The New Economic And Political Paradigm Of Authoritarianism Emerges To Establish A Eurozone Banking Union And Fiscal Union Featuring The Diktat Of Nannycrats As Jesus Christ Opens The First Seal Of The Scroll

Financial Market Report for the week ending October 25, 2013

1) … Under the new economic and political paradigm of authoritarianism, fiscal policy is established by the diktat of regional nannycrats.
Please consider the concept that the economic and political paradigm of liberalism stands at its zenith, as is seen in the Weekly Finviz Chart of Global Financials, IXG, showing 30% gain over the last year, as the Banker Regime has established a Washington US Dollar Hegemonic Empire, greatly rewarding investment choice providing a moral hazard based prosperity, based upon schemes of credit liquidity and carry trade investing.

Yet, the world is at an epic inflection point.

Jesus Christ, operating in the Economy of God, as revealed by the Apostle Paul in Ephesians 1:10, that is operating in the administration of all things economic and political, is pivoting the world into the economic and political paradigm of authoritarianism, where the Beast Regime will establish the Ten Toed Kingdom of regional governance and totalitarian collectivism, where in the Eurozone a fiscal union creates fiscal policies of diktat providing “the new normal” of austerity, based upon schemes of debt servitude.

I relate that The Dispensation Economics Manifest presents that the democratic nation state theory of money is being replaced by the regional governance theory of money; said another way, the fiat money system is being replaced by the diktat money system.

Diktat money 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, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal policy councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, for Eurozone wide fiscal governance, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke all kinds of mandates for regional security, stability, and sustainability.

These leaders, that is nannycrats include, Jeroen Dijsselbloem, President of the Eurogroup meeting of euro-zone finance ministers, Olli Rehn, Vice President of the European Commission responsible for economic and monetary affairs, Michel Barnier, EU Commissioner responsible for internal market and services, Klaus Regling, Managing Director of the European Stability Mechanism, Werner Hoyer, President of the European Investment Bank, Jorg Asmussen, Member of Executive Board of the ECB, Viviane Reding, European Commissioner for Justice, Fundamental Rights and Citizenship.

And diktat money is seen in countries with high current account deficit, such as in India, where import duties have been declared on the import of gold, and the import of gold coins banned; and such as in Indonesia, where curbs are placed on the import of luxury cars and some branded goods.

2) … Details of this week’s financial market trading

On Monday, October 21, 2013, trading manifested as deflationary, as in a turn lower from market highs.

Zero Hedge reports Yen Drops, Nikkei Pops On Japan’s Worst Trade Deficit On Record. In overnight trading,  In  Japan, The Nikkei, NKY, traded 0.9% higher, as the Japanese Yen, FXY, came under pressure and traded lower on slowing export growth and on reaffirmed central bank commitment to provide ultra loose monetary.  Roger Bootle of The Telegraph reports It’s Not Yet The End Of The World As We Know It, But Watch Japan’s Debt Grow. Japan has managed to muddle through, but it now looks as though it is close to a tipping point.  And Reuters reports Tokyo Steel, Wary Of  Imports Threat, Keeps November Prices Mostly Unchanged.

The National Bank of Greece, NBG, rose strongly. Eurozone Stocks, EZU, traded unchanged at their rally highs, while the European Financials, EUFN, traded slightly lower, while the EUR/JPY carry trade, closed slightly higher at 134.33, as the Euro, FXE, closed unchanged at 135.33, and the Yen, FXY, closed lower at 99.52.

The Nikkei, NKY, closed slightly higher on the day, while World Stocks, VT, US Stocks, VTI, Asia Excluding Japan, EPP, Emerging Market Stocks, EEM, and the BRICS, EEB, all traded unchanged.

Solar Energy Stocks, TAN, Gold Mining Stocks, GDX, and Silver Mining Stocks, SIL, traded higher. Biotechnology, IBB, Pharmaceuticals, PJP, traded lower. Egypt, EGPT, and Argentina, ARGT, traded higher. Thailand, THD, Indonesia, IDX, and the Philippines, EPHE, traded lower.  Tesla, TSLA, fell 5.9% lower, as Zero Hedge reports A German Magazine’s Story About Tesla’s Prospects In Europe Has The Stock Sinking Today.

The US Dollar, $USD, UUP, traded unchanged, as Major World Currencies, DBV, traded unchanged, and the Emerging Market Currencies, CEW, traded slightly lower.

Aggregate Credit, AGG, Junk Bonds, JNK, Ultra Junk Bonds, UJB, and Government Bonds, GOVT, traded slightly lower, as the Steepner ETF, STPP, traded slightly higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher to close at 2.61% as Michael Pinto writes Safehaven De-Crowning The US Dollar While most are now celebrating the end of government gridlock (however ephemeral it may be), the truth is few understand the consequences of our addictions. The real problems of government largess, money printing, artificial interest rates, asset bubbles and debt have not been addressed at all. Rather, Washington has merely agreed to perpetually extend its lines of credit and to have the central bank purchase most of that new debt. Instead of placating the fears of our foreign creditors we have cemented into their minds that the U.S. dollar and bond market cannot be safe repositories of their savings.

Commodities, DBC, hit resistance at 26.26, last Friday, that is October 18, 2013, and closed slightly lower today at 26.20. Oil, USO, traded sharply lower, as Bespoke Investment Group, reports Crude Oil Inventories Rise More Than Expected.  Small Cap Energy, PSCE, an Energy Production, XOP, manifested bearishly at the top of their ascending wedge chart patterns.

Scott Grannis writes Bank Lending Continues To Increase Confidence is slowly returning, and risk-aversion is slowly declining. I comment, yes, this is true.

And he continues “and those are essential ingredients for a stronger economy in the years to come”.

I comment that this would be true, but a strong economy is not in the works, it is simply not going to happen, as the growth that has come since 2008, has been due to central bank policies of credit liquidity, specifically QE1 through QETernity, and POMO, as well as banker provided credit liquidity for speculative leverage invesment which has resulted in a fiat asset crack up boom, which is always followed by spectacular crash, often called a Minsky Moment.

And he continues “The decline in the price of gold (see chart above) is another way to see how risk-aversion is slowly declining”

This is incorrect, the decline in the price of gold is due to investors use a record amount of margin debt, the WSJ reports, “to go all in”, and buy risk assets such as the following:

Solar Stocks, TAN, with year-to-date performance of 152% gain.

Social Media, SOCL, with year-to-date performance of 60% gain.

Nasdaq Internet, PNQI, with year-to-date performance with 53% gain.

Biotechnology, IBB, with ETF, year-to-date performance with  50% gain.

Internet Retail, FDN, with year-to-date performance with 47% gain.

The US Dollar’s dramatic fall lower is seen in the chart of the 200% ETF, UUP, trading parabolically lower, as currency traders bought the Major World Currencies, DBV, such as FXB , FXF, FXS, FXE, FXA, FXC, and FXY, and Emerging Market Currencies, CEW, such as BZF, ICN, which can be seen in the trading of these financial instruments in their Finviz Screener.

With the strong trade in Euro-Yen currency carry trade, that its the EUR/JPY, FXE:FXY, and the Australian Dollar-Yen currency carry trade, AUD/JPY, FXA;FXY, coupled with the strong surge in risk free lending, seen in the chart of the short term credit ETF, FLOT, which is translated into a parabolic rise in World Stocks, VT, it is reasonable to perceive that peak fiat money has been achieved, and that Major World Currencies, DBV, an Emerging Market Currencies, CEW, will be trading lower, as investors pivot from risk-on investing to risk-off investing, deleveraging out of risk assets. The result will be a loss of confidence and a strong economic downturn.

The price of the Gold ETF, GLD, seen in Finviz Chart, …  http://tinyurl.com/nrehus … shows it to be in breakout at 127; it is likely to fall lower, as it is will trade lower with falling currencies and with falling commodities, before it soars as people safe assets; in a debt deflationary environment, that is interest rate rising environment and in an enduring currency value falling world, especially one characterized by authoritarianism, it and diktat will be the only assets of confidence, that is the only things people will trust in.

In Safehaven.com araticle Lara Iriarte provides GOLD Elliott Wave Technical Analysis. The dips that are coming in the next few days present buying opportunities, as in a bull market one buys into dips, whereas in a bear market one sells into pips.

News reports herald the development of Eurozone regional governance. Both an austerity union and an austerity regime is being established in the Eurozone. Eventually a One Euro Government, that is a European Super State, featuring a fiscal union, led by nannycrats will provide fiscal policy governance, based upon schemes of debt servitude.

Bloomberg reports the development of the Eurozone as an austerity union relating Euro Capitals Tighten Fiscal Leash as EU Starts Austerity.

Jordan Shilton of WSWS writes Irish Government Unveils New Austerity Budget. The Fine Gael Labour coalition has outlined new austerity measures, including €1.6 billion in spending cuts aimed at the most vulnerable. And The Irish Independent reports Ireland’s Health Minister Reilly To Cut 1,000 Jobs In Bid For €666m Savings.

Marianne Arens of WSWS reports Italian Government Adopts Austerity Budget  Pay for public servants will be frozen next year and vacant positions will not be filled. Then in 2015, only 40 percent of those who leave will be replaced; in 2016, it will be 60 percent. In order to obtain the necessary resources for budget cuts and tax relief, privatisation is being pursued. The state’s holdings in the airline Alitalia and in telecommunications are to be sold. Two days before the adoption of the budget, the government still planned to cut spending in the health sector by over €4 billion. At the last minute this was left out. Health minister Beatrice Lorenyin threatened to resign, and chemists and hospital associations protested strongly. Nonetheless, it is expected that such cuts will be imposed later. Italy barely complied with an EU deadline of 15 October for the presentation of the budget. Several passages in the budget remain to be determined or are simply blank. They will be negotiated in parliament in the coming weeks. The Democratic Party, which emerged from the once-powerful Communist Party, is dominated today by conservative officials like Letta, who began his political career together with his deputy Prime Minister and PDL secretary Alfano in the Christian-democratic youth movement. The numerous pseudo-left groups which gathered in Rifondazione Comunista in the 1990s and acted as a left fig leaf for a series of bourgeois governments, have also moved far to the right or no longer exist.

Open Europe, in its for fee newsletter, which I recommend that one purchase, relates Spiegel Online reports Merkel Demands EU Treaty Change To Give Commission Control Over National Budgets. In a meeting with EU Council President Herman Van Rompuy last week, German Chancellor Angela Merkel set out her proposals for giving the EU greater powers over eurozone members’ national budgets, a move which would require EU Treaty change. Merkel will reportedly insist on legally enforceable contracts between the Commission and individual member states, setting out their obligations for maintaining budgetary discipline and improved competitiveness. In return, Germany could agree to a eurozone budget which would amount to tens of billions. Finally, the President of the Eurogroup would become a “Euro Finance Minister”.  … Spiegel Online cites Axel Schäfer, deputy-chair of the SPD’s parliamentary group as saying that “the SPD will not support any settlements if Merkel conducts parallel negotiations with Britain’s David Cameron over the transfer of EU competences back to member states.” Schäfer also warns that the SPD will not support an EU Treaty changes that trigger referenda in individual member states.

Open Europe: What to expect after the German elections … Spiegel Spiegel 2 … DWN … Irish Times

Kate Randall of WSWS writes Nearly Half Of US Public School Children Are Poor.   Nearly half of public school children in the United States were poor in the school year that ended in 2011, according to a new study by the Southern Education Foundation (SEF), the oldest US educational charity.

The SEF study, based on data collected by the National Center for Education Statistics (NCES), further found that the percentage of low-income students in public schools rose dramatically from 2001 to 2011, far outpacing public school funding. The study also found a direct correlation between levels of poverty and academic performance.

The findings are the latest exposure of the growth of poverty in the US alongside burgeoning social inequality.

Levels of poverty among schoolchildren were the highest in the South and West, including in all but two of the 15 Southern states. The five most impoverished school populations also came from states in these regions: Mississippi (71 percent), New Mexico (68 percent), Louisiana (66 percent), Oklahoma (61 percent), and Arkansas (60 percent).

The SEF study’s most staggering finding is that 48 percent of all US public school children come from poor households. While figures for poor school children were highest in the South and West, 53 percent and 50 percent respectively, poverty levels were also extremely high in the Midwest, 44 percent, and the Northeast, 40 percent

The study notes that reduced family incomes in the US since the 2008 recession have directly contributed to the growth in the number of poor students in public schools, especially in states hard hit by the housing market crisis.

More than two-thirds of African American and Hispanic public school students attend schools where poor students are the majority. A high number of students from Pacific Islander (53 percent) and American Indian/Alaska Native (65 percent) households also attend schools where more than half of students are poor. About a third of white and Asian students attend schools where the majority is poor.

Several Northeastern states have extremely high levels of poor students in their cities. The figure for New Jersey is 78 percent, for Pennsylvania it is 75 percent, and for New York it is 74 percent. In these same three states, 30 percent or less of students in suburban schools are poor, an indication of striking social inequality in these urban centers.

The study also found that the regions with the largest proportion of poor students spend the least on educating them. For example, the South (53 percent poor students) spent $9,226 per pupil in 2011, compared to the Northeast (40 percent poor students), which spent $16,045 per pupil. This disparity in funding can only serve to perpetuate social inequality and the decay of education in poorer schools.

Data cited by the SEF study show that poor students are more likely than students from more well-off families to have lower test scores, fall behind in school, drop out, and fail to acquire a college degree. Problems faced by children coming from households where poverty, hunger and the accompanying stress are a daily fact of life are exacerbated by conditions in schools that are starved for funding.

Austerity budgets at the federal, state and local level threaten to further starve the poorest school districts of cash, while growing income inequality will increase the percentage of low-income students attending these struggling public schools.

I believe that it would have been better, and would be better now, if children would be educated only through 6th grade. From a moral, that is virtue, viewpoint, and economic, that is ethical, viewpoint, I believe parents should provide homeschooling or private schooling after 6th grade. Public schooling after 6th grade terribly corrupts one’s morals, that is virtues, and one’s economics, that is ethics in many ways. And psychopathy becomes quite pronounced after 6th grade; sending one’s child to public school exposes that child to either becoming a psychopath or becoming damaged by a psychopath.   In fifth and sixth grade, most children grow up to be able to comprehend morals and ethics. Being accountable, they can be taught to value independence and liberty, and to turn away from dependency,  clientelism, and moral hazard. Public education beyond the sixth grade is an impediment to the development of good character, and such education does not help one get employment as CNBC reports, More Youth Not In School, Without Jobs. Almost 6 million young people are neither in school nor working, according to a study released Monday. That’s almost 15 percent of those aged 16 to 24 who have neither desk nor job, according to The Opportunity Nation coalition, which wrote the report.

And now, school is a battleground for communication of economics, which should be a matter of parental education. Fox News reports Second Graders Taught Labor Politics In Core Curriculum Aligned Lesson Plan. A textbook company contracted to produce materials under the Common Core State Standards is trying to teach students as young as second grade about economic fairness by praising unions, protests and labor leader Cesar Chavez, according to an education watchdog group. Zaner-Bloser, which is based in Columbus, Ohio, is distributing a lesson plan aimed at teaching second-graders about “equality” by highlighting labor issues, according to Education Action Group Foundation, a non-partisan organization that looks to promote education reform.

Patrick Martin in WSWS communicates in article Top Senate Democrat Backs Medicare, Social Security Cuts that the recent Raise The Debt Ceiling and Fund Obamacare Legislation mandates that US fiscal policy be established by a House Senate conference committee co-chaired by Democratic Senator Patty Murray and Republican Congressman Paul Ryan. The committee is tasked with drafting a budget for the balance of the current fiscal year, to be submitted by December 13. It is widely expected to begin discussing cuts in Social Security and Medicare, a significant first step even if there is not yet bipartisan agreement on the exact measures to be taken.

I know Patty Murray to be a politically powerful woman, as I live in Washington State, and have benefited from Patty Murray Earmarks, in particular new city busses provided by her to WTA, that is  Whatcom County Transportation Authority, which manages public transportation in Bellingham, Blaine, Ferndale, and Lynden. The van pool and bus system is well financed through a sales tax scheme (which Canadians who come across the border to shop contribute to) and fortunately does an excellent job of providing low cost transportation for the elderly disabled like myself.

Peter Nicholas of the WSJ reports Budget Discord Simmers Among Democrats  Neil Sroka of Democracy for America, a group founded by former Democratic presidential hopeful and Vermont Governor Howard Dean, said to “expect a civil war within the Democratic Party if any Democrats [in] Congress think about following through on the president’s proposed cuts to Social Security benefits.” Mr. Sroka said his group would be following the committee’s work and is prepared to take out ads and support primary campaigns against Democratic lawmakers who agree to cuts in entitlement programs.

Danny Hakim of the NYT writes The Man Who’ll Do Triage on Europe’s Banks.  Ignazio Angeloni, is a man with a mission: “You have to supervise what banks do,” Mr. Angeloni of the ECB said.  He heads the European Central Bank’s financial stability division, giving him a lead role in a task about to begin: examining the books of the 130 or so largest banks in the 17 members of the European Union who use the euro, Europa Press release reports. It will be financial triage aimed at determining which banks are sound and which are not; good luck with that.

(I comment that none of Europe’s banks are sound, as they are all loaded to the gills with nation state Treasury debt, EU, that cannot be and will not be repaid. The European Financial Institutions EUFN, such as Germany’s DB, Spain’s SAN, and Ireland’s IRE, are insolvent banks, and the European nations, at least the PIIGS, that is the periphery nations Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns.  Insolvent sovereigns cannot govern, and insolvent banks cannot provide seigniorage. It is only through  godsend, that is a lifesaver, that the European banks have financial life; it came through the genius of Mario Draghi, who provided the monetary policies of LTRO1, LTRO2, and OMT.

The Euro FXE, is trading at its rally high of 135.36; its strength is not a function of free market place trading between buyers and sellers of nation state treasury debt; but rather the Euro has been given seigniorage by the sovereignty of one man, that being the ECB’s Mario Draghi.  Not only is the strength of the Euro, FXE, the European Financials, EUFN, and nation investment in Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, an awesome thing, it is truly an epic thing, as well as a pivotal thing, and a terminal thing. Liberalism has attained peak sovereignty, peak seigniorage, and peak prosperity.)

Angeloni is one of the more multifaceted lieutenants of Mario Draghi, the president of the European Central Bank. The immediate task is to prepare for the inception of a quasi-independent supervisory branch of the central bank, which will have its own chairman.

(I comment that as Mario Draghi’s banking lieutenant, he is one of many regional nannycrats rising in power to effect regional economic governance).

The first step is reviewing the financial health of the biggest banks of Europe. The central bank must do so in the next 12 months, while creating a supervisory wing staffed by a thousand new employees.

“People come to us and ask, ‘How can you do it? You have to recruit many supervisors, you don’t have many resources,’ ” he said. “That’s not true.” The central bank has the advantage of drawing on the aid and experience of national regulators that have long been at work in member states, he said.

“What makes it difficult is that it is very fragmented,” he said. “It is diversified in different countries, and they are not used to working together, so it’s a huge organizational effort, and it’s also a huge political effort in the sense of convincing everybody to converge to common styles of supervision.”

For the supervisory process to be truly useful, specialists say it must be accompanied by a so-called single resolution mechanism, a system for winding down failing banks in an orderly way, to avoid market upheavals. Regulators hope an independent body to oversee such work will be in place by 2015, but almost every detail of the banking overhaul effort has been mired in political wrangling among the member states.

“The stakes are the recovery and well functioning of Europe and the euro,” Mr. Angeloni said. “Europe has this project for several decades, to not only live in peace, that’s already an important thing in itself, but also to make its economic model function and potentially,  why not?,  be also exported elsewhere. And it’s a good economic model, because the quality of life in Europe is very high in many ways.”

(I comment that the European model, specifically European Socialism, and Greek Socialism, being based upon clientelism, and national laws which present structures that impede economic growth, is unsustainable; and having reached its fullest expansion, is about to implode).

“You have to make the system work, you have to reform it a little bit, and what we are doing is part of this reform,” he said, adding, “Building a federation is a long process.”

(I comment that yes, Ignazio Angeloni is a man tasked to build the banking infrastructure of a  Eurozone Superstate. The soon coming One Euro Government will be built upon a banking union as well as a fiscal union; Mr. Angeloni is a leader in establishing European regional governance.

Liberalism featured the Banker Regime. Authoritarianism features the Beast Regime, where leaders  meet in summits and workgroups to waive national sovereignty and establish regional pooled sovereignty, as The First Horseman of the Apocalypse, that is the Rider on the White Horse, who carries the bow yet without any arrows, going out as a conqueror bent on conquest, Revelation 6:1-2, is effecting coup d’etat globally to transfer the baton of sovereignty, from liberalism’s democratic nation states, to authoritarianism’s nannycrats, as they rise to rule in public private partnerships, providing seigniorage through oversight of the factors of production, commerce, banking and trade, all for regional security, stability and sustainability.)

On Tuesday, October 22, 2013, financial marketplace trading produced liberalism’s peak nation state sovereignty, seigniorage, and moral hazard based prosperity, as it’s Krugmanomics here, and Abenomics, as well as Draghinomics, over there.

Liberalism attained peak prosperity on global currency carry trade investing and a pursuit of yield. Both of liberalism’s spigots of investment liquidity were open full wide. Said another way, the financial markets were under total leverage as evidenced by the Euro, FXE, Ultra Junk Bonds, UJB, and Leveraged Buyouts, PSP, rising strongly, and the US Dollar, $USD, falling strongly lower.

Currency traders bought all of the major world currencies, DBV, such as Swiss Franc, FXF, up 0.8%, The Euro, FXE, 0.7%, The Swedish Krona, FXS, 0.6%, The British Pound Sterling, FXB, 0.5%, and The Australian Dollar, FXA, 0.5%, as well as emerging market currencies, CEW, such as The Brazilian Real, BZF, 0.6%, and The Indian Rupe, ICN, 0.4%. Currency traders went “long, all in”.

The Japanese Yen, FXY, rose only a meager 0.05%, enabling a stunning leverage to those invested long risk assets, such as Biotechnology Stocks, IBB, Nation Investment, EFA, such as the Philippines, EPHE, and European Financials, EUFN, such as the National Bank of Greece, NBG, and Ireland’s Bank, IRE.  Seen in its chart, Nation Investment, EFA, clearly manifested a blow-off market top.

The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.51%, stimulated investors to chase yield, and resulted in a strong rise in credit, with Ultra Junk Bonds, UJB, up 0.75%, Junk Bonds, JNK 0.25%, Aggregate Credit, AGG 0.35%, Government Bonds, GOVT, 0.40%, and Floating Rate Note, FLOT 0.08%. The Steepner ETF, STPP, traded a strong 2.1% lower, reflecting the flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX.

The monetary policies of the world central banks, have produced fully produced Krugmanomics here, and Abenomics. as well as Draghinomics, over there.  The strong rise in Major World Currencies, DBV, and Emerging Market Currencies, CEW, drove World Treasury Bond, BWX, and International Corporate Bonds, PICB, to new highs, as the flurry of currency leverage and debt leverage caused the US Dollar, $USD, UUP, to plummet strongly to close at 79.29.

The precious metals at times trade inversely of the US Dollar; and that was the case today on the sharp trade lower in the US Dollar, $USD, as Gold, GLD, rose 1.8%, and Silver, SLV, rose 2.2%, stimulating Gold Miners, GDX, and Silver Miners, SIL, to rise 4.4%.  The strong rise in Commodity Currencies, that is the Euro, FXE, and the Australian Dollar, FXA, caused Copper Miners, COPX, Global Industrial Miners, PICK, and Coal Miners, KOL, rose strongly. Gold, GLD, and Silver, SLV,  are in breakout, but risk trading lower on soon falling currencies.

World Stocks, VT, rose a solid 0.7%.  Sectors rising strongly included Biotechnology, IBB, Solar Stocks, TAN, Design Build, FLM, Pharmaceuticals, PJP, Global Consumer Discretionary, RXI, and Global Industrial Producers, FXR,  Spinoffs, CSD, and Transportation, XTN,  And Yield Bearing Sectors rising included Utilities, XLU, Global Utilities, DBU, such as HNP, Real Estate, IYR, and Global Real Estate, DRW, Global Telecom, IST, such as VIP, as well as Leveraged Buyouts, PSP.

The strength of liberalism’s peak currency carry trade investing, is seen in investors taking Ireland’s CRH, IR, and COV, and Netherland’s, ST, AER, ING, LYB, and PHG, as well as Germany’s ABB, and SI, strongly higher.  And the strength of liberalism’s peak chasing of yield is seen in investors taking Tupperware, TUP, Cinemark, CNK, Ichan, IEP, Targa Resources, TRGP, and Vimpel, VIP, strongly higher.

Asia Excluding Japan, EPP, and the Eurozone, EZU, led World Stocks, VT, higher; all manifesting blow off market tops. In Asia, the Philippines, EPHE, New Zealand, ENZL, Turkey, TUR, Thailand, THD, Malaysia, EWM. and Australia, EWZ, KROO, led the way higher.  In Europe, Germany, EWG, EWGS, the Netherlands, EWN, and Italy, EWI, led the way higher. Argentina, ARGT, continued to a new rally high.

Ireland’s Bank, IRE, and the National Bank of Greece, NBG, rose strongly, to new rally highs, as the European Financials, EUFN, blasted higher, taking the Eurozone Stocks, EZU, higher, all on the, EUR/JPY, carry trade, which rose to close higher at 135.98, as the Euro, FXE, at 136.34, and Yen, FXY, at 20.71. The Elliott Wave Surfer chart article of the EURJPY communicates an Elliott Wave 5 High in liberalism’s great currency carry trade; the hart should be placed in future economic books as a tribute to liberalism’s currency carry trade leverage and the moral hazard prosperity that came through debt which cannot be repaid.

The vertical rise seen in the chart of the EURUSD, comes on the Reuters news report that the ECB names 130 European Banks for supervision; this news is truly epic, and together with currency carry trade investing, and the availabilty of credit seen in the strong rise of the Short Term Bond ETF, FLOT, accounts for the parabolic rise in European Financials, EUFN,  as well as nation investment in Ireland, EIRL, and its bank, IRE. The rise of the Euro, FXE, to 136 marks the zenith of Liberalism, as the age of investment choice, which was based upon schemes of currency carry trade investing, and central bank credit liquidity.

The Financial Times documents PBOC’s great provision of credit reporting China’s Credit Has Inspired Statistical Economic Growth. A surge in lending by banks and other financial institutions at the start of this year is one of the main explanations for the upturn in Chinese growth. Total social financing, China’s widest measure of credit, rose 52 percent year-on-year in the first five months of 2013.

The Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, as well as real estate investor, BX, have produced a terrific moral hazard based peak prosperity.

Peak fiat wealth was achieved on October 22, 3013. The strong trade lower in the US Dollar, $USD, to close at 79.29, and the strong rise in Nation Investment, EFA, and Global Industrial Producers, FXR, marks the zenith of Liberalism’s Milton Friedman Free to Choose Floating Currency Banker Regime, and the achievement of peak democratic nation state sovereignty, and banker driven seigniorage.

Mike Mish Shedlock writes New Rules for Italy Banks “I’ll Guarantee Your Derivatives If You Guarantee Mine”.  Basel III rules require extra capital for derivative positions. Banks in Italy have already figured out a way around that rule. The leverage of European banks to their own sovereign debt is enormous. This mutual guarantee agreement encourages banks to continue the leverage party.

Out of a soon coming Financial Apocalypse, foretold in bible prophecy of Revelation 13:3-4, authoritarianism’s Beast Regime of regional governance and totalitarian collectivism will provide regional nannycrat sovereignty and their diktat driven seigniorage, where undollar bartering amongst regional partners increasingly replaces US Dollar, $USD, based transactions.

Benson te asks Has The Fed’s Taper Talk Induced Foreign Selling, Swap And Bilateral Currency Deals?  Currency swaps or bilateral domestic currency trades have been small, nonetheless such deals means that many Asian governments have been gradually redirecting or decreasing their exposures on the US dollar. As Chinese philosopher Laozi once said, a journey to a thousand miles begins with a single step. China and Thailand have even undertaken a project to build a railway connection between the two countries, where Thailand will for pay for her share in the cost of railway construction via barter, particularly rice and rubber. Also currency swaps are not a free pass or license for bubbles. They serve as possible cushion from currency based tail events.

I’m not into short selling, but for those who are, or plan to be, one might consider using the ETFs, seen in this Finviz Portfolio, … OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG … as a basis for one’s margin account, now that the financial markets have peaked out.

Volatility, ^VIX, rose from 13.04, for the second straight day, taking the Volatility ETFS, seen in this Finviz Screener, TVIX, VIXY, VIXM, XVZ, higher.

Bloomberg reports China Swap Rate Rises a Fourth Day as PBOC Doesn’t Inject Funds. “It looks like we’re entering a phase when the PBOC will refrain from selling reverse repos,” said Cheng Qingsheng, an analyst at Evergrowing Bank Co. in Shanghai. “The PBOC is sending a clear signal to the market about its prudent stance.”

Liberalism was the age of investment choice based upon schemes of currency trade investment, and world central bank schemes of credit liquidity.

But authoritarianism is the age of diktat based upon schemes of debt servitude, as is evidenced by the Ulrich Rippert WSWS report German Social Democrats’ Convention Backs Coalition Talks With Conservative Parties. The SPD has dropped the reformist demands it raised during the election campaign to signal its readiness to cooperate with the conservative parties.  As well as by the report Andrei Tudora WSWS report Romanian Government And Unions Carve Up The Health System. Romanian unions are playing a key role in dismantling the public health system in Romania.  As well as the Mike Head WSWS report Queensland Australian Government Legislates Draconian Anti-bikie Laws.  The Queensland legislation marks an escalation of the far-reaching “criminal association” laws passed by state governments since 2001, which erode basic democratic rights.  As well as by the Dylan Lubao WSWS report Canada’s Conservatives To Intensify Assault On Working People Stephen Harper’s Conservatives have laid out a reactionary legislative agenda, including deep government spending cuts, attacks on public sector workers, and a massive arms buildup.

Johannes Stern of WSWS reports Germany: The Left Party Embarks On A War Course. Up to now, the Left Party was the only parliamentary party to officially oppose overseas missions of the Bundeswehr, German Armed Forces, criticizing US foreign policy and even calling for the dissolution of NATO in its party programme. This is now officially over. After the general election, the Left Party is dumping whatever empty phrases might become obstacles to supporting whatever wars Berlin might wage in the future.

COG writer relates Handelsblatt Bluntly States That The German Army Will Be Rebuilt “in order to be used all over the world.” The vast majority of the German population is vehemently opposed to militarism. The fact that the Handelsblatt can so publicly formulate the goals of the German bourgeoisie is above all a devastating indictment of the Green Party, the Social Democratic Party and the Left Party. (Stern J. The Return of German Imperialism. Global Research, 21 February 2013). The Mission of the Bundeswehr Germany and protects its citizens, secures the action in foreign policy of Germany, contributes to the defense of allies, contributes to stability and partnership in the international context, and promotes multinational cooperation and European integration. Notice that the defense of Germany anywhere and supporting European integration are essentially the stated goals of the Bundeswehr.  European integration will lead to the rise of the end-time Beast power of biblical prophecy! Wikipedia (viewed 06/25/13) has the following comment about the Bundeswehr: “The Bundeswehr in general is among the world’s most technologically advanced and best-supplied militaries, as befits Germany’s overall economic prosperity and significant military industry.”

While many believe that Germany’s intentions are peaceful (and the Bible teaches that many in Germany truly think they are per Isaiah 10:7), they will not remain that way.  Preparing their people to better respect and support their military, while increasing its technical abilities will lead to war, and several of them.

This inquiring mind asks, well which wars? I believe Germany will be involved in the soon coming Isaiah 17 war in Syria as well as the Ezekiel 38 Middle East War.

The German led, and Eurozone empowered Superstate, will be led by The Sovereign, Revelation 13:5-10, who according to Daniel 11:38-39, will be a military leader. “But in their place he shall honor a god of fortresses; and a god which his fathers did not know he shall honor with gold and silver, with precious stones and pleasant things. Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain.”

He is described as The Little Horn, one of seemingly little authority, Daniel 7:8, yet will rise to power through through his adept working in regional framework agreements, Daniel 8:23-26, and will set his attentions on The Glorious Land, Daniel 8:9, and as the prophesied  Prince who is to come, will provide a Middle East Peace Plan, and establish a One World Government, and One World Religion, with his global headquarters in Jerusalem, Daniel 9:25. The Sovereign will be accompanied in his rise to power, by the Seignior, Revelation 13:11-18, that is the top dog banker who takes a cut; his role will be to call people worldwide to emperor worship.

And please consider that according to Jesus, There will be signs in the sun, moon and stars, preceding His return, Luke 21:25. Duane and Shelley Muir write Comet ISON’s Blazing Green Tail Captured In Stunning Photo.

On Wednesday, October 23, 2013, the Market Off ETN, OFF, traded higher, as currency traders reversed course, and sold out of yen based carry trades, by calling the Yen, FXY, higher, and Major World Currencies DBV, and Emerging Market Currencies, CEW, lower, thereby causing investors to deleverage out of Global Financial Institutions, IXG, which were led lower by the National Bank of Greece, NBG, Spain’s Banco Santander, SAN, and Chinese Financials, CHIX, Argentina’s Banks, BFR, BMA, BBVA, GGAL, and South Korea’s Banks, KB, SHG, and WF, reflecting investor conviction that the monetary policies of the world central banks are no longer able to stimulate global growth and trade, nor corporate profitability, in any nation,  EFA, especially Greece, GREK, Ireland, EIRL, China, YAO, South Korea, EWY, Taiwan, EWT, India, INP, or Australia, EWA, KROO.

The derisking out of currency carry trade investment, turned off the ongoing rise of credit as is seen in the value of Short Term Bond, ETF, FLOT, trading lower in value.

Both of the levers of ongoing fiat wealth creation, these being currency carry trade investing and credit liquidity are no longer working.

Said another way, the twin spigots of fiat money creation, these being first, floating currencies and second, trust in the world central banks’s monetary authority to stimulate global growth and trade, establish corporate profitability, and develop nation investment, have run dry.

Benson te communicates Markets move on perceived changes in fundamentals. Speculators don’t just drive markets up or down according to “whims”, but through perceived profit opportunities mainly based on changing expectations of fundamental conditions of specific political economies. In other words, meltdowns don’t happen because of confidence alone, but because of perceived (rightly or wrongly) dramatic negative or adverse changes in fundamentals that incites an abrupt loss of confidence of market participants whose actions are ventilated on the markets via a stampede or panic.

The chart of the EUR/JPY carry trade shows a close lower at 134.19, as the Euro, FXE, traded unchanged at its rally high of 136.31, and the Yen, FXY, traded  0.8%  higher to 100.37.

The chart of the AUD/JPY carry trade shows a close lower at 93.70.

Major World Currencies, DBC, traded strongly lower, -1.4%, with Canadian Dollar, FXC, -1.0%, Australian Dollar, FXA, -0.9, and British Pound Sterling, FXB, -0.5. Emerging Market Currencies, CEW, traded lower, -0.5%, with Brazilian Real, BZF, -0.8%, and Indian Rupe, ICN, -0.6.

The US Dollar, USD, UUP, rose slightly, to 79.33

Energy Production, XOP, -2.6% and Small Cap Energy, PSCE, -2.4%, on a lower price of Oil, USO.

World Stocks, VT, -1.0%, with the following sectors trading lower: Semiconductors, XSD, -4.1%, Solar Stocks, TAN, -2.8, Networking, IGN, -1.8, Social Media, SOCL, -1.8, Steel, SLX, -1.6, Resorts and Casinos, BJK -1.6, and Global Financials, IXG, -1.5.

Yield Bearing Sectors trading lower included Global Telecom, IST, -1.2, with carry trade darlings, TKC, TSU, TEF, NTT, ORAN, MBT, NTT, trading lower.  And Global Utilities, -1.4, DBU, and its carry trade darlings, NHP, CIG, EBR, trading lower.  And Global Real Estate, DRW, -1.0,  And Leveraged Buyouts, PSP, -1.0, a very  high yielding ETF.

Nation Investment, EFA, -1.0% with Global Financials, IXG, -1.4%; Countries and their banks leading lower included the following:

Greece, GREK, -4.4%, with NBG -8.9%,

Argentina, ARGT, -3.3, with BFR, -8.2, BMA, -5.6,  BBVA, -4.1, and GGAL,-3.6,

China, YAO, -3.0, ECNS, -2.1, with CHIX, -3.2,

Nikkei, NKY, -2.7,  with MTU, -2.1, MFG, -2.1, and SMFG, -2.0,

India, INP, -2.6, SCIN, -1.9, with IBN, -1.5, and HDB, -1.2

Brazil, EWZ, -2.5, EWZS, -2.5, with BBD -3.2, ITUB -2.5, and BSBR, -2.2, all on an unwinding Brazilian Real Japanese Yen currency carry trade, as is seen in the chart of BZF:FXY

Emerging Markets, EEM, -2.3, with EMFN, -1.2,

Taiwan, EWT -2.1, with its semiconductor manufacturers, TSM, -2.3, and ASX, -2.3

Spain, EWP, -2.0, with SAN, -3.1,

South Korea, EWY, -1.8, with KB -3.5, WF, -3.2, and SHG, -3.1,

Australia, EWA, -1.7, KROO, -2.0 with WBK, -1.6.

Ireland, EIRL, -0.5 with IRE, -1.6

Eurozone, EZU, -0.7 with EUFN, -1.7

Fox News reports Boeing Boosts Outlook Amid 12% Profit Growth. Boeing’s, BA,  profit jumped 12% in the third quarter, as the aerospace giant’s commercial aircraft unit outweighed softness at its defense business.

Reuters reports Chip Stocks Drop As Widespread Weak Demand Worries investors. Shares of semiconductor companies slumped after a host of underwhelming quarterly revenue forecasts left Wall Street concerned about lackluster demand in markets from industrial to smartphones. Chipmakers trading lower included ASX, TSM, SPIL, HIMX, NXPI, AVGO, INTC, ASML, ASMI, AMAT, KLAC, QCOM, SWKS, ADI, LSI, MRVL, MU, STM, XLNX, MX, HITT, FSL, CREE, IDTI, RFMD, FSL, TQNT, MSCC.

Reuters reports Chinese Shares Dip As PBOC Curbs Liquidity Chinese shares slipped in volatile trading as a further spike in China’s money-market rates tempered the effect of a survey showing a pickup in manufacturing. China’s benchmark seven-day repo rates opened up nearly a full percentage point at 5 percent after the central bank let cash drain from the money market for a second week.

Reuters reports Copper Falls On Worries Over China Tightening. Copper, JJC,  slid 2%  as fears of tighter monetary policy. Copper Miners, COPX, traded 2.6% lower on the day.

Commodities, DBC, -1.5%, with Oil, USO, -1.3%, Base Metals, DBB, -2.0%, and Copper, JJC, -2.3%.

Gold, GLD, -0.5%, and Silver, 0.5%, causing Gold Miners, GDX, and Silver Miners, SIL, -3.2%.

Aggregate Credit, AGG, traded unchanged as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly lower to 2.49%.

Lack of trust in what is turning out to be a mercurial Imperial President is one of many factors that has commenced the end of US Dollar Hegemonic Empire, and will be the a factor in the birth of regional governance in each of the world’s ten regions.

Annette Hauser of The Bertelsmann Foundation writes, The Erosion Of Transatlantic Trust.  And Thomas Seibert writes US Concerned After Turkey Buys Chinese Arms. And Benson te writes Saudi Arabia Cuts Ties with the US over Syria-Iran. After the US government has been forced by the public, aided by Russian President Vladimir Putin’s appeal, to stand down against attacking Syria, Saudi Arabia reportedly severed ties with the US.

And Hennigan with the WSJ writes Obama’s Credibility Is Melting. Here and abroad, Obama’s partners are concluding they cannot trust him. The collapse of ObamaCare is the tip of the iceberg for the magical Obama presidency. From the moment he emerged in the public eye with his 2004 speech at the Democratic Convention and through his astonishing defeat of the Clintons in 2008, Barack Obama’s calling card has been credibility. He speaks, and enough of the world believes to keep his presidency afloat. Or used to. All of a sudden, from Washington to Riyadh, Barack Obama’s credibility is melting.

Last weekend the diplomatic world was agog at the refusal of Saudi Arabia’s King Abdullah to accept a seat on the U.N. Security Council. Global disbelief gave way fast to clear understanding: The Saudis have decided that the United States is no longer a reliable partner in Middle Eastern affairs.

The Saudi king, who supported Syria’s anti-Assad rebels early, before Islamic jihadists polluted the coalition, watched Mr. Obama’s red line over Assad’s use of chemical weapons disappear into an about-face deal with Vladimir Putin. The next time King Abdullah looked up, Mr. Obama was hanging the Saudis out to dry yet again by phoning up Iran’s President Hassan Rouhani, Assad’s primary banker and armorer, to chase a deal on nuclear weapons. Within days, Saudi Arabia’s intelligence chief, Prince Bandar, let it be known that the Saudis intend to distance themselves from the U.S.

What is at issue here is not some sacred moral value, such as “In God We Trust.” Domestic politics or the affairs of nations are not an avocation for angels. But the coin of this imperfect realm is credibility. Sydney Greenstreet’s Kasper Gutman explained the terms of trade in “The Maltese Falcon”: “I must tell you what I know, but you won’t tell me what you know. That is hardly equitable, sir. I don’t think we can do business along those lines.”

Bluntly, Mr. Obama’s partners are concluding that they cannot do business with him. They don’t trust him. Whether it’s the Saudis, the Syrian rebels, the French, the Iraqis, the unpivoted Asians or the congressional Republicans, they’ve all had their fill of coming up on the short end with so mercurial a U.S. president. And when that happens, the world’s important business doesn’t get done. It sits in a dangerous and volatile vacuum.

Mike Mish Shedlock writes ECB President Mario Draghi Announces New Stress Tests; Translating Draghize.  When it comes to stress tests, especially for European banks, the one thing history suggests is the tests will be essentially stress-free, by design. Why should this time be any different?

Nonetheless, Bloomberg reports European Central Bank Mario Draghi Says ECB Won’t Hesitate to Fail Banks in Stress Tests. For those of you who do not speak Draghize, I offer these translations.

Draghize: “The region’s governments will be ready to fill any capital holes that emerge as a result of the stress tests.”

Mish: The region’s governments are totally unprepared to fill any capital holes that emerge as a result of the stress tests.

The ANSAMed Anna Foundation report Italy’s Debt Hits Record High Of 133.3% Of GDP In 2nd Quarter, indicates the true nature of Italy’s sovereign capability. Its level of Treasury Debt, suggests that it is an insolvent sovereign. Its seigniorage does not come from risk appraisal between bond buyers and sellers, but rather from the ECB’s monetary policies of LTRO 1 and 2, as well as OMT. And the only reason why it has fiscal capability is because of what amounts to seigniorage aid from the word, will and way of central banker Mario Draghi.

The Economist reports The Eurozone Is Blighted By Private Debt Even More Than By Government Debt And the Economist also reports It’s Not Just Sovereign Borrowing: There Are Too Many Zombie Firms And Over Indebted Households.

The Telegraph reports Citi Forecasts Greek Devastation, Unstoppable Debt Spirals In Italy And Portugal

The WSJ reports Italy’s Government Looks to Tap Pensions Funds

The reality is that the periphery European nations, specifically the PIIGS, that is Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns, and the European Financials, EUFN, are insolvent banks. These cannot provide stable governance; it is only through regional integration and regional governance, with a footprint of supervised banking, leading to a banking union, as well as fiscal union, and statist economic governance overseeing the factors of production, as well as commerce and trade, that regional security, stability, and sustainability can be achieved.

As reported above, with the Market Off ETN, OFF, trading higher, on Wednesday, October 23, 2013, reflecting that currency traders reversed course, and sold out of yen based carry trades, by calling the Yen, FXY, higher, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower, causing investors to deleverage out of Global Financial Institutions, IXG, which were led lower by the National Bank of Greece, NBG, and Spain’s Banco Santander, SAN, as well as Chinese Financials, CHIX, Argentina’s Banks, BFR, BMA, BBVA, GGAL, Brazil Banks, BSBR, BBD, ITUB, BBVA, BBDO, and South Korea’s Banks, KB, SHG, WF, reflecting investor conviction that the monetary policies of the world central banks are no longer able to stimulate global growth and trade, nor corporate profitability, nor nation investment, EFA, in any country, especially Greece, GREK, Ireland, EIRL, China, YAO, South Korea, EWY, Taiwan, EWT, India, INP, Australia, EWA, KROO, and Brazil, EWZ, EWZS.

Failure of confidence in the monetary policies of the world central banks, has enabled currency traders to sell the Brazilian Real, BZF, short, stimulating deleveraging not only of Brazil Banks, BRAF, but of out of Brazil, EWZ, Brazil Small Caps, EWZS, and Brazil Infrastructure, BRXX; funding of the latter is very much need for seaport and rail projects in this natural resource and agricultural exporter; but unfortunately state money goes to support sports stadiums, documenting the failure of liberalism’s crony capitalism.

And as reported, investors derisked out of Semiconductors, XSD, seen in this Finviz Screener, trading 3.3% lower on the day, on fears that underwhelming quarterly revenue forecasts reflect lack of demand, indicating the failure of global economic growth policies of the world central banks.

Not only out of sovereign insolvency and banking insolvency of the PIIGS, that is Portugal, Italy, Ireland, Greece and Spain, but also out of the quicksand of a mercurial imperial presidency, as well as a failure of the Milton Friedman Free To Choose, Floating Currency, Banker Regime, … the Ten Toed Kingdom of regional governance, with its toes of iron diktat and clay democracy, seen in the Statue of Empires of Daniel 2:25-45, which is synonymous with the ten headed, that is ten regional area centered and seven human institution headed, Beast Regime of regional governance and totalitarian collectivism  … is rising to rule mankind’s economic and political activity.

Wednesday, October 23, 2013, was a pivotal day in mankind’s economic and political history. The trade lower in World Stocks, VT, Nation Investment, EFA, Semiconductors, XSD, and Copper Miners, COPX, yield investments, such as Global Utilities, DBU, Global Real Estate, DRW, and Leveraged Buyouts, PSP, as well as in credit, specifically Short Term Bonds, FLOT, on Wednesday October 23, 2013, reflects that Jesus Christ is operating in the economy of God, Ephesians, 1:10, that is in the administrative oversight of all things economic and political, and has pivoted the world out of the paradigm of liberalism and into the paradigm of authoritarianism.

On October 23, 2013, Jesus Christ, fully opened the First of Seven Seals of The Scroll, Revelation 6:1, containing the details of the culmination of history, Revelation 1:1, which releases the First of the Four Horsemen of the Apocalypse, the Rider on the White Horse, who has a bow but no arrows, signifying his role in effecting a global coup d’etat, transferring sovereignty from nation states to nannycrats and regional bodies, as they come to rule in regional governance, in each of the world’s ten regional areas.

Liberalism was the Banker era of investment choice, which provided schemes of credit and carry trade investment, establishing a moral hazard based prosperity. But authoritarianism is Beast era of diktat, which provides schemes debt servitude, enforcing austerity.

Jesus Christ oversaw the former order and having perfected it, is now perfecting the new order. What was formerly an age of righteousness is now an age of iniquity, formerly providence now calamity, formerly democracy now dictatorship, formerly economic growth now economic deflation, formerly inflationism now destructionism, formerly choice now diktat, as the Lord announces His Advent to install His Millennial Kingdom.

The austrian economic dream of freedom and free things, such as free prices, and such as Hayek’s free market monetary system, is simply a mirage on the Authoritarian Desert of the Real.

The trade lower in World Stocks, VT, Semiconductors, XSD, and Copper Miners, COPX, established Wednesday, October 23, 2013, as an epic and pivotal day in economic and political history, as fears arose that the monetary policies of the world central banks have turned “money good” investment bad, which turned Major World Currencies, DBV, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, lower in value. The fiat money system died, and the diktat money system came into being with Mario Draghi promising reliable European bank stress tests, turning the financial markets from bull to bear.

The trade lower in Nation Investment, EFA, and Global Financials, IXG, seen in this Finviz Screener, on October 23, 2013, terminated democratic nation state sovereignty, and liberalism’s bank seigniorage.  Ireland, EIRL, and its Bank, IRE, were the defacto standard bearers of liberalism fiat wealth. Their stunning investment success came through carry trade investing in the EUR/JPY, as well as Mario Draghi providing Eurozone liquidity, by LTRO 1, 2, and OMT, sustaining Eurozone Debt, EU.  But now, both the nation of Ireland, EIRL, and its Bank, IRE, stand as white washed tombs on the prior age of investment choice. While the Irish complain vociferously of austerity, such successful sealing investment trading in Ireland’s Bank, IRE, driving its value parabolically higher 162% over the last year.

On October 22, 2013, Jesus Christ terminated liberalism’s  Creature from Jekyll Island, through the failure of currency carry trade investment, seen in the EURJPY and the AUDJPY trading lower, as well as the failure of credit, seen in the short term bond fund ETF, FLOT, trading lower. Jesus Christ operating through dispensation, that is the completion of every ear, epoch, era, and time frame, has ended the Fed.  He did what Ron Paul could not do. The Fed be dead, and its policies no longer provide stimulus, only death. The fiat asset inflation that came via the grand experiment by the US Federal Reserve policies of monetary intervention is over, finished and done. Fiat asset deflation has arrived and is bearing down on the World Financial Institutions, IXG, and on currency trading and credit sensitive nations, such as Brazil, EWZ, EWZS, and India, INP, SCIN, and China, YAO, ECNS, with Brazil Financials, BRAF, India Earnings, EPI, and China Financials, CHIX, leading lower.

On October 22, 2013, Jesus Christ gave birth to authoritarianism’s Beast Regime of regional governance and totalitarian collectivism, through the Mario Draghi announcement of plans for European banking supervision.

News events clearly reflect the fulfillment of bible prophecy. As presented in Revelation 13:1-4, Jesus Christ has designed the Beast Regime to be the ultimate predator, having feet of a bear, the mouth of a lion, and camouflage of a leopard.  It’s feet have emerged in the European banking supervision system; its feet enable the monster to stand upright against all enemies, as well as to run down and trample all naysayers; and its claws enable it to root out and tear apart all opposition.

On Thursday, October 24, 2013, a massively long enduring market top formed as some sectors rose to new market highs.

Sectors rising strongly included US Infrastructure, PKB, such as TSCO, EXP, WIRE, TEX, USG, APOG, MHK, WHR, LII, TRW, PKG, ADS, CBI, PPG, PRIM, CSL, WSO, CTAS, RS, STLD, WOR, FMC, Small Cap Pure Value, RZV, such as STMP, CKEC, Global Industrial Producers, FXR, such as ABB, SI, TRS, MMM, TYC, ITW, ROK, ROLL, ENS, DXPE, HON, GGG, Defense And Aerospace, PPA, such as NOC, Transportation, XTN, Global Consumer Discretionary, RXI, such as CMCSA, DIS, FOXA, STRZA, TWX, VIAB, and Consumer Credit Companies, seen in this Finviz Screener.

Of note, Lloyds Group, LYG, rose strongly to a new high, taking the UK, EWU, to a new rally high. Regional Banks, KRE, such as GBCI, FIBK, SBNY, CITZ, CBIN, BOH, LKFN, Investment Bankers, KCE, Asset Managers, such as BLK, seen in this Finviz Screener, Mortgage REIT, SFI, and Specialty Financier, Icahn Enterprises, IEP, rose to new rally highs.

The EUR/JPY closed at 134.29.

The AUD/JPY closed at 93.56.

The BRICS, EEB, traded lower again today, as Brazil, EWZ, Brazil Small Caps, EWZS, Brazil Infrastructure, BRXX, Brazil Financials, BRAF, India, INP, SCIN, India Earnings, EPI, traded lower on a falling Brazilian Real, BZF, and on a falling India Rupe, ICN, and as Chinese Financials, CHIX, traded strongly lower.

US Health Care Providers, IHF, seen in this Finviz Screener, traded lower.

On Friday, October 25, 2013, World Stocks, VT, and Nation Investment, EFA, traded lower from their Tuesday October, 22, 2013, confirming the pivot of Stocks, VT, Nation Investment, EFA, Major World Currencies, DBV, and Emerging Market Currencies, CEW, from their recent rally highs, as well as establishing the pivot of the world’s democratic nation state economy from liberalism into regional governance and totalitarian collectivism beginning with the announcement of ECB oversight of 130 European Banks.

Yield Bearing Sectors trading higher today included

Utilities, XLU, 1.1%

Real Estate, IYR, 1.0

Industrial Office REITS, FNIO, 1.0

Ultra Junk Bonds, UJB, 1.0

Sectors trading higher today included

Gold Miners, GDX, 1.0

Silver Miers, SIL, 1.0

Sectors trading lower today included

Solar Stocks, TAN, -4.5%

Industrial Miers, PICK, -1.7

Paper Producers, WOOD, -1.2

Automobiles, CARZ, -1.0

Nations trading higher today included

INdonesia, IDX, 3.0%, IDXJ, 3.0

Greece, GREK, 1.8

Malaysia, EWM, 1.3

Norway, NORW, 1.3

Egypt, EGPT, 1.1

Turkey, TUR, 1.0

Philippines, EPHE, 1.0

Thailand, THD, 1.0

Nations trading lower today included

Argentina, ARGT, -1.4

Nikkei, NKY, -1.5

Spain, EWP, -1.0

Italy, EWI, -1.0

The Interest Rate on the US Ten Year Note, ^TNX, closed the week at 2.50%

The EUR/JPY closed the week at 134.40, with the Euro, FXE, closing at 136.58, and the Yen, FXY, closing at 100.35.

The AUD/JPY closed the week at 93.35.

The stock market bubble of all times has formed as is seen in the leverage off stocks, ETFs, and mutual funds over debt.

World Stocks relative to Aggregate Credit, VT:AGG

Eurozone Stocks relative to EU Credit, EZU:EU

Nation Investment relative to World Treasury Bonds, EFA:BWX

Vice Stocks relative to Distressed Debt, VICEX:FAGIX

A summary of this week’s trading presents the following trading activity

World Stocks, VT, +0.6; a market top on Tuesday, October 22, 2013

Naton Investment, EFA, +0.6; a market top on Tuesday, October 22, 2013

Global Financials, IXG, -0.4; a blow off market top on Wednesday, October 23, 2013

Financials

IXG, -0.4

EMFN, -1.9

EUFN, -0.2

FEFN, -0.4

RWW, -0.7

KRE, +0.9

IAI, +0.4

KCE, +1.6

CHIX, -5.1 Benson te writes PBoC Tapers: China’s Interest Rate Markets Under Pressure

EPI, -0.5

BRAF, -2.3

Credit Services, AXP, MA, and V, rose to new all time highs this week.

Regions

EEB, -2.4

EEM, -1.3

VTI, +0.8

EZU, +0.8

EPP, -0.1

Nations

SPY, +0.9 ; the chart of the S&P 500, $SPX, shows a likely grand finale top of $,1759

IWM, +0.4

NKY, -2.4

EWI, -1.4

EWP, -1.4

EIRL, -0.1

EWN, +1.7

EWG, +2.4

EWGS, +1.7

GREK, +0.4

EWU, +1.8

EWUS, +0.4

TUR, +0.5

EGPT, +2.3

EWA, +0.6

KROO, +0.2

THD, -2.2

ENZL, -0.5

EWY, -1.6

EWT, -1.3

EPHE, -1.4

EWM, +1.8

ENZL, -0.6

ARGT, -0.4

The BRICS

EWZ, -0.9

EWZS, -2.0

RSX, -0.7

ERUS, -1.2

INP, -0.6

SCIN, -0.4

YAO, -3.4

ECNS, -2.1

Sectors

XTN, +2.4

FXR, +1.9

PSCI, +0.8

IGN, -3.1

PICK, +0.8

URA,  +6.2

REMX, -0.5

KOL, +1.0

WOOD, -1.4

GDX, +2.8, as GLD, +2.8

SIL, +7.1, and SSRI, 7.4, as SLV, +2.8

FLM, +0.4

SOCL, -4.3

RXI, +1.1

IBB, +2.3

RZV, +0.9

CARZ, -1.2

TAN,  -4.5

XSD, -4.2

SLX, -0.1

PKB, +2.5

KXI. +1.2

RXI, +1.4

IYC, +1.8

XRT, +0.1

BJK, -0.9

IHF, -2.3

PPA, +2.4, as BA, +7.1

IBB, +5.2

FPX, -0.1

PBS, -0.2

CSD, +1.8

FDN, -0.5

PNQI, -0.9

PJP, +0.9

Energy Sectors

PSCE, -1.4

XOP, -1.8

OIH, -1.7

Yield Bearing Sectors

XLU, +2.0

DBU, -0.3

PSP, +0.8

IYR, +1.7

FNIO, +1.5

REZ, +1.2

DRW, -0.3

IST, -1.0

Junk Bonds

JNK, +0.3

UJB, +1.4

Credit

FLOT,  +0.02

Aggregate Credit, AGG,  +0.2

Spot Gold, $GOLD, closed at $1,352; and the US Dollar, $USD, at 79.26

Christopher Thompson of FT writes “A burst of investor ‘animal spirits’ has boosted the value of mergers and acquisitions-related bonds to the highest raised since the financial crisis. Global acquisition-related bond issuance from non-investment grade, or high yield, companies has risen by 15% to $62.9bn for the year to date compared with the same period in 2012. This is the highest amount since 2007, according to Dealogic. Overall, global high yield issuance rose 18% for the year to date to $395.5bn, the highest ever. Much of the issuance came from Europe, where there have been signs of a tentative economic recovery in some areas since the height of the debt crisis, while many of the regions’ banks have been deleveraging.”

Business Insider posts Global Bellwether Caterpillar Had A Bad Quarter And Its Outlook Stinks.

Reuters reports US Jobless Claims Stay Elevated, Manufacturing Slows.

Market Watch posts Looming China Debt Crisis Resurfaces As A Market Fear

Zero Hedge writes There Will Be No Place To Hide

Prison Planet posts Gerald Celente Warns Of Collapse In 2014

Otterwood Capital writes A Crash Caused By Excess Debt. Wait, Haven’t We Already Seen This?

24hGold Gold And Silver As Standards Of Value

Robert Wenzel of Economic Policy Journal posts Carl Icahn’s Advice in the Age of Ben Bernanke

Shaun Richards asks Can Italy reverse the economic decline of the last twenty years?

3) … Dollar Collapse reports in its  Clean Tech News section

Grid-scale energy storage to support and compete with conventional generation – GreenTech Media

California passes huge grid energy storage mandate – GreenTech Media

Vivint adds half a billion dollars to residential solar finance surge – GreenTech Media

SolarCity PV deployments boom, more growth expected – Solar Plaza

First Solar to build California solar plant for Nextra – Solar Plaza

4) … An inquiring mind asks what is economics?

Benson te writes correctly Economics Isn’t A Science, And Never Will Be.

I comment relating that some ask me, are you a Republican or a Libertarian? I reply neither, I Am a reformed Christian, that is one remade by God, and a recovered Christian, one living in recovery of grace and truth. Those of political party will exist having political movement of some type to the end of this age. I have no fiat identity; rather I have identity out of Christ’s life, and life experience out of the His indwelling Spirit.  Republicans and Libertarians both know “will worship”, that is they worship out of their will, things of human philosophy, whereas I worship Chris’s will, out of respect for Scripture, and know a movement of His Holy Spirit. I add that Republicans and Libertarians will forever be divided on moral issues such as what constitutes life and same sex marriage, and they both will forever be divided on economic issues, that is ethical issues.

Economics is synonymous with ethics, as when one says he has economic regard on an issue, he is saying he has ethical regard on the issue. Every person acts in dispensation, that is in household administration of things civil, monetary and political, and these action come from one’s convictions in philosophy or religion. Thus economics is either a philosophy or a religion; economics is defined as the quality and type of ethical experience present between a person, and another or others, corporations and the state, that is government. Obamacare, that is HealthCare.Gov, tops the list as unethical experience, as Ilana Mercer writes in Economic Policy Journal Obamacare Is An Enterprise In Failure And Fraud.

An Benson te writes Quote of the Day: Law Is The Unconscious Creation Of Society  Law is not a body of commands imposed upon society from without, either by an individual sovereign or superior, or by a sovereign body constituted by representatives of society itself.  It exists at all times as one of the elements of society springing directly from habit and custom.  It is therefore the unconscious creation of society, or in other words, a growth.

This is from page 21 of the American Bar Association’s publication of James C. Carter’s 1890 essay “The Ideal and the Actual in the Law“. The source of the above quote Café Hayek’s prolific blogger and economic professor Don Boudreaux expounds on the James Carter quote

Legislators are legislation-makers; they are not lawmakers. True law can no more be consciously designed and created outside of the myriad social interactions that give rise to true law than can a true price be consciously chosen outside of the myriad economic interactions that give rise to true prices.  Commands that look to some people like law can be, and are, consciously designed and created.  But these are not law.  And because commands typically run against the spontaneous forces that give rise to law, such commands are typically against the law – just as a government-imposed price (or price control) results in something that looks like a price but is, in fact, not a true price at all.

European Federalist Foundation Bertelsmann Stiftung, and The Spinelli Group, present the book A Fundamental Law of the European Union. The financial crash and lengthy economic recession have tested the institutions of the European Union as never before. Debate about the future of Europe has polarized: Some want no more integration; others campaign for disintegration. Those who believe in deeper unity and a stronger federal Europe have yet to make their case. “A Fundamental Law” does this by offering a prospectus for radical reform. It amends the Lisbon Treaty to make the government of the EU more powerful and democratic. It embraces banking and fiscal union while showing the way forward to a legitimate settlement of Europe’s constitutional dilemma. Ten years after the Convention on the Future of Europe proposed its constitutional treaty, the Spinelli Group of federalist MEPs has drafted comprehensive proposals for an ambitious new treaty. Anyone who wonders how a more united Europe should best be governed should read this. The members of the next Convention will.

To both the above authors, I respond that I operate by the law of the Spirit of Life in Christ, as I know God, and He speaks to me,  While, I do not hear a voice in my head, I feel after God in my spirit and have consciousness therein, and write about economics, that is ethics; specifically I write the Dispensation Economics Manifest which presents the foundation for a life of virtue and godly ethics, establishing the elect as separate from the fiat, who live in carnality and iniquity.

The Dispensation Economics 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. This contemporary form of dispensationalism presents Fifteen Corollaries, that is Fifteen New Things, which are coming by the Economy of God to establishing the New Normal.

On Wednesday October 23, 2013, Jesus Christ pivoted World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower from their recent rally highs, and is so doing pivoted the world out of the paradigm of liberalism, which featured the democratic nation state banker economy, and into the paradigm of authoritarianism, which features the regional governance and totalitarian collectivism beast economy. In so doing he destroyed the fiat money system and introduced the diktat money system.

Corollary #1 of the Dispensation Economic Manifest presents that the former paradigm featured bankers, corporations, government, entrepreneurs, and citizens of democracies, as the legislators of economic value and the legislators of economic life.  Now, under authoritarianism, currency traders, bond vigilantes and nannycrats working in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

The rule of law, consisting of constitutions and national laws, of the state banker system increasingly exists as tombstones of the bygone era of liberalism. Regional framework agreements serve as law for the nannycrat beast system of regional governance and totalitarian collectivism in the era of authoritarianism. Libertarians perceive of themselves as sovereign individuals, but there be only One Sovereign, that is Jesus Christ. On October 23, 2013, He opened the First Seal, Revelation 6:1-2, of the Scroll, Revelation 1:1, and released the Rider on The White Horse, who has a bow without any arrows, to effect global coup d’etat, passing the baton of sovereignty from sovereign nation states to sovereign regional nannycrats, such as Mario Draghi, and sovereign regional bodies, such as the ECB.

While, I’ve taken only three college courses in economics, Economics 101, 102, and 103, I took a lot of accounting courses, to graduate from Metro State College in Denver with a B.S. Degree in Accounting. And through recent reflection I’ve come to understand that with the trade lower in World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, on October 23, 2013, Jesus Christ is operating in what Apostle Paul presents as the Economy of God in Ephesians 1:10, to open the First Seal, Revelation 6:1-2, of the Scroll, Revelation 1:1, to do away with the economic law known as the Double Entry Bookkeeping System and establish His Millenium Kingdom.

Thus, the Jesus Story, that is the Jesus Narrative. Jesus Christ is going to wipe out 6,000 years of what will be a number of global empires, so as to establish a His Kingdom on planet earth for a Sabbath’s Day’s Rest for humanity. We are on the dawning of the New Age, we are entering the Third Day, and as Jesus Christ promised that on the Third Day, he would raise up His Body, that is His Church.  It is as the Apostle Peter who relates, that with the Lord, a day is as a thousand years, and a thousand years are as a day. Most definitely it has been two one thousand year days, and on the Third Day, Jesus Christ is going to resurrect the saints to rule and reign with Him for a thousand years. What a glorious day it will be.

Jesus Christ, in opening the First Seal of The Scroll, is commencing the greatest liberation movement the world has even seen or will see. He, by releasing the Four Horsemen of The Apocalypse, is acting as The Great Liberator, as He is returning to set mankind from sin, that is doubt, and death. Genuine Liberalism, that is the movement of setting mankind free from the state, is commencing.

5) … The short selling opportunity of a lifetime has emerged as the financial markets have turned from bull to bear the week ending October 23, 2013.

Not only did the S&P 500, but the Morgan Stanley Cyclical Index, ^CYC, which is approximated by Global Industrial Producers, FXR, and Vice Stocks, traded by the Fidelity Mutual Fund, VICEX, rose to a new all time high, while the Bear Market Fund, Grizzly Short Fund, GRZZX, traded to a new all time low. The June 24, 2013 to October 22, 2013 stock market rally, known as the PBOC Monetary Stimulus, and No Taper, and ECB Bank Supervision Rally, came to an end on October 23, 2013, as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, traded lower in value.

Bespoke Investment Group posts As Bullish Sentiment Is Rising, Bearish Sentiment Plummeted To 17.6%, which is the lowest reading since January 2012! We just sent out a report to clients showing how the S&P 500 has performed following prior periods in the current bull market where bearish sentiment dipped below 20%. Clients can view the report by clicking on the link below. If you are not currently a client, sign up today for a five-day free trial and instant access. Bearish Sentiment Declines Below 20%.

The Great Bear Market of 2013, commenced on October 23, 2013, as evidenced in the Market Off ETN, OFF, rising in value. In a bull market one buys into dips; in a bear market one sells into pips.

A short selling strategy: one could sell short the 40 ETFs/ETNs, IBB, PNQI, FDN, TAN, BJK, RZV, FPX, IST, FLM, CSD, PBS, IAI, PSCI, XTN, FXR, CARZ, XRT, EUFN, PJP, SMH, WOOD, PSP, RWW, PPA, SLX, RXI, ENZL, EIRL, GREK, EWP, YAO, TUR, ARGT, EPHE, SCIN, THD, EGPT, EWZS, EWY, UJB, seen in this Finviz Screener, for great future reward as these are high beta risk averse ETFs. And one could use the 10 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, what I term the market vane ETFs, as the basis for one’s margin account, as these will increase in value with rapidly growing financial instability, as carry trades, such as the EUR/JPY and the AUD/JPY start to aggressively unwind, and as credit becomes more expensive, as will be seen in the Short Term Bond ETF, FLOT, trading lower in value.

6) … Summary

On Friday October 25,2013, The stock market bubble of all times has formed as is seen in the leverage off stocks, ETFs, and mutual funds over debt.

World Stocks relative to Aggregate Credit, VT:AGG

Eurozone Stocks relative to EU Credit, EZU:EU

Nation Investment relative to World Treasury Bonds, EFA:BWX

Vice Stocks relative to Distressed Debt, VICEX:FAGIX

A summary of this week’s trading presents the following trading activity

World Stocks, VT, +0.6; a market top on Tuesday, October 22, 2013

Nation Investment, EFA, +0.6; a market top on Tuesday, October 22, 2013

Global Financials, IXG, -0.4; a blow off market top on Wednesday, October 23, 2013

The chart of the S&P 500, $SPX, SPY, shows an Elliott Wave V High Top at  $,1759

Please consider The Dispensation Economics Manifest, which 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. This contemporary presentation of dispensationalism presents Fifteen Corollaries, that is Fifteen New Things, which are coming by the Economy of God to establishing the New Normal.

On Wednesday October 23, 2013, Jesus Christ pivoted World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower from their recent rally highs, on fears that the world central banks’ monetary policies are no longer able to stimulate global growth and trade, nor able to maintain corporate profitability, nor secure ongoing democratic nation state treasury values, and is so doing pivoted the world out of the paradigm of liberalism, which featured the democratic nation state banker economy, and into the paradigm of authoritarianism, which features the regional governance and totalitarian collectivism beast economy. In so doing he destroyed the fiat money system and introduced the diktat money system.

