The Mass Extinction Of Investors Commences On the Failure Of Credit And Currencies … People Will Increasingly Come To Trust In The Diktat Of Regional Nannycrats For Regional Security, Stability And Sustainability.

Financial market report for the week ending June 22, 2013.

I) … Introduction

Nature economist Elaine Meinel Supkis asks What in hell went wrong?  HAHAHA.  Seeking infinity is what went wrong.  Everyone wanted to have things grow continuously and this always ends very badly which is why Nature frowns on this.  It is very much ‘verboten’.  Ergo: seeking it is suicidal.

Charles Hugh Smith, Of Two Minds, writes The Fed has created a Doomsday Machine. The Fed has nurtured moral hazard in every sector of the economy by unleashing an abundance of cheap credit and low interest mortgages; the implicit promise of “you can’t lose because we have your back” has been extended from stocks to bonds (i.e. the explicit promise the Fed will keep rates near-zero forever) and real estate. An abundance based on the central bank spewing trillions of dollars of cheap credit and free money (quantitative easing) is artificial, and it has generated systemic moral hazard.

This is a Doomsday Machine because the Fed cannot possibly backstop tens of trillions of dollars of bad bets on stocks, bonds and real estate. Its power is as illusory as the abundance it conjured.

Once the losses mount, the punters who believed the Fed had their back will realize it was all a con. They will lose faith in the Fed and its promises of permanent abundance, low rates and rising asset prices.

This loss of faith will trigger what I call the delegitimization of both the markets and the institutions which have essentially promised a permanent upward bias in assets, i.e. the Federal Reserve and the other central banks that have conjured the same illusion.

This loss of faith in key institutions cannot be fixed with more cheap credit or subsidized mortgages; delegitimization triggers a fatal decoherence in the entire Status Quo.

Things are falling apart, that is obvious. But why are they falling apart? The reasons are complex and global. Our economy and society have structural problems that cannot be solved by adding debt to debt. We are becoming poorer, not just from financial over-reach, but from fundamental forces that are not easy to identify or understand. We will cover the five core reasons why things are falling apart.

Bloomberg reports Minsky Moment alarm sounded in China by SocGen. Credit growth in the world’s most populous country has outstripped economic expansion for five quarters, raising the question of where the money has gone, Societe Generale SA economist Yao Wei wrote in two recent reports. In the first quarter, for example, bank loans, shadow banking credit and corporate bonds together accelerated more than 20 percent year-over-year, while gdp grew less than half that much. The gap has been widening since early 2012. Yao says the answer to where the money is going is a growing “debt snowball” which doesn’t contribute to economic activity. The result is both companies and the public sector face burgeoning interest expenses. This fits with the theory first put forward by economist Hyman Minsky of Washington University in St. Louis. His financial instability hypothesis showed how markets create waves of credit expansion and asset inflation, followed by periods of contraction and deflation.

How true, insamuch as the world central bankers have crossed the Rubicon of sound monetary policies, with the interventionism of Global ZIRP and Kuroda Abenomics, “money good” investments, have failed, commencing the mass extinction of investors on the failure of credit and currencies.

Jesus Christ, operating in the administration plan for completeness of every age epoch and time period, Ephesians 1:10, has completed Liberalism’s moral hazard based credit age of investment choice.

Now, with the sharp rise in the Interest Rate on the US Ten Year Note, ^TNX, rising to 2.01% on May 24, 2013, and to 2.42% on June 19, 2013, He is introducing Authoritarianism’s debt servitude based age of regional governance and totalitarian collectivism, where people will increaingly come to trust in diktat of regional nannycrats for regional security, stability, and sustainability, as presented in the Apocalyptic Vision of the Apostle John in Revelation 13:1-4.

II) … The mass extinction of investors commences on the failure of credit and currencies. 

II. A) … On Monday, June 17, 2013, Oil, USO, and Natural Gas, UNG, as well as Risk Assets traded higher in hope of further monetary stimulus by US Fed Chairman Ben Bernanke. Stock sectors rising included OIH, KCE, IAI, PSCE, WOOD, ITB, PBD, XOP, SPHB, CARZ, FLM, IGV, FDN, PKB, RXI, SMH, BJK, IXG, and RWW, as well as those seen in this Finviz Screener.  Japanese Banks, NMR, and MTU, led Japan Small Caps, JSC, and Japan, EWJ, higher.  Far East Financials, FEFN, led Asia exluding Japan, EPP, higher. Bank of America, BAC, and Asset Manager, BLK, led the US, VTI, higher. Spain’s Banco Santander, SAN, and EUR/JPY carry trade darlings PHGSNY, LUXSAPSITOT, ACNENL,  BUD, ST, and  EEFT, led Europe, VGK, higher.  Chinese Financials, CHIX, led Hong Kong, EWH, EWHS, Taiwan, EWT, Indonesia, IDX, Australia, EWA, as well as BRIC countries, Russia, RSX, ERUS, India, INP, and China, YAO, TAO, ECNS, CHII, higher. 

Doctor Housing Bubble writes The confidence game in housing: Fed could slow Quantitative Easing later this year. Maybe. Federal Reserve expands balance sheet by $500 billion since QE3 began in September.  The recent rise in interest rates is a big deal for the housing market. As the economy appears to be heating up, hot money will flow to any sector with a perception of higher yields. The recent increase is occurring because of this perception. The Fed has put itself in a corner. The stance is that QE3 and all easy monetary policy will continue so long as the economy is sluggish. Well with a record rally in the stock market, jobs being added, and housing values overheating the Fed looks to be bluffing on this call. Of course much of this rise has occurred because of hot money (the same fuel causing the rally). The Fed has expanded its balance sheet by $500 billion since September of 2012 when QE3 began. Does that seem like a slow pace of growth? There is a big confidence game in housing at the moment.

The months of May and mid June, 2013, saw the end of the confidence in Aggregate Credit, AGG, as well as Major World Currencis, DBV, and Emergin Market Currencies, CEW. The sharp rise in the Interest Rate on the US Ten Year Note, ^TNX, which stands today at 2.17%, together with a steepinging of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as seen in the Steepner ETF, STPP, destroyed every financial asset tethered to yield chasing. The pursuit of yield ended in May and June 2013, with Interest Rate Sensitive Stocks, such as Australia Dividends, AUSE, Utilities, XLU, DBU, Energy Partnerships, AMJ, and Real Estate Stocks, IYR, such as those which financialized Mortgage Backed Bonds, MBB, such as REM, like IVR, and specilized Real Estate leverage such as REZ, ROOF, FNIO, KBWY, high yield stocks, such as Telecom, IST, Junk Bonds, JNK, and High Yield Junk Bonds, UJB, trading lower.  Also commodity currency risk assets which saw a crack up boom courtesy of the world central banks’ easy money policies, such as Paper Producers, WOOD, traded lower as well. 

The sharp rise in the Interest Rate on the 10 Year US Note, $TNX, decimated Liberalism’s credit scheme of Dollarization, and terminated investment in the Emerging Markets, EEM, with a ruination of Emerging Market Infrastrucuture, EMIF, and obliteration of Emerging Market Banking, EMFN, deleveraging investors out India Banks, EPI, and Brazil Banks, BRAF.  Debt deflation at the hands of the bond vigilantes, cuased the death of Credit, AGG, and enabled currency traders to successfully sell short the Australian Dollar, FXA, and Emerging Market Currenics, CEW, in the beginning of their currency war on the world central bankers.  There was a strong derisking out of the EUR/JPY, which stimulated deleveraging out of the Far East Financials, FEFN, such as WF, KB, WBK, SHG, the Nikkei, NKY, and its banks, MFG, MTU, SMFG, IX, NMR, and Asia Stocks, EPP, such as the Philippines, EPHE, Thailand, THD, and Indonesia, IDX.  Industrial Mining Industry, PICK, nations, and Copper Mining, COPX, nations, such as Chile, ECH, Peru, EPU, and Gold Mining Nation, South Africa, EZA, and their banks such as BCA, BCH, BAP, were destroyed.  Argentina, ARGT, traded lower on the fall lower in its banks, BCA, BFR, GGAL, and BMA.  Bespoke Investment Group writes that Brazil, EWZ, is the most oversold ETF.   

Barron’s reports Tips are the pits as yields rise but inflation doesn’t I comment that the Google Finance  chart of LPTZ shows a fifteen percent loss of value since May 1, 2013, compared to three percent for Aggregate Credit, AGG.

Austrian economist Benton te writes Current markets seem as in crossroads. If political actions will be able to soothe the mercurial bond markets, then current conditions represents an interim bottom. If not, or if the conditions of the bond markets deteriorates further, then the imminence of a bear market on risk assets.

Falling prices and growing risk aversion will reduce collateral values which will spillover to credit activities which subsequently leads to further pressure on prices and vice versa.

With the exception of adjustable rate mortgages which tend to follow Fed Fund Rate, the US Treasury of the 10 year US treasury notes serves as yardstick[ 22] to almost all other interest rates, including long term bonds and fixed mortgage rates [23]. This is why rising 10 year yields are very important.

The BoJ’s actions has not only spiked the yields of Japanese Government Bonds (JGB), but may have also substantially contributed to the surge in UST yields.

Even the European Central Bank’s latest interest rate cut last May 2nd [28] failed to stem the rise in UST yields.

In short, the diminishing returns from central bank easing policies may have reached a critical tipping point. Instead of pushing rates lower as designed, easing policies have begun to compound on the pressure for higher yields. This is known as the law of unintended consequences [29].

Higher yields in a heavily leveraged system have startled the bond markets first, eventually percolating to emerging markets. As pointed out last week, many leveraged trades which depended on low interest rates had to be winded down, thus compounding on the EM crash.

Another significant contributing factor to the current bond turmoil could be the prospects of policy haircuts affecting bank depositors and bondholders during a credit event. In a recent Eurogroup president [31] Jeroen Dijsselbloem said [32] “if the bank can’t [recapitalize itself] then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute” to recapitalizing the bank, “and if necessary the unsecured depositors.” With officials whether from Japan [33] or Europe or elsewhere overtly talking about the seizing deposits and bonds, such “bail-ins” or the prospects of haircuts may also have contributed to the incentives of bond market investors to sell, if not, to reduce the appeal of bonds as “safehaven”. These are aggravating circumstances.

In April, just when the Kuroda’s grandest experiment was launched, Japan accounted for as the biggest seller of UST. According to the Zero Hedge [38] “in April foreign investors, official and private, sold $54.5 billion Why is this number of note? Because it is the biggest monthly sale of Treasurys by foreigners in the history of the data series.”

In short, the Fed cannot afford a “tapering” or an exit, otherwise risks of higher interest rates that could lead to immediate default. So they are likely to hold or even to expand QE.

Of course the biggest or the “king” of all reserve buildup would be China, where from $150 billion in the year 2000, international reserves has skyrocketed to today’s $3.443 trillion that’s 71% higher four years ago.

The point is that the current implied tightening of the monetary environment could expose on the vulnerability of domestic bubbles. Aside from the closure of leveraged trades, the realization of the unsustainability of domestic bubbles may result to even more capital outflows and deleveraging.

And what the mainstream sees as an advantage can from huge reserves can easily permutate into a shortcoming.

The panic reaction by Indonesia’s officials should give us a clue. This week, the Indonesian central bank, Bank Indonesia, raised policy rates via the deposit facility rates or the rate it pays lenders on overnight deposits. But the central bank also promised to buy government debt in the secondary market. So Indonesia will be launching her version of QE. But the most important development has been a dramatic depletion of huge reserves in response to the abrupt exodus by foreign investors where a total of “$1.9 billion from stocks and local-currency bonds” fled in Indonesia during the past two weeks. From Bloomberg [40]: Indonesia is consuming foreign-currency reserves at the fastest pace in Asia as policy makers struggle to contain the rupiah’s plunge. Reserves dropped 5.7 percent in a year to $105 billion in May as the central bank sold dollars to bolster the rupiah. Put differently, Indonesia seems caught between preserving the bubble conditions by draining her reserves or keeping the reserves at the risks of a bubble bust.

And current problems are not just in Japan or Indonesia. China has been exhibiting increasing stress on her monetary system. The Chinese government suffered its first debt auction failure in 23 months supposedly due to a cash squeeze [41]. The result: higher interest rates; the average yield on the debt sales spiked to 3.76% to 3.14% in June 13th. The average yield of Dim sum bonds [42] or Chinese bonds issued in Hong Kong climbed to a 5 month last week [43]. The yuan as measured by forward contracts also traded weaker last week.

Mr. Noland also notes that Chinese CDS has been very volatile having “jumped from 92 to 113 in three sessions, before dropping back down to 98 on Friday”

Bottom line: the current selloff has exposed the world markets to multitudinous flashpoints for a potential crisis.

Emerging market equity and bonds continue to bleed as bond markets of developed economies undergo convulsions.

The week posted “record” foreign outflows in Emerging Market equity and bond markets. Reports the Marketwatch.com [44] According to Lipper, emerging-market debt funds, including exchange traded funds, saw $622.5 million in net outflows in week ended June 12, the largest on record and up from an outflow of $384 million the previous week and around $30 million two weeks earlier. But its ETFs that are bearing the brunt of the outflows, notes Matthew Lemieux, a research analyst for Lipper.

In particular, the iShares JP Morgan dollar denominated Emerging Market Bond ETF, EMB, saw a $268 million outflow in the latest week, bringing the total over the last three weeks to around $528 million. It’s a similar story on the equity side, where total fund outflows in the latest week totaled $2.1 billion, one of the largest on record.

Over the last three weeks, emerging equity funds have seen $4.9 billion in outflows. There, ETFs are even more of a driver, with the iShares MSCI Emerging Markets Index Fund , EME, witnessing around $5.2 billion in outflows alone over the last three weeks. Emerging market corporate bonds, EMB, have grown to a $1 trillion market. Since 2005 annual issuance has doubled to a “record” $200 billion last year which has already been surpassed this year by end-May, according to Reuters [45]. Many of the companies have reportedly taken on dollar based hedges. While it would be easy to dismiss on the risks from EM outflows, the degree and the duration of volatility aside from effects to domestic rates will play a significant factor.

The EM collapse hasn’t been identical. For instance, South Africa suffered more from a bond and currency rout than from a stock market carnage. The South Africa’s FTSE 40 lost only 4.46% in two weeks and still is up 2.38% over the year. But the rand suffered the biggest loss [46] among EM currencies since the EM massacre began   If the mayhem continues, whether ventilated on the currency, stocks and or bonds, the bloodletting in the EM spectrum will highlight the fragile state of Emerging Market assets. And this can be already seen in the recent soaring of CDS.

And such vulnerability applies to Asia, particularly to Asia’s previously booming bond markets. The following article underscores the lessons of the recent meltdown: the potential consequence from a change in environment from easy to tight money and the risks of deleveraging. From Reuters [47]: Low global interest rates have made it easier than ever to sell new bonds denominated in dollars, euros or yen, resulting in a boom in issuance that has made Asia and its companies ever more dependent on debt. But the market for trading those bonds is slowly drying up, leaving it susceptible to a sharper selloff if holders of these so-called G3 bonds decide it is time to head for the exit. Asia’s low market liquidity could create a more explosive selloff in which a lack of trading creates a price vacuum, leading to sharper price declines as investors scramble to sell assets for cash, a scenario similar to the dark days of the Lehman crisis. See, low rates equals boom, high rates increases the default risks. Low liquidity magnifies a panic. Boom bust cycles.

A panic hasn’t been a reality yet. Despite the equity selloffs, ASEAN bonds appear to have resisted any further catastrophic exodus from foreign money similar to other EM contemporaries. But as shown earlier, ASEAN CDS have commenced an upside move. Low liquidity may have prevented a stampede. On the one hand, the seeming tranquillity of ASEAN bonds, and on the other, volatile stock markets, CDS markets and currency movements these dynamics don’t chime. One of the two divergent forces is wrong, either volatility will subside or agitations will eventually engulf ASEAN bonds.

This is why the coming weeks will be very important. Will markets continue to gyrate violently or will they sober down? Remember, the yield of the 10 year Philippine bonds seem to suggest that her credit risk profile has been nearly at par with Malaysia and has (astoundingly) surpassed Thailand, which for me, signifies as a bubble. And as I have earlier pointed out, the interest rate spread between the US and Philippines has substantially narrowed. This reduces the arbitrage opportunities and thus providing incentives for foreign money to depart from local shores to look for opportunities elsewhere or perhaps take on a “home bias” position.

The EM and ASEAN bond markets are highly vulnerable to market shocks as recent events have shown.

The volatility in global bond markets remains a clear and present danger. Until these markets subside either naturally or through political interventions (in the hope that such interventions will have the desired effect), the prospects of further deterioration of markets should not be discounted. On the contrary, this should be expected.

And continued volatility may push many emerging markets including the Phisix into respective bear markets which increases the risks of a global crisis. There are many flashpoints not limited to Japan. They may come from China, ASEAN, Eurozone or elsewhere. Perhaps the US will be the last in the domino chain.

However, I am in deep suspicion that these broadening bouts of volatility previously from commodity markets and then to bond markets and now to EM currencies and equities are symptoms of the periphery to the core dynamics. The accrued losses from these highly volatile markets will eventually be felt by one or more major institution/s (ala Bear Stearns) from any crisis prone nation. Once in the open, the impact will be a contagion. Shades of the EM collapse during the past two weeks.

I hope that I am wrong, but I fear that we have just witnessed the overture to the forthcoming global crisis.

Since every crisis is a process, it will take time. Volatility will go on both direction but with a downside bias, unless again, global bond markets are pacified. Expect governments to intervene too. But whether they will succeed or not in delaying the day of reckoning remains to be seen. And if the balm from social policies takes effect, the question is until when? The FED’s QE 3.0 brought down yields for just 3 months. Abenomics in less than a month. The intended effects of interventions have been narrowing. The law of diminishing returns appear to be flexing her muscles. Markets appear to have risen in rebellion. Will bond vigilantes become the dominant force? We have already seen this in Indonesia’s central bank proposing to conduct QE. How long will these assuage nervous investors? On the other hand, will disorderly markets prompt Indonesia to continually drain her vaunted reserves leaving her exposed or vulnerable to a crisis? How will Thai and Philippine authorities respond if the unravelling intensifies?

In today’s news, we see the fulfillment of bible prophecy. The Tribulation is presented in bible prophecy as mankind’s last seven years, where the Sovereign, Revelation 13:5-10, secures a Middle East Peace Plan and moves out of Europe to establish his world wide headquarters in Jerusalem, Daniel 9:25. Tom Engelhardt of Antiware relates The making of a Global Security State. Chirst’s Final Dispensation, Ephesians, 1:10, will be the age of the global security state, that is a one world govenment pvovides seigniorage, that is moneyness, through the mark of the beast, which is designed for both emperor worship as well as for payment processing of all commercial trade.

The Great Triublation is the last 3 and 1/2 years, where a small number of God’s elect are driven into a refuge, that is a sanctuary, in a wilderness place, where no drone can go, nor any missile penetrate, to live by what ever means Gods provides for 42 months. Revelaton 12:6, while the rest of humanity is called by the Seignior, that is the Sovereign’s banking partner, to emporer worship, Revelation 13:11-17, where one will be commanded to worship-on-demand, through communication devices, such as one’s phone which present holographic projections of and direct communication from the world’s king. The Gateway Pundit reports AT&T to koad iPhones with alerts from Obama, that you can’t switch off.

With currencies and credit having been destroyed via debt deflation, one will be required to take The Mark, which is the basis for the global 666 currency system of the one world government, without which one cannot conduct any commercial activity, Revelation 13:18. Wearable authentication and wearable security is being developed which can be used for payment of goods and or services; with such, one would become branded property of the state.  DigitalTrusting reports Motorola has revealed plans for hi-tech authentication systems that could make accessing data faster and easier, including a “tattoo” with embedded sensors and antenna, and an “authentication pill” which turns the human body into a giant authentication token. Both are designed to replace current systems such as typing in four-digit codes on screen on smartphones. Regina Dugan, who leads special projects for the Google-owned company, showed off a tattoo, made by company MC10, on her own arm at D11, the All Things Digital conference. Motorola said it planned to work with the company on authentication systems for future smartphones, according to AllThingsD. Dugan previously worked for DARPA (Defense Advanced Research Projects Agency). “Authentication is so annoying that only about half the people do it,” says Dugan. “Despite the fact that it is a lot of data on your smartphone that makes you far more prone to identity theft. We are thinking about a whole variety of things to make that better. “ Dugan also showed off a pill, which is powered by a chemical reaction with stomach acid, and produces a machine-readable 18-bit signal which can be used for authentication. “I take a vitamin every day, why can’t I take a vitamin authentication every day?” asked Dugan.”Your entire body becomes an authentication token. It becomes your first superpower. When I touch my phone, my computer, my door, my car I am authenticated.” Slate magazine’s video shows off the size of the pill. “This isn’t stuff that is going to ship anytime soon, but we have demoed it working. We are trying to think big again,” said Motorola CEO Dennis Woodside. The post Motorola predicts passwords could be replaced by arm tattoos and “authentication pills” appeared first on We Live Security.

Daily Bell posts Richard Ebeling on higher interest rates, collectivism and the coming collapse. Wikipedia relates Richard M. Ebeling (born January 30, 1950)[1] is an American libertarian author, and was president of the Foundation for Economic Education (FEE) from 2003 to 2008, and Wikipedia relates that The Freeman is an American libertarian journal published by the FEE [1] .

Jason Ditz of Antiwar writes Egypt’s invitation to Jihad could have long-term effects. The Egyptian government’s announcement that their citizens are free to go join the Syrian civil war, followed up almost immediately by a severing of diplomatic ties with the Syrian government was seen by some as taking a “hard line” on Assad. Yet the context suggests this is set to be a broader Egyptian policy matter than simply the ongoing war in Syria, and that with the precedent already set that the government is willing to host jihadist citizens who go abroad imposing regime change for religious reasons, it certainly won’t end there.

Chris Rossini writes in Economic Policy Journal Think outside of democracy. The job of the libertarian is not to get back to the rotted Republican roots. We want the roots of Liberty! Our job is to explain to others that a life of false choices does not have to be. The game of “pick your chains” is man-made and not a fixture of nature, even though the bird of prey has many people believing that it is.

(I comment that the Apostle Paul communicated in the first century that all things are of God, 2 Corinthians 5:17-18, and that God determines the times and places in which one lives, Acts 17:26, and that He chose some to believe in Christ and placed these in the honey-be of His love, Ephesians 1:5-6, while assigned the others to disbelief.  Furthermore, reality exists only in Christ, Colossians 2:17. And that He is Grace, that is Resource, and He is Truth, that which is reliable for believe, as well as  that which is a trustworthy promise, John 1:17, and that the elect worship God’s will, John 4:23-24, while the fiat worship their own will in philosophy or religion, Colossians 2:23, and in so doing God sets one free indeed John 8:36. Thus choice is an illusion, and for the mature believer in Christ, one comes to see Christ as the his inclusive life experience, Colossians 3:11, the mature in Christ believe that God makes all of one’s decisions. Those who have life in Christ, are ever maturing in the only right there is, and finding genuine freedom therein, as put forth in John 1:12, “But as many as received Him, to them He gave the right to become children of God, to those who believe in His name.” The more I manifest in Jesus Christ, the more freedom I have, and the more splendid child of God I become. Inasmuch as Jesus Christ is operating at the helm of the Economy of God, Ephesians 1:10, and is pivoting the world from Liberalism’s age of investment choice and terminating it’s moral hazard based prosperity, to bring forth Authoritarianism’s age of nannycrats’ mandates of debt servitude and austerity, I simply go by the motto “Whatever the Lord provides for me is fine”. Through difficulty, through oppression, through loss, through every trial and temptation, I say “His Grace is sufficient for me”.)

On the contrary, as Samuel Rutherford wrote in England back in the 1660’s: “Every man by nature is a freeman born; by nature no man cometh out of the womb under any civil subjection to king, prince, or judge…no man bringeth out of the womb with him a sceptre and a crown upon his head.”

(Please consider that God determines the times and places in which one lives, Acts 17:26, those being born after May 24, 2013, that is after the Interest Rate rose to 2.1%, and destroyed fiat money, are born into the age of regional governance, totalitarian collectivisim, debt servitude and prosperity where all live in the Global Security State and its panopticon of security, stability and sustainability). ETF Daily News reports  How May 22 changed everything for the S&P 500 index.

Those are the roots that we want to take hold. We want to harvest the fruits that come from that tree. The belief that not only are we born free, but that we can (and should) remain free. Such a state of affairs will only come about when Libertarians dump the tyrannical Republicans once and for all and plant the seeds of Liberty instead.

(I comment that I seek to harvest the spiritual life, that comes as I breath in God’s life, in spiritual wisdom and understanding, Colossians 1:8-9,  that is the replacement for the death and sin which comes at birth. If God’s providence intervenes, then one will actuate as the New Person in Christ, 2 Corinthians 5:17, in virtue, that is praise worthy speech and behavior, and in ethics, that is in economic regard for the person and property of another, through spiritual addition of the seven addives of 2 Peter 1:5-7, and not manifest in carnality nor in inequity, which is poneros, that is bad, evil and wicked speech and behavior. The believer purposes to live free from entanglement with the fiat things, that is human philosophy or religion, of this world and thus be a holy vessel, that is one set aside, for God’s purposes.)

(My final thought here is that God’s idea of economy is kindgom, specifically where under Liberalism a Democratic Kingdom of sovereign bankers ruled providing fiat money. Now under Authoritarianism a Ten Toed Kingdom or sovereign nannycrats rule and provide diktat money, which is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, all for the purpose of regional security, stability, and sustainability.)

