Archive for March, 2012

Stocks Have Best Day In 2012 On Stress Tests Of US Banks But Bonds Plummet And The US Dollar Rose Establishing The Death Of Fiat Money

March 14, 2012

Financial Market Report Form March 13, 2012

Introduction ,,, US Stocks led world stocks higher as US Treasuries fell sharply lower as the yield curve steepened … Bonds overall plummeted as the US Dollar rose establishing the death of fiat money.

On the results of the US Fed stress test of US banks, and in response to US Treasuries trading strongly lower, US Stocks, VTI, SPY, DIA, QTEC, rose; being driven higher by JP Morgan, JPM, Goldman Sachs, GS, Morgan Stanley, Citigroup, C, Bank Of America, BAC. Jimmie Dimon of JP Morgan said a dividend increase is forthcoming.

Regional Banks, KRE, International Banks, IXG, Chinese Financials, CHIX, European Financials, EUFN, rose strongly taking India, INDY,  India Small Caps, SCIF, China, YAO, Brazil, EWZ, Russia, RSX, the Brics, EEB, and Emerging Markets EEM, higher. Yet Chinese Financials, CHIX, Braxil Financials, BRAF, and India Earnings, EPI, trade well below their recent highs.

Small Cap Value, RZV, Home Building ITB, US Infrastructure, PKB, Gaming BJK, Semiconductors, Software, IGV, Semiconductors, XSD, Copper Mining, COPX, Consumer Discretionary, IYC, Retail, XRT, Biotechnology, XBI, Leveraged Buyouts, PSP,  Dividend payers, DVY, traded higher.

Both the US Regional Banks, KRE, to S&P Materials, MXI, differential, and the Housing, ITB, to China Industrial, CHIX, differential is stunning, suggesting a final safe haven rally in arge cap stocks, JKE, away from the epicenter of sovereign debt contagion, that being Italy, EWI, and Greece, GREK. The monster of Neoauthoritarianism is rising out of these Mediterranean Sea countries, to rule in all of mankind’s seven institutions and ten world regions.

The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened, forcing Bonds, BND, sharply lower, as US Treasuries, ZROZ, EDV, TLT, IEF, IEI, fell strongly lower, forcing longer duration corporate bonds, BLV, and corporate bonds, LQD, lower. Emerging Market Bonds, EMB, rose to a new high on safe haven buying. The Flattener ETF, FLAT, traded lower, and the Steepner ETF, STPP, traded higher.

The Interest Rate on the US The Year Note, ^TNX, rose to 2.1%, reflecting the bond vigilantes being able to call interest rates higher, as the seigniorage, that is the moneyness of the US Central Bank’s monetary policies, have failed. This with the strong trade lower in the Yen, FXY, and the nascent trade lower in the Australian Dollar, FXA, the Brazilian Real, BZF, the British Pound Sterling, FXB, and the Swedish Krona, FXS, documents the failure of world central banks’ monetary policies, and the death of fiat money, with confirmation coming from the rise in the US Dollar, $USD, UUP to 80.19.With the rise in US Treasury yields and the rise in the US Dollar, $USD, capitalism has died, and regional global governance will rise in its place.

The monetization of debt globally finally has resulted in a rise in sovereign and corporate interest rates globally, causing derisking out of stocks, and deleveraging out of commodities, on debt deflation, that is currency deflation.

With sovereign national governments failing, Bonds, BND, and currencies, such as the Emerging Market Currencies, CEW, the Brazilian Real, BZF, the Australian Dollar, FXA, the British Pound Sterling, FXB, the Swedish Krona, FXS, and the Euro, FXE, turning lower, both fiat money and credit have died.

Fiat wealth consisting of stocks and bonds, will now literally be sawn asunder, and fall ever lower, as currencies trade increasingly lower, on the exhaustion of the worlds’ central bank monetary authority, causing competitive currency devaluation.

Fate, through creative destruction, is passing the baton of sovereignty authority to new sovereigns, such as the EU ECB and IMF Troika, who are providing diktat as both money and credit. The fiat money system is history and the diktat money system is rising in its place. Sovereign insolvency and bank insolvency are the factors causing the seigniorage, that is the moneyness, of the global debt trade to fail. Soon the seigniorage of diktat, will arise to underwrite debt servitude for all. An inflection point in economic history has been reached as the monetization of debt is causing the destruction of currencies, leading all down the road to serfdom, into a global gulag of debt servitude and loss of national sovereignty.

With stocks, rising to previous highs, and bonds, and currencies trading lower on competitive currency devaluation, the fiat money system is history; and the diktat money system will rise to govern mankind in regional totalitarian collectivism and regional statism. Regionalization is the way forward in globalism.

Capitalism’s dynamos of growth and profit are exhausting on the failure of neo liberal credit and carry trade investing. New dynamos of regional security, stability and sustainability will establish the ten toed kingdom of regional global governance, terminating the Anglo American hegemony that began in the late 1700s, even though Oliver Knox reports Obama, Cameron reaffirm Afghan strategy; the two leaders say NATO is still committed to shifting to a support role in Afghanistan in 2013.

Gold, GLD, traded lower as Base Metals, DBB, and Timber, CUT, rose, taking commodities, DBC higher, but below their recent highs.

Stock bear market ETFs, such as TWM, and EEV, traded lower on falling volatility, VIXY; but bond bear market TBT rose.

Bloomberg reports Soaring Target2 Imbalances Stoke German Risk Angst. German angst is growing as an entry on the Bundesbank’s balance sheet swells to a sum worth about 20 percent of economic output, a sign of the extent to which Europe’s largest economy is funding the region’s laggards. The European Central Bank’s Target2 system, which calculates debts between the euro region’s central banks, shows the Bundesbank is owed 489 billion euros ($656 billion), up almost 65 percent from a year earlier. German central bank President Jens Weidmann wrote to ECB President Mario Draghi last month to warn about growing systemic risks, Frankfurter Allgemeine Zeitung newspaper reported Feb. 29. “The Germans are very much justified in their concern,” said John Whittaker, an economist at Lancaster University Management School, who drew attention to the growing imbalances in papers published last year. “The Target2 liabilities are just as risky and just as real as holding the government bonds of Greece and other peripherals.

Bloomberg reports Merkel Says Europe Is ‘Good Way’ Up Mountain, Not Over It. German Chancellor Angela Merkel said that European efforts to resolve the debt crisis are making progress, even as “imbalances” in euro-area economies show that the task is far from complete. “We’ve come a good way along the mountain path, but we’re not completely over the mountain,” Merkel told reporters in Rome late yesterday after talks with Italian Prime Minister Mario Monti. “I suspect that in the next few years there will continue to be new mountains — there won’t be a celebratory event in which we say we’re over the mountain and now we can sit among the trees and say that we’ve done it.” Merkel praised Monti’s “bold” efforts since taking office on Nov. 16 to overhaul Italy’s economy, which include 20 billion euros in austerity measures and steps to deregulate services amid surging Italian bond yields that threatened to rip apart the currency region. Aided by European Central Bank liquidity measures, Italian 10-year borrowing costs have fallen to 4.89 percent from a euro-era record of 7.26 percent on Nov. 25. Monti, a former European Union competition commissioner, said Italy has “arrested” the crisis though not yet overcome it. “Italy still has homework to do,” he said. Italy prefers to rely on its “own strengths” rather than seek any external aid during the worst moments of the crisis.

Emerging Market Stocks Fall Lower On Fears Of Falling Growth And Exhaustion Of Carry Trade Investing

March 13, 2012

Financial Market Report for March 12, 2012

Competitive currency devaluation is underway with the the Brazilian Real, BZF, the Australian Dollar, FXA, causing the World Stocks, VT, and the World Small Caps, VSS, Emerging Markets, EEM, and the BRICS, EEB, trading lower with Semiconductors, XSD, and the Copper Mining, COPX, trading lower on fears of falling global growth and exhaustion of carry trade investing

In Iran and Afghanistan, we are witnessing the beginning of the end of Anglo American hegemony with increased hostility between native peoples and foreign troops.

Capitalism is dying on the failure of fiat money and exhaustion of central bank credit. Through creative destruction, regional global governance will arise to provide diktat as well as money and credit.

National Bank of Greece, NBG, Greece, GREK, and the European Financials traded lower. Expropriation challenged, Argentina, ARGT, sovereign debt challenged, Israel, EIS, global growth challenged Thailand, THD, and Malaysia, EWM, traded lower.  Brazil Financials, BRAF, led Brazil, EWZ, Brazil Infrastructure, BRXX, and Brazil Small Caps, EWZS, traded lower, as the government extended the transaction tax on foreign borrowing, and as carry trade investing unwound.

Shane Romig of Dow Jones News Service reports On last Thursday, the government asked the company to reinvest its earnings from the last two years in exploration and production instead of paying dividends to shareholders. Shareholders were unimpressed. The request comes amid an intense government campaign to force YPF, which is majority-owned by Spain’s Repsol, YPF, to boost production. Argentina’s President Cristina Kirchner and government officials have blasted YPF repeatedly in recent months for failing to raise output at a time when Argentina faces a growing and increasingly expensive energy deficit.  Speculation that the government is considering nationalizing the company has sent share prices plummeting in recent weeks.

Deus Forex Machina writes that Australian Dollar, FXA, is trading lower on fears of lower growth.The Aussie Dollar is under a little more pressure, no doubt because it is directly related to the slowdown in China that people are now talking about. In similar vain Market Insider writes The Australian dollar has slumped to its lowest level in almost seven weeks as markets continue to react to weak Chinese trade figures

The chart of DTE Energy, DTE, shows it leading Utilities, XLU, higher.

US Infrastructure stocks, trading lower included MTW, ARII, GBX, TEX, CX, TRN

Viterra, VT.TO, blasted higher to 14.21 after media mentioned a possible buyout.

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

In news of Estonia, Slovenia, and Slovakia, that  is of developing Europe, ESR, and GUR, Open Europe reports an interview with Italian daily La Repubblica yesterday, German Finance Minister Wolfgang Schäuble said, “If we were facing a similar crisis [as Greece is] we would do everything to remain in the eurozone…Greece’s minimum wages have now been cut to the level of Spain’s. One should listen to Estonians, Slovenians or Slovakians: the reforms Greece has been asked to implement are less than half those accepted by those countries after 1989.” He also warned, “Nobody can rule out that Greece will need another [aid] package.”

Open Europe continues Social democrats triumph in Slovakian elections as anti-bailout party loses half of its seats Slovakia’s social democratic SMER Party gained 44% of the vote at yesterday’s elections, winning an absolute majority in the Slovakian Parliament. The elections were held early after the previous coalition government collapsed over the country’s contribution to the eurozone bailouts. Richard Sulik’s Freedom and Solidarity party, which opposed the bailouts, lost around half of its seats. SMER leader Robert Fico has said he will be a reliable partner for the EU, arguing that: “we draw so much money from the EU that we have to demonstrate our solidarity”. However, Fico’s campaign promises of increased social spending could clash with his commitment to reducing Slovakia’s budget deficit, and may also violate the EU’s Stability and Growth Pact. BBC Economist EUobserver IHT FT WSJ EurActiv Süddeutsche Welt Welt 2 Les Echos La Tribune

Finnish Foreign Minister: “We should move forward” with EU military HQ without the UK. EUobserver  reports that Finnish Foreign Minister Erkki Tuomioja has complained about the lack of political will among EU member states to make progress towards a common EU foreign policy. Citing the UK’s opposition to creating a joint command centre in Brussels for EU military operations as an example, he said, “The UK is reluctant to go ahead with this but everybody else wants to, so we should move forward.”

Der Spiegel reports that, in a joint letter to the Danish EU Presidency, the finance ministers of nine EU member states – including Germany, France and Italy – have argued, “We are convinced that a financial transaction tax should be introduced at the European level and we would welcome if the Presidency speeds up the negotiation process.” Der Spiegel Irish Times Süddeutsche

In a draft letter seen by the BBC, seven top EU airline companies, including British Airways, Airbus and Virgin Atlantic, are urging politicians to consider a ‘compromise solution’ for the recently introduced EU carbon tax which they fear will seriously effect jobs and trade, suggesting putting the tax on hold until a global plan for carbon emissions is reached. BBC FT CityAM WSJ EurActiv Welt Le Figaro

Danish Foreign Minister Villy Søvndal has said “there’s no need” for a new EU Constitution as called for by his German counterpart, Guido Westerwelle. Jyllands Posten Reuters

EUobserver reports that the External Action Service (EEAS), headed by Catherine Ashton, will spend €15m on private security firms this year in an effort to protect diplomats overseas.
Michael Pinto-Duschinsky, a member of the Commission appointed by the UK Coalition Government to look into the possibility of a British Bill of Rights replacing the European Convention on Human Rights has resigned, claiming that he had been pressured not to argue in favour of the UK Parliament having the right to override the Strasbourg Court, and that “it’s now clear that it’s been intended all along to issue a report in favour of the status quo.” Mail Sun Express Spectator Coffee House: Nelson Conservative Home: Montgomerie

Greece Averts Immediate Default With Bond Success … Yet European Financials, US Treasuries And World Government Bonds, Trade Lower On Competitive Currency Devaluation

March 10, 2012

Financial Market report for March 9, 2012

Introduction
Greece averted immediate default with bond success as 85% Of Greek bondholders swap debt and get 17 cents on the Euro, and New Bonds that yield 20%. Reuters reports ISDA declares Greek credit event, CDS payments triggered. After the CAC trigger, the total participation rate for all bonds will be 96%.

The EU ECB and IMF Troika will discuss the possibility of a second Greek bailout when the Euro Group meets next week; with Bloomberg reporting a decision scheduled for March 12, 2012.

The European Financials, EUFN, traded lower, as the National Bank of Greece, NBG, and Ireland’s IRE, trading strongly lower. Greece, GREK, Italy, EWI, and Spain, EWP, led Europe, VGK, lower; but world stocks, ACWI traded higher today.  Competitive currency devaluation, that commenced this month, picked up steam, causing debt deflation in sovereign debt, BWX, worldwide as the major world currencies, DBV, and emerging market currencies, CEW, traded lower, stimulating the US Dollar $USD, UUP, to rise. The Two Hundred Percent Volatility, TVIX and Volatility, VIXY,  plummeted; the Stockcharts.com chart of the latter, VIXY, suggests a bottom is being achieved.

Greece averted immediate default with bond success; the question is Will the EU, ECB and IMF Troika provide funding for the Second Greece Bailout?

Bloomberg reports Investors Agree to Swap About 85% of Greek Debt. Private investors agreed to swap about 85 percent of their Greek government bonds for new securities in the biggest sovereign debt restructuring in history, according to a banker briefed on the results. Preliminary indications showed that as much as 155 billion euros ($205 billion) of the 177 billion euros of Greek-law bonds were offered, said the banker, who declined to be identified. Twelve billion euros of debt not under Greek law was also tendered, as was 7 billion euros of bonds from state-owned companies guaranteed by the government, the banker said.

FT reports Financial markets are already betting Greece will default again in the future. Grey market pricing for the new Greek bonds to be issued as part of the exchange ranged from 17 to 28 cents on the euro, a highly distressed level, according to indicative quotes seen by the FT

Bloomberg reports Greece’s New Bond Yields May Reach 20% After Exchange, Morgan Stanley Says. Yields on Greece’s new bonds may climb to as high as 20 percent amid “material risks” stemming from implementation of terms for the biggest sovereign restructuring in history, according to Morgan Stanley. Traders are offering to buy and sell the potential new bonds at yields on 11-year securities of 22 percent, according to a person familiar with the prices who declined to be identified. Yields on exchanged Greek debt may be about 13 percent to 17 percent “in the medium term” as the nation faces an election and seeks to comply with terms of its bailout and debt-reduction programs.

