Financial Market Report for October 19, 2011
1) … The seigniorage of Apple iPhone failed, sending tech stocks lower.
Apple, AAPL, fell 5.6% after the company’s income and revenue fell short of forecast. This turned the small cap technologies, PSCT, 2.8% lower.
2) … The Euro fell lower today as leadership gridlock developed over resolution over the European Sovereign Debt Crisis and fears of debt monetization arose.
2A) … The Euro, FXE, and the Euro Yen carry trade, EUR/JPY, traded lower,
Currency traders are derisking once again out of the Eurozone currency and its popular carry trade pair, in response to fear over the European banking and sovereign debt crisis. Action Forex provides the chart of the EURJPY stating The break of 105.12 minor support argues that rebound from 100.74 is finished at 107.67 already; in spite of the current recovery, we’re slightly favoring this bearish case.
William L. Watts and Deborah Levine of MarketWatch reported Boris Schlossberg, director of currency research at GFT, as saying yesterday The risk rally is definitely running out of steam as high-beta currencies ran into their second straight day of liquidation sparked by weaker-than-expected GDP readings from China and continuing uncertainty over the efficacy of policy solutions that will be presented at an upcoming EU summit on the sovereign debt crisis.
2B) … Ambrose Evans Pritchard reports Franco-German deadlock over ECB’s role in rescue fund
“If there isn’t a solution by Sunday, everything is going to collapse,” he told his inner circle before an emergency trip on Wednesday night to see German Chancellor Angela Merkel in Frankfurt.
The talks are deadlocked, reflecting a deep rift between Euroland’s two great powers. The French fear the EU’s €440bn EFSF rescue fund will not be enough to shore up monetary union without mobilising the might of the European Central Bank as lender of last resort. It is a view shared by UBS, Citigroup, RBS and the US Treasury.
Mr Sarkozy wants the fund to operate as a bank, able to leverage its rescue power by tapping the ECB’s credit window. This is less likely to endanger France’s AAA credit rating. Yet the idea is anathema to Germany and Bundesbank purists.
Paris has grave doubts about Mrs Merkel’s demand for larger “haircuts, perhaps 50pc, for Greek bondholders. Such a move risks triggering default, crystallising crippling losses for French banks and courting “Lehman-style” contagion.
Mr Sarkozy’s task is made harder by bail-out fatigue and mounting euroscepticism in the Bundestag. “It is not just Merkel we need to convince, the coalition is divided,” he said.
German finance minister Wolfgang Schäuble cannot stem the crisis by embracing eurobonds or fiscal union without a change in Germany’s constitution, requiring a popular vote. He has instead offered an ungainly compromise to boost the EFSF to €1 trillion or so by turning it into a bond insurer, perhaps taking the “first loss” of 20pc on Club Med debt.
Even this may be going too far in Berlin. Peter Schäffler, economics chief for the coalition’s Free Democrats (FDP), said Mr Schäuble had broken a pledge given to the Bundestag when it voted for the revamped EFSF last month.
“People feel deceived. He said there would be no leverage,” he told The Telegraph. “It is absurd for him to claim that this plan is not leverage.”
Mr Schäffler said escalating liabilities threaten Germany’s AAA credit rating. “That is what worries me about this whole situation.”
A chorus of analysts on Wednesday said the EFSF proposals are unworkable. “It is unlikely financial markets will be fooled by this for long,” said Commerzbank.
“I have no confidence in this plan whatsoever,” said Hans Redeker, currency chief at Morgan Stanley. “It creates a two-tier capital market, which is dangerous. How can you insure Italian debt but not Belgian, or French debt?”
Mr Redeker said the proposals risk setting off a chain reaction in which France loses its AAA rating, followed by Germany and the creditor core as ever greater liabilities engulf them, too.
Morgan Stanley said European and UK banks may have to slash their loan books by €2 trillion over the next two years to boost capital and cut dependence on short-term funding. Lenders have already identified €775bn in cuts. The credit squeeze risks trapping Europe in near-slump next year, exacerbating the debt dynamics of Italy and Spain.
Jacques Cailloux from RBS said the attempt to turn EFSF into a bond insurer is misguided. “In our view it will ultimately fail to restore confidence. It is very risky for euro area policy-makers to rush out some quick deal on leverage,” he said, adding that the plan concentrates risk. Its “Achilles Heel” is that financial stress in Club Med states would inevitably ricochet back into Northern banks, he said.
Mr Cailloux said coverage of just 20pc of damage is no longer enough to lure back shell-shocked investors. “It’s like insurance that covers the cost of a front door rather than the full house,” he said.
2C) … David Gow of The Telegraph reports Sarkozy flies in for emergency euro talks to cement rescue deal.
Angela Merkel, the German chancellor, and Nicolas Sarkozy, the French president, held emergency talks in Frankfurt to try to cement a full-scale deal to save the eurozone from meltdown.
As around 100,000 Greeks staged violent protests in Athens at the austerity measures being imposed to prevent their country sliding into bankruptcy, Sarkozy underlined the scale of the crisis by flying straight to Germany’s financial capital rather than stay with his wife, Carla, for the birth of their first child.
The French president and German chancellor held talks with Christine Lagarde, IMF managing director, Jean-Claude Trichet, outgoing European Central Bank president, and other EU leaders.
Herman Van Rompuy, the European Council president, who was also present, said Lagarde and Trichet would attend Sunday’s eurozone summit in Brussels which is due to adopt a “comprehensive and global” deal to solve the sovereign debt crisis and prevent a renewed recession or even a slump. They were all taking part in a farewell ceremony for Trichet who leaves at the end of this month and who demanded “immediate action” to solve the crisis. Merkel called for “drastic changes to rules” and declared: “If the euro fails, Europe fails, but we will not allow that.” She said she was convinced there would be a deal.
In Athens demonstrators hurled chunks of marble and petrol bombs at riot police as Greece staged the first day of a 48-hour general strike but the euro rose against the dollar and stock markets rose after the Guardian reported on a Franco-German deal ahead of Sunday’s summit.
EU diplomats have said that the outline deal includes an agreement to boost the firepower of the eurozone bailout fund, the European financial stability facility (EFSF), from its current €440bn (£383bn) to around €2tn. This is the level demanded by the US and British governments and markets but some within Germany’s divided coalition government would prefer an upper limit of €1tn.
This “leveraging” could be done by allowing the fund to become an insurer and offer first-loss guarantees to holders of government bonds issued by countries which get into financial trouble.
But Sarkozy, under pressure to save France’s AAA credit rating and at risk of losing next year’s presidential election to socialist François Hollande, was making a last-ditch effort to persuade a hostile Merkel and Trichet to turn the EFSF into a bank.
The eurozone leaders are also seeking agreement on recapitalising Europe’s bigger (“systemic”) banks, with well-placed sources indicating that this could require €100bn rather than the €200bn mentioned by Lagarde last month.
These two core elements of the promised “grand bargain” are linked to an agreement to make Greece’s debt levels sustainable, with a report from a troika of the European commission, IMF and ECB due to be handed over to eurogroup finance ministers on Friday. This will inevitably impose bigger “haircuts”, perhaps as much as 50%, on bondholders than the voluntary losses of 21% agreed in July.
Van Rompuy indicated that a deal to “stabilise the situation, restore confidence and foster economic growth and employment” remained on the cards despite political differences. He spoke pointedly of handing the 17 eurozone leaders an early draft statement to work on.
The renewed sense of urgency among eurozone leaders to solve the crisis is heightened by evidence that Europe’s banks are finding it harder to borrow money from each other. The ECB reported that banks are now drawing up to €5bn from an emergency overnight lending facility that carries a punitive interest rate.
Earlier, José Manuel Barroso, EC president, held out the prospect of a political accord on the “comprehensive deal” at Sunday’s eurozone summit. “We are at a crucial moment that demands clear and determined responses,” Barroso said on launching a €50bn plan to speed up investment in big infrastructure projects.
He told reporters: “This weekend, I will insist on the need for decisive answers on all the five points of this roadmap, of this comprehensive package … It is a question of credibility for Europe that it can turn up at the G20 in Cannes with the main agreements in place.”
His aides increasingly expect a political deal to be reached this weekend but stress that the technical details of working out an interlocking agreement on making Greek debt sustainable, recapitalising Europe’s banks and boosting the bailout fund, the EFSF, are formidable.