Mike Mish Shedock provides excerpts from the Michael Pettis China Financial Markets report The explosive growth in Chinese exports at the beginning of this year had very little to do with strong external demand and nearly everything to do with speculative inflows. With borrowing costs in US dollars in the Hong Kong markets roughly two hundred basis points lower than domestic RMB interest rates, large Chinese companies with subsidiaries in Hong Kong were borrowing money in HK and bringing that money illegally into the mainland by over-invoicing exports.

This allowed them to pick up the 200 bp “arbitrage” plus any appreciation in the currency. This, plus the “arbitraging” of credit (borrowing cheaply from banks and lending to businesses that do not have access to credit) is becoming an increasingly important part of the profitability of large businesses, it seems, and that is always a bad sign when “financial engineering” becomes a profit source for businesses. The PBoC has cracked down on this kind of activity, but it should remind us just how porous China’s capital controls really are. Huge amounts of money have been able to enter and leave the country.  Mr Shedlock announces a new Android app (compatible with phones and tablets), is now available on the Google Play store from programmers Stephen Asherson and Rachel Strate at 2Bits.

Stefan Sgeinberg of WSWS reports JPMorgan calls for authoritarian regimes in Europe.  The authors of the JPMorgan report are arguing for governments to adopt dictatorial type powers to complete the process of social counterrevolution that is already well underway across Europe. The 16-page document was produced by the Europe Economic Research group of JP Morgan and titled “The Euro Area Adjustment, About Half-Way There.”  Since the eruption of the global financial crisis in 2008, the ECB has made trillions of euros available to the banks to enable them to wipe out their bad debts and commence a new round of speculation. In the face of mounting pressure from the financial markets, ECB chief Mario Draghi declared last summer that he would do whatever was necessary to shore up the banks. This, however, is not sufficient as far as the analysts at JPMorgan are concerned. They demand a “more dramatic response” to the crisis from the ECB. The harshest criticisms in the document, however, are reserved for national governments that have been much too tardy in implementing the type of authoritarian measures necessary to impose austerity. The process of such “political reform,” the study notes, has “hardly even begun.”

(I comment that the authors of the JPMorgan report are simply actuating on the Revelation of Jesus Christ, that is the Apocalyptic vision given by angels to the Apostle Paul in 90 AD, while he was living in exile on the Isle of Patmos, describing those things which must shortly come to pass, Revelation 1:1, meaning that once they start to occur they fall in place, like lined dominos toppling one upon another, once the first one tumbles. Specifically that a monster of authoritarianism, totalitarian collectivism, debt servitude and austerity comes to rule in the horns, that is in the world’s ten regions, and in the heads, that is in mankind’s seven institutions, as presented in Revelation 13:1-4)   

Towards the end of the document, the authors explain what they mean by “political reform.” They write: “In the early days of the crisis it was thought that these national legacy problems were largely economic,” but “it has become apparent that there are deep-seated political problems in the periphery, which, in our view, need to change if EMU (the European Monetary Union) is to function in the long run.”

(I comment that indeed are legacy problems, these have to do with the Nordic Latin cultural divide, that is Europe’s North South character divide, which is well known and well documented elsewhere. And there are other legacy problems which exist, such as the banker’s drive to push Treasury debt and  creative financing investment opportunities, onto the periphery nations, in a currency union, that the bankers, together with those in NATO, as well the Council of Foreign Realtions and CIA, presented to the Europeans. The political probles have to do with Capitalism, or better said Crony Capitalism, as well as European Socialism and more strongly yet with Greeek Socialism, where there are competitive barriers and national wage laws which provide exorbitant and lucrative terms) 

The paper then details problems in the political systems of the peripheral countries of the European Union, Greece, Spain, Portugal and Italy, that have been at the center of the European debt crisis.

The authors write: “The political systems in the periphery were established in the aftermath of dictatorship, and were defined by that experience. Constitutions tend to show a strong socialist influence, reflecting the political strength that left-wing parties gained after the defeat of fascism.

“Political systems around the periphery typically display several of the following features: weak executives; weak central states relative to regions; constitutional protection of labour rights; consensus building systems which foster political clientalism; and the right to protest if unwelcome changes are made to the political status quo. The shortcomings of this political legacy have been revealed by the crisis. “ Whatever the historical inaccuracies in their analysis, there can not be the slightest doubt that the authors of the JPMorgan report are arguing for governments to adopt dictatorial type powers to complete the process of social counterrevolution that is already well underway across Europe.

(I comment that Socialists, that is those who believe in pure socialism, where one foregoes self interest and material satisfaction for the good of all, much like a Buddist foregoes all desire, and a Christian sacrifices in Christian altruism, may present a call that appeals to those with nothing, that is those living in poverty, yet it is simply another human philosophy of will worship, Colossians 2:23, and not of the worship of God’s Will, John 4:23-24.  Furthermore, dictatorial type powers were ordained of God in eternity past, Daniel 2:25-45, and Revelation 13:1-4, where regional governance and totalitarian collectivism, are part of Christ’s dispensation, Ephesians 1:10, that is God’s economic and political plan, as He pivots the world out of Liberalism’s moral hazard based prosperity, and in Authoritarianism’s debt servitude based austerity.    

It was God’s Will to develop leaders such as Phil Gramm to establish Liberalism’s scheme of financial deregulation, and Jimie Dimon, head of JP Morgan, to provide Liberalim’s scheme of QE1, where the Fed would trade out “money good” US Treasury bonds for all kinds of toxic debt owned by his firm.

It is Jesus Christ, working at JP Morgan, as well in the European Finance Ministers’ Cabinet in Brussels, and at the ECB, to develop Authoritarianism’s statist public private partnership schemes to oversee the factors of production as well as all economic and political life in the EU. 

A neoliberal agenda masked by EU ‘competitiveness’ is rapidly privatising public services and downgrading the democratic rights of citizens,argues Martin Konecny is a researcher at the Corporate Europe Observatory campaign group, relates in Worthy News, Authoritarian EU’ privatising states and attacking democracy.  The June European council will see further debates on Europe’s competitiveness. Prominent among the different proposals is the idea of a so -called competitiveness pact. The plan of the European Commission, big business and of the German government in particular is to establish a set of ‘contracts’ for member states that will impel them to weaken labour laws, and to implement business-friendly legislation to promote competitiveness.

With support and encouragement from the business world, Merkel recently issued a joint statement together with Hollande where they set the timeframe for the final design of the competitiveness pact for the end of this year. But why is it that political and economic elites are pushing for such a deal? A political programme to undermine democracy in a very serious way, even while the formal institutions stay intact. To force every member state into contracts with the commission in such important policy areas as the labour market, in reality means to extend the kind of rule-by-Troika from the crisis-hit south to the rest of Europe. The undemocratic commission, or more precisely its neoliberal vanguard represented by Oli Rehn and his DG-ECFIN, will decide, together with national executives, on the political and economic course of each country.

National parliaments will be sidelined and reduced to the function of rubber stamp legitimising, not coincidentally, a word used more and more often to depict the future role of national parliaments in debates at the European Council. The European competitiveness agenda has become a key tool to undermine democracy. Competitiveness becomes a value in itself for which we have to sacrifice basic democratic rights if – as is the commission tells us – we ever want to see jobs again.

The question of being able to democratically decide what kind of society we want to live in vanishes while the technocratic – in reality, highly political – rule of competitiveness takes its place. Instead of politicians, citizens are degraded to shareholders who can elect the best management of the competitiveness agenda decided on the European level. It seems that to political and economic elites, the main obstacle to the competitiveness agenda is increasingly seen as democracy itself.

A One Euro Govenment, that is a European Super State, is coming to Europe out of sovereign insolency, credit collapse, and a financial system breakdown, as foretold in Revelation 13:3, and is termed Financial Apocalypse. In the New Europe, Greeks, Italians, Portugese, and Spaniards cannot be one, but will nevertheless be yoked together as debt serfts in a region of economic governance, where diktat serves as credit, money, power and rule.)  

Amazon.com, Movies & TV Movies makes available for purchase Homeless: The Motel Kids of Orange County where Alexandra Pelosi follows children living in motels as their families struggle to make ends meet.

(I comment that for a family, with one or two parents ,usually one not working, and three or four children, living together with pets in a motel room is the psychogenesis of metnal illness, especially psychopathy, and psychpathic behavior.)

The Apostle Paul relates in Ephesians 1:10, that God has tasked his son Jesus Christ with the oversight of the Economy of God, specifically bringing fullness to every epoch and time period. Having fully completed Liberalism’s age of investment choice with a moral hazard based prosperity, seen in World Stocks, VT, Aggregate Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, and even Gold, $GOLD, trading lower,  the Lord is now at work transitioning the world into the very depths of Authoritarianism’s era of debt servitude based austerity. To this end, Jesus Christ is actively working in the new form of public private partnership consisting of Foundations and Government engaged in the decommissioning of rust belt cities.

Esther Galen in WSWS reports The dismantling of Pontiac, Michigan, a dress rehearsal for Detroit.  Of 21 Michigan cities under emergency managers, none has yet faced as drastic cuts in public services as Pontiac. But no city has yet faced as drastic cuts in public services as Pontiac, the county seat of Oakland County, the wealthiest county in the state.

The city workforce has been slashed from 600 to only 50, while nearly all city assets have been sold off to private companies and nearly all city services have been outsourced, privatized or transferred to other jurisdictions.

The state government claims that emergency financial managers will get a struggling city “in shape.” But the real agenda, the privatization and destruction of public services and living standards, is being revealed in Pontiac.

Pontiac is now on its third state-appointed financial manager. The first and second, Fred Leeb (2009) and Michael Stampfler (2010), were chosen by then Governor Jennifer Granholm, a Democrat. Republican Governor Rick Snyder appointed Louis Schimmel in 2011.

Schimmel is a longtime debt collector for bankers and other investors in municipal bonds. He served on the board of directors and executive committee of the Pontiac State Bank from 1972 to 1988, until the bank was taken over by National Bank of Detroit, which in turn was swallowed by Bank One and then by JPMorgan Chase. An expert on municipal finance, Schimmel served as president of the Bond Club of Detroit, and as executive director of the Municipal Advisory Council of Michigan, a statistical clearinghouse for US investment bankers who underwrite or invest in municipal bond issues. He retired from that position in 2001.  In 1986, Schimmel became the first emergency financial manager of a sizable Michigan city, when a court appointed him to take over the city of Ecorse, an industrial suburb of Detroit laid waste by job cuts at the huge steel mill then operated by National Steel. Schimmel cut ruthlessly, balanced the books in three years, and was hailed for his efforts by the Michigan Chamber of Commerce, which gave him its 1990 award for Outstanding Service and Leadership in the Public Sector.

He went on to a series of appointments in state government. In 1992, he was appointed a member of the Michigan Public-Private Partnership Commission. In 1999, Governor John Engler appointed him to serve on the Michigan Commission on Public Pension and Retiree Health Benefits. From 2000 until 2004, he was the state-appointed emergency financial manager of Hamtramck, another ruined industrial city, an enclave inside the city of Detroit. In 2008, he was appointed a member of the Legislative Commission on Statutory Mandates.

Perhaps his most significant role, however, was as an advocate of the destruction of municipal government at the leading right-wing think tank in Michigan, the Mackinac Center for Public Policy. Schimmel wrote an article in 2005 for the Mackinac Center’s journal, based on his experiences in Ecorse and Hamtramck, outlining the changes Michigan should make to its existing emergency management law so financial managers would have more powers. A second article by Schimmel published on the center’s site in December 2006 was titled provocatively: “The City of Pontiac: A ‘Going’ Concern.” It advocated the appointment of an emergency manager there. As the headline suggested, Schimmel called for the effective elimination of municipal government.

The article promoted privatization of city services, stating: “Only major structural changes in how the city operates will bring a permanent solution to the city’s financial problems.” A second article that same month advocated privatizing the city’s Department of Public Works, which provided services such as wastewater treatment, and maintenance of city parks, recreation fields and community centers and other services.

Schimmel went to work for the Mackinac Center, serving as its director of municipal finance from 2006 to 2009. The think tank developed a wide range of right-wing, anti-working class policies that the Republican Party would implement wholesale once it took control of state government in the 2010 elections. This included the passage of Public Act 4 in 2011, which gave emergency financial managers virtually dictatorial powers. EFMs could assume all powers held by a city’s mayor and city council, could cancel labor contracts and enjoyed immunity from lawsuits. The Democratic Party advocated equally draconian cuts in public services, but sought to use the unions as enforcers of the cuts, while the Republicans wanted to dispense with the unions altogether.

Schimmel was the first emergency manager appointed under Public Act 4, when Snyder named him to run the city of Pontiac. When Public Act 4 was defeated in a referendum in November 2012, the state legislature simply ignored the popular vote and reenacted its provisions, with very slight differences, passing Public Act 436 a month later.