As it stands today, Greece has not be kicked out of the EU. Greece has no debt sovereignty; it lost its debt sovereignty with the first bailout in May of 2010. Greece is no longer a sovereign nation state. Greece, is a client state of the EU ECB and IMF Troika, and Euro zone taxpayers are the hook for the debts of Greece,

Mike Mish Shedlock relates Greece “Credit Event” Triggers $3B in CDS Contracts; Wolfgang Schäuble Issues Another Warning to Greece; Eurozone Exit Trigger Is Cocked.  Greece will exit the eurozone. However, the timing is still in question. I suggest Greek politicians will not meet increasing conditions placed on Greece by Germany and that later this month funding will be cut off triggering a Greek return to the drachma. If so, look for enough funds to be dispersed to Greece in the next couple weeks that allow a quick round-trip to the ECB to make the ECB whole. Once the ECB is in a no-loss situation, the roof can easily cave in. The exit trigger is cocked. All it takes is for either Greece or Germany to pull it.

I believe the question, is Will the EU ECB and IMF Troika come through with the Second Greek Bailout, and provide for the fiscal spending needs of Greece?  

The ECB has established itself as the singular sovereign European financial institution by massively expanding its balance sheet by the printing of Euros, by the ECB, with LTRO 1 and 2, and by subordinating Greek sovereign debt (by swapping their Greek debt with new debt that has special status and is not subject to any CAC, that is any write-downs), and by extension it has subordinated all European treasury debt as Bloomberg reported on February 17, 2012, The European Central Bank’s plan to shield its Greek bond holdings from a restructuring may hurt private investors while paving the way for debt insurance contracts to be triggered. The ECB will exchange its Greek debt for new bonds with an identical structure and nominal value, though they’ll be exempt from so-called collective action clauses the government is reportedly planning. That implies senior status for the ECB over other investors, according to UBS AG, and the use of CACs may lead to credit-default swaps protecting $3.2 billion of Greek bonds being tripped.   

All private investor sovereign bond holdings are now subordinate to those of the Central Banks, the ECB is now the banking backbone of a One Euro Government. The ECB actions have regionalized banking in the EU. Furthermore, the ECB is now the unified sovereign monetary governmental authority in the Eurozone as for all practical purposes nations have been shut out of the sovereign debt market by the ECB’s subordination initiative as Bloomberg reports  Bill Gross says bond contract sanctity is hurt by Greece’s debt swap.  All that waits for a Federal Europe is a unified fiscal authority and a unified political authority and a unified economic authority; these will arise out of chaos.

So clearly, fate is passing the baton of sovereignty. Fate, not any human action, in continuing to pass the baton of sovereignty, and may possibly kick Greece out of the EU. Nevertheless, fate is working through creative destruction of capitalism to pool sovereignty regionally, and will not cease until a Federal Europe with a cohesive and unified monetary, fiscal, political and economic entity arises, where Germany will be preeminent in a type of revived Roman empire.   

Angela Merkel has heard and heeded the 1974 Clarion Call of the Club of Rome for regional global governance, as she and Nicolas Sarkozy, in joint comminique called for a true European economic government. The Call of the Club of Rome has replaced the Milton Friedman Free To Choose script that underwrote the Banker Regime of Neoliberalism; it is clear, distinctive and ringing for regional global governance to emerge out of the chaos of the failure of capitalism.  The Club of Rome’s Call comes with an authoritarian imperative that cannot be resisted.

The Beast Regime of Neoauthoritarianism is rising up out of the Mediterranean Sea nation of Greece with global dominion its destiny where it will occupy in all of mankind’s seven institutions in all the world’s ten regions, each with its own unique form of regionalization. Regional blocs have already formed these; CELAC and the Shanghai Cooperative Organization for example. The seigniorage, that is the moneyness of fiat financial instruments and credit, is waining. The seigniorage of diktat will emerge, with its own unique form in every country and region. Debt deflation will lead to economic contraction which will require regionalization for security, stability and security needs of economic life.

Yes Greece may be a casualty, a destitute and abandoned nation, but the more likely scenario is integration into a Federal Europe, thus making it geographically whole as part of the soon coming New Europe, that is the soon coming revived Roman empire.     

Bible prophecy foretells of a end time ruler rising to global power. Angela Merkel may lose office in a soon coming election, but Germany’s destiny is to be the dominant economic power in the Federal Europe. Tyler Durden of Zero Hedge reports Germany wants new European Constitution: “There are new centers of power In the world.”  Angela Merkel is simply a precursor for one greater, that being The Little Authority, Daniel 7:24-25, a person of seeming insignificant power. Soon out of financial armageddon, that is a credit bust and global financial collapse, the most credible leader will rise to provide order out of chaos. This one currently has a background role, but will be nick named the Little Authority, but will rise to be the New Charlemagne, Europe’s Sovereign as foretold in Revelation 13:5-10. Perhaps the EU’s soon coming Sovereign will be Herman Van Rompuy, as Reuters reports EU’s Van Rompuy warns over complacency in euro debt crisis.

As investment capital is further eroded by competitive currency devaluation, that commenced March 2, 2012, with the trade lower in the world’s major currencies, DBV, and the world’s emerging market currencies, CEW, as seen in this combined Yahoo Finance chart, http://tinyurl.com/7c9zlrk, political capital will grow replacing investment capital, as leaders meet in summits and announce regional framework agreements, which waive national sovereignty and establish regional bodies, such as the EU ECB and IMF Troika as the sovereign regional authority replacing former sovereign nation states.

In the EU, stakeholders from industry, finance and government will be appointed as monetary cardinals to work under the monetary pope Mario Draghi, which will establish a Eurozone monetary union; these leaders will provide monetary, credit and economic policy.  Likewise budgetary commissioners will work in technocratic government to effect fiscal policy which will define a EU fiscal union. Marianne Arens of WSWS reports along these lines, Monti government deregulates Italian jobs market. The Italian government and the employers’ federation are intent on abolishing the country’s employment protection laws and are relying on the support of the trade unions.

Walter Russell Mead of Via Meadia writes Brazil: The Country of the Future, Again? Growth is down in Latin America’s largest economy and nervous, shell shocked Brazilians are crossing their fingers that their economy isn’t still stuck in its historic trap of commodity-dependence and high inflation. Today the Brazilian Real, BZF, traded lower on fears of diminished growth; and in response Brazil EWZ, Brazil Small Caps, BRF, and EWZS, traded lower. Via Meadia continues Brazilians are largely blaming the meltdown on Europe. Guido Mantega, the country’s finance minister, said in FT, if the global crisis hadn’t worsened in the second quarter, our growth [for 2011] would have been closer to 4 per cent. Brazilians worry about a return to their days of weak or negative growth.

President Dilma Rousseff has long advocated lowering the country’s interest rate to stimulate lending and infrastructure development. But there is fear that lowering interest rates too fast without cuts to government spending will cause a blowup in inflation. In the middle to long term, only unpopular structural reforms can keep inflation at bay.

Brazil’s greatest fear is to be trapped between two choices: for slow growth or high inflation. This is what worries Dilma, as everyone in Brazil calls President Roussef; unfortunately, the only way to avoid the trap may be to make exactly the kind of policy choices (spending cuts, labor market deregulation, privatization) that Dilma’s electoral base doesn’t like.  Much depends on what Dilma does next.

Investors have been derisking out of stocks, particularly the small cap stocks, since competitive currency devaluation commenced March 2, 2012.

The world major currencies, DBV, seen falling since March 2, 2012, in this ongoing chart, and the emerging market currencies, CEW, have caused debt deflation, that is currency deflation most strongly in the small cap stocks, with KROO, EWO, SCIF, ARGT, ERUS, loosing the most in value since the market top on competitive currency devaluation, as confidence wains in the world central banks’ monetary policies. World stocks, VT, and World Small Stocks, VSS, are now trading lower, on the failure of fiat money. The fiat money system is dying; the diktat money system is rising in its place.  

Graham Summers of Phoenix Capital relates in Zero Hedge The Fed cannot and will not be unleashing QE 3 next week. For all this talk and hype, QE 3 is nowhere to be found. And it won’t be showing up anytime soon unless a full-scale Crisis hits. The Fed will disappoint, and we will get a market correction. All the macro and technical signs point towards something bad coming this way. The red flags are literally everywhere. And judging by the significance of them, we could very well be heading into a full-scale Crisis.

The strong decline in small cap pure value shares, RZV, relative to small cap growth shares, RZG, since the week of February 20, 2012, seen in this ongoing chart communicates that investors anticipate a global sell off of currencies. Sectors falling since the market top have included Copper, COPX, Semiconductors, XSD, Small  Cap Pure Value, RZV, US Infrastructure, PKB, US Small Industrials, PSCI, and Biotechnology, XBI.

The chart of the Morgan Stanley Cyclicals Index, ^CYC, compared to SCIF, KROO, EWD, RZV, communicates that it is the small cap stocks that are loosing the greatest value; and large cap, JKE, shares that have now turned lower include , ETN, CAT, NUE, DE, SLB, BA, GOOG, URS, RIO, GM.

Major countries falling strongly since the market top have included India, INDY, and its infrastructure, INXX, and Sweden, EWD, with India Banks, EPI, leading the way down, that being IBN, HDB. Argentina Banks, BMA, GGAL, BBVA, BFR, have been loss leaders as well, as have UK area Banks, RBS, HSBC, LYG, BCS.

The BRICS, EEB, are trading lower from their recent highs. Bloomberg reports BRIC Investors Losing as Statists Forgo Earnings‎. And India Times reports Reserve Bank of India pumps in more money into banks.  The Reserve Bank of India (RBI) on Friday cut the cash reserve ratio (CRR) requirement for banks by a more-than-expected 0.75 per cent, which will inject another Rs 48000 crore into the banking system for making credit available to corporates and individuals. However, bankers said the cut in the CRR would not lead to an immediate softening of interest rates on loans. CRR, the share of deposits that banks must keep as idle deposits with the RBI, has been reduced to 4.75 per cent from 5.5 per cent earlier. Banks borrowed Rs.1.26 lakh crore from RBI on Wednesday to balance their assets and liabilities reflecting the intensity of funds scarcity in banks. The move shows that RBI has started softening its hawkish tight money policy and could lead to a widely expected cutting interest rates in the coming months after 13 increases between March 2010 and October 2011,as both economic growth and inflation slow. India’s annual economic growth slowed to 6.1 per cent in the December quarter, its slowest pace in nearly three years. Headline inflation, meanwhile, slowed to its lowest level in more than two years in January. In response to the news India Infrastructure, INXX, blasted higher as did Automobile manufacturer, Tata Motors, TTM, and Copper miner, SLT. and Banks, HDB, IBN.    

Merco Press reports Argentine President Cristina Fernandez sent a bill to Congress on Thursday aimed at helping the government tap more central bank reserves to help repay foreign debt and defend the country’s currency.  Left Foot Forward reports the American Task Force Argentina activities include pressuring governments to ensure no World Bank funds are given to Argentina, and trying to throw Argentina out of the G20. In other words, they aim to capture foreign policy in order that this handful of creditors get paid. I expect Argentina, ARGT, to be a fast faller   

Sovereign insolvency and banking insolvency are the issues of the day. Insolvent sovereigns and insolvent banks are unable to support growth. Debt deflation will lead to economic contraction, and Sweden, EWD, traded lower today on awareness of soon coming negative growth shock. Austria, EWO, and Turkey, TUR, traded lower once again, on awareness that the debt trade both in Europe and the world is now history.

Carry trade investing, such as a sell of the Euro, FXE, and a buy of the Dollar, UUP, stimulated US Infrastructure, PKB, investment, and then recently, a sell of the Euro, FXE, and a buy of the Indian Rupe, ICN, stimulated India Infrastructure, INXX, investment as is seen in this ongoing six month chart of EMIF, INXX, BRXX, CHXX, PKB. Now, both INXX, and PKB, are both fast fallers.        

Banking, KRE, Retail, XRT, Consumer Discretionary, IYC, and, VCR, Regional Banks, KRE, and Home Builders, ITB, Pharmaceuticals, IHF, Paper Producers, WOOD, traded up in three white soldiers finales to the age of neo liberal finance.Notably, Peru Bank, BAP, Starbucks, SBUX, Lennar, LEN, Lowes, LOW, O’Reilly, ORLY, DTE Energy, DTE,  rose to new highs. This Finviz Screener provides a listing of 50 strongly performing retail stores.

Bond vigilantes have seized control of interest rates globally, and are now sovereign over the world central bankers.

Bond vigilantes have called the interest rate on the US Ten Year Note, ^TNX, higher this year; it rose today, and now stands at 2.04%, with the result that the 10 Year US Government Bond, TLT, has lost 4%, since January 1, 2012, as seen in this ongoing chart.

Both carry trade investing and neo liberal finance are now history, as debt deflation, that is currency deflation, has started the Second Great Depression, on the failure of the world central banks to stimulate growth.  

Bonds, BND, traded lower today, as US Government Debt, ZROZ,  EDV, TLT, traded lower on the higher sovereign interest rates, which have now carried over into the private sector, causing Longer Duration Corporate Bonds, BLV, Corporate Bonds, LQD, International Corporate Bonds, PICB,  to trade lower.  World government bonds, BWX, traded lower today, as bond vigilantes are calling sovereign debt interest rates higher globally: faith in sovereign debt is history. Doug Noland writes  Latent animosities between countries, cultures, societies, political parties, policy viewpoints and economic doctrines were unleashed. The euro 100bn ($130bn) write-down of Greek debt is but a small fraction of the true and ongoing cost of the Greek debt fiasco.

Sovereign risk is starting to manifest globally. Bond vigilantes are able to call interest rates higher world wide, as investors become increasingly fearful that the world central banks’ monetary policies are no longer able to stimulate growth.  Junk bonds, JNK, although rising today, have traded lower from their recent highs indicating a risk off investment arena. Only emerging market bonds, EMB, have been resistant to trading lower. With the underwriting of New Greek Bonds by the EU ECB  and IMF Troika, and the rise of the Interest Rate on the US Government Note, ^TNX, above 2.0%, the global government finance bubble has burst. The global debt trade is over; and the rule of debt servitude is commencing, with those in the Euro zone now responsible for not only the debts of Greece, but perhaps soon the financing of Greece’s ongoing fiscal spending. Shaun Richards writes A large default does not hide Greece’s continuing insolvency as her economic depression deepens. The WSJ writes Greece defaults and tries to move on. “Their problems are much greater than the solution that is in front of them,” says Pawan Malik of Navigant Capital in London. “Greece’s ability to come back to the market as a functioning and solvent sovereign is very doubtful.” This is especially the case as Tyler Durden writes in Zero Hedge, The Greek €107 Billion Contingent Liability Gorilla Exposed.

Base Metals, DBB, Timber, CUT, Agriculture Commodities, JJA, Precious Metals, JPP, Commodities, DBC, US Commodities, USCI, are trading lower from their recent highs, on lower World Major Currencies, DBV, and Emerging Market Currencies, CEW.  Currencies leading the way lower include the Brazilian Real, BZF, the British Pound, FXB, the Australian Dollar, FXA, The Euro, FXE, the Swiss Franc, FXF, the Indian Rupe, ICN, the Canadian Dollar, FXC, the Swedish Krona, FXS, and the Russian Ruble, FXRU. The Yen, FXY, plummeted lower again today; its chart suggests a bottom for now; this is confirmed in the chart of the 200% Short Yen, that is 200% inverse of the Yen, YCS.

The Yen, FXY, is the competitive currency devaluation loss leader. The Yen had to fall sharply, and plummet through the floor into the basement, so that its soon coming rise would strongly delever investors out carry trade loans, as currencies seen in this Finviz Screener trade lower on the exhaustion of the world central banks’ sovereign authority.       

The rise in the US Dollar, $USD, UUP, this month communicates that the Banker Regime of Neoliberalism, that came via Milton Friedman’s Free To Choose Script, which has underwritten capitalism, is dead. Confirmation of its death also comes from the USD/JPY rising from 76 to 81 and its  inverse ETF, JYN, plummeting

Conclusion: regional global governance is rising to replace capitalism; gold, oil and diktat will rise as the only forms of sovereign wealth.

