Liberalism Featured The Dynamos Of Creditism, Corporatism, And Globalism … Authoritarianism Features The Singular Dynamo Of Regionalism

Financial Market Report for the week ending December 13, 2013

This post can be found in Google Document presentation here

1) … Liberalism’s three main drivers of economic life, creditism, corporatism and globalism, fail to support investment choice, evidencing the death of the Creature from Jekyll Island as well as the Milton Friedman Free To Choose Floating Currency Regime.

Milton Friedman was the Father of liberalism’s policy of investment choice, as well as the father of its schemes of debt trade investing, and currency carry trade investing. Without Milton Friedman, investors could never have profited from Nation Investment, EFA, and there would have never been Global Financial Investment, IXG, globalism supporting global industrial production, FXR, and global trade.

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.

Richard Duncan posts in Bullion Vault a Podcast transcript titled Creditism & Growth from video newsletter Macro Watch, where Mr. Duncan talks with Porter Stansberry of Stansberry Radio about how creditism has been driving economic growth.

Richard Duncan: In this new age of paper money, as I call it, or fiat money, it’s credit growth that drives economic growth. I think we have a different kind of economic system than we used to. This isn’t capitalism anymore. I call it creditism.

Porter Stansberry: I like that.

Richard Duncan: Capitalism is driven by businessmen investing, making a profit, saving, accumulating capital, and repeating…hence capitalism. That was quite difficult but that’s how capitalism created economic growth. Well, since 1968, that’s not how our system has worked at all.

Our system has been driven instead by credit creation and consumption. And that’s created very rapid economic growth, much more so than traditional capitalism would have done. But again, as I said, it looks like creditism now is on the verge of imploding into a new great depression because the private sector can’t bear any more debt.

Richard Duncan: Well, it’s interesting. You know, I think something extraordinary is occurring, something completely separate from this paper money creation, and that’s globalization. And globalization is extremely deflationary. That’s because as a result of globalization, you no longer have to hire someone in Michigan and pay that person $200.00 a day to build a car. You can now hire your next worker in Western China and pay that person $10.00 a day, or even $5.00 a day in Chennai. So that means that the marginal cost of your next employee has dropped by 90-something percent. Nothing like this has ever happened in history, and it’s extremely deflationary.

So on the one hand; you have these extreme deflationary forces resulting because of globalization.

And they seem, at least for the time being, to be entirely offsetting the extraordinary inflationary pressures being created by the fiat money creation and all the credit creation. Creating something like a nirvana moment in history,

Porter Stansberry: But you know this has happened before in the 1920s, and back then it was Britain that was financing everything with new Dollars. And it was globalism that was keeping the inflation in check. But then all of a sudden, Smoot-Hawley came along and it became impossible to maintain that kind of international trade flows, and then everything fell apart.

The bull market has turned to bear market. The exhaustion of the world central banks monetary authority, on October 23, 2013, coming at the hands of the bond vigilantes calling the Interest Rate on The US Ten Year Note, ^TNX, higher from 2.48%, caused both the failure of credit growth, AGG, and currency growth, DBV, CEW, and which finally caused the failure of wealth growth, VT, on December 2, 2013; and will soon be a “genesis factor” in three things: 1) a fast falling stock market. 2) a fast occurring economic recession, 3) then an all out, credit bust and financial system breakdown, known as Financial Apocalypse, foretold in Bible prophecy of Revelation 13:3-4.

Richard Duncan wrote in May 2011 post of Richard Duncan Economics, Credit growth drives economic growth, until it doesn’t.  His article helps one further understand creditism.

2) … The singular dynamo of regionalism drives authoritarianism; regional nannycrats having pooled sovereignty and commanding seigniorage, that is moneyness, evidences the rise of the beast regime of regional governance and totalitarian collectivism.  

Inasmuch as fiat money, that is credit, AGG, together with Major World Currencies, DBV, and Emerging Market Currencies, CEW, died on October 23, 2013, and fiat wealth, VT, died on December 2, 2013, at the hands of bond vigilantes and the currency traders, one no longer is “free to choose” anything profitable for investment return, in what was a financialized and globalized world; rather one is a debt serf, in a regional gulag of diktat and debt servitude.

Inasmuch as liberalism’s fiat money and fiat wealth are both dead, liberalism as a paradigm and age, as well as its father Milton Friedman, is dead.  Nation State Investment, EFA, and Global Financial Investment, IXG, and Global Industrial Producer Investment, FXR, were activities of the prior paradigm and age of liberalism, where democratic nation state and banker sovereignty, established dynamos of creditism, corporatism and globalism, that supported policies of investment choice and schemes of credit and currency trade investment, for investment return.

Authoritarianism’s fathers are now emerging. Reporting from Open Europe, communicates that Greece and Ireland have been the test beds for evolving Eurozone regional economic government.  Now with regional nannycrats having pooled sovereignty, such be exercising budget powers in demanding more austerity in Italy and Spain, and establishing regionalism as the singular dynamo of economic life, in    the paradigm and age of authoritarianism, with the beast regime manifesting in regional governance with policies of diktat, and in schemes of debt servitude, establishing regional security, stability, and sustainability, to counter national economic recession, and to secure debt servitude.

Germany is pressing for Eurozone leadership. Open Europe publishes The First English Translation Draft Of The German Grand Coalition Agreement. The draft agreement states that the way out of the eurozone crisis is to “combine structural reforms and a strict, sustained continuation of budget consolidation.” The coalition will also be committed “to ensuring that the euro countries agree binding, enforceable and democratically legitimised contractual reform agreements at the European level.”

Authoritarianism features regional framework agreements, that is policies of diktat in regional governance, based upon regional fiscal sovereignty, and schemes of debt servitude in totalitarian collectivism. Open Europe reports Eurozone Reform Contracts Take Shape, And They Include Fiscal Transfers.

A profound change in the nature of government and moneyness is emerging. Regional government, not democratic nation states, is sovereign. And regional nannycrats, not banks and financial markets, provide seigniorage, that is moneyness.  Diktat policies of regional governance, and fiscal and debt servitude schemes of totalitarian collectivism, provide economic life in the EU.

Open Europe news reports FT  WSJ  FAZ  FAZ 2  Süddeutsche  Bild  Welt  Welt 2  Guardian: Posener clearly evidence that the beast regime of regional governance and totalitarian collectivism, with its seven heads occupying in each of mankind’s seven institutions, and its ten horns ruling in the world’s ten regional zones, presented in Revelation 13:1-4, is rising from sovereign, banking and corporate insolvency, and is making landfall in the Eurozone, occupying with feet of a bear in EU banking supervision in Frankfurt Germany; with mouth of a lion in NATO headquarters in Brussels; and camouflage of a leopard in ongoing technocratic governance in Greece as well as in ECB banking supervision from Berlin, and in nannycrat fiscal rule from Brussels enforcing budget rules demanding more austerity in Spain and Italy.

Jordan Shilton of WSWS reports Irish pseudo-left signs off on repaying EU bank bailout.  Ireland formally exited its €85 billion bailout from the troika of the European Union commission, European Central Bank, and International Monetary Fund this week. Agreed three years ago at the end of 2010, it has acted as a mechanism for a vast redistribution of wealth from the working class to the financial elite and the recapitalization of the country’s bankrupt financial institutions. Despite the rhetoric surrounding the formal exit from the programme emanating from the government, trade unions and the media, there will be no let-up in the austerity drive over the coming years. Prime Minister Enda Kenny confirmed that on December 16, the day after the bailout officially ends, his government will present an economic plan for the medium term, above all to reassure the financial markets that they will not let up in cutting public spending, attacking the wages and working conditions of the population and privatising public services.

Liberalism was characterized by monetary inflation, that is credit inflation, AGG, and currency inflation, that is Major World Currencies, DBV, and Emerging Market Currencies, CEW, fueling economic growth and global trade, where the banker regime financialized nation state fiat money.

Sober Look in Credit Writedowns Five Years Of QE And The Distributional Effects, communicates that liberalism featured the banker regime establishing investment choice. “Who really benefited since the first QE was launched? There is a great deal of debate on the topic, but here are a couple of facts. Financial asset valuations, particularly in the corporate sector have seen sharp increases. For example the S&P 500 index total return (including dividends) has delivered 144% over the 5-year period. Those who had the resources to stay with stock investments were rewarded handsomely .The housing recovery has certainly been helpful (for those who kept their homes), but according to the S&P Case-Shiller Home Price Index, US housing is up less than 5% over the past five years.”

But with the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, and economic recession coming from the failure of Credit, AGG, and Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging market Currencies, CEW, such as the Brazilian Real, BZF, as well as the failure of World Stocks, VT, becoming the new normal, these two forces (higher interest rates and economic recession) are the “genesis factors” for authoritarianism beast regime’s rise to power in regional integration, to establish regional security, stability, and sustainability, at the expense of crushing debt servitude.

Liberalism’s seigniorage, that is its moneyness, came via policies of credit, such as POMO, and the pursuit of yield, such as Junk Bonds, JNK, and carry trade investment, such as the EUR/JPY, juicing up World Stocks, VT,  risk assets such as Small Cap Pure Growth, RZG, and Nation Investment in Ireland, EIRL, its bank, IRE, and its companies, such as Seagate, STX, greatly rewarding investors.

Authoritarianism’s seigniorage comes in mandates of all kinds, such as in EU banking supervision, and in EU fiscal spending rules, and will result in a full fledged banking union, fiscal union, and economic union, where nannycrats exercise power in regional framework agreements to oversee the factors of production, commerce and economic trade, to establish regional security, regional stability, and regional sustainability.

While the Nordics, such as the Germans, the Dutch, and the Belgians will never be Latins, such as Greeks, the Spaniards and the Italians, all those living in Euroland will be one, living in a regional gulag of debt servitude, under the word, will and way of the Sovereign and the Seignior. The EU periphery will exist as hollow moons revolving around planet Berlin and planet Brussels.

The soon coming European Superstate comes from the concepts of the Euro’s Father, Columbia University Professor Robert Mundell, who received the 1999 Nobel Prize in Economics for his 1961 paper “A Theory of Optimum Currency Areas”, as cited by EconoLib.org and other internet resources.

The US Federal Reserve finally crossed the rubicon of sound monetary policy; the result was the failure of the US Fed money printing operation is seen in M2 Money trending lower. The US Federal Reserve site shows M2 Money peaked on 10-21-2013 at 10,988, Billion, and has been trending lower.

Just like fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, which died on October 23, 2013, M2 Money died, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.

The bursting of the fiat money bubble, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, and now the fiat wealth bubble, VT, on December 2, 2013, is resulting in the emergence of an new form of money, that being diktat money, where the components of M2 Money, will be placed under capital controls and under transfer restrictions, and the factors of production, commercial businesses as well as trading organizations, are overseen by regional monetary and economic cardinals, that is regional nannycrats, working in statist public private partnerships and workgroups to establish regional, security, stability, and sustainability in response to economic recession, and its indicators, such as CPI deflation, and monetary deflation, that is the fall lower in the value of money, as well as the accumulation of M2 Money, dwindling lower in nominal value.

Ludwig Von Mises, wrote of the new order in Planned Chaos, relating “There are two different patterns for the realization of socialism.

The one pattern, we may call it the Marxian or Russian pattern, is purely bureaucratic. All economic enterprises are departments of the government just as the administration of the army and the navy or the postal system.”

“The second pattern,we may call it the German or Zwangswirtschaft system, differs from the first one in that it, seemingly and nominally, maintains private ownership of the means of production, entrepreneurship, and market exchange. So-called entrepreneurs do the buying and selling, pay the workers, contract debts and pay interest and amortization. But they are no longer entrepreneurs. In Nazi Germany they were called shop managers or Betriebsführer. The government tells these seeming entrepreneurs what and how to produce, at what prices and from whom to buy, at what prices and to whom to sell. The government decrees at what wages labourers should work, and to whom and under what terms the capitalists should entrust their funds. Market exchange is but a sham.”

3)  … The failure of fiat wealth that started Monday December 2, 2013, with the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher, from 2.74%, intensified as Mario Draghi announced a new monetary policy Mandate the week ending December 6, 2013.

Lukanyo Mnyanda and Anchalee Worrachate of Bloomberg report Italy’s Bonds drop with Spain’s on concern ECB to limit support A Mario Draghi Mandate prevents lenders from using future loans it provides to buy sovereign debt.

The ECB Mario Draghi December 6, 2013 banking and sovereign debt policy Mandate, establishes Mario Draghi as the EU’s Seignior, that is the top dog banker, who in minting money takes a cut, and establishes the Eurozone as a region of economic governance.

Last week, on Friday December 6, 2013, the world pivoted fully and completely out of the paradigm and age of liberalism, and into that of authoritarianism, on the announcement of the ECB Mario Draghi Mandate as is evidenced by the trade lower in World Financials, World Stocks and Nation Investment.

World Financials, IXG, closed 1.2% higher, on the day, 1.5%, lower on the week.

World Stocks, VT, closed 1.2% higher, on the day, 0.8%, lower on the week.

Nation Investment, EFA, close 1.2% higher, on the day, 1.3%, lower on the week.

Loss leaders for the week were the European Financials, EUFN, the Brazil Financials, BRAF, and Retail, XRT,  Major Airlines, and Apparel Retailers. Falling stock prices are a deflationary omen as well as a destabilizing economic factor causing economic recession.

European Financial, EUFN, closed 1.8% higher, on the day, 2.4%; lower on the week.

Eurozone Stocks, EZU, closed 1.4% higher, on the day; 2.1% lower on the week.

Ireland, EIRL, closed 1.2% higher, on the day; 1.5% lower on the week.

Italy, EWI, closed 1.5% higher, on the day; 3.5% lower on the week.

Greece, GREK, closed 0.4% lower, on the day; 1.8% lower on the week.

Spain, EWP, closed 0.8% higher, on the day; 3.2% lower on the week.

The failure of investment seigniorage in the European Financials, EUFN, which drove Euorpean Stocks, EZU, and EU Nation Investment, in Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, lower is most striking, given the rallying EURJPY, seen in chart of the spread between Ultra Long Euro, ULE, and Ultra Short Yen, YCL.

The chart of Eurozone Stocks, EZU, relative to Eurozone Debt, EU, that is EZU:EU, communicates that stocks are no longer able to leverage higher over debt. Eurozone nation states such as Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, no longer provide investment seigniorage, that is investment moneyness.

In Europe, recession is underway: genuine disinflationary and deflationary cycle is at work: disinflation (falling prices) and deflation (falling aggregate demand) are both occuring.  And now with the trade lower in fiat wealth, that is World Stocks, VT, on the week ending December 6, 2013, coming on the rise of the Benchmark Interest Rate, ^TNX, to 2.88%, a marked epic change has occurred, that being the destruction of both fiat money defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, as well as fiat wealth, defined as Eurozone Stock, EZU. These are trading lower evidencing that the world has pivoted out of the paradigm and age of liberalism, and into that of authoritarianism.

On Monday, December 9, 2013, Fiat wealth, that is World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, failed to trade higher on a rallying EUR/JPY, which closed at 141.90, and failed to trade higher on the trade lower in Aggregate Credit, AGG, as the bond vigilantes took profits, resulting in a trade lower in the Interest Rate on the US Ten Year Note, ^TNX, to 2.86%, thus evidencing the failure of trust in the democratic nation state and banker regime’s monetary policies to continue global growth, that commenced on October 23, 2013, when the rate rose above 2.48%

Given the failure of the seigniorage, that is the moneyness of carry trade investing, as well as debt trade investing, seen in Aggregate Credit, AGG, trending lower, and Junk Bonds, JNK, trading higher, it is reasonable to conclude that the sovereignty of the democratic nation state and banker regime has failed.

A failure of both sovereignty and seigniorage communicates that fiat money is dead; it is reasonable to conclude that out of waves of national and global recession, new sovereignty and new seigniorage will produce  new money.

Sectors trading higher on the lower Benchmark Interest Rate, ^TNX, and on the continuing rise in the EUR/JPY carry trade, were the global growth sectors, Resorts and Casinos, BJK, IPOs, FPX, which manifested a blow off top, Social Media, SOCL, Transportation, XTN, Nasdaq Internet, PNQI, and Semiconductors, SMH, such as Micron, MU, and Texas Instruments, TXN.

Infrastructure industrial producers trading higher included Textile Manufacturer, MHK, Alcoa Aluminum, AA,  Steel Producers, SLX, such as, CMC, SXC, ROCK, X, STLD,  Metal Manufacturers, such as ATI, AKS, VMI, GSM, CRS, MLI, RS, PCP, GHM, AZZ, HAYN, TOWN, PKOH,  Industrial Miners, such as ZINC, SLCA,  Machine Tool Manufacturers, such as NNBR, CVR, ROLL, HDNG,  ITW,  Automation Providers, such as ROK, AME, SXI,  Major Chemical Manufacturers, such as CE, FMC, ARG,  Cleaning Product Manufacturers, such as ECL,  Cement Manufacturers, such as EXP, and Specialty Chemical Manufacturers, such as PPG, seen in this Finviz Screener.

Sectors trading lower included Solar Energy, TAN, Spin Offs, CSD, traded lower. Industrial Metal Mining, PICK, also traded lower on a lower BHP Billiton, BHP, a lower Uranium Miners, URA, a lower Rare Earth Miners, REMX, and a lower China Minerals, CHIM.

Yield bearing sectors trading higher included Real Estate, IYR, and Global Telecom, IST,  on the lower Benchmark Interest Rate, ^TNX.

Yield bearing sectors trading lower included Australia Dividends, AUSE, Electric Utilities, XLU, North American Energy Partnerships, EMLP, and Global Real Estate, DRW; these traded lower as the trade lower in interest rates was only miniscular, and was not enough lower to boost these higher.

Aggregate Credit, AGG, traded slightly higher; Junk Bonds, JNK, rose to a new rally high, on the lower Benchmark Interest Rate, ^TNX, and the continuing rise in the EUR/JPY carry trade.

India Earnings, EPI, and Brazil Financials, BRAF, traded higher, taking Emerging Market Financials, EMFN higher, on a higher India Rupe, ICN, and on a higher Brazilian Real, BZF, and on today’s much lower Japanese Yen, FXY, which closed at 94.57.

Nations trading higher on a trade lower in the Benchmark Interest Rate, as well as on a continuing rise in the EUR/JPY carry trade included Egypt, EGPT, Mexico, EWW, South Korea, EWY, Argentina, ARGT, Russia, RSX, and ERUS,  …  India, INP and SCIN, on a continuing rise in the ICN/JPY carry trade …. Brazil, EWZ, and EWZS, on a continuing rise in the  BZF/JPY carry trade …. The Eurozone, EZU, Spain, EWP, Italy, EWI, and Greece, GREK, as well as the European Financials, EUFN, such as the National Bank of Greece, NBG, on a continuing rise in the EUR/JPY carry trade. The Nikkei, NKY, traded higher on the strongly lower Japanese Yen, FXY, which closed at 94.57.

Nations trading lower included Australia, EWA, KROO, and Philippines, EPHE,  And China, YAO, traded, with China Small Caps, ECNS, China Industrials, CHII, China Financials, CHIX, and China Real Estate, TAO, all lower

Gold, GLD, traded 1.0% higher and Silver, SLV, traded higher 1.9% higher; these like a ball filled with air pops higher after having been submerge, taking Gold Miners, GDX, 2.6% higher.  If I were to invest in a gold mining stock, NGD, 3.8% higher or RGLD, 2.4%, higher, would be my choices. If I were to invest in a silver mining stock, SLW, 2.8% higher, or HL, 2.8%, higher, would be my choice.

On Friday December 6, 2013, Bloomberg reported Italy’s Bonds Drop With Spain’s on concern ECB to limit support. Italian 10-year bonds fell, with yields rising the most in more than two months, on speculation the European Central Bank will prevent lenders using future loans it provides to buy sovereign debt. Spanish 10-year securities dropped for a third week. German 10-year yields climbed by the most since August as a report yesterday showed U.S. employers added more workers in November than analysts forecast and the jobless rate dropped, boosting the case for the Federal Reserve to cut stimulus. The ECB wants to ensure any future offerings of long-term cash find their way into the economy, and not hoarded by banks, President Mario Draghi said after a policy meeting in Frankfurt.

ECB monetary policy changed effective Friday December 6, 2013; no more OMT; it no longer exists; it is gone forever. The ECB no longer underwrites banks, this means that credit growth is no longer provided to European Financial Institutions, EUFN, specifically Ireland’s, IRE, Spain’s, SAN, Greece’s, NBG, and Germany’s DB, for the purpose of purchasing nation state treasury debt.

On Monday, Eurozone Stocks, EZU, were carried higher on the higher EUR/JPY carry trade, and EU Debt, EU, traded lower, on both the trade lower in the Benchmark rate, and on the December 6, 2013, ECB Mario Draghi Mandate that prevents lenders from using future loans it provides to buy sovereign debt.

The December 6, 2013, ECB Mario Draghi monetary policy Mandate, that prevents lenders from using future loans it provides to buy sovereign debt, establishes Mario Draghi as the EU’s sovereign monetary authority, specifically as the EU’s Seignior, that is top dog banker, who in minting money, takes a cut, and establishes the EU as a region of economic governance, having policies of diktat, and schemes of debt servitude.  The Mario Draghi monetary policy Mandate establishes Mario Draghi as father of Eurozone regional governance.

The December 6, 2013, Mario Draghi monetary policy Mandate, means the end of low Treasury Debt Interest Rates in the EU. It terminates liberalism as both a paradigm and age; the democratic nation state and banker regime that was liberalism’s vessel of economic experience, has been sterilized, better said, destroyed as if by a neutron bomb, that leaves the structure intact, but obliterates all life inside. The ECB Draghi Mandate pivots the EU into authoritarianism, as both a paradigm and age.

Now, business credit comes from EU’s Seignior, Mario Draghi, and sovereign credit comes from the sovereign debt market place, as it should have been all along, which means funding of Eurozone nation Treasury Debt, will be nada, nothing, and not forthcoming, as buyers of this debt know that the PIIGS are insolvent sovereigns and their banks insolvent financial institutions.  The funding of nation state fiscal spending has been literally cut off by the ECB Mario Draghi December 6, 2013 Mandate. While seemingly to support creditworthy firms, the Mandate is the “genesis factor” that introduces deep recession by eliminating the ECB OMT funding of the EU nation states fiscal budgets.

