Archive for August, 2011

Did The Kingdom Come In 1914 As The Jehovah Witnesses Suggest Or Did It Come On Pentecost?

August 31, 2011

ThePreachersFiles relates that the Kingdom of Jesus Christ on Pentecost

Jesus Spoke of the Kingdom

“From that time Jesus began to preach, and to say, Repent: for the kingdom of heaven is at hand” (Mat. 4:17). The kingdom was yet future at this point.

“Thy kingdom come. Thy will be done in earth, as it is in heaven” (Mat. 6:10). It was yet future at this point as well, as this model prayer says, “Thy kingdom come.”

“And he said unto them, Verily I say unto you, That there be some of them that stand here, which shall not taste of death, till they have seen the kingdom of God come with power” (Mark 9:1). Notice the force of this statement in regards to the establishment of the kingdom. Some of those people to whom Christ said this would not die “till they have seen the kingdom of God come with power.” This leaves only 2 options: 1) The kingdom has come with power. 2) The kingdom has not come with power and some of those people to whom Jesus said that statement are still alive. There is not a third option.

“And I say also unto thee, That thou art Peter, and upon this rock I will build my church; and the gates of hell shall not prevail against it. And I will give unto thee the keys of the kingdom of heaven: and whatsoever thou shalt bind on earth shall be bound in heaven: and whatsoever thou shalt loose on earth shall be loosed in heaven” (Mat. 16:18-19). Jesus said He would build His church, and then He said to Peter, “I will give unto thee the keys of the kingdom of heaven:”.

Acts 2 and the Establishment of the Kingdom

The apostles were “filled with the Holy Ghost,” (1-4). Also notice Jesus told His apostles, “And, behold, I send the promise of my Father upon you: but tarry ye in the city of Jerusalem, until ye be endued with power from on high” (Luke 24:49), and He also told them, “But ye shall receive power, after that the Holy Ghost is come upon you: and ye shall be witnesses unto me both in Jerusalem, and in all Judaea, and in Samaria, and unto the uttermost part of the earth” (Acts 1:8). According to Mark 9:1, the kingdom would “come with power.”
This was at Jerusalem (5).
There were men “out of every nation under heaven” (5).
Peter said “But this is that which was spoken by the prophet Joel;” so we do not have to guess about it. Joel prophesied about this day (16-21).
David is “both dead and buried,” (29).
Christ was raised up “to sit on his throne;” (30-36).
This is the day the kingdom came with power.

European Financials Rise As Short Selling Ban Continues In Effect And Despite Christine Lagarde Cites Need For Their Recapitalization … A Failure Of Moneyness Is Imminent … Under Neoauthoritarianism Moneyness Will Come By The Diktat Of A European Chancellor And His Banker

August 31, 2011

Report on the birth pains of the Ten Toed Kingdom of Regional Economic Government for August 31, 2011.

1) … European Financials rose as they were relieved of short selling pressure. 
European Financials, EUFN, rose  today, taking world stocks, ACWI, 0.9% and world small cap stocks, VSS, 1.9% and European shares, VGK, 2.4% higher. Stocks rising included FAA, 1.5%, ALUM, 2.1%, CARZ, 2.3%, COPX, 2.6%, EMMT, 2.8%, CHIM, 3.4%.

The New York Times reports Expanded euro bailout fund clears hurdle in Germany but Wall Street Journal reports Rescue fund hits snags in Germany and Finland. German Chancellor Angela Merkel is weighing whether to yield to a demand by some lawmakers for a bigger voice in future debt bailouts as a condition to win her party’s approval for a stronger euro-zone rescue fund, as a parliamentary vote on the issue was delayed a week. Granting the German parliament the right to approve or reject future bailouts could trigger similar demands from parliaments across the euro zone, whose lawmakers are closely observing Berlin’s actions. That could lead to further delays in the EU’s approval for the Greek rescue.

CNBC and Reuters reports Three-month interbank dollar lending rates also rose again on Tuesday to their highest in over a year. With rising interbank borrowing costs, futures contracts have also been implying three-month loan rates could rise as high as 60 basis points in December. This suggests nerves that funding pressures could increase over the new year period, when many banks reduce lending to tidy balance sheets for year-end. Commercial paper loans to banks have dropped by 15 percent, or $90 billion, since the beginning of June and lending to European banks has dropped 20 percent, according to Barclays. This has left European banks struggling to obtain the dollar funding they need to finance U.S. exposures, and sent the cost of swapping euros to dollars to post-crisis highs. “This could be Europe’s 2008. That’s probably the major concern for the market, what does that mean for the ripple effect on our capital markets and globally,” said Mikelic. A CDS index based on of 25 European financials is also reflecting elevated concerns over their credit quality. The index traded on Tuesday at 242 basis points, just under last week’s record 260 basis points and much higher than the 210 basis point peak reached at the height of the financial crisis, according to data by Markit.

Automatic Earth reports Europe squanders its last shred of credibility.

Mike Mish Shedlock reports Eurozone retail sales drop 4th straight month; Confidence drop most since 2008; EU GDP .2%; leading idicators ngative;  

Wall Street Journal reports Italy living on borrowed time

2) … After a soon coming global economic collapse, seigniorage, that is moneyness, will come by diktat, specifically, the word, will, and way, of a European Chancellor and His Banker.

Allen Mattich of the Wall Street Journal reports Choice for EU: Bail out Greece or bail your banks. European governments are being forced to face up to the significance of a Greek default. This is perhaps the underlying message from International Monetary Fund Managing Director Christine Lagarde‘s warning that Europe’s banks “need urgent recapitalization. She may have been warning about the costly alternative to a solution to the Greek sovereign crisis. But it could well be too late.
Unfortunately, the time for private-sector recapitalization has probably passed. European banks might have raised sufficient funds a year ago when the first round of stress tests left investors feeling a warm glow, but there’s much less enthusiasm about the banking sector these days.
And if investors are likely to be reluctant to pump more capital into banks, governments will be equally nervous.
It’s unlikely any will have forgotten the painful lesson Ireland learned when it offered its banking sector a blanket guarantee in the midst of the financial crisis. Not only did it fail to shore up the banks but they dragged the Irish economy down with them when they sank.
European politicians have been weighing the unpalatability of rescuing their banks relative to that of rescuing peripheral European economies. The advantage of the Greek rescue has been that it mostly involved promises and guarantees rather than actual taxpayer money.
Bank recapitalizations, on the other hand, are likely to go straight onto the national balance sheets.Of course, banks unable to recapitalize either through the private or public sector face the third alternative of having to limp along as best they can. This would result in a significant credit contraction, which would depress growth in core Europe.
Ms. Lagarde argued that the “most efficient solution would be mandatory substantial recapitalization, seeking private resources first, but using public funds if necessary.”
And because one of the few positives for peripheral euro-zone countries has been to expand exports to the healthy bits of Europe, a slowdown in the core could cause a downward spiral throughout the single-currency region.
European governments are unlikely to reach a consensus on how to respond to their domestic banking problems. Some are likely to do everything they can to encourage a private-sector recapitalization. Others will use public funds. And still others will stand back, hoping the European Central Bank comes up with something.
What’s almost certain is that it will create further strain within the euro zone. Tensions over whether further lending to Greece can be collateralized are “just a foretaste of how serious the friction could be” once the issue turns to bank rescues, especially if a country feels it is disadvantaged by another, Monument Securities’ Mr. Lewis adds.
The post-Lehman banking crisis could yet prove to have been just the foreshock

Mr. Mattich relates “foreshock”. This is just one of many foreshocks, that is birth pains, of the Ten Toed Kingdom of Regional Economic Government. The beast regime of Neoauthoritarianism is replacing the Milton Friedman Free to Choose Neoliberalism, and is manifesting as state corporatism, in all of mankind’s seven institutions, and in the world’s ten regions.

The state corporatism aspect of the Beast System is seen in the Wall Street Journal report Exxon(XOM) Wins Arctic Deal, Gives Russia U.S. Access where the oil giant sells oil projects it owns in the US. The national sovereignty of America is violated by this agreement as state and business operates to plunder national resources that belong to the people.“Exxon Mobil Corp snatched away a major Arctic exploration deal with Russia’s OAO Rosneft from competitors including BP PLC in a sweeping agreement that for the first time gives a Russian state-controlled company access to energy projects in the U.S. Exxon, entering a country where energy investments are fraught with political risk, agreed to invest $2.2 billion to explore potentially giant oil fields with state-run Rosneft in the ice-choked Kara Sea. It also finalized a deal to spend $1 billion looking for oil in the Black Sea.”

Tyler Durden reports Berlusconi risks the Bond Vigilantes wrath, by reneging on all austerity promises ahead of refi heavy September.

Recapitalizations of banks will not be forthcoming as they are recognized as insolvent, and black holes of sovereign debt that cannot be repaid. For the most part Austerity Measures are disdained and are painfully slow in coming; those which have come, are coming too little and to late. Failure of Austerity Measures will be inducing more foreshocks, that is birth pains of the Ten Toed Kingdom of Regional Economic Government, specifically regional European Economic Government.

Moneyness will not come from the EFSF Monetary Authority, there are just too many complications surrounding this Monetary Agency; and frankly its a super CDO; money cant be created by a non sovereign body out of sovereign country ever weakening capability.

Moneyness will be coming instead from a European Fiscal Union and the word, will, and way of a European Chancellor and His European Banker. Debt burden will be falling on Germany and it will insist on fiscal rules coming from a fiscal authority, that is a fiscal body with authoritarian powers. The fiscal authority of the periphery, that is the PIIGS, will be sacrificed to a troika of Brussels, Paris and Berlin. And institutional holdings surrendered to a Eurozone Economic Government.

The 1974 Clarion Call of the Club of Rome for regional economic government, is now effecting a bloodless EU coup de etat. Mrs Merkel recently spoke with its Authoritarian Imperative, as Bloomberg reports Merkel rejects euro region breakup. And Handelsblatt reports Angela Merkel saying, “All times have their own specific demands.” The Chancellor is keenly attuned to the fact that the global economic, investment and political teutonic plates have shifted, as the Milton Friedman Free To Choose Floating Currency regime ended when world stocks turned lower in May 2011, and when investors became aware that a debt union has formed in Europe, they fled the stock market on Black Thursday. Chancellor Merkel’s and President Sarkozy’s Joint Communique of August 2011, calling for “true European Economic Government”, reflects the political realty of regime change.  

