Archive for March, 2013

The World Achieves Peak Sovereignty, Prosperity, Money, And Currencies …. Soon The Diktat Money System Will Arise Out Of A Financial Apocalypse Stemming From Europe’s Nordic Latin Ethical Divide

March 11, 2013

Financial Market Report for the week ending Friday March 8, 2013

1) … On Tuesday, March 5, 2013, World Stocks, VT, rose largely on US based stocks; sectors rising strongly included:
Solar Energy, TAN, 2.3%
Small Cap Energy, PSCE, 2.1%
Semiconductors, XSD, 2.1%
Too Big To Fail Banks, RWW, 2.0%, a new high
Automobiles, CARZ, 1.9%
US Infrastructure, PKB, 1.8%, a new high, includes companies such as those in this Finviz Screener.
Transportation, XTN, 1.8%, a new high
Small Cap Industrials, PSCI, 1.8%,
Home Construction, ITB, 1.7%
Global Producers, FXR, 1.6%
Energy Service, OIH, 1.6%
Industrial Office REITS, FNIO, 1.6%
Global Engineering, Design, and Build, FLM, 1.6%,
Aerospace and Defense, PPA, 1.6%,
Business Services, seen in this Finviz Screener, 1.4%
Airlines, FAA, 1.4%, a new high
Retail, XRT, 1.3%, a new high
North American Software, IGV, 1.2%, a new high
Biotechnology, XBI, 1.1%, a new high
Networking, IGN, 1.0%
World Banks, IXG, 1.0%
Internet Retail, FDN, 0.9%, a new high
Consumer Discretionary, IYC, 0.8%, a new high
IPO’s, FPX, 0.7%, a new high
Paper and Wood Producers, WOOD, 0.7%, a new high
Consumer Staples, KXI, 0.6%, a new high
Utilities, XLU, 0.5%, a new high

Brian Louis of Bloomberg reports Prices for U.S. commercial property are expected to climb in the next six months, extending a rebound that has sent values close to levels reached at the market’s peak in 2007, according to Green Street Advisors. Prices climbed 1% in February and are within 1 percentage point of their August 2007 high. The chart of Office REITS, FNIO, shows a 1.6% gain on the day, 9% gain y-t-d, and 18% gain in the last year.

North American Software, IGV, rising included MSFT, INTU, CRM, CDNS, N, WDAY, ADBE, N, PLUS. CVLT, MANH, ADSK, ORCL. Internet Retail, FDN, rising included EQIX, YHOO, GOOG, AMZN, TRIP, GSOL, OPEN, AOL, WWWW, SFLY, VCLK. Biotechnology, XBI, rising included, CELG, AMGN, GILD, BIIB.

Yield bearing sectors rose strongly; these included Dividend Appreciation, VIG, 0.9%, Dividend Excluding Financials, DTN, 0.8%, Mortgage REITS, REM, 0.7, US Real Estate, IYR, 0.7%, Small Cap Real Estate, ROOF, 0.6%, Utilities, XLU, 0.5%; Dividend Growth, VIG, all of these to new highs.  Dividend paying large cap growth industrial stocks rising strongly included Verizon, VZ, Disney, DIS, Boeing, BA,General Electric, GE, 3M, MMM, United Technologies, UTX, Whirlpool, WHR,  Chevron, CVX, Cisco Systems, CSCO,

Utilities rising strongly included DUK, XEL, WEC, LNT, POR, DTE, AEP,  PNW, CNL, UNS, BKH, NEE.  Chinese Utility, HNP, whose price is supported by the PBOC jumped to a new high.

Despite World Stocks, VT, and Small Cap Nation Investment, IFSM, rising to new highs, Nation Investment, EFA, Emerging Markets EEM, also rose, but closed below their recent highs.

2) … On Wednesday, March 6, 2013, World Stocks, VT, traded unchanged, sectors rising included:
Creditor Services, seen in this Finviz Screener, 0.6%
Business Services, seen in this Finviz Screener, 0.3%. Companies that have performed well in the last six months include USAT, ENOC, FLT, FNGN, TISI, ICGE, DLX, MMS, and ADS
Steel, SLX, 2.4%,
Mining. PICK, 1.4%
Copper Mining, COPX, 1.3%
Small Cap Energy, PSCE, 1.1%
Automobiles, CARZ, 1.0%
Networking, IGN, 0.7%,
Pharmaceuticals, XPH, 0.5%, new rally high
Leveraged Buyouts, PSP, 0.4%, new rally high
Small Cap Industrials, PSCI, 0.4%, new rally high
Homebuilding, ITB, 0.2%, new rally high
Regional Banks, KRE, 0.3%, new rally high
To Big To Fail Banks, RWW, 0.2%, new rally high

The chart of US Stocks, VTI, shows a 1.2% blast higher; and Global Producers, FXR, rose 0.3%, as US Based Companies, Banks and Asset Managers rallied strongly; these included:
Investment Banking, JPM,
Industrial Textiles, MHK
Industrial Gases, ARG,
Communications Equipment, QCOM, MSI, ARRS
Home Improvement Stores, HD, PIR, FBHS, LEG, LL,
General Building Materials, APOG, TREX, BECN, MAS
Railroads, ARII, WAB,
Heavy Construction, MTZ,
Contractors, EME
Small Tools, SNA, LECO, SWK, TTC
Industrial Equipment Distributors, DXPE, WCC, AIT,
Industrial Equipment, WTS, NPO, HEES, CIR, B, PH,
Industrial Electrical Equipment, AOS, AME, ETN,
Metal Manufacturing, WOR, VMI
Semiconductors, TXN, MU
Paper, BZ, KS, CLW, IP,
Packaging, MWV, PKG, GPK, SEE
Timber, PCL,
Aerospace, BA, BEAV
Appliances, WHR, LII
Diversified Machinery, CFX, IEX, MIDD, BGG, GE, FLS, XYL, ITT, AVY, PLL,
Consumer Discretionary, VMED, TWX, CMCSA, VIAB, AOL, DISCA,
Recreational Vehicles, WGO
Cement, TXI, EXP
Toys, MAT
Advertising Agencies, LAMR, IPG, OMC
Radio Broadcasting, SIRI
Data Storage, SNDK
Information Technology, CSC, VRTU, IT
Chemical Manufacturers, GRA, ECL
Scientific Instruments, ROP, BMI, BRKR, AFFX, FEIC
Dig and Dirt Moving Stocks, CR, MTW

Gold and Silver Mining Stocks, GDX, GDXJ, SIL, SILJ, seen in this Finviz Screener rose strongly as Gold, GLD, rose, 0.6%, and Silver, SIL, rose 3.6%.

LED Manufacturer, CREE, blasted higher as GreenTech Media reports Lighting milestone: Cree unveils warm white LED for less than $10

Japan Small Caps, JSC, Japan, EWJ, and Hedged Japan, DXJ, rose strongly highe; and Phillippines, EPHE, and Thailand, THD, rose to new highs, as UltraShort the Yen, YCS, rose vertically.

Major World Currencies, DBV, rose, to its former high, being taken higher by the US Dollar, $USD, UUP, and being taken higher by World Stocks, VT, and US Stocks, VTI, which both rose higher. Emerging Market Currencies, CEW, continued lower from its recent high.

Under liberalism debt became money, that is wealth, and debt was used to create even more money.  The Liberty Crier presents the YouTube Paul Grignon’s 47-minute animated presentation of “Money as Debt” which tells in very simple and effective graphic terms what money is and how it is being created. It is an entertaining way to get the message out. The Cowichan Citizens Coalition and its “Duncan Initiative” received high praise from those who previewed it. I recommend it as a painless but hard-hitting educational tool and encourage the widest distribution and use by all groups concerned with the present unsustainable monetary system in Canada and the United States.

PowerShares Leveraged Buyouts, PSP, is an example of how Liberalism’s Asset Managers, which also includes Blackrock, BLK, Waddell and Reed, WDR, Eaton Vance, EV, State Street, STT, and Wisdom Tree Investments, WETF, coined debt as wealth. A current LBO example is seen in the Reuters report KKR to Acquire Gardner Denver for $3.74B.

Sridhar Natarajan of Bloomberg reports U.S. loan funds recorded $1.1 billion of inflows this week, extending their position as the best-performing asset class of 2013, according to Bank of America Corp.  Investors added to record-setting deposits into funds that purchase floating-rate debt in January and February. The holdings have seen assets expand by 14% this year. The price of leveraged loans climbed to 97.85 cents on the dollar yesterday, the most since July 2007.

Kristen Haunss of Bloomberg reports Collateralized loan obligations paying the lowest rates in five years are being snapped up by investors, providing the fuel that’s contributing to the biggest surge in corporate buyouts since before the financial crisis.  The top-rated portion of a $420 million CLO sold by a unit of Prudential Financial Inc. paid interest at 110 bps more than the London interbank offered rate, the least offered on slices rated AAA since February 2008. About $19 billion of CLOs have been sold this year, following sales of $52.6 billion in 2012 that were the most since the peak of $94 billion in 2007.

Another example of debt becoming wealth is carry traded investment leveraging up of corporations with high Long Term Debt To Equity Ratios, these include DENN, CPSS, HEES, ADS, CAR, LBTYA, FUN, ETE, SBAC, MAS, DNKN, AIV, KBH, NEE, TAL, CLX, FSM, PKOH, OI, SPG, RJET, NMR, SFI, TSLA, PT, CYH, HMA, S, SPB, NXPI, MTW, AEPI, TEF, ANGI, RCI, BYI, EAT, GMT, CIT, CAP, HSH, BKW,  GE, BLX, NEWS, LAMR, R, GPK, IGTE, KOP, CMS, SCTY, MBT, PCL, TGH, RM, AFCE, CNP, CACC, CSV, CSU, AL, JAH, VIP, HOG, CZZ, ROC, IP, SLH, JPM, BA, NCR, DLX, TRN, HSY, GWR, WM, MIC.

High Yield Corporate Bonds, HYG, traded higher; these have been issued with ever increasing frequency to buy corporate shares, and thus create wealth, that is money.  Holly Ellyatt of CNBC asks Credit boom warning? Buybacks hit $1 Trillion.  Corporate buybacks have surpassed the $1 trillion mark for the first time since 2009, a sign the credit boom is reaching new heights, Brian Reynolds, chief market strategist at Rosenblatt Securities said on Wednesday. “Buyback announcements for the S&P have now topped the trillion dollar mark for this credit boom. And even though this boom is about to begin its fifth year, this past month has seen the fastest growth for buyback announcements, as if CEOs are making up for lost time,” Reynolds said in a note. (Read More: Is Corporate Behavior Too Bubblicious in Bond Market?) He said buybacks, where a company repurchases its own outstanding shares to reduce the number of shares in the market, have helped boost share prices. “Buybacks have been the main driver of higher equity prices during the current credit boom, which began in 2009, as all other major stock market participants combined have been net sellers.”

3) … On Thursday, March 7, 2013, World Stocks, VT, and US Stocks, VTI, continued higher with Long Term Care Facility, CSU, Capital Senior Living, leading its competitors higher as is seen in the ongoing combined Yahoo Finance chart. Sectors trading higher included Networking, IGN, Small Cap Energy, PSCE, Semiconductors, XSD, US Infrastructure, PKB, Energy Production, XOP, Airlines, FAA, Retail, XRT, Biotechnology, XBI, and Aerospace and Defense, PPA, seen in this Finviz Screener, being led higher by Boeing, BA.

Nation Investment, EFA, rose but remained below its recent high as Sweden, EWD, Norway, NORW, Finland, EFNL, Netherlands, EWD, Ireland, EIRL, led Italy, EWI, Spain, EWP, and Germany, EWG, higher. Thailand, THD, and Australia, EWA, led Asia, excluding Japan, EPP, higher. Taiwan, EWT, rose higher. Brazil, EWZ, EWZS, Russia, RSX, ERUS, India, INP, SCIN, traded higher. Mexico, EWW, and Argentina, ARGT, traded higher.Stefan Steinberg of WSWS reports European economy contracts as stock markets soar. Japan Small Caps, JSC, and Japan, EWJ, traded lower from their vertical rally.

Major World Currencies, DBV, traded unchanged at yesterday’s new high of 27.02. The Swedish Krona, FXS, the Swiss Franc, FXF, the Indian Rupe, ICN, the Euro, FXE, and the Brazilian Real, BZF, traded higher, as the Japanese Yen, FXY traded lower. The chart of the EUR/JPY showed a 2.0% blast higher to 124.38.