This weekend’s summits will also be asked to endorse controversial plans to impose budgetary discipline on European countries “spending beyond their means”, including punitive fines and other sanctions. The sanctions being discussed, diplomats say, include forcing national parliaments to tear up planned budgets and start again and sending in inspectors to crack the whip of fiscal rectitude.
The solution to the eurozone crisis is for Europeans to work harder and for longer, rather than being cushioned by the welfare system, said Jin Liqun, chairman of China Investment Corp, China’s sovereign wealth fund. He warned on Wednesday that Europe’s fundamental problem was that its workers were simply not productive enough.
“The root cause is the over burdened welfare system built up since the second world war in Europe: sloth-inducing, indolence-inducing labour laws,” Jin told Channel 4 News. The average Chinese working week is nearly 48 hours, the maximum allowed under European law. “We work like crazy,” said Jin.
2D) … Bild reports since the beginning of the crisis, over €200bn has been taken out of Greek banks and transferred to Swiss banks, with €10bn in the last couple of months.
2E) … Euro Intelligence provides the very best of all reporting. I suggest a purchase of their newsletter which relates the following two news items which are only a sample of their outstanding coverage.
Wolfgang Schäuble says it was possible to lever it to a maximum €1 trillion. German parliamentarians were deeply upsets when he told them that leveraging was under consideration. Germany is now pushing for a Greek PSI of 60-70%. He insisted the German guarantee of €211bn would not be increased by the manoeuvre but some of the deputies were nevertheless upset. At the recent parliamentary debate Schäuble had refused to provide any details or even confirm plans for leveraging the EFSF so some of the parliamentarians now feel duped by their finance minister. The other still undecided issue is PSI, which Germany wants to be as high 60% to 70%, but this is unacceptable to France. After Moody’s comments on France, the 10-year yields have risen to 1.125% overnight. France is now close to a spread where Italy was not too long ago. A downgrading of France (which we think is very likely to happen) would automatically lead to a downgrade of the EFSF as well, and require fundamental changes to the way the rescue mechanism works. There has been more bad news, after Moody’s downgraded Spain to A1, and Standard & Poor’s downgraded 24 Italian banks and financial groups, citing weak growth and tight credit.
Sarkozy says Our destiny will be decided in the next 10 days. Nicolas Sarkozy did not react directly to Moody’s announcement to put France’s AAA on watch. But the French president did tell parliamentarians from his party over breakfast that “our destiny will be decided within the next ten days”, apparently hinting at Sunday’s EU summit, Le Monde’s Arnaud Leparmentier reports in his blog Elysée Coté Jardin. Later in the day Sarkozy warned that it was in the 20th century only that Europa had known the “two most barbarian” wars in the world. “To allow the euro to be destroyed is to take the risk to destroy Europe”, he said. “Those who destroy the euro will take over the responsibility of the resurgence of conflicts on our continent.” The president said the origin of the crisis was too much debt in Europe and consolidation was the only way to avoid the fate of Greece, Ireland, Portugal and Spain (he did not mention Italy). “We cannot hand over to our children the price of the cowardice of our generation”, he said.
2F) … Spain, EWP, fell 2.5% leading European Shares, VGK, lower as Bloomberg reports Spain’s rating cut to A1 by Moody’s. Banco Santender, STD, fell 4.3%
2G) … Zero Hedge reports German 10 year bund auction fails to cover issuance.
2H) … Major issues abound for the EFSF monetary authority.
A French downgrade by the rating agencies would require further changes to the EFSF treaty, beyond the agreements reached on Sunday. I believe that the rating agencies know full well that the EFSF is not a sovereign authority, and its bonds are a CDO, that monetizes sovereign debt; and I fully expect that the rating agencies to come out with downgrades.
3) … World Stocks, ACWI, and World Small Cap Stocks, VSS, traded lower today as the seigniorage of the industrial metal mining, silver mining, and gold mining stocks failed.
Between the Hedges reports China Iron Ore Spot continues to pick up downside steam, falling -23.03% since February 16th and -18.4% since Sept. 7th. causing the seigniorage of industrial metal stocks to fail once again. And Bloomberg reports Copper Drops For A Third Day As Europe’s Debt Crisis May Cut Into Demand. Copper, JJC, fell for the third straight day on concern that demand will ease as Europe’s debt crisis persists and economic growth slows in China, the world’s largest metal buyer. “Copper is under pressure because of a theme of slowing economies throughout the world,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “Prices will need to go lower to attract Chinese buyers as there’s ample supply” in the country, he said. Copper futures for December delivery dropped 1.9 percent to $3.297 a pound at 10:29 a.m. on the Comex in New York. The price fell 1.4 percent in the previous two days. I comment that the China Financials, CHIX, are in part dependent upon the price of copper, and they traded lower today. The chart of CHIX relative to JJC, CHIX:JJC, manifested a dark cloud cover candlestick, suggesting that the China Financials are about to be delevered again.
CNBC reports Drop in Gasoline Use Fuels Lowest Oil Imports in 15 Years. A drop off in gasoline sales and refineries reluctant to buy new crude supply could keep demand weak, as oil imports hit their lowest weekly level in 15 years. Gasoline demand is now down about 2 percent year-over-year.
The risk trade is off. Investors derisked out of Unleaded Gasoline, UGA, and Oil, USO, today, as both traded lower.
The seigniorage of the Junior Gold Mining Shares And The Gold Mining Shares has failed once again as is indicated by the these disconnecting from the price of gold as is seen in GDXJ:GLD, and GDX:GLD turning lower.
The HUI Precious Metal Mining Stocks, GDX, and the US Treasuries, EDV, always make market turns together as is seen in the ratio of GDX:EDV, turning lower. Both will now be falling lower into the Pit of Financial Abandon together.
Mining stocks fell sharply lower including FCX, VALE, BHP, CLF, AA, SCCO, TNA, POT, CF, RIO
Stock ETFs falling lower today included SLX, XME, COPX, ALUM, GDXJ, GDX, IGN, JNPR, FIO,
MXI, MOO, SKYY, XSD, EMMT, PSCE, PSCT, IYM, TAN, HHH, AMZN, BJK, XLB, IEZ, SIL,
RZV, OIH, ICLN
Commodity ETFs falling lower included DBC, DBB, USO, JJC, SLV. Silver is a risk trade ETF. How fast and how far it falls is anybody’s guess.
Country ETFs falling lower included TUR, THD, EWD, EZA, CNDA, EWO, KROO, CAF, FXI, HAO,
CHIX, CHIM, VGK,
The currency demand curve, that is the ratio of small cap pure value to small cap pure growth, RZV:RZG, manifested bearish engulfing suggesting that currency devaluation is about to get underway again. The US Dollar, $USD, manifested a long legged doji for the second day, reflecting a struggle in the world major currencies, DBV, and emerging market currencies, CEW. The commodity currencies, CCX, have traded lower. The bear market in materials has resumed. The Emerging Market Financials, EMFN, traded down 2% today, suggesting that a bear market in the emerging market banks may commence.
Intel, INTL, and Intuitive Surgical, ISRG, popped higher in what is likely an evening star pattern and represents a short selling opportunity.
5) … Investors see Operation Twist as monetization of debt and have abandoned US Treasuries.
Robert Wenzel reports Just news of Ben Bernanke’s ‘Operation Twist’ was enough to get China and other Asian countries to start hitting the Treasury security market bid. China sold $36.5 billion in U.S. Treasuries to cut its holding to $1,137 billion in August. Other countries in Asia cut their holdings as well, including Hong Kong, Taiwan, and Singapore. But, there are news saps at the table, the U.K. and Switzerland increased their holdings by $40 billion each, while Japan increased its portfolio by $21.8 billion
6) … Seigniorage, that is moneyness will no longer come from securitization of debt and ponzi financing, instead seigniorage will come from diktat
Bloomberg reports Papandreou Vows Further Austerity as Strikes Shut Greek Schools, Hospitals. Greek protesters clashed with police in central Athens after Prime Minister George Papandreou vowed to push through a further round of austerity and appealed to Europe to cut Greece’s debt load at an Oct. 23 summit. Riot police in white helmets used tear gas to hold back demonstrators from the parliament building in the Greek capital today as lawmakers debated the extra austerity measures demanded by Greece’s international creditors to keep aid flowing. Police said about 70,000 people gathered in Athens at the start of a 48-hour strike in one of the biggest protests yet against Papandreou’s latest program of cost-cutting and tax rises. “Without the measures, the 2011 budget won’t be met, neither will the budget in 2012,” Finance Minister Evangelos Venizelos told lawmakers in comments broadcast live, as groups of hooded protesters in gas masks lobbed Molotov cocktails at the riot police outside. “We are giving the battle of battles up to Sunday evening.” With a four-seat parliament majority, Papandreou is banking on his Pasok party lawmakers to face down public anger and pass the bill in a vote due tomorrow, when the unions have called more protests. A test of support for the bill will be held in parliament later today. The package, which follows a round of austerity measures passed in June, includes new taxes, more cuts to pensions and wages and plans to dismiss 30,000 state workers.