The One Euro Government will have a leader. Neoliberalism featured wildcat finance, a Doug Noland term.  But Neoauthoritarianism will feature wildcat governance, where leaders bite, tear and rip one another, as the most fierce rise to the top, as governments created under Neolilberalism fail. In an interview with FAZ, French Foreign Minister Alain Juppé warned, “The dissolution of the eurozone is not acceptable, because it would also be the dissolution of Europe. If that happens, then everything is possible. Young people seem to believe that peace is guaranteed for all time. But if we look around in Europe there is new populism and nationalism. We cannot play with that.”

Moneyness will come from a European Fiscal Union and the word, will, and way of the European Chancellor, that is the Sovereign, and His European Banker, the Seignior.

3) … Intensified purchasing of copper evidences a China shadow banking and China shadow credit system.
CNBC and Reuters reports China Intensifies Purchases of Copper. Chinese companies and investors are stepping up their purchases of industrial commodities such as copper, in a show of confidence in the global economy that stands in contrast to the turmoil in western markets. The wave of buying is providing support for metals and minerals prices after commodities prices fell this month at worries about a double-dip. Senior executives at trading houses, mining companies and banks said Chinese consumers had used the recent drop in prices to rebuild stocks. “China is significantly less pessimistic relative to people in the western world,” said Raymond Key, head of metals trading at Deutsche Bank. “On dips they are restocking, especially in copper.” An executive at an important Chinese trading house added: “There is no doubt some traders have been buying [copper] recently.”

4) … The Daily Beast reports America’s Secret Libya War.
The U.S. military has spent about $1 billion on Libya’s revolution, and secretly helped NATO with everything from munitions to surveillance aircraft. John Barry provides an exclusive look at Obama’s emerging ‘covert intervention’ strategy.

5) … The Foreclosure Pipeline in New York is 693 months (over 57 years) and 621 Months (over 51 years) in New Jersey reflects the power of the Banking Cartel and strategic defaulting loan holders living payment free in bank owned homes.
Mike Mish Shedlock reports First Time Foreclosure Starts Near 3-Year Lows, However Bad News Overwhelms; Foreclosure Pipeline in NY is 693 months and 621 Months in NJ and Irvine Renter relates In an effort to stop the double dip from getting worse, lenders are slowing foreclosure activity nationwide. their efforts will delay the market bottom and extend real estate squatting benefits.

International Accounting Standards Boards Urges European Banks To Come Clean On Their Greek Debt …. Moneyness Will Not Come From The EFSF Monetary Authority But Rather From A European Fiscal Union And The Word, Will, And Way Of A European Chancellor And His European Banker

August 30, 2011

European Financials report for August 30, 2011

1) … Between The Hedges reports
PIMCO writes European Austerity Is Not Enough.

ZDF TV reports Euro-area governments will need to transfer additional sovereign functions to the European Union if they want to establish a European economic government, citing an interview with Luxembourg Prime Minister Jean Claude Juncker.

Financial Times Deutschland reports Andrea Enria, chairman of the European Banking Authority, demanded that the European Financial Stability Facility be allowed to give funds directly to banks to shield them from financial difficulties, citing a letter to be sent to the council of European finance and economy ministers. Currently, the 725 billion-euro fund may give money only to governments, which can then pass it on to lenders. The majority of the 27 EBA members approve of the plan, while Germany is opposed, citing a person close to the German government .

Bloomberg reports Merkel Bloc may lack majority for EFSF Bill, Handelsblatt Says. German Chancellor Angela Merkel’s ruling bloc of Christian Democrats and Free Democrats may lack a majority to secure passage of a bill to expand the euro’s temporary rescue fund, the Handelsblatt reported. As many as 23 coalition lawmakers may reject the bill that’s due in parliament next month, said the newspaper, without citing names. That underscores her dependence on the opposition to ensure ratification. To gain passage of the bill on the coalition’s own strength, Merkel needs 311 votes in favor of the changes among the 620 lawmakers sitting in parliament’s lower chamber in Berlin. Her bloc comprises 330 lawmakers, implying that the German chancellor may lack 4 votes to achieve a coalition majority if 23 vote against the bill, Handelsblatt said. Euro-region leaders have pressed parliaments to secure fast-track approval to revamp the fund, called the European Financial Stability Facility, relieving or partly relieving the European Central Bank’s emergency debt purchase program.

Bloomberg reports European Banks need bigger writedowns on Greek Bonds, Standards Board says. Some European banks haven’t sufficiently written down the value of Greek government bonds and other “distressed sovereign debt” they own, the organization that sets accounting rules in the region said. Banks and other financial institutions are valuing the bond holdings in a way that, in some cases, reflects internal models instead of market prices, the International Accounting Standards Board said in a letter published on its website today. “It is hard to imagine that there are buyers willing to buy these bonds at the prices indicated,” the IASB said in the letter, dated Aug. 4 and sent to the European Securities and Markets Authority. “This is a matter of great concern to us.” “Although the level of trading activity in Greek government bonds has decreased, transactions are still taking place,” meaning market prices can be assessed, Hoogervorst said. “A company cannot ignore relevant market data.”

Wall Street Journal reports Eurozone considers bank shares as collateral for Greek aid. The euro zone is considering providing donor members including Finland with collateral in the form of Greek banking shares to secure the next aid package for Athens, Germany’s Handelsblatt reported.

2) … Euro Intelligence in its for fee newsletter reports
Finland wants a Luxembourg vehicle to hold Greek collateral Reuters has the story that Finland wants Greece to form a Luxembourg-based vehicle that holds the collateral. The proposal was already drafted in June, but remains a central plank of Finnish demands. In the proposal, Finnish officials set out how the Greek authorities would authorise the transfer of assets to a holding company based in Luxembourg, whose shares would be fully owned by the Greek privatisation agency, but held in custody by a third party. The holding company would operate under Luxembourg law.  (The structure essentially suggests that Finland completely mistrusts Greece.)

3) … Moneyness will not come from the EFSF Monetary Authority but rather from a European Fiscal Union and the Word, will and way of a European Chancellor and His European Banker.
Nikolaus Blome, of Bild, warned in Editorial against a United States of Europe relating that Nobody wants the United States of Europe, especially not if introduced through the back door. The Euro crisis has been created by the government in their respective capitals and it is up to the governments in their respective capitals to solve them. It would be wrong to hand over new competencies in fiscal and economic policies to Brussels.

Clearly from the news reports, the EFSF Monetary Authority will not be forth coming reality.  Out of soon coming Gotterdammerung, that is the clash of the gods, specifically, the investors and the European leaders, a new moneyness will be deployed, that is not built on sovereign debt, but rather on diktat.

Mrs Merkel spoke out of the 1974 Clarion Call of the Club of Rome for regional economic government, and she spoke with its Authoritarian Imperative, as Bloomberg reports Merkel rejects euro region breakup. And Handelsblatt reports Angela Merkel saying, “All times have their own specific demands.” The Chancellor is keenly attuned to the fact that the global economic, investment and political teutonic plates have shifted, as the Milton Friedman Free To Choose Floating Currency regime ended when world stocks turned lower in May 2011, and when investors became aware that a debt union has formed in Europe, and fled the stock market on Black Thursday. Chancellor Merkel’s and President Sarkozy’ Joint Communique of August 2011, calling for “true European Economic Government” reflects the political realty of regime change.  

A bloodless Eurozone coup d etat is underway.

The soon coming Europe Super Government will feature a sacrifice of national fiscal authority and a forfeiture of institutional holdings, such as infrastructure, banking, and utilities from the European periphery to its core, that is from the PIIIGS to Brussels, Paris and Berlin, to establish a Fiscal Union.  And according to the Merkel and Sarkozy vision, the One Europe Government will have a leader. This Sovereign will be accompanied by the Seignior, meaning top dog banker who takes a cut. Neoliberalism featured wildcat finance, a Doug Noland term  But Neoauthoritarianism will feature wildcat governance, where leaders bite, tear and rip one another, as the most fierce rise to the top, as governments created under Neolilberalism fail.  WSWS reports Slovenia government on verge of collapse. The Slovenian government led by Premier Borut Pahor faces collapse following unpopular austerity measures and allegations of corruption.  Diktat will replace freedom, choice, and liberty. The word will and way of the Sovereign and the Seignior will be the basis of the seigniorage, that is moneyness.

Stocks Soared On Higher Insurance Companies, Investment Bankers And Merger Of Two Greek Banks ….. Will There Be A Eurozone Breakup, Or Will There Be A Super European Government?

August 29, 2011

Financial Market report for August 29, 2011

1) … World stocks, ACWI, and US Shares, VTI, rallied as Insurance company shares, KIE, moved higher after property damage from Hurricane Irene was less than feared. Travelers Cos Inc, TRV, and Allstate Corp, ALL, rose strongly as investors were relieved that hurricane damage in New York City, especially in lower Manhattan, was not as bad as expected.

Financial stocks, XLF, investment Bankers, KCE, Investment Brokers, IAI, Banks, KRE, European Financials, EUFN, were the top gainers after Greece’s Alpha Bank and EFG Eurobank sealed a merger agreement. Euro Intelligence reports significant participation of the Quatar Investment Authority. U.S.listed shares of National Bank of Greece, NBG, soared. Market leaders included
KME 9.7%
FONE 6.6
RWW 6.2
PSCE 6.0
RWJ 6.0
KRE 5.4
PSCD 5.1
INDY 5.1
RZV 4.9
BRF 4.9
PSCI 4.8
SCIF 4.5
IWO 4.6
IWM 4.7
PSCT 4.6
FAA 4.6
SEA 4.6
RZG 4.5
SCIF 4.5
ALUM 4.5
PKB 4.3
IGN 4.3
SLX 4.2
EWY 4.2
FDN 4.2
BJK 4.2
XSD 4.1
SKOR 4.1
XRT 4.1
JKH 4.1
PNQI 4.0
HHH 3.9
KOL 3.9
COPX 3.9
XBI 3.9
XME 3.8
PSP 3.8
KROO 3.8
GEX 3.6
PEJ 3.6
QTEC 3.5
VCR 3.5

2) … Euro Intelligence reports in their for fee news letter.
Troika discusses Greek civil servant pay structure.
Plans to introduce a new pay structure in the civil service will top the agenda of discussions between the Greek government and the troika this week, amid concerns that Greece is dragging its feet over the reform, Kathimerini reports.  Last week, Finance Minister Evangelos Venizelos and Administrative Reform Minister Dimitris Reppas suggested that the new pay policy would be phased in over seven rather than three years as previously agreed. The troika is also pressuring the government over the slow pace of its scheme to merge and shut down public bodies, and its privatization program.