The Mackinac Center for Public Policy has been a driver for the policies of the most right-wing sections of the capitalist class. In additional to promoting privatization of government services, the center advocates right-to-work laws, privatizing schools and school services. On its web site, the Mackinac Center describes its free-market ideology as follows: “Modern economic experience demonstrates overwhelmingly that the free market is a powerful engine of economic prosperity”. This, in the sixth year of the deepest economic slump since the Great Depression! The statement continues: “We look forward to the day when the myths and fears of free-market capitalism are dispelled, along with the misplaced faith in a benevolent, omnipotent state.” The Mackinac Center cites approvingly the work of Milton Friedman (privatizing public education), F.A. Hayek (government plans can’t create economic growth) and James M. Buchanan (critique of state government programs).

The policies advocated by the Mackinac Center have a clear class basis. The organization represents the interests of its ultra-right corporate financial backers. These donors included (2002-2006):

Bradley Foundation (electronic and radio component heirs)

• Daimler Chrysler Corporation Fund (automotive)

• Dow Foundation (widow of the founder of Dow Chemical)

• Idilogic lists Dunn’s Foundation for the Advancement of Right Thinking (investment company founder) Desmonds Blog relates William A. Dunn runs Dunn Capital Management, Inc. in Stuart, Florida. He has been a Director of the Property and Environment Research Center, the Cato Institute, Foundation for Individual Rights in Education, and the Competitive Enterprise Institute

• Wikipedia presents Earhart Foundation (White Star Oil heirs)

• Idilogic lists Herrick Foundation (grandson of the founder of Tecumseh Engines)

• Sourcewatch lists the Peter G Peters Foundation (Proctor and Gamble heirs)

• Sourcewatch lists the Walton Family Foundation (Wal-Mart heirs)

These corporations see government-run public services as a drain on their profits. By contracting out public services to the lowest bidder, the wages, pensions and health benefits of public service workers and the services themselves will be destroyed for large sections of the working class.

As Schimmel explained in one of his published commentaries on municipal restructuring, while financial constraints are cited as the reason for the cuts in public services, there is a broader goal: “I am trying to be an example for all of Michigan, for any municipality anywhere.” He made clear the scope of his project, noting: “I’m trying to show this for rich cities as well as the poor cities.”

The implications of this ideology are detailed in another Mackinac Center article by Michael LaFaive, promoting the use of volunteers for public services.

“Critics might roll their eyes at the very notion of some of these proposals,” LaFaive wrote. “But the fact that such ideas may seem implausible today does not mean that they lack credibility. Indeed, less than a generation ago school choice, Social Security (pension) privatization, and ending welfare as an entitlement were deemed beyond the pale of discussion. Today such ideas are mainstream.”

As LaFaive indicates by the use of the word “mainstream,” all sections of the ruling elite, the Democrats as well as the Republicans, have embraced the right-wing nostrums of privatization and dismantling the public sector. What is at stake is nothing less than the dismantling of more then a century and a half of social progress, however halting, in the development of the public services required by a mass, economically advanced, modern society.

In the course of the industrial revolution of the 18th and 19th centuries, cities grew as people moved from farms to work in factories. Scientific and technical advances created the conditions for public services such as water treatment.

The standardization of piping, for example, meant the water supply system could be vastly expanded. Industry developed steam-powered pumping stations. As more people crowded into cities and science understood disease transmission, sanitation systems were developed to keep waste separate from the water supply for public consumption.

In the period when the American bourgeoisie was a rising class, it threw its weight behind the development of public services, from the postal service, established after the American Revolution, to roads, canals, railways, telegraph. This continued well into the 20th century, as the federal government expanded transportation systems, built airports and air traffic control and funded a broad expansion of public education, as well as art, culture and public broadcasting.

These public services were developed and expanded over a long historical period, yet in the course of one generation they are being destroyed. As the world economic position of the United States has deteriorated, from the 1970s on, public services came under attack, and these attacks have escalated enormously following the Wall Street Crash in 2008.

The use of emergency financial managers in Michigan, municipal dictators sent in as collection agents for the banks and bondholders, is an expression of a profound historical process.

The capitalist state is being stripped of all the reformist bells and whistles, and reduced to its core function as the “armed bodies of men” described by Marx and Engels, suppressing the working class in the interests of the capitalists. As the ruling class destroys public services, they are finding it necessary to change the forms of rule, and eliminate any vestige of democracy and local self-government.

Under these conditions, only a politically independent working class can defend these services. Socialism would put these vital services under public ownership controlled by a workers government.

II. B) …  On Tuesday, June 18, 2013, Oil, USO, and Natural Gas, UNG, as well as Risk Assets traded higher again, in hope of further monetary stimulus by US Fed Chairman Ben Bernanke, this included High Beta ETS, such as SMH, PKB, RXI, IBB, RZV, PDP, CSD, PBS, XLI, XTN, PPA, SPHB, KRE, PSCE, IAI, IYC, IGN, XRT, PJB, PJP, OIH, BJK, IHF, and FDN, and others seen in this Finviz Screener, traded higher. The Russell 2000, IWM, and Ireland, EIRL, rose to a new high having investor’s Euro Yen carry charm with, IR, STX, ICLR, TRIB, and ACN.

Small Cap Pure Value Stocks, RZV, rising included, NWY, WTSL, MCRI, MCHX, EEFT, FHCO, STMP, HGR, CKEC, VSEC, SNX, SCOR, ADUS, FXCM, METR, PAR, OPEN, and on, and on.      

The Euro, FXE, traded higher, and the Yen, FXY, traded lower, causing a trade higher seen in the chart of their currency carry trade, the EUR/JPY, which according to Action Forex closed up at very strong resistance at 126.88, which is seen in the Stockcharts.com chart of FXE:FXY at 129 .  The Indian Rupe, ICN, the Australian Dollar, FXA, the British Pound Sterling, the Brazilian Real, BZF, the Canadian Dollar, and the Emerging market Currencies, CEW, traded lower.

Aggregate Credit, AGG, traded slightly lower. Emerging Market Bonds, EMB, traded lower on lower Emerging Market Currencies, CEW, and the rise in the Interest Rate on the US Ten Year Note, ^TNX, which closed higher at 2.18%. 

Nicholas Financial, NICK, traded up 0.07% to all time high at 15.00 as Moody’s reports US subprime auto ABS risk factors are rising. Risk factors such as weakening loan credit, stiff competition among originators, and readily available funding for asset-backed securities (ABS) all portend higher credit losses for subprime auto lending, according to a new report from Moody’s Investors Service. “Risk Factors Still on Rise for US Subprime Auto ABS” follows a June 2012 Moody’s report on increasing risks in the subprime auto lending market, “US Subprime Auto Lending Market Harkens Back to 1990s.” The new report cites a number of factors affecting the rise in subprime auto credit risk, including more private equity money entering the market that will further intensify increasing competition from banks and credit unions. “The increased competition among subprime lenders is resulting in more loans to borrowers of weaker credit quality,” said Peter McNally, a Moody’s Vice President and co-author of the report.

Since the beginning of the failure of credit, AGG, beginning in May of 2013, Nicholas Financial, NICK, has outperformed its peer grous, Small Cap Revenue, RWJ, Russell 2000 Value, IWN, Small Cap Value, RZV, as is seen in its ongoing comparative Yahoo Finance Chart; and it has been outperforming Ford, F, and GM, as well, as is seen in their comparative chart.).

  

Reuters reports Euro zone must agree bank recaps on EU’s Rehn says

Olli Rehn’s requeest is an impossible task, it simply is not going to happen this week. And an inquiring mind asks, just who is going to recapitalize these insolvent financial institutions. It is sovereignty that provides seigniorage. Insolvent sovereigns, that is the PIIGS, and their insolvent banks, such as SAN, cannot provide seigniorage.

Democratic nation states stand as ghost governments on the windswept landscape of Liberalism’s paradigm of nation investment, EFA, and small cap nation investment, IFSM, which provided a moral hazard based prosperity.

Out of a soon coming credit bust, and global financial system breakdown, as foretold in bible prophecy of Revelation 13:3, regional governance and totalitarian collectivism will rise to provide regional security, stability and sustainability in the Eurozone, enforcing a debt servitude based austerity.

The traditional rule of law, that came by national legislation and constitutional provision is being replaced by the rule of sovereign regional nannycrats and sovereign regional bodies such as the ECB, as they meet in work groups and summits to renounce national sovereignty, and estalish pooled sovereignty, as God’s idea of economy, is empire, specifically an empire of a Beast Regime, ruling in all of the world’s ten heads, that is in the world’s ten regions, as well as in all of mankind’s seven horns, that is institutions, this being the Apocalyptic Vision of The Revelation of Jesus Christ, specifically Revelation 13:1-4. This is also the same vision given in the Statue of Empire dream to King Nebuchadnezzar in Daniel 2:25-45.

Silver, SLV, and Gold, GLD, traded lower inducing Silver Miners, SILV, SILJ, SSRI, and Gold Miners, GDX, and GDXJ, lower.

 

Quartz reports 5 signs that China is about to fall off a debt cliff.

Bloomberg reports European car sales fall to 20-year low amid unemployment and Ambrose Evans Pritchard reports EU car sales slide to 20-year low European car sales slumped to a 20-year low in May as record unemployment took its toll and the eurozone’s recession spread to the core.

Gold Seek India declares war on Gold

Economonitor relates Venezuela on the brink of hyperinflation

24/7 Wall Street posts The most dangerous cities in America. The authors state that of the 10 most dangerous cities, the percentage of adults with a high school diploma was below the 86% national average. In five of these metro areas, the percentage of adults with a diploma was below 80%.  I comment that clearly education is failing in these cities; in fact, it appears to me that going to school in these cities actually creates a risk of going on to either commit crime or to becoming a victim of crime.

A rise in the Interest Rate on the US Ten Year Note, ^TNX, beginning in early May 2013, to 2.01%, on May 24, 2013, together with the Steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, caused the death of Credit, AGG, Major World Currencies, DBV, Emerging Market Currencies, and Investment Money, VT, and stimulating protests in Brazil, EWZ, after its currency, the Brazilian Real, BZF, fell strongly on June 17, 2013. 

Zero Hedge reports 200,000 take to Brazil’s streets in largest protest in two decades; this as Bloomberg reports Brazilian currency touches four year low; and as 6/20 Business Insider reports Currency war rattles Brazil, wakes up the people.

The death of Liberalism’s credit and currencies is seen in the sharp drop seen in the Google Finance Chart of Aggregate Credit, AGG, together with the Indian Rupe, ICN, the Brazilian Real, BZF, the Australian Dollar, FXA, and the Emerging Market Currencies, CEW, beginning in May 2013.

And the death of Liberalism’s money, soon thereafter, is seen in the ongoing combined Google Finance Chart of World Stocks, VT, and Nation Investment, EFA, in India, INP, Brazil, EWZ, as well as Australia, EWA. Bespoke Investment Group reports that Brazi is the most capital depleted nation.

Debt deflation, that is currency deflation, has finally come of age, through the failure of the world central bank policies of Global ZIRP and ongoing debt monetization, with the result that Liberalism’s Milton Friedman Free To Choose floating currency Banker regime no longer provides seigniorage of investment choice.

Jesus Christ is at the helm of the Economy of God, Ephesians, 1:10, terminating the fiat money system and introducing the Beast regime’s diktat money system, which is first being developed through the mandates of Eurozone regional governance.

The diktat money system was conceived by Herman van Rompuy acting together with the EU Finance Minsters, in early May 2010 with the provision of Greek Bailout I, as well as the more recent Greek Bailouts II and III, and the Cyprus Bank Bailin.

The diktat money system was fully unleashed onto the entire world by the bond vigilantes calling the Interest Rates on the US Ten Year Note, ^TNX, higher, and the currency carry traders calling the Yen, FXY, higher, on May 24, 2013, inducing investors out of currency carry-trade, yield bearing investments, such as Electric Utilities, XLU, Mortgage REITS, Global Real Estate, DRW, and sending the Emerging Markets, EEM, Emerging market Bonds, EMB, Emerging market Currencies, CEW, such as the Brazilian Real, BZF, and nation investment, EFA, in the country of Brazil, EWZ, tumbling in value, being led lower by its banks BBD, ITUB, BBD, and BSBR. With the failure of Liberalism’s fiat money, there be many Angry Byrds, protesting all over the place, as the diktat of sovereign regional nannycrats, replaces democratic national governance.

In the Eurozone, the sovereign nannycrats include Klaus Regling, Jeroen Dijsselbloem, and Michel Barnier, and sovereign regional bodies such as the ECB, where governance is based upon the word, will and way of whoever rises, biting, ripping and tearing others apart, to become the top dog leader and top dog banker, to provide diktat schemes. The seigniorage of diktat includes such thing as regional framework agreements, bank deposits bailins, new taxes, privatizations, sale of a country’s central bank’s gold reserves, capital controls, statist public private partnership oversight and management of government services, the factors of production, the economy in general, and measures of debt servitude, all with the aim of enforcing austerity.

II. C) …  On Wednesday, June 19, 2013, Aggregate Credit, AGG, Individual Currencies, led by the Brazilian Real, and Stocks, VT, traded strongly lower as Bloomberg reported Fed on course to end asset buying in 2014, which enabled the bond vigilantes to call interest rates higher and currency traders to short sell currencies

The Federal Open Market Committee today left the monthly pace of bond purchases unchanged at $85 billion, while saying that “downside risks to the outlook for the economy and the labor market” have diminished. Policy makers raised their growth forecasts for next year to a range of 3 percent to 3.5 percent and reduced their outlook for unemployment to as low as 6.5 percent.

