A Manifesto For A New Europe Will Arise Out Of Soon Coming Political And Economic Chaos

Financial Market Report for Tuesday November 13, 2012 through Thursday November 15, 2012

1) … US Treasuries rise taking total bonds to a new high, as stocks trade lower on delay of Greek bailout.

On Tuesday, AP reports Markets roiled by Greek bailout delay.  Financial markets focused their concerns on the future of Greece on Tuesday as the country’s creditors have still not agreed on giving it the next installment of its rescue loans. EU, IMF clash over Greece revives debt crisis fears.  And Greece raises over $5 billion ahead of repayment.

Peak capital has arrived; stocks are unable to leverage higher as the world is passing through peak debt as is seen in the the closed end equity fund CSQ has turned lower as the closed end debt fund PFL has topped out. The age of fiat asset deflation has commenced as investors are deleveraging out of commodities, DBC, and derisking out of stocks, VT.  Inflationism has turned to deflationism as the world central banks monetary authority has exhausted. An end has come to the expansion capability of the US Federal Reserve’s easing as reflected by mortgage backed bonds, MBB, and Mortgage REITS, REM, turning lower. And an end has come to the the expansion capability of the ECB’s bond purchasing LTRO programs and OMT activity as reflected in International Treasury Debt, BWX, Greece, GREK, Germany, EWG, Italy, EWI, Spain, EWP, trading lower.

Bespoke Investment Group asks S&P 500 spring redux? With another decline today, the S&P 500, SPY, is now down 6.22% from its bull market closing high reached on September 14th. While it may not seem like it, this decline has been going on for 41 trading days now. As shown below, the recent pattern looks a lot like the pattern we saw in the first half of this year. Following a straight up rally from last December through the end of the first quarter, the S&P fell 9.93% over 42 trading days. I comment that the S&P, SPY, which had outperformed the Euro Stock 50 Index, FEU, is now falling faster, as is seen in this combined Yahoo Finance Chart; the once highly valued large cap US shares were seen as a safe haven investment, but now they are falling faster, that is they are loosing their seigniorage faster, on the exhaustion of the world central banks’ monetary authority; September 14th, and October 14th, were both pivotal days in the failue of neoliberal finance.

The ongoing Yahoo Finance Chart of the S&P, SPY, the Russell 2000, IWM, and Regional Banks, KRE, shows that beginning on September 14, 2012, an outflow of money from regional banks such as Regions Financial, RF, stirred investors to exit the Russell 2000. California Beach Pundit writes Lots of bad news priced in. The charts, of Debt Equity Flows Vs The S&P, and Total Bond Flows Vs The S&P, show how investors are voting with their feet; equity mutual funds continue to experience heavy outflows, while bond funds continue to experience strong inflows; this is a picture of a market that is very worried about the future and very concerned about seeking shelter.

Sectors leading flower include Uranium Producers, URA, Rare Earth Producers, REMX, Regional Banks, KRE, Nasdaq Community Banks, QABA, Mortgage REITS, REM, Small Cap Energy, PSCE, Steel, SLX, Metal Manufacturing, XME, Networking, IGN, Cloud Computing, SKYY, Smartfone, FONE, Nanotechnology, PXN, and Semiconductors, XSD.

The countries of Russia, RSX, ERUS, China, YAO, FXI, Argentina, ARGT, Brazil Small Caps, BRF, EWZS, and Australia, EWA, KROO, Austria, EWO, Norway, NORW, Sweden, EWD, led World Shares, VT, lower. The Yahoo Finance chart of Asia, EPP, Hong Kong, EWH, Shanghai, CAF, China Industrials, CHII, China Infrastructure, CHXX, China Small Caps, HAO, Taiwan, EWT, and Japan, EWJ, shows today’s fall in the Asia shares.

Carry trade darlings, Turkey, TUR, Thailand, THD, New Zealand, ENZL, Norway, NORW, Netherlands, EWN, Hong Kong, EWH, Central Europe, CEE, Israel, EIS, Ireland, EIRL, Mexico, EWW, Egypt, EGPT, and the Philippines, EPHE, are trading below their recent highs.

Large cap growth, JKE, leaders are trading lower from their recent highs; these include, Investment Bankers, JPM, Telecom, T, VZ, Pharmaceuticals, MRK, PFE, Manufacturer, GE, MMM, UTX, Creditors, AXP, MV, Consumer Discretionary, DIS, Copper Producer, SCCO, Retailer, M, Biotechnology, BIIB, Energy, CVX, Health Care, UNH, Technology, MSFT, Consumer Goods, PG, Energy Service, SLB, Chemical, DD, Technology, AAPL.

Mortgage REITS, REM, such as NLY, STWD, SFI, CMO, MFA, NCT, MTGE, AGNC, TWO, IVR, HTS, and CYS, seen in this Yahoo Finance Chart, traded strongly lower on lower Mortgage Backed Bonds, MBB. Wall street bankers are unable to securitize mortgage debt at a higher price and thus Mortgage REITS are plummeting in value.

Japanese Banks, SHG, MFG, MTU, and SMFG, are driving Japan, EWJ, lower as is seen in this Yahoo Finance Chart, and Brazil Banks, BSBR, ITUB, and BBD, are driving Brazil, BRF, EWZS, EWZ, lower, as is seen in this ongoing Yahoo Finance Chart.