The ANSAMed Anna Foundation report Italy’s Debt Hits Record High Of 133.3% Of GDP In 2nd Quarter, indicates the true nature of Italy’s sovereign capability. Its level of Treasury Debt, suggests that it is an insolvent sovereign. Its seigniorage does not come from risk appraisal between bond buyers and sellers, but rather from the ECB’s monetary policies of LTRO 1 and 2, as well as OMT. And the only reason why it has fiscal capability is because of what amounts to seigniorage aid from the word, will and way of central banker Mario Draghi.

The reality is that the periphery European nations, specifically the PIIGS, that is Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns, and the European Financials, EUFN, are insolvent banks. These cannot provide stable governance; it is only through regional integration and regional governance, with a footprint of supervised banking, leading to a banking union, as well as fiscal union, and statist economic governance overseeing the factors of production, as well as commerce and trade, that regional security, stability, and sustainability can be achieved.

News reports detail the development of Eurozone regional governance. Eventually a One Euro Government, that is a European Super State, featuring a fiscal union, led by nannycrats will provide fiscal policy governance, based upon schemes of debt servitude, where money and credit will closely controlled through a banking union, MSNBC reports EU Parliament Approves Legislation Creating A Single Banking Framework For the Eurozone … Bloomberg reports the development of the Eurozone of a fiscal union relating Euro Capitals Tighten Fiscal Leash as EU Starts Austerity … Reuters reports the foundation of a banking union relating The ECB names 130 European Banks for supervision.

William F. Jasper provides a history of efforts that have been leading the development of a Federal Europe in New American article United States Of Europe:An End To Nationhood. Mr Jasper highlights Hilaire du Berrier who presented a story from the diary of Joseph Retinger that illustrates how the CFR’s agents built the movement for European merger.

Retinger was seeking more funds for the European Movement, which was headed at the time by Belgian Prime Minister Paul Henri Spaak, who was known as “Mr. Socialist. Joseph Retinger recruited Prince Bernhard of the Netherlands to host the meeting at the Hotel Bilderberg in Oosterbeek, Holland in May 1954, that launched the annual secretive Bilderberg conclaves, at which the international ruling elite meet to scheme and palaver.The first concrete step forward in the plan for abolition of the European nation-states came in 1951 with the signing of the treaty creating the European Coal and Steel Community (ECSC).

In his valuable research, Mr. Jasper provides details of how numerous individuals contributed to the development of the European Union, naming for example Monsieur Monnet, whom columnist Joseph Alsop (CFR) dubbed “the good, gray wizard of Western European union,” was appointed the first president of the powerful new ECSC.

Monnet knew full well just how powerful and revolutionary his new creation was. The Brombergers report in Jean Monnet and the United States of Europe that, when Monnet and his “brain trust” had outlined the basics of the ECSC proposal, they called in legal expert Maurice Lagrange to take care of the detail work:

Lagrange was stunned. An idea of revolutionary daring had been launched and was being acclaimed by the Six and the United States, a minerals and metals superstate.

The brain trust worked feverishly from ten o’clock in the morning until midnight, without taking Sundays or holidays off, not even Christmas day. Even the secretaries and the office boys were infected by the general excitement, by the feeling that they were part of a fantastic undertaking.

The Brombergers, who are ardent admirers of Monnet, admit the totalitarian mindset of their hero.

Gradually, it was thought, the supranational authorities, supervised by the European Council of Ministers at Brussels and the Assembly in Strasbourg, would administer all the activities of the Continent. A day would come when governments would be forced to admit that an integrated Europe was an accomplished fact, without their having had a say in the establishment of its underlying principles. All they would have to do was to merge all these autonomous institutions into a single federal administration and then proclaim a United States of Europe.

The next nail in the coffin of national sovereignty came on March 25, 1957 with the signing by the six ECSC nations of the two Treaties of Rome. These created the European Economic Community (EEC, or Common Market) and the European Atomic Energy Community (Euratom), which greatly furthered the merging of the economic and energy sectors of the member states. (The ECSC, Euratom, and EEC are now collectively referred to as the European Community or EC.) “The EEC Treaty,” said Carroll Quigley, “with 572 articles over almost 400 pages … looked forward to eventual political union in Europe, and sought economic integration as an essential step on the way.” But the merger architects settled on an approach of “patient gradualism”; what Richard N. Gardner (CFR) would later call “an end run around national sovereignty, eroding it piece by piece.” According to the late Professor Quigley, “This whole process was to be achieved by stages over many years.”

The next stages involved bringing the rest of Western Europe into the fold. In 1973, after more than two decades of resisting, the United Kingdom came in, along with Ireland and Denmark. Greece joined in 1981, bringing the number of member states to ten. Spain and Portugal became the 11th and 12th members in 1986.

The CFR spared no expense in aiding its European co-conspirators, especially Jean Monnet, to establish their dreamed-of Brave New World. A very enlightening source on this phenomenon is Insider Ernst H. van der Beugel, Honorary Secretary General of the Bilderberger Group, Vice Chairman of the Netherlands Institute for Foreign Affairs (a CFR affiliate), Harvard lecturer, etc. In his book From Marshall Aid to Atlantic Partnership, van der Beugel explained, Not only has Monnet been the auctor intellectualis of many steps on the road to European unification, he has also been a driving force in the execution of existing plans. His most remarkable capacity has been his great influence on the formulation of United States policy towards Europe. He exercised this influence through a network of close friendships and relationships, some of them going back to the pre-war period.

The principal assaults underway now include the campaigns for a European central bank, led by French President François Mitterrand, and the unified value added tax (VAT) being pushed by Jacques Delors. The major opposition to both schemes has come from Britain’s Margaret Thatcher. “A European Central Bank, in the only true meaning of the term, means surrendering your economic policy to that banking system,” said the British Prime Minister in October of 1988. “I neither want nor expect ever to see such a bank in my lifetime — nor, if I am twanging a harp — for quite a long time afterwards.”

But there are indications that the “Iron Lady” may have weakened on this matter. Du Berrier, in a recent telephone interview with The New American,  expressed grave concern over rumors that Mrs. Thatcher “may have cut some sort of deal with Mitterrand on the issues of a central bank and a common currency” during her visit with the French socialist president in Paris at the end of February.

Basil Venitis in Venitism, a blog calling for a new libertarian paradigm which integrates politics, economics, ethics, and spirituality, weeps European Countries Are Losing Their National Sovereignty.

We want the Netherlands not just out of the Eurozone, but out of the EU altogether, including the so-called Schengen area, the group of 26 European countries that have abolished passport and immigration controls at their common borders. We reserve the right to reinstall random border controls. We want to retain our independence. We want home rule! We want to be the masters in our own house! We want to be the masters over our own borders. We want to be the masters of our own money. The Party for Freedom wants the Netherlands to leave the EU and join the European Free Trade Association EFTA. But here is the good news, my friends.

We seem to be on the eve of a major and truly historic event. In Europe, the time is ripe for a glorious democratic and non-violent revolution to preserve our national freedoms and restore our sovereignty.

Next year’s European elections offer a unique opportunity to liberate the nations of Europe. Next Spring’s European elections offer a unique chance to correct the fatal error made by previous politicians who sold away their taxpayers’ money and their national sovereignty to Brussels.

As a European politician, I am fully aware of my duty to grab this chance. The European elections next May must deal a blow to the parties that sold us out to the EU. Not just in the Netherlands. But everywhere in Europe. That is why I do what is in my power to forge an alliance of democratic parties standing for the restoration of the sovereignty and freedom of their nation. I want to bring these parties together in a common endeavor to defend our identity and our values. I do not know whether I will succeed, but I am trying. It is my conviction that we have to work together. Because we are all in the same boat.

My friends, it is easy to despair. Time is running out for Britain, for France, for Germany, for the Netherlands, for all the other great nations of Europe. The present situation in Europe is bleak. If we do nothing, it will become even bleaker. If we do nothing we will be swept away by economic and demographic disaster. The nation-state is the political body in which we live. We must preserve and cherish it. So that we can pass on to our children our national identity, our democracy, our liberty.

Fraser Cameron, Senior Adviser, European Policy Centre, Adjunct Professor, Hertie School of Governance, Berlin posts in CFR Blog The European Union As A Model For Regional Integration. This essay examines the state of the European Union post-Eurozone crisis, and assesses the European Union’s prospects as a model for regional integration efforts around the globe.

I relate, the rule of law, consisting of constitutions and national laws, of the state banker system increasingly exist as tombstones of the bygone era of liberalism.  Regional framework agreements serve as law for the nannycrat beast system of regional governance and totalitarian collectivism in the era of authoritarianism. Libertarians perceive of themselves as sovereign individuals, but there be only One Sovereign, that is Jesus Christ.

On October 23, 2013, He opened the First Seal, Revelation 6:1-2, of the Scroll, Revelation 1:1, and released the Rider on The White Horse, who has a bow without any arrows, to effect global coup d’etat, passing the baton of sovereignty from sovereign nation states to sovereign regional nannycrats, such as Mario Draghi, and sovereign regional bodies, such as the ECB, as the June 24, 2013 to October 22, 2013 stock market rally, known as the PBOC Monetary Stimulus, and No Taper, and ECB Bank Supervision Rally, came to an end with World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, trading lower in value, on the ECB announcement of ECB oversight of 130 European Banks.

Liberalism’s banker regime is being replaced by authoritarianism’s beast regime; as foretold in bible prophecy of Revelation 13:1-4.  All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The periphery nations, that is the PIIGS, will exist as hollow moons revolving around planet Belgium and planet Germany. The Portugese, Irish, Italians, Greeks and Spaniards, can be neither Belgians nor Germans, yet all will be one, living in a gulag of austerity and debt servitude existing under the word, will, and way of sovereign regional technocrats.

The only two forms of sovereign and sustainable wealth are diktat, and the physical possession of gold and silver bullion. Jack Chan writing in Safehaven chart article, This Past Week in Gold, gave his buy signal to the Gold ETF, GLD.

Advertisements

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: