A See Saw Destruction Of Fiat Wealth Is Underway With Stocks Reaching Their Zenith, While Credit And Currencies Are Being Destroyed By Bond Vigilantes Calling The Interest Rate On The US Ten Year Government Note Higher Beginning May 21, 2013

Financial Market Report for the week ending August 2, 2013

1) … Insolvent nation state sovereigns are unable to provide governance; new regional sovereigns are rising to provide regional governance.

Mike Mish Shedlock writes Former ECB Chief Economist warns “ECB will soon have to support France with fond purchases. Juergen Stark, former ECB chief economist (who resigned in 2011 over a dispute regarding bond purchases), says in an interview in Handelsblatt “The Euro crisis will worsen in late autumn”

Via Google Translate: A year ago, ECB chief Draghi announced plans to do anything to save the euro. The former ECB chief economist Juergen Stark considers this fatal. He fears that the ECB will soon have to support France with bond purchases.

“I think the crisis will come to a head in late autumn. We are entering a new phase of crisis management, “Stark told the Handelsblatt (Friday edition). After the parliamentary elections in late September that France would increase the pressure on the ECB and Germany. The government bond purchase program OMT should actually be used in Spain and Italy. “But the pressure will be enormous, use the instrument in France. And without that, the country must go to the rescue, “said Stark. A year ago the head of the ECB, Mario Draghi announced in London to do anything to save the euro. A little later, he presented the plans for the bond purchase program OMT.  Draghi bought the governments in Europe time. “But this time was wasted,” Stark said.

And Mike Mish Shedlock writes Euro sucks Italian blood; Prime Minister blames tax evasion; Reflections on Italy’s shadow economy. This summer a private air plane has been flying over Italian beaches with a banner message Euro is sucking Italian blood.  The article states “Italians have only one solutions to fight against this situation : leave Italy.”

No end in sight to Italy’s economic decline.  Der Spiegel says No end in sight to Italy’s economic decline. The Italian economy may be the third largest in the euro zone, but it is also plagued by inefficiency and continues to shrink. The country’s political leadership has proven unable to implement badly needed reforms and the future looks grim.

Italy, despite being the third-largest economy in the euro zone after Germany and France, finds itself in dire straits, having been in decline for years. Its GDP has dropped by 7 percent since 2007. The last few years, says Gianni Toniolo, an economics professor in Rome, represent “the worst crisis in (the country’s) history,” even more devastating that the period between 1929 and 1934.

Some sectors have lost even more capacity, with the automobile industry having declined by 40 percent. According to Paolazzi, Italy is experiencing an “unprecedented process of deindustrialization.”

But why?  Wages aren’t the problem. They are 15 percent lower than Belgian and French wages and 30 percent lower than wages in Germany, according to a current Bank of Italy comparison. But according to Confindustria, the Italian economy faces a tax burden that is 20 percent higher than in Germany. And unit labor costs are about 30 percent higher than German levels, say central bank officials.

The CGIA research institute in Mestre, near Venice, found that one in two small businesses was only able to pay its employees in installments. Three out of five companies are forced to take out loans to pay their high tax bills.

In addition to the tax burden, a bloated bureaucracy obstructs almost all economic activity, an inefficient judiciary deters potential investors with trials that can last for decades. Italy has a relatively low education level and a poor infrastructure characterized by potholed streets, an energy supply prone to failure, constantly delayed trains and outmoded communication networks.

As a result, Italy continues to fall behind internationally as a place to invest. It is now 44th in the World Competitiveness Center (WCC) ranking, below the Philippines, Latvia, Russia and Peru, and only slightly above Spain and Portugal.

Populists like Berlusconi and the founder of the “Five Star” protest movement, Beppe Grillo, are not the only ones advocating the most radical of all solutions for Italy’s problems. The country has “a lot of vitality and great potential,” says US economist and policy advisor Allen Sinai, but it can only benefit from these strengths “by withdrawing from the euro.”

Structural problems.  The Euro is clearly a problem, but leaving the Euro without fixing the other structural problems will not fix anything.

Letta declares war on tax evasion.  The Telegraph reports Italian Prime Minister Enrico Letta pledges war on tax evasion Italian prime minister Enrico Letta pledged Wednesday to “fight relentlessly” against tax evasion in the recession-hit country, as the government pushed new growth measures through the lower house of parliament. Letta blamed Italy’s underground economy – which ranges from simple tax evasion to organised crime and accounts for some 25 percent of the overall economy according to most studies – for damaging competitiveness.

Reflections on Italy’s Shadow Economy.  Letta has things ass backwards. Tax evasion and the underground economy is not destroying Italy. Rather, Italy’s massive underground economy is a symptom of the dysfunctional nature of the real economy. The underground economy thrives because of high taxes, poor infrastructure, political favoritism, and inane labor rules. A crackdown on tax evasion (a symptom of the problem, not the problem) will only make matters worse.

Only hope is bankruptcy.  For more on Italy, please note the opinion of Enrico Colombatto, Professor of Economics at the University of Turin who says “Only hope for Italy is bankruptcy”.

I comment that to say Italy’s only hope is bankruptcy, implies the idea of default on Italy’s national debt, and a day of human action where a movement of people will endorse a credible sovereign government providing a national currency, for example a New Lira, backed by a sound money system, underwritten by gold not debt.  As Frederic Bastiat proposed, the government’s function would be restricted to protecting the lives, liberties and property of citizens from theft or aggression.  And the government’s function would be the establishment of a free market economy along the lines presented by Ludwig von Mises and the Mises Institute, where those producing things and providing services, would be free from government intervention of national wage laws and other anti-competitive measures; the nation’s economy would be based purely upon meritocracy and be devoid of clientelsim and any social justice dependency.  Yet there is no Murry Rothbard movement afoot in Italy or any of the periphery European nations for people to take action to remold economic circumstances and reshape their society for reward of individual merit and use of personal property.  

The yenguy is a Dispensational Economist who believes that the business cycle, a central bank driven phenomenon, is the mature working of the Apostle Paul’s New Testament doctrine of Dispensation found in Ephesians 1:10, and Bible prophecy presented by the Prophet Daniel in Daniel 2:25 (Regional Governance), and John The Revelator in Revelation 13:1-4 (a global Beast regime), Revelation 13:5-10 (a New Pharaoh), and Revelation 13:11-18 (a New Prophet). I present the Dispensation Economics Manifest which holds that economics currently in Europe and increasingly throughout the world, is being shaped by the New Things of Christ, these include:

a New Paradigm, movement from liberalism to authoritarianism, Ephesians 1:10.    

a New Sovereignty, movement from the Milton Friedman Free to Choose floating currency Banker Regime of democratic nation states, to the Nannycrat Diktat Beast Regime of statist regional governance, Revelation 13:1-4, where eventually there will be ten regional kings ruling in the world’s ten regions, Revelation 17:12.

New Dynamos, movement from the dynamos of corporate profit and global growth based upon investment opportunities in nation states, to the dynamos of regional security, stability and sustainability.

a New Age, movement from the age of investment choice, to the age of diktat.

New Policies and New Schemes, movement from a policy of investment choice, consisting of credit schemes, to a policy of diktat, consisting of debt servitude schemes.  Gone are the days when liberalism’s bankers, corporations, government, entrepreneurs, and citizens of democracies were the legislators of economic value and the legislators of economic life.  Economic and political movement under Authoritarianism is based upon debt servitude which provides for punitive collectivism and crushing austerity.

a New Money System, movement from the fiat money system, to the diktat money system.

2) This week’s financial market trading

On Monday, July 29, 2013, Volatility, ^VIX, rose, and World Stocks, VT, the S&P 500, SPY, Nation Investment, EFA, SmallCap Nation Investment, IFSM, traded lower in fron of the Fed FOMC meeting.

Jesus Christ, acting at the helm of the economy of God, that is in dispensation, as presented in Ephesians 1:10, enable the vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.59%, and by enabling the currency traders to successfully sell major world currencies shor.

There was a massive deleveraging out of Natural Gas, UNG, today, all of this activity on the investors concern of Federal Reserve tapering, and the termination of its stimulus.

Reuters reports Japan June industrial output falls 3.3 pct mth/mth. The Nikkei, NKY, traded strongly lower again on another rise in the Japanese Yen, FXY, with its leading stocks, ATE, KUBTY, KYO, MKTAY, IX, MTU, SMFG, and NMR, all trading lower, as is seen in their combined ongoing Yahoo Finance Chart, documenting the failure of Kuroda Abenomics.  Google Finance chart shows The Nikkei, NKY, is leading the way lower, having fallen 8% since July 19, 2013. Japanese Automobile Manufacturers, TTM, NSANY, and HMC, are trading lower.  

Asia Excluding Japan, EPP, was led lower by countries outside of China, such as Australia, EWA, Thailand, THD, Vietnam, VNM, Indonesia, IDX, IDXJ, Malayasia, EWM, and the Philippines. EPHE.

Benson te writes China’s runaway credit financed property bubble will undergo scrutiny from Chinese national government, who will focus on reining debt levels of the local government; that’s according to the Bloomberg report China orders government debt audit as growth risks rise. China will start a nationwide audit of government debt this week as the new Communist Party leadership investigates the threats to growth and the financial system from a record credit boom. But so far this has failed to show up in a downturn in China Stocks, as they are rallying; these include China Shares, YAO, FXI, CHII, CHIX, ECNS, and TAO.

Brazil, EWZ, EWZS, and India, INP, SCIN, traded lower.  And Chile, ECH, and Peru, EPU, traded lower, on lower Copper Miners, COPX.

Debt deflation recommenced in the the Emerging Market Financials, EMFN, specifically Brazil Financials, and India Earnings, EPI; the Emerging Markets, EEM, traded lower as Emerging Market Bonds, EMB, and Emerging Market Currencies, CEW, traded lower. Reuters reports Latam stocks wilt ahead of Fed meeting.

Small Cap Pure Value Stocks, RZV, traded lower on today’s trade lower in Major World Currencies, DBV, and the trade higher in the Japanese Yen, FXY, as well as the rise in the Interest Rate on the US Ten Year Note, ^TNX, to 2.59%.

On Tuesday, July 30, 2013, The Interest Rate on the US Ten Year Note, ^TNX, rose to 2.60%, and the Steepner ETF, STPP, steepened, reflecting a steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX.  The US Dollar, $USD, UUP, traded unchanged from yesterday at $81.81, as the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, traded lower, with the Indian Rupe, ICN, the Brazilian Real, BZF, and the Australian Dollar, FXA, trading strongly lower, taking India, INP, SCIN, India Earnings, EPI, Brazil, EWZ, EWZS, Brazil Financials, BRAF, and Australia, EWA, KROO, and Australian Dividends, AUSE, lower.  Business Inside reports India is currently caught in a classic Impossible Trinity Trilemma, Reserve Bank of India Says. Chile, ECH, Peru, EPU, Israel, EIS, and Egypt, EGPT, traded  lower.

India, Brazil, Australia, Chile and Peru are Nation Investment, EFA, loss leaders, as is seen in their ongoing combined Yahoo Finance Chart.  The rise in the Interest Rate on the US Ten Year Note, ^TNX, on May 1, 2013, on fears that the Fed Reserve monetary policy is unable to continue to stimulate global growth and trade, was Liberalism’s “extinction event”, which terminated investment choice in the Emerging Markets and Australia.

Copper Miners, COPX,  Coal Miners, KOL, and Global Industrial Miners, PICK, traded lower on a plummeting price of Copper, JJC, and Base Metals, DBB.  Health Care Providers, IHF, traded lower. Agribusiness MOO, plummeted on a continuing lower price of Agricultural Commodities, RJA, and as Briefing.com reports the largest potash producer, Russia’s OAO Uralkali, withdrew from a potash cartel; Potash companies traded lower: IPI -28%, POT, -17%, MOS, -17%; related company, Chile’s SQM, traded 17% lower as well.  

And of note, Semiconductor Equipment And Material Provider, AMBA, fell 8%, after the Semiconductor Equipment and Material Providers, seen in this Finviz Screener, also broke down and traded lower lower as a group yesterday. Carl Cachia in Seeking Alpha article, relates AMBA has been moving strongly higher since May 2010,  AMBA makes chips for smaller video cameras that are easy to use and offer high-definition video. The company can be described as a video processing specialist including software to enable portable camera innovations. AMBA’s high definition video focused products offer superior performance giving it a leading share in the space. The company sells chips to a number of different companies. This diversified market coupled with the diversified customer base makes AMBA an exciting play into 2013 and 2014.

The Small Cap Pure Value Shares, RZV, have been a safe haven investment from derisking out of Interest Rate Sensitive Sectors, Homebuilding, ITB, Coal, KOL, Industrial Mining, PICK, Copper Mining, COPX, and Emerging market Financials, EMFN, Small Cap Real Estate, ROOF, Mortgage REITS, REM, Industrial Office REITS, FNIO, and Residential REITS, REZ.

 

Discover The Book Ministries writes Prophetic map from Genesis to Revelation. The Lord has claimed that He alone can declare the future. “I am God, and there is none like me, declaring the end from the beginning, and from ancient times the things that are not yet done”, Isaiah 46:9-10. “We have also a more sure word of prophecy; whereunto ye do well that ye take heed”, 2 Peter 1:19.

