Archive for April, 2012

Global Financial Institutions Will Soon Cease Investment Banking Operations And Be Active Participants In Regional Global Governance

April 29, 2012
Graham Summers writes in Zero Hedge The Truth About the Spanish Banking System That 99% of Analysts Fail to Grasp. Spain is a catastrophe on such a level that few analysts even grasp it. Indeed, to fully understand just why Spain is such a catastrophe, we need to understand Spain in the context of both the EU and the global financial system.

Indeed, to give you an idea of how bad things are with the cajas, consider that in February 2011 the Spanish Government implemented legislation demanding all Spanish banks have equity equal to 8% of their “risk-weighted assets.” Those banks that failed to meet this requirement had to either merge with larger banks or face partial nationalization. 

The deadline for meeting this capital request was September 2011. Between February 2011 and September 2011, the number of cajas has in Spain has dropped from 45 to 17.  Put other way, over 60% of cajas could not meet the capital requirements of having equity equal to just 8% of their risk-weighted assets. As a result, 28 toxic caja balance sheets have been merged with other (likely equally troubled) banks or have been shifted onto the public’s balance sheet via partial nationalization. On that note, I fully believe the EU in its current form is in its final chapters. 

European Financial Institutions, EUFN, as well Global Financial Institutions, IXG, such as STD, BBVA, IRE, LYG, RBS, and DB are over-leveraged and under-capitalized as a result of  three economic realities.  First, 41 years (2012-1971) of neoliberal finance, carry trade lending, and world central banks’ expansionary monetary policies such ZIRP, QE1, QE2, Dollar FX Swaps, Operation Twist, LTRO1 and LTRO2; second, a lack of a free market economy based upon an objective standard for the value of money as well as socialist labor market policies, which in Europe, mandate national wage laws, large numbers of state workers such as teachers, and in Greece the constitutional right to state employment; and third, in Greece, the reality of only socialist and communist political parties, which actually translates into a fascist state.        
 
Some investment sectors, JKE, XRT, XBI, PKB,  have risen back near to their recent highs on risk on, risk off, that is roro, momentum investing. And others such IYR, ITB, REZ, have gone on to new highs.
 
Yet nevertheless, the global government debt trade, that is world government bonds, BWX, emerging market bonds, EMB, as well as world stocks, VT, and commodities, DBC, have experienced a topping out and downturn beginning in 2012 and running through April 27, 2012, being led lower by India Infrastructure, INXX, World Financial Institutions, IXG, Energy, WCAT, IEZ, OIH, XOP, PSCE, Copper Mining, COPX, Aluminum Production, ALUM, Rare Earth Mining, REMX, Uranium Mining, URA, Coal Mining, KOL, and Small Cap Pure Value, RZV.
 
It has been the National Bank of Greece, Italy Banks, Spanish Banks, STD, BBVA, Artentina Banks, BMA, GGAL, BFR, India Banks, ITUB, and Brazil Bnks, IBN, that have seen the greatest disinvestment. Thus outside of Europe, VGK, the BRICS, EEB, and the Emerging Markets, EEM, are the global stock investment loss leaders.  
 
Because of Basel III requirements for greater capital beginning in late June 2012, as well as a soon coming financial marketplace downturn, coming through the likelihood of banking and sovereign rating agency downgrades, global investment financial institutions, IXG, will be pulling out of investment banking all together, and will be integrated into government, and will become known as Government Banks, or Gov Banks for short. For example Credit Suisse, CS, will be known as the Swiss Government Bank, and Deutsche Bank, DB, known as the German Government Bank and Banco Santender, STD, the Spanish Bank. The insolvent sovereign banks are going to nationalized. All European Financial Institutions, EUFN, are subordinate to the ECB; these will be all be regionalized and the ECB will be known as Europe’s Bank. The soon coming Financial Armageddon, that is a credit bust and financial system breakdown, will result in the implosion of European Financial Institutions, EUFN, and World Financial Institutions, IXG, which will terminate investment banking and lending activities as they have been known.
 
In the Euro zone, there will be no risk investing and credit will come as a decision made by monetary cardinals (bankers, industry and government officials) acting under the authority of the EU monetary pope. Public private partnerships, led by organizations such as Global Infrastructure Partners, and Macquarie Infrastructure Company LLC, MIC, will manage Euro zone economic activity, coordinate resources and oversee manufacturing production as the diktat money system comes to replace the fiat money system.    
 
Of note, Macquarie Infrastructure Company, LLC, is a roro momentum-investment stock; this being seen in its PE of 58 and YDT performance of 24%. It is positioned as a US Infrastructure, PKB, stock; trading 3% under its recent high. It is an example of neo liberal finaced, particularly LTRO1 and LTRO2 financed investment for Europeans seeking safe haven investment. When the downturn does come it will not be exempt from global deleveraging and derisking.         
 
A strong stock market sell off will result in the world financial institutions, IXG, shedding trading activity and laying off their myriad investment banking staff.
 
Please consider there will never, ever be, a true market anything; rather there will be a diktat market everything.  Sound Austrian economic principles will not be applied to fix the mess the policies of economist Milton Friedman and Fed Chairman Alan Greenspan fathered, all of which are based upon the expansionist and interventionist principles of British economist John Maynard Keynes.   
 
There will never be a realistic price for risk and credit, as the world financial system is going off a roro cliff, that is a risk on, risk off, investment cliff, into global financial, monetary and credit collapse.
 
Currently banks do not want stockholder dilution that comes with rasing equity.
 
LTRO1 and LTRO2 have not increased lending at Spanish and Italy banks. Neoliberal finance has failed to make banks or nations solvent, neo liberal finance is failing to preserve economic stability and failing to stimulate economic growth.  
 
There will be no breakup of the Euro zone. Rather, out of chaos, leaders will meet in summits, waive national sovereignty, pool regional sovereignty, and announce regional framework agreements, which regionalize the EU. Regionalization, specifically the establishment of European regional global governance, is coming as the dynamos of regional security, stability, and sustainability power up, and the dynamos of growth and profit wind down.
 
The Milton Friedman Free To Choose Script is history. The 1972 to 1976 Clarion Call of the 300 elite of the Club of Rome for regional global governance, embodied in such publications as Mankind At The Turning Point, is being heard, heeded and trumpeted by European Federalists such as Angela Merkel, a recipient of the coveted Charlemagne’s Prize.
 
A type of revived roman empire is rising in Europe, and Germany will emerge as preeminent over the vassal peripheral states of Portugal, Italy, Greece, and Spain.  A New Charlemagne, Europe’s Sovereign, foretold in bible prophecy of Revelation 13: 5-10, and his banking partner, Europe’s Seignior, Revelation 13:11-18, will rule a totalitarian collective. People will see the authority of sovereign leaders and sovereign bodies, such as the ECB as unchallengeable, and come to place their confidence in these, as their word, will and way becomes the law of the land, Revelation 13:3-4.  
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Global Economic Analysis Through The Lens Of Bible Prophecy

April 28, 2012

Have you ever given any reflection to the thought presented in 2 Peter 1: 1-21, that you are not following some kind of cunningly devised tale passed on from generation to generation, that you indeed and in truth, the elect of God?  That is to say, that God in eternity past, looking down the hallways of time, chose one to believe in Him, and that as his Beloved, one would come forth calling on His name for salvation, at a time and place of His choosing.  God appoints one to believe, and is a rewarder of those that earnestly seek Him. His selection of the believer has nothing to do with any merit or decision on one’s part.  If this is what you believe then you  are on the right page, that is to say, you are of the like precious faith of Jesus Christ.

As for part of your consideration of the Present Truth revealed by the Apostles, that is the sent ones, please consider that the lens of bible prophecy provided by the dream of the Apostle John, and not Austrian economic theory of Mises, Hayek, and Rothbard, provides the best lens to view unfolding global economic and political activity.

Since 2008, the economic recovery and growth of global trade and corporate profit has been a function of government spending as well as the expansionary monetary policies of the world central banks such as QE1, QE2, Operation Twist, Dollar FX Swaps, LTRO1, and LTRO2.

Mark Grant, author of Out of the Box writes in Zero Hedge Leaving Ponzi In The Dust. The European Central Bank prints money and hands it to the banks in undiminished size and at an interest rate which compels massive carry trades. The European banks buy sovereign debt that helps to lower the price of the sovereign’s funding costs, the banks use some of the money to increase their own capital and lend some of the money to individuals and corporations in the nations where they are domiciled. The money gets used and eventually dries up and a some of the capital is used to come into compliance with Basel III. The yields of the periphery nations fall but then begin to rise again. Germany, using Target-2, keeps lending money to the other central banks which use part of the money to support their currency, the Euro. The circle is then completed and the equity markets, notably in America, trade off of the strength of the Euro and some days at almost a point by point movement. Never before in the history of the world has such a grand scheme been implemented and in such an all-encompassing fashion. The unlimited amount of money that is available, because they can print all the money they want, has allowed Europe to game the world’s financial system while no one looked or caught on to the scheme. The world’s fiscal system has been rigged by Europe.

God’s hand of fate is not moving in the Austrian economic theory that presents democratic sovereign nations with their own individual currencies, such as a Spanish Paceta, or Greek Drachma,  or German D Mark, will emerge out of economic dislocations cause by austerity cuts and excessive socialist government spending.

But rather, the Sovereign Lord God is working fatefully, Revelation 6:1-2, to  drive global economic activity off a “risk on”, “risk off”, cliff into regionalization, as the capitalist dynamo of growth and profit achieved through the Free To Choose floating currency system, financial deregulation, Wall Street securitization, and global hedge fund and institutional speculation, shifts to the regional economic governance dynamo of security, stability, and sustainability, which will be achieved through announcement of regional framework agreements, where diktat not choice, rules as investment capital is replaced by political capital.

The Milton Friedman Free To Choose script that has governed global economic expansion since the world went off the gold standard in 1971, failed in February 2012, when World Government Treasury Bonds, BWX, traded lower, and failed again in March 2012, when Commodities, DBC, traded lower, and then failed again in early April 2012, when World Stocks, VT, traded lower.

The correct lens to view global economic events is not based upon the Austrian economic theory of the sovereign individual, sovereign nation states, and a free market economy, based upon an objective standard for the value of money.

But rather please consider that the correct lens to view global economic events is based upon the sovereignty of God who provides the Revelation of Jesus Christ, written by John The Revelator, which came via a dream given to him by angels while he was in his 90s living in exile on the Isle of Patmos.   The very things that he said “must shortly come to pass”, Revelation 1:1, meaning those things which today are rapidly driving Europe and the world off of a “risk on”, risk off”, global cliff and into the abyss of Financial Armageddon, Revelation 13:3-4, that is a credit bust and financial system collapse, whereby the fiat money system cracks and is replaced by the diktat money system.

In Europe, credit will come via regional monetary authority which is overseen by a Monetary Pope who implements public private partnerships for management of resources and production as well as oversees structural reforms which eliminate national wage laws; where regional finance comes via regional banks such as the ECB and the Bundesbank overseen by a Seignior, Revelation 13:11-18; where fiscal authority comes via regional fiscal union with austerity measures overseen by a Budget Commissioner; and where political authority comes via a Sovereign, Revelation 13:5-10. All of this achieved as leaders meet in summits to renounce and waive national sovereignty and pool sovereignty regionally. Seigniorage, that is moneyness, will no longer come via anticipation of world central bank monetary operations, but rather seigniorage will come via diktat of sovereign leaders and sovereign bodies such as the ECB.

In the New Europe, Germany will rise to be preeminent in a type of revived Roman Empire, over vassal periphery states.  The most capable of governors are waiting in the wings; soon fate will open the curtains, and onto the Euro zone’s stage will step Europe’s Sovereign, perhaps Herman van Rompuy, and Europe’s Seignior, perhaps Olli Rehn or Jenz Weidman.

The vision provided by the Apostle John in Revelation 13:1-4, presents a Beast regime of Neoauthoritarianism rising from the profligate nations of Greece and Italy to rule globally, with seven heads symbolic of mankind’s seven institutions and ten horns symbolic of the world’s ten regions to replace the Capitalist regime of Neoliberalism.

The Apostle’s dream is confirmed by the Prophet Daniel’s vision of a ten toed kingdom of regional global governance, comprised of toes of iron diktat and clay democracy, Daniel 2:31-33, which flows out of the failure of the iron rule of British and American global hegemony that has governed the world since the late 1700s.

The chart of Volatility, TVIX, shows a fall near to a new weekly low this last week, as the Roro trade, that is the risk on risk off trade, produced stellar results for those who continued the all in strategy that developed in late 2011 and early 2012.

