiring mind asks, Emulate Ron Paul, as the Daily Bell suggests, or imitate the Apostle Paul, as Scripture suggests?
Jesus Christ will oversee the destruction of all existing economic and political life as the pivots the world out of Liberalism and into Authoritarianism, in order that one might come to see Him as the Light of the world, John 8:12, and trust in Him for Life, Colossians 3:3-4, and as one’s All Inclusive Life Experience, Colossians 3:11.
If you are looking for Freedom, that is the right to use personal property and intellectual property without state intervention, I must tell you that you are wasting your time, as Jesus Christ never, ever intended that be a Free People anywhere outside of The Church, that is the collection of believers in Him, Jesus Christ, Savior and Lord God Almighty.
Liberalism featured a Free To Choose Floating Currency Baker Regime that awarded fantastic investment prosperity through the facilitation of moral hazard. Risk Assets such as PSP, PBD, IBB, FPX, BJK, CSD, performed quite well on the World Central Banks’ Cool Aid of Toxic Debt, which included Distressed Investments FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, as well as their Cool Aid of Carry Trade Investing, such as the EUR/JPY, seen in the chart of FXE:FXY, which came on the purchase of Major World Currencies, DBV, Emerging Market Currencies, CEW, and sell of the Japanese Yen, FXY.
Now the individual currencies are falling in value, on competitive currency devaluation, terminating the Banker Regime, on debt deflation, as the bond vigilantes, have been calling interest rates higher globally since early May 2013, as the monetary policies of the world central banks have crossed the rubicon of sound monetary policy and have made “money good” investments bad.
The Eurozone has been and will continue to be the lynchpin in Christ’s Dispensation, Ephesians 1:10, to bring Liberalism’s democracy and investment choice to completion, that is its fulfillment; these have come to an end with the Cyprus Bank Deposit Bailin.
Now diktat is coming to underwrite mankind’s economic and political activities, as Jesus Christ is bringing forth a New Regime, that is the Beast Regime of Regional Governance, Totalitarian Collectivism, and Debt Servitude, Revelation 13:1-4, which will be accompanied by the rise to power of a New Pharaoh, Revelation 13:5-10, and a New Monetary Pope, Revelation 13:11-18.
To accomplish His aims, Juseus Christ is unleashing the Four Horsemen of the Apocalypse, the First Horseman of the Apocalypse is the Rider on The White Horse, who has a bow, without any arrows to effect a bloodless global and economic coup d’etat, to transfer the baton of sovereignty from nation states to regional leaders and regional sovereign bodies such as the EU Finance Ministers and the ECB, Revelation 6:1-2.
Now under Authoritarianism, seigniorage, that is moneyness, will no longer come from the talking heads of the world central bank; but rather from regional sovereign leaders and regional sovereign bodies, such as the ECB.