1) … A new age now begins, with a call to a new vision; the new age is Neoauthoritarianism, and it replaces Neoliberalism.
Financial Times reports that on Friday June 1, 2012, investors headed to the exit doors. And Tyler Durden writes in Zero Hedge The 2.5% drop in the S&P 500 back below its 200 DMA, was its largest single-day drop in seven months. Gold’s 4% gain is the biggest day since January 2009. Treasury yields plunged to new all-time record lows with 30Y showing a 2.50% handle and 10Y a 1.43% handle. All the high-beta hope names, SPHB, were crushed with financials, XLF, down 3.7%, their largest fall in 7 months (with majors even more as seen in this Finviz Screener).
Page Smith writes the book A New Age Now Begins, a narrative of the American Revolution, on page 1817, “At the bottom of the Great Seal are the three words from Vergil’s Eclogues, Novus Ordo Seclorum, “a new age now begins.” It was that the American Revolution and its consummation, the Federal Constitution was to accomplish a new human order, in which no man was sentenced by the chance of birth to subordination and exploitation, and no class of men was ordained to rule over others. These were America’ revolutionary credentials, a new dispensation for the human race, a new hope for the humanity. And so the world indeed understood”
I comment that the American Revolution was the genesis of many fiat identities, which generate rules, ethics and morals. The opposite of these is the elect of God, Colossians 3:12, and the like precious faith of Jesus Christ, which calls one to virtue, 2 Peter 1:1-10.
To say “And so the world indeed understood”, is a misrepresentation of the facts, that is a biasing of the facts, skewed toward the Libertarian philosophy, and its ethics of freedom.
The correct understanding of the American Revolution, comes from bible prophecy of Daniel 2:30-44, where, two iron legs of global hegemony, that being the UK and the US were ordained by God, to rule the world from 1776 to 2012, and then be replaced by ten toes of iron and clay, symbolic of ten regions of political and economic governance, where the iron is representative of diktat and the clay representative of democracy. Needless to say the New Europe, and the new global paradigm is not like the pastoral poem written by the famed Roman writer in the first century B.C. that expresses the longing for a new era of peace and happiness, that served for the inspiration of the term Novus Ordo Seclorum.
Dr. Worden writes in European Central Bank to EU Leaders: Vision Is Needed. Mario Draghi, president of the European Central Bank, warned a committee of the E.U.’s parliament at the end of May 2012 that the structure undergirding the euro in the E.U. had become “unsustainable.” He criticized political officials for having kicked the can down the road by enacting half-measures or else delaying decisions, thus making the debt crisis even worse than it otherwise would have been. “The next step is for our leaders to clarify what is the vision for a certain number of years from now.” (Jack Ewing, the NYT, Central Banker Sees Structure of Euro Zone as ‘Unsustainable’.” Similarly, Olli Rehm, vice president of the E.U. Commission (the E.U.’s executive branch), said that ways must be found to avoid a disintegration of the common currency. Such advice may be easier said than done. Even though vision and policy proposals are staples of leadership, the lack of the single executive at the E.U. level means that the competing ideological visions of state leaders who are active at the federal level via the European Council can result in no single vision being adopted.
Therefore, combining Draghi’s call for a long-term vision and more centralized regulation on banks, we can extrapolate a need for a more expansive vision that situates the European Council amid the other E.U. institutions as well as the role of the veto held by each government represented in the Council. That is, the vision must be constitutionalist in substance even if not in name. Otherwise, the E.U. will continue to be held back by the conflict of interest that is in the union’s very design. I suspect that the E.U. will continue to be “made” incrementally, policy by policy. I take Draghi’s main point to be that such an approach was no longer enough for the euro to be sustained.
Reuters reports Spain’s on Spain’s prime minister vision. Mariano Rajoy Asked For a Eurozone Fiscal Authority, Spain on Saturday proposed the set up a new fiscal authority in the euro zone which would control and harmonize national budgets and manage the European debt. “The European Union needs to reinforce its architecture,” Rajoy said at an event in Sitges, in the north-eastern province of Catalonia. “This entails moving towards more integration, transferring more sovereignty, especially in the fiscal field. “And this means a compromise to create a new European fiscal authority which would guide the fiscal policy in the euro zone, harmonize the fiscal policy of member states and enable a centralized control of (public) finances,” he added. He also said the authority would be in charge of managing European debts and should be constituted by countries of the euro zone meeting strict conditions.