Monetary policies of ZRIP, LTRO 1, and 2, QE 1, QE2, Dollar FX Liquidity Swaps, and carry trade investing have brought so much presure to bear on DGP, that the dissipative structures inherent in the financial markets are now totally compressed, and are set for a nuclear gib bang explosion; all that is needed is a spark of volatility, VIXY, TVIX, for Great Depression II, and the Great Deleveraging to commence. Take for example, International Paper, IP, which has been leveraged up over timber, CUT, prices; it, being debt laden will soon experience a fast fall lower.    

Floyd Norris in NYT article What’s Up New Orders In The US But Not In Most Of Europe provides charts of Monthly Survey Of New Orders for both manufacturing and services from the Institute for Supply Management and conducted by Markit, which shows an increase in growth in the US for the last six months, but a decrease in growth growth. “Within Europe, said Rob Dobson, a senior economist at Markit, “Germany and France were really holding up the euro zone averages” until recently. “They are now much weaker than they were one year ago.” Italy and Spain showed particular weakness in late 2011, with manufacturers suffering but service companies doing even worse. Ireland, on the other hand, has recovered enough so that new business orders, after falling in late 2011, are again growing at least a little. The worst performance, unsurprisingly, is in Greece, where Europe has decreed cuts in spending and income that have contributed to a continuing decline in the economy. Declines in new orders are more widespread among Greek manufacturers than they were during the financial crisis. The surveys measure other indications of business activity not shown in the charts, including whether production is rising or falling and whether jobs are being added or cut. Manufacturers in the United States are now also more likely than those in most countries to say they are increasing production and adding employees.”

Herman Daly writes in The Automatic Earth Uneconomic Growth: When Illth Trumps Wealth.  The matter-energy required to maintain and replace these stocks also comes from the ecosystem. The populations or stocks of all these things have in common that they are what physicists call “dissipative structures” — i.e., their natural tendency, thanks to the entropy law, is to fall apart, to die, to dissipate. The dissipated matter-energy returns to the ecosystem as waste, to be reabsorbed by natural cycles or accumulated as pollution. All these dissipative structures exist in the midst of an entropic throughput of matter-energy that both depletes and pollutes the finite ecosphere of which the economy is a wholly contained subsystem. When the subsystem outgrows the regenerative capacity of the parent system then further growth becomes biophysically impossible. But long before growth becomes impossible it becomes uneconomic — it begins to cost more than it is worth at the margin. We refer to growth in the economy as “economic growth,” — even after such growth has become uneconomic in the more basic sense of increasing illth faster than wealth. That is where we are now, but we are unable to recognize it.

Capitalism is failing, as the dynamos of growth and profit are winding down, on the exhaustion of the world central banks’ monetary policies, and the failure of fiat money.  The dynamos of security, stability, and sustainability, are powering up regional global governance, with the emergence of the ECB as the Euro region’s bank, the subordination of all Euro zone debt to the ECB, the mandate of technocratic government in Italy for structural reforms, and the emergence of the EU ECB Troika to underwrite the Second Greek Bailout. These developments are examples of diktat working in regionalization, to end the age of sovereign nation states.

Richard Barley of Dow Jones writes Central banking has become a global growth industry. But it is not just the size of balance sheets that’s changed: so too have their composition. With rates close to zero, the U.S., U.K., Japanese and European central banks have pumped cash into the financial system. But each has chosen a different method – and will face different challenges when they try to shrink again. The growth in balance sheets has been startling: the combined assets of the four central banks will top $9 trillion by the end of March compared to $3.5 trillion five years ago, Deutsche Bank says.

Doug Noland writes The history of inflationism is starkly clear: once inflationary dynamics attain a foothold, they secure powerful vested interests and become increasingly beyond control. Indeed, contemporary central banks are in the process of learning the same hard lessons learned by scores of governments and currency systems over generations: once the printing press gets cranked up, it becomes virtually impossible to turn down. Hope that monetary inflation will be contained (“just one final bout of stimulus”) leads invariably to increasing desperation and runaway inflation and debasement. And while traditional Credit inflation (currency printing) fueled distortions and rising prices foremost in the real economy, today’s brand of (electronic Credit and Central bank liquidity) inflationism has its greatest impact on interlinked electronic global financial markets. Whether they appreciate it or not, policymakers are today completely enveloped by a global whirlwind of speculative excess.  

The nature of inflationism: A slippery slope of intervention, obfuscation, rationalization and degradation. And, in the end, there will be no way out for policymakers. Yet, for now, the markets are more than content. From Hilsenrath’s article: “The Fed believes that reducing the amount of long-term bonds in the hands of investors drives down long-term interest rates, encourages more risk-taking, and thus spurs spending and investment by households and businesses.” The Bernanke Fed has convinced itself that it has fundamental responsibility to inflate bond, equities and risk asset prices. In Europe, the ECB has moved aggressively to inflate bond prices, especially those of Spain and Italy. All the while policymakers apparently fail to appreciate that unprecedented global central bank market interventions are leading to dangerous speculation throughout global markets – heightened market excesses that create susceptibility to waning confidence in the efficacy of liquidity backstops and aggressive policy interventions. Policy has for too long targeted the markets, and the marketplace has grown hopelessly dependent.

I comment that the Fed policy of reducing the amount of long term bonds in the hands of investors, has reached an end point as the 30 Year US Treasuries, EDV, have now lost 2.0% this month and 7.0% this year as is seen in this Google Finance Chart suggesting that inflationism has turned to destructionism.    

Dr. Worden writes European integration has involved a succession of shifts of governmental sovereignty both from county and state governments to the E.U. itself. Soon EU leaders will meet in more summits and announce regional framework agreements, whereby monetary cardinals will be appointed to work under the monetary pope Mario Draghi as stakeholders, to provide diktat as both money and credit, as well as provide public private partnerships for structural reforms and new regional economic structure. These eurocrats will compliment budget commissioners who will enforce austerity measures. Yes new sovereigns for the New Europe, and the new regime of regional global governance.

I can’t help but to believe that the backdrop is nurturing fragilities – global market risk to a dollar rally; risk to another bout of faltering euro confidence; market vulnerability to a surprising jump in bond yields; risk to surging oil and gas prices; fragilities associated with a highly speculative U.S. stock market. Truth be told, I guess I just don’t buy into the notion that unprecedented ongoing market intervention and egregious inflationism somehow avoid their comeuppance.

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” Do the Keynesians ever deeply, seriously contemplate perhaps Keynes’ greatest – and certainly most pertinent – monetary insight?

Not only is the death of capitalism a cause for the rise of the ten toed kingdom of regional global governance as foretold in bible prophecy of Daniel 2:31-33; but also Anglo American imperialism, with a war centered in Syria and Iran, the Ezekiel 38 War, will be a impetus for regionalization, as nations form confederations in response to global war. Bill Van Auken of WSWS writes Pentagon prepares war plans for Syria. In testimony before a Senate committee Wednesday, Pentagon chiefs confirmed that they are drawing up war plans against Syria at the Obama administration’s request.

The global fiat money experiment championed by Milton Friedman with his Free To Choose floating currency regime introduced by Richard Nixon in 1971 is going to end badly. In a world of insolvent and failed sovereigns, gold and oil will be the only money good. I encourage one to buy and take possession of gold bullion and store it safely, as well as to buy gold on Internet vaults. Tail risk of neo liberal finance is about to manifest. Tyler Durden writes China Posts Biggest Trade Deficit Since 1989 As Crude Imports Surge: Is China Recycling Export Dollars Solely Into Oil?  Chinese Lunar new year, which accidentally happens every year, is more than a little naive. Because as the charts below indicate, while exports did in fact tumble in a seasonal pattern as they do every February although more than expected, February imports of $146 billion not only did not drop, but posted a 19% increase compared to January, and soared 40% compared to a year prior. Why? Perhaps the second consecutive record high in monthly crude imports has something to do with it. Which in turn when considering the huge selloff of US Treasury paper by China in the last few months, indicates that the world’s fastest growing economy no longer has an interest in taking its export dollars and using them to fund purchases of US paper, but is in fact converting US fiat into real, hard goods. Such as crude (for all those curious where the marginal demand is coming from that is). And most likely gold. But we will only learn about the gold hoarding well after the fact, when China is prepared to see the price of the metal soar as it did in 2009.

And an inquiring mind asks will the interest rate derivatives position of the major US financial institutions, seen in this ongoing chart of BAC, MS, GS, C, JPM. These companies receive them free of charge as an incentive for being primary dealers for US Treasuries. Will formerly high beta BAC, be a fast faller or just a slow faller? Only time will tell.

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Stocks Rise On What Appears To Be The Biggest Sovereign Debt Restructuring In History

March 8, 2012

Financial Market Report for March 8, 2012

1) … Stocks rose on what appears to be the biggest sovereign debt restructuring in history. Reuters reports a senior official said the government had acceptances covering more than 75 percent of bonds eligible to take part in the offer.

Volatility, TVIX, and VIXY, plummeted as is seen in the combined charts of TVIX, VIXY.

European Financials, EUFN, and World Financials, IXG, rose, taking Russia, RSX, Sweden, EWD, India, INDY, Germany, EWG, Greece, GREK, Poland, EPOL, Austria, EWO, Switzerland, EWL, European Shares, VGK, and Emerging Markets, EEM, higher. Sectors rising included, WOOD, ITB, PSCM, PKB, COPX, XBI.

Tyler Durden relates SocGen’s EM desk report “I have tried my best to remain relatively bullish towards global emerging markets (GEM) over the recent period despite the global risks, but even by my bullish bias standards, today’s move is simply stupid. EM assets are rallying with a vengeance today, but the timing of that move is just wrong, in my view. Why now, ahead of a massive event risk, namely the results of the PSI released tonight? So unless EM investors know something I don’t, which would indeed make me stupid, today’s move is at best premature and quite a bit far-fetched.

Major World Currencies, DBV, and Emerging Market Currencies CEW, rose, taking Commodities, DBC, led by Timber, CUT, higher. I am still expecting, EUFN, PFF, RZV, PKB, COPX, ITB, EWX, PSP, GREK, and XBI seen in this Finviz Screener to be the fastest fallers, with PFF, falling slowly at first only to break quickly lower.  

Total Bonds, BND, traded lower, as the Interest Rate on the US Ten Year Note, ^TNX, rose above 2.0%, causing ZROZ, EDV, TLT, to trade lower. Junk Bond, JNK, World Treasuries, BWX, and Emerging Market Bonds, EMB, traded higher on the rising currencies.    

2) … Germany Has Been Storing Its Gold Reserves At The NY Fed, In London And In Paris
Mike Mish Shedlock writes Concerns in Germany About Its Gold at the NY Fed, London, and Paris; German Gold Off Limits, Greek Gold Subject to Confiscation.  GoldCore has a pair of interesting articles on German concerns about its gold reserves. The most recent article regards gold held outside Germany.

An inquiring mind asks how did Germany come to store its gold reserves outside of the country? By what agreements or principles of understanding did it place its sovereign wealth on foreign soil?  

The Bundesbank by storing its gold in vaults of other countries has participated in participated in a global banking coup d etat, which is leading to the formation of a global federal reserve, that is a One World Bank. Buba’s storage of gold outside the country precludes Germany from issuing any sovereign debt or establishing a sovereign currency. The Bundesbank has precluded Germany from taking any action to establish it self as a sovereign nation state.   

Furthermore, the ECB has established itself as the singular European financial institution by massively expanding its balance sheet by the printing of Euros, by the ECB, with LTRO 1 and 2, and by subordinating Greek sovereign debt (by swapping their Greek debt with new debt that has special status and is not subject to any CAC, that is any write-downs), and by extension it has subordinated all European treasury debt as Bloomberg reported on February 17, 2012, The European Central Bank’s plan to shield its Greek bond holdings from a restructuring may hurt private investors while paving the way for debt insurance contracts to be triggered. The ECB will exchange its Greek debt for new bonds with an identical structure and nominal value, though they’ll be exempt from so-called collective action clauses the government is reportedly planning. That implies senior status for the ECB over other investors, according to UBS AG, and the use of CACs may lead to credit-default swaps protecting $3.2 billion of Greek bonds being tripped. All private investor sovereign bond holdings are now subordinate to those of the Central Banks, the ECB is now the banking backbone of a One Euro Government. The ECB is now the sovereign banking authority in the Eurozone.  

As investment capital is further eroded by competitive currency devaluation, that commenced March 2, 2012, with the trade lower in the world’s major currencies, DBV, and the world’s emerging market currencies, CEW, as seen in this combined Yahoo Finance chart, http://tinyurl.com/7c9zlrk, political capital will grow replacing investment capital, as leaders meet in summits and announce regional framework agreements, which waive national sovereignty and establish regional bodies such as the EU ECB and IMF Troika as the sovereign. Stakeholders from industry, finance and government will be appointed as monetary cardinals to work under the monetary pope Mario Draghi, which will establish a Eurozone monetary union; these leaders will provide monetary, credit and economic policy. Likewise budgetary commissioners will work in technocratic government to effect fiscal policy which will define a EU fiscal union.  Marianne Arens of WSWS reports along these lines, Monti government deregulates Italian jobs market.  The Italian government and the employers’ federation are intent on abolishing the country’s employment protection laws and are relying on the support of the trade unions.

Through regionalization, a European Federal Government will come about through creative destruction, as fate works to establish regional global governance in all of the world’s ten regions, as capitalism dies on the death of fiat money.

In related reporting EuroIntelligence writes Wolfgang Munchau in Der Spiegel differs with Hans-Werner Sinn’s analysis on Target 2 imbalances. Munchau makes three observations that stand in contrasts to Hans-Werner Sinn’s conclusions. The first, and most obvious one, is that Germany’s Target 2 claims would make it too costly for Germany to leave the euro. Germany has thus not only a political and wider economic interest, but also a short-term financial interest in keep the euro alive. Second, the causes for payment system imbalances are current account imbalances. That’s what needs fixing, not the payment system. And finally, Sinn’s comparison with the US suggests that the eurozone requires common bank backstop systems, and a common unemployment insurance to avoid such massive distortions.

3) … In political commentary, Rick Santorum … Dominionist For President Of The US
Opposing Views writes Rick Santorum is a Theocrat, a political leader whose policy decisions are directly influenced by divine guidance. He is an Evangelical Catholic, as NNDB relates Rick Santorum is one of Time Magazine’s 25 most influential evangelicals in America.  He is a Dominionist, that is he is an active proponent of the 7 Mountain Mandate to reclaim the 7 Mountains of Culture, as Leah writes Rick Santorum campaigns for theocratic conservative government in America. The Family Mountain is particularly important to these Dominionists. Their views are that it all starts with procreating liberally and then properly indoctrinating children to be good soldiers for Christ when they grow up and work to become leaders of the 7 Mountains. This is why they are so vehemently militaristic on issues of abortion/contraception, same-sex marriage, stem cell research and adoption for married male/females only. Believers perceive themselves as the “chosen” or the “elect”, commanded by God to “subdue” the earth and “have dominion” over all living creatures. The goal of Christian Dominionism in the United States is to abolish Separation of Church and State, establishing it as a distinctively Christian Nation based upon Old Testament Mosaic Law.

Franklin County Democrats writes Santorum: Dominionist Rick Santorum said “We were put on this Earth as creatures of God to have dominion over the Earth, to use it wisely and steward it wisely, but for our benefit not for the Earth’s benefit.”