“If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the pace of purchases later this year,” Bernanke said in a press conference in Washington. If later reports meet the Fed’s expectations, “we will continue to reduce the pace of purchases in measured steps through the first half of next year, ending purchases around mid-year.” Stocks and Treasuries slid as Bernanke’s comments raised the prospect of an end to the quantitative easing that has fueled a rally in financial markets and helped keep the world’s largest economy expanding in the face of federal budget cuts, a slowdown in China and a recession in the euro area. Connecting the dots.  “The Fed is out of the closet,” said Ward McCarthy, chief financial economist at Jefferies Group LLC in New York and a former Richmond Fed economist. “They expect to end these QE purchases. Bernanke wasn’t more specific than later this year, but connecting all the dots suggests he is thinking in the fourth quarter.” 

Jesus Christ completed a large part of the Ron Paul Agenda, He terminated the Fed, he slayed it at the Ben Bernanke news conference today; something much more terrible and terrifying is here now, as the Beast Regime has “the feet of a bear, the mouth of lion, and the coat of a leopard”. With the rise in the Interest Rate on the US Treasury Note to 2.31%, Jesus Christ has birthed the Ultimate Predator. I say “Listen, and understand. That Predator is out there. It can’t be bargained with. It can’t be reasoned with. It doesn’t feel pity, or remorse, or fear. And it absolutely will not stop, ever, until all existing economic and political life is no more”.

         

Interest rate sensitive stock sectors, XLU, DBU, such as Brazils’s SBS, PSP, IST, Real Estate, REM, REZ, TAO, KBWY, IYR, DRW, ROOF, FNIO, and sectors having received the greatest Fed Stimulus, ITB, WOOD, IBB, PBD, CARZ, PKB, BJK, as well as the Emerging Market Financials, EMFN, the Interest Rate Sensitive Emerging Market Infrastructure Stocks, EMIF, Emerging Market Dividend, DGS, and the High Yielding Diversified Communication Services, SBAC, CCC, AMT, seen in their combined ongoign Yahoo Finance Chart, also traded strongly lower.

Gold Miners, GDX, GDXJ, Silver Miners, SIL, SILJ, SSRI, traded strongly lower, on the higher US Dollar, $USD, UUP.  

Chinese Financials, CHIX, Brazilian Financials, BRAF, India Earnings, EPI, Mexico Bank, BSMX, Australia Bank, WBK, and European Financials, EUFN, led World Financials, IXG, lower.

Asian countries falling strongly lower included Indonesia, IDX, Philippines, EPHE, Thailand, THD, Australia, EWA, South Korea, EWY, New Zealand, ENZL, Vietnam, VNM, Singapore, EWS, Hong Kong, EWH, and Malayasia, EWM. CNBC reports Asia currency sell-off goes from bad to ugly.

South Africa, EZA, and Poland, EPOL, traded strongly lower. Tthe BRICS, EEB, that is Brazil, EWZ, Russia, RSX, India, INP, and China, YAO, traded strongly lower as well, for the most part on currency carry trade disinvestment and deleveraging out of bank stocks. 

Emerging markets trading strongly lower included Turkey, TUR, Egypt, EGPT, and Chile, ECH. 

Europe, VGK, was led lower by the European Financials, EUFN, which forced Italy, EWI, Spain, EWP, France, EWQ, Germany, EWG, lower. And The Russell 2000, IWM, led US Stocks, VTI, lower. 

 

Commodities, DBC, traded basically unchanged; Agricultural Commodities, RJA, traded higher. Gold, GLD, and Silver, SLV, traded lower on the higher US Dollar. 

Zero Hedge It’s a massacre each day 134 retail outlets close in Italy.

Zero Hedge reports A classic minsky trap appears to have developed.

Zero Hedge reports The bloom has fallen off the Brazilian Rose

ValueWalk reports China’s looming crisis hurts hedge funds betting on Abenomics

Greg Robb of Market Watch reports 7 Candidates to Succeed Bernanke at Fed. President Obama gave the clearest indication yet that Fed Chairman Ben Bernanke won’t serve again after his term ends in January. In an interview this week, Obama said Bernanke had already served longer than he wanted, which it least one informed observer, at least initially, called tantamount to a firing. One of the few members of the shortlist who has never held a position at the Fed, Larry Summers, 58, joined the Clinton administration and rose to become Treasury secretary.

Sovereignty begets seigniorage, that is moneyness. Where the moneyness is, there is the sovereignty.

The moneyness of The US Federal Reserve, as well as all the moneyness of all the other world central banks was decimated at the Ben Bernanke News Conference of June 19, 2013, as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.31%. The rise of interest rates globally, as is seen in Aggregate Credit, AGG, plummeting, communicates, that the world central banks have lost their monetary authority. The US Federal Reserve, the ECB, and all the other world central bank leaders and their nation state governments are no longer sovereign.

The Milton Friedman Free To Banker regime perished on May 24, 2013, when the benchmark interest rate rose to 2.01%, and was put in the coffin, and buried on June 19, 2013, when that  rate rose to 2.31%.

New sovereign authority and new seigniorage, was born, yes birthed, out of the rise of the Interest Rate on the US Ten Year Note, ^TNX.

Christ’s Apostle John provides the details of the world’s new sovereign authority, that is the Beast regime, in Revelation Chapter 13 Verses 2, which relates that ”the beast which I saw was like unto a leopard, and his feet were as the feet of a bear, and his mouth as the mouth of a lion: and the dragon gave him his power, and his seat, and great authority.” In other words, this monster is powered by Satan the Devil.

A leopard is camouflaged, and as such blends in with the background so it can not be seen by its prey. It operates furtively and prefers the darkness, and then at dusk, or at night, strikes to ensare, enslave, destroy and consume.

The feet of a bear are padded for comfort to run at great speed and the feet have claws for climbing to reach its victims or alternatively to root them out of what seems to be secure places.

The mouth of a lion makes roars with great preeminence, opens wide to devour its opponents, and then rips them apart, gulping them in delightfully huge segments.

So no more traditional Federal Reserve; its head will not be a namby pamby, generous sort of chap at all.  The New Federal Reserve will have features of the most terrifying predators know to mankind; its mission is to utterly destroy all existing credit, currencies, and wealth; as well as to eliminate the fiat money system; and replace it with the diktat money system, where diktat serves as trust, medium of exchange, wealth and power. 

II. D) … On Thursday, June 20, 2013, Aggregate Credit, AGG, Major World Currencies, DBV

Emerging Market Currencies, CEW, Base Metals, DBB, Precious Metals, JPP, Commodities, and Stocks, VT, traded sharply lower reflecting the Fed’s stimulus wind down.                                                                                                                                              World Stocks, VT, were led lower by Asia Excluding Japan, EPP, Japan, EWJ, and Europe, VGK, while US Shares, VTI, traded off less sharply than other regions, as Aggregate Credit, AGG, collapsed, on the seizure in Emerging Market Bonds, EMB, Municipal Bonds, MUB , Build America Bonds, BAB, Junk Bonds, JNK, andUltra Junk Bonds, UJP.   Credit broke fractically lower, the Interest Rate on the US Ten Year Note, ^TNX,  blasting higher to 2.42%, and on a vertical steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, communicating not only the death of credit, but a burial of credit in the grave.  

Michelle Kaske of Bloomberg reports The largest exchange-traded fund tracking the U.S. municipal -bond market fell to the lowest price in almost two years and the week’s two biggest sales were delayed as the Federal Reserve said it may stop buying debt. The $3.6 billion iShares S&P National AMT-Free Municipal Bond Fund, known as MUB, fell to the lowest since August 2011 and the biggest one-day price drop since February 2012 The price decline mirrored changes in the $3.7 trillion municipal market, where tax-exempt yields rose along with those on Treasuries, said David Manges, muni trading manager at BNY Mellon Capital Markets. ‘The muni market is in a free-fall today,’ Manges said. ‘It’s tough to get a sense of value or benchmark spreads because prices are so fluid.”

Kelly Nolan of Dow Jones reports Benchmark municipal bond prices saw their sharpest one-day decline since the financial crisis Thursday. Yields on Thomson Reuters Municipal Market Data’s benchmark scale increased as much as 0.20 percentage point Thursday munis maturing around 10 to 30 years saw the biggest yield increase on MMD’s scale It is rare for the typically sleepy muni market to show such drastic price moves: The last time MMD’s benchmark scale showed a similar one-day yield jump was in October 2008, said strategist Dan Berger. ‘It’s getting disastrous out there,’ said MMD senior market analyst Randy Smolik. ‘Our adjustments yesterday paled to Treasurys, and today, with more [Treasury] selling, it’s giving the green light for guys to unload positions.’ Gary Pollack, managing director at Deutsche Asset & Wealth Management, agreed that several market participants were trying to sell bonds. ‘It’s raining bid wanteds out there,’ said Mr. Pollack. Kathy Bramlage, director at Treasury Partners, a unit of financial-advisory firm HighTower Advisors, which oversees about $9 billion in fixed-income assets, said the market tone was anxious. ‘Traders will not put a number on anything this afternoon,’ she said. ‘Everyone is skittish.’ Thursday’s slide in muni prices adds on to what has already been a brutal month and a half for the asset class.”

The unwinding of the Fed Trade has had the greatest effect in the Emerging Markets, EEM.  As Emerging Market Bonds, EMB, collapsed, Emerging Market Currencies, CEW, plummeted.  The Indian Rupe, ICN, the Brazilian Real, BZF, the Swedish Krona, FXS, the Australian Dollar, the Canadian Dollar, FXC, the Japanese Yen, FXY, and the Euro, FXE, traded sharply lower, boosting the US Dollar, $USD, UUP.  Commodities, DBC, traded lower on lower Gold, GLD, Silver, SLV, Base Metals, DBB,and  Oil, BNO, USO.

Today’s rise in Volatility, ^VIX, reflects the very shattering of fiat money. It was the National Bank of Greece, NBG, Chinese Financials, CHIX, Brazil Banks, BRAF, India’s Banks, EPI, Australia’s Westpac Banking, WBK, Korea’s KB and WF, The UK’s RBS, BCS, Peru’s BAP, Chile’s BCA, BCH, Mexico’s BSMX, Spain’s SAN, Emerging Market Financals, EMIF, European Financials, EUFN, Far East Financials, FEFN, Japan Credit Services, IX, and Financials Group, XLF, lower. 

Ambrose Evans Pritchard writes  Short-term borrowing rates in China have soared to record highs as credit seizes up, prompting fears that the country’s liquidity squeeze may be spinning out of control.  And the WSJ reports China cash squeeze gets tighter. China’s cash crunch intensified with short-term interest rates jumping to record highs and forcing banks, CHIX, such as SHG, to sell bonds to meet urgent funding needs. Bloomberg reports China swap jumps most since 2011 as PBOC fails to ease crunch  And Zero Hedge relate China interbank market freezes overnight as repo explodes to 25%. Yves Smith of Naked Capitalism writes Chinese interbank markets having a heart attack, repo and Shibor skyrocket, could trigger bigger unraveling.  Jesse writes SHIBOR signaling stress in China’s Financial System as liquidity crunch depens. In story by Matt Phillips, the inter-bank liquidity crunch is a classic banking problem for which the central bank as lender and regulator was created. It would be nice if the bankers could get in front of these problems as they develop, and not merely throw the public’s money at them after the fact when bad bank management, official corruption, and excessive greed have made the system vulnerable. The chart of the Shaghai Interbank Offered Rate, SHIBOR,  has spiked from 3% to 7%. What does the spike in rates mean? Large banks are increasingly leery of tapping into their pools of cash to lend to each other. Recent reports that China Everbright Bank failed to repay a short-term loan to Industrial Bank Co. aren’t helping. Industrial Bank says that report is “untrue and exaggerated.” But short-term lending markets suggest other bankers are skeptical. So what’s the solution? Chinese authorities tamed short-term interest rate spikes before. They could create new cash to lubricate lending, or lower reserve requirements for banks, which would boost liquidity. According to the Wall Street Journal, that’s what bankers are hoping for.  James Booth posted the first article on the Shibor issue relating. China 1-Day Shibor rises most in 5 Months as redemptions drop.  China’s one-day Shanghai interbank offered rate, or Shibor, surged the most in five months on speculation cash supplies will become tighter as redemptions of central bank bills decline this week.