On Wednesday, November 14, 2012, stocks ratcheted violently downward, as Homebuilders, ITB, the Too Big To Fail Banks, RWW, European Financials, EUFN, Biotechnology, XBI, Uranium Miners, URA, Copper Miners, COPX, Gold Miners, GDX, Silver Miners, SIL, Metal Manufacturing, XME, traded strongly lower; even US Infrastructure, PKB, and Media, PBS, traded strongly lower. Silver Standard Resources, SSRI, and First Majestic Silver, AG, have been and currently are, some of the most carry trade invested stocks of all time; investors from across the globe have traded in and out of their currencies to buy these stock, and today, their volatility reflected such investing, falling strongly.  Small Cap Value, RZV, fell strongly reflecting a trade lower in major world currencies and emerging market currencies, such as the South African Rand, SZR, with the exception of the Euro, FXE, and the Swiss Franc, FXF, which traded higher. And Bespoke Investment Blog writes Municipal Bonds See Sharp Reversal. After surging over the first few trading days following the election due to the perceived risk of higher taxes, the municipal bond ETF, MUB, saw a sharp intraday reversal of more than 1%, big for a bond ETF, today.  Investors had been flocking to tax exempt munis since taxes are now expected to go up across the board, so it’s surprising to see the sharp reversal on a day in which the President held a press conference sharpening his stance on the tax issue.  Are investors all of a sudden expecting the tax hit to not be as bad, or are they simply selling any liquid assets they can find to raise cash?  Perhaps there is a fear on the part of investors that any possible deal will include a combination of higher rates and limits on deductions.

The world is passing through peak credit. Total Bonds, BND, and Aggregate Credit, AGG, traded to a new high lower as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened, as is seen in the Flattner ETF, FLAT, rising, and the Steepner ETF, STPP, falling, as the Zeroes, ZROZ, the 30 Year US Treasuries, EDV, and the 10 Year US Government Bonds, TLT, traded higher, and Build America Bonds, BAB, and Municipal Bonds, MUB, HYMB, and closed end municipal bond funds MIW, EIP, rose to new highs. The Interest Rate on the US 10 Year Note, ^TNX, closed lower at 1.59%, turning the Proshares 200% short US Treasury Debt, TBT, and the Direxion 300% short US Treasury Debt, TMV, lower.

It has been the Distressed Investments taken in by the US Federal Reserve, and traded by the Fidelity Mutual Fund, FAGIX, that have provided the seigniorage, that is the moneyness, for the economic and capital recovery beginning in 2009. But beginning in August 2012, the Distressed Investments, FAGIX, have traded lower, taking many forms of credit lower, as is seen in this ongoing Google Finance Chart; with Leveraged Buyouts, PSP, -6%,  Junk Bonds, JNK, -2.5%, International Treasury Bonds, BWX, -1.5%, Senior Bank Loans, BKLN, -1%, Emerging Market Bonds, EMB, -1.5%, and Mortgage Backed Bonds, MBB, -0.5%, lower from their recent highs. The seigniorage, that is the moneyness of the US Federal Reserve and the world central banks is ebbing away.

Commodities, DBC, traded unchanged as Coffee, JO, plummeted, while Natural Gas, UNG, popped higher.

Of note, closed end fund fell strongly as investors sold these instruments short; two leaders, closed equity fund, CSQ, and closed end debt fund, PFL, plummeted.

Mike Mish Shedlock writes Greece allegedly gets time, not money. After forcing Greece into more austerity measures, the next tranche of emergency loans to Greece (most of which will ultimately do a round trip back to Brussels) is now delayed because the path Greece is on is still not sustainable. Greece still requires additional funding of around €32 billion. Germany has said no and the ECB has said no. Please consider the Reuters report Greece to get more time but no immediate aid. Mr Shedlock concludes, Greece needs to come up with another €32.6 billion. One way or another, creditors will have to take another haircut. No amount of hoping, wishful thinking, or delays can change one simple fact: Virtually none of these loans will be paid back. The Troika may as well shift the date to the 12th of never as to 2022.

Bloomberg reports Europe gives Greece two more years to reach deficit targets. Euro area finance ministers gave Greece two extra years to wrestle down its budget deficit, pledging to plug the resulting financing gaps in order to keep the country in the single currency and prevent a renewed flare up of the debt crisis. Finance ministers granted Greece until 2016 to cut the deficit to 2 percent of gross domestic product. They put off until Nov. 20 a decision on how to cover additional Greek needs of as much as 32.6 billion euros ($41 billion) and left unclear whether the International Monetary Fund will continue to contribute. In the latest compromise in three years of crisis fighting, creditors led by Germany opted to keep money flowing to Greece instead of risking a default that could lead to the nation’s exit from the euro and stir more turmoil for countries left in it.

Robert Stevens and Jordan Shilton of WSWS write Euro zone finance ministers demand deeper cuts in Greece. A meeting of euro zone finance ministers on Monday delayed a further 31.5 billion euros in aid to Greece. A meeting of euro zone finance ministers on Monday refused to make a decision on providing the bankrupt Greek state with a further instalment of 31.5 billion euros from the previously agreed bailout. Eurogroup head Jean-Claude Juncker announced that “no definitive decision” would be made at the meeting, despite the passage in the Greek parliament Sunday of a new 13.5 billion euro austerity package. Whilst the European Commission welcomed the new austerity measures, spokesman Simon O’Connor commented, “We’ll still need to analyse in detail the final version of the bill” before any further loans are made available to Greece. Dutch Finance Minister Jeroen Dijsselbloem said, “The Greeks have left a lot of things until the last minute, so we’ll also take the time to consider where we are.” A report issued ahead of the finance ministers’ meeting by the troika, consisting of the European Union, the International Monetary Fund (IMF) and the European Central Bank (ECB), noted the Greek population’s growing hostility towards the austerity measures. It stated, “The key risks concern the overall policy implementation, given that the coalition supporting the government appears fragile and some components of the program face political resistance, despite the determination of the government.” The report estimated that even if Greece met its deficit reduction targets through to 2016, it would still require an additional 32.6 billion euros ($41 billion) in loans.

Stevens and Shilton of WSWS continue This coming Friday, Greece must meet a debt repayment deadline for 5 billion euros owed to the banks. The Greek government plans to issue new bonds Tuesday, repayable in one and three months, to help meet this deadline. It hopes to raise 3.12 billion euros ($4 billion) with the bond issue.In a press statement, EU Economic and Monetary Affairs Commissioner Olli Rehn insisted the figures illustrated the need for austerity to be intensified. “Europe is going through a difficult process of macroeconomic rebalancing, which will still last for some time,” he stated. “Europe must continue to combine sound fiscal policies with structural reforms to create the conditions for sustainable growth.”

Bloomberg reports China stocks fall to 7-Week low on property tax retail concerns. China’s stocks fell to the lowest level in seven weeks after the Xinhua News Agency reported the government may expand a property tax trial and Haitong Securities Co. said retailers may post weak sales this month.

Bloomberg reports Empty offices loom in Sydney as building spree meest bank cuts. Sydney’s office vacancies are set to surge as Lend Lease Group (LLC)’s A$6 billion ($6.2 billion) financial center opens and older buildings are renovated while big tenants including Macquarie Group Ltd. cut jobs. About 400,000 square meters (4.3 million square feet) of space will hit the market in the next five years, including Lend Lease’s Barangaroo redevelopment in the former docklands district, according to UBS AG. That compares with 870,000 square meters added over the past 20 years.

WSWS reporters write 20,000 protest against closure of Ford plant in Genk Belgium.  The closure will throw 4,600 workers at the factory and more than 5,000 employees in related industries out of work. And Daily Echo reports Ford now plans to move production of the new model Ford Mondeos, S-Max and Galaxy’s to Valencia Spain. The council in Genk estimates up to 10,000 jobs, including direct and indirect suppliers in the region’s motor industry, will be affected by the plant closure. The regional economy has already suffered from the GM closure of Opel’s plant in nearby Antwerp in 2010. Ford unveiled its plans to close three factories, including Southampton, Dagenham and Genk, with the loss of 6,200 jobs to stem forecast losses of £1.8billion over the next two years. And USA Today reports Ford plant closing in Belgium could open floodgates. Just two years ago Ford said a then-new four-year contract with Belgian auto workers secures the future for Ford’s Genk factory.

2) … A manifesto for a New Europe will arise out of increasing Eurozone political and economic chaos.

Mike Mish Shedlock writes Accept lower wages or leave the Euro and default. Michael Pettis, writing for Carnegie Europe describes Spain’s unpleasant choices in Spain Will be Forced to Choose. In the great debate over the economy we sometimes forget the simple arithmetic of economic rebalancing. This arithmetic, like it or not, severely limits the options open to Spain.

It is easy and popular to blame the greed of the Spanish and the stupidity of the government for the mess in which Spain has found itself, but the policies Germany put into place in the late 1990s guaranteed that Germany, a country that had run massive trade deficits in the 1990s, would run equally massive trade surpluses in the subsequent decade.

Because once they joined the euro the rest of Europe had no control over the value of their currencies and the level of their interest rates. It was inevitable that European countries that had joined the euro with a higher-than-average level of inflation would be forced to respond to German trade surpluses either by forcing up unemployment or by running the large trade deficits that corresponded to Germany’s trade surplus. No other choice was possible.

These deficits, as a matter of economic necessity, had to be financed with loans from Germany, leaving Spain with an enormous debt burden. Just as Spain could not run a trade deficit without borrowing from abroad, Spain can only repay its debt if it runs a trade surplus. What is more, since rich Spaniards are taking enormous amounts of money out of the country in order to protect themselves from the debt crisis they know is coming, the Spanish trade surplus must be large enough to accommodate both flight capital and debt repayments.

In practice there are only three ways Spain can achieve a sufficiently large trade surplus. The first way requires that Berlin reverse those policies that forced a German trade surplus at the expense of its European neighbors. Berlin must cut taxes and increase spending so much that Germany runs a trade deficit large enough to allow Spain to run the opposite surplus, which it must do if it hopes to repay the debt.

If Germany does not move quickly to reverse its trade surplus, Spain only has two other ways of creating a trade surplus in spite of German recalcitrance. One way requires that Spanish wages are forced down by many years of high unemployment. This will allow Spain to run a sufficiently large trade surplus.

Spain’s second option is to leave the euro and devalue. This will immediately force down prices and wages relative to Germany. Neither option will be easy, but it is important that we realize that if Germany doesn’t adjust, Madrid has no choice but to pick one or the other. Both options will cause debt to soar in real terms, and will probably force Spanish businesses, and even the government into default. But in both cases Spain will begin running large trade surpluses.

As much as leaders in Madrid, Brussels, and Berlin hate to admit it, these are the only three options open to Spain. Any policy proposed by policymakers that is not consistent with one of these three ways will be impossible to achieve.

I relate that Spain will not be lowering wages, and no one is going to be investing in Spain; nor will Spain be leaving the Euro and devaluing, rather a manifesto for a New Europe will arise out of increasing Eurozone political and economic chaos.

Twice in bible prophecy, God’s word reveals ten regional blocs will rise to be the basis of economic and political activity.  First, Daniel 2:30-33, foretells that a ten toed kingdom of regional governance, partially iron, symbolic of diktat, and partially clay, communicating democracy, will emerge from the failure of UK and US global iron hegemony, that has ruled the world since 1776. This will come through Financial Armageddon, that is a global credit and worldwide financial meltdown seen in Revelation 13:3. Secondly, the ten horned beast of regional governance coupled with totalitarian collectivism, will rise from the debt crisis of the Mediterranean Sea nation of Greece, as foretold in Revelation 13:3-4. Greece is the beachhead, linchpin and springboard for the Beast Regime to gain a stronghold in the Eurozone; eventually Germany will rise to preeminence and rule over the peripheral PIIGS in a type of revived Roman Empire as a European Super State is founded on regional framework agreements, manifesting as an authoritarian and ruthless government; not as a Rome based regime, but mean a Brussels and Berlin based regime. Bible prophecy reveals that this minotaur will come to be highly regarded as people will come to proclaim it and even worship, saying who can make war against it; such be labyrinthine, having been intoxicated and tortured by its insurmountable power and authority.

God’s is carrying out his administrative plan, Ephesians, 1:10, designed and executed from eternity past, to raise up a Beast Regime, that is a Beast Empire, to rule the world beginning with the most profligate and anti capitalist country on the Mediterranean Sea. While in exile on the Isle of Patmos, the Apostle John, was given a dream by angels in 90 AD known as the Revelation of Jesus Christ. In Revelation 13:1-4, he presents this monster; it has the form of a leopard, designed for stealth and operation in the shadows; the feet of a bear for pursuing its enemies and for standing against all opponents and rooting out all opposition; and the mouth of a lion for crushing, ripping and tearing all it seeks to devour. The paving stones for the Road To Serfdom are coming from the quarry of cradle of democracy, that is from the first democratic country of Greece, as now seafaring gypsies and ruthless communists and socialists have formed a government and created a constitution that is bedeviling all global authority and is leading to the downfall of European Socialism and Crony Capitalism. Of note, EUObserver reports that Europe wants to somewhat promote its mythological roots and plans to put picture of woman who rode the beast on Euro Notes having both security and decorative features. “Portraits have long been used in banknotes around the world and research has shown that people tend to remember faces. Is there any better figure than Europa to serve as the new face of the euro?” the chief of the ECB, Mario Draghi, said. She will first appear on the €5 note in May, with other notes introduced in ascending order in the next few years. Europa’s face will be shown as a watermark and as a hologram. The ties are to Greco-Roman mythology where the Phoenician princess Europa was abducted and raped by the king of the gods, Zeus, and also have an ominous Biblical reference. Euroland will be the first toe, of a ten toed global kingdom featuring regional governance replacing sovereign nation states where diktat not choice rules, Daniel 2:41-43; Europe will rise up, make a deal with the harlot woman of Revelation 17:3-9, 18, and become the preeminent end time Beast power of Revelation 13:1-4. A statue of the immodest female Europa riding a beast is also in front of the EU Council of Ministers Office in Brussels, Belgium. Sadly, people have not made the connections between the Bible and Europa; what will ultimately rise up in Europe is not what rationale people should ever want. Church of God Writer relates Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Using the Tower of Babel and “Beast” images suggests it is not concerned about its role as being part of the future Babylon of Bible prophecy.

God has given His Son, Jesus Christ all sovereignty, 1 Corinthians, 15:24, Colossians 1:16, Colossians 1:17.  He is at the helm of the economy of God, Ephesians 1:10, pivoting the world from prosperity, that was underwritten by carry trade investing and the issuance of debt under the Milton Friedman Free To Choose Floating Currency Regime, to absolute ruin that will require universal debt servitude in what the bible presents as the Beast Regime, Revelation 13:1-4. Choice was the epitaph on the tombstone of the past era of debt based prosperity; diktat is the billboard of the new era of austerity and debt servitude. Christ’s objective is to introduce His global empire, Isaiah 9:6-7, Isaiah 11-2-3, with headquarters in Jerusalem, Isaiah 2.24, Isaiah 18:7, where he will rule for a thousand years, Revelation 11:15 and Revelation 20:4-5. This Millennial Kingdom on planet earth will be one of great prosperity of many types, Isaiah 35:3-10.

The US Dollar, $USD, UUP, has been rising since September 14, 2012, as competitive currency deflation, that is debt deflation is underway. The world major currencies, the South African Rand, SZR, the Euro, FXE, the Swedish Krona, FXS, the Canadian Dollar, FXC, the Swiss Franc, FXF, the British Pound Sterling, FXB, the Japanese Yen, FXY, the Indian Rupe, ICN, the Australian Dollar, FXA, and emerging market currencies, CEW, are falling in value, from their recent September 2012, to October 2012 highs, on the exhaustion of the world central banks’ monetary authority. And of significant note, the Japanese Yen, FXY, plummeted on Thursday November 15, 2012

Neoliberal seigniorage, that is moneyness, of the nation states is failing, as the sovereign authority of nation states is ebbing away.

Soon neoauthoritarian seigniorage, that is the moneyness of regional sovereign bodies, such as the ECB, will rise to empower economies regionally, as the diktat of authoritarians operating through regional framework agreements replaces the choice of investment bankers and world central bankers.

The dynamos of neoliberalism were global growth, global trade, and corporate profit; these are now winding down crony capitalism and European Socialism. The dynamos of neoauthoritarianism are regional security, regional stability, and regional sustainability; these are now powering up regionalization, where regional economic and trading blocs or zones will form in all of the world’s ten regions.

The fiat money system will be replaced by the diktat money system, where diktat serves as both currency and credit.

Concomitant with the founding of the United States of America, God has developed federalism, and has promoted federalists, to the dismay of libertarians who see themselves as sovereign individuals, who advocate liberty and strive for the right to use private property without state intervention. These believe that cutting taxes, shrinking the size of governments, removing the restrictions on businesses to operate, and lowering wages, and even leaving the Eurozone to establish their own currency, will cure the European Crisis.  But the matter is two fold, first insolvency, and second a massive trade deficit with Germany. Insolvent sovereigns, GREK, EWI, EWP, and insolvent banks, EUFN, are intertwined throughout Europe, as HistorySquared writes, Link between banking crises and sovereign debt crises and cannot be redeemed by any method such methods; and Germany is such an industrial powerhouse, that no European country can be reorganized enough to out compete it as Germany is light years ahead of all others in technology and skilled labor; no one, that is nobody, is going to be investing in factories in Spain as Robert Wenzel suggests in The Crack-Up of the Eurozone  detailed in one chart of Eurozone economic production.  Keep in mind that Greece is in such bad shape that it didn’t even make this Haver Analytics chart. Only Germany of the EZ Big 5 is showing positive industrial production over the last 7 plus years. Germany will not be able to bail everyone else out.

The greatest federalist of all times was Milton Friedman with his Free To Choose economic doctrine which created a federation, that is a cartel, of world central and investment bankers. In the banker floating currency regime, the securitization of carry trade investing and debt soared, as the US Dollar sank and major world currencies and emerging market currencies floated and a global debt trade flourished. His doctrine was the catalyst for the greatest liberation movement of all time, as it set investors and bankers free to make stellar profits and amass great fiat wealth who came to live on Connecticut’s Gold Coast and the Upper East Side Manhattan rivaling Chicago’s Near North Side and Streeterville.

Neoliberal legends include Alan Greenspan, the pimp of credit liquidity, and Ben Bernanke, the marshal of monetary easing; these titans, men of renown, are like the Nephelim, to whom the Lord referred saying, as it was in the days of Noah, so it shall be in the days of the coming of the Son of man; because of their iniquity, a second deluge of global earthquakes and tsunamis will sweep over the earth, immediately prior to the Lord’s Advent Call at His Second Coming, Revelation 14:14.

Democracy in Europe was the past; European Federalism is the future. Angela Merkel is much like John the Baptist, a precursor, a forerunner and herald of one greater and something greater. God has appointed her the announcer of a king and an empire; she is God’s workhorse for a soon coming One Euro Government; a federal Europe is on the way.  Ambrose Evans Pritchard writes Angela Merkel sticks to austerity script in Portugal as revolt builds.  German Chancellor Angela Merkel braved hostile crowds in Portugal on Monday to show unflinching support for the country’s austerity ordeal and plead for patience as social cohesion frays. Reuters reports Anti austerity strikes sweep Europe. Police and protesters clashed in Spain on Wednesday as millions of workers went on strike across Europe to protest spending cuts they say have made the economic crisis worse. Christoph Dreier of WSWS writes SYRIZA leader Tsipras offers his services to the troika. Under conditions of growing popular resistance to austerity, SYRIZA leader Alexis Tsipras is preparing to succeed the unstable government of Greece in order to suppress workers’ protests.

Thomas J. DiLorenzo, author of the books,  The Real Lincoln and Lincoln Unmasked, asks in Economic Policy Journal Plan on seeing the Movie Lincoln? The “Union” was saved…geographically; the spirit of self-determination and decentralization was crushed.

There is waiting in the stage of Europe’s wings, the most capable of sovereigns. Soon the Almighty Lord God, Ephesians, 1:1-23, will open the curtains, and into the limelight will step the Sovereign, the EU’s Leader, Revelation 13:5-10; and he will be accompanied by the Seignior, the EU’s Finance Minister, Revelation 13:11-18. Yes, a king and monetary pope are coming to rule Europe. The word, will and way of these two will be the rule of law replacing all historical and constitutional law; these will be the greatest tyrants that the world has ever seen.

Bible prophecy of Daniel 7:8, describes Europe’s leader as the Little Horn, that is one of seemingly little authority. Candidates for the Sovereign include Olli Rehn, Herman van Rompuy, Jean-Claude Juncker, Wolfgang Schaeuble, and Guido Westerwelle, who in an interview with Le Figaro, said, “We need to discuss without taboos the ways to strengthen Europe and make it more effective and capable to act.” And Daniel 8:23, communicates that the Eurozone leader will be one skilled in schemes, specifically regional framework agreements.

Candidates for the Seignior include Jens Weidmann and Mario Draghi.

In conclusion, six notes.

First note, Christ is at the helm of the economy of God, Ephesians 1:10, and is pivoting the world from prosperity to utter ruin so as to introduce his Millennial Kingdom on planet earth where He will be ruling from Jerusalem, giving a Sabbath’s Rest to all of mankind as He naturally produces prosperity of all types; harmony, creativity, and splendor will flow over the entire planet.  To accomplish His transition aims, Christ has has unleashed The First Horseman of the Apocalypse, Revelation 6:1-2, to pass the baton of sovereignty from failed nation states to sovereign bodies and and sovereign leaders, who will announce regional framework agreements, waive national sovereignty and pool sovereignty regionally. The other Three Desolators will follow to destroy all current forms of economic and political life; all of mankind’s institutions must be shown to be completely unsustainable as they have originated from knowledge and experience in the Tree of Good And Evil, and not In The Tree of Life, which is Christ Himself.

Second note, Austrian economic philosophical doctrine is as subjective as Socialism. The apostle Paul communicates in Ephesians 4:17, that the only objective truth is Christ, and that His word serves as the basis of reality, Ephesians 4:24, and that Christ is one’s all inclusive life experience, Colossians 3:11.  There is neither human action, nor sovereign individuals, as perceived by libertarians, there is only the action of the Sovereign Lord God. The word sovereign means ruler. The word authority means power to command, influence and judge. Psalm 146:6 and Ezekiel 28:1 reveals that God is sovereign. The sovereignty of God is also seen in, Psalm 24:1, Nehemiah 9:6, Joshua 2:11, Daniel 2:21. Scripture reveals that God is sovereign in the affairs of man, Psalms 107:19,  Revelation 1:1, Revelation 2:26-27, Revelation 6:1-2. There is only the Present Truth that is from understanding and having identity and experience out of the like precious faith of Jesus Christ, and manifesting in virtue, the moral excellencies of God, 2 Peter 1:1-12, and the truth of Bible Prophecy to guide economic, political, and personal experience.

Third note, there are only two types of people, the elect and the fiat. The elect, 1 Peter 1:2, are God’s chosen ones, Colossians 3:12, Ephesians 1:4, who have experience out of His sovereign will, 2 Corinthians 5:17-18, manifesting spiritual nature; whereas the fiat have mandate out of debased human experience, that is out of will worship, Colossians 2:23, manifesting carnal nature. Libertarians seek liberty; Robert Wenzel features Ron Paul Farewell Speech Quotes That Should Go Down in History  and also writes Ron Paul’s Farewell Speech to Congress, where he relates, Freedom, and not dependency, provides the environment needed to achieve these goals. Government cannot do this for us; it only gets in the way. Our Constitution, which was intended to limit government power and abuse, has failed.  The Founders warned that a free society depends on a virtuous and moral people.  The current crisis reflects that their concerns were justified.

Most politicians and pundits are aware of the problems we face but spend all their time in trying to reform government.  The sad part is that the suggested reforms almost always lead to less freedom and the importance of a virtuous and moral people is either ignored, or not understood. The new reforms serve only to further undermine liberty.  The compounding effect has given us this steady erosion of liberty and the massive expansion of debt.  The real question is: if it is liberty we seek, should most of the emphasis be placed on government reform or trying to understand what “a virtuous and moral people” means and how to promote it. The Constitution has not prevented the people from demanding handouts for both rich and poor in their efforts to reform the government, while ignoring the principles of a free society. All branches of our government today are controlled by individuals who use their power to undermine liberty and enhance the welfare/warfare state-and frequently their own wealth and power. If this is true, our individual goal in life ought to be for us to seek virtue and excellence and recognize that self-esteem and happiness only comes from using one’s natural ability, in the most productive manner possible, according to one’s own talents.

Productivity and creativity are the true source of personal satisfaction. Freedom, and not dependency, provides the environment needed to achieve these goals. Government cannot do this for us; it only gets in the way. When the government gets involved, the goal becomes a bailout or a subsidy and these cannot provide a sense of  personal achievement.

Achieving legislative power and political influence should not be our goal. Most of the change, if it is to come, will not come from the politicians, but rather from individuals, family, friends, intellectual leaders and our religious institutions.  The solution can only come from rejecting the use of coercion, compulsion, government commands, and aggressive force, to mold social and economic behavior.  Without accepting these restraints, inevitably the consensus will be to allow the government to mandate economic equality and obedience to the politicians who gain power and promote an environment that smothers the freedoms of everyone. It is then that the responsible individuals who seek excellence and self-esteem by being self-reliance and productive, become the true victims. The #1 responsibility for each of us is to change ourselves with hope that others will follow.  This is of greater importance than working on changing the government; that is secondary to promoting a virtuous society.  If we can achieve this, then the government will change.

It doesn’t mean that political action or holding office has no value. At times it does nudge policy in the right direction. But what is true is that when seeking office is done for personal aggrandizement, money or power, it becomes useless if not harmful. When political action is taken for the right reasons it’s easy to understand why compromise should be avoided. It also becomes clear why progress is best achieved by working with coalitions, which bring people together, without anyone sacrificing his principles.

Political action, to be truly beneficial, must be directed toward changing the hearts and minds of the people, recognizing that it’s the virtue and morality of the people that allow liberty to flourish. The Constitution or more laws per se, have no value if the people’s attitudes aren’t changed. To achieve liberty and peace, two powerful human emotions have to be overcome.  Number one is “envy” which leads to hate and class warfare.  Number two is “intolerance” which leads to bigoted and judgmental policies.  These emotions must be replaced with a much better understanding of love, compassion, tolerance and free market economics. Freedom, when understood, brings people together. When tried, freedom is popular. The problem we have faced over the years has been that economic interventionists are swayed by envy, whereas social interventionists are swayed by intolerance of habits and lifestyles. The misunderstanding that tolerance is an endorsement of certain activities, motivates many to legislate moral standards which should only be set by individuals making their own choices. Both sides use force to deal with these misplaced emotions. Both are authoritarians. Neither endorses voluntarism.  Both views ought to be rejected. I have come to one firm conviction after these many years of trying to figure out “the plain truth of things.”  The best chance for achieving peace and prosperity, for the maximum number of people world-wide, is to pursue the cause of liberty.

My response to Dr. Paul is that I encourage one to recognize that Anomic Breakdown Presents The Opportunity To Discover Genuine Freedom, That Being Freedom To Become A Child Of God And Mature In The Identity Of Christ.  Rather than trust in oneself, and hope for freedom, I encourage one believe in what Witness Lee calls The Economy of God, and call upon the Name of the Lord for salvation, and thus be set free from sin, that is doubt, and its consequence being death, to know the only right there is:  “To as many as receive Him, to those who belive in His Name, He gives the power to become a child of God”, John 1:12.  I do not want liberty. I have liberty in Christ to manifest in grace and truth, John 1:17.  In fact I am a doulos or bond servant of Christ; one totally at the Master’s disposal and even expendable.  I want no constitution or any law except Christ, as He is my all in all, Colossians 3:11, meaning that He is my all inclusive life experience.   R.J. Krejcir asks Are We Slaves For Jesus Christ?  Discover that you are His property and that this is good. You are paid in full; your relationship in Christ is secured and vital, Matthew 20:28;  Mark 10:45;  Acts 20:28;  Romans 3:23-25;  1 Corinthians 6:20, 7:23,  Galatians 2:20; 3:13,  Ephesians 1:7;  Philippians  3:1-14;  Titus 2:14;  Hebrews 9:12; 1 Peter 1:18-19;  1 Peter 2:9;  Revelation 3:20; 5:9.  One might consider reading Four Sources To Determine One’s Rights.

Fourth note, Christians have morals, which come from the virtue of God, 2Peter 1:1-15, and have ethics, that is relationships with others, that also come from the character of God, Colossians 3: 1-25.

Many in this world have an agenda to acquire power over others, this is the very definition of psychopathy. Spencer Acerkman writes How I was drawn into the Cult of David Petraeus.  When Petraeus got command of the Iraq war in 2007, I blogged that it was all a tragic shame that President Bush would use Petraeus, “the wisest general in the U.S. Army,” as a “human shield” for the irredeemability of the war. And whatever anyone thought about the war, they should “believe the hype” about Petraeus.

And many in this world are libertine, another characteristics of psychopathy. Robert Wenzel writes Paula Broadwell, General Patreaus Biographer.  Jason Cherkis and Christina Wilke of Huffington Post writes Jill Kelley, woman who sparked petraeus scandal, ran questionable charity.  Based out of the couple’s mansion, the Doctor Kelley Cancer Foundation claimed on its tax forms that it “shall be operated exclusively to conduct cancer research and to grant wishes to terminally ill adult cancer patients.” By the end of 2007, the charity had gone bankrupt, having conveniently spent exactly the same amount of money, $157,284, as it started with — not a dollar more, according to its 990 financial form. Of that, $43,317 was billed as “Meals and Entertainment,” $38,610 was assigned to “Travel,” another $25,013 was spent on legal fees, and $8,822 went to “Automotive Expenses.” The Kelleys also listed smaller expenses that appear excessive for a charity operating from a private home, including $12,807 for office expenses and supplies, and $7,854 on utilities and telephones.  Elaine Meinel Supkis writes Patreaus Mistress #2 had fake charity. Even the friendly FBI agent called by this wild spending tax cheating female got involved in the wild sex by sending half nude photos of his hunk body to her!  It is like they all lost their minds. Over and over again, apologists in the media (especially the Zionists ones) say that if Bill Clinton can have sex why can’t they all?  Then they turn around and push for draconian laws cutting our access to abortions, sex education, gay marriage or gay sex or whatever.  This is a total moral and mental collapse on the right and it is like Alzheimer’s: as the brain deteriorates, the people do stranger and stranger things are are more uninhibited.

Robert Wenzel asks in Economic Policy Journal Did the Generals have any time to manage the wars?  and writes Wow, check out the background of the Twin’s Ex-Husband and asks So what’s up with these hot and loony gals, Jill Kelley and her twin sister, who hang in top circles of the US military?   and relates Patreaus Angels who scheduled community outreach events get security clearances pulled.

All, yes everyone, involved in the scandal have antisocial personalities; that is they are psychopaths and sociopaths, as one can compare the Wikipedia definition of psychopathy with their behavior; it matches 100%. Men are twice or three times to be psychopaths; but women can be psychopaths as well. Internet sources say these disturbed people occupy four percent of the population, but I think the percentage is twelve percent, meaning that women psychopaths make up four percent of the population. One might think I am wealthy, but I am very low income, and my life has been one of continual contact with psychopaths, who get satisfaction from being a busy body in my activities, by being confrontational, by being rude, by being lout and communicating with me when I have no desire for communication, by saying and doing mean and crazy things, and by being in my social circle manifesting preeminent, ruling over me. One woman in my apartment building is quite antisocial, she has a foul mouth, and thank God, she keeps to herself. I know another woman who despite getting a $700 month disability check, and food stamps, continually makes a scene and shoplifts. And I know another who was a manizer, sleeping around, until she found a guy who works in a manufacturing facility; all he wanted was a woman to prepare meals for him and have sex with him; last time I heard she went out to buy a sofa, and switched the price tags to get a lower price. I go to the public library to blog, they have hired a social guard, one who moderates the behavior of patrons; his job is to tell people to calm down if they act up in the computer area; if they get totally out of hand, he turns off their one hour of computer time. When not active, many psychopaths hang out in coffee shops. I encourage that one visit one or two of the Big Name Coffee shop on the main street in your city; simply go in the door and appear to be looking for someone; check out the men sitting there, they are simply hanging out, waiting to go back to their hen house to check on their prey; psychopaths are the predators, and the rest of us are the prey.

Michael Schmidt and Sheryl Gay Stolberg of the NYT write Tampa Is Seen as Social Link for Unfolding Scandal.   I write that the two women at the center of the imbroglio are harpies, that is winds who carry the souls of men away; these mean tempered shrewish women played the Gotcha Game with cleverness, even to the point of risking all. Psychopaths are simply born this way or have unresolved childhood issues. They can be charming socially, educationally, or occupationally, when they find it in their interest to be so. They learn by mimicking. They have neither noble morals or good ethics; they are chameleons and shape shifters who appear reasonable and helpful; but have no genuine virtue as they are guided by their own rules, which they never ever disclose to anyone; and when some violates them, all hell breaks loose, anger explodes and confrontation breaks out. Life satisfaction comes from vanquishing others; and memories of defeated individuals are treasured like metals of valor; sex if practiced, is simply a means to an end.  These individuals often literally come out of the woodwork. They are often self appointed community sheriffs presiding over their territory, or are social leaders in the community who seemingly have the interest of others at hand, but are power hungry, self promoting, preening individuals. To the alert, these individuals are easily seen for who they are, as they have a jacket that reads preeminent, a badge of social service, an arm band that shows rude, a mouth that speaks loudly, slacks that communicate intrusive, and sandals that have a busy body label.  Jack D. Douglas asks in Lew Rockwell Is a military coup in the works? And Andrew Napolitano writes in Lew Rockwell Silencing Petraeus.  

Fifth note, the golden bowl is broken and the silver cord is loosed; the global debt trade is history, and carry trade investing is no longer profitable. The result is that the economic cycle is pivoting from the Fall Season of Investment Maturity to Kondratieff Winter. Reuters writes Banks seen shrinking for good as lay-offs near 160,000.  Major banks have announced some 160,000 job cuts since early last year and with more lay-offs to come as the industry restructures. A Eurodammerung, the twilight of sovereign nation states and banking is at hand; out of their destruction will come the New Europe, with its European regional governance, and a new money system, the diktat money system, where diktat serves as both currency and credit.

Sixth note note, there is no choice, there is only destiny. Choice is an illusion on the neoliberal highway of debt; and choice is also the figment of imagination in the Austrian economic construct.  Fate is all there is, 2 Corinthians 5:17-18.

3) … In Real Estate News

Robert Wenzel of Economic Policy Journal reports Orange County, CA home buying jumps 40% to 7-Year High. California saw the completion of 3,148 purchases last month, up 40.5% vs. the previous year and the busiest October since 2005, according to DataQuick. The median selling price came in at $455,000, that is 12.3% higher than a year earlier and the highest price for any month in four years.

4) … In The News

Los Angeles Times reports Hostess Brands Inc. go out of business, lays off 18, 500.

Daily Ticker relates Ralph Nader’s seventeen solutions to turn the U.S. around.  The famed consumer advocate and former Green Party presidential candidate discusses his more economic-centric ideas.

Bloomberg reports Ranks of poor Americans at record high even with aid. The ranks of poor Americans remained at a record high number last year, even after government-aid programs such as food stamps, housing vouchers and heating subsidies were included, the U.S. Census Bureau said today. The bureau said 49.7 million Americans, or 16.1 percent, are in poverty, up from 49.1 million, or 16 percent, in 2010, according to a new measure the government is using to supplement the official figures released in September. The new method, designed to offer a more comprehensive measure of poverty, includes government aid as income, while subtracting child-care costs, work-related expenses and medical out-of-pocket fees. The official measure, which includes only pretax cash income and is used to determine eligibility for aid programs, put the poverty rate at 15.1 percent, the bureau said.

Hope Yen of AP reports New census gauge shows high of 49.7M poor in US.  The ranks of America’s poor edged up last year to a high of 49.7 million, based on a new census measure that takes into account medical costs and work-related expenses.  The numbers released Wednesday by the Census Bureau are part of a newly developed supplemental poverty measure. Devised a year ago, this measure provides a fuller picture of poverty that the government believes can be used to assess safety-net programs by factoring in living expenses and taxpayer-provided benefits that the official formula leaves out. Based on the revised formula, the number of poor people exceeded the 49 million, or 16 percent of the population, who were living below the poverty line in 2010. That came as more people in the slowly improving economy picked up low-wage jobs last year but still struggled to pay living expenses. The revised poverty rate of 16.1 percent also is higher than the record 46.2 million, or 15 percent, that the government’s official estimate reported in September. Due to medical expenses, higher living costs and limited immigrant access to government programs, people 65 or older, Hispanics and urbanites were more likely to be struggling economically under the alternative formula. Also spiking higher in 2011 was poverty among full-time and part-time workers. As a result, the portrait of poverty broken down by state notably changes. California tops the list, hurt by high housing costs, large numbers of immigrants as well as less generous tax credits and food stamp programs to buoy low-income families. It is followed by the District of Columbia, Arizona, Florida and Georgia. In the official census tally, it was rural states that were more likely to be near the top of the list, led by Mississippi, New Mexico, Arizona and Louisiana.

Claudine Zap of The Ticket writes Election graphics show how Obama won. Click imate to see slide show of how maps break down how Obama won. The presidential election is over, and now there are some cool tools to show just how Barack Obama won re-election. One that’s getting plenty of attention on the Web is a new take on familiar image maps.  The series of graphics show the election results illustrated by population, not geography. Republicans were surprised by the win. Many had assumedwronglythat young people wouldn’t come out as much as they did in 2008. The New York Times graph shows that not only did Obama nab young voters, but also that the numbers of young voters who voted for Obama actually increased from 2008. While white male voters supported the Republican candidate, Mitt Romney, Obama held his support with women, increased his support with Hispanic voters, and improved young voter turnout where it mattered: in the swing states. For serious political junkies, another graphic from the New York Times shows lots of fun facts about how voter groups since 1972 have swayed election results.

SFGate and AP report Wake Forest Baptist Medical Center, an academic medical center located in Winston-Salem, NC, and the largest employer in Forsyth County to eliminate 950 jobs.

Signposts of the Times relates There Will Be War In The Middle East.  Bible prophecy in several places warns that there will be a series of battles and wars at the end of days.  These wars escalate in scale until the war to end all wars, Armageddon, closes out the seven year Tribulation period.  The first of these wars which is described in Psalm 83, Isaiah 17 and the book of Obadiah, tells us that the bordering Arab nations of Israel will align together in an attempt to wipe the Jewish nation off the earth, and replace it with another Arab nation, Palestine. The second war is the Gog Magog war, Ezekiel 38, which will  see a Russian led alliance of Muslim nations from North Africa, the Middle-East, and Central Asia, come against Israel in a horrific war, which will see the deaths of millions of troops. The final war is that of Armageddon, Revelation 16, which will see the armies of all the nations of the world, gather in the valley of Megiddo.

CNN relatesLaid-off Hostess workers face tough job market.  Hostess Brands is cutting more than 18,000 jobs as it closes its doors for good. Those workers may find it tough to find new work.

Isabel Reynolds and Takashi Hirokawa of Bloomberg report Japanese Prime Minister Yoshihiko Noda will dissolve parliament tomorrow, triggering an election that polls show his party will lose three years after ending the Liberal Democratic Party’s (LDP) half-century grip on power.  The ruling Democratic Party of Japan decided the national vote for the lower house will be held Dec. 16. An LDP win would reinstate Abe, who advocates a tougher policy toward China and greater central bank monetary stimulus, to the premiership he quit in 2007 after 12 months. An election means three of Asia’s four largest economies will have new governments in 2013. South Korea’s vote for president is Dec. 19, with the winner taking office in February. The lower house today approved the bill to issue 38.3 trillion yen ($477bn) in debt to cover about 40% of government spending for the year ending in March, and the opposition-controlled upper chamber will vote tomorrow.  The yen, FXY, today sank to a six-month low against the dollar after Abe called on the Bank of Japan to provide unlimited monetary stimulus until deflation is overcome. The next government will get a chance to reshape the central bank’s leadership, with Governor Masaaki Shirakawa’s term scheduled to end in April and his two deputies’ tenures set to end in March.”

Shaun Richard relates, I am discussing negative interest rates acrosss the board as opposed to taxes which mimic that effect or rates just for foreign players. I relate this is a very much needed discussion. Japanese Banks, SHG, MFG, MTU, and SMFG, are driving Japan, EWJ, lower from September 14, 2012, as is seen in this ongoing Yahoo Finance Chart, and Brazil Banks, BSBR, ITUB, and BBD, are driving Brazil, BRF, EWZS, EWZ, lower, as is seen in this ongoing Yahoo Finance Chart. Japan Government 10 Year Bonds are trading at 0.73%. I fully expect Japan Shares, EWJ, which jumped 1.2% this week, to fall lower and the Japanese Interest rates to soar, as no one outside of the Japanese banks will buy into Unlimited QE.


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