The structural reform to dismiss 30,000 state workers, that G-Pap will have do so in violation of the Greek Constitution. The abrogation of the Greek constitution will in effect be a coup d etat not only in Greece, but in the Eurozone as well as it will officially create a debt union, and establish the Troika as sovereign authority over the Greek people. By submitting to the Troika’s demands for dismissal of state employees he will be waiving national sovereignty, and be taking additional steps forward in a super European Government.
The non functioning Eurozone interbank liquidity market is symptomatic of credit evaporation. Two other words for credit are trust and faith. Faith and trust can not be found in Eurozone banking. There is no faith in sovereign authority. Tyler Durden relates There is no outcome that saves both the banks, and guarantees future European sovereign issuance under the currently contemplated structure. The EU nations have lost their sovereign debt capability; and having lost fiscal resources, chaos is imminent.
Sovereign Armageddon, that is a credit bust and global financial breakdown, is accompanied by a contraction of credit in China, as reflected in the fall of the commodity copper, JJC, which has caused debt deflation, that is currency deflation, across the globe, turning the basic material stocks, XLB, and IYM, particularly, the copper miners, COPX, lower.
The mining kings of the Age of Leverage have fallen. The king of copper and gold mining Freeport McMoran Copper and Gold, FCX, has fallen. The king of copper Southern Peru Copper, SCCO, has fallen. The kings of iron ore Rio Tinto, RIO, Vale, VALE, BHP Billiton, BHP, and Cliff Natural Resources, CLF, have fallen. An inquiring mind asks, which kings of the Age of Deleveraging will rise to replace them?
The seigniorage of fiat wealth in stocks, bonds, and currencies failed, in April 2011, and in July 2011, as is seen in the ratio of world stocks, ACWI, relative to world government bonds, BWX, ACWI:BWX, turning lower. Today, that ratio manifested bearish harami. The Seigniorage of Chinese Financials is dependent to some degree upon copper; and the failure of the seigniorage of the Chinese Financials is seen in the ratio of two, CHIX:JJC, turning lower in July 2010 and November 2010. Today, that ratio manifested a dark cloud covering.
Seigniorage, that is moneyness, is no longer coming from the securitization of debt; nor is seigniorage coming from investing in industrial metals, whether it be iron, copper, or silver. The seigniorage of growth has failed..
In the Age of Deleveraging, the only seigniorage besides gold that will work is diktat, specifically the diktat of the soon coming Sovereign and Seignior who will rise to rule in the Eurozone.
The economic, political and financial global tectonic plates have shifted, and an authoritarian government tsunami is on the way. This was foreseen by the 300 elite of the Club of Rome who in 1974 issued The Clarion Call for regional economic government, as a resolution of chaos stemming from the deleveraging and disinvestment coming with the end of the Milton Friedman Free To Choose floating currency regime.
Soon an individual familiar with the scheme of regional framework agreements will step onto Europe’s stage, and provide order out of chaos. He will be the New Charlemagne, establishing a type of Revived Roman empire. Perhaps this individual might be Herman Van Rompuy, as he arraigned the first summit over the crisis in May of 2010. Having both sovereign authority and fiscal authority, he will rule over a Fiscal Union, and a Common Treasury in the Eurozone. Angela Merkel and Nicolas Sarkozy have laid the groundwork by calling for true European Economic Government, in their August Joint Communique. The Sovereign will be cunning, that is shrewd, and fierce as well as he will face a whole spectrum of angry people.
Neoliberalism “ran with” the Milton Friedman Free Script. This previous regime featured floating currencies, that generated prosperity via wildcat governance, as it set investors and bankers free to invest in whatever they chose, with leverage coming from deregulation via repeal of the Glass Steagall Act, and ponzi financing of GSE debt, as well as HELOC lending which created moral hazard. Democracy abounded.