Eurozone nation states, such as Portugal, Italy, EWI, Greece, GREK, and Spain, EWP, must look to the financial marketplace to purchase Treasury Debt.  Eurozone fiscal seigniorage, that is fiscal moneyness, that came through LTRO 1, 2, and OMT, has been dealt a lethal blow, and as a result democracy nation state sovereignty has collapsed overnight as a result of ECB Mario Draghi’s diktat that prevents lenders from using future ECB loans to buy sovereign debt.

New regional sovereignty has emerged in Europe. The Eurozone, as a region of economic governance, was fathered, that is has come into being, by the December 6, 2013, Mandate of the ECB’s Chairman.  Mario Draghi.  In announcing the Mandate that prevents lenders from using future loans the ECB provides to buy sovereign debt, Mario Draghi has destroyed liberalism’s fiat money, and has minted diktat money, that is money that comes by decree, and has announced Eurozone regional economic governance without any democratic constitution.  Eurozone regional economic governance has simply come into being through the word, will, and way of Mario Draghi; this establishes Mario Draghi as the EU’s Seignior in charge of regional monetary policy and regional credit.

Life under liberalism was an experience in a debt trade and a currency carry trade, as is seen in the ongoing Yahoo Finance chart of Electric Utility, Vectron, VVC, together with Asset Manager, Blackrock, BLK, and Retail REIT, SPG, Iron Ore Miner, RIO, Steel Producer X, and Life Insurance Company, PUK.  Life was a series of puts, as Forbes reported Bernanke doubles down on Greenspan Put, Larry Summers exhales in comment at the start of QE3.

Life under authoritarianism is an experience in debt servitude; now, life is a series of calls, such as the call of the bond vigilantes of the Interest Rate On the US Ten Year Note, ^TNX, higher, and the Mario Draghi call to experience in policies of regional governance and schemes of austerity and debt servitude as AP reports Ireland faces more austerity as bailout era ends.

Zac Hambides of WSWS reports Rio Tinto shuts down Gove Australia alumina refinery. Global mining giant Rio Tinto announced late last month it would shut down its alumina refinery on the Gove peninsula in the Northern Territory, directly destroying 1,100 jobs. The decision will devastate the remote town of Nhulunbuy, 1,000 km from the nearest city of Darwin, which has a population of 4,000 and is heavily dependent on the plant.

An inquiring mind asks, did you benefit from the Ben Bernanke put? …  Are you hearing the calls?

Under liberalism bankers waived wands of credit and carry trade investing, producing fiat wealth; but now, under authoritarianism nannycrats govern with clubs of debt servitude.

Bible prophecy of Revelation 13:1-4, and Revelation 13:5-10, foretells that out of ever increasing waves of Southern Europe sovereign insolvency, banking insolvency, corporate insolvency, and recession, the Sovereign will emerge to rule Europe. He will be supported by the Seignior who mints the Sovereign’s diktat money.  The word, will and way of these two, will replace all traditional constitutional, nation state and regional law, as they rule in diktat policies of regional economic governance, and in debt servitude schemes of totalitarian collectivism.

The December 6, 2013, Mandate of Mario Draghi is powering up the singular dynamo of regionalism for the purpose of regional stability, regional security, and regional sustainability. While purposed for economic growth, the ECB Mario Draghi Mandate that prevents lenders from using future loans the ECB provides to buy Treasury Debt, EU, has destroyed nation state investment, EFA, specifically in the Eurozone, EZU, that is investment in Portugal, Italy, EWI, Ireland, IRE, Greece, GREK, and Spain, EWP, has destroyed Global Financial Investment, IXG, and European Financial Institution Investment, EUFN, such as in Ireland’s bank IRE, Greece’s bank NBG, and Spain’s bank, SAN.

The ECB Chairman, Mario Draghi’s December 6, 2013 Mandate has commenced the destruction of fiat wealth, that is Stock Wealth, VT, and will create a global economic recession, and is the “genesis factor” of a soon coming global credit bust and financial system breakdown, that being Financial Apocalypse, as foretold in Bible prophecy of Revelation 13:3-4.

Authoritarianism is characterized by monetary deflation, that is credit deflation, AGG, BWX, EU, and currency deflation, DBV, CEW, FXE, all turning lower in value, stimulating investors to derisk out of fiat wealth, that is World Stocks, VT, as is seen in the Risk Off ETN, OFF, rising in value, which terminates global economic growth and global trade, and introduces economic recession where the beast regime of regional governance and totalitarian collectivism rules via diktat money.

On Tuesday, December 10, 2013, bond vigilantes took further profit, and the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.80%, enabling Aggregate Credit, AGG, and European Debt, EU, to trade higher. Junk Bonds, JNK, manifested a spinning doji at the top of an ascending wedge, with Losa Abramowitz reports State Street’s $9.7 billion junk-bond ETF reported its biggest one-day redemption since June on Friday December 6, 1013. .

World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, all traded lower on an unwinding ICN/JPY carry trade, and an unwinding EUR/JPY carry trade, with Investing.com chart showing close at 141.45. Rodrigo Campos of Reuters reported S&P 500 slips from record. Stocks fell a day after a record close on the S&P 500. The Fed’s policy-setting Federal Open Market Committee meets Tuesday and Wednesday next week.

World Stocks, VT, -0.1%, as investors deleveraged out of:  1)  Global Growth Investment, Small Cap Industrials, PSCI, -1.2%, Spin Offs, CSD, -1.1, Transportation, XTN, -1.0, Pharmaceuticals, PJP, -0.9%, Small Cap Pure Growth, RZG, -0.8%, Biotechnology, IBB, -0.8, and 2)  Consumer Spending Investment, Small Cap Consumer Staples, PSCC, -2.1%, Small Cap Pure Value, RZV, -1.1%Small Cap Consumer Discretionary, PSCD, -1.0%, Food and Beverage, PBJ, -0.9%

Global Financials, IXG -0.4% with Regional Banks, KRE, -1.0%, with leaders SNV, RF, ZION, USB, trading lower. Of note, credit providers, Sallie Mae, SLM, and Visa, V, traded lower

Nation Investment, EFA, -0.2 %. The Philippines, EPHE, and Singapore, EWS, EWSS, fell strongly lower.  India Infrastructure, INXX, India Small Caps, SCIN, India, INP, and India Earnings, EPI, traded lower on an unwinding ICN/JPY carry trade.  Eurozone, EZU, and European Financials, EUFN, traded lower on an unwinding EUR/JPY carry trade. China, YAO, traded, lower with China Small Caps, ECNS, China Industrials, CHII, China Financials, CHIX, and China Real Estate, TAO, trading lower, as the Chinese Yuan, CYB, popped higher in recognition that it has been set free from PBOC intervention.  The Nikkei, NKY, traded lower. The rising trade in Hong Kong, EWH, relative to Shanghai, CAF, and China, YAO, suggests that this whole complex, is set for a correction.

In the yield bearing sectors, Utilities, XLU, -1.0%, Dividend Appreciation, VIG, -0.5%, North American Energy Partnerships, AMJ, -0.4, Energy Partnerships, AMJ, -0.3

Social Media, SOCL,  rose 4.6, Nasdaq Internet, PNQI, 1.5%, and Internet Retailers, FDN, 0.9%; all  to new rally highs.

Gold, GLD, blasted 1.7% higher, and Silver, SLV, traded higher 2.9% higher; these very much like a ball filled with air pops higher after having been submerge, taking Gold Miners, GDX, 3.8% higher, and Silver Miners, SIL, 4.0% higher.

The Investor’s Weather Vane ETFs, Call Write Bonds, CWB, -0.1%.

Volatility ETFs, TVIX,VIXY,VIXM, seen in this Finviz Screener, traded higher.

Volatility, XVZ, and the other ETFs, seen in this Finviz Screener have bottomed out, and could be used as a basis of margin for a short selling account.

Open Europe relates Les Echos Le Figaro Le Express Les Echos Irish Times  report The French National Union of Liberal Professions (UNAPL) representing 750,000 professionals in the service sector have launched a nationwide campaign declaring in a leaflet to all French households that they are “asphyxiated” by taxation and excessive government regulation.

Mike Mish Shedlock reports  French Industrial Output drops unexpectedly; France Finance Minister in complete denial; Expect the unexpected.

Reuters report Greek deflation hits record in November, at -2.9 pct  And Euro News reports Greek deflation at record and could threaten future recovery from recession. And CNBC reports EADS cuts 5,800 jobs amid massive restructuring The aerospace and defense giant, which is part-owned by the French and German governments, has around 140,000 employees worldwide.

On Wednesday, December 11, 2013, Fiat Money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower again, driving fiat wealth, VT, lower.

Global Financials, IXG, led Nation Investment, EFA, and World Stocks, VT, lower, as the Bond Vigilantes continued calling the Benchmark Interest Rate, ^TNX, higher from 2.8%, and steepening the 10 30 US Sovereign Debt Yield Curve. The volatility ETFs, TVIX,VIXY,VIXM, rose strongly higher as volatility, ^VIX, burst out.

The bond vigilantes in calling the Benchmark Rate, ^TNX, higher from 2.8%,  and in steepening the 10 30 US sovereign debt Yield Curve, $TNX:$TYX, are effecting eight pivotal economic changes: 1) destroying Banks, IXG, worldwide,  2) destroying the sovereignty and seigniorage of nation states, EFA, such as debt impaired Italy, EWI, global trade South Korea, EWY, global industrial mining Australia, EWA, the current account deficit BRICS, EEB,  3 and 4) destroying global industrial production and global growth,  5) and are destroying yield investment in Real Estate, IYR, Global Real Estate, DRW, and Global Utilities, DBU, Utilities, XLU, Global Telecom, IST, Global Health Care, IXJ, and Health Care Provider, IHF, and Medical Devices IHI, as is seen in the ongoing Yahoo Finance chart of DRW, IST, PSP, DBU, IXJ, and IHI,  6) investment in consumer spending, 7) investment in infrastructure development, 8) energy production.

The currency traders in selling currency carry trades reinforces the destructionism of bond vigilantes. For example, the currency traders have followed on the heels of the bond vigilantes by selling the Swedish Krona Japanese Yen cross, SEK/JPY, FXS:FXY, destroying nation investment in Sweden, EWD, and its consumer goods producer and automobile parts manufacturer, ALV.

In short the bond vigilantes, by calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.80%, and the currency traders by selling currency carry trades, have have introduced financial market risk, into what was under QE a riskless trade, and have pivoted the world out of the paradigm and age of liberalism and into that of authoritarianism. Their combined actions are unleashing waves of recession, and societal strife commencing Kondratieff Winter.

The Elliott Wave 3 of 3 Up that commenced with the bond vigilantes calling the Benchmark Interest Rate, $TNX, higher from 2.48%, on October 23, 2013, seen in the Risk Off ETN, OFF, trading higher,   has unleashed destructionism replacing inflationism, and has pivoted the world out of the paradigm and age of liberalism and into that of authoritarianism. The Elliott Wave 3 of 3 Waves are the most sweeping of all waves, they create the bulk of wealth on the way up, and destroy most of the wealth on the way down. This wave will make the bankers holding Interest Rate Swaps, that came as part of liberalism’s POMO, awesomely wealthy.

Mankind has always been subjected to economic and political waves, and out the waves of sovereign, banking, and corporate waves of Club Med, that is Portugal, Italy, Greece, and Spain, will come a type of revived Roman Empire, seen in Revelation 13:1-4, that is one led by an Emperor, foretold in Revelation, 13:5-10, and accompanied by a Monetary and Economic High Priest, presented in Revelation 13:11-18.

Global Financials, IXG, traded 1.5% lower today, on awareness of the ECB’s Mario Draghi Mandate, and awareness that Chinese Banks, not the PBOC, will bear lending losses.

China Financials, CHIX, -3.5, Chinese financials led the way lower as MarketWatch reveals that China officials mandated that they share lending risks amongst themselves; and that the PBOC will not be responsible for lending failures.

India Earning, EPI, -2.4

Brazil Financials, BRAF, -2.4

India Earnings, EPI, -2.5

Too Big To Fail Banks, RWW, -1.5

Regional Banks, KRE, -1.2

European Financials, EUFN, -1.0

Stock Brokers, IAI, -1.0

Nation Investment, EFA, traded 1.0% lower; nations trading lower included the following

Brazil, EWZ, -3.1%, Brazil, a global trade nation, with a large current account deficit, as well as a massive amount of debt of all type, traded lower on the rise of the Interest Rate from 2.8%. The Nation of Brazil, EWZ, the Brazil Financials, BRAF, Brazil Infrastructure, BRAF, are at the lead of the pivoting of the world out liberalism and into authoritarianism.

India, INP, -3.1%, India, a nation having a large current account deficit, traded lower now that an important election is over.

China, YAO; -2.9%, China, a leading global industrial production nation is adversely affected by the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher from 2.89%, and the evaporation of global trade, as wll as credit concerns, read interest rate issues, in its banking sector, CHIX. are destroying nation investment in China, as MarketWatch reported that China Financial Institutions, CHIX, will bear lending risk and not the PBOC government.

Indonesia, IDX, -2.5; Indonesia, a nation with a large current account deficit, traded lower on the rise of the Benchmark Interest Rate from 2.80%.

Turkey, TUR, -2.5

South Africa, EWA, -2.1

South Korea, EWY -2.1; South Korea, a leader in global growth, traded lower on the call higher of the Benchmark Interest Rate, ^TNX, from 2.80% on December 11, 2013.  Liberalism’s Global ZIRP regime was the platform for global industrial production, such as Steel production, SLX, and electronics production, such as Samsung.  But the “extinction event” of the bond vigilantes calling the Interest Rate, ^TNX, higher from 2.48%, on October 23, 2013, and calling the Benchmark rate, ^TNX, higher once again, on December 11, 2013, from 2.80%, terminated the seigniorage, that is moneyness, of nation investment in South Korea, EWY, its banks, KB Financial Group, KB, Woon Financial, WF, Shinhan Financial, SHG, global industrial production of Steel, SLX, and yield investing in Global Utilities, DBU, such as Electric Utility, KEP

US Small Caps, IWM, -1.7; The US small caps, being interest rate sensitive, traded lower on the higher Benchmark, ^TNX, Interest Rate, from 2.8%, and on the trade lower in Regional Banks, KRE.

Mexico, EWW, -1.7

Russia, RSX, -1.6

Australia, EWA, -1.5; Australia, a industrial metal mining leader, PICK, traded lower on the trade lower in the AUD/JPY carry trade, and on the rise in the Benchmark Interest Rate, ^TNX from 2.80%.

Greece, GREK, -1.6

Italy, EWI, -1.6; Italy is at the leading edge of concern over the sustainability and issuance of Eurozone nation Treasury Debt, EU, now that the ECB’s Mario Draghi Mandate of December 6, 2013, prevents lenders from using future loans it provides to buy sovereign debt

Sweden, EWD, -1.5, Sweden a global trade nation, with a current account deficit is experience investment derisking coming at the hands of the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher, from 2.80%, coupled with the currency traders selling the Swedish Krona Japanese Yen carry trade, that is the SEK/JPY, FXS:FXY.

World Stocks, VT,  traded 1.2 lower, on the call higher of the Benchmark Interest Rate, ^TNX, from 2.8%. All investment areas traded lower.

Global growth investment; sectors trading lower included.

Solar, TAN, -3.6

Social Media, SOCL -3.4

Medical Devices, IHI, -3.1, such as Ireland’s COV,

Spin Offs, CSD, -2.5

Biotechnology, IBB, -2.5

Nasdaq Internet, PNQI, -2.2

Pharmaceuticals, PJP -2.1 such as JNJ

Software, IGV -1.8

Transportation, XTN, -1.5

Semiconductors, SMH, -1.5

Global Industrial Production investment; sectors trading lower included

China Industrials, CHII, -1.8

Global Industrial Producers, FXR, -1.8

US Production, PKB, -1.8

Consumer spending investment, sectors trading lower included

Nasdaq Internet, PNQI -2.1

Healthcare Producers, IHF, -2.1

Risk Investment, RZV, -1.8

Internet Retail, FDN, -1,.5

Infrastructure investment; sectors trading lower included

Coal Producers, KOL, -2.5

Alcoa Aluminum, AA, -2.3

Steel, SLX, -2.3

Timber Producers WOOD, -2.0

Industrial Metal Mining, PICK, -1.9

Automobile Producers, CARZ, -1.8

Copper Miners, COPX, -1.5

Yield bearing investment; sectors trading lower included

Industrial Office REITS, FNIO, 2.2

Real Estate, IYR, -2.2

Residential REITS, REZ -2.2

Global Real Estate, DRW, -1.8

Global Utilities, DBU, -1.3

Aggregate Credit, AGG, traded lower, as the bond vigilantes, called the Interest Rate on the US Ten Year Note,  ^TNX, higher to 2.84%, and steepened the 10 30 US Sovereign Debt Yield Curve. And Junk Bonds, JNK, traded lower from its all time rally high.

On Thursday, December 12, 2013, Global Financials, IXG, 0.6% lower, forcing Nation Investment, EFA, 0.7%, lower, and World Stocks, VT, traded 0.6%, lower

Global Financials, IXG, traded 0.6% lower. on unwinding currency carry trade investing, and on awareness of the ECB’s Mario Draghi Mandate.

India Earning, EPI, -1.9

Brazil Financials, BRAF, -2.3

European Financials, EUFN,  -1.5, closed lower on the ECB’s Mario Draghi Mandate.

Nation Investment, EFA, traded 0.7% lower. Nations trading lower included the following

Australia, EWA, -2.5%, closed lower on an unwinding AUD/JPY carry trade.

India, INP, -2.5, closed lower on an unwinding INR/JPY carry trade.

Sweden, EWD, -2.0, closed lower on a higher Interest Rate on the US Ten Year Note.

Norway, NORW, -1.8, closed lower on a higher Interest Rate on the US Ten Year Note.

Switzerland, EWL,-1.6, closed lower on a higher Interest Rate on the US Ten Year Note.

Netherlands, EWN, -1.5%, closed lower on awareness of the ECB Mario Draghi Mandate.

Italy, EWI, -1.2%, closed lower on awareness of the ECB Mario Draghi Mandate.

Spain, EWP, -1.1, closed lower on awareness of the ECB Mario Draghi Mandate.

Ireland, EIRL, -1.0, closed lower on awareness of the ECB Mario Draghi Mandate.

Philippines, EPHE, -1.0

United Kingdom, EWU, -1.0, closed lower on awareness of the ECB Mario Draghi Mandate.

World Stocks, VT, traded 0.6% lower; Stocks trading lower on unwinding carry trade investment included the following

In the United Kingdom

PUK, out of EWU -1.0% … GBPJPY, closed lower at 169.02; this is also seen in FXB:FXY

WPPGY, out of EWU … GBPJPY

ARMH, out of SMH, -1.0%, and out of EWU … GBPJPY

DEO, out of PBJ, -1.0%, and out of KXI, -1.0%, and out of EWU … GBPJPY

RUK, out of PBS, and out of EWU … GBPJPY

SNN, out of IHI, and out of EWU … GBPJPY

LYG, out of IXG, and out of EWU … GBPJPY

The chart of GBPJPY, together with EWU, PUK, WPPGY, ARMH, DEO, RUK, SNN, and LYG, communicates that the leading Global Financial Institution, IXG, Lloyds Banking Group, LYG, together with the British Pound Sterling Japanese Yen currency carry trade, has given seigniorage to UK Stocks, EWU, over the last two years.

PUK, has very much been a debt trade, this is seen in its Long Term Debt to Equity Ratio of 1.0.

DEO, has very much been a debt trade, this is seen in its Long Term Debt to Equity Ratio of 1.1

In Switzerland,

TEL, out of EWL  -1.6%, … DKK/JPY,  closed lower at 19.05

ABB, out of EWL … DKK/JPY

NVS, out of PJP, and out of EWL … DKK/JPY

UBS, out of EUFN, -1.5%, and out of EWL … DKK/JPY

In India,

TTM, out of CARZ, and out of INP, -2.5%,  … INR/JPY, closed lower at 1.67

WIT, out of INP … INR/JPY

SSLT, out of INP …  INR/JPY

INFY, out of INP … INR/JPY

EPI, -1.9%, … INR/JPY

IBN, out of INP  … INR/JPY

HDB, out of INP … INR/JPY

In the Eurozone, stocks traded lower, despite a rising EUR/JPY, on awareness of the ECB’s Mario Draghi Mandate.

STX, out of EIRL, -1.0, EZU, -1.0% … EUR/JPY, traded higher to close at 142.40

CRH, out of EIRL, EZU … EUR/JPY

COV, out of EIRL, EZU … EUR/JPY

IRE, out of EUFN, -1.5%, and out of EIRL, EZU … EUR/JPY

SAN, out of EUFN, -1.5%, and out of EWP, -1.1, EZU … EUR/JPY

AEG, out of EWN, -1.5%, EZU … EUR/JPY

ASML, out of EWN, EZU … EUR/JPY

VPRT, out of EWN, EZU … EUR/JPY

ENL, out of PBS, and out of EWN, EZU … EUR/JPY

PHG, out of EWN, EZU … EUR/JPY

ING, out of EWN, EZU … EUR/JPY

CBI, out of FLM, and out of -1.1 EWN, EZU … EUR/JPY

NBG, out of EUFN, -1.5%, and out of GREK, EZU … EUR/JPY

CCH, out of GREK, EZU … EUR/JPY

EWI, -1.2%, EZU  … EUR/JPY, traded lower on awareness of the ECB’s Mario Draghi Mandate.

BUD, out of PBJ, -1.0, and out of KXI, -1.1, and out of EZU… EUR/JPY

NVO, out of PJP, and out of EZU … EUR/JPY

BHP, out of EWA, -2.5% … AUD/JPY, closed lower at 92.39

WBK, out of EWA … AUD/JPY

AUSE, -2.0 out of EWA … AUD/JPY

Sectors trading lower included

Global growth investment

Semiconductors, SMH, -1.0

Medical Devices, IHI, -1.0

Pharmaceuticals, PJP, -1.0

Infrastructure investment

Networking, IGN, -1.1

Design Build, FLM, -1.0

Industrial Metal Mining, PICK, -1.0

The bond vigilantes and currency traders, being active in destructionism, are causing investment derisking out of infrastructure investment as is seen in the Bloomberg report Cisco cuts sales forecast as emerging market sales stall. Cisco Systems, CSCO, the biggest maker of computer-networking equipment, reduced its revenue forecast for the next three to five years amid weaker demand from emerging markets and telecommunications-service providers. The company expects average sales growth of 3 percent to 6 percent in the coming years, Chief Financial Officer

Consumer spending investment

Food and Beverage, PBJ, -1.0

Health Care Providers, IHF, -1.0

Consumer Staples, KXI, -1.0

Global industrial production investment,

China Industrials, CHII, -1.8%

Gold, GLD -2.1%, and Silver, SLV, -3.8%. Aggregate Credit, AGG, -0.15%, as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.88%. Major Currencies, DBV, -0.4%, and Emerging Market Currencies, CEW, -0.1%.

On Friday December 13, 2013, the financial markets were very quiet; there was little trading action, as all awaited Fed Speak. The Yen, FXY, recovered from a five year low, causing the EUR/JPY to close slightly lower at 142.20

Global Financials, IXG, traded slightly higher, as Japan’s Banks, MTU, and NMR, and Credit Provider, IX, and India Earnings, EPI, traded lower.

World Stocks, VT, traded slightly lower, as Energy Production, XOP, traded slightly lower; this is an investment avenue that I usually do not cover as it seems fairly priced to me. I present the investment leaders in this Finviz Screener; of note, Anadarko Production, APC, plummeted 6.4%. Software, IGV, US Infrastructure, PKB, Resorts and Casinos, BJK, and Small Cap Pure Value, RZV, traded higher.

Nation Investment, EFA, traded slightly lower as Greece, GREK, traded 2.7% lower, and the National Bank of Greece, NBG, traded 1.-% lower, and as Indonesia, IDX, a nation with a large account deficit, traded 1.2% lower; it has experienced the most debt deflation coming from the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher form 2.48% on October 23, 2013.  Norway, NORW, Australia, EWA, and Sweden, EWD, traded 1.0% higher.

In yield bearing sectors, Global Telecom, IST, traded 0.8% lower.

Of note, the Inverse of Japanese Government Bonds, JGBS, traded higher to close the week higher.

IRP Poverty Dispatch reports Poverty in Southern California.

Reuters report Regulators seek to curb Wall St. trades with Volcker rule

Open Europe relates that  FT City AM Reuters Reuters  EurActiv European Voice Welt FAZ Süddeutsche Süddeutsche 2 Handelsblatt Handelsblatt 2 report Bail-in rules moved up as part of banking union deal It was confirmed yesterday that the rules on bank bail-ins will come into force two years earlier in 2016 as part of the eurozone’s deal on a single bank resolution mechanism. Despite the tough bail-in rules, the agreement still provides some flexibility for public funds to be used, albeit with strict conditions. Handelsblatt reports that ECB Executive Board Member Jörg Asmussen said, “I have some concerns over the planned decision-making process between the resolution board, EU Commission and Council of Ministers on winding down a bank…It has to be ensured that a bank can be closed in an orderly manner over a weekend.”

GATA reports China prepares for financial warfare, Zheng Gang says

Market Sanity relates GOP budget deal a ‘two-year vacation’ David Stockman says

Arnold King, writing recently on October 15, 2013, presents details leading to the prior financial system collapse Private securitization and the housing bubble

Reuters reports Machinists reject second Boeing labor contract offer. The deal included increased signing bonuses, dropped plans to reduce the pace of wage increases for new workers, and offered concessions on dental benefits. Plus: Sides disagree on how talks collapsed

Simon Smith, CFA of ETF Strategy UK reports Global ETF and ETP assets continue to surge. Global
Exchange Traded Fund (ETF) and Exchange Traded Product (ETP) assets hit yet another record high at the end of November, as the combination of $17.0 billion in net inflows and positive market performance pushed assets to $2.4 trillion, according to preliminary findings from ETFG, a London-based consultancy.

Seamus Coffeys posts in Irish Economy the Irish Times report Irish Finance Minister Noonan vows to end cycle of boom-and-bust economics. A recording of the short address given and the subsequent Q&A session is available here.

Open Europe reports Eurozone inches towards banking union, but may need to resort to intergovernmental treaties  And it further relates  WSJ FT FT 2 Handelsblatt Reuters Deutschland

EU finance ministers reached a broad political compromise on the general framework for the eurozone’s single bank resolution mechanism. The structure is broadly based on the German compromise position laid out over the past few days. A resolution board made up of national authorities will take decisions on resolving or winding down cross-border banks, while the European Commission will have to approve any proposals. However, the balance of power and who has the final word in case of disagreement between national supervisors and the Commission is yet to be finalised.

A centralised fund worth €55bn will be phased in over the course of a decade using industry levies. However, any use of centralised European funds will require a two-thirds majority (with weights according to the ECB’s capital key) – meaning Germany, the Netherlands and Finland would together have a blocking minority. The legal base for the fund remains uncertain. An intergovernmental treaty could be used, although some member states remain opposed to this option.

The rules on bank bail-ins, known as the Bank Recovery and Resolution Directive, will now come into force in 2016 rather than 2018. It remains unclear what will happen if a bank needs to be resolved or recapitalised in the interim – national funds will play a role but their use will remain under national control. Daily meetings will take place over the next week to try to ensure a deal is reached before the meeting of EU leaders on 19 December.

4)  Liberalism featured the dynamos of creditism, globalism, and corporatism

Many Austrian Economists fear more bubbles coming from the Fed; they fail to comprehend that fiat money, defined as Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, died.  And that, of necessity, the Creature that blew the bubbles is dead.

Being focused on bubbles they fail to comprehend that economics and politics pivoted from liberalism into  authoritarianism, when the bond vigilantes called the Interest Rate on the US Note, ^TNX, higher from 2.48%, on October 23, 2013.

Another word for credit is trust. In a relative short period of time, many will come to have such great trust in the beast, which has replaced the creature, that their economic activity will constitute worship, as foretold in Revelation 13:3-4; then perhaps the bubble focus will clear and they will come to know the truth that the Fed is dead.

Liberalism featured creditism of bond traders and currency traders, as well as bankers issuing and securitizing, that is financializing, all kinds of credit, as exemplified in the Globalist Martin Hüfner report Netherlands: Another Spain in the Making?

The bond vigilantes terminated the first engine of liberalism’s creditism, the debt trade, by calling the Benchmark Interest Rate, ^TNX, higher from 2.80%, on December 11, 2013.

And the currency traders, terminated the second engine of liberalism’s creditism, the currency carry trade, by selling Major World Currencies, DBV, ie the Australian Dollar, FXA, and Emerging Market Currencies, CEW, ie the Brazilian Real, BZF, and buying a greatly rundown Japanese Yen, FXY.

Liberalism featured inflationism of nations and their banks

The bond vigilantes in calling the Benchmark Interest Rate, ^TNX, higher from 2.8%, on December 11, 2013, terminated the Milton Friedman Free To Choose Floating Currency Regime; and terminated liberalism’s system of sovereignty and seigniorage, that supported nation investment and created great wealth in financial organizations such as life insurance companies ie Prudential, PUK, and automobile producers ie Ford, F, and pharmaceutical companies ie Johnson & Johnson, JNJ.

The democratic nation state system of governance and the banker regime of investment are gone forever. Nations, EFA, such as South Korea, EWY, and banks, IXG, such as, SHG, are whitewashed tombs existing on the landscape of liberalism’s bygone era. Having been the global growth model, as well as the global industrial production model of liberalism, this great export nation’s trade seigniorage and investment seigniorage was destroyed by the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013.

With debt deflation strongly underway, the bond vigilantes have ended the Fed, and its monetary authority. Inasmuch as the Fed’s life flow, that is fiat money is dead; and its fruit, that is fiat wealth is dead; the Fed must be dead as well. The bond vigilantes terminated the Fed and inflationism; both are gone forever.

The bond vigilantes in calling an Elliott Wave 3 of 3 Up in the Benchmark Rate ,^TNX, on October 23, 2013, put The Mojo, its juice, and its joy in the life’s grave. Nothing, nada, is going to bring the Creature from Jekyll Island back, as Destructionism’s Wave, that is the Interest Rate on the US Ten Year Note, $TNX, has pivoted the world from the paradigm and age of liberalism into that of authoritarianism.  ETF Daily News posts The mother of all bubbles

Liberalism featured globalism and corporatism.

The currency traders in selling currencies in competitive currency devaluation, in Major World Currencies, DBV, and also in Emerging Market Currencies, CEW, are establishing three epic changes, 1) they are terminating investment, 2) they are introducing the beast regime, and 3) they are beginning destructionism. The prophet Daniel wrote in Daniel 7:7, that when the beast and its destruction is though, the only thing remaining will be dust; this monster is going to trample every vestige of liberalism into the ground; there will be nothing, repeat nothing left.

The bond vigilantes and the currency traders are terminating all eight avenues of investment: 1) global growth investment, ie, Biotechnology, IBB, PJP, 2) global industrial production investment, ie China Industrials, CHII, 3) consumer spending investment, Food and Beverage, PBJ, Consumer Staple, KXI, 4) infrastructure investment, ie Automobiles, CARZ, Design and Build, Industrial Metal Mining, PICK, Timber Production, WOOD, and Steel Manufacturing, SLX. 5)  yield bearing investment, in sectors such as Real Estate, IYR, Industrial Office REITS, FNIO, Residential REITS, REZ, Global Real Estate, DRW, Retail REITS, ie Simon Property Group, SPG, and General Growth Properties, GGP, and Global Utilities, DBU. 6) Energy Production, XOP, 7) Nation Investment Investment, EFA, 8) Financial Institution Investment, IXG.

The destructionism of the bond vigilantes and the currency traders pivoted the world out of the paradigm and age of liberalism and into that of authoritarianism on December 11, 2013, by calling the Benchmark Interest Rate, ^TNX, higher from 2.80%, and by selling the Major World Currencies, DBV, and Emerging Market Currencies, CEW.

With the US Dollar, $USD, trading lower below 80 to 79.88, debasement of the US Dollar has reached such a point that the US Dollar no longer serves as an international reserve currency, with the result that the US Dollar Hegemonic Empire came to an end on December 11, 2013, as the bond vigilantes called the Benchmark Interest Rate, ^TNX, higher from 2.80%, and as the currency traders sold Major World  Currencies, DBV, and Emerging Market Currencies, CEW.

Regionalism is replacing globalism. As foretold in bible prophecy of Revelation 13:1-4, out of waves of sovereign insolvency, banking insolvency, and corporate insolvency, and recession in Club Med, that is Portugal, Italy, Greece and Spain, leaders will meet in summits to waive national sovereignty, and pool sovereignty regionally, to establish regional governance, underwritten by undollar customs unions, regional currencies, and by statist public private partnerships, all for regional security, stability, and sustainability. MunKee reports on the emergence of an ASEAN investment union China agreement yet another sign of ongoing decline in US dollar

Regional property rights take precedence over personal property rights. Through confiscation, personal property becomes regional property. Open Europe relates Mail Telegraph reports that a couple have been told they must leave the 60-acre estate they have farmed for 30 years so it can be flooded to boost rare bird populations, under EU regulations. Regional industrial production, and regional trade, will replace global industrial production and global growth in the paradigm and age of authoritarianism.

Wikipedia relates that the international monetary system has borne witness to two monetary hegemons: Britain and the United States. With fiat money dead as a doornail, liberalism’s life experience in monetary hegemony is over, through, finished and done; it’s been terminated by the bond vigilantes calling the Interest Rate higher from 2.48% on October 23, and from 2.80% on December 11, 2013.

The retirement of the British Sterling after 1945, terminated the vast expanse of the British empire. The retirement of the US Dollar, $USD, beginning on December 11, 2013, terminated the US Dollar Hegemonic Empire, thus ending liberalism’s twin, iron like, global empires, seen in the two legs of the prophet Daniel’s, Statue of Empires, presented in Daniel 2:25-45.

Hegemonic currencies no more. The death of fiat money, and the detritus of broken financial markets, means that the dynamos of creditism, inflationism, globalism, and corporatism are winding down. Now the singular dynamo of regionalism is winding up.

The stage is now set for the introduction of authoritarianism’s Two Feet Empire, and Ten Toed Kingdom, with its miry mixture of regional economic governance, and totalitarian collectivism, which is the same as the terrible monster of Daniel 7:7, and the beast of Revelation 13:1-4.

The destruction of fiat money, and the destruction of fiat wealth, on both October 23, 2013, and December 11, 2013, were “extinction events”. Liberalism’s investor was made extinct by the destructionism of the bond vigilantes and the currency traders. In Prometheus fashion, Jesus Christ acting at the helm of the economy of God has created Authoritarianism’s debt serf as “Sometimes to create, one must first destroy.”

Please consider visiting my Stockcharts.com Chart Site where I post twenty charts in two sections.  The first section: Ten ETFs for a margin portfolio: EUO, GLD, HDGE, HYHG, JGBS, JOBS, OFF, SLV, STPP, XVZ.  And the second section: Ten charts for one’s consideration.

1 )  Credit, AGG, failed, better said credit died, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013; and very soon credit is going toxic to become one of two “genesis factors” of intense economic recession; the other will be derisking out of currency carry trades. Please note the massive consolidation triangle seen in the chart; prices usually fall sharply from such patterns.

2)  Junk Bonds, JUNK. Debt trade investing, such as Junk Bonds, served as one of the two engines of liberalism’s investment liquidity; the other being currency carry trade investing.

3)   EFA:BWX, The ratio reflects the ability of nation states to leverage investment value higher over sovereign debt. The ratio of the two communicates that the sovereignty and the seigniorage of democratic nation states has failed. Yes another form of credit failure, it comes largely through the bond vigilantes calling the Benchmark Rate higher from 2.48% on October 28, 2013, on the exhaustion of the world central banks to support global growth. Look for new sovereignty, that being regional governance, and new seigniorage, that being the seigniorage of diktat, to rise to provide life experience in schemes of debt servitude, such as new taxes, confiscations, and economic mandates.

4)   EZU:EU, The December 6, 2013, Mandate of the ECB’s Mario Draghi that prevents lenders from using future loans it provides to buy Treasury Debt, EU, has destroyed nation state investment in the Eurozone, EZU. Notably the ECB Mario Draghi Mandate has destroyed the ability of nation states to fund fiscal spending.

5)   FLOT,  The pursuit of yield has driven up the value of short term bonds, that is “safe money” to its zenith. The Benchmark Interest Rate, ^TNX, trading up to 2.80% on December 10, 2013, has terminated the debt trade, and is now starting to undermine the value of what has been perceived to be safe money; there be “no more safe money” anywhere. All fiat money, whether it be credit, or currencies, carries risk because there are fewer and fewer capable sovereigns to stand behind it. The trade lower in Short Term Corporate Debt, FLOT, communicates that the first of the two powers of creditism, that being the debt trade is no longer providing investment seigniorage.

6)   FXE:FXY,  The EUR/JPY topped out on December 10, 2013. Look for investors to start deleveraging out of fiat wealth. that is out of World Stocks, VT, as well as Nation Investment, EFA, and Global Financials, IXG, just as they have done in Emerging Market Stocks, EEM, and Emerging Market Financials, EMFN. on the failure of Emerging Market Bonds, EMB, and Emerging Market Currencies, CEW.  The trade lower in the EUR/JPY, communicates that the second of the two powers of creditism, that being the currency carry trade is no longer providing investment stimulus as well.

7)   JNK:LQD,  The fall lower in Junk Bonds, JNK, relative to Corporate Bonds, LQD, communicates that high yield spreads turned up from a six year low on December 10, 2013.  All forms of credit, turned bad when the Interest Rate on the US 10 Year Note, ^TNX, traded higher to 2.80%.  Bespoke Investment Group writes “When spreads are rising it indicates that investors are demanding more yield in order to take on the added risk of the issuers, while falling spreads indicate that investors are comfortable taking on the added risk.” Thus with rising spread, seen in Junk Bonds falling faster than Corporate Bonds, investors are derisking out of the stocks that have risen the most under QEternity. Derisking and deleveraging is the genesis of RiskOff, OFF, investing.

Applying Global Zirp, that is Infinity, to Treasury Debt, TLT, and Mortgage Back Bond, MBB, resulted in a crack up boom in Risk Assets Investments, ie Small Cap Pure Value Stocks, RZV,  in Global Growth Investments, ie Small Cap Industrials, PSCI, Spin Offs, CSD, Transportation, XTN, Pharmaceuticals, PJP, Small Cap Pure Growth, RZG, and Biotechnology, IBB, as well as in  Consumer Spending Investment, ie Small Cap Consumer Staples, PSCC, Small Cap Consumer Discretionary, PSCD, and Food and Beverage, PBJ. Investors are now derisking out of these.

8)   MBB,  When the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, most all forms of credit died; even the bonds at the center of QE3, their rate of decay will increase as the bond vigilantes call the Benchmark Rate, ^TNX, higher 2.48%.

9)   VT:AGG,  Fiat wealth, VT, is no longer able to leverage higher over credit, as fiat money which is defined as Aggregate Credit, AGG, together with Major World Currencies, DBV, and Emerging Market Currencies, CEW, failed on October 23, 2013, when the Benchmark Rate rose from 2.48%.

10)  VT:GLD,  The ratio communicates the power of strong hands ruling over weaker hands; fiat money passed from weak hands to the strong hands of wily investor; now gold is passing to those who desire monetary sovereignty. For the last two years, the insiders sold gold short and went long stocks; they are now exiting that trade, giving buoyancy to gold.  Investors should sell stocks and dollar cost average into the physical possession of gold bullion and silver bullion so as to preserve wealth.  On Friday December 13, 2013, the Gold ETF, and the Spot Price of Gold, $GOLD, began its rise from a double bottom that began in July, 2013. Gold is now rising from $1,238 per ounce.

5) Regionalism is the singular dynamo of authoritarianism

Please consider that now fiat wealth as well as fiat money is dead; their charts certainly suggest that this is the case. If this is true, then the banker regime, and the democratic nation state regime, that backed up the two, is dead as well. Yes, the Fed is dead. The Interventionist Monster, that is the Creature from Jekyll Island, died when the bond vigilantes called the Interest Rate higher from 2.48%. It is Jesus Christ, acting in the Economy of God, a concept presented by the Apostle Paul in Ephesians 1:10, where He fulfills, matures, and completes every age, has ended the Fed, and has terminated the paradigm and age of liberalism, all in one fell swoop, by releasing the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB.

The Sovereign Lord God did what Ron Paul could not do, He ended the Fed. While the Eccles Building is still there, the monetary authority inside is as dead as dead can be, having been overthrown by the bond vigilantes, as is seen in Benchmark Rate, ^TNX, blasting higher in an Elliott Wave 3 of 3 UP, and as is seen in the Steepner ETF, STPP, steepening.

The Apostle John wrote from prison, while living in exile on The Isle of Patmos about 90 AD, the contents of a dream given to him by angels. The Revelation Of Jesus Christ, foretells those things which must shortly come to pass, Revelation 1:1; meaning a series of events that once they begin, as they did on October 23, 2013, fall quickly into place one right after the other, liked lined dominoes falling one upon another once the first tumbles.

Richard Ebeling posts in Economic Policy Journal  It’s time to end America’s century of Central Bank mismanagement. Well, hello, Revelation Chapter 13 tells of three separate beasts, which rise in world power to sovereignly direct mankind’s activities.

There is no human action as perceived by the Austrian Economists, there is now only the action of three sovereign authorities whose intervention is far more profound than that of the US Fed. Their interventionism will not carry the inflationism of credit; rather their interventionism will transmit the destructionism of debt servitude.

The only way one can say the Fed mismanaged is if one believes that its purpose was to provide a sound money system, and a currency that doesn’t get debased.  It has been the task of Jesus Christ to work in dispensation, a concept provided by the Apostle Paul in Ephesians 1:10, to take liberalism from its roots in liberty, and move it through corporatism, creditism, and globalism, to be the defining example of debasement, so as to perfect a moral hazard prosperity, at the very zenith of the paradigm and age of liberalism.

The Austrian economists are terrified that Excess Reserves at the Fed will be drained off, enter the economy, and cause massive price inflation.

I can assure you that there are three chances of this happening: no way, no how and never. The banks do not want to take out the monster’s life blood. The Fed won’t make IOER negative; the Fed is going to integrate the Excess Reserves into the Fed; and in so doing the banks, that is all the banks, the Too Big To Fail Banks, RWW, and the Regional Banks, KRE, will be integrated into the Fed, and be one with the Fed, and be known as the government banks, or govbanks for short. This is clearly presented in Revelation 13:1-4, where all of mankind’s institutions are regionally integrated so that all be one, living in the economic and monetary policy of regional governance, experiencing unity in totalitarian collectivism schemes of debt servitude.

Jesus Christ acting in dispensation, that is the economic and political plan of God for the fulfillment, completion of every age, a concept presented by the Apostle Paul in Ephesians 1:10, released the Rider on the White Horse, seen in Revelation 6:1-2, who has a bow, yet no arrows, to effect a bloodless global coup d’état, to transfer sovereignty from nation states and their central banks to regional nannycrats and regional bodies such as the ECB. The result since October 23, 2013, is seen in the Benchmark Interest Rate, ^TNX, rising from 2.48% to 2.86%, pivoting the world out of the paradigm and age of liberalism into that of authoritarianism, causing investors to derisk out of the periphery, that is out of Indonesia, IDX, the Philippines, EPHE, Brazil, EWZ, Thailand, THD, as well as causing the distressed to protest in pitchfork demonstrations, as related below.

The Fed’s balance sheet, once expanding the money supply, is now contracting the money supply as is seen in the pile of M2 Money decreasing in amount since October 23, 2013; this as authoritarianism’s destructionism is acting now, the counterpart to liberalism’s inflationism.

When Jesus Christ matures, perfects, and completes authoritarianism, through releasing all of the Four Horsemen of the Apocalypse, seen in Revelation 6:1-8, and bringing it to its zenith through debt servitude, there will be a crushing austerity as is foretold in Daniel 7:7.

A Zimbabwe hyperinflation is coming, but not until and after Financial Apocalypse, a global credit bust and world wide financial breakdown presented in Revelation 13:1-4.

News reports document the failure of European Socialism, which the dynamo of creditism created funding of Italian Treasury debt. Italy, the very bedrock of Treasury Debt created government is coming apart at the seams, as Mike Mish Shedlock writes Italy’s “Pitchfork Protests” spread to Rome; Interior Minister warns of “Drift Into Rebellion”. Truckers, small businessmen, the unemployed, students and low-paid workers have staged four days of rallies in cities from Turin in the north to Sicily in the south in the name of the “pitchfork” movement, originally a loosely organized group of farmers from Sicily. “There are millions of us and we are growing by the hour. This government has to go,” said Danilo Calvani, a farmer who has emerged as one of the leader of the protests. Interior Minister Angelino Alfano told parliament the unrest could “lead to a spiral of rebellion against national and European institutions,” according to Antonella Cinelli of Reuters writing that Italy’s ‘pitchfork protests,’ in fourth day, spread to Rome.

Marianne Arens of WSWS reports Renzi elected Democratic Party leader as protests spread across Italy. Prime Minister Enrico Letta of the Democratic Party (PD), who is in the process of imposing the latest austerity package with the 2014 budget, is under increasing pressure within his own party. On Sunday, his challenger Matteo Renzi won the primary election for party leader with 70 percent of the vote.

The 38-year-old Renzi, who was previously mayor of Florence, has made populist criticisms of the “Brussels bureaucracy,” demanding that the European Union not be allowed to determine Italian economic policy. He is calling for an immediate reduction of the number of serving politicians and for nationwide cuts of €1.5 billion to political appointees’ salaries. His election as party leader was held in the style of an American primary election. Not only party members, but everyone could take part, provided they were aged 16 or over and paid a contribution of €2. It was more of a populist contest rather than a democratic election, since those who did not support Renzi stayed at home rather than voting for the other candidates, Gianni Cuperlo or Pippo Civati. “This is not the end of the left, but an end of a group of leaders of the left,” he said in a speech late on Sunday evening. He has been hailed by the bourgeois press as a “charismatic reformer.”

Many newspapers compared him with Tony Blair, who transformed the Labour Party in Britain with the neo-liberal “New Labour” project over a decade ago. The German financial daily Handelsblatt wrote that Renzi means “less communism, less party cadres.”

In his victory speech, Renzi demanded that “reforms” be implemented more quickly and decisively than previously. At the heart of this had to be the “mobility of the labour market,” a euphemism for the destruction of workers’ rights and immediate cuts in the state workforce. Among other things, Renzi intends to do away with the second parliamentary chamber and provincial administrations.

The Democratic Party, which emerged from the Italian Communist Party, long ago abandoned its social commitments and became an organ for the implementation of the interests of the Italian and European banks. Already under Letta and the interim party leader Guglielmo Epifani, the PD has sought to fulfil the demands of the European Union in collaboration with the centre-right camp.

Like Letta, Renzi began his political career in the Christian Democrats. Renzi’s victory against his competitor Cuperlo, who enjoyed the support of the old party leadership around Massimo D’Alema, means that the formerly Christian Democrat Marghirita faction has total control of the Democratic Party.

Renzi will now replace the former trade union head Epifani in the leadership of the PD. Epifani led the party temporarily since early this year. After the elections in February 2013, previous chairman Pierluigi Bersani resigned along with the entire party leadership, because he could not achieve a majority in parliament for a government.

Renzi represents an explicitly right-wing, pro-business course. He is on good terms with Fiat chief Sergio Marchionne and has supported his attacks on auto workers.

Liberalism’s authority is breaking down as destructionism flows through waves of recession in Italy.

New sovereign authority will emerge, as leaders meet in summits to renounce national sovereignty, and to announce regional pooled sovereignty.

The first sovereign authority that will emerge is the Sovereign System, that is the Beast presented in Revelation 13:1-4, which occupies in totalitarian collectivism in all of mankind’s activities through seven institutions, seen in the monster’s seven heads occupying in seven spheres 1) Education, 2) Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science, Technology, and Health Care; and which rules in regional governance in all of the world’s regions through nannycrat diktat, seen in the monster’s ten horns ruling in ten zones, replacing sovereign nations and their constitutions

This beast is rising out of the sovereign insolvency, banking insolvency. corporate insolvency, and recession of the Club Med Nations, that is the PIGS, Portugal, Italy, Greece and Spain, as this is the epicenter of authoritarianism’s destructionism.  Zero Hedge reports European Stocks slump to 2-Month lows (Biggest 2-week drop in 6 months), documenting unfolding investment chaos.

The second sovereign authority is The Sovereign, that is the political ruler of Revelation 13:5-10,

and the third sovereign authority is The Seignior, that is the monetary and economic ruler of Revelation 13:11-18.  The Sovereign, that is the New Charlemagne, being most keen, and most adept, as is seen in Daniel 8:6-8. This Ram, with his two horns, will defeat all adversity as he rises to rule the Eurozone.

An inquiring mind asks Just who might be Europe’s King? Open Europe relates Catalonia raises the stakes by unilaterally announcing independence referendum date; Spanish PM Rajoy: I guarantee this referendum won’t be held. El País El Mundo Expansión Expansión 2 La Vanguardia El Periódico ABC European Council press release Süddeutsche FT WSJ Telegraph  Catalan President Artur Mas yesterday announced that the referendum on Catalonia’s independence will take place on 9 November 2014. At a joint press conference with European Council President Herman Van Rompuy, Spanish Prime Minister Mariano Rajoy said, “I guarantee that this referendum won’t be held. It’s unconstitutional.” Van Rompuy warned, “A new independent state would, by the fact of its independence, become a third country with respect to the Union.” Spanish opposition leader Alfredo Pérez Rubalcaba was also critical of the move. “President Mas is taking Catalonia into a dead end”.

And Open Europe relates The Scotsman reports that Ruth Davidson MSP, the Conservative’s leader in the Scottish Parliament, has told MSPs that a letter from Jen Nymand Christensen, Director SG, at the European Parliament confirms that “It is unambiguous – an independent Scotland would have to negotiate entry to the European Union from the outside” and that “The opt-outs that we currently have from the euro, from Schengen would be voided, our budget rebate would no longer apply.”

And Open Europe relates that Volkskrant: Eppink Volkskrant: Eppink – in English report in comment in De Volkskrant, Dutch-Belgian MEP Derk Jan Eppink describes “The seven deadly sins of EU ‘top job’ candidates”, including “Hoping for a coalition of small countries”, “Picking a fight with one of the big three: Germany, France or the UK” and “Preaching federalism.”

An inquiring mind asks, might The Sovereign come from the UK? Ambrose Evans Pritchard writes Britain’s negotiating hand in Europe has never been as strong before. Events are moving very fast in Europe, overtaking the debate in Britain. I ask, could the Duke of York, Prince Andrew, come into the limelight carrying the Royal Flag?  As is seen in Revelation 13:1-18, out of ever increasing waves of Club Med sovereign insolvency, banking insolvency, and corporate insolvency, and economic recession in the Eurozone, three sovereigns will rise to power to provide authoritarianism’s seigniorage of diktat.

With the ECB’s Mario Draghi Mandate, the moment of truth for European Nations, EZU, from North to South, and their Banks, IRE, NBG, SAN has arrived. The seigniorage of OMT has been removed, and the nations and their banks must now rely on the traditional sovereign debt market place. One can review how well they are doing, in the combined ongoing Yahoo Finance chart of EZU, and IRE, NBG, and SAN.

Just as the Chairman’s OMT, was precedent setting bringing forth the culmination of liberalism, in like manner the Chairman’s Mandate, is precedent setting in fathering authoritarianism. Just as Milton Friedman was the father of liberalism, with his Free To Choose Script, so Mario Draghi is the father of authoritarianism, with his ECB Mandate of December 6, 2013, that prevents lenders from using future loans it provides to buy Treasury Debt, EU.

It has been God’s purpose from eternity past to make this monster, also presented in Daniel 7:7, the Two Feet and Ten Toes Global Empire, having a miry mixture of policies of diktat and schemes of debt servitude which is presented in Daniel’s Statue of Empires, Daniel 2:25-45.  This world wide empire replaces the two iron legs of the British Empire, and the US Dollar Hegemonic Empire. Most assuredly it will be a type of revived Roman Empire, in the sense that it has a world king like Charlemagne, and in the sense that it comes to rule the vast expanse of Europe, unifying all of its residents.

Wikipedia relates Charlemagne (/ˈʃɑrlɨmeɪn/; 2 April 742/747/748[1] – 28 January 814), also known as Charles the Great (German: Karl der Große;[2] Latin: Carolus or Karolus Magnus) or Charles I, was the King of the Franks from 768, the King of Italy from 774, and from 800 the first emperor in western Europe since the collapse of the Western Roman Empire three centuries earlier. The expanded Frankish state he founded is called the Carolingian Empire.

The Sovereign’s shrewd ability to work in regional framework agreements, as foretold in Daniel 8:23,  will assure a pan-European identity for all. Like Charlemagne who abandoned the gold standard, and put all of Europe on the same silver currency, The Sovereign will work with The Seignior to establish diktat money; where his word will and way, will be the law of the land, replacing all constitutional law, national law, and historic precedent. People will have common experience of debt servitude in the rule of nannycrats overseeing public private partnerships, as their manage the factors of production, and oversee economic trade, for regional security stability and sustainability.

6) Technology is emerging for the development of The Mark of the Beast

In video, Peter G Klein, Mises Institute’s Executive Director and Carl Menger Research Fellow, explains The importance of examining ideology in the development of digital currencies.

The Apostle John wrote from prison, while living in exile on The Isle of Patmos about 90 AD, the contents of a dream given to him by angels. The Revelation Of Jesus Christ, foretells those things which must shortly come to pass, these being presented in Revelation 1:1; meaning a series of events that once they begin, as they did on October 23, 2013, Jesus Christ, acting in dispensation, that is in the administration of all things economic pivoted the world from the paradigm and age of liberalism into that of authoritarianism by releasing the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB.

By God’s design, technology will trump ideology to establish a Global Fed.

Andrew Gavin Marshall, writing in GlobalReseach.ca article Forging a New World Order Under a One World Government, relates that Jeffrey Garten has written several articles calling for the creation of a global central bank, or a “global fed.”

Garten was former Dean of the Yale School of Management, former Undersecretary of Commerce for International Trade in the Clinton administration, previously served on the White House Council on International Economic Policy under the Nixon administration and on the policy planning staffs of Secretaries of State Henry Kissinger and Cyrus Vance of the Ford and Carter administrations, former Managing Director at Lehman Brothers, and is a member of the Council on Foreign Relations, CFR.

On September 23, 1998, he wrote New York Times article, Needed: A Fed For The World stating that the world “needs a global central bank,” and that, “An independent central bank with responsibility for maintaining global financial stability is the only way out. No one else can do what is needed: inject more money into the system to spur growth, reduce the sky-high debts of emerging markets, and oversee the operations of shaky financial institutions. A global central bank could provide more money to the world economy when it is rapidly losing steam.”

Following the outbreak of the current financial crisis, Garten in September 25, 2008, Financial Times article, Global Authority Can Fill Financial Vacuum called for the “establishment of a Global Monetary Authority to oversee markets that have become borderless.”

On October 25, 2008, he wrote in Newsweek article, We Need a Bank Of the World: “Leaders should begin laying the groundwork for establishing a global central bank.” He explained that, “There was a time when the U.S. Federal Reserve played this role [as governing financial authority of the world], as the prime financial institution of the world’s most powerful economy, overseeing the one global currency. But with the growth of capital markets, the rise of currencies like the euro and the emergence of powerful players such as China, the shift of wealth to Asia and the Persian Gulf and, of course, the deep-seated problems in the American economy itself, the Fed no longer has the capability to lead single-handedly.”

The Apostle John writes of a world-wide governing financial authority presenting The Mark of the Beast, a term which comes from the Greek word charagma, and means “etching in”, or “tattoo upon”, or “stamp”, or “badge of servitude”; it becomes the universal, contactless, digital currency which enables one to conduct economic activity, and which authorizes one to receive economic benefits.

The Mark will be based upon “freely publishing the payment address and making it available to users of an internet portal or search engine.” This web based, digital type of payment network, will make it faster, easier, safer for money to change hands, for example, one need not stand in line to make a payment, nor enter a PIN, nor submit to high processing fees; it will even enable consumer to consumer payments. The cashless payment system, controlled by a global financial institution, serves as the basis for the commerce foundation of the 666 Credit System held forth in Revelation 13:16-18, that the Seignior of Revelation 13:11-18, and the Sovereign of Revelation 13:5-10, will mandate as part of a global digital currency system, and that will be required of all in order to conduct commerce.

MarketWatch reports JPMorgan has applied for a patent for a digital-payment network that would allow for anonymous payments like the virtual currency bitcoin, according to a patent application dated Nov. 28. The application was first highlighted by Let’s Talk Bitcoin . “Embodiments of the invention include a method and system for conducting financial transactions over a payment network,” the application said. “The method further includes freely publishing the payment address and making it available to users of an internet portal or search engine.” A J.P. Morgan media contact didn’t immediately respond to an emailed request for comment.

JPMorgan is developing the ultimate digital currency. Just as Monsanto controls the global food chain via the control of seeds, JP Morgan will control the monetary seed and the distribution system of the Global Fed digital money system. And possessing a patent will enable JPMorgan to stifle development of services relating to other digital currencies.

Dr. Worden of The Worden Report writes Two sizes fit all: America’s two party system stranglehold   If the American political order has indeed been deteriorating and disintegrating, its artificial and self-perpetuating parchment walls might be too rigid to allow the vacuum to be filled by anything less than whatever would naturally fill the power-void in a complete collapse. The two major political parties, jealously guarding their joint structural advantages, have doubtlessly been all too vigilant in buttressing the very walls that keep real reform, real change, from happening at the expense of the vested interests. As a result, the electorate may be convinced that it is not possible to venture outside of the political realities of the two major parties that stultify movement. If a majority of Americans want a third party, they would have to apply popular political pressure to the two major parties themselves to level the playing field. A huge mass of dispersed political energy would be necessary, however, given the tyranny of the status quo. Indeed, such a feat might require going against the natural laws of power in human affairs. If so, the already-hardened arteries will eventually result to the death of the “perpetual union.” Sadly, the determinism is utterly contrived rather than set by the fates.

All things are of God, 2 Corinthians 5:17-18, and that God determined the times and places in which one would live, Acts 17:26, and that He chose some to believe in Christ and placed these in the honey-be of His love, Ephesians 1:5-6, while He assigned the others to disbelief.

George Orwell wrote “The real division is not between conservatives and revolutionaries, but between authoritarians and libertarians.”

I extend that concept to write, the real division is between those of fiat, having life experience out of human philosophy or religion, and the elect of God, who live and move and have their being out of Him.

All be spiritual beings, who make decisions based upon the movement of the Spirit of Iniquity, or based on the movement of the Spirit of Righteousness.

And all be economists. Economics is synonymous with ethics, as when one says he has economic regard on an issue, he is saying he has ethical regard on the issue. Every person acts in dispensation, that is in household administration of things civil, monetary and political, and hence economic action come from one’s convictions in philosophy or religion. Thus economics is defined as the quality and type of ethical experience present between a person, and another or others, corporations and the state, that is government. One’s economics will either be in iniquity or in righteousness.

Since October 23, 2013, when Jesus Christ released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, the natural laws of power in human affairs, is destructionism, resulting in devolution, deterioration, disintegration, and death; the only viable and rewarding option is to have life in Christ, and let the world die its fated doom.

Global Financials, IXG, -2.1%, led Nation Investment EFA, -2.0%, and World Stocks, VT, -1.7%, lower, for the second week, turning the stock market from a bull market to a bear market, as the bond vigilantes continued calling the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.86%, and continued steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, and as currency traders sold some currency carry trades such as the GBP/JPY, causing investors to derisk and deleveraged out of investments.

Other causes of investment derisking and deleveraging are growing awareness of the ECB’s Mario Draghi Mandate that prevents lenders from using future loans it provides to buy sovereign debt, and the tremendous chaos that is coming as EU nation states simply will not find funding for their fiscal spending, and awareness that Chinese Banks, not the PBOC, will bear lending losses.  The December 6, 2013, Mandate of Mario Draghi is powering up the singular dynamo of regionalism for the purpose of regional stability, regional security, and regional sustainability. While purposed for economic growth, the ECB Mario Draghi Mandate that prevents lenders from using future loans the ECB provides to buy Treasury Debt, EU, has destroyed nation state investment, EFA, specifically in the Eurozone, EZU, that is investment in Portugal, Italy, EWI, Ireland, IRE, Greece, GREK, and Spain, EWP, has destroyed Global Financial Investment, IXG, and European Financial Institution Investment, EUFN, such as in Ireland’s bank IRE, Greece’s bank NBG, and Spain’s bank, SAN.

Andrew Gavin Marshall of Occupy.com posts in Washington Blog, Global Power Project: The Group of Thirty, Architects of Austerity. In a 2012 interview with Der Spiegel, Draghi noted that European governments will have to “transfer part of their sovereignty to the European level” and recommended that the European Commission be given the supranational authority to have a direct say in the budgets of E.U. nations, adding that “a lot of governments have yet to realize that they lost their national sovereignty a long time ago.” He further explained, incredibly, that since those governments let their debts pile up they must now rely on “the goodwill of the financial markets.”

The ECB Chairman, Mario Draghi’s December 6, 2013 Mandate has commenced the destruction of fiat wealth, that is Stock Wealth, VT, and will create a global economic recession, and is the “genesis factor” of a soon coming global credit bust and financial system breakdown, that being Financial Apocalypse, as foretold in Bible prophecy of Revelation 13:3-4.

7) … Summary of financial market trading for the week ending Friday December 13, 2013

Global Financials, IXG, traded 2.1% lower, leading Nation Investment, EFA, 2.0, lower, and World Stock, VT, 1.7%, lower, as the bond vigilantes, continued calling the Interest Rate Higher on the US Sovereign Debt, ^TNX, to 2.86%, as concerns mounted over the ECB’s Mario Draghi monetary policy Mandate, announced the week ending December 6, 2013, coming via Bloomberg report, Italy’s Bonds drop with Spain’s on concern ECB to limit support, that prevents lenders from using future loans it provides to buy sovereign debt, and as concerns arose that Chinese Banks, not the Chinese government, must bear lending losses.  

Global Financials, IXG, -2.1%; financials trading lower included:

India Earnings, EPI -4.1%

China Financials, CHIX -4.8

Australia Dividends, AUSE, -3.2

Emerging Market Financials EMFN -2.8

European Financials, EUFN -2.5

Nation Investment, EFA, -2.0%; nations trading lower included:

Philippines, EPHE -6.2%

India Small Caps, SCIN -5.0

India, INP -4.8

Australia, EWA -4.1

New Zealand, KROO -3.5

Thailand, THD -3.1

Vietnam, VNM -3.1

Indonesia, -3.1

Netherlands, EWN, -2.9; The Netherlands, EWN, was a Euro Yen currency carry trade darling; now investors consider it to be a dog and are selling it strongly. The sweet spot in life under liberalism was experiencing the liberality of the world central bankers monetary authority, and getting leveraged up, on debt trades and currency carry trades, and experiencing economic life in a socialist economy.

China, YAO -2.8

Indonesia, IDX -3.1

China Small Caps, ECNS -2.5

The UK, EWU -2.5

Sweden, EWD -2.5

The Eurozone, EZU -2.5

Emerging Markets, EEM -2.5

World Stocks, VT, -1.7%; sectors trading lower included:

Solar Energy, TAN, -6.0%

Rare Earth Miners,REMX, -5.1

Spin Offs, CSD -4.8

Small Caps Consumer Staples, PSCC -3.5; disinvestment is coming out the defensive sector at a fast clip as the world pivots into authoritarianism.

Pharmaceuticals, PJP -3.1

Medical Devices, IHI -3.0

Biotechnology, IBB -2.9

Industrial Miners, PICK -2.9

Health Care Providers, IHF -2.8; once again, the concept is that as the world pivots, strong, very strong derisking and deleveraging is coming out of those sectors classified as defensive.

Food and Beverage, PBJ -2.8

Networking, IGN -2.6

China Industrials, CHII -2.5

Yield Bearing Investment sectors trading lower included:

Chinese Real Estate, TAO -3.5%

Commercial Office REITS, FNIO -3.1

Global Real Estate, DRW -2.5

Residential REITS, REZ -2.5

Utilities, XLU -2.5

Open Europe published The First English Translation Draft Of The German Grand Coalition Agreement. The draft agreement states that the way out of the eurozone crisis is to “combine structural reforms and a strict, sustained continuation of budget consolidation.” The coalition will also be committed “to ensuring that the euro countries agree binding, enforceable and democratically legitimised contractual reform agreements at the European level.”

And Open Europe reports Eurozone Reform Contracts Take Shape, And They Include Fiscal Transfers.

These news reports suggests that regional framework agreements, that is policies of diktat in regional governance, based upon regional fiscal sovereignty, and other schemes of debt servitude in totalitarian collectivism, are the way forward in Europe.

The ECB’s Mario Draghi monetary policy Mandate, announced the week ending December 6, 2013, coming via Bloomberg report, Italy’s Bonds drop with Spain’s on concern ECB to limit support, is  destabilizing government debt markets; with OMT funding of EU Treasury Debt gone, and EU governments unable to find funding for fiscal spending, the EU is going to see sovereign insolvency, banking insolvency, and corporate insolvency on an overwhelming scale.

Out of chaos, there is coming a profound change in the nature of government and moneyness. Regional governance, not democratic nation states, will emerge as leaders meet in summits to renounce national sovereignty, and announce regional pooled sovereignty. Regional nannycrats, not banks and financial markets, will provide seigniorage, that is moneyness.  Diktat policies of regional governance, and fiscal and debt servitude schemes of totalitarian collectivism, will provide economic life in the EU.

Open Europe news reports FT  WSJ  FAZ  FAZ 2  Süddeutsche  Bild  Welt  Welt 2  Guardian: Posener clearly evidence that the beast regime of regional governance and totalitarian collectivism, with its seven heads occupying in each of mankind’s seven institutions, and its ten horns ruling in the world’s ten regional zones, presented in Revelation 13:1-4, is rising from sovereign, banking and corporate insolvency, and is making landfall in the Eurozone, occupying with feet of a bear in EU banking supervision in Frankfurt Germany; with mouth of a lion in NATO headquarters in Brussels; and camouflage of a leopard in ongoing technocratic governance in Greece as well as in ECB banking supervision from Berlin, and in nannycrat fiscal rule from Brussels enforcing budget rules demanding more austerity in Spain and Italy.

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