Conrad Gross writes Christian dominionists support Rick Santorum and others. Unlike traditional evangelical Christians, Dominionists do not believe that faithful Christians will be raptured before the return of Christ. Instead, they believe that there will be a great conflict between the forces of good and evil and that Christians will be called upon to fight, both spiritually and physically. Dominionists are gearing up for the end of days. They currently follow a strategy that prescribes the conquest of what they label “the Seven Mountains,” or spheres of public influences that include government, family, business. arts and media. Political activism is at the ideological core of Dominionism and followers have been incredibly successful at mobilizing believers. They have created an influential powerhouse that includes a national office and branches in each state that coordinate on a national level. At the Iowa caucus this past autumn, Dominionism played an out-sized role in the campaign strategies of the Republican primary candidates. Michelle Bachman, Rick Perry, Newt Gingrich and Rick Santorum were common attendees at Dominionist led prayer breakfasts, church meet-and-greets and business luncheons. Pastors endorsed as candidates courted. Although Rick Perry, the favored Dominionist candidate, did not go far in the primary, the surprising resilience of Gingrich and the amazing momentum of Santorum can both be largely attributed to this well organized, highly motivated base. Dominionist leaders have not been silent about their heavy distaste for Mitt Romney and have pulled out all the stops to combat his candidacy. Dominionist leaders met at the ranch of one of its leading members this past autumn in an attempt to rally behind one candidate and produce a clear endorsement. The attendees devolved into opposing camps, however, unable to unite behind one politician. Despite this internal discord, Santorum has continued to remain a viable threat to Romney’s candidacy, winning primary after primary. Such is their power that, despite being repeatedly attacked and rejected by Dominionist organizations and voters, Romney has continued to couch his speeches in evangelical rhetoric that would appeal to this same voting block.

Rachel Tabachnick writes Theocratic Southern Nationalists have a Christian reconstructionist organization called The Institute on the Constitution. A Constitution Class is to be taught by the Institute’s David Whitney, chaplain of both the Maryland League of the South and the Southern National Congress. The Baltimore Sun’s article on the class described it as having “biblical overtones” and Whitney as “basing his teachings on the biblical view of law and government.” In this case, the biblical worldview is the same one espoused by Rousas Rushdoony, a worldview calling for American law to be reconstructed to align with one interpretation of biblical law and to strip the federal government of regulatory power.

If you browse through the webpages of the Institute on the Constitution, you’ll find numerous writings by other leading Christian Reconstructionist writers, including Rushdoony on “The Meaning of Theocracy.”  Rushdoony wrote, In reality, theocracy in Biblical law is the closest thing to a radical libertarianism that can be had.

This is the curious draw of theocratic libertarianism, the idea that it will provide freedom from the state. They promote a book on Lincoln written by Thomas DiLoreno and marketed at the Institute on the Constitution’s online store.  In DiLorenzo’s book, The Real Lincoln: A New Look at Abraham Lincoln, His Agenda, and an Unnecessary War,  DiLorenzo claims that the Civil War was an imperialistic effort of “dishonest Abe” to destroy the free market economy of the South.  DiLorenzo is faculty at the Ludwig von Mises Institute, a center for Austrian School Economics. (In his first hearing as chair of the House Financial Services Committee, Rep. Ron Paul had two Austrian School economists speak, including DiLorenzo.)  Like many Dominionists, the Christian Reconstructionists leading and promoted by the Institute on the Constitution have a neo-Confederate outlook. David Whitney is described by the Baltimore Sun as a “conservative pastor,” but he is the chaplain for both the Maryland League of the South and the Southern National Congress.

The Institute on the Constitution leaders promote and attend Reconstructionist events. In a 2006 website post, John Lofton summarizes an American Vision Conference, including speeches from leading Reconstructionists Gary DeMar and Gary North. This is the organization behind a course that Carroll County Maryland is paying for with public funds and coercing public employees to attend. This is a course taught by Theocrats – ones who teach that Abraham Lincoln was a monster and that good Americans must oppose our government if it does not enforce their “biblical worldview.” Also see: For a better understanding of how Dominionists believe that they will gradually gain control of American society, read a previous Talk2action.org article with quotes from Christian Reconstructionist writer Gary North, son-in-law of Rousas Rushdoony and a scholar with the Ludwig von Mises Institute.

Jeremy Learning writes in Alternet, Anthony Peroutka and his attorney brother, Stephen, operate a Maryland group called the Institute on the Constitution. The IOTC website claims America was founded “as a Constitutional Republic of Sovereign States with a central government of purposely limited powers based on Biblical principles.” The group, which lists U.S. Rep. Roscoe Bartlett (R-Md.) on its board of advisors, disseminates reams of material by David Barton, a “Christian nation” activist.

Peroutka decried public schools for teaching evolution and wondered how youth could be taught self-respect if they are instructed that “we are just descended from primordial ooze.” He also blasted law schools, higher education in general and the media for perpetuating a false picture about the form of American government.

“We have a republic, and the source of authority in that republic is God,” said Peroutka. “A revolution has happened in America. It has happened over the past 150 years. Evolution is at the bottom of it, and some very un-American people have been and are behind it. The purpose of the revolution,” he continued, “is to stop you from being able to think and believe like an American any more …. It’s been a calculated and evil anti-God, anti-Christian revolution.”

Peroutka assailed the “tyrannical consolidation of power” within Washington, D.C., and charged that the revolution could not have been successful without convincing Americans that the Constitution requires a separation of church and state. Peroutka called church-state separation a myth and a lie and claimed the Constitution, in reality, mandates just the opposite. He said he hoped the conference would provide attendees with the necessary tools to help set America right. Those tools, Peroutka said, include “an accurate knowledge of unrevised American history” and a “biblical worldview that acknowledges Christ’s authority over all things.”

Theocracy Watch writes Dominionism and Dominion Theology are not denominations or faith groups. Rather, they are interrelated beliefs which are followed by members of a wide range of Christian denominations. “Chip Berlet in The Christian Right, Dominionism and Theocracy Part II, writes in In her book Spiritual Warfare, sociologist Sara Diamond discussed how Dominionism as an ideological tendency in the Christian Right had been significantly influenced by Christian Reconstructionism. Over the past 20 years the leading proponents of Christian Reconstructionism and dominion theology have included Rousas John (R.J.) Rushdoony, Gary North, Greg Bahnsen, David Chilton, Gary DeMar, and Andrew Sandlin. Diamond explained that “the primary importance of the [Christian Reconstructionist] ideology is its role as a catalyst for what is loosely called ‘dominion theology.’” According to Diamond, “Largely through the impact of Rushdoony’s and North’s writings, the concept that Christians are Biblically mandated to ‘occupy’ all secular institutions has become the central unifying ideology for the Christian Right.”

Talk To Action provides Quotes on Dominionism From the Apostles and Prophets of the New Apostolic Reformation

Theocracy Watch writes Economics from the Religious Right.

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IIF Warns That The Costs Of A Disorderly Default Will Exceed €1 Trillion

March 7, 2012

Financial Market Report for March 7, 2012

1) … Reuters reports, IIF Warns That The Costs Of A Disorderly Default Will Exceed  €1 Trillion.
Alex Chambers and Lefteris Papadimas of Reuters report that A Disorderly Default Will Exceed  €1 Trillion. Analysts said an Institute of International Finance document, marked “IIF Staff Note: Confidential”, seemed designed to alarm investors into participating in the exchange by estimating the extent of havoc a disorderly default would wreak.

“It is difficult to add all these contingent liabilities up with any degree of precision, although it is hard to see how they would not exceed 1 trillion euros,” the IIF, which represented private creditors in months of tortuous debt negotiations with Athens, said in the February 18 document obtained by Reuters.

Greek private creditors have until Thursday night to say whether they will participate in the exchange that is a key part of a bailout program to help Greece manage its wrecked finances and meet a debt repayment on March 20.

A number of the biggest bondholders are signing up but despite the dire warnings, a clutch of Greek pension funds and some foreign investors rejected the offer which will see investors lose almost three-quarters of the value of their holdings and lop about 100 billion euros off Greece’s debt.

If Greece misses the March 20 payment without a deal in place and succumbs to a hard default, it could be taken as a sign that politicians have lost control of the crisis again, prompting investors to target other weak euro zone countries.

Spain and Italy might require 350 billion euros in outside support to contain the fallout, the IIF said, while the cost of helping Ireland and Portugal could total 380 billion euros over five years.

“When combined with the strong likelihood that a disorderly Greek default would lead to the hurried exit of Greece from the euro area, this financial shock to the ECB could raise significant stability issues about the monetary union,” it said.

The bank lobby group also said bank recapitalization costs could easily hit 160 billion euros if no swap is agreed.

Investors in a Swiss-law governed Greek government bond have teamed up to challenge the terms of Athens’ proposed bond swap, highlighting the wave of litigation it could yet face, particularly over the minority of its debt not issued under Greek law.

Greece wants a take-up of 90 percent or more, and if it falls below that but exceeds 75 percent it is expected to use collective action clauses (CACs) to force losses on all. It could trigger CACs on Greek law bonds, which account for 177 billion euros of the total, with two-thirds acceptance. Below that level, the deal could be off, potentially plunging the euro zone back into crisis.

Obviously the report is written on a worst-case basis to try and encourage participation in the exchange,” said Gary Jenkins, analyst at Swordfish Research.  “The most likely outcome may well be that Greece passes its 75 percent target and then uses CACs to ensnare the remainder,” Jenkins said.

2) … Bloomberg reports Hans Humes, president of Greylock Capital Management, expects holders of more than 80 percent of Greece’s government bonds to accede to the swap.
Maria Petrakis and Fabio Benedetti-Valentini of Bloomberg report Investors With 58% of Greek Bonds Agree to Swap. “Adding up the commitments to participate in the Greek PSI, it is now clear that the CAC hurdles will very likely be cleared,” Commerzbank AG (CBK) head of fixed-income strategy Christoph Rieger said in a note today. Hans Humes, president of Greylock Capital Management, expects holders of more than 80 percent of Greece’s government bonds to accede to the swap, he said in a Bloomberg Television interview today. Humes is a member of a committee of private bondholders that negotiated the deal with the government.

3) … Commentary
An inquiring mind asks … Why would bondholders take the offer as the new securities are GDP linked, when Greece is neither a sustainable sovereign that is a country that is incapable of sustaining any viable economic activity?

I agree with Shaun Richards who relates “I am left with the thought that we will see a substantial amounts of rejections of the deal.”

I believe that there will be a hard default, and that Collective Action Clauses, CACs, will be activated  to impose the deal, and that this will be declared an official default by the rating agencies, but perhaps not by the IIF, and thus perhaps there may not be a payout on the Credit Default Swaps, CDS; that matter is a decision that will be made by internal bickering of the members of the IIF, and the details of the debate never published. It may be determined that defaulted Greece’s Swiss franc bonds and others, which do not have a CAC, trigger a payout of CDS.   

Insolvent financial institutions, and insolvent nations cannot sustain growth or profitable investing. Fate, through the creative destruction of capitalism, will bring forth a United States of Europe, that is a Federal Europe, out of a soon coming financial armageddon, that is a credit bust and global financial collapse, to provide security, stability and ongoing regional economic sustainability. The Eurozone region will be one of ten such regions, as called for by the 300 elite of the Club of Rome in 1974 for regional global governance.

In my Financial Market Report for March 6, 2012, I wrote “Competitive currency devaluation commenced as investors derisked out of stocks, VTI, VT, VSS, NYC, IWM, and delevered out of commodities, USCI, DBC, specifically DBB, CUT, JJA, The world’s major currencies, DBV, and the world’s emerging market currencies, CEW, traded lower, stimulating arise in the US Dollar, $USD, UUP. Sovereign exhaustion, that is exhaustion of the world central banks’ monetary policies, and fears of Greek sovereign default, have resulted in debt deflation, that is currency deflation. The Swedish Krona, FXS, led the currencies FXE, FXM, FXC, FXB, SZR, FXF, BZF, FXA, ICN, seen in this Finviz Screener lower.

Total Bonds, BND, rose, while Junk Bonds, JNK, traded lower. The global government finance bubble, BWX, and EMB, traded lower on falling lower currencies. Systemic stability simply is not possible in a world of failed and insolvent sovereigns, BWX, and insolvent financial institutions, IXG. Soveign insolvency and banking insolvency, as well as trade imbalances, both regional and intra-regional, are the issues that is turning inflationism into destruction, and is moving the world from US and EU UK hegemony into regionalization.

Many steps towards a One Euro Government have already be taken, ie the August 2011 Merkel Sarkozy Comminique for a true European Economic Government, the Fiscal Compact with its Golden Rule of Debt Brakes, the subordination of sovereign debt to the ECB by executive fiat, and the regionalization of European Fianancial Institutions into the ECB via LTRO 1 and 2.

There is no human action, and there are no sovereign individuals. There are only God’s appointed things, Acts 17:26, and God alone alone is sovereign, Psalm 2:4-5. He acted sovereignly by destroying fiat money, and destroying the Banker Regime that came via Milton Free To Choose script, which underwrote capitalism. Yes, both fiat money, and banking institutions, died March 6, 2012, on exhaustion of the world central banks’ monetary policies, and fear of Greek debt contagion. Now the Beast Regime, as foretold in Bible prophecy of Revelation 13:1-4, is rising to rule mankind’s economic endeavors.

Today, the major currencies, DBV, and Emerging Market Currencies, CEW, seen in this Finviz Screener
traded up, with the Mexico Peso, FXM, rising the most, but global competitive currency deflation is underway with the result that commodities, although trading up, have broken down: debt deflation is now underway in commodities.

Lowe’s Companies, LOW, traded higher, taking home builders, ITB, higher. Consumer stocks, IYC, traded higher on MAT, TPX, LZB, FBN, FBHS, and FUN rising. Design build, PKB, traded higher on URS, MAS, EXP, BECN, DY, trading higher.  Gaming, BJK, Leveraged Buyouts, PSP, Emerging Markets Small Caps, EWX, Copper Miners, Small Cap Pure Value, RZV, Biotechnology, XBI, and Greece, GREK, were among those rising..

4) … In today’s news
Are you looking for real estate property in San Francisco, CA?  If so, I suggest one consider the newly listed property at 416 28th St, Noe Valley, CA, 94131 Realtor CLazar relates its “A very charming 2-bed, 1.5-bath, 1,064 square foot single family home in Noe Valley just landed on the market with an asking price of $1,059,000, or $995 per square foot, the neighborhood average. The home last sold in 2007 for $975,000. We should point out that in addition to the two proper bedrooms, there’s also a smallish bonus room that the listing suggests be used for an office or nursery. We think this place’s adorable, but the real property highlight is the terraced backyard, which is perfect for entertaining.”

God’s Judgement Falls On Mankind As He Devalues Currencies And Begins The Rule Of The Ten Toed Kingdom Of Regional Global Governance.

March 6, 2012

Financial Market Report for March 6, 2012

The Two Hundred Percent Volatility, TVIX and Volatility, VIXY, rose as European Financials, EUFN, Emerging Market Financials, EMFN, International Financials, IXG, India Earnings, EPI, led world stocks, ACWI, EEM, EWX, lower. Today’s drop in the European stocks, VGK, led by Spain, EWP, wiped out the gains of the last four weeks. The Trader in Zero Hedge writes Spain-Europe’s pink elephant in the room about to implode.

Competitive currency devaluation commenced as investors derisked out of stocks, VTI, VT, VSS, NYC, IWM, and delevered out of commodities, USCI, DBC, specifically DBB, CUT, JJA, The world’s major currencies, DBV, and the world’s emerging market currencies, CEW, traded lower, stimulating arise in the US Dollar, $USD, UUP. Sovereign exhaustion, that is exhaustion of the world central banks’ monetary policies, and fears of Greek sovereign default, have resulted in debt deflation, that is currency deflation. The Swedish Krona, FXS, led the currencies FXE, FXM, FXC, FXB, SZR, FXF, BZF, FXA, ICN, seen in this Finviz Screener lower.

All things are of God, 2 Corinthians 5:17-18, there is no human action. Out of the sea of humanity, and its many economic waves, God is raising up the Beast Regime of statism and totalitarian collectivism, to rule in all of mankind’s seven institutions, and in the world’s ten regions, Revelation 13:1-4. This is also the ten toed kingdom of regional global governance, Daniel 2:31-33, whose purpose is to stimulate people to repentance and to believe in His Son, and His Son’s Kingdom,  Revelation 2:26-27.