Genesis and Revelation form the greatest testimony to the Sovereign hand of God in the entire Bible. Taken apart they give the clearest pictures possible of the beginning and ending of planet earth. Taken together, they form the greatest map of God’s Plan unfolding in this universe.

One of the strong evidences of divine inspiration of the Bible (not found in other religious books of either past or present) consists of its hundreds of fulfilled prophecies. These are not vague or ambiguous (as in various occult writings) but are specific and detailed, often made hundreds or thousands of years in advance of the event. Many are being fulfilled today, thereby indicating the probable soon return of the Lord Jesus Christ.

So, the most powerful evidence that God wrote the Bible is the phenomenon of fulfilled prophecy. The Bible is unique among all the religious books of mankind in this respect. Some of them contain a few vague forecasts, but nothing comparable to the vast number of specific prophecies found in the Bible.

There has never been any person, angel or demon who could predict specific events and personages that will appear scores or even hundreds of years in the future. Only God can do this, because it is He “who worketh all things after the counsel of His own will” (Ephesians 1:11). Consequently, it is in His Word, the Holy Scriptures, and only there, that prophecies of this sort are found.

The development of a European union of nations comparable to the ancient Roman empire is suggested in Daniel 7:19-24 and other passages.

Conflict in the economic and social realms in the last days is forecast in James 5:1-6. For ages, in all nations, the poor have been exploited by the rich, the working classes by the privileged classes. The uprising of the laborers in the latter days, leading to a “day of slaughter,” is not only specifically predicted by James, but also implied in Daniel 2:41-43, Revelation 18:1-19, and other passages. These prophecies have been fulfilled in part, first in the French revolution, later in the Russian revolution and other communist-led upheavals. More is undoubtedly yet to come, especially when the ill-fed, poorly housed masses of the world come to realize that even their own revolutionary movements are financed and controlled in large measure by those “kings and merchants of the earth” who traffic in the “souls of men.”

Moral conditions of the last days are prophesied to descend into the degradation of the “days of Noah” Luke 17:26. But perhaps the most striking prediction associated with moral conditions in the last days is that the characteristics of professing religious people, in the realm of Christendom, will be essentially the same as those of the heathen in the old pagan world. That is, the catalog of the sins of those in the last days who have “a form of godliness”, 2 Timothy 3:1-7, especially verse 5, is practically identical with that of the ancient godless rebels of Romans 1:28-31. Again, it seems impossible that Paul could have anticipated such a strange and sad development except by inspiration.

Murray Rothbard in his book Education: Free and Compulsory which reflects the rise of the state’s power in masterminding one’s virtues and one’s ethics.  “The record of the development of compulsory education is a record of State usurpation of parental control over children on behalf of its own; an imposition of uniformity and equality to repress individual growth; and the development of techniques to hinder the growth of reasoning power and independent thought among the children.”

Christian households are to be patterned after Christ, who as presented in Ephesians 1:10, is the steward dispensing all things to all people; mercy and grace to the faithful, and judgement and advertsity to the disobedient; a family is to have a head, it’s called the head of the household, which dispenses training in virtue and ethics, with virtue patterned after Christ and ethics set forth as righteous conduct and speech.     

An inquring mind asks, what makes for the variability in the moral quotient, that is, the moral reasoning and lifestyle amongst people?  

First, the role of faith, as the Worl preached did not profit them; one’s response to the Word of God, determines the effect and impact that Word has upon one, “Therefore, since a promise remains of entering His rest, let us fear lest any of you seem to have come short of it. For indeed the Gospel was preached to us as well as to them; but the word which they heard did not profit them, not being mixed with faith in those who heard it”, Hebrews 4:1-2.  

And secondly, some have greater receptiveness to the move of the Spirit in one’s vessel, and thus greater functioning of the Spirit in one’s life; it is God’s Sovereign Will, and its movement in one’s life, that alone determines the manifestation of the Spirit, “But one and the same Spirit works all these things, distributing to each one individually as He wills”, 1 Corinthians 12:11.    

 

Policies and schemes of the Banker regime made the US Dollar Hegemonic Empire, that is the US a great nation as foretold in bible prophecy of Genesis 12:2-3, and a iron empire, foretold in Daniel 2:25-45.  Beginning with Ben Bernanke’s QE, the last five years of Liberalism was a time of moral hazard based prosperity that came via the Global ZIRP monetary policies of the world central banks that produced great stock investment wealth, in risk on investment, ONN, Junk Bond, JNK, and Euro Yen, EUR/JPY, based schemes.

But now, Jesus Christ operating at the helm of the economy of God, Ephesians 1:10, specifically in dispensation, that is in the household administration of all things, including those things economic, monetary and political, as well as spiritual and material, through the rise in the US Interest Rate, ^TNX, on May 21, 2013, and the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, to begin to terminate Liberalism, and is introducing Authoritarianism, thereby bringing an end to the age of investment choice and introducing the age of diktat, which will be a time of debt servitude based austerity.

The fall lower in the India Rupe, ICN, the Brazilian Real, BZF, the Australian Dollar, FXA, and the Emerging Market Currences, CEW, through debt deflation, coming through debt monetization,  are literaly destroying banking institutions worldwide, these include Brazil’s BBD, BBDO, ITUB, Chile’s, BCA, BCH, Peru’s BAP, India’s IBN, HDB, and Argentina’s BFR, GGAL, BMA.

Brazil Financials, BRAF, and India Earnings, EPI, are leading the Emerging Market Financials, EMFN, lower.  Chile’s SQM, and Peru’s SCCO  are leading the Emerging Market Mining, EMMT, lower.  Liberalism’s credit schemes of Debt Monetizaton and Dollarization have caused the death of investment in the Emerging Markets, EEM, and Emerging Market Infrastructure, and have caused strong deleveraging out of Commodities such as Copper, JJC. .

Furthermore, Jesus Christ as foretold by John The Revelator, in Revelation 13:1-4, is introducing the Beast Regime of regional governance, through sovereign insolvency and banking insolvency of the southern Eurozone nations, such as Greece, where its ten horns, symbolizing the world’s ten regional zones, and totalitarian collectivism, where its seven heads, symbolizing mankind’s seven institutions, will rule in all mankind’s activities; there will be no human action as perceived by the Austrian economists, only Christ allowed Beast action for all people.  Greek Crisis Net reports The International Monetary Fund, IMF, in Press Release No. 13/280  IMF completes fourth review under extended fund facility arrangement for Greece, and approves €1.72 billion disbursement.  Look for the Beast Regime’s schemes of debt servitude, like Greek Bailout III, and the Cyprus Bank Deposit Bailin to increasingly govern economic matters.