In response, Bloomberg reports Merkel Rejects Debt Sharing as Obama Urges End to Crisis Cloud. German Chancellor Angela Merkel hardened her opposition to joint debt sharing in the euro region as President Barack Obama singled out Europe’s leaders for not doing enough to stop the financial crisis.
Tyler Durden weighs in relating As Soros Starts A Three Month Countdown To D(oom)-Day, Europe Plans A New Master Plan.
The correct vision, is the one provided by the Sovereign Lord God, Ephesians 1:1-23, who is the author of all things, 2 Corinthians 5:17-18. And in Daniel 2:30-44, God provides His vision for empires, not sovereign nation states to govern the world, so that eventually the Kingdom of His Son, Jesus The Christ, be established, Revelation 2:26-28, by providing the Statue of Governance, where two iron legs of global hegemony, that being the UK and the US, rule the world from 1776 to 2012, and then be replaced by ten toes of iron and clay, symbolic of ten regions of political and economic governance, where the iron is representative of diktat and the clay representative of democracy.
The final form of UK and US hegemony was developed with the assistance of Wall Street Financiers, specifically Regional Banks, KRE, Investment Bankers and Asset Managers, KCE, Investment Brokers, KCE, and Property Insurers, KIE, and as is seen in the growth of the financial ETF, XLF, now on its last leg and going down. And assistance also came from the major world banks, IXG, such as those in the City of London, LYG, BCS, and HSBC.
The final form of US and UK hegemony, emerged as Crony Capitalism, and European Socialism, which stimulated the debt trade, with investment products such as Sovereign Debt, BWX, EMB, Junk Bond, JNK, Senior Bank Loans, Municipal Bonds, MUB, Longer Duration US Debt, BLV, Corporate Debt, LQD, International Corporate Bonds, PICB, all based upon the Milton Friedman Free To Choose, floating currency regime, which failed to float currencies beginning in April 2011, and hence money died, as major world currencies, DBV, and emerging market currencies, CEW, sank on fears that a debt union had formed in the EU. And now in April 2012, credit died, on fears that global growth, and global trade, having reached their limits on exhaustion of the world’s central banks’ monetary policies, as well as the loss of debt sovereignty by the PIGS, and the failure of trust in the European financial institutions, EUFN, such as IRE, STD, and NBG.
God’s vision is clear and distinctive; it is one of regional governance, that is authoritarian rule in ten world regions. The Banker Regime of Neoliberalism is being replaced by the Beast Regime of Neoauthoritarianism, as the Troika rises from the First and Second Greek Bailout Agreements, as foretold in Revelation 13:1-4. The former regime was characterized by wildcat finance, a Doug Noland term, where speculators used leverage for private gain. The latter regime is characterized by wildcat governance, where leaders bite, rip, and tear one another, to rise to be sovereign, that is supreme leader, and seignior, that is fiscal overlord. The Apostle John, provides the sequel to Daniel, and relates in Revelation 13:1-4, that the Beast Regime, has seven heads, symbolic of its rule in mankind’s seven heads, and ten horns, symbolic of its rule in mankind’s ten world regions.
Fears of a Greek Default, which will take place within the Eurozone, will be the genesis event for Financial Armageddon, that is a credit bust and global financial breakdown. As the dynamos of corporate profit and global growth and global trade wind down; the dynamos of regional security, stability and sustainability, will power up.
By fate, and not by any human action, leaders in the EU will meet in summits, to waive national sovereignty, and pool sovereignty regionally, and announce regional framework agreements which establish a Federal Europe Super Government, with economic, monetary, banking, credit, and fiscal authority. Such regionalization is in accordance with God’s vision for ten regional blocs, where eventually ten regional kings will rise to power, Revelation 17:17.
2) …Neo liberal finance is failing in Argentina, Neoauthoritarianism will emerge to provide the diktat money system where diktat will serve as both money and credit.
Robert Wenzel write in Economic Policy Journal Is Argentina Headed for Hyper-Inflation?. Last time I discussed Argentina was back in April, I warned about the two women controlling the money printing in the country.
I wrote back then:
Two women have taken control of Argentina’s central bank and are about to use it as if they are on a weekend shopping spree.. Cry for Argentina
My worst fears are developing. Argentina’s inflation rate is at 23%. According to Businessweek, it is the second highest in the world (Only Venezuela has a higher rate).
The soaring inflation is causing a flight out of the currency, which, you guessed it, is causing the government to put currency controls on, preventing Argentinians from exchanging their pesos for dollars. From Businessweek:
Argentine lawyer Julio Cesar Duran wanted to exchange a pocketful of pesos for $10 to give as a gift to his two grandsons. With the government clamping down on dollar purchases, the tax agency rejected his request.
President Cristina Fernandez de Kirchner’s tightening oversight of the foreign currency market is hitting international companies as well as average Argentines, who have traditionally bought dollars to protect their savings in a country with a history of devaluations and hyperinflation. In the unregulated market, the dollar costs about 40 percent more than the official rate of 4.47 pesos, a record gap.
“I wanted to buy $10, not $10 million, and the tax agency says I can’t,” Duran, 59, said in a telephone interview from Mar del Plata, a seaside town in Buenos Aires province, where he tried to buy the dollars at an exchange house last week. “I didn’t intend to do something that would destabilize the country’s finances.”…
The purchase of dollars by individuals and companies drains central bank reserves. With $21.5 billion being pulled out of South America’s second-biggest economy last year, up from $11.4 billion in 2010, Fernandez decided to staunch the losses following her October re-election…
Within days of winning a second four-year term, Fernandez ordered mining companies including Xstrata Plc (XTA) to keep export revenue in the country, told insurance companies to repatriate investments and gave the tax agency the mandate for limiting dollar sales. The government said the moves were needed to limit money laundering and terrorist financing. In April, Fernandez banned Argentines from using their ATM cards to withdraw dollars abroad from peso-denominated accounts.
Bottom line: The latest actions of the Argentinian government point to what Ludwig von Mises warned about. There is no half way method between free markets and central planning. One step on the road to central planning leads to another. In this case, the central bank money printing is now leading to currency controls.
There’s also a second lesson here. If you live in a country that is becoming more totalitarian, get your money out of the country well before the draconian currency laws come in that will prohibit you from moving funds outside the country. (htOmarArzu)
3) … Ireland votes to waive its national sovereignty … this was a foregone conclusion.
In the Irish referendum, 60% of those who voted, did so in favour of more economic power being centralised in Brussels; this was a foregone conclusion, an event ordained from eternity past by the Sovereign Lord God, as he is bringing forth regional governance according to his plan announced in the Statue of Governance of Daniel 2:30-44, and in accordance with his will to bring forth a Beast Regime, from the Mediterranean nation state of Greece, to destroy all current economic and political life, Revelation 13:1-4, all in his aim to establish the Kingdom of His Son Jesus the Christ, Revelation 2:26-27.
To understand this perspective, perhaps one might consider rejecting any fiat identity such as socialist, libertarian, or republican and consider that one is a son of God, having been made accepted in the Beloved, Ephesians 1:6; that one is elect of God, 1 Peter 1:2, the very Israel of God, Galatians 6;16, where the word, Israel, means Prince; and that one is seated in heavenly places, now ruling and reigning with Jesus Christ, and participating in the Economy of God; with experience in the like precious faith of Jesus Christ, whereby one partakes of the divine nature, by adding to faith, virtue, self-moderation, knowledge, perseverance, godliness, brotherly kindness, and love, so as to experience the exceedingly great promises of God, and bears spiritual fruit pleasing to God, 2 Peter 1:1-10.
Rufus from Atlantis writes Ireland votes for economic suicide – as ordered by the EU oligarchs. If one ever had to ponder the sanity of the European people, then the result of the Irish referendum on European fiscal policy, must surely cause such pondering. In the referendum, 60% of those who voted, did so in favour of more economic power being centralised in Bruxelles. The Fiscal Treaty effectively gives total economic control to central government, and moves the EU one step closer to being a single state, rather than a federation of sovereign countries; and of course this is far from the original propaganda that the European project was one of free trade, which would not remove any power whatsoever from the individual countries involved.
Yahoo relates Rare ‘transit of Venus’ stirs excitement. Next week is your last chance until 2117 to see the planet pass in front of the sun; perhaps, the Great Tribulation, that is mankind’s final three and one half years will begin in 2117.
5) … Are these four Junior Gold Mining Stocks worth owning?
Are the Junior Gold Mining Stocks, KBX, THM, BRD, LODE, seen in this Finviz Screener worth owning? For the risk seeking individual, these might be a reasonable investment.