Jean Quatremer returns deeply disillusioned from Greece.
Libération correspondent and Coulisses de Bruxelles blogger Jean Quatremer spent his summer holiday in Greece and returns deeply disillusioned from the motherland of the euro crisis. After having attempted in vain to obtain official receipts for his holiday visits to hotels, bars and restaurants around the country he comes to the conclusion that the country is run “by a real mafia”, that tax fraud is “a national sport” and that “30 to 40%” of the Greek GDP are being generated by the black economy. Quatremer says EU subsidies that should have helped to build highways, bridges or a land registry in Greece were channelled into consumption. “During my holiday I have never seen, apart from Germany, as many Porsche, Audi, Mercedes and BMWs”, he writes and he points out that there are more cars per inhabitant than in France. Quatremer finishes his blog by lauding the fact that EU structural funds will now be managed by a European body headed by a German and that privatization receipts will also be controlled by an independent body. “But the resistance capacity of the Greek no longer needs to be proven”, he concludes. “The Europeans may still have to pay for a long time their Greek error.”

Francois Hollande is the French Socialist’s front runner after party meeting
The French Socialist’s former chairman Francois Hollande clearly emerges as the front runner for he party’s primaries on October 9 after this weekend’s “summer university”, according to Les Echos. A poll in Journal de Dimanche gave him a 10 points lead over Martine Aubry, the current chairwoman and mayor of Lille.

Greece may spurn debt swap if take-up is lower than 90%
The FT writes that the Greek finance minister warned that unless the take up of the “voluntary” debt swap was 90%, the Greek government reserved the right to cancel the entire deal. While the take-up rate in Belgium, for example, is 96% according to its finance minister, there is a fear that the overall target might not be hit, given the dispersion of Greek bond holdings. The paper quotes from a letter, saying the government would then not be under an obligation to accept the offer, but said that a final decision would be made in co-operation with the official creditors to ascertain whether a lower take up would still meet the conditions for a substantial private-sector contribution.

Angelo Baglioni explains the difference between a Eurobond and a EuroUnionBond.
Angelo Baglioni has an illuminative article in Lavoce, in which he looks at the difference between various Eurobond proposals, including the Eurobond proposal by Jean-Claude Juncker/Giulio Tremonti – and also Mario Monti – and an alternative proposal by Romano Prodi. The first is a classic Eurobond, which replaces a proportion of national debt. The Prodi proposal is for a EuroUnionBond, which is different because it is issued by a new funding agency, with €1tr in paid in capital, and a total ceiling of €3tr, which spends some €700bn on infrastructure investments, and the rest on purchasing national debt. (Interim institutional arrangemens will undoubted be needed, but if this is going to work, it will have to mutate into a genuine Eurobond eventually.)

The Bundestag’s supervisory powers will be beefed up by a super committee
There are signs that a deal will be struck between Bundestag and the German government on parliamentary control of the enhanced EFSF. According to the Saturday’s Süddeutsche Zeitung, Bundestag president Norbert Lammert, a member of Angela Merkel’s CDU, wants the Bundestag to vote on any new EFSF assistance for a euro country. Questions of lesser relevance could then be dealt with by the Bundestag’s budget committee. Implementation measures such as paying out the agreed sum or buying government bonds would be decisions the EFSF could take on its own right according to Lammert’s thinking. Meanwhile, Spiegel reports that there are plans to create a new super committee to which the Bundestag could delegate some of the parliamentary controlling rights over the EFSF. This new committee would be composed of the heads of the parliamentary groups and some members of the present committees for European affairs, budget and finance.

Wolfgang Münchau on the wretched politics of eurobonds
In his FT column, Wolfgang Münchau writes that we are already well into the phase whether the delay in crisis resolution is becoming very expensive. The extension of the crisis to Italy and the economic downturn have created a situation where Eurobonds are the only solution to this crisis – since the ECB will not be able to maintain its bond purchases for many years, and since Italy is very likely to fall into a recession and potentially register rising deficits. But eurozone bonds cannot be introduced overnight for legal reasons, and politically the debate has been going in the wrong direction among the northern states. Angela Merkel has been so explicit in ruling out Eurobonds most recently that it is hard to imagine that she would accept them soon – and sacrifice her coalition and her own position in the process. Yet waiting for another two is not a realistic option either.

3) … Will there be a Eurozone Breakup, or will there be a Super European Government, that is a One Euro Government.

3A) … Many article herald the end of the Euro and that ongoing efforts to save the banks and their bondholders will fail.
1) … Mike Mish Shedlock writes IMF research says Eurozone break-up certain; I say banks cannot be saved.

2) … Mr Shedlock also writes Greece 1-Yr Rate 60%; Finland retains collateral demand; Multiple veto points; ECB “Litmus Test” coming up; Germany accuses ECB of treaty violations
Kiss a Larger EFSF Goodbye

  1. Kiss a larger EFSF goodbye unless 17 nations all agree to raise the pool to a collective to the proposed €2.2 trillion from the current €440 billion pool.
  2. Kiss a larger EFSF goodbye unless Greece offers hard collateral
  3. Kiss a larger EFSF goodbye unless German courts rubber stamp the EU summit deals
  4. Kiss a larger EFSF goodbye unless 90 percent of investors agree to the deal

In other words, kiss a larger EFSF goodbye, expect a test of the ECB’s Italian, Spanish, and Portuguese bond purchasing power, and expect a German court test that in-and-of-itself would settle this matter once and for all. Even if the German courts approve the deal, there are still more than 17 points of failure, counting investors. One way or another Greece will default

3) _ Zero Hedge writes September 23: Beginning of the end for Merkel … and the eurozone?

4) …Ambrose Evans Pritchard writes Euro bail-out in doubt as ‘hysteria’ sweeps Germany
“German Chancellor Angela Merkel no longer has enough coalition votes in the Bundestag to secure backing for Europe’s revamped rescue machinery, threatening a constitutional crisis in Germany and a fresh eruption of the euro debt saga.”

I comment on the above that the Austrian Economists and those of the Mises Institute who are leading the charge for a breakup of the EU perceive themselves and many others to be sovereign individuals, and that they envision market forces will cut a path to national sovereignty, and sovereign national.currencies.

To this I say that such thinking is a mirage on the Neoauthoritarian Desert of the Real. Freedom, liberty and choice, are all placards and epitaphs of the bygone era of Neoliberalism which has been replaced by Neoauthoritarianism, as the economic, investment, and political teutonic plates have shifted. First with the down turn in world stocks in May 2011, then the awareness of investors that a Default Union has formed in the Eurozone, with the sell off of stocks on Black Thursday, and now with the proposal for a true European Government by President Sarkozy and Chancellor Merkel; as well as the statement by the Chancellor, that there will not be a breakup of the EU. While the Chancellor may have lost her job, others who have heard the 1974 Clarion Call of Club of Rome, will arise and pick up the Authoritarian Imperative for European Economic Government.     

3B) … I write, out of the soon coming Gotterdammerung, that is the clash of the gods, specifically, the investors and the European leaders, a new moneyness will be deployed not
built on sovereign debt, but rather on diktat.
Out of the soon coming European and global economic collapse, a European Economic Government, together with a President of the EU, the Sovereign, and his Eurozone Banker, the Seignior, will rise in power and authority, as national leaders waive national sovereignty and fiscal authority is sacrificed, and institutional holdings such as power companies, utilities, and central bank holdings, are transferred from the periphery, that is from the PIIGS, to the core, that is Brussels, Paris and Berlin. A Fiscal Union is coming in the EU

The word, will and way of the Sovereign, and the Seignior, will provide seigniorage, as the Beast regime of Neoauthoritarianism replaces the Free To Choose regime of Neoliberalism. A federal and feudal European Economic Government is coming as a fulfillment of the 1974 Clarion Call of the Club of Rome as well as to the other nine world regions to make for a Ten Toed Kingdom of regional economic government. Banks will be integrated with governments; for example, Bank of America will be nationalized. These institutions will be known as Government Bank, or Gov Bank, or the Bank of Government.     

Gotterdammerung, Global Economic Collapse, Eurozone Breakup, Super European Government, One Euro Government, Eurobonds, EFSF, Sovereignty, Sovereign Individual, Desert of the Real, Freedom, Diktat, Neoliberalism, Neoauthoritarianism, The Sovereign, The Seignior, Seigniorage, Default Union, Clarion Call Club of Rome, Authoritarian Imperative, European Economic Government, President of the EU, Fiscal Authority, Fiscal Union, Beast Regime, Free to Choose, Ten Toed Kingdom, Government Bank, Bank of Government, Gov Bank

Stocks Rise On The Fed Chairman’s Hyperbole ….. Greece Activates Emergency Fund For Its Banks … Capital Flees From European Banks To US Banks … Neoliberalism’ Liberty and Choice Will Soon Be Replaced By Neoauthoritarianism’s Diktat

August 28, 2011

Financial market report for August 26, 2011

1) … World stocks, ACWI, rose 1.2% on the Fed Chairman’s hyperbole and doublespeak.
The Associated Press reports Bernanke announced no new economic stimulus measures during his speech at a conference in Jackson Hole, Wyo. He left open the possibility of more action by the Fed if another recession looks likely. Indexes fell sharply as the speech was released and it became clear that Bernanke was not promising additional support of the economy. In his speech, Bernanke focused on the long-term strengths of the U.S. economy, saying that they “do not appear to have been permanently altered by the shocks of the past four years.” That shot of optimism helped lift markets. “In the American economy, the only thing that’s really lacking right now is confidence,” said David Kelly, chief market strategist at JPMorgan funds. Kelly said the Fed has few remaining options to help the economy, but action by the central bank might not be necessary. “People who understand the limits of monetary policy also understand that the economy has what it takes to grow,” Kelly said. Other analysts said that Bernanke’s speech also helped lift investor sentiment. Liz Ann Sonders, chief investment strategist at Charles Schwab, said Bernanke’s speech was an “acknowledgement that the Fed is not out of tools and that they stand ready” to act if needed.

2) … It’s the Last Stand for Greek Banks  Greece Forced to Tap Emergency Fund.
The European Financials, EUFN, traded unchanged as, The Telegraph reports Greece has been forced to activate an obscure emergency fund for its banks because they are running short of collateral that is acceptable to the European Central Bank (ECB). In a move described as the “last stand for Greek banks”, the embattled country’s central bank activated Emergency Liquidity Assistance (ELA) for the first time on Wednesday night. Raoul Ruparel of Open Europe told The Telegraph: The activation of the so-called ELA looks to be the last stand for Greek banks and suggests they are running alarmingly short of quality collateral usually used to obtain funding.” He added: “This kicks off another huge round of nearly worthless assets being shifted from the books of private banks onto books backed by taxpayers. Combined with the purchases of Spanish and Italian bonds, the already questionable balance sheet of the euro system is looking increasingly risky.