Doug Noland reports in China Bubble Watch. Kathrin Hille of Financial Times reports China’s Communist party has unleashed a rectification campaign of a scale and tone not seen in more than a decade as the leadership seeks to address frustration over corrupt officials while avoiding bold political reforms. As investors wait for party chief Xi Jinping to initiate long-delayed economic reforms and liberals in China push for political change, Mr Xi is taking a page out of the playbook of Mao Zedong, the charismatic but dictatorial politician who led China through a sequence of mass campaigns. Mr Xi, in a speech on Tuesday, exhorted the party that it must embrace the ‘mass line’ to avoid its extinction. Every cadre, demanded Mr Xi, must ‘look in the mirror, tidy your attire, take a bath and seek remedies’ to clean the party from formalism, bureaucratism, hedonism and extravagance. All cadres from county level upwards have to attend study and criticism sessions during the year-long campaign.”

Simon Rabinovitch of Financial Times writes China’s cash crunch deepened on Wednesday after the central bank withheld funding from the financial system, putting pressure on overextended lenders. Short-term interbank rates jumped more than 200 basis points, setting a record high at nearly 8% for loans of one month or less, the latest indication of how credit has suddenly become very tight in China. The main reason for the tightness has been the central bank’s reluctance to pump liquidity in to the money market, wrongfooting banks that had expected Beijing would support them with large cash injections, as it had regularly done before. Signalling that the cash crunch could persist for a while, the China Securities Journal, a major state-run newspaper, ran a front-page commentary saying China was at a turning point in monetary policy. ‘We cannot use as fast money supply growth as in the past, or even faster, to promote economic growth,’ the newspaper said. ‘This means that authorities must control the pace of money supply growth. ‘The only explanation is that the central bank wants to send a warning signal to commercial banks and other credit issuers that unchecked credit expansion, particularly through the shadow banking system, will not be accommodated,’ said Na Liu with CNC Asset Management. Overall credit growth in China has reached about 22-23% this year, up from 20% in 2012, after surge in ‘shadow’ lending by trust companies and banks through off-balance-sheet vehicles.”

Bloomberg reports China’s government said the nation’s financial system must ‘better’ serve economic growth under a prudent monetary-policy framework as the cost of borrowing on the interbank market surged. Authorities will boost credit support for industries the government has defined as strategic and those that are labor intensive, the State Council, or Cabinet, said… The nation must more firmly guard against financial risks.The comments follow a jump in the seven-day repurchase rate, a gauge of interbank funding availability, to the highest level since June 2011. Slowing economic growth combined with a crackdown on illegal capital inflows, efforts to rein in shadow banking and a campaign to control home prices have contributed to increased borrowing costs.  ‘Beijing’s new approach is to focus on reform, rather than stimulus,’ said Qu Hongbin, HSBC Holdings Plc’s  chief China economist. ‘In the last three months, we have seen enough evidence that the current generation of leadership is really determined to push forward reform.’ Bank lending for projects in industries with overcapacity must be banned, the State Council said. The financing system must ‘support economic transformation and upgrading in a more forceful way, serve real economy development in a better way, promote domestic demand in a more targeted way and prevent financial risks in a more concrete way,’ the government said… China must also uphold prudent monetary policy and ‘use it well,’ and keep a reasonable scale of monetary aggregates, the State Council said.”

Bloomberg reports “China’s worst cash crunch in at least seven years is an indicator of shadow lending gone awry and a banking crisis may appear earlier than expected if liquidity remains tight, according to Fitch Ratings. ‘We are starting to see some issues emerging’ in liquidity, Charlene Chu, Fitch’s head of China financial institutions, said. ‘It will be very important over the next month or so to see how that plays out. If that doesn’t go away, some of this may be moving ahead faster and earlier than we thought.’ Chinese finance companies are calling for the central bank to resume capital injections as the nation’s slowing growth. The tightening is ’emblematic of some of the shadow banking issues coming to the fore as well as some of the tight liquidity associated with wealth management product issuance, and the crackdown on some shadow channels,’ Chu said. She earlier estimated China’s total credit, including off- balance-sheet loans, swelled to 198% of gross domestic product in 2012 from 125% four years earlier, exceeding increases in the ratio before banking crises in Japan and South Korea. In Japan, the measure surged 45 percentage points from 1985 to 1990, and in South Korea, it gained 47 percentage points from 1994 to 1998. Triggers and timing is the biggest question related to China,’ Chu said. ‘We are going to have banking sector problems. Those can manifest either in a crisis or they can manifest in slow growth.

Bloomberg reports China’s interbank rates, which rose to a record yesterday, will be under upward pressure as more than 1.5 trillion yuan ($245bn) of wealth management products mature this month, according to Fitch Ratings. Mid-tier banks, with an average of 20% to 30% of their deposits in such products, face the most difficulty as tight liquidity constrains their ability to meet repayment obligations, Fitch said… Issuance of new products and borrowing from the interbank market are among the most common sources of repayment for maturing products, according to the ratings company.

Benton te writes In a world addicted to easy money, tightening of the money environment will bring into light the credit risks from heavily leveraged financial system and debt burdened governments. Boom will become a bust. Caveat emptor

I relate that the BRICS, and the Emerging Markets fell the most in 20 months, on the rise of the Interest Rate on the 10 Year Interest Note, ^TNX, and the failure of growth in China, and the rise of inflation in Brazil, EWZ.

Asia excluding Japan trading sharply lower included, China, YAO, the Philippines, EPHE, Indonesia IDX, Thailand, THD, Singapore, EWS, Hong Kong, EWH, Australia, EWA, South Korea, EWY, and Taiwan. EWT. 

All of the BRICS, EEB, Brazil, EWZ, Russia, RSX, India, INP, and China, YAO, and CHII, fell sharply lower. Marketwatch reports Brazill stocks, currency plunge in ‘crisis’ day

Emerging Market Countries, EEM, trading shaply lower included the South Africa, EZA, Turkey, TUR, Greece, GREK, Chile, ECH, Peru, EPU, Poland, EPOL, and Mexico, EWW. Greek Crisis presents the FT report  IMF to suspend aid payments to Greece unless bailout hole plugged

Developed Nations, such as Sweden, EWD, Canada, EWC, Sweden, EWD, Norway, NORW, The UK, EWU, Swizerland, EWL, and Japan, EWJ, traded sharply lower. In Europe, VGK, Greece, GREK,Germany, EWG, Italy, EWI, Spain, EWP, France, EWQ, and  Netherlands, EWN, traded lower.

Breakout reports Bond Rate Rally Crushes Equities; sectors trading lower included ITB, COPX, PBD, FPX, FLM, BJK, PSCE, XOP, CARZ, PICK, RZV, and CSD. Yield bearing equities trading lower included FNIO, DRW, IYR, ROOF, REM, TAO, EPI, AUSE, BRAF, KBWY, EDIV, DGS, and XLU. It was Higher Interes rates and falling currencies, stimulated strong debt deflation in highly debt financed and thus interest rate sensitive, Global Utilities, DBU, such as Brazil’s, SBS.

China Infrastucture, CHXX, India Infrastructure, INXX, and Brazil Infrastructure, BRXX, led Emerging Market Infrastracture, EMIF, lower.  US Infrastructure, PKB, and Construction Service Company, PRIM, traded off less than these others. With the rise in Interest Rates globally, governments will no longer be able to fund publicwork projects such as ports, highways, airports, electrical grid improvements, water and solar projects.  

Silver, SIL, and Gold, GLD, traded lower on a jump higher in the US Dollar, $USD.

Bloomberg reports Egypt violence builds after Mursi names Islamist Governors. Employees of an Egyptian tourism trade group threatened to resign in protest amid renewed clashes in parts of the country today over President Mohamed Mursi’s latest appointment of Islamists to key positions. Discontent with Mursi, who marks a year in power at the end of the month, is building up as critics plan protests on June 30 to call for early elections. They accuse him of failing to revive the economy while putting the interests of his Muslim Brotherhood allies ahead of the nation’s good.

II. E) … On Friday, June 21, 2013, Global Stocks. VT, held steady, but Bonds, BND, and a number of currencies collapsed further in an ongoing Fed driven selloff.                                                                                                                                         World shares, VT, recovered some lost ground on Friday, after a sharp sell-off triggered by the U.S. Federal Reserve’s plan to roll back the asset-buying program which had carried stocks higher. Yet Aggregate, AGG, continued collapsing on the rise of the Interest Rate on the US 10 Year Note, ^TNX,  to 2.51%, as well as another steeping of the 10 30 US Sovereign Debt Yield Curve, as seen in the Steepner ETF, STPP, steepening.  Junk Bonds, JNK, High Yield Junk Bonds, UJP, International Treasury Bonds, BWX, Emerging Market Bonds, EMB, Municipal Bonds, MUB, as well as US Government Debt, GOVT, that is the Zeroes, ZROZ, the 30 Year US Government Bonds, EDV, the 10 Year US Government Notes, TLT, the 7 to 10 Year Treasuries, IEF, and the 3 to7 Year Treasuries, IEI, completely broke down seen in Yahoo Finance Chart of ZROZ, EDF, TLT, IEF, and IEI.

The sharp rise in yields, such as that on the 10 Year US Government Note, $TNX, and that on the 30 Year US Government Bond, $TYX, seen in their ongoing combined Yahoo Finance Chart, represents the cardiac arrest, death, and burial of credit.  The global government finance bubble has burst, and comes from the death of sovereign nation states’ monetary authority, through the credit excesses of credit lords, Ben Bernanke, and all the other world central bank leaders.  Their monetary policies no longer provide seigniorage.  Fiat money died, May 24, 2013, and was literally buried on June 22, 2013, at the hands of the bond vigilantes who inverted yield curves, steepening them as is seen in the Steepner ETF, STPP, steepening, and who called interest rates higher.  A new money, that is diktat money is being roled out, or better said called out by EU nannycrats, specifically, European Economic and Monetary Affairs Commissioner Olli Rehn, Austria’s Finance Minister Maria Fekter, and the President of the Eurogroup Jeroen Dijsselbloem, who Mail.com reports have agreed upon a regional framework agreement on June 21, 2013, to provide for regional stabilization of the EMU.   Liberalism was characterized by the financialization of equities and credit; its peak prosperity has been achieved via the full development of moral hazard. With Jesus Christ is at the helm of the Economy of God, Ephesians 1:10, the world is rapidly moving into regionalization which is characterized by the mutualizaton of debt.

The Swedish Krona, FXS, the Canadian Dollar, FXC, the Swiss France, FXF, the Euro, FXE, and the British Pound Sterling, FXB.

The chart of the S&P 500, $SPX, shows a fall of 2.1% for the week. Sectors trading lower included PSP, FLM, BJK, ITB, PKB, and IGV. The National Bank of Greece, NBG, continued strongly lower, taking Greece, GREK, strongly lower,  as Zero Hedge reporgts Greek bonds plunge as ruling coalition partner pulls out, withdrawing ministers. Commodities, DBC, trading lower included Oil, USO,.

Peter Schiff in Economic Policy Journal writes of this week’s financial market trading Bukcle Up. Investors will realize that yeas of QE have only exacerbated the problems it was meant to solve. When the grim reality of QE infinity sets in, the dollar will tank, gold will soar, and the real crash will finally be upon us. Buckle up 

Mike Mish Shedlock writes Inflation, corruption, as Brazil’s boom comes to an end. What’s the protest really about? Inflation and corruption is the answer. Fare hikes are a symptom. Brazil complained for years about the strength of its currency, the Brazilian Real. Now it intervenes regularly to prop it up. Inflation is a reported 6.5%, but no doubt much higher in practice. Problems are easy to overlook in a seemingly good economy when jobs are plentiful. It’s much different when the boom ends and the corruption becomes obvious.

I’ve had an increasing interest in economic things since 2007 to 2008, that is since thing started booming here in Bellingham with the recovery from the Financial, Housing and Commodities Bust. And in looking back it was in 1999 to 2000 that the Euro, traded by the ETF, FXE, came on line; and have with increasingly comprehension, come to understand that the Debt Devil is coming. 

The Euro is partly a commodity currency, that increased the price of everything, including gold. That is to say it was part of Inflationism. The Euro developed European Socialism, and the more extreme Greek Socialism, and developed the ECB, and the European Finance Ministers, that is to say the EU Nannycrats, The Euro was a funding currency for the greatest currency carry trade of all time that is the EUR/JPY, seen in the Stockcharts.com chart of FXE:FXY.

   

And European Countries have participated in US Dollar Hegemony throughout the world, such as Iraq, Libya, Mali, and now in Jordan. Dr Worden in article EU and US Counterpartes Meet, asks, Which of these pictures do you think best depicts the motif of equivalence? I have to say none of the pictures illustrates any form of equivalence, all illustrate the United States as being the preeminent leader. In the first picture, the US Flag stands out as brighter, and Obama’s podium is clearly larger, and even shows him elevated in height above all the other leaders. In the second photo Obama is clearly the expressive leader and is the one taking on centerstage with the others deferring to him. And in the third photo, the US Flag is given more space than the EU Flag.  So the conclusion here in the European Pressphoto Agency, AFP, and Atlantic Council photos is one of allies committed together in hegemonic power.   Such coordination of power between the EU and the US, has been the fateful working of Bible Prophecy of Daniel 2:25-45.

The Euro defined and amplified the Nordic Latin Divide, that is the European North South Divide, and within the Euro common currency, the Netherlands, and Finland, have consistently scored highly in prosperity against the Dutch who have the Krone.