Witness Lee reveals a number of truths, “On the one hand, the gospel is for judgement, on the other hand, the gospel requires man’s repentance, whereas salvation requires man’s believing. The gospel is for man to escape God’s judgement by repenting, and to receive God’s salvation by believing.” p 46 The Lines In The Bible.

“When the Lord was on Earth, he preached God’s judgement in a complete way and spoke God’s salvation in a full way. He brought people to repentance like Jonah, and he caused people to believe like Isiah.” p 48.

““When the earth becomes the Kingdom of  our Lord Jesus Christ, Revelation 11:15, He will bring God’s authority to man. Not only will He reign with the overcomers for a thousand years in the coming kingdom age, He will also be King for eternity in the new heaven and new earth.” p 48.  

Stockcharts.com reports 802 stocks fell parabolically lower. Technical service companies such as FLR, URS, and JEC, railroad construction companies, GBX, TRN, ARII, building supply companies, NX, construction equipment companies, JOY, TEX, MTW, IR, TSCO, CR, as well as cement companies, CX, and MLM, which were leaders in the US Infrastructure, PKB, rally, fell sharply. Automobile Manufacturer General Motors, GM, which was rescued by the US Government and the Federal Reserve, fell strongly, which turned auto suppliers ALV, MAG, lower. Industrial electrical equipment manufacturers, such as ABB, ETN, BGC, were also strong fallers.   

Countries leading the way lower included EWD, RSX, ERUS, ARGT, YAO, ECNS, EWO, INDY, SCIF, EZA, VGK, EWZ, EWZS, EWA, KROO,

Sectors falling lower included URA, CHII, CHIM, CHIX, CHXX, TAO, INXX, REMX, SLX, COPX, ALUM, SEA, PAGG.

Total Bonds, BND, rose, while Junk Bonds, JNK, traded lower. The global government finance bubble, BWX, and EMB, traded lower on falling lower currencies. Systemic stability simply is not possible in a world of failed and insolvent sovereigns, BWX, and insolvent financial institutions, IXG. Soveign insolvency and banking insolvency, as well as trade imbalances, both regional and intra-regional, are the issues that is turning inflationism into destruction, and is moving the world from US and EU UK hegemony into regionalization.

Many steps towards a One Euro Government have already be taken, ie the August 2011 Merkel Sarkozy Comminique for a true European Economic Government, the Fiscal Compact with its Golden Rule of Debt Brakes, the subordination of sovereign debt to the ECB by executive fiat, and the regionalization of European Fianancial Institutions into the ECB via LTRO 1 and 2.  

Frank Barry, Professor of International Business and Economic Development at Trinity College Dublin, writes in PDF document, The Future Of Europe And The Euro,  “Responsibility for financial regulation may need to be federalised. Similarly, for bank resolution. There are no clear rules within the eurozone for who might need to bail out foreign subsidiary banks. Even without this complication, expecting Ireland to finance on its own the bailout of the Irish banking system is, as Morgan Kelly put it, like requiring the residents of Newcastle to do the same for Northern Rock. This clearly moves us further towards a federal Europe”

“Is it feasible to imagine that the eurozone will evolve in this direction? The logic is, I think, unassailable. The fiscal compact will not prevent future crises because it does not address the fundamental design flaws of the project, which have little to do with fiscal incontinence. Future crises will all push in this federalist direction.”

“If the euro is to survive, and if Ireland is to remain part of the project, we must seek to influence its direction. Our only real power is the voice we bring to the debate that Chancellor Merkel reignited ecently. Reestablishing the primacy of the Commission is crucial.” (Hat Tip to Irish Economy)

Summary
There is no human action, and there are no sovereign individuals. There are only God’s appointed things, Acts 17:26, and God alone alone is sovereign, Psalm 2:4-5. He acted sovereignly today by destroying fiat money, and destroying the Banker Regime that came via Milton Free To Choose script, which underwrote capitalism. Yes, both fiat money, and banking institutions, died today, March 6, 2012, on exhaustion of the world central banks’ monetary policies, and fear of Greek debt contagion.  Now the Beast Regime, as foretold in Bible prophecy of Revelation 13:1-4, as heralded by the 300 elite of the 1974 Club of Rome’s Clarion Call for regional global governance, is rising to rule mankind’s economic endeavors.   

Insolvent financial institutions, and insolvent nations cannot sustain growth or profitable investing. By God’s Sovereign Will, Ephesians, 3:1-11, a United States of Europe, that is a Federal Europe, will emerge out of financial armageddon, that is a credit bust and global financial collapse, to provide security, stability and ongoing regional economic sustainability. The Eurozone region will be one of ten such regions foretold in bible prophecy of Daniel 2:31-33.

In today’s new
Bloomberg reports Automakers Prepare for Deepening Decline in Europe Market. Ford Motor Co., Bayerische Motoren Werke AG, Toyota Motor Corp. and their competitors are preparing for a deeper slump in European sales after deliveries at the beginning of the year were at the low end of their expectations. “The market is very difficult,” Didier Leroy, Toyota’s chief for the region, told reporters at the Geneva International Motor Show. “The start of the year is even worse in terms of the market than was planned a few months ago.” Cars, CARZ, and Automobiles, VROM, plummeted in value

Casey Research writes The best currency may be physical gold

This article has been posted on the Internet

Great Depression 2 Begins As BRICS Turn Lower On Exhaustion Of World Central Banks’ Monetary Policies And Fear Of Greek Debt Contagion.

March 6, 2012

Financial Market Report for Monday March 5, 2012

World Shares, VT, VSS, traded lower as Great Depression 2 commenced, as the Two Hundred Percent Volatility, TVIX,  rose, but Volatility, VIXY, traded lower, as investors sold the BRIC, EEB, the Emerging Markets, EEM, EWX, on exhaustion of the world central banks’ monetary policies and fear of Greek, GREK, debt contagion. The Nasdaq, QTEC, QQQ, turned lower as MU, JBL, SIRI, QCOM traded lower. Transports, IYT, and Industrials, IYJ, lower.

The National Bank of Greece, NBG, led Greece, GREK, Brazil, EWZ, Russia, RSX, India, INP, China, FXI, lower.  

Boeing, BA, Eaton, ETN, Intel, INTC, Micron, MU, Applied Materials, AMAT, JBL Circuits, JBL, Caterpillar, CAT, Approach Resources, AREX, Sea Drill, SDRL, Transocean, RIG, Ford, F, General Motors, GM, American Axle, AXL, Magna International, MGA,  Intel, INTC, CF Holdings, CF, Potash CORP, POT, led Agriculture, MOO, PAGG, Energy, WCAT, PSCE, IEZ, XES, XOP, Growth, JKE,, Steel, SLX, Metal Manufacturing, XME, Copper Mining , COPX, Coal, KOL, Aluminum, ALUM, Uranium, URA, Semiconductors, XSD, Airlines, FAA, Shipping, SEA, lower.

The 4% trade lower in Copper Mining, COPX, the 3% trade lower in Steel, SLX, and Coal Producer, KOL, as well as trade lower in Industrial Metal Producers, VALE, RIO, CLF, BHP, ZINC, turned S&P Materials, MXI, lower.  

Automobiles, VROM, and Cars, CARZ, traded lower as the Associated Press reports European automakers forced to face overcapacity issues as austerity and crisis hit sales.

Country shares trading lower included YAO, CHII, CHXX, CHIX, HAO, EPI, SCIF, EWT, GMF, EPOL, TUR, EWD, EWC, EWW, EZA, EWA. The trade lower in European Financials, EUFN, turned European shares, VGK, lower.  

Commodities, DBC, Base Metals, DBB, and Silver, SLV, and Gold, GLD, traded lower, causing Emerging Market Mining Shares, EMMT, Gold Mining shares, GDX, GDXJ,  Silver Mining, SIL, and Canada Small Caps, CNDA, to trade lower.   

The failure of neo liberal finance was so pronounced that credit collapsed, as reflected in Bonds, BND, trading lower. Bond vigilantes called the Interest Rate on the US 10 Year Note, ^TNX, higher to 2.0%, which caused TLT, EDV, ZROZ to trade lower.  Risk aversion turned Junk bonds, JNK, lower for the second straight day.    

Fiat money died today, as is seen in the chart of the world major currencies, DBV, and emerging market currencies, CEW, turning lower. Currencies from this Finviz Screener trading lower included Indian Rupe, ICN, the Mexico Peso, FXM, the South Africa Rand, SZR, the Canadian Dollar, FXC, the Australian Dollar, FXA, the Brazilian Real, BZF, and the Swedish Krona, FXS.  Currencies in this ongoing Yahoo Finance chart are seen trading lower.

Summary: Currencies died today … regional global goverance is rising to replace capitalism.

All fiat wealth traded lower as Stocks, ACWI, Commodities, DBC, US Commodities, USCI, Bonds, BND, Major World Currencies, DBV, and Emerging Market Currencies, CEW, as the seigniorage, that is the moneyness, of Capitalism, aka, the Banker Regime of Neoliberalism, which came via the Milton Friedman Free To Choose floating currency script, exhausted on the failure of world central banks’ monetary policies, and fears of sovereign debt contagion, from a likely default by Greece on its sovereign debt.

Sovereign exhaustion, that is exhaustion of the world central banks’ monetary policies, and fears of Greek sovereign default, have resulted in debt deflation, that is currency deflation.  The fiat money system died today, and as a result the Second Great Depression commenced.  

Indeed today was a historic and pivotal point in human history, as bible prophecy was fulfilled, as  the world’s former governance, consisting of the global hegemony of two iron legs, that is the US, and the UK and EU, flowed by the failure of fiat money, into the ten toed kingdom of regional global governance, Daniel 2:31-33. The toes will be  an miry mixture of iron diktat and clay democracy, that will eventually crumble. And out of that, amalgamation will come a one world government, Daniel 7:7, a one world currency, and global seigniorage, Revelation 13:11-18.       

One’s economic life experience will be decreasingly in choices in capitalism, and increasingly in diktat of regional global governance, as fiat money died Monday March 5, 2012, on the exhaustion of central banks’ monetary policies and fears of Greek default.  Libertarianism is dead on arrival in the age of deleveraging. The Ron Paul agenda of freedom, freedom enterprise, and the free market monetary system, are simply mirages on the neo authoritarian desert of the real. There will be ever decreasing expression of sovereign nation states, as regionalization increasingly replaces democracy.    

Fate, not any human action, is operating through creative destruction, and the 1974 Clarion Call of the Club of Rome to produce Regional Global Governance, aka the Beast Regime of Neoauthoritarianism, where all of mankind’s seven institutions will be integrated with statism, in each of the world’s ten regions, Revelation 13:1-4, as political capital replaces investment capital to govern mankind’s economic activities.  

Under Neoauthoritarianism there are no sovereign individuals, nor are there any sovereign nations. Instead, there are sovereign bodies, such as the EU ECB IMF Troika, the ECB, and sovereign leaders, who will be appointed by country leaders meeting in summits as they announce regional framework agreements, waive national sovereignty, and pool sovereignty, for the region’s security, stability and sustainability. The diktat money system will replace the fiat money system. Diktat will serve as both money and credit.

Soon out of financial armageddon, that is a credit bust and global financial collapse, the most credible leader will rise to provide order out of chaos. This seemingly Little Authority,  Daniel 7:24-25, will be a New Charlemagne, who will rise to rule the Euro zone, where Germany will be preeminent, as a type of revived Roman Empire that governs the European continent. Reuters reports EU’s Van Rompuy warns over complacency in euro debt crisis.  

In a world of insolvent and failed sovereigns, gold is the only money good. I encourage one to buy and take possession of gold bullion and store it safely, as well as to buy gold on Internet vaults.  

Society will become dramatically pyramidal as the middle class is wiped out. Richard (Rick) Mills of Ahead of the Herd suggest in The Great Sharing that the middle class of developing nations will expand in number. This will not be the case as debt deflation commenced today with the failure of fiat money, and the exhaustion of the world central banks’ monetary policies. The weekly chart of world stocks, ACWI, shows that an Elliott Wave 3 Down has commenced. These are the most destructive of all economic waves as they for all practical purposes destroy the wealth created in the previous five waves up.   
    
In today’s news
Open Europe reports Slow take-up of voluntary Greek write-down plan raises prospect of forced restructuring. There has been a slow take-up of the Greek voluntary restructuring offer, despite investors having only until Thursday evening to decide if they wish to participate or not. Charles Dallara, Head of the Institute for International Finance (IIF) which negotiated on behalf of a large number of private bondholders, warned that the complexity of the deal meant that investors were taking time to fully understand it, adding, “They’re asking a lot of questions”. Meanwhile, Der Spiegel yesterday reported that the ECB doubts that the participation rate will be high enough to push through the voluntary restructuring, citing an ECB source as saying that “probably the Collective Action Clauses (CACs) will have to be activated,” which would force all bondholders to take part. Open Europe’s Raoul Ruparel was quoted by the Sunday Telegraph and the Telegraph arguing that CACs will most likely be triggered. This would give rise to big questions over the funding of Greek banks.

The Morgan Stanley Cyclicals Index, ^CYC, traded lower today. Just last week, capitalist Jim Paulsen, chief investment strategist at Wells Capital Management, said in Yahoo Finance Breakout Forget Defensive Stocks, Stick With Financials and Cyclicals. By now, you’re likely well aware of the declining rate of weekly jobless claims, that have steadily fallen to their lowest level in 4 years after peaking in 2009. While this weekly statistic has offered investors a nice dose of confidence, at least one pro is looking to them for another reason; stock market indicator. “Cyclicals (^CYC) tend to do really well as long as unemployment claims are continuing to come down,” says Jim Paulsen, chief investment strategist at Wells Capital Management. “Historically, they have tended to outperform until claims get down below 250,000, but I would suggest you stay over-tilted towards cyclicality, or economic sensitivity, until unemployment claims get down below 300,000.”  “Clearly we have cleaned up the large cap Financial industry dramatically and created a good operational environment for them,” he says, adding “confidence is probably more beneficial to the financial industry than any other sector of the economy.”

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The Ten Toes Of Iron And Clay Global Governance Will Eventually Transform Into A Dreadful Beast Of A One World Government

March 5, 2012

The ten toed kingdom of regional global governance that is now forming, Daniel 31-33, will eventually transform into a dreadful beast one world government, Daniel 7:7, Revelation 13:1-4, where a world sovereign, Revelation 13:5-10, and a world banker, Revelation 13:11-18, will provide global seigniorage, Revelation 13:17-18.  

Mack Quigley writes “In the chapter 2 vision, the fourth kingdom has two stages – the first stage is iron legs, and the second stage is of 10 toes mingled with clay: “And as the toes of the feet were part of iron, and part of clay, so the kingdom shall be partly strong, and partly broken.” Daniel 2:42. This final stage is the last world-government that will form. Therefore although the iron is just the “fourth kingdom” in the chapter 2 vision – it counts as two for the purpose of the chapter 7 vision.”

Please consider Mr. Quigley’s two column chart comparing the Great Metal Statue and the Parade of Beasts, which both communicate the progressions of kingdoms ordained by God.  He writes further, “The 2nd advent fulfilment of these prophecies must involve modern nations with a heritage in Roman Empire.”

Germany is the modern day descendant of the Roman Empire, and it is playing a leading role in effecting God’s plan for regional global governance. In 1974, the Club of Rome, a German based think tank, gathered 300 of the world’s elite who called for regional global governance as a means of dealing with the destruction coming from the failure of currencies and carry trade investing.

Jim Simmons writes The Club of Rome is a German based think tank established in 1957. It has a limit of 100 active members. The members are from five continents and 52 countries. It was an association of scientists, economists, businessmen, international high civil servants, and former heads of state. The Club’s purpose is to figure out ways to solve humanity’s problems. Many years ago, the Club of Rome advocated a “one world order,” dividing the world into 10 economic centers or regions, i.e., regions of countries. “Regionalization” became the new buzzword. World Federalists also advocated “world regions” and have detailed plans for a world government similar to the Club of Rome.

Angela Merkel is God’s point person for ushering in regional global governance, as she and Nicolas Sarkozy in their August 2011 Joint Comminique, called for a “true European economic government”.