In contrast, Neoauthoritarianism will “run by” the word, will and way of the Sovereign and the Seignior; It will provide austerity and debt servitude for all. This developing regime features deleveraging, derisking, disinvesting, and sinking currencies, that generates adversity for all, via wildcat governance, as leaders meet in summits, waive national sovereignty, and announce regional framework agreements, structural reforms, austerity measures and apply debt servitude to all. The Eurozone’s future will be Totalitarian Collectivism.
7) … News of the day
Chile was one of the countries cited Milton Friedman for its receptiveness to his ideas. Now, we have reports of outbursts of violence after huge marches in Chile
Many US Federal Reserve officials live in a bubble; they suffer from bubble mania. Such are remnants of the bygone era of Neoliberalism, which featured wildcat finance, a Doug Noland term, that came via Fed ZIRP, Federal Reserve Quantitative Easing, and Ponzi Financing via the securitizaion of debt by Mortgage REITS, REM, for the GSEs. Many with the Fed should receive Bubblenomics Awards for their creation of all kinds of bubbles, especially the global government finance bubble. The Bubblistas include James Bullard who Bloomberg reports as as Fed Policy Appropriately Easy, Relapse Unlikely.
Bloomberg reports Housing Starts in U.S. Rise 15%, Beat Forecast. Builders began work on more U.S. homes than forecast in September and consumer prices climbed at the slowest pace in three months, supporting Federal Reserve forecasts for a pickup in growth and a moderation in inflation. Housing starts jumped 15 percent to a 658,000 annual rate, the most since April 2010, the Commerce Department reported today in Washington. Data from the Labor Department showed the cost of living climbed 0.3 percent from August, in line with the median projection of economists surveyed by Bloomberg News. The increase in building was led by a surge in construction of apartments and other multifamily dwellings that may continue to support the industry as the housing slump turns more Americans into renters.
AP reports Violence Erupts as 2-Day Strike Shuts Down Greece The protest, which has grounded flights, disrupted public transport and shut down shops to schools in Greece, comes ahead of a parliamentary vote on a fresh package of tax increases and spending cuts required by international creditors in return for crucial bailout cash.
Robert Stevens of WSWS reports Greek refuse workers threatened with army intervention on eve of general strike Greece’s social democratic PASOK government is preparing to use the army against striking Athens refuse workers and threatening mass arrests ahead of today’s 48-hour general strike.
Robert Wenzel reports BofA Moves Risky Trades To Government Insured Subsidiary I relate that the Bank of America just got nationalized. The continues and magnifies a pattern of moral hazard and ponzi financing that will end up in the nationalization of all banks. Bank nationalization is the future of governments both in the US, in Europe and around the world. And will result in regional economic government being mandated by leaders as called for by the Club of Rome in 1974. Bloomberg provides this insightful report “the Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people.” Robert Wenzel continues The Merrill Lynch securities unit, held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades. And Mike Mish Shedlock provides coverage in article Bank of America Moves a Merrill Lynch Derivatives Unit to an Insured Deposits Unit (Putting FDIC at Risk) writing Fed approves Move, FDIC Doesn’t.
Neoliberalism featured bubblenomics and Nouriel Roubini is an economist who favors bubbles of ever increasing amplitude. The greatest bubble economists have been Alan Greenspan, the purveyor of credit liquidity, and Ben Bernanke, the provider of ZIRP, and creator of quantitative easing. And Mike Mish shedlock provides profile data on Nouriel Roubini writing that he embraces bubbles of ever increasing amplitude. In contrast to Neoliberalism, bubbles will implode under Neoauthoritarianism and will be the genesis of structural reforms, austerity measures, and debt servitude.
Neoliberalism featured prosperity, but Neoauthoritarianism features austerity. Business Insider reports America Has Experienced The Biggest Drop In Standard Of Living Since The Sixties. And Business Insider reports US Misery Index Is At A 28-Year High.
Neoliberalism featured democracy; but Neoauthoritarianism features coups. Washington Blog relates The Federal Reserve and Bank of America Initiate Coup to Dump Billions of Dollars of Losses on the American Taxpayer.