Predictions for 2014
1) … Nannycrats, appointed by God, will come to rule in diktat policies of regional governance and in debt servitude schemes of totalitarian collectivism in 2014
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Devon Smith writes Essays in monetary theory and policy: On the nature of money (9). Money is
“what we use to pay for things.” This quote from Lerner (1947, p. 313) is the simple answer to the question: “What is money?” But in order to get an answer to the question of the nature of money we have to go further into the theory and consider two different approaches: the orthodox and the heterodox approach. We saw how the credit and the state money theory can be integrated. As result, we can come to the conclusion that “credit and credit alone is money” (Innes 1913, p. 392). Since money is credit and credit and debt always represent social relationships, we can say that money always represents social relationships.
Another word for credit is trust. Under liberalism people have all trust in fiat money, they have no trust in commodity money, such as gold or silver; this being the case in the extreme as Investment Bankers, KCE, such as JP Morgan, JPM, have gone long fiat wealth investments, that is stocks, via ETFs, and short the Gold ETF, GLD, and short the Silver ETF, SLV, as is seen in their Finviz charts putting in a double bottom on July 1, 2013, and December 31, 2013, and is seen in The Telegraph report Gold price collapse is the worst for 30 years; while World Stocks, VT, Global Financials, IXG, Nation Investment, EFA, Small Cap Nation Investment, IFSM, put in market rally tops.
Devon Smith continues, According to the monetarist view, an excess in the money supply would lead to inflation.
Under liberalism, the democratic nation state and baker regime having sovereignty, and being in control of the Means of Economic Inflationism, that is the Interest Rate on the US Ten Year Note, ^TNX, practiced Inflationism, which inflated fiat wealth investments, that is stocks, and ETFs, through the coinage of the Speculative Leveraged Investment Community. that is the Investment Bankers, KCE, the Too Big To Fail Banks, RWW, the Stock Brokers, IAI, and the Asset Managers seen their Finviz Screener, and includes Blackstone, BX, Eaton Vance, EV, and Blackrock, BLK.
Thus seigniorage, that is moneyness, came to fiat wealth investments, such as corporations, Siemens, SI, global industrial producers, FXR, and nations, such as Germany, EWG, achieving a moral hazard based prosperity, through debt trade investing, ie Junk Bonds, JNK, and through currency carry trade investing, ie the US Dollar Yen, USD/JPY, carry trade, and Euro Yen, EUR/JPY, carry trade, as is seen in the ongoing Yahoo Finance chart of National Investment, EFA, and nation, Ireland, EIRL, Germany, EWG, Greece, GREK, Spain, EWP, Netherlands, EWN, Denmark, EDEN, Sweden, EWD,, and South Korea, EWY, the latter being leveraged up through their respective currencies vs. the Yen.
Under liberalism, the Speculative Leveraged Investment Community, beginning with the repeal of the Glass Steagall Act, then via POMO and US Federal Reserve monetary policies of easing, supported by Global ZIRP of the world central banks, aggressively coined an increase in liberalism’s fiat money, which is defined as Aggregate Credit, AGG, combined together with Major World Currencies, DBV, and Emerging Market Currencies, CEW.
Money is defined as the credit and trade that comes from the administration of a household or stronghold. And economics is defined as the ethical experience between a person and another, a corporation, and the state, that is government.
The origin of money and purpose of money is presented.
Fiat money was the creation of the banker and democratic nation state regime, and was created through liberalism’s policy of investment choice and schemes of credit and currency carry trade investing, to develop business capital, provide government revenue, and return for the investor; the economy centered around the investor and his investment activity.
The exogenous variable that affects the money supply is the Benchmark Interest Rate, ^TNX.
Diktat money is the creation of the beast regime of regional governance and totalitarian collectivism, and is created by authoritarianism’s policy of diktat and schemes of debt servitude to establish regional economic security, stability, and sustainability; the economy centers around the debt peon and his debt servitude; the economy centers around the debt serf and his debt servitude.
The Apostle Paul presents in Ephesians, 1:10, that God has appointed Jesus Christ as the steward of all things economic and political for the maturing, completion and perfection of every paradigm and age.