Institutional investors and hedge fund managers continued momentum investing to take US Safehaven Assets, VTI, such as the NASDAQ, QQQ, Biotechnology, XBI, Semiconductors, XSD, Large Cap Growth, JKE, US Infrastructure, PKB, Homebuilding ITB, Shopping Center REITS, SPG, TCO, Industrial Office REITS, FNIO, EGP, EXR, SSS, Residential REITS, REZ, ESS, AVB, Hoteil REIT, RLJ, to new highs.

The Roro trade was so strong that it pulled the small cap pure value shares, RZV, strongly higher, and the major world currencies, DBV, and the emerging market currencies, CEW, higher, which pulled bonds across the board, BND, higher. Currencies rising this week included FXY, 1.5%, FXC, 1.1%, FXB, 0.8%, FXA, 1.0%, SZR, 0.7%, FXF, 0.2%, FXE, 0.2%. Currencies trading lower this week included INR, 0.8%, FXM, 0.8%, FXS, 0.3%, FXRU, 0.2%.

The parabolic rise seen in monthly chart of Liquidity Services, as well as the three white soldiers advance seen in the daily chart of Liquidity Services evidences neo liberal financed roro momentum investing. 

Most of the stocks that rose the most this week were high beta stocks, that is to say, they move quickly up and down.

Small Cap Pure Value Shares, RZV, such as SBAC, seen in this Finviz Screener, rose.

Internet Retailers, AMZN, EBAY, and PCLN, rose.

Small Cap Technology Shares, PSCT, such as FEIC, seen in this Finviz Screener, rose.

Credit Services, such as CGA, NICK, and AXP, seen in this Finviz Screener, rose.

Long Distance Services such as PTGI, VZ, T rose.

Farm and Equipment Manufacturer, TSCO.

Small Cap Industrial Stocks, PSCI, such as DXPE, SXI, TTC, SNA, seen in this Finviz Screener, rose.

Aerospace Companies such as BEAV rose.

Cigarette Manufacturers, such as MO, seen in this Finviz Screener, rose.

Retailers, XRT, such as CPWM, seen in this Finviz Screener, rose.

Restaurants such as CMG rose.

Electric Utilities such as NEE, DTE and HE rose.

Vehicle Part Manufacturers such TWI, seen in this Finviz Screener, rose.

US Infrastructure, PKB, such as APOL, TREX, seen in this Finviz Screener, rose.

Waste Management company, AWX, and Home Furnishings company LZB rose.

Diversified Machinery manufacturers such as THR rose.

Large Cap Stocks, JKE, such as ISRG rose.

Semiconductors, XSD, such as TSM rose.

Biotechnology, XBI, such as AMGN rose.

Regional banks, KRE, such as RF, seen in this Finviz Screener,  rose.

I expect these bear market ETFs, EEV, SJH, TWM, FXP, SSG, BIS, SIJ, REW, TLL, to soon be fast risers.

When the Roro trade collapses, the only money good, will be personal possession of gold bullion and silver bullion used for bartering.

In today’s news

Clara Weiss relates in WSWS Russia prepares for a US-Israeli military strike against Iran. Russia has undertaken intensive preparations during the past few months for a possible military strike by Israel and the United States on Iran.

I comment that one of the most widely written on subjects in bible prophecy is the Ezekiel 38 War; and I have covered it many times as in article The Conflagration Of The Coming War Between Israel And Iran, Syria, Lebanon And Turkey Will Be Intense Beyond All Past Wars.

Perhaps one might enjoy the Sign Posts Of The Times article Iran preparing for “The last six months”.

The short URL for today’s article Global Economic Analysis Through The Lens Of Bible Prophecy is http://tinyurl.com/77fuktq

Spain Suffers Sovereign, Economic And Fiscal Breakdown

April 27, 2012

Financial market report for the week ending April 27, 2012; the fourth weekly report of entrance into the Second Great Depression.  

Capitalism, money and credit suffered a fatal blow this month as world stocks, VT, and Commodities, DBC, traded lower. All confidence in the financial solvency of Spain was lost this week. The fiscal spending of Spain is now funded entirely through the ECB or its proxies. The European Sovereign debt crisis has gone viral. 

With its downgrade, Spain suffered a sovereign implosion this week. It is no longer a sovereign nation state; rather it is a vassal state, that is a client state; its people, like those in Greece are no longer citizens, rather they are residents living in a region of global of global governance. The Spanish and Greeks, are not and cannot be Germans, yet all reside in a regional gulag of debt servitude.   

Wolf Richter of Testosterone Pit writes Collapse of the EU is a realistic scenario.

Ty Andros writes An underwater earthquake has occurred in Spain and is quite possibly occurring now in Italy. Killer waves are now headed directly at the central banks and financial systems throughout the developed world and at Europe in Particular. How long until they hit and do the financial equivalent of Japan’s recent tsunami? Socialist bureaucrats and progressives on both sides of the Atlantic are locked in death struggles with Mother Nature. They will lose.

Homebuilders, ITB, US Infrastructure, PKB, Pharmaceuticals, XPH, IHE, and Biotechnology, XBI, led US , VTI, European, VGK, and Asian, EPP shares higher this week.

Small Cap Pure Value, RZV, Large Cap Growth, JKE, European Financials, EUFN, Semiconductors, XSD, Steel, SLX, Retail, XRT, Small Cap Consumer Discretionary, PSCD, Residential REITS, REZ, Industrial Office REITS, FNIO, General REITS, RWR, Paper Manufacturers, WOOD, Networking, IGN, Consumer Services, IYC, Telecom, TGEM, Automobiles, VROM, Cars, CARZ, and Dividend Payers, DVY, rose strongly.

Countries rising strongly included, EPHE, GERJ, ENZL, and THD.

Money poured into the large cap stocks this week such as AAPL, AMGN, AMZN, BA, T, LEN, LOW, HD, TSM, and the creditors MA, V, DFS, and AXP. This surge of investment capital took large cap growth, JKE, and consumer discretionary, IYC, to new highs. 

The dramatic rise in stock values this week is entirely due to the final tulip mania of  a global speculative leveraged investment community underwritten by liquidity of neoliberal finance. This week’s rise reflects that the Institutional Investors and Hedge Funds have gone all in despite the news in Argentina, Brazil, and India, as well as the news in of Spain’s implosion, thus continuing the all in trend of the first quarter 2012. 

The chart of Hecla Mining, HL, shows a rise of 6% this week; GDXJ, rose 6%, GDX, 4%, and SIL 4%.

The stock surge was so strong that it took, small cap pure value shares higher, RZV, which took major world currencies,  DBV, and emerging market currencies, CEW, higher, and the US Dollar, $USD, UUP, lower.  

Yet despite this week’s rise in currencies, debt deflation, that is currency is underway in the emerging market currencies stemming from a failure of the world central banks’ monetary authority to stimulate global growth and trade, as well an increased taxes in India, an over use of credit in Brazil, and an expropriation of an Spanish oil company in Argentina.  Clearly the failure of neo liberal credit and finance has commenced competitive currency devaluation.

This week’s rise in Emerging Market Currencies, CEW, and Major Market Currencies, DBV, drove Total Bonds, BND, rose to a new high, which took the Steepner ETF, STPP, traded to a new low, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, traded lower. The Interest Rate on the US Ten Year Note, ^TNX, traded down to 1.93%.

The chart of Volatility, TVIX,  shows that it fell to a new low. Nevertheless the fact that weekly charts show that World Stocks, VT, fell lower in April being led so by the Argentina, ARGT, the BRICS, EEB, the Emerging Markets, EEM, Global Materials and Mining, MXI, Coal, KOL, Copper, COPX, Aluminum, ALUM, Rare Earth, REMX, World Financials, IXG,  India Earnings, EPI, Brazil Financials, BRAF, and most strongly by commodities, DBC, in March, documents that capitalism has died on the failure of seigniorage, that is the moneyness, of money and credit. 

The fiat money system has died on the inability of the world central banks’ monetary authority to sustain economic growth and trade, as well as inability to sustain  corporate profitability, and now the sovereign implosion of Spain.

Open Europe reports S&P downgrades Spain’s credit rating by two notches; IMF: Spanish banks may need more public money. Standard & Poor’s downgraded Spain’s credit rating by two notches yesterday, following data from the Spanish central bank, which showed that the country has entered recession. Meanwhile, the conclusions of a new IMF report due for publication in June have warned that “greater reliance on public funding may be needed” to complete the restructuring of Spanish banks. Meanwhile, Spain’s two largest banks, Santander and BBVA, have warned that they will have to slow down their purchases of Spanish bonds, as their exposure to Spanish debt has already attained considerable levels. EUobserver 2 Il Sole 24 Ore Repubblica Cinco Días Times FT FT 2 FT Alphaville CityAM WSJ WSJ 2 Guardian Le Monde Les Echos Bloomberg FT 3 CityAM 2 FT 4

Alejandro Lopez writes in WSWS Spanish Government Proceeds With The Destruction Of Health Care and Education.

(I comment that European Socialism, which came by the introduction of the Euro, died with the announcement by Spain of austerity cuts as well as restrictions of political dissent.  Socialism in Europe could never had taken the course that it did if it were not for the regional currency. The rise in the value of the Euro and its associated rise in sovereign debt, regional debt, banking debt, Cajas debt, as well as speculation in housing, underwrote GDP, jobs, and public employment in Spain, such as the “temporary teacher” jobs the author wrote about. The austerity measures, that is the social and education cuts, as well as the political limitations on dissent being introduced, suggests that the socialist way in Spain is history, and that the nation is best described as a totalitarian collective and no longer a democratic nation, all on the failure of Neoliberalism to sustain sovereign debt.

With Spanish sovereign debt trading at 6%, and today’s downgrade of Spain’s sovereign debt; and the tremendous downfall in value of BBVA and STD, which are highly leveraged banks,  government spending in Spain is fiscally unsustainable.  Spain is an insolvent sovereign and its banks are insolvent financial institutions. The April 25, 25th WSWS report, communicates that Spain is no longer governing as a democracy. The marketplace is communicating that Spain’s banks are no longer safe financial institutions. Investors are no longer willing to underwrite Spanish government or Spanish banking activities. Spain has lost its debt sovereignty, and is no longer a sovereign nation state; whatever fiscal spending exists will be coming from the ECB and not from the global government Treasury market place.

Spain is a vassal state in a fiscal union established by debt brakes affirmed by EU leaders; and Spain is a vassal state in a regional monetary union where the ECB’s monetary policies have established itself as a regional sovereign authority. The only thing that remains is for Euro zone leaders to announce regional framework agreements to establish a Federal political union for a fully coordinated region of global governance to emerge. Consent of the people will not be required. Spain’s fiscal spending cannot continue even at the reduced levels called for by the government. It is reasonable to expect a bank holiday and government holiday in Spain when Financial Armageddon comes. There will be no Spanish Pesos, no German D Marks, no Greek Drachmas. The fiat money system is history. It is reasonable to believe from the WSWS report that the diktat money system is rising, where diktat will serve as both credit and money. The Austrian Economics dream of a free market economy, one based on a standard that cannot be easily manipulated, is not going to happen. The diktat economy with monetary cardinals acting under a monetary pope and a budget commissioner is the EU’s future. European financial institutions will be merged into the government and be known as the Government Bank or Gov Bank for short.)

Reuters  reports Govt debt woes bigger pain for Italy’s banks than Spain’s

Mike Mish Shedlock Bernanke Calls Krugman “Reckless”. Paul Krugman is now so far into outer space with ridiculous economic proposals that even Helicopter Ben Bernanke recognizes Krugman’s proposals as “reckless”.

Mike Mish Shedlock report Eurozone retail sales plunge at strongest pace since late 2008.

Mike Mish Shedlock writes Greece to Seize Money From Suspected Tax Evaders’ Accounts, with Charges and Trials Later; More Capital Flight Coming Up

Mike Mish Shedlock reports Depression in Spain: Unemployment Rate Up .5 Percentage Points to 23.6%; Expect Much Higher Rates Later This Year; When is the Breaking Point?. Spanish politicians (for now) remain insanely committed to the Euro. How long the citizens remain committed to the Eurozone is another matter. When is the Breaking Point? Will the general population of Spain put up with an unemployment rate of 28%? 30%? I think not, but I do not know the precise breaking point. Whatever it is, Spain has little chance for growth prospects for a decade as long as it remains in the eurozone. Eventually will come a time when a politician will hold up a copy of the EMU treaty, declare it null and void, and the debt null and void right along with it. That politician will be elected.

(I comment that indeed a breaking point is coming; it is called Financial Armageddon, where a credit bust and global financial breakdown, will rip asunder all current forms of national sovereignty and national governments and be the genesis event for regional global governance. This is seen in bible prophecy o Revelation 13:3-4 which communicates that the people will stand amazed of the power of the Beast Regime and follow after it giving it their full allegiance and support even to the degree that they worship it)

Mr Shedlock concludes his thoughts relating Spain will be better off as soon as that happens.