The Economist relates the details of Angela Merkel’s shrew leadership. “ To begin with, Greece has more obstacles to overcome before securing the vital second rescue package it has been promised. Whether it can implement all the budget cuts and reforms it has promised is the subject of great doubt. But for now the mood is to push the rescue through; talk of forcing Greece into an early default has died away. So has the invective against Antonis Samaras, the leader of Greece’s New Democracy party, who has often questioned the EU-IMF conditions imposed on his country. Just before the summit, Mr Samaras had a long private meeting with Angela Merkel, the German chancellor. Both sides said it had gone well. Germany said it was reassured that Mr Samaras would stick with the programme if elected in Greece’s general election, expected in April. He said he had voted in favour of it and “paid with the blood of my party” after 21 members were expelled for opposing the EU/IMF demands.”

At the appropriate time, fate will open the curtains, and on to Europe’s stage will step the most credible leader. He will be the Sovereign, and will be accompanied by a monetary pope, the Seignior, who will have monetary cardinals, who will provide diktat for the money and credit need of Euroland, as well as provide structural reforms for economic sustainability. Budget commissioners will be appointed to provide technocratic government enforcing fiscal austerity. These Eurocrats will work for the security, stability, and sustainability needs of the European continent. The Economist relates that Mario Monti, the Italian prime minister, says that as well as a “fiscal compact” the EU needs an “economic compact”. Fate will bring these to pass, as it works in ever increasing regionalization.

All the pieces for a Federal Europe are falling in place, a monetary union has formed, and once leaders meet in summits and announce framework agreements, that is a fiscal compact and an economic compact, then a One Euro Government will rule supreme in the Eurozone. And fate will provide a leader, and a banker, for its political and economic leadership.

Reuters reports Herman Van Rompuy confirmed for 2nd term as EU Council president. This was also related by Open Europe as being covered in EUobserver European Voice Le Monde And was also related by Granhlaw.

Reuters reports Euro zone likely to decide on firewall at end-March. Herman van Rompuy, who chaired the summit, confirmed the decision could be left to finance ministers. “We will reassess, as we decided in December, the ceiling of the EFSF and the ESM in March, and it can be done by the finance ministers,”

Major world currencies, DBV, and emerging market currencies, CEW, will soon be turning lower, when it becomes apparent that Greece is an insolvent nation, and that its sovereign debt is unsustainable, and as confidence in the world central banks’ monetary policies fails. Open Europe writes Take III: Don’t Bore Me With The Details. Felix Salmon writes The Improbable Greece Plan. Greece’s debt dynamics get even worse. But of course even with well-below-market interest rates, Greece is still never going to pay that money back. The cost of this plan is €130 billion right now, and €170 billion over three years, through the end of 2014; it just continues going up from there, with no end in sight. Remember that total Greek GDP, right now, is only about €220 billion and falling.
King World News relates Fears Of Debt Contagion. These, as well as fears of decreased growth, and loss of confidence in the world central bank fiat monetary policies will cause disinvestment out of stocks and delveraging out of commodities, as fiat money dies globally on competitive currency devaluation.

Future EU Leader’s framework agreements will serve as the constitution for the New Europe, and usher in the ten toed kingdom of regional global governance, where the Beast Regime of Neoauthoritarianism, will be replacing the Banker Regime of Neoliberalism.

Please consider Michael’s post Twenty Quotes From European Leaders That Prove That They Know The Financial System In Europe Is Dead.

Soon a New Charlemagne will rise to rule the Euro zone, where Germany will be preeminent, as a type of revived Roman Empire that governs the European continent.

As it stands now, fiat money has expanded to its full potential and competitive currency devaluation has starting with the Euro FXE, the Brazilian Real, BZF, and the Indian Rupe, ICN, trading lower in value, causing the US Dollar, UUP, to rise. The global debt trade is starting to exhaust as is seen in Small Cap Pure Value, RZV, US Infrastructure, PKB, Small Cap Industrial, PSCI, Small Cap Technology, PSCT, Coal, KOL, Semiconductors, XSD, Leveraged Buyouts, PSP, trading lower. The Two Hundred Percent Volatility, TVIX and Volatility, VIXY, are bottoming out, providing further evidence that a market turn is at hand. The decrease in the Citi Economic Surprise Index from 37 to 32 indicates that global growth has turned from economic contraction, with the result that corporate earnings cannot be sustained, with the result that investors will be derisking out of stocks, ACWI, VSS, EWX, and deleveraging out of commodities, DBC.

The moneyness, of central bank authority is failing. A new moneyness, the seigniorage of diktat is rising to rule economics as political capital replaces investment capital as the dynamos of growth and profit that have driven capitalism are winding down, and the dynamos of regional security, stability and sustainability are powering up regional global governance.

The good news is that the coming one world government, which will be headed up by the Little Horn, that is the Little Authority, Daniel 7:7-8, wll be replaced by God’s Kingdom where Christ will rule and reign for a thousand years.

Dr. Michael J. Vlach writes This earthly aspect of God’s kingdom is evident in a connecting point between the fourth kingdom (Rome) and the fifth kingdom (God’s kingdom). The fourth kingdom (Rome) “shatters all things” and “breaks in pieces” its enemies (2:40). Likewise, the fifth kingdom, God’s kingdom, “will crush and put an end to all these kingdoms” (2:44). There is a parallel here—just as the fourth kingdom of Rome crushed all rival political kingdoms on earth, so too the kingdom of God will crush the earthly political kingdoms on the scene when it comes. The coming of God’s kingdom is not progressively taking place over time; it is sudden. This is a stone that violently brings an end to the kingdoms that preceded it. The kingdoms that use to exist are like “chaff” that is swept away by strong winds. Like the previous four kingdoms, God’s coming kingdom is a real geographical and political kingdom that will exist over the entire earth.

Brakeman1 presents the meaning of symbols in bible prophecy which aid in understanding the scripture verses presented in this article.

Sweden Leads World Shares Lower As Competitive Currency Devaluation Commences Causing US Dollar To Rise

March 5, 2012

Financial market report as of Sunday March 4, 2012

Sweden, EWD, has been a value investment leader due to its outperforming export driven economy, and its strong Swedish Krona, FXS, currency appreciation, seen in this combined chart of FXS, FXE, FXM, FXC, FXF, FXA.  But these factors will work to its detriment as global growth turns to global economic contraction, causing a rate of asset deflation that may equal that of the emerging market leaders, EWX, such as MELI, and the small cap value shares, RZV, such as SNX, DY, and others seen in this Finviz Screener.   

Global growth and export leader Thailand’s THD, rate of descent, which can be followed in this chart, is likely to be less step than Sweden’s rate of deflation, as it has trading partners in the stronger Asia region, EPP, than in the weaker European region, VGK. Value investing fails to apply in a deflationary investment environment. Purchasing high quality companies whose price has dropped will be like catching a falling knife. Buying on dips will present one with a series of ongoing losses. There will be no companies that will out perform in the coming downturn, as the weekly chart of world stocks, VT,  shows a loss of 0.19%, as it has crested into an Elliott Wave 2 Up in the last week of February 2012, and is now falling into an Elliott Wave 3 Down. The only value investing that will work is taking possession of gold bullion or buying gold in an Internet Vault.

Corey Rosenbloom in article Tying intraday divergences together with Elliott Wave charts the S&P on the start of its Elliot Wave Up on April 27, 2009. And TheWaveTrading in Safehaven charts the S&P, SPY, turning down from its Elliott Wave 5 Up, The “triumvirate” of MACD, Summation Index & BPI are now aligned with a sell signal while the daily RSI has breached the rising trend line support.

The collapse of the global debt trade has commenced, and can be followed in this chart ACWX, EWD, EWX, RZV as investors loose faith in the world central bank’s monetary policies, and the global government finance bubble, BWX, EMB, bursts. The currency demand curve, RZV:RZG, has turned lower, indicating a failure of monetary policy to stimulate and sustain risk.

Tan Soon Youn in Small-Cap Value Investing – the USA Experience documents the small cap value premium. The chart of RZV, SNX, MELI, DY shows the recent strong appreciation of the small cap value shares due to a safe haven flight to safety from Eurozone debt contagion and LTRO financing.  

Now debt deflation and exhaustion of neo liberal finance, will cause a fast derisking out of Sweden stocks such as Volvo, Electrolux, Sandvik, Svenska Cellulosa, Atlas Copco, Autoliv, seen in this combined chart.

Major world currencies, DBV, and emerging market currencies, CEW, will soon be turning lower, when it becomes apparent that Greece is an insolvent nation, and that its sovereign debt is unsustainable, and as confidence in the world central banks’ monetary policies fails. Open Europe writes Take III: Don’t Bore Me With The Details. Felix Salmon writes The Improbable Greece Plan. Greece’s debt dynamics get even worse. But of course even with well-below-market interest rates, Greece is still never going to pay that money back. The cost of this plan is €130 billion right now, and €170 billion over three years, through the end of 2014; it just continues going up from there, with no end in sight. Remember that total Greek GDP, right now, is only about €220 billion and falling.

King World News relates Fears Of Debt Contagion. These, as well as fears of decreased growth, and loss of confidence in the world central bank fiat monetary policies will cause disinvestment out of glow growth stocks, such as mining equipment manufacturers MTW, IR, TEX, TSCO, and out of agricultural companies, MON, ADM, and out of natural resource companies, IP, and also delveraging out of commodities, DBC,such as JJC, as fiat money dies globally on competitive currency devaluation.

Future EU Leader’s framework agreements will serve as the constitution for the New Europe, and usher in the ten toed kingdom of regional global governance, where the Beast Regime of Neoauthoritarianism, will be replacing the Banker Regime of Neoliberalism.

Please consider Michael’s post Twenty Quotes From European Leaders That Prove That They Know The Financial System In Europe Is Dead.

Soon out of financial armageddon, that is a credit bust and global financial collapse, the most credible  leader will rise to provide order out of chaos. This seemingly Little Authority, will be a New Charlemagne, who will rise to rule the Euro zone, where Germany, EWG, will be preeminent, as a type of revived Roman Empire that governs the European continent.

As it stands now, fiat money has expanded to its full potential and competitive currency devaluation has starting, with the Euro FXE, the Swedish Krona, FXS, the Brazilian Real, BZF, and the Indian Rupe, ICN, trading lower in value, causing the US Dollar, UUP, to rise.

The global debt trade is starting to exhaust as is seen in the recently Small Cap Pure Value, RZV, US Infrastructure, PKB, Small Cap Industrial, PSCI, Small Cap Technology, PSCT, Coal, KOL, Semiconductors, XSD, Leveraged Buyouts, PSP, Homebuilding, ITB, trading lower.

The Two Hundred Percent Volatility, TVIX and Volatility, VIXY, are bottoming out, providing further evidence that a market turn is at hand. TheWaveTrading in Safehaven writes Another opportunity could result with TVIX (2 x long VIX etf) since it could be on the verge of completing a large sideways corrective move. If the count that I am following is the correct one then the target range for a pending wave (C) up is located in the range: 22.85-27.32

The decrease in the Citi Economic Surprise Index from 37 to 32 indicates that global growth has turned from economic contraction, with the result that corporate earnings cannot be sustained, with the result that investors will be derisking out of stocks, ACWI, world small cap stocks, VSS, and emerging market leaders, EWX, and also deleveraging out of commodities, DBC, which traded lower.

Investors cannot leverage carry trade lending in a growth exhausted world, as the seigniorage of sovereign debt, US Debt, TLT, EDV, ZROZ, Italy Debt, ITLY, world government bonds, BWX, is turning lower, and emerging market bonds, EMB, is reaching over extension, on soon coming debt deflation, that is currency deflation, as fiat money dies, and bond vigilantes call interest rates higher globally, as will be reflected in the Flattner ETF, FLAT, falling, and the Steepner ETF, STPP, rising, which will be seen in the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, continuing its rise in an Elliott Wave 3 Up.

The moneyness of central bank authority is failing. A new moneyness, the seigniorage of diktat is rising to rule economics as political capital replaces investment capital as the dynamos of growth and profit that have driven capitalism are winding down, and the dynamos of regional security, stability and sustainability are powering up regional global governance.

Swedes are not Greeks. One is of the industrious and creative state; while the other is strident in affirming that it is the first republic. One manufactures exports, IYJ; while the other transports goods, SEA. Both are socialist, one is competitive and taxpaying; while the other is non competitive and non taxpaying. Wikipedia has superlatives in describing one; while The Economist says the other is characterized by patronage and pork.

Said again, Swedes are not Greeks. But they will both be one living in a global gulag of debt servitude, as the debts of Neoliberalism, that came through the Milton Friedman Free To Choose floating currency script, gives way to the austerity measures, structural reforms, and economic restructuring of Neoauthoritarianism, where diktat replaces choice. The debts of capitalism will be applied to every man woman and child in the world, as ten world regions of statism and totalitarian collectivism, rise to govern all.

The diktat money system is rising to replace the fiat money system. Libertarianism is dead on arrival in the age of deleveraging. The Ron Paul agenda of freedom, freedom enterprise, and the free market monetary system, are simply mirages on the neo authoritarian desert of the real. Fate, not any human action, is bringing forth a New Europe, in a New Age, which will be ruled by New Sovereigns.

No sovereign debt is sustainable in a world awash in debt deflation. The dreams of Austrian Economists such as Rothbard, Hayek, and Mises cannot, and do not apply in today’s environment of   economic, political and investment coup d etats, and in a world of failed nation states, which have lost their debt sovereignty. Currently, nation states such as Greece, are losing their fiscal sovereignty, as sovereign leaders and sovereign bodies dictate monetary policy, fiscal policy, and economic policy. In a credit depleted world, people in China, Europe, and North America, will look to sovereign leaders, and place their trust in them, giving them their full allegiance, relying not on fiat money, but rather their word, will and way for economic livelihood.

Systemic stability simply is not possible in a world of failed and insolvent sovereigns, BWX, and insolvent financial institutions, IXG.  Soveign insolvency and banking insolvency, as well as trade imbalances, both regional and intra-regional, are the issues that is turning inflationism into destruction, and is moving the world from US and EU UK hegemony into regionalization.

King World News writes Horrendous implications for systemic stability. And WKTV reports Screws Tighten on European Automakers. Milan, As automakers prepare to roll out new models this week at the Geneva Auto Show one of the major events in the automotive calendar they are being forced to fight for a slice of an ever-shrinking European market. And Mike Mish Shedlock writes of Deteriorating European economic statistics.

Ilango Karuppannah asks Is ASEAN an imagined region?  Regionalization takes place beyond the state and is an informal and bottom-up process that encompasses market-driven activities, civil society activism and people-to-people interaction. “Old regionalism” involves only the state and its institutions whereas “new regionalism” is “more pluralist and inclusive of different actors, institutional forms, combinations of actors and development experiences beyond Europe; is more interdisciplinary and multilevel in its analysis. And Alex E. Fenandez authors Regionalization and Globalization in the Modern World Economy: Perspectives on the Third World and Transitional Economies. And Mike Mish Shedlock writes Money for debt swaps but no money for Greece.

Wealth can only be preserved by dollar cost averaging into, and taking possession of, and safely storing, gold bullion as in an Internet Vault or in a safe in one’s home. In a world of failing sovereign, gold will be the premier form of sovereign wealth.

Soon, there will be no free land, that is no place to live free, except in the conscience of one’s mind. A good conscience, sound faith, abiding virtue (Arete), persistent goodness, ongoing brotherly kindness, and genuine love for all comes at a cost. ”Soon we must all face the choice between what is right and what is easy.” – Albus Dumbledore

The Sovereignty of God is being unveiled by current events. The Sovereign Lord God, Psalm 2:4-5, is in the process of judging governments, and replacing them with regional authorities, Daniel 2:31-33, and is bringing forth the Beast Regime of Neoauthoritarianism to replace the Banker Regime of Neoliberalism, in order to reveal the Sovereignty of His Son Jesus Christ, Revelation 2:26-27.

With the trade lower in world government bonds, BWX, we are witnessing the breakdown of sovereign authority. The age of sovereign crisis, sovereign insolvency, and universal sovereign unsustainability has commenced. God is in the process of slaughtering human government; and to accomplish his purpose, He has sent the four horsemen of the apocalypse to make sure the job gets done. The end result will be new government, that of His Son, who will rule from Jerusalem for a thousand years. He being the Sustaining One, will restore a destroyed Jerusalem, which will complete the Lord’s Recovery and the government will be upon His shoulders.  

I recently wrote Sovereignty comes by appointment. Angela Merkel is God’s appointed person to bring forth the New Europe. The Economist relates the details of Angela Merkel’s shrew leadership. “To begin with, Greece has more obstacles to overcome before securing the vital second rescue package it has been promised. Whether it can implement all the budget cuts and reforms it has promised is the subject of great doubt. But for now the mood is to push the rescue through; talk of forcing Greece into an early default has died away. So has the invective against Antonis Samaras, the leader of Greece’s New Democracy party, who has often questioned the EU-IMF conditions imposed on his country. Just before the summit, Mr Samaras had a long private meeting with Angela Merkel, the German chancellor. Both sides said it had gone well. Germany said it was reassured that Mr Samaras would stick with the programme if elected in Greece’s general election, expected in April. He said he had voted in favour of it and “paid with the blood of my party” after 21 members were expelled for opposing the EU/IMF demands.”

Wolf Richter of Testosterone Pit writes Merkel’s Next Phase  The conflict within the Eurozone has been simmering for weeks. On one side: German Chancellor Angela Merkel and her efforts to protect and promote her oeuvre. On the other side: Socialist François Hollande who is running against President Nicolas Sarkozy in the French presidential elections. But now, Merkel has raised the stakes by roping in three powerful allies and lining them up against Hollande—a desperate and risky gamble to keep Sarkozy in power.

And now it has leaked out that Merkel has advanced to the next phase in her fight against Hollande: She roped in three powerful allies, Italian Prime Minister Mario Monti, Spanish Prime Minister Mariano Rajoy, and British Prime Minister David Cameron. All are conservatives, and they were “scandalized” by Hollande’s plan to renegotiate the fiscal-union pact—though ironically, Cameron himself had refused to sign it. And they have entered into a confidential verbal agreement to boycott Hollande. Their motto: don’t give him a platform. And they agreed not to receive him when he visits their countries. A nasty slap in the face.

But the boycott heightens the risks in Merkel’s desperate gamble: the latest polls show just how much of a steamroller Hollande has become. During the first round on April 22, when a number of candidates fight it out for the top two spots, Hollande would obtain 30.5% of the vote, and Sarkozy 23%, well ahead of the rest of the field. In a faceoff between the two in the second round on May 6, Hollande would demolish Sarkozy with 58% of the vote against 42%. In French politics, this kind of lead against an incumbent is a phenomenon.

Hollande reacted on Sunday morning: “We’re a great nation, and a great country, whose choices will not be determined by the heads of state and governments that are our friends.” And he issued a veiled threat: “There comes a moment when Germans say it’s better to allow the French to choose freely, without pressuring them, so that the relations between France and Germany can remain relations of friendship.”

These machinations show just how brittle the Eurozone has become. And now Sarkozy and Merkel both face economic headwinds, as evidenced by an all-important industry. In France, new vehicle registrations have plunged for three months in a row, with French automakers suffering the most. While German automakers were still basking in last year’s glow of record worldwide sales and profits, registrations in February have collapsed brutally. And it’s only the beginning. Read…. Deep Trouble at the Core of the Eurozone.

Neoliberalism was characterized by what Doug Noland describes as wildcat finance, where bankers waved wands of credit. But, neoauthoritarianism will be characterized by wildcat governance, where leaders command with authoritarian clubs, as they bite, rip, and tear one another, fighting to become top dog.

Summary
The weekly chart of world stocks, VT,  shows a loss of 0.19%, as it has crested into an Elliott Wave 2 Up in the last week of February 2012, and is now falling into an Elliott Wave 3 Down.

The collapse of the global debt trade has commenced as reflected in the Small Cap Pure Value Shares,  RZV, turning lower, as investors loose faith in the world as investors loose faith in the world central bank’s monetary policies bank’s monetary policies, and the global government finance bubble, BWX bursts. The currency demand curve, RZV:RZG, has turned lower, indicating a failure of monetary policy to stimulate and sustain risk.

As it stands now, fiat money has expanded to its full potential and competitive currency devaluation has starting, with the Euro FXE, the Swedish Krona, FXS, the Brazilian Real, BZF, and the Indian Rupe, ICN, trading lower in value, causing the US Dollar, UUP, to rise.

The Two Hundred Percent Volatility, TVIX and Volatility, VIXY, are bottoming out, providing further evidence that a market turn is at hand.

The moneyness of central bank authority is failing. A new moneyness, the seigniorage of diktat is rising to rule economics as political capital replaces investment capital as the dynamos of growth and profit that have driven capitalism are winding down, and the dynamos of regional security, stability and sustainability are powering up regional global governance.

The diktat money system is rising to replace the fiat money system

This article has been posted on the Internet

World Stocks Trade Lower As Competitive Currency Devaluation Commences

March 3, 2012

Financial Market Report for the week ending March 2, 2012

World stocks, VT, VSS, traded lower today on competitive currency devaluation, as investor’s started to loose faith in the world central banks’ capability to sustain the global debt trade. Competitive currency devaluation means that there is no safe sovereign, and that there is no safe investment anywhere outside of gold.

Many are skeptical of gold, yet I recommend, that one start to dollar cost average into it at this time and take physical possession of it, keep it secured in a safe, and insure it with the insurance company, as well as buy it and store it in an Internet trading vault, as competitive currency devaluation is likely to devalue most all investments, with the exception of this hard asset. The Finviz weekly chart of Gold, GLD, shows a 1.3% rise, while the weekly chart of World Stocks, ACWI, shows a 0.1% rise. An investment demand for gold will arise as people seek a safe haven investment out of depreciating fiat assets.

Fiat money has expanded to its full potential. The global debt trade is starting to exhaust with the result that stocks traded lower as following:
RZV 2.3%  This, along with the decrease in the Citi Economic Surprise Index, is the canary in the stock market coal mine is warning investors to get out.
PSCE 2.3%
URA, 2.3
PKB 2.1
PSCT 2.0
XME 2.0
XSD 1.9
COPX 1.8
KOL 1.8
PSCI 1.7
ITB 1.7
IWM 1.4
PSCM 1.4

Countries trading lower included
EZA 1.4%
VGK 1.3
EWD 1.3
EWO 1.2
EIS 0.6

Johan Carlstrom of Bloomberg reports “Sweden’s reliance on exports to Europe has turned Scandinavia’s erstwhile strongest economy into the region’s laggard as job losses undermine demand. ‘It will get worse before it gets better,’ said Andreas Jonsson, an economist at Nordea Bank. ‘We will see rising unemployment during most of 2012.’ Jonsson said there is a risk the largest Nordic economy will contract this year, versus the central bank’s forecast for 0.7% growth.”

IYT 1.1% Transports show the way is down; and IYJ Transports traded 0.6% lower.

200% Volatility, TVIX  -0.4%, it saw over 8 Million contracts traded; Volatility VIXY +0.7%.

US Infrastructure, PKB, trading lower included, ARII, MTW, ETH, EXP, MAS, URS, GBX, TBI, TRN. Semiconductors, XSD, trading lower included, IDTI, VSH, ONNN, NXPI, SIM, STM, AVGO, FSL, ATML, LSI. Small Cap Industrial, PSCI, trading lower included ROLL. And  Small Cap Technology, PSCT, trading lower included DIOD, FEIC.

The strong downturn in US Infrastructure Stocks, and a trade lower in US Stocks, VTI, communicates that the seigniorage. that is the moneyness, of central bank authority is failing. A new moneyness, the seigniorage of diktat is rising to rule economics as political capital replaces investment capital as the dynamos of growth and profit that have driven capitalism are winding down, and the dynamos of regional security, stability and sustainability are powering up regional global governance.

All of this Finviz Screener listing of “projected fastest fallers”, with the exception of PFF, fell lower, including EUFN, PFF, RZV, PKB, COPX, ITB, EWX, PSP, GREK, XBI. Individual emerging economies, especially India, and Brazil, will experience a negative growth shock as euro-area banks deleverage, this will be reflected in the emerging market leaders  EWX, rapidly loosing value.

Currency deflation has commenced, this being seen in the major world currencies, DBV, and emerging market currencies, CEW, trading lower. Currencies such as FXE, FXM, FXC, ICN, FXB, FXS, SZR, FXF, BZF, FXA, seen in this Finviz Screener, that is http://tinyurl.com/7mwkbnf, traded lower today, and the US Dollar, $USD, UUP, traded strongly up.

Doug Noland reports The dollar index rallied 1.3% this week (down 1.0% y-t-d). On the upside, the Mexican peso increased 1.1%, the South African rand 1.0%, the Canadian dollar 1.0%, the South Korean won 0.9%, the Taiwanese dollar 0.5%, the Singapore dollar 0.3%, the Russian ruble 0.3%,  the Australian dollar, 0.2%. On the downside, Swiss franc declined 2.0%, the euro 1.9%, the Danish krone 1.9%, the Swedish krona 1.8%, the Brazilian real 1.2%, the New Zealand dollar 0.8%, the Japanese yen 0.8%, the Norwegian krone 0.6%, the Indian rupe 0.6%, and the British pound 0.3%.

Risk appetite is turning to risk avoidance, with the result being, derisking out of stocks, ACWI, and deleveraging out of commodities, DBC.  The fastest deleveraging will come out of Timber, CUT, as it has risen faster than base metals, DBB. Timber has been drawn up by LTRO financing of US Infrastructure stocks such as International Paper, IP, and Neenah Paper, NP.

Someone would have to be nuts to buy “loonies”, FXC, or Canadian Energy Shares, ENY, or the risk asset Junior Gold Mining Stocks, GDXJ, at the current time, as all fiat wealth, stocks, bonds, and currencies are headed into the pit of financial abandon, while the hard asset gold, GLD, will be retaining its value as a safe haven investment from debt contagion.  I encourage that one buy gold bullion; and store it in a safe at home; and insure it; and also buy bold at Internet vaults like Gold Is Money and  Bullion Vault … Here is more looneyness for you, Tyler Durden writes Iceland wants to adopt the Dollar… No, not that one, the other one. Not the US Dollar of course: why would the only country to successfully overthrow the chains of banker tyranny and default in their face want to ever have anything to do with the USD, the source of all the world’s problems. No, the dollar in question is that of Canada. According to the Globe and Mail tiny Iceland, “is looking longingly to the loonie as the salvation from wild economic gyrations and suffocating capital controls. And for the first time, the Canadian government says it’s open to discussing idea.

Of note, there was a credit collapse yesterday, as reflected in Bonds, BND, breaking sharply lower; these recovered today, but the chart shows them rising in an ascending wedge; prices usually tumble dramatically out of such formations. World Government Treasuries, BWX, broke sharply lower today, while Emerging Market Bond, EMB, continued strongly higher. I believe next week’s  chart will show this to be a type of evening star pattern, effecting a sharp reversal.  International Corporate Bonds, PICB, traded higher on with bonds, despite currencies trading lower. Junk Bonds, JNK, manifested a hammer in an ascending wedge, suggesting that its rise is complete. Nicole Bullock of FT reports “Sales of junk bonds are running at a record pace this year as investors pour money into risky assets in an effort to increase returns amid very low interest rates. In the first two months of 2012 companies around the world have sold more than $73bn of low-rated debt, the fastest start to the year since Dealogic began tracking this data in 1995. Most of that amount, more than $62bn, has been from the US market, where sales are also running at a record rate.”

The ongoing Yahoo Finance chart of the Interest Rate on the 10 Year US Government Note,  ^TNX, rose this week, causing the 10 Year US Government Bonds, TLT, and the 30 Year US Government Bonds, EDV, to trade lower as well. The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, has been moving higher in an Elliott Wave 3 Up since February 2012, continually destroying US Treasury value.

SoberLook relates The EIB now wants to be senior like the ECB; private bond holders don’t stand a chance in subordination circus. Sovereign bond investors don’t stand a chance going forward. With ESM in place and numerous other public EU institutions buying this debt, the Eurozone debt is now basically a CDO with a senior and a junior tranche.

The ECB subordination of other investors in swapping out debt effectively terminates the debt sovereignty of Euro zone nations, and creates the ECB as a sovereign entity. The ECB’s Greek debt swap has effected a monetary coup d etat in the Euro zone, whereby the baton of sovereign authority has passed from former sovereign nation states to the ECB, and has effectively created the ECB as the Euro’s Bank. The ECB’s Greek debt swap is a strong action in reorganization of monetary power: the ECB’s debt swap has effectively created a Euro zone monetary union, with the ECB established as the banking authority for a soon to emerge Federal Europe. John Glover and Abigail Moses of Bloomberg report  “The European Central Bank’s willingness to ride roughshod over bondholder rights risks pushing up borrowing costs for indebted governments by making investors less willing to lend. The ECB swapped about 50 billion euros ($67bn) of Greek bonds for new securities, identical to the old ones in every way save for identification numbers. The switch makes the ECB senior to other investors, exempting it from the largest sovereign restructuring in history as Greece rewrites the terms of its notes to ensure lenders forgive 53.5% of the debt. ‘Bondholders are effectively being subordinated every time the ECB gets involved — not legally, but economically,’ said Saul Doctor, a credit strategist at JPMorgan. ‘Foreign investors are going to be less willing to buy sovereign bonds when the ECB can exert itself.’”

The ECB’s Greek debt swap has effectively terminated the ability of countries to issue debt in a legitimate way: the only buyers of country debt will be European banks using LTRO funds. The ECB’s Greek debt swap provides both the liquidity and authority for the rise of diktat to replace choice in economic transactions in the Euro zone. The ECB’s Greek debt swap utterly terminates the Milton Friedman Free to Choose Script that has underwritten Neoliberalism for the last 40 years. The New Script of ECB policy announcements and EU Leaders agreements, both formal and behind the scenes, underwrites and establishes Neoauthoritarianism. Clearly capitalism is being replaced by regional global governance.

The ECB’s LTROs have effectively created the ECB as a singular EU banking institution. Liam Vaughan, Gavin Finch and Svenja O’Donnell of Bloomberg report: “European Central Bank President Mario Draghi’s success in quelling a bond-market rout across the euro region’s periphery masks a failure by the region’s banks to bolster their capital. ‘The worry is it may act to keep afloat institutions that aren’t exactly viable,’ said Stewart Robertson, chief European economist at Aviva Investors, which manages more than $425 billion. ‘This buys time for banks, but does it really provide them with an incentive to sort out their books? The worry is it doesn’t.’”

The Golden Rule coming through the recently approved Fiscal Compact is an attempt to deal with the issue of sovereign debt sustainability.

Keynes has taken us to the end of the age of sovereign nation states; other luminaries now show the way forward will be regional global governance. On December 30, 2011 Doug Noland wrote “Bubbles are complex and forever tricky. I believe the European debt crisis created major fissures in the “Global Government Finance Bubble”. World Government Treasuries, BWX, broke sharply lower today, piercing the sovereign debt trade that has underwritten capitalism and provided seigniorage, that is moneyness for the current sovereigns, that is nation states, to rule. In a debt deleveraged world, new sovereigns will rise to power as investment capital is replaced by political capital. One new sovereign is the EU ECB IMF Troika that is effecting a Euro zone wide coup d etat to become the sovereign authority in Europe.

The debt burden of countries has grown so huge, via financialization of securites by Wall Street, and Investment Bankers, like Dexia, that it is unsustainable, and cannot be managed through the Golden Rule of the recently adopted Fiscal Compact.