And the Apostle John, sometimes called John The Revelator, presents in Revelation 6:1-2, that Jesus Christ, on October 23, 2013, opened the first seal of the Scroll of end time events, and released The Rider on the White Horse, who has a bow, without any arrows, symbolic of economic sovereignty, to effect a global coup d’etat, to transfer sovereignty from bankers and nation state democracies to nannycrats and regional bodies such as the ECB, to bring forth the Beast System of Revelation 13:1-4, as a replacement for the libertarian despised Creature from Jekyll Island, that is the democratic nation state and banker regime. The world PIVOTED from the paradigm and age of liberalism, to that of authoritarianism, on October 23, 2013.
The Scripture of Revelation 6:1-2, relates the First Horseman of the Apocalypse “came out conquering, and to conquer”.
When the Rider on the White Horse was released on October 23, 2013, he began his ride over planet earth to conquer governments, bankers and investors, beginning first with the Emerging Market Nations, EEM, of Turkey, TUR, Brazil, EWZ, Indonesia, IDX, Thailand, THD, and the Philippines, EPHE.
The Rider on the White Horse began conquering with the Means of Economic Destructionism, that is the Benchmark Interest Rate, ^TNX, by enabling the bond vigilantes to begin calling the rate higher from 2.48%, and by enabling the currency traders to begin short selling currencies, destroying the monetary authority of the central banks of the periphery nations, as well as the national sovereignty, and the seigniorage, that is the moneyness of those nations.
Destructionism is the way of the bond vigilantes and the currency traders.
Fiat money, consisting of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, perished. Yes, fiat money died on October 23, 3013, and is increasingly being replaced by diktat money coming from the monetary authority of regional nannycrats.
Not only did fiat money die on October, 23, 2013, but also some forms of fiat wealth perished as well, as is seen in nation investment in Turkey, TUR, Brazil, EWZ, Indonesia, IDX, Thailand, THD, and The Philippines, EPHE, trading lower, which is presented in their combined ongoing Yahoo Finance chart together with Small Cap Nation Investment, IFSM.
The outcome of the First Horseman of the Apocalypse’s ride, is an ever increasing victory as people of nations are no longer credit based consumers and investors, but are being reduced to debt serfs
On October 23, 2013, the bond vigilantes in calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, and the currency traders in selling the World Major World Currencies, DBV, and Emerging Market Currencies, CEW, effected an extinction event, which destroyed the existing regime, and PIVOTED the world from central bank interventionism and a policy of investment choice … consisting of credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, securitization of debt such as Junk Bonds, JNK, dollarization, financialization of credit instruments, such as corporate bonds which convert into stocks, and currency carry trade investing schemes, such as the EUR/JPY, USD/JPY, GBP/JPY, AUD/JPY, all of which created capital for corporations to operate, revenue for governments to function, and investment return for the investor, in an environment of global economic inflation and economic growth, … to a policy of diktat … consisting of government mandates such as ObamaCare, and consisting of debt servitude schemes such as regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, ECB banking supervision, EU fiscal rules enforced by a Fiscal Sovereign, and in regional interventionism in statist vitalizations where banks and other corporations are given charter to operate as public private partnerships, to create regional economic security, stability and sustainability, in an environment of global economic deflation and economic recession; these being the tail risk of monetary injections and easings.
Thus we see the function of money revealed; the function of money is for life experience; money serves as the basis of life experience. Under liberalism money served to develop business capital, provide government revenue, and return for the investor. Under authoritarianism money serves to establish regional economic security, stability, and sustainability.
Given that The Rider on the White Horse, terminated fiat money on October 23, 2013, it can be logically reasoned that the bank that created it, is dead as well. Inasmuch as the Creature from Jekyll Island has been replaced by the Beast Regime ruling in the world’s ten regions and occupying in mankind’s seven institutions, there is no longer a “lender of last resort”, there is according to Revelation 17:12, only an emerging regional ruler and a regional banker, establishing the prominence of nannycrats in economic oversight and administration, overall, in each of the world’s regional zones.