In today’s news we see announcements of boondoggles at the end of the age of fiat wealth expansion that has come from US central bank expansionism.  Ralph Schwartz of the Bellingham Herald reports Long-planned Bellingham condominium project gets green light.  Developers are moving ahead with a 344-unit condominium development on June Road that has been in the works for 20 years. Public comment is now being taken for the design review of Phase 1, 75 detached, single family condominiums north of June Road. If the Aldrich and June Road improvements aren’t done by the end of the year, the developers lose all permits to develop the land. The developers’ Bellingham attorney, Chet Lackey, said these conditions were the strictest he had ever seen in a development agreement.

Lackey also told the City Council on May 20 that the condominium subdivisions, first approved by Whatcom County under a different plan in 1994, would get built. The developers had invested $12 million in property purchases and construction of roads, and sewer and water lines, he said.

The council approved the settlement in a 6 to 1 vote, with Jack Weiss opposed.  He wasn’t the only council member who expressed regret over green-lighting the subdivisions. The county approved the current plan in 2000 under less strict rules.  The properties were in county jurisdiction until they were annexed into the city in 2008.  The developers were not required to meet stricter city requirements for wetland protection or street width after annexation.  We have inherited a very bad situation,” council member Michael Lilliquist said. “We would never approve anything like this nowadays.”

And Erin Mulvaney of the Houston Chronicle reports High-rise condo project planned in Galleria area. A high-rise luxury condominium project planned in uptown Houston could be a sign of a more viable market than in previous years. The 26-story Belfiore will have 46 residences, including two penthouses, on 2 acres at the southeast corner of Post Oak Lane and South Wynden Drive. The project is led by developer Giorgio Borlenghi with the Interfin Cos., who has developed high-rise residential buildings since the early 1980s, including Four Leaf Towers, Villa d’Este Condominium and Montebello. Borlenghi said the new condo tower will be the “most luxurious place in town.”

“By keeping the building to only 46 units on such a large site, we will truly be able to provide our residents with a level of privacy, exclusivity and service unlike any other property in Houston,” he said. The units will be the largest available for condominiums in Houston, starting at 4,600 square feet, including 700 square feet of terraces, the developer said. The spaces will have 11-foot-high ceilings and views of downtown and Tanglewood. The property will feature a 24-hour manned guardhouse, a 24-hour concierge and valet service and underground parking. There also will be a recreational outdoor area with a swimming pool and manicured garden. Construction is expected to begin early next year with a targeted completion for the spring of 2016. The units are expected to have a starting sales price of $600 per square foot, or about $2.8 million. Borlenghi is partnering with Pierpoint Capital, the McNair Group and Hudson Brothers Real Estate for the project.

And Drew Harwell  of the Tampa Bay Times resorts Developer plans condo project in downtown St. Petersburg A new 26-story condominum project, the Belfiore, is planned on a two-acre lot in uptown on Post Oak and Wynden Drive. Borlenghi said this is a good time to build condominiums because of the improved economy and a demand from empty nesters who want to downsize, but only to a certain point. He said 14 people have already purchased units. “The recent demand and real estate market is on the upswing,” he said. John Breeding, president of the Uptown Management District, said 12 residential projects are under construction in the immediate area. Borlenghi’s new project is encouraging for a condominium market that seems to be improving, Breeding said. During the downturn, condo development suffered because of difficulties in other parts of the country, like Florida, Nevada and California, he said. Breeding praised Borlenghi for quality architecture and attention to detail. He said the developer also has a unique sense of when to move early on projects.  The Belfiore will feature a 24-hour manned guardhouse and a 24-hour concierge and valet service. Its developer says it will be the “most luxurious place in town.” “This is the first edge of the wave of perhaps additional condominium construction,” Breeding said. The development of a 262-unit apartment complex at 1900 Yorktown, the former home of the Art Institute, was announced earlier this week. And developer Randall Davis earlier this year completed a long-planned land purchase on Post Oak Boulevard, a significant step toward his goal of building a high-end residential tower there. He’s planning 70 condominiums in a 28-story building called Astoria.

And we also have the Dave Gallegher Bellingha Herals report Carpet Liquidators moving into former Good Guys building. I comment that Liberalism’s final credit driven crack up boom has brought yet another home improvement retailer to Bellingham.   

On Wednesday, July 31, 2013, at opening the Interest Rate on the US Ten Year Note, ^TNX, blasted higher, but closed lower at 2.59%, sending Aggregate Credit, AGG, vigorously down then up, only to recover unchanged. Emerging Market Bonds, EMB, plummeted once again.

Yield bearing sectors traded lower, with Premium REITS, KBWY, -1.8%, REZ -1.4%, ROOF, -0.5, REM, -1.0%, FNIO, -1.5. Asia Excluding Japan, EPP, trade lower as EWM, IDX, EPHE, THD, EWA, and ENZL, traded lower.

Emerging Markets, EEM, such as Turkey, TUR, India, INP, Brazil, EWZ, and Peru, EPU,traded lower.

Norway, NORW, traded higher on a higher price of oil.  

Transports, XTN, and Industrials, XLI, Global Industrial Producers, FXR, and the Eurozone, EZU, closed higher on the day, as the EUR/JPY rose from 130.0 to 130.2.  

Global Industrial Producers, FXR, rose to a new high as ARG, PHG, WHR, ROK, ETN, SI, PPG, MMM, DD, EMN, FMC, WLK, DOW, IP, MHK, ALU, CNH, COV, ST, ASML, ADI, XLNX, GPK, PKG, FMC, EMR, MMM, LMT, GT, RTN, HON, GGG, PH, PCP, BA, MU, PHG, all made new highs, or rose near recent highs  

Martin Crutsinger of AP reports Fed downgrades US economic growth to modest. The Federal Reserve says the U.S. economy is growing modestly, a downgrade from its June assessment. The Fed expects growth will pick up in the second half of the year, but the more cautious message may signal it’s not ready to slow its bond purchases soon. In a statement after a two-day policy meeting, the Fed says it will keep buying $85 billion a month in bonds to help lower long-term interest rates. And it says it plans to hold its key short term rate at a record low near zero at least as long as the unemployment rate stays above 6.5 percent and the inflation outlook remains mild. Stronger job growth has fueled speculation that the Fed could start reducing its purchases soon. But the economic growth remains sluggish and unemployment high at 7.6 percent.

John Rubino writes Why QE can never end.  The Fed just made an announcement that the markets liked with Reuters reporting Fed stays on track with bond buying, for now. Why the cautious tone when just a few months ago “tapering” was a sure thing by yearend? Because this morning’s GDP report was, as usual, much weaker than it looked. Here’s a quick summary from Consumer Metrics Institute. Even if we accept all the fluff in today’s numbers, a chart of recent GDP growth shows a hard stall, not a take-off. The Fed knows all this and has now completely walked back its talk of lowering its asset purchases. QE will go on until the market, not government, puts a stop to it.

Cullen Roche of Pragmatic Capitalist communicates that The build up margin debt in the US stock markets has been pumping stocks higher and replicates the 2000 and 2007 market booms.  