The Wall Street Journal reports Greek banks’ liquidity is suffering as nervous clients withdraw savings. Greece’s worsening slump is threatening to compound another risk for the country: the steady withdrawal of money from Greek banks. In the last 20 months, the country’s banks have suffered an unprecedented withdrawal of customer deposits. Tens of thousands of Greeks—from the well-heeled to the less well-off—have moved their savings out of the country or stashed the cash in safe-deposit boxes or under a mattress, bankers say. The consequence for many Greek banks is a growing shortage of liquidity that is increasing their reliance on emergency funding from the European Central Bank and forcing them to further cut lending.

Mike Mish Shedlock reports Dash for cash sends short-term rates negative again. Note that 3-month T-Bills are yielding a negative .01% as demand for safety has shoved aside any concern to make a profit. However banks pay .10% for FDIC insurance. Thus banks are losing .11% unless they charge fees. BNY Mellon has done just that, charging .13% for large deposits. That large deposits keep flowing in from Europe says stress in European banks continues to simmer under the surface.

And Mike Mish Shedlock reports Capital Flight Proves Confidence in European Interbank System has Collapsed. Capital flight from European banks has now reached such a state that for one undisclosed bank needed emergency funding last week for a mere $5 million. Previously, the ECB stepped in to provide $500 million in emergency liquidity measures to non-disclosed banks. As money flees Europe, it lands in US banks that do not know what to do with it. Capital flight has led to negative interest rates in the US.

And he continues in his article Capital Flight Proves Confidence in European Interbank System has Collapsed citing Jean-Pierre Chevallier writing on Business économiste monétariste behavioriste discusses the stet-up in his latest post ECB: no more bets!  The situation is out of control in the euro zone, as I have been writing it for a while. The interbank market does not work because euro-zone banks managers have lost confidence in other banks. So they keep their cash in US$ rather than lending it to other banks that need it as they would in normal times: ECB had loaned $5 million to a bank on August, 25. ECB had previously loaned $500 million (USD) on August 17. This caused a flash-crash in U.S. markets. The problem is serious. Chevallier notes that the paltry amount of money involved “shows that the interbank system is completely blocked”. Trust in European banks is shot, and by hiding the banks needing emergency liquidity funding, distrust spreads to all banks in the system. Then again, why shouldn’t distrust spread? The entire global financial system is bankrupt. Loans have been made that cannot and will not be paid

3) … Stocks rising included XME, OIH, IEZ, SLX, XRT, JKH, IWO, RZG, HHH, MOO, PSCD, PNQI, PSCI, QTEC, FDN, PSCE, XBI, GEX, COPX, PSCT.

4) … Map of food inflation riots around the world.
Business Insider reports Most of the inflation riots and protests are concentrated in the MENA (Middle East and North Africa) region, but as you can see on the Google map, they are starting to migrate into Europe, as well as China and India.

5) … Daily Bell reports on The deficit and the Tragedy Of The Commons.

6) … Paul Krugman says Wolfgang Schäuble was guilty of fiscalisation, the attempt to pass off a private-sector debt crisis as a public-sector crisis.  
Euro Intelligence reports that Paul Krugman has a go at Wolfgang Schäuble, who had claimed that the causes of this crisis, and in 2008, was the rise in public sector debt. Krugman says this is nonsense. The only country where this applied in Greece, but the financial crisis is mostly about private sector debt. He says the fiscalisation of the crisis is doing untold damage on both sides of the Atlantic

6) … Neoliberalism and neoauthoritarianism are polar opposites.   
Neoliberalism was characterized by wildcat finance, a Doug Noland term. Neoauthoritarianism is characterized by wildcat governance as Ambrose Evans Pritchard reports Germany fires cannon shot across Europe’s bows. German President Christian Wulff has accused the European Central Bank of violating its treaty mandate with the mass purchase of southern European bonds and writes Bundesbank questions legality of EU bail-outs.  Germany’s Bundesbank has issued a blistering critique of EU bail-out policies, warning that the eurozone is drifting towards a debt union without “democratic legitimacy” or treaty backing.

Neoliberalism was characterized by leverage, economic expansion prosperity.  Neoauthoritarianism is characterized by deleveraging, economic contraction and austerity. WSWS.org reports Michigan legislature requires cities and schools to cut health care payments. In its first day back in session, the Michigan legislature passed anti-worker legislation on health care and welfare. And WSWS.org reports Economic growth stalls amidst debt crisis, austerity. Dr. Tom Hoenig, retiring from the helm of the Kansas City Fed and almost 40 years of service at the Federal Reserve is quoted by Doug Noland:  “If you go back and think about it, we have gone through well over a decade as a nation, the United States and maybe other parts of the world have systematically consumed more than they produce. And so we’ve been able to do that by increasing our debt, increasing leverage. Increasing leverage of the consumer, increasing leverage and debt of states, increasing leverage of the federal government – again, increasing leverage of our financial institutions.  Living, in a sense, beyond our means. So there’s not going to be an overnight solution to that. We can pour liquidity into the market, yes, but that doesn’t really solve the debt problem and the need to rebalance our national and our international economies. So what about the long run?” … “What you’re doing is keeping interest rates very low.  You’re encouraging debt over time to help demand.  But all that does, then, is help continue to build more debt for the future. Those are not solutions that will get us to where we need to be in the long run.”  

Neoliberalism was characterized by the expansion of all kinds of debt, BND. This included junk bonds, JNK, mortgage backed bonds, MBB, levered buyouts, PSP, US Treasuries, TLT, emerging market bonds, EMB, long maturity corporate bonds, BLV, short duration corporate bonds, LQD, international corporate bonds, PICB, and world government bonds, BWX. Neo Authoritarianism will characterized by debt servitude. To quote again from the Mike Mish Shedlock article Capital Flight Proves Confidence in European Interbank System has Collapsed “Citing Jean-Pierre Chevallier writing on Business économiste monétariste behavioriste discusses the stet-up in his latest post ECB: no more bets!  The situation is out of control in the euro zone, as I have been writing it for a while. The interbank market does not work because euro-zone banks managers have lost confidence in other banks. So they keep their cash in US$ rather than lending it to other banks that need it as they would in normal times: ECB had loaned $5 million to a bank on August, 25. ECB had previously loaned $500 million (USD) on August 17. This caused a flash-crash in U.S. markets. The problem is serious. Chevallier notes that the paltry amount of money involved “shows that the interbank system is completely blocked”. Trust in European banks is shot, and by hiding the banks needing emergency liquidity funding, distrust spreads to all banks in the system. Then again, why shouldn’t distrust spread? The entire global financial system is bankrupt. Loans have been made that cannot and will not be paid “

Love grows cold in the Age of Deleveraging. Robert Johnson of the Business Insider relates The Civil Justice System in San Francisco is collapsing. Judge Feinstein says San Francisco will In the face of extreme budget cuts the San Francisco Superior Court announced Monday it’s reducing staff by more than 40 percent and closing 25 courtrooms. Jesse McKinley of the NYT reports Cutbacks stem from a $350 million reduction in financing for the state’s judicial branch, the largest cut in California’s history, in the 2011-12 budget, part of a penurious spending plan endorsed by Gov. Jerry Brown, who has made taming California’s money problems a priority. Gil Duran, a spokesman for the governor, said the cuts were unfortunate, but were part of “immense fiscal challenges that require sacrifice at every level of state government.” As constitutional officers, judges cannot be laid off. But as anyone who has ever entered a courtroom can attest, much of the heavy lifting is done by the support staff. “It’s not that we don’t have the judges to do the work, we do,” said Judge Feinstein, the daughter of Senator Dianne Feinstein. “We won’t have the clerical staff to back us up. We won’t have the papers.” Dozens of judges and court officers had written to Mr. Brown, a Democrat, to say that the cuts would “render precarious our democratic ideal of justice for all.” And the cutbacks will lead to all manner of other effects, lawyers say.

7) … Milton Friedman Wrote A Book And Martin Luther King Had A Vision … But Angela Merkel, Herman Van Rompuy, And Christine Lagarde Have A Common Statement.
Milton Friedman fathered the Free To Choose floating currency regime, which took the US off the gold standard, and liberated investors to a great spectrum of investments. Martin Luther King had a dream. Dr King Jr’s vision is now honored, with the establishment of the MLK Freedom Memorial, in Freedom Plaza which contains the Washington Memorial.

The actions of the US Congress in establishing financial deregulation with the repeal of the Glass Steagall Act, the US Federal Reserve in providing Quantitative Easing and ZIRP, Wall Street investment bankers and mortgage REITS securitization of subprime lending, US Treasury bonds, as well as GSE debt, and the Bank of Japan in providing one percent carry trade lending, further liberated investors providing total freedom of choice, to engage in wildcat investing, a Doug Noland term, to achieve great returns through leverage.

But the economic, investment, and political tectonic plates have shifted, where the world moved from Neoliberalism to Neoauthoritarianism. First in May, 2011, with the turn lower in stocks, and then with the flight of investors on Black Thursday, when they realized that a default union had formed in Europe, and then with Sarkozy Merkel communique for true European economic government, followed by Mrs Merkel’s statement that there will not be a breakup of the EU.

Liberty and Choice are a mirage in the Authoritarian Desert of the Real. Freedom and national sovereignty are principals of the bygone era of Neoliberalism. There are no longer sovereign individuals; rather the Diktat of sovereign leaders now governs.

Europe’s leaders are simply following the Authoritarian Imperative of 1974 Clarion Call of the Club of Rome. Mail Online reports Herman Van Rompuy stated that “countries can stand alone, is a lie and an illusion.” and EconomicPolicy Journal reports Christine LaGarde stated:  “Europe needs a common vision for its future. The current economic turmoil has exposed some serious flaws in the architecture of the eurozone, flaws that threaten the sustainability of the entire project. In such an atmosphere, there is no room for ambivalence about its future direction. An unclear or confused message will add to market uncertainty and magnify the eurozone’s economic tensions. So Europe must recommit credibly to a common vision, and it needs to be built on solid foundations, including, for example, fiscal rules that actually work.”

The Authoritarian Imperative of the 1974 Clarion Call of the Club of Rome for regional economic government is operating like a magnet drawing iron elements together. Mrs Merkel of Germany and Mr. Sarkozy of France have heard and heed the Club’s Call by proposing a “true European economic government. This will be one of ten operating governments known collectively as the Ten Toed Kingdom of regional economic government.  

Soon an Iron Chancellor, The Sovereign will rise to rule the Eurozone. His power and authority will be like that of Charlemagne. His kingdom will be very much a revived Roman empire.

The Sovereign will come in like a lamb and proceed like a lion. His way must be fierce, as institutional holdings such as nations’ central bank holdings, utilities, and other infrastructure, are forfeited, as well as fiscal authority, is transferred, from the periphery, that is the PIIIGS, to the core, that is Brussels, Paris and Berlin.  

The Ten Toed Kingdom cannot and will not survive as it is comprised of non compatible building materials of the iron of diktat and the clay of freedom and liberty. Eventually, the Sovereign will rise to power globally and install global totalitarian rule and establish a one world government, a one world bank.  His Seignior, the top dog banker who takes a cut, will provide global seigniorage, that is global moneyness.

Stocks Fall On Fears Of Federal Reserve Impotence And Fears That The European Sovereign Debt And Banking Crisis Cannot Be Managed And That Greece Is Going To Default … Chancellor Merkel Responds By Rejecting A Breakup Of The Euro Region

August 25, 2011

Financial Market Report for August 25, 2011

1) … Stocks fall on fears of Federal Reserve impotence and fears that the European Sovereign Debt and Banking Crisis cannot be managed.
Germany, EWG, and European Financials, EUFN, turned the European Shares, VGK, sharply lower. The Washington Post asks Is a downgrade of Germany’s credit rating next?  Calculated Risk reports Greek bond yields surge. Business Insider reports Greece quietly activates emergency liquidity measures.

EconomicPolicy Journal reports Credit default swaps soaring on European Banks and Wall Street Journal reports Greek Default Fears Rise. Euro-zone policy makers appeared nowhere near settling a dispute Thursday over Finland’s collateral demands in exchange for participating in a €109 billion ($157.1 million) bailout for Greece, raising concerns the Mediterranean nation may default. Markets have grown more worried about the potential for a Greek debt default amid a lack of progress in resolving the collateral issue this week, according to a person familiar with the situation. Finland, meanwhile, shows no sign of backing down. Yields on Greek two-year bonds rocketed to a record of over 43% Thursday, according to Tradeweb, and the cost of insuring Greek government bonds against default also rose sharply. Greek five-year sovereign credit-default swaps were 1.37 percentage points wider at 22.75 percentage points, according to Markit. Euro-zone governments are looking into alternative forms of collateral after a cash deal reached earlier between Greece and Finland was rejected by key member countries, including Germany and the Netherlands. The collateral dispute, if not resolved soon, could derail a second bailout package for Greece agreed by euro-zone leaders on July 21. Without support from all 17 euro-zone countries, no funds can be released, while changes to the European Financial Stability Facility, the currency bloc’s bailout fund, can’t go forward either. “It seems that a possible outcome is either collateral for all member states or no country will get it,” said another person, who remains hopeful a solution can be found by the end of Friday. Finland said Thursday that it continues discussions with Greece and other euro-zone countries to find a solution. Officials refrained from further comment. “The issue has become so politicized that no one here at the Finance Ministry wants to talk about it at the moment,” said Anita Sihvola, spokeswoman for the Finnish finance ministry. On Wednesday, Finance Minister Jutta Urpilainen reiterated that Finland won’t take part in the Greek bailout unless it obtains collateral.

Small Cap Energy, PSCE, Small Cap Technology, PSCT, Small Cap Discretionary, PSCD, Semiconductors, XSD, Russell 2000 Growth, IWO, Biotechnology, XBI, Uranium Producers, URA, Retailers, XRT, Wood Producers, WOOD, Insurance, KIE, Mortgage REITS, REM, and Steel, SLX, led the stock market lower today. Bloomberg reports Bernanke Signaling No QE Backed by Data. Federal Reserve Chairman Ben S. Bernanke tomorrow may disappoint stock investors betting on a commitment to step up stimulus. He has little choice, given rising consumer prices and a U.S. economy that is still growing. Gasoline costs are 33 percent higher, consumer inflation is twice as fast and inflation expectations are above levels since Bernanke signaled more easing a year ago at the annual Fed symposium in Jackson Hole, Wyoming. While the U.S. expansion has slowed, the Chicago Fed’s index of 85 economic indicators improved in July for a third month on gains in production. Policy makers, who said Aug. 9 they’ll use additional tools “as appropriate,” probably don’t expect a recession or rapid disinflation, making a signal of bond buying premature, said Roberto Perli, managing director at International Strategy & Investment Group in Washington. Instead, Bernanke will probably detail options for further stimulus and clarify how much the Fed’s reduction in its outlook this month stems from long-term obstacles to growth, said Keith Hembre, a former Fed researcher. “Conditions are substantially different today” compared with last year, especially inflation, said Hembre, chief economist and investment strategist in Minneapolis at Nuveen Asset Management, which oversees about $212 billion. “First and foremost, that would be the reason I think that any sort of major asset purchase announcement is unlikely,” he said.

World Stocks, ACWI, and World Small Cap Stocks, VSS fell lower. The Russell 2000, IWM, led the US Shares, VTI, lower. Malaysia, EWM, Thailand, THD, and Indonesia, IDX, South Korea Small Cap, SKOR, Taiwan, EWT, South Korea, EWY, Taiwan Small Caps, TWOn, The UK, EWU, Sweden, EWD, Europe, VGK, Israel, EIS, Norway, EWN, Egypt, EGPT, India, INDY, India Small Cap, SCIN, Russia, RSX, and Russia Small Cap, RSXJ, suffered heavy losses.

2) … Open Europe reports
Also Handelsblatt reports German Finance Minister Wolfgang Schäuble said at a CDU/CSU parliamentary group meeting that the Greco-Finnish collateral deal “is no longer on the table.” Greek borrowing costs of two year debt reached record highs of 44% yesterday over fears that the second Greek bailout could be delayed due to the collateral dispute.

German Chancellor Angela Merkel’s CDU party and junior coalition partner FDP criticised the German government’s draft framework agreement for the EFSF, the eurozone’s bailout fund,  arguing that it leaves national parliaments on the side lines. FT Deutschland quotes Deputy FDP Chairman Florian Toncar, saying, “The planned changes by heads of government to the EFSF cannot pass without parliamentary control.”

3) … Euro Intelligence reports
The German presidency is a largely ceremonial office, but he has two functions that can be important in the euro crisis. His words carry weight, and influence public opinion. And he constitutes an important link between the parliament, who legislation he has to approve, and the Constitutional Court. Yesterday, Christian Wulff said he considered the ECB’s bond purchases as legally questionable. The direct purchase of bonds was explicitly ruled out. It is wrong to circumvent this rule through secondary market purchases, according to Frankfurter Allgemeine.

Angela Merkel has proposed that the stability and growth pact should be monitored by the European Court of Justice, which could declare offending national budgets as null and void. Since this also applied to Germany, would this not contradict the German constitution, which insists on full budgetary sovereignty?

A report criticises Greek tax collector for poor performance. The performance of  Greek tax offices is becoming a problem, as Finance Ministry data made public on Wednesday showed that tax inspectors are doing a particularly poor job to follow up on tax evasion, Kathimerini reports.  Official figures for June revealed that out of the country’s 34 major tax offices, 12 had not performed a single audit on taxpayers, while 31 clocked an average of less than one check per employee. This year the country’s 288 tax offices had only inspected 152,822 cases, with another 358,503 cases still pending. This means that the authorities have only checked three out of every 10 cases in their hands. The data also showed that there are several tax offices with over 10% of registered taxpayers not paying their dues, most of them major companies.

4) … Wall Street Journal reports A Rush Out of ‘Junk’.
The market for “junk” bonds is enduring its worst rout since the depths of the financial crisis. Demand for high-yield bonds sold by the riskiest U.S. companies has nearly dried up, an ominous sign for low-rated companies hoping to tap the bond markets and private-equity firms trying to finance leveraged buyouts. New junk-bond offerings in August were at their lowest level since December 2008. Retail investors have been withdrawing record amounts from high-yield mutual funds, forcing those funds to dump bonds in order to raise cash, driving prices even lower. Returns on junk bonds—those rated below investment grade, which offer a high yield due to a high risk of default—dropped to negative 5.1% in August, the worst monthly performance since November 2008, according to the Barclays Capital U.S. High Yield Index.

5) … CNBC reports Applied Materials(AMAT) Beats Street; Outlook Dismal.
Applied Materials posted quarterly results that beat market estimates, but the chip-gear maker forecast dismal fourth-quarter results on weak macro-economic conditions and a glut in the solar cell market

6) …. Time reports What Italy tells us about Europe’s debt crisis

7) … Reuters reports Banks face $340bn state-backed bond refi hole

8) … Douglas French writes in Daily Reckoning article First in line for new money about the seigniorage, that is the moneyness, that came via US Federal Reserve QE And ZIRP.

9) … Angela Merkel has spoken with the Authoritarian Imperative and out of the 1974 Clarion Call of The Club of Rome, for regional economic government.
I believe Helmut Kohl has always been a European Federalist with a commitment to a political union. I believe that he has always seen a common currency as the means to achieve a European Super Government. In interview with Internationale Politik he stated  “Of course I would have wished many a time, a further decision, especially in the early nineties with a view to the euro and political union.”

President Sarkozy and Chancellor Merkel have heard and heeded the 1974 Club of Rome’s Clarion Call by communicating the need for “true European Economic Government”, which is part of  regional economic government to be established in the world’s ten regions.  This Call is establishing the Ten Toed Kingdom of Regional Economic Government, which serves as the foundation of the Beast Regime of Neoauthoritarianism, which replaces Neoliberalism.  Mrs Merkel spoke with the Club of Rome’s Authoritarian Imperative as Bloomberg reports Merkel rejects euro region breakup. And Handelsblatt reports Angela Merkel, saying, “All times have their own specific demands.” The Chancellor is keenly attuned to the fact that the global political and economic teutonic plates shifted, as the Milton Friedman Free To Choose Floating Currency regime, which began in 1974 when the US went off the gold standard ended, when world stocks turned lower in May 2011, and when investors became aware that a debt union has formed in Europe, and fled the stock market on Black Thursday.  

