World Central Banks Roll Out New Policies And Tools To Establish The Antifragile Financial System … These Integrate Banks Into The Government … Banks Once Integrated Into The Government Will Serve As The Foundation For Regional Governance Replacing Nation State Democratic Rule

Financial market report for he week ending Friday November 1, 2013

1) … A collateral crisis will escalate into a global credit crisis and worldwide financial system breakdown which will prompt nannycrats to establish regional governance … Beginning first with a banking union, fiscal union, and deep economic union being established in the eurozone.

Shaun Richards communicates that the UK Central Bank plans to provide limitless credit. The UK Is Open For More Banking Business Says Mark Carney  Yesterday the vast majority of those who were considering the UK economy would have been speculating as to how fast the UK economy was growing and what speed would be announced today. However one person instead woke up and decided that the UK banking sector needed more support! As it was Mark Carney the Governor of the Bank of England who was echoing the Brian Clough claim to be in a class of one I intend to put his new plans under the microscope.

What did Mark Carney say? At the occasion of the 125th anniversary of the Financial Times the opening sound hopeful. “Fairness demands the end of a system that privatises gains but socialises losses. And simple economics dictates that the UK state cannot stand behind a banking system that is already many times the size of the economy.”

But as we examine the revised Sterling Monetary Framework, SMF, which was announced, we see that in fact it is the intention to do exactly the reverse. For example see this:

“Five simple words describe our approach: we are open for business. We are offering money and collateral for longer terms. The range of assets we will accept in exchange will be wider, extending to raw loans and, in fact, any asset of which we are capable of assessing the risks. And using our facilities will be cheaper. In some cases the fees are being more than halved. Banks can be confident that, when they want to use our facilities, they will be allowed to access them.”

Let me give you the crucial words here ….. longer ….. cheaper ….. any asset ….. banks

How did the credit crunch begin? The credit crunch began through the misvaluation of Mortgage Backed Securities in the United States as AAA credit.

Now can anyone see the danger in the Bank of England doing this?

I relate that I see plenty of risk in the revised Sterling Monetary Framework, SMF, announced by BoE Chairman Mark Carney.

The credit crunch which came through the misvaluation of Mortgage Backed Securities as AAA credit, caused the Financial Crisis of 2007–08; this debacle was resolved, or perhaps better said carried to a whole new level of credit overvaluation, as investors came to trust in an ever expanding set of liberalized world central banks’ monetary policies for the purpose not only of global financial system recovery, but also for leverage speculative investing via a pursuit of yield as is seen in Ultra Junk Bonds, UJB, Junk Bonds, JNK, and the short term bond, FLOT, trading higher in value, as well as in the EUR/JPY and the AUD/JPY, trading higher in value. The reinvigoration of credit after the 2008 financial collapse, formerly began when the US Fed took in distressed investments, such as those traded by the Fidelity Mutual Fund FAGIX, with the start of QE1, which stimulated the value of Excess Reserves to skyrocket, and which has driven up risk assets such as Solar Energy, TAN, Social Media,  SOCL, and Small Cap Pure Value, RZV, to their peak value.

On  the week ending Friday, October 25, 2013, World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower from their rally highs, thus pivoting the world from the economic paradigm of liberalism, based upon democratic nation states, and into the economic paradigm of authoritarianism, based upon regional governance and totalitarian collectivism, which came upon the European Parliament and ECB announcement of banking oversight of European Banks. This epic event, that is the beginning of the supervision of 130 European Financial Institutions, EUFN, literally terminated the Milton Friedman Free To Choose banker regime, and birthed the beast regime of regional governance and totalitarian collectivism foretold in bible prophecy of Revelation 13:1-4, and which is synonymous with the Ten Toed Kingdom, seen in Daniel’s Statue of Empires prophecy of Daniel 2:25-45.

Providing limitless credit to UK, EWU, banks, such as LYG, RBS, BCS, and HBC, at the time of a financial market turn lower, is not going to provide economic stimulus; limitless credit is only going to help the banks and integrate the banks with government.

Documentation that on Friday, October 23, 2013, the financial markets, pivoted from risk-on to risk-off, is seen in the Market Off ETN, OFF, trading higher. Very soon, there is coming a global credit bust and financial system breakdown, foretold in bible prophecy of Revelation 13:3-4; this is termed by some as the Financial Apocalypse.

Nannycrats will act to tightly integrate banks of all types, everywhere into government; these will be know as the government banks or gov banks for short, and in so doing there will be a great tidying up of the banks Excess Reserves at the US Fed; those funds will not ever be released into the economy.  The UK’s banks LYG, RBS, BCS, and HBC, will be integrated into the UK Government. And the US Banks, JPM, BAC, WFC, GS, MS, and C, will be integrated into the US Federal Reserve.

Much like the UK’s central bank in providing limitless credit, Mike Mish Shedlock reports New Tools! More Pure Bank Profit!

The Fed is pumping money into the economy at a rate of $85 billion a month. Banks cannot use the money and are not lending it. The money piles up as excess reserves and the Fed (taxpayers) pays interest on excess reserves.

Nonetheless, the Fed has a clever idea! It proposes a new tool to pay banks even more interest on money banks don’t lend and cannot use (as an alternative to shrinking money supply).

New Tools! With little fanfare or analysis by mainstream media as to what is really happening, Bloomberg reports Fed Gets Bigger in Markets as QE Prompts New Tools; Enter The Fixed Rate Full Allotment Reverse Repo Facility. The Federal Reserve is getting more involved in debt markets as it tries to compensate for the impact of its almost $4 trillion balance sheet on short-term interest rates.

Policy makers are testing a new tool intended to improve their control of near-term borrowing costs. The facility would allow banks, broker-dealers, money-market funds and some government-sponsored enterprises to lend the Fed unlimited amounts of cash overnight at a fixed rate in exchange for borrowing Treasuries in so-called reverse repo transactions.

The facility is the latest innovation from a central bank that has participated on an unprecedented scale in U.S. debt markets since the credit crisis began in 2007. It’s designed to help policy makers, buying $85 billion of bonds a month, siphon off excess cash in the banking system when they begin to tighten policy. Three rounds of so-called quantitative easing have enlarged the Fed’s balance sheet to almost $3.8 trillion.

The new tool, called the fixed-rate, full-allotment overnight reverse repo facility, also is aimed at helping Fed officials address distortions in the market caused by their securities purchases.

“It will serve to put whatever floor they want under rates,” said Lou Crandall, chief economist at Wrightson ICAP LLC in Jersey City, New Jersey. “You’re providing pretty broad-based access to Fed balances as an investment option.”

While the Fed gained the ability in 2008 to pay interest on cash it holds in the form of excess bank reserves, that tool has limited effect in anchoring borrowing costs because only banks could park their funds at the central bank, Crandall said. By now offering to pay a fixed rate to a wider range of counterparties for their cash overnight, policy makers should be able to improve their control of near-term rates, he said.

“By offering a new, essentially risk-free investment, one would expect that anyone with access to such a facility would generally be unwilling to lend instead to someone else” at a lower rate, New York Fed President William C. Dudley said in a speech in New York Sept. 23.

Where Does It End? From the Bloomberg article, one person sees things correctly. With “the amount of bonds that have been piling up on the Fed’s System Open Market Account” there “has been a collateral shortage,” said Jim Bianco, president of Bianco Research LLC in Chicago. “What worries me about the Fed is that in reacting to the fact that their actions have created an unintended consequence in a free market, instead of saying ‘Oh, maybe we ought to re-think these actions,’ their answer is ‘No, we’ll go manipulate that problem now.’ Where does this end?”

I reply that it begins to end with the a collateral shortage, goes on to a massive delveraging out of fiat assets, beginning with risk assets at first, then proceeding to a global selloff of currencies, and going on to interest rates rising on yield investments, which will likely break the buck, that is the constant one-dollar value of money market funds, and result in the failure of credit and trust in the world central banks. Rest assured, out of chaos, will come order. The fiat money system will literally disintegrate, and the diktat money system be installed by leaders who renounce national sovereignty and announce regional pooled sovereignty.

In authoritarianism’s paradigm, nannycrats, working through regional framework agreements, will establish regionalism, where through regional integration, specifically through regional banking integration, regional fiscal integration, and regional economic integration, they will establish regional stability, regional security, and regional sustainability. In this manner, liberalism’s paradigm and its economic systems of capitalism, European socialism, and Greek Socialism, will come to an end.

AP reports US Proposes Liquidity Requirements Liquidity is the ability to access cash quickly. Under the proposed US Federal Reserve Liquidity Coverage Ratio, LCR, the largest banks, those with more than $250 billion in assets, would be required to hold enough cash and securities to fund their operations for 30 days during a time of market stress. Smaller banks, those with more than $50 billion and less than $250 billion, would have to keep enough to cover 21 days.

Fed officials said the rules are stronger than new international standards for banks. The public has 90 days to comment on them. After that, they would be phased in starting in January 2015.

“Liquidity is essential to a bank’s viability and central to the smooth functioning of the financial system,” Fed Chairman Ben Bernanke said. He said the new regime “would foster a more resilient and safer financial system in conjunction with other reforms.”

The requirements were mandated by Congress after the financial crisis. They are part of new regulations that are intended to prevent another collapse severe enough to require taxpayer-funded bailouts and threaten the broader financial system.

It’s apparent to me that a liquidity crisis is imminent, and as such investors should begin to dollar cost average an investment in gold. Of note, Jack Chan writing in Safehaven chart article This Past Week in Gold, gave his buy signal to the Gold ETF, GLD on October 23, 2013.