I relate that Jesus Christ operating at the helm of the economy of God, Ephesians, 1:10, specifically in dispensation, that is in the household administration of all things, including those things economic, monetary and political, as well as spiritual and material, through the rise in the US Interest Rate, ^TNX, on May 21, 2013, and the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, is in the process of terminating Liberalism and is introducing Authoritarianism, and will soon be turning risk on investment, ONN, to risk off investment, OFF, thereby ending Liberalism’s age of investment choice and introducing Authoritarianism’s age of diktat, which will be a time of debt servitude based austerity.

Soon, possibly this week, Christ will once again empower the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher, as well as enabling them to continue to steepen the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening;  and He will recommence global debt deflation, by empowering the currency traders to sell the Major World Currencies, DBV, and the Emergning Market Currencies, and eventually the US Dollar, short.

Therefore, I recommend that one either take physical possession of gold bullion or that one be ready to go short the Sectors XIV, TAN, IBB, PJP, FDN, KCE, FPX, PPA, IGV, PSCI, XRT, RXI, PBS, CARZ, RZV, PSP, SPHB, FLM, IAI, UJB, SMH, seen in this Finviz Screenerthis Finviz Screener… These performed as follows during July 2013 … XIV 35%, TAN 21%, IBB 14%, PJP 10%, FDN 9%, KCE 9%, FPX 9%, PPA 8%, IGV 8%, PSCI 8%, XRT 7%, RXI 6%, PBS 6%, CARZ 6%, RZV 6%, PSP 6%, SPHB 5%, FLM 5%, IAI 5%, UJB 5%, SMH 2%.

Clearly Jesus Christ, as foretold by John The Revelator, in Revelation 13:1-4, is introducing the Beast Regime of regional governance, through sovereign insolvency and banking insolvency of the southern Eurozone nations, such as Greece, where its ten horns, symbolizing the world’s ten regional zones, and totalitarian collectivism, where its seven heads, symbolizing mankind’s seven institutions, will rule in all mankind’s activities; there will be no human action as perceived by the Austrian economists, only Christ allowed Beast action for all people. The New York Times reports The Greek Bailout isn’t working  … CNN Money reports The Greek bailout has 11 billion euro funding gap … The Telegraph reports Eurozone faces £9.6bn hole in Greek finances, warns IMF … Bloomberg reports IMF staff says Greece needs more money, potential debt relief … WSJ reports Greece is warned of new aid gap.  Look for the Beast Regime’s schemes of debt servitude, like Greek Bailout III, and the Cyprus Bank Deposit Bailin to increasingly govern economic matters, both in the EU and globally.

Herbert W Armstrong was born a 130 years ago, that is on July 31, 1892.  As a teen I remember watching the televangelist on his TV show The World Tomorrow, proclaiming that one day there would be a United States of Europe. That day is coming very soon, as out of Eurozone sovereign insolvency and banking insolvency, leaders will meet in summits and workgroups to renounce national sovereignty, and announce pooled regional sovereignty, thereby establishing a One Euro Govenment, that is a European Superstate.  

World Watch Today writes In the 1930s Herbert W. Armstrong peered into the pages of his Bible and discovered a shocking prophecy. A political and military power, made up of a confederation of European nations, would one day arise to dominate the world prior to the return of Jesus Christ. What would Herbert Armstrong say today if he saw the forces at work in this global financial crisis pushing Europe towards greater unity, and leaders such as Verhofstadt standing up to now declare that the time has come for the United States of Europe? We can’t know for sure, but his legacy of television shows and writings gives a fair idea. Below is a full-length episode of the World Tomorrow (circa. 1984), the show he anchored for over forty years, dedicated to explaining the prophetic implications of the rise of the United States of Europe.  

The Trumpet Magazine, and its columnists, such as Gerald Flury, publishes in the footsteps of the Plain Truth Magazine, founded in 1934 by Herbert W. Armstrong, and publishes a number of books for one’s edification, such as Germany and The Holy Roman Empire,The United States And Britain In Prophecy, … The Wonderful World Tomorrow

On Thursday, August 1, 2013  Volatility, ^VIX, collapsed, and Inverse Volatility, XIV, soared, as stocks soared.  China, YAO, 2.8, US Stocks, VTI, 1.3  Eurozone, EZU 1.5, World Stocks, VT 1.3, Emerging Markets, EEM 1.8, Asia Excluding Japan, EPP 0.7, as on the other hand, Aggregate Credit, AGG, fell sharply lower, as the Interest Rate on the US Ten Year Note, ^TNX, blasted higher to 2.72%, and as the 10 30 US Treasury Debt Yield Curve, $TNX:$TYX, steepened, as is seen in the Steepner ETF, STPP, steepening.  

It was the conviction of further debt monetization, specifically anticipation of further Federal Reserve purchases of debt that blasted World Stocks, VT, higher; but on the other hand, destroyed Aggregate Credit, AGG, with the rise of the Interest Rate on the US Ten Year Note, to 2.01%, on May 21, 2013. A see saw destruction of fiat wealth is underway with stocks reaching their zenith, while credit and currencies are being destroyed through the monetization of debt.

Yahoo Finance posts S&P 500 breaks 1,700 for the first time. 1,750 Soon to Come?  Daily Ticker The S&P 500 crossed 1,700 Thursday morning for the first time ever. This is the kind of rally that may give some investors pause. We talked to Savita Subramanian, the head of U.S. equity strategy at Bank of America Merrill Lynch, who thinks the market will go higher from here. But Breakout posts Market top is in, brace for correction: Jeff Saut says

Inverse Volatility XIV rose 3.3%;sectors rising strongly included

Global Industrial Producers, FXR 2.3

US Infrastructure, PKB 1.9

Design Build, FLM 1.9

Transportation, XTN 1.9  

Internet Retail, FDN 1.9

Media, PBS 1.9

Global Consumer Discretionary, RXI 1.8

Retail, XRT 1.6,

Aerospace, PPA 1.6

Automobiles, CARZ 1.5,

Pharmaceuicals, PJP 1.5

Software, IGV 1.5

Small Cap Industrials, PSCI 1.3,

IPOs, FPX 1.4,

Biotechnology, IBB 1.4

Small Cap Pure Value, RZV 1.3,

Consumer Services, IYC 1.3,  

Life Insurance Companies, seen in this Finviz Screener, 2.1

Automobile Dealerships,  seen in this Finviz Screener, 1.8

Credit Services, seen in this Finviz Screener, 1.7%

Education Services, seen in this Finviz Screener, 1.5

High Performance Utilities, such as MDU, seen in this Finviz Screener, 1.0

Vice Stocks, traded by the Mutual Fund VICEX, closed at 25.85, just shy of its May 20, 2013, high.

Financial Sectors rising included

The Too Big To Fal Banks, RWW 2.3

Far East Financials, FEFN 2.2, such as SHG, IX, SMFG, and NMR

Investment Bankers, KCE 2.2, such as JPM

Regional Banks, KRE  2.1

Stock Brokers, IAI 2.0, such as ITG

Chines Financials, CHIX 2.0, such as SHG

World Financials, IXG 1.9, led by LYG 8.4

Emerging Market Financials, EMFN 1.6

European Financials, EUFN 1.1, such as IRE

Energy sectors rose strongly on a blast higher in the price of oil, USO.   

Energy Production, XOP 2.3

Small Cap Energy, PSCE 1.6

Energy Service, IEZ 1.8 and OIH 1.6

Yield bearing equity sectors rising included

China Real Estate, TAO 2.1

Telecom, IST 1.7

Shipping, SEA 1.1

Countries rising included

The Nikkei, NKY 3.2

Mexico, EWW 2.9

China, YAO 2.1, ECNS 2.0, CHII 1.5,

The Philippine, EPHE 2.0  

Thailad, THD 1.7

Germany, EWG 1.5

Netherlands, EWN 1.3

Ireland, EIRL 1.0

The terrific leverage of the stock market, which has come through trading on margin credit, is seen in both the ratio of Junk Bonds, JNK, relative to US 10 Year Notes, TLT, JNK:TLT, and in World Stocks, VT, relative to Aggregagte Credit, AGG, VT:AGG, rising to an all time high.

On Thursday August 1, 2013, Jesus Christ, operating at the helm of the Economy of God, is working to pivot the world out of Liberalism’s age of investment choice and into Authoritarianism’s age of diktat.

He is working to put Liberalism’s Dollar Hegemonic Banker Regime in the grave. The monetary authority of the Creature From Jekyll Island is coming to an end, as US Stocks, VTI, traded higher to their zenith.  Inflationism is reaching its end. And destructionism will be commencing, and no world banker can stop it, as God’s Son, is empowering the Beast Regime of Regional Governance and Totalitarian Collectivism, to rise from the sovereign insolvency and banking insolvency of the southern European nations, in particular Portugal, Italy, Greece, and Spain, as foretold in Bible prophecy of Revelation 13:1-4.         

Benson te writes From 1995-2008, Greece had a series of upgrades and positive watches, in both the long and short term of foreign and local currency ratings. The Fitch began a string of downgrades on Greece only when the country’s debt crisis imploded in 2009 [13]. Today Greece has been rated junk “substantial credit risk [14]”, four years after the unresolved crisis. The successions of credit upgrades basically helped motivate the Greek government to indulge in a borrowing spree which eventually unraveled.

I add that the acceptance of Greece into the Euro Common Currency Union was a banker driven  phenomenon, where those in the know, bought Greek Treasury Debt as its Interest Rate fell lower on credit upgrades, thus making great gains; and then started to sell Greek Treasury Debt short, beginning in 2009 as downgrades loomed, making money as the value of the debt fell lower.  

It is only through three successive bailouts and debt write offs, all prohibited by the Maastricht Treaty that Greece has money for its fiscal spending needs, provided for by the Troika. Despite this seigniorage aid, the WSJ reports in article Greek aid slice gets green light from Euro Zone that Greek Treasury Debt has risen from a recent low of 140% to 160% of gross domestic product. Greece stnds as a stunning example of clientelis, that is what the Economist Magazine terms pork and patronage, where most all of those working are employees of the Hellenic Republic. And of note, Stefan Setinberg of WSWS reports Euro zone debt burden continues to rise Figures from the Eurostat statistics agency show that the debt burden across the euro zone continues to rise after three years of austerity.

The introduction of the Euro in 1999 was one of Lilberalism’s policies of ever increasing investment choice which underwrote schemes of credit and carry trade investing, with the greatest of these being the Euro Yen currency carry trade. The EUR/JPY is reaching its zenith and will soon commence an unwinding of carry trade investment in the Eurozone ADRs, seen in this Finviz Screener.

The credit expansionary monetary policies of the world central banks is about to cross the Rubicon of sound monetary policy, and turned “money good” stock investments bad. Clearly bond vigilantes are able to call interest rates higher globally and force a steepening of yield curves, seen in the chart of the Steepener ETF, STPP, steepening, and currency traders are increasingly able to sell currencies short. Stocks will be turning parabolically lower soon.

Credit, that is trust in Liberalism’s leaders is beginning to fail.  The days when liberalism’s governments, bankers, corporations, entrepreneurs, and citizens of democracies are the legislators of economic value and the legislators of economic life, will soon be over.

Soon conomic and political movement under Authoritarianism will be based upon policies of diktat and schemes of debt servitude, which will provide for punitive collectivism and crushing austerity, with the nation of Greece leading the way forward, very much a fulfillment of Bible Prophecy of Revelation 13:1-4, where the Beast Regime of Regioanl Governance and Debt Servitude  is prophesied to rise out waves of economic and political crisis in the Mediterranean Sea nationos of Portugal, Italy, Greece and Spain, that is out of the profligacy of the PIGS.  

Of note, Spain, EWP, its Utility IBDRY, Italy, EWI, Germany, EWG, France, EWQ, the Netherlands, EWN, the Eurozone, EZU, and European Financials, EUFN, traded to their likely zenith higher Thursday August 1, 2013, on a rise in the master carry trade, that is the EURJPY, as is seen in its three month combined ongoing three month Yahoo Finance chart, on an enduring carry trade rally.

Out of Eurozone, sovereign and banking insolvency, a European Super State, that is a one Euro Government will form, as leaders meet in summits establshing regional framework agreements which  which renounce national sovereignty and announce pooled regional sovereignty.  A precursor of such a regional authoritarian government comes from the Chris Marsden WSWS report, European Union seeks drone and spy satellite network. The European Union has proposed the creation of what amounts to a pan-European equivalent to the National Security Agency, armed with a European drone programme and a spy satellite network.

Of note, Iridium Communications, IRDM, fell 17% lower. Iridium NEXT, is the embodiment of Iridium’s bold vision for the future of global communications. Iridium NEXT is a fast-approaching, game-changing reality that will dramatically enhance Iridium’s ability to meet rapidly expanding demand for truly global mobile communications on land, at sea, and in the skies. Anticipated to begin launching in 2015, Iridium NEXT will recreate the existing Iridium constellation architecture of 66 cross-linked low-Earth orbiting (LEO) satellites covering 100 percent of the globe. Iridium NEXT will substantially enhance and extend Iridium mobile communications services,

Gold Miners, GDX, GDXJ, and Silver Miners, SIL, SILJ, traded lower.

On Friday, Auguest 2, 2013, Volatility, ^VIX, plummeted as Biefing.com reports that the major averages began today’s session in the red after the July nonfarm payrolls report missed expectations, but have managed to trim most of their losses as action holds little changed.

Nonfarm payrolls added 162,000 jobs in July after adding a downwardly revised 188,000 (from 195,000) in June. The Briefing.com consensus expected 175,000 new payrolls. The report proved to be a disappointment as not only did payroll growth come in below expectations, but the average workweek dropped to 34.4 hours from 34.5 and average hourly earnings declined 0.1%.

Altogether, aggregate wages fell 0.3%, which will put substantial downside pressure on retail sales growth. Meanwhile, the unemployment rate dropped to 7.4% in July from 7.6% in June. The consensus expected the unemployment rate to fall to 7.5%. However, the labor participation rate fell to 63.4% from 63.5% in June, causing about a half of the decline in the unemployment rate.

Although stocks slipped in reaction to the data, participants fall back on the Federal Reserve’s pledge to provide support to the markets for as long as economic data continues to paint a lukewarm picture.

Treasuries responded to the data by jumping to their highest level of the day. The benchmark 10-yr yield, ^TNX, is lower by nine basis points at 2.62%, erasing almost the entire spike from yesterday.

Sectors trading higher on the day included Homebuilding, ITB, US Infrastructure, PKB, China Industrials, CHII.

The Nikkei, NKY, Switzerland, EWL, Poland, EPOL, Ireland, EIRL, and Argentina, ARGT, continued higher, today, while the Philippines, EPHE, and Thailand, THD, traded lower.    

Of note it has been Brazil, EWZ, Chile, ECH, and Peru, EPU, that have been the Emerging Market loss leaders as is seen in their ongoing Yahoo combined chart with the Andean 40 ETF, AND.

MarketWatch reports U.S. home prices jump; Dallas, Denver at record

Townhall.com relates Five ways liberalism destroyed Detroit.

3) In news of the Surveillance State

CNet reports FBI Pressures ISPs to install survellance software

Deutsche Welle reports XKeyscore a God Terminal into the Internet

4)  In libertarian news

Arnold King is Ask Blog, author of The Three Languages of Politics which presents a three axis model of analysis, that being conservatism, liberalism, and progressivism, writes I am reading The Servile Mind, by Kenneth Minogue, which takes the opposite point of view. Minogue argues that the welfare state substitutes political agency for moral agency. As citizens, we lose our moral compass and instead pick up a political one. I find the book rather heavy going, but I probably will review it somewhere down the road. If you are looking for someone who concedes nothing to the oppressor-oppressed axis and instead views it as undermining Western values completely, then Minogue is your champion.

And Arnold King in Ask Blog questions Why do we have three axes that we have and why do some people adopt one axis over another? Is it nature, nurture, free will or something else? Is it is more than just group identity and signalling?

I comment there is a fourth axis, that being dispensationalism.  Isms are processes that produce states-of-beings from ideas.

Dispensationalism is the concept that Jesus Christ is exercising administrative management of all things in each of mankind’s epochs, eras, eras, and time periods, to make them full, Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, Colossians 1:25.

Dispensationalism comes from Strong’s Greek word oikonomia, #3622, dispensation, and means household dispensing, household stewardship, household management and economic oversight of property for the completion of every age, era, and epoch and time period. Dispensations are time of mercy and judgment.

Dispensationalism produces both the “saints” and the “aints”; both were predestinated in eternity past. And through the movement of God’s spirit there be moral agency and ethical agency, which works in  nature, nurture, and a motivation to be one of two types of God’s vessel.    

MB-Soft relates Dispensational theology grows out of a consistent use of the hermeneutical principle of normal, plain, or literal interpretation. This principle does not exclude the use of figures of speech, but insists that behind every figure is a literal meaning. Applying this hermeneutical principle leads dispensationalism to distinguish God’s program for Israel from his program for the church. Thus the church did not begin in the OT but on the day of Pentecost, and the church is not presently fulfilling promises made to Israel in the OT that have not yet been fulfilled.

The dispensationalist manifest is the foundation for a life of virtue and ethics, establishing the elect as separate from the fiat who live in carnality and iniquity; it comes from an understanding of dispensationalism, serves as the basis of dispensationalist economics, and is a creed for a dispensationalist economist.

As presented in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is movement establishing a new order consisting of fifteen New Things.

The New Things of Christ establish the Dispensationalist’s Manifest,  is based upon Ephesians 1:10, the biblical revelation that Jesus Christ is operating in dispensation, that is the household management plan of God to complete and fulfill all things in every age, epoch, era and time period.

And Ask Blog continues I know, I know, it can be read in terms of freedom and coercion also, but it’s not as if the “happy ending” frees everyone.

I comment, Mr King has that right. Those down in Egypt, that is the dark nation, not those of Adam’s earthen tone, were predestined to be in the darkest of places, the land and people of God Ra, as not all tribes, and not all peoples entered into the Promised Land, only those led by Joshua entered.

And Mr  King continues, I will predict that articulate, politically-engaged people in the U.S. will tend to gravitate toward one axis, and to use that axis for group-identity and signaling purposes.

I comment, those of the Reformed Church, (those like John McArthur) and those of the Recovery Church (those like Witness Lee and Wathman Nye) and those of the Jesus Movement, are all aligned along the axis of Dispensationalism thought.

 

5) Facts about Chicago

Fran Spielman of the Chicago Sun Times reports Chicago’s principal private employers are JPMorgan Chase (8,168 workers); United Airlines (7,521); Accenture (5,590) and Northern Trust (5,448).

6) Will TransCanada Corp’s Alberta to East Coast Pipeline be part of a soon emerging North American Union Energy Infrastructure?

Liberalism featured democratic nation states, each with their own currency. But Authoritarianism features regional governance, where diktat serves as trust, medium of exchange, wealth and power.  Regioanlism is replacing Crony Capitalism, European Socialism, and Greek Socialism. An inquiring mind asks if the pipleline is constructed and is opeational by 2017 to 2018, it certainly will be a major part of what will be statist government overseen by regional nannycrats who manage the factors of production, and plan and operate an integrated North American economy where the dynamos of  regional security, stability, and security replace corporate profitability, global growth and trade.       

Sabina Zawadzki and David Sheppard of Reuters report TransCanada’s East Coast oil pipeline to change trade dynamics. TransCanada Corp’s (TRP.TO) plan to build one of the world’s longest oil pipelines has reverberations far beyond Canadian shores.

The planned 2,700 mile pipeline, which will bring crude from Canada’s energy capital of Alberta to refineries and ports on the East Coast, has the potential to upturn the dynamics of the North Atlantic oil trade squeezing out some imported crude to North America and revitalizing once-ailing refineries.

The Energy East line could also reinforce North Sea Brent crude as the world’s oil benchmark against which giants such as Saudi Arabia price their western-bound exports, analysts say, while opening up the option of more Canadian heavy crude flowing to the U.S. Gulf Coast.

The scale of the $12 billion, 1.1-million barrel per day (bpd) pipeline, which will extend part of an old natural gas line, is hard to understate. Were it to start in London, it would stretch all the way to Tehran. In the United States, it could pump crude oil from Beverly Hills to New York City.

And its capacity is greater than the entire oil production of Azerbaijan, could provide 6 percent of daily U.S. oil consumption or, put another way, has the ability to carry 30 percent of Canada’s total daily oil production.

“In the short and medium term, this isn’t a project focused on exporting heavier Canadian oil to the U.S. Gulf Coast,” said Mark Routt, a senior energy consultant at KBC in Houston, who has a number of clients interested in the project.

“The initial stage of this project will be primarily about sending light sweet crude to Canadian refineries.”

That could effectively wipe out Canada’s need to import crude for its eastern refineries. They now import around 700,000 bpd from North and West Africa and Latin America because Canada’s own supplies lie across a vast wilderness in the far West. Africa and Latin America will have to find a new home for their barrels by 2017 or 2018, if the pipeline is completed on time. The twinning of the project with a plan to build and operate a new deepwater export port in Saint John, New Brunswick will give oil producers an outlet for the 400,000 bpd or so of leftover, after Canada’s eastern refineries consume their share. “The next stage would be to potentially expand the project to ship light sweet crude to refineries on the U.S. East Coast,” Routt said.

Several refineries on the U.S. East Coast have shut down in recent years due to poor economic performance. Access to Canadian sweet crude, cheaper than European and African imports due to transportation costs and the lower U.S. benchmark price, could support the plants that remain.

7)  Many poor people live squezed into inner city ghettos such as the Tenderloin neighborhood of San Francisco.   

Economic Policy Journal posts The Lefty, government regulated, Bottle City of Squalor, San Francisco’s Tenderloin, reposting Gary Kamiya from Cool Gray City of Love: 49 Views of San Francisco (via Salon).

 

In the universe of San Francisco, the Tenderloin is the black hole, the six-block-by-six-block area where the city’s urban matter is most intensely concentrated. It is the only part of San Francisco that remains untamed, its last human wilderness. Without the Tenderloin and its radioactive core of junkies, drunks, transvestites, dealers, thugs, madmen, hustlers, derelicts, prostitutes and lowlifes.

Many cities used to have “bad” neighborhoods in the heart of downtown, zones of misrule where the primal human urges – to get laid, to get high, and to get money – were allowed to bloom furtively in the night. But most of them are gone now, victims of gentrification.

Bellingham Washington, known also as the City of Subdued Excitement, has the Downtown Neighborhood, which has a very bad side, stabilized by a major software employer, and its “campus” of offices spread across several city blocks, and which serves as night life entertainment and restaurants. and which serves as basis for a number of law offices.

Squeezed into Bellingham’s Downtown Neighborhood are five of liberalism’s resources, that is social service organizatons, which are the basis for Liberalism’s clientelism, and which provide monetary life and survival for the poor, who live devoid of any meritocracy.  

The first resource is Interfaith Clinic, that is the Department of Social and Human Services Community Health Clinic, which provides Medicaid medical and dental care.  The second is Opportunity Council, which provides Energy Assistance Grants, Community Voice Mail, a Soup Kitchen located in the suburbs at Faith Lutheran Church, Early Learning and Family Assistance, Home Weatherization Assistance, and Low Income Housing Assistance.  The third is Law Advocates which provides service bureaus of local attorneys, who volunteer their time to provide free low cost civil legal advice and help, such as obtaining Washington State IDs.  The fourth is The Lighthouse Mission and The Agape Home For Women And Children , which provides three hots and a cot, for those coming from jail or who are homeless. The fifth is a number of subsidized low income apartment buildings, like the one I live in, providing a SRO, so that I am able to survive, pay my bills, have a nutritious diet, maintain mental health, and have a physically clean life.

I live in the Sea Breeze Apartments, right in the center of Downtonw Bellingham, near Holly and Railroad. I am not bothered by those who are in my neighood who live to get laid, to get high, and to get money. Yet my life is a constant moral, that is virtuous, and ethical challenge, largely because of the antisocial people, that is psychopaths, who “live free” on a social security disability award of $730 a month, plus housing assistance, plus SNAP Food Stamps, for their inherent mental disorder of busybodyness, which Ask.com relates is “the act of interfering or meddling into other people affairs; it is also the act of touching or handling other people’s properties without their permission or consent which may result into conflicts” .       

Libertarians most likely would say shame of you for your dependency. I say thanks to Jesus Christ, who provides, for now, through His dispensation, Ephesians 1:10, resources so that I can maintain a spiritual life in Him.   

8) A see saw destruction of fiat wealth is underway with stocks reaching their zenith the week ending August 2, 2013, while credit and currencies are being destroyed by bond vigilantes calling the Interest Rate on the US Ten Year Government Note higher beginning May 21, 2013.

The chart of the S&P 500, $SPX, SPY, shows a close at $1,709, up 1.1% for the week. Bespoke Investment blog presents Long term stock market charts. The S&P 500 going back 15 year, as shown, shows the recent move higher has put quite a bit of distance between current levels and the prior all-time highs reached back in 2000 and 2007. And the Russell 2,000, is well above its prior all-time highs at this point. I comment that beginning in June 2012, that the small cap stocks, received great stimulus, as is sen in the combined ongoing Google Finance Chart of SPY, RZV, EEM, an AGG, to arrive at Peak Stock Wealth on August 2, 2013. An Elliott Wave 5 High has been achieved in both the Large Cap Stocks, SPY, and the Small Cap Stocks, IWM, with the Small Cap Pure Value Stocks, RZV, having the greatest fall potential, that is the most rapid rate of disinvestment, deleveraging and derisking.   The 28 most inflationary ETFs presented in this Finviz Screener, for the week ending August 2, 2013, communicates Liberalism’s grand finale credit and carry trade driven rally

1) XIV 8.5

2) ITB 4.0

3) FXR 3.6

4) PPA 3.0

5) SPHB 2.9

6) IGV 2.6

7) IGN 2.5

8) BJK 2.5

9) FPX 2.4

10) XRT 2.2

11) IBB 2.2

12) CARZ 2.1

13) PBS 2.1

14) PJP 2.1

15) RXI. 2.1

16) EIRL 2.1

17) IAI 2.0

18) FDN 1.9

19) SMH 1.8

20) FLM 1.6

21) RWW 1.5

22) IYC 1.5

23) PSCI 1.5

24) EUFN 0.9

25) PSP 0.3

26) RZV 0.2

27) UJB 0.1

28) TAN -1.1

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