 

The slog since 2000 has been one of ever increasing moral hazard based prosperity that has come thourgh currency carry trade funding and credit of all type.

Now Jesus Christ in dispensation, that is in administration of all things economic and political, Ephesians 1:10,  having completed Liberalism’s credit nation state based prosperity through Inflationism, is introducing Authoritarianism’s regional governance based debt servitude based austerity through Destructionism.

Out of a soon coming Financial Apocalypse, that is a global credit bust and financial system breakdown, foretold in Revelation 13:3-4, will come Europe’s Sovereign, Revelation 13:5-10, who will be accompanied by the Seignior, that is the top dog banker who takes a cut, Revelation 13:11-17.  Euroland’s Leader will be one familiar with Authoritarianism’s schemes, such as regional framework agreements which renounce national sovereignty and provide for pooled sovereignty, as seen in Prophetic Dream by the Prophet Daniel, Daniel 8:23-26, who fainted and was sick for days, Daniel 8:27.

Robin Emmott and Ingrid Melander of Reuters report, EU to decide who pays when banks fail. The European Union sought on Friday to forge rules to force losses on large savers when banks fail, a

divisive reform that will shape how the euro zone deals with its sickly lenders.

Finance ministers in Luxembourg are trying to resolve one of the most difficult questions posed by Europe’s banking crisis – how to shut failed banks without sowing panic or burdening taxpayers.  “We are in for a very tough negotiation,” Sweden’s Finance Minister Anders Borg told reporters as he arrived for the meeting, saying a one-size-fits-all rule for all EU countries was “dangerous”.  The European Union spent the equivalent of a third of its economic output on saving its banks between 2008 and 2011, plundering taxpayer cash but struggling to contain the crisis and – in the case of Ireland – almost bankrupting the country.

But countries are divided over how strict the new rules should be, with some worried that imposing losses on depositors could prompt a bank run while others argue the rules of the game must be made clear from the start.

While there is no immediate deadline for a deal, dithering could undermine confidence in the ability of Europe’s politicians to repair the financial system, encourage banks to lend again and help the continent emerge from its economic stagnation.

“Midsummer is the longest day of the year so we have plenty of time,” said Olli Rehn, the European Commission’s top economics official, referring to the northern hemisphere’s June 21 summer solstice.

A 300-page draft EU law that forms the basis of discussions recommends a pecking order in which first bank shareholders would take losses, then bondholders and finally depositors with more than 100,000 euros ($132,000) in their account.

That would make the harsh treatment of savers (known as the Cyprus Bank Bailin) that was part of Cyprus’s bailout in March a permanent feature of Europe’s response to future banking crises. EU countries would be required to follow these rules when closing banks. The rules to impose losses on savers, whether wealthy individuals or companies, could be made stricter within the euro zone, in particular for banks seeking help from the single currency’s rescue fund. A central element to ensure the euro zone’s long-term survival is a system to supervise, control and support its banks, known as banking union.  Although not part of the same project, common rules in the wider European Union are considered a stepping stone towards the euro zone’s banking union.

And Bloomberg reports on seigniorage aide: Germany said to seek Cyprus style wipeouts in ESM Bank aid rules. Germany is leading a push for all bank creditors except insured depositors to take losses before the euro area’s firewall fund could provide direct aid to troubled financial institutions, according to two European officials.

Doug Noland writes Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $718bn y-o-y, or 6.9%, to $11.130 TN. Over two years, reserves were $1.271 TN higher, for 13% growth …. M2 (narrow) “money” supply gained $11.1bn to a record $10.590 TN. “Narrow money” expanded 6.4% ($639bn) over the past year. For the week, Currency increased $1.2bn. Demand and Checkable Deposits sank $110.5bn, while Savings Deposits jumped $117.8bn. Small Denominated Deposits declined $3.8bn. Retail Money Funds jumped $6.3bn.

III) … People will come to trust in the diktat of regional nannycrats for regional security, stability and sustainability.

God’s will for mankind is to experience Empire. God promised a succession of empires which is seen in the Statue of Empire dream given to King Nebuchadnezzar in Daniel 2:25-45, where a ten toed kingdom of regional governance forms to rule mankind, with toes of iron diktat and clay democracy.

This global system of regionalism replaces the interventionism of the two iron legs seen in the Statue, where the first iron leg was the British Empire, and the second iron leg is/was the US Dollar Hegemonic Empire, that commenced with the establishment of the US Fed in 1910 to 1913.

The very linchpin in the Economy of God, Ephesians, 1:10, is the nation of Greece, GREK, as the sovereign Lord God, has designed it and a collection of Mediterranean Sea states, known as the PIGS, for their profligacy, to be the beachhead for the rise of the Beast Regime of Revelation 13:1-4. The National Bank of Greece, NBG, continued strongly lower, taking Greece, GREK, strongly lower as Zero Hedge reporgts Greek bonds plunge as ruling coalition partner pulls out, withdrawing ministers. A FT reports IMF to suspend aid payments to Greece unless bailout hole plugged. And as Ambrose Evans Pritchard Communicates that the EU has become a diktat union imprisoning the periphery PIIGS in a debt union by mandaiting bailins and by bearing the onerous burden of bank recapitalization.   Another shameful day for Europe as EMU creditor states betray South; the Cyprus “template” for banking crises is to be eurozone policy for other countries after all.

It is clearly evident that during the week ending June 22, 2013, God’s word of prophecy has been fulfilled as the political governance and economic viability of Greece has collapsed. Under Liberalism, Jesus Christ, throught Dispensation, Ephesians, 1:10, gave the Greeks, the most toxic form of governance ever to have been conceived, one of clientelism and anticpmpetitivism, for all practical puposes Communism. Now under Authoritarianism, Greece is a failed democratic nation state and has no national sovereignty to obtain seigniorage for its fiscal needs; it is a beggar nation receiving seigniorage aid from northern EU lords. It is a client state of Eurozone regional governance headed by nannycrats in the Brussels and Berlin. Those living in Greece are debt serfs, living in Euro debt land. Under Authoritarianism, there be no free land anywhere. Credit was a way of life under Liberalism; now debt servitude, is the way of life under Authoritarianism.   According to God’s Providence, Greece is rapidly leading the way forward in regionalization, where a EU Federal Superstate will be the example and standard for regional governance, totalitarian collectivism, and debt servitude.

The Beast will be manifesting in China, YAO, as well, as the PROC Central Bank morphs from being a provider of credit to being monster of debt servitude, turning what once was credit on its head, as the shadow banking system, comes out of concealment and is utterly smashed causing misery and great suffering to all of China’s inhabitants.

 

And in the US, the US Federal Reserve, having been slain at the Ben Bernanke News Conference of June 19, 2013, the ten toed kingdom is coming forth as a behemoth that is going to be a statist public private partnership, where a monetary pope rules over monetary cardinals, that is a council of so called wise men, from industry, banking, and commerce, to manage the factors of production and oversee the economy.

Cleary God presents regionalism, specifically regional empires, in both Daniel 2:25-45, as well as in Revelation 13:1-4, as the economic and political driver of mankind’s experience.  God’s Son, Jesus Christ, is in dispensation, that is in the administrative oversight of all things economic and political, Ephesians 1:10.

Under Liberalism, Jesus promoted bankers in democratic nation states waiving magic wands of credit creation, in what Doug Noland termed wildcat finance.  But now under Authoritarianism, He is installing nannycrats in each of the world ten regions, yielding wands of debt servitude, in what I term wildcat finance, where only the most fierce and wily rise to be the top dog ruler and top dog banker.

 

So it’s out with the old two empires, and in with the ten new empires.  In the North American continent, it will be called the North American Union, that is the NAU, or what I call CanMexAmerica, that being the amalgamation of Canada, Mexico, and the United States of America. In Europe, it will be what some call the EU Superstate, or what Angela Merkel has called the New Europe, or what Robert Wenzel of Economic Policy Journal once termed a One Euro Government. Here’s the climax clincher, that is the grand economic promise of God. The Apostle John presents in Revelation 17:12, that there will be ten kingdoms: “The ten horns of the beast are ten kings who have not yet risen to power. They will be appointed to their kingdoms for one brief moment to reign with the beast.”

Credit and currencies are both based upon inflationism and trust in the ability of the debtor to repay the lender. Libealism’s fiat money has been based upon confidence in the Banker regime of central banks, such as the US Federal Reserve, and the Bank of Japan, Investment Banks, such as JPM, Regional Banks, such as RF, the Too Big To Fail Banks, such as BAC, Asset Managers, such as BLK, and Stock Brokers, such as TROW, of democratic nation states. 

Jesus Christ, working in the Economy of God, that is dispensation for the completion of every age, epoch, era, and time period, has completed the trust in fiat investments. 

Now, under destructionism, and the inability of the debtor to repay the creditor, people will come to trust in regional nannycrats and place confidence in statist public private partnerships of Authortarianism’s diktat money system, for regional security, stability, and sustainability. 

Mike Mish Shedlock writes Rehn requests, In return for granting Spain an extension on meeting 3% deficit threshold of the stability act, Vice President of the Commission responsible for Economic Affairs, Olli Rehn, said Wednesday it is “crucial” that Spain and other countries that will benefit from an extension to correct its excessive deficit in return accelerate reforms to improve competitiveness. Specifically Rehn requests, 1) Pension reform, 2) Labor reform review, 3) Increase in the VAT on certain products and fuels, and 4 Elimination of income tax deductions on individuals and corporations. The above via google translate from La Vanguardia. I can certainly agree with point number one. But what’s with a “review” on labor reform rather than action? Points three and four are inane. Demanding tax hikes in the middle of a depression is economic suicide. Yet, Rehn wants a hike in the VAT and tax hikes on individuals and corporations. Spain (the world in general) needs lower taxes and less government, not the opposite.

Ambrose Evans Pritchard communicates that the EU has become a diktat union imprisoning the periphery PIIGS in a debt union by mandaiting bailins and by bearing the onerous burden of bank recapitalization.   Another shameful day for Europe as EMU creditor states betray South; the Cyprus “template” for banking crises is to be eurozone policy for other countries after all. Anybody with serious banking exposure to any EMU state on the front line of Europe’s macro economic crisis now knows what to expect. The deal reached by EMU finance ministers on the use of the bail-out fund (ESM) to recapitalise distressed banks makes clear who will in fact suffer the real losses: first shareholders, then bondholders and then deposit holders above €100,000. They stand to lose almost everything, as we saw with Laiki in Cyprus.

The states that are already in trouble will have to carry most of the burden of recapitalising banks, pushing them over the edge into actual insolvency. They will have to come up with the money needed to raise capital ratios to 4.5pc of assets. Then come the private haircuts, which of course risk devastation for the host country, and the collapse of investor confidence. Only then does Europe step in to share part – not all – of any further recap needs. The original promise of an ESM blanket to cover “legacy assets” has come to almost nothing. The vassal states may possibly get some relief later on the past losses from the EMU credit bubble, but only as a reward for good behaviour and on a case by case basis.

“Legacy losses will be used as a disciplinary device: Greece, Spain and Ireland will now have to tussle, beg and plead for debt relief regarding the funds already borrowed from the EFSF-ESM for their banks,” said Dr Varoufakis. “As the grand total for all bank recapitalisations, past and future, is to be limited to the puny sum of €60bn, Europe’s peripheral nations can only at best receive a tiny amount of debt relief; enough to ensure that Ireland, Greece and Spain are competing against one another as to which proud nation will be a better ‘model prisoner’ than the rest.” Indeed, it is an abject spectacle. Dr Varoufakis rightly calls it a “a truly shameful day for Europe”. The creditor states of the North are still calling all the shots, and presumption remains that the countries in trouble are victims of their owns failures, fecklessness and folly.

There is no recognition that this disaster was a joint venture, caused by the dysfunctional structure of monetary union; nor that Northern creditors and their banks share half the blame for flooding the South with cheap credit; nor that the ECB played a huge part in stoking unstable credit bubbles in Club Med and Ireland by gunning M3 money supply at double-digit rates to help nurse Germany through its slump. Nor is there even a sensible analysis of what is needed to solve the crisis.

One can understand why Germany, Holland, Finland and Austria do not wish to accept any mutualisation of debt, or admit to their own taxpayers that the euro project costs real money. But what sticks in the craw is the relentless propaganda by EU leaders that they will stand shoulder to shoulder in solidarity with fellow members of EMU, and that they will do whatever it takes to uphold a project upon which the peace of Europe allegedly depends. Quite obviously they will do no such thing.

What sticks, too, is the oft-repeated claim that Anglo-Saxon outsiders failed to understand the degree of pan-European political will behind the EMU project. This cliche is the opposite of the truth. Anglo-Saxon investors believed so gullibly in the total sanctity of EMU that they were willing to buy Greek 10-year bonds for a wafer-thin margin of just 26 basis points (bps) over Bunds (and Spanish debt for just extra 4bps). They believed the dream, too. The reason why the EMU crisis metastasized – when debt levels were lower than in the US or Japan – was the horrible discovery that Germany might not stand behind the project after all, and certainly would not stand behind Greece. Those who stayed to the end lost 75pc (de facto) in Greek haircuts.