The trade lower in World Stocks, VT, Semiconductors, XSD, Nation Investment, EFA, Global Financials, IXG, Copper Miners, COPX, established Wednesday, October 23, 2013, as an epic and pivotal day in economic and political history, as fears arose that the greatly interventionist monetary policies of the world central banks have turned “money good” investment bad, and have thus 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 the  turning the financial markets from bull to bear.

The Great Bear Market of 2013, commenced on October 23, 2013, as confirmed by the Market Off ETN, OFF, rising in value.

In a bull market one buys into dips; but in a bear market one sells into pips.

Corporations should set up margin accounts at the largest of stock brokerages and commence a short  selling strategy  The following 40 high beta 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, might be comprise part of a short selling strategy.

The 10 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, are what I term the market vane ETFs,  and could serve as the basis for a 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.

The Irish Times reports Troika Seeking Tough Post Bailout Terms In Ireland In Exchange For Precautionary Loan.  I comment that strong austerity measures already enforced by the Troika on Ireland have resulted in internal devaluation and have produced competitive nation investment rewards for Ireland, traded by the ETF, EIRL, as well as for strong competitive financial institution investment rewards for its bank, IRE.  Said another way Ireland, EIRL, and its bank, IRE, have been the investor’s currency carry trade and global credit debt trade darlings, greatly rewarding those invested in the nation and its bank, and serve as the premier example of  liberalism as being the age of investment choice. Inasmuch a the world has pivoted from liberalism into authoritarianism, Ireland’s financing will now be the leading example of diktat money which is replacing fiat money.

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 those reported by the such as The Irish Times report Troika Seeking Tough Post Bailout Terms In Ireland In Exchange For Precautionary Loan, 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.

Liberalism was an era characterized by clientelism, as MyBudget360 reports Means-Tested Recovery.

Over 108,000,000 Americans received means-tested benefits in latest report from Census Bureau, more than are currently employed full-time. Over 108,000,000 Americans received means-tested benefits in latest report from Census Bureau, more than are currently employed full-time.

2) … COGWriter presents sound bible doctrine regarding the soon coming war in Syria, that is the Isaiah 17 War.

COGwriter relates I have been warning for some time that a regional war involving Iran, Israel, the USA, and/or Syria seems likely. And Israel and Iran keep taking steps which may help it get ready for such a war (Isaiah 22:6-13).

Since Iran, however, is NOT really south of Jerusalem (though it may support such a king per certain interpretations of the peoples listed in Ezekiel 30:1-9), it will not be the final King of the South of Bible prophecy (cf. Daniel 11:40-43). Because of that, I have tended to believe that Iran may somehow get “neutralized” before this final king rises up. A serious attack by the USA and/or Israel may neutralize Iran and much of its influence. It also may take a regional war for the seven-year confirmation of the deal in Daniel 9:27 to come about.

My reading and re-reading of Bible prophecy simply does not show that Iran will be a major player in Daniel 11:21-44 nor the deal of Psalm 83:4-8 (Arabs, Turks, and Europeans are); though Ezekiel 30:1-9 possibly implicates Iran as a supporter of an end-time confederation involving Egypt.

“Neutralizing” Iran would allow most of the other Islamic states (like Saudi Arabia and Egypt) to continue to exist (Syria might not do well per Isaiah 17:1) and allow for the rising of the prophesied King of the South to rise up (revolution in Iran, is also another possibility, for its “neutralization”).

Leaders in the USA and Israel have suggested that they may intervene and attack Iran. But if the USA and Israel do hit Iran, Iran would likely not fare well, but that does not mean that Israel and/or the USA would not suffer. Israel seems prophesied to possibly be hit by Iran per Isaiah 22:6-13.

The USA and others are vulnerable to being hurt by EMP weapons (which Iran may have), chemical weapons (which at least Syria has), dirty bombs (which Iran already can make), terrorism (which Iran sometimes sponsors), and biological weapons (which both Iran and Syria likely have). Although the USA (nor Europe) will NOT to eliminated by this type of conflict, the USA certainly could be partially or even greatly weakened by these type of attacks.

COGwriter also relates Notice that the late Herbert W. Armstrong wrote that the king of the North is involved in the final crisis in the close of this age and involves “the beast and the false prophet” in Daniel chapter 11:

Verse 40  “And at the time of the end shall the king of the south push at him ….”…There is yet another leader to arise in Europe! Notice what will next happen!

Verse 41 “He shall enter also into the glorious land … ” — the Holy Land. This is yet to be fulfilled.

When the coming revival of the Roman Empire takes the Holy Land, then the nations will be plunged into the initial phase of the great, last and final crisis at the close of this age!…

Verse 45 the coming Roman Empire shall establish its palace, as capital of the revived Roman Empire, and eventually its religious headquarters, at Jerusalem! Zechariah 14:2 says the city shall be taken! “Yet he shall come to his end, and none shall help him”! This language signifies the end of the “beast” and the “false prophet” at the hand of God! You will find this end described in Revelation 19:19-20 and Zechariah 14:12. (Armstrong HW. The Middle East in Prophecy. Worldwide Church of God, 1972 edition).

While the current in Syria will change.  More trouble is coming to Damascus as it will be destroyed (Isaiah 17:1). An Islamic confederation that will include the land of Syria is coming (Daniel 11:40-43; Ezekiel 30:1-8; Psalm 83:4-8) is coming. There will be other troubles for Israel.

3)  … An inquiring mind asks, Is it now just a matter of weeks before war breaks out in the Middle East?

Prophecy Update asks Rumors Of War: A Matter Of Weeks? Once again, we are seeing more ominous warnings coming from Israel, as the concern over Iran’s nuclear capabilities moves to the critical stage. It appears that Israel firmly believes that Iran is only a matter of being “weeks” away from the point of no return in having the necessary materials to assemble a nuclear weapon.

If this is true, we may see the triggering point in the cascade of events in the Middle East which could very well lead directly into the prophecies involving Isaiah 17 and Ezekiel 38-39:

USA Today posts Israel Issues Warning. A new report that says Iran may need as little as a month to produce enough uranium for a nuclear bomb is further evidence for why Israel will take military action before that happens, an Israeli defense official said Friday.

“We have made it crystal clear – in all possible forums, that Israel will not stand by and watch Iran develop weaponry that will put us, the entire Middle East and eventually the world, under an Iranian umbrella of terror,” Danny Danon, Israel’s deputy defense minister told USA TODAY.

“This speedy enrichment capability will make timely detection and effective response to an Iranian nuclear breakout increasingly difficult,” he said.

“Breakout” refers to the time needed to convert low-enriched uranium to weapons-grade uranium. On Thursday, the Institute for Science and International Security issued a report stating that Iran could reach that breakout in as little as one month based in part on Iran’s own revelations about its nuclear program.

The report comes as the White House is trying to persuade Congress not to go ahead with a bill to stiffen sanctions on Iran to force it to open up its program to inspection. The White House on Thursday invited senate staffers to a meeting on Iran strategy for negotiations that are to resume next month with Iran, it said.

4)  … Many currently enrolled in health care plans are receiving cancellation letters forcing them to buy more costly policies on state health insurance exchanges that are non operational or go without health insurance; this chaos is sending the stock value of Health Care Providers lower at a time when  other stock market sectors have been rising; and is establishing Obamacare as liberalism’s peak crony capitalism and peak democracy experience.

Kate Randall, reports Obamacare prompts insurers to drop hundreds of thousands from coverage.  Private insurers are sending hundreds of thousands of cancellation letters to people who presently buy their own coverage and forcing others to buy more costly policies. In recent days, it has come to light that the Affordable Care Act, commonly known as Obamacare, is provoking another health insurance crisis. Private insurers are sending hundreds of thousands of cancellation letters to people who presently buy their own coverage and substantially raising the cost of premiums for new policies. Many of these people are being forced onto the federal insurance exchange at HealthCare.gov.

Under the legislation signed into law in 2010, individuals and families that are not insured through their employer or through a government program such as Medicaid or Medicare must obtain insurance or pay a penalty. Beginning January 1, 2014, the ACA also requires policies sold on the so-called “individual market” after March 2010 to cover ten “essential” benefits, such as preventive care, prescription drugs, mental health treatment, and maternity care.

The main reason insurers are canceling their coverage is because the plans do not meet these ACA standards. By forcing some of these more healthy self-insured people onto the insurance exchanges set up under Obamacare, the government and private insurers hope that the lower cost of covering them will offset the cost of providing insurance to those with preexisting conditions and other less-healthy individuals.

The Obama administration’s oft-repeated pledge that “if you like your plan, you can keep it,” is being exposed as a fraud for hundreds of thousands of the estimated 14 million Americans who purchase their own insurance because they don’t receive it through their job. These people are finding out that new coverage through their present insurer will be much more expensive, and that in most cases insurance offered through the insurance exchanges set up under Obamacare will either have more costly premiums or will include large out-of-pocket costs, while limiting choices. Many of these people will not be eligible for subsidies through Obamacare.

Los Angeles real estate agent Deborah Cavallaro received a cancellation notice from Anthem Blue Cross this month, the Los Angeles Times reports. Her insurer told her that a comparable Bronze plan on the federal insurance exchange would cost $484 a month, or about 65 percent more than her present policy. Cavallaro says she will most likely go uninsured because she cannot afford the increase.

The main driver of the policy cancellations and rate increases is that while Obamacare requires that individual insurers offer a certain level of coverage, and that customers cannot be discriminated against due to preexisting medical conditions, there is no meaningful oversight on what the private insurers can charge for their policies.