The Milton Friedman Free to Choose regime that commenced in 1971 when the US, went off the gold standard, to promote the US Dollar as the International Reserve Currency, was terminated by the rise in the Benchmark Intererest Rate, ^TNX. Confirmation of such comes from the US Dollar, $USD, trading at 80.29, up from its October 23, 2013, value of 79.25. The US Dollar is no longer sinking. All of the other world currencies are no longer floating; they are sinking, in competitive currency devaluation, from their rally highs, the only exception is the British Pound Sterling, FXB, as debt deflation, coming from the bond vigilantes calling the Benchmark Interest Rate higher from 2.48%, is the new normal. Global growth and trade cannot survive the onslaught of the failure of fiat money.
Regional customs unions are emerging, as is documented by Charles Wyplosz, director of the Geneva-based International Center for Money and Banking Studies, writing in Vox.EU who describes The Ukraine-Russia Deal. Such are a precursor to regional economic governance and related totalitarian collectivism outside of the Eurozone. These feature undollar, that is dollarless economic transactions, communicating the end of Liberalism’s democratic central banker democratic nation state economic and political dollar hegemony.
Liberalism was characterized by central bank and nation state intervention. Authoritarianism is characterized by regional nannycrat intervention.
Just as liberalism had many fathers, that is starters, so today, authoritarianism has many fathers. These included More Europe Angela Merkel, and the ECB Chairman Mario Draghi. Just as liberalism’s fathers engaged the dynamos of creditism, corporatism and globalism to power-up liberalism, so authoritarianism’s fathers engage the singular dynamo of regionalism to power up authoritarianism.
Sober Look reports When it comes to current account imbalances, one nation stands out; the Eurozone will become a German Europe. Out of Club Med sovereign, banking and corporate insolvency, EU leaders will meet in summits to renounce national sovereignty and announce regional pooled sovereignty, and to establish regional framework agreements, which establish a One Euro Government that is a total economic union, consisting of a fiscal union, banking union, and a factors of production union, overseen and administered by councils of so called wise men with top leaders coming from Germany; gone is the day of the global factory; the purpose of production is to sustain the region.
The whole experience of the Euro over all the years has been an ongoing series of debt trades in nation state sovereign debt and currency carry trades in the EUR/JPY, which gives evidence to the concept that the time period from 1999 through 2013, was Liberalism’s monetary and economic zenith, all designed for investment return.
The Euro Currency has a necessary part of mankind’s experience in the fiat money, in particular to fully terminate the sovereignty of the British Empire; it was part of God’s plan from eternity past that both that Empire and the US Dollar Hegemonic Empire, the greatest kick-ass, might makes right empire of all time, be replaced by the Two Feet and Ten Toed Empire seen in Daniel 2:25-45.
The EU will be characterized by democratic deficit. Personal property will be appropriated by the regional superstate, as personal property rights, and the traditional rule of law, is superseded by regional property and regional property rights. The periphery nations, that is the PIIGS, will exist as hollow moons revolving around planet Germany.
Under liberalism trust in the Eurozone in government has become polarized. Sonia Alonso, writes in LSE, those the Northern EU Nations, “Trust their representatives, quite simply, because they feel represented, that they feel their interests taken into account. In Southern Europe, by contrast, trust in governments and parties has consistently declined since February 2009: a drop of 27 points for governments and 15 points for parties in just four years. In June 2012 only one in ten Southern European respondents trusted its government and its political parties. If we look at the last ten years, the gap in political trust between the North and the South of the EU has grown from 9 per cent to 32 per cent for governments, and from 6 per cent to 25 per cent for political parties. Satisfaction with democracy has also dropped quite dramatically. The gap in the last ten years has grown from 21 per cent (already a quite remarkable gap) to 46 per cent. This is what I call the democratic breach.”
Under authoritarianism, the role of MPs, Senators, and House Representatives is no longer representation of citizens and investors; but rather the support of nannycrats, as they rule in public private partnerships, in their role of regional economic oversight and administration.
Economic and political movement under Liberalism was based upon banker’s ponzi credit, which provided capital and revenue and investment return, underwriting of economic activity, and resulted in a moral hazard based prosperity.
On the other hand, economic and political movement, under authoritarianism is based upon trust in nannycrat diktat which establishes statist vitality underwriting of economic activity, and results in debt servitude based austerity.
Liberalism was a paradigm and age centered around the citizens of democratic nation states and the investor; now authoritarianism is a paradigm centered around the debt serfs of the world’s ten regions.
Capital and revenue as well as some investment return, perished on October 23, 2013, with the rise in the Interest Rate on the US Government Note, ^TNX, from 2.48%, and it is increasingly being replaced by statist vitality, which is defined as diktat establishing oversight by nannycrats, working in regional interventionism in public private partnerships establishing diktat policies of regional governance, and debt servitude schemes of totalitarian collectivism, where nannycrats are the legislators of economic value as well as the legislators that shape one’s means and one’s ends, the focus of which is debt servitude.
Liberalism’s money system stands as a white washed tomb existing in the dustbin bin of history; its flag of investment return, a tattered and torn relic of a bygone era.
Authoritarianism’s money system exists for the rule of nannycrats; and its flag of statist vitality held high for all to see.
Inasmuch as there will never be a sound money system, which can be relied upon wealth preservation, such as a privately issued gold backed currency, as desired by Christopher Westley of Mises.org, who published in Lew Rockwell 100 Years Ago: Why Bankers Created the Fed, it behooves one to dollar cost average, on a monthly basis, an investment in gold bullion, and take possession of it and secure it in a safe place.
2) … Significant news reports at the end of 2013
Shaun Richards writes The price of Greek debt has risen in 2013 by an average of 48% according to the Bloomberg index of it which made it the best performer of those they follow; the other side of this is that the yields have fallen to an average of 8.4%.
This together with an enduring EUR/JPY currency carry trade rally has made Greece, GREK, the best performing Eurozone Nation, investment in the last six months, as is seen in the ongoing Yahoo Finance Chart of GREK, and EWI, EWG, EFNL, EWN, EWQ, EIRL, EWP, EWO, and PGAL.
Mr. Richards continues. The flies in this ointment. If we stick for now to the specific issues and look at the Greek deficit improvement we see that the largest factor has been this in the 11 months of 2013 recorded so far.
the reduction in net interest payments by 5,501 million euros or 48.1% comparing to the same period of 2012.
Thus 57% of this year’s improvement is due to the fact that Greece’s Euro area partners have stepped up to the plate to help her. In the terms of 1066 and all that this is a good thing but it does create a misleading impression about the improvement in the underlying Greek situation.
Also the way in which this has been done poses perhaps an even more formidable challenge. Greece is currently borrowing from its Euro area partners at an interest-rate of 1.5%. Can you see the flaw in the presentation of the fact that being able to borrow at 8.4% rather than 1.5% is an improvement? Immediately Greece did so it would be declaring itself insolvent and unable to finance its debts and borrowing. Whilst much of her debt has been rolled forwards in the form of Buzz Lightyear’s “To Infinity and Beyond” progress is still required to reach a place where no borrowing is required. Such progress involves more contractionary pressure on the Greek economy which many would argue is no progress at all.
If we move beyond Greece’s borders one day it may bother people that even Germany (ten-year bond yield 1.94%, thirty-year bond yield of 2.75%) cannot actually finance such rates let alone France,Italy,Spain. But apparently together they can. These things have a habit of running for a while before imploding,sometimes quite a while.
On wages. Returning to today’s subject neither falling wages nor falling prices do a country with a massive debt burden like Greece any good at all. Indeed they make it even less affordable than before.
What about trade? The austerity and reform programme had as part of its “internal competitiveness” agenda the implication that it would turn around Greece’s balance of trade problem. However the improvements on this front are slowing. From the Greek statistics office.
The total value of exports-dispatches, for the 10-month period from January to October 2013 amounted to 23204,9 million euros (30759,5 million dollars) in comparison with 22369,6 million euros (28784,2 million dollars) for the corresponding period of the year 2012, recording an increase, in euros, of 3,7%
Indeed whilst single month figures are erratic it was worrying to see this for October released on Christmas Eve.
The total value of exports-dispatches, in October 2013 amounted to 2324,6 million euros (3179,2 million dollars) in comparison with 2572,4 million euros (3347,4 million dollars) in October 2012,recording a drop, in euros, of 9,6%.
This,however, can be added to a drop of 2.2% in September and a drop of 5.5% in August for a worrying trend development over the latest three months.
With the levels to which many economic measures have sunk it is likely that in 2014 it will be possible to claim signs of improvement in Greece in 2014 just like we were promised “Grecovery” in 2013. It may not be a gross overstatement to say that the building of only a few houses might begin to turn around the construction figures (down 34% so far this year alone) for example. But if we look at the behaviour of two key indices of the credit crunch era which are wages and trade there is little or no sign of any significant improvement and indeed trade may have turned for the worse. So perhaps we will see a further divergence between the claims for the Greek state and the circumstances and experience of the ordinary Greek individual.
NBCNews reports Scores die as followers of “Prophet Gideon” temporarily seize control of TV station in Congo, as youth who support Paul Joseph Mukungubila who calls himself The prophet of the Eternal, rioted shouting, “Gideon Mukungubila has come to free you from the slavery of the Rwandan.”
Concerns of economic deflation are beginning to surface. The first concern comes from the US Fed report Declining labor force attachment and downward trends in unemployment and participation; the second comes as Capital Spectator asks Will the deceleration in personal income growth spoil the party?; the third comes from the WSJ report Fewer than half of young people will be in work force; the fourth comes from Sober Look US broad money supply growth slows.
The Express reports Rubber bullets fly as Turkey faces meltdown. Protesters stormed the streets of Turkey’s biggest cities as a deepening corruption scandal threatened to bring down the government and sparked fears of a military coup.
Peter Symonds reports Okinawa governor approves new US Marine base. US Defence Secretary Hagel hailed the decision as “the most significant milestone” in the realignment of US forces in the region
Jason Bram of the US Fed Bank of New York reports Fairfield county weathers job losses in finance
Bloomberg reports Audi Plans $30.3 million in investments to challenge BMW.
Ambrose Evans Pritchard writes Latvia reluctantly joins euro after shock therapy, but controversy rages on. Baltic nation to join the euro on New Year’s Day against the wishes of its own people, five years after its economy crashed in flames
News evidences the rise of statist totalitarian collectivism. Markus Salzmann of WSWS reports Czech Republic: Social Democrats enter into coalition with right-wing billionaire’s party The Czech Social Democrats have formed a ruling coalition with the right-wing party of billionaire Andrej Babis.
Mike Mish Shedlock writes France in review: perfect track record of economic ineptitude. I comment that the excesses of interventionism, economic deflation, and economic recession in France come at the hands of Jesus Christ acting in dispensation, that is the economic action presented by the Apostle Paul in Ephesians 1:10, where he is maturing and perfecting French socialism, making it fully complete and ripe under the paradigm and epoch of liberalism, before He pivotes the nation into that of authoritarianism.
Zero Hedge posts the Best Hedge Funds and worst Hedge Funds of 2013
3) … Liberalism’s top thirty performing sectors for 2013 are presented in this Finviz Screener and include (TAN, PNQI, IBB, MHK, SOCL, PBS, XTN, PJP, BJK, PPA, CSD, FDN, FPX, FXR, RZV, RZG, SOXX, XRT, IYC, CARZ, RXI, ING, LYG, IAI, KCE, IST, PSP, UJB, IX, MA)
Solar Energy, TAN, 127%
Consumer Credit Services, MA, 70
City of London Banking Services, LYG, 65
Nasdaq Internet, PNQI, 64
Stockbrokers, IAI, 64
Biotechnology, IBB, 64
Industrial Textiles, MHK, 63
Social Media, SOCL, 63
Media and Broadcasting, PBS, 60
Japanese Credit, IX, 57
Transportation, XTN, 55
Pharmaceuticals, PJP, 55
Internet Retail, FDN, 54
Spin Offs, CSD, 52
Resorts and Casinos, BJK, 51
Aerospace, PPA, 50
Investment Bankers, KCE, 49
Regional Banks, KRE, 48; leaders included HBAN, SNV, FIBK, SIVB, OZRK, GBCI, PACW, FFIN, and UCBI
IPOs, FPX, 47
Life Insurance, ING, 47,
Global Industrial Producers, FXR, 46
Small Cap Pure Value, RZV, 45
Small Cap Pure Growth, RZG, 44
Semiconductors, SOXX, 42
Retail, XRT, 41
Consumer Discretionary, IYC, 41
Automobiles, CARZ, 38
Global Consumer Discretionary, RXI, 38
Global Telecom, IST, 37, yields 3.1%
Leveraged Buyouts, PSP, 37, yields 9.5%
The chart of the S&P 500, $SPX, shows a close at 1848. Eddy Elfenbein of Crossing Wall Street posts The S&P 500, SPY, gained 29.60%. Including dividends, the index gained 32.39%. The dividend yield for the S&P 500 was 2.15%.
ZeroHedge report Bonds close 2013 at 30-month high yields; and CounterPunch reports US Treasuries cross into danger zone, with the result that World Stocks, VT, relative to Aggregate Credit, AGG, that is VT:AGG, soars to an all time high.
4) … The bull stock market will turn to a bear stock market in the first quarter 2014,
Money manager capitalism is about to result in another dreadful fiat wealth meltdown, just like 2008, yet only this time much worse, as investment greed turns to investment fear, turning off the twin spigots of investment liquidity, that is the twin levers of liberalism’s fiat wealth investing, whereby investors derisk out of debt trades, such as Junk Bonds, JNK, and deleverage out of major currency carry trades, such as the EUR/JPY, the USD/JPY, the GBP/JPY, and the AUD/JPY, as well as the emerging market currency carry trades, such as the ICN/JPY, and the BZF/JPY, due to a number of factors including:
1) investors fearing that the monetary policies of the world central banks have crossed the rubicon of sound monetary policy and have made “money good” investments bad.
2) the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher yet, this time from 3.0%, and as the currency traders selling currencies more intensely, and as
3) Japan and China engage in conflict, and as
4) The Middle East turmoil boils over, and as
5) Waves of sovereign, corporate and banking insolvency wash over the Club Med nations of Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, as foretold in Revelation 13:1-4.
Contrarian reports flood in:
Wall Street Journal reports Bullishness jumps to three year high; and
ETF Daily News reports NYSE margin debt is fractionally off its real all-time high; and
Mac Slavo posts in Prison Planet Market crash in the works: ‘A canary may have just keeled over; and
CNBC writes China’s debt sentence, the biggest ‘known, unknown’ in 2014? and
ValueWalk writes Charles De Vaulx: We worry about massive misallocation of capital In China; and
Cullen Roche of Pragmatic Capitalism writes CBOE SKEW Index Spikes to Bearish Levels. Throw this one in the “signs of frothiness” bin. The CBOE’s SKEW Index attempts to measure the potential for an outlier event. Readings at current levels are extremely unusual and consistent with a market that is susceptible to unusual events; the current reading is the 2nd highest level ever recorded
5) … Welcome to the new weather phenomena of Ice Age Winter.
Fox News reports Passengers, crew stuck on ship trapped in Antarctic ice ring in 2014. Passengers and crew who set off on an expedition to prove climate change are ringing in the new year in the same place where they have been for the past week: stuck in ice at the bottom of the world. The 74 scientists, tourists and crew on the Russian ship MV Akademik Shokalskiy, which has been trapped near Antarctica since last Tuesday, are expecting to be airlifted from the ship by a helicopter.
Business Insider posts 2014 could start off with a massive snow storm
The Daily Bell posts Warmists stuck in a sea of denial
6) … Promises of Peace and Security.
I can assure you, that according to Daniel 9:25, only the Sovereign of Revelation 13:5-10, will implement a Middle East peace plan, known to Christians as the seven year covenant-treaty of peace; up until that time Jerusalem will remain the undivided capital of Israel.
The Jerusalem Post reports Netanyahu says recognition of Jewish state is ‘minimal requirement for peace’
7) … Some inspiration for you.
Cognitive Dissonance posts in Zero Hedge The Journey and the Destination Ultimately it is not a choice of Journey or Destination, but rather Journey and Destination. We can have life’s box of chocolates and eat it too because our conscious, aware and willing life choices either replenish or drain the box. Deliberately expand your field of choices, then act upon them and you will refill your box of chocolates.