(I comment that God is not concerned about Spain being better off. The apostle John is given the honor of being named John The Revelator, for having written a dream given to him, that being The Revelation of Jesus Christ.  God is no respecter of persons; he is sovereign over all time, space, events, nations and people, and is carrying out His plan of the destruction of all existing forms of political and economic life. This plan was conceived in eternity past, so that the Millennial Kingdom of Jesus Christ, can soon be established in Jerusalem.  The apostle John begins his book by relating those things which “must shortly come to pass”, Revelation 1:1,  meaning that once they start to occur, they fall rapidly in place, like line dominoes that topple one upon another, once the first falls. )

(I comment that it was the expansionary and interventionist policies of John Maynard Keynes that set the backdrop for other pernicious ideas beginning in the 1950s, that has created the Banker and Crony Capitalism Regime of Neoliberalism to be the terminal phase of capitalism.

The Beast Regime of Neoauthoritarianism is now rising as foretold in bible prophecy of Revelation 13:1-4, which is the same as the Ten Toed Kingdom Of Regional Global Governance seen in Daniel 2:31-33, to govern the world in totalitarian collectivism and statism.

 The perniscious ideas have included the magical intervention of the mischievous feline to clean up the house a second before the mother returns in Dr. Seuss’ The Cat in The Hat, cultural pluralism, positivism particularly economic positivism, the Milton Friedman floating currency regime, the repeal of the Glass Steagall Act, the establishment of Philips Exeter Academy and Yale University, as so called learning institutions, the acceptance of derivatives of all types, as well as the growth of moral hazard through neoliberal finance to rise to underwrite crony capitalism and UK US Global Hegemony.)

Mark J. Grant, Author of Out of the Box writes in Zero Hedge Thirteen Years Later. There have been many grand experiments in social engineering during the past several centuries. We have witnessed the American Revolution, the French Revolution, the American Civil War, Communism and finally 1999 and the founding of the European Union.

It is an interesting exercise to consider the long view as I have wondered what the world looked like in 1789 which was thirteen years after the commencement of the American experiment.

It is also interesting to note, when comparing the two restructurings of society, that the new construct in the United States was founded upon assuming our own destiny and throwing off the yoke of the British Empire which was a common bond for the individual states which was not present and is not present, except in a curious twist, for the Europeans to cling to in times of significant decision.  

(I comment that America never had its own destiny; it was destined by God to exist in global iron rule over the rule with the UK up until its power is greatly reduced by a global Eurasia War, the Ezekiel 38 war, and the soon coming Financial Armageddon seen in Revelation 13:3-4)

The “curious twist” is Germany which is seeking to dominate Europe through its economic prowess which would have been like Virginia or New York trying to dominate the United States in its infancy which was not possible due to the construct of a Senate and a Congress and a George Washington who rejected being the King.

(I comment that the regionalization of Europe will see Germany rise to be preeminent in every way, militarily, politically, economically, ruling over vassal states in a type of Revived Roman Empire.  Destiny, Revelation 2:26-27, and 2 Corinthians 5:17-18, Revelation 6:1-2, not any human action, drives all the events of history. There is waiting in the wings of Europe’s stage, the most credible of sovereigns, one of seeming little authority, the Little Horn, Daniel 7:8, Revelation 13; 5-10. Soon fate will open the curtains, and he will step into the political and economic limelight. He will be accompanied in rise to power by a banker, Revelation 13:11-18.  This sovereign will play the lead role in brokering a future middle east peace plan, Daniel 9:25-27,  which comes after the global Eurasia War, the Ezekiel 38 War.)

Unfortunately, the Europeans did not have an Adams, Hamilton or Jefferson to help guide the process, this is my opinion, and so the paradigm for Europe is so flawed in structure that in times of stress, such as the current recession in most of Europe; the structure itself may defeat the cause. What we are witnessing now in Europe is then a serious pushback against Germany and its policies, the rise of Nationalism coupled with real anger against the German interventions and a German economy which will certainly go into decline as affected by its neighbors and trading partners which will exacerbate Germany’s internal issues I submit before the end of this year.

(I comment perhaps Herman van Rompuy or Olli Rehn will rise to guide the New Europe in regional global governance).

Tomorrow, April 28, commemorates the date of the Mutiny on the Bounty in 1789 which, curiously enough, was the British Navy throwing off the shackles of the absolute power of a Naval Captain and an event which ultimately changed the British laws at sea. The year 1789 was also earmarked with 25% of the people in Paris being without work and the date of July 14, 1789 which was the storming of the Bastille and the beginning of the French Revolution.

In America, thirteen years after our founding, George Washington was elected President and the first Congress and Senates began and the proposal for a “Bill of Rights” was approved. Finally, in 1789, American established our Judiciary which was another ground breaking act for our fledgling country. It seems then historically that thirteen years after America began we were in a process of formation and working towards national goals as a coalition of individual States while we find the European Union, thirteen years after its inception, following quite a different route. (I comment that the route for Europe is the 1972 to 1976 Club of Rome Clarion Call for regional global governance in documents such as Mankind At The Turning Point).

In times of great stress I have often noticed that ridiculous comments get made and the more the stress; the more delusionary the statements. Let us then examine a few comments made today.

“The EU fiscal pact cannot be re-negotiated.” German Chancellor Merkel

Who is kidding whom? Of course it can be renegotiated and any time enough nations decide to change it. The fiscal pact can be thrown out, amended, or burned at the stake when enough nations in Europe do not wish to pursue its goals and governance by German fiat is not yet operative except in the minds of the German politicians it appears.

“Mortgages get paid in good times and in bad. Anyone raising this problem as one of the issues
for the Spanish financial system is saying something stupid.”  Banco Santander SA Chief Executive Officer Alfredo Saenz

This fellow is living way out beyond the edge in the land make-believe. America has just experienced this during the last four years and we know exactly what happens when in a financial crisis and when the reign of foolish money ends. It is my opinion but the Spanish proclamations of only a 3.00% mortgage delinquency rate in their country is nothing more than grand rush into the land of attacking windmills. It may well be that the banks do not wish to recognize the delinquent loans or that they have packaged them into massive securitizations and pledged them as collateral at the ECB who also does not wish to recognize any losses but with an unemployment rate at 24.4% now which will cause a further economic contraction, according to official figures, of $1.3 billion; the official mortgage delinquency rate is just a preposterous claim.

 “Nobody has asked Spain, either officially or unofficially to turn to Europe’s bailout mechanisms. We don’t need it.” Spanish Finance Minister de Guindos

S&P just downgraded the country to BBB+; down two notches. It is not just the horrid unemployment numbers but the severe contraction in the economy and a Real Estate market that is down 25% and projected to head down another 20-25% that would make any rational person realize that Spain will soon be forced to seek outside help. A clear reading of Spain’s financials cannot lead to any other conclusion. They have come up with a plan to liquidate the banks’ Real Estate positions to outside, private companies. That much is fine except when they see what private companies wish to pay I predict that the retching will commence in Madrid. This exercise will also force the Spanish banks to take actual losses so that the balance sheets of the banks in Spain will begin to look like ground chorizo when/if this plan is implemented. In my view now; there is just no other way out except some sort of rebellion.

Reversals are curious things. Everything is just fine right up until the day when it is not. On October 9, 2007 the Dow Jones Index stood at 1464.53 and then it bottomed on March 9, 2009 at 6547.05 which was a 54% decline. On 10/9/07 CNN reported, “Stocks rallied Tuesday, sending the Dow and S&P 500 to all-time highs as investors breathed a sigh of relief that the minutes from the last Fed meeting supported hopes for another interest rate cut by the end of the year.” The decline began gradually enough and then strengthened with America’s economic contraction, the Bear Stearns buy-out and then the fall of Lehman Brothers. Any notion of what is going on in Europe will not affect America is just as silly as Germany supposing that they will be immune from the effects of the recession in Europe. That is not the way the world works and that will be proven again shortly. May 6 may mark the date when the sleeper finally awakens as Greece and France may both vote in such a manner as to significantly change the political landscape on the Continent. I submit that we are quickly coming to a major reversal in both equities and in credit/risk assets and that instead of being aggravated that it took so long that you should be thankful that you had the luxury of time to prepare for it.

“That was a memorable day to me, for it made great changes in me. But, it is the same with any life. Imagine one selected day struck out of it, and think how different its course would have been. Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation of the first link on one memorable day.”  Charles Dickens, Great Expectations

Please consider bible prophecy of Revelation 6:1-2, which shows that Jesus Christ has opened the Book of the Seven Seals, and has unleashed the rider on the white horse, with a bow, but without any  arrows, signifying a global political and economic coup d etat, where the baton of sovereignty is  passing from sovereign nation states to sovereign leaders and sovereign bodies such as the ECB, in regions of global governance.

And please consider bible prophecy of Revelation 13:1-4, where the Beast Regime of Regional Global Governance is rising from the profligate Mediterranean nation states of Italy and Greece to replace the Capitalism Regime of Neoliberalism, as Financial Armageddon, that is a credit bust and financial system breakdown arises, Revelation 13:3-4, with diktat serving as regional monetary authority and regional fiscal authority — diktat will serve as both money and credit in a New Europe.

The Failure Of Keynesian Policies Is Introducing Regional Global Governance

April 27, 2012

The Failure Of Keynesian Policies Is Introducing Regional Global Governance

UK Bubble Economy writes Keynesian policies always fail. The twentieth century produced many pernicious ideas. Keynesian economics may be the worst, but its capacity to misled governments remains potent.

It was the expansionary and interventionist policies of John Maynard Keynes that set the backdrop for other pernicious ideas that mislead society in every way beginning in the 1950s,  such as the magical intervention of the mischievous feline to clean up the house a second before the mother returns in Dr. Seuss’ The Cat in The Hat, cultural pluralism, positivism particularly economic positivism, the Milton Friedman floating currency regime, the repeal of the Glass Steagall Act, the acceptance of derivatives of all types , as well as the growth of moral hazard through neoliberal finance to rise to underwrite capitalism and UK US Hegemony, to create the Banker Regime of Neoliberalism as the terminal phase of capitalism.

The collapse of the iron global iron rule of the UK US Hegemony that has ruled the world since 1789  is foretold in bible prophecy of Daniel 2:31-33, where a ten toed kingdom of regional global governance, with its toes of iron diktat and clay democracy, comes to rule the world.

The transition comes from a global economic collapse where the Beast Regime of Neoauthoritarianism rises to govern mankind’s economic and political activities as seen in Revelation 13:1-4.

Soon out of Financial Armageddon, that is a credit collapse and global financial breakdown, leaders will meet in summit and announce regional framework agreements which waive national sovereignty and pool sovereignty regionally. Through regionalization, as called for by the 300 elite of the Club of Rome during 1972 to 1976, leaders will approve regional monetary authority and regional fiscal authority in the EU.

Out chaos will come order, leaders will announce the New Europe, that is a One Euro Government, and a One Euro Bank, where regional authorities, such as a monetary pope with public private partnerships overseeing the region’s economy, and a budget commissioner heading up a regional fiscal union, as the European nations have lost their debt sovereignty and failed to be fiscal sustainability.

The Telegraph editorialized Europeans Will Never Accept a Federal Banking System,  The latest crackpot idea for shoring up Europe’s monetary union, much discussed at last week’s spring meeting of the International Monetary Fund and now widely promoted by eurocrats, is the establishment of a federal banking system, with a single framework for regulation, bailouts, deposit insurance, supervision and resolution. Yet, most assuredly, out of chaos will come order, the New Europe with its One Euro Government and One Euro Bank.

Today’s Euro zone insolvent sovereigns, such as Greece and Spain are no longer fiscally sustainable, and are the powder keg that is going to cause investment implosion of the highly leveraged European Financial Institutions, EUFN, such as Germany’s DB and Spain’s BBVA and STD, and Greece’s NBG.

The dynamos of growth, trade, and profit that have been based upon choice and have powered capitalism are winding down, and the dynamos of regional security, stability and sustainability are powering up regional global government which will be based upon and exercise diktat.

With the death of capitalism, the fiat money system is dying. Credit and money as they have been experienced are expiring. The diktat money system will provide diktat as both credit and money. Regional global government in Europe will provide regional monetary policy and regional fiscal policy. Euroland is becoming a totalitarian collective, where the neo liberal credit that cannot be written off is applied to every man, woman and child in Europe.

The Leverage And The Size Of European Banks Increases The Likelihood Of Regional Integration Of All Banks

April 25, 2012

Financial Market Report for April 25, 2012

The 9% rise in Apple share makes for an excellent short selling entry point; as will as a short selling entry point in ISRG, and the ETFs XBI, PKB, QQQ, JKE, and also chemical manufacturers DOW, GRA, FMC, VAL today. 