While the government-run Medicare program for the elderly and disabled and the Medicaid program for the poor—the latter jointly administered by the federal government and the states—involved a certain encroachment on the private insurance market, the Affordable Care Act is the opposite. From the beginning, it has been entirely tailored to the interests of the private insurers and aimed at slashing costs for the government and corporations while reducing care for the majority of Americans.

The price hikes by insurers in the individual insurance market, as well as the “sticker shock” many are experiencing on HealthCare.gov if they are actually able to log in, are the inevitable result of a program that proceeds from the interests of the giant insurers, pharmaceuticals and health care chains. Insurance companies will respond to any infringement on their profits connected to provisions of the ACA by either dumping customers or raising their premiums.

I relate that this chaos is sending the value of Health Care Providers, IHF, lower while other stock markets sectors are rising. Thus Obamacare is a no win scenario for those invested in health care providers such as  WLP, UNH, ESRX, WLP, AET, CI, as is seen in their combined ongoing Yahoo Finance Chart. UnitedHealth Group, UNH, has lost the greatest market value in the last month. I comment that with enrollment declining, Health Insurers will not be a good investment value and will start falling lower in value.

Barons reports UNH Sees Medicare Payment Shortfall  In a press release on the company’s website, Chief Executive Officer and President Stephen Hemsley said: We expect our 2014 earnings outlook to be impacted by overall Medicare Advantage funding levels as well as the effects of the non-deductible insurer fee on Medicare as we indicated in our last earnings call. The significant and continued level of underfunding can not be fully offset in 2014 from the performance we expect from the balance of our health benefits markets. And we see limited potential for significant further improvement in overall medical cost trends, recognizing how well medical costs have been controlled over 2012 and 2013. United’s disappointment has helped drag down other health insurers.

Bloomberg reports Google, Oracle Workers Enlisted for Obamacare Tech Surge Bloomberg Google, Red Hat, Oracle and other companies are contributing dozens of computer engineers and programmers to help the Obama administration fix the U.S. health-insurance exchange website.

The introduction of Obamacare in the US is an example of diktat money that is destroying fiat money: individuals are no longer free to choose a plan, rather they must go through an exchange, and corporations must pay a flat fee per employee to help fund those who come onboard with preexisting health conditions; thus they are participating in debt servitude, having identity and experience in austerity. Bloomberg reports Insurers Oppose Obamacare Extension as Danger to Profits.

The WSJ reports The Obamacare Awakening. Americans are losing their coverage by political design. The law is systematically dismantling the individual insurance market, as its architects intended from the start. The millions of Americans who are receiving termination notices because their current coverage does not conform to Health and Human Services Department rules may not realize this is by design. Maybe they trusted President Obama’s repeated falsehood that people who liked their health plans could keep them. But Americans should understand that this month’s mass cancellation wave has been the President’s goal since 2008. Liberals believe they must destroy the market in order to save it.

We are witnessing crony capitalism, and peak democracy, which is actually the failure of democracy as

people are not free to choose. Mike Mish Shedlock writes As Many As 16 million Americans Will Lose Their Existing Coverage That They Want To Keep. And he writes Five Reasons Obamacare Legislation Failed; The Worst Legislation Money Can Buy; Putting the Patient in the Driver’s Seat.

Jesus Christ is bringing forth the beast regime of Revelation 13:1-4, to rise up out of the chaos, that comes from the experience of clientelism, and failures of democracy, as well as the eclipse of personal responsibility found in Obamacare, to occupy in totalitarian rule in every of mankind’s seven institutions, these being 1) Education, 2) Finance, banking, commerce, investment and trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science & Technology.  Under the beast regime, government mandate, not investment choice, pervades and integrates every human experience. The seigniorage of diktat, that is the moneyness of diktat, establishes economic life under authoritarianism.

Under liberalism, one exercised choice; but under authoritarianism, one looks to the mandates of nannycrats and their rule for life experience.

Under liberalism, the seigniorage of choice ruled everything and provided value in human endeavors; but under authoritarianism, the seigniorage of diktat governs all things and gives economic value to human activities.

Under liberalism, the Milton Friedman, free to choose, banker regime provided fiat money for economic transactions; but under authoritarianism, the nannycrat, diktat, beast regime provides diktat  money for economic transactions.

5) … An inquiring mind asks, Are superstorms the new normal?

Zero Hedge posts Superstorm Pounds UK. Almost exactly one year after Superstorm Sandy crushed the eastern seaboard of the USA, and 26 years after the last devastating storm to hit the south of England, the so-called St.Jude’s Day storm, among the worst in recent memory, is battering the UK (and some of Europe) with winds up to 99 mph. So far there are 2 reported deaths, 220,000 homes without power, all South West trains halted, and over 130 flights cancelled at Heathrow airport. Two nuclear plants have been shutdown and hundreds of trees have fallen blocking roads and rail links across as the storm begins to shift into mainland Europe.

6) … The world central banks roll out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, it is also known as the diktat money system, where banks are integrated into the government, and serve as the bedrock for regional governance which replaces democratic nation state rule.

On Monday, October 28, 2013, liberalism’s risk free credit, that is short term bonds, and major currency carry trades, that is the EUR/JPY and AUD/JPY, manifested bearishly, as the European Financials, EUFN, traded lower, taking World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, lower.

World Stocks, VT, traded lower. Sectors trading lower included, Solar Energy, TAN, Spin Offs, CSD, Social Media, SOCL, and Nasdaq Internet, PNQI.  Yield bearing sectors trading lower included, Energy Partnerships, AMJ, and Shipping, SEA. Nicholas Financial, NICK, a subprime automobile lender, and a Russell 2000 Value leader, traded lower.  The chart of Small Cap Energy, PSCE, manifested a terrific bearish lollipop candlestick at the top of an ascending wedge, communicating an end of its long performing rally.

Nation Investment, EFA, traded lower; countries trading lower included Egypt, EGPT, Vietnam, VNM, India, INP, SCIN, Greece, GREK, Spain, EWP, and Ireland, EIRL.

Financial Investments, IXG, traded lower; the National Bank of Greece, NBG, Banco Santander, SAN, and Ireland’s Bank, IRE, led the European Financials, EUFN, as well as Greece, GREK, Spain, EWP, and Ireland, EIRL, lower.

Cathy Barnato of CNBC reports Bad Loans At European Banks Hit $1.7 Trillion. The figures raise questions about the market impact, should Europe’s new stress tests force banks to offload distressed assets.

Last Wednesday, the ECB unveiled tough criteria for its stress tests of euro zone banks, designed to determine their ability to withstand adverse economic conditions or “stress”. The region’s 128 “systemically important” banks will undergo an assessment of their risky assets, the quality of their balance sheets and the amount of capital they hold.

Richard Thompson, the chairman of PwC’s European portfolio advisory group, forecasted the volume of NPLs would continue rising for the next two years, driving the loan portfolio market, which will also be boosted by the ECB’s prospective stress tests and the need to meet Basel III capital requirements. “With an uncertain economic climate it is difficult to forecast any meaningful reduction in aggregate across Europe and indeed we believe that reported NPLs in many countries will continue to rise over the next couple of years, adding further impetus to the already buoyant loan portfolio market,” said Thompson in PwC’s biannual report on European NPLs.

PwC’s rival EY (Ernst & Young) noted in its annual NPL investor report that European distressed debt opportunities were increasingly tempting investors away from the US. “European banks have increasingly begun to reduce their exposure to NPLs via portfolio sales. Consequently, global NPL investors are turning their attention to Europe, and for good reason. An estimated 1 trillion euros of NPLs are sitting on the balance sheets of the region’s banks, far surpassing the magnitude of distress in the US,” said EY partners Howard Roth and Christopher Seyarth in the report.

“By far, Europe represents the biggest opportunity worldwide,” said Lee Millstein, head of European and Asian distressed and real estate investments at Cerberus Capital Management, quoted in EY’s report.

Bloomberg reports, Italian Bank Foundations Under Siege as Visco Seeks Overhaul. Italy’s banking foundations, the biggest shareholders in the country’s financial industry, are under siege as their leaders gather in Rome today. Bank of Italy Governor Ignazio Visco wants them to loosen their grip on management. The IMF has urged an overhaul of an ownership structure vulnerable to cronyism. In the last 12 months, their appointees at the banks were ousted in Genoa and probed by prosecutors in Siena.

I comment that the reinvigoration of credit after the 2008 financial collapse, formerly began when the US Fed took in distressed assets, such as those traded by the Fidelity Mutual Fund FAGIX, with the start of QE1, which stimulated the value of Excess Reserves to skyrocket, and which has driven up risk assets to their peak value, such as Solar Stocks, TAN, Social Media, SOCL, and Small Cap Pure Value Stocks, RZV, and which has driven up the market value of credit service companies, such as Nelnet,  NNI, American Express, AXP, and Nicholas Financial, NICK, and the market value of the whole spectrum of the most liberal forms of credit, such as Junk Bonds, JNK, Ultra Junk Bonds, UJB, Senior Bank Loans BKLN, Distressed Assets, FAGIX, which in turn reinvigorated currency carry trades.

And most recently beginning in late June 2013, it was the value of Eurozone distressed assets, together with the European nation state treasury debt, that has underwritten the PBOC Monetary Stimulus, the US Fed No Taper, and the ECB Bank Supervision Rally, and has brought the world to liberalism’s peak economic and political experience, that being peak democratic nation state sovereignty, peak banker driven seigniorage, peak credit, peak fiat wealth, and peak trust in the fiat money system, in other words, peak moral hazard based prosperity.

Processed and Packaged Foods, FLO, GIS, K, CAG, CPB, and Personal Products, PG, UN, NUS,  EL, CL, KMB, Cleaning Products, CLX, ECL, Beverages, CCE, and Confectioners, HSY, MDLZ, led Global Consumer Staples, KXI, seen in this Finviz Screener, to a new rally high. And in similar way, JJSF, SNAK, BBBD, FHCO, STKL, led Small Cap Consumer Staples, PSCC, to a new rally high.

Short Term Bonds, FLOT, manifested bearish harami and traded lower. Ultra Junk Bonds, UJB, and Junk Bond, JNK, traded higher.

The chart of the Euro Yen Currency Carry Trade, EUR/JPY, manifested bearish engulfing and traded lower at 134.85, as the Euro, FXE, closed at lower 136.38. and the Yen, FXY, closed lower at 100.01.

And the chart of the Australian Dollar Yen Currency Carry Trade, AUD/JPY, also manifested bearish engulfing and traded lower at 93.95, as the Australian Dollar, FXA, closed lower at 95.81. Emerging Market Currencies, CEW, traded lower at 20.60. And The Chinese Yuan, CYB, manifested a massive dark cloud covering, and traded lower at 26.47.

Liberalism was the age of investment choice based upon schemes of credit liqudity and carry trade investing; both of its spigots of investment liquidity traded lower on Monday, October 28, 2013, and competitive currency devaluation commenced with currency traders calling currencies lower, and the US Dollar, $USD, UUP, higher.

Financial marketplace trading on Monday, October 28, 2013, continued a trend lower from October 23, 2013, and communicates that the financial markets has turned from bull to bear.

With the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … the monetary policies of the world central banks are going beyond expanding the money supply, to integrating banks into government by introducing the antifragile financial system, an Alberto Mingardi Econolog Econolib term.

The traditional Fed be dead, its previous interventionist monetary policies and monetary tools 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 Greece, GREK, Ireland, EIRL, Spain, EWP, Brazil, EWZ, EWZS, India, INP, SCIN, China, YAO, ECNS, with Greece’s National Bank of Greece, NBG, Ireland’s Bank, IRE, and Spain’s Banco Santander, SAN, Brazil Financials, BRAF, leading lower.

Financial market place trading, world central banks’ monetary policies and monetary tools, as well as enduring enforcement of austerity measures by the Troika in exchange for seigniorage aid, have pivoted the world from the economic and political paradigm of liberalism into authoritarianism.

The world central bankers have effected a global economic and political coup d’etat, … with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … pivoting the world from democracy into statism, where banks have charter in governance with the government.

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 age of investment choice based upon schemes of credit and carry trade investing. Authoritarianism is the age of diktat based upon schemes of debt servitude and totalitarian collectivism. As a result, investors can no longer profit from investing long the financial markets; wealth can only be preserved by investing in and taking possession of gold and silver bullion.

The world passed through peak nation state sovereignty and seigniorage on October 23, 2013, as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, turned lower from their PBOC Monetary Stimulus, and US Fed No Taper, and ECB Bank Supervision Rally highs.

Under liberalism, central bankers provided democracies, that is nation states, with fiscal, and investment seigniorage, that is investment moneyness, based upon investment opportunities in each country, and those investment opportunities were enhanced by strict austerity coming from the Troika, two cases in point being Ireland, EIRL, and Greece, GREK.

Liberalism’s world central bank credit interventionist and money creation monetary policies and monetary tools, gave investors stunning investment gains from June 24, 2013, to October 23, 2013, with the PBOC Monetary Stimulus, and US Fed No Taper Stimulus, and ECB Bank Supervision Rally Stimulus, producing seigniorage for Eurozone Stocks, EZU, Eurozone Financials, EUFN, Ireland, EIRL, and its bank, IRE, and Spain, EWP, and its bank, SAN, and Greece, GREK, and its bank, NBG.

Yet on Monday October 29, 2013, traditional investment seigniorage was eclipsed, by the seigniorage of authoritarianism, specifically the seigniorage of diktat, which is terminating democracy  and commencing regional governance, for the purpose of regional security, regional stability, and regional security, by the establishment of EU bank supervision, led by its banking nannycrat, Ignazio Angeloni.

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, European Press Release reports.

Regionalism is replacing capitalism, European Socialism, and Greek Socialism as a way of life. And regional integration is replacing global growth and trade, and corporate profitability as the dynamo of economics.

The world attained peak prosperity on October 22, 2013, when Global Financial Institutions, IXG, traded to an all time new high, which came through the world central banks monetary policies of investment choice, and provision of credit and carry trade investment, through 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, and which produced a terrific moral hazard based peak prosperity.

Democratic nation state sovereignty and seigniorage attained its fullest potential, on October 22, 2013; this coming on the swell of world central bank assets, which drove up the market value of credit service companies, such as Nelnet, NNI, American Express, AXP, and Nichola Financial, NICK, and the market value of risk assets, such as Solar Energy, TAN, Social Media, SOCL, and Small Cap Pure Value Stock, RZV, and the market value of the whole spectrum of liberal credit, such as Junk Bonds, JNK, Ultra Junk Bonds, UJB, Bank Loans, BKLN, and Distressed Assets, FAGIX, and which also in turn reinvigorated currency carry trades, such as the EURJPY and the AUDJPY.

Under democracy, bankers, corporations, government, entrepreneurs, and citizens of democracies, acting as investors were the legislators of economic value and the legislators of economic life.

Evidence of peak nation state sovereignty and seigniorage comes from the investment value of small cap stocks such as the Small Cap Pure Value, RZV, and Small Cap Pure Growth, RZG,  as well as the Russell 2000, IWM, the Russell 2000 Pure Value, IWN, and the Russell 2000, IWO, reaching new all time highs, as investors have given full credit, that is full trust, to these fiat assets.

Peak nation state sovereignty and seigniorage has produce peak fiat wealth, on the sovereignty of the world central banks, and the seigniorage of the speculative leveraged investment community.

Libertarians, especially austrian economists, have always desired free things, such as free prices, Hayek’s free market monetary system, even a free land, but their dreams are simply a mirage on the Authoritarian Desert of the Real, as God has always promoted empires as seen in Daniel’s Statue of Empires, Daniel 2:25-45.

Under authoritarianism, currency traders, bond vigilantes, and nannycrats working in public private partnerships, banks integrated into government, and in statist regional governance, are the legislators of economic value, and are the legislators that shape one’s means and one’s ends.

With the world central banks new monetary policies and new monetary tools, the sovereignty of the world central banks is moving into statist regional governance and totalitarian collectivism, where the diktat money system provides the seigniorage of diktat. In response to credit crisis, leaders will meet in summits to renounce national sovereignty and announced pooled sovereignty, and appoint nannycrats to public private partnerships, to oversee the factors of production, commerce, banking and trade, establishing the Eurozone, as a banking union, fiscal union, and fully developed economic union, characterized as an austerity union and debt union.

With the world central banks new monetary policies and new monetary tools, the sovereignty of the world central banks is moving into statist regional governance and totalitarian collectivism, where the diktat money system provides the seigniorage of diktat. In response to credit crisis, leaders will meet in summits to renounce national sovereignty and announced pooled sovereignty, and appoint nannycrats to public private partnerships, to oversee the factors of production, commerce, banking and trade, establishing the Eurozone, as a banking union, fiscal union, and fully developed economic union, characterized as an austerity union and debt union.

Fiat money, consisting of Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Major World Currencies, DBV, Emerging Market Currencies, CEW, and Short Term Bonds, FLOT, died October 23, 2013, with the European Parliament and ECB announcement of banking oversight of European Banks.

Out of the liberalism’s peak nation state sovereignty, peak banker seigniorage, and peak crony capitalism, and peak democracy, Obamacare is pivoting liberalism into authoritarianism which features the nannycrat, dikat, beast regime which provides diktat as money for economic transactions, with Obamacare being a prime example of economic and political life under authoritarianism.

The beast regime of Revelation 13:1-4, is rising up out of the chaos, that comes from the experience of clientelism, the failures of democracy, and the extremities of crony capitalism, as well as the eclipse of personal responsibility, to occupy in totalitarian rule in every of mankind’s seven institutions, these being 1) Education, 2) Finance, banking, commerce, investment and trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science & Technology.  Under the beast regime, government mandate, not investment choice, pervades and integrates every human experience. The seigniorage of diktat, that is the moneyness of diktat, establishes economic life under authoritarianism.

Under liberalism, one exercised choice; but under authoritarianism, one looks to the mandates of nannycrats and their rule for life experience. Under liberalism, the seigniorage of choice ruled everything and provided value in human endeavors; but under authoritarianism, the seigniorage of diktat gives economic value to everything.  Liberalism featured the Milton Friedman, Free to Choose, banker regime which provided fiat money for economic transactions.

Out of the liberalism’s peak nation state sovereignty, peak banker seigniorage, and peak crony capitalism, and peak democracy, Obamacare is pivoting liberalism into authoritarianism which features the nannycrat, dikat, beast regime which provides diktat as money for economic transactions, with Obamacare being a prime example of economic and political life under authoritarianism.

Eventually, people will come to full trust in the beast regime of regional governance and totalitarian collectivism, to the extent that it will be described as worship as the Apostle Paul foretells in Revelation 13:3-4,  All the world marveled and followed the beast; so they worshiped the dragon who gave authority to the beast; and they worshiped the Beast.

On Tuesday, October 29, 2013, World Stocks, VT, Global Financials, IXG, and Nation Investment, EFA, traded slightly higher, with World Stocks, VT, attaining its previous high.  US Stocks, VTI, ended at a new all time high as the S&P 500, SPY, extended a string of record highs, as economic data supported views the Federal Reserve will keep its stimulus intact for several months. Yet US Real Estate, IYR, traded lower, with Small Cap Real Estate, ROOF, Residential REITS, REZ, and Mortgage REITS, REM, trading lower; Industrial Office REITS, FNIO, and Blackstone, BX, traded higher.

The EUR/JPY closed higher at 134.91, nearing it recent rally high, as the Euro, FXE, closed lower at 135.97, and the Yen, FXY, closed at 99.55. Yet the AUD/JPY, closed lower at 93.04, as the Australian Dollar, FXA, closed strongly lower at 94.89.

The US Dollar, $USD, UUP, traded slightly higher, which induced Silver Miners, SIL, and Gold Miners, GDX, to trade lower.

The National Bank of Greece, NBG, continued lower, taking Greece, GREK, lower. Argentina’s Banks, GGAL, BFR, BMA, continued lower, taking Argentina, ARGT, lower. Chile’s Bank, BCA, traded lower, taking Chile, ECH, lower; this as CNBC reports Greece’s Piraeus Bank Warns Of Rising Bad Loans.

India’s Bank, IBN, and HDB, and Steel Producer, SSLT, Auto Manufacturer, TTM, and Information Technology Services Company, WIT, traded higher, on a higher India Rupe ICN, taking India, INP, SCIN, higher.  And Brazil’s Bank, ITUB, traded strongly higher to a new rally high, taking Brazil, EWZ, higher.

Debt deflation continued today as currency traders successfully sold currencies short, introducing competitive currency devaluation. Australia, EWA, KROO, New Zealand, ENZL, and Indonesia, IDX, IDXJ, traded lower on the lower Australian Dollar, FXA; and Sweden, EWD, traded lower on a lower Swedish Krona, FXS; and Switzerland, EWL, traded lower on a lower Swiss Franc, FXF, which forced its Banks, CS and UBS, strongly lower; and UK’s Banks, LYG, and RBS, traded lower on a lower British Pound Sterling, FXB. The Nikkei, NKY, traded higher on a lower Japanese Yen, FXY.

Sectors trading higher included Solar Energy, TAN, Small Cap Energy, PSCE, Energy Production, XOP, Spin Offs, CSD, Home Building, ITB, Semiconductors, XSD. Nasdaq Internet, PNQI, Internet Retail, FDN, Small Cap Pure Value, RZV, Pharmaceuticals, PJP, Investment Bankers, KCE, Retail, XRT, Small Cap Consumer Discretionary, PSCC, Global Consumer Discretionary, RXI, Global Consumer Staples, KXI, Global Industrial Producers, FXR, Media, PBS, Aerospace, PPA, and Transportation, XTN.  Educational Services, seen in this Finviz Screener, traded to new rally highs.

Yield Bearing Sectors trading higher included Shipping, SEA, and Energy Partnerships, AMJ.

Paper Producers, WOOD, Automobile Producers, CARZ, and Resorts and Casinos, BJK, traded lower. Small Cap Growth Company, RF Industries, RFIL, traded parabolically higher, manifesting a massive evening star candlestick in its trading chart.

Aggregate Credit, AGG, traded unchanged as the Interest Rate on the US Government 10 Year Treasury Note, ^TNX, closed unchanged at 2.51%.

On Wednesday, October 30, 2013, CNBC reports To The Surprise Of Virtually No One, The Fed Kept Its Cheap-Money Policy In Place And Pledged To Continue Pumping $85 Billion A Month. I relate that stocks have peaked out inasmuch as they traded slightly lower after the Fed communicated that on Wednesday October 30, 2013, that it intends to continue debt purchases at $85 billion a month.

The investment rally that began June 24, 2013, has run its course not only for Nation Investment, EFA, and Global Financials, IXG, on October 22, 2013, but also for World Stocks, VT, and Global Industrial Producers, FXR, on October 30, 2013.

The June 2013 through October 2013 rally, specifically the PBOC Monetary Stimulus, the US Fed No Taper, and the ECB Bank Supervision Rally, has produced liberalism’s peak investment, economic and political experience. The rally was a fantastic debt trade and currency trade, that produced stunning gains for those invested in Greece, GREK, German Small Caps, GERJ, Italy, EWI, Spain, EWP, Ireland, EIRL, and the European Financials, EUFN. This investment enthusiasm was built on confidence in the ability of the world central bank’s ability to stimulate global growth and trade, as well as to produce ongoing corporate profitability; but both of these goals are now faltering.

The world central banks’ monetary policies and monetary tools, now have the effect of turning “money good” investments bad.  And the European Parliament and ECB announcement of banking oversight of European Banks, has pivoted the world from liberalism’s age of investment choice into the authoritarianism’s age of diktat.

The world central banks are developing new monetary policies and new monetary tools, for two purposes.  First to integrate banks into government, this seen in the European Parliament and ECB announcement of banking oversight of European Banks, as well as the US Federal Reserve Fixed Rate Full Allotment Reverse Repo Facility. And, second to introduce the antifragile financial system, an Alberto Mingardi Econolog Econolib term, this seen in the Bank of England Revised Sterling Monetary Framework, and the US Fed Liquidity Coverage Ratio.

World Stock have attained peak leverage over credit as is seen in the chart of World Stocks relative to Aggregate Credit, VT:AGG, as well as is seen in the chart of Nation Investment relative to World Treasury Bonds, EFA:BWX, as well as is seen in the chart of Eurozone Stocks relative to EU Debt, EZU:EU, as well as seen in German Stocks relative to German Bunds, EWG:BUND as well as is seen in VTI:TLT.  Credit Writedowns notes US Stock Market Capitalization Higher Than Any Time Except NASDAQ Bubble

The details of the day’s trading were as follows:

World Stocks, VT, traded 0.4%, lower; down from its double top high.

Nation Investment, EFA, traded 0.4% lower; manifesting well below its October 22, 2013 high.

Global Financials, IXG, traded 0.4% lower; also manifesting well below its October 22, 2013 high.

Global Industrial Producers, FXR, traded 0.7% lower; down from its rally high.

US Stocks, VTI, traded 0.6%, lower, Russell 2000, IWM, -1.4, S&P 500, SPY, -0.5; all down from their rally highs.

Nikkei, NKY, traded unchanged; now trading below its recent rally high.

Asia Excluding Japan, EPP, traded 0.2% lower; well below its evening star high.

Eurozone, EZU, traded 0.6%, lower, European Financials, EUFN, -1.0, Deutsche Bank, DB, -1.7, Banco Santander, SAN, -1.2, Ireland’s Bank, IRE, -1.0, National Bank of Greece, NBG, +3.1.

Sectors trading lower included Solar Stocks, TAN, traded 3.2% lower, Biotechnology, IBB, -2.0, US Homebuilders, ITB , -1.9, Internet Retail, FDN, -1.9 , Social Media, SOCL -1.9, Media, PBS, -1.8, Networking, IGN, -1.5, Pharmaceuticals, PJP, -1.5, Nasdaq Internet, PNQI -1.4, Semiconductors, XSD, -1.3, US Infrastructure, PKB, -1.1, Small Cap Industrials, PSCI, -1.1, Small Cap Consumer Staples, PSCC, -1.0.

Yield Bearing Sectors trading lower included, DRW, 0.9%, Leveraged Buyouts, PSP, -0.7, Global Telecom, IST, -0.7, Global Utilities, DBU, -0.6, Utilities, XLU, -0.6, Small Cap Real Estate, ROOF, -0.2

Small Cap Pure Growth Stocks, RZG, traded 1.4% lower; examples include MEI, SPA, EXTR, CAMP, FLDM, PDFS, DXPE, HEES, and KAI. And Small Cap Pure Value Stocks, RZV, traded 1.0 lower, examples include ACSM, EEFT, FNGN. And Energy Production, XOP, traded 1.9%, lower, and Small Cap Energy, PSCE, traded 1.2% lower,  as Oil, USO, traded 1.6% lower.

Nations trading lower included Thailand, THD, 3.5%, Turkey, TUR, -2.2, Indonesia, IDX -2.1, Israel, EIS, -2.1, Russia, RSX, -1.0, Argentina, ARGT, -1.4, and the Russell 2000, IWM, -1.4.

Aggregate Credit, AGG, traded lower, as the Interest Rate on the US Ten Year Note, ^TNX, closed slightly higher at 2.53%. The Steepner, STPP, rose slightly higher.

Liberalism’s two spigots of investment liquidity, the first being carry trade investing, and the second being credit liquidity, are both starting to run dry, and are no longer able to provide investment funding. The Telegraph notes JP Morgan Sees Most Extreme Excess Of Global Liquidity Ever.

The first spigot, carry trade investing is topping out and turning over. The chart of the EUR/JPY showed a close at 135.44, with the Euro, FXE, closing at 136.84, and the Japanese Yen, FXY, closing at 99.10. And The chart of the AUD/JPY showed a close at 93.45, with the Australian Dollar, FXA, closing at 94.84.

The second spigot, credit liquidity is topping out and turning over as well. The chart of Short Term Bonds, FLOT, showed no change on the day; these are trading consistently below their October 22, 2013, high.

The US Dollar, $USD, UUP, traded somewhat higher to close at 79.70, it is now trading consistently higher from its October 22, 2013, low. Monetary debasement, a key factor in fiat asset inflation, is history. A sell of the US Dollar no longer serves to support carry trade investment in risk assets, such as Vice Stocks, VICEX, and no longer serves to float currencies.

Inflationism is turning into destructionism as all the Major World Currencies, DBV, and Emerging Market Currencies, CEW, will be sinking, as faith wanes in the ability of debtors to repay lenders.  Liberalism’s debt trade and the currency carry trade is over, through, finished and done. The US Dollar can’t and won’t serve as the world’s reserve currency. Regional framework agreements will provide undollar bartering resources for regional integration, security, stability, and sustainability.