The soon coming Europe Super Government will feature a sacrifice of national fiscal authority and a forfeiture of institutional holdings, such as infrastructure, banking, and utilities from the European periphery to its core, that is from the PIIIGS to Brussels, Paris and Berlin.  And according to the Sarkozy and Merkel vision, the One Europe Government will have a leader. This  Sovereign will be accompanied by the Seignior, meaning top dog banker who takes a cut. Neoliberalism featured wildcat finance, a Doug Noland term  But Neoauthoritarianism will feature wildcat governance, where leaders bite, tear and rip one another, as the most fierce rise to the top as governments created under Neolilberalism fail.  Satzman WSWS reports Slovenia government on verge of collapse. The Slovenian government led by Premier Borut Pahor faces collapse following unpopular austerity measures and allegations of corruption.  Diktat will be replacing freedom, choice, and liberty. The word will and way of the Sovereign and the Seignior will be the basis of the world’s seigniorage, that is moneyness.

The Seigniorage Of The Precious Metal Mining Stocks Fails As Gold Falls To $1,754 … And The World’s Leading International Banks Trade Lower Once Again

August 24, 2011

The Seigniorage Of The Precious Metal Mining Stocks Fails As Gold Falls To $1,754 …  And The World’s Leading International Banks Trade Lower Once Again

Report on Seigniorage, for August 24, 2011

1) … News of the European Financials, EUFN.
Open Europe reports Germany and IMF not keen on Greco-Finnish collateral deal as Finland threatens to pull out of Greek bailout if collateral deal is vetoed. Confusion continues to reign over the status of the Greco-Finnish collateral deal, with Finnish Prime Minister Jyrki Katainen suggesting yesterday that his country could withdraw from the second Greek bailout if they did not receive any collateral guarantees, he said, “It is our parliament’s decision that we demand it as a condition for us joining in”. German Chancellor Angela Merkel reportedly said, in a meeting with her governing Party, “It can’t be that one country gets extra collateral,” casting further doubt on the Finnish position. FAZ reports that Merkel also ruled out the use of gold as collateral as requested by some members of her party. Additionally, the IMF opposes the deal since it challenges its status as senior creditor, according to the WSJ.

EuroIntelligence reports EU consumer confidence registers sharpest fall in 20 years, the purchasing managers survey shows a contraction in eurozone manufacturing. and Greek finance ministers gives banks until Sep 9 to decided on their participation.
The European Commission’s consumer confidence indicator fell 5.4 points to -16.6 in August, the sharpest fall in 20 years, according to the Financial Times, while the latest purchasing managers survey for the eurozone showed the manufacturing sector is contracting, with the index falling from 50.4 in July below the critical level of 50 to 49.7. The composite level remained unchanged at 51.1. The good news is a reacceleration of private activity in France. The article says the eurozone was still a long way from a recession. And EI also reports Greek finance ministers gives banks until Sep 9 to decided on their participation. Greece has given private sector creditors until Sept 9 to decide on how they want to participate in a bond swap, Reuters quotes Greek bankers and finance ministry officials. By that time, banks will have to respond to a letter of inquiry from the finance ministry. A final commitment is due by mid-October.

Wall Street Journal Real Time Brussels Blog reports Herman Van Rompuy speaks on seigniorage.  “We could only have euro bonds the day when there is truly a real budgetary convergence, the day when everyone is running a balanced budget or practically a balanced budget. That’s when we could have a euro bond. But not before.”

2) … Precious Metal Mining Shares Lose Their Seigniorage as Gold falls to $1,754.
Bloomberg reported that Gold Tumbled The Most Since December 2008 Falling to 1,754 on Wednesday August 24, 2011. Gold plunged in New York, heading for the biggest drop in 18 months, on speculation that financial markets may be stabilizing, eroding the appeal of the precious metal as a haven. Bullion has tumbled more than 5 percent in two days, erasing gains in the past two weeks that sent the metal up as much as 16 percent since Aug. 5 to a record $1,917.90 an ounce yesterday. On Aug. 16, Wells Fargo & Co. said rising speculative demand from investors had pushed the market into a “bubble that is poised to burst.” “This is liquidation from a crowded trade,” Adam Klopfenstein, a senior market strategist at MF Global Holdings Ltd. in Chicago, said in a telephone interview. “In the short run, there’s more optimism and that doesn’t bode well for gold. Investors have been using gold more as a fear barometer than a proxy for inflation.” Gold futures for December delivery plunged $72.30, or 3.9 percent, to $1,789 an ounce at 12:11 p.m. on the Comex in New York. A close at that level would be the biggest loss since Feb. 4, 2010.

The chart of gold mining stocks relative to US Treasuries, GDX:EDV, shows that the HUI Precious Metal Mining Shares, and the US Treasuries always make market turns lower together.

The gold mining stocks, GDX, are once again loosing their seigniorage.

The junior gold mining stocks, GDXJ, are loosing their seigniorage at a faster rate than their larger peers.

Silver Wheaton, SLW, has turned lower.

The silver mining stocks, SIL, can no longer preserve wealth.

The worlds leading banks, once guarantors of carry trade investing, are once again loosing their seigniorage.

SMFG,

HDB

KB  

The world government bonds, BWX, are turning lower in value

x

The European Economic Government Envisioned By Chancellor Merkel And President Sarkozy Will Require Ths Sacrifice Of Fiscal Authority As Well As European Core Capture Of Institutional Holdings ….. Stocks Rise On Hope Of Federal Reserve Action

August 23, 2011

European Financials report for August 23, 2011

1) … Tyler Durden reports on the rise of European Bank counterparty risk and the soon coming regime change that will feature a sacrifice of fiscal authority by European nations as well as a foreiture of institutional holdings. Seven Charts Showing The Lock Out Of European Capital Markets And The Surge In Counterparty Risk.  It is not 2008. It is far worse. Unlike 3 years ago, the central banks were not all in on “bailing out the world” and thus actually had dry powder to do so, as they eventually did: where will the status quo go for a global bail out this time? Below we present 7 Bloomberg charts, following yesterday’s indication of a liquidity lock out, showing all too well the surge in counterparty risk, but more importantly the lock out in European capital markets. To all those who thought that transferring ever more peripheral risk to the European core would have no consequences (sorry, it did: German CDS is wider than the UK for the first time ever),

And Mr Durden adds Vice Chairman Of Germany’s CDU Party Demands Gold As Collateral From European Bailout Recipients. Yesterday we had the Bundesbank making a very strong case for why a pan-European bailout (funded by Germany), would need a “fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty” (beneficial for Germany), today we see the next and final stage of the proposed annexation of Europe by Germany – that which focuses on procuring that which is really important. Hint: not spam. From Spiegel: “Minister Ursula von der Leyen pushes the hard line: any financial aid for euro countries should only come against collateral, as gold reserves or industrial holdings.”  More googletranslated conditionality: “The CDU politician wants to ensure future aid allocations from the rescue fund through extensive security of the country. The ARD Berlin Studios said the minister, who is also vice-chairman of the CDU party, many of these countries had large reserves of gold and industrial holdings, which they could use for such collateral.” And now we know the next steps: i) Eurobonds will come after there is a change to the European constitution which make Germany supreme ruler, and ii) at that point Germany will have all the gold in Europe pledging its bailout. Yes, gold, not spam

2) … Between The Hedges relates the serious nature of the European Sovereign Debt Crisis as Bloomberg reports European Failure to Solve Region’s Banking Crisis Returns to Haunt Markets. Four years to the month since the global credit crisis began, European lenders remain dependent on central bank aid, plaguing markets and economies worldwide. Emergency steps such as unlimited loans from the European Central Bank are keeping many banks in Greece, Portugal, Italy and Spain solvent and greasing the lending of others, while low interest rates and debt-buying are containing borrowing costs. Such aid is needed as concerns about slowing economic growth and sovereign debt prompt banks to curb lending, stockpile dollars and hoard cash in safe havens. “I’m not sleeping at night,” said Charles Wyplosz, director of the Geneva-based International Center for Money and Banking Studies. “We have moved into a new phase of crisis.” The signs of distress are widespread and mounting: Banks deposited 105.9 billion euros  with the ECB overnight on Aug. 19, almost three times this year’s average, rather than lending the money to other lenders.

The premium European banks pay to borrow in dollars through the swaps market increased yesterday for a fourth straight day. European bank stocks have sunk 22% this month, led by Royal Bank of Scotland Group Plc (RBS) and Societe Generale (GLE) SA. Edinburgh-based RBS, Britain’s biggest government-controlled lender, has tumbled 45 percent, and Paris-based Societe Generale, France’s second-largest bank, dropped 39 percent. The extra yield investors demand to buy bank bonds instead of benchmark government debt surged to 298 basis points on Aug. 19, or 2.98 percentage points, the highest since July 2009, data compiled by Bank of America Merrill Lynch show. The cost of insuring that debt against default surged to a record yesterday. The Markit iTraxx Financial Index linked to senior debt of 25 European banks and insurers rose to 250 basis points, compared with 149 when Lehman collapsed. “The debt has been transferred from the banks to the sovereign, but it hasn’t actually been eradicated,” said Gary Greenwood, a banking analyst at Shore Capital in Liverpool. “Until the sovereigns get their balance sheets in order, then these concerns are going to remain.” Funding markets have seized up as investors speculate that sovereign debt writedowns are inevitable. Banks in the region hold 98.2 billion euros of Greek sovereign debt, 317 billion euros of Italian government debt and about 280 billion euros of Spanish bonds, according to European Banking Authority data. The difference between the three-month euro interbank offered rate, or Euribor, and the overnight indexed swap rate, a measure of banks’ reluctance to lend to each other, was at 0.67 percentage point on Aug. 22, within 3 basis points of the widest spread since May 2009. “The central bank is the only clearer left to settle funds between banks,” said Christoph Rieger, head of fixed-income strategy at Commerzbank AG (CBK) in Frankfurt. “There is a mistrust between banks in general, between regions and with dollar providers overall.”

European Banks Must Pay Up to Borrow $100 Billion Amid Crisis: Euro Credit. European banks with more than $100 billion of cash to raise by year-end will have to pay up because investors perceive them as the worst credits they’ve ever been. The cost of insuring the senior and junior bonds of 25 banks and insurers doubled since April, according to the Markit iTraxx Financial indexes of credit-default swaps. The Euribor- OIS spread, a gauge of banks’ reluctance to lend to each other, reached the widest since April 2009 this month, while the cost for European banks to fund in dollars matched a 2 1/2-year high. “This return of generalized banking risk marks a new phase in the unfolding European drama,” said Lisa Hintz, an analyst in New York at Capital Markets Research Group, a unit of ratings firm Moody’s Investors Service. “Investors have heightened concerns about sovereign and financial institution risk.” Morgan Stanley’s estimate of the 80 billion euros ($115 billion) banks need until year-end doesn’t include the extra capital that regulators have ordered many to raise to protect against a re-run of the 2007 global financial meltdown. With the bond market shut to all but the strongest banks, weaker lenders, particularly those from the euro region’s so-called peripheral nations, are relying on the European Central Bank for its unlimited six-month loans. “The banks seem to prefer to deposit cash with the ECB rather than lend it out to others that need it,” said John Raymond, an analyst at the financial-research firm in London. “In itself, that’s a sign of stress in the interbank market” and means companies must also pay more to borrow, he said. The extra yield investors demand to hold bank bonds rather than benchmark government debt surged to 298 basis points, or 2.98 percentage points, according to Bank of America Merrill Lynch index data. That’s the widest spread since July 2009 and up from 220 at the end of last month. Average yields jumped to an almost two-year high of 4.46 percent on Aug. 12, before dropping back to 4.38 percent, the data show.

Merkel Never Holding Hands With Sarkozy Betrays European Leadership Crisis. German Chancellor Angela Merkel and French President Nicolas Sarkozy have never held hands like Helmut Kohl and Francois Mitterrand once did at a World War I battlefield. Merkel worries they don’t even talk enough. After no fewer than seven one-on-one meetings the past 18 months — in addition to parleys at summits — the leaders of the biggest European economies have yet to hit on an effective solution to the crisis stalking the euro, Fredrik Erixon, head of the European Centre for International Political Economy in Brussels, said in an interview. “Poor relations between Merkel and Sarkozy are one of the big problems of dealing with the debt crisis because it’s up to European Union leaders to handle this,” Erixon said. “It’s not a personal relationship that can deliver grand things because the trust isn’t there.”

3) … Neoliberalism featured the Spirit of the Cat In The Hat and The Spirit Of The Tooth Fairy.
Bernanke’s No ‘Tooth Fairy,’ Fed’s Fisher Says – FBN. U.S. Federal Reserve Chairman Ben Bernanke is “not the tooth fairy,” a top Fed official told Fox Business Network on Monday, suggesting the Fed chief won’t use a speech later this week to extend new monetary stimulus. “His job is not to leave presents under the pillow of people who have desires that may not be easily fulfilled,” Dallas Federal Reserve Bank President Richard Fisher said, according to a partial transcript provided by the network. “Our job is to put things right in the long term.” Asked what Bernanke will say at a highly-anticipated speech on Friday at an annual central bank conference in Jackson Hole, Wyoming, Fisher said “You’ll learn when you hear him speak. Ben Bernanke’s not the tooth fairy.”

4) … Neoauthoritarianism features Wildcat Governance with government leaders tearing and clawing one another. The New York Times reports Members of Merkel’s Party Emphasize Opposition to Euro Bonds. Chancellor Angela Merkel of Germany has faced harsh criticism for being too passive in the face of Europe’s debt crisis. But on Monday, members of her own party and the Bundesbank made it clear just how hard it would be for her to pursue any solution that asked German taxpayers to sacrifice for the sake of European unity. With many economists calling for Europe to expand the euro zone’s bailout fund or start issuing bonds guaranteed by all 17 of the countries that share governance of the common currency, German politicians at home struck back. “Euro bonds would push up German interest rates,” Philipp Missfelder, the foreign affairs spokesman for Mrs. Merkel’s Christian Democratic Union, said Monday after a meeting of the center-right party’s board. “The cost of servicing the debt would be enormous.” Meanwhile, the Bundesbank, representing the views of Germany’s monetary authorities within the European Central Bank, complained Monday that liabilities acquired by weaker countries were being offloaded onto the stronger ones. “A major step is being taken toward common assumption of risks from weak national finances and economic missteps,” the Bundesbank said in its monthly bulletin. “This weakens the foundation of fiscal responsibility and self-discipline.”

5) … Neoauthoritarianism is replacing Neoliberalism. The Milton Friedman Free To Choose floating currency regime, which came with the US going off the gold standard in 1971 died in May 2011, as world stocks, ACWI, turned lower.  Tbe Beast Regime of Neoauthoritarianism is now starting to rule economically and politically in all of mankind’s seven institutions and the world’s regions ten regions. Its nature is state corporatism, that is statism, with government, rating agencies, and business intertwined as EconomicPolicy Journal reports S&P Prez Taken Down; To Be Replaced by Bankster!!

6) … Stocks rose today as Reuters reports Bernanke to aid recovery with gradual boost in dosage.
ACWI 3.3
VSS 2.8
EWY 5.6
EWA 4.6
KROO    4.9
TWON 4
EWO 2.8
VGK 3.4
EUFN 3.0

HHH 7.4
QCLN 6.9
XSD 6.2
FDN 5.8
PSCD 5.9
PSCH 5.5
RZG 5.5
PSCT 5.4
IEZ 5.5
IWO 5.3
IWO 5.3
PNQI 5.2
KRE 5.2
KOL 5.1
COPX 5.1
OIH 5.0
SKYY 4.9
IWM 4.8
GEX 4.8
XRT 4.7
QTEC 4.7
PSCI 4.6
XBI 4.5
XLE 4.5
KOL 4.4
SLX 4.4
IGN 4.4
JKH 4.4
PXN 4.4

XOM 5.0 Exxon led the Dow, DIA, on rise of the price of oil, USO.

7) … A fierce leader, The Sovereign, will be called to lead a One Euro Government; his Seignior, a European Banker, will provide a new seigniorage based upon their word, will and way.
Minister Ursula von der Leyen has heard and heeded the 1974 Clarion Call of the Club of Rome and spoke with its Authoritarian Imperative communicating that the the European Economic Government, envisioned by Chancellor Merkel and President Sarkozy will require the sacrifice of Fiscal Authority as well as the forfeiture of Institutional holdings. The coming European Leader, the Sovereign, very possibly Herman Van Rompuy, will rise to lead the Eurozone. This President of the EU, will be a New Charlemagne, whose power will rival that of the former Charlemagne, as he governs what will essential be a Revived Roman Empire. Minister Ursula von der Leyen, Chancellor Merkel, and President Sarkozy are simply the Club of Rome’s Apostles heralding the Ten Toed Kingdom of Global Economic Government.

Herman Van  Rompuy is a European Federalist and an Authoritarian. He spoke with the Authoritarian Imperative of the Clarion Call of the Club of Rome for regional economic governance in Bloomberg article  EU President Van Rompuy Opposes Common Euro Bonds stating “We could have euro bonds on the day when there is genuine budgetary convergence, the day when everyone is in balance or virtually in balance.”  Soon, the stock values of the European Financials, EUFN, will be worthless as investors flee from the European sovereign debt crisis. Then the European Treasuries will be equivalent, that is all in balance, having no value. At that time, out of global financial collapse, a New Seigniorage, that is a new moneyness. will come forth from the word, will and way of the European Sovereign, and his Banker, The Seignior, who will be appointed by European Leaders such as Angela Merkel and Nicolas Sarkozy. Diktat, not Liberty will carry Neoauthoritarianism’s moneyness, and the people will marvel, and be amazed and follow after it, giving their full allegiance to it.    

August 27, 2011 is scheduled as DC Full Democracy Day with a rally at Freedom Plaza, and a march from the Lincoln Memorial to the Martin Luther King Memorial.  Volkswagen Group of America has donated one million to he MLK Memorial, which includes the “Mountain of Despair” and the “Stone of Hope,” and which features a 30-foot sculpture of Dr. King, Jr. who stood for hope, freedom and justice. Yet as as Minister Ursula von der Leyen’s statement evidences, national sovereignty and freedom are part of the bygone era of Neoliberalism.  Freedom, Liberty, and Choice are placards, posters and tombstones to a prior era of leverage and democracy that came through carry trade investing and securitization of sovereign debt.

Herman Van Rompuy Says No Eurobonds Until Things Are in Balance … In The Age Of Neoauthoritarianism, Seigniorage, That Is Moneyness Will Come Through The Word, Will And Way Of The Sovereign

August 22, 2011

European Financial Institutions Report For Friday August 19, 2011

The WSJ reports Stocks Tumble On US Growth Fears, European Banks; DJIA Off 435  Stocks tumbled amid growing fears of a global recession, as investors confronted a grim mix of US economic data and fresh concerns about Europe’s banks. European Financials, EUFN, -1.5%, -7.3% for the week, -22.6% year to date.

Bloomberg reports Europe Banking Shares Tumble for Third Day on Funding, Earnings Concern. European banks, EUFN, tumbled, led by Lloyds Banking Group Plc (LLOY) and Intesa Sanpaolo SpA (ISP), on concern firms will struggle to fund themselves and increase earnings as the region’s sovereign debt crisis strangles economic growth. Lloyds, Britain’s second-biggest government-assisted bank, fell 6.2 percent in London trading, while Intesa slid 5.9 percent in Milan. The 46-member Bloomberg Europe Banks and Financial Services Index tumbled 3 percent after dropping the most in two years yesterday. While “the chances of a genuine liquidity crisis as experienced in 2008 are reasonably remote,” lenders may face a “slower-moving, but still toxic, funding crisis,” Deutsche Bank AG (DBK) analyst Matt Spick said in a client note. Moreover, “the weight of negative earnings momentum as we head into the second half represents a major ongoing risk for the European banks,” he said. The Bloomberg European banks index tumbled 10 percent this week on signs lenders are facing tougher funding conditions. Banks’ sale of long-term debt fell behind again in July and August, which may be the weakest month on record, and that could force firms to further reduce leverage, bad news for banks and the economy, Spick said in the note.

Bloomberg reports Financial Debt Risk Jumps to Record in Europe on Growth Concern. The cost of protecting European financial debt surged to a record on concern global economic growth is faltering and banks will struggle to fund themselves. The Markit iTraxx Financial Index of credit-default swaps linked to senior debt of 25 banks and insurers increased as much as 12 basis points to 243, a record based on closing prices, according to JPMorgan Chase & Co. and was trading at 237 basis points at 10:30 a.m. in London. The Markit iTraxx SovX Western Europe Index of swaps linked to the debt of 15 governments increased for a third day, climbing 1 basis point to 291. Contracts on Spanish government debt rose 6 basis points to 370, according to CMA. Italy swaps added 8 basis points to 362 and France was up 2 to 152. The Markit iTraxx Crossover Index of 40 companies with mostly high-yield credit ratings increased 11 basis points to 655.5. The Markit iTraxx Europe Index of 125 companies with investment-grade ratings rose 2 basis points to 154 basis points.

