The Death Of Fiat Money Is Giving Rise To The Ten Toed Kingdom Of Regional Global Governance As Well As To The Rise Of A Sovereign Ruler And His Banking Partner, The Seignior, In The Eurozone

Murry Rothbard reported that the fiat monetary system began on August 15, 1971, when the US government suspended the convertibility of the US dollar to gold.

The Sovereign Lord God, has plans to let the European sovereign debt crisis fester and to utterly destroy the fiat money system. There will be no free market money system as desired by Murray Rothbard and other Libertarians.

The death of fiat money, that is, the death of fiat currencies, began in August 2011, as the US Dollar, $USD, began to rise from 73.50. This was immediately after investors sold out of stocks in July 2011, when they became aware that a debt union had formed in the Euro zone. Then in August, they sold heavily again, when Angela Merkel and Nicolas Sarkozy called for a true European economic government, and when Herman van Rompuy called for a sovereignty union.

Bible prophecy found in Daniel and Revelation provides insight into current world events. As fiat money suffers debt deflation, nations loose their sovereign authority, and debt sovereignty, and have to look to a credible sovereign to provide seigniorage, that is moneyness. In the Euro zone we are witnessing fate is passing the baton of sovereignty from sovereign state to the EU ECB and IMF Troika, as technocratic government is being installed in profligate Italy and Greece, and as seigniorage aid is provided to Greece. The Beast Regime of Neoauthoritarianism is rising up out of the Mediterranean Sea. This monster of statism has seven heads, symbolic of its occupation in mankind’s seven institutions and ten horns symbolic of its rule in the world’s ten regions, Revelation 13:1-4.

Soon out of sovereign armageddon, that is a credit bust and financial system breakdown, Revelation 13:3-4, leaders will meet in summits to announce regional framework agreements, cede sovereignty to a Federal Europe, establish a fiscal union, provide a committee for fiscal sovereignty, announce austerity measures, institute structural reforms, and impose debt servitude, in order to provide for regional security and stability. The Sovereign Lord God, Psalms 2:4-5, is operating through the first horseman of the apocalypse, Revelation, 6:1-2, to effect a EU wide political, economic and military coup d etat which will result in the death of all forms of economic life. The economic capital of credit and carry trade investing is being replaced with the political capital of diktat. Investment capital is being replaced by technocratic governments which enforce strict fiscal rule demanding even more austerity measures in Ireland and Spain, fiscal tightening to eliminate welfare in Argentina, mandates to eliminate state worker patronage systems in Greece, and structural reforms turning back of national wage contracts throughout Europe.

Those living in the EU are no longer citizens of sovereign nations, but rather residents living in a region of global governance, as called for the 1974 Clarion Call of the Club of Rome for regional global governance. Totalitarian collectivism is Europe’s future. Libertarianism’s Freedom and Free Enterprise are mirages on the Neoauthoritarian Desert of the Real. Choice is an epitaph on the tombstone of a prior bygone age of Neoliberalism.

Throughout history, God has provided a series of kings and a progression of kingdoms to rule mankind, Daniel 2:31-45, Freedom and Free Enterprise, the Libertarian dream, has come only recently and existed for a brief period, that is from the end of the Revolutionary War to the beginning of the Civil War. Fate appointed kings have included Nebuchadnezzar ruling Babylon; Cyrus and Cyrus and Darius ruling Merdo Persia; Charlemagne ruling Rome; Tony Blair ruling Great Britain, and George Bush, The Decider, ruling America with Unilateral Authority. And fate is pushing political and economic power of the UK and the US, the two iron legs of global hegemony, into the hands of ten kings, who will eventually come to rule, each in his own regional power base. With this distribution of power to regions, we see the rising of the Ten Toed Kingdom of regional global governance, Daniel 2:31-33, where rule in the ten toes will be mired in the clay of democracy and the iron of diktat. The coming President of the EU will be one knowledgeable with the scheme of framework agreements.

Coordinated provision Dollar FX Swaps and provision of the ECB’s LTRO facility have prevented the world’s financial markets from seizing up, but they have monetized the US debt and have commenced the loss of America’s debt sovereignty. This last week, Leveraged Buyouts, PSP, Junk Bonds, JNK, Municipal Bonds, MUB, California Municipal Bonds, CMF, Michigan Municipal Bonds MIW, rose. The Flattner ETF, FLAT, turned lower and the Steepner ETF, STPP, made what is a likely plummeting bottom, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened, 2%, signaling the beginning of the end of US debt sovereignty and US Hegemony, that has accompanied the Inflationism, that came with the Banker Regime of Neoliberalism. The last remnant of the Milton Friedman Free To Choose Age floating currency regime of leverage, is now history, as the maximum safehaven value of US Treasuries appears to have been achieved.

A sell signal developed in US Treasuries and in corporate bonds: the longer out debt LTPZ, TMF, ZROZ, EDV, TLT, BLV — all turned lower more than their shorter duration counterparts. Mortgage Backed Bonds, MBB, turned down this week. The Finviz chart of Bonds, BND, LAG, AGG, all show topping out characteristics this week, signaling that Peak Credit has been achieved. Deflationism has come to bonds. Risk has turned the spigot of investment liquidity completely off.

Currency debasement has created “bad money”, replacing “money good” in the world’s financial system. Doug Noland writes in Financial Arbitrage Capitalism After 10 Years Bill Gross penned a discerning op-ed for this past Monday’s Financial Times, “The Ugly Side of Ultra-Cheap Money.” Never before had the possibilities for Credit creation, and resulting fees and speculative profits, been so unfettered and incentivized. That is, as long as asset prices continue to inflate. Over time, this resulted in “money” and Credit becoming dangerously and increasingly detached from real economic wealth and wealth-producing capacity .“Gresham’s law needs a corollary. Not only does ‘bad money drive out good,’ but ‘cheap’ money may as well,” began Mr. Gross’s FT writing. I would strongly argue that this deleterious process of bad “money” driving out the relatively better commenced decades ago – and then proceeded to accelerate momentously during the nineties. Over the past decade, both U.S. household and federal debt more than doubled, as consumption boomed and deindustrialization gathered momentum. GSE assets tripled to $6.7 TN. Hedge fund assets quadrupled to surpass $2.0 TN. The global over-the-counter (OTC) derivatives market ballooned from about $100 TN to exceed $700 TN. Global central bank balance sheets ballooned uncontrollably. “Bad money” took the world by storm.

Inevitably, a point would be reached where the quality of the underlying mountain of Credit obligations would prove incompatible with highly leveraged speculative positions and deeply maladjusted economic structures. Global fiscal and monetary policymakers have worked inexhaustibly to bolster increasingly vulnerable debt structures, through the unprecedented issuance of sovereign debt and government guarantees; by imposing ultra-low interest rates; and by massive purchase, (monetization) of marketable debt instruments. And especially post-2008, this fragile structure (and associated mania) has been buttressed by the perception that policymakers retained the necessary tools to ensure the situation remained under their control. From Mr. Gross: “Conceptually, when the financial system can no longer find outlets for the credit it creates, then it de-levers.” True enough. I would add that a system will find it increasingly challenging to find “outlets for Credit” once premises behind, and confidence in, the mania in credit instruments begins to break down.

As credit instruments break down, not by any human action, but rather by fate, the curtains will open, and The Sovereign, Revelation 13:5-10, and his banking partner, The Seignior, Revelation 13:11-18, will step onto the world’s stage. In a credit exhausted and currency devalued world, the people will come to place their faith in the word will and way of these two; they will give their full allegiance to their diktat, Revelation 13:3-4.

The statue of the progression of human governments, Daniel 2:31-44, reveals that God has purposed for the destruction of fiat currencies and constitutional government to establish an eternal kingdom which will be ruled by His Son, Revelation 2:26-27, where He will reign in righteousness, Isaiah 11:4-5, … Isaiah 16:5, … Isaiah 32:1. His kingdom will be characterized by peace, Isaiah 2:4. The human life span of those with earthly bodies will increase, Isaiah 65:20-23, sickness and deformities will be healed, Isaiah 29:17-19, … Isaiah 33:24. The earth itself will also experience restoration as its decay will be reversed and the topography of the earth will be changed, Isaiah 2:2, … Ezekiel 47-48, … Zechariah 14:4-10, … Romans 8:19-23. There will be no double entry bookkeeping, and no credit or debt issued. Social problems of poverty will be solved, Psalm 72:12-13. The earth will enjoy productivity as even the deserts and wilderness will become useful, Isaiah 35:1-7, … Amos 9:13-14, … Zechariah 14:8.


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