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.
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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