The leverage and the size of European Financial Institution, EUFN, increases the likelihood of regional integration of all banks. Out of Sovereign Armageddon, a One Euro Bank and A One Euro Government, with Germany rising  to be preeminent, will be announced by leaders, as they meet in summits and affirm regional framework agreements, which waive  national sovereignty to pool sovereignty regionally. A monetary pope will provide diktat for credit, and a budget commissioner will establish diktat as money as the fiat money system is replaced by the diktat money system. 

This despite the fact that Tyler Durden writes is no longer any form of supporter of ally of Germany. The idea that somehow, pragmatic voices will stop this political groundswell is entirely misplaced: this destructive belief set has started to run its course. It is now in the Continental blood and the healthiness of economies over the pond is deteriorating fast

Such is the Clarion Call of the 300 Elite of Club of Rome as they met in 1972 to 1976 and proposed regional blocs, and regional global governance to deal with the issues of financial disintegration of capitalism when the dynamos of growth and profit would fail as investors divinest and deliver out of debt.  

Graham Summers writes in Zero Hedge The Bundesbank Is In Hot Water … Will It Take The Heat Or Throw The ECB Under The Bus?

The ECB has found its hands tied: if it continues to monetize aggressively, inflation will surge and Germany will either leave the Euro or at the very least make life very, very difficult for the ECB and those EU members asking for bailouts.

After all, doing this would score MAJOR political points for both Merkel and Weidmann who have both come under fire for revelations that the Bundesbank has in fact put Germany on the hook for over €2 trillion via various back-door deals.

Against this backdrop, it’s quite clear that the EU’s banking system remains under extreme duress. Case in point, European financials have in fact wiped out all of the gains produced by LTRO 2 in just one month’s time. Small wonder. When we take a big picture perspective of Europe, the entire banking system is a disaster waiting to happen.

Consider the following:

  1. According to the IMF, European banks as a whole are leveraged at 26 to 1 (this data point is based on reported loans… the real leverage levels are likely much, much higher.) These are a Lehman Brothers leverage levels.
  2. The European Banking system is over $46 trillion in size (nearly 3X total EU GDP).
  3. The European Central Bank’s (ECB) balance sheet is now nearly $4 trillion in size (larger than Germany’s economy and roughly 1/3 the size of the ENTIRE EU’s GDP). Aside from the inflationary and systemic risks this poses (the ECB is now leveraged at over 36 to 1).
  4. Over a quarter of the ECB’s balance sheet is PIIGS debt which the ECB will dump any and all losses from onto national Central Banks (read: Germany)

So we’re talking about a banking system that is nearly four times that of the US ($46 trillion vs. $12 trillion) with at least twice the amount of leverage (26 to 1 for the EU vs. 13 to 1 for the US), and a Central Bank that has stuffed its balance sheet with loads of garbage debts, giving it a leverage level of 36 to 1.

And all of this is occurring in a region of 17 different countries none of which have a great history of getting along… at a time when old political tensions are rapidly heating up.

As bad as the above points may be, they don’t even come close to describing the REAL situation in Europe. Case in point, regarding leverage levels, PIMCO’s Co-CIO Mohammad El-Erian (one of the most connected insiders in the financial elite) recently noted that French banks (not Greece or Spain) currently have 1-1.5% capital relative to their assets, putting them at leverage levels of nearly 100-to-1.

And that’s France we’re talking about: one of the alleged key backstops for the EU as a whole.

The Telegraph reports Angels Merkel affirms austerity measures relating current fiscal spending is unsustainable.  Angela Merkel launched a staunch defence of Europe’s fiscal pact as politicians from the Netherlands, Spain and Greece scrambled to keep their own austerity measures on track. In a rare concession, the German Chancellor admitted that austerity alone would not solve the crisis but she insisted that the wave of political opposition to fiscal discipline was wrong. “We’re not saying that saving solves all problems,” Ms Merkel said at a conference in Berlin. “[But] you can’t spend more than you take in. You can’t live your whole life this way. Everybody knows this.”

Stocks Have Fallen Lower In April On Exhaustion Of The World Central Banks’ Monetary Policy

April 24, 2012

Financial Market Report as of April 24, 2012

1) …  Capitalism died on the failure of credit and money in early April 2012.

Out of soon coming Financial Armageddon, regional global governance will rise as totalitarian collectivism is established by leader’s framework agreement to occupy in all of mankind’s seven institutions and in the world’s ten regions as called for by the  Club of Rome in 1972 to 1976 by such declarations as Mankind At The Turning Point.

An inquiring mind asks, can there be any doubt that money and credit have died? The chart of major world currencies, DBV, as well as the chart of emerging market currencies, CEW, have been trending lower since March 1, 2012. Debt deflation has come to both world government bonds, BWX, and emerging market bonds, EMB. With the result that volatility, TVIX, rose, and world stocks, VT, fell lower in April 2012, on exhaustion of the world central Banks’ monetary authority and policies; the following led stocks lower.

National Bank of Greece, NBG, and Spain’s Banco Santander, STD,  and Ireland’s Bank, IRE,  lede European Financials, EUFN, Spain, EWP, Italy, EWI, France, EWQ, and Germany, EWG, EWGJ, lower.
Carry trade financed Sweden, EWD, Austria, EWO, and Poland, EPOL, traded lower.
The Industrial Metal Manufacturers traded lower REMX, URA, COPX, ALUM,
Energy traded lower WCAT, PSCE, OIH, IEZ,
The global growth shares SLX, XSD, traded lower evidencing the end of global growth and trade.
Telecom, XTL, homebuilding ITB, US Infrastructure, PKB, traded lower on exhaustion of the safe  haven trade in US Stocks.
Argentina Banks BBVA, BFR,  BMA, GGAL, led Argentina, ARGT, lower.
UK area banks, RBS, LYG, led the UK  lower EWU.
Brazil Banks, BRAF, and India Banks, EPI, led the BRICS, EEB, RSX, EWZ, INDY, HAO, lower.
Failure of the seigniorage of Apple Ecosystem, as well as the failure of neoliberal finance to support Networking Stocks, IGN, SKYY, FONE.
Failure of the seigniorage of neo liberal finance turned Small Cap Pure Value RZV lower. The parabolic trade lower in these shares witnesses debt deflation, that is currency deflation and  is litmus test evidence of the failure of credit and money as they have been known.

The chart in Bespoke Investment Group article Consumer Confidence communicates to me that consumer confidence has entered an Elliott Wave 3 of 3 Down decline.

All forms of fiat wealth, stocks, VT, international government treasury bonds, BWX, junk bonds, JNK, commodities, DBC, major world currencies, DBV, emerging market currencies, CEW, are experiencing debt deflation.

The global government finance bubble that has underwritten capitalism when the world went off the gold standard and embraced the Milton Friedman Free To Choose script, has burst, and bank stocks, IXG, mining stocks, MXI, energy development stocks, OIH, IEZ, energy stocks, WCAT, PSCE, semiconductors, XSD, large cap growth stocks, JKE, are all now falling into the Pit of Financial Abandon.

A number of conventional electricity utilities, such as NEE, rose to new highs; as well as a number of REITS rose to new highs; these included Simon Property Group, SPG, which rose 25%, that is from 120 to 150 since the first of the year; the only reminder of the seigniorage, that is the moneyness of LTRO neo liberal finance.

Gold, in terms of currencies, started to stabilize and increase this week, suggesting the start of an investment demand for gold, as fears that the world central banks’ expansionary monetary policies have failed, and that wealth can only be preserved by investing in and taking possession of gold bullion.

2) … News of the day

Bloomberg reports Weidmann Says Bundesbank Is Preserving Euro Stability. Bundesbank President Jens Weidmann said the German central bank’s actions are aimed at maintaining the stable foundation of the euro and preventing an erosion of the single currency’s acceptance. “What we are doing is preserving the stability foundation of the single currency,” Weidmann said today in an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “If the stability foundation of the euro is eroded, then we will also see the acceptance of the single currency eroded.” The Bundesbank has faced criticism, including from billionaire George Soros, for speaking out against some European Central Bank crisis-fighting measures such as government bond purchases. Weidmann said Soros’s charge that the Bundesbank is preparing for the end of the euro is “ridiculous.” “We shouldn’t get so excited about bond yields rising for a limited period of time,” Weidmann said. “They also constitute an incentive to reform, to embark on consolidation.” The ECB, which has pumped more than 1 trillion euros ($1.3 trillion) into the banking sector since December in a bid to avert a credit crunch, has “done its job,” Weidmann said. Weidmann added that governments must now press on with budget cuts and structural reforms to encourage economic growth. “It’s important to get the message to governments, ‘this is your job now,’” Weidmann said. (Hat Tip to  Between The Hedges)

WSJ reports Running Mate Dance Begins. Mitt Romney worked to lock up the Republican presidential nomination in a Pennsylvania campaign swing Monday that also served a general-election purpose: debuting a potential running mate. The likely GOP nominee shared the stage in this Philadelphia suburb with Florida Sen. Marco Rubio, a 40-year-old Cuban-American conservative, as he focused his attention on the November matchup with President Barack Obama. (Hat Tip to Between The Hedges)

Mike Mish Shedlock writes Eurozone manufacturing PMI hits 34 month low

The California Beach Pundit relates The Argentine Way of Business.

Chris Marsden writes in WSWS Netherlands government falls over austerity budget. Dutch Prime Minister Mark Rutte resigned on Monday after his government failed to get backing for austerity measures agreed with the European Union.

Alex Lantier and Johannes Stern write in WSWS  Large neo-fascist vote shakes French presidential race. The large first-round vote for neo-fascist candidate Marine Le Pen has shaken the French presidential election, which continues towards the May 6 run-off between Socialist Party candidate François Hollande and incumbent President Nicolas Sarkozy.

There is something called the sinker; it goes on the fishing line near the hook and the bait.  It is placed there so that the presentation goes all the way down to the bottom where the deep and more substantial things live.

Please consider letting these words sink in … money and credit as they have traditionally be known are dead, they are history; and as a result the political and economic way of life of capitalism, that has existed since positivism and pluralism first commenced in the 1950s, with the Cat In The Hat, being taught in schools and libraries, is gone, finished, done and over.

Capitalism is dead, it is history, gone forever; regional global governance, with diktat being implied, as called for the Club or Rome in 1972 to 1976, is rising and will continue to rise to govern mankind’s economic and political activities.

Mike Mish Shedlock asks Does it Matter if Obama Beats Romney? Does it Matter if Hollande Beats Sarkozy? and presents the Austrian Economics position that “Many disagree with my supposition that a breakup of the Eurozone is going to happen regardless. No currency union in  history has ever survived in the absence of a political union, and it should now be clear that a political union is impossible.”

Graham Summers writes in Zero Hedge article Merkel Back Is Against The Wall … Time For Germany’s Plan B, In short, Germany has given the SoFFIN:

  1. €400 billion to be used as guarantees for German banks.
  2. €80 billion to be used for the recapitalization of German banks
  3. Legislation that would permit German banks to dump their euro-zone government bonds if needed.

That is correct. Any German bank, if it so chooses, will have the option to dump its EU sovereign bonds into the SoFFIN during a Crisis. So in simple terms, Germany has put a €480 billion firewall around its banks thereby allowing Germany to potentially pull out of the Euro if it has to.
Now, I’m not suggesting that Merkel will suddenly opt to do pull Germany out of the Euro. Doing that would only worsen EU relationship and arouse more anti-German sentiment.
However, I wouldn’t be surprised to see Merkel start threatening this in the coming weeks as German outrage grows regarding their exposure to back-door EU bailouts. Remember, her political popularity is largely due to her appearing tough on the PIIGS. She has to regain that appearance as quickly as possible in order not to face serious political consequences.
On that note, I fully believe the EU in its current form is in its final chapters. Whether it’s through Spain imploding or Germany ultimately pulling out of the Euro, we’ve now reached the point of no return: the problems facing the EU (Spain and Italy) are too large to be bailed out. There simply aren’t any funds or entities large enough to handle these issues.

For the longest time, Bible teachers such as Garner Ted Armstrong, have presented from Daniel 2:31-33, that a United States Of Europe, that is a One Euro Government and a One Euro Bank, led politically and economically by Germany, is coming as part of the ten toed kingdom, with toes of iron diktat and clay democracy, to replace the iron rule of UK and US Hegemony, that has ruled the world since the late 1700s.

Destiny, Revelation 2:26-27, and 2 Corinthians 5:17-18, Revelation 6:1-2, not any human action, drives all the events of history. There is waiting in the wings of Europe’s stage, the most credible of sovereigns, one of seeming little authority, the Little Horn, Daniel 7:8, Revelation 13; 5-10.