4) … On Friday, March 8, 2013, the world has most likely achieved peak money and currencies.
Marc Jones reports World shares hit their highest level since June 2008 and the dollar touched a fresh 3-1/2-year high against the yen on Friday, ahead of U.S. jobs data expected to point to a continuing pick up in the world’s biggest economy. China also gave markets a boost as official data showed February exports grew 21.8 percent versus a year ago, more than double the expected rise. European shares, VGK, which have rebounded strongly this week after last week’s Italian election and U.S. spending cuts-related wobble, opened up 0.5 percent. That put them on track for their biggest gains since the opening week of the year. In Asian trading Japan’s Nikkei had hit a 4-1/2 year high. “There appears to be a strong risk-on mood in the market at the moment,” said Ken Wattret, co head of European market economics at BNP Paribas. “The negativity from the Italian elections was shrugged off pretty quickly, the Fed has made it clear that its policy will remain accommodative. If we get a get a good set of payrolls numbers, that will further fuel that sentiment.”
Mark Santoli of Yahoo’s Unexpected Returns Blog writes Upbeat jobs data won’t sway a wait-and-see Fed The news on jobs was good, and the market discussion quickly pivoted to whether the U.S. economy was ready to be weaned from the Fed’s extra easy monetary nourishment. In related article, Jonathan Spicer of Reuters reports Fed mulls putting a “not for sale” sign on its assets. The Daily Ticker in video report relates Unemployment hits four year low: Time to break out the confetti?  Jobs growth in February beat expectations and the unemployment rate hit a four-year low of 7.7%.
Peak Money, that is Peak Stock Wealth, was likely established today February 8, 2013, as World Stocks, VT, rose 0.4%, to close at a new high of 52.45, manifesting a three white soldiers candlestick chart pattern suggesting that the rally in stocks globally is over. The Phillippines, EPHE, Thailand, THD, Australia, EWA, Australia Small Caps, KROO, Australia Dividend, AUSE, and Indonesia, IDX, rose to new highs.
US Stocks, VTI, rose 0.5%, to close at a new high of 80.27. Global Producers, FXI, rose 1.4%, to close at a new high 21.89, manifesting what may turn out to be an evening star candlestick. Sectors rising strongly included the following, all rising to new rally highs: Airlines, FAA, 1.5%, US Infrastructure, PKB, 1.4%, Small Cap Industrials, PSCI, 0.9%, Transportation, XTN, 1.3%, Retail, XRT, 0.9%, Home Building, ITB, 1.0% Consumer Discretionary, IYC, 1.0% Small Cap Energy, PSCE, 1.3%, Aerospace and Defense, PPA, 0.9%, Pharmaceuticals, XPH, 0.6%, Paper and Wood Producers, WOOD, 0.4%, IPOs, FPX, 0.4%,  Internet Retail, FDN, 0.4%, LBOs, PSP, 0.4%.
World Banks, IXG, traded higher.  Bank of America, BAC, led C, KEY, BK, higher taking the Too Big To Fail Banks, RWW, to a new high. Regions Financial, RF, led Regional Banks, KRE, seen in this Finviz Screener, to a new high. JP Morgan, JPM, led Investment Bankers, KCE, to a new high. The AP reports Fed says 18 biggest US banks in stronger position. The nation’s largest banks are more prepared to withstand a severe U.S. recession and a global downturn than at any time since the 2008 financial crisis, the Federal Reserve said Thursday following its annual “stress tests.”

The Too Big To Fail Banks are declared by Attorney General Eric Holder to be too big to hold accountable. Bloomberg reports Too-Big-To-Fail Banks limit prosecutor options, Holder testifies. The size of the largest financial institutions, RWW, has made it difficult for the U.S. Justice Department to bring criminal charges, Attorney General Eric Holder said. Criminal charges against a bank, something that could threaten its existence, may also endanger the national or global economies in the case of the largest ones, because of their size and interconnectedness. That has “made it difficult for us to prosecute” some of those institutions, Holder said today at a Senate Judiciary Committee hearing. And Bloomberg reports AIG betting on homeowners as Benmosche chases yield. American International Group, AIG, the insurer that was rescued by the U.S. government in 2008 after soured bets on mortgage securities, MBB, is building a unit to buy individual home loans amid a rebound in the housing market. AIG plans to buy loans, MBB,  backed by its United Guaranty Corp. unit, the largest seller of traditional private mortgage insurance last year, according to Donna DeMaio, 54, the unit’s chief executive officer. The debt, MBB, will be held as long-term investments by AIG insurance companies. AIG has boosted investment in U.S. property markets less than five years after real-estate wagers forced the government to rescue the insurer, once the world’s largest. The Fed had to step in after AIG sold derivatives to banks protecting them against losses on housing debt, with the U.S. bailout reaching $182.3 billion.

China stocks, YAO, gained 0.9%, this week, which compares with Sweden, EWD, which gained 1.8%, and world stocks, VT, which gained 2.1%, both rising to new highs.  Deutsche Welle reports Sweden’s State Owned Utility Vattenfall to cut 2,500 jobs

Bloomberg reports China’s property stocks, TAO, plunged the most since June 2008 after the government intensified a three year campaign to cool the real estate market, ordering higher down payments and stricter enforcement of sales taxes. The Shanghai Stock Exchange Property Index lost 9.3% at the close of trading, its biggest drop since June 19, 2008. China’s cabinet on March 1 told cities with ‘excessively fast’ price gains to raise down-payment requirements and interest rates on second-home mortgages and ordered individuals selling properties to ‘strictly’ pay a 20% tax on the sale profit when the original purchase price is available, a levy that is being easily avoided.

Bloomberg reports Bloomberg China’s property curbs in the past decade have been unsuccessful and the new round of measures will slow property sales, said billionaire Vincent Lo, also a member of the government’s advisory board.  ‘Certainly they haven’t been,’ said Lo, chairman of Shui On Land Ltd., a Shanghai-based developer. ‘Had they been successful, home prices wouldn’t have risen higher the more the government curbed.’  China on March 1 imposed its toughest curbs in a year, ordering the central bank to raise down-payment requirements and interest rates for second mortgages in cities with excessive price gains, enforcing a property sales tax and telling local governments with the biggest price pressures to tighten home-purchase limits.

Aaron Back of Dow Jones reports Chinese policy makers sent signals that Beijing is preparing to tighten monetary policy, as inflation risks rise along with a recovering economy.  At the annual meeting of the country’s legislature Tuesday, Chinese Premier Wen Jiabao set a lower target for money-supply growth, a clear sign authorities want to rein in lending and liquidity in the financial system. And Wednesday, a vice governor of the central bank and one of its external advisers both argued that excess liquidity needs to be mopped up to stop inflation from rising. Inflation in 2012 was subdued, but economists widely expect it to be rising again this year on higher food prices. Inflationary pressures also are showing up in the property market, prompting Beijing to unveil new taxes and restrictions on apartment sales last week.
The S&P 500, $SPX, traded by SPY,  jumped 0.4% on the day, 2.2% on the week, and 9.2% y-t-d.
Bonds, BND, traded strongly lower, being led so by US Government Treasuries, GOVT, such as Mortgage Backed Bonds, MBB, from their peak on December 6, 2012, as World Stocks, VT, continued rising. Municipal Bonds, MUB, traded lower on the Sequester.
Monetization of debt by the World Central Banks, that is monetary policies of Quantitative Easing by the US Fed, Open Monetary Transactions by the ECB, Monetary Injections by China’s PBOC, and Abenomics by the Bank of Japan, has resulted in a strong sell of World Treasury Bonds, BWX, US Government Debt, GOVT, and Mortgage Backed Bonds, MBB; and has created a demand for the most toxic of debt, such as Senior Bank Loans, BKLN, Junk Bonds, HYG, and distressed investments taken in by the Fed under QE1, and traded by Fidelity Mutual Fund, FAGIX, and which accounts for a great deal of the debt held by investment banker JPMorgan, JPM, and which  closed at an all time high of 9.69.
Closed End Stocks, CSQ, rose, as Closed End Debt, PFL, traded lower, suggesting that the Risk On Debt Drive Rally is coming to an end, with confirmation coming from the Risk On ETN, ONN, trading at strong resistance at 28.25 this week.

The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, has been steepening since December 6, 2012, when Aggregate Credit, AGG, traded lower. A Steepening Yield Curve, seen in the Steepner ETF, STPP, rising, reflects that bond vigilantes have loose control of interest rates, which will result soon in turning “money good; investments bad, when currency traders start a global currency war by introducing competitive currency devaluation, causing derisking out of World Stocks, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Emerging Markets, EEM, and Global Producers, FXR, and deleveraging out of  US Commodities, USCI, and Global Commodities, DBC.

Doug Noland reports what is likely to be peak Sovereign Wealth. Federal Reserve Credit jumped another $7.2bn to a record $3.085 TN.  Fed Credit expanded $299bn over the past 22 weeks.  In the the past year, Fed Credit expanded $220bn, or 7.7%.  Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $682bn y-o-y, or 6.6%, to $10.951 TN.  Over two years, reserves were $1.586 TN higher, for 17% growth.

It is likely that Peak Consumer Wealth has been achieved as Doug Noland reports M2 (narrow) “money” supply fell $22.6bn to $10.390 TN.  “Narrow money” expanded 6.4% ($622bn) over the past year.  For the week, Currency increased $2.5bn.
Peak Currencies was likely achieved today February 8, 2013. The US Dollar, $USD, UUP, continued higher, as the Japanese Yen, FXY, traded strongly lower. Major World Currencies, DBV, of which the US Dollar is a component, traded to a new high of 44.26, manifesting a dark cloud covering candlestick in its chart pattern, suggesting that competitive currency devaluation is about to commence with world currencies selling off and carry trades unwinding, causing derisking out of stocks and deleveraging out of commodities.  Emerging Market Currencies, CEW, topped out on February 5, 2013. Look for Yen, FXY, based carry trades, such as the EUR/JPY, featured in Action Forex Report with a close at 124.82, to trade lower.  Ira Iosebashvili of the WSJ reported “Did China just lambaste Japan over its weaker yen, or did we witness an example of carefully crafted diplomacy?  Gao Xiqing, president of the China Investment Corporation, minced few words in his interview with the Wall Street Journal.  He warned Japan, which has seen its yen fall by 20% against the dollar since September, against treating its neighbors like a ‘garbage bin,’ and that starting a currency war would ‘not only be dangerous for others but eventually be bad for yourself.’  Mr. Gao’s words made a bold contrast with a statement issued by the Group of 20 nations, which includes China, last month.
The U.S. dollar, $USD, UUP, rose 0.6% to close at 82.77, up 3.8% y-t-d.  For the week on the upside, the Brazilian Real, BZF,  increased 2.3%, the Indian Rupe, ICN, 1.7%, the Mexican Peso 1.0%, the Swedish Krona, FXS, 0.5%,, the Norwegian Krone 0.5%, the Australian Dollar, FXA, 0.4% and Emerging Market Currencies, CEW, 1.7%. For the week on the downside, the Japanese Yen, FXY, declined 2.6%, the Swiss Franc, FXF, 0.9%, the British Pound Sterling, FXB, 0..6%, the Singapore Dollar 0.6%, the New Zealand Dollar 0.4%, the South African Rand 0.3%, the Canadian Dollar, FXC, 0.2%, the Danish krone 0.2%, the Euro, FXE, 0.2% and the Taiwanese dollar 0.1%.
The ratio of World Stocks, VT, to Commodities, DBC, VT;DBC, and the ratio of US Stocks, VTI, to US Commodities, USCI, VTI:USCI, are at all time highs indicating the overvalued and manic nature of today’s stock market.
Alex Kowalski of Bloomberg reports:Former Federal Reserve Chairman Paul Volcker said U.S. central bank officials may find it difficult to rein in their historic stimulus at the appropriate time because ‘there is a lot of liquor out there now.’ … ‘At some point when the worm turns and the party is getting under way, to use that old analogy, at what point do you begin retreating?’ Volcker said ‘You can make a mistake and go too quick, but the much more frequent mistake in my judgment is you go too slow, because it’s never popular to take the so-called punch bowl away or to weaken the liquor.’
Vivien Lou Chen of Bloomberg reports Benefits of Fed adopting a ‘no asset sale’ approach are ‘compelling enough’ that central bank has ‘good chance’ of adopting strategy, JPMorgan’s chief U.S. economist Michael Feroli writes. [The] move would provide ‘some modest’ further near-term     stimulus, reduce concerns about financial instability risks, limit future losses on Fed balance sheet.

Bloomberg: reports China’s foreign currency reserves, which have surged more than 700% since 2004, are enough to buy every central bank’s official gold supply — twice. China’s foreign reserves surpassed the value of all official bullion holdings in January 2004 and rose to $3.3 trillion at the end of 2012. The price of gold increased 263%percent from 2004 through Feb. 28, with the registered volume little changed. By comparison, China’s reserves rose 721% through 2012, while the combined total among Brazil, Russia and India rose about 400% to $1.1 trillion.  Dollars brought into China are sold to banks, which in turn sell the greenbacks to the central bank, increasing the reserves.”

5) … Commentary from Doug Noland in article Q4 2012 Flow of Funds. The quarter was noteworthy for the big jump in Credit growth and the even wider divergence between strong Credit and Financial markets and weak economic performance.  A jump in (non-financial) Credit expansion to a 6.2% pace equated with a barely positive (0.1%) real GDP reading.  It would be easier to dismiss this as an anomaly if it wasn’t such a prominent global dynamic (i.e. China, India, Brazil, etc.).  As for the maladjusted U.S. economy, we’ve reached the phase were it requires exceptionally strong Credit expansion (and overheated markets!) to attain what most economists would view as “normal” growth.
Most of the ongoing inflation in asset prices and incomes is either directly or indirectly related to Washington’s extraordinary policymaking.  Since mid-2008 (18 quarters), publicly held Treasury market debt has increased 120% to $11.569 TN.  Federal debt (includes some other obligations) doubled to $13.469 TN, increasing over this period from 46% of GDP to 85%.  State & Local debt increased 33% in 18 quarters to a record $3.732 TN.
Huge federal expenditures and deficits coupled with the Fed-induced collapse in borrowing cost have lavished inflated earnings and cash-flows upon corporate America.  Despite these inflated earnings, ultra-loose financial conditions have nonetheless incited a mini boom in corporate borrowings.  Corporate bonds increased SAAR $719bn during Q4 to a record $12.511 TN.  For the year, Corporate bonds jumped $527bn, or 4.4%.
A few years back I opined that it would take roughly $2 TN of annual system Credit growth to more fully reflate the deeply maladjusted economy.  After four years of outrageous fiscal and monetary stimulus, our Credit system is poised to possibly reach this milestone in 2013.  The good news is that jobs are growing at a decent clip (as one would expect with ultra-loose financial conditions and strong corporate borrowings).  The bad news is that this reflation has required a doubling of federal debt coupled with incredible Bubble-inducing monetary measures.
The government finance Bubble has significantly inflated household incomes and corporate earnings, a Bubble dynamic that has worked to incite speculation and inflation throughout equities and corporate debt markets.  The reflation in securities and, increasingly, real estate markets has again inflated Household Net Worth.  Perceived gains in wealth and ongoing (government policy-induced) income growth have spurred boom-time spending levels, in the process sustaining the consumption and services-based U.S. economy.  Ignore the underlying Credit dynamics and things almost look OK.
Importantly, the government finance Bubble has succeeded in sustaining the U.S. “Bubble Economy” structure that evolved over the prolonged Credit Bubble period.  This has ensured unending Current Account Deficits and endless dollar liquidity; historic global financial and economic imbalances; and attendant myriad Bubbles around the world.  Desperate global central bankers, meanwhile, are content to disregard precarious Bubble excess throughout global risk markets – fixated instead on acute economic and financial fragilities.  Flawed economic doctrine, analytical frameworks and policies over years fostered deep economic maladjustment and market Bubbles.  Resulting fragilities these days ensure even more aggressively “activist” policy measures viewed as necessary to bolster an acutely vulnerable global “system.” Two of the savviest “macro” analysts of this era – Stan Druckenmiller and Marc Faber – this week separately warned that this central banker-induced boom will end badly.

6) … The world has achieved peak sovereignty.  News reports illustrate that political chaos is developing in Italy.  The diktat money system will arise out of a Financial Apocalypse stemming from political and economic chaos in Portugal, Italy, Greece and Spain, more specifically out of Europe’s Nordic Latin ethical divide.
This week the National Bank of Greece, NBG, -5.6%, led Greece, GREK, -4.9%, lower as Robert Stevens of WSWS writes Austerity demands provoke Greek government crisis. The primary demand of the Troika is that there be no retreat on plans to slash the number of civil service employees.

Ambrose Evans Pritchard writes Italy’s Bersani on collision course with Germany and ECB over austerity.  Italy’s Pier Luigi Bersani vowed to break free of the country’s austerity regime as he laid out plans for a centre-Left government, risking a serious clash with Germany and the ECB.

We must leave the austerity cage,” he told leaders of his Democrat Party (Pd), responding to Italy’s electoral earthquake by tearing up his pre-election programme.
“A change of course is absolutely necessary given that five years of austerity and attacks on workers have pushed up public debt levels across Europe,” he said.
“The vicious circle between belt-tightening and recession is putting representative government at risk and making it impossible to govern. The immediate emergency is the real economy and joblessness,” he said.
The pledge puts Mr Bersani on a collision course with the ECB, which is constrained from helping to shore up the Italian bond market unless Rome complies with Europe’s austerity agenda.
“Italian voters may have effectively voted away the ECB safety net,” said Christian Schulz from Berenberg Bank. The central bank cannot activate its bond purchase programme (OMT) unless Italy requests a rescue from the EMU bail-out fund, and that in turn requires a vote in Germany’s Bundestag

“The ECB cannot – and will not want to – do anything to help Italy after the inconclusive election result, even if borrowing costs spiral out of control,” he said.
Mr Bersani’s Democrats (Pd) and its allies control the lower house but failed to win the senate. He is hoping for tacit support on a law-by-law basis from the Five Star Movement of comedian Beppe Grillo.
Mr Grillo has responded with a volley of anathemas, calling Mr Bersani a relic from a defunct political order that must be swept away by civic revolution. Yet many of his 163 senators and deputies say the movement should seek common ground with the Pd.
Mr Bersani said Italy should mobilize its EU voting weight to push for an EU-wide change of course. He has natural allies in Paris.
French finance minister Pierre Moscovici warned EMU colleagues on Monday that current policies “risk a loss of social and political confidence across Europe. We must not pile austerity on top of recession”.
Mr Moscovici said France would need an extra year to meet its deficit target of 3pc of GDP and called for action to tackle the root of the crisis with an EMU-wide growth strategy.

Italy, France, and Spain toyed with a Latin bloc alliance last year to confront Germany over EMU’s contractionary policy mix, but the initiative faded.
Mr Hollande pulled back from a showdown with Berlin and ultimately pushed through further fiscal cuts and reforms, while Italy’s Mario Monti was never willing to jeopardise the European Project that he served for ten years as a commissioner.
Critics says Mr Monti, whose Civic Choice list won just 10pc of the vote, went native in Brussels long ago and has been slow to understand the deeper political crisis unfolding in Italy.
The outgoing premier gave them fresh ammunition today, saying that it would be better to hold fresh elections than to see an anti-EU government to take power.
It is unclear whether a second vote would achieve what he intends. The latest snap polls show that Mr Grillo’s support is still rising, jumping from 25pc to 28pc.
Ominously, nostalgia for Fascist leader Benito Mussolini has started to emerge as the post-War order crumbles. Two key figures have praised elements of Fascist rule over the last two days.

A leader of the Five Star Movement professed “fascination” with the Fascist sense of the Italian state and the family, while the deputy state secretary of the economy said Mussolini “governed well until 1935.” The taboos are falling one.

Bloomberg reports Draghi confronts Italy impact as ECB seen keeping rates on hold. The European Central Bank has to decide how big a threat Italy poses to Europe’s recovery. A rejection of austerity in the euro area’s third-largest economy has produced a political stalemate that’s driven up bond yields and undermined confidence in ECB President Mario Draghi’s scenario of a gradual economic upturn. While that’s prompted some observers to bring forward expectations for lower interest rates, economists from Nomura International Plc to ABN Amro Bank NV say the ECB is more likely to hold fire and keep the pressure on governments to enact reforms. “The Italian election has brought the centrifugal force of dysfunctional politics back into focus, but rate cuts are not the answer,” said Richard Barwell, senior economist at Royal Bank of Scotland Group Plc in London. “The ECB cannot save governments and countries that do not want to save themselves.”

Bloomberg reports Monti won’t back Italian government that threatens EU reforms. Italian Prime Minister Mario Monti said he won’t back a new government that would threaten his country’s commitments to the Europe Union and that Italy should hold a new vote rather than install an administration that could reverse fiscal discipline. In his most detailed comments since Feb. 24-25 elections produced a hung parliament and saw his coalition win less than 10 percent of the vote, Monti said none of Italy’s political parties is capable of addressing the country’s problems. “If the alternative is a government oriented to interrupting Italy’s European path or the way of reforms, I believe it would be better to hold new elections,” Monti said at a press conference in Rome today

Bloomberg reports Napolitano girds for battle to resolve Italy election impasse. President Giorgio Napolitano, a former communist resistance fighter who negotiated Silvio Berlusconi’s resignation, is preparing his final political battle as he seeks to steer Italy out of its latest government crisis before his term expires in May. Napolitano, 87, is charged with resolving the political logjam caused by elections last month that produced a hung parliament. To avoid a new vote, he can try to forge a national unity government, accept an administration without a majority or appoint a non-politician to head a so-called technical government, similar to that of Prime Minister Mario Monti. Markets are pricing in two scenarios, “another technical government or the possibility, which is less and less likely, of a bipartisan government,” Mario Spreafico, who manages 1.5 billion euros ($1.95 billion) as chief investment officer at Schroders Private Banking for Italy, said in a phone interview. “Both would be temporary solutions” before new elections.”

Bloomberg reports Italy’s debt highest since dictator Mussolini. Italy’s public debt rose to the highest level since Benito Mussolini won elections 89 years ago, paving the way for his 20-year dictatorship. The CHART OF THE DAY shows debt jumped in 2012 to 127 percent of gross domestic product from 120.8 percent a year earlier. That’s the most since 1924, when Mussolini won 64 percent of the popular vote in elections that opposition members said were marked by irregularities

Mike Mish Shedlock writes What’s next for Italy? No working government for 7 months, Then elections in September.  Pier Luigi Bersani has twice ruled out the possibility of a grand coalition with Silvio Berlusconi’s centre-right coalition, and Beppe Grillo’s Five Star Movement wants no part of overtures from Bersani.  There is insufficient support for another technocrat. So, the logical conclusion is new elections are forthcoming. Mr Shedlock writes further Eurozone downturn accelerates despite German growth.

Jean Pisani-Ferry is a French economist and public policy thought leader; he is currently Director of Bruegel, the Brussels-based economic think tank. In Project Syndicate he writes The Euro’s House Divided.

“The European Commission’s latest economic outlook paints a disheartening picture: unemployment rates close to or above 5% in Austria, Germany, and the Netherlands in 2014, but above 25% in Greece and Spain and roughly 15% in Ireland and Portugal. In the same year, per capita GDP is expected to be almost 7% above its pre-crisis level in Germany, but about 7% below in Ireland, Portugal, and Spain, and a terrifying 24% below in Greece. So the deep economic and social divide that has emerged within the eurozone is expected to persist.
Such a gulf within a monetary union cannot be sustained for very long. As Abraham Lincoln said, “a house divided against itself cannot stand.” The same monetary policy cannot possibly fit the needs of a country that is in depression and another that is at or close to full employment. Indeed, the single most important question for the future of the eurozone is whether the gap between prospering and struggling members is being closed
During the euro’s first decade, the countries that are now struggling recorded persistently higher wage and price inflation than those in Europe’s north. To recover and return to both internal and external balance, they must not only close the cost gap, but actually reverse it, thereby generating the trade surpluses needed to repay the foreign debt that they accumulated in the meantime.
The process of internal devaluation, as economists call it, is occurring very slowly. Employees have suffered wage cuts, but prices have not declined accordingly, so their loss of purchasing power is higher than it should be. Likewise, economies have not recovered lost competitiveness, so employment, especially in the traded-goods sector, is lower than it should be.
Austerity and reforms were supposed to deliver rebalancing within the eurozone. And so they have, at least insofar as external balances are concerned. But, despite visible progress on the export front and noticeable labor-cost reductions, this rebalancing is mostly the result of the same collapse in domestic demand that is driving mass unemployment.
Ultimately, perhaps, all the pain will pay off. But societies may lose patience in the meantime. This should be enough to prompt a reassessment. The issue is not whether fiscal consolidation and external rebalancing are necessary – they are. It is how to make them politically and socially sustainable.”

I respond that there is currently no government in Italy, it is currently ungovernable, peak sovereignty that is peak national sovereignty has been achieved. In Europe, there is something greater than a labor price and debt divide; the dynamos of corporate profit and trade, based upon sovereign nation states  are winding down, on demand destruction, the dynamos or regional security, stability and sustainability are powering up; the Eurozone’s Great Divide will result in the rise of a one euro government.

Europe’s great cultural and economic divide is The Nordic Latin Ethical Divide; and out of it will come true European regional governance.  The European Divide is both striking and is widely known. Norway, Sweden, Denmark, and Finland, have debt loads significantly below those of the eurozone. Sweden’s government spending as a percent of GDP has fallen from 55% to 50% since the introduction of the Euro. And the Nordics are progressive in every way for example, they have high rates of female labor force participation and are accepting of gays and lesbians.

