Discord In Greece Over Austerity To Lead Financial Armageddon And A One Euro Government

Financial Market Report for May 8 2012

Andreas Rinke and Noah Barkin of Reuters report Germany warns Greece: no cuts, no aid. Leading German politicians warned Greece on Tuesday that the country would not receive a cent more aid unless it fulfills all the conditions of past bail out agreements.

The discord in Greece over austerity is the first tremor of a soon coming Financial Armageddon that will result in EU leaders meeting in regional summits, waiving national sovereignty, pooling sovereignty, and announcing framework agreements establishing a political, monetary, banking, and fiscal union, that is a Federal European Government, this being foretold in bible prophecy of Daniel 2:31-33 and Revelation 13:1-4 and Revelation 17:17. 

EU wide sovereign and banking insolvency, economic fragility, and political instability will result in monetary, banking, economic and fiscal regionalization as called for by the 300 elite of the Club of Rome in 1972 to 1976 in such documents as Mankind At The Turning Point.

Risk commodities, Silver, SLV, Gold, GLD, and Oil, USO, led commodities, DBC, lower.

The bonfire of the global financial institutions is steadily progressing, as World Stocks, VT, were led lower by Mining, MXI, and Banking, IXG, stocks. as National Bank of Greece, NBG, IRE, DB, STD, led the European Financials, EUFN, and Europe, VGK, lower.

Lloyd’s Bank, LYG, Royal Bank of Scotland, RBS, Barclays, BCS, HBSC, HBC, led the UK, EWU, lower.  The Telegraph reports  Chancellor George Osborne tells EU he won’t sign Britain up to ‘idiotic’ Basel III plan

India Banks, IBN, and HDB, led India, INP, lower; and Chinese Financials, CHIX, led China, YAO, lower; both of which led the  BRICS, EEB, lower.

Japan Banks, NMR, MFG, MTU, SMFG, led Japan, EWJ, and Asia, EPP, lower.

Chinese Industrials, CHII, Steel, SLX, Vice, BJK,  Homebuilding, ITB, Cloud Computing, SKYY, and US Infrastructure, PKB, traded lower. It was a slaughterhouse in retail stocks, XRT.

News via Between The Hedges

Zero Hedge reports Consumer Credit Soars As US Government Encourages Student, Car Loan Bubbles.

Bloomberg reports Commodities Erase 2012 Gains as Economic Outlook May Dim Demand. Commodities fell, erasing this year’s gains, as the struggle by Greek political leaders to form a coalition underscored growing concern that the region’s debt crisis will worsen, dimming prospects for raw-material demand. The Standard & Poor’s GSCI Spot Index dropped for a fifth straight session, heading for its worst run since August. The measure lost as much as 1.6 percent to 641.8, the lowest since Dec. 29. The gauge, which tracks 24 raw materials, was at 642.8 as of 11:22 a.m. in New York, down 0.3 percent for the year. Silver, gold, cocoa and crude oil led the declines. The last annual slump was in 2008. “We’re in a deflationary credit contraction situation globally,” said James Dailey, who manages $215 million at TEAM Financial Asset Management LLC in Harrisburg, Pennsylvania. “The banking systems in China, Australia, and obviously much of Europe are under severe stress, and that’s creating this kind of deflationary contraction that’s starting to unfold. You’re starting to get a smell of panic in the air and shift towards bearishness in commodities broadly.”

Bloomberg reports Greek Government Mandate To Pass To Syriza As Samaras Fails. Greek political leaders will meet for a second day today in a bid to form a government, with the mandate for the task being handed to the second-biggest party after New Democracy leader Antonis Samaras said he failed to forge agreement after an election that raised questions about the country’s euro membership. Samaras gave up his bid after nearly six hours of talks in Athens yesterday. The attempt to form a government will pass to Alexis Tsipras, the head of Syriza, the second biggest party, which has vowed to cancel the bailout terms. Tsipras will see President Karolos Papoulias today at 2 p.m. Athens time. “I tried to form a coalition government with two goals: that the country remain in the euro and bailout policies change to include growth measures,” Samaras said in a statement on state-run NET TV yesterday. “I did what I could to get a result but it was not possible. As such, I have informed the president of the republic and handed back the mandate.”

Bloomberg reports Greek Default Risk Returns as Bond Maturity Nears. Two months after forcing through the biggest-ever sovereign bond restructuring, Greece once again faces the prospect of becoming the first developed nation to default on its debt. The government taking office after this weekend’s election has 30 days to decide whether to make today’s interest payment on 20 billion yen of 4.5% notes maturing in 2016, or default. Then, by May 15, officials must decide if they’re going to pay the 436 million euros due on a floating-rate note issued a decade ago. These are among about 7 billion euros of bonds whose holders took advantage of being governed by foreign rather than Greek law to sidestep losses suffered under the private-sector involvement rescheduling, or PSI. Paying the holdouts in full would arouse the ire of Greek taxpayers, as well as investors who cooperated with PSI. A failure to pay would signal Europe’s debt crisis is worsening.

Bloomberg reports Euro Area Must Take Austerity Pain Now, Dombrovskis Says. Europe’s most indebted nations shouldn’t use their recessions as an excuse to avoid committing to austerity plans if the region is ever to emerge from its debt crisis, Latvian Prime Minister Valdis Dombrovskis said. “It’s important to do the adjustment, if you see that adjustment is needed, to do it quickly, to frontload it and do the bulk already during the crisis,” Dombrovskis said yesterday in an interview in Stockholm. “Certainly austerity is never a very popular subject and in this case the question is, are there really alternatives,” Dombrovskis said. “Of course, a country can say we don’t like austerity, but then the question they should ask first is who is going to finance the budget deficits, financial markets aren’t in the mood to finance large deficits right now.”

Jerusalem Post reports Egypt Islamist Vows Global Caliphate in Jerusalem. “The capital of the caliphate, the capital of the United States of the Arabs, will be Jerusalem, God willing,” cleric says. Egypt’s Islamists aim to install a global Islamic caliphate with its capital in Jerusalem, a radical Muslim preacher told thousands of Muslim Brotherhood supporters in a clip released Monday. Safwat Higazi told thousands of Brotherhood supporters at a Cairo soccer stadium, “Our capital shall not be Cairo, Mecca, or Medina. It shall be Jerusalem, Allah willing.

There will be no Muslim Caliphate; but rather, a European leader will establish his temple on the Temple Mount, where he will demand worship of himself as God. The prophet Daniel relates that there is waiting in the wings of Europe’s stage, the most capable of leaders. Soon, this one of seemingly little authority, that is the Little Horn, Daniel 7:8, will step into the limelight, and lead Euroland to be a type of revived Roman Empire, where Germany will be preeminent over peripheral client nation states such as Portugal, Ireland, Italy, Greece, and Spain. After a global Eurasia War, Ezekiel 38, Europe’s leader will set his sights on military occupation of Jerusalem, Daniel 8:9-10.  This individual’s power will be so great that he will dramatically change our times, and even change the scope of law, replacing his word, will and way for constitutional and historical law, Daniel 9:25.  The apostle John in Revelation 13:5-10 presents him as the Sovereign, and in Revelation 13:11-18, presents his partner, the Seignior, meaning top dog banker who takes a cut. Eventually these two will establish a one world government, Daniel 7:7, and provide a global money and credit system, that will provide world wide seigniorage, that is worldwide moneyness, Revelation 13:17-18. This sound bible doctrine has been presented by bible commentators such as John Darby for over a hundred years.

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