The hegemony of the US, and the UK and EU, will fail, and in its place regional global governance will rise to rule he world’s ten regions, thus forming the ten toed kingdom of regional global governance, as called for by the 300 elite of the Club of Rome in 1974, and as called for by Angela Merkel and Nicolas Sarkozy in their August 2011 Joint Comminique for a “true European economic government”.

Sovereign debt unsustainability is ushering in the age of regional global governance and the diktat monetary system, to replace democracy and the fiat monetary system. Choice is an epitaph on the gravestone of Neoliberalism. There will be no choice as in making investment decisions and there will be no choice as to who will govern.  Furthermore, Libertarianism, with its Freedom, Free Enterprise, and Free Monetary System, is a mirage on the Neoauthoritarian Desert Of The Real.

Negative growth shocks will amplify debt unsustainability and require leaders to meet in further summits and waive sovereignty, perhaps as Herman Van Rompuy says pool sovereignty, for the security, stability and sustainability needs of the EU. Fiscal compacts and economic compacts will complement the current monetary union and banking union that has developed and bring forth a Federal Europe, that is a complete One Euro Government. These leaders agreements will call appointment of monetary cardinals, who will provide diktat for both money and credit, and who will announce structural reforms which optimize the factors of production for the regional benefit.

Seamus Coffey writes in Irish Economy article IMF Fifth Review, The fifth review of the Extended Arrangement with Ireland can be read here. The debt sustainability analysis on pages 35-40 shows little changes from that provided in the Fourth Review. The Baseline Scenario is identical and extends to a projected gross debt ratio of 109% of GDP in 2017 (net debt 101% of GDP). The growth shock shows that if annual growth is close to zero (0.1% per annum) the debt would be 138% of GDP in 2016 and still rising. Joseph Ryan comments, “Re the growth shock, I think it is worth quoting the report on that piece: A negative shock to growth (stemming, for instance from a prolonged recession in trading partner countries) could put debt on an unsustainable path.” And Gavin Kostik comments on Item 43 on page 23. “However, Ireland faces greater challenges than envisaged at the outset of the program, as the effects of the euro area crisis are magnified by domestic debt burdens. The growth outlook has deteriorated as export prospects are dampened by the recession projected for the euro area and by lower growth projections for Ireland’s other trading partners. Moreover, deleveraging by European banks increases the risk of curtailing already low domestic bank lending and of more costly deposits, undermining prospects for restoring bank viability and for economic recovery. The vulnerability of household and SME balance sheets could increase the impact of such shocks on Ireland’s recovery, and a more lasting period of low growth would further increase the difficulty of the medium-term fiscal consolidation and threaten debt sustainability.”

Macro Economist Edward Hugh writes in EconoMonitor For Whom the Bailout Tolls. The reality of “bail-out II” means that, if the situation becomes critical, there will be a bail-out III.  Sushil Wadhwani, writing in the Financial Times. The objective of 120% for Greek debt in GDP is totally unrealistic, not only because it won’t be attained (it won’t), but because even if it were the country would still be in an unsustainable situation in 2020 .At the end of the day the Greek bailout is not for the Greeks at all. Certainly they will see very little of the money, and there will be none whatsoever to help restart their withering economy.The Greek bailout is to protect the rest. It is a vain attempt to let Greece go its course (or even die) while preventing the contagious smell from reaching Spain or Italy. The only real creditors now are the official sector.

Perhaps the best simple summary of what just happened was written by Annika Breidthardt and Jan Strupczewski in their Reuters report: “The complex deal wrought in overnight negotiations buys time to stabilize the 17-nation currency bloc and strengthen its financial firewalls, but it leaves deep doubts about Greece’s ability to recover and avoid default in the longer term”. We have just bought some time for the rest of us, while Greece is sent off to default and beyond. The Troika representatives didn’t “sign off” on the new deal, they effectively washed their hands of the whole messy situation. Naturally Greece won’t be able to comply with the conditions, and at the next review, or the one after, the country will be face to face with the inevitable.

MSN Money reports Fiscal Compact for budget discipline signed by 25 EU states.  Tyler Durden relates Sentiment turns south. The treaty puts tighter restrictions on spending. A test of Europe’s commitment to austerity will come when the region debates whether to ease the deficit-reduction target for Spain, which is part of the downbeat mood in stocks after Rajoy announced that the deficit target for the coming year is 5.8% of GDP and the 4.4% deficit goal is unattainable. And Conservative MP John Redwood, writes Euro friendly commentators agree that the intergovernmental Treaty is unlikely to do much for the Eurozone. It is widely seen as a fig leaf for German public opinion. It is not widely wanted or liked by other weaker members of the Eurozone, and it is difficult to see how it delivers the desired goal of lower budget deficits, more cuts and higher taxes all at the same time.

Reuters reports Spain defies Brussels on deficit target. And Reuters also reports No EU leeway offered on Spain’s deficit

Reuters reports Greek debt ruling dangerous precedent, PIMCO’s Gross says.

Tyler Durden writes What carry trade? Euro banks deposit entire LTRO 2 at ECB, bring total to over $1 trillion..

I encourage one to purchase a daily email subscription to Euro Intelligence as their daily briefing has the keenest insights one of which is The big story of yesterday’s EU summit is that the fiscal treaty is already collapsing. You don’t find this story in the summit declaration, but in the desperate and futile attempt by Mariano Rajoy, the Spanish prime minister, to persuade his colleagues to move the Spanish deficit target, which he cannot conceivably meet, without destroying his country’s economy. Rajoy faces the choice between breaking the target, and leading Spain onto a trajectory that is not consistent with monetary union.

Notice that Euro Intelligence used the phrase monetary union; they could have used the phrase currency union, but events have moved quickly like dominoes falling one upon another to establish a monetary union. I’ve written many times that the fiat monetary system is collapsing, and that the diktat monetary system is emerging, where ten regions of global governance will form through the creative destruction of capitalism.

Regionalization was the 1974 Clarion Call of the 300 elite of the Club of Rome. Its clear, ringing and trumpeting message has been heard and heeded by Angela Merkel and the EU ECB IMF Troika. Fate is producing a monetary union in the Euro zone; totalitarian collectivism is the EU’s future.

The Economist relates the details of Angela Merkel’s shrew leadership. “ To begin with, Greece has more obstacles to overcome before securing the vital second rescue package it has been promised. Whether it can implement all the budget cuts and reforms it has promised is the subject of great doubt. But for now the mood is to push the rescue through; talk of forcing Greece into an early default has died away. So has the invective against Antonis Samaras, the leader of Greece’s New Democracy party, who has often questioned the EU-IMF conditions imposed on his country. Just before the summit, Mr Samaras had a long private meeting with Angela Merkel, the German chancellor. Both sides said it had gone well. Germany said it was reassured that Mr Samaras would stick with the programme if elected in Greece’s general election, expected in April. He said he had voted in favour of it and “paid with the blood of my party” after 21 members were expelled for opposing the EU/IMF demands.”

At the appropriate time, fate will open the curtains, and on to Europe’s stage will step the most credible leader. He will be the Sovereign, and will be accompanied by a monetary pope, the Seignior, who will have monetary cardinals, who will provide diktat for the money and credit need of Euroland, as well as provide structural reforms for economic sustainability. Budget commissioners will be appointed to provide technocratic government enforcing fiscal austerity. These Eurocrats will work for the security, stability, and sustainability needs of the European continent.  The Economist relates that Mario Monti, the Italian prime minister, says that as well as a “fiscal compact” the EU needs an “economic compact”. Fate will bring these to pass, as it works in ever increasing regionalization.

All the pieces for a Federal Europe are falling in place, a monetary union has formed, and once leaders meet in summits and announce framework agreements, that is a fiscal compact and an economic compact, then a One Euro Government will rule supreme in the Eurozone. And fate will provide a leader, and a banker, for its political and economic leadership.

Reuters reports Herman Van Rompuy confirmed for 2nd term as EU Council president. This was also related by Open Europe as being covered in EUobserver  European Voice  Le Monde And was also related by Granhlaw

Reuters reports Euro zone likely to decide on firewall at end-March. Herman van Rompuy, who chaired the summit, confirmed the decision could be left to finance ministers. “We will reassess, as we decided in December, the ceiling of the EFSF and the ESM in March, and it can be done by the finance ministers,”

Paulo Santos writes in Seeking Alpha Economic Surprise Index breaks down. I comment that this portends economic contraction, and down trending exports, which in turn means reducing corporate profitability, and a fall in corporate share price. This along with the 2.3% trade lower seen in weekly chart of Small Cap Value, RZV, is the canary in sthe stock market coal mine warning investors to get out.

Reuters reports Wall Street, Fed face off over physical commodities.

Bloomberg reports Nokia Siemens cuts 3,500 more jobs in Brazil contract exit

Reuters reports Kodak sells online business to Shutterfly, patent sale pending.

Bloomberg reports Spain foreclosures stymied … debt investors become skittish. With Spain’s economy set to contract in 2012 for the third year out of five and unemployment at 23 percent, banks are increasingly easing terms for customers who are missing payments on mortgages underwritten during the country’s decade-long housing boom. Pressure to renegotiate debt and delays in repossessions are raising doubts that default rates on Spain’s 613 billion euros ($817 billion) of mortgages have stabilized. “It probably is going to be worse than people expect, even though the banks say it’s not a problem,” said Daragh Quinn, an analyst at Nomura International Plc in Madrid, on the outlook for mortgage arrears. “The more they kick the can down the road, the less visibility we have on what is really happening with asset quality. (Hat Tip  To Between The  Hedges)

Bloomberg reports China to stop local governments’ property easing. China will stem any new property easing by local governments as the central authority is determined to maintain curbs on housing, Shanghai Securities News reported today. The central government will “absolutely” not allow local authorities to “sing a different tune” on property control policies, the newspaper affiliated with state-run Xinhua news agency said, citing an unidentified director at the country’s housing ministry. Tensions between the two levels of authority will be on show next week as officials gather in Beijing for the annual National People’s Congress starting March 5. China’s local governments have attempted to ease property tightening policies with little success, while Premier Wen Jiabao has maintained that he won’t waver on real estate controls and efforts to bring prices down to a reasonable level. “The central government will not relax its property tightening this year,” Jeffrey Gao, a Shanghai-based analyst at Macquarie Capital Securities, said in a phone interview today. China’s February home prices posted the biggest decline in 19 months as the government pledged to maintain curbs on property, SouFun Holdings Ltd, SFUN, the nation’s biggest real-estate website owner, said yesterday.  (Hat Tip  To Between The  Hedges)

Markus Salzmann writes in WSWS EU and IMF increase pressure on Hungary.

Brazil Financials, BRAF, have been a hot money destination from LTRO financing, having 30% year to date as seen in this Google Finance chart. Matthew Bristow of Bloomberg reports “The biggest surge in consumer defaults since 2002 is causing Brazilian banks to charge more for loans, undermining policy makers’ bid to revive growth by cutting benchmark rates. The default rate on consumer loans rose to 7.6% from 5.7% a year earlier. The average interest rate on the loans rose to 45.1% in January from 43.8 the previous month.”

In conclusion of financial reporting, fiat money has expanded to its full potential and competitive currency devaluation has starting with the Euro FXE, the Brazilian Real, BZF, and the Indian Rupe, ICN, trading lower in value, causing the US Dollar, UUP, to rise. The global debt trade is starting to exhaust as is seen in Small Cap Pure Value, RZV, US Infrastructure, PKB, Small Cap Industrial, PSCI, Small Cap Technology, PSCT,  Coal, KOL, Semiconductors, XSD, Leveraged Buyouts, PSP, trading lower. The Two Hundred Percent Volatility, TVIX and Volatility, VIXY, are bottoming out, providing further evidence that a market turn is at hand. The decrease in the Citi Economic Surprise Index from 37 to 32 indicates that global growth has turned from economic contraction, with the result that corporate earnings cannot be sustained.

An inquiring mind asks, was Andrew Breitbart was a psychopath; he died of a heart attach in the early morning hours after a confrontational series of Twitter postings. I do not Twitter and never will.

Elaine Meinel Supkis writes in Hacker Collective Anonymous Drives Breitbart To Early Death. Here is what Rauhauser is referring to in the tweets: The True History Of Andrew Breitbart’s Hatred For Neal Rauhauser. Evidently, Breitbart was threatening Rauhauser’s consultation business by running dirty stories about his personal relatives. Bart’s last tweet was 2:25 am. The man was stressing himself out, big time. Probably literally foaming at the mouth as he ran on and on his last night on earth. He died by his own blogging sword, this guy. One thing I try to do is laugh at even unhappy things. So many people love to torment themselves online. This guy loved tormenting other people and he was pure dirt. He didn’t battle on clean ideological grounds, he went straight for the garbage dump to dig up trash. He was a dumpster (I wrote ‘dumbster’ first!) diver from hell. Well, about his premature death caused by him freaking out due to talking to people he abused in the past and of course, the Anonymous crew that specializes in computer dumpster diving…the guy died by falling into a trap he devised long ago to get others. Word of warning to all bloggers: eat well, exercise a lot and laugh more. Your health will suffer, otherwise. I work outdoors most of the day, most of the year (except for this winter, being stuck inside). I spend more than 6 hours a day outside, working.

Some connect with Goddesses to develop conscience. Sirona Knight Body, in Mind & Spirit on page 144, writes on Maat and Libra. “The important thing is to keep balance in your life and not let one aspect get out of balance. You can use affirmations to keep that in balance. Part of being with at peace with yourself is being true to who you are; otherwise you are rubbing up against the grain in frustration and stress. Try to keep your head about you when everyone else is losing theirs. Connecting with the Goddess can empower you, and help you stay sane in the modern world.”

I think along the lines of John McArthur who writes in The Conscience Revisited. “Take time each day to inform your conscience by reading God’s Word. Never train yourself to ignore your conscience, but respond quickly to its warnings. And then cleanse your conscience through consistent confession as you seek forgiveness from those you’ve sinned against–whether God or others. Those things will strengthen your conscience so that you can enjoy the freedom and blessings of a clear conscience before God.”

Psychopaths can be wealthy or poor, married or single. Yet many do live in poverty in low income neighborhoods. Being low income, and living in the inner city, many psychopaths run into me; they are busy bodies in other people’s business, particularly my affairs. They are people who have a sin nature of confrontation, they come that way from the womb, or become that way as they do not have psychologically and emotionally nurturing parents. Lacking intimacy in early childhood, and discipline and boundaries in childhood, they go on to eat of the tree of knowledge of good and evil, and not the tree of life. They have no true or genuine sense of right and wrong. They have no Libra, they become Arete, that is they define  right or wrong subjectively and then operate in a neighborhood or realm as the social sheriff, that is the community overlord, continually confronting and being rude, as this is the energizing dynamic in their life. They are people who have no rest from the anger inside until the police visit them so many times that they restrain themselves, or die, or are incarcerated for their anti social behavior.

I am sure another confrontational and rude person will rise to take his place. I must turn away, and do turn away, that is withdraw, from such individuals because they do not know the way of peace.

I conclude by stating that regional global governance is rising to replace capitalism. Soon, there will be no place to live free, except in the conscience of one’s mind. A good conscience, a sound faith, abiding virtue, persistent goodness, ongoing brotherly kindness, and genuine love for all comes at a cost. ”Soon we must all face the choice between what is right and what is easy.” – Albus Dumbledore.

After the Great Tribulation, Jesus is going to establish not only a land, but also an entire world, free of debt, and also sin. He is coming to abolish the double entry bookkeeping system. With the government on his shoulders, there will be global harmony, and complete freedom to enjoy his graciousness.

I anticipate ruling and reigning with the Lord for a thousand years; my time here is simply a management training program to serve in his administration. There will be no lucrative pay system like there is in the EU where Open Europe reports Writing in FAZ, Hendrik Kafsack argues that the inability of the EU to exercise restraint when it comes to the salaries of its 45,000 officials “hurts not only the credibility of all savings claims, but the reputation of the EU as a whole”. El País: Reding WSJ: Fidler Irish Independent: Quinn Economist Economist 2 Economist 3 Times: Clark FAZ: Kafsack

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