Herman Van  Rompuy is a European Federalist and an Authoritarian. He spoke with the Authoritarian Imperative of the Clarion Call of the Club of Rome for regional economic governance in Bloomberg article  EU President Van Rompuy Opposes Common Euro Bonds stating “We could have euro bonds on the day when there is genuine budgetary convergence, the day when everyone is in balance or virtually in balance.”  Soon, the stock values of the European Financials, EUFN, will be worthless as investors flee from the European sovereign debt crisis. Then the European Treasuries will be equivalent, that is all in balance, having no value. At that time, out of global financial collapse, a New Seigniorage, that is a new moneyness. will come forth from the word, will and way of the European Sovereign, and his Banker, The Seignior, who will be appointed by European Leaders such as Angela Merkel and Nicolas Sarkozy. Diktat, not Liberty will carry Neoauthoritarianism’s moneyness, and the people will marvel, and be amazed and follow after it, giving their full allegiance to it.    

The true European Government Government called for by Chancellor Merkel and President Sarkozy, is part of the Ten Toed Kingdom of Global Economic Governance which forms the Beast Regime of Authoritarianism replacing the Milton Friedman Free To Choose Currency Regime, which passed away in May 2011, when the wold stocks, ACWI, fell lower.

The Clarion Call of the Club of Rome for regional economic government was heard and heeded by Chancellor Merkel and President Sarkozy. Clarion means trumpeting, as the word comes from the Latin ord for trumpet and translates into English as clear, ringing and sharp. It is a call to action, a call to duty.

The two foremost European leaders have suggested Herman Van Rompuy as the leader for the European Economic Government. It’s likely that he will rise to be President of the EU. Mr. Van Rompuy is distinguished in that he is brilliant, multilingual and unlike his peers, does not get involved in affairs with women. He will come in like a lamb, yet proceed like a fierce lion. His rule will be characterized by wildcat governance, as he will have to contend with many who oppose his way of austerity and reject his Seignior’s moneyness, which will be based upon their word, will and way. This Sovereign, will be the New Charlemagne, in a type of Revived Roman Empire.     

The Call of the Club of Rome produced an authoritarian imperative for regional economic goverment, which will come as leaders meet in summits and waive national sovereignty. The 1974 Conclave of Elites’ Call, is like a magnet drawing iron elements. it is both clear and compelling. Mrs Merkel will likely loose her elected office, yet the die is cast and destiny moves on. Neoauthoritarianism has replaced Neoliberalism, and fate will work to produce regional economic government in the world ‘s ten regions.

Neoauthoritarianism is characterised by wildcat governance, as seen in the Reuters reports Nine dead in Taliban assault on British Council in Kabul. Taliban attackers laid siege to a British cultural center in the Afghan capital on Friday, killing at least nine people during an hours-long assault. And Neoauthoritarianism is characterised by The  Spirit of Wilding as is seen in the Associated Press report Rapper arrested in Ohio after organizing flash mob.

Only A One Euro Government And A Strong Leader Can Save The Euro Now

August 20, 2011

1) … European Financials Report for August 19, 2011

Bloomberg reports Europe Banking Shares Tumble for Third Day on Funding, Earnings Concern. European banks, EUFN, tumbled, led by Lloyds Banking Group Plc (LLOY) and Intesa Sanpaolo SpA (ISP), on concern firms will struggle to fund themselves and increase earnings as the region’s sovereign debt crisis strangles economic growth. Lloyds, Britain’s second-biggest government-assisted bank, fell 6.2 percent in London trading, while Intesa slid 5.9 percent in Milan. The 46-member Bloomberg Europe Banks and Financial Services Index tumbled 3 percent after dropping the most in two years yesterday. While “the chances of a genuine liquidity crisis as experienced in 2008 are reasonably remote,” lenders may face a “slower-moving, but still toxic, funding crisis,” Deutsche Bank AG (DBK) analyst Matt Spick said in a client note. Moreover, “the weight of negative earnings momentum as we head into the second half represents a major ongoing risk for the European banks,” he said. The Bloomberg European banks index tumbled 10 percent this week on signs lenders are facing tougher funding conditions. Banks’ sale of long-term debt fell behind again in July and August, which may be the weakest month on record, and that could force firms to further reduce leverage, bad news for banks and the economy, Spick said in the note.

Bloomberg reports Financial Debt Risk Jumps to Record in Europe on Growth Concern. The cost of protecting European financial debt surged to a record on concern global economic growth is faltering and banks will struggle to fund themselves. The Markit iTraxx Financial Index of credit-default swaps linked to senior debt of 25 banks and insurers increased as much as 12 basis points to 243, a record based on closing prices, according to JPMorgan Chase & Co. and was trading at 237 basis points at 10:30 a.m. in London. The Markit iTraxx SovX Western Europe Index of swaps linked to the debt of 15 governments increased for a third day, climbing 1 basis point to 291. Contracts on Spanish government debt rose 6 basis points to 370, according to CMA. Italy swaps added 8 basis points to 362 and France was up 2 to 152. The Markit iTraxx Crossover Index of 40 companies with mostly high-yield credit ratings increased 11 basis points to 655.5. The Markit iTraxx Europe Index of 125 companies with investment-grade ratings rose 2 basis points to 154 basis points.

Business Insider reports Father of the Euro: It’s “On the edge of a precipice”. Jacques Delors, one man responsible for ushering in the European Economic and Monetary Union, told Swiss newspaper Le Temps that Europe and the euro risk falling from “the edge of a precipice.”

Between The Hedges relates Tiroler Tageszeitung reports Jean-Claude Juncker, who leads the group of euro-area finance ministers, said the countries sharing the currency must give up sovereign powers for a common “economic government” to make sense, according to an interview. “An economic government without relinquishing national competencies would be dead on arrival,” Juncker was quoted as saying.

Carmen Cristea of NineOclock.ro reports Basescu pleads for creation of ‘United States of Europe’
We must decide fast, in the next 2 to 3 years, whether to create the United States of Europe”, Mediafax quoted Basescu as saying. The head of state described the European Union’s future as “uncertain” unless the “necessary decisions are.

2) … The decision to create a United States of Europe was made by God in eternity past.
The true European Government Government called for by Chancellor Merkel and President Sarkozy, is part of the Ten Toed Kingdom of Global Governance presented in the progression of kingdoms found in  Daniel 2:31-35 which prophesies five kingdoms to rule over mankind:
1)  Head of Gold: Babylon Empire
2)  Chest and Arms of Silver: Merdo-Persian Empire
3) Belly and Thighs: Greek Empire
4) Legs of Iron: Roman Empire
5) Feet and Ten toes of Iron And Clay: British Empire and American Imperialism and ten regions of global economic government.

In May 2011, the world passed through an inflection point moving from Neoliberalism and into Neoauthoritarianism, as is seen in the wold stocks, ACWI, falling lower.

The Clarion Call of the Club of Rome for regional economic government was heard and heeded by Chancellor Merkel and President Sarkozy. Clarion means trumpeting, as the word comes from the Latin word for trumpet and translates into English as clear, ringing and sharp. It is a call to action, a call to duty.

The two foremost European leaders have suggested Herman Van Rompuy as the leader for the European Economic Government. Its likely that he will rise to be President of the EU. Mr. Van Rompuy is distinguished in that he is brilliant, multilingual and unlike his peers, does not get involved in affairs with women. He will come in like a lamb, yet proceed like a fierce lion. His rule will be characterized by wildcat governance, as he will have to contend with many who oppose his way of austerity and reject his Seignior’s moneyness, which will be based upon their word, will and way. This Sovereign, is foretold in bible Prophecy in Revelation 13:5-10; he will be the New Charlemagne, in a type of Revived Roman Empire.     

The Call of the Club of Rome produced an authoritarian imperative for regional economic goverment, which will come as leaders meet in summits and waive national sovereignty. The 1974 Conclave of Elites’ Call, is like a magnet drawing iron elements. it is both clear and compelling. Mrs Merkel will likely loose her elected office, yet the die is cast and destiny moves on. Neoauthoritarianism has replaced Neoliberalism, and fate will work to produce regional economic government in the world ‘s ten regions; this is presented as the Beast System of Revelation 13:1-4.    

Liberty will be in continual conflict with Neoauthoritarianism’s Ten Toed Kingdom of Global Governance, which is preesnted both in Revelation 13:1-2 and in Daniel 2:34.  Liberty and diktat are like clay and iron, that is they are non compatible building materials, regional economic governance will crumble, and out of the ruins, the Sovereign of Revelation 13:5-10, will eventually rise to global power and install a One World Government described as beastly in Daniel 7:7 and Revelation 13:1-4. His Seignior, meaning top dog banker who takes a cut, described in Revelation 13:11-18 will install universal regulation of banking globally, specifically a One World Bank, and provide seigniorage globally in the form of The Mark, meaning etching in or tattoo upon.

3) … News of the day
Neoliberalism has replace neoauthoritarianism as the world’s regime for political and economic governance; the former was characterized by The Spirit Of The Cat In The Hat, the latter is characterized by The Spirit Of Wilding as Kevin Murphy of Reuters reports Kansas City sets youth curfew after ‘flash mob’ shooting.

Zachary Roth of The Lookout reports Bank of America to lay off thousands — and struck by lightning

Philip Moeller, of US News and World Report relates Social Security’s annual cost of living adjustment, COLA, seems assured of rising in 2012 by a few percent, its first increase in three years

Reuters reports that the Greek Finance Minister Evangelos Venizelos told the Greek cabinet yesterday that an additional €3bn-€4bn in austerity cuts may be needed to account for the larger than expected recession, which has resulted in lower than expected tax revenues

Wall Street Journal reports Buyout Shops Get Mauled by Market. Private equity, PSP, is being pummeled. Few shares are experiencing the kind of beating that big buyout firms are enduring. Firms like Blackstone Group LP, KKR & Co., Apollo Global Management LLC and Fortress Investment Group LLC have seen their shares fall between 19% and 27% so far this month, compared with a drop of 9.5% for the Dow Jones Industrial Average. On Thursday, the carnage continued, as these stocks fell between 1.6% and 11%, while the Dow average fell 3.7%. The troubles for these shares underscore how disappointing many private-equity companies have been for investors.


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