Soon fate will open the curtains, and he will step into the political and economic limelight. He will be accompanied in rise to power by a banker, Revelation 13:11-18.  This sovereign will play the lead role in brokering a future middle east peace plan, Daniel 9:25-27,  which comes after the global Eurasia War, the Ezekiel 38 War.

The sovereign’s rise to power will be characterized by working in regional framework agreements, Daniel 8:23, to change our times and laws, Daniel 7:25. He will be one who honors a god of military power, Daniel 11:38-39.

Inflationism is turning to destructionism on the failure of world central bank monetary authority, and failure of carry trade investing to stimulate global growth and global trade as Tyler Durden reports in Zero Hedge  G-10 Macro Data Plunges To Worst In Six Months, Turns Negative .

The dynamos that of growth and profit, that powered the paradigm of capitalism and European Socialism, are winding down; and the dynamos of regionalization, particularly the dynamos of regional security, stability, and sustainability are powering up the paradigm of regional global governance. As a result, the fiat money system is dying, and the diktat money system is rising where diktat will serve as both money and credit.  This is a fulfillment of bible prophecy of Revelation 13:1-4, where the Beast regime of Neoauthoritarianism, rises from the profligate Mediterranean nations of Greece and Italy, to rule in seven heads, symbolic of mankind’s seven institutions, and ten horns, symbolic of the world’s ten regions to replace the Banker regime of Neoliberalism that has governed the world.

Eventually a handful of derivative laden banks will play a large role in guiding regional global governnace as Business Insider relates How 9 Banks Are Exposed to $200 Trillion Worth of Derivatives.

3) … I ask who is my father?

I have many fathers. I am the product of these individuals. These have been my life mentors. I am who I am today, because of who these people are and what they have done, written and communicated. My life’s attitude, and my behavior and speech reflects things learned from these individuals.

I practice liberalism in the additive process of 2 Peter 1:1-10, where I as the elect of God, add virtue and love to the like precious faith of Jesus Christ. Carnal life is gradually diminishing and spiritual life in Christ and His attributes is gradually emerging, as I grow in knowledge, pray for and practice a good conscience that has come by petition to God and the mercy of God. By practicing a quiet life, minding my own business, and living in virtues, that is a set of moral excellencies, and interpersonal austerity of purity and holiness, I hope to attain to the personhood of Christ.

Father of Faith, Abraham

Father of the Churches, the Apostle Paul

Father of Liberalism, the Apostle Peter

Father of Spiritual Living and The Revelation of Jesus Christ, the Apostle John

Father Of Reformation and Father of Liberty, John Calvin; he set many free from Roman Catholicism. History Learning Site UK relates, In September 1541 Calvin returned to Geneva after the Libertines had fallen from power in 1540. It took Calvin 14 years before he could fully impose his version of liturgy, doctrine, organisation of the church and moral behaviour. Calvin’s services were plain and simple. He placed great importance on the sermon. His sermons were very logical and learned. Though he himself liked music, he distrusted its use in religious services believing that it distracted people from the matter in hand, the worship and the seeking knowledge of God. Musical instruments were banned from churches, though congregational singing was permitted and this proved to be both popular and an effective way of ‘spreading’ the message. All matters relating to worship came from the Scriptures, so psalms took the place of hymns in services.

Father of Grace and Election, John McArthur of the Grace To You Ministries, and Author of the John McArthur Study Bible.

Father of Restoration, Witness Lee, who has called for restoration of New Testament worship, doctrine, and one another living, for the church to be the perfect bride and life expression of Christ.

Father of Understanding Of English Language, A Native American English Professor who I met while living in a bed and breakfast in Sitka Alaska.

My understanding from 2 Peter 1:1-10, is that one is of the like precious faith of Jesus Christ and thus is elect, appointed, and chosen to partake of the Divine nature, or either, that one is an ethical person, or a poneros person, or some other fiat person, having experience in the death of Adam.

Liberalism of virtue in the like precious faith of Jesus Christ is not pluralism, that is the way of respect for diversity and alternative views, proposed by the Global Center For Pluralism; and pluralist authors Jack Reardon, Edward Fullbrook, John Groenewegen, and Mark Maier and Julie Nelson.  I recommend home schooling so that one’s child not be exposed to a pluralistic school system where values education is taught.

And liberalism of virtue in the like precious faith of Jesus Christ is not positivism as presented by positivist authors Barry Bazan and Richard Little in International Systems In World History.

Stocks, Currencies, Silver And Base Metals Tumble As Investor Angst Rises Over The French Election And The Failure Of Netherlands Government

April 23, 2012

Financial Market Report for April 23, 2012

Build America Bonds, BAB, and the US Dollar, $USD, UUP, rose as stocks, silver, currencies and base metals, tumbled, as investor angst over the French election, and the failure of Netherlands government, rose.

Continuing a trend since the first of the month, investors continued to head to the exit doors over concern that the periphery European nations such as Portugal, Italy, EWI, Greece, GREK, and Spain, EWP, and their banks such as STD and BBVA, are insolvent.  Investor angst is now effecting Germany, EWG, EWGJ, which led European shares, VGK, lower.

The National Bank of Greece, NBG, European Financials, EUFN, Chinese Financials, CHIX, and World Financials, IXG, led World Shares, VT, lower on the failure of the world central banks’ monetary authority to stimulate global growth. Zero Hedge reports Europe Slumps to 3-Month Lows as Spain Nears 2009 Lows.

Homebuilders, ITB, led US Shares, VTI, lower on the failure of the US Fed to continue its expansionary monetary policies.

Mining sectors URA, COPX, REMX, and mining stocks ACH, RIO, SLT, MCP, SCCO, traded lower on the failure of neo liberal finance to stimulate corporate growth and profit.

Airlines, FAA, and Shipping, SEA, led Transports, IYT, lower.  General Motors, GM, Nucor, NUE, Boeing, BA, Dow Chemical, DOW, Du Pont, DD, and International Business Machine, IBM, led Industrials, IYJ, lower

Carry trade currency countries, Sweden, India, INP, SCIF, Poland, EPOL, South Korea, EWY, SKOR, Taiwan, EWT, and Shanghai China, CAF, traded lower on diminished prospects of global trade.

And the failure of neo liberal finance is seen in Argentina’s banks, BMA, BBVA, GGAL, and BFR, trading lower, which turned Argentina, ARGT, lower.

All of the BRICS, EWZ, RSX, INDY, and YAO,  traded lower on falling Industrial, CHII, Mining, CHIM, and Banking, BRAF, EPI, CHIX, shares.  Brazil, Russia, India, are the BRIC loss leaders. Trading in Russian shares was suspended during the day.

And steel, SLX, and semiconductors, XSD, traded lower, on fears of diminished prospects of global trade.

Cloud Computing, SKYY, Networking, IGN, and Small Cap Technology, PSCT, stocks falling lower included NTGR, INAP, RHT.

Small Cap Industrial, PSCT, stock falling lower included FAST, TRS, HEES, MSM, SNHY.

Global Infrastructure stocks falling lower included the dig and dirt moving stocks MTW, TEX, JOY, as well as the Rail Infrastructure stocks GBN, TRN and ARII.

Emerging Market Currencies, CEW, and Major World Currencies, DBV, trading lower included, Swedish Krona, FXS, Brazilian Real, BZF,  Indian Rupe, ICN, Australian Dollar, FXA, the Euro, FXE.

The exhaustion of the world central banks’ monetary authority is reflected in the trade lower in World Commodities, DBC, and US Commodities, USCI, which were led lower by Silver, SLV, and base metals, DBB.

In today’s news

CNBC reports Le Pen voters to arbitrate Hollande-Sarkozy duel. The centre-left Hollande narrowly beat the conservative Sarkozy in Sunday’s 10-candidate first round by 28.6 percent to 27.1 percent, the Interior Ministry said with 99 percent of votes counted, but Le Pen stole the show by surging to 18.0 percent, the biggest result for a far-right candidate.Her breakthrough mirrored advances by anti-establishment Euroskeptical populists from Amsterdam and Vienna to Helsinki and Athens as anger over austerity, unemployment and bailout fatigue deepen due to the euro zone’s grinding debt crisis.”The battle of France has only just begun,” Le Pen, 43, daughter of former paratrooper and National Front founder Jean-Marie Le Pen, told cheering supporters. Declaring that her wave of support was  “shaking the system” of mainstream consensus politics, she said: “We are now the only real opposition.”

The gravel-voiced blonde, who wants France to abandon the euro currency, said she would give her view on the runoff at a May Day rally in Paris next week. But she saved most venom for Sarkozy, aiming to pick up the pieces in any recomposition of the right and hoping the Front can enter parliament in June.More than one third of French voters cast their ballots for protest candidates outside the political mainstream.

The deeply unpopular Sarkozy, the first sitting president to be forced into second place in the first round of a re-election bid, will have to do the splits to attract both far-right and centrist voters he needs to win the May 6 runoff. Sarkozy becomes defiant.  Saarkozy struck a defiant tone after his setback, steering to the right to try to attract Le Pen voters by vowing to tighten border controls, stop factories leaving France, make work pay and uphold law and order, rather than reaching out to centrists. He challenged Hollande to three live television debates over the next two weeks instead of the customary one. But Socialist aides said Hollande, who has no ministerial experience and is a less accomplished television performer than Sarkozy, had made clear he will accept only one prime-time debate, on May 2.

Polls taken on Sunday by three institutes suggested that between 48 and 60 percent of Le Pen voters planned to switch to the president, while Bayrou’s backers split almost evenly between the two finalists, with one third undecided. Melenchon, whose fiery calls for a “citizens’ revolution” drew tens of thousands to open air rallies, urged his followers to turn out massively on May 6 to defeat Sarkozy, but he could not bring himself to mention Hollande by name, who can also count on the modest votes of two Trotskyist also-rans.”Sarkozy is going to be torn between campaigning in the middle ground and campaigning on the right. He’ll have to reach out to the right between the rounds, so he’ll lose the centre,” said political scientist Stephane Rozes of the CAP think-tank.

If Hollande wins, joining a small minority of left-wing governments in Europe, he has promised to renegotiate a European budget discipline treaty signed by Sarkozy. That could presage tension with German Chancellor Angela Merkel, who made the pact a condition for further assistance to troubled euro zone states.

Open Europe reports Dutch PM resigns after talks to bring deficit in line with EU rules collapse. Dutch Prime Minister Mark Rutte has offered his resignation this morning, after talks over new budget cuts to bring Dutch deficit in line with EU rules broke down on Saturday. After more than seven weeks of negotiations, far-right PVV party led by Geert Wilders withdrew its support for the significant budget cuts, many of which demanded by the EU, and for the minority government itself. Wilders said, “We will not accept having our people bleed at the hands of bureaucrats in Brussels,” adding that the election will be about Europe and the euro.

Early elections may take place after the summer recess, around September. A snap poll by Maurice de Hond released on Sunday showed Wilders’ support steady at 14%. A leader in Handelsblatt notes that “for Germany, new [Dutch] elections bring along further insecurity at the European level”, noting that if Wilders gains greater influence it could become harder for the new government to ratify and implement the ESM treaty and the fiscal compact. Reuters EUobserver Reuters Dutchnews.nl NOS NRC Volkskrant leader Le Figaro EUobserver 2 Expansión FT CityAM WSJ Bloomberg EurActiv Telegraph Welt Handelsblatt leader WSJ Review & Outlook Expansión

Open Europe reports ECB exposure to the PIIGS tops €918bn.  Reuters’ MacroScope blog covers updated figures by Open Europe which show that the ECB now has a total exposure to the PIIGS countries of €918bn, up from €444bn a year ago. Of this €704bn comes from the ECB’s lending operations to banks in these countries, while €214bn comes from the ECB’s bond purchasing programme. Open Europe’s Raoul Ruparel is quoted saying, “Given the financial state of these countries – and the banks within them – it is clear that the ECB now owns billions of high risk debt.” Open Europe blog Reuters blogs: MacroScope

Open Europe reports Czech ruling coalition agrees to dissolve after junior member is sentenced for bribery.  Czech Prime Minister Petr Necas told the press yesterday that the Czech ruling coalition has agreed to dissolve, most likely leading to early elections in June. The decision came after Public Affairs party leader Vit Barta – a junior coalition member – was given an 18-month sentence for bribing party colleagues and some 90,000 people demonstrated against corruption and austerity measures over the weekend. EUobserver Cesky Noviny Prague Monitor

Zero Hedge reports Spain is about to enter a full-scale collapse

History Squared   Brazil’s bubble trouble.