On Thursday, October 31, 2011, inflationism turned to destructionism on the death of fiat money. Liberalism featured globalism, where bankers ruled in investment choice for the purpose of global growth and trade as well as for corporate profitability. But the death of fiat money on October 28, 2013, seen in World Stocks, VT, Nation Invesment, EFA, and Global Financials, IXG, Credit Service Companies, such as American Express, AXP, Visa, V, Capital One, COF, and Nicholas Financial, NICK, together with Major World Currencies, CEW, as well as Aggregate Credit, AGG, all trading lower, together with collapse of currency carry trade investment, such as the EUR/JPY, and the collapse of credit, such as Short Term Bonds, FLOT, has commenced regionalism, where nannycrats rule in diktat working in regional framework agreements featuring undollar transactions such as bartering agreements to establish regional security, regional stability, and regional sustainability.

Some question, did fiat money really die? Most assuredly so; and in responding, it is important to define money. Money is defined as that the medium of exchange used in payment of goods and services in an economic and political regime; it is a storehouse of investment worth; it is minted, that is coined by an agent of the sovereign, that is the ruler, and carries the seal of authenticity of the seignior, that is the top dog banker who takes a cut, and it provides economic and political life experience, as well as identity to all using it. Bitcoins do not meet the definition of money. and have been deemed by some authorities as illegal contraband.

How does one know fiat money died? One knows fiat money died on Wednesday, October 30, 2013, as the investment value of all metrics of fiat wealth, Stocks, VT, Credit, AGG, Major World Currencies, such as Chinese Yuan, CYB, Australian Dollar, FXA, Swiss Franc, FXF, Euro, FXE, Swedish Krona, FXS, India Rupe, ICN, and Brazilian Real, BZF, as well as Emerging Market Currencies, CEW, are now worth less; and will one day be totally worthless, when people no longer trust ruling sovereigns.

How did fiat money die? Fiat money died on the exhaustion of the world central banks’ monetary authority as investors now fear that debtors will be unable to repay creditors, as is evidenced by the bond vigilantes calling the Interest Rate on the US Ten Year Government Note, ^TNX, higher from 2.53%. And as a result, debt deflation has commenced in World Treasury Bonds, BWX, and International Corporate Bonds, PICB, and in Emerging Market Local Currency Bonds, EMLC.

Competitive currency devaluation, more specifically, unwinding currency carry trades are causing investment devaluation in periphery of Nation Investment, EFA, specifically in Sweden, EWD, Brazil, EWZ, EWZS, Norway, NORW, South Korea, EWY, Indonesia, IDX, IDXJ, Malaysia, EWM, Turkey, TUR, Peru, EPU, and Chile, ECH.  Investors are derisking and deleveraging out of the banks of these nations, such as Peru’s BAP, South Korea’s SHG, and KB, and Brazil’s BSBR, ITUB, BBD, and BBDO.  Emerging Market Financials, EMFN, Emerging Market Miners, EMMT, and Emerging Market Infrastructure are among the sectors that are now leading investment lower, as the world has turned from risk on investing to risk off investment, seen in the Risk Off ETN, OFF, trading higher.

The death of money comes at a time when the pursuit of yield has reached its zenith, as Lisa Abramowicz tweets There’s only $140 bln left out of >$6 trln of EU and US corporate bonds that yield 7% or more & trade somewhat frequently: UBS strategists. And Zero Hedge relates LBO Multiples: The Latest Credit Bubble.

I comment that the dearth of tradeable toxic debt is reflected in Distressed Investments, FAGIX, Ultra Junk Bonds, UJB, Senior Bank Loans, BKLN, and Junk Bonds, JNK, rising near their May 2013 highs on the pursuit of yield.  And I ask, can you imagine the awesome fall in value, that is collapse in money, that is coming to these fiat investments, when investors exit the debt trade?

The chart of the EUR/JPY shows a close lower at 133.54, with the Euro, FXE, closing parabolically lower at 134.31, and the Yen, FXY, closing higher at 99.40. And The chart of the AUD/JPY shows a close lower at 93.00, with the Australian Dollar, FXA, closing lower at 94.65.

Gold, GLD, is both a commodity and a currency, and being that it had carry trade seigniorage under liberalism, it is now trading lower in value, as investors deleverage out of currency carry trades. Its trade lower today, caused investment derisking out of gold mining stocks, GDX, and Silver Mining Stocks, SIL. Silver Standard Resources Inc, SSRI, a carry trade darling, traded 5.4% lower.

Globalism as a driver in economic affairs, is history. The death of globalism with the death of fiat money, and this death is terminating the rule of the Banker democratic nation state regime, and is introducing regionalism, thus commencing the rule of the beast regime of regional governance and totalitarian collectivism, which provides the diktat money system for mankind’s economic and political life.

Benson te writes on the collapse of credit More Signs of China’s Hissing Bubble: Four Biggest Banks Post Biggest Surge in Bad Loans From Bloomberg, China’s top four banks posted their biggest increase in soured loans since at least 2010 as a five-year credit spree left companies with excess manufacturing capacity and slower profit growth amid an economic slowdown.

Nonperforming loans at Industrial & Commercial Bank of China Ltd. (601398), China Construction Bank Corp. (939), Agricultural Bank (1288) of China Ltd. and Bank of China Ltd. (3988) rose 3.5 percent in the three months to Sept. 30 from June to a combined 329.4 billion yuan ($54 billion), according to data compiled by Bloomberg News based on third-quarter results.

The rise in defaults adds to concerns bank profitability may decline as policy makers seek to trim production at cement makers to paper manufacturers that have gorged on credit since 2008, while urging lenders to build buffers to cover loan losses. China’s biggest state-run banks are trading near record-low valuations as investors brace for a surge in bad debts and slower credit growth.

Interest rate payments soar. Interest owed by borrowers has risen to 12.5 percent of Chinese gross domestic product in 2013 from 7 percent in 2008, Fitch Ratings estimated in a report last month. The figure may rise to as high as 22 percent by the end of 2017, which could “ultimately overwhelm borrowers,” the agency said.

When the markets begin to question the ability of firms or nations to service their debt/s, where the cost of servicing debt (interest and principal) overcome the profit centers, then confidence to refinance existing bad loans will grind to a screeching halt. This leads to more accounts of bad loans and more bankruptcies.  I comment that the collapse of trust in the debtor to repay lender caused Chinese Financials, CHIX, to trade lower on October 22, 2013, which recovered in price this week.

SFGate reports Rents Soaring Across Region. Asking rents for San Francisco apartments listed on www.livelovely.com clocked in at a record $3,398 in the third quarter, up 21 percent from 2012, said apartment-finding company Lovely.

Greek Newspaper Kathimerini reports Greek Private Clinics Refuse Patients Insured With EOPYY Over Outstanding Payments Greece’s private clinics will no longer admit patients insured by the National Organisation for Healthcare Provision (EOPYY), and will continue to withhold care until at least 3 November, unless the organisation settles its outstanding debts, estimated at a total of €800m.

Commodities, DBC, traded lower. There is a global glut of natural gas, and that today, Natural Gas, UNG, traded strongly lower; and Oil USO, traded lower again today

Gold Miners, GDX, Silver Miners, SIL, Homebuilders, ITB, Emerging Market Miners, EMMT, Emerging Market Infrastructure, EMIF, Casinos and Resorts, BJK, Energy Production, XOP,  Small Cap Energy, PSCE, Small Cap Pure Value Stocks, RZV, Small Cap Pure Value Growth Stocks, RZG, Too Big To Fail Banks, RWW, Regional Banks, KRE, Biotechnology, IBB, and Transportation, XRT, were the loss leading sectors of the day.

Robert Wenzel of Economic Policy Journal relates New $90 Million Condos in NYC Needle Towers. I respond with the Max Raskin, Michael Deal, and Evan Applegate of Bloomberg post of 08-08-2008 Correlations: Skyscraper Index. Sometimes a skyscraper is not just a skyscraper, at least to economists who see them as harbingers of downturns. The Skyscraper Index measures the correlation between the world’s tallest building and the business cycle. The theory, first proposed in 1999 by Dresdner Kleinwort analyst Andrew Lawrence, is that construction of the world’s tallest building is usually completed right before an economic downturn. The Empire State Building went up early in the Great Depression, and the World Trade Center was completed on the eve of a recession.

On Friday, November, 1, 2011 Regions trading lower included the Eurozone, EZU, -1.0, the Nikkei, NKY, -1.1, with Nation Investment, EFA, trading -1.0, lower; nations trading lower included Turkey, TUR, -2.1, Greece,  GREK, -2.0, Indonesia, IDX, -1.7, IDXJ, -2.9, South Africa, EZA, -1.5,Argentina,  ARGT, -1.2, Brazil, EWZ, -1.1, EWZS, -1.3, Spain, EWP -1.0, Sweden, EWD, -1.0, Philippines,  EPHE, -1.0, Egypt,  EGPT, -1.0, EWG, -1.0, GERJ,

Sectors trading lower included Small Cap Pure Growth, RZG, -1.1, and Home Building, ITB, -1.0.

Yield Bearing Sectors trading lower included Global Real Estate, DRW, -1.0, Global Utilities, DBU, -1.0, and Leveraged Buyouts, PSP, -1.0

Energy Production, XOP, -1.0, and Small Cap Energy, PSCE, -2.0, on lower Oil, USO, -1.6.

The chart of the EUR/JPY, showed a close at 133.22. And the chart of the AUD/JPY, showed a close at  93.21.

Some of the fastest derisking and deleveraging out of Nation Investment, EFA, is in those nations where the current account deficit is the largest, that being Indonesia, IDX, IDXJ, Brazil, EWZ, EWZS, Turkey, TUR, and South Africa, EZA, as is seen in their combined ongoing Yahoo Finance Chart. Heather Mathers posts Reemergence Of Currency Wars. The spectre of global contagion from Brazil, Indonesia, India, Turkey and South Africa is looming, Alan Ruskin, global macro strategist at Deutsche Bank has warned. The phrase “Fragile Five” seems to have been first coined by Morgan Stanley analyst James Lord.. This has hit those countries’ balance of payments, which measures the balance of a country’s transactions with the rest of the world. If a country’s exports, including financial transactions, are less than its imports it runs a current account deficit.

Gareth Vaughn of Bloomberg reports Moody’s Investors Service Considered Lowering New Zealand’s Triple A Credit Rating due to concerns the country’s current account deficit increases its vulnerability to external shocks. “So we discussed it, but we decided we should not downgrade New Zealand,” Bloomberg reported Steven Hess as saying.

Statistics New Zealand said last month the country’s current account deficit narrowed more than expected to $9.1 billion in the year to June 30, equivalent to 4.3% of Gross Domestic Product. At June 30 New Zealand’s net international liability position was $151.3 billion, or 71.1% of GDP.

Hess also said Moody’s would be watching the New Zealand housing market closely given the Reserve Bank’s decision to apply restrictions to banks’ high loan-to-value ratio lending. “Obviously the Reserve Bank thought they should do something about it, so it’s something that needs to be monitored and we’ll be doing that,” Hess told Bloomberg.

Last month Moody’s, which also confirmed its stable Aaa sovereign rating on New Zealand, maintained its stable outlook on New Zealand’s banking system, but said the risk of an asset bubble triggered by a lending boom remained a key credit concern. And in May Moody’s said the Budget highlighted New Zealand’s main vulnerability of reliance on foreign savings to fund investment.

Alan Wheatley and Tim Reid of Reuters report Property Hot Spots Renew Easy Money Bubble Bears. To assess property market risk, house prices need to be gauged in relation to income. Whereas the U.S. price-to-income ratio at the end of 2012 stood at 84.3, measured against a rolling long-run average of 100, the ratio in Canada was at a 10-year high of 131.7, according to the Organisation for Economic Cooperation and Development. Moreover, Canada’s debt-to-income ratio reached a record high of 163.4 percent in the second quarter.”Debt is at record levels, and we know consumers are biting off more than they can chew financially, so does this lead to more problems down the road?” asked Laurie Campbell, chief executive at Credit Canada, a credit counseling agency. And Macleans Canada posts Macleans provides the Chart Of Canadian Household Debt Since 2008, showing a continual and strong rise.

Alex Matveev posts Vancouver West Detached Home Real Estate Market Update 830 active listings, 105 sold listings. Sales-to-active listings ratio is 12.7 per cent. List prices are ranging from $948,000 to $23,800,000. Median list price is $2,888,000.

Justin Lee posts Alexandra English Bay Is A New Vancouver West Real Estate Project by Millennium Development Corporation, Concord Pacific and Alexandra English Bay Properties Ltd. Alexandra English Bay is located at 1221 Bidwell Street. The project has a total of 85 units and is scheduled for completion this Fall/Winter. Sales for available condos/apartments at Alexandra English Bay range in price from CAD$869,900 to over CAD$990,000. With unit sizes from 907 Sq Ft To 985 Sq Ft and ceiling heights from 9’0″ to 10’6″.

Roy Wang posts Chinese Buyers Boost Point Grey Vancouver West Property Market. According to the real estate company founder Bob Rennie Associates Realty • Rainey (Bob Rennie) estimated price of more than $ 2 million in Western homes, about 80% of buyers are Chinese people, they want to live in the adjoining West Point Grey Academy, St. George’s School (Saint George’s) and g Johor Dayton School (Crofton House) and other private residential area.

West Point a distant mountain views overlooking the sea and a five-bedroom house, Rennie & Associates Realty agency launched the price is 4.98 million Canadian dollars (about 4.83 million U.S. dollars). Relax intermediary company also introduced a Western set with indoor pool, seven bedroom home, it covers an area of ​​1.15 hectares, the price of 17.8 million Canadian dollars.

University of British Columbia (University of British Columbia) is a leading Western universities, but also attracted a lot of attention from buyers attention. Sotheby’s Canadian International Real Estate Limited (Sotheby’s International Realty Canada) President and CEO Ross • McCredie (Ross McCredie) estimates that 10% -15% of the West End apartment housing homeowners are international buyers. “Many people in this study, it will advance the room for their children ready, because they feel it is stabilized by investment,” he said.

Perchance, are you looking for a home in Bellingham, WA, just south of Vancouver. Well then, perhaps the home listed in Redfin 210 N Garden St Bellingham, WA 98225, is for you.

7) … News reports fulfill bible prophecy that Jerusalem will become a stumbling stone. Jason Ditz of Antiwar reports the following middle east news:

In Iraq, Sunni Attacks Spark Shi’ite Calls to Arms

Israel Issues Plans for 5,000 New Settlement Homes

Syria Peace Talks Face Delay as Big Powers Split

Forget Sanctions: House Hawks Push for Iran War

House: Israel Attacked Syria Airbase.

Prophecy Update posts Jerusalem: “A Burdensome Stone” Jerusalem is back in the news. One cannot read these articles without thinking about the warnings from the prophet Zechariah: “And In that day I will make Jerusalem a burdensome stone for all people: all that burden themselves with it shall be cut in pieces, though all the people of the earth be gathered together against it.” (Zechariah 12:3)

8) … Notes on “the new normal” Signposts Of The Times writes Prophecy Sign: roaring and tossing of the seas and anomalous weather patterns. Now Get Ready For An Ice Age As Experts Warn Of Siberian Winter Ahead

9) … Some cities are very psychopathic. Rockford, IL, is a city of great psychopathy. Wikipedia relates Rockford, IL 61101, is the most populous city in Illinois outside of Chicago.  Crime on the west side of town is endemic, with huge areas of old established neighborhoods in extreme blight. The homicide rate in these areas is quite high. Many houses were vacant with no one wishing to buy them.

Rockford was ranked #3 on Forbes’ 2013 America’s Most Miserable Cities list, mainly due to its excessive tax rate for the city’s size as well as its high unemployment rate.[23]

In February 2009, The Wall Street Journal published a series of stories on Rockford and its mayor focusing on various challenges faced by the city, including higher unemployment and lower education levels of workers compared to some cities.[24]

Blogs eRockford relates A 24/7 Wall St. review of 2010 FBI crime data shows Rockford was ranked the 9th most dangerous city in the U.S. for violent crimes per capita. Rockford was ranked behind Flint, Detroit, St. Louis, New Haven, Memphis, Oakland, Little Rock, and Baltimore, and just before Stockton. Median Income: $36,990 (26% below national average) and Unemployment Rate: 13.3% (4.3% above national average). Rockford has unusually high violent crime rates for a city of its size. Most notably, the city has the fourth highest rate of aggravated assault in the country, with 10.5 cases for every 1,000 citizens in 2010. During the same period, 20 murders occurred, almost double the number in 2000.

I add that the pursuit of municipal debt in Illinois, has reached psychopathic levels. as Tim Jones and John McCormick of Bloomberg report “Nothing thrives in Illinois like local government, almost 7,000 units that tax, spend and drive up debt in a state struggling to pay off vendors and cover almost $100 billion of unfunded pension liabilities. More than any other state, Illinois illustrates how local taxing bodies flourish across the U.S., whether urban or rural, Republican or Democrat. The governments duplicate services and burn tax dollars at the same time states slash money for education and Washington cuts discretionary spending. In Illinois, which has the 11th highest state and local tax burden in the U.S., overlapping government agencies managing everything from mosquito abatement to fire protection collect billions of dollars, employ tens of thousands and consume resources that could help pay pension deficits and $7.5 billion in outstanding government bills. ‘The big focus is on Washington D.C. and deficits and tax increases,’ said Dan Cronin, chairman of the DuPage County board… ‘But people frequently overlook a significant chunk represented by under-the-radar government — quiet, sleepy, unaccountable.’ Across the country, there are 38,266 special purpose districts, or government units distinct from cities, counties and schools, each with its own ability to raise money

10) … An inquiring mind asks what is risk free money, and what is “risk free” collateral?  Automatic Earth asks an important question How can we have record bad loans and record excess liquidity at the same time? I comment that inasmuch as a collateral shortage is coming soon, as investors derisk out of stocks, and deleverage out of currency carry trades, what constitutes “risk free” collateral, and thus what constitutes “money good” investments?

Physical possession of gold bullion certainly is “risk free” collateral, and a “money good” investment.

And The 10 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, are what I term the market vane ETFs, constitute risk free money, and could serve as the basis for a 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.

11) … Summary … The new endgame of the US Fed and other world central banks is to establish the antifragile financial system where banks are integrated into the government with both serving as the foundation for regional governance replacing nation state democratic rule.

Credit failed the week ending November 1, 2013. The bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.62%, which stimulated investors to stop chasing yield, and resulted in a strong rise in the failure of credit, with Ultra Junk Bonds, UJB, Junk Bonds, JNK, Aggregate Credit, AGG, World Treasury Bonds, BWX, International Corporate Bonds, PICB, Government Bonds, GOVT, and Short Term Bonds, FLOT, trading lower in value. The Steepner ETF, STPP, traded higher, reflecting the flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX.

On October 23, 2013, The US Ten Year Notes, TLT, rose to strong resistance at 108 and turned lower, and on Friday November 1, 2013, fell parabolically lower when the Interest rate on the US Ten Year Note, ^TNX, rose to 2.62%.

Friday November 1, 2013, will be known as Black Friday for Bonds, as the following traded strongly  lower, 30 Year US Government Bonds, EDV, 10 Year US Government Note, TLT, Government Short Term Bonds, SHY, Long Duration Corporate Bonds, BLV, Corporate Bonds, LQD, International Treasury Bonds, PICB, World Treasury Bonds, BWX, Emerging Market Bonds, EMB, Municipal bonds, MUB, Junk Bonds, JNK, Mortgage Backed Bonds, MBB, and even Short Duration Bonds, FLOT. The failure of liberalism’s credit was complete. There be no safe Bonds, BND, anywhere in the world.

Debt deflation enabled the currency traders to commence competitive currency devaluation in the beginning of what will be an epic currency war against the world central bankers, with the result that the US Dollar, $USD, stopped falling in value, and the Australian Dollar, FXA, Euro, FXE, British Pound Sterling, FXB, Swedish Krona, FXS, Swiss Franc, FXF, Brazilian Real, BZF, Indian Rupe, ICN, Emerging Market Currencies, CEW, all traded lower in value. The collapse of currencies is seen in their combined ongoing Yahoo Finance chart together with the 200% Dollar ETF, UUP.

The Great Bear Market of 2013, commenced on October 23, 2013, as confirmed by the Market Off ETN, OFF, rising in value.

And in response to the failure of both credit and currencies, Global Financials, IXG, traded lower, leading World Stocks, VT,  and Nation Investment, EFA, lower on October 23, 2013; this just as the world central banks came out with a new end game, that is to roll out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, where banks are integrated into government, and serve as the bedrock for regional governance which replaces democratic nation state rule.

The Fed, and other central banks don’t have an endgame that includes helping the investor, the working class or middle class. Monetary policies of easing and monetary tools such as $85 billion of purchasing of debt is history, that is history in the sense that it has any useful benefit.

The world central bankers are effecting a global economic and political coup d’etat, … with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … pivoting the world from liberalism’s regime of nation state democracy into authoritarianism’s regime of regional statism, specifically regional governance and totalitarian collectivism.

Mankind’s journey of liberalism came to an end on October 23, 2013 with the failure of credit, AGG, the collapse of currencies, such as Brazilian Real, BZF, the Australian Dollar, FXA, the Euro, FXE,  and disinvestment out of Global Financials, IXG, World Stocks, VT, Nation Investment, EFA.

Mankind’s journey of authoritarianism commenced on October 23, 2013, with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio.  The provision of new world central bank monetary policies and schemes was the Genesis Event, that terminated the world out of the twin global former empires of the British Empire and the US Hegemonic empire, and into the new rule of the Ten Toed Kingdom, as foretold in bible prophecy by the prophet Daniel in his interpretation of the Statutes of Empire Dream of Daniel 2:25-45.

Under liberalism’s regime, credit underwrote all human social interaction; and currencies of nation states characterized the fiat money system. Another word for credit is trust. It was trust in the monetary policies such as Global ZIRP, and monetary tools, such as POMO, and QE of the world central bankers that supported the fiat money system’s debt trade and currency carry trade investment schemes

Liberalism has moved far to the right since its origination with Calvin and Hayek and Mises.  Contemporary liberalism is defined as nation state banker economic and political rule, characterized by clientelism and regulatory capture crony capitalism, municipal governance European socialism, as well as pork and patronage Greek socialism.  Contemporary liberalism has been very Orwellian, and with Obamacare, has passed the tipping point, and has fallen to authoritarianism.

It was world central bank policies of investment choice and schemes of credit and carry trade investing, that produced liberalism’s peak democratic nation state sovereignty, peak banker seigniorage, and moral hazard based peak prosperity.

With Obamacare one is no longer free to choose, as the health care policy is now of mandated health care with schemes of state insurance exchanges, so that seigniorage comes Health and Human Services Secretary Kathleen Sebelius’s seigniorage, which establishes debt servitude, as those without health care are subsidized by those with better paying jobs.

Under authoritarianism’s regime, diktat underwrites all human social interaction; and the mandates of regional nannycrats characterizes the diktat money system.  It will be trust in the world central bankers monetary policies such as regional banking supervision, and monetary tools such as the Fixed Rate Full Allotment Reverse Repo Facility, as well as the mandates of  regional nannycrats in statist oversight of the factors of the production, commerce, banking and trade, that will support the diktat money system’s schemes of debt servitude and austerity

Mankind’s economic and political experience has been and always will be one of mandates. There will never ever be any libertarian experience of freedom, that is liberty, as those of the Mises persuasion, long for.

Fiat investment choice was the way of life under liberalism’s nation state banker regime. Liberalism was an experience in credit, where the mandates of bankers supported by democratic nation state rule, coupled with currency carry trade investment produces tremendous prosperity in the pursuit of risk assets, such as Social Media, SOCL, Small Cap Pure Growth Stocks, RZG, Small Cap Pure Value Stocks, RZV, and Resorts and Casinos, BJK, as well as nation state investment, EFA, such as Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP.

Now compliance with diktat is the way of life under authoritarianism’s beast regime. Authoritarianism is an experience in debt servitude, where the mandates of nannycrats in regional governance and totalitarian collectivism, produces crushing austerity in the pursuit of regional security, stability, and sustainability.

Please consider that national state democratic rule is history and the Maastricht Treaty is simply an epitaph on one of the tombstones of the bygone era of liberalism.

The Maastricht Treaty was a scheme of liberalism, designed by the Council on Foreign Relations and leading European federalists to destroy the sovereignty of the British Empire and to establish a United States of Europe with ever increasing democratic deficit.

France played a key role in the development of the great European experience.  Dexia Bank, a joint French and Belgian endeavor, underwrote French municipal debt which for years served as the basis for money market funds, sustaining their constant one dollar value.

French municipal government was a leading factor in the development and ongoing support for French National Wage law which, with other national wage laws, served as part of the bedrock of Europoean Socialism.   Of note, the framework for the edifice of European Socialism came from European Financial Institution, EUFN, securitization and trade in Italy, EWI, and Greece, GREK, Treasury debt.

Mankind’s economic and political experience has been and always will be fiat, that is one of mandate. For the longest time it was centered in the rule of kings and priests.  But with liberalism, the experience matured into one of resource in the rule of bankers and democratically elected officials, beginning with in 1913 with the creation of the Creature From Jekyll Island. But on October 23, 2013, economic and political experience pivoted into liberalism, with the death of the former monster and the rise of appointed nannycrats ruling in the beast regime of regional governance and totalitarian collectivism, with the joint European Parliament and ECB announcement of European wide banking supervision.

Austrian economists dream of sovereign individuals and true democratic states, existing with free markets and sound monetary systems, where free prices and liberty prevail; for example Chris Rossini writes in Economic Policy Journal Ideas Created The Federal Reserve…Ideas Can Get Rid of It

But dispensationalist economists such as myself, perceive that Jesus Christ is acting in dispensation, Ephesians, 1:10, that is in the administrative plan of God, to bring forth the fullness and completion of every age, era, epoch, and time period; specifically that Jesus Christ has produced Liberalism’s peak experience of democratic nation state sovereignty, peak banker seigniorage, and peak moral hazard based prosperity, and that He has ended the Fed, something that Ron Paul could not do, and is now bringing forth a new monster, that being the beast of regional governance and totalitarian collectivism, which features the rule of nannycrats ruling in every of mankind’s seven institutions, these being 1) Education, 2) Finance, banking, commerce, investment and trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science & Technology, unifying all of these together into a complete whole in every one of the world’s ten regions, according to bible prophecy of Revelation 13:1-4, as well as Daniel 2:25-45.

The stock market, in turning from bull market to bear market, the week ending November 1, 2013, produced the following results:

Sectors trading lower this week included

Homebuilding, ITB, -4.0

European Financials, EUFN, -3.0

Social Media, SOCL -2.9

Biotechnology, IBB, -2.5

Small Cap Pure Growth, RZG, -2.5

Small Cap Pure Value, RZV, -1.7

Automobiles, CARZ, -1.7

Resorts and Casinos, BJK, -1.6

Paper Producers, WOOD, -1.4

Global Financials, IXG, -1.3

Yield Bearing Sectors trading lower this week included

Mortgage REITS, REM, -3.5

Residential REITS, REZ, -2.7

US Real Estate, IYR, -2.3

Small Cap Real Estate, ROOF, -2.1

Leveraged Buyouts,  PSP, -2.0

Nations trading lower this week included

Indonesia, IDX, -7.0

Turkey, TUR, -5.5

Argentina, ARGT, -5.0

Sweden, EWD, -4.2

South Africa, EZA, -3.9

Brazil Small Caps, EWZS, -3.8

Greece, GREK, -3.2

Chile, ECH, -3.1

Thailand, THD, -2.9

German Small Caps, GERJ, -2.9

Malaysia, EWM, -2.3

Switzerland, ESL, -2.2

US Small Caps, IWM, -2.1

Nation trading higher this week included

China, YAO, +2.8

India, SCIN, +2.3

Natural resource stocks trading lower this week included

Energy Production, XOP, -3.2, Small Cap Energy, PSCE, -2.4, on a lower price of Oil, USO, -3.4.

Silver Standard Resources, SSRI, -11.1, Silver Miners, SIL, -9.6, Gold Miners, GDX, -8.5, on a lower price of Silver, SLV, -2.9, and Gold, -2.7.

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