On all international metrics of competitiveness, entrepreneurship, innovation, creativity, responsible government, and human development, the Nordics consistently rank at the top, as the Economist Magazine reports on pages 14 to 16, of the February 2, 3013 print edition, which relates that Nordic countries pride themselves on the honesty and transparency of their governments; citizens pay their taxes and play by the rules. This has led Norway, Sweden, which have national currencies, and Denmark and Finland which use the Euro, to being ranked as the world’s four most prosperous nations. The Nordic people are a creative, innovative, industrious, corruption free, and socially responsible people, which contrasts sharply with the Latin people, that is the Portugese, Italian, Greek and Spanish people, who rank at the bottom of prosperity.

A known unknown, is that Jesus Christ is at the helm of the economy of God, Ephesians 1:10, where He is effecting The Great Paradigm Shift from Liberalism to Authoritarianism, where political governance will change from the rule of sovereign nation states to sovereign regional leaders and regional bodies in regional governance; and economic experience from investment choice and prosperity to debt servitude and austerity; as leaders meet in summits to renounce national sovereignty and pool sovereignty regionally, a concept that has been presented by Herman van Rompuy for a long time.

Please consider the horror, revulsion and anger that the Nordics will experience, especially the Euro using Danes and Finns, being a creative, innovative, industrious, corruption free, and socially responsible people, realize, when their prosperity is decimated by a soon coming Financial Apocalypse, and that have to share in a European gulag of regional governance, totalitarian collectivism and debt servitude, that has arisen through the insolvency of their Latin peers, which is yet another unknown known, presented in bible prophecy of the Beast Regime of Revelation 13:1-4, and in the prophecy of The Ten Toed Kingdom of regional governance of Daniel 2:25-45.

Peak Prosperity is now being achieved. Prosperity comes by good ethics, that is by having right relations with others. The Nordic people are a creative, innovative, industrious, corruption free, and socially responsible people, which contrasts sharply with the Latin people, that is the Portugese, Italian, Greek and Spanish people, who rank at the bottom of prosperity. The most prosperous people, the Norwegians and the Finns, have national currencies which have floated highly in value, and have the least amount of treasury debt.

The Financial Times reports Dutch support EU referendum. Dutch lawmakers have been forced to debate a referendum on any further transfers of power to the EU after a citizens’ petition demanding a plebiscite garnered 40,000 signatures in two weeks. Although parliament is not obliged to follow through with legislation, the move underlines the surge euroscepticism in one of the EU’s founding members, which could pose an obstacle to any further integration needed to bolster the eurozone.

Massive and total Eurozone integration is coming very soon. New regional sovereign authority is coming out of the European Sovereign Debt Crisis, where those living in Euroland will no longer be citizens of any nation, but rather residents living in a region of fascist economic governance where nannycrats manage the factors of production via public private partnerships, and oversee regional resources under the direction of a monetary pope, Revelation 13:10-11, and a regional king, Revelation 13:5-10.  Regionalism will displace national investment, national wealth and national currencies, as country leaders meet in summits, renounce national sovereignty and pool sovereignty regionally.

Regional governance is presented in the Statue of Empires of Daniel 2:25-45, as ten toes of iron and clay, a miry mixture of diktat and democracy, form out of failure of the two iron legs of governance that have rule the world since the late 1700s. First, came the failure of the British Empire in 1948 with the the UK being kicked out of Palestine with establishment of the State of Israel, then the ceding of the Suez Canal at the behest of the US, and finally the transfer of authority over Hong Kong. And secondly with the soon coming failure of US Hegemony, and its war for oil, and war on Muslims. The world is at Peak Dollar Hegemony with Richard Norton Taylor of the UK writing Donald Rumsfeld must be indicted over Iraq militias. What he knew of detention centres is not the only point. He was in charge, and if he had a plan the militias wouldn’t have existed. A Guardian investigation reports that Colonel James Steele, a special forces veteran, was nominated by Rumsfeld to help organise paramilitaries to quell a growing Sunni insurgency in Iraq. Steele reported directly to Rumsfeld. The paramilitary groups were drawn from Shia militia and set up detention centres where Iraqis were tortured.

7) … Summary
Please consider the veracity of bible prophecy as given by angels to the Apostle John in a dream while he was in his 90s living in exile on the Isle of Patmos, Revelation 1:1; specifically that being Authoritarianism’s Beast Regime of ten heads and seven heads will replace Liberalism’s Milton Friedman Banker Regime of US Dollar Hegemony. Out of soon coming Financial Apocalypse, Revelation 13:3, a European gulag of regional governance, totalitarian collectivism and debt servitude, Revelation 13:1-4, will rise from the profligacy and insolvency of the Mediterranean Sea nations of Portugal, Italy, EWI, Greece, GREK, and Spain, EWP, where a Sovereign, Revelation 13:5-10, and a Seignior, that is a top dog banker who takes a cut, Revelation 13:11-18, are going to rule Euroland; their word, will and way will be the law of all those using the Euro currency, replacing and superseding all traditional rule of law, corporate, constitutional and national laws, which are part of the former age of Liberalism, as Jesus Christ is in charge of the economy of God, Ephesians 1:10, pivoting the world to the new era of Authoritarianism. The peripheral European states will be exist as hollow moons of technocratic government revolving around Planet Germany, which will rise to be the core strength of a type of revived Roman Empire, Daniel 7:23. Sven Heymanns and Johannes Stern of WSWS report German trade unions march in step with German army. The German Trade Union Federation is publicly backing the increasingly aggressive role of the German army.

Liberalism featured sovereign nation states, and their central banks provided ever increasing credit liberality which stimulated economic growth, global trade and prosperity. It is sovereignty that provides seigniorage, that is moneyness. With the failure of national sovereignty, the seigniorage of investment choice will fail.

Authoritarianism features regionalism. Regional sovereignty in the Eurozone will be the model for governance throughout the entire world. Europe will be the leading example of regional fascism where leaders from industry, banking and state rule via public private partnerships in all of the world’s ten regions and totalitarian collectivism occupies in every one of mankind’s seven institutions.

Under Liberalism, the seigniorage of investment choice drove economic production. Under Authoritarianism, the seigniorage of diktat will direct the factors of production. Liberalism’s fiat money system will be replaced with Authoritarianism’s diktat money system, where diktat serves as money, currency, power and prosperity for nannycrats whose rule replace that of bankers.

Some are inveterate silver investors, believing that silver has value; it does not; it is simply a base metal used in the production of economic goods. King World New writes Massive silver short positions to force COMEX default. Itinerant writes in Seeking Alpha Effects of dilution for silver mining companies which reviews  PAAS, HL, CDE, and SSRI. Three out of the four companies have managed to outperform the price of silver by market capitalization over a 10-year time frame; however, all of them have grossly underperformed when using the share price as a yardstick. The only explanation that comes to mind would be dilution that has translated into increasing market capitalization, but has not created value for shareholders. I relate that when looking at CDE, and SSRI, and the Silver Mining ETF, SIL, in their combined ongoing Yahoo Finance chart, it is my contention that finally, yes finally, all currency carry trade investment has washed out of Silver Standard Resources Inc, SSRI, which traded at $10.02; and investors are willing to buy the stock at a PE of 24. I never have and still do not recommend any investment in either silver or silver mining stocks.

Soon an investment demand for gold, $GOLD, which traded at 1,575 will arise, and traded by the ETF, GLD, on falling major world currencies, DBV, and emerging market currencies, CEW.  Liberalism is passing away and Authoritarianism is rising, where gold, held in one’s physical possession or owned in Internet Trading Vaults such as BullionVault, and diktat will be the only two forms of sovereign wealth.

As for me, I relate that I live in abject poverty and have no money whatsoever. Physorg reports Poverty rate is highest in 15 years. The Great Recession leaves behind the largest number of long-term unemployed people, or 4.7 million, since records were first kept in 1948, according to research from the University of Michigan.  I do not participate in any political action, because I belong to the Lord. GreekCrisisNet presents The Economist article Golden Dawn’s “national awakening” sessions, noting that opinion polls show support for Golden Dawn jumped from 6.9% to 11.5%.   I had a personal awakening when Morpheus, the God of Dreams, came forth with the Morpheus Proposal; yet it was a foregone conclusion as God knew I would take the Red Pill, Ephesians 1:5, because he had been working from eternity past to make me accepted in the Beloved, Ephesians 1:6.

There is a God, in Him we move and live and have our very being, Acts 17:28.  He is responsible for all things, 2 Corinthians 5:18. Since Pentecost, when the Holy Spirit came with power, we have The Present Truth, 2 Peter 1:12, which relates that The Almighty is know as, and is called, God The Father, and that He has appointed Apostles, meaning Sent Ones, to proclaim Him, Colossians 1:1-2.

It is God who provides the threads and substance of life. The threads are trust and credit; the substance is Christ. These are woven together through meditation, prayer and singing of songs and spiritual hymns to produce the fabric and texture of one’s inner life which manifests in the virtues, that is morals of Christ, and New Testament ethics, that is right relationships of living with others.

Virtues present in graceful and benevolent ways.  Ethics manifest in responsible, respectful, peaceful and accepting relationships.

God has a Son, Colossians 1:3; this concept is offensive to both Jews and Muslim.  God’s Son has been appointed heir of all things.  His name is Jesus Christ, and he being the very image of God, is now the firstborn of all creation, Colossians 1:15.   He is the creator of all that exists and is the Sovereign King of the Universe, and is Lord of all things and of all peoples. There is no human action as perceived by Libertarians, there is only Christ working His Will, and His Way in all things, Colossians 1:16. All sovereignty coalesces in Christ, Colossians 1:17.

It is Christ who stands at the helm of the Economy of God, directing all political and economic activity.  It is Christ who is effecting His Administrative Plan for the fullness of every dispensation, that is every age, time period, epoch and era, Ephesians 1:10.

Jesus Christ has been working to perfect, that is mature, Liberalism, and is now pivoting that paradigm to Authoritarianism. Christ commenced Liberalism with the Federal Reserve Act of 1913 and also with World War 1 in 1914, and brought Liberalism forth strongly in 1948 with the establishment of the nation state of Israel, and more solidly with the deployment of the Milton Friedman Free to Choose Floating Currency Regime in 1971, which produced Liberalism’s Banker Regime for one to trust in.

It has been very rewarding for one to place faith in the most toxic of debt such as Fidelity Investment’s FAGIX, as well as Junk Bonds, HYG, and Senior Bank Loans, BKLN, and the most speculative of equity such as Fidelity Investment’s VICEX, as well as the most risky of debt such as PowerShares’ Leveraged Buyouts, PSP.   Reliance on Dividend Stocks, DLN, and Dividend Appreciation, VIG, has been the bedrock upon which investors have relied for investing in Large Cap Growth, JKE, Small Cap Growth, RZG, MidCap Growth, JKH, Russell 1000 Growth, IWF, and Russell 2000 Growth, IWO, the latter being the most credit and banking sensitive of all growth shares, as is seen in their combined Yahoo Finance five day chart for the week ending Friday February 8, 2013.  It is the genius of Christ which has produced the insight to develop the life sciences that MarketGrader reveals has provided lucrative reward in the Russell Small Cap Growth Shares such as NRCI, MWIV, SRDX, RGEN, SNTS, VIVO, TMH, ABAX, PDLI, ACOR, CHE, STE,  JAZZ, HMSY, CBST, PCYC, as well as the Biotechnology Stocks seen in this Finviz Screener.

Through the national sovereignty of democracies, and through the monetary authority of the world central banks, seigniorage, that is moneyness, has flowed through Asset Managers such as BlackRock, Eaton Vance, Affiliated Managers Group, Waddell & Reed, Wisdom Tree Investments, that have coined wealth, especially in the Mid Cap Stocks, as John D Hartman reveals in Why the mid caps have outpaced the large indices.

Through carry trade leverage, in a spectacular nine month risk-on toxic debt based rally, investors have experienced stellar rewards in Global Producers, FXR, such as Whirlpool, WHR, and International Paper, IP, as well as in Nation Investment, EFA, such as Australia, EWA, Thailand, THD, and the Phillippines, EPHE, and most recently in the Nikkei, NKY.

The world now exists at Peak National Sovereignty, as is seen in Peak Money, that is Peak Wealth being achieved as follows:
Peak Commodities, DBC, September 14, 2012,
Peak Credit, BND, and AGG, December 6, 2012,
Peak M2 Money, January 7, 2013,
Peak Emerging Market Currencies, CEW, February 1, 2013
Peak Nation Investment, EFA, February 1, 2013
Peak Major Currencies, DBV, March 8, 2013
Peak Stock Wealth, VT, March 8, 2013
Paek Global Central Bank “International Reserve Assets” (excluding gold) March 8, 2013, as tallied by Bloomberg and reported by Doug Noland to stand at $10.951 TN.

The paradigm of sovereign nation states has supported the Milton Friedman Free To Choose floating Currency Regime, where Major world Currencies, DBV, and Emerging Market Currencies, CEW, have floated and the US Dollar, $USD, has sunk. But now the US Dollar, $USD, traded by the 200% ETF, UUP, is rising and it no longer serves as the world’s reserve currency.  There is now no international reserve currency. The world’s Fiat Money System, that has underwritten corporate profitability, global growth and trade since 1971, when the world went off the gold standard, is literally disintegrating.

Jesus Christ is bringing forth the new paradigm of regionalism, based upon the sovereignty of regional leaders and regional bodies, where the Diktat Money System, will underwrite regional security, stability and sustainability.

As of the week ending February 8, 2013, the world exists at the very pivot of two eras. Jesus Christ  is transitioning the world from Liberalism into Authoritarianism.

To achieve His aim of producing the Beast Regime of Diktat to replace the Banker Regime of Investment Choice, which will rule in all of the world’s ten regions and in all of mankind’s seven institutions, Revelation 13:1-4, as well as to produce the Ten Toed Kingdom of Regional Governance, Daniel 2:25-24, Jesus Christ has released the First Horseman of the Apocalypse, that is the Rider on the White Horse, who has a bow but no arrows, Revelation 6:1-2, to effect global economic and political coup d etat.  This rider is seen having great success in Argentina, ARGT, with Kirchnerism, in Egypt, EGPT, with Morsi’s rise to power, and in Greece, GREk with the Troika’s technocratic rule. Greece is no longer a sovereign nation; it is a vassal colonial state ruled by bankers and oligarchs residing in Brussels, and Berlin. The Greeks rely totally for the provision of their fiscal needs upon the regional sovereignty existing in the ECB.

And now the First Horseman of The Apocalypse, Revelation 6:1-2, has taken sovereignty that is rulership from Italy; it exists as a country having no head, that is no rule, no government. Italy is no longer a democracy, rather it is a zombie state existing governed by Christ’s First Henchman, and whose fiscal needs are provided courtesy of Mario Draghi and the monetary authority of the European Central Bank

The Netherlands Cry for Freedom reported in the Financial Times article Dutch support EU referendum, will go unheeded, as God’s Clarion Call, Revelation 1:1, is for fascist technocratic government in the Eurozone, Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:23.  Rest assured that God will accomplish his aim as the Rider on the White Horse, Daniel 6:1-2, has all authority and power to fully displace all existing sovereignty as well as dislocate all current seigniorage.

In mankind’s final dispensation, that is humanity’s last time period, Jesus Christ is bringing forth  the Church, literally meaning the Called Out Ones, to be Overcomers in Him, as Bible Org relates and asks Who are the Overcomers of Revelation 2 and 3.  The saints trust in Christ, and give Him credit for all accomplishments, and take their spiritual life from Him, Colossians 3:4.

Either one will be genuine, having real life experience in Christ, Ephesians 4:21; or one will be fiat, having worldly experience in fiat mandate of religion, philosophy or political party. Christians know Christ as the All Sovereign One, and as the All Sufficient One.

Thanks for visiting this blog; this is most likely my last post here. I began writing in May 2010 as Herman van Rompuy worked to provide a regional framework agreement known as the First Greek Bailout, a seigniorage aid scheme which served to keep Greece in the Eurozone and provided for destruction of the national sovereignty of Greece. I appreciate Finviz for their complimentary charting and portfolio service and Google for their document service.

Nation Investment And Commodities Trade Lower On Competitive Currency Devaluations As Italians Give Support To Politicians Who Reject Austerity And In Some Cases The Euro … The Fiat Money System Starts To Die As The Dollar Rises

March 4, 2013

Financial Market report for the week ending Friday March 1, 2013

1) … Nation stocks and commodities traded lower on falling currencies, as political crisis stalked Greece and Italy.
The very linchpin of ECB sovereign debt support, as well as the capstone of Liberalism’s Banker Regime of Credit Stimulus, has collapsed, as Greece, GREK, traded 8.2% lower. The nation that defines Clientelism, Barriers To Competition, Unionism, and Corruption, as well as Italy, EWI, which defines trading in European Treasury Debt, led the World into Investment, Economic and Political Failure.

The Japanification of the entire world has commenced on the monetization of debt by the world central banks.Nation Investment, EFA, was led lower by Greece, GREK, and Italy, EWI, and the other Eurozone Nations, EWP, EWG, EIRL, as well as by the Nordic Countries, EFNL, EWN, NORW, EWD, and Russia Small Caps, ERUS, as well as the US Small Caps, IWM. Stock sectors trading lower induced COPX, KWT, IEZ OIH, PSCE, FLM, XSD, CARZ, IGN, PICK, REMX, KOL, URA, SLX,and XME.  

Transports, IYT, traded 2.2% lower and Industrials, IYJ, 2.0% lower, giving Dow Theory confirmation that a bear market is underway. Industrial producers trading lower included, E, MKTAY, NOK, FLS, FWLT, TSM, MHK, LYB, EMN, CE, ABB, EMR, ARG, BA, MTW, IR, JOY, TEX, CNH, GE, NSANY, TTM, HMC, ALV, F, GM, OC, EXP, USG, NCS, BECN.

In the US, VTI, the S&P 500, SPY, traded 1.9% lower, and the Russell 2000, IWM, 2.2% lower.

World Banks, IXG, were led lower by The National Bank of Greece, NBG, -7.4%, Banco Santander, SAN, -5.8%, European Financials, EUFN.

The All Important Yield Bearing Stocks trading lower today included DTN -1.3%, VIG, -1.6%, VNQ -1.9, and DBU -2.6%. These together with the most toxic of debt that is the Distressed Investments held by the US Federal Reserve, and traded by Fidelity Mutual Fund, FAGIX, as well as Senior Bank Loans, BKLN, and Junk Bonds, JNK, have been the credit basis for Liberalism grand finale risk-on Euro Yen Currency Carry Trade Rally, EUR/JPY, which was supported by PBOC Monetary Injections, as well as by BOJ Unlimited Quantitative Easing.

The Currency Demand Curve, the ratio of the Small Cap Value Stocks relative to the Small Cap Growth Stocks, RZG, manifested strongly lower, communication that competitive currency deflation is  underway.  Small Cap Value Stocks, RZV, traded 2.8% lower, while the Small Cap Growth Stocks, RZG, traded 1.3% lower.  

The US Dollar, $USD, UUP, rose, to 81.67, as Major World Currencies, DBV, traded 0.7% lower, and Emerging Market Currencies, CEW, 0.5% lower.  Business Insider reports It looks like the dollar is about to surge. Reuters reports James Saft sees a coming Dollar bull run.

Commodities, DBC, traded lower being led so by Base Metals, DBB, Agricultural Commodiites, JJA, and Oil, USO. Gold, GLD, rose.

Mike Mish Shedlock writes Beppe Grillo’s Five Star Movement on verge of being largest political party in Italy; its Stock Market futures plunge 3.5%. The center-left coalition of four political parties has 29.7% of the vote, but Bersani’s party, Partito Democratico (Pd), has 25.5% of the vote. Beppe Grillo has no coalition. His MoVimento 5 Stelle (M5S) party is in a dead tie with 25.5% of the vote.
On an Actual Party, Not Coalition Basis:
Pier Luigi Bersani – Partito Democratico (Pd) – 25.5%
Beppe Grillo – MoVimento 5 Stelle (M5S) 25.5%
Silvio Berlusconi – Il Popolo della libertà (Pdl) – 21.4%

Ambrose Evans Pritchard writes Euro debt crisis looms again as Italians defy EU austerity demands. The eurozone’s debt crisis strategy was in chaos on Monday night after anti-austerity parties appeared on track to win a majority of seats in the Italian parliament, vastly complicating efforts to forge a government able to carry through EU-imposed reforms. And The NYT reports Split Vote Sends One Clear Message in Italy: No to Austerty Italy vote shows backlash against political establishment:

Bloomberg reports Italy renews market jitters as voters reject Monti austerity. Italy’s inconclusive election triggered renewed market jitters over Europe’s debt crisis as recession-scarred voters repudiated budget rigor and established former comedian Beppe Grillo as a political force. In the four-way race, pre-election favorite Pier Luigi Bersani led for control of the lower house by less than a half percentage point. Silvio Berlusconi, the former premier fighting a tax-fraud conviction and charges of paying a minor for sex, called for a recount and won a blocking minority in the Senate. In its first national contest, Grillo’s group got 25 percent support and was probably the most-voted party in the lower house. “The political situation across Europe is effectively a race between austerity and reforms on the one hand and the rise of populist movements on the other.” said Alberto Gallo, head of European macro credit research at Royal Bank of Scotland Group Plc. “Austerity is painful, and if reforms are not implemented in time, you run the risk of social unrest and populism. It hasn’t happened so far in Greece, it hasn’t happened in Portugal or Spain, but we are very close in Italy.”

Bloomberg reports: Grillo’s anti austerity wave crashes into Italian Parliament. Beppe Grillo, the comic banned from Italian television two decades ago for ridiculing a corrupt cadre of ruling lawmakers, had his political satire rewarded yesterday with about 180 seats in Parliament. Grillo’s parliamentary list filled with political neophytes amassed enough votes in yesterday’s election to deny a majority to front-runner Pier Luigi Bersani and a comeback to three-time Premier Silvio Berlusconi. As his competitors seek to cobble together a make-shift alliance, the 64-year-old Grillo is keeping his distance and preparing for a new vote. “They can’t hold us back any longer,” Grillo said late yesterday in a video posted to his website. “They might go on another seven or eight months and produce a disaster, but we will be watching and working to keep it under control.”

CNBC reports Silvio Berlusconi rules out an alliance with former Italian prime minister Mario Monti  saying the election results reflected popular discontent with austerity measures. Speaking in a TV interview after the Italian elections created a political stalemate, Berlusconi said it was time to reflect on the results.But he also added that a return to polls wouldn’t be “useful”.

John Rubino of Dollar Collapse writes Why we’re ungovernable, Part 7: Italy does chaos with style
As an Italian-American I’m allowed to say it: Italians are an amusing mess. They go on about “la dolce vita,” the sweet life of long lunches and short work days and pretty girls on little scooters – without acknowledging or apparently even realizing that the whole show is based on other people’s money.

Robert Stevens of WSWS in Social counterrevolution in Greece, describes the humanitarian crisis in that nation.

2) … On Wednesday February 27, 2013, stocks rallied on Bernanke comments
Bloomberg reports Bernanke says Fed sees reduced risk of Japanese style deflation; and WSWS reports Bernanke said “I don’t see much evidence of an equity bubble,” Bernanke said of the near record surge in stock values  and in response the  Transports, IYT, led the Industrials, IYJ, bouncing higher.  Sectors rising included, XTN, WOOD, ITB, PKB, FDN, PPA, XLE, and XRT. Silver, SLV, traded 1.4% lower and Gold, GLD, 1.0%, lower.  Japan, EWJ, rose strongly, and Japan Small Caps, JSC, blasted to a new rally high. The Russell 2000, IWM, Turkey, TUR, China, YAO, China Small Caps, CHII, ECNS, China Industrials, CHII, Taiwan, EWT, South Korea, EWY, and New Zealand, ENZL, rose strongly; and the Phillippines, EPHE, climbed to a new rally high, which stimulated Small Cap Nation Investment, IFSM, and Nation Investment, EFA higher, but these remain below their rally high.    

The NYT reports Split vote sends one clear message in Italy: No to austerity.  And Bloomberg reports Italy confronts vacuum as leaders seek to avoid election. Italian party chiefs began jockeying to forge a coalition of rivals and head off a second vote as a political vacuum of at least a month loomed, threatening to whipsaw financial markets. In the aftermath of an inconclusive election, Democratic Party leader Pier Luigi Bersani and resurgent ex-Premier Silvio Berlusconi may be seeking to avoid a ballot that would favor populist Beppe Grillo, whose movement was the top vote-getter in its first national contest. No formal steps can be taken until a new parliament convenes March 15. “If they don’t change strategy and go vote again with similar candidates, the risk is a Grillo landslide,” Giovanni Orsina, a history professor at Luiss Guido Carli University in Rome, said in an interview today. Reuters reports Italy must reduce unsustainably high level of debt – EU Commission Says. And Bloomberg reports EU Chiefs tell Italy there’s no alternative to austerity  And Ambrose Evans Pritchard writes ECB bond plan in jeopardy as Italy’s voters reject conditions.  Italy’s electoral earthquake is “a catastrophe for the euro and the European Union”, according to Luxembourg’s foreign minister, Jean Asselborn.

Economic Times reports Italy Faces Worst Six Months in 50 Years: Giorgio Squinzi. The head of Italy’s main business federation warned in an interview today that the next six months will be the worst for the country in 50 years as the economic crisis reaches its peak. “The next six months will be terrible, the worst in 50 years,” Giorgio Squinzi, the head of the Confindustria lobby, told La Repubblica daily. “The situation is very serious,” Squinzi said. “GDP ( gross domestic product) has shrunk 8.1 percent since 2007 and 3.2 million people have been out of work,” he said. “Politicians have to create the conditions for growth. This is a last chance,” he warned. Asked about the political situation, Squinzi suggested a grand coalition government to deal with urgent issues. “The real economy cannot wait for political machinations,” he said. Squinzi called for “shock therapy” for Italy, with tax cuts and immediate payment of debts that the state has accrued with the private sector. He also dismissed the idealistic economic proposals made by the anti-establishment Five Star Movement led by former comedian Beppe Grillo, which had a shock electoral success. “If we applied Grillo’s programme, Italian industry would be finished. We would become a rural and bucolic country,” he said.

3) … On Thursday March 28, 2013, India Stocks fell sharply lower.  
India Small Caps, SCIN, literally collapsed, falling 5.3%; and India, INP, 3.5%. Argentina, ARGT, traded 2.8%, South Africa, EZA, 2.1%  and Russia, RSX, 1.3% lower.  Business Insider reports India’s new budget plans won’t bring the economic growth the country desperately needs. India Banks are required to purchase India Treasury debt. Finally , monetization of this India’s treasury debt has enabled currency traders to sell the India Rupe, ICN, causing investors to derisk out of India Banks, HDB, and IBN, Automobile Manufacturers, TTM, and Drug Manufactures, RDY.  India’s continued deficit spending, coupled with slower growth, has turned the tide on nation investment in India, INDY.
Silver, SLV, traded 1.8%, lower, Gold, GLD, 1.2%, Oil, USO, 1.0%, Copper, JJC, 0.9%,  Base Metals, DBB, 0.7% all lower; as Agricultural Commodities, JJA, rose 1.1% higher.  

Reuters reports Italy’s Grillo rules out voting for center-left government. Bloomberg reports With Italy In disarray, Berlusconi emerges anew as a power And also reports Italy investors will force Bersani Berlusconi deal, Polillo says

The Telegraph reports  EU Troika rule in Ireland worse than British Empire. Ireland’s trade union chief has accused the EU-IMF troika in charge of Irish austerity policies of tipping the economy into downward spiral and acting as an imperial oppressor.

Open Europe Events asks Is Ireland the poster child for the eurozone crisis response?  Open Europe hosted an event in Brussels yesterday titled, “Ireland: the poster child for the Eurozone’s crisis response?” Dublin-based economic commentator Constantin Gurdgiev argued that Ireland remained subway below where it should be, and warned that positive headline GDP figures are distorted by multinationals which transfer money out of Ireland. Zsolt Darvas, of the Bruegel think tank, offered similar warnings on the need for significant reform in Ireland but highlighted a lack of alternatives to the current path and stressed the depth of the crisis must be kept in mind. Open Europe’s Head of Economic Research Raoul Ruparel suggested that while export growth has been positive, it is the only driver of growth in Ireland, with domestic demand collapsing. This leaves Ireland exposed to faltering trading partners and a strengthening euro. Raoul also warned that the banking sector remains shaky and unprofitable as well as being a massive burden on the state.

Open Europe reports via WSJ FT Bloomberg European Voice Slovenia’s Prime Minister, Janez Jansa, has become the latest casualty of European public anger at austerity measures and alleged government corruption, as he was ousted in a no-confidence vote last night. Alenka Bratusek, the head of the largest opposition party, will become interim Prime Minister with new elections expected in early 2014.

Please consider investing in the Euro Intelligence Daily News Briefing which reports the European Commission will force a valuation of Bankia shares at 1 cent a share, thus wiping out existing shareholders.

Euro Intelligence continues We are quite surprised to see the number of news organisations yesterday who took the Bersani-Grillo option seriously – even advocating it as a way out of Italy’s crisis. Grillo’s Movimento 5 Stello supports a PD minority government in Sicily – but national politics is very different, especially as in this case Grillo’s agenda is much more radical than it is on regional level. Grillo is effectively campaign for a withdrawal from the EU – not just the euro – with his demand to reopen all European treaties.

That silly phase of speculation ended abruptly yesterday Grillo hilarious he called Pier Luigi Bersani a dead man talking – morto que parla in his blog. He then heaped a series of insults on Bersani, calling him a political stalker, and said he should have resigned like any normal person would have done under his circumstances. This is quite a blog entry. He lists Bersani’s insults against the M5S in his election campaign, and concludes that the M5S will not support him in a confidence vote in the Senate, which is what Bersani needs to become prime minister. Il Fatto Quotidiano adds a remark by Grillo according to which Italy will be the new headquarter of revolt against Germany’s austerity and the bankers’ conspiracy.

Having been so rudely rebuffed by Grillo, Pier Luigi Bersani is now open to alliances with other political forces to rule out instability, as La Repubblica reports. The Partito Democratico is ready to begin talks to create a new government, while his key ally Nichi Vendola, the SEL (Sinistra, Ecologia e Libertà) leader ruled out every deal with other parties. According to Bersani, the relationship with Vendola is not at risk and there are no plans to create a grand coalition government. Bersani also said the first priority of the country is to reverse the austerity measures and boost the Italian economy.
(That would suggest that Berlusconi would support a minority Bersani government. Bersani is going to great length to avoid a Grand Coalition – naturally because it would have a different leader than him.)

Silvio Berlusconi warns over possible instability over Italian elections and urges a stable coalition before mid March, as Il Corriere della Sera reports. He remarks that Italy would otherwise risk paying a very high price on financial markets. Italy will have a stable government until March 15, Berlusconi says. He said the hung Parliament was less of a problem in the long term than in the short term. The PDL will reach an agreement to give Italy a government, Berlusconi affirms.

4) … On Friday March 1, 2013, Greece, Italy, and the European Financials traded lower again as the US started down the road of automatic budget cuts with The Sequester.  
Reuters reports The US starts down road of automatic budget cuts under The Sequester. The US  government hurtled on Friday toward making deep spending cuts that threaten to hinder the nation’s economic recovery, after Republicans and Democrats failed to agree on an alternative deficit-reduction.

Again I encourage that one purchase a subscription to Euro Intelligence which relates Renzi ready to take on Bersani and lead Grand Coalition.  Corriere della Sera reports this morning that Matteo Renzi, the mayor of Florence, has stepped into the fray and said that he is ready to become prime minister of a Grand Coalition of the PD, PdL, and Grillo’s party; Corriere rites that a coalition under Renzi, a PD moderniser who lost to Pier Luigi Bersani in the primaries, would offer the best chance for a stable, pro-European government; Bersani, meanwhile, has ruled out a coalition with the PdL, and wants to run a minority government with an agenda of 7 or 8 reforms; the European Commission and the IMF yesterday called on Italy to continue the path of reforms; Tito Boeri and Luigi Guiso have the solution for Italy: another technical government.

After the economic crisis, now comes the political crisis. Tito Boeri and Luigi Guiso write on Lavoce that the return of Silvio Berlusconi, linked to rise of Beppe Grillo, is the signal of an increasing rage against political institutions and Italian ruling class. It is a destructive situation that may have a solution: a grand coalition government led by a technician like Mario Monti, but not Monti, obviously. According to Boeri and Guiso, there is room for reform of electoral law as well as the country should not disperse the efforts on structural reforms of 2012.

(We agree on that a Grand Coalition could work, but only a political grand coalition, not one run by another remote professor. The problem in Italy is the disconnect between the economic policies pursued and their political legitimacy. Government is by definition political, not technical.)

Euro Intelligence adds that a confidential troika report shows that the Greek record on tax collection remain catastrophic – only 10% of assessed taxes are collected. Thousands of Greek company owners and self-employed professionals routinely contest their assessments through the courts waiting for the finance ministry to grant tax amnesty settling for a tax bill cut by at least 30%.

Mike Mish Shedlock writes 84% of Greeks, 90% of Greek businesses have difficulty repaying loans.  Think Greece has been “saved” by the Troika? A quick look at some loan repayment stats may help you think clearly. Please consider ekathimerini More than 80 pct of Greeks are having difficulties repaying loans.  That loan data highlights what any clear-thinking person already knows: Greek banks are insolvent and will be in need of still more recapitalization

Greece, GREK, and Italy, EWI, led Nation Investment, EFA, lower. Countries trading lower included, EWG, EIRL, EWP, EWN, EFNL, EWU, and INP.  Small Cap Nation Invesment, IFSM, trading lower included SCIN, EPHE, GERJ, EWZS, and KROO. Nations trading higher included THD and TUR.

Austrian economist Benson Te covers the Philippine Stock Market, that is the Phisix stock Exchange PSEi, and writes in More signs of manic phase in The Phisix, ASEAN and the US Finally a much needed reprieve for the Philippine Phisix. Yet this week’s .34% loss can hardly be seen as the required “correction” or “profit-taking” phase following EIGHT successive weeks of advances that has brought about a magnificent 14.27% of returns in 2013. This week’s marginal profit-taking has barely changed the parabolic phase and near vertical picture which the local bellwether has transitioned to. Going back to the Philippines, the manic phase of bubbles—which I described as last week as yield chasing phenomenon that are essentially underpinned by voguish themes unquestioningly embraced by the public and most importantly enabled, facilitated and financed by credit expansion [19] seems to be well intact. The Philippine central bank, the Bangko Sentral ng Pilipinas (BSP) reports that for January [20] systemic credit continues to be vigorous, albeit at a slightly lower pace on a month to month basis, 15.6% December and 16.6% for January. The pace of credit expansion undergirding the supply side growth is almost three times the rate of economic growth. This is the tooth fairy from the populist “Aquinomics”: a credit bubble that will soon be unmasked along with the other central planning fantasies masqueraded as economic policies

Sectors trading lower included KWT, XSD, SLX, XME, PSCE, IEZ, OIH, CARZ, FLM, IGN, PICK, COPX, URA, REMX, and KOL.

European Financials, EUFN, traded lower.

A new financial crisis is coming as the result of sovereign insolvency and Eurozone banking insolvency.

Soon there will be no democracies in the Eurozone. Sovereign nations, their banks, and European Socialism are all creatures of treasury debts that cannot be repaid. European countries are insolvent and thus they have no sovereign authority. EU countries and their banks are being sustained by the monetary authority of the ECB, which is rising as a regional sovereign body.

This week investors derisked out of Europe’s insolvent nations, Greece, GREK, Italy, EWI, Spain, EWP, and Ireland, EIRl, and their insolvent national banks, NBG, SAN, IRE, as insolvent countries cannot provide seigniorage, that is moneyness, to investors, or provide fiscal spending resources to citizens.    

New regional sovereign authority is coming.out of the European Sovereign Debt Crisis, where those living in Euroland will no longer be citizens of any nation, but rather residents living in a region of fascist economic governance where nannycrats manage the factors of production and oversee regional resources under the direction of a monetary pope and a regional king.

5) …  German President Joachim Gauck calls for German Led More Europe; it will be the leading example of regional governance as Liberalism shifts to Authoritarianism.  
Dr. Worden writes Solidarity as a shared value in European identity. Speaking at the Schloss Bellevue palace in Berlin, German President Joachim Gauck uses major speech to call for More Europe, where he makes the case for more European integration,  
At the time, calling for “more Europe” in terms of shifting still more governmental sovereignty from the state governments to that of the Union was not a very popular task. Further limiting the power of his message is the fact that the German presidency is largely ceremonial , unlike the office of governor in an American state. Nevertheless, Gauck was determined to put the contemporary condition of the “European project” in favorable perspective.
The most striking—and even effective—aspect of his speech is his repeated references to “European citizens.” Had he used “Germans” instead, he would have subtly undercut his own message.

Acknowledging the fiscal and structural imbalances that gave rise to the debt crisis in several E.U. states and the problems entailed in “patching up” the problems by emergency measures, Gauck nonetheless pointed to non-economic elements of the European project that were also in crisis. “It is also a crisis of confidence in Europe as a political project. This is not just a struggle for our currency; we are struggling with an internal quandary too.” This problem is predicated on the point that the strengthening of a European identity comes out of a recognition of shared values, rather than in differentiation from other cultures outside of Europe.

Too often, Europeans artificially delimit their values to their particular state. Typically, Europeans will preface a self-referential remark with, “In my country,” only to describe a custom or value that is by no means limited to, distinctive in, one particular state. Even in saying “more Europe means a European Germany,” Gauck risked falling into this trap, at least in terms of keeping Europe as secondary. More in line with his thesis would have been the expression, more Europe means more European. More European in turn means more of a consciousness of values that European citizens (and residents) share, whether or not people in Africa, Asia, or America happen to esteem those values too. So the question facing European citizens is this: What values do you share?

From an American perspective, I notice the salience of the value of solidarity held by Europeans because it is such a recessive value in America. Ironically, World War II was perhaps the last time solidarity in terms of “we’re all in it together” was explicitly pushed and acknowledged in America. Even then, the value was more in terms of sacrificing for a common purpose rather than seeing to it that the most vulnerable among us do not fall through the cracks in terms of sustenance. In Europe, solidarity has more of a social welfare quality.

Moreover, whereas Americans tend to apply human rights only to the harm caused by tyrants abroad, Europeans tend naturally to extend to the value to covering the basic sustenance rights of one’s own fellow citizens as well. The shift needed for a stronger European identity involves becoming aware of the duty to apply the value domestically to other Europeans rather than merely to people in one’s own state, or “country.” So “European Germans” would feel solidarity with starving “European Greeks,” for example. This is the element that was largely missing from the austerity response of E.U. finance ministers to the debt crisis from 2010 to 2012.

Accordingly, “more Europe” involves not only a stronger value-fueled-identity, but also more fiscal redistribution at the federal, or E.U., level. Put another way, Europeans surely have more shared values than that of austerity.

6) …  Liberalism’s great Banking Schemes produced Peak Sovereignty and Peak Seigniorage, that is Peak Moneyness, to produce Peak Prosperity. The Age of Credit and the Age of Prosperity is over, and the Age of Debt Servitude and the Age of Austerity is commencing on the traded lower in major world currencies and emerging market currencies.
Sovereignty begets seigniorage, that is moneyness, and trust in the debt of the sovereigns, that is in the US, VTI, Germany, EWG, Spain, EWP, Italy, EWI, Greece, GREK, Germany, EWG, China, YAO, Australia, EWA, Japan, EWJ, Norway, NORW, Sweden, EWD, Denmark, EDEN, Finland, EFNL, India, INP, and others produced Peak Commodities, DBC, on September 14, 2012, Peak Credit, BND, on December, 6, 2012, Peak Wealth, VT, on January 28, 2013, Peak Nation Investment, EFA, February 1, 2013, and Peak Currencies,  DBV, and CEW, and thus Peak Seigniorage, and Peak Prosperity on February 11, 2013.

Matthew Leising Bloomberg reports  “Jim Casey, co-head of global debt capital markets at JPMorgan Chase says 2012 was so spectacular that it deserves a moniker: the Year of Refinancing. The cost of borrowing for companies fell to a record low of 3.24% last year, spurring the flood of deals. With rates so depressed, corporations, which typically refinance debt that matures in one or two years, issued replacement bonds for credit that’s due in four years. Casey says that doubled the potential number of clients for bankers. Corporate and sovereign borrowers issued $3.69 trillion in debt in 2012, generating $19.2 billion of fees for banks, both records.  Investor demand for debt was so strong that banks were able to revive collateralized loan obligations, the bundles of securities that helped inflate the credit bubble that burst in 2008. About $55 billion in CLOs were sold last year compared with $13 billion in 2011.”

The sovereigns of Liberalism, nation states and their central banks gave seigniorage to money, that is wealth, producing the seigniorage of investment choice. Asset Managers such as BLK, WDR, EV, STT and WETF, Investment Bankers such as JPM, the World’s Leading Banks such as SAN, NBG, RBS, LYG, BCS, HDB, IBN, and UBS, The Too Big To Fail Banks such as BAC, and C, the Regional Banks such as SNV, HBAN, and RF, coined Liberalism’s money, consisting of fiat investments; some of which were given more seigniorage than others, such as Gaming Stocks, BJK, Leveraged Buyouts, PSP, Small Cap Growth Companies, such as CSL, Global Producers, IP, and GE, Dig And Dirt Equipment Manufacturers, MTW, Agricultural Companies, MON, and Small Cap Revenue Companies such as LAD, to name just a few.

Where seigniorage exists, that is where moneyness manifests, there exists a sovereign producing it.
New seigniorage, that is new moneyness, is coming on the death of the fiat money system, that is on the death of the Milton Friedman Free To Choose Floating Currency Regime. The sovereigns of the Era of Credit and the Epoch of Fiat Asset Appreciation and the Age of Prosperity are dying on the exhaustion of the world central banks’ monetary authority and on the death of of currencies. Kayla Tausche of CNBC reports JPMorgan to slash 4,000 staff, $1 Billion in costs. And Bespoke Investment Group reports Euro Spreads widen out.  Bloomberg reports Bank credit risk surges in Europe amid Italian election deadlock. The cost of insuring against default on European bank debt surged to the highest in three months on concern deadlock in Italy’s elections will trigger a flight from risky assets as a political vacuum roils markets. Gridlock in parliament means gridlock in the economy, Alberto Gallo, the head of European macro credit research at Royal Bank of Scotland Group Plc in London, wrote in a client note.  The longer the instability lasts, the more the recession can deepen, pushing up unemployment, defaults and bad loans.” The Markit iTraxx Europe Index of swaps on investment-grade companies rose seven basis points to 120, the highest since November 30, 2012.

Operating through Destiny, Revelation 1:1, Jesus Christ is replacing the Banker Regime of Liberalism with the Beast Regime of Authoritarianism, and with that, Crony Capitalism, in America, European Socialism, in France, and Greek Socialism, in Greece, is being replaced by Regional Governance, Totalitarian Collectivism, and Debt Servitude, in Euroland, in fulfillment of Revelation 13:1-4.

Christ began by unleashing the First Horseman of the Apocalypse, to transfer the baton of sovereignty from nation states to the sovereigns of Authoritarianism, these being regional leaders, regional bodies, and soon coming regional public private partnerships, as presented in Revelation 6:1-2, in May of 2010, with the First Greek Debt bailout, led by Herman van Rompuy and Angela Merkel.

And Christ is producing from the crumbling two iron legs of global hegemony, these being the British Empire and the US, a Ten Toed Kingdom of regional governance, where toes of a miry mixture of iron diktat and clay democracy, rule in the world’s ten regions, as foretold in Daniel 2:25-45. Jordan Michael Smith writes Lessons from the British Empire.  Cecil Rhodes comprehended the magnificence of the British Empire; he once remarked that “to be born an Englishman is to win first prize in the lottery of life.”

The first of two iron legs of global power, that being Britain, ceased, so that the second of the two legs of global power, as foretold in bible prophecy of Daniel 2:25-45, could begin its rise to global dominance, establishing the rise of Liberalism that began in 1913 with the establishment of the Creature From Jekyll Island. Further banking schemes strengthened Liberalism. These included the establishment of the State of Israel in 1948, the ceding of the Suez Canal and the ceding of Hong Kong, which decimated British global hegemony

The world is at Peak US Hegemony.  US Hegemonic thought leaders are Frederick Kagan, who came out of Yale Law School, and became a neocon who served with the US Defense Department as Adviser to General  Stanley McChrystal. And also Danielle Pletka, American Enterprise Institute VP, strong advocate for the Iraq War and defender of Ahmed Chalabi.  US Hegemony is coming under threat.  AP reports Military leaders say Congress must stop Sequester. The billions of dollars in defense budget cuts scheduled to begin at the end of the week will have a swift and severe impact on military readiness and Congress needs to take fast action to stop them, members of the Joint Chiefs of Staff said. An inquiring mind asks one, will Britain, Canada, Italy, Turkey, Denmark, Netherlands, Australia, and Norway continue to support the F-35 program, where the contractor is Lockheed Martin, LM,  and Pratt & Whitney, a unit of United Technologies, UTX, supplier of the engines?   

It’s as Peter Schiff relates in Yahoo Breakout America is becoming the United States of Britain. The President & CEO of Euro Pacific Capital says the near-term fate of the colonies is being foreshadowed across the pond as its sovereignty is crumbling.

Germany will be the hub of all economic production in Europe for ever. The PIGS will be desolate, hollow moons, revolving around Planet Germany, existing as colonies of Brussels and Berlin technocratic government. Germany will be the epicenter of a revived Roman Empire, exercising regional governance over vassal peripheral Eurozone states. Handelsblatt reports Germany is liable for EU134b of bailout money, citing Finance Ministry calculations it obtained. Liability risk for credits paid out to Greece, Ireland, Portugal and Spain amounts to EU112b. Hat Tip to Between the Hedges.

The introduction of the Euro did a number of things, it created the Euro, FXE, as a Commodity Currency, CCX, which drove up the price of Commodities, DBC, and created European Socialism, and the most extreme form of Socialism, that being Greek Socialism, and it created Export Germany, based upon what is fiat asset deflation in Germany, as is indicated by Germany’s low unit labor cost, by the failure of its housing prices to soar like in Spain and France, and by the depression of German Treasury Debt. In The Economist Magazine Print Edition Long After The Party, How Italians are going to vote is not clear; but the vote will matter both to the future of their country and to the Euro, page 26, the chart of Eurozone Unit Labor Costs from 1999 through 2011, shows that Spain, followed by Italy and then France have labor costs in excess of 128, compared to Germany with 102.  There is no amount of restructuring or rebalancing that can be done in the periphery to stabilize the European Union. Like oil and water, the core, being Germany, and the periphery, being the PIIGS, cannot mix; one will rise to the top, and the other settle to the bottom.

Not only will Germany be the epicenter and hub of economic activity in Euroland, it will also be the head of hegemonic military and spiritual attention as well. Johannes Stern of WSWS writes The return of German imperialism. Germany is making intensive preparations to wage new wars to secure resources. Wolfgang Weber of WSWS reports German Government decides on military deployment in Mali. Veit Medick of Der Spiegel reports Germany lans to deploy armed drones in combat. Tyler Durden reports German lawyer to head Vatican Bank A German pope may be vacating the Vatican but a German lawyer is about to head its bank, an institution some say is as important if not more, and whose shady dealing some say may have been the reason for the pope premature departure. Per Reuters, The Vatican appointed German lawyer Ernst von Freyberg to be the new president of its bank filling a post left vacant when the previous head was ousted from the scandal-tainted institution.

As it grows in prominence, Germany will transition from being a One Euro Government to being a One World Government as foretold in Daniel 7:7, the fourth beast, and in Daniel 7:23.
The first beast is presented in Daniel 7:4 as being, “Like a lion; it has eagles wings”. This beast was Babylon, whose emblem was a lion with eagle’s wings.
The second beast is presented in Daniel 7:5, “Then behold! Another beast, a second one, similar to a bear; it was placed on one side, and there were three ribs in its mouth between its teeth; and this is what they said to it, ‘Arise, devour much flesh!’” The second beast was Medo-Persia.
The third beast is presented in Daniel 7:6, “After this I was watching and behold! Another beast, like a leopard, with four bird’s wings on its back; the beast had four heads, and it was given dominion”. The third beast was Greece. When Alexander the Great died in 323 C.E., his empire was divided between and ruled by four of his generals.
The fourth beast, is presented in Daniel 7:7-8, “After this I was watching in night visions, and behold! A fourth beast, exceedingly terrifying, awesome and strong. It has immense iron teeth, and it was devouring and crumbling, and trampling its feet what remained. It was different from all the beasts that had preceded it, and it had ten horns. As I was contemplating the horns, behold! Another horn, a small one, came up among them, and three of the previous horns were uprooted before it. There were eyes like human eyes in this horn, and a mouth speaking haughty words”.

The fourth beast, Empire Germany, will manifest as a revived Roman Empire, that is an authoritative kingdom from today’s EU Debt Crisis, whose Emperor, The Sovereign, seemingly one of little authority, Daniel 7:8, will rule a One Euro Government, and eventually conquer three of the world’s other ten regional kings as he rises to rule the world, and sets up his world headquarters in Jerusalem, Daniel 9:25.   

And Daniel 7:23, relates, “Thus he said, the fourth beast shall be the fourth kingdom upon the earth, which shall be diverse from all kingdoms, and shall devour the whole earth, and shall tread it down, and break it to pieces.” The coming European Empire will eventually rise to govern the world as a one world government, which will precede the coming of Christ to establish his World Wide Kingdom.

Most definitely new sovereignty, new sovereigns, and new sovereign wealth will be coming from two agents of Destructionism, these being first, the unwinding of the Euro Yen Currency Carry Trade, that is the EUR/JPY, and the second, competitive currency devaluation. Zero Hedge reports Why Central States/Banks inflate asset bubbles, and why they implode.

The economic and political shift from Liberalism to Authoritarianism is foretold in Daniel 2:25-45, as a Ten Toed Kingdom, that is a global empire, existing with toes, that is regional zones, of a miry mixture of iron diktat and clay democracy

The Banker Regime of nation states and their central bankers, is being replaced by the Beast Regime of Fascist Regional Governance, Totalitarian Collectivism, and Debt Servitude, as presented in Revelation 13:1-4, an event that is unseen by practically everyone, as it has a coat of a leopard, whereby it blends in with all of mankind’s media, technology, banking, educational, banking, government and religious and think tank institutions; the feet of a bear which enables it to stand its ground as well as root out its enemies, and the mouth of a lion to make authoritative governing statements; this minotaur, is the ultimate predator, devouring all who it chooses to consume.

Please consider that a German centric EU will attempt to spread Christian Religion, not genuine Christianity, through military power in the Age of Regionalism. Yet it will come head on to Mystery Babylon, described as a whore who rides the Beast Regime, as it rises to govern in all the world ten regions and ia all the world’s seven regions, Revelation 17:3-5.  Mystery Babylon is the combined political, economic and religious experience that will unify mankind, when the Sovereign, Revelation 13:5-10, and the Seignior, Revelation 13:11-18, come to rule from Jerusalem, Daniel 9:25; at that time the world’s leader will command and receive worship as God.     

Regionalism is replacing globalism. The dynamos of Liberalism, corporate profitability and global growth, are winding down on the exhaustion of the world central banks’ monetary authority and resulting inability to stimulate global growth and corporate profitability, as well as on the dynamic that the monetary policies of the US Fed, the ECB, the BoJ, and the PBOC, to monetize debt, have crossed the rubicon of sound monetary policy, and have turned “money good” investments, bad.  

Both Major World Currencies, DBV, and Emerging Market Currencies, CEW, crested on February 22, 2013, turning the value shares, RZV, JKI, JKF, which have been the backbone of Liberalism’s Finance since QE1, lower. The dynamos of Authoritarianism, regional security, stability and sustainability, are winding up regional diktat on unwinding currency carry trades, such as the EUR/JPY, and falling currencies such as the British Pound Sterling, FXB. Gold Money reports UK downgrade knocks British Pound Sterling.

Major World Currencies, DBV, traded 0.5% lower, and Emerging Market Currencies, CEW, 0.7% lower, and Small Cap Pure Value Shares, RZV, traded 1.5% lower this week, communicating that competitive currency devaluation is underway. The US Dollar, $USD, traded up 1.0% to close at 82.31, as the Indian Rupe, ICN, -1.6%, the Norwegian Krone, -1.6%. the New Zealand Dollar, -1.6%. the British Pound Sterling, FXB, -1.5%, the Swiss Franc, FXF, -1.4%, The Danish Krone, -1.3%, the Euro, FXE, -1.3%, the Australian Dollar, FXA, -1.2.%, the Canadian Dollar, FXC, -0.6%, the Brazilian Real, BZF, -0.4%, the Japanese Yen, FXY, -0.2%, and Emerging Market Currencies, CEW, -0.6%

Investors deleverage out of Commodities, DBC, which traded 2.4% lower.

Italy, EWI, traded 5.3%, lower, Greece, GREK, 4.0%, Spain, EWP, 1.9, Germany, EWG,1.1%,  taking Nation Investment, EFA, 0.7%. European Financials, EUFN, traded 2.0% lower. Investors have been derisking strongly out of The Netherlands, EWN, specifically, UN, LYB, PHG, AEG, and ENL, as the Euro, FXE, turned lower on February 13, 2013.  Investors sold out of the other Nordic Nations, Finland, EFNL, Norway, NORW, and Sweden, EWD, as well as out of India, INP, India Small Caps, SCIN, Russia, RSX, Russia Small Caps, ERUS, The UK, EWU, and Argentina, ARGT.           

Sectors trading lower included Solar, KWT, 7.2%, Uranium Mining, URA, 4.1, Metal Manufacturing, XME, 4.2, Copper Mining, COPX, 2.7%, Rare Earth, REMX, 3.0, Coal Mining, KOL, 2.7%,  Semiconductors, XSD, 2.5%, Networking, 2.1%, Steel, SLX, 2.2%, Mining 1.1%, Energy Service, OIH, IEZ, -1.7, Design Build, FLM 1.3%.  Small Cap Gold Mining, GDXJ, 3.1, Gold Mining, GDX, 2.1, Small Cap Silver Mining, SILV, 3.6. Silver Mining, SIL, 2.6

Soon World Stocks, VT, VSS, will have an inflection point where “risk on” succumbs to “risk off”.  Risk on is definitely still on in Nasdaq Biotech, IBB, which traded 2.4% higher and Paper And Timber, WOOD, 2.0% higher.  

Doug Noland writes in Italy and “Ro, Ro” The Italian electorate essentially voted against EU imposed “austerity” they believe is being dictated by Berlin. Berlusconi and Grillo ran campaigns critical of both the loss of sovereignty to European mandates and the euro currency more generally (Grillo has called for a public referendum on the euro). Friday from Bloomberg: “CDU [Merkel’s party] lawmaker Klaus-Peter Willsch says if majority of Italians cannot be convinced to stand by EMU rules, the country must be allowed to return to its own currency, Handelsblatt says… Monetary union will only survive if it benefits all its members.” Napolitano cancelled a scheduled meeting with the candidate running against Chancellor Merkel in Germany’s September elections, after Peer Steinbrueck was quoted as saying he was “horrified that two clowns won the election.” One can ponder the outcome if Germany’s Bundestag is ever called upon to vote for what would be a very large bailout package for Italy.

There are serious long-term ramifications for the rise of anti-European integration populism in Italy and throughout Europe. For now, the pressing issue is whether Italy can cobble together a functioning government. Grillo’s independent Five Star Movement actually received the most votes of any individual party. He has nothing but acrimony for the establishment – essentially calling for the downfall of the traditional dominating political parties. Grillo has had particularly harsh words for Bersani, while stating that he will not join a coalition with either Bersani or Berlusconi. Meanwhile, Bersani and Berlusconi despise each other. And new corruption charges against Berlusconi have his supporters livid. New elections may be necessary, although it doesn’t appear Bersani, Berlusconi or Grillo prefer that route for now. Complicating matters, the term of Italy’s President (Giorgio Napolitano) – who has a traditional role dissolving parliaments, calling for new elections and brokering alliances – ends next month. Some type of “loose” – and likely dysfunctional – coalition government seems likely.

I envision a dysfunctional “loose” coalition as well, out of which will come total chaos, as Ambrose Evans Pritchard writes Comedian Beppe Grillo repeated his vow to “bring down the old system” and dismissed the latest talks as cattle market trading by a depraved political class trying to circumvent the will of the people. “I repeat for the umpteenth time, the Five Star Movement will not back any government. It will vote law by law in keeping with its platform,” he said. “We’re not a political party, we’re a civic revolution. This country is in ruins with two trillion in debts and we have to rebuild it from scratch,” he told a scrum of journalists. In a rhetorical play on the slogans of 1789 and 1917 he exhorted “all citizens” to descend on parliament.

7) … Summary, The world has attained Peak Democracy, Peak National Sovereignty and Peak Prosperity under the Banker Regime which has provided the Milton Friedman Free To Choose Floating Currency Regime.
In Europe, the Nordic Latin cultural and economic divide is striking and widely known. Norway, Sweden, Denmark, and Finland, have debt loads significantly below those of the eurozone. Sweden’s government spending as a percent of GDP has fallen from 55% to 50% since the introduction of the Euro. And the Nordics have high rates of female labor force participation.

On all international metrics of competitiveness, entrepreneurship, innovation, creativity, responsible government, and human development, the Nordics consistently rank at the top, as the Economist Magazine reports on pages 14 to 16, of the February 2, 3013 print edition, that relates that Nordic countries pride themselves on the honesty and transparency of their governments; citizens pay their taxes and play by the rules. This has led Norway, Sweden, which have national currencies, and Denmark and Finland which use the Euro, to being ranked as the world’s four most prosperous nations. The Nordic people are a creative, innovative, industrious, corruption free, and socially responsible people, which contrasts sharply with the Latin people, that is the Portugese, Italian, Greek and Spanish people, who rank at the bottom of prosperity.

Investors have rewarded the Norwegian cultural superiority by investing in oil & gas, energy service, maritime, and aquaculture, particularly in Bergen Norway, but have disinvested out of debt laden and economically inefficient Athens Greece. Currency carry trade investment has had the consequence of driving consumer prices higher: $7.69 for a Big Mac vs $4.37 in the America.

An example of Swedish ingenuity is Linas Matkasse, a Vällingby, Sweden-based e-commerce weekly food delivery service providing subscribers with a bag of groceries, recipes and ingredients for five dinners for four people. The company currently has a customer base of over 50,000 registered customers and the service is also available via iPhone reports FinSMEs, The NewsBlog about Financing for Small and Medium Sized Enterprises.

Denmark is a global competitive leader in Drugs, Pharmaceuticals, and Biotechnology with Novo Nordisk … in Hearing Aids with Oticon … in Toys with Lego … in Beverage with Carlsberg … and in Wind Power, having more than 200 companies that account for a third of the world’s wind turbine market according to The Economist Magazine February 2, 2013 page 9 print edition, which also relates Denmark is the world’s eighth biggest food exporter thanks to its obsession with productivity.

And the Economist goes on to relate that Finland based Rovio Entertainment struck gold with Angry Birds, a game that involves catapulting irascible avians at elaborate fortresses constructed by evil pigs.

Ludwig von Mises writing in Inflation III. Inflation and credit expansion; Interventionism an economic analysis warned “The boom cannot continue indefinitely. There are two alternatives. Either the banks continue the credit expansion without restriction and thus cause constantly mounting price increases and an ever-growing orgy of speculation, which, as in all other cases of unlimited inflation, ends in a “crack-up boom” and in a collapse of the money and credit system. Or the banks stop before this point is reached, voluntarily renounce further credit expansion and thus bring about the crisis. The depression follows in both instances.”

The crack up boom that has created prosperity has ended, and a collapse of the money, that is wealth, and credit system, coming from unwinding currency carry trade investment, such as the Euro Yen, EUR/JPY, as well as competitive currency devaluation, will result in Financial Apocalypse, as foretold in bible prophecy of Revelation 13:3- 4  

An inquiring mind asks, is it really to hard to believe that Jesus Christ is at the helm of the economy of God, Ephesians 1:10, effecting The Great Paradigm Shift from Liberalism to Authoritarianism, where political governance will change from the rule of sovereign nation states to sovereign regional leaders and regional bodies in regional governance; and economic experience from investment choice and prosperity to debt servitude and austerity; as leaders meet in summits to renounce national sovereignty and pool sovereignty regionally, a concept that has been presented by Herman van Rompuy for a long time.

Regional leaders and diktat, will replace sovereign nation states and investment choice; these will provide the seigniorage of diktat, replacing the seigniorage of investment choice. Ambrose Evans Pritchard writes EU ‘Troika’ rule in Ireland worse than British Empire. Ireland’s trade union chief has accused the EU-IMF troika in charge of Irish austerity policies of tipping the economy into downward spiral and acting as an imperial oppressor. And Robert Stevens of WSWS writes Greek military prepares for mass repression. Politicians have been in contact with military personnel over how to respond to an “explosion” of social unrest against government austerity measures. “Paper money no more”, will be Authoritarianism’s banner. The Banker’s fiat money system will soon be replaced by the Beast’s diktat money system, where diktat serves as currency, credit, power and wealth.

Please consider the horror, revulsion and anger that the Nordics will experience, especially the Euro using Danes and Finns, being a creative, innovative, industrious, corruption free, and socially responsible people, realize, when their prosperity is decimated by a soon coming Financial Apocalypse, and that have to share in a European gulag of regional governance, totalitarian collectivism and debt servitude, that has arisen through the insolvency of their Latin peers, as is foretold in bible prophecy of Revelation 13:1-4 and Daniel 2:25-45.   

Regionalism will be born out of a credit bust and financial system breakdown: democracies, national sovereignty, and prosperity will be epitaphs on the tombstone of the former era of Liberalism.

Doug Noland writing in Italy and “Ro, Ro” reports on International Reserve Assets, that is the wealth of Liberalism’s Sovereigns, and M2, that is the wealth of the people. Peak Money, that is Peak Wealth,  is being achieved

Federal Reserve Credit jumped another $14.2bn to a record $3.078 TN. Fed Credit expanded $292bn in 21 weeks. Over the past year, Fed Credit jumped $169bn, or 5.8%. And Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $748bn y-o-y, or 7.3%, to a record $10.987 TN. Over two years, reserves were $1.646 TN higher, for 18% growth.

M2 (narrow) “money” supply dropped $23.7bn to $10.413 TN. “Narrow money” has expanded 6.6% ($641bn) over the past year. For the week, Currency increased $3.6bn. Demand and Checkable Deposits fell $26.6bn, while Savings Deposits gained $4.7bn. Small Denominated Deposits declined $2.0bn. Retail Money Funds fell $3.5bn.

In Authoritarianism, diktat and physical wealth either in bullion form or at Internet Trading Vaults such as Bullion Vault, will be the two forms of sovereign wealth  Gold,  $GOLD, rose at the beginning of the week, but then traded lower to close at $1575.