A United States Of Europe Will Emerge Out Of A Soon Coming Credit Bust And Financial System Breakdown

April 22, 2012

There is much exuberance today in France as voters go to the polls; but of greater importance is the dream given to the Apostle John by angels and presented as bible prophecy in the Revelation of Jesus Christ, which foretells that a revived Roman Empire, Daniel 2:40-43, Revelation 17:17, in the form of a united Europe is coming out of the chaos of soon coming Financial Armageddon, that is a credit bust and financial system breakdown, Revelation 13:3-4, where the economic head of the Beast Regime,  suffers an apparent mortal wound.

The totalitarian and statist monster that God is developing, has six other heads, that is things which increasingly think, reason, speak and govern in mankind’s institutions; these being military, education, health care, media, religion, and science and technology.   

This is the backdrop to the rise of one of seeming little authority, the Little Horn, Daniel 7:8, Revelation 13; 5-10, who will be accompanied in rise to power by a banker, Revelation 13:11-18.  This sovereign will play the lead role in brokering a future middle east peace plan, Daniel 9:25-27,  which comes after the global Eurasia War, the Ezekiel 38 War.

His rise to power will be characterized by working in regional framework agreements, Daniel 8:23, to change our times and laws, Daniel 7:25. He will be one who honors a god of military power, Daniel 11:38-39.

Euroland will be one of the ten regions of global government foretold by Daniel in Daniel 2:31-33, and by John in Revelation 13:1-4; these are the very ten political jurisdictions called for by the Club of Rome in 1972 to 1976.

The inflection trade lower in world stocks, VT, this month evidences the death of fiat money and credit, as well as capitalism. Confirmation of such comes from this month’s trade lower in Commodities, DBC.

Debt deflation is seen in the Small Cap Pure Value Shares, RZV, Large Cap Growth, JKE, Agricultural Commodities, RJA, DBA, Base Metals, DBB, Oil, USO, all trading lower this month on the exhaustion of the world central banks’ monetary policies to sustain growth, and the failure of debt sovereignty of the peripheral European nations.

Insolvent sovereigns and insolvent banks can’t support either capitalism or European Socialism. Sovereign debt insolvency means that sovereign fiscal spending is unsustainable. The baton of sovereign authority is passing from sovereign nation states to sovereign bodies, such as the ECB and EU ECB IMF Troika. Both European socialism and capitalism are dying and regional global governance is rising in its place.

Money and credit as they have traditionally been known, is history; capitalism is no longer providing money and credit in the Euro zone; neo liberal credit has been extinguished.

Neoauthoritarian money and credit is flowing as economic resource.  Neoauthoritarian money and credit is rising to power Europe’s economy.

The PIIGS profligate spending, coupled with the world central banks’ monetary policies have pushed sovereign debt to the point where it is no longer sustainable.  The seigniorage, that is the moneyness, of capitalism is history. The seigniorage, that is the moneyness of regional integrated banking and government is rising. Eurozone fiscal spending is not sustainable as the periphery nations have lost debt sovereignty. Current fiscal spending is being provided courtesy of the ECB; this will not continue much longer.    

In  April 13 TIME Global Spin Blog article Time Interviews French Presidential Front-Runner  François Hollande, the Socialist candidate communicated that the Election is about priorities and values, specifically fairness, as well as a revived Franco German motor for Europe.  

He said, “We need the help of other member countries and leaders who, like us, want to see a change in Europe’s direction. That’s also my logic when I tell voters that electing me president will not only shape France’s future, but also initiate change across all of Europe. People, everywhere, don’t just want things done differently, they want things done more fairly.”

“I think the priority now is to improve ways the European Union operates and strengthen its practices as we go forward together. I’m favorable to countries wanting to push ahead faster with common projects and initiatives being allowed to do so. That could be done with European defense accords, industrial projects, fiscal harmonization, or, indeed, on a common tax on financial transactions. We shouldn’t be waiting for unanimous agreement that isn’t always possible, and can’t always be obtained in respect of national sovereignty concerns. The existing treaty allows countries desiring to move forward faster together to do just that when others prefer to opt out. We should do that when it appears productive and possible.”

Socialist Hollande will waive sovereignty if the result appears to be fair, productive and possible. 

MacroAndCheeseOrg writes in Zero Hedge French Toast.

The strength of Hollande’s lead is rather surprising given that along with Germany, France is navigating the financial crisis rather well. Sarkozy has Merkel’s explicit endorsement, and though he has had his own share of gaffes, on balance his policies are more moderate and sensible than his opponent’s. So why is he losing?

According to my French colleagues, Sarkozy acts like a nouveau riche, he flaunts his wealth and status. This, in France, is just not done. At a time when the French economy is wobbling, Sarkozy’s display of the good life, often in exotic locations with his glamorous wife, has not played well among the French populace. With his approval rating stuck in the low 30s for years, Sarkozy has dug himself into a hole.

But Sarkozy’s hole will be nothing like the Hollande tunnel. Francois Hollande is a socialist, and his prescription for France’s economy is sculpted along socialist lines. He has quite a program in store:

  • Hire 60,000 teachers in a country of 65mm
  • Balance budget by 2017
  • Tax income above EUR 1 million
  • Reduce consumer utility bills
  • Lower retirement to 60 for those who have worked 41 years or more
  • Reduce payroll tax
  • Renegotiate European treaty
  • Separate commercial and investment banking

By themselves, these planks don’t seem particularly onerous, but taken together and put in the context of a European recession, the prospects for the French economy are not good

Please consider Revelation 13:3-4, “And I saw one of his heads, as if had been mortally wounded, and his deadly wound was healed. And all the world marveled and followed after the beast and they worshiped the beast saying, Who is like the beast and who is able to make war with him.”  Then verse 5 transitions to the word he, so verse 5, must be about a person and not a regime.  The world global trade, investment and banking system is going to be massively wiped out. Then people will follow after the beast regime of Neoauthoritarianism where people will give allegiance to diktat.  With the Neoliberal economic system wiped out, people will not be turning to Gilders, D-Marks, and Drachmas; but, rather they will place their confidence and trust in diktat.  People will wonder and follow after the word will and way of regional leaders and bodies, actually worshiping them, saying who can rise to challenge their authority.   There’s no stopping what can’t be stopped; no killing what can’t be killed. Seeing this predator, I observe death all around.

The fiat money system is going to be replaced by the diktat money system. Seigniorage, that is moneyness, will no longer come from creditism and faith in debt. Seigniorage will come from regionalism and faith and obedience to diktat.  

After the soon coming Financial Armageddon, that is credit bust and economic collapse, all of those living in the Euro zone will be debt serfs living in a Eurozone regional of global governance, as called for by the Club of Rome in 1972 to 1976.  All will be residents of a debt gulag, and a totalitarian collective, where the debts of Neoliberalism are applied to every man woman and child. Financial Armageddon will dramatically reduce the US and UK hegemony that has ruled the world since the late 1700s, as the dynamos of global growth, trade, and corporate profitability, wind down; and the dynamos of regional security, stability and sustainability power up.  

Soon EU leaders will meet in summits to waive national sovereignty, and pool regional sovereignty, to announce regional framework agreements, where new monetary authority and new sovereigns, such as the Sovereign, foretold in Revelation 13:5-10, and the Seignior, Revelation 13:11-18, will be announced.

In Europe, these will install monetary cardinals, and public private partnerships to oversee economic activity, and fiscal budget commissioners to enforce austerity measures and debt servitude.

Global economics is increasingly being governed by statism as neo liberal credit fails. In the age of regional global governance, the Eurozone will be the first region to see banks integrated with government; these will be known as Government Banks or Gov Banks for short.  Bloomberg reports, The debt of banks is trading at the biggest discount to the broader corporate bond market since the depths of the funding squeeze in November as Europe’s sovereign crisis again threatens to rattle global financial markets.  From Spain’s Banco Santander SA to Morgan Stanley, the cost of credit-default swaps on a basket of the largest banks in Europe and the U.S. is 266 bps, compared with 137 for the Markit iTraxx Europe Index of 125 companies with investment-grade ratings. The 129 basis-point spread is the most since it reached 133 on Nov. 30… ‘The problem with emergency liquidity injections is that they become addictive,’ said Alex Bellefleur, an analyst at Brockhouse & Cooper Inc. ‘That is especially the case when injections are trying to fight underlying flows that are accelerating. This is the dynamic we are currently in.’” Bloomberg reports Greece’s four biggest banks reported a combined loss of 27.9 billion euros ($36.9bn) for last year after participating in the country’s debt exchange, the largest sovereign restructuring in history.

Spain’s two major banks, BBVA, and STD, are leading the European Financial Institutions, EUFN, and the World Financial Institutions, IXG, lower into the Pit of Financial Abandon.   

Regionalization of banks will be one of the outcomes of the 1972 to 1976 Clarion Call of the Club of Rome for regional global governance, just as the Milton Friedman Free To Choose script underwrote floating currencies, which enabled the global debt trade, and carry trade investing, to establish and empower creditism.

For the last forty years bankers have waived wands of creditism that marked the age of Neoliberalism; but soon leaders will meet in summits and wave announcements of regionalization that will mark the age of Neoauthoritarianism.

Because of acceptance of Economic Positivism and later because of acceptance of Milton Friedman’s Free To Choose script, Nixon took the US off the gold standard, and the US Dollar became the reserve currency, and the Floating Currency System has governed till this year, when the US Dollar started to rise and world currencies, traded by the ETF, DBV, started to fall. These include the Japanese Yen, the Australian Dollar, and the Brazil Real. These have not fallen very much, but, the rise in the US Dollar, has stopped the global government debt trade, as is seen in World Treasuries, BWX, trading lower in value.

Gradually, Positivism gave rise to Creditism, Inflationism, Creeping Tyranny, specifically European Socialism, and Crony Capitalism, as well as to the rise of the iron rule of UK and US Global Hegemony.

But in April 2010, World Stocks, VT, and Commodities, DBC, traded lower on exhaustion of world central banks’ monetary authority as well as contagion fears of the European Sovereign Debt Crisis and the Greek Sovereign Debt Crisis.

Global Economics is passing through an inflection point where Inflationism is turning to Destructionism.  Tyler Durden reflects on the nature of the US Federal Reserve relating, Four time Fed Chairman Marriner Eccles: “As long as the Federal Reserve is required to buy government securities at the will of the market for the purpose of defending a fixed pattern of interest rates established by the Treasury, it must stand ready to create new bank reserves in unlimited amount. This policy makes the entire banking system, through the action of the Federal Reserve System, an engine of inflation. (U.S. Congress 1951, p. 158)… [We are making] it possible for the public to convert Government securities into money to expand the money supply….We are almost solely responsible for this inflation. It is not deficit financing that is responsible because there has been surplus in the Treasury right along; the whole question of having rationing and price controls is due to the fact that we have this monetary inflation, and this committee is the only agency in existence that can curb and stop the growth of money.. . . [W]e should tell the Treasury, the President, and the Congress these facts, and do something about it….We have not only the power but the responsibility….If Congress does not like what we are doing, then they can change the rules. (FOMC Minutes, 2/6/51, pp. 50–51)”

Soon out of Financial Armageddon, that is a credit bust and global financial breakdown, fate, not any human action, operating through Creative Destruction, will bring forth Regional Global Governance to replace Capitalism, as foretold in bible prophecy of Revelation 13:3-4, and Daniel 2:31-33.              

There will not be a return to Gilders, D-Marks or Drachmas, as such come by national sovereignty.

In Europe, Germany will arise as preeminent in a type of revived Roman Empire. Germany and The European Investment Bank will be the leaders in the New Europe, where a One Euro Government will rule politically, monetarily and fiscally, and a One Euro Bank will rule financially.

Testosterone Pit in Zero Hedge article Drachma Clauses relates, The European Investment Bank, which was watching this imbroglio from the sidelines while shaking its institutional head, wised up to reality. For loans to state-owned enterprises in Greece, it started using contracts that are under British law and include “drachma clauses”, in case Greece were to exit the Eurozone, or in case the Eurozone itself were to break up. The first such contract was used two weeks ago for funding a natural gas power plant of the Public Power Corporation. Planning for Greece’s exit from the Eurozone has now seeped down into the language of contracts. Thus, the drumbeat of Greece’s economic horror show continues in its own manner and to its bitter end. For that unrelenting debacle and its consequences, read in A harder Default To Come.

Europe will be a gulag of debt servitude and regional statism, as Totalitarian Collectivism rules.

The dynamos of growth and profit that empowered Capitalism are winding down.  The dynamos of regional security, stability, and sustainability that empower Regional Global Government, are powering up.

Volatility, TVIX, increased this month evidencing growing financial system instability. The current unsustainable Euro zone economic and political situation will implode. There will not be a de-eurorization, but rather a eurofication, that is an eventual Euro integration, coming though a global credit bust and economic collapse, where leaders meet in summits and announce regional framework agreements, which waive national sovereignty, and produce a Federal Europe.  

Fiscal unsustainability is now ever-increasing. The loss of debt sovereignty by the PIIGS carries with it the eventual awareness that the spending by these nations is not fiscally sustainable. As this reality settles in, then the investment demand for gold will increase. Gold will increasingly be known as “money good”. Gold and diktat will be the two types of sovereign wealth in the age of devolution.

My parents practiced individualism and objectivism; they pursued their own happiness and rational self-interest as they amassed property to ever increase their happiness.

I practice liberalism in the like precious faith of Jesus Christ, by following the example of the Apostle Peter who encouraged in 2 Peter 1:1-10, that one ad virtue and love to one’s faith, thereby partaking of the Divine nature, so as to receive the exceedingly great promises of God, and to bear Spiritual fruit, and in so doing, find the meaning of life. What kind of liberalism, might one ask, the kind that encourages women to participate in worship along the lines of egalitarian meetings of Living Stream Ministries.

Unfortunately, I live in a libertine world, where the media head of the Beast System of Revelation 13:1-4, maintains the knowledge cage; and keeps the circus action going with ring masters such as the Cato Institute, and provides show announcers, such as those featured in the Economic Policy Journal article Borderline Propaganda  

I am acquainted with many psychopaths, as I live in an inner city neighborhood; one of the individuals who I had lunch with recently at the soup kitchen, mentioned he is a Libertarian. I said nothing, as such chameleons say they are most anything, but cannot tell you what the word Libertarian means; knowing him he would say, “it means I am free to do as I please”.

The S&P Commenced An Elliott Wave 3 Decline In April 2012

April 20, 2012

Financial Market Report for the week ending Friday April 20, 2012; the third weekly report of entrance into the Second Great Depression.

1) … The S&P commenced an Elliott Wave 3 Decline in April 2012.

The chart of the $SPX shows an Elliott Wave 5 high of 1,576 in 2007. The $SPX of 1,4222 in early April 2012, was an Elliott Wave 2 High. The $SPX, and the S&P’s ETF, SPY, entered an Elliott Wave 3 Down in April 2012, and as a result, the world entered into the Second Great Depression. The Third Wave Down is the most destructive of all economic waves as it destroys most of the wealth built on the prior 5 waves up.

This week a number of Real Estate REITS, such as SPG rose to new highs. 

The Proshares 200%  inverse ETFs seen in this Finviz Screener performed as follows, on the negative BIS -6.0%,  SIJ -2.6%, FXP -3.2%, SMN -2.4%, IWM -1.9%,  SJH -1.2%, DUG -1.4%,  EEV -0.8%; on the positive, SSG 4.2%, TLL 1.,7%, BZQ 1.6%.

2) … Capitalism is dying and regional global governance is rising out of destructionism’s conflict and chaos.

Neoliberalism featured creditism which produced inflationism. But the global tectonic economic and political plates have shifted with the failure of neo liberal credit on the exhaustion of the world central banks’ monetary policies which have caused global trade and corporate growth and profit to falter. The global government finance bubble and global debt trade have been punctured by the loss of confidence caused with the default of Greece, the rising deficit in Italy and the failure of Spain’s banks as well as a rise above 6% in Spain’s sovereign borrowing costs. Now, out of the chaos and conflict of destructionism, regional global governance is rising to replace capitalism. Regionalization will bring forth regional trading economic and trading blocs as the dynamos of regional security, stability and sustainability power up and the dynamos of corporate profit and growth power down. The result being regional global governance is rising to replace capitalism.     

Ambrose Evans Pritchard writes German Tempers Boil Over Back-Door Euro Rescues. Controversy is raging in Germany over soaring “payments” by the Bundesbank to shore up Europe’s monetary system and cope with a tidal wave of capital flight from southern Europe. Professor Hans-Werner Sinn, head of Germany’s IFO Institute, said German taxpayers are facing a dangerous rise in credit risk from a plethora of bail-out schemes. “The euro-system is near explosion,” he told Austria’s Economics Academy on Thursday. Dr Sinn said Germany is on the hook for much of the €2.1 trillion (£1.72 trillion) in rescue measures for EMU debtors – often by the back-door – that will saddle Germans with ruinous losses one day. “It is a horror scenario,” he said, warning that the euro system is splitting friendly countries into blocs of mutually hostile creditors and debtors, exactly the opposite of what was hoped. Earlier this week, the Foundation for Family Business in Munich filed a criminal lawsuit against the Bundesbank, accusing the board of disguising the true scale of risk born by German citizens. The furor  follows a sharp jump in the Bundesbank’s “Target 2” claims within the European Central Bank’s internal payment network from €547bn in February to €616bn in March. Bundesbank claims have risen sixfold since 2008, a rise mirrored in Holland and Luxembourg.

Euro Intelligence reports Jens Weidmann says it’s not the ECB’s job to solve Spain’s problems. Spain should take a rise in its bond yields as a spur to tackle the root causes of its debt woes, not look to the European Central Bank to help by buying its bonds, Jens Weidmann told Reuters. The head of the Bundesbank, who has led a push by some policymakers from core eurozone countries for the bank to begin planning an exit from its crisis mode, said no ECB policymakers favoured using the bank’s bond-buying plan to target specific interest rates on sovereign bonds, and ECB board member Benoit Coeure was simply stating a fact by saying last week that the programme still existed. Weidmann also said he saw no reason to discuss a third LTRO. We shouldn’t always proclaim the end of the world if a country’s long-term interest rates temporarily goes above 6 percent,“ he said referring to rates at which Spain currently has to borrow. „That is also a spur for policymakers in the countries concerned to do their homework and to win back (market) confidence through the pursuit of the reform path. (EuroIntelligence provides the best of reporting and analysis I encourage a purchase of their daily newsletter).

The trade lower in world stocks, ACWI, this month evidences the death of fiat money and credit, as well as capitalism. Confirmation of such comes from this month’s trade lower in Commodities, DBC.

Debt deflation is seen in the Small Cap Pure Value Shares, RZV, Large Cap Growth, JKE, Agricultural Commodities, RJA, DBA, Base Metals, DBB, Oil, USO, all trading lower this month on the exhaustion of the world central banks’ monetary policies to sustain growth, and the failure of debt sovereignty of the peripheral European nations.

Insolvent sovereigns and insolvent banks can’t support either capitalism or European Socialism. Sovereign debt insolvency means that sovereign fiscal spending is unsustainable. The baton of sovereign authority is passing from sovereign nation states to sovereign bodies, such as the ECB and EU ECB IMF Troika. Both European socialism and capitalism are dying and regional global governance is rising in its place.

Bloomberg reports Spanish Banks Gorging on Sovereign Bonds Shifts Risk to Taxpayer. Spanish, Italian and Portuguese banks are loading up on bonds issued by their own governments, a move that shifts more of the risk of sovereign default to European taxpayers from private creditors. Holdings of Spanish government debt by lenders based in the country jumped 26 percent in two months, to 220 billion euros ($289 billion) at the end of January, data from Spain’s treasury show. Italian banks increased ownership of their nation’s sovereign bonds by 31 percent to 267 billion euros in the three months ended in February, according to Bank of Italy data. German and French banks, meanwhile, have cut holdings of those countries’ bonds, as well as Irish and Greek debt, by as much as 50 percent since 2010 in some cases. That leaves domestic firms on the hook for a restructuring such as Greece’s last month and their main financier, the European Central Bank, facing losses. Like Greece, governments would have to rescue their lenders with funds borrowed from the European Union. “The more banks stop cross-border lending, the more the ECB steps in to do the financing,” said Guntram Wolff, deputy director of Bruegel, a Brussels-based research institute. “So the exposure of the core countries to the periphery is shifting from the private to the public sector.” (Hat Tip to Between The Hedges)

A comment in relation to the report that “Spanish, Italian and Portuguese banks are loading up on bonds issued by their own governments, a move that shifts more of the risk of sovereign default to European taxpayers from private creditors.”  These banks realize that the end of Neoliberalism, that is Milton Friedman Free To Choose Era, is almost over, and are seeking to develop a new banking model, one not based upon investment capital, but rather a banking model based upon political capital. The bankers want to stay employed and they want power, the kind of power that comes from their firms being integrated with government.

And a comment in relation to the report that ”Like Greece, governments would have to rescue their lenders with funds borrowed from the European Union. “The more banks stop cross-border lending, the more the ECB steps in to do the financing,” said Guntram Wolff, deputy director of Bruegel, a Brussels-based research institute. “So the exposure of the core countries to the periphery is shifting from the private to the public sector.”   The banks are not only integrating with their government, but they are integrated with the ECB, and have expanded moral risk, that is increased moral risk to all people living within the EU as a whole.  This subordinates their banks and their governments to the ECB. This has broken down national sovereignty.  Portugal, Italy, Greece, and Spain are no longer sovereign nation states. Rather the ECB is now the monetary authority for all of the Euro zone; the ECB is now the sovereign authority in Europe.  There is no genuine independent European sovereign debt market place, rather there is a singular purchaser of Euro zone Treasury debt, that being the ECB. The ECB is not only the sovereign in Europe, it is also the seignior, that is the top dog banker who takes a cut. The ECB, not an independent Treasury debt market place, is the sole funder of fiscal spending in the periphery nations. The resource for fiscal spending of the PIGS is not from traditional Neoliberal sources, but rather from new Neoauthoritarian sources.  Investment capital is waning and regional political capital is rising to grease Europe’s economic wheels. Neoauthoritarianism’s regionalism is replacing Neoliberalism’s creditism, where the global sovereign debt trade, financialized by Investment Bankers such as Morgan Stanley, MS,  and country specific housing industry debt trade, financed by Mortgage REITS such as Annaly Capital Management, NLY, and municipal debt financed by European State Banks such as Dexia, underwrote the foundation for global trade growth and corporate expansion.

Money and credit as they have traditionally been known, is history; capitalism is no longer providing money and credit in the Euro zone; neo liberal credit has been extinguished.

Neoauthoritarian credit is flowing as economic resource.  Neoauthoritarian money and credit is rising to power Europe’s economy.

The PIIGS profligate spending, coupled with the world central banks’ monetary policies have pushed sovereign debt to the point where it is no longer sustainable.  The seigniorage, that is the moneyness, of capitalism is history. The seigniorage, that is the moneyness of regional integrated banking and government is rising. Eurozone fiscal spending is not sustainable as the periphery nations have lost debt sovereignty. Current fiscal spending is being provided courtesy of the ECB; this will not continue much longer.   

Reflecting on EU political life, I observe that Germans perceive themselves to be German citizens of the German Republic. Greeks consider themselves to be Socialists of the Hellenic Republic. The French perceive themselves to be Socialists of the French Republic. I perceive them all to be European Socialists.

Those of the Austrian Economic persuasion, such as Mike Mish Shedlock, continually cry out that an internal devaluation is very much needed or there will be a breakup of the EU.  

Neither of these two things will happen. Please consider that after the soon coming Financial Armageddon, that is credit bust and economic collapse, all of those living in the Euro zone will be debt serfs living in a Eurozone regional of global governance, as called for by the Club of Rome in 1972 to 1976. Yes, all will be residents of a debt gulag, and a totalitarian collective, where the debts of Neoliberalism are applied to every man woman and child. Ten regions of global governance are coming to govern the economic affairs of mankind, as foretold in Daniel 2:31-33 and Revelation 13:1-4. Financial Armageddon will dramatically reduce the US and UK hegemony that has ruled the world since the late 1700s, as the dynamos of global growth, trade, and corporate profitability, wind down; and the dynamos of regional security, stability and sustainability power up.  Soon EU leaders will meet in summits to waive national sovereignty, and pool regional sovereignty, to announce regional framework agreements, where new monetary authority and new sovereigns, such as foretold in Revelation 13:5-10, and Revelation 13:11-18, will be announced. In Europe, these will install monetary cardinals, and public private partnerships to oversee economic activity, and fiscal budget commissioners to enforce austerity measures and debt servitude.

3) … A global Eurasia war is coming.

As I read the bible prophecy website Signposts of the Times, I conclude that time the timing of the Ezekiel 38 War is imminent.  Ezekiel 38:4-6 communicates that Iran, that is Persia, is one of nations aligned with Russia, in the Gog Magog War that encompasses all of Eurasia.  “I will turn you around, put hooks in your jaws and bring you out with your whole army, your horses, your horsemen fully armed, and a great horde with large and small shields, all of them brandishing their swords.  Persia, Cush and Put will be with them, all with shields and helmets, also Gomer with all its troops, and Beth Togarmah from the far north with all its troops, the many nations with you.”

4) … Global economics is increasingly being governed by statism and crony capitalism as neo liberal credit fails.

Paul Brodsky writes in Zero Hedge Statists At Play. Argentine president Cristina Fernandez de Kirchner announced that her Argentine government would expropriate and re-nationalize YPF, an energy company operating mostly in Argentina founded by its government in the 1920s and de-nationalized in the 1990s. Repsol, a Spanish company that owns (owned) 57% of YPF called the act “illegal and unjustified” and vowed to sue. As Paul Brodsky and Lee Quaintance of QBAMCO note, in times past such expropriation would surely be an act of war. FdeK’s timing was brilliant, to re-nationalize the Spanish-controlled energy company when Spain’s economy and funding are teetering means the Spanish government and businesses domiciled there lack the clout to make demands of Euro confederates. The political calculus among leaders of sovereign governments reduces to short-term domestic political benefits vs. threats of economic or military retaliation but with regard to natural resources, the QBAMCO pair critically note, the bigger implication that it is sovereign vs sovereign as the paper bets representing global production and resources that we call “capital markets” is in jeopardy of becoming a sideshow. Baseless paper money, fractional banking, revenue shuffling, financial returns, ever-increasing debts, unwarranted confidence building, nominal output growth and politicians posing as policy makers cannot sustain the most basic needs of societies.

Reuters reports Summers And Rubin, Remorseless Deregulators

Testosterone Pit writes in Zero hedge Pushing The Euro To The Brink that French President candidate Hollande wants banks eliminated and sovereigns integrated and funded by the ECB.  If elected on May 6, he would immediately set out to implement his ambitious plan—though it might lead to the break-up of the Eurozone.

He’d renegotiate the fiscal union pact, a hastily drawn-up document that is supposed to induce budgetary discipline into the 25 governments that signed it in even greater haste. The pact is German Chancellor Angela Merkel’s grand oeuvre. She forced it through at the height of the crisis. But Hollande wants to include provisions for additional government spending and borrowing, his “measures of growth,” and he’d block ratification of the pact if he had to.

Then he hammered home just how serious he was in pushing the ECB to print money and lend directly to the governments. “It’s incredible that the ECB floods the market with liquidity,” he said, and that the “banks borrow from it at 1% and re-lend to the States, specifically Spain, at 6%.” Oops, he saw the 5% spread. A breath of fresh air. A politician who looks at the numbers!

“There comes a moment when one can no longer accept phenomena of that kind of income,” he added with an eye on the €1 trillion that the ECB lent to the banks via its Long Term Refinancing Operations. “It would be more judicious, more efficient, and faster for the ECB to lend” directly to governments “as first and last resort.” In other words, he wants to cut out the middlemen, namely the banks. And he has his eyes open: “I know that the Germans are totally hostile to this; well then, this will be part of the negotiation.”

In the age of regional global governance, the Eurozone will be the first region to see banks integrated with government; these will be known as Government Banks or Gov Banks for short.  Bloomberg reports, The debt of banks is trading at the biggest discount to the broader corporate bond market since the depths of the funding squeeze in November as Europe’s sovereign crisis again threatens to rattle global financial markets.  From Spain’s Banco Santander SA to Morgan Stanley…, the cost of credit-default swaps on a basket of the largest banks in Europe and the U.S. is 266 bps, compared with 137 for the Markit iTraxx Europe Index of 125 companies with investment-grade ratings. The 129 basis-point spread is the most since it reached 133 on Nov. 30… ‘The problem with emergency liquidity injections is that they become addictive,’ said Alex Bellefleur, an analyst at Brockhouse & Cooper Inc. ‘That is especially the case when injections are trying to fight underlying flows that are accelerating. This is the dynamic we are currently in.’” Bloomberg reports Greece’s four biggest banks reported a combined loss of 27.9 billion euros ($36.9bn) for last year after participating in the country’s debt exchange, the largest sovereign restructuring in history. Spain’s two major banks, BBVA, and STD, are leading the European Financial Institutions, EUFN, and the World Financial Institutions, IXG, lower into the Pit of Financial Abandon.   

Regionalization of banks will be one of the outcomes of the 1972 to 1976 Clarion Call of the Club of Rome for regional global governance, just as the Milton Friedman Free To Choose script underwrote floating currencies, which enabled the global debt trade, and carry trade investing, to establish and empower creditism. 

For the last forty years bankers waived wands of creditism that marked the age of Neoliberalism; but soon leaders will meet in summits and wave announcements of regionalization that will mark the age of Neoauthoritarianism

 5) …. The poorest county in each state

MSN.com presents the poorest county in each state. Your blog host lives in a poverty;  and I reside in a six-story trailer park, filled with many coming and going to prison.    

6) … The Apostle Peter wrote in 2 Peter 1:1-10, that partaking of the Divine realm, is an alternative to living in the fiat realm.

Since my emancipation from my family of origin, the poneros, that is the unreasonable and wicked, have always been present in my life. For example, in the early in 1970s, I worshiped as a Catholic and volunteered in the Sacristy, that is the area where the priest robes up. One day Sister Ann appeared and said she held office in the Church, and being senior, would be taking over my responsibilities of  preparing for daily mass. Few attended the daily ritual, there was only the Priest,  his dog, named Whimper, who rested beneath the altar, Sister Ann and myself. When an unfamiliar person came in to the sanctuary, Whimper would stand up and bark until quieted by the Priest.  After a year, the Priest became concerned about the credentials of Sister Ann. She said she was from a convent back east. So the priest wrote and then called the convent, and they said they had no record of her being part of their organization.  The Priest confronted her, and said she would bring in paperwork establishing her credentials. She never returned, but was seen around town out of her habit, that is out of her black attire. I could go on, and on and on, with over a dozen examples of ponerous individuals, people who are black holes, sucking in all energy, matter and light. If one encounters a person without conscience, one who blames others, one who is controlling, one who continually offends, one who confronts others, one who leeches on others, please consider departing at light speed, and do not come in contact with that person again, even if that person is married to a loved son or daughter.  One can give a reason, such as stating that, one has emotional troubles, or one has to be more private.    

Virtuous living suggested in 2 Peter 1:1-10, where those of the like precious faith of Jesus Christ, being elect, that is the chosen, selected and appointed of God, add virtue and love to their faith, so as to partake of the divine nature, and receive the exceedingly great and precious promises of God, and to bear spiritual fruit, reflecting the obedience of faith.

Virtuous living developes the four dimensions of personhood. For the Christian, virtues, that is a set of moral excellencies, is practiced the same to all people; there is no moral duality. Virtues when faithed in Christ, confirm one’s identity as elect, and enable one to have organic union with the divine nature; whereas any other spiritual experience or philosophical experience is simply an ongoing experience in the dead state of Adam. Virtuous living glorifies 1) Livelihood, that is gainful occupation, 2) Family role, 3) One another living, 4) Sex life. Marriage, and a wedding band on the finger, places sexual passion in a fireplace where it can be safely and graciously enjoyed.   

The degree of one’s moralness, or one’s ethicalness, or one’s fiat ruleness, establishes the clarity,  definition, and distinctiveness of one’s personhood. Morality comes by a good conscience, which in turn comes by prayer, and by the development of purity, and by the practice of holiness as one reflects on and purposes for virtuous living.  Many Germans have by cultural habit developed personal industry, their occupational ruleness gives them an economic advantage and defines a strong, conscientious, and capable worker, yet this does not make them morally superior, or more morally desirable, or morally anything, as it come out of one’s carnal or fiat nature.  And as for the poneros who I have encountered, they continually and habitually have life experience out of their carnal ruleness, a condition where they have no genuine conscience to objectively discern right from wrong, they are only conscious of themselves and their own rules, and act without remorse to exact justice on the offenders of those rules. Psychiatrists say that 4% of the population are psychopaths; but, I believe the number is closer to 10% to 12% .  These are terrifically destructive to moral living; flee from such immediately; give any reason; simply flee!

7) …Will the Export Import Bank continue to be funded? 

Bruce Krasting asks in Zero Hedge Is Exim Going To Flop?

Capitalism Meets Its Waterloo … Stocks Pivot Lower On Spanish Bond Auction Yield, As Well As On Job, Home Sales And Manufacturing Reports

April 19, 2012

Financial Market Report for April 19, 2012

Today April 19, 2010, was Capitalism’s Waterloo as the charts of Volatility ETF VIXY, TVIX, VIXM, all show a rise today, on a pivot lower in world stocks, VT, and US Stocks, VTI, as jobless claims, existing-home sales and manufacturing in the mid-Atlantic region all suggested that the robust start to 2012 seems to have lost momentum.

The declines also reflected significant drops in many European markets after an auction of Spanish bonds was oversubscribed but produced slightly higher-than-expected yields. CNBC reports investors’ fears about Spain eased for a while after the country sold 2.54 billion euros in two-year and 10-year bonds, more than the expected range of 1.5 billion to 2.5 billion euros set for the auction. The Spanish government sold 10-year bonds at an average yield of about 5.7%. The average yield for the two-year was about 3.5%. But the yield on the Spanish 10-year bond rose to 5.925%, up from Wednesday’s 5.82%.

Transports, IYT, and  Industrials, IYJ, both traded lower today giving Dow Theory confirmation that the bear market that began this month is definitely underway. Transportation Shares, IYT, traded 1.5% lower, and Industrial Shares, IYJ, traded 1.1% lower.

Shares leading the way lower today included Steel, SLX, Housing, ITB, Small Cap Pure Value, RZV, US Infrastructure, PKB, and Large Cap Growth, JKE.

Large Cap Growth shares trading lower included QCOM, NEU, AAPL, CAT.  Apple, AAPL, -3.2%; shares dropped below $600 after Verizon Wireless said it had sold 3.2 million iPhones in the first quarter, down from 4.2 million in the fourth. The Nasdaq 100, QTEC, Technology, XLK, and MTK, traded lower.

Spain’s BBVA and STD led European Financials, EUFN, Spain, EWP, Italy, EWI, Greece, GREK, France, EWQ, lower.

Emerging Markets, EEM, the BRICS, EEB, China Industrials, CHII, Steel, SLX, which turned lower in March, continued lower today.

Performance of Proshare 200% inverse ETFs this week include EEV 3.5%, TWM 2.1%, BZQ 6.5%, SSG 4.1%, SIJ,  1.5%, REW 5.7%, BIS -1.7%.

Today’s trade lower in world stocks, ACWI, evidences the death of fiat money and credit, as well as capitalism. Confirmation of such comes from yesterday’s trade lower in Commodities, DBC.

Debt deflation is seen in the Small Cap Pure Value Shares, RZV, Large Cap Growth, JKE, Agricultural Commodities, RJA, DBA, Base Metals, DBB, Oil, USO, all trading lower on the exhaustion of the world central banks’ monetary policies to sustain growth, and the failure of debt sovereignty of the peripheral European nations.

Insolvent sovereigns and insolvent banks can’t support either capitalism or European Socialism. The baton of sovereign authority is passing from sovereign nation states to sovereign bodies, such as the ECB and EU ECB IMF Troika. Both European socialism and capitalism are dying and regional global governance is rising in its place, as foretold in bible prophecy of Daniel 2:31-33, and Revelation 13:1-4.

The global investment tectonic plates have shifted, and an authoritarian tsunami is on the way. Investment capital that has governed capitalism is failing as the dynamos of growth and profit are winding down on the exhaustion of the world central banks’ monetary authority. Political capital is rising to govern regional global governance as the dynamos of regional security, stability and security are winding up, as investors derisk out of stocks and delever out of commodities. Regionalization, as foreseen by the Club of Rome in 1974 to 1976, is mankind’s future; regional blocs will form the basis of future political and economic activity.

After the soon coming Sovereign Armageddon, that is a credit bust and financial system breakdown, caused by the collapse of sovereign debt, that is Treasury Debt, traded by the ETF BWX, and especially Treasury debt of the PIIGS, leaders will meet in additional summits to waive national sovereignty, and pool sovereignty to integrate European financial institutions and regional government; this new entity will be known as the Government Bank or Gov Bank for short.

Money and credit as they have traditionally been known, are history. European socialism is no longer providing money and credit in the Euro zone; neo liberal credit has run its course. Previously floating currencies and the global government debt trade, that have been the backbone global growth, trade and profit for capitalism are exhausted.

The seigniorage, that is the moneyness, of European Socialism is history. The seigniorage, that is the moneyness of integrated banking and government, is rising. Neoliberal credit such as sovereign bonds is being replaced by Neoauthoritarian money and credit such as ECB LTROs. 

The seigniorage of speculative choice is being replaced by the seigniorage of diktat.

The fiat money system is being replaced by the diktat money system. Capitalism is being replaced by regional global governance.

There is no longer any fiat wealth that is money good. As fiat wealth falls lower in to the pit of financial abandon, the investment demand for gold will arise; physical possession of gold will  be the only money good. Soon the gold ETF, GLD, will be rising from its current price of 159.43.

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