(Mr Pritchard goes on to relate the causes of the breakdown of governance in Greece. These include the inability to come up with a free market business plan for the Greek TV Broadcaster ERT as well as the inability to provide a reasonable level of funding for the health care system, and the inability to dismiss enough state govenment workers to bring the Greek fiscal budget in line with the ongoing seigniorage aid from the IMF.  It is clearly evident that Greece is politically unable to make the transition from what amounts to a communist state to a modern capitalist government. Even if it could do so, the capital for fiscal spending simply is not there, and will not be there, as credit liquidity and credit funding of Treasury Debt is not present, as the credit cycle is now going downhill, meaning that there is no funding available with interest rates jumping higher every day and yield curves inverting; the inversion of yield curves is at the heart of the death of credit. Yes credit, currencies and wealth actually died, May 24, 2013, as the Interest Rate on the US Government Note, ^TNX, rose to 2.01%, and the 10 30 US Soveign Debt Yield Curve, inverted and steepened, as is seen in the Steepner ETF, STPP, steepening.  And Jesus Christ operating in Dispensation, Ephesians 1:10, put the nails in the money’s coffin and literally thrust it into the Pit of Financial Abandon on June 22, 2013, when the bond vigilantes called the rate higher to 2.51%, and the currency traders successfully sold Major World Currencies, DBV, and Emerging Market Currencies, CEW, short, in their ongoing currency war on the world central bankers, with the result being that the US Dollar, $USD, rose to close at its 50 day moving average of 82.60.

Doug Noland writes The U.S. dollar index gained 2.0% to 82.32 (up 3.2% y-t-d). For the week on the downside, the Norwegian krone dropped 5.6%, the Mexican peso 4.5%, the Brazilian real 4.0%, the New Zealand dollar 3.7%, the Australian dollar 3.7%, the Japanese yen 3.7%, the Swedish krona 3.5%, the Canadian dollar 2.7%, the South Korean won 2.4%, the South African rand 2.1%, the Singapore dollar 1.9%, the British pound 1.8%, the Danish krone 1.7%, the euro 1.7% the Swiss franc 1.4% and the Taiwanese dollar 0.9%.

Milton Friedman’s and the Bretton Woods’ fiat money system is dead; it is a relic of the former paradigm of Liberalism; and has been replaced by the diktat money system of Authoritarianism. Evidence of diktat money, and thus the diktat money system is the EU Finance Ministers deal on bank bailouts of June 21, 2013, as reported by Ambrose Evans Pritchard).          

(The outcome of the politica convulsions and collapse of Greek government, as well as any reasonable means of providing for fiscal spending will be anarchy. Such might please anarcho capitalists who would love to provide a free market economy, as described by Wikipedia in its coverage of Anarcho Capitalism; but, Jesus Christ, operating in the political and economic plan of God for the completion and fullness of every age, epoch, era and time period, Ephesians 1:10, has by both His Universal Sovereignty and fate, precluded any libertarian model anywhere in the world, as God’s design and purpose for the completion of the current times is the paradigm of Authoritarianism to replace Liberalism. 

The mass extinction of investors commenced on the failure of credit and currencies.  And to assure that mankind be ruled by the Beast Regime of Revelation 13:1-4, and not anything else that praxeological “human action”, that is by any voluntary way, Jesus Christ has unleased the Four Horsemen of the Apocalypse presented in Revelation 6:1-8.  The White Horse signifies the transfer of sovereignty from democratic nation states to regional governance. The Red Horse signifies violence. The Black Horse signifies increasing famine and economic death. The Pale Green Horse signifies chaos. 

The greatest economist of all time was the Apostle Paul, who through his epistles communicated that in God’s Economy, that is in God’s Dispensation, there is no choice; rather all things are by fate, 2 Corinthians 5:17-18,. Under Dispensationalism, that is in Dispensationalist idelogy, there is only fate, that is destiny working in all things.  Choice is simply an illusion, or better said delusion sent to the fiat philosophical or religious mind, which works in self will worship, Colossians 2:23. Way Truth Life Ministry asks, What is will worship? It is the constant effort of man to accomplish his own will, whether for good or for bad.).

As for Greece, it is getting uglier by the day as Open Europe puts it Greek Coalition row over public broadcaster gets nastier by the day in Greece. The Democratic Left has pulled out of the coalition in protest over the shutdown of the ERT public broadcaster, reducing the Samaras majority to three seats. The privatisation programme is ruins. The National Healthcare Provision has a funding gap of €1bn. Not nearly enough public employees have been sacked to meet the Troika demands. And now the IMF is threatening to pull out altogether unless the eurozone comes up with the €3bn to €4bn needed by next month needed to comply with bail-out terms. It may not really matter that Greek bond yields are back above 11pc.  Peter Schaffrik from the Royal Bank of Canada says “The yield increase in the peripherals is becoming alarming,” Indeed so. Nothing has been solved. The eurozone’s creditor powers are playing a cruel game, doing just enough to keep this wretched entreprise alive and to protect their own commercial interests, but not enough to solve the crisis. The torture is endless. The cynicism plain to see. And the willingness of victim states to accept their plight so lamely is simply staggering.

(The level of trust in the power of the Authoritarianism’s Beast regime will be so great that the Apostle John in Revelation 13:3-4 foretells, “All the world marveled and followed the beast. So they worshiped the Dragon, who gave authority to the beast; and they worshiped the Beast, saying, “Who is like the Beast? Who is able to make war with him?”  … yes, sad, but true, people’s trust in regional governance will be so great, that it will actually constitute worship). 

IV) … News of the Global Security State.

Andres P. Napolitarno Fidelity to the Constitution when we need it   … Steven Greenhut NSA scandal separates liberty lovers from poseurs  … John Pilger Understanding the latest leaks is understanding the rise of a new fascism … Zero Hedge  NSA secret warrantless spying rules revealed.             

V) …  God has appointed a harlot to be sovereign over mankind for the entire duration of its economic and political experience: the whore of Revelation 17:-5 is the seven spiritual kingdoms that God has appointed to prostitute mankind.

Biblical prophecy teaches that regionalism is an inevitability.  Political and economic regional groups will emerge to create the ten toes in King Nebuchadnezzar‘s dream, which is detailed in the 2nd and 7th chapter of the Book of Daniel, which also highlights that throughout history there has been a  merging of national powers for world dominance all the way up to our present time.  Nebuchadnezzar’s dream prophecies a revived Roman Empire.

Following up on Daniel, the Apostle John wrote from prison, on The Isle of Patmos about 90 AD, the Revelation Of Jesus Christ, which foretells those things which must shortly come to pass: meaning a series of events that once they begin, fall quickly into place one right after the other.

Bible prophecy of Revelation 13:1-4 tells of a sovereign system which directs all of mankind’s activities through seven institutions and ten regions of global governance; the regions replace sovereign nations and their constitutions; and institute principles of global governance. 

The sevenheads symbolize mankind’s seven institutions: 1) Education, 2) Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science and Technology. The ten horns symbolize ten regions of global governance called for by the The Club of Rome in 1974.

The Apostle John writes of a woman in Revelation 17:1-5:  “And he carried me away in spirit to a desert; and I saw a woman sitting upon a scarlet beast, full of names of blasphemy, having seven heads and ten horns …and upon her forehead a name written, Mystery, great Babylon, the mother of the harlots, and of the abominations of the earth.”

The seven heads are seven mountains and the ten horns are ten regions of governance.

Seven hills is a designation for Rome, as it is built upon seven hills. The woman flows out of Rome; it emerges today as a revived Roman Empire, that is a United States of Europe, and morphs into a one world government System, Revelation 13:1-4, led by the Sovereign, Revelation 13:5-10, and a one world economy, as well as a one world religion, directed by the Seignior, Revelation 13:11-18, overseeing ten regions of global governance. It will emerge as a Babylonia system to enslave the entire world

Seven heads = seven mountains = seven kings = seven kingdoms

The woman adorned in scarlet of Revelation 17:3 is the seven kingdoms that God has appointed to rule mankind; the first five are found in Daniel 2:30-44, the sixth is found in Daniel 7:7 and also Revelation 13:1-4, the seventh is found in Revelation 11:8 and Revelation 17:18.

1) First, Babylonian, Gold

2  Second, Medo-Persian, Silver

3) Third Greek, Bronze

4) Fourth, Roman, Iron

5) Fifth, Revived Roman, European: Iron And Clay; this morphs into the next kingdom

6) Sixth, Fully formed World Government, Daniel 7:7 and Revelation 13:1-4. This beast is an alliance of global corporatism and global governance.

7) Seventh, Jerusalem, Revelation 11:8, and Revelation 17:18, will be the great city or capital city. The Sovereign will set up his palace tents or home in the holy mountain, Mount Zion, which is located in Jerusalem as Daniel relates: “But news from the east and the north shall trouble him; therefore he shall go out with great fury to destroy and annihilate many. And he shall plant the tents of his palace between the seas and the glorious holy mountain; yet he shall come to his end, and no one will help him.” Daniel 11:44-45.

The Temple in Jerusalem will be where the Sovereign declares himself to be God as Paul relates: “Let no man deceive you by any means: Let no one deceive you by any means; for that Day will not come unless the falling away comes first, and the man of sin is revealed, the son of perdition, who opposes and exalts himself above all that is called God or that is worshiped, so that he sits as God in the temple of God, showing himself that he is God.” 2 Thes 2:3-4.

The Apostle John relates that Jerusalem will be destroyed by a nuclear holocaust, as the nations of the world, out of hatred for global corporatism, global governance and the rule of the Sovereign, turn their weapons on it; this event which will be seen by sailors for hundreds of miles: “For in one hour such great riches came to nothing. Every shipmaster, all who travel by ship, sailors, and as many as trade on the sea, stood at a distance and cried out when they saw the smoke of her burning, saying, ‘What is like this great city?” Revelation 18:17-18

In related reading, Bible teacher Michael G. Mickey in The Prophecy Blog article The Fatherland of Peace, relates: “the groundwork is being laid, arguments being presented, for a more powerful, united European superstate (The United States Of Europe) to take shape before our very eyes. When it arrives – and I believe we will see it in the not-too-distant future – it will not be the kind of entity one views as a so-called ‘Fatherland of peace, (as Herman Van Rompuy describes it).

I have to agree as the evolving European superstate will morph into in  brutal world-wide governance described by Daniel: After this I saw in the night visions, and behold, a fourth beast, dreadful and terrible, exceedingly strong. It had huge iron teeth; it was devouring, breaking in pieces, and trampling the residue with its feet. It was different from all the beasts that were before it, and it had ten horns. Daniel 7:7.

The Apostle Paul communicated in Ephesians 1:10, that Jeus Christ, the Son of God, is The Dispensary of all things, giving faith to the appointed and disbelief to the reprobate. In God’s Economy, He terminated the realm of Liberalism on May 24, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose to 2.01%.  Now, Jesus Christ has pivoted the world’s economy and political experience into the real of Authoritarianism. Through Dispensational Economics, it is jugdement for the fiat, but mercy for the elect who keep Christ’s word of endurance, and do not shrink from His Name, that is His presence and authority, Revelation 3:8-10.    

VI)  … News of The Ezekiel 38 War                                                                                             Recently I wrote, Turkey is at the crossroads, economically, politically and biblically, communicating that the global confligration foretold in prophecy as the Ezekiel 38 War, where many nations come against Israel, and they triumph with miraculous help from God. is imminent. Now, the Ron Paul Institute reports Obama signals start of US War in Syria.  And Economic Policy Journal Posts Don’t arm Syrian rebels; they are cannibals, Putin warns. The Syrian rebels are “cannibals” and should not be given arms, Russian President Vladimir Putin said on Sunday. “I think you will not deny that one does not really need to support the people who not only kill their enemies, but open up their bodies, eat their intestines, in front of the public and cameras,” Putin said at a joint press conference in London with British Prime Minister David Cameron. Putin was referring to video footage posted on the Internet last month of a rebel fighter eating the heart of a government soldier. “Is it them who you want to supply with weapons?” he said, adding that this behavior does not correspond with international humanitarian norms. And AFP reports Saudi Arabia wants missiles for Syrian rebels. And Washington Post reports Obama and Putin fail to resolve differences over Syria. And Erica Ritz writes in The Blaze No one is prepared for what’s coming. And Prophecy News Alerts Syria will be armed with weapons that have never been seen before in the Middle East, Russia says. And Scott of Prophecy Update Blog writes The continuing rise of MaGog and Russian warships, marines, head to Syria.

One Response to “The Mass Extinction Of Investors Commences On the Failure Of Credit And Currencies … People Will Increasingly Come To Trust In The Diktat Of Regional Nannycrats For Regional Security, Stability And Sustainability.”

  1. dominios en venezuela Says:

    Everything is very open with a precise explanation of the challenges.
    It was truly informative. Your site is useful. Thanks for
    sharing!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: