1) … European Financials Report for August 19, 2011
Bloomberg reports Europe Banking Shares Tumble for Third Day on Funding, Earnings Concern. European banks, EUFN, tumbled, led by Lloyds Banking Group Plc (LLOY) and Intesa Sanpaolo SpA (ISP), on concern firms will struggle to fund themselves and increase earnings as the region’s sovereign debt crisis strangles economic growth. Lloyds, Britain’s second-biggest government-assisted bank, fell 6.2 percent in London trading, while Intesa slid 5.9 percent in Milan. The 46-member Bloomberg Europe Banks and Financial Services Index tumbled 3 percent after dropping the most in two years yesterday. While “the chances of a genuine liquidity crisis as experienced in 2008 are reasonably remote,” lenders may face a “slower-moving, but still toxic, funding crisis,” Deutsche Bank AG (DBK) analyst Matt Spick said in a client note. Moreover, “the weight of negative earnings momentum as we head into the second half represents a major ongoing risk for the European banks,” he said. The Bloomberg European banks index tumbled 10 percent this week on signs lenders are facing tougher funding conditions. Banks’ sale of long-term debt fell behind again in July and August, which may be the weakest month on record, and that could force firms to further reduce leverage, bad news for banks and the economy, Spick said in the note.
Bloomberg reports Financial Debt Risk Jumps to Record in Europe on Growth Concern. The cost of protecting European financial debt surged to a record on concern global economic growth is faltering and banks will struggle to fund themselves. The Markit iTraxx Financial Index of credit-default swaps linked to senior debt of 25 banks and insurers increased as much as 12 basis points to 243, a record based on closing prices, according to JPMorgan Chase & Co. and was trading at 237 basis points at 10:30 a.m. in London. The Markit iTraxx SovX Western Europe Index of swaps linked to the debt of 15 governments increased for a third day, climbing 1 basis point to 291. Contracts on Spanish government debt rose 6 basis points to 370, according to CMA. Italy swaps added 8 basis points to 362 and France was up 2 to 152. The Markit iTraxx Crossover Index of 40 companies with mostly high-yield credit ratings increased 11 basis points to 655.5. The Markit iTraxx Europe Index of 125 companies with investment-grade ratings rose 2 basis points to 154 basis points.
Business Insider reports Father of the Euro: It’s “On the edge of a precipice”. Jacques Delors, one man responsible for ushering in the European Economic and Monetary Union, told Swiss newspaper Le Temps that Europe and the euro risk falling from “the edge of a precipice.”
Between The Hedges relates Tiroler Tageszeitung reports Jean-Claude Juncker, who leads the group of euro-area finance ministers, said the countries sharing the currency must give up sovereign powers for a common “economic government” to make sense, according to an interview. “An economic government without relinquishing national competencies would be dead on arrival,” Juncker was quoted as saying.
Carmen Cristea of NineOclock.ro reports Basescu pleads for creation of ‘United States of Europe’
We must decide fast, in the next 2 to 3 years, whether to create the United States of Europe”, Mediafax quoted Basescu as saying. The head of state described the European Union’s future as “uncertain” unless the “necessary decisions are.
2) … The decision to create a United States of Europe was made by God in eternity past.
The true European Government Government called for by Chancellor Merkel and President Sarkozy, is part of the Ten Toed Kingdom of Global Governance presented in the progression of kingdoms found in Daniel 2:31-35 which prophesies five kingdoms to rule over mankind:
1) Head of Gold: Babylon Empire
2) Chest and Arms of Silver: Merdo-Persian Empire
3) Belly and Thighs: Greek Empire
4) Legs of Iron: Roman Empire
5) Feet and Ten toes of Iron And Clay: British Empire and American Imperialism and ten regions of global economic government.
In May 2011, the world passed through an inflection point moving from Neoliberalism and into Neoauthoritarianism, as is seen in the wold stocks, ACWI, falling lower.
The Clarion Call of the Club of Rome for regional economic government was heard and heeded by Chancellor Merkel and President Sarkozy. Clarion means trumpeting, as the word comes from the Latin word for trumpet and translates into English as clear, ringing and sharp. It is a call to action, a call to duty.
The two foremost European leaders have suggested Herman Van Rompuy as the leader for the European Economic Government. Its likely that he will rise to be President of the EU. Mr. Van Rompuy is distinguished in that he is brilliant, multilingual and unlike his peers, does not get involved in affairs with women. He will come in like a lamb, yet proceed like a fierce lion. His rule will be characterized by wildcat governance, as he will have to contend with many who oppose his way of austerity and reject his Seignior’s moneyness, which will be based upon their word, will and way. This Sovereign, is foretold in bible Prophecy in Revelation 13:5-10; he will be the New Charlemagne, in a type of Revived Roman Empire.
The Call of the Club of Rome produced an authoritarian imperative for regional economic goverment, which will come as leaders meet in summits and waive national sovereignty. The 1974 Conclave of Elites’ Call, is like a magnet drawing iron elements. it is both clear and compelling. Mrs Merkel will likely loose her elected office, yet the die is cast and destiny moves on. Neoauthoritarianism has replaced Neoliberalism, and fate will work to produce regional economic government in the world ‘s ten regions; this is presented as the Beast System of Revelation 13:1-4.
Liberty will be in continual conflict with Neoauthoritarianism’s Ten Toed Kingdom of Global Governance, which is preesnted both in Revelation 13:1-2 and in Daniel 2:34. Liberty and diktat are like clay and iron, that is they are non compatible building materials, regional economic governance will crumble, and out of the ruins, the Sovereign of Revelation 13:5-10, will eventually rise to global power and install a One World Government described as beastly in Daniel 7:7 and Revelation 13:1-4. His Seignior, meaning top dog banker who takes a cut, described in Revelation 13:11-18 will install universal regulation of banking globally, specifically a One World Bank, and provide seigniorage globally in the form of The Mark, meaning etching in or tattoo upon.
3) … News of the day
Neoliberalism has replace neoauthoritarianism as the world’s regime for political and economic governance; the former was characterized by The Spirit Of The Cat In The Hat, the latter is characterized by The Spirit Of Wilding as Kevin Murphy of Reuters reports Kansas City sets youth curfew after ‘flash mob’ shooting.
Zachary Roth of The Lookout reports Bank of America to lay off thousands — and struck by lightning
Philip Moeller, of US News and World Report relates Social Security’s annual cost of living adjustment, COLA, seems assured of rising in 2012 by a few percent, its first increase in three years
Reuters reports that the Greek Finance Minister Evangelos Venizelos told the Greek cabinet yesterday that an additional €3bn-€4bn in austerity cuts may be needed to account for the larger than expected recession, which has resulted in lower than expected tax revenues
Wall Street Journal reports Buyout Shops Get Mauled by Market. Private equity, PSP, is being pummeled. Few shares are experiencing the kind of beating that big buyout firms are enduring. Firms like Blackstone Group LP, KKR & Co., Apollo Global Management LLC and Fortress Investment Group LLC have seen their shares fall between 19% and 27% so far this month, compared with a drop of 9.5% for the Dow Jones Industrial Average. On Thursday, the carnage continued, as these stocks fell between 1.6% and 11%, while the Dow average fell 3.7%. The troubles for these shares underscore how disappointing many private-equity companies have been for investors.