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All Flags Fall Down … Ten Are Seen Rising

January 25, 2014

Financial market report for the week ending January 24, 2013

This post can be found in Google Documents format here

1) … An overview of dispensation economics provides insight into social mobility, bubbles and economic life.

Trust in the monetary policies of the world central banks, coupled with freedom of choice provided by democratic nation state governance, under the operation of the US Dollar International Reserve Currency System, provided life experience for all of humanity.

The week ending January 24, 2013, World Stocks, VT, and the US Dollar, USD, UUP, as well as Major World Currencies, DBV, and CEW, traded lower on the failure of trust, terminating liberalism and introducing authoritarianism, both as a paradigm and an age of regional governance and totalitarian collectivism.

Two very important questions.  The first important question. Slate’s economic writer Matthew Yglesias asks an important question, What if social mobility is never nigher anywhere?

According to the Apostle Paul in Ephesians 1:10, Jesus Christ is the Operative Genius of the economy of all things, and through His dispensation, that is His administrative oversight for the completion of all things economic and political in every age, in particular liberalism, He provided social mobility to the wily investor, to those successfully engaged in clientelism, and to those who have lived as beneficiaries of debt trade investing and currency carry trade investing, under the Milton Friedman Free To Choose floating currency system which began in 1971 when President Nixon took the US off the gold standard to finance the Vietnam War.

The subprime crisis led to the financial system crash of 2008; and it is likened to a fatal automobile crash that killed all the occupants. Regeneration of economic life came through Paulson’s Gift, that being Ben Bernanke’s QE1 and TARP, which traded out “money good” US Treasuries for Distressed Investments, such as those traded in Fidelity Mutual Fund FAGIX.

Jesus Christ provided liberalism as an economic domain, that is a place for economic experience.  It was trust in Ben Bernanke and his monetary policies, that began liberalism’s terminal phase as both a paradigm and age, where the investor and clients living in clientelism were the centerpiece of economic life, whose experience was shaped by floating currencies in a Zero Interest Rate regime.

Economic life was through fiat money, defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Economies, CEW, but it died on October 23, 2013, when Jesus Christ opened the First Seal of the Scroll of End Time Events, and released the Rider on the White Horse, to effect a global economic and political d’etat, which terminated the Creature from Jekyll Island, and birthed the Beast of Revelation 13:1-4, which is rising to rule the world in the new economic domain of authoritarianism.

Fiat wealth, defined as the output of economic life under liberalism, consisting of World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, died on January 24, 2013, with the failure of investor’s trust in the monetary policies of the world central banks monetary authority, and the collapse of freedom of choice provided by democratic nation state governance as is seen in numerous places such as the Ukraine.

All flags, that is all nation investment, EFA, fell down on the week ending January 24, 2013; yet ten new flags are seen rising.

Out of the collapse of trust, in fiat money on October 23, 2013, and in fiat wealth on January 24, 2014, and out of the collapse of freedom of choice in a number of democratic nation states, as well as the failure of currencies, seen in the sinking of currencies, especially the US Dollar, $USD, UUP, the domain of economic experience is now authoritarianism, where economic life comes through diktat money, established by the diktat policies of regional economic governance, in the worlds ten regions, and schemes of debt servitude of totalitarian collectivism unifying all of mankind’s seven institutions.

All social mobility has ended, as the centerpiece of liberalism, that being the investor, was made extinct, like the woolly mammoth of prehistoric times, by the twin extinction events of fiat money, on October 23, 2013, and fiat wealth on January 24, 2013. All people are now debt serfs.

Under authoritarianism, the debt serf is the centerpiece of authoritarianism, and debt servitude, is the foundation, capstone, and framework of economic life. The Creature from Jekyll Island was perished, and a greater monster, the beast regime is given constitution of end time rule, as is presented in Revelation 13:1-4.              

The second important question. Mike Mish Shedlock asks What causes economic bubbles? When do bubbles burst? Can the Fed prevent bubbles? In short, the Fed held interest rates too low, too long, fueling asset inflation and credit expansion on ever-easing terms, the primary way in which bubbles are blown.  Government policy, notably President Bush’s “Ownership Society” coupled with countless “affordable housing programs” and Greenspan’s promotion of variable interest rate loans and derivatives was icing on the bubbleicious cake.

And he asks, when do bubbles burst? In contrast to what Yasushi Asako and Kozo Ued suggest, I propose we know a heck of a lot about how bubbles burst. Here is the simple answer: Bubbles burst when the pool of greater fools runs out.

And he also asks, Can the Fed prevent bubbles? The way to prevent bubbles is easy enough in theory: Get rid of the Fed; get rid of government-sponsored corporatism; stop government central-planning activities, and instead try free-market economic solutions. Since no Fed-sponsored research could possibly come to the correct conclusion, the Fed and its research departments both sit in academic wonderland, hiding behind obscure mathematical absurdities that do not and cannot work in the real world.

The Dispensation Economics Manifest presents the concept of the Apostle Paul in Ephesians 1:10, that Jesus Christ is at the helm of economy of God, where He is in dispensation, that is He is in  administration and oversight of all things economic and political, maturing and perfecting all things therein, by blowing bubbles for the completion of every age.

Jesus Christ ended the US Fed on October 23, 2013, did what Ron Paul could not do, He utterly and totally ended the Fed, that is the Creature from Jekyll Island, by opening the First Seal of the Scroll of End Time events, seen in Revelation 6:1-2, to release the Rider on the White Horse, who has the bow without any arrows, that is the Bow of Economic Sovereignty, to enable the bond vigilantes to begin calling the Benchmark Interest Rate, ^TNX, higher from 2.48%, and in so doing to effect a global economic and political coup d’etat taking sovereignty from democratic nation states and giving sovereignty to the beast regime. This was an extinction event that terminated fiat money, defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW.

The beast regime’s sovereignty is Deutungshoheit in nature. The monetary authority of authoritarianism’s beast regime features the security, stability and sustainability of the diktat of nannycrats, not bankers, in regional governance, and in the debt servitude of totalitarian collectivism.

There is only one sovereignty, and it provides only one life experience.  Deutungshoheit is defined as interpretational sovereignty and connotes supremacy in all things, the result being German economic, banking, credit, and military supremacy, over all of the Eurozone. German linguist Thorsten Pattberg relates Deutungshoheit is a German word meaning “having the sovereignty over the definition of thought,” sometimes also called “the prerogative of final explanation.”

Authority now longer resides in democracy; now Obrigkeit, as the Germans say, resides in beast regime’s policies of diktat in regional governance in all of the world’s ten regions, and has affect in schemes of debt servitude in totalitarian collectivism in each of the world’s seven institutions, as presented by the Apostle John in presenting The Constitution of Endtime Rule in Revelation 13:1-4.

The fiat wealth bubble burst on January 24, 2013, when World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, traded lower as investors derisked out of debt trade investments and deleveraged out of currency carry trade investments on the failure of trust.

Specifically fears that the US Fed’s monetary policies of credit stimulus have crossed the rubicon of sound monetary policy and have made “money good” investments bad, that trust investments in China cannot be repaid, that Emerging Market Local Currency Bonds, EMLC, cannot be repaid, and that Emerging Market Governments are untrustworthy, and that global growth has slowed and that businesses worldwide will fail, and that the ECB will not back dollar denominated lending risks.

Economic life under liberalism was consumer spending, capital expenditures by businesses, and investing. Economic life under authoritarianism is debt servitude obtained through expansionary austerity.

2) … A crisis of trust pivoted the stock market from a bull market to a bear market on the week ending January 17, 2014.

Reuters reported Bond trading stings Citigroup in 4th quarter. and the Global Financials IXG, pivoted lower, as The Too Big To Fail Banks, RWW, were led lower by Citigroup, C.

At this time last week, the Global Financials, IXG, pivoted lower, fiat wealth began to die, and the world PIVOTED from the paradigm and age of liberalism into that of authoritarianism, where regional economic fascism will be the dynamic of The Great Economic Transformation, where liberalism’s investor, morphs to become authoritarianism’s debt serf, through the failure of fiat money.

3) … Fiat Wealth totally died as World Stocks, VT, Global Financials, IXG, Nation Investment, EFA, and Dividends Excluding Financials, DTN, traded lower the week of January 24, 2013, terminating liberalism as both a paradigm and an age, and introducing that of authoritarianism.

World Stocks, VT, Global Financials, IXG, Nation Investment, EFA, and Dividends, DTN, all traded lower, evidencing an extinction event; that being everything having to do with liberalism. The failure of fiat wealth pivoted he world from the paradigm and age of liberalism, into that of authoritarianism.

Inasmuch derisked out of the Emerging Markets, EEM, such a TUR, EWZ, THD, IDX, EPHE, ARGT, ECH, EPU, and EZA, and deleveraged out of Emerging Market Currencies, CEW, on the failure of Emerging Market Bonds, EMB, and Emerging Market Local Currency Bonds, EMLC.

And investors derisked out of safe haven investments in US Based Equities, VTI, the trade lower out of these caused the US Dollar, $USD, UUP, trade lower from $81.29 to 80.51 and Gold, $GOLD, traded higher in breakout from $1,236 to 1,264. Silver while trading up to $20, failed to participate in the breakout, suggesting that it is a base metal and not a precious metal.

The failure of the US Dollar, $USD, means that the US Dollar Hegemonic Empire will soon be relegated to the dustbin of history. Out of waves of sovereign, banking, and corporate insolvency, leaders will meet in summits to renounce national sovereignty, and announce regional pooled sovereignty to establish regional security stability and sustainability.

With the failure of the US Dollar, $USD, the international Reserve Currency System, also known as the Milton Friedman Free to Choose, Floating Currency Regime, regional currencies, such as the Euro, and regional trading blocs, such as the Ukraine and Russia trading union, will emerge to support regional economies, where regional leaders provide diktat policies of regional governance and totalitarian collectivism schemes of debt servitude.

3A) …Beginning with the advent of the Euro, and then the repeal of the Glass Steagall Act, and then continuing on with the Alan Greenspan Put, the Ben Bernanke Put, and the Mario Draghi Promise Of Sufficiency, liberalism’s centerpiece was the investor and fiat money, where the speculative investment community established ever increasing moral hazard all to advance the investor’s return, the greatest of which are seen in the investments of Global Industrial Producers, FXR, Transportation Companies, XTN, Biotechnology Firms, IBB, Resorts and Casinos, BJK, Solar Energy Manufacturers, TAN, Semiconductor Manufactures, SOXX, Internet Retailers FDN, Nasdaq Internet Firms, PNQI, Aerospace and Defense Manufacturers, PPA, and Pharmaceuticals, PJP.

Fidelity’s Vice Stock Mutual Fund, VICEX, epitomizes the gains of the wily investor; all of which came through Ben Bernanke’s QEs, as he established TARP, and traded out money good US Treasuries, TLT, for distressed investments of all types such as those traded in Fidelity’s Distressed Investments, FAGIX, mutual fund.  Most of the Treasury Debt has made its way back to the US Federal Reserve, and now resides there as Excess Reserves.

Now, authoritarianism’s footprint is that of the debt serf, where the beast regime establishes ever increasing debt servitude through the establishment of diktat money, the aim of which is to advance regional security, stability and sustainability.

The monetization of debt servitude is now underway through leaders establishing diktat policies of regional governance, where public private partnerships establish regional security, stability, and sustainability; this being seen in the Reuters reports Italy moves to sell stake in post office to cut public debt.

Under liberalism bankers monetized debt and financialized investments for investment gain. Under authoritarianism, regional leaders monetize debt servitude, and secure economic rule, as exemplified in the James Brewer WSWS report Emergency manager accelerates plans to “monetize” Detroit water department, The plan to put the Detroit Water and Sewage Department under regional control is the first step towards privatization of one of America’s largest publicly owned water systems. As well as in the John Marion WSWS report Wall Street demands austerity in Puerto Rico.  Bond traders are responding to Puerto Rico’s government debt problems by demanding the imposition of austerity measures.

3B) … Under liberalism, one had economic life as an investor, where one trusted in the investment choice policies of democratic nation state sovereignty, as well as trusted in the credit policies of the banker regime sovereignty, enjoying the seigniorage of fiat money.

Now, one has economic life as a debt serf, where one complies in the diktat policies of regional governance sovereignty, as well as in the debt servitude policies of the beast regime, laboring under the seigniorage of diktat money.

3C) … Under liberalism, the speculative investment leverage community, was the source of monetary transmission. Fiat money was the element of economic life. Economic life centered around three activities consumer spending, capital expenditures by businesses, and the investing activity of the investor. It’s important to recognize that economic growth was the outcome of the three factors of consumer spending, business capital expenditures, and the investor exercising risk-on investment choice across a broad spectrum of investment opportunities. Said another way, the engine of economic growth under liberalism was three fold, consumer spending, business capital expenditures, and investment choice.  For example, leading regional banks, KRE, such as HBAN, SNV, FIBK, SIVB, OZRK, GBCI, PACW, FFIN, and UCBI, spawned economic growth, as a result of consumer spending and the investment activity of the investor, which carried impact seen in economic metrics such as Housing Starts,  GDP Reports,  Industrial Production,  ADP Payroll,  Construction Spending, and the Purchasing Manager’s Index. These were not goals, but rather statistical attributes, that is metrics, associated with risk-on investing.

M&G Investments posts China’s investment/GDP ratio soars to a totally unsustainable 54.4%. Be afraid. It should be a concern if a country experiences a surge in its investment rate over a number of years, but has little or no accompanying improvement in its GDP growth rate, i.e. the historical time series would appear as a horizontal line in the chart below. This suggests that the investment surge is not productive, and if accompanied by a credit bubble (as is often the case), then the banking sector is at risk (e.g. Ireland and Croatia followed this pattern pre 2008, Indonesia pre 1997). But it’s more concerning still if there is an investment surge accompanied by a GDP growth rate that is falling. This is where China finds itself, as shown by the red arrow.

Now, under authoritarianism, regional leaders are the source of monetary transmission, as they rule in diktat money, which becomes the element of economic life. Economic life centers round the compliance of the debt serf as the leaders manage the economy to achieve regional security stability, security and sustainability.

3D) … Regional property rights supercede those of individual, whose property is taken to secure the stability and sustainability of the region; thus, what was personal property, becomes that of the region.

3E) … Liberalism was an age of debt trade investing and currency carry trade investing.

Mike Mish Shedlock has it right when he relates that A number of companies have cash on hand that is not intended for expansion, for multiple reasons.

1.Businesses have no reason to expand.

2.The recovery is quite long historically, growth will slow.

3.The cash is really debt, so realistically it’s already been spent.

Nonetheless, the cash does provide cheap liquidity insurance against a credit crunch.

The Global Industrial Producers, FXR, Transportation Companies, XTN, Internet Retailers FDN, and Pharmaceuticals, PJP, may have quite a bit of cash on hand; but then again, some of these have large debts to repay, as they issued debt for money for stock buybacks and to pay dividends, both to keep share prices high.

Liberalism was the age where the securitization of debt that underwrote investing. Beginning in 2008, with QE1, it was the age of in debt we trust; this trust turned out over the long run to be a riskless trade, that made the wily investor wealthy, as the US Fed drove and kept the Ten Year Interest Rate, ^TNX, low.

Peak debt trade investing is seen in the Chart of AGG, and JNK, BDCS, VCLT, EU, EMB, HYXU, EMLC, and HYMB. And Peak currency carry trade investing is seen in the Chart of EFA, and EDEN, MES, EWUS, EIRL, GREK, and DFE. And peak pursuit of yield investing, that is yield chasing, which came via both currency carry trade investing and debt trade investing, and is seen in the Chart of DTN, and Leveraged Buyouts PSP, Global Telecom, IST, Smart Grid, GRID, Shipping, SEA, and Water Resources, FIW.

Under the rule of the libertarian despised Creature from Jekyll Island, mankind experienced the Means of Economic Inflationism, that is the Benchmark Interest Rate, ^TNX, driving inflation in both fiat money, defined as Aggregate Credit, AGG, coupled with Major World Currencies, DBV, and Emerging Market Currencies, CEW, as well as fiat wealth, defined as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, ever higher.

But when the bond vigilantes gained control of the US Ten Year Note, ^TNX, calling it higher from 2.48, on October 23, 2013, fiat money died in a deflationary extinction event. Then fiat wealth died the week of January 24, 2014, as investors derisked out of debt trade investments and deleveraged out of currency carry trade investments, forcing World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, lower in another deflationary extinction event.

The Benchmark Interest Rate, ^TNX, was the Means of Economic Inflationism, but after the pivotal event of October 23, 2013, it is now the Means of Economic Destructionism, establishing economic deflation and economic recession, terminating economic inflation and economic growth, and its metrics such as World Trade Volume, World Industrial Production, and US, Eurozone, Asian Economies, and Emerging Economies Industrial Production.

Furthermore from January 24, 2014 onward, disinvestment out of liberalism debt trade investments, and currency carry trade investments will begin to be active factors of economic deflation, turning the aforementioned economic metrics ever downward, until all of liberalism’s economic experience be totally pulverized as foretold in bible prophecy of Daniel 7:7.

Europe is the poster region for an era of falling prices, traditionally bad news for equities shares, as it crimps profits and curbs economic growth by causing companies to lay off workers, which in turn causes demand destruction, and completes a perverse cycle of economic deflation.

3F) … With both fiat money and fiat wealth dead, the world has fully PIVOTED from the paradigm and age of liberalism, into that of authoritarianism, which will be an universe and epoch of economic deflation and economic recession, the likes of which the world has never seen; with foretaste as AFP reports RWE, Germany’s second biggest power supplier said it plans to axe a further 6,700 jobs.

There are many well recognized companies who are going to quickly face a liquidity crisis, and needing cash, will be unable to find it. The companies that are at greatest risk are those with a high debt to equity ratio; this according to Finviz includes Kroger, KR, with one of 1.6; it has a cash to share ratio of 0.67. The company is undergoing a massive remodeling program, making their stores more consumer appealing with the most visually attractive displays available across the board from produce to housewares to apparel; what is so striking is that the department store side of the company has very few shoppers; it is like a ghost town in the place.  I have to believe the company has “overdone it” with its acquisition of debt for remodeling. There are a number of other notable companies with high debt to equity ratios include, International Paper, IP, and Wynn Resorts, WYNN.

Bust always follow boom. Now after five years of money market capitalism, the tail risk of Global ZIRP is economic deflation and economic recession, she is presented in bible prophecy of Revelation 17: 1-5; and she is going to be a bad bitch, as she is the scarlet beast, full of names of blasphemy, having seven heads and ten horns, and upon her forehead a name written, Mystery, Great Babylon, the mother of the harlots, and of the abominations of the earth.

And Bible prophecy of Revelation 13:1-4, communicates that out of Club Med waves of sovereign, banking and corporate insolvency, the Eurozone will become the model and template for the rise of economic fascism. ANSAMed News Network, a media partner of the European Commission, presents the Eurostat report of the EU Debt Crisis Greek public debt at 171.8% GDP, followed by Italy (132.9% GDP), Portugal (128.7%) and Ireland (124.8%).

Irish Times posts Bundesbank boss Jens Weidmann ‘Not all Germans believe in God, but they all believe in the Bundesbank’. The Bundesbank headquarters on the edge of Frankfurt is a brutalist bunker that exudes a forbidding air. By the time it opened its doors here in 1972, the Bundesbank had been operational for 15 years and had established itself as a guardian of both the deutschmark and West German prosperity. It anchored itself as one of the country’s most trusted institutions so effectively that former European Commission president Jacques Delors remarked in 1992: “Not all Germans believe in God, but they all believe in the Bundesbank.”

Dr Weidmann suggests that recent European agreements “have made clear that legacy bank debt remains a primarily national responsibility. “I assume that Ireland, now out of the programme, will be able to meet its commitments without any external assistance,” he said. “I don’t think it is in Ireland’s interest now to raise doubts about its readiness to service its debt.”

Dr Weidmann acknowledges the potentially corrosive legacy of the euro crisis but argues that finger-pointing debate over who picked up the tab for whom is a hindrance rather than a help to real debate about how to prevent a new crisis. Yet he is quick to dismiss what many EU partners see as an effective backstop: shared liability or so-called eurobonds. Sharing Germany’s top credit rating to reduce others’ borrowing costs cannot come, he says, before institutional safeguards are in place. Without safeguards, he said, “the account will soon be overdrawn”.

Ambrose Evans Pritchard writes Crippled eurozone to face fresh debt crisis this year, warns ex-ECB strongman Axel Weber. Ex-Bundesbank head Axel Weber expects fresh market attacks on eurozone this year and economist Kenneth Rogoff says the euro was a “giant historic mistake”.

In God’s economy there are no mistakes, as all things are of God, 2 Corinthians 5:17-18, as Jesus Christ is acting in dispensation, that is the administrative oversight of all things economic and political for every age, bringing these things to their maturity and perfection, much as a ship’s captain completes the manifest before setting sail, Ephesians 1:10.

Shaun Richards posts Should we use GDP or unemployment levels to judge the economy of France?

French private sector firms reported a third successive monthly drop in output during January. However, the rate of contraction was modest and the weakest in this sequence. So the survey tells us that whilst the rate of fall is slowing at a reading of 48.5 it is below the unchanged output mark of 50. Also rather ominously for a country with an unemployment rate of nearly 11%, we note this. French private sector firms signalled job shedding for a third consecutive month during January. Employment decreased at a moderate pace that was little changed since December.

The economic output or official GDP view is that France recovered back to pre credit crunch output levels quickly and after a slow down is hoping to improve. By contrast the UK has been growing quickly recently but has yet to regain the levels of 2007.

Or there is the labour market view where the unemployment rate is now 7.1% in the UK and 10.8% in France. Which do you prefer?

I respond that I prefer neither; we should not judge France at all by GDP reports or by unemployment levels.  We should judge France, by how it compares, or better said how it has compared to other Eurozone Nations in investment performance; this is seen in the ongoing Yahoo Finance Chart of France, EWQ, and its Eurozone formerly sovereign nation state investment opportunities, where she failed to win carry trade investment favor.

While Greece has been the very definition of what the Economist Magazine calls a pork and patronage economy. France was the leading example of European socialism, where trade unions continually were on strike, and where there are a number of taxes and barriers to entry into business. Mr. Hollande came into office on a socialist ticket; but morphed many times into something other than the traditional municipal socialist of prior years. It was France’s municipalities that were the basis of financialization of municipal debt, by Dexia, before it went bust, and which generated many high yielding products for money market funds in the US.  France’s contribution in economic history was one of European Socialism and municipal debt securitization; no wonder it has had no capability to generate investment gain, the very purpose of the terminal phase of liberalism.

According to bible doctrine of dispensation, seen in Ephesians 1:10, Jesus Christ has been in dispensation, producing a broad spectrum of investment choices for the investor after the financial system crash of 2008, which is likened to a fatal automobile crash that killed all the occupants which  established an ever increasing moral hazard based prosperity, blowing up a whole number of bubbles, using the investor as his tool, in a protected empire, that being the US Dollar Hegemonic Empire.

God has always worked through empires; always has, and always will; this being seen in Daniel’s Statue of Empires in Daniel 2:25-45, where he produced the two iron legs, these being the British Empire and the US Dollar Hegemonic Empire. The latter came to an end on January 24, 2014, with the trade lower in the US Dollar, and the failure of fiat wealth in World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG.

Now Jesus is bringing forth the Two Feet and Ten Toed Empire with its miry mixture of  policies of diktat in regional governance, and schemes of debt servitude in totalitarian collectivism, to rule in each of the world’s ten regions, and occupy in all of mankind’s seven empires, establishing grinding austerity, in a global panopticon, overseeing a gulag of debt servitude, for all of humanity, as foretold by John the Revelator in Revelation 13:1-4, where all of liberalism’s debts will be applied to every man, woman and child on planet earth. That’s the goal of Jesus,The King Of The Universe, the All Sovereign One, so that the saints will come to trust in his dispensation of virtues, that is morals, and ethics, that is right way in interpersonal conduct, to be the basis of their life in Him, and in so doing, be their All Sufficient One.

The liberal’s champion Paul Krugman posts in the NYT The Populist Imperative The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes. John Maynard Keynes wrote that in 1936, but it applies to our own time, too. And, in a better world, our leaders would be doing all they could to address both faults.

God has never been concerned about GDP, or employment, or income mobility, income inequality, in the slightest; these are simply metrics serving to underwrite the vain imaginations of economists who have agendas coming out of what the Apostle Paul terms the “will worship” of religion or philosophy. The nature of economics is found in Jesus Christ, who in dispensation, that is the administration and oversight of all things, produces empires for one to experience economic life as is seen in Bible Scripture of Daniel 2:25-45, Revelation 13:1-4, Revelation 17:12, and Daniel 7:7.

3G) … In the new economic normal, there are only two forms of safe and sustainable wealth, these are diktat and possession of gold and silver bullion. As investors derisk out of fiat money and fiat wealth, a strong investment demand for gold will arise.

4) … Welcome to the new normal weather phenomena; no more global warming as it is ice age freezing now.

Elaine Meinel Supkis reports Cold pacific decadal oscillation causing sardine marine collapse and California drought. And Bloomberg reports Cold gripping US preview of worse weather coming next week.

God isn’t concerned about the sardines, nor is He isn’t concerned about California’s water situation. He, being in dispensation, has two interests: one is promoting the beast regime, and the other is in establishing His full salvation in His Tribe, that is the saints, by their trust in Him, keeping His commandments, and observing His presence and authority in all they think, say and do, as presented in Revelation 3:8.

In the debate about weather phenomena, and the debate about economic matters, such as that presented by Mark Thoma blogging ‘Taylor v. Summers on Secular Stagnation, I present the concept that economics is a life experience in the dispensation of Jesus Christ and that economics is a craft. Liberal economist Mark Thoma posts the Dani Rodrik statement The craft of economics consists on being able to diagnose which of the models apply best in a given historical and geographical context.

Economics is defined as the trust and flow that comes from sovereignty, and that the model that best presents economics is the Dispensation Economics Manifest.

5) … Fiat wealth died the week ending January 24, 2014 on the failure of trust.

This week Global Financials, IXG, led World Stocks, VT, and Nation Investment, EFA, lower as Aggregate Credit, AGG, rose 0.3%, as investors derisked out of debt trade investments, and deleveraged out of currency carry trade investments, on the failure of trust.

Investment trust failed January 24, 2014, as fears arose, specifically fears that the US Federal Reserve has crossed the rubicon of sound monetary policy and has made money good investments bad, that trust investments in China cannot be repaid, that Emerging Market Local Currency Bonds, EMLC, will not be repaid, that Emerging Market Governments are untrustworthy, that global growth has slowed and hence that businesses worldwide will fail, and that the ECB will not back dollar denominated lending risks.

Bloomberg reports Jiang tells CNBC that ICBC won’t compensate Trust investors. Industrial & Commercial Bank of China Ltd. Chairman Jiang Jianqing said the lender won’t compensate investors for losses tied to a troubled trust product distributed by the bank, CNBC reported on its website. The incident will be a lesson for investors on moral hazard and risks associated with such investments, Jiang told CNBC from the World Economic Forum in Davos, Switzerland. The Beijing-based lender won’t take “rigid responsibility” for the losses and will review all its partnerships in entities with which it does business, Jiang said, according to CNBC.

Bloomberg reports China Trust products gone awry evoke soros 2008 crisis echoes. The story of how a 3 billion-yuan ($496 million) Chinese trust investment wound up on the brink of default shows what billionaire investor George Soros has called the “eerie resemblances” between the 2008 global financial crisis and the nation’s debt market. China’s $4.8 trillion in shadow-banking debt, arranged by trusts and fund managers with less transparency than commercial-bank loans, was equivalent to as much as 55 percent of the nation’s 2012 economic output at the end of that year, according to Moody’s latest estimate. Investors argued their case in a meeting at an ICBC Shanghai branch yesterday, an echo of savers’ appeals to Hong Kong lenders after Lehman Brothers Holdings Inc.’s failure undermined securities called minibonds. “This case reminds people of Lehman minibonds because complicated credit-linked products were sold to individual investors via bank channels,” said Christine Kuo, senior credit officer at Moody’s in Hong Kong. “It’s not clear whether misselling was involved due to lack of transparency. It’s also not clear who will share the loss. Regardless, both the product packager and distributor have seen their reputation suffer.”

Bloomberg reports Contagion spreads in Emerging Markets as crises grow. The worst selloff in emerging market currencies in five years is beginning to reveal the extent of the fallout from the Federal Reserve’s tapering of monetary stimulus, compounded by political and financial instability.

And Bloomberg reports European bond risk heads for biggest weekly jump since June. The cost of insuring corporate bonds against losses in Europe is heading for the biggest weekly rise in seven months on concern a slowdown in emerging-market economies will curb global growth

ZH reports European stocks collapse most in 7 Months; Spain’s worst week since September 2012.

Bloomberg reports Ukraine Unrest Spreads From Kiev as EU Warns of Civil War. Anti-government unrest spread from Ukraine’s capital as the European Union warned the protests, which turned deadly this week, could spiral into a civil war. Activists have taken over the headquarters of governors picked by President Viktor Yanukovych in five cities, marking a widening of the two-month protest movement. EU justice chief Viviane Reding told CNBC today that Ukraine must get its “house in order” as it heads in the “direction of a civil war.”

Bloomberg reports Cross-Currency swap premium rises seventh day as banks pull back. The premium that European lenders pay to obtain dollar-denominated cash flows increased for a seventh day as global central banks said they’ll wind down emergency funding programs. The rate on a three-month cross-currency basis swap between euros and dollars was negative four basis points, after reaching positive 4.8 basis points Jan. 16. A negative swap rate signals traders are paying a premium to trade euro-based cash flows for comparable flows denominated in U.S. dollars. Investor demand for safety increased amid a deepening selloff in emerging-market currencies. “The realization is settling in that there are still a lot of potential surprises out there, including those in the liquidity mechanisms and with respect to spillover effects from market to market,” Jeffrey Caughron, who advises community banks on investments exceeding $40 billion as an associate partner at Baker Group LP in Oklahoma City, said in a telephone interview.

Doug Noland writes The EM crisis took a turn for the worse. Backdrops conductive to crises can drag on for so long – sometimes seemingly forever – as if they’re moving in ultra-slow motion. Invariably, they lull most to sleep. Better yet, such environments even work to embolden the optimists. This is especially the case when policy measures are aggressively employed along the way, repeatedly holding the forces of crisis at bay. In the face of mounting risk, heightened risk-taking and leveraging often work only to exacerbate underlying fragilities. But eventually a critical juncture arrives where newfound momentum has things unwinding at a more frenetic pace. It is the nature of such things that most everyone gets caught totally unprepared.

EM currencies came under intense selling pressure this week. Most dramatically, the Argentine peso sank 15.1%. The Turkish lira fell 4.4%, the Brazilian real 2.3%, the Russian ruble 2.9%, the South African rand 2.0%, the Chilean peso 2.0%, the Colombian peso 1.5%, the South Korean won 1.9%, the Indian rupee 1.8%, and the Mexican peso 1.6%.

Notable market yield increases included the 59 bps surge in Turkish 10-year (lira) yields to 10.58%; the 113 bps increase in Venezuela 10-year (dollar) yields to 16.26%; the 122 bps jump in Ukraine 10-year (dollar) yields to 9.54%; the 19 bps increase in Russian 10-year (ruble) yields to 8.13%; the 19 bps jump in Mexico 10-year (peso) yields to 6.58%; the 25 bps increase in Brazil’s 10-year (real) yields to 13.14%; the 30 bps jump in Hungary’s 10-year (forint) yields to 5.71%; and the 30 bps jump in Indonesian (rupiah) yields to 8.78%.

Virtually the entire EM “complex” has been enveloped in protracted destabilizing financial and economic Bubbles. Thursday saw the Argentine central bank step away from what had been ongoing currency support operations. The Argentine peso quickly devalued 15%, before ending the session down about 12% (biggest fall in 12 years). The central bank’s decision to preserve its dwindling reserve position is reminiscent of Southeast Asian central bank actions back during the 1997 crisis. The dramatic market response was similarly reminiscent – ominously so.

For a while, central bank willingness to use reserves to support individual currencies bolsters market confidence in a country’s currency, bonds and financial system more generally. But at some point a central bank begins losing the battle to accelerating outflows. A tough decision is made to back away from market intervention to safeguard increasingly precious reserve holdings. Immediately, the marketplace must then contend with a faltering currency, surging yields, unstable financial markets and rapidly waning liquidity generally. Things unravel quickly

Mr. Noland continues on Dollarization. Anurag Joshi of Bloomberg reports “Indian companies facing some $300 billion-equivalent of debt maturing in two years are poised to extend the biggest dollar loan spree since 2010 to lock in rates as the Federal Reserve tapers stimulus. ONGC Videsh Ltd. leads companies seeking at least $5 billion in offshore bank debt this quarter after $10.5 billion was raised in the three months to Dec. 31, the most since the first quarter of 2010.” The issue of EM sovereign and corporate borrowings in dollar (and euro and yen) denominated debt has speedily become a critical “macro” issue. More than five years of unprecedented global dollar liquidity excess spurred a historic boom in dollar-denominated borrowings. The marketplace assumed ongoing dollar devaluation/EM currency appreciation. There became essentially insatiable market demand for higher-yielding EM debt, replete with all the distortions in risk perceptions, market mispricing and associated maladjustment one should expect from years of unlimited cheap finance. As was the case with U.S. subprime, it’s always the riskiest borrowers that most intensively feast at the trough of easy “money.”

I comment that the debt trade coming to an end on January 17, 2014, as is seen in the ongoing Yahoo Finance five day chart of AGG, with HYMB, rising, and other high yielding debt, falling, JNK, -0.7%, EMB, -0.7%, EMLC, -1.3%, and BDCS, -1.8%. Please notice the spread difference between EMB and EMLC amounting to  -0.06%, communicating the failure of trust in Emerging Local Currency Debt.

So, too many high-risk borrowers – from vulnerable economies and Credit systems – accumulated debt denominated in U.S. and other foreign currencies – for too long. Now, currencies are faltering, “hot money” is exiting, Credit conditions are tightening and economic conditions are rapidly deteriorating. It’s a problematic confluence that will find scores of borrowers challenged to service untenable debt loads, especially for borrowings denominated in appreciating non-domestic currencies. This tightening of finance then becomes a pressing economic issue, further pressuring EM currencies and financial systems – the brutal downside of a protracted globalized Credit and speculative cycle.

In many cases, this was all part of a colossal “global reflation trade.” Today, many EM economies confront the exact opposite: mounting disinflationary forces for things sold into global markets. Falling prices, especially throughout the commodities complex, have pressured domestic currencies. This became a major systemic risk after huge speculative flows arrived in anticipation of buoyant currencies, attractive securities markets, and enticing business opportunities.

The commodities boom was to fuel general and sustained economic booms. EM was to finally play catch up to “developed.”Now, Bubbles are faltering right and left – and fearful “money” is heading for the (closing?) exits. And, as the global pool of speculative finance reverses course, the scale of economic maladjustment and financial system impairment begins to come into clearer focus. It’s time for the marketplace to remove the beer goggles.

No less important is the historic – and ongoing – boom in manufacturing capacity in China and throughout Asia. This has created excess capacity and increasing pricing pressure for too many manufactured things, a situation only worsened by Japan’s aggressive currency devaluation. This dilemma, with parallels to the commodity economies, becomes especially problematic because of the enormous debt buildup over recent years. While this is a serious issue for the entire region, it has become a major pressing problem in China.

This week the markets seemed to begin taking the unfolding Chinese Credit crisis more seriously. There was talk early in the week of concerted efforts to save the troubled $496 million (“Credit Equals Gold No. 1”) trust product from a possible end of month default.

At the same time, data this week provided added confirmation (see “China Bubble Watch”) that China’s spectacular apartment Bubble continues to run out of control. When Chinese officials quickly backed away from Credit tightening measures this past summer, already overheated housing markets turned even hotter. Now, officials confront a dangerous situation: Acute fragility in segments of its “shadow” financing of corporate and local government debt festers concurrently with ongoing “terminal phase” excess throughout housing finance. China’s financial and economic systems have grown dependent upon massive ongoing Credit expansion, while the quality of new Credit is suspect at best. It’s that fateful “terminal phase” exponential growth in systemic risk playing out in historic proportions.

Global markets have begun to take notice. There are critical market issues with no clear answers. For one, how much speculative “hot money” has and continues to flood into China to play their elevated yields in a currency that is (at the least) expected to remain pegged to the U.S. dollar? If there is a significant “hot money” issue, any reversal of speculative flows would surely speed up this unfolding Credit crisis. And, of course, any significant tightening of Chinese Credit would reverberate around the globe, especially for already vulnerable EM economies and financial systems.

Yet another crisis market issue became more pressing this week. The Japanese yen gained 2.0% versus the dollar. Yen gains were even more noteworthy against other currencies. The yen rose 4.2% against the Brazilian real, 3.9% versus the Chilean peso, 3.5% against the Mexican peso, 3.9% versus the South African rand, 3.8% against the South Korean won, 3.0% versus the Canadian dollar and 3.0% versus the Australian dollar.

I have surmised that the so-called “yen carry trade” (borrow/short in yen and use proceeds to lever in higher-yielding instruments) could be the largest speculative trade in history. Market trading dynamics this week certainly did not dissuade. When the yen rises, negative market dynamics rather quickly gather momentum. From my perspective, all the major speculative trades come under pressure when the yen strengthens, from EM markets, to the European “periphery,” to U.S. equities and corporate debt.

It’s worth noting that the beloved European “periphery” trade reversed course this week. The spread between German and both Spain and Italy 10-year sovereign yields widened 19 bps this week. Even the France to Germany spread widened 4 bps this week to an almost 9-month high (72 bps). Stocks were slammed for 5.7% and 3.1% in Spain and Italy, wiping out most what had been strong January gains.

Even U.S. equities succumbed to global pressures. Notably, the cyclicals and financials were hit hard. Both have been Wall Street darlings on the bullish premise of a strengthening U.S. (and global) recovery and waning Credit and financial risk. Yet both groups this week seemed to recognize the reality that what is unfolding in China and EM actually matter – and they’re not pro-global growth. With recent extreme bullish sentiment, U.S. equities would appear particularly vulnerable to a global “risk off” market dynamic.

It’s worth noting that most spreads reversed course and widened meaningfully this week. This comes after what appeared to be the whole world coming to realize the fun and easy profits of selling/writing CDS and other forms of Credit insurance (“writing flood insurance during a drought”). The backdrop would seem ripe for a bout of risk aversion, where abruptly shifting markets force players to pare back some exposure to “alternative” Credit strategies and myriad leveraged trades. This would provide a more traditional mechanism for transmitting market tumult at the “periphery” toward the “core.” In a year that at this point seems poised to see a significant reduction in Federal Reserve liquidity creation, I would expect a return of a more “risk on, risk off” trading dynamic. This would seem to ensure that increasingly serious problems at the “periphery” have contagion effects that risk engulfing the “core.”

I comment that the reversal of spreads is seen in the char of JNK:TLT.

This week in currencies, the U.S. dollar index declined 0.9% to 80.458 (up 0.5% y-t-d). For the week on the upside, the Japanese yen increased 2.0%, the Swiss franc 1.7%, the Danish krone 1.0%, the euro 1.0%, the Swedish krona 0.5%, the British pound 0.4%, the Norwegian krone 0.2%. For the week on the downside, the Brazilian real declined 2.3%, the South African rand 2.0%, the South Korean won 1.9%, the Mexican peso 1.6%, the Australian dollar 1.1%, the Canadian dollar 1.1%, the New Zealand dollar 0.5%, the Taiwanese dollar 0.5%, and the Singapore dollar 0.2%.

The trade lower in Global Financials, IXG, Nation Investment, EFA, and World Stocks, VT, the week ending January 24,2014, was an epic event that PIVOTED the world out of paradigm and age of liberalism into that of authoritarianism; the great bull stock market turned to what will be the great bear market.

Global Financials, IXG, -4% with Life Insurance Companies, such as PUK and ING, -7, BRAF -5, CHIX -4, EMFN -4, RWW -4, KCE -4, EPI, -4.0, and EUFN, -4 0, with NBG -12, and SAN -5.

UK based Life Insurance Company, Prudential, PUK, was the crowning glory of liberalism’s debt trade investing as well as its currency carry trade investing.

World Stocks, VT, -3% with TAN -10, BJK -9, SLX -7, COPX, -6, PICK -5, SOCL -5, MHK -4, GEX -4, FXR -4, CSD -3, IHI -3, PSCD -3, CARZ -3, PEJ -3,  IAI -3, and WOOD -3, RXI -3, PNQI -3, FPX -3, WOOD -3, FLM, -3, and PBS -3.

One of liberalism best trading mutual funds, Fidelity Investments’, Vice Stocks, VICEX, traded 0.8% lower this week, evidencing the end of liberalism as both a paradigm and an age. Morningstar shows that its performance to be best of class, that is number 1, in the last 3 years.

Liberalism was a period that rewarded investment in every types of vice: war, gambling, boozing, and smoking. This was by express design and purpose of the King of Kings, and Lord of Lords, Jesus Christ, as He operated in dispensation, the concept of Apostle Paul found in Ephesians 1:10, that the Son of God, is in active oversight and administration of all things in every age, providing the credit and flow of strongholds, so that economic experience be complete in every age.

Nation Investment, EFA, -3%, with ARGT -9, TUR -8, ECH -7, EWHS -6, EWZ -5, EWZS -5, EWY -5,  EZA -4,  RSX -4,  SMIN -4, YAO -4,  GERJ -4,  EWW -4.0, EEM -4, IDX -3, EZU -3, EWA -3, KROO -3, EWUS -3, ECNS -3, EWG -3,  EWH -3, INP -3, EWM, -3, and NKY -3.

Eurozone EZU, -3%, GREK -7, EWP, -4 EWI -3, EWQ, -3,

Dividend Paying Stocks, DTN, -2%, with V -5, MA -4, IX -4, FIW -3, IST -3, DRW -3, and SEA -3.

Gold Miners, GDX, rose 1.5%, as Gold, GLD, rose 1.2%.

In commodities, the price of the commodity Sugar, SGG, traded lower again this week.  In related news Bloomberg reports: “Brazil junk bond investors battered by defaults from Eike Batista’s OGX Petroleo & Gas Participacoes SA to Banco Cruzeiro do Sul SA in the past two years are now facing a collapse in sugar and ethanol company debt. Aralco SA Acucar & Alcool’s $250 million of notes due 2020 have plunged 26.2 cents this year to a record low 30 cents on the dollar, while Grupo Virgolino de Oliveira SA’s $300 million of debt due 2018 tumbled 12.5 cents to 56.8 cents. Since 1999, eight of 10 Brazilian companies have defaulted after their bonds sank below 40 cents. Brazil’s unprecedented string of insolvencies since 2012 is showing little sign of abating as yields surge on $1.4 billion of sugar producer bonds.”

6) … Summary: What is economics?

Mises communicated that economics is human action, libertarian Ash Navabi writes in Ludwig Von Mises Canada; such believe that individuals are sovereign individuals. He goes on in his article    The Ultimate Microfoundation: Human Action Only individuals act. What we see as society, or the “macroeconomy”, is merely the consequence and summation of individual actions. The state, the church, and the firm, are all euphemisms for certain actions carried on by certain individuals. Economics is interested in understanding the ramifications of the actions of the individuals involved as they pertain to the allocation of scarce resources. All economic phenomena are the result of individual action. To stop the analysis at the national or state or other “macro” level, without attempting to identify or understand the reasons and reasoning of the individuals that make up those aggregates, is to be presumptuous about the motivations of individuals involved.

Economics is the dispensation of Christ, that is the administration and oversight of all things, producing empires for one to experience economic life as is seen in Bible Scripture of Daniel 2:25-45, Revelation 13:1-4, Revelation 17:12, and Daniel 7:7. He  provides the credit and flow of strongholds, so that economic experience be complete in every age.            

Economics is the granite of Jesus Christ, Psalms 118:22, Daniel 2:34. In His provision of the end time rule of authoritarianism, there can be no reliable trust in fiat investments; the only investments one can trust in, are the physical possession of gold bullion, and the sovereignty and the faith of Jesus Christ; it was this faith, His faith that was present from before the foundation of the world, and is expressed in the life of the believer today.

Economics is the providence of God, establishing Christ as one’s life experience; and without confirmation of a life of virtues and ethics one is said to be reprobate. Saints have the element of life, that being Jesus Christ, and thus have communion with God, whereas the aints are dead in Adam.

Economics is a life experience of risks and rewards; there be risks and rewards in the experience of anything. Residing here at the Sea Breeze Apartments in downtown Bellingham, I face many risks and few rewards in experiencing life amongst a melting pot of truly nutty people, as well as the just plain mean and crazy psychopaths, all living in the clientelism of Obamacare, Social Security Disability payments, and SNAP food stamp assistance.

For those looking for educational resources, homeschooling advocate Janice Price reviews the book Exploring Economics and other Notgrass courses and relates the curriculum package includes the Student Text and a Reader The Stewardship of God’s Riches. The Student Text, which is very readable and understandable (an accomplishment when the subject is economics), includes 75 daily lessons (typically 4-5 pages each) divided into 15 units. Each reading segment is followed by daily assignments that rotate between selections from the Reader, “Econ Labs,” writing assignments, and/or the discussion questions and quizzes from the optional Quiz and Exam book. The Stewardship of God’s Riches is a collection of documents, speeches, and essays that will help the student understand the practical implications of economics.

The Great Economic Transformation Began With A Trade Lower In Citigroup … A Number Of Black Swan Events Will Cause Financial Apocalypse, That Is A Global Credit Bust And Worldwide Financial System Breakdown … These Will Be The Genesis Factors For The Rise Of Regional Governance And Totalitarian Collectivism

January 20, 2014

A financial market report for the week ending January 17, 2014, from the dispensation economics viewpoint … this post is available in Google Documents format here.

1) … Introduction

An inquiring mind asks, what is money? Money is defined as the credit and trade that comes from the administration of a household or stronghold; and interest is defined as the cost of money.

Economics is defined as the life experience between a person and another, a corporation, and the state, that is government; either it be ethical or pathological; economics manifests either in life or in death.

As communicated in Ephesians 1:10, dispensation economics is a theory of providence: it describes how God the Father, established Jesus Christ to provide for a world lost to sin, that is doubt.

An economy is defined as the experience that comes from the administration of the credit and trade that comes from a household or stronghold; an economy exists for the experience of life or the experience of death; this life and death experience is determined by the prevailing interest rate of the existing monetary regime and its monetary policy.  The beast regime of regional governance and totalitarian collectivism emerged on October 23, 2013, replacing the democratic nation stage and banker regime, when the bond vigilantes in calling the Interest Rate on the US Ten Year Note, ^TNX, from 2.48%, PIVOTED the world from the paradigm and age of liberalism into that of  authoritarianism.

2) …  The stock market performance of the publicly traded Shipping Companies will likely be a leading economic indicator.

One can follow the publicly traded Shipping Companies with the use of this Finviz Screener. The market performance of this yield bearing investment an economic indicator, leading lower, as the world progressively moves out of inflationism into destructionism.

Jesus Christ, through dispensation, that is the administration of all things economic and political, produced peak liberalism the week of January 13, 2013, to January 17, 2013, which came via currency carry trade investing and debt trade investing.

Liberalism’s peak investment experience is seen in the ongoing six month Yahoo Finance chart of Shipping SEA, Global Financials, IXG, Nation Investment, EFA, World Stocks, VT, Greece, GREK, The Eurozone, EZU, and Denmark. EDEN.

3)  … Economic Destructionism is the new normal replacing Economic Inflationism.

Jesus Christ acting in dispensation, a concept presented by the Apostle Paul, in Ephesians 1:10, and meaning the oversight of all things economic and political, for the completion and perfection of every age, commenced the terminal phase of Liberalism with Ben Bernanke’s QE1. The years 2009 through 2103, was the zenith of the paradigm and age that featured the economic action of increasing inflationism, where there was a Great Swell in balance sheet of the US Federal Reserve, fiat wealth, such as World Stocks, VT, and M2 Money, as well as Total Credit, where the goal of monetary policy was investment gain, pursued and achieved by the world central banks acting in Global ZIRP and QE.

Yet as Econometer author Satyajit Das relates Low rates also highlight the increasing risk of deflation and a severe contraction in economic activity. Low rates encourage mispricing of risk and create asset bubbles; low interest rates distort currency values and encourage volatile, short term, cross-border capital flows as investors seek higher returns.

Economic life centered around the investor and investment choice, and carried impact in economic metrics such as Housing Starts,  GDP Reports,  Industrial Production,  ADP Payroll,  Construction Spending,  Purchasing Manager’s Index, etc; the latter were not goals, but rather statistical attributes, that is metrics, associated with risk-on investing.

On October 23, 2013, Jesus Christ opened the first seal of the Scroll of end time events, and released the Rider on the White Horse, as seen in Revelation 6:1-2, to affect a global economic and political coup d etat. His ride over the world PIVOTED the world from paradigm and age of liberalism into that of authoritarianism.

With the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher from 2.48%, economic action changed from one of inflationism to one destructionism, where there is the “dreaded experiences”.  These consist of the death of fiat money, the death of fiat wealth, economic deflation, economic recession, nation state default on Treasury Debt, disregard for personal property and  personal property rights, and disregard for people as persons.

Michael Hudson posts D is for Debt. End time events are manifesting in the news. These events have prefixes such as “de”, as well as “dis”; these words do not have prefixes such as “in”.

As destructive “prefix name action” increases in society, endurance is required on the part of the saint, where one keeps Christ’s word, and shrinks not from his Name, that is his presence and authority, as presented in Revelation 3:8.

The Great Economic Transformation came with the failure of fiat wealth, that is World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, on the week ending January 17, 2014, and it  pivoted economic experience from the paradigm and age of liberalism into that of authoritarianism,

There was a regime change from the banker regime with its rule of bankers and democratic nation states, where economic life centered on the investor and investment choice, to the beast regime with its rule of diktat of nannycrats in regional governance and totalitarian collectivism, where economic life is centered around the debt serf and debt servitude. Nannycrats, not investors, are the legislators of economic value, as well as the legislators that shape one’s means and one’s ends.

The Benchmark Interest Rate, ^TNX, that is the cost of US Treasury Debt, TLT, was formerly the Means of Economic Inflationism. But, with its rise from 2.48%, on October 23, 2013, it commenced the failure of trust in the monetary policies of credit stimulus of the Creature from Jekyll Island, and the economic policies of investment choice of democratic nation states. Now, The Interest Rate on the US Ten Year Note, ^TNX, is the Means of Economic Destructionism, establishing economic deflation and economic recession, terminating economic inflation and economic growth, and thus terminating the paradigm and age of liberalism, and birthing that of authoritarianism.

Investment fear has turned the two spigots of investment liquidity completely off; these being debt trade investing, and currency carry trade investing, thus depowering liberalism’s dynamos of economic activity: creditism, corporatism, and globalism; the new normal is OFF not ON, and now Regionalism is the singular dynamo of economic activity under authoritarianism.

The tremendous leverage of debt trade investing is seen in Ultra Junk Bonds, UJB, Leveraged Buyouts, PSP, and Distressed Investments, FAGIX, trading higher to its January 17, 2014 zenith.

And the tremendous leverage of currency carry trade investing is seen in M&G Investment chart article  The year of the Snake – 2013 returns in fixed income markets which shows that currency traders drove Euro, FXE, and the British Pound Sterling, FXB, strongly higher, while strongly short selling the Japanese Yen, FXY, which drove Nation Investment, EFA, such as Greece, GREK, higher.

As investors become entrenched in their new role of debt serfs they will be derisking out of debt trades such as Global Telecom, IST, like France’s, ALU, Finland’s, NOK, and Leveraged Buyouts, PSP, like the UK’s, DORM, and deleveraging out of currency carry trade investments like the UK’s, PRU, LYG, the Netherland’s, ING, and Ireland’s COV, CRH, STX, ACN, IR, MNK, PRIA, TRIB, and IRE.

The result of investment derisking will be a global whirlwind of economic deflation and economic recession, like the world has never seen; something far disastrous than the financial bust of 2008, where all previous economic life ceased. The Financial Crisis of 2008 is likened to a fatal automobile crash that killed all the occupants. Jesus Christ, acting in the economy of God, seen in Ephesians 1:10, constituted a new vehicle, the Speculative Leveraged Investment Community, and a new driver, the investor who drove the investment based economy to spectacularly unsustainable heights.

Liberalism’s peak wealth experience is seen in the chart of World Stocks, VT, relative to Aggregate Credit, AGG, that is VT:AGG, as well as Nation Investment, EFA, relative to World Treasury Bonds, BWX, that is EFA:BWX, both topping out in value. Under liberalism, fiat wealth leveraged up on fiat money which is defined as the combination of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW.  The periphery-to-core dynamic of funds that flow into Japanese Stocks, NKY, US Stocks, VTI, UK Stocks, EWU, and Eurozone Stocks, EZU, came to completion on January 17, 2014, on the death of Major World Currencies, DBV, as investors derisked out of Retail Stocks, XRT, and Citigroup, C. The Great Swell, seen in the Downtown Josh Brown ‏ReformedBroker tweet of Jan 17, 2014, Chart Of  16 years of asset accumulation by fund category, is history.

Now that greed has turned to fear, the tail risk of Global ZIRP will be economic deflation and economic recession.

A bust always follows a boom. The Apostle Paul presents in Ephesians 1:10, that Jesus Christ, has been tasked with dispensation, that is the oversight and administration of all things economic and political, for the completion and perfection of every age, epoch, era, and time period, bringing all things therein to their full maturity, where He produces empires, with kings, to rule over the peoples, this being seen in the prophet Daniel’s Statue of Empires prophecy of Daniel 2:25-45. The rule of king Obama over the US Dollar Hegemonic empire, the final iron leg, which accompanied the British empire, was financially dissolved the week ending January 17, 2014, with with the sell of Citigroup.

Liberalism’s 100 year reign of the Creature from Jekyll Island, is history. Jesus Christ did what Ron Paul could not do, He being in full control of all things, “Ended the Fed”, beginning with the sell of Retail Stocks, XRT, and Citigroup, C.  It is gone forever, relegated to the dustbin of history. This creature exists no more. Although there be a new Fed Chairman, Janet Yellen,who takes office February 1, 2014, there is a much more terrible monster inside the Eccles Building, that is the Beast of Revelation 13:1-4, and this monster will one day rise up and destroy all of liberalism’s fiat money and fiat wealth, utterly pulverizing it, as is seen in bible prophecy of Daniel 7:7.

On Monday, January 13, 2014, fiat wealth started to die, as greed turned to fear; specifically fear that the economic policies and monetary policies of the world central banks have passed the rubicon of sound monetary policy, and will in the future, make “money good” investments, such as Retail Stocks, XRT, bad.  Yes, immediately in front of the the Census Bureau’s December Retail Sales report, as reported by Numbernonics, and as reported by CME Group, Risk-on investing, ON, turned to Risk-off investing, OFF, as reflected in Retail Stocks, XRT, tumbling strongly lower in value. The stock bubble is starting to burst, beginning the week of January 13, 2014.

Investment fear has turned the two spigots of investment liquidity completely off; these being debt trade investing, and currency carry trade investing, thus depowering liberalism’s dynamos of economic activity: creditism, corporatism, and globalism; the new normal in investing is OFF, not ON.

The US Ten Year Note, ^TNX, was The Means of Economic Inflationism, but now, through the rise in the cost of money, rising from 2.48% on October 23, 2013, the nature of the Benchmark Interest Rate, $TNX, has changed, to be The Means of Economic Destructionism.

The monetary authority of the US Federal Reserve and its interventionism established safety of investing under the banker and democratic nation state policies of credit creation and investment choice. The Fed’s QEs provided a monetary policy that underwrote a riskless investing environment.

A new monetary authority and new monetary policy is emerging. Now with US Ten Year Note, ^TNX, rising above 2.38%, the US Dollar, $USD, UUP, has traded up to strong resistance at $81.50, and has established the end of the sovereignty and the seigniorage of the US Dollar Hegemonic Empire, and birthed that of the beast regime of regional governance and totalitarian collectivism.

The beast regime’s sovereignty is Deutungshoheit in nature. The monetary authority of authoritarianism’s beast regime features the security, stability and sustainability of the diktat of nannycrats, not bankers, in regional governance, and in the debt servitude of totalitarian collectivism.

There is only one sovereignty, and it provides only one life experience.  Deutungshoheit is defined as interpretational sovereignty and connotes supremacy in all things, the result being German economic, banking, credit, and military supremacy, over all of the Eurozone. German linguist Thorsten Pattberg relates Deutungshoheit is a German word meaning “having the sovereignty over the definition of thought,” sometimes also called “the prerogative of final explanation.”

Authority now longer resides in democracy; now Obrigkeit, as the Germans say, resides in beast regime’s policies of diktat in regional governance in all of the world’s ten regions, and has affect in schemes of debt servitude in totalitarian collectivism in each of the world’s seven institutions, as presented by the Apostle John in presenting  The Constitution of endtime rule in Revelation 13:1-4.

The only rule of law that exists under authoritarianism is the diktat of nannycrats, and the word, will and way, of the Sovereign, Revelation 13:5-10, and his partner, the Seignior, Revelation 13:11-18, meaning top dog banker who in minting money, takes a cut. These provide diktat money for the singular life experience of debt servitude.

Under democracy one was an investor knowing life in a variety of investment choices via a strong use of credit; now under authoritarianism one is a debt serf, experiencing an ever increasing debt servitude.

Under liberalism, monetary transmission of fiat money went to the investor, this is seen in The Economic Collapse Blog post The number of working age Americans without a job has risen by almost 10 million under Obama. And in The LA Times post US wealth gap grew during recession, Stanford report finds. And in The SCPI report National Report Card on Poverty and Inequality.

God’s Sovereign Man, another title for Jesus Christ, has not been concerned about social justice, and liberal economics, such as that of Mark Thoma’s, with concerns about income inequality.  Christ’s sole focus has been perfecting liberalism, and its systems such as Greek Socialism, Chinese Communism, US Crony Capitalism, and Clientelism, such as Social Security Disability.  Christ’s perfection of liberalism came on January 17, 2014, when He produced peak moral hazard fiat wealth, as is seen in World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, trading lower in value.

Regionalism is now the singular dynamo of economic activity under authoritarianism, replacing liberalism’s three dynamos of creditism, corporatism and globalism. Monetary transmission under authoritarianism will become quite effective for a number of people, as bible prophecy reveals “they worshiped and followed after the beast, saying who can make war against it”.

4) … On Thursday, January 16, 2014, the great economic transformation, from liberalism where capitalism ruled, to authoritarianism where regionalism rules, began with a trade lower in Retail Stocks, XRT, and Citigroup, C.

Aggregate Demand will be tumbling lower as a number of black swan events, such as a China Swan, will cause Short Term Interest Rates to rise, resulting in Financial Apocalypse, that is a global credit bust and worldwide financial system breakdown foretold in bible prophecy of Revelation 13:1-4; these will be the genesis factors for the rise of regional governance and totalitarian collectivism.

Reuters reports Bond trading stings Citigroup in 4th quarter. World Stocks, VT, traded unchanged, yet the very lynchpin of the paradigm and age of liberalism, that is Global Financials IXG, traded lower, as The Too Big To Fail Banks, RWW, were led lower by Citigroup, C.  Regional Banks, KRE, were led lower by the Top Performing Regional Banks, HBAN, SNV, FIBK, SIVB, OZRK, GBCI, PACW, FFIN, and UCBI. The European Financials, EUFN, were led lower by the National Bank of Greece, NBG.  China Financials, CHIX, Japan’s Sumitomo Mitsui, SMFG, South Korea’s Shinhan, SHG, the UK Lloyd’s Banking, LYG, all traded lower.  Credit provider, Visa, V, led Credit Services, lower.  Insurance company, Prudential, PUK, and ING, ING, led life insurance companies lower.

Competitive currency devaluation, is active in producing debt deflation.

Monetization of debt is bearing its fruit. Japan’s Nikkei, NKY, led Nation Investment, EFA, lower.  The Australian Dollar, FXA, led Major World Currencies, DBV, and Australia, EWA, and Westpac Banking, WBK, and Australia Dividends, AUSE, lower, as International Treasury Bonds, BWX, traded lower.  Emerging Market Currencies, CEW, led Turkey, TUR, Malaysia, EWM, Indonesia, IDX, and Mexico, EWW, led the Emerging Markets, EEM, lower, as Emerging Market Local Currency Bonds, EMLC, traded lower.

Greece, GREK, and the National Bank of Greece, NBG, led the Eurozone Nations, EWI, EWG, EFNL, EWN, EWQ, EIRL, EWP, EWO, and PGAL, lower, as Eurozone Debt, EU, traded lower.

Best Buy, BBY, Big Lots, BIG, Kroegers, KR, Ulta Salon, ULTA, GNC Holdings, GNC, and Michael Kors, KORS, led Retailers, XRT, lower.  As seen in ongoing Yahoo Finance Chart, of XRT, and PNQI, RXI, IYC, FDN, PBJ, PSCC, IHF, KXI,and PSCD.  The sell of Retailers, XRT, have gone viral, and are leading all consumer spending stock sectors lower; this despite a strong Census Bureau’s December Retail Sales report, reported by Numbernonics, and by CME Group.

Said another way, increasing disinvestment out of Retail Stocks, XRT, is having a domino affect in causing disinvestment out of similar stock sectors, these include, Small Cap Consumer Discretionary, PSCC, Small Cap Consumer Discretionary, PSCD, Consumer Staples, KXI, Food And Beverage, PBJ, and Consumer Services, IYC. And related sector, Advertising Agencies, IPG, OMC, LAMR, WPPGY, DECK, tumbled. And also related sector, Apparel Manufacturers PVH, RL, FNP, ZQK, GIL, VFC, UA, HBI, NKE, ICON, SKX, WWW, and DFZ, tumbled as well. A break in the stride of the Retail  Juggernaut, XRT, is causing disinvestment out of a broad spectrum of consumer related stock sectors.

Building Supply Company Masco, MAS, led US Infrasturcture, PKB, lower.  And General Holding, GNRC, ITT Corp, ITT, IDEX Corp, IEX, Babcox and Wilcox, BWC, Pall Corp, PLL, Siemens, SI, Flowserve, FLS, General Electric, GE, and 3M Co, MMM, led Global Industrial Producers, FXR, lower. Alcoa, AA, led Industrial Miners, PICK, higher.

Truckers, ODFL, SAIA, PTSI, CNW,  UHAL, R, as well as Railroads, UNP, KSU, CNI, CSX, NSC, and CP, led Transportation Stocks, XTN, lower. Foreign Airlines, ASR, PAC, CPA, and RYAAY, tumbled.

News reports present a number of economic deflation triggers, which include the Bloomberg report of China credit tightening China Money Rate jumps most this year as PBOC skips injections; and the Bloomberg report of currency deflation coming from a weak employment report, Australia Dollar tumbles after weak jobs; and the Ambrose Evans Pritchard report of economic dislocation caused by resource nationalism. Nickel jumps as Indonesia bans key metal exports. Resource nationalism alive and well as Indonesia bans key metal exports; and the recession stimulating news of corporate restructuring, as Crain’s Detroit Business report Flagstar S&L to cut 700 jobs in restructuring move.

5) … On Friday, January 17, 2014, The Great Economic Transformation, that is the pivot from liberalism into authoritarianism, was fully established with the failure of fiat wealth.

Global Financials, IXG, Nation Investment, EFA, and World Stocks, VT, traded lower as currency traders sold the Euro Yen, EUR/JPY, carry trade, and the Australian Dollar Yen, AUD/JPY, carry trade, causing derisking out of Eurozone Stocks, EZU, European Financials, EUFN, and Eurozone Nations, EWI, EWG, EFNL, EWN, EWQ, EIRL, EWP, EWO, PGAL, as well as deleveraging out of Eurozone Debt, EU, and likewise derisking out of Australia, EWA, and Australia Dividends, AUSE. New Zealand, ENZL, traded lower from its rally high.Turkey, TUR, continued lower.  Investment trading reflects that the Major World Currencies, DBV traded lower.

Both ETF Channel reports, and Finviz reports, investment derisking and deleveraging. Major ETFS trading lower included, XRT, IYC, PSCD, PBJ, PBS, TAN, SOXX, ITB, SOCL, PNQI, PWB, BRAF, GREK, EWP, EIRL, EFNL, EWN, PGAL, EWG, EDEN, KROO, DFE, EUFN, INP, SMIF, and CHNA; and Other ETFs trading lower included GMFS, GEMS, NIB, UNG, WEAT, and CORN.

Global Industrial Producer, FXR, leader, General Electric, GE tumbled as Bloomberg reports GE reports after profit-margin forecast trails forecast. And Transportation leader United Parcel Service, UPS, tumbled as Fox reports Shipping giant slashes FY view. Industrial Miners, PICK, traded higher. Despite the WSJ report that IBM commits $1.2 billion to cloudstack; investing in cloud computing stocks, seen in this Finviz Screener, has peaked out.

The Emerging Markets, EEM, traded lower. The India Rupe, ICN, traded lower, forcing India’s Banks, HDB, and IBN, India, INP, and India Small Caps, SCIN, lower. The Brazilian Real, BZF, traded lower, forcing Brazil Financials, BRAF, and Brazil, EWZ, lower. And Chinese Financials, CHIX, traded lower as Bloomberg reports ICBC won’t repay troubled Chinatrust Product, official says.

Despite the trade higher in the US Dollar, USD, UUP, to close at strong resistance at 81.40, Gold, GLD, and Silver, SLV, traded higher, taking Gold Miners, GDS, and Silver Miners, SIL, higher. Spot Gold, GOLD, closed at the highest level in five weeks at $1250, as investors seek the safe haven of hard assets. Needless to say, fiat wealth now being unstable, cannot sustain wealth.

In the age of authoritarianism, one should be invested in, and take possession of, and safely store gold bullion and silver bullion, as in the new epoch, the diktat of nannycrats and precious metals will be the only safe and sustainable form of wealth.

Aggregate Credit, AGG, traded higher, both for the day and the week.

The Fear Gauge, Volatility, ^VIX, traded by XVZ, has bottomed out at 12.14, and has been rising for seven trading days, confirming that the financial markets have pivoted from a bull market to a bear market.

6) … Life in Christ, is the greatest economic experience possible; here one experiences Christ as the Element of Life, which produces genuine economic life.

Life in Christ begins when one confesses Christ as one’s Life and as one’s Lord; the receives His life, and journeys onward, growing in the attributes of His life. The old self, which in reality is death in Adam, is crucified with Christ, so that one can live the exchanged life, where Christ is the all inclusive life experience, and where one knows the economy of God, that is the dispensation of Christ in all things, as presented by the Apostle Paul in Ephesians 1:10.

Either one be elect in Christ, or one be fiat in philosophy and religion. One could listen to the 30 lectures that will help you to become a more knowledgeable libertarian (Part 2 as presented by Robert Wenzel; but being fiat runs the risk of becoming psychopathic through the events of the harsh natural economy, and through exposure to anomic breakdown, that is to social breakdown.

The elect purpose for ethics, that is regard for the person and property of another; whereas the psychopaths, the elect’s polar opposite, purpose for intrusiveness, such as gossiping, busybodyness, and preeminence; such seek to be lord of their turf; community overlords, and community sheriffs enforcing their rule in whatever they think to be right; these be chameleons, that is shapeshifters, who have the ability to deceive and persuade by presenting personas to become more acceptable as needed.

And the elect purpose for virtue, that is having the moral attributes of God; whereas the psychopaths purpose for carnality, such as alcohol abuse, smoking, and promiscuous sex; any two of these combined “liberates” the psychopath, sending him on a blast of interpersonal abuse targeting any available person in his turf in a bout of preeminence in speech and/or behavior.

Residing at the bottom of affluence and population density in Prizm 65, Big City Blues, and Prizm 66 Low-Rise Living, I see this cycle of psychopathic degeneration and activity going on continually.

Living in the Spirit of Righteousness produces life; on the other hand living in the Spirit of Iniquity produces death. The elect, having the Jesus Christ the Element of Life, know the economy of life. Whereas the fiat and the psychopaths, being dead in Adam, know the economy of death.

In 2008, I moved into the Sea Breeze Apartments, an apartment tower of SROs, located near Holly and Railroad, Bellingham’s Beer Gardens, Nightlife, and Social Services District.

While there are not any hoodlums, that is gangsters here; there are hooligans, that is psychopaths, who manifest mischievously as well as just plain mean and crazy. They know right from wrong, but speaking lies in hypocrisy; having their conscience seared with a hot iron, as communicated in 1 Timothy 4:2, they continually act out in the wrong because it gives them pleasure to do so; from such I have a no contact order from God, I must withdraw, yes I must turn away from such individuals.

I feel sorrow for women who come to live here at the Sea Breeze Apartments, and who decide to move on, living here-and-there with acquaintances. I see these about town; they have lost their femininity, and have a hardened guy look. Larry DeVore communicates that living loose hardens an individual; and I add, can easily transform one into a psychopath.

Perhaps those who might benefit most from a good reading of the EconomicReview Journal are the Millennials, that is Generation Y, as they have no fiat money or fiat wealth, and thus the resource of Christ, and the truth of Christ, might appeal to them more than to those of other generations who have and are invested in fiat money and fiat wealth.

7) … Numerous authors relate that a higher Benchmark Interest Rate, ^TNX, beginning in May 2013, then intensifying on June 20, 2013, and again on October 23, 2013, has been destroying capital; this presents systemic risk.

Capital is defined as the combination of money and wealth.

Capitalism is defined as the application of money and wealth in the pursuit of invesment gain. A rising cost of money, that is a rising Benchmark Interest Rate, has been destroying the basis of the economy, and has destroyed capitalism.

Capitalists were made extinct by the Extinction Event of Jesus Christ of October 23, 2013, where He opened the first seal of the Scroll of end time events, and released The Rider on The White Horse, to effect a global coup d’etat, which enabled the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, which destroyed fiat money, and which on January 17, 2014, destroyed fiat wealth. The Extinction Event of October 23, 2013, PIVOTED the world from the paradigm of liberalism into that of authoritarianism, and commenced regionalism, where there are no capitalists, only nannycrats and debt serfs.

John Butler of The Amphora Report, takes a closer look at proposed liquidity regulation as a response to the growing use of ‘collateral transformation’ (a topic often discussed here) in the shadow banking system and wrote on June 28, 2013, in Zero Hedge The stability of the financial system is at risk in the event that there was a drop in securitised collateral held by banks.

Time marches on and with lessons learned harshly comes a fresh resolve to somehow get ahead of whatever might cause the next financial crisis. For all the complacent talk about how the “recovery is on track” and “there has been much economic deleveraging” and “the banks are again well capitalized,” the truth behind the scenes is that central bankers and other economic officials the world over remain, in a word, terrified. Of what, you ask? Of the shadow banking system that, I believe, they still fail to properly understand.

In the present instance, so the thinking behind liquidity regulation goes, prior to 2008 the regulators were overly focused on capital adequacy rather than liquidity and, therefore, missed the vastly expanded role played by securitised collateral in the international shadow banking system. In other words, the regulators now realise, as I was arguing back in the mid-2000s, that the vast growth in shadow banking liquidity placed the stability of the financial system at risk in the event that there was a drop in securitised collateral values.

In 2007, house prices began to decline, taking collateral values with them and sucking much of the additional, collateral-based liquidity right back out of the financial system, unleashing a de facto wave of monetary+credit deflation, resulting in the subsequent financial crisis. But none of this was caused by ‘market failure’, as Governor Stein contends. Rather, there is another, simpler explanation for why banks were insufficiently provisioned against the risk of declining collateral values, yet it is not one that the regulators much like to hear, namely, that their own policies were at fault.

In one of my first Amphora Reports back in 2010 I discussed in detail the modern history of financial crises, beginning with the 1980s and concluding with 2008.

Notwithstanding this prominent pattern of market-distorting interest-rate manipulation, guarantees, subsidies and occasional bailouts, fostering the growth of reckless lending and other forms of moral hazard, the regulators continue their self-serving search for the ‘silver bullet’ to defend against the next ‘market failure’ which, if diagnosed correctly as I do so above is, in fact, regulatory failure.

Were there no moral hazard of guarantees, explicit or implicit, in the system all these years, the shadow banking system could never have grown into the regulatory nightmare it has now become and liquidity regulation would be a non-issue. Poorly capitalised banks would have failed from time to time but, absent the massive systemic linkages that such guarantees have enabled, encouraged even, these failures would have been contained within a more dispersed and better capitalised system.

As it stands, however, the regulators’ modus operandi remains unchanged. They continue to deal with the unintended consequences of ‘misregulation’ with more misregulation, thereby ensuring that yet more unintended consequences lurk in the future.

Might collateral transformation be the crux of the next crisis?  An obvious consequence of such collateral transformation is that it increases rather than decreases the linkages in the financial system and thus in effect replaces firm-specific, idiosyncratic risk with systemic risk, exactly the opposite of what the regulators claim they are trying to do by increasing bank regulatory capital ratios.

Liquidity regulation is an attempt to address this accelerating trend and the growing systemic risks it implies. Those financial institutions engaging in the practice probably don’t see things this way.

From the perspective of any one institution swapping collateral in order to meet changing regulatory requirements, they see it as necessary and prudent risk management. But within a closed system, if most actors are behaving in the same way, then the net risk is not, in fact, reduced. The perception that it is, however, can be dangerous and can also contribute to banks unwittingly under provisioning liquidity and undercapitalization against risk.

Viewed system-wide, therefore, collateral transformation really just represents a form of financial alchemy rather than financial engineering. It adds no value in aggregate. It might even detract from such value by rendering opaque risks that would otherwise be more immediately apparent. So I do understand the regulators’ concerns with the practice. I don’t, however, subscribe to their proposed self-serving remedies for what they perceive as just another form of market failure.

Already plagued by the ‘Too Big to Fail’ (TBTF) problem back in 2008, the regulators have now succeeded in creating a new, even more dangerous situation I characterise as MAFID, or ‘Mutual Assured Financial Destruction.’ Because all banks are swapping and therefore holding essentially the same collateral, there is now zero diversification or dispersion of financial system risk. It is as if there is one massive global bank with thousands of branches around the world, with one capital base, one liquidity ratio and one risk-management department. If any one branch of this bank fails, the resulting margin call will cascade via collateral transformation through the other branches and into the holding company at the centre, taking down the entire global financial system.

Am I exaggerating here? Well, if Governor Stein and his central banking colleagues in the US, at the BIS and around the world are to be believed, we shouldn’t really worry because, while capital regulation didn’t prevent 2008, liquidity regulation will prevent the scenario described above. All that needs to happen is for the regulators to set the liquidity requirements at the right level and, financial crises will be a thing of the past: never mind that setting interest rates and setting capital requirements didn’t work out so well. Setting liquidity requirements is the silver bullet that will do the trick.

Sarcasm aside, it should be clear that all that is happening here is that the regulators are expanding their role yet again, thereby further shrinking the role that the markets can play in allocating savings, capital and liquidity from where they are relatively inefficiently utilized to where they are relatively more so. This concept of free market allocation of capital is a key characteristic of a theoretical economic system known as ‘capitalism’. But capitalism cannot function properly where capital flows are severely distorted by regulators. Resources will be chronically misallocated, resulting in a low or possibly even negative potential rate of economic growth.

The regulators don’t see it that way of course. Everywhere they look they see market failure. And because Governor Stein and his fellow regulators take this market failure as a given, rather than seeking to understand properly how past regulatory actions have severely distorted perceptions of risk and encouraged moral hazard, they are naturally drawn to regulatory ‘solutions’ that are really just plagiarised copies of an old playbook. What is that definition of insanity again, about doing the same thing over and over but expecting different results?

On June 24, 2013, John Rubino reported, During the night, emerging market stocks tanked again, led, ominously, by China. This morning the carnage has shifted to the US, where stocks are down hard but, more important, interest rates are still rising. 10-year Treasuries, the key to mortgage rates and pretty much everything else, now yield nearly twice what they did a year ago. That means losses for a whole world of risk averse investors who thought they were parking their money in the safest-possible asset. The rest of their capital is in riskier places, like stocks and junk bonds, which means they’re losing across the board. This is a global story, since Treasuries have been everyone’s safe haven of choice for decades. But painful as a 40% haircut for the world’s pension funds might be, it pales next to the impact on growth. US interest rates are, with a few notable exceptions like Japan, the base of the global yield curve. Everything else, being riskier, has to have a higher yield. So a doubling of US rates means a commensurate ratcheting up of everyone else’s rates.

Since equities are valued in part in relation to the yield on available bonds, rising interest rates mean lower stock prices, everywhere. And real estate, which is generally leveraged, has just gotten a lot more expensive (which means the other group obsessively staring at screens these days is the new generation of flippers who recently joined the Southern California and Florida bubbles).

This is the nightmare scenario that keeps central bankers and institutional investors up at night because, based on Japan’s experience with hyper-aggressive monetary ease, there might not be a fix. If even easier money is met with dramatically higher bond yields, as in Japan, then there’s nothing left to do but to let the system unravel.

M&G Investments posted Emerging market debt: 2013 returns post-mortem. Within the asset class, EM corporate bonds outperformed EM sovereign debt, with the former returning -0.6% and the latter -5.3% in 2013. This sub-asset class benefited from its shorter duration and tangential spill-over (or higher correlations?) from the stronger performance in global investment grade and high yield credit. EM corporate bond spreads, measured by the JP Morgan Corporate EMBI index, are now flat to hard currency sovereign debt which translates into a narrowing of 66 bps since the beginning of 2013.

Therefore, the asset allocation between EM sovereigns in both hard and local currency and EM corporates was one of the key calls for performance in 2013. Sovereign bonds underperformed over the year, with hard currency debt delivering a negative return of -5.3%, also due to the fact that it has the longest duration of all three sub-asset classes. However, local currency debt faced a particularly challenging year, delivering a negative total return of -9.0% which can be mostly attributed to the foreign exchange component of the bond, while the carry, i.e. the additional return due to higher local interest rates, compensated for the back-up in yields.

The ongoing Yahoo Finance Chart of EMLC, and EMB, illustrates the failure of Emerging Market Investing, EEM, coming through debt deflation, that is currency deflation, CEW, caused by the bond vigilantes calling the Benchmark Interest Rate, $TNX, higher beginning in May 2013.

Sober Look posts Currencies of natural resource exporters under pressure. Some of the largest natural resource exporters with floating exchange rates have seen their currencies come under significant pressure over the past year. (And relates demand destruction) is seen in slower economic expansion in China as Bloomberg reports China’s factory output and investment growth probably weakened in December, adding to signs the world’s second-largest economy is losing momentum as analysts forecast 2014 expansion at the lowest in 24 years.

The weekly chart of Commodity Currencies, CCX, comprised of MXN, NOK, CAD, RUB, BRIL, AUD, and ZAR, shows that the sell off in these began in February, 2013, and intensified in May 2013, and then again on October 23, 2013, when the bond vigilantes gained control of the Benchmark Interest Rate, $TNX, causing disinvestment out of Mexico, EWW, Norway, NORW, Canada, EWC, Russia, RSX, with the strongest disinvestment coming out of Brazil, EWZ, Australia, EWA, and South Africa, EZA, as is seen in combined Yahoo Finance Chart.

M&G Investments also posted Tomlins’ guide for getting the best from High Yield. The year 2013 was another decent year for returns in the high yield market. The US market returned 7.4%, with Europe a little way ahead at 10.3%. I add that Wisdom Tree Small Cap Europe, DFE, was an outstanding equity investment, returning 40%, and 2.4% yield.

Debt deflation is already aggressively underway worldwide, and is a leading trigger of economic deflation and economic recession. The bond vigilantes, in calling the Interest Rate on the US Ten Year Note, ^TNX, higher, since May 2013, have caused the greatest investment destruction in the Emerging Markets EEM, Turkey, TUR, Peru, EPU, Chile, ECH, Indonesia, IDX, Thailand, THD, Philippines, EPHE, and Malaysia, EWM, as is seen in combined ongoing Yahoo Finance Chart.  Danske Bank posts in PDF Document Two very different headaches for the Emerging Markets, deflation and external imbalance.

Zero Hedge posts Tracking Bubble Finance risks in a single chart.   And ReadTheTicker posts in Safehaven Buyer exhaustion approaching, The chart of the Morgan Stanley Cyclical Index, $CYC, which is traded by FXR, manifests as topped out.

The periphery-to-core dynamic of funds that flowed into Japanese Stocks, NKY, US Stocks, VTI, UK Stocks, EWU, and Eurozone Stocks, EZU, came to completion on January 17, 2014, on the failure and utter death of Major World Currencies, DBV, terminating the Milton Free To Choose Regime. The Great Swell, is history, beginning with the trade lower in Retail Stocks, XRT, and Citigroup, C.

The tail risk of Global ZIRP is economic deflation and economic recession, she is presented in bible prophecy of Revelation 17: 1-5; she is going to be a bad bitch, as she is the scarlet beast, full of names of blasphemy, having seven heads and ten horns, and upon her forehead a name written, Mystery, Great Babylon, the mother of the harlots, and of the abominations of the earth.  Kind of bad, right?!

Of which Christine Lagarde the Managing Director of the International Monetary Fund to the National Press Club in Washington DC, said, “With inflation running below many central banks’ targets, we see rising risks of deflation, which could prove disastrous for the recovery. If inflation is the genie, then deflation is the ogre that must be fought decisively”.

The great economic transformation out of the economic paradigm and age of liberalism, and into that of authoritarianism, features the feared economic deflation, coming largely through investment derisking and deleveraging. Economic deflation is defined as a vicious circle of falling demand, prices, wages, and output.

A metric of economic deflation is the fall in consumer prices. Brad Delong posts in Equitablog the Stephen Fiddler chart article Where deflation risks stir concerns, where he communicates falling consumer prices for the southern periphery, less economically productive, EU nations.

Barry Popik of The Big Apple web site posts the Mark Thornton definition of Apoplithorismosphobia: the fear of deflation. Needless to say Christine Lagarde has it to the max.

In the soon coming economic deflation and economic recession, there will be lots of price deflation, which reflects falling aggregate demand coming from increased unemployment, which stems from a number of factors, such as productivity imbalances, corporate reorganizations, and currency deflation, that is where one’s currency buys less economic goods.

Johnna Montgomerie writes in London School of Economics of the pain of economic deflation that comes from asset based wealth The shortcomings of the debt safety net. While debt has been an acceptable component of economic life for many decades, the bubble of the early 2000s and the subsequent financial crash took debt burdens to entirely new levels. The contemporary model that social protection will come from asset-based welfare and easy credit has led to massive financial insecurity, especially for the young and old, who have found rising debts to have far outpaced their incomes. Already high debt levels for young people and senior citizens mean that any falls in income through unemployment or rising healthcare costs will leave them to face debt repayments of 25 to 49 percent of their income.

8) … The Apostle Paul presents the concept of dispensation in Ephesians 1:10; dispensation underwrites all life, as well as all death.

The idea of dispensation conveys that Jesus Christ rules the political economy to produce economic life or economic death within each of mankind’s epochs, eras, time periods and ages, and this according to the Prophet Daniel is through empires, Daniel 2:25-45.

Michael J. Mazarr, a professor of National Security Strategy at the National War College, posts in the CFR publication Foreign Affairs The rise and fall of the failed-state paradigm. And Nature economist Elaine Meinel Supkis continually complains bitterly about the current monster; the reality is that God purposed for it from eternity past.

According to the Apostle Paul in Ephesians, 1:10, Jesus Christ matures each empire in its epoch, that is in its time period. He perfected, that is completed the US Dollar Hegemonic Empire, as the greatest kick-ass, and might make right empire of all time, by first causing the destruction first of fiat money on October 23, 3013, and then secondly by the destruction of fiat wealth on January 17, 2013, with the trade lower of World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, all being led lower by Retail Stocks, XRT, and Citigroup, C.

In her article, Elaine Meinel Supkis writes “The looming race/religious wars that will break out here will destroy the US”. This is true, this was foretold by the Great Illuminati Prophet Albert Pike who wrote of Three World Wars.

Now, Jesus Christ operating through the constitution of end time rule, presented in Revelation 13:1-4, is bringing forth the Beast System, to rule the world as a singular world wide empire establishing the monetary policy of diktat in regional governance in all of the world’s ten regions, and providing the experience of schemes of debt servitude in every one of mankind’s seven institutions. Thus establishing a total panopticon for all of ones life experience, where one serves the beast regime, as a debt serf in debt servitude.

The trade lower in sovereign debt globally since May 20, 2013, seen in the ongoing Yahoo Finance Chart of US Ten Year Notes, TLT, World Treasury Bonds, BWX, and European Debt, EU, together with interest rate sensitive Utilities, XLU, and Emerging Markets, EEM, gives confirmation to the death of fiat money and fiat wealth.

Two Major Banks post that the bond vigilantes are calling Eurozone Interest Rates higher. First, in PDF Document Nordea Bank posts Short Eurozone rates are on the rise once again, only unlike the December movements, there’s nothing obvious in the calendar to reverse it. The ECB was firmer than usual, but still vague in terms of pre-commitment. However, unwarranted increases in short rates were explicitly highlighted by Mr. Draghi last week.  The Euribor 3M fixing now prints 30.2bps, the highest since August 2012 , and the 1M EONIA swap traded just 3bps below the refi earlier today. And secondly, in PDF Document Danske Bank posts Despite a dovish ECB and a cut by the Riksbank, long-end rates have moved slightly higher in both Europe and Sweden

Mike Mish Shedlock writes Greece will default in May without another bailout or change in terms. The major point of the Greek primary current account surplus is that Greece now obtains as much in tax revenues as it needs to finance current debt (not counting interest and debt repayments to the Troika). If Greece can remain in a state of surplus, it can tell the Troika to go to hell, declare the bailout debt null and void, and shed its onerous debt burden. I suggest Greece should do just that.

The Greek Reporter posts SYRIZA Killing New Democracy, PASOK in Attica, a critical Athens region of Greece. SYRIZA leader Alexis Tsipras, who opposes the austerity measures and said his party wouldn’t repay the $325 billion in loans granted by the Troika  has predicted the Leftists will come to power. He has promised a return to Utopia by restoring pay, cutting taxes, returning pensions to their previous level and no public worker firings as demanded by the Troika. He didn’t say how he would do it without the loans or if Greece continues to be locked out of the markets.

To understand the economic situation in Greece, it is critical to do a rewind in time to May 30, 2013, as it was at this time that the Troika saved Greece from default by providing it with yet another bailout, which Jean-Pierre Abboud of Economic Updates describes as a Mini Marshall German Plan.

Greece is going to default; and furthermore Greece is going to default within the EU. Its default is likely to be the genesis event of the formation of a One Euro Government, that is a Euroland Super State. There will be no escaping for the Greeks as it has been God’s plan from eternity past to bind those in southern Europe, together with the Germans, as well as all those in northern Europe, in a regional gulag of economic fascism, 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.

Political capital will grease the wheels of the economy. Sovereign nation states will be replaced by sovereign leaders and sovereign institutions, such as the ECB, which will work in regionalism to produce Daniel’s Two Foot and Ten Toed Kingdom presented in Daniel 2:25-45, with its ten toes, that is ten regions, of iron dikat and clay totalitarian collectivism.

In the paradigm and age of authoritarianism, regionalism replaces liberalism’s creditism, corporatism and globalism, as the singular dynamo of economic activity. Regional economic and tracking blocs replace the global economic paradigm of nation state trade, as investment capital is restricted by capital controls, and is flat out replaced by political capital, where leaders meet in summits to renounce national sovereignty and announce regional pooled sovereignty, to establish regional security, stability and sustainability, as foretold in bible prophecy of Revelation 13:1-4.

This is why one should dollar cost average into gold bullion and a very limited amount of silver bullion for bartering, and take physical possession of these and trade a portion of them in Internet trading vaults such as Bullion Vault and Gold is Money.

Gold began rising in value on January 1, 2014; through investment demand, it is being established as the sovereign currency, and storehouse of investment wealth, and is being established as the only form of “money good” anywhere in the world.

Under liberalism, utility has been produced almost entirely by capital; now under authoritarianism utility is produced by debt servitude. The New Europe will see a new power structure of public private  partnerships, where nannycrats oversee credit, economic production, as well as human, industrial, commercial, and natural resources.

Under authoritarianism, economic fascism is the way of life, as the structural reforms of monetary cardinals and the austerity measures of budget commissioners replace liberalism’s investors choice, establishing diktat to enforce the deft serf’s debt servitude.

Bible prophecy of Revelation 13:1-4, Revelation 17:12, Daniel 2:25-45, and Daniel 7:7, foretells that after a soon coming Financial Armageddon, that is a credit collapse and global banking breakdown, manifesting as Complete Systemic Insolvency, as Ty Andros writes in Safehaven, the diktat money system will replace the fiat money system, where nannycrats rule in policies of regional governance and in schemes of totalitarian collectivism, where economic life is centered around the debt serf, and debt servitude is the way of life.

Economic fascism will replace all current economic systems, such as capitalism, European socialism, Greek socialism, and Chinese Communism, and clientelism, as nannycrats will be the legislators of economic value, as well as the legislators that shape one’s means and one’s ends.

The libertarian hope for a free society, as presented by Robert Wenzel of Economic Policy Journal, and for a free market money system, built upon something of sound value, whether it be gold or hazelnuts, or whatever, is a wild dream of people who perceive themselves to be sovereign individuals; such things do not exist, and never will exist, as there only exists a Sovereign Lord God, Ephesians 3:1-21, and 2 Corinthians 5:17-18, who has appointed all things, and determined all things from eternity past, and who does not base his decisions upon any meritocracy, but rather upon divine mercy, as presented in the doctrine of the election of grace.

Through dispensation, that is the administration of all things economic and political, a concept presented by the Apostle Paul in Ephesians 1:10, Jesus Christ produced peak liberalism the week of January 13, 2013, to January 17, 2013, which came via currency carry trade investing, such as the Euro Yen, EUR/JPY, as well as by debt trade investing in investments such as Junk Bonds, JNK, Leveraged Buyouts, PSP, BlackRock, BX, and Distressed Investments, FAGIX.

The Apostle Paul communities in Ephesians 1:10, that the economy of God, according to His desire, is planned and purposed in Himself, to head up all things economic and political, in Christ to produce the very fullness of each age, before pivoting that age into another.

This was achieved with the perfection of liberalism on January 17, 2014, with the trade lower in Retail Stocks, XRT, Citigroup, C, World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG;  and then God pivoted the world into authoritarianism.

9) … The nature of The Great Economic Transformation is profound.

On October 23, 2013, Jesus Christ PIVOTED …..  through the ride of the First Horseman of the Apocalypse, seen in Revelation 6:1-2, beginning with bond vigilantes calling the Benchmark Interest Rate, $TNX, higher from 2.48% …..  the world from the paradigm and age of liberalism into that of authoritarianism ….. as investors deleveraged out of currency carry trade investments, such as the CEW/FXY driven Emerging Market Bonds, EMB, and the Emerging Market Local Currency Bonds, EMLC ….. and as investors derisked out of debt trade investments such as Emerging Market Financials, EUFN, Emerging Market Mining, EMMT, and Emerging Market Infrastructure, EMFN, as well as the interest rate sensitive Electric Utilities, XLU.

The Great Economic Transformation commenced the week ending January 17, 2013 ….. with investors derisking out of debt trades in Retail Stocks, XRT, and out of Citigroup, C, ….. and with investors deleveraging out of currency carry trades, such as the Euro Yen, EUR/JPY, in European Financials, EUFN, specifically the National Bank of Greece, NBG, and the nation of Greece, GREK, ….. with the result that all three major investment areas, that is World Stocks, VT, Global Financials, IXG, and Nation Investment, EFA, traded lower ….. beginning the new normal of economic deflation and economic recession.

With investors derisking out of stocks, it may be as Zero Hedge posts, It’s time for yields to correct lower. As the Fed’s stimulus program appears to have “peaked” Citi warned investors yesterday to be cautious with the Equity markets; and recent price action across the Treasury curve suggests lower yields can be seen and US 10 year yields are in danger of retesting the 2.40% area.

The Transformation is termed Great, because of its epic economic change, from the investment choice policies of democratic nation states, and credit provision monetary policies of banks … to diktat policies of regional governance, and debt servitude policies of totalitarian collectivism.

Liberalism was characterized by the economic action of the dynamos of creditism, corporatism, and globalism, which established economic inflationism.  Authoritarianism is characterized by the singular dynamo of regionalism, which establishes economic destructionism.

The Great Economic Transformation is defined as the morphing of liberalism’s investor into  authoritarianism’s debt serf. Under liberalism one was a citizen of a democratic nation state as well as an investor. Under authoritarianism, one is a resident and debt serf of a region of economic goverance and totalitarian collectivism.

The Great Economic Transformation was produced in two parts, first the Rider on the White Horse, presented in Revelation 6:1-2, enabled the bond vigilantes to call the Benchmark Interest Rate, $TNX, higher from 2.48%, on October 23, 2013, thus destroying fiat money; and second, the same, stirred up investment fear terminating investment greed, causing derisking out of Retail Stocks, XRT,  Citigroup, C, World Stocks, VT, Nation Investment, EFA, and Global Financials, on January 17, 2014, thus destroying fiat wealth.

Liberalism was a life experience in fiat money and fiat wealth. Authoritarianism is a death experience in diktat money and poverty. These experiences come out of the dispensation of Jesus Christ as He completes and perfects ever age, epoch, era and time period, as presented by the Apostle Paul in Ephesians 1:10.

The Financial Crisis of 2008 is likened to a fatal automobile crash that killed all the occupants; the global economy was regenerated by the monetary policy of the Alan Greenspan Put of the Creature from Jekyll Island, and the democratic nation states policy of investment choice. The investor became the focus of the economic life, which was regenerated by Ben Bernanke in providing QE1, through trading out “money good” US Treasuries, for distressed investments of all types, as well as through ongoing currency swaps, to support failing currencies world wide to provide dollar liquidity to assure ongoing fiat asset investing.  Economic growth, that is economic development, was largely the outcome of investment activity.

A result of the banker regime’s monetary policy was the tremendous growth of Excess Reserves residing at the US Fed; these will not be reclaimed by the banks; they are captive investment of the US Fed, and thus cannot be and will not be used in any inflationary way. As short term interest rates rise, the value of US Short Term, that is 1 to 3 Year US Treasuries, SHY, will fall in value causing money market funds, MMF, to lose their constant one dollar value, increasing system risk. This will be the genesis factor for unifying all banks everywhere in the government, and these will be known as the government banks or “gov banks” for short; this is especially the case in the EU, where the sovereign bank link is so strong, that Eurozone nation states and their banks, are already essentially one.

Macronomics posts The Sleepwalkers The recent surge of the EONIA and Euribor, seems to point to some additional concerns when it comes to credit supply in the Euro area as shown in this Bloomberg graph highlighting the rise of the EONIA index and Euribor: “The decline in excess liquidity in the euro region, driven by a decision by southern European banks to repay LTRO cash early, is raising key short-term interest rates, threatening the supply and cost of credit to Europe’s struggling small- and medium-sized companies. A near doubling of one-month Euribor and EONIA since late November poses a growing threat, even though the ECB has pledged to do whatever necessary, including further rate cuts, to defend the euro zone’s recovery.” – source Bloomberg. And Macronomics concludes Let’s hope Mario Draghi is not sleepwalking towards the deflationary slippery slope.

Marc to Market posts Both China and the euro area are currently experiencing liquidity squeezes. In part, what is happening is the decline in excess liquidity in the euro area. It was the excess liquidity that kept the EONIA near the floor of the ECB’s rate corridor

Out of both a soon coming solvency crisis, and liquidity crisis, the Eurozone’s insolvent financial institutions, and their insolvent nations, will all by nannycrat mandate, be unified in a One Euro Government, that is a European Superstate, which will be the defining example of One, that is One People, One Government, One Fiscal Bond, One Banking Union, and One Economy, as the beast regime of Revelation 13:1-4, unifies all, with its rule of diktat of nannycrats in regional governance and script of totalitarian collectivism, where economic life is centered around the debt serf and debt servitude. All those living in Euroland will be One; there will be no monetary freedom for anyone; there will only be debt servitude for all. The new power structure consists of public private  partnerships, where nannycrats oversee credit, economic production, as well as human, industrial, commercial, and natural resources.

In response to Austrian economists, I respond that there is no “human action”, and there are no “unintended consequences” anywhere, as Jesus Christ, according to the Apostle Paul in Ephesians 1:10, has been, is now, and will forever be, in active active administration of every age, maturing it, and completing it, and overseeing all economic and political activity therein, unto its perfection.

Glenn Jacobs, who wrestles as Kane, posts in Lew Rockwell Libertarianism is based on the idea that individuals own their bodies and their lives. Building upon the ideas of John Locke and others, libertarian property theory states that individuals have a natural right to life, liberty, and property.

I respond that Christianity presents the concept that Jesus Christ owns the believer’s body and life; and dispensation economics of Ephesians 1:10, presents that that one’s economic life experience comes out of Him, and that He on January 17, 2014, provided the beast regime of Revelation 13:1-4, the constitution of its rule in regional economic fascism, where regional property rights of nannycrats collectivise all personal property, to the point where all of liberalism’s fiat money and fiat wealth experience will ultimately be utterly pulverized, as is seen in Daniel 7:7; such be the economics of Jesus Christ as He completes and perfects authoritarianism, both as a paradigm and an age.

And in response to Timothy Taylor’s post The moral significance of economic life: Aristotle vs. Locke, I relate that moral reasoning comes out of a sound understanding New Testament doctrine, of which Witness Lee and John Macarthur are heralds. All economic activity comes through the person of Jesus Christ. He is always establishing the right order of things. The moral significance of economic life comes from the presentation of the Apostle Paul in Ephesians 1:10, that Jesus Christ is continually in active oversight of all economic and political things, and that beginning with the destruction of fiat money on October 23, 2013, and the failure of fiat wealth on January 17, 2014, is bringing forth the beast regime of regional governance to rule in every one of the world’s ten regions and to occupy in all of mankind’s seven institutions, so as to reveal His person and His Kingdom, and that He is dispensing himself to provide ethical economic experience in the elect, as they keep His commandments, and shrink not from His name, that is His presence and authority, as communicated in Revelation 3:8. The constitution of human experience is found in the person of Jesus Christ, specifically in Grace and Truth, where one manifests faithful to the Word of God, which is the only right there is.

Perhaps, one might refer to The Dispensation Economics Manifest for a christian economics, ongoing economic way of thinking.

As for me, anticipation of The Great Economic Transformation is quite profound.  I’ve cut a number of things from my budget. I know the “all gone experience”.  Gone is the fitness club membership, the buss pass, the television subscription, the internet subscription, and the dental insurance; they are “all gone”.

Perhaps for encouragement one might read the Blessed Economist’s post Whose Shoulder.

And perhaps for encouragement one might read From Living To Him, A Brief Overview of the Economy of God (Part II) — Major Steps of Christ in God’s Economy In a previous post we saw that God has a divine arrangement, an economy, to dispense Christ with His unsearchable riches into His believer.

Given that the world is pivoting into the age of authoritarianism, for ongoing credit and economic insight, one might consider subscribing to Distressed Debt Investing.

Currency Traders Call The Japanese Yen Higher And Other Currencies Lower, Unwinding Carry Trade Investments Worldwide … There Is Only One Sovereignty … Through Deutungshoheit, Germany Will Rise To Rule First The Eurozone, And Then The World

January 14, 2014

Dispensation economics news for Monday January 14, 2014

This post is available in Google Documents form here

On Monday, January 13, 2014, The Fear Gauge, Volatility, ^VIX, TVIX, VIXY, VIXM, XVZ, traded higher as currency traders called the Japanese Yen, FXY, higher to a four week high, and a number of other currencies lower, unwinding carry trade investments worldwide, with the result that stocks cratered the most in four months, pivoting the financial market from a bull market to a bear market with the retail stocks leading the way lower.

These included the British Pound Sterling, GBP/JPY, carry trades, as the British Pound Sterling, FXB, sold off strongly, causing strong derisking out of the UK Stocks, EWU, such as BTI, PUK, BP, WPPGY, DLPH, SNN, VOD. These also included the Euro Yen, EUR/JPY, carry trades, in the Eurozone Stocks, EZU, such as COV, IR, CRH, FLTX, ACN.

Investors derisked out of Dollar carry trades as well, causing disinvestment out of the US Stocks, VTI, US Small Caps, IWM, US Infrastructure, PKB, and US Refiners, VLO, MPC, PSX, HFC, and also Cable TV Companies, LVNTA, DISH, CHTR, SATS, CMCSA, DTV.

US Infrastructure Stocks, PKB, led by Specialty Retailer,  TSCO,  Business Services,  ADS, CTAS, CATM, Energy Companies, VLO, COP, SE, Industrial Companies, DXPE, ETN, ITW, FLS, AME, HON, FLT, ROK, CSL, SNA, Building Supply Companies, MAS, USG, EXP, AAON, PGTI, AOS, APOG, Chemical Companies, GRA, FMC, PPG, Appliance Manufacturers, LII, WHR, Industrial Textile Manufacturer, MHK, Housewares Manufacturer NWL, and Home Improvement Retailer, HD.

India Infrastructure, INXX, Emerging Market Infrastructure, EMIF, and India Small Caps, SMIN, led Emerging Markets, lower, on debt deflation as Market Local Currency Bonds, EMLC, traded lower.

World Stocks, VT, traded lower; Investment Areas and Sectors trading lower included:

1) … Risk Investing, TAN, RZG, PBS, PSCI, FPX, was led lower by Small Cap Growth Stocks, such as NNBR, and DXPE.

2) … Consumer Spending Investing, was led lower by Retailers, XRT, PNQI, IYC, PBJ, PSCC, PSCD, such as  Apparel Retailers, GPS, Specialty Retailer, KORS, Discount Retailer, DG, Sporting Goods Retailer, DKS, Home Furnishing Store, BBBY, Drug Store, RAD, Department Store, M, and Specialty Eatery, SBUX.

3) … Global Growth and Trade investing, FXR, was led lower by Industrial Producers, such as MMM, DOW, EMR, GE, and Transport Providers, XTN, led lower by Airlines, such as DAL, as well as Semiconductors, SOXX, such as MU.

4) .. Global Spending Investing, was led lower by US Infrastructure PKB, IGV, PSCC, SOCL, PSCD, such as FB.

Of note, Credit Providers such as MA, and Leveraged Buyouts, PSP, such as DLPH traded lower.

And Microsoft, MSFT,  CTSH,  CA, ADP, and DOX, led Business Software and Services, lower.

Yield Bearing Sectors trading lower included Chinese Real Estate, TAO, Dividend Bearing Stocks, DTN, Global Telecom, IST, such as S,  VOD,  VZ,  NOK, and Utilities, XLU.

Energy sectors traded lower; these included Energy, XLE, such as Exxon Mobil, XOM, Energy Production, XOP, Small Cap Energy, PSCE, and Energy Service, OIH.

The National Bank of Greece, NBG, led the European Financials, EUFN, and the Global Financials, IXG, lower; Financial Sectors trading lower included, Asset Managers, such as BLK, Regional Banks, KRE, such as SNV,  and RF, The Too Big To Fail Banks, RWW, such as BAC, Chinese Financial, CHIX, Investment Bankers, KCE, such as JPMorgan, JPM, and Stockbrokers, IAI.

Nation Investment, EFA, traded lower; Nations trading lower included Greece, GREK, Italy, EWI, Turkey, TUR, China, YAO, China Small Caps, ECNS, Russia, RSX, Russia Small Caps, ERUS, The UK, EWU.

Although Aggregate Credit, AGG, comprised of credit instruments such as Mortgage Backed Bonds, MBB, traded higher, the debt trade, consisting of Junk Bonds, JNK, and Distressed Investments, FAGIX, like those taken in by the US Federal Reserve in exchange for “money good” US Treasuries under QE 1, and were placed into Excess Reserves to restart the global economic system after the 2008 Financial Crisis traded lower in value.  Reuters reports Fannie Mae begins marketing second risk-sharing MBS

The Steepner ETF, STPP, traded lower approaching support, on a flattening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX. This companion to the rising Benchmark Interest Rate, $TNX, has been a significant part of destroying Credit Investments.

The continuing trade lower in Junk Bonds relative to Corporate Bonds, JNK: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%, on December 2, 2013. 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, JNK, falling faster than Corporate Bonds, LQD, investors are derisking out of the stocks that have risen the most under QEternity. Derisking and deleveraging is the genesis of Risk-off, OFF, investing, which commenced January 2, 2014. Risk appetite has finally turned decisively to risk avoidance.

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, such as Small Cap Pure Growth Stocks, RZG.  as well as OTC Stocks, PWO. Investors are now derisking out of these.

Call Write Bonds, CWB, traded lower, confirming that the world pivoted from a world wide bull stock market to a  global bear stock market on January 2, 2014, when World Stock,VT, traded strongly lower, as a follow through to the failure of fiat money, defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, on October 23, 2013, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher for 2.48%, as investors feared that the monetary policies and economic policies of the world central banks, crossed the rubicon of sound monetary policy and made “money good” investments, such as The BRICS, EEB, the Emerging Markets, EEM, Emerging Market Infrastructure, EMIF, Global Real Estate, DRW, and  Global Miners, PICK, bad, as is seen in combined Yahoo Finance Chart.

The failure of fiat wealth is quite stark; it is seen in the chart of World Stocks, VT, relative to Aggregate Credit, AGG, that is VT:AGG, trading lower. Even more striking is the failure of Emerging Market Infrastructure, EMIF, on October 23, 2013, and US Infrastructure, PKB, today January 13, 2013, as the Benchmark Interest Rate, ^TNX, that is the cost of US Treasury Debt, TLT, as the Means of Economic Inflationism, has pivoted, on the failure of trust in the monetary policies and economic policies of the Creature from Jekyll Island, and has become the Means of Economic Destructionism establishing economic deflation and economic recession, terminating economic inflation and economic growth. The Australian Associated Press writes Deflation risk remains in EU periphery. And The Economist posts On the road to double-dip recession or deflation? And ZH posts Greek deflation continues for 10th straight month.

Martin T of Macronomy posts Credit – Third time’s a charm‏ Credit conditions in Europe have yet to improve, as bank credit to companies and households in the euro area has shrank for the 19th month in November even after the ECB rates cut in 2013 while euro inflation has been below the 2% target for the last 11 months. We have argued that improving credit conditions and severing the link between banks and sovereigns would amount to “squaring the circle“. European Banking Union or not, we do not see it happening. Credit dynamic is based on Growth. No growth or weak growth can lead to defaults and asset deflation which is what we are seeing in Europe and what a 0.8% inflation rate is telling you. It is still the “D” world (Deflation – Deleveraging). As illustrated by Bank of America Merrill Lynch’s graph from their note from the 6th of January entitled “The mixed blessings of better markets”, we have yet to see any meaningful loan growth in the euro area and with the upcoming AQR in 2014 with continued deleveraging, don’t expect improvements anytime soon as is seen in Chart 9

And when it comes to the deflationary trajectory and continued deleveraging pressure the evolution of nonperforming loans in peripheral countries are clearly indicate of ECB liabilities having to depreciate further. The graph below from the previously quoted Bank of America Merrill Lynch note clearly underlines the issues faced by the ECB, which cannot sustain both the demand for sovereign government bonds and credit availability for the private sector, something will have to give unless Mario Draghi comes up with new “unconventional” tricks in 2014 as is seen in Exhibit 2.

“That largest pool of problem credit is in Spain, where there is as yet no sign of NPLs slowing up in Spain: the last three months saw a €12.2 billion rise in system NPLs, compared with €11.6bn in the prior quarter”, source Bank of America Merrill Lynch.

In relation to government bonds holdings, as we posited in our last 2013 conversation, it is after all, all about the carry which remains attractive for peripheral banks which have been soaking up on their domestic bonds at a rapid pace for the last couple of years. Third time’s a charm as well when it comes to the carry trade. The European bond picture, some convergence as of late, with Italy and Spanish continuing to perform and providing carry and earnings to their respective financial institutions.

As we posited in our conversation “Misstra Know-it-all“: “By suppressing interest rates through ZIRP, the Fed has allowed risks to be “mis-priced” leading to global aggressive “mis-allocation” of capital in the search for returns.” In terms of the “dash for trash”, it can be illustrated we think by looking at the performance of Small-Cap, Utility Stocks versus the S&P 500 since December 2012 .

What investors fail to assess is the growing global deflationary risk which, we agree with CLSA Strategist Russell Napier, is significant: “Investors are cheering the direct impact of QE on their equity valuations, but ignoring its failure to produce sufficient nominal-GDP growth to reduce debt. In a market where such bad news has been seen as good news (as it leads to more QE), the reality of QE’s failure will become bad news as we head towards deflation ….. The failure of monetary policy to defeat deflation is about to become apparent, with dire consequences for equity prices”. – CLSA Strategist, Russell Napier

Direxion 300% Bear Market ETFs, such as YANG, traded higher; and Proshares 200% Bear Market ETFs, such as SQQQ, traded higher. The Inverse Market Vane ETFs, such as HDGE, traded higher.

Gold, GLD, and Silver, SLV, traded higher reflecting the establishment of the investment demand for gold on the failure of both fiat money, and fiat wealth; this being seen in the chart of World Stock, VT, relative to Gold, GLD, that is VT:AGG, trading lower in value.  Investors are selling out of the S&P 500, SPY, stocks, and their PE of 16, which Value Walk relates is truly high by historical standard, and are purchasing Gold Mining Stocks, GDX, with PE of 26, and Barrick Gold, ABX, with no PE.

The failure of the seigniorage of liberalism’s Milton Friedman Free To Choose Floating Currency System, and Democratic Nation State Banker Regime is seen in the ratio of Nation Investment, EFA, relative to World Treasury Bonds, BWX, EFA:BWX, trading lower, and as I recently wrote is introducing a deflationary bust, the likes of which the world has never seen or ever will see again, as the very foundations of the earth will be wrested from natural forces upon His Advent.

Under liberalism, investors followed after Ben Bernake and his QEs, heavily purchasing US Stocks, VTI, Japanese Stocks, NKY, Chinese Stocks, YAO, Asia Stocks, EPP, and Eurozone Stocks, EZU. as credit investors sought safe experience in Bonds, BOND, in particular US Treasury Notes, TLT, and Mortgage Backed Bonds, MBB, up until May 1, 2013, as well as October 23, 2013. The underlying trust in Credit, AGG, presented a riskless trade for equity investors. Now investors are derisking out of equities, as they no longer trust in the Creature from Jekyll Island to secure sound investment return.

In early September 2013, the US Dollar, $USD, UUP, traded lower in value from 82.50 to close today January 13, 2014 at 80.60. It’s reasonable to believe that as investors further derisk out of US Stocks, VTI, that the US Dollar will trade lower in value, bringing out the failure of the US Dollar Hegemonic Empire, seen together with the British Empire, in Daniel’s Statue of Empire, Daniel 2:25-45, as the two iron legs; and which now introduces the last day’s Two Feet and Ten Toed Empire. This Monster  will eventually utterly destroy all of liberalism’s wealth, as seen in Daniel 7:7.  With the trade lower in the US Dollar, it is reasonable that there will be a rally in the price of Spot Gold, $GOLD, from $1,250, which has risen 3.5% so far in January 2014, as investors seek the truly risk free asset.

The Arnold King post of Ben Bernanke’s Valedictory, highlights the reasoning of the Fed Chairman in providing QE. The money printing operations of the The US Fed since 2008 has led to a great swell in the value of checking and savings accounts. Now with the failure of both fiat money, that is AGG, coupled with Major World Currencies, DBV, and Emerging Market Currencies, CEW, and fiat wealth, that is World Stocks, VT, on the bond vigilantes calling the Interest Rate on the US Ten Year Note, $TNX, higher, from 2.48%, on October 23, 2013, we see the beginning of the destruction of M2 Money, as the Fed reports that M2 Money Supply, has decreased from to 10,990 on 12-30-2013. Liberalism featured inflationism; but the rout of the bond vigilantes, has pivoted the world out of the paradigm and age of liberalism into that of authoritarianism which features destructionism.

The Means of Economic Destructionism is the ongoing rise in the cost of money, that is the Interest Rate on The US Ten Year Note, ^TNX. Through the monetary authority of the US Federal Reserve and its interventionism, liberalism featured the safety of investing under the banker and democratic nation state policies of investment choice and credit creation. The trade lower in US Stocks, VTI, Retail Stocks, XRT, Global Financials, IXG, The Too Big To Fail Banks, RWW, and Regional Banks, KRE, as well as the US Dollar, $USD,  UUP, to 80.60, on January 13, 2014, established the end of the sovereignty and the seigniorage of the US Dollar Hegemonic Empire, and birthed that of the beast regime of regional governance and totalitarian collectivism; it’s sovereignty is Deutungshoheit in nature. Authoritarianism features the security, stability and sustainability of the diktat of nannycrats, not bankers, in regional governance, and in the debt servitude of totalitarian collectivism.

The terminal phase of liberalism, came with Ben Bernanke’s QEs, and defined the investor as the centerpiece of liberalism as both a paradigm and age. With the trade lower in  Retail Stocks, XRT, and Global Financials, IXG, on January 13, 2014, peak liberalism was established, and the debt serf emerged as the centerpiece of authoritarianism as both a paradigm and age.

Under liberalism, monetary transmission of fiat money went to the investor, this is seen in The Economic Collapse Blog post The number of working age Americans without a job has risen by almost 10 million under Obama. And in The LA Times post US wealth gap grew during recession, Stanford report finds. And in The SCPI report National Report Card on Poverty and Inequality.

The WSJ reports Thai protesters turn focus to Thailand Stock Exchange. After turning central Bangkok into a flag-waving sea of protest Monday, antigovernment activists now say they are preparing to take their campaign to the next level by seizing Thailand’s stock exchange. The protesters’ drive to force Prime Minister Yingluck Shinawatra from office and eliminate the influence of her brother, billionaire former leader Thaksin Shinawatra, has been marked by a series of escalating protests, each more ambitious than the last.

There is only one sovereignty, and it provides only one life experience. The German word Deutungshoheit is defined as interpretational sovereignty and connotes supremacy in all things, the result being German economic, banking, credit, and military supremacy, over all of the Eurozone.

German linguist Thorsten Pattberg relates Deutungshoheit is a German word meaning “having the sovereignty over the definition of thought,” sometimes also called “the prerogative of final explanation.”

Economic supremacy. Germany is an export powerhouse, something attained by striving to make the best of products, by keeping wage increases low, and by making products people want, which has generated a current account surplus for years.

Banking supremacy. Diktat money came into being with Eurozone banking supervision beginning, on November 15, 2013, with the European Parliament announcing ECB banking supervision, coming from Frankfurt Germany. Out of soon coming global credit bust and worldwide financial system breakdown, The European Financials, EUFN, such as Germany’s, DB, Spain’s Banco Santander, SAN, Greece’s, NBG, and Ireland’s IRE, will be integrated into and operate as a One Euro Bank, operated by the ECB in Frankfurt, where all Eurozone lending as well as all Eurozone economic activity will be supervised through public private partnerships 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.

Out of rising interest rates globally, not only will Eurozone Banks be integrated into a Regional Super State, but all banks everywhere will be integrated into the government. No where is this more clear than in the US, as Mike Mish Shedlock asks What’s the Fed going to do now? Accumulate all the notes and bonds? While buying less of them? The math doesn’t quite work does it? What is the Fed’s Exit Strategy? The Fed really doesn’t have one, and that is the reason for all this meaningless communication from various Fed governors (frequently in contradiction with each other).

The US Federal Reserve must act, and will act to integrate the Too Big To Fail Banks, RWW, and the Regional Banks, KRE, into the government. This captures the Excess Reserves, and unifies all M2 Money, that is checking accounts, savings accounts, and money market accounts, into a cohesive risk bearing and burden bearing amalgam, that will arise as the Benchmark Interest Rate, ^TNX, soars above 3.0%, breaking the buck, that is the constant one-dollar value of the money market funds, MMF.

Currently the value of The 1 to 3 Year US Treasuries, SHY,  stands at 84.42; but as the bond vigilantes continue calling the 10 Year Notes, TLT, lower, then the Short Term Treasuries,  SHY, will fall below 84.10, and will be a factor in contributing to Financial Apocalypse, as presented in Revelation 13:3-4. The only remedy will be integration of all banks everywhere into the government to provide economic security, stability and sustainability.

Credit supremacy. Yahoo Finance reports that from July 5, 2013, to January 2, 2014, the German Bund, BUND, has risen from 97.74 to 105.66, pulling up the value of EU Credit, EU, as is seen in ongoing Yahoo Finance chart of Bund and EU.

Military supremacy. Reuters reports NATO builds $1 Billion HQ In Brussels as allies cut military spending; its feet enable the monster to devour all in its territory. Sven Heymann of WSWS reports NATO reform strengthens Germany’s role. Though coalition talks between the Christian Democratic Union (CDU) and Social Democratic Party (SPD) have only just begun, Defence Minister Thomas de Maizière has already presented a new plan for NATO. It envisages Germany assuming a leading role in the military alliance. Only six weeks after the federal election, it is clear that the new government will have a far more aggressive foreign policy, seeking to lead the country back into the ranks of the major military powers. Open Europe reports News Publisher Die Welt quoting German Interior Minister and former Defence Minister Thomas de Maizière as saying, “Germany doesn’t need lectures from anybody in Europe over the nature and scope of our international [military] missions, this also applies to France and the UK”.

Eurozone-wide fiscal rule commenced, from Brussels on November 15, 2013 as The Telegraph reports The EU uses new budget powers to demand more austerity In Italy And Spain. The EU Commission exercised historic new EU powers allowing it to revise national budgets for the first time. The beast regime of regional governance and totalitarian collectivism, with its ten horns ruling in the regional governance in every one of world’s ten regional zones, and seven heads occupying in totalitarian collectivism in each of mankind’s seven institutions, presented in Revelation 13:1-4, will  rise 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; with mouth of a lion in NATO Germany led headquarters in Brussels; and camouflage of a leopard in nannycrat fiscal rule from Brussels.

Authority now longer resides in democracy; now Obrigkeit, as the Germans say, resides in beast regime’s policies of diktat in regional governance in all of the world’s ten regions, and has effect in schemes of debt servitude in totalitarian collectivism in each of the world’s seven institutions, as presented by the Apostle John in The constitution of endtime rule, Revelation 13:1-4. T

The only rule of law that exists under authoritarianism is the diktat of nannycrats, and the word, will and way, of the Sovereign, Revelation 13:5-10, and his partner, the Seignior, Revelation 13:11-18, meaning top dog banker who in minting money, takes a cut. These provide diktat money for the singular life experience of debt servitude.

Under democracy one was an investor; now under authoritarianism one is a debt serf. Obamacare is an example of diktat money. Robert Wenzel posts Video: The death cycle of health insurance. AP reports 63% of RI insurance sign-ups are for Medicaid as opposed to private plan.

Free to choose, that is investment choice, no more. Debt servitude is the new normal of economic life and economic experience, as 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, that is authority, from bankers and nation state democracies to nannycrats and regional bodies such as the ECB, to establish the sovereignty of the Beast System of Revelation 13:1-4, with its policies of diktat in regional governance, and schemes of debt servitude in totalitarian collectivism, as a replacement for the libertarian despised Creature from Jekyll Island, that is the democratic nation state and banker regime. Liberalism featured money manager capitalism. Authoritarianism features regional economic fascism.

Regional interventions will replace nation state interventions. With the ride of the First Horseman of the Apocalypse, Revelation 6:1-2, the world PIVOTED from the paradigm and age of liberalism, to that of authoritarianism, on October 23, 2013, as the bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, causing the death of fiat money. Fiat money died on October 23, 2013, as the bond vigilantes called the Benchmark Rate, $TNX, higher from 2.48%. Regional Nannycrats will declare regional property rights superior to personal property rights.

The periphery-to-core dynamic of funds flowing into US Stocks, VTI, UK Stocks, EWU, and Eurozone Stocks, EZU, is over, through finished and done. On Monday, January 13, 2014, fiat wealth died as greed turned to fear; specifically fear that the economic policies and monetary policies of the world central banks have passed the rubicon of sound monetary policy and have made “money good” investments bad.  Risk-on investing, ON, has turned to Risk-off investing, OFF. Investment fear has turned the two spigots of investment liquidity completely off; these being debt trade investing, and currency carry trade investing, thus depowering liberalism’s dynamos of economic activity: creditism, corporatism, and globalism.

Have you heard and heeded the call? It is a clarion call to invest in and take possession of gold bullion, as this and diktat are the only forms of sustainable wealth in the paradigm and age of authoritarianism.

A One Euro Government, that is a EU Superstate, will serve as a template and model for coordination of economic life in all of the other world regions, where eventually there will be a king ruling in each regional zone, as presented in bible prophecy of Revelation 17:12. The PIGS, that is Portugal, Italy, Greece, and Spain, will exist as hollow moons about planet Germany. While the Portuguese, Italians, Greeks, and Spaniards, cannot be Germans, all will be one living a network of German led nannycrat economic, fiscal and banking rule, and nestled together in a regional gulag of debt servitude, when leaders meet in summits in reaction to a global credit bust and worldwide financial system breakdown to renounce national sovereignty and announce German Deutungshoheit of Euroland.

Regionalism is the singular dynamo of economic activity under authoritarianism, replacing liberalism’s three dynamos of creditism, corporatism and globalism. Monetary transmission under authoritarianism will become quite effective for a number of people, as bible prophecy reveals “they worshiped and followed after the beast, saying who can make war against it”.

Aviation Week posts Europe takes steps towards defense cooperation. During the summit, which marks the European Council’s first defense meeting in five years, member states agreed to a “strategic reassessment” in mid-2015 to measure progress on all four defense-capability areas promoted by the European Defense Agency (EDA) as ripe for collaboration.

“These are projects on which we can work now,” EU President Herman Van Rompuy said in remarks following the meeting. Under the auspices of the EDA, in November France, Germany, Greece, Italy, the Netherlands, Poland and Spain established a MALE UAV user community to exchange information and best practices. Under a separate EDA initiative, eight European countries including have pooled €50 million collectively to research integration of UAVs into European airspace.

In the area of satellite communications, five countries are joining to form a users group with the goal of developing a roadmap for preparing the next-generation of European communications satellites.

Germany, Spain, France, Italy and U.K. currently operate their own military communications satellite systems, a number of which are slated to reach the end of their service life in the next few years.

“A roadmap has been proposed on preparing the next generation of satellite communications, and for closer cooperation between the member states, but we’re not there at the moment, where we have defined the requirements and the targets,” the Commission aide said.

In the area of air-to-air refueling, the council welcomed progress achieved to date, which last year saw nine EU countries plus Norway sign a letter of intent for considering pooled acquisition of a tanker aircraft. Led by the Netherlands, the new aircraft, possibly a Multirole Tanker Transport based on the Airbus A330, would be available for European users in 2020, the aide said.

Open Europe reports 95 Tory MPs write to Cameron asking him to consider allowing UK parliament right to veto EU law  … Hague: Unilateral opt-out for national parliaments would dismantle single market.   Sunday Telegraph Sunday Telegraph: Tory MPs’ letter Sunday Telegraph: Grayling FT Times Telegraph Mail Guardian In a letter to Prime Minister David Cameron in the Sunday Telegraph, 95 Tory MPs urge him to “to consider adopting the ideas put forward by the European Scrutiny Committee which would re-establish a national veto over current and future EU laws and enable Parliament to disapply EU legislation, where it is in our vital national interests to do so.”

Also in the Sunday Telegraph, Justice Secretary Chris Grayling argued that “Britain needs a completely new relationship with the EU, sorting out issues like benefits, migration and employment laws, or to let its people choose whether to leave”, but speaking on the BBC’s Sunday Politics, he described the parliamentary veto proposal as “not realistic”. Speaking on Sky’s Murnaghan show, Foreign Secretary William Hague argued that if national parliaments had a veto right then “the European single market wouldn’t work”.

Mats Persson is quoted in Norwegian main daily Aftenposten arguing that Germany and the UK have the potential to agree on many EU policies once the posturing is out of the way.

Open Europe’s Stephen Booth was quoted in the Sunday Telegraph Sun as saying that “The European Parliament’s travelling circus represents all that is wrong about the EU in the eyes of electorates across Europe: the unnecessary waste and the political stalemate that perpetuates it. With new European elections this year, now is the time for EU leaders to put an end to this PR disaster.” Stephen is also quoted in the Sun.

Investors Business Daily posts Job gains is worst in 3 Years. Official jobless falls to 6.7%, but largely due to big labor force exodus. Employers added just 74, 000 jobe inDecembe, hd Labor Department said, the weakest hiring in nearly three years halting a string of positive reports about the labor market.  Economist Keith Hall said the labor force participation tumble is “screamingly bad news”.

In end time prophecy Jesus communicated that love will grow cold, the reason being that He who restrains The Spirit of Iniquity is removed, as Let Us Reason Ministries, communicates in commentary on 2 Thessalonians 2:7. There be many like myself, who are bones to chew on, by the psychopaths.

Wayne Jackson writes in Christian Courier When love grows cold: A church profile.  In his letter to the Ephesians, Paul, guided by the Spirit of God, had focused on love, perhaps sensing a weakness that needed strengthening.

The noun form for “love” (agape), and the cognate verbal form (agapao) are collectively found nineteen times in Ephesians—approximately one-sixth of the apostle’s employment of these words in all his letters combined (Hoehner, 614).

As a result of this waning love, the Ephesian family had “fallen” (2:5a), i.e., experienced a loss of status before the Lord (Danker et al. 2000, 815). The perfect tense form suggests the state had become fixed. Concrete hardens. It is possible for love to grow “cold” (Matthew 24:12).

They thus were charged to “repent and do the first works,” i.e., the zealous works that characterized them initially. If they refused to respond to the Savior’s plea, the Lord would “move [their] candlestick out of its place” (5b). Since the “candlestick” was the church itself (1:20b), the significance is this: they would be disowned as one of Christ’s congregations! Can Christ disfranchise a church? Indeed he can! Those who labor under the illusion that doctrinal “orthodoxy” is paramount, but attitude is irrelevant, are a universe away from spiritual reality!

It is not difficult to discern that there were forces working in the church at Ephesus that led eventually to the sad condition sketched in Revelation 2:1-7.

When love for Christ grows cold, bitter fruit inevitably follows. Not all “Ephesian” churches have passed into oblivion!

There cannot be two sovereigns. There can only be one sovereign. For the elect, there is only one sovereign, that is Christ who provide His life, as one’s life experience, which comes from knowing His word, will and way. He is the All Sufficient One. He, being the Sovereign One, provides one faith, one church, one way, and the one and only life experience, that being The Faith Of Jesus Christ, which provides a life of righteousness, which exist in sharp contrast to the life of iniquity of the fiat.

There cannot be a sovereignty in Christianity as well as sovereignty in Libertarianism, as sovereignty by definition is singular. One cannot be both a Christian and a libertarian. There is either life experience in being a bond servant in Jesus Christ, or life experience in liberty of being a sovereign individual. Either one knows life in Christ, which comes through Dispensation, Ephesians 1:10, of Grace and Truth, John 1:17, or one knows life in liberty of the sovereign individual. Either there be Christ or there be liberty. It is literacy in the Word of God that leads one out of the slavery of sin, that is doubt, into the freedom in Christ, where one knows the only right there is, that being the right to manifest as a child of God.

The Bellingham Housing authority posts by Notice and notifies by Community Voice Mail that Applications for Housing Assistance from the Bellingham Housing Authority will be open for a limited time. One may pick up an Application at specified locations and at specified times. Applications are no longer placed on a waiting list; rather 500 Applications will be drawn at random and entered into the Bellingham Housing Application System; henceforth there is no wait list or waiting period specified by the Authority.

The Bellingham Herald reports Lower pay jobs still dominate. Countywide median income lags behind the state and nation. With more than half of all jobs in the low paying retail and service industries, Whatcom County’s median household income has remained below state and national levels for the past decade according to the latest data from the US Census Bureau. National median household income dropped 3.1% from 2009 to 2012, after adjusting for inflation. Incomes have declined as the economy has recovered because low paying jobs filled the void left by the middle income jobs lost to the recession. “The vast majority of income increases in the last few years have gone to the top earners”, said Rick Larsen D-Everett, who represents Bellingham, who co-sponsored a bill that would raise the federal minimum wage to 10.10 from 7.25. In Washington State he minimum wage is 9.32.

Money Magazine, February 2014 Print Edition page 61, reports Public College Rankings. The University of North Carolina at Chapel Hill tops the list. University of Virginia takes number two spot; it has an awesome 87% graduation rate.

Bloomberg reports Covered Bond shock forces Denmark to devise Plan B for Banks

Reuters reports India’s industrial output shrinks, trade gap widens

Ron Rowland posts Recently introduced ETFS. Low Yield Bond ETFs recently launched include ICSH, and RAVI. Market Neutral ETFs recently launched include AGZD, AGND, HYZD, and HYND. Covered Call ETFs recently launched include QYLD and CEFL.

Duane and Shelly Muir of Signposts of the Times write of the new normal weather phenomena and ask Global cooling: Is an Ice Age coming?

Khaled Alashqar of Antiwar posts Gaza loses an underground lifeline. The tunnels flourished as they were free of restrictions and represented a way out of the Israeli siege on Gaza. Some studies indicate that the tunnel trade was worth one billion dollars a year. Professor Sameer Abu-Mdalla, dean of the economics faculty at Al-Azhar University in Gaza, told IPS that the total number of tunnels before 2006 was 60, but following a blockade by Israel in 2007 and the closure of border crossings, the number mushroomed to about 1,000. He said the tunnels helped meet 60 percent of Gaza’s needs for raw materials and other goods.

Worthy News post We want a United States Of Europe Top EU Official Says. Viviane Reding, vice president of the European Commission and the longest serving Brussels commissioner, has called for “a true political union” to be put on the agenda for EU elections this spring.

“We need to build a United States of Europe with the Commission as government and two chambers – the European Parliament and a “Senate” of Member States,” she said.

Mrs Reding’s vision, which is shared by many in the European institutions, would transform the EU into superstate relegating national governments and parliaments to a minor political role equivalent to that played by local councils in Britain. Under her plan, the commission would have supremacy over governments and MEPs in the European Parliament would supersede the sovereignty of MPs in the House of Commons. National leaders, meeting as the European Council, would be reduced to consultative, second chamber role similar to the House of Lords.

Nigel Farage, the leader of Ukip, said that Mrs Reding had revealed the true choice for British voters to make at polling stations. “For people in power in Brussels that is the only choice on offer, no reform just a United States of Europe. On 22 May the British people must ask themselves if they want this and vote accordingly,” he said. “I am sure people will say no to this centralist fanaticism.”

Mrs Reding’s comments illustrate the growing gulf between a Europe committed to “ever closer union” and Britain, which is pushing to reduce the EU’s powers.

Senior EU figures, such as Mrs Reding, want the European elections in May to move beyond debates over eurozone austerity by embracing a grand vision of Europe.

“This debate is moving into the decisive phase now. In a little more than four months’ time, citizens across Europe will be able to choose the Europe they want to live in,” she said.

“There is a lot at stake. The outcome of these elections will shape Europe for the years to come. That is why voting at these elections is crucial.

Kirk Wiebe writes in Antiware NSA’s preference for metadata.

A civil war erupts in Mexico. BBC reports Mexico to deploy federal forces in Michoacan conflict zone

Short Side of Long posts Interesting stock market charts! Mr Turner makes a great point here, in chart of The compound rate of stock markets rally is at historic levels, only 3.3% of the time over the last 140 years has the market gifted investors returns this great over the span of 5 years. Maybe you should read that sentence over again.

The chart In a few weeks this will be 2nd oldest bull market in 80 years, is my own and was recently posted on the blog. Nevertheless, I still think there is no harm in repeating the important point it is trying to make, long bull markets usually build excess capacity and capital misallocation (the Fed is definitely making sure of that this time around) so the up and coming bear market tends to be more serve as a major clean out occurs

This bull market market is extremely overvalued, sentiment is extremely bullish, length of the rally is overextended and therefore prices are prone to a major downside sell off

History is telling YOU to prepare for an above average possibility of another equity market crash.

The Economy Is Not About To Go Boom … The Economy Is About To Enter A Deflationary Bust …. And As A Result There Will Be Economic Experience In Diktat Money As Nannycrats Declare Diktat Policies Of Regional Governance And Establish Debt Servitude Schemes Of Totalitarian Collectivism

January 11, 2014

This article is available in Google Documents presentation here

A presentation of dispensation economics theory for the week of ending January, 10, 2014

1) … Economic growth is fueled by the supply of money, security, and the technological ability to manufacture and produce; these are no longer present; a deflationary bust will be the outcome.

Yes, thats right, the economic factors of growth are no longer present, as the bond vigilantes in calling the Interest Rate, ^TNX,  higher from 2.48%, on October 23, 2013, PIVOTED the world from the paradigm and age of  liberalism into that of authoritarianism, and as such the economic deflation is that is already underway in France, EWQ, Italy, EWI, and Greece, GKEK, will worsen, and a deflationary bust will come soon, first to the Emerging Markets, EEM, and then the rest of The World, VT.

The paradigm of liberalism supported economic growth via the dynamos of creditism (which provided a swell in the supply of money), corporatism (which provided security)  and globalism (which provided manufacturing, production and services).

Arnold King wrote nobly in EconLibOrg Corporatism is a state of being “Corporatism satisfies a desire for security. People want security of consumption, security of jobs, and security of their economic status. Corporatism replaces the decentralized competition of the market with political control over the economy. The forms of protection people obtain include occupational license restrictions, labor unions, and entitlement programs.”

On October 23, 2013, the bond vigilantes in calling the Interest Rate on the US Ten Year Note higher from 2.48%, PIVOTED, the world from the paradigm and age of liberalism, where economic inflationism operated …  into the paradigm and age of authoritarianism, which features the singular dynamo of regionalism, establishing economic destructionism.

Liberalism’s dynamos of creditism, corporatism, and globalism, are no longer present to support economic inflationism and its partner economic growth, as the bond vigilantes in calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, and now higher from 2.99%, have not only begun to destroy fiat money, that is Aggregate Credit, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, but have also begun to destroy fiat wealth, World Stocks, VT, on January 2, 2013.

The bond vigilantes in calling higher in the Benchmark Interest Rate, ^TNX, higher from 2.48%, on October 23, 2013, as well as the failure of debt trade investing and currency carry trade investing on January 2, 2013, were twin extinction events that destroyed the foundation, capstone, and centerpiece of liberalism, that being the investor; and are birthing authoritarianism’s counterpart, the debt serf.

In Prometheus Fashion, To create, one must first destroy. The prophet Daniel’s Bible prophecy of Daniel 2:25-45 foretells that the two iron legs of global hegemonic power, the UK, and the US, will collapse, and a Ten Toed Kingdom, consisting of the miry mixture of iron diktat of regional goverance and clay debt servitude of totalitarian collectivism, will emerge in the world’s ten regional zones, to replace investment choice and credit stimulus. The failure of the Milton Friedman Free To Choose floating currency regime, and the US Dollar as the world’s reserve currency, is pivoting the world out of the paradigm and age of liberalism and into that of authoritarianism.  Authoritarianism features an entirely new empire; the US is no longer in charge of economic and political matters; the Fed is dead; terminated and gone forever. Eventually, according to Bible prophecy of Revelation 17:12, ten kings will come to rule in each one of the Toes, that is in each one of the world’s ten regions.

The Means of Economic Destructionism, that is the Benchmark Interest Rate, ^TNX, rising to 2.99%, has caused investors to derisk out of debt trade investments, ie EU, and out of USDFED and EURECB, currency carry trade, investments, ie GREK, and VTI, with the result that World Stocks, VT, Nation Investment, EFA, and World Financial Institutions, IXG, are now trading lower in value.

Profit taking from unwinding debt trades, such as in Leveraged Buyouts, PSP, and in Leveraged Real Estate Blackstone, BX, and currency carry trades, such as Small Cap Pure Growth Companies, RZG, such as ROLL, JBT, MEAS, HEES, SNX, NNBR, RFIL, DXPE, and PKOH, is going to decapitalize the supply of money, dissolve security, and the destabilize the ability to manufacture.

Economic growth is now impossible; it cannot be achieved. Global economic deflation and economic recession, characterized by falling GDP, and a whole host of other economic metrics, such as credit contractions, are the tail risk of liberalism’s monetary stimulus and credit easing, which went for the most part to the investment achievers.

Tail risk is going to be a bad bitch, she is presented in Revelation 17:1-5, as the scarlet beast, full of names of blasphemy, having seven heads and ten horns, and upon her forehead a name written, Mystery, Great Babylon, the mother of the harlots, and of the abominations of the earth.

Ben Bernanke in commencing QE by trading out money good US Treasuries for the most toxic of debt, such as the distressed investments, traded by Fidelity Investments, FAGIX, and in providing Quantitative Easing, fueled liberalism’s dynamos of creditism, corporatism, and globalism; which which leveraged up risk assets, such as FXR, RZG, PBS, RZV, PSCI, FPX, PJP, XTN, and TAN, to produce liberalism’s peak moral hazard based prosperity on December 28, 2013, which will be seen in Total Credit, reported quarterly, and M2 Money, reported weekly, topping out in value.

This achievement comes with Doug Noland reporting in Safehaven.com that after the Ben Bernanke Put, and after the Mario Draghi Do Whatever it Takes Pledge of August 2012, the Fed has injected a Trillion dollars (and the BOJ providing somewhat less) of new “money” directly into overheated financial markets in a non-crisis environment.

For the year 2013, the Fed’s balance sheet ballooned 37% to surpass $4.0 TN. Bank of Japan assets surged 42% to exceed $2.0 TN. From my analytical framework, it can be described only as “a year living dangerously.” As he led the Federal Reserve deeper into the untested waters of contemporary monetary inflation, chairman Bernanke took time to proclaim Japan’s parallel inflationary policy a case of “enrich thy neighbor” (in contrast to Depression-era “beggar thy neighbor”).

As destabilized, speculative markets tend to do, they mounted an unpredictable reaction to the Trillions of new global liquidity. In most cases, global bond prices, AGG, actually declined  (yields rose).

After beginning the year at 1.76%, 10-year Treasury yields surged 124 bps to 3.00%.

EM economies generally saw inflationary pressures rise as real growth slowed markedly in the face of ongoing rapid Credit expansions. This created an unappealing environment for global investors, with the more sophisticated “hot money” heading toward the exits. Brazil’s local (real) sovereign yields surged 393 bps in 2013 to 13.10%, while some major bankruptcies took a heavy toll on Brazilian corporates. Political instability contributed to the 379 bps jump in Turkish (lira) 10-year yields, to 10.35%. Mexican yields rose 116 bps to 6.50%. Indonesia was an EM problem child, as 10-year yields surged 314 bps to 8.33%. India confronted a worsening inflation backdrop, with 10-year yields jumping 91 bps to 8.95%. Inflationary pressures also hurt Russian bonds, as 10-year sovereign yields jumped 91 bps to 7.81%.

After faltering EM bond markets fell out of favor, “periphery” European bonds (backstopped by the Draghi ECB) became a favored high-yield target for the global speculator community. Greek bond yields sank 226 bps this year (to 8.21%), with 10-year sovereign yields in Spain down 106 bps to 4.21%; Portugal down 70 bps to 5.96%; and Italy down 29 bps to 4.21%. Despite moribund economies, Spanish equities were up 21.1% in 2013 and Italian stocks gained 16.5%. I’d be curious to know the scope of leverage in European debt (and elsewhere!) financed by borrowing in or shorting the yen (“yen carry trade”).

EM currencies suffered. The Argentine peso declined 24.3%, the Indonesian rupiah 20.1%, the South African rand 19.5%, the Turkish lira 17.2%, the Brazilian real 12.3%, the India rupee 11.1%, the Chilean peso 8.6%, the Peruvian new sol 8.7%, the Colombian peso 8.4%, the Philippine peso 7.6%.

The commodities currencies were hit, with the South African rand down 19.5%, the Australian dollar 14.7%, the Brazilian real 12.3% and the Norwegian krone 9.5% and the Canadian dollar 7.3%.

EM equities for the most part also underperformed. Brazil’s Bovespa dropped 15.9% and Turkish equities were hit for 18.3%.

Surging Japanese stock prices were fueled by enormous Bank of Japan “money” printing and the resulting 17.5% yen (vs. the dollar) devaluation.

The Fed’s skittish tapering reversal put an exclamation point on five years of unprecedented market interventions and distortions.  In my now 24 years in the industry, I’ve witnessed my share of market exuberance and excess. Yet 2013 took speculation to a new level. I have argued the breadth of excess throughout U.S. equities surpassed even 1999. The S&P 500 returned (including dividends) 31.9%.

For 2013, the Fed’s $1 TN monetary inflation again countermanded normal system behavior and relationships, most notably further inflating securities and asset prices

The end of stimulus has arrived.  Liberalism’s peak wealth and peak economic growth, has not come about because of the confidence in the world central bankers, but rather just the opposite; peak wealth has come as the currency carry traders strongly sold the Japanese Yen, realizing that the world central banks’ monetary policies no longer stimulate global growth, and have crossed the rubicon of sound monetary policy, and have made “money good” investments, bad; such include Emerging Market Bonds, EMB, Municipal Bonds, MUB, Treasury Bonds, TLT, Mortgage Backed Bonds, MBB, as well as Emerging Markets, EEM, such as brazil, EWZ, EWZS, Indonesia, IDX, IDXJ, Thailand, THD, and Philippines, EPHE, as is seen in their combined ongoing Yahoo Finance Chart

Many are in denial that credit has produced a fiat asset bubble. Aki Ito of Bloomberg reports the Fed’s Fishers as saying While stocks globally have been fueled by central bank stimulus, I wouldn’t call it a bubble.  But Credit Bubble Stocks posts Latest Hussman who communicates peak wealth.

The entire topic of economic growth is an important one. Uber establishment economist Larry Summers writes in the WaPo, Strategies for sustainable growth. And Politico asks Econobrowser’s twin university economists, James Hamilton and Menzie Chinn, “Now five years after the end of the Great Recession, Is the economy about to go boom?” The establishment economists responded “Is the American economy finally going to grow rapidly? Our book, Lost Decades: The Making of America’s Debt Crisis and the Long Recovery, stressed that recovery would be long and slow, and could be hampered by such misguided policies as withdrawing fiscal stimulus too rapidly. Nonetheless, five years after the end of the Great Recession, there is finally cause for optimism. GDP and employment growth are accelerating and manufacturing is rebounding, in large part due to growing exports. With corporate profits at record levels, business fixed investment is also going to surge, especially now that uncertainty created by congressional fiscal brinksmanship appears to have been resolved. Prospects for continued growth are good, especially because the economy is finally shaking off the aftereffects of accumulated household debt. Equity markets and home values have risen, bringing real household net worth back to its pre-recession peak. This has helped clear the debt overhang that held back consumer spending and bank lending for so long.”

Bloomberg notes that according to analyst estimates, “earnings for companies in the S&P 500 will climb 9.7 percent on average this year, almost twice the rate of 2013, while sales will probably increase 3.8 percent.” Such a report would suggest ongoing economic growth. Yet Reuters reports US service sector growth slows in December.

The reality is that the economy is about to enter a deflationary bust, as the crack up boom in fiat wealth growth presents extreme systemic risk. The business cycle is now complete, and is now moving into Kondratieff Winter, as the Benchmark Interest Rate, $TNX, entered an Elliott Wave 3 Up on October 23, 2013; these are the most sweeping of all waves, they produce the greatest affect of all the waves; in this case, the destruction of economic prosperity, and introduce economic destructionism, as highlighted in Christopher Quigley’s Financial Sense article Kondratieff Waves and the Greater Depression of 2013-2020, and in David Knox Baxter Safehaven article Prepare for the Global Long Wave extinction event. Bert Dohmen of Forbes The most reliable indicator of a market top is sentiment

Authoritarianism’s singular dynamo of regionalism in already establishing regional security, regional stability, and regional sustainability; this dynamo will be active in creating in addition to rising interest rates globally will fully develop economic destructionism; this as the world endures diktat money and poverty as Ambrose Evans Pritchard of the Telegraph writes IMF paper warns of savings tax  as West’s debt hits 200-year high. Debt burdens in developed nations have become extreme by any historical measure and will require a wave of haircuts, warns IMF paper.

Fiat money is now longer at work in the economy; it was a defining characteristic of the paradigm and age of liberalism. Now in the paradigm and age of authoritarianism, diktat money is at work; it incorporates new taxes, which work through public private partnerships, to produce totalitarian collectivism. Market Sanity posts details of this relating Ron Paul on ObamaCare: It’s all a tax.

Diktat money does not and cannot support economic growth; it only serves to fuel economic deflation and economic recession; its purpose is to enforce the debt servitude of the debt serf, as the world is increasingly becomes centered around regional security, regional stability, and regional sustainability.

Liberalism was the paradigm and age of the world central banks’ policy of investment choice and credit stimulus, and investment schemes of debt trade investing and currency carry investing; these supported economic growth and employment as a byproduct of investing; the former age centered around fiat money and the investor; all to the dismay of Austrian economists and libertarians who decried democratic nation state interventionism; they were constantly whining about the Creature from Jekyll Island, as evidenced by the Ron Paul agenda to End the Fed; and they continually dream of a sound money system, where interest rates are the price of money, that is the price of debt, where liberty is the standard of economic activity for the individual, where one is paid according to meritocracy, and where markets are free from government intervention. There are three chances of these thing happening: no way, no how, and never; their vision is a delusion of the libertarian mind, as well as a mirage, on the Authoritarian Desert of the Real.

God has Point Men, those appointed from eternity past, such as David Cameron, to lead and bring liberalism to its zenith, providing debt trade investment opportunities in insurance companies, such as Prudential, PUK, and in banks, such as Lloyd’s Banking Group, LYG, and in GBP/JPY carry trade investment opportunities, in the nation of The UK, EWU, and UK Small Caps, EWUS.

The Dispensation Economics Manifest presents that authoritarianism is being established as the current paradigm and age of economic experience; and that the beast regime has full authority to implement economic policy of diktat in regional governance, and provide debt servitude schemes in totalitarian collectivism; needless to say, these do not underwrite economic growth; they underwrite worship of people seeking order out of chaos, this being presented in Revelation 13:3-4.

Only the elect know and have experience in the truth, which is defined as that which is reliable for belief or a trustworthy promise. The physician Luke wrote in the Acts of the Apostles 17:26, that God appoints the times and places in which one will live, that one would seek him out.  Further New Testament truth presented in the Apostle Paul’s Epistle to the Ephesians, is that only the elect come to believe, know, and have experience in the truth; these are fated by God, from eternity past, to have the Red Pill crammed down their throat.

This is necessary as free will, died in the garden with Adam’s sin. Adam’s doubt “nuked” choice. It was totally obliterated once and for all, that is all time and for all people. Humanity was sentenced to death; and this included the spiritual quality of free will. Man has no will; he is slave to sin, that is doubt. He being dead in Adam cannot make any conscious choice. The dead, being dead, don’t make choices. This concept came out of the Reformation, and was first developed by Martin Luther.

The truth is that economic growth was the “terminal phase” of the paradigm and age of liberalism, where according to the Apostle Paul in Ephesians 1:10, Jesus Christ acting in dispensation, that is in active administration of all things economic and political, matured and completed, the US Dollar Hegemonic Empire, to be the greatest global kick-ass, might-makes-right, empire of all time.

The Prophet Daniel’s Statue of Empires, seen in Daniel 2:25-45, presents that God has been, is now, and always will be working his eternal plans through empires. God is not concerned in the least about the economist’s concepts of economic growth  or recession, like those of Desmond Lachman, and its metrics such as employment or unemployment, and inflation or deflation, rising household income, or falling household income.  He has no interest whatsoever in the liberal’s concepts of social justice; or the Austrian economist’s concepts of economic freedom or political liberty; or the socialist’s concept of equality and fairness. In fact, Jesus Christ has been active in dispensation, that is in economic administration, to produce clientelism, seen in Greek Socialism, which the Economist Magazine describes as a system of pork and patronage to its zenith. And He has been active in developing SSI Disability to be in large part a system of fraud to provide economic reward to people who are capable of working. God has solely been interested in the investor’s investment return.  

Beginning with the Creature from Jekyll Island, and moving through the Bretton Woods Agreement, to the development of the Milton Friedman Free to Choose Floating Currency System, when the US went off the gold standard in 1971, God birthed and brought forth the democratic nation state and banker regime, to perfect liberalism, all purposed for the investor and investment choice in mind.

With a trade higher in Eurozone Debt, EU, to 26.33, and a trade higher in the Euro, FXE, to 136.40, and a trade lower in the Yen, FXY, to 92.88, debt trade investing and carry trade investing drove the European Financials, EUFN, such as NBG, DB, and SAN, and the Eurozone Stocks, EZU, such as STX, DSX, ELN, and the Eurozone Nations, EWI, EWG, EFNL, EWN, EWQ, EIRL, EWP, EWO, GREK, and PGAL, to their their highest possible value, thereby producing  peak fiat wealth, that is peak stocks VT.

As I recently wrote, with an epic reversal in fiat wealth on January 2, 2013, God fully, totally, and utterly terminated liberalism, and commenced authoritarianism, giving it The full constitution of endtime rule, as presented by the Apostle Paul in Revelation 13:1-4.

Jesus Christ moved the bond vigilantes to call the Interest Rate on the 10 Year US Government Bond, ^TNX, higher  from 2.48%, on October 23, 2013; this together with the trade lower in fiat wealth on January 2, 2013, constituted “twin extinction events”, which terminated Liberalism’s fiat money system and introduced Authoritarianism’s diktat money system.

Fiat money began to die on October 23, 2013, with the Interest Rate on the US Ten Year Note, ^TNX, rising from 2.48%, as Aggregate Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW,  turned lower in value, on that date.

Capitalism, European Socialism, and Greek Socialism are beginning to die with the death of Milton Friedman Free To Choose Floating Currency Banker Regime; these have been written off by God to the dustbin of history. With the bond vigilantes calling the Benchmark Interest Rate, ^TNX higher from 2.48% on October 23, 2013, Regionalism has commenced as the singular economic dynamo and singular economic system.

Diktat money came into being with Eurozone banking supervision beginning from Frankfurt Germany, on November 15, 2012.

And Eurozone fiscal rule commenced on November 15 as well, with nannycrats in Brussels exercising Eurozone diktat in policies of regional governance and schemes of debt servitude in totalitarian collectivism, as The Telegraph reports The EU Uses New Budget Powers To Demand More Austerity In Italy And Spain. The European Commission has exercised historic new EU powers allowing it to revise national budgets for the first time.

In summary, the new money, that is Authoritarianism’s diktat money does not and cannot support economic growth; it only serves to fuel economic deflation and economic recession; its purpose is to enforce the debt servitude of the debt serf, as the world becomes centered around regional security, regional stability, and regional sustainability.

2)  … Satyajit Das, writes in Naked Capitalism, The end of Trust, Part 1.

In Jean Renoir’s 1939 film The Rules of the Game (La Regle du Jeu), a character observes that: “We live at a time when everyone lies.” Those words are equally true today.

All systems, social, cultural, spiritual, economic, financial, rely on trust. It requires the capacity to weigh up the costs and benefits of trusting others. It requires the ability to reciprocate in kind or seek redress when trust is betrayed. When it is working, the system enables strangers to deal with each other safely for their mutual benefit. It is the basis of liberal societies, democracies and economies.

In attempting to deal with the global economic crisis, policy makers have systematically undermined trust in instruments, trust in institutions, trust between nations and trust in the political process.

A difficult compact. It is ironic that the breakdown should be caused by an economic crisis, not a political or social one. But the social compact within democratic societies requires economic growth – constant improvements in living standards and increasing wealth.

The entire economic system and expectations cannot do without growth. John Steinbeck identified this tendency in his novel about the depression The Grapes of Wrath: “when the monster stops growing, it dies. It can’t stay one size”.

Today, strong economic growth may have come to an end. The global economy has stalled, entering a period of secular stagnation or contained depression. Employment, incomes, wealth and investment are stagnant or falling. Economy security has reduced dramatically for all but a select few.

The rapid rise of living standards and the size of the economy were driven, to varying degrees, by increases in debt levels, environmental damage and unsustainable consumption of non-renewable resources. The crisis has mercilessly exposed the limits of this economic model.

The crisis has also exposed the limits of policymakers’ tools to restore growth. Government spending to stimulate economic activity is severely restricted globally, due to increased investor focus on public finances and a reluctance to finance heavily indebted nations. With interest rates in most developed countries near zero, central bankers have been forced to resort to non-conventional monetary techniques, primarily quantitative easing (“QE”). The effectiveness of these policy instruments is increasingly debated, with repeated doses of familiar prescriptions failing to restore the health of the global economy.

The crisis has exposed other problems. In recent years, increasing concentration of wealth and inequality was disguised by artificially engineered housing booms and the availability of abundant debt to finance spending. Borrowing became a substitute for rising incomes. As the top income earners’ share of wealth in many countries increased, strong economic growth papered over the problems of inequality. As Henry Wallick, a former Governor of the US Federal Reserve, accurately diagnosed: “So long as there is growth there is hope, and that makes large income differential tolerable.”

Economist John Maynard Keynes’ warning went unheeded: “When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill done.” Politicians and policy makers struggling to deliver prosperity have turned to financial and political repression.

Financial repression, a term coined in 1973 by Stanford economists Edward Shaw and Ronald McKinnon, entails a variety of measures to channel funds to governments to help liquidate otherwise unsustainable debts. It can take the form of manipulating interest rates, forcing purchases of government bonds, controlling the free movement of capital and nationalising businesses or seizing savings. Ironically, financial repression is generally packaged as measures to ensure the stability and solvency of the economic and financial system.

Current government policy in most developed countries is to keep interest rates low for an unspecified but extended period. Returns are artificially set below the true inflation rate – money loses its purchasing power, the ability to buy real goods and services. As interest rates are the price of money, governments are now deliberately manipulating prices.

With interest rates at zero (known as ZIRP – Zero Interest Rate Policy), governments are increasingly forced to use QE to manipulate the amount rather than the price of money. In July 2012, Denmark’s central bank even instituted negative interest rates on deposits, setting the deposit rate at minus 0.2% per annum. Lending money to the Danish government required savers to accept a penalty. This was NIRP -negative interest rate policy. The European Central Bank (“ECB”) has also considered similar initiatives.

The major effect of low rates is to allow over indebted borrowers to borrow at lower interest rates and maintain higher levels of borrowing than could otherwise. Low rates help reduce the value of the debt, effectively decreasing the amount of borrowing. The policy subsidises borrowers at the expense of savers. Low rates reduce the income of savers, including retirees. It undermines compulsory retirement saving schemes, designed to ensure a secure post work life.

In 2010, a “fully sympathetic” Bank of England Deputy Governor Charles Bean told the UK Parliament that retirees “shouldn’t necessarily expect to be able to live just off their income.  It may make sense for them to eat into their capital a bit.” He pointed out that: “Very often older households have actually benefited from the fact that they’ve seen capital gains on their houses.” The implication of Mr. Bean’s speech was that retirees should sell their houses, camp in the local park and eat their capital gains.

Central banks insist that they can increase rates when they want to. All addicts believe that they can quit whenever they want to.

A sustained period of low rates makes it difficult to increase the cost of borrowing. Levels of debt encouraged by low rates become rapidly unsustainable at higher rates.

Japan’s public debt is 240 per cent of its Gross Domestic Product (“GDP”). The government spends more than $2 for every $1 of taxes they raise. They borrow the rest at interest rates of less than 1%. If interest rates increased to more normal rates then Japan would not be able to sustain its huge debt.

Desperate to get investors to buy government bonds the Japanese Ministry of Finance has found a new angle – sex. They are running ads promoting ownership of government bonds: “Men who hold JGBs [Japanese Government Bonds] are popular with women!”

These policies debase currencies, undermining money’s function as a mechanism of exchange and a store of value. Once an unquestioned store of wealth, investors in government bonds are now threatened by the risk of sovereign defaults or destruction of purchasing power. Jim Grant of Grant’s Weekly Interest Rate Observer noted that where once government bonds offered risk-free return, now they offer “return free risk”.

More aggressive forms of financial repression are evident. In the restructuring of Greek debt, retrospective legislation was used to deliberately prefer official creditors including the ECB, allowing them to avoid losses at the expense of other creditors. Subsequently, in the course of the bailout of Cyprus, in part because of the write-down in Greek debt held by Cypriot banks, significant losses were imposed on depositors. Unsurprisingly, commercial investors are now reluctant to finance some governments or banks, fearing adverse future changes to their legal status.

In some countries, governments have seized private savings or have directed it into approved investments.

In Spain, the approximately Euro 60 billion Fondo de Reserva was created to guarantee pension payments in times of hardship. The Fund’s investments now constitute primarily (97.5%) Spanish government bonds.

According to Bank of Spain data, Spanish government entities hold around 14% of the total government debt of around Euro 658 billion. Encouraged by the Spanish government and financed by the national central bank and the ECB, domestic banks hold a further 31.5%. In contrast, foreign investor holdings of Spanish government debt have fallen to around 37% from around 50% in 2011.

Purchases by such captive investors have helped the Spanish government finance itself and also reduced it cost of borrowing. The exposure to the government increases the risk of these investors in case of a restructuring of Spanish government debt and its ability to meet its future liabilities to their beneficiaries.

Portugal used its own pension fund to meet its 2011 deficit targets, having already raided Portugal Telecom’s pension fund the previous year. Argentina has seized pension funds, central bank foreign exchange reserves and renationalised YPF, the national oil company, allowing the government access to $1.2 billion of annual profits. Bolivia has nationalised Transportadora de Electricidad, Bolivia’s national power-grid company.

In India, tax authorities retrospectively imposed a large tax liability on UK telecommunications company Vodafone. Raghuram Rajan, an economist at the University of Chicago and recently appointed head of the Indian central bank, commented: “A government that changes the law retrospectively at will to fit its interpretation introduces tremendous uncertainty into business decisions, and it sets itself outside the law. [It] has missed a golden opportunity to show its respect for the rule of law even if it believes the law is poorly written. That is far more damaging than any tax revenues it could obtain by being capricious.”

The ECB, which oversees the 17-nation Euro-Zone, has implemented programs that entail “monetary financing”; that is, central bank funding of governments prohibited under European Union (“EU”) treaties. As Jens Weidmann, President of the German central bank, the Bundesbank, warned in November 2011: “I cannot see how you can ensure the stability of a monetary union by violating its legal provisions”.

3)  … Nick Beams of WSWS writes Capitalism breakdown is intensifying.

One of the key indicators of the underlying breakdown of the global capitalist economy is the growing divergence between the accumulation of profits and the level of investment, the central driving force for the expansion of the real economy.

It has been estimated that global corporations are sitting on cash holdings of around $4 trillion—half of which is in the US—because there are so few profitable outlets for new investment. Rather than employing profits to finance expansion of production, companies are increasingly using their cash holdings to finance share buybacks in order to boost equity values, thereby providing financial profits to the hedge funds, banks and investment houses which are the major shareholders of large corporations. This is being accompanied by a major “restructuring”, such as in the global auto industry, leading to the closure of factories and other facilities, some of which have been operating since the early 1950s.The social effects of “restructuring” are most graphically illustrated in the euro zone, where investment levels are down by as much as 30 percent on pre-2008 levels. Combined with the impact of the austerity programs being implemented by all governments in accordance with the dictates of the banks, the restructuring is bringing social devastation.

A study by the International Red Cross published in October stated that Europe was sinking into a protracted period of poverty, mass unemployment, social exclusion, increased inequality and collective despair as a result of the austerity agenda.

I comment that capitalism is indeed breaking down; this is by God’s design, so that He can introduce regionalism as the singular economic system, and the single dynamo of economic activity. God is not

interested in the slightest about social exclusion and inequality; he is interested in producing the Fierce Monster seen in Daniel 7:7 to decisively stomp out liberalism.

4) … Jeffrey Frankel writes in Project Syndicate, Fischer, the Fed, and US Growth.

Jeffrey Frankel is a liberal professor at Harvard University’s Kennedy School of Government; he previously served as a member of President Bill Clinton’s Council of Economic Advisers. He blogs on Before Its News. He directs the Program in International Finance and Macroeconomics at the US National Bureau of Economic Research, where he is a member of the Business Cycle Dating Committee, the official US arbiter of recession and recovery. He posts Economic Research Articles. He writes in VOXEU. And he  posts economic articles and workpapers at the US Fed’s IDEAS website; and as Robert Wenzel notes, in November 2008, declared the Eurozone and Japan to be in recession.

Now that Janet Yellen is to be Chair of the US Federal Reserve Board, attention has turned to the candidate to succeed her as Vice Chair. Stanley Fischer would be the perfect choice, given his unique combination of skills, qualities, and experience.

During his academic career, Fischer was one of the most accomplished scholars of monetary economics. He then served as Chief Economist of the World Bank, First Deputy Managing Director at the International Monetary Fund, and, most recently, as Governor of the Bank of Israel.

Fischer’s qualities were acclaimed last month at the IMF’s Annual Research Conference by, among others, outgoing Fed Chairman Ben Bernanke, who in the 1970’s was one of Fischer’s many MIT doctoral students (as was I).

Summers’s controversial explanation for slow growth has received the most attention. The economic crisis, he argued, is not over until it is over, which it is not yet. He boldly suggested that the reason for sub-par growth over the last ten years is a fundamental structural change, identified as “secular stagnation”: the natural, or equilibrium, real (inflation-adjusted) interest rate may have fallen below zero – perhaps as low as negative 2-3% – “forever.”

There are, according to Summers, two possible reasons for this: a saving glut coming from Asia or a long-term IT-induced decline in the relative price of capital goods that has reduced needed investment relative to saving. (Krugman offers more possible explanations: declining rates of population or productivity growth.) Whatever the cause, if Summers is right, we are in deep trouble. As it is, central banks can have difficulty attaining a sufficiently low real interest rate in recessions, because the nominal interest rate cannot go below zero. In Summers’s scenario, the negative equilibrium rate would mean chronically slow growth.

Fischer himself expressed greater optimism at the conference that monetary policy can work, even under current conditions. Quantitative easing and forward guidance can push down the long-term interest rate. And there are other channels besides the real interest rate: the exchange rate, equity prices, the real-estate market, and the credit channel.

Given the potential for long-lasting damage to growth, it has become even more important to maintain adequate demand stimulus so long as unemployment remains high. The Wilcox paper thus supports continued monetary ease in 2014.

Krugman’s presentation at the IMF conference was as surprising as the others: concerns about US fiscal deficits and debt are misplaced even in the longer term. Deficit hawks worry that at some point global investors will lose their enthusiasm for holding ever-greater amounts of US debt, resulting in a sharp depreciation of the dollar. Krugman’s controversial claim is that, even if this were to happen, interest rates would not rise, while the depreciation’s effect on the US economy would be expansionary (via an increase in net exports). The policy implication is that there is less reason to worry about the long-term debt problem and more reason to worry that fiscal contraction over the last three years has been depriving the economy of needed demand.

The policy failures have indeed been remarkable. Though prompt action halted the 2008 financial meltdown, and initial monetary and fiscal stimulus helped to end the recession itself in 2009, the recovery since then has been painfully slow, owing mainly to destructive fiscal policy: misguided drag in 2010-13; repeated self-inflicted crisis in 2011-13; and no progress on the genuine longer-term fiscal problem. Together, these fiscal failures have probably subtracted more than a percentage point from US growth in each of the last three years.

But there are grounds for optimism in 2014. For the first time in four years, fiscal policy probably will not have a negative effect on growth. True, it would be better if fiscal policy could make a positive contribution. But ending the negative contributions is cause for celebration.

Meanwhile, monetary policy will be in good hands, especially if Fischer joins the team.

Jeffrey Frankel conveys the concept that monetary policy of the US Fed, as well as other channels, transit economic growth.

This is most definitely the case. Yet, the Dispensation Economics Manifest, that is the theory of the Economy of God, presented in Bible Scripture of Ephesians 1:10, and complemented by Bible Prophecy of Revelation 13:1-4, and Daniel 2:25-45,  presents the concept that under the paradigm and age of liberalism, the monetary policy and the economic policy of the world central banks, beginning in 1971, when President Nixon embraced Dr. Milton Friedman’s Free to Choose floating currency system to establish the US Dollar Hegemonic Empire ….. has been one of investment choice and credit stimulus supported by investment schemes of debt trade investing and currency carry trade investing for the purpose of investment return  ….. and that this interventionism should not be evaluated in terms of economic growth or economic recession and its metrics such as rising employment or rising unemployment, inflation or deflation, rising household income, or falling household income, as these are only exogenous metrics, simply hokum, not goals.   The goal of liberalism, during the period of 2008 to 2012, was singular, it was to produce channels of investment for investment returns based upon the risk profile of the investor.

The goal, has resulted has resulted in peak moral hazard based investor prosperity. Liberalism’s goal was of investment return was attained with an epic reversal in fiat wealth on January 2, 2013.

The completion of God’s monetary policy and economic policy of investment choice and credit stimulus came with a rally in World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, beginning from October 23, 2013, and consummating on January 2 ,2013, as is seen in their ongoing combined Yahoo Finance Chart, by means of ongoing debt trade investing, by leveraging up Junk Bonds, JNK, and Distressed Investments, FAGIX, and currency carry trade investing by buying the Euro, FXE, and selling the Yen, as well as by buying US Stocks, VTI.

Now under the paradigm and age of authoritarianism, the monetary policy and economic policy of God is one of diktat of regional governance supported by schemes of debt servitude in totalitarian collectivism.

The goal is to produce crushing debt servitude based austerity, as is seen in Revelation 13:1-4, as well as in Daniel 7:7. Wealth was liberalism’s order of day; now poverty is authoritarianism’s order of the day, this according to the foreordained plan of God.

5) … Libertarian John Rubino writes of what is likely to be an alarming rise in Japan’s current account deficit What Blows Up First? Part 2: Japan

Of all the crazy financial stories of the past year, Japan’s might be the craziest. To recap:

For two decades, successive Japanese governments have fought the deflationary effects of bursting real estate and stock bubbles with ever-larger public works programs. These prevented the collapse of the country’s zombie banks and construction firms but didn’t produce the kind of growth necessary to bring the zombies back to life. The sustained deficit spending did, however, produce a public debt that as a percentage of GDP dwarfs even those of the US and Europe.

So in 2013 incoming Prime Minister Shinzo Abe demanded that the Bank of Japan inject enough credit into the banking system to produce at least 2% inflation. The bank acquiesced and in the space of less than a year more than doubled the size of its balance sheet by buying bonds on the open market with newly-created currency.

Now here’s where it gets strange. While this massive debt monetization program was ramping up, Abe and company began to worry about their ongoing deficits. So they raised the national sales tax to 10% in order to generate more revenue. But of course higher consumption taxes are deflationary, thus counteracting the Bank of Japan’s inflationary debt monetization.

So the government then decided to aggressively increase public works and military spending, which means it will henceforth take in more money and spend nearly all of it, leaving the country with unsustainably-high deficits and a bigger, more intrusive government. In other words, a lot of effort has been expended to no real purpose, while the debt keeps mounting and government officials keep saying ever-more-senseless things to obscure the above facts.

See this, from late December, Bloomberg reports Japan unveils record 2014 budget draft as debt burden mounts

Japan unveiled a record budget for the next fiscal year, as Prime Minister Shinzo Abe boosts spending on social security, defense and public works while trying to contain the growth of the world’s biggest debt burden. Government ministers and the ruling coalition adopted the 95.88 trillion yen ($921 billion) budget proposal for the fiscal year starting April 1 at a meeting yesterday in Tokyo, Finance Minister Taro Aso told reporters. Japan will issue 41.25 trillion yen of new revenue bonds, Also said, less than the 42.9 trillion yen earmarked in this year’s initial budget.

Abe aims to pull the country out of a 15-year deflationary malaise and cope with the rising welfare costs of its aging population, while containing public debt that’s more than twice the size of the economy. His government has pledged to halve the primary balance deficit by fiscal 2015 and achieve a surplus by fiscal 2020.

“The government needs to show that it’s moving in the right direction on fiscal discipline but this budget lacks punch,” said Yoshimasa Maruyama, chief economist at Itochu Corp. in Tokyo. “The government must cut spending to reach the planned target of a surplus in 2020.”

The government “will simultaneously achieve the revitalization of the economy and fiscal consolidation,” Abe said yesterday at the meeting of government ministers and the ruling coalition, adding that the budget draft will be submitted to Parliament in the new year for debate.

Japan’s growth slowed for a second straight quarter in July-September, as the initial impulse of Abe’s reflationary policies, dubbed Abenomics, started to fade. While an increase in the sales tax in April will boost revenue, enabling the government to check bond issuance, it is forecast to push the economy into contraction, adding headwinds to Abe’s efforts to drive sustained recovery in the world’s third-biggest economy.

Revenue from bond sales will pay for 43 percent of next year’s budget, down from 46.3 percent this year, according to draft budget documents obtained yesterday by Bloomberg News from a government official. Debt-servicing costs — including interest payments for outstanding bond issuance — will rise to 23.3 trillion yen from 22.2 trillion yen this year, the documents show.

Japan’s primary balance deficit will improve by 5.2 trillion yen next year, Also said, with tax revenue estimated to rise to 50 trillion yen. This compares with 43 trillion yen estimated for this year’s initial budget. In addition to the sales-levy bump, higher company tax payments as corporate profits rise will also help lift revenue. The sales tax will be increased to 8 percent from the current 5 percent from April 1, and the government plans to increase it again to 10 percent in 2015.

Social security spending will rise to 30.5 trillion yen next fiscal year, compared with 29.1 trillion yen this year, the draft budget documents show. The increase comes as the nation’s aging population boosts costs for welfare and pensions.

Public works spending will rise by 680 billion yen to 5.96 trillion yen, and the defense budget will rise by 130 billion yen to 4.88 trillion yen, according to the documents.

Real gross domestic product will grow 1.4% in the year starting in April, according to the documents, which show nominal GDP growing 3.3% to 500.4 trillion yen.

The above article tosses around a lot of alarming numbers. But the two that stand out are:

“Revenue from bond sales will pay for 43 percent of next year’s budget, down from 46.3 percent this year…” This means that, far from reining in its excesses, the government will again borrow nearly half of its budget. This would be the equivalent of the US borrowing $1.5 trillion, something that would not be considered progress by most observers outside of the New York Times’ editorial department.

“Debt-servicing costs — including interest payments for outstanding bond issuance — will rise to 23.3 trillion yen from 22.2 trillion yen this year…” That comes to about a fourth of Japan’s federal budget, and is rising.

The dilemma is clear: Japan has to keep spending to satisfy its growing population of retirees, offset the effects of higher taxes and counter China’s military build-up. And a big part of that spending has to be borrowed. But government debt of 220% of GDP and interest expense at 24% of the budget is already way too much, so the systemic implosion is just a matter of people figuring this out. And that could be triggered in 2014 by lots of things, including a slight uptick in interest rates that sends interest expense above the psychologically-important level of 25% of the budget, a confrontation with China over the islands they both claim, or a slowdown in a major export market like Europe.

The result: a sudden loss of confidence in the yen and/or the Nikkei that raises Japanese borrowing costs and forces the government to sell some of its Treasury bonds, thus exporting its crisis to the rest of the world.

6) … The nature of money, is that it has a debt component; it being so huge, that it finally has begun to contract  regional interventionism of nannycrats will provide regional economic security, stability, and sustainability, designed for debt servitude; thus replacing banker interventionism for investment return.

The debt component of fiat money is so huge, that is society’s medium of exchange, began to contract on October 23, 2013, when the bond vigilantes began calling the Interest Rate on the US higher from 2.48%.

The debt component of money will soon implode destroying the very foundation and the experience of living; society is going to have a new foundation, and new experience in living.

Society’s new foundation is the economic policy of diktat in regional governance, and society’s new experience in living is schemes of debt servitude in totalitarian collectivism.

The authority of democratic nation state and banker governance is literally dissolving; this is just as the Apostle John, sometimes called John The Revelator, presents in Revelation 6:1-2. 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, that is authority, 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, with its economic policies of diktat in regional governance, and schemes of debt servitude in totalitarian collectivism, as a replacement for the libertarian despised Creature from Jekyll Island, that is the democratic nation state and banker regime. Regional interventions will replace nation state interventions, as the world PIVOTED from the paradigm and age of liberalism, to that of authoritarianism, on October 23, 2013, when the bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.

The new normal is to follow the authority of regional governance and grow in the life experience of totalitarian collectivism; this is foretold in bible prophecy of Revelation 13:1-4.

To amplify on this concept, please consider that fiat money by definition is comprised of credit and currencies. For example when someone says I have money, it is owed to me, they are referring to the liability component of money, where a debtor has a responsibility to make payment to a creditor. The contraction of fiat money is seen in the Yahoo Finance chart of Aggregate Credit, AGG, together with Major World Currencies, DBV, and CEW. And of note, the fall lower in these finally turned fiat weath lower on January 2, 2013.

Peak systemic risk has been attained. Conservative economist Doug Noland relates After beginning 1990 at $12.80 TN, Total U.S. (Non-Financial and Financial) marketable debt ended Q3 2013 at $58.08 TN. Over this period, hedge fund asset jumped from about $40 billion to end 2013 in the neighborhood of $2.7 TN. The Fed’s balance sheet has inflated from $315 billion to $4.0 TN.  Fundamental to my macro credit analysis has been the thesis that prolonged credit bubbles inflate myriad price and spending levels throughout the economy. In the end, this inflation is unsustainable. Efforts to inflate out of deep financial and economic structural maladjustment risk systemic collapse. Our experimental central bank has in five years inflated its balance sheet from $900 billion to $4.0 TN.

I relate that another epicenter of unsustainable debt is in the Eurozone, as surprisingly, Paul Krugman communicates in this one terrific graph. Sober Look posts Euro area’s persistent credit contraction In spite of a number of positive economic indicators out of the Eurozone (see example), credit growth remains the area’s Achilles’ heel.

Libertarian Chris Rossini writing in Economic Policy Journal documents interventionism. How the minimum wage benefits government. And growing interventionism of authoritarianism is seen in the Ilana Mercer Economic Policy Journal report Quacking over Ducksters as freedoms go poof.

7) Aaron Task of The Daily Ticker writes Decline of U.S. foreign policy biggest risk of 2014, not economics: Ian Bremmer says There will be ‘very significant knock-on consequences’ from the decline of U.S. foreign policy, says Ian Bremmer, president of Eurasia Group.

Bible Prophecy reveals that the Sovereign and the Seignior will rise out of waves of Club Med sovereign, corporate, and banking insolvency to resolve G-Zero deficits. Ben Schott of Schott’s Vocab relates G-Zero is a term used to denote the absence of a politically and economically dominant country or bloc and states: For the first time since the end of World War II, no country or bloc of countries has the political and economic leverage to drive an international agenda,” argued Eurasia Group President Ian Bremmer and head of research David Gordon, writing in Foreign Policy: The United States will continue to be the only truly global power, but it increasingly lacks the resources and domestic political capital to act as primary provider of global public goods. There are no ready alternatives to U.S. leadership. Europe is preoccupied with a multi-year bid to save the eurozone. Japan has complex political and economic problems of its own, and rising powers like China and India – are too focused on managing the next stage in their development to take on new international responsibilities. We’re referring to this new era as G-Zero, because that phrase captures the lack of international leadership at the heart of so many emerging political and economic challenges. Why the G-Zero and not the formation of blocs that allow countries to pool their influence to get things done?

Because the default policy response to a breakdown in global economic governance is every man/nation for himself. As demonstrated in a politically integrated Europe, without adherence to common rules, there’s no such thing as collective economic security. In the G-Zero, domestic constituencies will become increasingly effective in pushing agendas on trade, and fiscal policy.

I comment that the currency traders will continue their global currency war until are currencies are sorely depleted, and that very soon the Bible prophecy of Revelation Chapter 13 will be fulfilled; this Scripture presents that out of waves of Club Med sovereign, banking and corporate insolvency, (Revelation 13:1-4), a global Chancellor, that is the Sovereign, (Revelation 13:5-10) and a Global Banker, that is the Seignior, (Revelation 13:11-17), will rise to provide order, moneyness, credit and eventually a Global Currency, (Revelation 13:18).

The Sovereign, is presented by ddclaywrite as Ruler King, as rising from a Roman Law regime; held forth by murjahel John D Ladd as a Ravenous Beast; described by Samuel Clough as The Fulfillment of Bible Prophecy of Daniel 11:21-25; said by Duncan to be The Little Horn, that is one of seemingly little authority; characterized by Erika Grey as One Of Sufficient Stature To Head The Allegiance Of All People and to lift us out of the economic morass in which we are sinking, send us such a man and be he god or the Devil we will receive him, according to Belgian Prime Minister, 1st President of the EU Parliament, Paul-Henri Spaak; described by Catherine, as A Genius in intellect (Daniel 8:23), in commerce (Daniel 11:43; Revelation 13:16-17), in war (Revelation 6:2; Revelation 13:2), in speech (Daniel 11:36), and in politics (Revelation 17:11-12); held forth by brittgillette to be Leader of a Revived Roman Empire; who according to Edward L. Bromfield will be World Leader for 42 months;  said by whatshotn One Opposed To Christ; and likewise by hewillbeback as One Opposed To Christ.

Perhaps, as John Ross Schroeder, thinks The Sovereign may rise from Germany.  Open Europe related News Publisher Die Welt quotes German Interior Minister and former Defence Minister Thomas de Maizière as saying, “Germany doesn’t need lectures from anybody in Europe over the nature and scope of our international [military] missions, this also applies to France and the UK”.

The Seignior is already in place as Bloomberg reports Draghi raids bankers in rush to hire 1,000 for Europe Supervisor.  Investment Watch relates that “At a Fed policy symposium in Jackson Hole, Wyo., Bernanke gave his strongest indication yet that the Fed is ready to resume its large purchases of longer-term debts if the economy worsens. Such purchases would add to the Fed’s already substantial holdings … “We have come a long way, but there is still some way to travel,” Bernanke said. “Central bankers alone cannot solve the world’s economic problems.””

The Sovereign and the Seignior, God’s appointed leaders for the paradigm and age of authoritarianism, will come to the aid of Ben Bernanke and the other world central bankers to address the coming world economic, banking and monetary problems.

8) … Turkey was once a major currency carry trade investment. An inquiring mind asks, is Turkey about to implode because of  debts denominated in foreign currencies.

Sebnem Kalemli-Ozcan posts in VoxEU Next Sudden Stop Financial crises are generally preceded by credit booms and a build-up of external debts. Although it is unclear whether Turkey is experiencing a financial bubble, as of 2013, 58% of the corporate sector’s debt was denominated in foreign currencies. This column argues that this explains the Central Bank of Turkey’s interventions to prop up the value of the Turkish lira. Given the relatively low level of reserves and the unfolding corruption scandal, it is a critical question how long the Bank can continue to do so.

9) … Eschatology involves an analysis of wars and rumors of wars

And Bill Van Auken reports in WSWS, the new normal under authoritarianism is increasing wars and rumors of wars. Iraq slides toward civil war. Heavy fighting erupted Thursday between Iraqi government troops and Sunni militants who seized large parts of Fallujah and Ramadi. And the NYT reports Qaeda aligned militants in Iraq claim Fallujah as Independent State. Jason Ditz reports Maliki warns Fallujans: Kick out al-Qaeda or else.

Jason Ditz reports Syrian rebel infighting now spans four provinces. And Bloomberg reports Iraq is new schism for Saudis in strained alliance with west. Few goods transit the desert border between the Middle East’s two biggest oil producers, and Saudi authorities have built a fence to help ensure that political instability in Iraq doesn’t cross over either. Dysfunctional ties between the countries have come into focus as a wave of violence sweeps Iraq, turning it into another arena where Saudi interests are diverging from those of the U.S. Fighting is centered in Anbar province, bordering Saudi Arabia, where Sunni fighters with ties to al-Qaeda are rebelling against the Shiite-led government of Nouri al-Maliki, which is supported by Iran.

10) … The Reformed Broker posts Yield-chasing never ends well, regardless of whether it happens in stocks or bonds. It’s only ever a question of who’s left holding the bag at the inflection point.

During the first four months of the year, market leadership was decidedly defensive: Utilities, XLU, were the best performing sector through April.

I comment, In May, the bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, higher, and the Electric Utilities, XLU, having lots of debt to refinance, turned strongly lower.

Presented below is the chart of The Benchmark Interest Rate, ^TNX, that is The Means of Economic Destructionism, which is yielded by the bond vigilantes to set off waves of debt deflation and competitive currency deflation. This is the Weapon of Mankind’s Destruction. It terminated Liberalism as a paradigm and an age. It is now destroying nation state democracies and the banker regime, as well as the Milton Free To Choose Floating Currency System, where the US Dollar, $USD, UUP, has served as International Reserve Currency, supporting Crony Capitalism, European Socialism, Greek Socialism, Chinese Communism, and Russia Capitalism. It is loved by the Beast Regime, Revelation 13:1-4, The Harlot, Revelation 17:1-5, The Two Feet and Ten Toed Kingdom Of Iron Diktat And Clay Democracy, Daniel 2:25-45, and Daniel’s Monster, Daniel 7:7. It entered an Elliott Wave 3 up on October 23, 2013. It has destroyed fiat money, AGG, DBV, CEW, Utilities, XLU, Energy Partnerships, AMJ, Global Staples, KXI, Steel, SLX, Industrial Miners, PICK, Metal Manufacturing, XME, Industrial Textiles, MHK, Global Agriculture, PAGG, Timber Producers, WOOD, and The Emerging Markets, EEM.  Its next aim is to introduce Financial Apocalypse, that is a deflationary bust, characterized by the failure of credit and a financial system breakdown. Its longer term aim, as The Cost of Money, is to utterly and totally destroy Fiat Money; under Christ’s dispensation, that is administration, presented by the Apostle Paul in Ephesians 1:10, it will be successful.  Special acknowledgement and thanks to Investing.com: they have the most excellent charts.

 It’s the Defensive Stocks, DEF, that is defensive large cap value stocks, such as Utilities, XLU,  Energy Partnerships, AMJ, Consumer Staples, KXI, together with Growth Outside the US, DNL, such as Steel, SLX, Industrial Miners, PICK, Metal Manufacturing, XME, Industrial Textiles, MHK, Global Agriculture, PAGG, and Timber Producers, WOOD, and as well as the Emerging Markets, EEM, and Global Growth Leader, South Korea, EWY, that are turning lower first, as is seen in the ongoing Yahoo finance Chart of DEF, XLU, AMJ, KXI, and as is seen in the ongoing Yahoo Finance chart of DNL, SLX, PICK, XME, MHK, PAGG,WOOD, and EWY.

The end of liberalism’s debt trade investing, sometimes called yield chasing, occurred January 2, 2013, which PIVOTED the stock market from bull market to bear market, causing investors to derisk out of Defensives, DEF, and Global Growth Outside of the US, DNL, as well as Global Growth leader South Korea, EWY, and the Emerging Markets, EEM.

The end of currency carry trade investing also occurred on January 2, 2013, which also PIVOTED the stock market from bull market to bear market, causing investors to derisk out of Major Market Currency Nations, EFA, such as Australia, EWA, KROO, New Zealand, ENZL, and South Korea, EWY, as well as out of Emerging Market Currency Nations, EEM, such as Turkey, TUR, Thailand, THD, Indonesia, IDX, IDXJ, Philippines, EPHE, Brazil, EWZ, EWZS, and Chile, ECH, bringing about the death of fiat wealth, that is World Stocks, VT.

Jesus Christ in releasing the Rider on the White Horse, on October 23, 2013, enabled the bond vigilantes to commence economic destructionism, which destroyed fiat money money, it being defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW.  Then the currency traders through competitive currency fiat wealth died on January 2, 2013, it being defined as World Stocks, VT.

Nations South Korea, EWY, and the Emerging Markets, EEM, stand as white washed tombs in the prior era of liberalism; the Eurozone, EZU, is rising as the model and flag bearer of regional governance in the age of authoritarianism.

Because of the twin extinction events of Jesus Christ, the first on October 23, 2013, and the second on January 2, 2013, the investor is now extinct, just like the wooly mammoth of prehistoric times, wiped out by seemingly unpredictable cataclysmic action of God.

 11) … In review of financial market trading, liberalism’s peak fiat wealth, that is Peak Stocks, VT, was achieved on Friday December 28, 2013, on a buy of the Euro and a sell of the Yen, and a buy of US Stocks, driving the US Dollar higher relative to the Yen, and a buy of Junk Bonds.

For the year 2013, liberalism’s peak fiat wealth came on December 28, 2013, as currency traders drove the Euro, FXE, strongly higher to 136 and the Yen, FXY, lower to 93.

This is Jesus Christ acting in dispensation to “go up and over the top” to perfect liberalism, as earlier, destruction of fiat money had commenced on October 23, 2013, with the a strong sell of Credit, AGG, as well as a strong sell of Major World Currencies, DBV, and Emerging Market currencies, CEW, as the bond vigilantes began to call the Benchmark Interest Rate, $TNX, higher from 2.48%.

European Financials, EUFN, drove Eurozone Stocks, EZU, to their rally highs, and US Regional Banks, KRE, and the Too Big To Fail Banks, RWW, drove US Stocks, VTI, to their rally highs.

Thus, strong currency carry investing, seen in a higher Dollar Yen cross, USD/JPY, and in a higher Euro Yen cross, EUR/JPY, together debt trade investing, seen in Junk Bonds, JNK, and Ultra Junk Bonds, UJB, closed 2013 at a six month rally high, which drove the Global Financials, IXG, World Stocks, VT, and Nation Investment EFA, to their six month long rally highs, at the end of December 2013, producing Liberalism’s peak wealth.

World Stocks, VT, rising to their 2013 rally highs, reflected strong investing in five areas:

1) Risk Investing, FXR, CHII, PBS, RZV, PSCI, FPX, PJP, XTN, TAN, ZIV

2) Global Spending Investing, PKB, BJK, IGV, PSCC, SOCL, PPA, CSD, IBB, CARZ, PSCD

3) Global Growth Investing, SOXX, TAN, PICK, IPN, FLM, SLX, WOOD, XHB, RZG, MHK

4) Consumer Spending, Investing, PNQI, RXI, IYC, FDN, PBJ, PSCC, IHF, XRT, KXI, PSCD

5) Eurozone Countries, EWI, EWG, EFNL, EWN, EDEN, EIRL, GREK, PGAL, EWO, EWP

The real issue in the US Federal Reserve Tapering is that it is tacit affirmation that the world central banks’s monetary policies and economic policies of investment choice and credit stimulus have crossed the crossed the rubicon of sound monetary policy and have made “money good” investments bad.

This is the case as An epic reversal in fiat wealth commenced January 2, 2013.  Jesus Christ acting in dispensation, that is the administration of all things economic and political, a concept presented by the Apostle Paul in Ephesians 1:10, had begun to PIVOT the world from the paradigm and age of liberalism, into that of authoritarianism, on the death of fiat money, on October 23, 2013, as investors deleveraged out of Credit, AGG, and Currencies, DBV, CEW, on fears that the world central banks’ monetary policies of investment choice and credit stimulus, have crossed the rubicon of sound monetary policy, and have made “money good” investments, such as the Defensive Stocks, DEF, and Global Growth Outside of the US, DNL, and the Emerging Markets, EEM, bad.  And then, He then fully PIVOTED, the world from the paradigm and age of liberalism, into that of authoritarianism, on the death of fiat wealth, that is World Stocks, VT, on January 2, 2013.

Yes, it’s the Defensive Stocks, DEF, that is defensive large cap value stocks, Electric Utilities, XLU, Energy Partnerships, AMJ, Consumer Staples, KXI, and Global Growth Outside The US, DNL, as well as Global Growth Leader, South Korea, EWY, and the Emerging Markets, EEM, which are turning lower first.

The Risk-Off ETN, OFF, has been trading higher since the first of the year, communicating that risk appetite has turned to risk aversion. And the rise in credit spreads, seen in the chart of LQD:BLV, trading lower since the first of the year, communicates the beginning of the loss of faith and the beginning of the failure of economic growth. Gold, GLD, trading higher since the beginning of the year communicates a demand for safe assets.

12) … Financial market report for the week ending January 10, 2014

On Tuesday, January 7, 2014, Volatility, ^VIX, plummeted, as traders took European Financials, EUFN, such as Ireland’s Bank, IRE, Spain’s Bank, SAN, and Germany’s Bank, DB, as well as Bank of America, BAC, Citigroup, C,  and JPMorgan, JPM, higher in front of release of the US Federal Reserve meeting notes scheduled for release Wednesday January 8, 2014.

The trade higher in these revived Eurozone Stocks, EZU, and the European Nations, EWI, EWG, EFNL, EWN, EWQ, EIRL, EWP, EWO, and GREK, as well as revived Global Financials, IXG, and rallied World Stocks, VT, and Nation Investment, EFA, IFSM, which had sold off on January 2, 2013. Netherlands Life Insurance Company, ING, rallied to a new high. Eurozone Debt, EU, rose strongly.

US Refiner, VLO, which sells refined petroleum products into the Eurozone, rose strongly to a new rally high, leading US Infrastructure, stocks, PKB, higher.  Ireland’s, STX, COV, and IR, as well as Resorts and Casinos, BJK, such as MGM, MPEL, WYNN, rose to new rally highs.  Clean Energy, PBD, such as FCEL, HYGS, CUI, PLUG, CTS, OESX, VICR, rose to a new rally highs.  Google, GOOG, popped to a new rally high taking Internet Retail, FDN, Nasdaq Internet, PNQI, Large Cap Nasdaq, QQQ, and Nasdaq 100, QTEC, higher to match their previous highs.  TV Broadcasters, LVNTA, CHTR, SATS, CMCSA, and DTV, traded higher.  Assets Managers, such as IVZ, WDR, AMG, BX, and BLK, traded higher.  Communication Equipment Stocks, MU, INTC, ALU, NOK, ARRS, HRS, LORL, WDC, STX. seen in combined ongoing Yahoo Finance Chart, traded higher.

The rally in front of the release of the FMOC notes on Tuesday January 7, 2013, with the S&P 500, SPY, 0.6%, the Russell 2000, IWM, 0.8%, Regional Banks, KRE, 0.9%, and the European Financials, EUFN, 2.0%, and Greece, GREK, 2.7%,  made for a great short selling opportunity, as in a bear market one sells into pips, just like in a bull market one buys into dips.

Perhaps one might find my Stockcharts.com Chartlist helpful, (open only till 01-17-2013) where I provide a list of ETFs for a Margin Portfolio, which include, STPP, HDGE, XVZ OFF, JGBS, EUO, HYHG, SAGG, SLV, and GLD, as well as a number of Bear Market ETFS for one’s consideration.

In today’s news Bloomerg reports Oil imports tumble sends US trade gap to four year low.

Finviz charts show Chinese Financials, CHIX, have fallen 2.6% this week, continuing a 9.9% fall in the last month, which has caused a 4.8% fall in Chinese Stock, YAO, in the last month.

Bloomberg reports China’s credit holes seen limiting 2014 growth prospects. China’s new credit probably fell by a record in the second half amid a crackdown on speculative lending, limiting prospects for economic expansion this year as policy makers focus on controlling financial risks. The broadest measure, aggregate financing, was 7.1 trillion yuan ($1.2 trillion) based on published figures plus economists’ median estimate for December data due in coming days. That would be about 931 billion yuan less than in July-to-December 2012, the largest drop in figures going back to 2002.

And Bloomberg reports Crisis risk flagged by Haitong as debt snowballs. China’s second biggest brokerage said record debt threatens to trigger a financial crisis as borrowing costs jump to unprecedented highs despite a cooling economy. Liabilities at non-financial companies may rise to more than 150% of gdp in 2014, raising default risks, according to Haitong Securities Co. The ratio of 139% at the end of 2012 was already the highest among the world’s 10 biggest economies, according to the most recent data. “We are concerned that the debt snowball may be bigger and bigger and turn into a crisis,” Li Ning, a Shanghai-based bond analyst at Haitong Securities, said in an interview.

The new normal weather phenomena of Ice Age Winter has economic affect as Bloomberg reports  Arctic cold cuts fuel supplies as refineries to pipelines freeze. Record cold weather pummeled energy infrastructure across the U.S., prompting gas pipeline operators to reduce flows, fuel terminals to shut loading racks and refineries to scale back production.

On Wednesday, January 8, 2014, Global Financials, IXG, traded to a new rally highs, reflecting a likely rally high, in risk-on investing coming with the release of the FOMC meeting notes. Ireland’s Bank, IRE, the National Bank of Greece, NBG, and Spain’s Banco Santander, SAN, drove European Financials, EUFN, to a new rally high. The UK’s Lloyd’s Banking Group, LYG, and Barclays, BCS, rose to a new rally highs. The Too Big To Fail Banks, RWW, traded to a new rally highs. Netherlands Life Insurance Company, ING, traded to a new rally high, driving insurance companies higher.

The climax of risk-on investing produced the end of the age of investment choice; and is seen in the ongoing trade higher in Eurozone stocks such as Ireland’s CRH, STX, COV, France’s ALU, Netherland’s QGN, IGN, PHG, ENL, Finland’s NOK, and Belgium’s BUD.

The trade higher in the Eurozone Financials, EUFN, contrasts sharply with debt deflation, coming from a renewed sell-off in Emerging Market Local Currency Bonds, EMLC, which stimulated competitive currency devaluation, in Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, and which caused renewed derisking out of Emerging Market Nations, EEM, such as Brazil, EWZ, EWZS, BRAF, Indonesia, IDX, IDXJ, Emerging Market Mining, EMMT, Emerging Market Financials, EMFN, Emerging Market Infrastructure, EMIF, and Emerging Market Dividend, EDIV.

Nation Investment, EFA, traded unchanged. Emerging Markets, EEM, traded lower. Greece, GREK, popped higher to a new rally high manifesting what is likely to be an evening star candlestick chart pattern; and Spain, EWP, and Ireland, EIRL, traded to new rally highs reflecting tulip mania. Egypt, EGPT, popped higher to a rally high. Turkey, TUR, Argentina, ARGT, Mexico, EWW, and Brazil, EWZ, EWZS, traded lower.  Of note, Sweden, EWD, traded lower on a lower Swedish Krona, FXS.

Investment mania in European Financials, EUFN, and the nation of Spain, EWP, is risk-on irrational exuberance coming through margin credit. supported through debt trade investing, seen in European Debt, EU, trading higher. The chart of EZU relative to EU, EZU:EU, communicates the tulip mania existing at the end of the age of liberalism.

This manic risk-on investing contrasts with economic reality as Mike Mish Shedlock writes of credit contraction, sovereign insolvency and economic recession in Spain. Household and non-financial credit in Spain Sink, government debt expands; No recovery in sight.  Can you talk about economic recovery when the rate of credit to households and businesses is still accelerating its decline? Can you recover an entire economy where credit granted is absorbed by a black hole called public sector? And Bloomberg reports Euro-Area Unemployment stands at 12.1%.

World Stocks, VT, traded unchanged. Resorts, BJK, continued higher to yet a new rally high. Solar Energy, TAN, Semiconductors, SOXX, Biotechnology, IBB, Pharmaceuticals, PJP, Medical Devices, IHI, Health Care Providers, IHF, and Clean Energy, PBD, traded higher to new rally highs. Micron, MU, popped higher.

On the other hand, Industrial Miners, PICK, Rare Earth Miners, REMX, traded lower, while Alcoa, AA, traded higher.  Small Cap Pure Value, RZV, traded lower, and Consumer Staples, KXI, PSCC, traded lower. Consumer Staples, KXI, trading lower include, ADM, SMJ, KMB, PG, GIS, K, CLX, CL, and INGR. World Growth Stocks Outside of the US, DNL, traded lower on the continuing rise of the Benchmark Interest Rate, ^TNX, to 2.99%. The bond vigilantes being in control of the Benchmark Interest Rate are using the Means of Economic Destructionism, to destroy the value of both fiat money, which is defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, as well as fiat wealth, defined as World Stocks, VT. The Risk-Off ETN, OFF, has been trading higher since the first of the year, communicating that risk appetite has turned to risk aversion. Of note, Retailer, XRT, Macy’s, M, traded lower, marking the age of investment choice with Zero Hedge reporting Macy’s fires 2500 and announces the closure of five stores.

With the world having pivoted from liberalism’s inflationism to authoritarianism’s destructionism, economic growth is impossible; global economic deflation and economic recession, is mankind’s destiny, assuring a complete debt servitude based austerity, as liberalism’s debts will be applied to every man, woman and child on planet earth.

Defensive Stocks, DEF, such as Utilities, XLU, Energy Partnerships, AMJ, and Leveraged Buyouts, PSP, traded lower, as the bond vigilantes continued calling the Benchmark Interest Rate, ^TNX, to 2.99%, this time higher on the release of the FOMC meeting notes. The world central banks’ monetary policies and economic policies of investment choice and credit stimulus, have crossed the rubicon of sound monetary policies and have made a broad spectrum of  “money good”  investments bad.

Fiat money, which died on October 23, 2013, when the bond vigilantes called the interest rate higher from 2.48%, continued to die as its two components continuing lower. The first component of fiat money Aggregate Credit, AGG, traded lower with Long Duration Corporate Bonds, BLV, Corporate Bonds, LQD,  Mortgage Backed Bond, MBB, International Treasury Bonds, BWX, Emerging Market Bonds, EMB,  Emerging Market Local Currency, EMLC, and Government Bonds, GOVT, trading lower, as the bond vigilantes, continued calling the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.99%. And the second component of fiat money, Major World Currencies, DBV, traded unchanged, but Emerging Market Currencies, CEW, traded lower.

The bond vigilantes have control of the Interest Rate on the US Ten Year Note, ^TNX, that is the Means of Destructionism, and are using it to destroy the first component of fiat money that being Aggregate Credit, AGG. The currency traders are following in their steps with competitive currency devaluation, in selling the second component of fiat money that being the World Major Currencies, DBV, as well as the Emerging Market Currencies, CEW. This debt deflation is causing investors to derisk out of fiat wealth, that is World Stocks, VT.

Of significant note, Short Term Government Bonds, SHY, traded strongly lower; while Corporate Short Term Bonds, FLOT, traded slightly higher manifesting a spinning top doji at the top of an ascending wedge. The parabolic trade lower in Short Term Government bonds, SHY, poses systemic risk; as bond vigilantes now have control of the short term rate on US Government Bonds, which increases the potential for Money Market Funds, MMF, to be unable to continue maintaining a constant one dollar value, because the value of the underlying investments is now destabilized by a rapidly rising interest rate on even the Short Term Government Bonds, SHY. The rise of the Benchmark Interest Rate, ^TNX, from 2.99% poses the very real risk of a credit system breakdown and financial system collapse, coming from Money Market Funds, MMF, breaking the buck.

Commodities, DBC, plunged strongly lower, as Agricultural Commodities, RJA, such as Corn, CORN, Oil, USO, and Natural Gas, UNG, traded lower. Bloomberg reports Corn falls to 40-Month Low, wheat drops on global supply outlook. Corn futures tumbled to a 40-month low and wheat fell to the cheapest since 2011 on speculation that a U.S. government report this week will show ample world supplies. Oilseeds also slumped. Inventories of corn in the season ending Oct. 1 probably will rise to 163.08 million metric tons, the highest since 2001. Consumer Staples, KXI, trading lower on falling Commodities, DBC, include, ADM, SMJ, KMB, PG, GIS, K, CLX, CL, and INGR.

Liberalism’s two investment schemes, debt trade investing and currency carry trade investing, failed on January 8, 2013.  Junk Bonds, JNK, traded lower, communicating that liberalism’s scheme of debt trade investing has failed; liberalism’s other investment scheme, that of currency carry trade investing, such as the EUR/JPY, peaked out on January 2, 2014. The failure of liberalism’s investment schemes on January 8, 2013, puts the nail in the coffin for the liberalism as a paradigm and an age.

Given the death of fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, on October 23, 2013, and the death of fiat wealth, that is World Stocks, VT, on January 2, 2013, and the failure of liberalism’s investment schemes, it is evident that trust in the monetary authority and trust in the economic authority of liberalism’s democratic nation state and banker regime is history, and that liberalism as paradigm and age is been swept away into the dustbin of history, and is being replaced by authoritarianism as both a paradigm and an age.

Liberalism featured economic policies of investment choice and credit stimulus, while authoritarianism features diktat policies of regional governance, and debt servitude schemes of totalitarian collectivism.

Mike Mish Shedlock writes in response to the release of the US Federal Reserve Meeting Notes, Excessive Risk Taking.  A few participants worried about the “incentive for excessive risk-taking in the financial sector”.  I suggest it’s far too late for that worry. The incentive for excessive risk-taking has been operative for years. It is reflected in economic bubbles of all sorts. One only has to open one’s eyes to see them. Fed forecasts are exceptionally wrong at economic turns, as past minutes from 2000 and 2007 show. And here we are again, at yet another 7-year interval, with the Fed unable or unwilling to see the bubbles they created, just as they failed to see the dotcom bubble in 2000 and the housing bubble in 2007. And Lisa Abramowicz tweets How quickly could straightforward junk bonds become distressed? Could weaker covenants be a problem in a few years. I comment that a Minsky moment is at hand, because of years of money manager capitalism.

The new normal weather phenomena is Ice Age Winter, NBC Nightly news reports Big Chill: US gripped by coldest day in decades: It’s below freezing in each of the 50 states, including the Deep South where the cold has already shattered records. And Robert Wenzel posts It has been colder in Chicago than at the South Pole Chicago, reached a new low for the date of minus 16 and  hovered yesterday at 3 degrees, according to the National Weather Service. “Today is a brutal day, and there is no way around it,” said Tom Kines, a meteorologist with AccuWeather. “The South Pole is 6 below. That means places like Chicago, Detroit, Cleveland and Pittsburgh, are colder than the South Pole.”

Nature economist Elaine Meinel Supkis posts Sunspot activity increases, Arctic vortex fades. The North American continent is finally beginning to thaw out from outrageous, historic cold.  ’Polar Vortex’ was blamed as if this were the cause and not the effect of something.  What is warming us is obvious: the sun.  It has gone out of hibernation and we have a good old hot spot spitting energy at us and lo and behold, the polar vortex fades. Nature magazine censored my father’s paper about how the sun isn’t a steady state star but is unstable.  And that this determines how hot things will get and he predicted that the next 20 year solar cycle will be less active than in the recent past and that the mini-Ice Ages like the Maunder Minimum will be more, not less frequent. The lopsided nature of the recent Polar Vortex isn’t due to global warming, it is an artifact of Ice Age cooling.  That is, the outline of this event curiously coincides with the outline of the last Ice Age’s glaciers. There is a 90% chance of a solar storm in the next 24 hours.  This is the peak of the present 20 year solar cycle.  The temperature here on my mountain is going up to 50 degrees F during the solar storm which is nice news due to me being weary of fighting the cold when I do anything at all.  I harp on the fact that global cooling/heating events should concentrate on what happens to North America.  For we are the ones hit the hardest by colder climate change.

On Thursday, January 9, 2014 Volatility, ^VIX, TVIX,VIXY,VIXM, XVZ, traded higher; and the Risk-Off ETN, OFF, manifested bullish engulfing, both evidencing that risk appetite has turned to risk aversion.

Ireland’s Bank, IRE, led Ireland, EIRL, higher.

The BRICS, EEB, were led lower by Brazil Financials, BRAF, Brazil Infrastructure, BRXX, Iron Ore Miner, VALE, and Chinese Financials, CHIX, China Infrastructure, CHXX, and China Industrials, CHII,

The Emerging Markets, EEM, were led lower by the Emerging Market Financials, EMIF.

The Nikkei, NKY, was led lower by Japanese Financials, IX, MTU, SMFG, MFG, and NMR.

Sectors trading higher included Transportation, XTN, such as Major Airlines, DAL, SAVE, and UAL, and Trucking, SWFT, ODFL, SAIA, PTSI, CNW, ABFS, UHAL, and R, Healthcare, PTH, Health Care Providers, IHF, Biotechnology, IBB, and Medical Devices, IHI. US Refiner, VLO, led other US Refiners, MPC, PSX, and HFC, higher.

Sectors trading lower included Small Cap Energy, PSCE, as Bespoke Investment Group Reports The Breakdown of Oil, USO, to strong support. Risk Investing, such as Media, PBS, Consumer Spending Investing, such as Internet Retail, FDN, Nasdaq Internet, PNQI, Global Spending Investing such as Social Media, SOCL, and Global  Trade Outside The US Investing, DNL, such as  Industrial Miners, PICK, Steel, SLX, Metal Manufacturing, XME, Resorts and Casinos, BJK, Semiconductors, SOXX, Industrial Fabrics, MHK, Home Building, XHB, and Timber Producers. WOOD.

Individual stocks trading lower included Steel SLX, AK, PXX, SID, IIIN, MT, X; Metal Manufacturing, XME, SCHN, HAYN, CSTM, WOR; Coal Miners, KOL, JRCC, WLT, ANR, BTU;  Industrial Miners, PICK, ZINC, CLF, SXC, GMO, SLCA, and Copper Miners, COPX, SCCO.

Liberalism’s Dumb Investments, MU, INTC, ALU, MITL, NOK, ARRS, LORL, WDC, STX, seen in this Finviz Screener, traded lower; the fall lower in these currency carry trade investing leaders documents the end of the age of investment choice.

Reuters reports India to seek foreign investment in Indian Railways

On Friday, January 10, 2014,  Nation Investment, EFA, and World Stocks, VT, traded higher, on the trade lower in the Benchmark Interest Rate, ^TNX, which traded lower to close the week at 2.86%.

The Eurozone PIGS, that is Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, as well as Ireland, EIRL, and Austria, EWO, traded to new rally high. German Small Caps, GERJ, Denmark, EDEN, Turkey, TUR, Thailand, THD, Mexico, EWW, Russia Small Caps, ERUS, Brazil Small Caps, EWZS, Indonesia Small Caps, IDXJ, India Small Caps, SCIN, and UK Small Caps, EWUS, traded higher leading World Small Cap Stocks, VSS, and World Small Cap Nation Investment, IFSM, to a new rally high.  European Financials, EUFN, blasted to a new rally high.  Eurozone Debt, EU, traded lower. Thus the ratio of Eurozone Stocks, EZU, relative to Eurozone Debt, EU, EZU:EU, became extreme.

Sweden, EWD, Russia, RSX, Switzerland, EWL, Australia, EWA, New Zealand, ENZL, traded higher, taking Nation Investment, EFA, higher. And Indonesia, IDX, China, YAO, Brazil, EWZ, and India, INP, led the Emerging Markets, EEM, higher

Clean Energy, PBD, Biotechnology, IBB, Pharmaceuticals, PJP, Medical Devices, IHI, Social Media, SOCL, Aerospace and Defense, PPA, and Transportation, XTN, rose to new rally highs. Automobiles, CARZ, traded higher.

Interest Rate Sensitive Stocks, such as Utilities, XLU, Homebuilders, XHB, Design Build And Construct, FLM, US Infrastructure, PKB, traded higher. Building Materials, USG, MAS, EXP, APOG, traded higher.

Alcoa Aluminum, AA, which had rallied strongly into its report, traded strongly lower, taking KALU, lower. Credit Provider Mastercard, MA, traded lower.

Lisa Abramowitz tweets Jupiter Asset Mgmt, JUP.L, plans to start hedging via CDX indexes for the first time due to liquidity concerns in its $3 bln Strategic Bond Fund.

December 2013, and going through early  2014, a number of Retailer, XRT, are headed into the graveyard; these include, WTSL, EXPR, BIG, and GES.

Aggregate Credit, AGG, International Treasury Bonds, BWX, Emerging Market Bonds, EMB, US Government Bonds, GOVT, US 30 Year Government Bonds, EDV, US Ten Year Government Notes, TLT, Short Term Government Bonds, SHY, traded higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded strongly lower to 2.87% as OG Markets post U.S. Treasury 10-Year Yields Testing Key Resistance. The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened, as is seen in the Steepner ETN, STPP, flattening, and trading lower.  Lisa Abramowicz tweets Ben Eisen relates bond fund flows had a stellar pre-NFP week. Biggest inflows since before this taper mess started, per BAML.  Junk bonds, JNK, traded higher, manifesting a spinning top doji candlestick, evidencing the completion of liberalism’s debt trade.

The lollipop hanging man candlestick in the daily chart of Biotechnology, IBB, as well as the same in Call Write Bonds, CWB, communicates the end of the age of investment choice. The weekly chart of Call Write Bonds, CWB, clearly shows the Ben Benanke Put at Jackson Hole, and the Mario Draghi Put of Do Whatever It Takes.  The monthly chart of Call Write Bonds, CWB, shows the power of Inflationism working through liberalism’s dynamos of creditism, corporatism, and globalism.

Silver, SLV, and Gold, GLD, traded higher, taking Silver Miners, SIL, such as Hecla, HL, and Gold Miners, GDX, such as Barrick, ABX, higher, as the US Dollar, $USD, UUP, traded slightly lower.  Emerging Market Currencies, CEW, popped higher. For the month, Gold, GLD, has risen 3.6%. In early January, 2014, of JC’s Buy and Sell Signals gave his buy signal to the gold ETF.

13) …. What kind of economic experience was the QE period for you? An inquiring mind asks, what kind of economic experience was the 2008 to 2013 period for you?

The word economic and the word economics, for me means ethical regard in monetary, employment, and recreation, life experience with another, others, corporations and the state, that is government, as well as the property of those others. Every person acts in dispensation, that is in household administration, of all things, and these actions come from one’s convictions in philosophy or religion, where one’s isms or isms, produce the identity and character of a person.

I am a number of things. I am retired, I am Hebrew (one like Abraham, one who is from the other side), Reformed Christian (one like John McArthur), Restored Christian (one like Witness Lee), and a Dispensationalist (one unlike any other, as I am a leader in the concept of Dispensation Economics). I reside in poverty, yet live in the abundance of the economy of God and lack for nothing. I do not adhere to the Liberation Theory of Pope Francis Ambrose Evans Pritchard writes Liberation Theology is back as Pope Francis holds capitalism to account. Amid accusations of Marxism, Pope Francis has turned the Vatican into the spearhead of radical economic thinking. I do not recommend anything radical. A person is the product of the study bible one reads. I do not read the King James Bible,  I read the New King James John McArthur Study Bible, and the Bibles For America Witness Lee Bible. I recommend things of sound doctrine, such as the Dispensation Economics Manifest, which presents the theory of the economy of God.

I am a believer in Dispensationalism; thus I am the product of the ism of dispensation, that is the administration of Jesus, to complete and mature an individual, by the movement of His Spirit in righteousness, as His unique vessel, in the age of grace and truth, according to the faith of Jesus Christ.

I have knowledge and understanding, that is life experience in and comprehension of both philosophy and religion; I am a New Testament Christian, that is an adherent of the precepts of sound Bible doctrine.

I am a member of the Church; there be but one baptism, one faith, one God, and one tribe.  I was made accepted in The Beloved, meaning that God intervened, and placed me in the honey-be of His Love, that being Jesus Christ. Being of the Tribe of Christ, I know and experience the Love of God. Arnold King writes “People want to feel high self-regard. But your self-regard depends on how you are regarded by others. Ideally, your tribe wants to nurture and protect you, because they love you and admire you. Worst case, your tribe wants to shun and expel you.”

One of the great contributions to understanding economics is the Austrian Economics Business Cycle Theory. Inasmuch as Jesus Christ, opened the first seal of the Scroll of End Time Events on October 23, 2013, He pivoted the World into Kondratieff Winter, that is the final phase of the business cycle.

The time period of 2008 to 2013, came under strong inflationism due to the liberalism’s interventionist monetary policies and economic policies of the US Fed’s QE and the world central banks’s ZIRP, as well as their credit stimulus, and the speculative leveraged investment communities’ schemes of  debt trade investing and currency carry trade investing. It was very much liberalism’s season of Kondratieff Fall. And the rally of June 2013 through December 2013 was liberalism’s terminal phase of investing.

QE and ZIRP, was a paradigm and epoch of regulatory capture. Arnold King writes Housing policy is not about housing. Ben Harris asks, what if we largely replaced the [mortgage interest] deduction with incentives to buy a house, rather than to run up a lot of mortgage debt?Arnold King states No matter how much sense his economic arguments might make, he does not understand the point of housing policy. Lobbyists spend money to capture politicians. Politicians set housing policy to please lobbyists.

And QE and ZIRP, was a paradigm and era of clientelism. Robert Wenzel writes Mitch McConnell and Rand Paul stood with Obama at the announcement of Promise Zones where Government partners with local communities to jumpstart the economy in struggling areas. Mr. Wenzel states These Promise Zones are about nothing but the funding of crony government private partnerships and Obama grassroots organizations and about Federal influence over education, starting at the preschool level.  Barry Grey of WSWS posts Obama’s cheap-labor “promise zone” fraud The zones do not constitute an antipoverty program at all. Rather, like free enterprise zones internationally, they are an inducement to private companies to profit from highly exploited, low-paid labor.

The time period of 2008 to 2013, was for me a time of coming to convictions that have matured me as a person; these include:

An appreciation of the movie, The Matrix. For me there is no choice, rather all things are of God. An   elder once said “God makes all my decisions”. I have been unable to come to that point in life. Through happenstance, I simply know God’s provision, and then come to develop some principles in which I operate in ethical regard for my physical, spiritual and emotional needs, and that of the person and property of another, corporations, and the government. Being of the Reformed perspective and Restored perspective, unlike Neo, in 1999, I did not decide to take the Red Pill, I had it crammed down my throat; it was the only way I could come to know the truth and experience grace. This was at the time I was leaving Washington State to reside in Ketchikan Alaska and Sitka Alaska, where I developed an interest in the English language and Bible concepts.

An appreciation of the danger of psychopaths, in 2008 I moved into the downtown area of Bellingham, and increasingly have had more and more exposure to antisocial individuals, that is psychopaths and sociopaths, to the point where I am now an expert in psychopathy and psychopathic behavior. I have the psychopathic radar on continually, being on the lookout for their social flare, which is an eruption like a solar flare, their rude way, their aggressive way, and even their appearance as a bear, a lion or a leopard. God has made me a fire hydrant for these to piss on. For these, I have a no contact order from God; I must, and I do turn away, from such I withdraw.

An appreciation of the concept that either one be fiat, that is having an identity and experience out of the mandates of philosophy or religion, or one be elect, that is a child of the Living God. Just recently, simply by happenstance, I stumbled upon the writings of Witness Lee, and became a disciple in his teachings on the economy of God, and have applied them to develop the Dispensation Economics Manifest.

An appreciation of the concepts of life, for example the concept of physical exercise; as well as an appreciation of blogs, as these provide concepts in philosophy, religion, and the faith of Jesus Christ.

14) … Summary … Under the household administration of all things economic and political, Jesus Christ is introducing a deflationary bust.  Witness Lee was a prolific writer of Bible commentary who wrote a commentary on 1 Timothy 1:3-7 called The Economy of God. He pointed out that “economy” is the anglicized form of the Greek word oikonomia, which occurs throughout the New Testament (1 Timothy 1:4; Ephesians 1:10; 3:2; 3:9; 1 Corinthians 9:17;). Oikonomia is a compound of two nouns: oikos, which means house, and nomos, which means law. Witness Lee thought of God as an immensely wealthy householder who dispenses His unsearchable riches (Ephesians 3:8) to His people, the members of His household. He does so based on his priorities. What are His priorities? His glory, His kingdom, His love. Nothing is dispensed by God outside of God’s priorities.

The priority of Jesus Christ to install His Kingdom moved Him, on October 23, 2013, to open the first seal of the Scroll of end time events, to release, 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 US Federal Reserve led democratic nation state and banker regime.

It’s as Stephanie Bell posts, The rider on the white horse is God’s first line offensive in the battle to take back planet earth…it’s as simple as that.

Under the impulse of the Rider on the White Horse, 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 a historic economic extinction event, which destroyed the existing regime, and began to PIVOT the world

from central bank interventionism, featuring monetary policies and economic policies of investment choice and central bank credit stimulus and speculative leveraged investment community schemes of carry trade investing and debt trade investing, 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, all of which created capital for corporations to operate, revenue for governments to function, and investment return for the investor, in an environment of an inflationary boom consisting of global economic inflation and economic growth, completing the perfect moral hazard based prosperity …….

to regional statist public private partnership interventionism, featuring diktat policies of regional governance and debt servitude schemes of totalitarian collectivism, 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, where statist vitalizations prevail giving banks and other corporations charter to operate as public private partnerships, to create regional economic security, stability and sustainability, in an environment of a deflationary bust consisting of global economic deflation and economic recession, assuring a complete debt servitude based austerity.

The focus of the paradigm and age of liberalism was on world central bank economic policies and monetary policies of investment choice and credit stimulus, working through the speculative leveraged investment community, to establish maximum return for the investor based upon his risk profile, who was made extinct, just like the wooly mammoth of prehistoric times who got frozen in place by a sudden shift in climate. The investor got wiped out by the trade lower in fiat money, that is Aggregate Credti, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, by the rise in the Benchmark Interest Rate on October 23, 2013, from 2.48%, and by the trade lower in fiat wealth, that is in World Stocks, VT, on January 2, 2014.

Phillip Lane posts in Irish Economy Buti and Mody on Europe. My response to the two authors is that regional framework agreements will be the way forward out of soon coming crisis. These will establish a One Euro Government, that is a European Super State, which will establish regional security, stability and sustainability, out of an inevitable credit collapse and global financial system breakdown.

The bond vigilantes in calling higher in the Benchmark Interest Rate, ^TNX, higher from 2.48%, on October 23, 2013, as well as the failure of debt trade investing and currency carry trade investing on January 2, 2013, were twin extinction events that destroyed the foundation, capstone, and centerpiece of liberalism, that being the investor; and are birthing authoritarianism’s counterpart, the debt serf.

God fully, totally, and utterly terminated liberalism, and commenced authoritarianism, giving it The full constitution of endtime rule, as presented by the Apostle Paul in Revelation 13:1-4.

Now, under the paradigm and age of authoritarianism, the focus of attention is on regional governance monetary, fiscal, banking, and economic policies of regional security, regional stability, and regional sustainability, which integrate not only banks, but all corporations into the government, to establish debt servitude of the debt serf, which comes through the transmission of diktat money. We see this emerging as Mike Mish Shedlock reports on the rising ethic of authoritarian rule Hollande wants to “Get Things Done” by decree, not by passing laws.  And this is seen in the Robert Wenzel pos Mitch McConnell and Rand Paul stood with Obama at the announcement of Promise Zones where Government partners with local communities to jumpstart the economy in struggling areas. Mr. Wenzel relates, These Promise Zones are about nothing but the funding of crony government private partnerships and Obama grassroots organizations and about Federal influence over education, starting at the preschool level.

Five years of liberalism’s money manager capitalism is going to produce authoritarianism’s Minsky moment. This is seen in Bible Prophecy of Revelation 13:3-4, which foretells of Financial Apocalypse, that is a world wide credit bust and financial system breakdown.

Club Med insolvency, that is Portugal, Italy, Greece and Spain, sovereign, corporate, and banking insolvency, are the genesis factors for the establishment of economic policies of diktat in regional governance in each of the world’s ten regions, and schemes of totalitarian collectivism throughout all of mankind’s seven institutions. As a result, fiat money will become increasingly worthless, while diktat money rises in power to direct mankind’s economic activity.

Under liberalism, the democratic nation state banker regime, created seigniorage, that is moneyness, and coined fiat money and fiat wealth through Asset Managers, such as, BLK, WDR, EV, STT, WETF, AMG, IVZ, CNS, AMP, PFG, LM, FNGN, BEN, VOYA, DNB, MORN, BR, and BX, where they endeavored to maximize return for investor; these proved to be quite effective in monetary transmission, as the investor, for the most part, became quite wealthy according to his skills and risk profile.

Creditism, corporatism and globalism were the dynamos of liberalism’s economic activity, whose purpose and focus was for investment return. Economic growth metrics, such as job creation,  rising employment, increasing GDP, are hokum, that is they are exogenous to liberalism’s purpose of providing investment return for the investor based upon one’s risk profile. Monetary transmission under liberalism was quite effective in a five investment areas:

1) Risk Investing, FXR, CHII ,PBS, RZV, PSCI, FPX, PJP, XTN, TAN, ZIV

2) Global Spending Investing, PKB, BJK, IGV, PSCC, SOCL, PPA, CSD, IBB, CARZ, PSCD

3) Global Growth Investing, SOXX, TAN, PICK, IPN, FLM, SLX, WOOD, XHB, RZG, MHK

4) Consumer Spending Investing, PNQI, RXI, IYC, FDN, PBJ, PSCC, IHF, XRT, KXI, PSCD

5) Eurozone Country Investing, EWI, EWG, EFNL, EWN, EDEN, EIRL, GREK, PGAL, EWO, EWP

Credit Bubble Stocks posts NYT: Another worryingly low inflation rate for the EuroZone.

The deflation “mystery”. “The European Central Bank seeks to keep price growth steady at about 2 percent. The situation now, in which the rate of inflation is falling, is known as disinflation. If the situation continues in this direction, Europe could face outright deflation.” The US and EU will probably respond to deflation like Japan, with huge devaluation schemes that do nothing yet trigger unpredictable stock market rallies of 50-100%.

That is an informative post; but I do not see any devaluation scheme at all, that is none whatsoever. Under authoritarianism, in response to a deflatinary bust, leaders will meet in summits to renounce national sovereignty and announce regional framework agreements which provide regional pooled sovereignty to establish the authority for diktat policies of regional governance.

The beast regime, replaces the banker regime, and creates seigniorage, that is moneyness, by minting  money through the word, will and way of regional nannycrats. These overlords coin diktat money through the mandates of statist public private partnerships, and in their mandates of administering and overseeing the factors of production, banking, fiscal spending, commerce and trade, all for establishing regional security, stability, and security, in their role of overseeing the debt serf.

Banks everywhere will be integrated into the government and be known as government banks, or govbanks for short; thus the Excess Reserves, will be captured by the beast regime, and not being released, will not pose an inflationary threat. The Regional Banks, KRE, and the Too Big To Fail Banks, along with greatly downsized Asset Managers, BLK, WDR, EV, STT,WETF, AMG, IVZ, CNS, AMP, PFG, LM, FNGN, BEN, VOYA, DNB, MORN, BR, and BX, will all be made whole and sterilized by integration into the US Federal Reserve. The European Financials, EUFN, such as Banco Santander, SAN, will be integrated into the ECB in Frankfurt, where all lending will be supervised and banks overseen. Such will be the mechanism of authoritarianism’s scheme of totalitarian collectivism.

Regionalism is the singular dynamo of economic activity under authoritarianism. Monetary transmission will become quite effective for a number of people, as bible prophecy reveals “they worshiped and followed after the beast, saying who can make war against it”.

On October 23, 2013, Jesus Christ changed the course of human history, by opening the first seal on the Scroll of end time events, and releasing the First Horseman of the Apocalypse, Revelation 6:1-2. According to dispensationalism, Ephesians 1:10, He completed the paradigm and age of liberalism, and PIVOTED the world into that of authoritarianism, where interventionism moves from corporations to public private partnerships.

The US Federal Reserve is neither Federal nor does it have very much in the way of reserves; it has mostly Distressed Securities, that is credit financial instruments, taken in under QE 1, which trade like those in Fidelity’s FAGIX mutual fund, Excess Reserves, Mortgage Backed Bonds, and foreign currencies, taken in under swap agreements; and it has only a small amount of gold.

On October 23, 2013, corporations, such as The Creature From Jekyll Island were relegated to the dustbin of history. They were either outright destroyed, or were In Prometheus fashion, were refashioned as “Sometimes to create, one must first destroy”; their constitution, that is their makeup, was changed to become regional in nature. The Eccles Building is still there, but there is a new monster inside, that being the Beast Regime, Revelation 13:1-4, The Harlot, Revelation 17:1-5, The Two Feet and Ten Toed Kingdom Of Iron Diktat And Clay Democracy, Daniel 2:25-45, and Daniel’s Monster, Daniel 7:7.

Under liberalism bankers, corporations, government, entrepreneurs, and investors of nation state democracies, having economic action in policies of investment choice and credit stimulus, were the legislators of economic value, and the legislators of economic life, that shaped one’s means and one’s ends. The investor was the centerpiece, capstone, and foundation of economic action. The answer as to “why am I here”, was “I am an investor”; and the answer as to “what am I to do” was “to live within fiat money to maximize investment return according to my risk profile”. One’s mission was to understand and live with a financial risk reward construct.

In contrast, under authoritarianism, currency traders, bond vigilantes, and nannycrats, in policies of regional governance public-private partnerships, are the legislators of economic value, and the legislators of economic life, that shape one’s means and one’s ends. The debt serf is the centerpiece, capstone and foundation of economic action. The answer as to “why am I here”, is “I am an debt serf”; and the answer as to “what am I to do” is “to have life experience and economic action in the mandates of regional governance”. One’s mission is to understand and live within a regional panopticon of totalitarian collectivism.

Obamacare is at the leading edge of authoritarianism replacing liberalism. Obamacare is literally destroying America’s system of health care. Now Freedom Zones, another Obama nannycrat mandate of diktat money, is establishing economic acton.  Robert Wenzel posts Mitch McConnell and Rand Paul stood with Obama at the announcement of Promise Zones where Government partners with local communities to jumpstart the economy in struggling areas. Mr Wenzel relates, These Promise Zones are about nothing but the funding of crony government private partnerships and Obama grassroots organizations and about Federal influence over education, starting at the preschool level.

There was a time beginning in 1776, that Jesus Christ provided a Bill of Rights, a Constitution, and Amendments to that Constitution, that provided liberty, which upheld private property. Money was coined by Congress, but by Constitutional rule of law was to be only a medium of exchange. One was a citizen of a republic of a united states of America, where one had freedom of economic action.

An inquiring mind asks, what is money. 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 serf and his debt servitude.

Under liberalism, through democratic nation state interventionism, fiat money was established through corporatism (which provided security), and increased in value through creditism (which provided a swell in the supply of money). The banker regime coined fiat money largely under corporations, such as Asset Managers like Blackstone and Blackrock and Eaton Vance, and created the investor, where moral hazard was established to maximize investment return. One carried the mark of liberalism’s identity, such as a passcode, or corporate numbered account card. Wealth was fiat and the reward of successful investing, and was nothing of commodity, this being seen in the ratio of World Stocks, VT, relative to Gold, GLD, VT:GLD. The price of money, that being the Interest Rate on the US Ten Year Note, $TNX, rising to 2.99%, drove down the price of Gold, $GOLD, to $1200.

Now under authoritarianism, through regional interventionism, diktat money is being established through the singular dynamo of regionalism, which through the full constitution of endtime rule, as presented by the Apostle Paul in Revelation 13:1-4, provides regional security, and appropriates all property to establish regional property. The beast regime coins diktat money under the mandate of public private partnerships, such as Community Health Clinics and Freedom Zones, and creates the debt serf, where debt servitude is established and assured. One carries the mark of authoritarianism’s identity, such as a benefit enrollment card, or a member identity card. Poverty is mandate and is the provision of compliance. Physical possession of gold, which is continually rising in price from $1,200,  since December 1, 2013, and diktat are the only two forms of sustainable wealth.

Through the dispensation of Christ, that is the administration of all things economic and political for the fulfillment and perfection of every age, a concept developed by the Apostle Paul in Ephesians 1:10, money comes from a sovereign and a seignior, and carries political rule and economic rule, which govern through economic systems such as Crony Capitalism, European Socialism, Grek Socialism, Chinese Communism, Russian Communism, and Clientelism which can coexist under any of the systems. The world central banks monetary policies and economic policies of investment choice and credit stimulus together with the speculative leveraged investment community schemes of debt trade investing and currency carry trade investing, developed the US Dollar Hegemonic Empire, based upon the Milton Friedman Free To Choose floating currency regime, where the US Dollar served as the International Reserve Currency, up until October 23, 2013, when the bond vigilantes in calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, PIVOTED the world from paradigm and age of liberalism, into that of authoritarianism.

Trust existed in fiat money; this trust established ever increasing value in fiat money, up until October 23, when Jesus Christ, released the First Horseman of the Apocalypse, Revelation 6:1-2, to enable the bond vigilantes to call the Benchmark Interest Rate, ^TNX, higher from 2.48%, as the monetary policies and economic policies of investment choice and credit stimulus, crossed the rubicon of sound monetary policy and made “money good” investments bad.  Increasing distrust coming from investors derisking out of stock investments, and deleveraging out of credit and currency investments, will increasingly destroy the value of fiat wealth, VT, to the point where leaders will meet in summits to renounce national sovereignty, and announce regional pooled sovereignty, where new monetary policies and new economic policies in diktat of regional governance, and schemes of debt servitude in totalitarian collectivism will emerge that establish regional security, stability, and sustainability.

Under liberalism, economic life centered around the investor. The dynamoes of creditism, corporatism, and globalism, empowered economic action. US Federal Reserve and investment banker POMO gave capitalist vitalization to investing and coined fiat money. Also the GSEs, and Asset Managers through a number of means, such as the securitization of debt by Mortgage REITS, the provision of margin credit, the provision of ETFs, and the provision of debt trade investing opportunities in real estate, coined fiat money. Depending on the skill and risk profile of the investor, fiat wealth was produced.

There has been no sound commodity money system; it was all a racket of increasing moral hazard activity; that is a ponzi scheme of money manager capitalism, resulting in a crack up boom, all for the purpose of investment return for the investor.  This is seen in Jesse’s article The Recovery:  Corporatism, which presents the chart of corporate profits after tax vs. real household income.

Money is the means of economic experience; money transmits economic experience. I went to Metro State College in Denver and graduated with a degree in accounting; and beginning after 1971, for a while was a cost accountant in the manufacturing and mining industries. One employer, having extractive talent, came from Europe. It obtained money from banks in Japan and via currency carry trade investing, explored for gold and silver in the Colorado rockies; but never found the motherload as all the precious metals were extracted in the 1800s; it lost tens of millions of dollars; and left the United States. The employer’s debt trade investing and currency carry trade investing created a fiat money moral hazard based prosperity.

Liberalisms twin schemes have enabled the savvy investor to make a great deal of money; investment return from both and selling Silver Standard Resources Inc, SSRI, have truly been stellar. And beginning in June 2013, the rally in European Financials and the Eurozone Nations, has provided great investment return.

I didn’t read Murray Rothbard, the Father of Libertarianism; I did not want liberty. Instead I read Milton Friedman, the Father of Liberalism; he set me free to choose. I could have saved financially and had experience in fiat wealth. But instead, fiat money enabled me to have libertine life experience in sporting activities year round. Being total free, I bought a car and a boat; in the winter I snow skied, and in the summer I water skied; In 1999, I came to life in Christ and spent a decade reading Reformed Christianity author John McArthur, and recently, I began reading Restored Christianity author Witness Lee. I began to blog with the 1st Greek bailout of May 2010, and for the last two and one half years have come to a number of economic insights.

According to Maastricht treaty law there was to be no bailout, but the Father of Authoritarianism, Herman van Rompuy, declared there would be no default, and instituted Troika technocratic rule over Greece. The EU Finance ministers declared a framework agreement which coined authoritarianism’s diktat money, which transmits economic experience in austerity enforcing poverty.

The debt component of money will soon implode destroying the very foundation and the experience of living. Society’s new foundation is the economic policy of diktat in regional governance, and society’s new experience in living is schemes of debt servitude in totalitarian collectivism.

Under liberalism bankers, corporations, government, entrepreneurs, and investors of nation state democracies, having economic action in policies of investment choice and credit stimulus, were the legislators of economic value, and the legislators of economic life, that shaped one’s means and one’s ends. Under liberalism, the investor was the centerpiece, capstone, and foundation of economic action; these had experience in investment choice that provided investment return and established a moral hazard based prosperity and grew wealth.

Diktat money is unique in that it establishes a claim on society. In contrast to liberalism, under authoritarianism, currency traders, bond vigilantes, and nannycrats, having economic action in economic policies of regional governance public-private partnerships and debt servitude schemes, are the legislators of economic value, and the legislators of economic life, that shape one’s means and one’s ends. Under authoritarianism, the debt serf is the centerpiece, capstone and foundation of economic action; these have experience in compliance with mandates that enforce debt servitude, establish austerity and enforce poverty. The beast regime will apply the debts of liberalism, that cannot be repaid, to every man, woman and child on planet earth.

Francesco Saraceno posts Mario Draghi is a Lonely Man. I just read an interesting piece by Nicolò Cavalli on the ECB and deflationary risks in the eurozone. The piece is in Italian, but here is a quick summary:

  • Persisting high unemployment, coupled with inflation well below the 2% target, put deflation at the top of the list of ECB priorities.

  • Mario Draghi was adamant that monetary policy will remain loose for the foreseeable horizon.

  • As we are in a liquidity trap, the effect of quantitative easing on economic activity has been limited (in the US, UK and EMU alike).

Yhen Nicolò quotes studies on quantitative easing in the UK, and notices that, like the Bank of England, the ECB faces additional difficulties, linked to the distributive effects of accommodating monetary policy:

  • Liquidity injections inflate asset prices, thus increasing financial wealth, and the value of large public companies.

  • Higher asset prices increase the opportunity costs of lending for financial institutions, that find it more convenient to invest on stock markets. This perpetuates the credit crunch.

  • Finally, low economic activity and asset price inflation depress investment, productivity and wages, thus feeding the vicious circle of deflation

Nicolò concludes that debt monetization seems to be the only way out for the ECB. I agree, but I don’t want to focus on this.

Through Yhen Nicolò presentation, we see Economic Destructionism at work producing economic deflation and economic recession; distributive effects of QE and Global ZIRP produces low economic activity in the two speed Europe, as economic activity has flown out of the PIGS and into Germany.

There have several Safehaven.com authors writing on investment flight and capital flight out of low productivity nations into high productivity nations in the Eurozone, causing a downward spiraling economic deflation and economic recession, which will contribute to the soon coming Financial Apocalypse, that is the Minsky moment, as investors unwind from debt trade investing and currency carry trade investing.

The tail risk of economic stimulus Reuters reports Trio of weaker data reports takes shine off UK recovery. And The Guardian posts Manufacturing and construction figures show fragility of economic recovery. Latest ONS figures reveal that Britain’s economy is increasingly unbalanced and continues to depend on stimulus.

Mr Saraceno goes on to relate All seems at stake here The ways we think about our economy, and the institutions we built over time to govern our complex union. Nothing seems to work, and we desperately lack leaders with a vision.

Most assuredly, leaders will be coming forth with a vision, that of regional integration; out of waves of sovereign, banking, and corporate insolvency, the new order of authoritarianism will emerge as leaders meet in summits to renounce national sovereignty, and announce regional pooled sovereignty they will meet in summits. The dynamo of regionalism will be powering up the beast, such was fated from eternity past.

15) … The good news in all of this is that Jesus Christ is two fold.

First, He in dispensation, a concept provided by the Apostle Paul in Ephesians 1:10, is purifying and refining His person, and pouring Himself into His vessel, and preparing His elect to have pure garments for His advent; these keep God’s commandments and maintain their testimony for Jesus, as presented in Revelation 3:8. DLWyer writes Obedience is a central part of endurance in the warfare between good and evil, between God and Satan. Keeping in mind, the Titles of Christ, helps one be obedient to the Lord.

Second, He is coming to eliminate the Double Entry Bookkeeping System, with its ledger of debits and credits, which created the debtor and the creditor, by ruling from Jerusalem in His Millennial Kingdom, where there will be economic prosperity, with overflowing abundance, as Dr. J. Dwight Pentecost writes  Isaiah 4:1, 35:1-2, 35:7, 30:23-25, 62:8-9, 65:21-23, Jeremiah 31:5-12, Ezekiel 34:26, 36:29-30, Joel 2:21-27, Amos 9:13-14, Micah 4:1-4, Zechariah 8:11-12, 9:16-17)

I conclude with a word of encouragement from Doug Addison who writes Release and Rest. God showed me that it is time to get aligned for the new time. There will be a lot of movement, relocation, job changes etc. over the next few months. It is important to be geographically positioned. Listen to God speak to you and follow peace in your heart about this. During the months of October through December, things will become easier. I had a visitation from Jesus on August 2nd and He emphasized two things: the door to the past has been closed and sealed and the new season we are moving into will be one of rest. That means getting more done with less effort. It is going to be worth it for those who have suffered. Don’t give up!

An Epic Reversal In Fiat Wealth Commenced January 2, 2013

January 4, 2014

This blog post is available in Google Documents form posted here

1) … Jesus Christ acting in dispensation, that is the administration of all things economic and political, a concept presented by the Apostle Paul in Ephesians 1:10, affected an epic reversal in fiat wealth on Thursday January 2, 2013.

He fully PIVOTED the world from the paradigm and age of liberalism, into that of authoritarianism, on the beginning of the death of fiat money, as investors derisked out of stocks and deleveraged out of credit and currencies, on fears that the world central banks monetary policies of investment choice and credit stimulus, have crossed the rubicon of sound monetary policy, and have made “money good” investments bad.

Doug Noland posts The year 2013 saw record stock prices, rising home prices, record Household Net Worth, lower unemployment and an improved economic backdrop – all in the face of slower system Credit growth. How much of this was the consequence of the Fed’s $1.0 TN injection of new “money” directly into the financial markets? I’m convinced it would be a much different world without QE3. Moreover, the Fed’s extra Trillion had unappreciated deleterious effects, notably by spurring “terminal phase” excess in securities markets

The terminal phase in the securities market reached its zenith on January 2, 2013, and has entered the collapse phase, as Liberalism’s five year enduring bull stock market, turned to a bear stock stock market, as Nation Investment, EFA, -1.8%, led World Stocks, VT, -1.5%, and Global Financials, IXG, -0.9%, lower. Now with this turn lower in fiat wealth, the world has PIVOTED fully from the paradigm and age of liberalism into that of authoritarianism.

Evidence of the epic change in fiat wealth investing, is seen in Industrials, XLI, trading 1.4%, lower, and Transports, XTN, trading 0.7% lower, establishing Dow Theory evidence that indeed a bear market has commenced; this seen in Railroads, UNP, KSU, CNI, CSX, NSC, CP, traded 1.5% lower, and Trucking, SWFT, ODFL ,SAIA, PTSI, CNW, ABFS ,UHAL, R, traded 1.7% lower.

Greed has turned to fear. Investors derisked out of equities, and deleveraged out of credit and currencies, as is seen in the Market Off ETN, OFF, and Volatility, XVZ, TVIX, VIXY, VIXM, trading higher, reflecting investors fear that the monetary policies of the world central banks’ monetary policies of investment choice and credit stimulus have crossed the rubicon of sound monetary policy, and have made “money good” investments bad, and no longer support global growth and trade.

Liberalism’s dynamos of creditism, corporatism, and globalism, no longer support inflationism, as the bond vigilantes in calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, have not only begun to destroy fiat money, that is Aggregate Credit, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, and are now finally beginning to destroy fiat wealth, World Stocks, VT, as well.  The Means of Economic Destructionism, that is the Benchmark Interest Rate, ^TNX, rising to 2.99%, has fully PIVOTED the world out of the paradigm and age of liberalism, into that of authoritarianism.

Global economic deflation and economic recession, characterized by falling GDP, and a whole host of other economic metrics, such as credit contractions, are the tail risk of monetary stimulus and credit easing.

Authoritarianism’s singular dynamo of regionalism in establishing regional security, stability, and sustainability, will be active in creating destructionism, as the world endures diktat money and poverty as Ambrose Evans Pritchard of the Telegraph writes IMF paper warns of savings tax  as West’s debt hits 200-year high. Debt burdens in developed nations have become extreme by any historical measure and will require a wave of haircuts, warns IMF paper.

Authoritarianism is characterized by diktat money which incorporates new taxes which work through public private partnerships, to produce totalitarian collectivism. Market Sanity posts Ron Paul on ObamaCare: It’s all a tax; and Fox News reports ObamaCare brings new taxes, fees for 2014.

World Socialist Fred Mazelis posts in WSWS Bill Clinton administers oath of office to New York’s new mayor, Bill de Blasio The new mayor, who cast his campaign as a crusade for equality, was sworn in by an ex-president whose policies were key to the record rise in inequality over the past two decades.

Totalitarian collectivism of the beast regime of Revelation 13:1-4, is seen in the Inaugural speech of Bill de Blasio, who is sworn in by Bill Clinton, WNYC posts “We are called to put an end to economic and social inequalities that threaten to unravel the city we love. We are called to put an end to economic and social inequalities that threaten to unravel the city we love. And so today, we commit to a new progressive direction in New York. And that same progressive impulse has written our city’s history. It’s in our DNA. it was New Yorkers who challenged the status quo, who blazed a trail of progressive reform and political action, who took on the elite, who stood up to say that social and economic justice will start here and will start now. So let me be clear. When I said we would take dead aim at the Tale of Two Cities, I meant it. And we will do it. I will honor the faith and trust you have placed in me. And we will give life to the hope of so many in our city. We will succeed as One City. We know this won’t be easy; It will require all that we can muster. And it won’t be accomplished only by me; It will be accomplished by all of us, those of us here today, and millions of everyday New Yorkers in every corner of our city. You must continue to make your voices heard. You must be at the center of this debate. And our work begins now”  Economic Policy Journal highlights “We will ask the very wealth to pay a little more in taxes so that we can offer full-day universal pre-K and after school programs for every middle school student. And when we say “a little more,” we can rightly emphasize the “little.” Those earning between $500,000 and one million dollars a year, for instance, would see their taxes increase by an average of $973 a year.”

A global economic recession will soon commence as investors continue to derisk out of equities, and continue to deleverage out of credit and currencies; money manager capitalism is about to result in another dreadful fiat wealth meltdown, and deflationary economic bust, just like in 2008. Zero Hedge reports Half of loans issued in 2013 were Covenant Lite, communicating money manager capitalism, which can only result in a very horrific economic bust.

Doug Noland posts his thoughts on soon coming economic deflation, Our central bank’s expanding policy experiment has more recently included unemployment and inflation targets. It is commonly believed that monetary policy can readily impact employment and consumer prices. I would contend that it is certainly within the Fed’s power to manipulate interest rates lower and inject liquidity into the securities markets. Last year provided a historic example of how the Fed can indeed freely create and deploy “money.” It is, however, within the realm of (often whimsical) “animal spirits” to determine the effects upon financial markets. And, yes, this loosening of financial conditions at least in the short-run does stimulate the markets and spending. As we’ve witnessed, extreme monetary stimulus can pull the unemployment rate somewhat lower.

But how about consumer prices? I actually believe there is a major misperception when it comes to the power of contemporary central banks to dictate an aggregate price level, a misconception with potentially important implications for securities prices. In contrast to the traditional central bank printing press that distributed paper currency throughout the real economy (generally raising prices), the contemporary electronic printing press injects liquidity directly into securities markets. The paramount inflationary impact is on securities prices and issuance

Details of financial market trading on January 2, 2013, reveals the epic pivot from bull market to bear market. A Finviz portfolio of Risk Averse ETFs, STPP, HDGE, XVZ, OFF, JGBS, EUO, HYHG, SAGG, SLV, GLD, for the most part traded higher.

Nation Investment, EFA, -1.8%; nations trading lower included

Thailand, THD -9.0

South Korea, EWY -4.7

India, IPN -4.1, SMIN, -3.5

Emerging Markets, EEM -3.8

Turkey, TUR -3.7

Russia, RSX -3.6, ERUS, -3.4

Brazil, EWZ -3.3, EWZS, -3.9

Indonesia, IDX -3.3, IDXJ, -3.5

Germany, EWG -3.2 Open Europe posts Destatis: Federal Statistical Office Spiegel Handelsblatt The German Federal Statistical Office announced on Thursday that the number of people employed in Germany reached a new record-high of 41.8 million in 2013 – an increase of 0.6%.

Spain, EWP -2.8

Finland, EFNL -2.7

Mexico, EWW -2.6

Sweden, EWD -2.6

Switzerland, EWL -2.5

Taiwan, EWT -2.5

Malaysia, EWM -2.5

China, YAO -2.5

The Nikkei, NKY -2.5

The Eurozone, EZU -2.4

World Stocks, VT, -1.5%; world sectors trading lower included

Emerging Market Infrastructure, EMIF -2.3

Design Build, FLM -2.2

Shipping, SEA -2.1

Automobiles, CARZ -2.0

Small Cap Pure Growth, RZG -1.9, includes stocks such as ROLL, JBT, MEAS, HEES, SNX, NNBR, RFIL, DXPE, PKOH

Steel, SLX -1.9

Global Growth, DNL, -1.8

Timber Producers, WOOD -1.7

Consumer Staples, KXI -1.7

Small Cap Consumer Staples, PSCC -1.6

Small Cap Industrial, PSCI -1.5

Small Cap Consumer Discretionary, PSCD -1.5

Regional Banks, KRE, -1.5, includes banks such as HBAN, SNV, FIBK, SIVB, OZRK, GBCI, PACW, FFIN, UCBI

Global Industrial Producers FXR -1.5

Global Industrial Miners, PICK -1.4

Global Industrials, IPN -1.4

Industrials, XLI -1.4

Semiconductors, SOXX -1.4

Aerospace, PPA -1.3

Spin Offs, CSD -1.3

US Infrastructure, PKB -1.2

Nasdaq Internet, PNQI -1.1

Global Financials, IXG, -0.9%; banks trading lower included

Argentina Banks, BFR, -4.6, GGAL, -4.3, and BBVA, -3.7

Korea Banks, SHG -4.2, KB -2.9, WF, -1.8

India Banks, EPI -4.1

Chinese Banks, CHIX -3.2

Brazil Banks, BRAF -2.9

European Banks, EUFN -2.6, includes banks DB -3.3, SAN, -3.3, CS, -3.6, UBS, -3.3

Emerging Market Financials, EMFN -2.1

Asset Managers, ASMA, -1.2

Investment Bankers, KCE, -1.1

Yield bearing sectors trading lower included

Global Telecom, IST -2.3%

Global Real Estate, DRW -2.1

Global Utilities, DBU -2.1

Leveraged Buyouts, PSP -1.6; Lisa Abramowitz tweets Sales of CLOs, which helped finance some of the biggest leveraged buyouts in history, reached $82 bln last year, most since ’07.

Utilities, XLU -1.5, includes electric utilities CNP, AES, D, LNT, and NEE,

US Energy Partnerships, EMLP -1.2

Energy Partnerships, AMJ -1.2

Dividend Payers, DTN -1.1

Energy sectors trading lower included Small Cap Energy, PSCE -2.2% and Energy Production, XOP -2.1; and Energy Service, OIH 1.6, on a lower price of Oil, USO.

Liberalism’s peak fiat wealth is seen in Sotheby’s, BID, 500% rise in the last five years, reflecting risk appetite, and the seigniorage of monetary stimulus, and risk-on investing, produced by the sovereignty of the leveraged speculative investment community, and democratic nation state banker regime, in a riskless trade, reflecting the world central banks policies of investment choice and credit stimulus of Global ZIRP, working through schemes of the debt trade investing and the currency carry trade investing. Most definitely Sothebys, BID, is a retail specialty organization for the wealthy, it is not Ross Stores, ROST, nor is it Wal-Mart, WMT, that is retail stores for the poor.  Trust in the monetary authority of the Speculative Leverage Investment Community, produced great wealth.

Gold Miners, GDX, +4.2%, as Gold, GLD, rose, 1.6%; and Silver Miners, SIL, +3.7%, as Silver, SLV, rose 2.9%.

Fiat Money, consisting of Aggregate Credit, AGG, and the Major World Currencies, DBV, and Emerging Market Currencies, CEW, continued to die.

Aggregate Credit, AGG, traded slightly higher, on the trade higher in US Government Bonds, GOVT, such as SHY, IEI, IEF, TLT,  EDV, ZROZ, as the Benchmark Interest Rate, ^TNX, traded slightly lower to 2.99%, as other Credit Sectors traded lower; these included Junk Bonds, JNK, Eurozone Credit, EU, Global High Yield Debt Outside the US, HYXU, International Corporate Bonds, PICB, Global Treasury Debt, BWX, Emerging Market Local Currency Bond, EMLC.

The US Dollar, $USD, UUP, traded higher, as fiat money continued to die. The Japanese Yen, FXY, traded higher; while the Major World Currencies, DBV, such as the Swiss Franc, FXF, the Swedish Krona, FXS, the British Pound Sterling, FXB, the Canadian Dollar, FXA, and the Australian Dollar, FXA, as well as the Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, and the Indian Rupe, ICN, traded lower, reflecting that the on going selling of currencies by currency traders, as the bond vigilantes have been continually calling the Benchmark Interest Rate, ^TNX, higher from 2.48%, on October 23, 2013, to its close today January 2, 2013 at 2.99%.

The trade lower in World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, on Thursday, January 2, 2013, marked a historic and pivotal event in mankind’s history. Fiat wealth has started to die, as fiat money, both credit, and currencies, traded lower from rally highs, reflecting the bond vigilantes success in calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%. A case in point is the Euro, FXE, trading lower from 136 to 135; and the British Pound Sterling, FXB, from 164 to 163.

Currencies are no longer floating, they are sinking, as investors no longer trust in the monetary authority of the world central banks to provide profitable investment return and support Global Growth and Trade, DNL; the awesome growth in asset values of US Refiners, VLO, MPC, PSX, HFC, seen in ongoing Yahoo Finance Chart, is over, through, finished and done.  Furthermore, US Infrastructure Investments, PKB, seen in their Finviz Screener,  can no longer be profitable.

Jesus Christ, in opening the First Seal of the Scroll of End Time Events, and releasing The Rider on the White Horse, seen in Revelation 6:1-2, on October 23, 2013, and enabling the bond vigilantes to begin calling the Benchmark Interest Rate, ^TNX, higher from 2.48%, produced an extinction event, that terminated the paradigm and age of liberalism, and thus terminated the investor and all things related to the investor.

The first to go extinct were investors in the Emerging Markets, EEM, specifically Turkey, TUR, Thailand, THD, Philippines, EPHE, Indonesia, IDX, Argentina, ARGT, Australia, EWA, Singapore, EWS, as well as in Major Markets of South Korea, EWY, New Zealand, ENZL, as well as Industrial Miners, PICK, Utilities, XLU,  Investors in Emerging Market Financials, EMFN, and Emerging Market Mining, EMMT, such as ACH, as well Agricultural Commodities, SOIL, are like the woolly mammoth of prehistoric times, frozen in place. All of these are global growth and trade sensitive, or are interest rate sensitive, or have trade imbalances. These are the first victims of the First Horseman of the Apocalypse, who is going out to conquer all of liberalism’s authority; its just as John The Revelator says, a crown was given to him, and he went out conquering and to conquer.

The Creature from Jekyll Island, is gone forever, and its replacement, the Fierce Monster of Daniel 7:7, is rising to rule the world; when it is done with its interventionism and destructionism, all of liberalism’s prosperity will be reduce to rubble.

With the US Dollar, $USD, UUP, trading higher from its October 23, 2013, value of 79.25 to its January 2, 2013, value of 80.75, the world’s economic activity is no longer based on the Milton Friedman Floating Regime. The world has PIVOTED to the Beast Regime of Revelation 13:1-4, where economic activity comes from diktat policies of regional governance, and personal life experience is found in debt servitude schemes of totalitarian collectivism.

Through debt deflation at the hands of the bond vigilantes, and competitive currency devaluation at the hands of the currency traders, investors are beginning to derisk out of stocks.

In the new normal, that is in the current deflationary environment, fiat money is history. The fiat currency system is dying, terminating liberalism. Diktat money and the diktat money system is rising, establishing authoritarianism as the paradigm for political experience and economic life.

I encourage a read of the Dispensation Economics Manifest which presents Fifteen Corollaries, that is Fifteen New Things, are coming through the Economy of God

Liberalism’s schemes of investing, sometimes called the spigots of investment liquidity, the debt trade, and the currency carry trade, no longer provide investment funding. Finviz reports Junk Bonds, JNK, traded 0.07% lower. And Action Forex reports the EUR/JPY, seen in ongoing Yahoo Finance Chart, traded unchanged at 144.79; but traded strongly lower after closing. And Action Forex also reports the USD/JPY, seen in ongoing Yahoo Finance Chart, traded unchanged at 105.29; but also traded strongly lower after closing.

Of note, Commodities, DBC, traded parabolically lower, with Agricultural Commodities, RJA, such as Corn, CORN, and Wheat, WEAT, trading strongly lower; and with Oil, USO, and Unleaded Gas, UGA, and Base Metals, DBB, trading lower.

In contrast to other commodities, Gold, GLD, and Silver, SLV, traded higher, taking Gold Miners, GDX, and Silver Miners, SLV, higher.

Investors had been long stocks and short gold, that has reversed, as is seen in the chart of VT:GLD, trading lower in value; the implication is that the investor should take profits, and dollar cost average an investment in the physical possession of gold bullion.

In the age of authoritarianism, there will be only two forms of sustainable wealth, these being nannycrat diktat and the possession of gold bullion and silver bullion. Market Sanity posts Marc Faber: Time to get back into gold?

2) … Noteworthy news items.

Bloomberg reports Indian Rupee falls from rally high as Manufacturing PMI drops.  India’s rupee fell from the highest level in two weeks as a drop in a manufacturing gauge sparked concerns about growth in Asia’s third-largest economy. A purchasing managers’ index released by HSBC Holdings Plc and Markit Economics was at 50.7 in December, lower than November’s 51.3.

Bloomberg reports India Leader Singh to step down after vote as Gandhi rises.

Reuters reports Stung by Curbs, Indian iron ore companies throw in towel.

Bloomberg reports Euro falls versus Dollar on bets rally is overdone; Real drops The yen gained after dropping to the lowest level since 2008 against the dollar as Bank of Japan Governor Haruhiko Kuroda said policy makers will continue stimulus until inflation stabilizes at 2 percent. The euro dropped versus most major peers a day after Latvia became the currency bloc’s 18th member. Brazil’s real declined to a four-month low and the Turkish lira weakened to a record

Rebecca Clancy and Denise Roland of The Telegraph report French borrowing costs rising at ‘worrying’ rate. France’s borrowing costs continued to rise as latest figures revealed the manufacturing sector underperformed even Greece. And The Telegraph reports French car market in 2013 should be forgotten. Car makers sold just 1.79m vehicles in France last year, the worst performance in 15 years.

Dietmar Henning of WSWS posts New German defence minister makes Christmas visit to Afghanistan The new German defence minister used a visit to troops in Afghanistan to launch a PR campaign in support of the German army and its future operations.

Johannes Stern of WSWS posts Berlin Senate passes new austerity budget The two-year budget for 2014/2015, the social democratic-conservative Senate in Berlin is paving the way for further austerity in coming years.

Reuters reports Hyundai, Kia face fading growth as currency tides buoy Japan rivals.

Jeff Lusanne of WSWS reports 6,000 Chicago workers lose jobs in Dominick’s grocery chain closure. Thousands of grocery store workers lost their jobs when Dominick’s closed 72 stores on December 28.

Business Insider posts on weather phenomena and the new normal of Ice Age Winter  Atmospheric pressure has entered bomb territory and now it’s about to get insanely cold.

All Alabama reports Up to 700 International Paper workers to lose jobs next month during 2nd round of layoffs.

Jeff Lusanne of WSWS posts North Dakota train explosion raises questions about oil transport safety

The second large explosion of crude oil being shipped by rail from the North Dakota oilfields shows that significant risks continue to go unaddressed by the industry or regulators.

3) … Dispensationalism, comes from the teaching of the Apostle Paul in Ephesians 1:10, and  competes with libertarianism, socialism, Keynesianism, Judaism, Roman Catholicism, conservatism, and a whole host of other processes for the life experience of individuals.

I suggest that one consider the concept of what constitutes authority as presented in following two reports, the first from Economic Policy Journal, and the second from Open Europe.

Economic Policy Journal posts Ludwig von Mises on Hayek’s “The Constitution of Liberty” .  Hayek has enlarged and substantiated his ideas in a comprehensive treatise, The Constitution of Liberty (University of Chicago Press, 1960). In the first two parts of this book the author provides a brilliant exposition of the meaning of liberty and the creative powers of a free civilization. Endorsing the famous definition that describes liberty as the rule of laws and not of men, he analyzes the constitutional and legal foundations of a commonwealth of free citizens. He contrasts the two schemes of society’s social and political organization, government by the people (representative government), based upon legality, and government by the discretionary power of an authoritarian ruler or ruling clique, an Obrigkeit as the Germans used to call it. Fully appreciating the moral, practical, and material superiority of the former, he shows in detail what the legal requirements of such a state of affairs are, and what has to be done in order to make it work and to defend it against the machinations of its foes.

Open Europe posts Open Europe business campaign Telegraph BBC Today Programme Times Times: Leader Telegraph: Oborne In an interview with the Times, former Defence Minister Liam Fox has said that “loosening” Britain’s ties with Europe was vital in winning back the trust of voters. “We are likely to see across Europe nationalist parties and parties on the political extremes doing well, because [voters] believe they have been sold out by the traditional mainstream parties,” he said. Writing in the Telegraph, Peter Oborne argues that “The Left and Right can disagree – honourably so – on many great issues. But surely both sides of the ideological divide can accept that democracy is still worth fighting for, and that the common enemy has become the European Union.”

Dispensationalism communicates that history is separated into epochs, that is time periods, and that Jesus Christ, being sovereign, and having all authority, and having a name above all other names, acts in the economy of God, for the maturing, completion and perfection of each age and all things therein; and that while there is a unique experience in the paradigm of each era; there is a flow of experience that ties all ages together.

Dispensationalism presents that authority, both political and economic, does not now, nor has it ever existed in natural law. Furthermore, authority now longer resides in democracy; but now Obrigkeit, as the Germans say, resides in beast regime’s policies of diktat in regional governance in all of the world’s ten regions, and has effect in schemes of debt servitude in totalitarian collectivism in each of the world’s seven institutions, as presented by the Apostle John in The constitution of endtime rule, Revelation 13:1-4. The only rule of law that exists under authoritarianism is the diktat of nannycrats, and the word, will and way, of the Sovereign, Revelation 13:5-10, and his partner, the Seignior, Revelation 13:11-18, meaning top dog banker who in minting money, takes a cut.

This is the case, as 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, that is authority, 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, with its policies of diktat in regional governance, and schemes of debt servitude in totalitarian collectivism, as a replacement for the libertarian despised Creature from Jekyll Island, that is the democratic nation state and banker regime. Regional interventions will replace nation state interventions. The world PIVOTED from the paradigm and age of liberalism, to that of authoritarianism, on October 23, 2013, as the bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.  Have you heard and heeded the call?

EUobserver reports that Catalan President Artur Mas has written to EU leaders and world powers seeking their support for a planned referendum on independence from Spain to be held in November. The Spanish government has already said that the referendum would breach the Spanish constitution.

There is waiting in the wings of Europe’s stage, its future leader. Soon the curtains will open and into the limelight, will step the Sovereign, presented in Revelation 13:5-10, one who will rise to power through his shrewd capability of working in regional framework agreements, Daniel 8:7.

Open Europe posts FT and FT: Barber has a feature on the race for the job of next European Commission President, noting that the largest centre-right grouping in the European Parliament, the EPP, is due to select its candidate at a March meeting. Open Europe Director Mats Persson is quoted by Finnish daily Hufvudstadsbladet discussing Olli Rehn’s prospects of becoming the liberal candidate. This inquiring mind asks, In what way, can Olli Rehn be considered liberal?

Open Europe posts Volkskrant reports that Germany and France are keen to establish a permanent eurogroup President, which could be arranged within the year. The paper suggests the post would be unlikely to go to current eurogroup President and Dutch Finance Minister Jeroen Dijsselbloem.

4) … In hopes that you the reader won’t be left behind in financial matters, I’ve been presenting  dispensationalism and reformed eschatology for quite some time; here are some posts one may want to read.

The word Revelation” in Greek is “ Apokalupsis “ which means the unveiling of God’s program for His Church and the consummation of the New Testatment Age.

Samuel Clough asks Why Study Eschatology?

The Schaeffer Institute asks Where can you find  ‘apocalypse’ is in the Bible?

Phoenix Preacher posts Book of the Year: Biblical Eschatology by Jonathan Menn

Beholding Jesus posts The heart of eschatology. Eschatology is not simply a question of “what is going to happen?” The deeper question at stake in eschatology is “what is God like?”

Biblical Muse posts Reformed eschatology In the world of eschatology, there are four major views:

  1. Preterism: Many prophecies have already occurred in the past; This view denotes a 1st-century fulfillment concerning the literary text; real events have already transpired. Some events may be symbolic of other fulfillments, thus taking a symbolic interpretation of the text.

  2. Futurism: Many prophecies will be fulfilled in the future, and in some cases might have an imminent fulfillment concerning the literal text; They believe in real physical events; Biblical literalism is emphasized.

  3. Historicism: Interprets the text as currently being fulfilled during the span of Christian History. Text is sometimes taken as symbolic of real events, rather than being literally true.

  4. Idealism: Present continual fulfillment of symbolical or literary text; spiritual events; Allegorical interpretation is emphasized.

Word Journeys posts The ten visions presented in Revelation

Nannycrats, Appointed By God, Will Rule In Diktat Policies Of Regional Governance And In Debt Servitude Schemes Of Totalitarian Collectivism Beginning In 2014 … As The Rider On The White Horse, Who Has The Bow Of Economic Sovereignty, Effects A Global Coup D Etat Pivoting The World From The Paradigm And Age Of Liberalism Into That Of Authoritarianism

January 1, 2014

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  

This article is posted in Google Docs Format here

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%.

The two most notable currency carry trades closed the year at record highs: The USD/JPY closed at 105.30 and The EUR/JPY closed at 144.84.

 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.

Scott of Prophecy Update Promises of peace and security: US  Framework calls For 80,000 Israeli West Bank evacuations and division of Jerusalem.

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.

The Rider On The White Horse Who Has The Bow Of Economic Sovereignty Terminates Nation State Democracies And The Banker Regime Of Floating Currencies … A Guide To Experiencing The Full Salvation Of God … In The Age of Recession And Authoritarianism

December 22, 2013

Financial Market Report for the week ending December 20, 2013

This report is published in Google Documents format here

1) … An inquiring mind asks, are you experiencing the full salvation of God?

Please consider the concept of “keeping Christ’s Word” as presented in Revelation 3:8  “ I know your deeds. See, I have placed before you an open door that no one can shut. I know that you have little strength, Yet you have kept My Word and have not denied my Name,” so as to experience the full salvation of God.

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, which foretells those things which must shortly come to pass, these being presented in Revelation 1:1, means a series of events, that once they begin, as they did on October 23, 2013, when 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, presented in Revelation 6:1-2.

The Rider on the White Horse, who has a bow, yet no arrows, symbolizing his economic sovereignty  over the world, is effecting a bloodless global coup d’état, and is transferring sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%, and by steepening the 10 30 US Sovereign Debt Yield Curve, TNX:$TYX, seen in the Steepner ETF, STPP, steepening, thereby destroying fiat money.

“Keeping Christ’s Word”, while is something that was a responsibility of saints throughout the ages, is a special responsibility of the end time saint, so as to know the full salvation of God, a salvation that is produced in those living after October 23, 2013, who are both obedient to His Word and who also do not deny Christ’s Presence and Authority, as Christ has not only established a new paradigm and age, and has not only transferred sovereignty from nation states to regional nannycrats and regional bodies, and has not only destroyed fiat money, but established fifteen New Things, through the “extinction event” of opening the first seal of the scroll of end time events.

There was a death of many things on October 23, 2013. The “extinction event” was like a hard frost, that is a “killing frost”, that produced the death for example of fiat money, but not fiat wealth; it died December 20, 2013, as the Benchmark Rate Interest Rate, ^TNX, rose to 2.89%, and as the debt trade that is Junk Bonds, JUNK, and two currency carry trades, the Euro Yen, EUR/JPY, cross and the Dollar Yen, USD/JPY, cross SWELLED, the Eurozone, EZU, and the US, VTI, while at the same time a currency carry trade, the CEW/JPY, cross, DESTROYED, wealth in the Emerging Markets, EEM.

Fiat Money, is defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW. Fiat money is, better said was, coined by sovereign nation states and their banks. And in turn people used fiat money to invest in fiat wealth, like World Stocks, VT, and  educations, marriages, partnerships, personal property like real estate, and the list goes on and on.

While fiat money was made extinct, fiat wealth, that is the product of fiat money, things people invest in, continued to increase in value until the end of November  2013. Then fiat wealth, decreased in value for the first time the week ending December 6, 2013, and then decreased in value for the second time the week ending December 13, 2013, as is seen in the Weekly Charts of World Financials, IXG, Nation Investment, EFA, and World Stocks, VT,  and then rallied back up the week ending December 20, 2013.

Wikipedia’s Timeline of Extinctions, should include fifteen New Things, such as investment choice, but doesn’t, because it does not give consideration to dispensationalism, which is defined as as the concept that Jesus Christ is exercising administrative management of all things in each of mankind’s ages, to make them full, Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, Colossians 1:25.

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

Dispensationalism produces both the “saints” and the “aints”.

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

The Dispensation Economics Manifest, that is the dispensation ideology, is the foundation for a life experience of economic action in the person of Christ, having His virtue and ethics, and this establishes one as elect, living in spirituality and righteousness, separating from fiat who live in death, carnality and iniquity.

As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is establishing a new order consisting of fifteen New Things in Christ, on October 23, 2013, by releasing the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse. The New Things of Christ are presented in the Dispensation Economics Manifest, which is based upon Ephesians 1:10, the biblical revelation that Jesus Christ is operating in dispensation, that is the household management plan of God to mature, complete and fulfill all things in every age.

Corollary #1 from the Dispensation Economics Manifest, Christ is establishing the new normal of a new paradigm and age. As the bond vigilantes on October 23, 2013, have PIVOTED the world out of the paradigm of liberalism to that of authoritarianism, by calling the Interest Rate on the US Ten Year Note, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%.

Liberalism was characterized by inflationism. Monetary inflation, that is credit inflation, seen in Aggregate Credit, AGG, increasing in value, and currency inflation, seen in Major World Currencies, DBV, and Emerging Market Currencies, CEW, likewise rising in nominal value, fueling economic growth and global trade, where the banker regime financialized nation state fiat money and energized fiat wealth with both debt trade investing and currency carry trade investing.

The affect of The Rider on the White Horse is fiat money destruction, as investors no longer trust that the monetary policies of the world central banks to stimulate global economic growth and global trade. Investors, in particular the bond vigilantes, believe that the world central banks’ monetary policies have crossed the rubicon on sound monetary policy and have made “money good” investments bad, and have been acting in debt deflation together with the currency traders to profit from the destructionism of the First Horseman of The Apocalypse. His ride is just the beginning of sorrows.

Authoritarianism is characterized by destructionism. Monetary deflation, that is credit deflation, where Aggregate Credit, AGG, World Government Bonds, BWX, European Debt, EU, fall in value, and currency deflation, Major World Currencies, DBV, Emerging Market Currencies, CEW, decrease in value, as seen for example in the Ambrose Evans Pritchard report Eurozone M3 money plunge flashes deflation alert, and 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. The nation state banker regime that produced fiat money, and for economic growth, and investment gain, being part of liberalism, is gone forever.

Eurzone stocks, EZU, and European Financials, EUFN, slumped beginning the week ending December 6, 2013. The Netherlands, EWN, was a Euro Yen, EUR/JPY, currency carry trade darling; now investors consider the nation and its companies, AEGON, AEG, ASML Holding, ASML, Reed Elsevier, ENL, ING Group, ING, Koninklijke Philips Electronics, PHG, and Vistaprint, VPRT, to be dogs and are selling them strongly, on a Bloomberg report of the ECB’s Mario Draghi Mandate that prevents lenders from using future loans it provides to buy sovereign debt.

Likewise, the UK, EWU, which was a British Pound Sterling Yen, GBP/JPY, favored currency cross, slipped the week ending December 13, 2013, as investors derisked out of Prudential, PUK, WPP, WPPGY, ARM Holdings, ARMH, Diageo, DEO, Reed Elsevier, RUK, Smith & Nephew, SNN, and Lloyds Banking Group, LYG, in ongoing trepidation of the outcome of the ECB’s Mario Draghi Mandate.

Liberalism was characterized by economic growth coming by the operation of the dynamo of creditism, corporatism and globalism, which bubbled up Total Credit, as presented in Federal Reserve Chart of TCMDO to stand at 58,082 Trillion, as of QE 2013. Benson te presents the concept that the UK’s economic growth was due to the growth of credit, and provides BoE documents showing credit growth in real estate, hotel and restaurants and construction, beginning when the BoE began it second wave of QE in late 2011.

MyBudget360 posts The sweet spot in life under liberalism came through credit. It came via the crack up boom liberality of the world central bankers monetary authority, in particular the Bernanke put in late 2010 with QE2, and getting leveraged up, on debt trades, currency carry trades, and margin credit, together with a sell of gold, to experience economic life in economic systems such as clientelism, crony capitalism, European socialism, Greek socialism, and Chinese communism.

Liberalism produced the maximum quantity of investment stimulus possible. As of Friday December 13, 2013, the world stood at peak investment stimulus supply, as is seen in the topping out of both Junk Bonds, JNK, and the EUR/JPY, producing peak fiat wealth on December 2, 2013, seen in Global Financials, IXG, Nation Investment, EFA, and Nation Investment, VT, and Yield Bearing Investments, such as Energy Production Companies, XOP, Energy Partnerships, AMJ, and North American Energy Partnerships, EMLP, having topped out.

Jesus Christ is acting in dispensation, that is He is maturing,  and completing authoritarianism, through releasing all of the Four Horsemen of the Apocalypse to accomplish a deflationary bust, seen in Revelation 6:1-8, and bringing it to its zenith through debt servitude, where there will be an ever increasing crushing economic recession and austerity, as one experiences economic life in the dynamo of regionalism, as is foretold in Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.

The benefit for the believer of being aware of, seeing, and experiencing the ride of the Four Horsemen of the Apocalypse, seen in Revelation 3:1-8, is that one comes to experience the worst of life’s hardships, enabling God’s salvation to take hold fully and finally.

One’s grace for receiving the full salvation of God comes from practicing His Word in speech and action, as well as respecting His presence and authority as presented in Revelation 3:8: I know your deeds. See, I have placed before you an open door that no one can shut. I know that you have little strength, Yet you have kept my Word and have not denied my Name.

2) … Going into the week of December 16, 2013, to December 20, 2013,

A stock broker might encourage yield bearing investments, such as Energy Producers, XOP, presented in this Finviz Screener, as well as Energy Partnerships, AMJ, and North American Energy Partnerships, EMLP; yet these have topped out in value, as the bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013. With the bond vigilantes and currency traders successfully carrying out a war of debt deflation against the world central bankers, one should shun these investments.

The Investor’s Weather Vane ETFs, Call Write Bonds, CWB, is topping out  and Volatility ^VIX, ETFs, TVIX, VIXY, VIXM, are plummeting; establishing that the long running bull market has run its course and is turning into a bear market.

The ten ETFs, STPP, HDGE, XVZ, OFF, JGBS, EUO, HYHG, SAGG, SLV, GLD, seen in this Finviz Screener are bottomed out, and could be used as a basis of margin for a short selling account.  For a while I present these at no cost to investors in my Stockcharts.com Chartsite

CP of Credit Bubble Stocks posts Credit spreads lowest since October 2007  “The bottom line is that people have a lot of cash, and there’s a willingness to put it to work,” Mish said in a telephone interview. “I’m not saying that’s the prudent thing to do, but irrespective of the return forecast we have for next year, there’s a significant feeling that people need to earn more than zero.”

Many investors failed to invest in QE’s riskless trade, and having seen equity investments, such as Dividend Growth, VIG, and World Stocks, VT, grow in value, as well as credit investments, such as  Junk Bonds, JNK, and Distressed Investments, FAGIX, increase in value, are expressing a desire for “return on investment”.  Investors should consider that even “return of capital” is at risk, in what has been safe investments, such as Short Term Corporate Bonds, FLOT, and US Short Term Government Notes, SHY, as the bond vigilantes call the Benchmark Rate, ^TNX, ever higher from 2.86%.

During the week ending December 13, 2013, 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 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 and investment 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, as is seen in the ongoing Yahoo Finance Chart of PKB, CHXX, INXX, BRXX, 8) energy production, XOP

And, 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, such as in the WSW report, Italy’s Pitchfork Movement and The Telegraph report Italy’s president fears violent insurrection in 2014 but offers no remedy;  and are commencing Kondratieff Winter. Truly the Benchmark Interest Rate, ^TNX, can be called the “Means of Economic Destructionism”.

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, will be seen in the Risk Off ETN, OFF, trading higher, and will be unleashing destructionism replacing inflationism, as it has already 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.

An investment demand for gold will be commencing as fiat money, and now fiat wealth, will be turning lower in value, both collapsing into the Pit of Financial Abandon. Under authoritarianism, the only two forms of sovereign wealth and sustainable wealth will be the physical possession of gold bullion and diktat; the only form of bartering wealth will be silver bullion and sexual services.

CP of Credit Bubble Stocks presents Total Debt (Credit Market Instruments) Vs Money Supply.  Please consider the concept Total Credit is a component of fiat money, and the other component of  fiat money is Major World Currencies, DBV, and Emerging Market Currencies, CEW.  And please consider that M2 Money, is fiat wealth, not fiat money, even though it has the word money in it.

Fiat money produces fiat wealth, or better said produced (that is past tense) fiat wealth,such as World Stock, VT, and personal property such as realeEstate (like a physical structure that is lived in), Commodities, DBC, such as Corn, CORN, and Wheat, WEAT. both of which have bottomed out in value.

While M2 Money, has the word money, in it, M2 Money is the combination of things like savings accounts, and thus is fiat wealth; think and remember savings accounts are like stock investments such as World Stocks, VT; M2 Money is something that fiat money produced, and thus is fiat wealth.

A key concept here is that fiat money died on October 23, 2013, when the bond vigilantes called the  Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, but M2 Money, a form of fiat wealth is now topping out at 10,971.8, as is seen in M2 Money Stock Report.

The importance of CPs article is two fold: First, Total Credit which is reported Quarterly most likely has already turned lower in value, and we will likely see this in the fourth quarter report. Second, M2, Money is likely to turn lower in the week ending December 27, 2013.

I am not a libertarian, that is one who lives out of the economic concept of freedom. Rather, I am a dispensationalist economist, who lives out of the person of Christ.

I present Corollary #1 from the Dispensation Economics Manifest: Jesus Christ, operating in dispensation, that is economic action for the fulfillment and completion of every age, PIVOTED, the world from the paradigm and age of liberalism into that of authoritarianism, on October 23, 2013, by opening the First Seal of The Scroll of End Time Events, thus enabling the Rider on The White Horse, who has a bow without any arrows, to empower the bond vigilantes to commence calling the Interest Rate on the Ten Year Note, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%, destroying fiat money, and to begin destroying fiat wealth, VT, as well as Nation Investment, EFA, and Global Financial Institutions, IXG, something that was done through debt deflation by the currency traders selling the Major World Currencies, DBV, the week ending December 13, 2013, and the Emerging Market Currencies, CEW, the week ending December 20, 2013.

Under liberalism bankers, corporations, government, entrepreneurs, and investors of nation state democracies were the legislators of economic value and the legislators of economic life that shaped one’s means and one’s ends. In contrast, under authoritarianism, currency traders, bond vigilantes and nannycrats working in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

Obamacare is at the leading edge of authoritarianism replacing liberalism. Obamacare is literally destroying America’s system of health care. And Obamacare is causing strong disinvestment out of the defensive sectors Medical Devices, IHI, and Health Care Providers, IHF.

Of note the bond vigilantes in calling the Interest Rate on the US Ten Year Note, ^TNX, higher, have caused disinvestment out of the defensive sectors, Consumer Staples, KXI, and Small Cap Consumer Staples, PSCC, while Consumer Discretionary, RXI, and Small Cap Consumer Discretionary, PSCD, have maintained investment, being more risky. Said another way, risk appetite has been ongoing for Consumer Discretionary, as is seen in IYC, manifesting what is likely an evening star chart pattern.

Libertarian G. Edward Griffin in interview with The Daily Bell, speaks on Globalism, Collectivism And Right Principles.

Daily Bell: Public banking types – those who want a central bank controlled by “the people” – continue to attack libertarian websites for proposing that gold is money. They believe all gold is owned by central banks and elite families and their colleagues. Is this so? Don’t plenty of average people own gold, especially in China and India? Why is this issue never addressed by public banking proponents?

G. Edward Griffin: Now to the main issue, in my view. Just because the banks hold a lot of gold and just because they like gold, the question is why then aren’t they in favor of money being backed by gold? The argument is made, why should we have money backed by gold because that would be to the advantage of the bankers, who own it all? Isn’t that the argument? So the question is, then, how come the banks are the leading opponents of backing a money system with gold?

The answer is found in just reflecting here for a moment as to how banks make their money. They make their money by charging interest on loans. So the more money they have to loan, the more money they make. If currency is backed by gold then that limits the quantity of money that can be loaned. The banks can only loan an amount of money equal to what they have in their vaults in the form of gold and that’s it. There’s nothing more.

Once you wrench the money supply away from gold, now they can create money out of nothing, as we’ve seen happen in the last decade, at least since 2008. Between the banks and their partners in government they’ll just create trillions of dollars in a single afternoon, not based on anything except credit, and then they can loan that money and collect interest on trillions of dollars that doesn’t even exist.

Daily Bell: What are the top men of central banking interested in? Are they in it for the usury or are they in it for control? This is a major and profound question, in our view.

G. Edward Griffin: The top bankers are interested in it for the usury but their partners in politics are interested in it for control and it’s hard to say which is which, between the two of them, because it’s a revolving door now. I would say central banks, or the big banks that comprise the central banks, and governments now are welded together into one solid piece. It’s hard to distinguish or pull them apart. So the answer to that question is both usury and control. We have to rise above that and focus on the ideas these individuals are pursuing. That’s where FreedomForce comes in. We’re trying to get people to understand this ideology of collectivism and to understand its superior alternative, which is called individualism. If we can get a better understanding of those concepts, then that result will move into the political world and it will change the balance of power at an issues level because people who have the right principles in mind will know how to apply those principles in all of the issues. That’s kind of a vague answer to your question about whether there are certain areas of the world we should be paying attention to but I really think if we just are trying to engage ourselves on specific issues, war in the Middle East, Obamacare and so many others, we may solve one or two but meanwhile these guys with the collectivism mentality are setting more fires out there, more fires than we can put out. So we’ve got to get back to principles, I think, if we’re going to make any change in the long view.

Mr Griffin focuses on the critical life concept of collectivism. I respond that on October 23, 2013, Jesus Christ opened the First Seal of the Scroll of end time events, and PIVOTED the world out of the paradigm of liberalism to that of authoritarianism, by releasing The Rider on the White Horse, who has a bow, yet no arrows, symbolizing his economic soveignty over the world, who is effecting a bloodless global coup d’état, and who is transferring sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, “the Means of Economic Destructionism”, higher from 2.48%.

Now under authoritarianism, regionalism, not creditism, not corporatism, and not globalism, being the dynamo of economics, currency traders, bond vigilantes and nannycrats working in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.  Welcome to totalitarian collectivism; it’s the complement of regional governance; this being foretold by John The Revelator in Revelation 13:1-4. The Beast regime is rising to rule the world. Soon out of the Club Med crisis of sovereign insolvency and banking insolvency, it will establish policies of diktat of regional governance in every one of the world’s ten regions, and schemes of totalitarian collectivism in every one of mankind’s seven institutions.

3)  … This week’s investment activity: It’s a week of a swelling debt trade, seen in Junk Bonds, JNK, maintaining its strength, and two swelling currency carry trade, seen in Action Forex, EUR/JPY, and in Action Forex, USD/JPY, cresting wealth in the US, VTI, and the Eurozone, EZU; and a smashing currency carry trade, CEW/JPY, destroying wealth in the Emerging Markets, EEM, as the Fed Announcement of Tapering was neither hawkish or dovish.

As foretold in bible prophecy in Revelation 13:1-4, out of waves of Club Med sovereign insolvency and banking insolvency, the Beast Regime of regional governance and totalitarian collectivism, will rise to replace the Banker Regime, consisting of the Creature from Jekyll Island, the US Dollar Hegemonic Empire, and the Speculative Leveraged Investment Community, all courtesy of The Rider on the White Horse, who was released on October 23, 2013, … who having the Bow of Economic Sovereignty is terminating the monetary authority of democratic nation states, putting their currencies to death, and is transferring monetary authority, from central banks to regional nannycrats, who will meet in workgroups to provide statist public private partnerships, mandate regional economic policies, and coin diktat money, ie levies on bank accounts, and ie confiscation of investment accounts should financial institutions fail, which provides seigniorage of diktat, all to establish regional security, regional stability, and regional sustainability, within a framework of totalitarian collectivism, assuring debt servitude and shared austerity.

Liberalism’s fiat money, the coinage of central banks like the US Fed, is as dead as a doornail; witness the Australian Dollar, FXA, falling, and taking down, Australia, EWA, and Australia Small Caps, KROO, as well as the Swedish Krona, FXS, crumbling and taking down Sweden, EWD. The central banks are all white washed tombs filled with dead mens bones. The bond vigilantes, being in control of the Benchmark Interest Rate, ^TNX, have the “Means of Economic Destructionism”  and are acting together with the currency traders to affect debt deflation. Through the dynamos of creditism, corporatism, and globalism, risk assets bubbled up prosperity.

Authoritarianism’s diktat money, the coinage of nannycrats, such as ECB’s Mario Draghi, and Germany’s Wolfgang Schäuble, is coming simply out of mandate, as well out of regional summits such as that which produced the EU Banking Union. Through the singular dynamo of regionalism, diktat enforce austerity.

On Monday December 16, 2013. Investment Bankers, KCE, and the fiat wealth that decreased the most through debt deflation since October 23, 2013 rallied, in anticipation of Fed Speak on Wednesday.

Global Financials, IXG, 0.7% … European Financials, EUFN 1.6, India Earnings, EPI 1.1, Investment Bankers, KCE 1.6, Regional Banks, KRE 1.5, Stockbrokers, IAI, 0.7, The Too Big To Fail Banks, RWW 0.6. Asset Managers, such as Blackrock, BLK, seen in this Finviz Screener, rose strongly.

World Stocks, VT, 0.7% …  Solar Energy, TAN 1.5, Networking, IGN 1.4, Resorts and Casinos, BJK, 1.4;  Small Cap Industrials, PSCI 1.2, Global Industrial Producers, FXR 1.0, Small Cap Consumer Discretionary, PSCD 1.0, Internet Retail, FDN 1.1, IPOS, FPX 1.1, Steel Manufacturers, SLX 0.9, Semiconductors, SMH, 0.7, Small Cap Pure Value, RZV 0.6, Timber Producers, WOOD, 0.7%, with companies seen in this Finviz Screener, rising strongly, and Design Build and Construct, FLM, 0.7%, with companies seen in this Finviz Screener, rising strongly.

In closed end funds, Calamos Equity, CSQ 1.0%. The ratio of the closed end equity to closed end debt CSQ:PFL, rose to an all time high documenting the terrific amount of margin credit that is leveraging stocks higher.  Mastercard, MA  rose 1.1% to a new rally high.

Ed Yardeni writes Retail sales rising along with solid earned income gains, but Retail, XRT, trades up only 0.30%, documenting that indeed a bear market is underway as a good investment report is unable to aggressively drive these consumer stocks higher.

Yield Bearing Stocks, Dividend Growth, VIG, 0.60% … with Global Telecom, IST 0.80%; AES Corp, AES, 2.1% led Utilities, XLU, 0.7%.

Nation Investment, EFA, 0.70% … US Small Caps, IWM, 1.2 rallying on Regional Banks, KRE, and The Too Big To Fail Banks, RWW, trading higher. Eurozone Stocks, EZU 1.4 rallying on EUFN trading higher. Italy, EWI, Spain, EWP, Netherlands, EWN, and Ireland, EIRL, led the Eurozone, EWU, higher, as the European Financials, EUFN, traded higher. South Korea, EWY 1.3, Sweden, EWD 0.7, Brazil, EWZ 0.7, Russia, RSX 0.7, India, INP 0.8, and Nikkei, NKY, -0.4

Natural Gas, UNG, traded lower, driving StealthGass, GASS, and Greece, GREK, lower. StealthGas is a ship owning company, headquartered in Athens,  serving the liquefied petroleum gas sector of the international shipping industry. StealthGas currently has a fleet of 38 LPG carriers. The Company has agreed to acquire 15 newbuilding LPG carriers, with expected deliveries in 2014 and 2015. Once the acquisition of the 15 LPG carriers is completed and the vessels are delivered, StealthGass LPG carrier fleet will be composed of 53 LPG carriers with a total capacity of 257,922 cubic meters.

Evidence that the stock market has pivoted from a bull market to a bear market is seen in Transports IYT, is selling off , while the Industrials, IYJ, is jumping higher.

Gold Miners, GDX, 1.2%, on Gold, GLD, 0.2%; and Silver Miners, SIL, 0.8%, on Silver, SLV, 1.4%.

Wheat, WEAT, and Corn, CORN, traded lower to new rally lows.

From Open Europe, we see the political rise of one authoritarianism’s fathers; yes, all things have fathers, and Jörg Asmussen is a father of authoritarianism who is leaving the ECB to join new German government. Open Europe relates FT FT 2 City AM FAZ FAZ 2 FAZ: Georgie FAZ: Kohler Süddeutsche Süddeutsche: Prantl EUObserver Reuters Deutschland Handelsblatt Spiegel Euractiv European Voice BBC Bild WSJ Le Figaro Independent Handelsblatt. that following the SPD membership’s approval of the grand coalition agreement with 76% of votes, the German government revealed the make-up of its new cabinet.

The big surprise comes as Jörg Asmussen steps down, for personal reasons, from the ECB Executive Board to become Deputy Labour Minister. The front runner to replace him is Sabine Lautenschläger, vice-president of the Bundesbank. Elsewhere the SPD’s Frank-Walter Steinmeier returns as Foreign Minister, while Sigmar Gabriel takes over a combined portfolio of Economy and Energy.

The CDU’s Ursula von der Leyen, often tipped as a successor to Chancellor Angela Merkel, takes over as Defence Minister, the first woman to hold the post in Germany. CSU’s Hans-Peter Friedrich is moved from Interior Minister to Agriculture Minister, while Wolfgang Schäuble stays on as Finance Minister. Overall, the CDU holds five ministries, the CSU three and the SPD six. Open Europe’s Raoul Ruparel appeared on CNBC Squawk Box Europe this morning discussing the implications of the new cabinet set up.

Bloomberg reports Shanghai Glut Rises With Tallest Tower: Real Estate. When completed in 2015, the Shanghai Tower will be China’s tallest building. The 632-meter (2,074-feet) skyscraper will also deepen a glut of offices in the city, putting pressure on rents. The project, in the Lujiazui financial district, will add 220,000 square meters (2.4 million square feet) of office space, or more than 10 percent of the new supply forecast for the city in 2015, according to RET Property Consultancy Ltd. About 2 million square meters of grade-A offices will be added between 2014 and 2015, more than double the supply in the previous two years, according to broker Savills Plc.

Ambrose Evans Pritchard of the Telegraph reports Fresh recession risk in France threatens political crisis. The threat of recession is a major upset for President François Hollande, who has talked up recovery and confidently declared the crisis over.

Although not one of the PIGS, an emerging recession in France highlights the failure of European Socialism as an economic system under liberalism. France, EWQ, in fact most of the Eurozone, EZU, excluding the Netherlands, EWN, and Ireland, EIRL, piggy backed on the Euro to maximize national wage contract laws to benefit unions, creating a type of clientelism, that created a high standard of living bubble; that bubble is now bursting. France has a terrific amount of municipal debt, that cannot be and will not be repaid. Dexia Bank worked with France to securitize the debt and make lucrative deals selling the high yielding credit to US Money Market Funds. The Eurozone, EZU, the European Financial Institutions, EUFN, the Euro, FXE, as a currency, and Eurozone Debt, EU, comprise a massive black hole of sovereign insolvency and banking insolvency, out of which the beast regime of regional governance and totalitarian collectivism will rise to rule the world as foretold in bible prophecy of Revelation 13:1-4.

On Tuesday, December 17, 2013, Global Financials, IXG, traded lower, leading World Stocks, VT, and Nation Investment, EFA, lower.

Global Financials, IXG, traded lower on lower India Banks, IBN, HDB, Chinese Financials, CHIX, The National Bank of Greece, NBG, and Spain’s Bank, SAN.

World Stocks, VT, traded lower with Solar Energy, TAN, Semiconductors, SMH, and Networking, IGN, trading higher; and Global Real Estate, DRW, Biotechnology, IBB, Health Care Provider, IHF, Global Consumer Staples, KXI, trading lower; the latter led lower by a lower Tyson Foods, TSN, Kimberly Clark, KMB, Clorox, CLX, Proctor Gamble, PG, Ingredion, INGR, Ecolab, ECL, International Flavors, IFF, Hersheys, HSY, and ConAgra, CAG. Gold Miners, GDX, traded lower on a lower price of Gold, GLD; and Silver Miners, SIL, traded lower on a lower price of Silver, SLV.

Nation Investment, EFA, traded lower with Argentina, ARGT, trading higher; and Turkey, TUR, Australia, EWA, KROO, New Zealand, ENZL, Mexico, EWW, China, YAO, Italy, EWI, Spain, EWP, and Greece, GREK, trading lower.

The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.84%

Mike Mish Shedlock writes  Laughable Eurozone banking “non-union”; Expect disorderly breakup The eurozone ministers ought to focus on a meaningful task: how best to break up the eurozone with minimal disruption; unfortunately, they won’t.

I respond, Yes, how true, they will not do so; they can’t as they have a different destiny as presented below.

Mr. Shedlock continues, the resultant eurozone breakup will prove to be very disruptive. The only other possibilities (and I have mentioned them before) are 1. slow growth and extremely high unemployment in the peripheral countries for another decade 2. Germany and the Northern countries pony up hundreds of billions of euros in more support (debt forgiveness, not loans).  Pick your poison, but a breakup is the most likely result.

If one goes by Austrian economics thinking, then yes a breakup is extremely likely. But if one goes by Dispensation economics thinking, then regional governance and totalitarian collectivism is a certainty.

The Revelation Of Jesus Christ, which foretells those things which must shortly come to pass, these being presented in Revelation 1:1, means a series of events, that once they begin, as they did on October 23, 2013, when 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, presented in Revelation 6:1-2.

The  the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his economic soveignty over the world, is effecting a bloodless global coup d’état, and is transferring sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, “The Means of Economic Destructionism”, higher from 2.48%, and by steepening the 10 30 US Sovereign Debt Yield Curve, thereby destroying fiat money, as well as fiat wealth in the Emerging Markets, EEM.

Eurzone stocks, EZU, and European Financials, EUFN, slumped beginning the week ending December 6, 2013. The Netherlands, EWN, was a Euro Yen, EUR/JPY, currency carry trade darling; now investors consider the nation and its companies, AEGON, AEG, ASML Holding, ASML, Reed Elsevier, ENL, ING Group, ING, Koninklijke Philips Electronics, PHG, and Vistaprint, VPRT, to be dogs and are selling them strongly, on the Bloomberg report of the ECB’s Mario Draghi Mandate that prevents lenders from using future loans it provides to buy sovereign debt.

This debt deflation is in addition to the bond vigilantes who have been calling the Benchmark Interest Rate higher from 2.48% on October 23, 2013, destroying Aggregate Credit, AGG, has PIVOTED the world out of the paradigm and age of liberalism and into that of authoritarianism.

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, as the facts shows investors derisking out of the Eurozone and its banks.

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 the ECB Mandate of December 6, 2013, that prevents lenders from using future loans it provides to buy Treasury Debt, which is traded by the ETF, EU.

The Eurozone banks are currently loaded to the gills will debt that can be paid, and is debt that can’t be sold; clearly the EU banks are insolvent financial institutions. And Club Med nations are in a bind because no one will finance their treasury debt. So not only does the EU have a massive banking problem. And with the ECB’s Mario Draghi Mandate of December 6, 2013, the PIGS have a massive nation state financing problem; clearly the PIGS are insolvent nations.

Jesus Christ purposed liberalism, to be the age of the banker-democratic nation state regime, based upon debt trade investing and currency carry trade investing, all for the investor’s investment choice and to develop a hegemonic US Dollar Hegemonic Empire. God never intended for freedom to last, He purposed to develop a United States of America, once the nation of liberty, to be usurped, and to evolve for over a period of 100 years, that is from 1913 to 2013, to become the lair for the banker regime of fiat money creation for global economic growth based upon the dynamos of creditism, corporatism, and globalism.

Jesus Christ, acting in dispensation, that is the economic and political oversight of all things, is establishing authoritarianism, to be the age of the beast totalitarian collectivist and regional governance regime, based on debt servitude, all for the debt serf’s obedience to diktat. Out of Eurozone banking insolvency and sovereign insolvency, leaders will meet in summits, to renounce national sovereignty, and announce regional framework agreements which establish regional pooled sovereignty, where there will be one bank, one government, and one currency, one debt union, and one fiscal union, that is a One Euro Government, a European Super State, for all of Europe’s people, this is clearly seen as the dynamo of regionalism operating in bible prophecy of Revelation 13:1-4.

On Wednesday, December 18, 2013, Going into today, the two great levers of liberalism’s wealth, that is the debt trade,seen in  Junk Bonds, JNK, at 40.63, and the Euro Yen Currency Carry Trade, EUR/JPY, at 141.36, stand at their rally highs, underwriting the value of World Stocks, VT.

Specifically, going into today, highly speculative leveraged wealth investments such as Leveraged Buyouts, PSP, and other ETFs, FPX, RZV, FDN, RZG, PNQI, PJP, CSD, BJK, SOCL, PSCD, stand at or near their rally highs.

An inquiring mind asks, what was liberalism? Remember it ended on October 23, 2013, when fiat money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, died, and the US Fed and other central banks that generated the medium of exchange, died, as the bond vigilantes called the Interest Rate on the US Dollar ^TNX, “The Means of Economic Destructionism”, higher from 2.48%, putting an end to the banker democratic nation state regime, fathered by Milton Friedman, and his Free To Choose floating currency principle.

Liberalism was not as the classical libertarians think, an age of liberty and freedom from the state. HA HA, HA, nope it wasn’t.  Anyone who believes that is thinking from the wrong basis.

God, that is Jesus Christ, designed liberalism as the age of investment choice, underwritten by trade in the most toxic of debt, and trade in the most power of currency crosses. Said another way, Liberalism was the age of investment choice, that was based on debt trade, and currency carry trade investing, operating out of the dynamos of creditism, corporatism, and globalism.

God purposed from eternity past that Liberalism produce the most moral hazard based wealth experience possible, so as to promote his US Dollar Hegemonic Empire to be a global kick-ass, might makes right, world hegemon, as something vastly superior to its predecessor, the British Empire.

Anyone who believes otherwise is simply practicing “will worship” out of philosophy or religion.

There are a whole spectrum of economists, from Austrian Economists promoting Libertarianism to Trotsky Socialists promoting Trotskyism, all of who have identity and experience out of fiat human philosophy.

Dispensationalist economists have identity and experience out of the concept of Dispensationalism, and believe that Jesus Christ has 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 economic sovereignty, and has PIVOTED the world from the age and paradigm of liberalism to that of authoritarianism, and that the monetary authority and monetary policies of the US Fed, and other world central banks in QE, Abenomics, and other Global ZIRP policies, have crossed the rubicon of sound monetary policy, and have destroyed fiat money, and have destroyed Emerging Market Stocks, EEM, and are going to soon destroy the whole spectrum of fiat wealth, that being Global Financials, IXG, Nation Investment, EFA, and World Stocks, VT.

Jesus Christ is working his plan to establish authoritarianism, as the most debt servitude experience possible, and He is doing this by bring forth the Beast Empire of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, which is synonymous with the Two Foot, and Ten Toed Kingdom, seen in Daniel 2:25-45, as well as the Terrible and Exceeding Strong Beast, of Daniel 7:7

If one believes otherwise, one is seeing a mirage, or is dreaming, on the Authoritarian Desert of the Real, and is going to have a very sharp awakening. If one believes that stocks are moving higher much longer, that is stimulated consistently higher, through the debt trade or currency carry trade investing, then one is just dreaming on some investment island.

The dynamos of creditism, corporatism, and globalism are dead and gone, something that belonged to the former age of liberalism and investment choice, and that the singular dynamo of regionalism is at work in the current age of authoritarianism and debt servitude.

One’s former economic father, Milton Friedman, and his design, of nation states and floating currencies, is no longer life’s paradigm, this evidenced by sinking currencies, such as the Australian Dollar, FXA, and the Brazilian Real, BZF.

The current economic father is Mario Draghi, and his design, of regional governance and totalitarian collectivism is life’s paradigm, this evidence  by the ECB’s Chairman Mandate that prevents lenders from using future loans it provides to buy sovereign debt

In early morning trading, the Nikkei, NKY, traded higher on rumors of an imminent announcement by Prime Minister Shinzo Abe of the details of his Abenomics Third Arrow, while Australia, EWA, collapsed, sharply lower continuing a trend that began October 23, 2013.

At midday, on December 18, 2003, Reuters reported Fed cuts bond buying in first step away from historic stimulus. As soon as the US Federal Reserve Announcement of Tapering was released, the bond vigilantes exerted control over the Benchmark Interest, ^TNX, and called the “Means of economic Destructionism”, higher once again to 2.88%. Fiat Money, that is Aggregate Credit, AGG, and Major World Currencies, such as the Japanese Yen, FXY, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, traded lower on the US Federal Reserve Announcement of Tapering, communicating the ongoing failure of fiat money.

The US Federal Reserve Announcement of Tapering is the Fed’s subtle acknowledgement that its monetary policies of QE have crossed the rubicon of sound monetary, caused the failure of fiat money, and in turn made money good investments, such as the Emerging Markets, EEM, bad; confirmation comes from the Bloomberg report Emerging stocks head for longest weekly losing streak since June.

And the US Federal Reserve Announcement of Tapering is also the Fed’s subtle acknowledgement that QE has commenced economic destructionism, specifically causing the failure of global economic growth in Brazil, EWZ, Thailand, THD, Indonesia, IDX, the Philippines, EPHE, Peru, EPU, Chile, ECH, Australia, EWA, and New Zealand, ENZL, as is seen in their ongoing Yahoo Finance Chart.

Nevertheless World Socks, VT, traded strongly higher, +1.5%, on the sell of the Japanese Yen, FXY. The chart of World Stocks, VT, relative to Credit, AGG, VT:AGG, shows a surge in wealth, that is World Stock, VT, over Credit, AGG.  The surge in World Stocks, VT, is partly short sell covering in a bear market, and partly a carry trade operating in the US Dollar Yen cross. The bear market in stocks originated December 2, 2013, coming from investor awareness that the world central banks monetary policies, such as QE, despite the tapering announced on December 16, 2013, have crossed the rubicon of sound monetary policy, and have made “money good” investments bad, beginning when the Benchmark Interest Rate rose from 2.48%.

It’s very much an oxymoron, that a number of stock sectors, as well as the US Stocks, VTI,  can rally strongly higher on collapsing fiat money, but these have been the benefit of a rising USDJPY, which is producing peak wealth in a broad spectrum of US stocks, most notably US Infrastructure, PKB.

Abundant margin credit; and a strong sell of the Japanese Yen, FXY, leveraged World Stocks, VT,  specifically US Stocks, VTI, higher. Said another way, investment seigniorage, did not come from the US Federal Reserve Announcement of Tapering, but from the ongoing operation of schemes of margin credit, debt trade investing, and currency carry trade investing, all of which are operating at their peak capability, and will be exhausting soon, most likely substantially before the Quarter 4, 2013.

Global Financials, IXG, traded strongly higher, +1.6%, with Japan’s Banks, SMFG 4.0% and MTU 3.6%, India Earnings, EPI 2.5%, Chinese Financials, CHIX, 2.1%, European Financials, EUFN 1.5%, Investment Bankers, KCE, 2.8%,, rose to a new high, Too Big To Fail Banks, RWW, 2.1%, a new high, Stockbrokers, IAI 1.9%, a new high, and Regional Banks, KRE 1.5%, a new high. Regional Banks, HBAN, FIBK, SIVB, OZRK, SNV, and UCBI, have been stellar Small Cap Pure Value, RZV, leaders, these having benefited from Ben Bernanke’s Put in a spectacular ongoing riskless trade, that is a Risk On Trade, seen in the Risk Off ETN, OFF, falling in value. Asset Managers seen in this Finviz Screener, traded higher. These rose to new highs on the sell of the Major World Currencies, such as Japanese Yen, FXY, and Emerging Market Currencies, such as the Brazilian Real, BZF.

The ongoing Yahoo Finance chart of Global Growth Excluding the US, DNL, together with Germany, EWG, The US, VTI, China, YAO, Switzerland,  EWL, Netherlands, EWN, South Korea, EWY, and and Sweden, EWD, communicates two currency carry trades at work in the financial marketplace, at a time that liberalism is pivoting into authoritarianism, these two being, a carry trade in German Stocks, EWG, and a carry trade in US Stocks, VTI, both based on a short of the Japanese Yen, FXY.

Nation Investment, VT, traded higher, +1.4%, with most of that coming in US Stocks, VTI, +1.6%, which rose to a new rally high.

Sectors rising higher on the sell of the Japanese Yen, FXY, included the health care stocks, such as  Biotechnology, IBB, and Pharmaceuticals, PJP, and consumer stocks such as Media, PBS, Retail, XRT, Nasdaq Internet, PNQI, Food and Beverage, PBJ, Consumer Discretionary, IYC, Internet Retail, FDN, Smallcap Consumer Staples, PSCC, and Resorts and Casinos, BJK, the latter to a new high.

Global Consumer Discretionary, RXI, and Credit Providers Mastercard, MA, and Visa, V, traded strongly higher.

Other US Sectors trading higher on the sell of the Japanese Yen, FXY, included US Infrastructure, PKB, such as MHK, GPK, PKG, TEX, DXPE, FLS, AME, SNA, CSL, and IPOs, FPX, as well as  Aerospace and Defense Stocks, PPA, such as those seen in this Finviz Screener.

International Industrial Companies, IPN, seen in this Finviz Screener, traded higher.

Global Industrial Producers, FXR, seen in this Finviz Screener traded higher.

Leveraged Buyouts, PSP, traded to a new rally high.

Yield bearing sectors, Dividend Growth, VIG, traded strongly higher, +2.1%, led by Exxon Mobil, XOM, ABT, PFE, JNJ, QCOM, HPQ, TXN, HD, UTX, India Earnings, EPI 1.8%, US Real Estate, IYR, 1.7%, Global Utilities, DBU 1.5%, Residential REITS, REZ 1.4%, Global Telecom, IST 1.4%,  Global Real Estate DRW, 1.3%, and Electric Utilities, XLU 1.3%, trading higher.

Nation Investment, EFA, +0.7%. The Nikkei, NKY, 2.8%, rose near its previous high. Russia, RSX 2.5%, India, INP 2.0%, US Stocks, VTI, 1.6%, rose to a new rally high, Sweden, EWD, 2.3%, Germany, EWG, 1.2%, Eurozone, EZU, 1.2%, China, and YAO, 1.2%.  Yet, Australia,EWA, continued its trend, falling strongly lower.

Gold Miners, GDX -1.6%, with Gold, GLD, -0.9%; Silver Miners, SIL -1.2%, with Silver, SLV, -0.3%

The bond vigilantes continued calling the Interest Rate on The US Ten Year Note, ^TNX, higher, now  to 2.88%, and continued steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as is seen in the Steepner ETF, STPP, steepening, with the result that Aggregate Credit, AGG, traded -0.05%, lower, and Mortgage Backed Bonds, MBB, -0.29%, lower.  Junk Bonds, JNK, traded unchanged.  Currencies trading lower included the Japanese Yen, FXY, -1.4%, and the Brazilian Real, BZF, -1.1%

The US Dollar, $USD, traded unchanged at 80.25. Major World Currencies, such as the Japanese Yen, FXY, traded lower; it closed strongly lower 93.89. And Emerging Market Currencies, such as the Brazilian Real, BZF, traded lower.  The Euro Yen Currency Carry Trade, EUR/JPY, closed slightly lower at 142.01.  Spot Gold, $GOLD, traded lower to $1,215, on the rise of US Stocks, VTI. These are polar opposites; so with US Stocks, VTI, in particular, the Investment Bankers, KCE, trading higher,

The Gold ETF, GLD, traded lower.

The seven bearish sectors, that is the “seven bears” traded higher.

1) Small Cap Pure Growth, RZG, traded higher.

2) Small Cap Pure Value, RZV, traded higher.

3) Semiconductor Equipment Manufacturers and PCB Manufacturers trading higher included AMAT, KLAC, LRCX,  ASML, and ADI.

4) Health Care Providers, IHF, seen in this Finviz Screener, traded higher.

5) Medical Devices, IHI, seen in this Finviz Screener, traded higher.

6) Legacy Manufacturing Industries, Steel, SLX, Design Build and Construct, FLM, and Timber Producers, WOOD, Industrial Miners, PICK, Automobiles, CARZ, Industrial Textiles, MHK and Networking, IGN, traded higher, recovering from a prior strong sell off.

7) The Defensive Sector, Global Consumer Staples, KXI, had been selling off quite strongly since the bond vigilantes called the Benchmark Interest Rate, ^TNX, higher on October 23, 2013, but today it rallied strongly; but moved less vigorously than its peer Global Consumer Discretionary, RXI.

Global Consumer Staples, KXI, that had been selling off on debt deflation, include British American Tobacco, BTI, Brazil Foods, BRFS, Smuckers, SJM, Kimberly Clark, KMB, Conagra Foods, CAG, Ingredion, INGR. International Fragrances, IFF, and Ecolab, ECL.

In summary, a sell of the Japanese Yen, FXY, to close lower at 93.89, leveraged US Stocks, VTI,  higher; despite, or perhaps better said because, the monetary policies of the US Central Bank have make “money good” investments bad, at least for those stocks outside of the US bad.

At the end of the day, when all was said and done, fiat wealth investments in World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Dividend Growth, VIG, were not worth more in the sense they had greater profitability or greater economic capability; rather they were worth more because currency carry traders sold the Japanese Yen, FXY, short in currency carry trade investing.

The sell of the Japanese Yen, FXY, is an unmitigated disaster for Japan, EWJ, as Agricultural Commodities, JJA, and Oil, USO, are now more expensive. Of note, Wheat, WEAT, traded strongly lower, but for the Japanese, they still will have to pay more for it as their currency has been totally debased by the currency traders; Japanese household will be seeing inflationary prices very soon given the Wednesday December 18, 2013, sell of the Japanese Yen, FXY.

The bulls have not taken charge of the stock market. The rally in the stocks following the US Federal Reserve Announcement of Tapering, was a US Stocks, VTI, Japanese Yen, FXY, currency carry trade rally, that produced a short selling opportunity, in an ongoing bear market that commenced on October 23, 2013, when bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, that is the “Means of Economic Destructionism”, higher from 2.48%.  The rally in stocks was to have been sold, as in a bull market one buys into dips, but in a bear market, one sells into pips.

On Thursday, December 19, 2013, Gold, GLD, traded sharply lower, turning Gold Miners, GDX, lower; and Silver, SLV, collapsed, turning Silver Miners, SIL, lower.

Global Financials, IXG, traded unchanged.

World Stocks, VT, traded unchanged. Sectors trading higher included Solar Energy, TAN, Steel Manufacturers, SLX, and Global Industrial Producers, IPN, led by Alcoa Aluminum, AA, seen in this Finviz Screener. Sectors trading lower included Uranium Mining, URA, CARZ, led lower by Ford, F, and General Motors, GM, and Casinos and Resorts, BJK.

Nation Investment, EFA, traded unchanged. Nations trading higher included Australia, EWA, KROO.

Nations trading lower included Turkey, TUR, India, INP, SCIN, China,YAO, ECNS,  South Korea, EWY, Thailand, THD, The Philippines, EPHE, Singapore, EWS, EWSS, Indonesia, IDX, IDXJ, Brazil, EWZ, EWZS, Russia, RSX, Ireland, EIRL Greece, GREK, and the Nikkei, NKY.

Yield bearing sectors trading lower included India Earnings, EPI, Brazil Financials, BRAF, Residential REITS, REZ, Global Utilities, DBU, Real Estate, IYR, and Electric Utilities, XLU.

Perhaps you think like Fed Worshiper Ambrose Evans Pritchard who writes So let us waive a fond farewell to the printing press. It has served us well.

The Fed’s $3.2 trillion bond spree since 2009, has fueled fiat wealth, that is fiat asset bubbles galore, with these screaming Hot ETFs, FPX, FDN, RZV, RZG, PNQI, PJP, CSD, BJK, SOCL, PSCD, presented in combined ongoing Yahoo Finance chart, and seen in their Finviz Screener providing ample example. Liberalism was the age of investment choice, and greatly rewarded those who perceived it as such and “went all in” with the riskiest of investments.

Of note, the QEs, and thus the US Fed’s Balance Sheet, is based, first on the Distressed Investments, taken in under QE 1, like those traded in Fidelity’s FAGIX Mutual Fund, and then contain the Excess Reserves, containing US Treasury Bonds, TLT, and then the Debt Purchased, more TLT, and then Mortgage Backed Bonds, MBB, purchased under the most recent QE; these so called assets, consist of debt purchased, and are set to collapse, as is communicated by the ongoing combined Yahoo Finance Chart of FAGIX, and TLT, and MBB. The Fed’s balance sheet is comprised mostly of debt!!!

On October 23, 2013, 2013, the bond vigilantes in calling the Benchmark Rate, ^TNX, higher, terminated liberalism. Now, under authoritarianism the banks, very soon all the banks will be integrated into the government and become known as the government banks or govbanks for short; the excess reserves will not be released to spur inflation; and inasmuch as the Benchmark Rate, ^TNX, is rising from 2.88%, the Fed’s Balance Sheet will be losing value at an ever increasing rate.

Or, perhaps you share Pope Francis disgust of the wealth bubble, and the debt bubble, in his latest encyclical.

Please consider that God from eternity past destined that liberalism, as it is known today, not in the classical sense of the word, to be the age of investment choice, and brought forth the Creature from Jekyll Island, to produce wealth for the investor.  Now, by God’s design, through the death of fiat money, that is Aggregate Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, He is bringing forth the Beast of Revelation 13:1-4, in the age of nannycrat diktat, together with diktat money, to produce debt servitude for the debt serf.

On Thursday, December 19, 2013, the day after the US Federal Reserve Announcement of Tapering, all forms of fiat money finally died, as the Swiss Franc, FXF, and the Indian Rupe, ICN, traded lower from their rally highs, and Aggregate Credit, AGG, traded sharply lower, as the bond vigilantes continued calling the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.93%, and continued in steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as is seen in the Steepner ETF, STPP, steepening, fully terminating the sovereignty of the banker regime of democratic nation state governments, and its policy of investment choice, based upon schemes of credit and carry trade investing. The Fed, and all of its cousins, every last one of them is dead; terminated and gone forever.

The failure of sovereignty of the banker regime of democratic nation state governments, coming on the bond vigilantes calling the Benchmark Interest Rate, ^TNX, the “Means of Economic Dstructionism”, higher from 2.88%, is seen in the chart of World Treasury Debt, BWX, trading sharply lower in value immediately after the US Federal Reserve Announcement of Tapering

Now with the sovereignty of the banker democratic nation state regime having failed, and with the product of the banker regime, that being fiat money, consisting of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, terminated, the seigniorage of the Milton Friedman Free to Choose Floating Currency Regime is bound to fail, resulting in Global Financial, IXG, Nation Investment, EFA, and World Stocks, VT, trading lower from their October 23, 2013, through November 29, 2013, peaks.

Liberalism’s final stock risk-on stock market rally beginning in December 2010, after the Bernanke Put at Jackson Hole, and then intensified in July 2013, as is seen in Bespoke Investment Group chart, with sell of the US Dollar, $USD, UUP.

Doug Noland remarks Global markets convulsed back in May/June as the Fed moved to prepare the world for less QE and Chinese officials finally decided to more forcefully clampdown on China’s runaway Credit and asset Bubbles. Respective domestic fragilities coupled with global fragilities saw both the Fed and Chinese in quick “tightening” retreat.

Respective domestic fragilities coupled with global fragilities saw both the Fed and Chinese in quick “tightening” retreat. And in both cases Bubble excesses bounced right back stronger and more unwieldy than ever.

The crack up boom culminated with US Stocks, VTI, rising strongly on a Dollar Yen currency carry trade and Junk Bond, JNK, debt trade, beginning on October 23, as the bond vigilantes continued calling the Interest Rate, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%, and the currency trader continued selling the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, with the result that other major investments such as the Eurozone, the Nikkei, Asia Excluding Japan, and the Emerging Markets weakened or failed, as is seen in the ongoing Yahoo Finance Chart of VT, VTI, EZU, NKY, EPP, and EEM.

The tremendous leverage of Stocks, VT, over Aggregate Credit, AGG, seen in the ratio of the two, VT:AGG, cannot be sustained; communicating a soon coming trade lower in World Stocks, VT, on the exhaustion of the world central banks’ monetary authority.

The US Dollar, $USD, UUP, traded slightly higher to close at 80.75. Spot Gold, $GOLD, traded lower to $1185, on the sustained rise of US Stocks, VTI. These are polar opposites; so with US Stocks, VTI, in particular, the Investment Bankers, KCE, trading at rally highs, The Gold ETF, GLD, traded lower to 114.82.

The two great levers of liberalism’s wealth are finally trading lower in value evidencing the exhaustion of the world central banks monetary authority. Junk Bonds, JNK, traded lower to close at 40.58; and the EUR/JPY traded lower to close at 142.41, communicating that the bond vigilantes have fully PIVOTED the world out of the paradigm and age of liberalism into that of authoritarianism.

The failure of the Milton Friedman Free To Choose floating currency regime, seen in the US Dollar, $USD, UUP, rising in October 23, 2013, and the peaking out of Global Financials, IXG, Nation Investment, EFA, and World Stocks, VT, communicates that liberalism’s creditism, corporatism, and globalism, are giving way to authoritarianism’s regionalism.

Now with the “Means of Economic Destructionism”, that is the Benchmark Interest Rate, ^TNX, rising from 2.88%, the dynamo of regionalism, will awesomely start to empower the beast regime, presented in Revelation 13;1-4, with its policies of regional governance diktat and schemes of totalitarian collectivism, to fully enforce debt servitude in the paradigm and age of authoritarianism.

In the age of authoritarianism, diktat money replaces liberalism’s fiat money; and fiat wealth, that is World Stocks, VT, and metrics of investment wealth such as M2 Money will be falling lower in value.

Under authoritarianism, the only form of sovereign wealth and sustainable wealth is diktat and the physical possession of gold bullion and silver bullion. Currently investors are long World Stocks, VT, and short the Gold, GLD, ETF, as is seen in the chart of  VT:GLD, which is crushing gold. One should start to dollar cost average an investment in gold, and take possession of it.

Bloomberg reports China Rate Swap surges to record as Reverse Repos kept on hold. China’s interest-rate swaps jumped the most since July, touching a record, as the central bank refrained from injecting cash into the financial system at a time when demand for funds is climbing. One-year contracts that exchange fixed payments for the floating seven-day repurchase rate increased 15 basis points to 5.03 percent, according to data compiled by Bloomberg. The swap climbed as high as 5.07 percent today, the highest in data going back to April 2006, and has averaged 3.76 percent this year.

Bloomberg reports China’s Stocks drop for eighth day on concern over funding costs. Chinese stocks fell for an eight day, extending the benchmark index’s longest losing streak since June, on concern higher funding costs will hurt economic growth. Financial companies slid the most among industry groups. China Minsheng Banking Corp. and Huaxia Bank Co. slumped more than 1 percent, while Gemdale Corp. led declines for developers with a 1.4 percent retreat. Jiangsu Hengrui Medicine Co. dragged down health-care companies with a 2.3 percent retreat. Phone stocks gained as ZTE Corp. climbed 1 percent. The Shanghai Composite Index (SHCOMP) slipped 0.1 percent to 2,146.39 at the 11:30 a.m. break, after changing directions at least seven times

Bloomberg reports Baucus said to be Obama pick as US Ambassador to China. President Barack Obama will appoint Senate Finance Committee Chairman Max Baucus as ambassador to China, two people with knowledge of the matter said today.

Bloomberg reports North Korea purge raises Risk of Kim Jong Uncle’s show of force. North Korea’s execution of Kim Jong Un’s uncle and de facto deputy raises the risk the leader may take military action against the South to demonstrate his authority after the purge. South Korea has heightened its combat readiness since Kim’s uncle Jang Song Thaek was executed last week following his conviction for treason, the highest-ranking official to be purged since Kim took over upon the death of his father in December 2011. President Park Geun Hye warned Dec. 16 of possible “reckless provocations” from the North.

Bloomberg reports Spain’s Regions Can’t Endure More Budget Cuts, Andalusia Says. Spanish regions can’t endure more spending cuts, Andalusia’s budget chief said, as she defended levying a tax on bank deposits. Maria Jesus Montero Cuadrado, budget chief of Spain’s most populous region, is resisting central government demands for more cuts through 2015. Undermining health or education is a “red line” for Andalusia, which has a 36 percent jobless rate, she said in an interview in Seville yesterday.

WSJ reports A new threat to UPS and FedEx. Networks of ‘Super Regional’ Shippers handle more packages for E-Retailers

WSJ reports State exchange chiefs skip town, while Obama hires a hitman. State exchange chiefs skip town, while Obama hires a hitman. President Obama has responded to the ObamaCare debacle by bringing in Beltway liberal mastermind John Podesta as a senior West Wing hand, and he promptly announced his arrival by likening House Republicans to “a cult worthy of Jonestown”.

On Friday, December 20, 2013, Debt deflation struck the World Small Cap Stocks, as Greece, GREK, Indonesian Small Caps, IDXJ, Turkey, TUR, Brazil Small Caps, EWZS, and the Philippines, EPHE, Indonesia, IDX, Thailand, THD, Argentina, ARGT, Malaysia, EWM, and China Small Caps, ECNS, led World Small Caps, VSS, lower

Doug Noland reports Turkish (lira) 10-year sovereign bond yields surged 57 bps this week to 9.92%, the high since the summer crisis period. Brazil’s (real) 10-year yields jumped 41 bps to 13.20%. Reminiscent of May/June, market yields were generally on the rise around the globe.

And Mr. Noland relates Key EM Currencies, CEW, were under heavy selling pressure. The Turkish lira was hit for 2.5% this week, the Brazilian real 2.4%, the Argentine peso 2.1% and the Mexican peso 0.7%. Asian currencies were also under notable pressure. The Thai baht declined 1.7%, the Malaysian ringgit 1.6%, the Taiwanese dollar 1.1%, the Indonesia rupiah 0.9%, the Singapore dollar 0.9%, the Japanese yen 0.9%, the South Korean won 0.8% and the Philippine peso 0.8%.

In yield bearing sectors, Leveraged Buyouts, PSP, which yields 9.6%, fell 4.9% lower, and Shipping SEA, which pays 1.6% higher, rose 1.0%,

World Stocks, VT, traded unchanged; with Networking, IGN, Software, IGV, Biotechnology, IBB, Small Cap Industrials, Small Cap Pure Value, RZV, Small Cap Pure Growth, RZG, Transportation, XTN, Global Producers, FXR, IPOs, FPX, Aerospace, PPA, Pharmaceuticals, PJP,  Media, PSP, Global Consumer Discretionary, RXI, trading higher.  And with Global Industrials, IPN, Resorts, BJK, Solar, TAN, and China Industrials, CHII, trading lower as   William Selway and Brian Chappatta of Bloomberg report A Chinese manufacturing index unexpectedly fell to a three-month low as output gains eased and employment weakened, suggesting the world’s second-largest economy is vulnerable to a slowdown. The preliminary reading of 50.5 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with a final figure of 50.8 in November and the 50.9 median estimate .

Global Financials, IXG, traded 0.5%, with European financials, EUFN, Regional Banks, KRE, and Stockbrokers, IAI, trading higher and National Bank of Greece, NBG, trading strongly loer.  Brazil Financials, BRAF, and Chinese Financials, CHIX, traded lower.

Nation Investment, EFA, traded 0.6% higher; as the Eurozone, EZU, the Nikkei, NKY, Asia Excluding Japan, EPP, and the US, VTI, traded higher. India, INP, traded strongly higher. Greece, GREK, Brazil, EWZ, Turkey, TUR, the Philippines, Indonesia, IDX, Thailand, Malaysia, EWM, and Ching YAO, traded lower.

Energy Production, XOP, and Small Cap Energy, PSCE, traded higher.

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, which foretells those things which must shortly come to pass, these being presented in Revelation 1:1, means a series of events, that once they begin, as they did on October 23, 2013, when 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, presented in Revelation 6:1-2.

The Rider on the White Horse, who has a bow, yet no arrows, symbolizing his economic sovereignty over the world, is effecting a bloodless global coup d’état, and is transferring sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%, and by steepening the 10 30 US Sovereign Debt Yield Curve, TNX:$TYX, seen in the Steepner ETF, STPP, steepening, thereby destroying fiat money.

An 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. The bond vigilantes are in full control of the “Means of Economic Destructionism”, and it is not oversold, and the sell of Credit, AGG, and the 10 Year US Notes, TLT, is not overdone.  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.

On Friday, December, 20, 2013, the bond vigilantes took profit on the rise in the Benchmark Interest Rate, ^TNX, the “Means of Economic Destructionism”, letting it fall to 2.88%, and the US Ten Year Notes, TLT, rose; their chart suggests that they will do so, but not for long.

Having the “Means of Economic Destructionism”, and given that the world has pivoted from liberalism’s creditism, corporatism and globalism, into authoritarianism’s regionalism, the bond vigilantes and investors, should be selling into pips, that is rises, in the US Ten Year Notes, TLT, as in a bear market one sells into pips, just like in a bull market one buys into dips.

During the former age, that is the age of investment choice, the bankers and the investor had the  “Means of Economic Inflationism”, and participated in riskless risk-on investing, seen in the Risk On ETN, ONN, rising in value. Now, inasmuch as the bond vigilantes, have taken all into new age of debt servitude, one should be short selling, as the Risk OFF ETN, OFF, will be rising in value. One can follow credit ETFs, by using this Finviz Screener.

Bloomberg reports Gold climbs from lowest close since 2010 as Goldman sees losses

4)  … Summary of investment activity for the week ending December 20, 2013, reflects the dynamo of regionalism is active in destructionism, as the Rider On The White Horse, who has the bow of economic sovereignty, carrying the Bow of Economic Sovereignty, seen in Revelation 6:1-2,  has terminated nation state democracies and the banker regime of floating currencies. The Fed is dead, Jesus Christ in releasing the First Horseman of the Apocalypse, has slain the Creature from Jekyll Island, and is bringing forth a much more terrible monster, the beast of regional governance and totalitarian collectivism, seen in Revelation 13:1-4

Liberalism was the age of creditism, corporatism and globalism, through schemes of debt trade investing and currency carry trade investing, ie the EURJPY and the USDJPY, fiat wealth swelled, in an Elliott Wave 2 High, and is now ready to enter an Elliott Wave 3 Down on the exhaustion of the world central banks monetary authority, as its monetary policies have crossed the rubicon of sound monetary policy and have made money good investments bad; such include the Emerging Markets, EE, the World Small Cap Stocks, VSS, and Yield Bearing Investments, such as Leveraged Buyouts, PSP. Zero Hedge posts BofAML closes USDJPY, and warns bulls beware.  And Reuters reports Dollar falls from five-year high vs Yen

Liberalism’s scheme of debt trade investing is seen in the Andrew Bolger FT report Investors’ hunger for yield in a low interest rate environment has led to the best year for global high-yield corporate debt on record, according to Thomson Reuters. It has reached $473bn this year, already up 18% over last year’s total. For the fourth quarter of 2013, global corporate debt totalled $111bn, a 1% decrease from the third quarter.

World Stocks, VT 1.7%, and World Small Cap Stocks, VSS, -1.2%

Networking, IGN 4.4%

Media, PBS 4.3

Internet Retailing, FDN 4.2

Nasdaq Internet, PNQI 4.0

Biotechnology, IBB 3.9

Small Cap Industrial, PSCI 3.8

Small Cap Consumer Discretionary, PSCD 3.2

Pharmaceuticals, PJP 3.7

Software, IGV 3.6

Shipping, SEA 3.5

Aerospace and Defense, PPA 3.4

Semiconductors, SOXX 3.3

Global Industrial Producers, FXR 3.2

Paper Producers, WOOD 3.1

Small Cap Pure Value, RZV 2.8

Small Cap Pure Growth, RZG 2.7

IPOs, FPX 2.6

Global Financials, IXG 2.5%

Investment Bankers, KCE 4.1%

European Financials, EUFN 4.0

Stockbrokers, IAI 3.0

Too Big To Fail Banks, RWW 2.9

Regional Banks, KRE 2.6

India Earning, EPI 2.6

China Financials, CHIX -2.2

National Bank of Greece, NBG -4.6

Simon Rabinovitch of FT reports: “An emergency cash injection by the Chinese central bank failed to calm the country’s lenders as money market rates climbed to dangerously high levels. Analysts cited a variety of technical factors for the tightness in the Chinese financial system, but the sudden run-up in rates was an uncomfortable echo of a cash crunch that rattled global markets earlier this year. Investors were alarmed at the potential for a repeat of that squeeze. The Shanghai Composite, the country’s main equities index, fell 2%. The nine-day decline for Chinese stocks is their worst losing streak in nearly two decades. Concerns focused on the rates at which Chinese banks lend to each other. The seven-day bond repurchase rate, a key gauge of short-term liquidity, was emblematic of their reluctance to part with cash. It averaged 7.6% in morning trading on Friday, its highest since the crunch that hit China in late June. That was up 100 bps from Thursday and far above the 4.3% level at which it traded just a week ago. The sharp increase occurred despite the central bank’s highly unusual decision to conduct a ‘short-term liquidity operation’. CBN reported that the short-term injection was worth Rmb200bn ($33bn), a large amount, Lu Ting, an economist with Bank of America Merrill Lynch, said China’s financial system was entering a new era and policy makers were struggling to adapt

Nation Investment EFA 2.5%

US Stocks, VTI 2.0%

Eurozone, EZU 3.2

Asia Excluding Japan, EPP 2.0

Nikkei, NKY 2.1

Brazil, EWZ —

Russia, RSX 2.6

India, INP 3.1

China, YAO -1.9

Spain, EWP 4.0%

Germany, EWG 3.4

German Small Caps, GERJ, 3.3

Finland, EFNL 3.6

Netherlands, EWN 3.5

Denmark EDEN 2.9

Ireland, EIRL 2.1

Greece, GREK -2.6

Sweden, EWD 4.0%

Switzerland, EWL 2.6

George Krum posts The State of the Trend providing the chart of $SPX at $1818, up 2.4%.

Dividend Growth VIG 2.0% with Global Telecom, IST, 1.5%, such as Sprint, S, 16.7%

Leveraged Buyouts PSP -3.6%

Michael Noonan posts in Safehaven.com Gold – A supressed market remains suppressed, but for how long? And provides a chart of the US Dollar, $USD, at $80.75. Gold,  GLD -2.8%  and Silver, SLV -1.7%.  Spot Gold, $GOLD, closed the week at $1,200; the Gold ETF, at 116.

An inquiring mind asks, were you named the investor of the year? Well, Time Magazine has named Carl Icahn as investor of the year. Were you smart enough to invest with Icahn Enterprises LP, IEP?

I’m not an apologist, rather I am a minister of God, and in ministering to you, I must relate the truth that God designed liberalism to be the age of investment choice, and one of the best investments was in vice stocks, as is seen in the ongoing Yahoo Finance Chart of Fidelity Mutual Funds, VICEX, and its components MGM, WYNN, LVS, BA, MO, LO, RAI, and DEO. Furthermore, does it offend you that Jesus Christ, the Great God of the Universe, would take filthy lucre and make it king of liberalism’s paradigm and age; and use it to build the US Dollar Hegemonic Empire to be the defining global kick ass, might makes right hegemon of all time, as Chris Rossini writes in Economic Policy Journal Bully Boys Teddy, Willy, & Barry trample liberty and strengthen the executive at every opportunity?

I am not offended, as Jesus in full glory of Ephesians 1:10, affected the Economy of God throughout the world, to have produced the most moral hazard based prosperity and interventionist nation state experience possible, on November, 29, 2013, and running through December 20, 2013.

Such an achievement was the Lord God acting in dispensation, that is in the administrative oversight of all things economic and political, to mature, complete, fulfill and perfect, a life experience in investment choice, coming from the inflationism of the dynamos of creditism, corporatism, and globalism, all based upon schemes of a Federal Reserve based debt trade and Global Banking currency carry trade investing.  This dispensation, being the very heart and mind experience of the Apostle Paul, as he wrote to the Ephesians in Ephesians 1:10.  I ask, just who were the saints at Ephesus?  They were the elect of God, those chosen from time past to hear of their appointment by God, in grace and truth, so as to be set free from the slavery of sin, that is doubt, and know the freedom of life in Christ.

This grand experience began to come to an when Jesus Christ, opened the First Seal of the Scroll of End Time Events on October 23, 2013, and 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 economic sovereignty over the world.

He effected a bloodless global coup d’état, and PIVOTED the world from the age and paradigm of liberalism to that of authoritarianism, and transferred sovereignty from traditional democracy strongholds, to nannycrats of all types to effect totalitarian collectivism, as evidenced by the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX,  the “Means of Economic Destructionism”, higher from 2.48%, and the currency traders selling the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, putting to fiat money to death, thus introducing debt deflation, monetary deflation, credit exhaustion, and recession worldwide.

Jesus Christ finally put the monster in charge of liberalism, The Creature from Jekyll Island, to death between November 29, 2013, and December 20, 2013, when fiat wealth traded up to its rally high, and then traded lower in December, as is seen in the ongoing Yahoo Finance Chart of VT, IXG, EFA, VTI, EZU, EPP, EEM, VICEX, and FAGIX.

Thus, Jesus Christ is terminating liberalism as both an age and a paradigm, and is confirming this  with its levers of investment liquidity, the debt trade, Junk Bonds, JNK, and the Euro Yen  EUR/JPY, and US Dolllar Yen USD/JPY, currency carry trades, all  toping out.  Soon  US Stocks, VTI trading lower, on an unwinding Ultra Long Euro,  EUR,  and Ultra Short Yen, YCS, trade; which will be seen in the combined ongoing Yahoo Finance chart of the three.

Rather than looking in the economic rear view mirror, and calling to End the Fed, one should be looking and searching bible commentary to come to understand the Beast Regime, Revelation 13:1-4, its Sovereign, Revelation 13:5-10, and its Seignior, Revelation 13:11-18, that is the top dog monetary and economic lord, who in minting diktat money takes a cut, and to understand that the bond vigilantes operate the “Means of Economic Destructionism”, that is the Benchmark Interest Rate, $TNX, and to understand that nannycrats are rising to power, working in the dynamo of regionalism, which is powering up diktat policies of regional governance, and schemes of totalitarian collectivism.

Mike Mish Shedlock reports Average 30-Year mortgage rate hits 4.47%: Affordability check

As soon as the US Federal Reserve Announcement of Tapering was released, the bond vigilantes exerted control over the Benchmark Interest, ^TNX, and called the “Means of Economic Destructionism”, higher once again to 2.88%. Disinflation, that is falling demand, falling household formation, and falling consumer goods prices, are defining characteristics of economic recession; that will be further enforced by ongoing austerity of the new monster of regional governance and its totalitarian collectivist nannycrats, that is replacing the Creature from Jekyll Island.

Jesus Christ is acting in dispensation, is maturing, perfecting, and completing authoritarianism, through releasing all of the Four Horsemen of the Apocalypse to accomplish a deflationary bust, seen in Revelation 6:1-8, and bringing it to its zenith through debt servitude, where there will be an ever increasing crushing economic recession and austerity, as one experiences economic life in the dynamo of regionalism, as is foretold in Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.

Buying homes on credit was an economic activity where one operated in the dynamo of liberalism’s creditism and corporatism.

Such will now be greatly curtailed, as Jesus Christ is acting in dispensation, maturing, perfecting, and completing authoritarianism, through releasing all of the Four Horsemen of the Apocalypse, to accomplish a deflationary bust, seen in Revelation 6:1-8, and is bringing it to its zenith, through debt servitude, where there will be ever increasing crushing economic recession and austerity, as one experiences economic life in the dynamo of regionalism, as is foretold in Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.

The bond vigilantes in calling the Benchmark Interest Rate, ^TNX, and the currency traders in selling the World’s Major Currencies, DBV, and the Emerging Market Currencies, began destroying fiat money on October 23, 2013, and then fiat wealth on December 20, 2013. Through their combined actions they are increasing the economic costs of household formation and maintaining a home.

Dr. Ed Yardeni asks Another soft patch ahead? The rebound in the chart of the Citigroup Economic Surprise Index over the past 10 days might not be sustainable into the start of next year. I’m not turning pessimistic about the outlook for 2014. I am just raising a warning flag given the remarkable increase in inventories recently and weakness in pricing.

Open Europe posts EU member states agree to “deepen defence cooperation” Irish Times Telegraph Irish Times: Ashton European Voice European Voice 2 Euractiv BBC Welt Welt 2 Reuters FAZ Le Monde Times Irish Independent European Council conclusions: Security and Defence Policy

EU member states agreed yesterday to make a “strong commitment to the further development of a credible and effective CSDP [Common Security and Defence Policy], in accordance with the Lisbon Treaty.” Measures include more flexible and deployable EU Battle groups, changes to how EU missions are financed as well as co-operation on drone, satellite, refuelling aircraft and cyber-security development “supported by the European Defence Agency”. Referring to reports that France had hoped to allow for EU funding of its current mission in the Central African Republic, Le Monde cites President Hollande as saying, “We got what we could get”, while adding that he hopes to transform it into an EU mission but that only Poland has so far expressed willingness to get involved. David Cameron said, “It makes sense for nation states to cooperate over matters of defence to keep us safer”, before stating the EU summit conclusions did not refer to an EU army.

Dr. Housing Bubble writes the thought provoking article Is California gentrifying the middle class out of the state?

Intellilhub reports Now that Obama is allowing chicken from China

Dr Sircus writes of the new normal of Ice age winter; and Elaine Meinel Supkis writes frequently on the subject of the new normal of whether phenomena, posts Global warming fanatics ban all contrary debate while utterly ignoring severe cold covering North America and writes Snow In Egypt: Global cooling more and more obvious, communicating the end of global warming.

WeLiveSecurity communicates of the coming cashless society Biometric ‘Smart ID’ card could offer the ultimate in portable security.  A new ‘Smart ID’ card, BluStor, aims to “eliminate hacking and identity theft”, using a combination of voiceprints, fingerprints and iris readings and connecting to mobile devices via Bluetooth, so an app can confirm a user’s ID instantly. The card stores biometric details for users, and connects to BluStor’s Secure Mobile Briefcase app, which checks fingerprints, iris scans or voiceprints against the ones stored on the card, according to a report by Biometric Update.

For me, there are two things worthy to invest in. The first is an ism.  In EconomicReview Journal, I blog on the dynamo of regionalism, as I comment on Liberalism and Authoritarianism, in light of dispensationalism.  And the second is keeping Christ’s Word and not denying His Presence And Authority.

An ism is defined as a process that produces a state-of-being from ideas; one adopts an ideology, and then embraces an ism, and the two produce the individual’s state-of-being, where one has life experience.

There be many isms; every person, has an ism: each individual has economic action out of some movement.

Liberalism’s dynamos of creditism, corporatism, and globalism established economic systems such as India’s terrifically corrupt capitalism, France’s municipal finance socialism, Greece’s pork and patronage socialism, Australia’s crony capitalism. People living in democratic nation states had life experience out of liberalism’s isms. Some strive to be libertarians, and read Hayek, Mises, and Rothbard, string to have experience out of libertarianism. People had economic action out of the movement of bankers and nation state leaders operating in policies of investment choice and schemes of debt trade investing and currency carry trade investing.

Mike Head of WSWS writes Australia’s Auto closures pose need for a global workers’ strategy. The ending of production in an entire country is a concentrated expression of the ongoing, ruthless restructuring of the global auto industry; and calls for commitment to a life of Trotsky socialism, specifically a new international socialist strategy.

Authoritarianism’s singular dynamo of regionalism produces regional governance and totalitarian collectivism; increasingly people will be living in regions of economic governance, and having life out of totalitarian collectivism.  Increasingly people will have economic action out of the movement of regional nannycrats operating in policies of diktat and schemes of debt servitude.

Libertarian Mike Mish Shedlock writes Twenty-Three hurt in Spain protest against anti protest legislation; Peripheral Europe powder keg ready to explode.  As bad as all this is, the Euro made matters far worse. It can’t and won’t last.

Please consider that the Euro was conceived and designed in eternity past by God to be enduring. He produced the Euro out of 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.

Through the singular dynamo of regionalism, a Euro Superstate, that is a One Euro Government, will emerge, as is foretold in bible prophecy of Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.

For most people, the ism of regionalism, will produce debt servitude in the diktat of nannycrats as the way of life under authoritarianism. But as for me, I commit to dispensationalism, and keep Christ’s Word, and do not deny His Name, as I am committed to living in His presence and authority, and have movement out of His Spirit.

The Independent reports Unemployed told to leave Ireland in desperate move to slash welfare costs

Bill Bonner writes The Affordable Care Act is not designed to help anyone live longer or to lower the cost of healthcare. You may care about those things. But the people who run the government have their own motives and incentives. And they are not the same as yours. Instead, they aim to satisfy a more basic desire of government: to control people and transfer wealth.

Government has always desired to control people and transfer wealth; now the Government is getting supersized as part of God’s plan to have the Beast of Revelation 13:1-4 replace the Creature from Jekyll Island.

Each person, has time, talent, and treasure, that is personal property; and is invested in something. Each should have a definition of money; money is defined as the credit and flow of a household or stronghold.

The Apostle Paul reveals in Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, and Colossians 1:2, that Jesus Christ is in the Sovereign Lord of the Universe, and that He is active in dispensation, that is He is exercising administrative management of all things, in each of mankind’s ages, to make them full and complete.

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

Dispensationalism produces both the “saints” and the “aints”.

The Dispensation Economics Manifest, that is the dispensation ideology, is the foundation for a life experience of economic action in the person of Christ, having His virtue and ethics, and this establishes one as elect, living in spirituality and righteousness, separating from fiat who live in death, carnality and iniquity, and that Jesus Christ is introducing Fifteen New Things, which will result in the utter destruction of society as it currently exists.

Dispensationalism presents that Jesus Christ, opened the First Seal of the Scroll of End Time Events on October 23, 2013, and released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrow. This is the Bow of Economic Sovereignty, and symbolizes his economic sovereignty over the world, to effect a bloodless global coup d’état, and PIVOTED the world from the age and paradigm of liberalism to that of authoritarianism, and transferred sovereignty from traditional democracy strongholds to nannycrats of all types to effect totalitarian collectivism, as evidenced by the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, and the currency traders selling the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, thus introducing debt deflation, monetary deflation, credit exhaustion, and recession worldwide.

Disinflation, that is falling demand, falling household formation, and falling consumer goods prices, are defining characteristics of economic recession; that will be further enforced by ongoing austerity of the new monster of regional governance and its totalitarian collectivist nannycrats, that is replacing the Creature from Jekyll Island.

Under liberalism, investors in democracies were the legislators of economic value and the legislators of economic life that shape one’s means and one’s ends.

Now, nannycrats working in public private partnerships like Obamacare are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

5) … A guide to experiencing the full salvation of God.

Jesus, being the Sovereign Lord God, has domain over all, and rules sovereignly in his realm where He provides the fullness of salvation. Wayne Brown presents Today’s Bible Verse Revelation 3:7-13

An inquiring mind asks, does Revelation 1:1 indicate a near to the original readers and hearers fulfillment; or does it indicate an ongoing fulfillment, or an end times fulfillment?

If one be of the preterist viewpoint, then one believes Seven reasons Revelation is about a past local judgement of Jerusalem.

Please open the door, and “enter the concept” that the book was written to believers of all ages, especially for the end time saints, to strengthen them so as not to fall prey to the best Beast Regime, Revelation 3:1-4, or the Beast Ruler, Revelation 3:5-10, or the Beast Monetary And Economic Lord, Revelation 1:11-18,  this is especially true if one believes that Jesus has an ongoing economy of God as presented in Ephesians 1:10.

Joseph Franks writes The Revelation of Jesus given to John is not written about seven church ages but about obedience, and communicates about rebellion or submission.

He concludes writing, Let us be less satisfied with external prosperity and reputation, and more concerned regarding internal vitality and character.  Many of these congregations looked good on the outside, especially the church from Laodicea.  But God sees the heart, and he is not as easily impressed.  It would be a shame to have sharp buildings, impressive ministries but no Holy Spirit.

Keep your eye on the prize.  Like Abraham, we are to long for the heavenly city.  Like John, let us clothe ourselves with the garment of God so we can enjoy the presence of God.  Some day soon we will be in the place of God, and there we will eat with God.  Paradise is not here yet, but it is coming.

While I live in Christ, I reside in Claritas Prizm 66, that is in Low Rise Living, in Bellingham Washington’s Urban Core in the Sea Breeze Apartments, where there are many psychopaths.

Most assuredly, the Nephilim have returned, for as Christ communicated, as it was in the days of Noah, so it shall be in the days of the coming of the Son of Man. These creatures, lacking remorse and seeking to be preeminent, have no enduring person; rather they are chameleons, who get life satisfaction from having social flare, and being a busy body in my affairs. They are like the Trilobite which impregnated the Engineer in the movie Prometheus.  The psychopaths, having no remorse, and no capability or desire to relate in ethics and virtue, are truly dangerous people; and these bears, lions, and leopards, roam about here in the inner city, getting a franchise of SSI/SSD, Food Stamps, Section 8 vouchers, and Utility Assistance.  From such I have a “no contact order from God”; I must withdraw, yes, I must turn away.

Paul Hilt asks Did the Giants of Genesis 6 come from the children of men and angels?  I relate that   archaeologists are continually finding their skulls, evidencing that they did indeed exist. And L.A. Marzulli, author, lecturer, and researcher talks about some of his research and books that deal with ancient history of the giants.

Most assuredly the Nephilim have returned and are in occupation; these include parabatai Eilidh and Sarah of cofounders of British Nephilim, who inform City of Bones is out on DVD in America. This twosome dabble in supernatural stories that have become cultural phenomena, like  “Twilight” and “The Mortal Instruments”.

In conclusion, please consider Christ’s Titles, and that He Who Holds of the Keys of David, Revelation 3:7, …  is the Faithful and True Witness, Revelation 1:5; 3:14,  … and is there helping you be faithful so as to come to know the full salvation of God.

The Death Of Fiat Money Will Be The Cause Of Worldwide Recession … And Will Be The Genesis Factor Of Both A Global Financial System Crash And The Rise Of Trust In Regional Governance

December 1, 2013

Financial Market Report for the Week Ending November 29, 2013Dear

Dear Reader: One may have a better reading experience by  using the Google Drive presentation of this article found here.

1)  … Previously on Friday, November 22, 2013, Jesus Christ working in dispensation, that is the economy of God, was seen producing liberalism’s peak fiat wealth.

The dispensation economics manifest presents the concept that Jesus Christ, as the Heir of God, has been appointed with dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, where He is to mature and perfect every age, much like a ship’s captain completes the ship’s manifest before setting sail.

Under liberalism, fiat wealth investments were inflated via central banks policies of investment choice, and schemes of credit and carry trade investment, based upon the sovereignty of democratic nation states, such as the US, VTI, and the UK, EWU, and their Treasury Debt, TLT, and BWX.  Zero Hedge reports The S&P Closes Above 1800, Posts 7th Consecutive Weekly Increase: Longest Streak Since 2007.  It’s likely that Friday November 22, 2013 was the completion of the Creature From Jekyll Island’s, the ECB’s LTROs  and OMT’s, and PBOC’s, monetary stimulus. Thus completing a regulatory capture, clientelism and crony capitalism, as well as a European Socialism, and Greek Socialism, and Chinese Communism, fiat wealth experience, that came through moral hazard based investing. Certainly the financial market rally is getting “long in the tooth”

One of liberalism’s most terrifically inflated fiat investments is UK based Prudential Life Insurance, PUK, which has risen 450% in the last five years; its seigniorage, that is its moneyness, has come through trust in the long term debt that it has invested in. Another example of terrifically inflated fiat investments include 3M Co, MMM, and Rite Aid, RAD, whose values have risen parabolically since the 20008 Financial Collapse. And likewise the Small Cap Growth Stocks, RZG, such as CLW, KWR, HEES, and BDC, the Nikkei, NKY, and China, YAO, rose on money coming out of Bonds, BOND, as well as on currency carry trade investing.

With the rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48 % on October 23, 2013, Jesus Christ has opened the First Seal on The Scroll Of End Time Events, and has 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, who will rule in regional governance policies of diktat. and totalitarian collectivism schemes of debt servitude.

Beginning on October 23, 2013, the strong rise in the Interest Rate on the US Ten Year Note, ^TNX, and the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, has destroyed yield bearing investments such as Utilities, XLU, Real Estate, IYR, DRW, and had destroyed currency carry trade investments in the Emerging Markets, EEM, and their banks, such as BRAF, and EPI, in Brazil, EWZ, in Thailand, THD, and in its investment twin, Philippines, EPHE, and in Australia, EWA, KROO, ENZL, its bank WBK, and iron ore miner BHP.

As nations lose their sovereignty to the bond vigilantes and the currency traders through debt deflation, the Interest Rate on the US Ten Year Note, ^TNX, is going substantially higher, further destroying fiat money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, stimulating investors out of Stocks, VT, and creating an investment demand for gold bullion.

In the age of authoritarianism, there are only two forms of sovereign wealth, and sustainable wealth, these being diktat, and the physical possession of gold bullion. As of November 22, 2013, the price of Spot Gold, $GOLD, traded by the ETF, GLD, fell to $1,242, which is the cash price of production for a number gold producers; thus a bottom has been established for gold.

2)  … Booms are always followed by a horrific bust; such is the nature of the business cycle; the final business cycle will see the rise of ten regional kings to rule in the world’s ten regions.

The world is entering Kondratieff Winter, the final business cycle. The death of fiat money means monetary deflation, CPI Deflation, as well as Wage Deflation, and is the genesis factor for both intense global recession and the rise of beast regime of regional governance and totalitarian collectivism, presented in Revelation 13:1-4.

Out of turmoil of EU soveign insolvency, banking insolvency, and corporate insolvency,such as the tremendous swell in France as reported by Mike Mish Shedlock, will come unifying economic and political leadership. There is waiting in the wing’s of Europe’s stage, one who will soon step into the limelight, one who will work in regional framework agreements to provide order out of chaos. The Sovereign, Revelation 13:5-10, and his partner, the Seignior, Revelation 13:11-18, the top dog money lord who in coining money, takes a cut, will rise to power in the EU, to become the world’s preeminent king. The Seignior will create goodwill, that is create “good face”, for the Sovereign, and his rule over the Eurozone. Alexis Tsipras, the leader of Greece’s far-left SYRIZA party and a candidate to European Commission Presidency, writes in the Guardian, The Left Can Unite To Build A better Europe.  “For millions of people, the European dream has turned into a nightmare. Eurobarometer surveys show the growing crisis of confidence in the EU and the catastrophic rise in the popularity of far-right parties” … “ Austerity is wreaking havoc, It is our destiny to fight back”.

When the currency traders call the EUR/JPY lower from its Friday November 22, 2013 value of 137.43, as bond vigilantes call the Interest Rate on the US Ten Year Note, ^TNX, consistently higher from 2.75%, then World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, the Eurozone, EZU, and European Financials, EUFN, will tumble like a house of cards, with the result that there will be terrible economic recession, with a grievous epicenter in France and the PIIGS, that is Portugal, Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, and a falling rate of wage inflation in the US, seen in FRED AHETPI, trending lower, as employers simply won’t be able to continually highly  reward their laborers.

Reporting from Open Europe reports that Greece and Ireland have been the test beds for evolving Eurozone regional economic government.  Now with regional nannycrats having pooled sovereignty, in particular the sovereignty of diktat in regional governance, and in providing seigniorage schemes of debt servitude in totalitarian collectivism, such as exercising budget powers in demanding more austerity in Italy and Spain, regionalism will be the dynamo of economics, with the aim of establishing regional security, stability, and sustainability, to counter national economic recession.

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.  Yes, diktat policies of regional governance and fiscal and debt servitude schemes of totalitarian collectivism, is the EU’s future.

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.

Liberalism was characterized by monetary inflation, and it fueling economic growth and global trade, where the banker regime financialized nation state fiat money. And Sober Look posts in Credit Writedowns Five Years Of QE And The Distributional Effects.  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, becoming the norm worldwide, 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.

Liberalism’s seigniorage, that is its moneyness, came via policies of credit, such as POMO, and carry trade investment, such as the EUR/JPY juicing up World Stocks, VT, and risk assets such as Small Cap Pure Growth, RZG, Small Cap Pure Value Stocks, RZV, Nation Investment in Ireland, EIRL, its bank, IRE, and its companies, such as Seagate, STX, and Ingersoll Rand, IR, 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: 10980, 10974, and now 10922. Just like fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, 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, will result in a new form of money, that being diktat money, where the components of M2 Money, such as savings accounts, 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 CPI deflation, and monetary deflation, that is the fall lower in the value of money, as well as the accumulation of money, like the pile of M2 Money, dwindling lower in nominal value. Ludwig Von Mises, wrote of the new order in Planned Chaos,

“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.”

Shaun Richards asks pessimistically in Mindful Money What Options Are Left For The European Central Bank?  The ECB faces a potential growth slowdown which when we consider is supposed to be in an economic recovery phase (after another recession) must disappoint it. Added to this are the recent signs of divergence in the Euro area with Germany living up to the locomotive stereotype but France and Italy left behind in a siding. So all the signals are green for further easing as  the latest 0.25% interest rate cut was as much for media spinning as for any likely real impact on the situation.

Today’s data from Spain only confirmed the disinflationary drumbeat of these times.  The annual rate of the Industrial Price Index stands at –0.2%, three tenths over that registered in September   The monthly variation rate of the Industrial Price Index is –0.6%.  We get an idea of the change in the situation here if we note that the annual rate of change was 3.9% in October 2012. We can add to this by noting that in September producer prices in Italy were falling at an annual rate of 1.8% and in October they were falling at an annual rate of 1.6%. Even Germany saw this. In October 2013 the index of producer prices for industrial products fell by 0.7% from the corresponding month of the preceding year. Indeed wholesale prices in Germany were falling at an annual rate of 2.7% in October.

The international agreement over Iran and its nuclear ambitions has seen the price of a barrel of Brent crude oil drop by nearly 2% this morning to around US $109 per barrel. Actually it has been at this sort of level for a while now which is part of the issue as the Euro has strengthened by 4% over the past year. So cheaper oil is good for economic growth but also generates disinflationary pressure.

John Mauldin communicates concepts of EU CPI deflation, monetary deflation, and economic recession in Thoughts From The Frontline PDF report Game of Thrones – European Style. Key measures of inflation are decelerating across the Eurozone, and the region is as close as it has ever been to a deflationary bust. It’s troubling enough that Eurozone headline CPI collapsed from 1.1% in August to 0.7% in September and that core CPI fell from 1.0% to 0.8% over the same period; but measures of EU money supply (M1, M2, & M3) are also decelerating rapidly, suggesting that the deflationary trend will most likely continue without decisive action from the ECB, which has been strangely absent from the current rush by central bankers to print mountains of money.

There are two major problems associated with an extended period of ultra-low inflation or deflation in the Eurozone.

First, peripheral countries will have a much harder time servicing and retiring their debts without the extra boost to nominal GDP that positive inflation provides. Even if you are working on lowering the absolute amount of your debt, it is impossible to improve your debt-to-GDP ratio when GDP is falling and your debts are growing. Moreover, outright deflation works to crush debtors (and debtor nations) by increasing the real weight of the debt and triggering the destructive debt-deflation cycle described in Irving Fisher’s Debt Deflation Theory of Great Depressions (1933).

The second major problem is that currency appreciation always accompanies deflation, all else being constant, so that affected economies also become less competitive in terms of exports at the very moment that a positive trade balance is most important.

These are problems that I have written about for years. The effects of a common currency and monetary policy are spread around very unevenly in Europe, creating a boom in certain countries (chiefly Germany) and a sad bust in others. This disparity is the very predictable result of a currency union sans fiscal union. And trying to fix the Eurozone fiscal structure after the fact is akin to fixing the engine of an airplane while flying at 30,000 feet.

The rapidly weakening inflation we are seeing in Europe is a very big deal, because deflation can become a chronic, crushing condition, making it even harder to deal with excessive debt, under capitalized banks, and runaway fiscal deficits in major countries like Spain, Italy, and France. Over time the masses begin to expect falling rather than rising prices, and these expectations can be very difficult to reverse without credible, decisive, and powerful action from the central bank.

Up to this point, the ECB has been almost completely unwilling to squarely confront the issues at hand. The ECB balance sheet has been inexplicably shrinking for the past year (more on that in a moment). That is why ultra-low inflation readings should not come as a surprise. Not only has the ECB not been easing, it has actually tightened its balance sheet considerably over the past year. To many observers, this trend clearly demonstrates German dominance within the ECB. ECB restraint has kept the euro entirely too strong, at least for certain countries in the EZ, again showing the dysfunctionality of the common monetary union. A 2013 study from Deutsche Bank says the “pain threshold” for the EUR/USD exchange rate (the level at which further appreciation impairs competitiveness and economic recovery) is $1.79 for Germany, $1.24 for France, and $1.17 for Italy.

Shown against the current EUR/USD exchange rate, the “pain thresholds” make it obvious that Germany is sitting pretty while France and Italy are getting crushed by the strong euro. Although Spain shows a higher threshold than Germany, gains in Spanish competitiveness are really attributable to mass unemployment and a major fall in unit labor costs. Spain has already taken a tremendous amount of pain, while France and Italy are just starting to absorb theirs. Arnaud Montebourg, French industry minister, claims that each 10% rise in the EUR exchange rate costs France 150,000 jobs, and the trade-weighted EUR index has risen by 9% in the past 15 months. The strong euro is inflicting damage on the textile industry and other low-margin sectors across Southern Europe. As Ambrose Evans-Pritchard notes, “Any policy set at this stage for Club Med needs is destructive for Germany, and any policy set for German needs is destructive for Club Med. You cannot set a workable policy. The intra-EMU gap is already too wide.”

The European landscape has changed so that Germany is benefiting at the periphery’s expense and the uncompetitive periphery is losing major export share to Asia. The European Union has broken down as a functioning system. France, Italy, and Spain should together pound their fists on the table, but they are not doing so because they delude themselves that they can go it alone.  Today there is only one country and only one in command: Germany. Romano Prodi, the Italian prime minister who prepared Italy for EMU membership in the 1990s and presided over the euro’s launch as European Commission chief.  Martin Wolf writes in the Financial Times that the OECD is insisting that Europe’s North South gap in labor competitiveness cannot be closed by putting all the burden of adjustment on already depressed economies in the south.

And let’s look at three more quotes from Ambrose (from separate columns over the past few weeks) that clearly illustrate the zeitgeist in Europe: Conflicting narratives of the crisis are emerging, pitting creditor and deficit states against one another. The central tenant of EMU doctrine is that countries will not reform unless they face a crisis, and their feet are held to the fire. There is a near religious belief in Berlin, evangelized by Brussels, and the EMU gang of five, that any let-up in austerity, any recourse to stimulus, let alone a new deal, is a gift to shirkers who want to dodge reform.

Yet the ECB surprised us all and cut its interest rates a few weeks ago. Does this signal potential rebellion within the ECB? A recognition that perhaps the crisis is coming to a new head? Mario Draghi denies that the Eurozone is slipping into a Japan-style deflation trap, but he admits the trend toward deflation is alarming (which is probably the most we can expect from a central banker trying to speak confidence into the markets). He claims the governing council is “wholly in agreement about the need to act,” but does his statement reflect a better appreciation of the situation by German inflation hawks or a revolt by debtor countries (France, Spain, Italy, Portugal, Greece, Ireland, et al.)? The question is, who is in control now? Does this “agreement” signal a major policy shift or a limited compromise by credit countries? The ECB had to do something. The rise of the euro was becoming deflationary and threatening to choke off growth…. It is very rare for a central bank to change its policy so dramatically from one month to the next, so something profound must have happened. – David Bloom, HSBC

Yet all this German bashing prompts a very spirited defense of prudence from my favorite irascible French curmudgeon, Charles Gave: When Keynesian policies are failing, as they always do,  proponents never fail to look for a scapegoat. Usually this is Germany, rebuked for the un-Keynesian practice of earning and saving. Our concern is that when German bashing reaches fever pitch, panic selling often follows. So when I see the U.S. Treasury once again going after the Germans, and that sentiment immediately seconded by the International Monetary Fund, the European Commission and prominent financial commentators, then I start to worry. If these guys have gotten to the desperate stage of rebuking Germany for being prudent and productive, then perhaps it is time to panic.

The euro may be fairly valued versus the US dollar, but it is not “fair value” for Germany and Italy to have the same exchange rate. German industry is slowly but surely destroying the Italian economy (in the French and the Spanish industries). This is what has always happened in history when two countries with different productivity rates are joined by a fixed exchange rate. The trading goods sectors of the one country with the highest productivity destroy the trading goods sector of the one with the lowest productivity. It cannot be otherwise. So the cashed-up Germans will keep doing what they do best: investing in their export industry, while the Italians are forced to stop investing. And since increases in salaries in Germany have been lower than increases in the country’s productivity, then we have both a cost of capital and a unit labor cost that is more favorable than in Italy. One would have to be brain-dead to invest in the trade goods sectors in Italy.

As long as the euro is around, European economies will keep diverging from each other. It cannot be otherwise. There is not going to be a returned equilibrium. The solution proposed by the US Treasury or various columnists in the FT is for Germany to do like everybody else: start wasting capital and moving to lower productivity. An interesting idea, which the British government under Mr. Brown explored at length, but the end result was not that pretty. And for some strange reason, this idea is not very popular in Germany.

My convictions thus are that: this is not a stable system; the Germans will not change their policies; the French or the Italians will not reform; the European economies will keep diverging; and anti-euro political groups will continue to rise in the EMU. If even one country elects an anti-euro party to the majority, then all bets are off.

Stories are beginning to percolate all over Europe but especially in France about the crisis that will be brewing next year. President Hollande’s approval rating has fallen to 15% (not a typo). This is a precipitous comedown for someone swept into power just last year by a small majority of French voters. Unemployment has risen to over 11%. A few months ago, the National Front party won handily in regional elections in liberal strongholds. Led by the fiery Marine Le Pen, it is very nationalist and anti-euro and favors protectionism and a different sort of socialism, but radical economic socialism nonetheless. This is not your father’s conservative party.

My friend Charles Gave, among many others, is convinced that the Eurozone cannot hold together. Forty percent of me agrees with him, yet the other sixty percent acknowledges the sincere desire among European leaders and many European citizens to maintain the union at all cost. And what a cost it will be. There must first be a serious banking union, and within the next year. If they can’t create a banking union, how can they expect to create a fiscal union, which is far more contentious and will require every one of the Eurozone nations to give up a great deal of fiscal sovereignty?

A decisive moment is coming for Europe. If winter is coming, can a French spring be far behind? Will we once again hear the cries of “Aux barricades, mes amis!”? Stay tuned.

Gordon T Long relates in Safehaven.com Euro Pressure Going Critical  The end stag economic issues inherent to European Socialism and Greek Socialism in a long enduring currency union. The EMU has now had Six quarters of recession, historic unemployment and slowing exports. And he posts this chart relating Since 2011 the flow of corporate loans in the EMU remains very weak.

Mike Mish Shedlock reports Founder Of Hollande Resignation Arrested For Insulting The President. Liberalism featured wildcat finance, a Doug Noland term, where bankers waived credit and carry trade wands of fiat money creation. Authoritarianism features wildcat governance where despots waive authoritarian and debt servitude clubs of diktat money creation.

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

On Monday, November 25, 2013,  Japan’s Bank, Sumitomo, SMFG, Chinese Financials, CHIX, and Brazil Financials, BRAF, led World Stocks, VT, -0.4%, Nation Investment, EFA, -0.3%, and Global Financials, IXG, -0.2%, lower, while Aggregate Credit, AGG, traded higher, commencing the see-saw destruction of fiat wealth and fiat money, and pivoting the stock markets from bull to bear, and pivoting the world from the age of liberalism, the era of investment choice, fully into the age of authoritarianism, the era of diktat, on fears that the world central bank’s monetary authority have crossed the rubicon of sound monetary policy, and have made money good investments bad.   Yes, as fiat wealth, Stocks, VT, traded 0.4% lower on Monday, November 25, 2013, the world pivoted from the economic paradigm of liberalism into the paradigm of authoritarianism.

Please consider the following concept as a foundation upon which future analysis can be built. Fiat money is defined as Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW.  If that is true then one can understand that concept, that the death of fiat money, which occurred on October 23, 2013, when the bond vigilantes called the Interest Rate on the Ten Year Note, ^TNX, higher from 2.48%, was decisively transmitted to fiat investments, that is Stocks, VT, on November 25, 2013, which traded 0.4% lower.

Sectors trading higher included, Biotechnology, IBB, Health Care Providers, IHF,  and Transportation, XTN.

Sectors trading lower included Social Media, SOCL, Solar Energy, TAN, and Steel Producers, SLX.

Yield bearing Investment sectors trading lower included Global Real Estate, DRW.

Small Cap Energy, PSCE, Energy Production, XOP, and Energy Service, OIH, traded lower on a lower price of Oil, USO.

Gold Miners, GDX, traded slightly lower and Silver Miners, SIL, traded slightly higher.

Countries trading higher included Inda, INP, SCIN, on higher banks, EPI.

On November 25, 2013, The BRICS, EEB, were led by the Brazil Financials, BRAF, the Chinese Financials, CHIX. And The Emerging Markets, EEM, were led lower by the Emerging Market Financials, EMFN.

On November 25, 2013, investors sold out of the concept of the Global Hot Money trade, this being seen in the strong sell of Thailand, THD, and Philippines, EPHE, as well as China, YAO, CHIX, ECNS, Russia, RSX, ERUS, Brazil, EWZ, EWZS, Mexico, EWW, Chile, ECH, and Indonesia, IDX.

Currency traders in their war of competitive currency devaluation against the world central banks, are successfully selling the Thai Baht, the Philippine Peso, the Russian Ruble, the Brazilian Real, BZF, the Mexico Peso, the Chile Peso, the Indonesia Rupiah, and the Peru Sol short, on the rise of the Interest Rate on the US Ten Year Note^, TNX, resulting in the destruction of nation investment in these Emerging Market Nations, EEM. Ask people living in these countries, if their money died, and they will respond yes, emphatically yes. And as a result their investments, that is their wealth died as is seen in the death of the Emerging Markets, EEM,  and individual stocks within each of the countries, such as in the Philippines, PHI, in Russia, MBT, in Brazil, ERJ, GFA, in Mexico KOF, SIM, in Chile, EOC,  and in Peru, SCCO.

On the rise of the Interest Rate on the US Ten Year Note, investors sold the investment linchpin of liberalism, that being globalism. With the paradigm of liberalism being undermined, a new paradigm is emerging, that being regionalism. It will serve to coordinate economic activity, commerce, and trade around the themes of regional security, stability and sustainability, thereby giving authoritarianism its power to rule in policies of diktat in regional governance in each of the world’s ten regions, and in schemes of debt servitude in every one of mankind’s seven institutions.

US Stocks, VTI, traded 0.1% lower, and the S&P 500, SPY, traded lower, 0.1% lower.  The $SPX traded lower to close at 1802 which is a 0.1% trade lower from its Elliott Wave 5 High of $1,804.The $NYSI traded lower to 319.49. Then $NYMO traded lower to 5.46. The $NYAD traded lower to -326. The $BPSPX traded lower to 83.06.  Of note, Trader Art posts  ($SPX, $SPY) % Bears plummets to a record low.

The US Fed’s QE has brought the S&P 500 up from 666 on March 23, 2009, when the US Treasury announced plans to buy Distressed Investments, such as those traded by Fidelity’s Mutual Fund FAGIX, to 1804, on November 25, 2013.  The US Fed’s trading out “money good” US Treasuries, for the most distressed of asset backed securities, underwrote investment confidence and served as the basis of trust in fiat money and further intervention, that is further stimulus, by the world central banks, to the point of providing Global ZIRP, which has underwritten investment growth in the Awesome Nine Sectors, Aerospace, PPA, Biotechnology, IBB, Pharmaceuticals, PJP, Spin Offs, CSD, Global Consumer Discretionary, RXI, Small Cap Pure Value, RZV, Small Cap Growth, RZG, Transportation, XTN, and Global Industrial Production, FXR.

Chinese Financials, CHIX, led China, YAO, lower, terminating the economic stimulus coming from  PBoC Governor Zhou’s liberalization of domestic interest rates and reduction of intervention in the foreign exchange market, as reported by MarketWatch.  Japan’s Bank, SMFG, led the Nikkei, NKY, lower on fears of the failure of Abenomics; the Yen, FXY, traded lower closing at 96.27.

Of great significant note, the EUR/JPY closed lower at 137.40, down from 137.43 on Friday November 22, 2013. The Eurozone, EZU, traded lower on fears of uncontrollable deflation; the Euro, FXE, traded lower closing at 133.70.

Oil, USO, and Unleaded Gas, UGA, led Commodities, DBC, lower. Natural Gas, UNG, Agricultural Commodities, RJA, JJA, Gold, GLD, and SLV, traded higher. The price of Spot Gold, $GOLD, closed higher at $1,248.

Aggregate Credit, AGG, traded higher, as the Interest Rate on the US Ten Year Note, traded slightly lower .

Bloomberg reports Abe’s Stimulus Folly May Destroy Yen and JGBs. Japanese Prime Minister Shinzo Abe’s reliance on fiscal and monetary easing to defeat deflation may precipitate a “plunge” in the yen and sovereign bonds, said Noriko Hama, an economics professor at Doshisha University’s Business School. “The Bank of Japan is no longer functioning as a proper central bank,” Hama said at a speech in Tokyo on Nov. 21, referring to the BOJ’s doubling of monthly bond purchases to more than 7 trillion yen ($68.8 billion) in April. “The scariest scenario, and the one we should be most wary of, is a bottomless crash in the yen,” as the global financial community loses faith in the currency, Hama said.

Bloomberg reports Oil Sinks on Iran Deal as Stocks Advance; Yen Slides. Crude oil headed for the biggest drop in three weeks after Iran agreed to limit its nuclear program in exchange for relief from some sanctions. Asian stocks climbed, while the yen fell to its weakest since May. Brent crude sank 2.2 percent to $108.62 a barrel by 12:32 p.m. in Tokyo. Futures on the Standard & Poor’s 500 Index, which capped a seventh weekly gain Nov. 22, rose 0.3 percent. The MSCI Asia Pacific Index added 0.4 percent, while credit risk in the region fell. The Yen dropped  0.5 percent while Thailand’s currency and equities slid amid protests in Bangkok with Smartknowledgeu reporting in Zero Hedge Thai Capital Plagued By the Biggest Anti-Government Protests in Years.

Bloomberg reports Europe Twin Woes Fester in Draghi Job-to-Inflation Fight. Europe’s twin woes of too little inflation and too many unemployed will dominate data due this week just as officials prepare forecasts backing the rationale for Mario Draghi’s surprise interest-rate cut. Inflation stayed close to the lowest level in almost four years in November with a reading of 0.8 percent.

On Tuesday, November 26, 2013, the death of fiat money, that is Credit, AGG, and Currencies, DBV, and CEW, transmitted death to periphery nation investment, by the short selling of the currency traders.  The death of fiat money, that started on October 23, 2013, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, transmitted death to Emerging Market Mining, EEMT, Emerging Market Financials, EMFN, Industrial Miners, PICK, Steel Producers, SLX, and Metal Manufacturers, XME, largely by the currency traders selling the Brazilian Real, BZF, and the Australian Dollar, FXA, thus establishing the end of profitable investment choice in global mining and in industrial production.  Debt deflation, that is currency deflation, at the hands of the currency traders, forced Emerging Market bonds, EMB, lower as well, on a day when other credit investments traded higher as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.70%.

Gordon T Long relates in Safehaven.com Euro Pressure Going Critical posts chart showing the Current Account Balances of the Peripheral BRICS, where Brazil, EWZ, Peru, EPU, Chile, ECH, and India, INP, reading terrifically red current account balances; with the first three nations have born the greatest disinvestment and short selling.

Brazil Financials, BRAF, traded lower, taking Emerging Market Financials, EMFN, Brazil, EWZ, EWZS, and its Paper Producer, FBR, on a lower Brazilian Real, BZF. Emerging Market Miners, EMMT, such as Brazil’s VALE, traded lower on lower Emerging Market Currencies, CEW.

And the death of fiat money, on October 23, 2013, transmitted death to yield bearing Electric Utility Stock Invesment, XLU, on November 26, 2013, immediately after earnings season. These large scale, debt intensive, high yield industrial investments died a delayed death; these are among the first of globalism’s yield bearing investment investment gems to lose their glory. Liberalism’s pursuit of yield rally started to come to an end on November 26, 2013, with the sale of hugely debt burdened Electric Utilities, XLU, These include Electric Utilities, OGE, CNP, AES, NEE, and LNT.  The Debt Trade, that along with Currency Carry Trade Investment, such as AUD/JPY, which has been the basis of Globalism and the basis of liberalism, as both as an age, and as a paradigm, is peaking out.

And with the death of the Global Hot Money trade, seen in Thailand, THD, Philippines, EPHE, Peru, EPU, Chile, ECH, Brazil, EWZ, trading lower on November, 25, 2013, and now with the failure of  Global Industrial Production Investment, seen in Industrial Miners, PICK, Steel, SLX, and Metal Manufacturing, XME, trading lower, liberalism as the age of invesment choice, and its schemes of credit and carry trade investment, are being relegated to the dustbin of history.

With fiat money, that is Credit, AGG, and Currencies, DBV, CEW, dead as a doornail, and now yield bearing fiat wealth Electric Utilities, XLU, failing, and Global Hot Money fiat wealth, THD, EPHE, EWZ, failing, and Global Industrial Production wealth, PICK, SLX, and XME, failing, its reasonable to believe that World Stocks, VT, Nation State Investment, EFA, and Financial Institution Investment, EFA, will begin to fail.

The Apostle Paul’s word of 2 Corinthians 5:17-18 communicates that all things be of God. And the Apostle John’s bible prophecy of Revelation 13:1-4, foretells that out of waves of sovereign insolvency and banking insolvency, that liberalism will be replaced by authoritarianism; specifically that regional governance will come to rule in the world’s ten regions, and totalitarian collectivism to occupy in each of mankind’s seven institutions.  The failure of the US Dollar Hegemonic Empire, known also as the banker regime, is seen in the US Dollar, $USD, UUP, rising in value since October 23, 2013, and fiat money, that is Credit, AGG, and Currencies, DBV, CEW, falling in value.

Confirmation of the failure of this Empire is seen in the news reports by Gareth Porter US Officials Hint at Reservations on Final Nuclear Deal and Jason Ditz US Threatens To End Afghanistan Occupation; both documenting that the US is no longer a global kick-ass empire.

In Prometheus Fashion, To Create, One Must First Destroy. The prophet Daniel’s Bible prophecy of Daniel 2:25-45 foretells that the two iron legs of global hegemonic power, the UK, and the US, will collapse, and a Ten Toed Kingdom, consisting of the miry mixture of iron diktat and clay debt servitude, will emerge in the world’s ten regional zones, to replace investment choice and credit.  The failure of the Milton Friedman Free To Choose floating currency regime, and the US Dollar as the world’s reserve currency, is pivoting the world out of liberalism and into authoritarianism.  Authoritarianism features an entirely new empire, the US is no longer in charge of economic and political matters. Eventually, according to Bible prophecy of Revelation 17:12, ten kings will come to rule in each one of the Toes, that is in each one of the world’s ten regions.

This ten toed monster is described as in Daniel 7:7, as beastly, dreadful and terrible, exceedingly strong; it has huge iron teeth; it’s devouring, breaking in pieces, and tramples the residue with its feet. It’s different from all the beasts that were before it, as it has ten horns. This fourth beast is very much a revived Roman Empire, as Elevation Ministries posts The Last In A Lineage Of Four Beasts: the Roman Empire, the Greek Empire, the Merdo Persian Empire, and the Babylonian Empire.

The Sovereign of Revelation 13:5-10, will begin to take control of the ten king empire as he rises from his beginning as a little-horn, that is one of little authority, as presented in Daniel 7:8, Daniel 7:20, Daniel 7:23, and Daniel 7:24.  He will eventually seduce with intrigue the entire nation of Israel, Daniel 11:32. All legal precedent, traditional authority and power will be swept away before him, as he rises to destroy the “prince of the covenant”, the leader in Israel, that is the one who presides over the temple and the government, as foretold in Daniel 9:26.  He will depose three of the original ten kings,  Daniel 7:8. The Sovereign is of Jewish heritage, whether he or others recognize it, as Daniel 11:28 communicates he returns to his land, and his heart is moved in rage against the Jewish covenant.

Sectors trading higher included Homebuilders, ITB, Small Cap Growth, RZG, Spin Offs, CSD, Small Cap Industrials, PSCI, Small Cap Pure Value, RZV, Aerospace, PPA, Media, PBS, Retailers, XRT, Health Care Providers, IHF, Consumer Services, IYC, Global Consumer Discretionary, RXI, Global Industrial Producer, FXR, such as Ireland’s Ingersoll Rand, IR, and Germany’s Siemens, SI, and Biotechnology, IBB, all to new rally highs, very likely terminating the investment gains that have come as investors have rotated out of Bonds, BOND, beginning October 23, 2013.

Sectors trading lower included Global Industrial Miners, PICK, such as the UK’s RIO, on a lower Australian Dollar, FXA, and Brazil’s VALE, on a lower Brazilian Real BZF, Uranium Miners, URA, Copper Miners, COPX, Rare Earth Miners, REMX, Steel Producers, SLX, Metal Manufacturers, XME, Rare Earth Miners, REMX, and Agriculture Fertilizer Manufacturers, SOIL.  Currency traders through competitive currency devaluation are destroying investment opportunities in global mining and global industrial production. Their authority comes from the bond vigilantes having called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, beginning October 23, 2013.

Nations trading higher included Argentina, ARGT, Taiwan, EWT, South Korea, EWY, and Germany, EWG, to a new rally high. Thailand, THD, and Philippines, EPHE, bounced higher recovering some from yesterday’s strong trade lower; as these two nations trade in tandem, as Benson te remarks, “So ASEAN equities appear to trade in pairs: Singapore’s STI-Indonesia’s JCI and Philippine Phisix-Thailand SETi”.

Nations trading lower included Brazil, EWZ, EWZS, Australia, EWA, KROO, New Zealand, ENZL, Indonesia, IDX, Egypt, EGPT, The Nikkei, NKY, and Canada, EWC

The death of fiat money, that is Credit, AGG, and Currencies, DBV, CEW, was transmitted to yield bearing investment sectors Electric Utilities, XLU, such as AES, D, and NEE. Residential REITS, REZ, which took Real Estate, IYR, lower, as well as Global Utilities, DBU, this action came by short sellers who successfully sold these sectors lower now that it is after earnings season.

Gold Miners, GDX, and Silver Miners, SIL, traded lower, as all currency carry trade investment washed out of these sectors.

Global Consumer Staples, KXI, traded lower as PEP, IBA, PG, DEO, UN, K, SAFM, PPC, CAG, INGR. traded lowe.

A trade lower in the Interest Rate on the US Ten Year Note, ^TNX, to 2.70%, and a flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Flattner ETF, FLAT, trading higher in value and the Steepner ETF, STPP, trading lower in value, took Ultra Junk Bonds, UJB, and Junk Bonds, JNK, Senior Bank Loans, BKLN, and Distressed Investments, FAGIX, to their rally highs. Of note, the Finviz chart of Aggregate Credit, AGG, and the chart of Mortgage Backed Bonds, MBB, both show trading in the middle of consolidation triangles, violent movement can be expected, either up or down, from these trading patterns; I expect a violent move down, more than a move higher.

The WSJ reports Volatile Loan Securities Are Luring Fund Managers Again. Collateralized Loan Obligations Offer High Returns, And Risk.  Investment funds aimed at individual investors are barreling into collateralized loan obligations, a complex and volatile type of security that was shaken by the financial crisis. Lured by annual returns of as high as 20%, some mutual-fund managers are buying CLOs through investment funds that purchase stakes in loans to companies with low credit ratings. Another type of loan investment fund, business-development companies, also have begun buying CLOs, according to securities filings.

The NYT reports New Boom in Subprime Loans, for Smaller Businesses. A small, little-known company from Missouri borrows hundreds of millions of dollars from two of the biggest names in Wall Street finance. The loans are rated subprime. What’s more, they carry few of the standard protections seen in ordinary debt, making them particularly risky bets. But investors clamor to buy pieces of the loans, one of which pays annual interest of at least 8.75 percent. Demand is so strong, some buyers have to settle for less than they wanted. A scene from the years leading up to the financial crisis in 2008? No, last month.

Liberalism’s grand finale financial market rally, has been a pursuit of yield rally, as is seen in the Awesome Nine ETFs, PPA, IBB, PJP, CSD, RXI, RZV, RZG, XTN, FXR, trading higher on a rise in Distressed Investments, FAGIX, and as is seen in the Eurozone Stocks, EZU, trading higher on Eurozone Debt, EU, as well as a currency carry trade rally, as is seen in US Stocks, VTI, trading higher, on the Euro Yen carry trade, that is the EURJPY.

Under liberalism, credit and currency carry trade investing has created tremendous banker driven moral hazard based prosperity.

Under authoritarianism, diktat and debt servitude, will create crushing regional nannycrat enforced austerity.  For example, AP Portugal’s Latest Austerity Budget Wins Approval.

The overvalued stock markets is communicated by Abe Gulkowitz of The Punch Line as he writes in Zero Hedge Meager Growth But The Markets Roar Major Economies face debilitating deflation pressures.

In Europe, for example, the latest annual inflation statistics fell in twenty-three Member States, remained stable in one and rose in only four. The HSBC/Markit Flash China PMI came in at 50.4 in November, marking a two-month low and missing expectations.

The survey still indicated that the Chinese economy is expanding but it also raised fears that growth may be tailing off in the fourth quarter. China will be lucky if it manages to hit its official target of 7.5% growth in 2013, a far cry from the double-digit rates that the country had come to expect in the 2000s.

Growth in India (around 5%), Brazil and Russia (around 2.5%) is barely half what it was at the height of the boom.

In Europe, the Markit Flash Eurozone PMI fell from 51.9 to 51.5, the lowest reading for three months. The French index was particularly weak, the PMI was at its lowest level since June. Germany continued to improve but the rest of the eurozone seems to be languishing. Questions abound whether the EU risks following the path carved by the sluggish Japan in the 1990s.

Yet financial assets point to a worrisome asset inflation environment. Many have written off the likelihood that the Federal Reserve would begin QE tapering this year. As stocks hit new records and small investors, finally, return to the market, some analysts are getting worried.

Yes indeed there is cause to worry, as the death of fiat money, that is Aggregate Credit, AGG, and the Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, beginning with the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, was transmitted to fiat wealth, specifically Global Industrial Miners, PICK, Uranium Miners, URA, Copper Miners, COPX, Rare Earth Miners, REMX, Steel Producers, SLX, Metal Manufacturers, XME, Rare Earth Miners, REMX, and Agriculture Fertilizer Manufactuers, SOIL. on November 26, 2013, as is seen in their combined ongoing Google Finance Chart trading lower in value. Debt deflation working in competitive currency devaluation through the hands of the currency traders is destroying fiat wealth; first came the death of fiat money on October 23, 2013, and now comes the death of fiat wealth on November 26, 2013.

Liberalism as a paradigm, an age, and a way of life is history, as investors no longer trust in the world central banks policies of investment stimulus; they believe that such has crossed the rubicon of sound monetary policy, and has made “money good” investments bad. Credit instruments such as Emerging Market Bonds, EMB, and carry trade investment schemes such as the AUD/JPY are no longer able to generate fiat wealth.

Authoritarianism as a paradigm, an age and a way of life, is the way of future, as people place trust in the diktat of regional nannycrats and regional bodies such as the ECB, and statist public private partnerships for regional security, stability, and sustainability.

It’s reasonable to expect that the death of fiat money will be transmitted to other sectors of fiat wealth very soon as the bull market fades and the bear market that commenced on November 25, 2013, gets underway.

One might consider a program of short selling, and using the ETFs, STPP, HDGE, XVZ, GLD, JGBS, EUO, HYHG, SAGG, seen in this Finviz Screener, as a basis for margin in one’s brokerage account, where one might sell Small Cap Pure Value Stocks, RZV, and Small Cap Growth Stocks, RZG, short.

If God’s Word of Bible prophecy be true, there will never, ever be a sound money system, with free prices, nor any experience of liberty as perceived by Libertarians and Austrian Economists, like FA Hayek or Murray Rothbard of the Mises Institute, or Lew Rockwell of the Ludwig Von Mises Institute.  Such dreams of freedom are mirages on the authoritarian desert of the real; and such dreamers are those who worship their own will in matters of human philosophy, as communicated by the Apostle Paul in Colossians 2:18.

Rather than delve into the writings of men, I suggest that one reflect on the Doug Batchelor question Why Does The Bible Cloak Prophecies In Symbols?  as he writes on Animals and their parts, Colors, Metals, elements, and natural objects, Miscellaneous objects, Actions, activities, and physical states, and People and body parts.

On Wednesday, November 27, 2013, World Stocks, VT, and Global Financials, IXG, rose to new rally highs. Eurozone Nations Germany, EWG, Finland, EFNL, Spain, EWP, Finland, EWN, and Greece, GREK, traded higher.  Eurozone Stocks, EZU, popped to a new rally high as currency traders sold the Japanese Yen,  FXY, and held the Euro, FXE, steady, which resulted in a blast higher in the Euro Yen Currency Carry Trade, EUR/JPY, which closed at 138.69.  The US Dollar, $USD, UUP, rose to close at 80.27.

US Stocks, VTI, comprised of Large Cap Nasdaq Stocks, QQQ, the Russell 2000, IWM, and the S&P 500, SPY, rose to new rally highs.  The Nikkei, NKY, rose slightly.  However, Asia excluding Japan, EPP, Russia, RSX, Brazil, EWZ, Canada, EWC, traded lower as the currency traders also sold the Australian Dollar, FXA, the Brazilian Real, BZF, the Russian Ruble, and the Canadian Dollar, FXC. Of note, the chart of Brazil, EWZ, shows that it fell strongly through support.

World Stocks, VT, rose 0.4% to a new rally high, as most every sector traded higher.

Global Growth Sectors rose the most, in what is likely to be liberalism’s grand finale rally.

Timber Producers, WOOD, 1.6; the Timber Producers rose vertically in price.

Design Build, FLM, 0.9; FWLT, TPC, AGX, FIX, MTRX, STRL, PRIM, rose strongly (JEC, FLR, and CBI did not rally)

Metal Manufacturing, XME, 0.8

Social Media, SOCL, 0.7

Resorts and Casinos, BJK, 0.6

Yield Bearing Sectors

XLU, -0.2

DBU, -0.3

Global Industrial Producers,

PICK, 0.7

SLX, 0.6

General Sectors,

TAN, 1.3

CSD, 1.2

PNQI, 1.1

XTN, 1.0

RZV, 0.9

CARZ, 0.9

PPA, 0.8

FPX,  0.7

FDN, 0.7

RXI, 0.7

PSCI, 0.6

RZG, 0.6

XRT, 0.5

PBS, 0.5

FXR, 0.4

IGV, 0.3

PJP, 0.2

In yield bearing stocks, Leveraged Buyouts, PSP, and Shipping SEA, traded higher, but remained below their October 23, 2013 high. Utility Stocks, XLU, continued trading lower. Most every yield bearing sector, seen in this Finviz Screener, is trading below their October 23, 2013 high.

Global Financials, IXG, rose 0.3% to a new rally high; financial sectors traded as follows:

Money Center Bank Leader, LYG 3.2

Chinese Financials, CHIX, 2.1

Emerging Market Financials, EMFN, 0.9 led by Argentina’s BRF, BBVA, and Brazil BRAF, BBD, BBDO, ITUB,

European Financials, EUFN, 0.7 led by IRE, NBG, SAN,

Regional Banks, KRE, 0.5, led by SNV, HBAN, STI, USB, FITB, RF, SNV, PNC,

Investment Bankers, KCE, 0.2, led by MS

Stock Brokers, IAI, 0.2

Too Big To Fail Banks, RWW, 0.1 led by BK

Asset Managers, 0.1, led by BLK, STT, and WETF

Nation Investment, EFA, traded 0.2% higher, but remained below its recent highs.

YAO, 1.9

ECNS, 1.4

THD, 0.6

EPHE, 2.4

ARGT, 1.5

EWT, 0.7

EWY, 0.8

NORW, 0.7

EWZ, -1.2; all hot money has flowed out of Brazil; investors are now selling it short

EWA, -0.4

KROO, -1.6

TUR, -1.5

ENZL, -0.6

RSX, -0.6

EWC -0.5

Stocks of note include the following …  MU 4.2,  GM 3.1,  S 2.5,  PUK 1.8, WDC 1.8,  FDX 1.4, AMZN 1.4, BLK 1.3,  SNDK 1.2,  IR 1.1, DAL 1.0,  SAP 1.0,  SI 1.0,  PCLN 1.0,  ORCL 1.0,  YHOO 0.9, MSFT 0.9.  BT 0.7,  VOD 0.6,  QCOM 0.4,  STX 0.4,  XRX 0.3,  APH 0.1,  APH 0.1, AMAT -1.0,  TU -0.1,  MSI -0.1,  CA -.02,   VZ -0.2,  TNX  -0.4,

Global Industrial Miners, PICK, traded higher, even though the price of base metals, DBB, traded higher.  Copper Miners, COPX, traded lower on a lower price of Copper, JJC. Global Agriculture, PAGG, traded unchanged, even though the price of Agricultural Commodities, RJA, JJA, rose.

Small Cap Energy, PSCE, Energy Production, XOP, and Energy Service, OIH, traded lower, as Oil, USO, plummeted, and Natural Gas, UNG, continued its rally higher. Unleaded Gas, UNG, traded unchanged.  The price of Spot Gold, $GOLD, closed at $1,237.

Closed end equity funds, CSQ, GAM, JCE, seen in their combined ongoing Yahoo Finance Chart traded higher.

Call Write Bonds, CWB, the stock market investor’s weather vane, traded to a new rally high.

Japanese Government Bonds, traded slightly lower, as reflected in their inverse, JGBS, trading slightly higher.

There has been a death. The death of fiat money, that is Credit, AGG, and Currencies, DBV, and CEW, that commenced on October 23, 2013, when bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, and called the Interest Rate higher on the US Ten Year Note, TNX, higher from 2.48%, continued dieing even more today November 27, 2013.

Confirmation of such a death comes from two sources.

The first evidence that of death of fiat money comes from God’s Word, as the Revelation of Jesus Christ, commenced, as those things which must shortly come to pass, Revelation 1:1, flowed out, as He opened the First Seal of The Scroll of End Time Events, Revelation 6:1, releasing the First Horseman of the Apocalypse, the Rider on the White Horse, the one who has a bow without any arrows to effect a bloodless global coup d’etat, to take sovereignty from democratic nation states, and transfer that sovereignty to nannycrats working in policies of regional governance diktat and schemes of totalitarian collectivism debt servitude; this is clearly seen in the chart of Nation Investment, EFA, trading lower from October 23, 2013.

And the second evidence is of the death of fiat money is Olivier Blanchard, one of liberalism’s thought leaders, who spoke to the importance of lenders of last resort in liberalism, as he delivered Liberalism’s Eulogy in IMF speech Monetary Policy Will Never Be The Same.  Turning to liquidity provision: in advanced countries (but, again, the lesson is more general), we have learned that runs are relevant not only for banks, but also for other financial institutions, and for governments. In an environment of high public debt, rollover risks cannot be excluded. An implication, and one of the themes emphasized by Paul Krugman, is that it is essential to have a lender of last resort, ready to lend not only to financial institutions but also to governments. The evidence on periphery sovereign bonds in the Euro area, pre and post the European Central Bank’s announcement of outright monetary transactions, is quite convincing on this point.  Bloomberg reports PBOC Will Basically End Normal Yuan Intervention.

Although fiat money is dead as a doornail, investors rallied World Stocks, VT, in very much a zombie fashion, on margin debt, and currency carry trade investing. Whereas the death of fiat money, transmitted death to Emerging Markets, EEM, on October 23, 2013, terminating profitable investment in many Asian Nations, including, IDX, THD, EPHE, EWT, EWM, EWS, and EWY, as well as in South America Nations of EWZ, EPU, and Major World Markets, such as Russia, RSX, as well as Sweden, EWD, a country with a large current account deficit.

And the death of fiat money transmitted death to Design Build, FLM, Metal Manufacturing, XME, Resorts and Casinos, BJK, such as MGM, and Timber Producers, WOOD, such as SWM, PCL, MV, DEL, LPX, GLT, WY, RYN, and PCH, on October 23, 2013. And the death of fiat money transmitted death to Yield Bearing Utilities, XLU, such as AES, D, and NEE, and Global Industrial Production, specifically, Industrial Miners, PICK, such as Australia’s BHP, and Steel Producers, SLX, on November 7, 2013.  Globalism died October 23, 2013, when the bond vigilantes calle the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.  Regionalism is now the new dynamo for economic life; Europe will be the model region for the new normal of dikat money.

Ultra Junk Bonds, UJB, and Junk Bonds, JNK, traded higher, while the bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, and called the Interest Rate on the US Note,  ^TNX, higher to now be established at 2.75%.  Long Duration Tips, LTPS, Emerging Market Bonds, EMB, US Treasuries, TLT, World Treasury Bonds, BWX, and Mortgage Backed Bonds, MBB, led Aggregate Credit, AGG, lower, as most every credit investment seen in this Finviz Screener, traded lower.

The Japanese Yen, FXY, the Australian Dollar, FXA, and the Canadian Dollar, FXC, led Major World Currencies, DBV, lower, and the Brazilian Real, BZF, led Emerging Market Currencies, CEW, lower.

Today’s rally in stocks is simply the continuation of a zombie rally with stocks rising on a risk-on margin credit and currency carry trade rally. Fiat wealth, that is World Stocks, VT, and Global Financials, IXG, and Nation Investment, EFA, were zombified on November 26, 2013, by margin credit and Euro Yen Currency Carry Trade, that is EURJPY, investment.

On Thanksgiving Day, November 2013

Liberalism’s entire financial system has been based on ever-increasing debt to prevent it from imploding. Chris Martenson writes in Mises The Fed Must Inflate. For the Fed to achieve anything even close to the historical rate of credit growth …  (Seen in the Chart of Total Credit Market Debt, TCMD, which is produced quarterly and has last reading for 2013:Q2 of 57,562.88 Billions of Dollars, and which is a measure of all the various forms of debt in the U.S. That includes corporate, state, federal, and household borrowing. So student loans are in there, as are auto loans, mortgages, and municipal and federal debt. It’s pretty much everything debt-related) …  the dollar will have to lose a lot of value. This may in fact be the Fed’s grand plan, and it’s entirely about keeping the financial system primed with sufficient new credit to prevent it from imploding.

Edward Harrison of Credit Writedowns writes The Limits Of Monetary Policy So the central bank lowers interest rates to stimulate credit growth. As a result, financial institutions deem a greater number of projects and … If the secular stagnationists are right, there will still be a shortage of demand when the future comes around, so there will be a need for ever-greater injections of monetary stimulus (presumably through quantitative easing) in order to avoid an ever-worsening recession. Sir Mervyn King pointed this out shortly before he retired from the BoE.  Monetary policy’s transmission channels are more geared to asset prices than to the real economy. This is why I call the over-reliance on monetary policy.

The bond vigilantes came into control of the Interest Rate on the US Ten Year Note, ^TNX, on October 23, 2013, and as a result the US Federal Reserve’s monetary policies, as well as those of the other world central banks no longer support credit growth, as investors no longer trust that the policies that have supported expansion of  key GDP investment areas.

First, Global Growth Sectors, Timber, WOOD, and Design Build and Construct, FLM.

Second, Global Hot Money Nations: Thailand, THD, Philippines, EPHE, and Brazil EWZ

Third, Yield Bearing Sectors: Electric Utilities, XLU.

Fourth, Global Industrial Production Sectors:, Global Miners, PICK, Steel Producers, SLX, and Metal Manufacturing, XME

The combined investment chart of these, when plotted with International Corporate Bonds, PICB, shows these to be losing investment value on the exhaustion of credit, coming at the hands of bond vigilantes who are steepening the 10 30 US Sovereign Debt Yield Curve, STPP, calling the Bellwether Interest Rate, ^TNX, higher.

Failure of trust in the world central banks’ monetary authority is causing not only monetary deflation, seen in the US Fed’s report of M2 money supply growth turning negative, and is also causing investors to derisk out of capital intensive investments.  The traditional plan of the Fed Reserve cannot work and will not work, as the world pivoted from the era of credit growth to credit decline, and era of monetary growth to monetary decline, on October 23, 2013, when Jesus Christ, acting in dispensation, that is the administration of all things economic and political, for the completion of every age, 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 to effect global coup d’etat to transfer sovereignty from democratic nation states to regional nannycrats and regional bodies such as the ECB. Thus enabling the bond vigilantes to call the Interest Rate on the Ten Year Note, ^TNX, higher from 2.48% utterly terminating Credit, AGG, and Currencies, DBV, and CEW.

On October 23, 2013, the world reached the economic tipping point whereby monetary stimulus could no longer sustain economic growth. Furthermore much of the stimulus is now left it on deposit at the Fed as an interest-bearing, zero-risk asset.

Quietly, the world central banks have came out with a new end game, that is to roll out the antifragile financial system (an Alberto Mingardi Econolog Econolib term) where banks of all types, the Too Big To Fail Banks, RWW, the Regional Banks, KRE, the Nasdaq Community Banks, QABA, and Savings and Loans, S&Ls, such as BOFI, STSA, EBSB, ISBC, STSA, PULB, BANR, are going to be integrated into government, and will will be known as the government banks, or gov banks for short, and will serve as the bedrock for regional governance, which replaces democratic nation state rule.

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

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

It’s inevitable that money market fund, MMF, will break the buck, because they are bond based, and interest rates are rising quickly destroying the underlying investment. Thus capital controls are coming soon. Arnold King writing in Ask Blog has it right Rogoff Eventually Says That One Source Of Financial Crisis Is Ordinary Debt. One of the reasons that debt is over-utilized is that it often comes with a government guarantee, either explicit or implicit. One solution he proposes is to get rid of bank deposits. Instead, he would have the Fed run ATMs, and the only transaction accounts people would have would be deposits at the Fed, which I’m guessing would not earn interest. In order to earn interest, people would have to invest in risky securities.

On Friday, November 29, 2013,  Daily FX reports EURJPY Gaps Open Higher To 139.06. And the ongoing Google Finance Chart of the EUR/JPY communicates that for the day and for the last five months, beginning in July 2013, this currency carry trade has given seigniorage, that is moneyness to World Stocks, VT, Global Financials, IXG, and Nation Investment, EFA; but of note, Nation Investment, EFA, has not attained its October 23, 2013 high, when Jesus Christ, opened the first seal on the Scroll of End Time Events, and released the Rider on the White Horse, to take sovereignty from democratic nation states and transfer it to regional nannycrats.

Ever since the bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, rising, and called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, debt deflation has been underway, commencing the death of fiat wealth, seen in four key GDP investments areas:

First, Global Growth Sectors: Timber, WOOD, Small Cap Energy, PSCE, and Energy Production, XOP, Energy Service, OIH, Social Media, SOCL, Solar Energy, TAN, Resorts And Casinos, BJK, Design Build, FLM,

Second, Global Hot Money Trade Nations: Thailand, THD, Philippines, EPHE, and Brazil EWZ.

Third, Yield Interest Bearing Sectors: Electric Utilities, XLU, such as AES, D, and NEE.

Fourth, Global Industrial Production Sectors: Industrial Mincers, PICK, such as BHP, Steel Producers SLX, and Metal Manufacturers, XME.

Credit, AGG, failed on October 23, 2013. The value of US Ten Year Note, TLT, has fallen 3.1%, Eurozone Debt, EU, 1.6%, Emerging Market Bonds, EMB, 1.9%, Mortgage Backed Bonds, MBB, 0.7%.

Competitive currency devaluation has been ongoing, at the hands of the currency traders; and even by some central banks, as The Czech National Bank’s drove its koruna down by 4.4 percent versus the euro on Nov. 7, the most since the single currency’s creation in 1999, when it intervened to spur inflation. Governor Miroslav Singer pledged to keep selling koruna “for as long as needed” to boost growth.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, failed. on October 23, 2013.

In the last month, Finviz charts communicate that the Euro, FXE, has fallen 1.3%, and the Yen FXY, FXY, has fallen 3.9%, giving monetary inflation to Global Financials, IXG, of 1.2%, and giving monetary inflation to World Stocks, VT, of 0.6%, but giving monetary deflation to Nation Investment, EFA, of 0.6%, as the Brazilian Real and the Australian Dollar have fallen more than the Japanese Yen.

The Brazilian Real, BZF, has fallen 5.6%, The Yen, FXY, 3.9%, giving monetary deflation to Brazil, EWZ, of 8.7%.  And The Australian Dollar, FXA, has fallen 4.0%, The Yen, FXY, 3.9%, giving monetary deflation to Australia, EWA, of 5.1%.

An important economic principle is that the of the failure of fiat money, Credit, AGG, and Currencies, DBV, CEW, has transmitted death to investors in Australia, EWA, Thailand, THD, Philippines, EPHE, Indonesia, IDX, Brazil, EWZ. This as Australia’s Bank, WBK, and Brazil, BBDO, BBD, BSBR, and ITUB, along with Peru’s BAP, and Chile’s ECH, have been decimated by the failure of fiat money; these financial institutions stand as white washed tombs in the former age of liberalism.

The people living in Australia, Thailand, Philippines, and Indonesia, have had their economies and their GDP capability literally wiped out overnight, because of the failure of their money, at the hands of the currency traders and the bond vigilantes. These people have lost their investment seigniorage, as their nation’s economies have been destroyed by the rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48% on October 23, 2013.

Inasmuch as their currencies no longer float, but rather sink, these can no longer be termed with the expression “citizens”; they are no longer Aussies, Thais, Filipinos, nor Indonesians, but rather, Aseans, residents of the region of Asia.  Likewise, the Brazilians, the Peruvians be residents of South America.

These people are no longer citizens of a democratic nation state, rather they are debt serfs, soon to experience diktat money, whose seigniorage, comes from the mandates of authoritarians and nannycrats overseeing the factors of production, commerce, banking and trade, as they increasingly participate in schemes of regional totalitarian collectivism.

In contrast, through the genius of Milton Friedman, the father of Liberalism’s Free To Choose Banker Floating  Currency Regime, Argentina’s GGAL, BFR, BMA, Ireland’s IRE, Spain’s SAN, Greece’s NBG, and Germany’s DB, as well as the Too Big To Fail Bank leaders, BAC, C, BK, MS, JPM, SNV, as well as Life Insurance leader, PUK, stand as gems of Euro Yen EUR/JPY, that is FXE:FXY, currency carry trade investing.  With the savvy investor the great winner under liberalism’s swell.

What was an intoxicating swell for the those in Europe, was a stabbing death for those in the Emerging Markets, EEM, such as Indonesia, IDX.

In the terminal phase of the age of Liberalism, the greatest swing in wealth came not from the sovereignty of democratic nation states, but from a global currency war between the currency traders and the world central banks. Liberalism’s final debt trade and currency carry trade investing gave  strong seigniorage to the most toxic of investments. For example the Finviz Chart of The National Bank of Greece, NBG, shows that popped higher the week ending November 29, 2013 to rally near its October 23, 2013 high.

Out of increasing waves of unwinding currency carry trade investment, will come the new economic order of regional economic governance. Specifically out of sovereign insolvency, banking insolvency and corporate insolvency will come regional nannycrat policies of fiscal, economic, and monetary diktat, and schemes of regional totalitarian collectivism to establish authoritarianism.

At the end of the day and month, FX Street reports EURJPY Peaks At A 5 And 1/2 Year High At 139.27. Investing.com charts shows the weekly chart of the EUR/USD at strong resistance at 136.11. And the Invensting.com chart shows the weekly chart of the USD/JPY at strong resistance at 102.33. The EURJPY has likely topped out, and will not be providing further seigniorage to fiat wealth, that is to Global Financials, IXG, World Stocks, VT, and Nation Investment, EFA; one can expect see these fall lower lower in their ongoing combined Yahoo Finance Chart.

Liberalism’s peak prosperity has been achieved on both the pursuit of yield, and investment in the Euro Yen Currency Carry Trade, that is EUR/JPY.

Global Financials, IXG, traded to a new rally high; financials trading higher included  India Earnings, EPI , European financials, EUFN, on a higher UBS, CS, IRE, GREK, DB, EMFN and BFR.  Financials trading lower included Japan’s SMFG, and MFG, as well as Brazil Financials, BRAF.

World Stocks, VT, traded to a new rally high; sectors trading to new highs included CHII, FDN, PNQI, PSCI, RZG, QQQ, RZV, PKB, SEA, IBB, FXR. Sectors recovering from a strong sell included BJK, PICK, SLX, EMIF; sectors trading lower today included Solar Energy, TAN.

Credit providers surging to new rally highs included Subprime Auto Lender, CACC, Pawn Shop Lender, FCFS, Student Lender, SLM, and Small Business Lender, AXP.  And Amazon, AMZN, Priceline, PCLN, and Netflix, NFLX, rose parabolically higher, taking Internet Retailers, FDN, to a new rally high.

Of note, the most risk of yield bearing sectors Leveraged Buyouts, PSP., such as DLPH, traded to a new rally high; while other  yield bearing sectors traded lower today; included Real Estate, IYR, Commercial Office Reits, FNIO, and Mid Cap Residential REITS, REZ, such as SUI, SNH, MAA, CPT, AIV, North American Energy Partnerships, EMLP.

For the first time, Dividend Growth  VIG, traded lower. Liberalism as an age and paradigm no longer provides increasing dividends, as there has been a failure of trust in debt based and capital intensive based equities, such as Mortgage REITS, REM, Residential REITS, REZ, North American Energy Partnerships, EMLP, and Electric Utilities, XLU, and as there has been a failure in Major World Currencies, such as the Australian Dollar, FXA, and in Emerging Market Currencies, such as the Brazilian Real, BZF.

Nation Investment, EFA, and Emerging Markets, EEM, traded higher; but remained below their October 23, 2013 highs; nations trading higher today including EZU, EIRL, GREK, EWI, EWG, INP, SCIN, EPHE, EWY, EWT, EWM, EWW, ARGT, EIS and EWU, EWUS, the latter two’s seigniorage came from a 0.9% buy of the British Pound Sterling, FXB, and a 1.2% sell of the Japanese Yen, FXY, which fueled UK Financial Firms, such as PUK, LYG, strongly higher. Nations trading lower included developed economies Australia, EWA, and New Zealand, ENZL, and emerging economies Indonesia, IDX. Gold Miners, GDX, traded higher 2.2% higher, on a higher price of Gold, GLD, and a higher price of Silver. Spot Gold, $GOLD, traded higher to close at $1,250, which is slightly higher than cash production cost for a number of miners. Traders bought volatility, ^VIX, with VIXY, VIXM, XVZ.

On Friday November 29, 2013, the world stands at the apex of a historic pivot point with liberalism on one side and authoritarianism on the other. Please consider the chart of Closed End Equities Fund CSQ, evidencing investment choice; and Closed End Debt Funds, PTY, AWP, PFL, RCS, and EIM, evidencing debt servitude. The former stands a perfect maturity in monetary inflation, while the latter have passed into monetary deflation, as can be seen in their combined ongoing Yahoo Finance chart.

Liberalism’s grand finale rally has been characterized by a pursuit of yield. Wes Goodman of Bloomberg reports “The extra yield corporate bonds offer over Treasuries was one basis point away from the narrowest level in six years as the Federal Reserve’s pledge to keep interest rates low drives a search for income”. And Tracy Alloway of Bloomberg reports “US banks accelerated their purchases of structured products in the third quarter of the year, pushing their holdings of the higher-yielding assets to record levels as they seek to offset continued profit pressure from ultra-low interest rates. Structured finance investments surged to $69bn in the three months to September, a 45% increase on the same period last year and the highest level since the FDIC began breaking the individual figure out in 2009”

Monetary inflation was a characteristic of liberalism. But as investors lost trust in the monetary policies of the world central banks, fiat money has begun to lose its moneyness. Soon fiat money will utterly die, like totally die, and the world will pass into authoritarianism, where the regional integration economic mandates of nannycrats, in public private statist partnerships, provides moneynesss.

In producing peak prosperity, through currency trader’s 1.1% sell of the Yen, FXY, and the 0.3% buy of the EURO, FXE, this week ending November 29, 2013, drove the European Financials, EUFN, 2.0% higher, with Greece’s Bank, NBG, 8.8%, Ireland’s Bank, IRE, 6.4%, and Spain’s, SAN, 1.9% higher, while forcing Japan’s Bank SMFG, 3.4% lower, and a 2.5% rise in Greece, GREK, 0.7% rise in Ireland, EIRL, a 2.1% rise in Germany, EWG, a 1.0% rise in Eurozone Stocks, EZU, a 0.3% rise in Global Banking, IXG, and a 0.1% rise in World Stocks, VT, to achieve liberalism’s peak wealth.

Of note, peak nation investment, EFA, occurred when the US Dollar, $USD, UUP, no longer fell in value, but started to rise when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, resulting in the death of fiat money, that is Credit, AGG, and Currencies, DBV, and CEW.  The US Dollar, $USD, UUP, no longer serves as the world’s reserve currency, with the result that the world’s dynamo of globalism, is failing to reward investment choice, which is resulting in the rise of regionalism to establish regional security, regional stability and regional sustainability.

Liberalism was an age that provided great financial reward to investors as is seen in the weekly chart of Jazz Pharmaceuticals, JAZZ. David Brown writes in Seeking Alpha, that the company is Trading for 19x current earnings estimates and 14x forward earnings estimates. Nearly all covering analysts have revised EPS estimates up in last 30 days. 17% projected EPS growth for the current quarter, 24% next year, 23% over the next 5 years. Yet, I comment that its stock chart suggest a great fall potential of this highly successful Biotechnology, IBB company.  And liberalism was an age that profited those invested in US Oil and Gas Refiners, such as Tesoro, TSO,  which has risen 540% int five years.

Mike Mish Shedlock writes It’s Time For Banks To Be Banks, Not Hedge Funds Or Slush Funds.  I have to agree, up to a point; one bank that has excelled in responsible economic lending is Bridge Bank, BBNK, Marketwired reports Bridge Bank Ranks Third Amongst Most Active SBA Lenders.

In his article Mr. Shedlock calls for a sound money system, one that is based upon gold bullion. Such be dreaming of the Austrian economics mind, and is a mirage on the authoritarian desert of the real. Jesus Christ, acting in in dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, is tasked by God The Father, to fulfill and perfect every age, bringing it completion much like a ship’s captain completes the manifest before setting sail.

Liberalism was an age and a paradigm whose objective was to make investors wealthy via the seigniorage of a banker regime consisting of a speculative leveraged investment community and a US Dollar Hegemonic Empire, through the process of globalism, based upon the sovereignty of democratic nation states, founded upon the most extreme financialization of equity and debt as is possible, as has been foretold in bible prophecy of the Statue of Empires in Daniel 2:25-45.  It was God’s desire from eternity past to create two massive legs of iron wealth, these being the British Empire, and the US Dollar Hegemonic Empire, immediately before He brings forth the Two Feet Empire, with its miry mixture of policies of regional economic diktat in the world’s ten regional zones, and totalitarian collectivism in mankind’s seven human institutions.

God ordained from eternity past that there be adept individuals living in creativity doing great things in Greenwich, CT, Louisville, CO, Lone Tree, CO, San Jose, CA, Palo Alto, CA, or Midland-Odessa, TX,  and a whole host of other modern cities. And that there be psychopaths, living in clientelism and dependency on transfer payments, SNAP Food Stamps, Medicaid, and Public Housing in in the Mission District in San Francisco, CA, and in other skid rows, as well as living next door to you!

Any moralizing by Austrian economists, coming from the reasoning of liberty, or scolding from Socialists, coming from the presentation of egalitarianism, is what the Apostle Paul calls subjective will worship, the worship of one’s own beliefs coming from philosophy or religion, and is a position that is not based upon the objective truth of New Testament Scripture.

Jesus Christ on November 27, 2013, during the week of Thanksgiving 2013, manifested peak liberalism in the investment marketplace creating peak prosperity, immediately before he pivots the world’s economy from liberalism into authoritarianism.

He perfected the banker regime through the speculative leveraged investment community and the financialization of Equity Investments, such as FXR, PPA, IBB, PJP, CSD, RXI, RZV, RZG, and XTN, as well as through the agency of moral hazard Credit Investments such as Distressed Investments, FAGIX, Leveraged Buyouts, PSP, Ultra Junk Bonds, UJB, and Junk Bonds, JNK, as people placed full faith in trust in Stock Brokers, IAI, and the minting, that is the coinage of Asset Managers, such as BLK, EV, STT, WETF, IVZ, FNGN, BEN, VOYA, and Other Investment Overlords, such as DNB, MORN, BR.

Since the 2008 financial collapse, great investment reward came to those who trusted in Ben Bernanke monetary policies to revitalize economic growth and provide fiat wealth through QE; cases in point be Pure Small Cap Growth, RZG, RBC Bearings,  ROLL, and Pure Small Cap Value, RZV, POOL.  Over the last five and one half years there has been a risk-on trade, debt based and currency carry trade investment bonanza for the savy investor, where the greatest gain went to those invested in the most risky of stocks, those being the Small Cap Pure Value Stocks, RZV. These got a full drink of Ben Bernanke’s investment cool aid, or perhaps better said full helicopter money drop. Monetary inflation galore came to those who received Paulson’s Gift.

A Nobel Peace Prize should have been awarded to Treasury Secretary Hank Paulson. It was on Columbus Day 2008, that Alan S. Blinder in his book After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead, wrote Paulson made a no strings offer to the banks to trade out money good US Treasuries for toxic debt owned by the banks, specifically assets like those traded in Fidelity Mutual Debt Funds FAGIX, this became known as the TARP program.

Pietro Veronesi of The National Bureau Of Economic Research reports Paulson’s Gift. “We calculate the costs and benefits of the largest ever U.S. Government intervention in the financial sector announced the 2008 Columbus Day weekend. We estimate that this intervention increased the value of banks’ financial claims by $131 billion at a taxpayers’ cost of $25 and $47 billions with a net benefit between $84bn and $107bn. By looking at the limited cross section we infer that this net benefit arises from a reduction in the probability of bankruptcy, which we estimate would destroy 22% of the enterprise value. The big winners of the plan were the three former investment banks and Citigroup, while the loser was JP Morgan”.

The provision of TARP as a Fed Monetary policy was the genesis and foundation of QE, which underwrote the expansion of liberalism by securing the seigniorage of investment choice, and established the dynamos of corporate profit and global growth based upon investment opportunities in nation states, and underwrote trust in bankers, such as JP Morgan, JPM, as well as Savings and Loan, such as Bofl Holding, BOFI, carry trade investing and credit, in particular Treasury debt, TLT, and which provided economic action of inflationism, and provided great fiat wealth seen in World Stocks, VT, rising to its November 29, 2013, value of 58.50, and which has produced economic life in both crony capitalism and its luxury, as well as clientelism and its dependency, even extending to support  European socialism, and Greek socialism.

Doug Noland writes in Safehaven.com With the average stock, The Value Line Arithmetic Index, ^VAY, up 40% in 12 months, “global government finance Bubble” excess has certainly turned more publicly conspicuous. Predictably, there is more than ample rationalization and justification. Valuations are not at “Bubble extremes”, is the popular refrain. But at least there’s some superficial attention paid to the “Bubble” issue. At the same time, the predominant attitude in the markets seems to be “if there’s a lot of talk of Bubbles, then the markets surely have much further to run.” I found Byron Wien’s Wednesday comment on CNBC telling: “You don’t stay out of the market waiting for the moment of truth.”

The moment of truth is coming very soon as inflationism is turning to destructionism. When the Lord pivots the world fully in authoritarianism, the counterpart of today’s will worshipers, whether they be philosophers, or priests, or financial seers, will be worshipers of the beast.

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 Righteousness, or the movement of Spirit of Iniquity.

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

Mike Mish Shedlock writes War Between Spain And Germany Erupts Over Watered Down Stress Tests.  I comment that Doug Noland writing in Credit Bubble Bulletin has posted many times that liberalism was an age characterized by wildcat finance. I relate that authoritarianism is an age characterized by wildcat governance where nannycrats bite, rip and tear one another apart to become the top dog despot and top dog seignior.

4) …. Metadata: it’s one essence that is known by the government. By collecting and analyzing one’s metadata, the government is able to compile a “digital persona” of one’s essence, and thus is able to creating a profile of one’s convictions; thus the government is able to know you and what you believe, as it segregates you out from others.

Dahlia Lithwick and Steve Vladeck of Slate write by analyzing our metadata over time, the government can separate the signal from the noise and use it to identify behavioral patterns. And by analyzing the metadata of every American across a span of years, the NSA could learn almost as much about our health, our habits, our politics, and our relationships as it could by eavesdropping on our calls. It’s not the same thing, but the more data the government collects, the more the distinction between metadata and actual content disappears. And that’s just telephony metadata. This week’s disclosures confirmed that the government has collected years’ worth of our Internet metadata as well. And there’s little reason to believe that other species of metadata have not also been vacuumed up, perhaps our financial records, software metadata, and the potential goldmine of our everyday commercial transactions.

We might well think we don’t have an expectation of privacy in information we separately provide to Amazon, Bank of America, Costco, Facebook, and Walgreen’s, but only the government is in a position to aggregate all of that data and thereby build a comprehensive accounting of our lives by examining everything but the “content.”  The Obama administration has insisted that it is not actually accessing these vast stores of data without some kind of individualized suspicion. But such restraint is not required under any statute, and future administrations may not feel similarly circumspect. In any event, every new round of NSA disclosures brings with it fresh reports of “compliance incidents,” where such records were accessed despite such promises. These concerns highlight the significance of the pending legal challenges to the telephony metadata program. We may not get as excited about the government’s sweeping collection of our metadata as we have been over eavesdropping, subway searches, or stop-and-frisk policies, but that may only be because we don’t fully appreciate just how invasive and intrusive these separate data streams can become, once someone is in a position to put them all together.

5) Summary: Out Of Low Inflation Comes Systemic Risk And Not The Risk Of Inflation Perse.

A fall in the money supply and even a fall in the rate of growth in money portends economic increasing recession, Ambrose Evans Pritchard writes in Eurozone M3 Money Plunge Flashes Deflation Alert For 2014. Eurozone money supply growth plummeted in October and loans to firms contracted at a record rate. The European Central Bank said M3 money growth fell to 1.4pc from a year earlier, lower than expected and far below the bank’s own 4.5pc target deemed necessary to keep the economy on an even keel. Monetarists watch the M3 data – covering cash and a broad range of bank accounts – as an early warning signal for the economy a year or so in advance. “This a large dark cloud hanging over the eurozone in 2014; it means the public debt ratios in Southern Europe are at greater risk of exploding,” said Tim Congdon from International Monetary Research.

And Mr. Pritchard goes on to communicate that lack of lending reflects and also causes recession.  Jacques Cailloux from Nomura said the ECB’s actions have yet to restore a functioning interbank market in Europe, and it remains unclear whether the nascent recovery will be enough to lift the region out of “dangerously low inflation”. Nomura said eurzone risks being trapped in “secular stagnation” until the middle of the decade.  The dire credit data may force the ECB to take bolder measures. The Süddeutsche Zeitung said the bank is exploring a variant of the Bank of England’s funding for lending, offering credit lines to banks provided loans are passed on to credit-starved firms.

Lars Christensen of Danske Bank relates “The debt problem in Italy will be much worse if they let nominal GDP fall, leading to yet more austerity.”

Mario Draghi warned that low inflation makes it harder for crisis states in Southern Europe to control their debt trajectories while at the same time carrying out internal devaluations within EMU to regain competitiveness, though he denied that the two goals are inherently contradictory. “If average inflation is allowed to drift too low, adjustment runs into major headwinds as demand suffers and real debt burdens rise,” he said.

Jack Ewing of The NYT writes Tepid Data From Euro Zone Leaves Open Debate on Price Downdraft

Low inflation was the result of falling energy prices, Eurostat said, while the cost of food rose an estimated 1.6 percent and services 1.5 percent. Prices of industrial goods rose just 0.3 percent.

Some economists, noting a pickup in prices for services, saw the rise in inflation as a sign that deflation fears were overblown.

“The data confirm our assessment that the fall of the inflation rate in October was an outlier and the euro zone is not heading for deflation,” Christoph Weil, an economist at Commerzbank, said in a note.

But others warned that deflation, once it starts, could plunge Europe back into crisis and revive doubts about the survival of the euro zone. Deflation can lead consumers to delay purchases in anticipation of ever lower prices, undercutting corporate profits and causing companies to stop investing in new plants and equipment.

Analysts at the advisory firm Oxford Economics calculate that if the euro zone suffered deflation, unemployment could rise to 16.5 percent by 2018. At the same time, Greece and other hard-hit countries in Europe would have even more trouble meeting their obligations, because economic output would shrink and tax receipts would dwindle.

“While there has been a lot of talk about deflation in the euro zone, we think that the implications of such a scenario have not been fully grasped,” Oxford Economics said in a report issued Friday. “Without decisive policy action, a euro zone breakup would be hard to avoid in this scenario.”

New York Fed economists Giannoni and Herman, present that Price Inflation Has Stabilized. Since the early 1990s, the PCE deflator has remained remarkably close to a 2 percent trend line. It has continued to track this trend since the beginning of Chairman Bernanke’s tenure in January 2006, despite a dramatic financial crisis and the Great Recession. By committing to stabilizing inflation over the long run, the FOMC is de facto at least partially stabilizing the price level around a trend line.

Yet, what they do not present is that systemic risk has gone off the scale, and that once a global credit bust and financial system occurs, then all bets are off, and recession could likely occur. I am of the opinion that massive CPI inflation, and headline inflation is a political event and not an economic event.

Fiat money, that is Credit, AGG, and Currencies, DBV, and CEW, died October 23, 2013, with the bond vigilantes calling the Interest Rate on the US Ten Year Note higher from 2.48%, which has destroyed not only US Treasuries, TLT, but also Emerging Market Bonds, EMB.

The failure of Emering Market Bonds, EMB, has compelled those seeking funds to seek money via Dollarization.

Enda Curran of the WSJ reports “Asia’s market for foreign-currency loans is booming. Banks across the region are lending record sums in the ‘G3 currencies’ , the U.S. dollar, the Yen and the Euro,  even as economic growth slows and bad debts continue to rise in places like China and Korea. So far this year, loans in these currencies amounting to $133.4 billion have been issued in Asia, excluding Japan  — 54% more than during the same period a year earlier and more than in all of 2011, the record year for such loans, according to Dealogic.”

Tanya Angerer of Bloomberg reports “Indonesia is planning a sale of U.S. dollar-denominated global bonds next year as Barclays Plc predicts issuance in 2014 will exceed this year’s record. Southeast Asia’s largest economy expects to raise 19% of its debt financing next year from notes denominated in dollars, euro or yen. The Philippines yesterday hired six banks to arrange a series of investor updates next week. US currency note sales in the region outside Japan this year reached a record $123.6 billion last week, exceeding 2012’s all-time high of $121.4 billion.”

Shaun Richards writes on the failure of monetary growth; the growth rate in the money supply is faltering. The Dwindling Euro Area Money Supply And A Liquidity Trap. The news on this was yet again a disappointment. The annual growth rate of the broad monetary aggregate M3 decreased to 1.4% in October 2013, from 2.0% in September 2013.1 The three-month average of the annual growth rates of M3 in the period from August 2013 to October 2013 decreased to 1.9%, from 2.2% in the period from July 2013 to September 2013.

As you can see the rate of growth is declining and if we project that forwards we will have concerns for the Euro area economy as we move through the spring and summer of 2014. This is not inspiring when it is supposed to be recovering and growing after the recession which has just ended.

If we look to the amount of credit being advanced an even grimmer picture emerges from the gloom. the annual growth rate of total credit granted to euro area residents was more negative at -1.0% in October 2013, from -0.8% in the previous month.

Actually Euro area banks were lending to governments so the picture for the private-sector was even worse. Among the components of credit to the private sector, the annual growth rate of loans stood at -2.1% in October, compared with -2.0% in the previous month.The annual growth rate of loans to nonfinancial corporations stood at -3.7% in October, compared with -3.6% in the previous month.

As you can see the picture gets worse as we progress because it is lending to businesses which is in the worst state of all.

A liquidity trap; this is a theoretical concept in economics where monetary policy loses effectiveness. Actually it is mostly defined in terms of interest-rates when they approach zero. But the reality of the credit crunch is wider than that as other monetary measures are lauded and praised but the truth is that their effectiveness has disappointed too.

Another phrase for this situation was called “pushing on a string”. If we look to analyse that we can take a look at what is called narrow money as the ECB can “push” on that.

the annual growth rate of M1 stood at 6.6% in October 2013, compared with 6.7% in September.

As you can see the ECB has been pushing hard but even there the effect may be fading. Now let me add a nuance as you can regard a narrow money measure such as M1 as a money supply but a wider one such as M3 is much more a measure of money demand. So if we take a sweeping simplification we see that the ECB is supplying money that the economy does not want. If we nail that down we see that the main area where there is not “demand” is exactly where the ECB would like to see lending, the business sector.

So the “push” of the ECB is being lost in the financial intermediation of the banking sector which takes the liquidity it provides and seems to prefer at least in the southern periphery to invest the money in government bonds than to actually lend it out as hoped.

It is easy to blame the banks but the ECB has to turn the mirror on itself too. It has imposed a risk measurement system where government bonds in the Euro area have a risk weighting of zero. Apart from being obviously wrong (Greece has had a default and will be joined by others in my opinion) it tempts banks to invest in something “risk-free”. This is exacerbated by the fact that banks are under capital pressure with new stress tests approaching so they are pushed towards “risk-free” sovereign bonds as opposed to risky business lending. In fact business lending is usually regarded in capital terms as very risky. So if you were setting up a structure to cut business lending you actually might have imposed what is taking place right now.Of course at the height of the Euro area crisis it was convenient for the ECB to nudge banks into investing in sovereign bonds as it helped reduce yields but now it is clear that this diverted funds away from more productive areas.

Mr Richards continue with thoughts of credit liquidity in the UK. The value of the pound has risen by 5% since Mark Carney introduced his policy of Forward Guidance we may be getting a bit of deja vu. However there is a difference.

Total lending to individuals increased by £1.7 billion in October. The three-month annualised and twelve-month growth rates were 1.6% and 1.2% respectively.

And I guess that readers will not be falling off their seats when we see the breakdown of this.

Lending secured on dwellings increased by £1.2 billion in October. The three-month annualised and twelve-month growth rates were 1.1% and 0.8% respectively.

Also it looks as though there is more to come.

The number of loan approvals for house purchase was 67,701 in October, compared to the average of 60,685 over the previous six months. Actually consumer credit is currently the strongest component.

The three-month annualised and twelve-month growth rates were 6.0% and 4.7% respectively.

This does seem to have impacted on the real economy if we think of the UK car market which seems to have been boosted by the availability of finance in 2013.

The call of the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, was an extinction event, that terminated fiat Money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW.

The death of fiat money has been transferred to a growing number of investment sectors, such as Timber Production, WOOD, Design Build, FLM, Utilities, XLU, Industrial Miners, PICK, and Metal Manufacturers, XME, seen in their combined ongoing Yahoo Finance chart

And the death of fiat money has been transferred to Nation Investment, EFA, in particular the Emerging Markets, EEM, Emerging Market Financial Institutions, EMFN, Emerging Market Mining, EMMT, and Emerging Market Infrastructure, EMIF; examples being Indonesia, IDX, Thailand, THD, and Philippines, EPHE, and Brazil, EWZ, EWZS, BRAF, BRXX, Chile, ECH, and Peru, EPU, as well as Developed Nations, Australia, EWA, KROO, and New Zealand, ENZL.

And of note, the death of money is causing monetary deflation in the US, as the stock of M2 Money is on the decline from its peak of 10,988 on 10-21-2013 to 10,922 as of 11-22-2013.

When the death of fiat money is transmitted to World Stocks, VT, and Global Financial Institutions, IXG, there will be a worldwide credit crisis and financial system breakdown known as Financial Apocalypse, foretold in Bible Prophecy of Revelation 13:3-4, and this will be the genesis event for regional governance and totalitarian collectivism to rule the world in each of the world’s ten regions, and for totalitarian collectivism to occupy in each of mankind’s seven institutions, as foretold in Bible prophecy of Revelation 13:1-4.

Low inflation and low interest rates have been the normal under the liberalism’s Global ZIRP, coming from the monetary authority of the world central banks.

Tyler Durden writes in Zero Hedge Banks Warn Fed They May Have To Start Charging Depositors.

Contrary to what the hypocrite banker said that “the danger is that banks are pushed into riskier assets to find yield”, banks are already in the riskiest assets: just look at what JPM was doing with its hundreds of billions in excess deposits, which originated as Fed reserves on its books – we explained the process of how the Fed’s reserves are used to push the market higher most recently in “What Shadow Banking Can Tell Us About The Fed’s “Exit-Path” Dead End.”

What the real danger is, is that once the Fed lowers IOER and there is a massive outflow of deposits, that banks which have used the excess deposits as initial margin and collateral on marginable securities to chase risk to record highs (as JPM’s CIO explicitly and undisputedly did) that there would be an avalanche of selling once the negative rate deposit outflow tsunami hit. Needless to say, the only offset would be if the proceeds from the deposits outflows were used to invest in stocks instead of staying inert in some mattress or, worse (if only from the Fed’s point of view) purchase inert assets like gold or Bitcoin. Which brings us back to the first sentence and the Fed’s now massive Catch 22: on one hand, should the Fed taper, rates will surge and stocks will once again plunge, as they did, in early summer, just to teach the evil, non-appeasing Fed a lesson. On the other hand, should the Fed cut IOER as a standalone move or concurrently to offset the tapering pain, banks will crush depositors by cutting rates, depositors will pull their money from banks en masse, and banks will have no choice but to close on a record levered $2.2 trillion in margined risk.

Holding cash, which pays almost nothing, has been most unattractive, especially when compared to the much higher yields available on alternative investments, such as Leveraged Buyouts PSP, paying 9.9% Junk Bond, JNK, paying 6.2%, Energy Partnerships, AMJ, paying 4.2%, and Global Telecom, IST, paying 3.8%; the pursuit of yield has caused principle in most of these investments to increase in value

In contrast, those who have been holdouts in credit instruments, AGG, have lost principal, Mortgage Backed Bonds, MBB, have lost 1.8% over the last year.

An inquiring mind asks what constitutes safe money? Are money market funds, safe? Will they be able to maintain their constant $1.00 value, or will they “break the buck”?  During QE, business-loan based short term bond funds, such as FLOT, were safe investments, in that they were ever increasing in value; of note, this fiat investment traded sharply lower as world stocks peaked. When the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, on the exhaustion of the world central banks authority, the “money good” attribute of this short term bond funds failed, and serves as ominous warning to those who thing money market funds are safe. And an inquiring mind asks, will the 1-3 Year Treasury Bonds, SHY, be safe investments, that is will they retain their value, or will they too fall lower, as the bond vigilantes steepen the 10 30 US Sovereign Debt Yield Curve, seen in the STPP ETN, STPP, steepening, and call the Interest Rate on the US Ten Year Note, ^TNX, yet even further higher from 2.75%?

By divine intervention The Fed be dead; at least the US Federal Reserve as it has been known is dead, and gone, swept away into the dustbin of history, and rising interest rates are “the new normal”. The death of fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, occurred on October 23, 2013, when Jesus Christ, acting in dispensation, that is the administration of all things economic and political, for the completion of every age, 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 to effect global coup d’etat to transfer sovereignty from democratic nation states to regional nannycrats and regional bodies such as the ECB. Thus enabling the bond vigilantes to call the Interest Rate on the Ten Year Note,  higher from 2.48% utterly terminating Credit, AGG.

Friday November 27, with its strong stock market performance was likely the zenith of the banker regime’s rule, which featured The Creature From Jekyll Island’s, the ECB’s LTROs and OMT’s, and PBOC’s, monetary stimulus. which came via POMO, and the ongoing Fed’s purchase of Treasuries and Mortgage Backed Bonds, MBB, as David Chapman writes The Fed’s Exploding Balance Sheet! and as Sober Look posts Why Fed’s Taper Is Essential To Stabilize Agency MBS Liquidity

This zenith of fiat wealth investing has completed a regulatory capture, clientelism and crony capitalism, as well as a European Socialism, and Greek Socialism, and Chinese Communism, fiat wealth experience, that came through moral hazard based investing prosperity.  Capitalism, Socialism, and Communism, are epitaphs on liberalism’s tombstone. Fiat money ruled in liberalism.

The beginning of the beast regime’s rule will commence soon out of a global credit bust and financial system breakdown. It features regional governance monetary diktat. Thus introducing regional totalitarian collectivism’s fiat poverty experience, which comes through debt servitude austerity. Regionalism is the flag on authoritarianism’s life experience. Diktat money rules in authoritarianism.

We are at the very end stage of liberalism as Zero Hedge reports Margin Debt Soars To New Record, The result that stocks are terrifically leveraged over debt, and are set for a fall, as is seen in the ratio of  VT:AGG …  EFA:BWX CSQ:PFLEZU:EU …  and most importantly VT:GLD.

Most assuredly there has been a death, that being fiat money. The death of fiat money, that is Credit, AGG, and Currencies, DBV, CEW, has already started to transmit death to fiat wealth, that being World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG.

Out of waves of sovereign, banking, and corporate insolvency, a new monster, the beast regime, with feet of a bear, mouth of lion, and camouflage of a leopard, is coming to rule mankind, displacing the banker regime, and it is making its claw-hold in Europe with its paws well secured in the German coalition agreement, which paves the way for social attacks throughout Europe, and its mouth announcing the militarization of German foreign policy and attacks on democratic rights, as Christoph Dreier of WSWS reports German Grand Coalition: A Government Of Social Austerity And Militarism.

Under liberalism, globalism was the way of life as the banker regime provided democratic nation state policies of investment choice, based upon schemes of credit and carry trade investment, where investors lived as credit genies.  However under authoritarianism, regionalism is the way of life as the beast regime provides regional governance policies of diktat, based upon schemes of totalitarian collectivism, where all live as debt serfs.

Wall Street Investment Banker Christopher Richard Whalen writes in Zero Hedge Default, Deflation and Financial Repression Once interest rates start to rise, the necessity of debt restructuring in Europe, Japan and even the US will become more apparent.  There is no free lunch.  Either we kill growth via financial repression of savers or we embrace the painful process of debt restructuring for the major industrial nations.

There will be no debt restructuring; all of liberalism’s debt will be applied by the beast regime’s  nannycrats to every man woman an child on planet earth in regional gulags of debt servitude. There will be no further monetary stimulus, well, there will be no more effective monetary stimulus; while the central bankers may use existing monetary tools, they will only serve as means for the bond vigilantes and currency traders to continue further debt deflation.

Now, there will be monetary deflation causing recession, coming via the ongoing failure of credit and disinvestment and deleveraging out of currency currency carry trade investing. The new normal is for nannycrats to rule in statist regional governance providing totalitarian collectivism schemes of debt servitude, despite what past and current great economic thinkers present as the way forward.

Recently Pedro Schwartz wrote in EconLibOrg In Praise of Neo-liberalism “The period 1875 to 1945 (or more precisely, to 1947) saw the inner logic of classical liberalism slowly unravel. Ironically, it was around the middle of the 19th century, just when free trade was triumphant, that classical liberalism took a turn in the wrong direction at the hand of John Stuart Mill; his proposal to fundamentally change the institution of private property was the first step on the primrose path.”

“Come 1900, nations around the world began to mimic Bismarck’s Social Insurance. At the same time, Teddy Roosevelt surfed on the wave of Progressivism in the United States. After the upheaval of WWI, the reaction against classical liberalism deepened. The Soviets and fascism became respectable in some quarters of Europe. In America, Franklin Delano Roosevelt barefacedly called his political program “liberal,” when it was fundamentally contrary to what had been taught by liberals from Adam Smith to Frederic Bastiat.”

He calls for reformulation of the tenets of the great classical economists (Hayek, Friedman, Coase, and Buchanan) to help undo the damage caused to liberalism by a century of negative criticism.

“I am averse to labels and do not much mind whether I am seen as a libertarian or an Austrian economist or a follower of the Chicago school, as long as what I hold makes sense from the point of view of truth and liberty. But I have now come to think “neo-liberalism” a useful label, for its defiant assertion that economic theory and policy must be put back at the center of the philosophy of liberty.”

In rebuttal, I write that there will be no neo-liberal reformation. New economic theory and new policies, and as well as new schemes, are coming that are based on the philosophy of authoritarianism; these will be based on regional framework agreements, as leaders meet in summits and workgroups to renounce national sovereignty and annonce regional pooled sovereignty.

Marcel Fratzscher, President of the German Institute for Economic Research (DIW Berlin) and professor of macroeconomics and finance at Humboldt University Berlin writes in European Voice Three Illusions Are Responsible For The German Public’s Growing Aversion To European Integration. The main challenge to the euro’s long-term viability is the lack of political will to implement complementary policies, such as a banking union and a credible fiscal union. Such an undertaking requires the restoration of trust among European countries. I respond, yes Jens Weidmann, President of the Deutsche Bundesbank, speaking at Harvard University, Cambridge, MA, on November, 2013, 2013, presented opposition to a banking union and a fiscal union,  when he called for The Art Of Separation especially with regard to the sovereign-bank doom loop. “Let me put it this way: Rather than for monetary policy to waltz with fiscal and financial policy, we need to erect walls between banks and sovereigns”, he said

Please consider that on October 23, Jesus Christ opened the Scroll of End Time Events, and released the Rider on the White Horse, who enabled the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, and to enable the currency traders to sell the World Major World Currencies, DBV, and Emerging Market Currencies, CEW, terminating the Creature Jekyll Island and birthing the Beast Regime of Revelation 13:1-4, thus pivoted the world from a policy of investment choice …  consisting of credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, securitization of debt, dollarization, financialization of stocks and ETFs, such as corporate bonds which convert into stocks, and currency carry trade investing schemes, all of which created capital for corporations to operate and revenue for governments to operate in an environment of 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 statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability in an environment of monetary deflation, economic deflation, and economic recession.

Soon, the utter and total death of fiat money will be the cause of worldwide recession … And will be the genesis factor of both a global financial system crash and the rise of trust in regional governance, beginning first in the Eurozone, and that eventually ten kings will come to rule in each of the world’s ten regions, as foretold in Bible prophecy of Revelation 17:12.

The short url for this document is http://tinyurl.com/pj6gy3e

World Achieves Peak Stock Wealth …. EU Nannycrats Begin Fiscal Rule With Policies Of Diktat In Regional Governance And Schemes Of Debt Servitude In Totalitarian Collectivism

November 17, 2013

Investment report for the week ending November 15, 2013

1) …Introduction

The Janet Yellen confirmation hearing, a buy of the Euro, FXE, and a sell of the Japanese Yen, FXY, and a leaked Chinese economic policy document purporting free enterprise in China, drove stocks higher to attain peak stock wealth.  Yet the death of fiat money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, came with bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, beginning October 23, 2013. When the currency traders sell the EUR/JPY, global financial institutions, IXG, and World Stocks, VT, will collapse like a house of cards. The world central bankers and regional nannycrats are introducing diktat money to replace fiat money, with the aim of establishing regional security, stability and sustainability.

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

On Monday, November 11, 2013, The Australian Dollar, FXA, led Major World Currencies, DBV, lower, forcing Australia, EWA, and Asia Excluding Japan, EPP, lower. And the Indian Rupe, ICN, traded lower forcing India, INP, lower.

Ireland, EIRL traded higher. Emerging Market Nations trading lower included Turkey, TUR, Chile, ECH, Indonesia, IDX, India, INP, and the Philippines, EPHE.  Major Countries trading lower included Australia, EWA, New Zealand, ENZL, Russia, RSX, and South Korea, EWY.  Sectors trading higher included Solar, TAN, Pharmaceuticals, PJP, Transportation, XTN, Copper Miners, COPX, Resorts and Casinos, BJK, and Energy Services, OIH.

Retailers, XRT, led so by WMT, COST, JWN, LTD, and KORS rallied strongly. The rally in Retailers, carried through to US Credit Provider, MA, which traded strongly higher; while Japanese Credit Provider, IX, traded strongly lower; and the rally carried through to Advertising Agencies, as well as to Apparel Manufacturers. It’s likely that the world has attained peak retailer investment experience, as well as peak consumer credit experience, on the sovereignty of liberalism’s democratic nation state and banker regime.

Social Media, SOCL, Regional Banks, KRE, traded lower; and Mortgage REITS, REM, traded strongly lower; it is the financial market’s loss leader; this as Zero Hedge posts October Mortgage Purchase Applications Collapse To Decade Lows. Liberalism has passed through peak mortgage banking.

Aggregate Credit, AGG, traded lower, as the Interest Rate on the US Ten Year Note, ^TNX, traded higher. The bond vigilantes in calling the Interest Rate on the US 10 Year Note, ^TNX, higher, from 2.48% beginning October 23, 2013, as well as in Steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETN, STPP, steepening, have destroyed fiat money, that is Credit, AGG,  as well as Major World Currencies, DBV, and  Emerging Market Currencies, CEW. The world passed through peak fiat money, that is peak credit and peak currencies on October 23, 2013.

The death of fiat money is seen first in the periphery, with the destruction of the Emerging Market debt trade, EMB, which has enabled currency traders to commence competitive currency devaluation, in Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, which has deleveraged and derisked investors out of Emerging Market Investments, EEM, Emerging Market Financials, EMFN, such as Brazil Financials, BRAF, and Brazil Small Caps, EWZS, as well as out of the Nation of Greece, GREK, and the National Bank of Greece, NBG.

And the death of fiat money is seen secondly in the high yield debt trade, with Junk Bonds, JNK, Ultra Junk Bonds, UJB, as well as short term debt, Short Term Government Bonds, SHY, and Short Term Bonds, FLOT, topping out.

Furthermore the death of fiat money is seen in the Euro Yen Currency Carry Trade, EUR/JPY, recovering to attain its October 23, 2013 value of 135.15; the double topping out of this carry trade is presented quite striking in Action Forex Report EUR/JPY Weekly Outlook, as of November 16, 2013.

The trade lower in this currency carry trade, caused  disinvestment and derisking out of Global Financials, IXG, the European Financials, EUFN, UBS, CS, NBG, SAN, DB, South Korea Banks, KB, SHG, UK Banks, RBS, BCS, Mexico Banks, BSMX, Columbia Bank, CIB, Chile Bank, BCH, BSAC, BCA, Peru Bank, BAP, and Brazil Banks, BBD, ITUB, BBDO, BSBR, from which they have not significantly recovered.

When the EUR/JPY unwinds the second time, there will be a tremendous unwinding of currency carry trades not only from the aforementioned banks but from all the world’s financial institutions, IXG.  Quietly, world central bankers and regional nannycrats are introducing diktat money, to replace fiat money, with the aim of establishing regional security, stability, and sustainability.

Acting behind the scenes, Jesus Christ, in oversight of the economy of God, that is in administration of all things economic and political for the completion and fulfillment of every age, epoch and time period, a concept presented by the Apostle Paul in Ephesians 1:10, enabled the bond vigilantes to call the Interest rate higher on the US Ten Year Note, ^TNX, higher from 2.48% on October 2013, pivoting the world out of liberalism’s fiat money system, into authoritarianism’s diktat money system.

As seen in the Revelation of Jesus Christ, that is the unveiling of Jesus Christ, a dream given by angels to John the Revelator, while living in exile to the Isle of Patmos, in his 90s, Jesus Christ on October 23, 2013, opened the First of Seven Seals of The Scroll, Revelation 6:1, containing the details of the culmination of history, Revelation 1:1, which releases the First of the Four Horsemen of the Apocalypse, the Rider on the White Horse, who has a bow but no arrows, signifying his role in effecting a global coup d’etat, transferring sovereignty from nation states and bankers to nannycrats and regional bodies, as they come to rule in regional governance, effecting totalitarian collectivism, in each of the world’s ten regional areas.

Horseman2

The US Fed be dead; He did what Ron Paul could not do; He ended the Fed, as it has been known. He decimated the creature from Jekyll Island, and is bringing forth a more horrible monster, that being the beast regime, which is rising out of the failure of fiat money, specifically out of the failure of Aggregate Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, on October 23, 2013, with the rise of the Interest Rate on the US Ten Year Note, ^TNX, from 2.48%.

Liberalism was the era of democratic nation state and banker sovereignty. But authoritarianism is the era of beast regional governance and totalitarian collectivism sovereignty, ruling in each of the world’s ten regions, and in all of mankind’s seven institutions, as presented in Revelation 13:1-4.  Jesus Christ has designed the beast regime to be the ultimate predator, having feet of a bear, the mouth of a lion, and camouflage of a leopard.

The beast’s feet have emerged in the European banking supervision system run out of the ECB in Frankfurt Germany; its feet enable the monster to stand upright against all enemies, as well as to run down and trample all naysayers; and its claws enable it to root out and tear apart all opposition.

The beast’s mouth has emerged in NATO with headquarters in Brussels, as Reuters reports NATO Builds $1 Billion HQ As Allies Cut Military Spending; its feet enable the monster to devour all in its territory. Sven Heymann of WSWS reports NATO Reform Strengthens Germany’s Role. Though coalition talks between the Christian Democratic Union (CDU) and Social Democratic Party (SPD) have only just begun, Defence Minister Thomas de Maizière has already presented a new plan for NATO. It envisages Germany assuming a leading role in the military alliance. Only six weeks after the federal election, it is clear that the new government will have a far more aggressive foreign policy, seeking to lead the country back into the ranks of the major military powers.

The beast’s camouflage is the statist, collective experience of not only Obamacare but technocratic governance in Greece. Christoph Dreier of WSWS reports Vote Of No Confidence In Greek Government Fails. A vote of no confidence in the Greek government initiated by the largest opposition party, Syriza (Coalition of the Radical Left), failed by a wide margin on Sunday. “The government has emerged stronger from the vote,” said Prime Minister Antonis Samaras (ND) after the ballot, which was broadcast live on Greek television. No further no confidence motion can be proposed for six months.

The result did not come as a surprise. The government has a clear majority, with 155 seats in parliament, and DIMAR had announced that it would abstain in the event of a no confidence vote. In order to obtain the 151 votes required for new elections, SYRIZA needed the support of 20 deputies from the governing parties.

SYRIZA introduced the motion fully expecting it to fail. It was a parliamentary manoeuvre intended to provide political cover for its collaboration in the ongoing austerity offensive against the working class. The aim as well was to contain and dissipate growing popular anger over the attacks on social conditions and democratic rights, further inflamed by the police attack on the ERT workers.

There are no fundamental political differences between SYRIZA and the government. Representatives of SYRIZA have repeatedly pointed out that they do not oppose the austerity agenda of the European Union (EU), but merely want to renegotiate its terms.

Last week, SYRIZA leader Alexis Tsipras confirmed this at a forum at the University of Texas, where he reiterated that a SYRIZA government would under no circumstances leave the European Union. Under these conditions, SYRIZA is doing all in its power to defend the government and the troika against the resistance of the workers.

With the death of fiat money, one no longer has economic life in investment choice but in nannycrat diktak, as regional integration, is the dynamo of regionalism; which is replacing global growth and trade, which was globalism’s dynamo of crony capitalism, European socialism and Greek socialism.

As the beast regime rises out of sovereign crisis and banking crisis in the Eurozone, a New Charlemagne, foretold in Revelation 13:5-10, will rise as Europe’s Sovereign. And a Monetary Prophet, Revelation 13:11-18, most likely Mario Draghi, will rise as the EU’s Seignior, that is top dog banker, who taking a cut, mints money.

The banker regime featured Asset Managers such as BLK, WDR, EV, STT, WETF, A MG, IVZ, CNS, AMP, PFG, LM, BX, FNGN, BEN, VOYA, who waived wands of credit and financialization; but the beast regime features nannycrats who waive wands of debt servitude and regionalization.

Liberalism, being based upon the Milton Friedman Free to Choose concept of floating currencies, featured a mercantilist economic model, which benefited Sweden, with its ALV, Germany, with its SAP, SI, South Korea, with its SAMSUNG, Ireland, with its STX, IR, and Netherlands, with its, NXPI, LYB, which became export driven superstars having current account surpluses.

But with the death of fiat money on October 23, 2013, as seen in Aggregate Credit, AGG, failing, and the Major World Currencies, DBV, and Emerging Market Currencies, CEW, both collapsing, a regional integration economic model will emerge under authoritarianism, as fountainheads of regionalization rise to preeminence out of credit, banking, investment crisis, and fiscal crisis. It seems that crisis, can seeming come out of nowhere, as Focus reports Austria May Face A Budgetary Crisis, The nation’s budgetary deficit could reach up to €40 billion by 2018, equivalent to around half of the country’s federal budget.

These new talking heads, such as Angela Merkel, and her More Europe proposal; and new thought leaders, such Jeroen Dijsselbloem, Olli Rehn, Michel Barnier, Klaus Regling, Werner Hoyer, Jorg Asmussen and Viviane Reding, will come to the forefront of economic and political leadership in the Eurozone.  These will move society away from constitutionally limited government, free markets, individual liberty, personal responsibility, and traditional property rights, and show the way forward through regional framework agreements, which renounce nation state sovereignty, and announce regional pooled sovereignty, for regional security, stability, and security.

Eurozone nannycrats are beginning EU fiscal rule, by exercising in policies of diktat in regional governance and schemes of debt servitude in totalitarian collectivism. The Telegraph reports The EU Uses New Budget Powers To Demand More Austerity In Italy And Spain The European Commission has exercised historic new EU powers allowing it to revise national budgets for the first time.

Fabio Braggion and Steven Onega write in Voxeu Firm-Bank Relationships, The depth of the recent financial crisis is often contributed to excessively high leverage of corporations and banks. This column analyzes corporate leverage in the long-run, and in particular the shift from bilateral to multilateral firm-bank relationships in the UK. This shift is related to the firms’ use of debt finance, and subsequently to their increased leverage.

Deniz Anginer, Asli Demirgüç-Kunt, Harry Huizinga, and Kevin Ma  write in Vox EU Corporate governance and bank capitalisation. Bank capitalisation determines the probability of a bank failure. This column discusses how bank’s corporate governance affects its capitalisation. Corporate governance, in which the bank acts in the interest of its shareholders, is defined as a good one. Such governance, however, can lead to lower bank capitalisation. It also has possibly negative implications for financial stability.

Fabian Bornhorst, Marta Ruiz Arranz write in Voxeu Private Deleveraging In The Eurozone. Private and public debt in the Eurozone increased since the 2000s, and especially so in certain countries. This column presents evidence that high levels of private and public debt, together with deleveraging of all sectors, are especially harmful for economic growth. Private sector debt is more detrimental to growth than public sector debt. Therefore, policies aimed at reducing the private debt could yield important benefits.

Andrew Cullen of The Cantillon Observer asks Is The Next Phase Of The ECB’s Large Scale Asset Purchases Imminent? Growth of PIIGS governments’ debts as a proportion of GDP (Table 1) have now crossed above the critical 90 percent ratio advised by Rogoff and Reinhart as being the threshold above which growth rates irrevocably decline ( K. Rogoff and C. Reinhardt, “Growth in a Time of Debt,” American Economic Review (May 2010).

There is another potential problem: European commercial banks may be too fragile to fulfil their allotted role. ECB President Mario Draghi himself has initiated another round of stress testing of European banks’ balance sheets against external shocks, a sign that the ECB itself has doubts about systemic stability in the banking sector. But this testing has hardly begun. Here are four risk factors in play:

First, there has been large-scale flight of deposits from banks operating within the PIIGS’ toward banks of other Eurozone countries, as well as outside the Eurozone entirely. This phenomenon is caused by elevated risk of seizures, consequent upon the forced losses on bondholders at Greek banks and the recent “bail-in” of depositors at the Bank of Cyprus.

Second, many PIIGS’ domestic banks still hold on their books bad loans arising from the boom years (2000-2007). Failure to deleverage and liquidate losses is prolonging the banks’ adjustment process.

Third, they already hold huge quantities of sovereign debt (treasury bonds) from Eurozone governments from previous rounds of buying. Banks have had to increase their risk weightings on such debt holdings as Ratings Agencies have downgraded these investments to comply with Basel II. This constrains their forward capacity for lending to these governments.

Fourth, there is concern for rising interest rates. Since the famous “Draghi put” in July 2012, real rates remain low and yields on PIIGS’ sovereign bonds fell back closer to German bunds. But this summer yields on US Treasury bonds with long maturities started to rise on Fed taper talk Negative surprises knock confidence in the international bond markets. The risk of massive losses should bond prices drop is one that the European-based banks cannot afford given their still low capital reserves and boom phase legacy of over-leveraging.

Implementation impediments aside, a new phase of aggressive easy money policy from the ECB is both probable and imminent.

On Tuesday November 12, 2013,  Major World Currencies, DBV, and Emerging Market Currencies, CEW, continued sinking in value; with ongoing global competitive currency devaluation, at the hands of currency traders who are unwinding the EUR/JPY, and the AUD/JPY, coming from the bond vigilantes calling the Interest Rate On the US Ten Year Note, ^TNX, higher since October 23, 2013, which has terminated liberalism’s Milton Friedman Free To Choose nation state floating currency banker regime, causing disinvestment out of World Stocks, VT, and is introducing authoritarianism’s beast regime of regional governance and totalitarian collectivism.

The Nikkei, NKY, traded higher, on a lower Japanese Yen, FXY.  But the Emerging Markets, EEM, traded lower, on a lower Emerging Market Bond, EMB, and a lower Emerging Market Currencies, CEW.  Asia Excluding Japan, EPP, traded lower on a lower Australian Dollar, FXA, which took Australia, EWA, Indonesia, IDX, New Zealand, ENZL, and Malaysia, EWM, lower. Sweden, EWD, traded lower on a lower Swedish Krona, FXS.

The National Bank of Greece, NBG, fell sharply, leading Greece, GREK, sharply lower.  India, INP, traded strongly lower on a lower Indian Rupe, ICN. Argentina ARGT, Norway, NORW, Brazil, EWZ, Turkey, TUR, Egypt, EGPT, China, YAO, Mexico, EWW, and Peru, EPU, traded lower.

Australia’s WBK, The National Bank of Greece, NBG, Brazil’s BBDO, BSBR, BBD, IBN, Mexico’s BSMX, The UK’s RBS, BCS, LYG, India’s IBN, HDB, Chinese Financials, CHIX, European Financials, EUFN, Regional Banks, KRE, and the Too Big to Fail  Banks, RWW, led World Financials, IXG, lower; while Ireland’s Bank, IRE, traded higher taking Ireland, EIRL, higher.  And Japan’s IX, NMR, SMFG, MFG, and MTU, traded higher, taking the Nikkei, NKY, higher on the higher Yen.

Transportation, XTN, and Retail, XRT, traded higher. While Solar Energy, TAN, Steel, SLX, Metal Manufacturing, XME, Energy Service, OIH, Engineering, FLM, Paper Producers, WOOD, Copper Miners, COPX, Industrial Miners, PICB, Chinese Minerals, CHIM, and Coal Miners, KOL, traded lower.  Energy Production, XOP, and Small Cap Energy, PSCE, traded lower on a lower price of Oil.

In the yield bearing sectors, Utilities, XLU, such as Next Era Energy, NEE, and Global Real Estate, DRW, traded lower.

Silver Miners, SIL, traded lower on a lower price of Silver, SLV, and Gold Miners, GDX, traded lower on a lower price of Gold, GLD. Spot Gold, $GOLD, traded lower to 1,265, with strong support seen at $1,260, which is seen by many as the price of production.  The chart of Gold Miner, TGD, suggests that now is the appropriate time to invest in Gold Miners; it has lost 60% YTD, and has a PE of 7.

Investment in the Shipping State of Greece, GREK, is history on the failure of credit, AGG.  Since May 2010, with the First Greek Bailout, it has been an insolvent sovereign, and its bank, NBG,is an insolvent sovereign, is loaded with Greek Treasury debt that cannot be paid. Insolvent sovereigns and insolvent financial institutions lack seigniorage to meet their fiscal spending needs. Greece’s seigniorage has come via Global ZIRP, and Euro Yen currency carry trade investment that ended October 23, 2013, when bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% and currency traders sold the EURJPY short.

The global economic and political paradigm of liberalism, mercantilism, and global growth and trade, failed October 23, 2013, as bond vigilantes called the Interest Rate higher on the US Ten Year Note, ^TNX, higher from 2.48%, and currency traders sold carry trades such as the EURJPY short.

With currency carry trades now unwinding investment in Sweden, EWD, India, INP, Brazil, EWZ, Australia, EWA, Asia Excluding Japan, EPP, as well as in Greece, GREK, as well as with the debt trade failing in the Emerging Markets, EEM, liberalism’s paradigm of Nation Investment EFA, Global Industrial Production, FXR, and Global Financial Investment, IXG, is an epitaph on the tombstones of crony capitalism, European Socialism, and Greek Socialism.

Under liberalism, the speculative leveraged investment community, consisting of Investment Bankers, KCE, Stock Brokers, IAI, Regional Banks, KRE, the Too Big To Fail Banks, RWW, European Financial Institutions, EUFN, Chinese Financial Institutions, CHIX, Emerging Market Financial Institutions, EMFN, coupled with the world central banks policies of credit easing, established schemes of carry trade investing and debt trade investment choice, producing a moral hazard based credit prosperity, for the purpose of investment gain.  The world is at peak democracy, as the seigniorage, that is the moneyness, of nation investment is at its zenith, as is seen in Nation Investment, EFA, failing to attain its previous high, and is seen with former rally leader, Greece, GREK, trading lower, since October 23, 2013.

Under authoritarianism, said organizations, will be integrated regionally into policies of regional governance and totalitarian collectivism, and become known as government banks or gov banks for short, to establish schemes of diktat, producing a debt servitude based austerity, for the purpose of regional security, stability, and sustainability.  The world will now be moving into ever increasing statist, collectivist, public private partnership, where regional nannycrats act as fiscal and economic cardinals overseeing the factors of production, finance, commerce, trade.

Aggregate Credit, AGG, traded lower. The pivoting of economic paradigms from liberalism into authoritarianism featuring regional integration, totalitarian collectivism, and debt servitude, began on October 23, 2013, with the failure of credit, seen in the Interest Rate on the US Ten Year Note, ^TNX, rising higher in value, and the failure of currencies, seen in the EURJPY trading lower in value.

The apostle Paul reveals in Ephesians 1:10, that The God, that is The Sovereign Lord God, has appointed His Son, Jesus Christ, as heir of all things and has tasked his with dispensation, that is the household administration of all things economic and political, as well as all things moral, that is virtuous, and ethical, that is relationally, to effect political government by kings in empires and to effect economic government in those empires by monetary priests, and to bury institutions of one age in graves and tombs, as He brings forth new empires and institutions of a new era.

Collectivism was a part of liberalism, and is seen in transfer payments such as social security disability under crony capitalism, national wage laws under European socialism and pork and patronage under Greek socialism.  Now under authoritarianism, there is a tyrannical collectivism at work, as is seen in the Troika technocratic governance and the introduction of Obamacare.

The new normal of tyrannical collectivism is seen in Obamacare regulatory capture, with the WSJ reporting A New Survey Shows That Employers Will Drop Coverage And Cut Hours. One of President Obama’s proudest boasts about the Affordable Care Act is that it helps small business. The White House website says the health law “makes it easier for businesses to find better coverage options” and “stops insurance companies from taking advantage of you, giving the consumer and business owner more control and making health-care coverage more affordable.”

Kate Randall WSWS reporters Obama Proposes Fix To Pro Corporate Health Care Overhaul. Insurers will be allowed to offer health plans through 2014 that do meet the requirements of the Affordable Care Act and will be able to raise premiums on these policies. Yet the reality is that so far is that Four Million Americans Have Had Their Insurance Policy Cancelled, Benson Te  reports.  Upon realizing this, President Obama backtracks and said “insurers can extend by one year those policies they had canceled for failing to meet the law’s requirements” (WSJ) And in response, the House of Representatives just passed a bill “to let insurance companies sell health plans that had previously been canceled due to ObamaCare regulations” (Fox).

Mike Mish Shedlock writes Washington State Declares That It Will Not Allow Obama’s Fix To Go Through suggesting that rising premiums are only a symptom of the disease. And Mike Mish Shedlock asks Is Obamacare Workable And Is It Constitutional?  Has anyone (on either side of the aisle) thought about how their alleged fix was going to work in real life?  What constitutional right does Obama have to unilaterally change the law of the land, even if it’s only for a year? And CBS reports Obamacare marketplaces needs relatively healthy customers as Poor Get Into Obamacare Premium Crunch.

The aim of regionalism is to transfer the means of production, and all economic matters, from private ownership to the ownership of the region. While credit and currencies were the operative dynamic of liberalism, debt servitude and statist diktat is the operative dynamic of authoritarianism; private property its rights are being replaced by regional property and its rights.

While liberalism featured capitalism, European Socialism, and Greek Socialism, authoritarianism features regionalism where capital, resources, and property, are overseen by nannycrats for regional security stability, security, and sustainability.  Under liberalism, Energy Limited Partnerships, AMJ, such as NGLS, WES, MMP, SEMG, TRGP, SE, ENB, ETP, and PBA, rewarded investment choice.  But under authoritarianism, such will, like banks, be integrated into the government as a collective resource. Authoritarianism features regional ownership of productive assets.

Jesus Christ, acting in the economy of God, Ephesians, 1:10, terminated the British Empire, and is now terminating the US Dollar Hegemonic Empire, as He brings forth the Ten Toed Kingdom of Collectivism, seen in Daniel 2:25-45, via the destruction of both Credit, AGG, and Currencies, such as the Japanese Yen, FXY, the Euro, FXE, the Indian Rupe, ICN, and the Brazilian Real, BZF.

The press is abuzz with talk of tapering and there is much concern about ongoing investment and economic stimulus. Liberalism featured inflationism that came via central bank intervention of credit stimulus, as well as currency swaps supporting countries around the world. The failure of credit, seen in the rise of the Interest Rate on the US Ten Year Note, ^TNX, and the trade lower in Aggregate Credit, AGG, as well as the sell of currencies by currency traders, beginning October 23, 2103, is causing destructionism, that is economic deflation and economic recession; and these will be the new normal.

Ann Saphir of Bloomberg reports According to research study co-authors Richard Dobbs and Susan Lund of McKinsey & Company, All told, major central banks have added $4.7 trillion to their balance sheets over the past five years. The findings are sure to resonate among central bankers as they debate when and how fast they may be able to scale down the monetary stimulus they have used to keep deflation at bay and try and pull ravaged economies from the depths of recession. I comment that the world central bank monetary policies had nothing to do with helping economies, simply only bankers.

The world central banks monetary policies, of Global ZIRP and their asset purchases, crossed the rubicon of sound monetary policy on October 23,2013, as documented by the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX higher from 2.48%.

Any more world central bank monetary intervention with more easing will only intensify a vicious cycle of  economic deflation, that is economic recession, and assure more credit failure and more currency selloffs, resulting in investors derisking out of Nation Stocks, EFA, and Financial Stocks, IXG, destabilizing democratic nation state rule, and intensifying pressure for regional leaders to renounce national sovereignty, and announce regional pooled sovereignty for regional security, stability and sustainability. Stefan Steinberg of WSWS warns Europe Tilts Back Towards Recession.

Quietly, the world central banks have came out with a new end game, that is to roll out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, where banks of all types, the Too Big To Fail Banks, RWW, the Regional Banks, KRE, the Nasdaq Community Banks, QABA, and Savings and Loans, S&Ls, such as BOFI, STSA, EBSB, ISBC, STSA, PULB, BANR, are going to be integrated into government, and will will be known as the government banks, or gov banks for short, and will serve as the bedrock for regional governance, which replaces democratic nation state rule.

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

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

Its inevitable that money market fund, MMF, will break the buck, because they are bond based, and interest rates are rising quickly destroying the underlying investment. Thus capital controls are coming soon. Arnold King writing in Ask Blog has it right Rogoff Eventually Says That One Source Of Financial Crisis Is Ordinary Debt. One of the reasons that debt is over-utilized is that it often comes with a government guarantee, either explicit or implicit. One solution he proposes is to get rid of bank deposits. Instead, he would have the Fed run ATMs, and the only transaction accounts people would have would be deposits at the Fed, which I’m guessing would not earn interest. In order to earn interest, people would have to invest in risky securities, (Rogoff was racing through his talk at this point, so I am doing some interpolation here that might not be exactly correct.)

The late June 2013, through October 2013, rally in Energy Production, XOP, and Small Cap Energy, PSCE, was at the leading edge of currency carry trade and debt trade investing; but now investors are deleveraging out of these investments, just like they are out of Emerging Market Infrastructure, EMIF, Emerging Market Mining, EMMT, and Emerging Market Financials, EMFN, as is seen in their ongoing combined Yahoo Finance Chart.

With the Euro, FXE, soon falling faster than the Yen, FXY, and the Steepner ETN, STPP, rising in value on a steepening 10 30 US Soveign Debt Yield Curve, and the Interest Rate on the US Ten Year Note, ^TNX, rising from 2.48, beginning October 23, 2013, investors will be derisking out of World Stocks, VT, and World Small Cap Stocks, VSS, as is seen in the combine ongoing Yahoo Finance Chart of FXE, FXY, STPP, ^TNX, VT, and VSS, with the Emerging Markets, EEM, leading lower. Today,  Asia Excluding Japan, EPP, traded lower on a lower Australian Dollar, FXA.

I believe that the next sectors to quickly fall lower will not be the S&P 500 Companies, such as Micron, MU, but the credit dependent Small Cap Pure Growth Companies, RZG, such as HEES, and Small Cap Pure Value Companies, RZV, such as NICK.

Of note, the ongoing combined Yahoo Finance Chart of Ireland, and other EU nations, reflects that Ireland, EIRL, and its Bank, IRE, as well as Seagate, STX and Ingersoll Rand, IR, have been liberalism’s currency carry trade and debt trade darlings, largely on the guarantee of the Troika’s economic governance and implementation of austerity, with Ireland’s’ Finance Ministry reporting Successful Completion Of The Final Review Mission of the EU/ IMF Programme.  And Irish Economy writing Ireland To Exit The EU/IMF Programme Without Further Support.

Yes awesome financial rewards came to those who trusted that the Troika would lord it over Ireland and risked nation investment, banking investment and corporate investment in Ireland.

The Grand Finale of liberalism’s finance is seen in the Finviz chart of Ireland, EIRL, and its Bank, IRE, racing higher in an investment crack up boom, while Greece, GREK, and its Bank, NBG, trade parabolically lower, on the falling EURJPY, and the higher Interest Rate on the US Ten Year Note, ^TNX.

Booms are always followed by a horrific bust; such is the nature of the business cycle. Great was the investment boom; how horrific and gruesome will be the bust.

Jonathan Weil of Bloomberg reports Andrew Huszar, as saying “I can only say: I’m sorry America”.  He managed the Federal Reserve’s mortgage-backed-security purchase program in 2009-2010, penned an op-ed for the Wall Street Journal in which he apologized for QE: “I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time. (HT Lisa Abramowitz Tweet)

Lohud.com reports Lower Hudson Valley Housing: Buyers are ready, but where are all the homes? Wikipedia relates that Rockland County, NY, located in the lower Hudson Valley, has the largest Jewish population per capita of any U.S. county, with 31.4%, or 90,000 residents, being Jewish. Rockland also ranks 9th on the list of highest-income counties by median household income in the United States with $75,306 according to the 2000 census.About 6% of families and 10% of the population were below the poverty line, including 14% of those under age 18 and 8% of those age 65 or over. In 2010 CNNMoney.com named Clarkstown the 41st best small “city” to live in America, which was the highest such ranking in New York. According to a 2007 estimate, the median income for a household in the town was $92,121, and the median income for a family was $104,909. Males had a median income of $57,773 versus $40,805 for females. The per capita income for the town was $34,430. About 2.5% of families and 3.8% of the population were below the poverty line, including 4.5% of those under age 18 and 3.4% of those age 65 or over. Clarkstown is the most densely populated town in Rockland County and is home to New City, which is the county seat. Clarkstown has more business districts in it than any other town in Rockland County, including the Palisades Center, which is among the largest malls in the world.

On Wednesday, November 12, 2013  US Shares, VTI, rose to new highs on anticipation of Yellonomics, that is on anticipation that Janet Yellen will announce ongoing US Federal Reserve easing. US Stockbrokers, IAI, such as IBRK, ETFC, MKTX, Investment Bankers, KCE, such as MS, rose to new rally highs.  The Too Big To Fail Banks, RWW, such as BAC, BK, STI, STT, Regional Banks, KRE, such as FIBK, SBNY FITB, HBAN, and Asset Managers, such as BX, AMP, AMG, rose strongly.  Currency traders called the EUR/JPY higher.

Sectors trading higher included Social Media, SOCL, Solar, TAN, Nasdaq Internet, PNQI, Media, PBS, Spin Offs, CSD, IPOs, FPX, Internet Retail, FDN, Consumer Services, IYC, Retail, XRT, Consumer Discretionary, RXI, Pharmaceuticals, PJP, Semiconductors, XSD, Global Industrial Producers, FXR, Transportation, XTN, Aerospace, PPA, Software, IGV, Small Cap Pure Value, RZV,  Small Cap Pure Growth, RZG, as well as Homebuilding, ITB.  Macys, M, Ross Stores, ROST, Ulta Salon, ULTA, TJX Companies, TJX, Kors, KORS, Foot Locker, FL, Designer Shoe Warehouse, DSW, Nike, NKE, and Rite Aid, RAD, led Retailers, XRT, higher.  Yield bearing sectors trading higher included Utilities, XLU, Global Utilities, DBU, US Real Estate, IYR, Small Cap Real Estate, ROOF.

Sectors trading lower included Copper Miners, COPX, and which sent Emerging Market Miners, EMMT, strongly lower.

Japan, NKY, traded higher, with banks, MTU, MFG, and SMFG, and Credit Provider, IX,  trading higher. Other nations trading higher included Turkey, TUR, Thailand, THD, Indonesia, IDX, New Zealand, ENZL, India, INP, traded higher with banks, ITUB, IBN, trading higher. Brazil, EWZ, traded higher, with banks, BBDO, BSBR, BBD, IBN, trading higher.

Peru, EPU, traded lower as its Copper Miner, SCCO, traded lower. South Korea, EWY, traded lower with banks SHG, WF, KB, trading lower. Australia, EWA, KROO, traded lower after yesterday’s fall lower in bank WBK, on a lower Australian Dollar, FXA. China, YAO, traded lower with Chinese Financials, CHIX, trading lower.

Aggregate Credit, AGG, traded higher on a Flattening Yield Curve, as is seen in the Flattner ETN, FLAT, trading higher, and the Steepner ETN, STPP, trading lower, and as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.72 %.

On Thursday, November 13, 2013  Silver Miners, SIL, 2.8%, SILJ, 3.7%, and Gold Miners, GDX, +2.7%,  GDXJ, 2.8%, led all sectors higher, and that by a much significant factor, on a higher price of Gold, GLD, 1.1%, and a higher price of Silver, SLV, 1.4%.

US Stocks, VTI, rose to a new high on a broad spectrum of stocks, mostly S&P 500, SPY, and S&P 500 High Beta, SPHB, stocks higher, such as MA, QCOM, WHR, DIS, BA, MU, DD, HON, APH, IFF, TWX, MM, JNJ, TXN, VZ, TXN, ITT, EMR, ITW, ADSK, IT,BA, MMM, HD, and MHK.

World Stock, VT, traded higher as currency traders sold the Yen, FXY, which closed lower at 97.72, sending Japan, NKY, higher, with banks, MTU, MFG, and SMFG, and Credit Provider, IX, higher.

Turkey, TUR, Mexico, EWW, Argentina, ARGT, Indonesia, IDX, and Thailand, THD, led the Emerging Markets, EEM, higher. The BRICS, Brazil, EWZ, Russia, RSX, India, INP, and China, YAO, traded higher. Emerging Market Infrastructure, EMIF, traded higher.

A market top, not only in Solar Stocks, but finally in the S&P 500, SPY, is seen in numerous stock charts. Canadian Solar, CSIQ, manifested bearish harami at the top of a parabolic curve. Sunpower Corp, SPWR, manifested a spinning top doji. And the Solar Stocks, TAN, manifested a dark cloud covering candlestick, at the top of an ascending wedge. Amazon, AMZN, Priceline, PCLN, and Nasdaq Internet, PNQI, manifested blow off market tops; seen also in their combined Yahoo chart.

The Too Big To Fail Banks, RWW,  and Investment Bankers, KCE, rose to new rally highs, taking Health Care Providers, IHF, Pharmaceuticals, PJP, Homebuilders, ITB, Steel, SLX, US Infrastructure, PKB, Consumer Services, IYC, Global Consumer Discretionary, RXI, Biotechnology, IBB, Internet Retail, FDN, Aerospace, PPA, Transportation, XTN, and Global Industrial Producers, FXR, higher.

Yield bearing sectors trading higher included Mortgage REITS, REM, Utilities, XLU, US Real Estate, IYR, Small Cap Real Estate, ROOF, Industrial and Office REITS, FNIO, were spurred higher by Federal Reserve Vice Chair Janet Yellen’s dovish comments in remarks released ahead of her greatly awaited Senate confirmation hearing, which said the Fed has “more work to do” to help the economy, indicating she was in no hurry to start tapering stimulus.

Aggregate Credit, AGG, traded higher once again, on a Flattening Yield Curve, as is seen in the Flattner ETN, FLAT, trading higher, and the Steepner ETN, STPP, trading lower.

The rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48%, on October 23, 2013, was a pivotal day in investment history, as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, have  traded lower, on falling Emerging Markets, EEM, and falling Emerging Market Financials, EMFN, yet with anticipation of Yellonomics, a sell of the Japanese Yen, and a surprise economic policy in China, these recovered. It was largely money coming out of Pimco’s debt funds, such as BOND, that produced the awesome rise in dollar based stocks. The rise in US Stocks, VTI,  has been noticeably bullish, this rise is simply investor euphoria, and makes the S&P 500, SPY, the Large Cap Nasdaq, QQQ, the Large Cap Growth, JKE, and the Too Big To Fail Banks, RWW, walking dead men investments, that is zombie investments.

Benson te writes US Stocks Are On A Wile E Coyote Running Off The Cliff Momentum. The melt up frenzy mode in US stock markets has been broad based. All four major benchmarks from the S&P 500, Dow Jones, Nasdaq and the Russell 2000 have performed strongly.

The bond vigilantes in calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, beginning October 23, 2013, created an “extinction event” which terminated profitable investing, as well as liberalism, that is the age of investment choice, as Credit, AGG, failed, and Major World Currencies, DBV, such as the Swedish Krona, FXS, and the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF, started sinking.

With the US Dollar, $USD, UUP, trading parabolically higher, the Milton Friedman Free To Choose floating currency democratic nation state regime came to an end.  Liberalism’s fiat money, that is the credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, died and outside of the US, VTI, and Japan, EWJ, are no longer able to provide seigniorage, that is moneyness, to fiat assets such as Brazil Small Cap Stocks, EWZS, Emerging Market Infrastructure, EMIF, Emerging Market Mining, EMMT, and Copper Miners, COPX.

Inasmuch as fiat money has died, the sovereignty, that is the rulership of liberalism’s democratic nation states has perished.  Democracy as a political experience died, with the rise in the US Ten Year Note, ^TNX, from 2.48% beginning October 23, 2013; as this was an “apocalyptic event” that pivoted the world from liberalism, the age of investment choice, into authoritarianism, the age of diktat.  Under authoritarianism, new sovereignty, that being regional governance and totalitarian collectivism, will emerge to provide economic security, stability, and sustainability. This new sovereignty will provide the seigniorage of diktat, that is the moneyness of diktat, via the diktat money system.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as those reported by the such as The Irish Times report Troika Seeking Tough Post Bailout Terms In Ireland In Exchange For Precautionary Loan, heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal policy councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, for Eurozone wide fiscal governance, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke all kinds of mandates for regional security, stability, and sustainability.

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

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

In the age of authoritarianism, diktat and the physical possession of gold bullion will be the two forms of sovereign and sustainable wealth.  As credit and currencies increasingly fail, there will be a flight to safety in this hard asset, and there will be a strong ongoing investment demand for it. Some favor silver as precious metal, but gold will have a much stronger demand as it packs more value into a compact size.

The chart of the Gold ETF, GLD, shows a 1.2% price rise; the spot price at gold, $GOLD, of $1,286, may be a bottom; a price of $1,260 is cash cost for a number of gold miners.  And the chart of Silver ETF, SLV, shows a 1.4% price rise; the spot price of silver, $SILVER, closed at $20.75.

On Friday, November 14, 2013, Not only did the Janet Yellen confirmation hearings gave investment stimulus, but also in totally surrealistic way, China’s Stock Market Soars On ‘Leaked’ Reform Documents As Bond Markets Seize Up, Benson T reports.  And Ambrose Evans Pritchard provides insight writing Chinese President Xi Jinping Announces Free-market Blitz.

China, YAO, China, China Industrials, CHII, China Small Caps, ECNS, China Minerals, CHIM, and

China Financials, CHIX, all rose strongly. Far East Financials, FEFN, blasted higher. Asia Excluding Japan, EPP, soared, as Australia, EWA, KROO, Philippines, EPHE, Vietnam, VNM, Thailand, THD, Indonesia, IDX, and Malaysia, EWM, rose strongly. India, INP, SCIN, Brazil, EWZ, EWZS, Russia, EWZ, ERUS, Turkey, TUR, Argentina, ARGT, rose strongly.

Industrial Miners, PICK, Steel, SLX, Coal Miners, KOL, rose strongly.

Emerging Market Infrastructure, EMIF, Emerging Market Mining, EMMT, Emerging Market Financials, EMFN, all rose strongly.

Sectors rising included Biotechnology, IBB, Transportation, XTN, Pharmaceuticals, PJP, Gaming, BJK, Automobiles, CARZ, Global Consumer Discretionary, RXI, and Retail, XRT, rose.

Yield Bearing Sectors Rising included Global Real Estate, DRW, Shipping, SEA, Utilities, XLU, Energy Partnerships, AMJ, and Global Telecom, IST, rose.

The nation of Greece, GREK, the National Bank of Greece, NBG, and Solar Stocks, TAN, traded lower.

Silver Miners, SIL, manifested no change, and SILJ, no change, and Gold Miners, GDX, -1.7%, GDXJ, -1.2%, on no change price of Gold, GLD, and no change in the price of Silver, SLV.

Call Write Bonds, CWB, rose to an all time high as John Glover of Bloomberg reports Sales of convertible bonds in Europe are at a four-year high as companies take advantage of investor demand stoked by a 15% stock market surge. Air France KLM. And the Milan-based cable maker Prysmian SpA are among companies that have sold $25 billion of notes this year that can be swapped for equity.. Globally, convertible issuance is the highest in three years. Investors are increasingly gravitating toward riskier assets as central banks, led by the European Central Bank’s surprise interest-rate cut last week, step up efforts to suppress borrowing costs and stimulate growth.

Liberalism has attained peak production, and peak profitability based upon debt levels, production facilities, and cost of labor. Peak liberalism has been achieved; that is peak crony capitalism, European Socialism, and Greek socialism, has been attained. AP reports Heinz Closing 3 Plants, Cutting 1,350 Jobs.  HJ Heinz is closing three plants in North America and cutting 1,350 jobs in an effort to operate more efficiently. The food maker said Thursday that it will close facilities in South Carolina, Idaho and Canada over the next six to eight months.

And Marketwatch reports Fuji To End Toyota Camry Production in US Fuji Heavy Industries Ltd. (7267.TO) is considering terminating its production of Toyota Motor Corp.’s (7203.TO) Camry sedan at a U.S. plant as requested by Toyota, Kyodo News reported Friday, citing Fuji Heavy officials. Fuji, the maker of Subaru cars, started Camry production in 2007 at the Indiana plant which currently has an annual production capacity of 270,000 units including 100,000 units for the Camry.

International Financing Review posts Hunt For Yield Reaches Fever Pitch. Investors and bankers last week shrugged off concerns of a credit bubble forming and insisted that bumper supply volumes were unlikely to diminish before the end of the year, with issuers keen to pre-empt macroeconomic risks and make use of welcoming market conditions. Since the beginning of October, issuance in the euro and sterling markets by high-yield, corporate and financial institutions has reached US$115bn, according to Thomson Reuters data, just US$22bn short of the total issued in both October and November last year.

Economic Times reports Global Telecom Merger And Acquisition Volume Hits Highest Level Since 2000. M&A volume in the telecom sector sector soared to $ 343.4 billion so far this year, driving Global Telecom Stocks, IST, up 40% in the last year.

Jesus Christ acting in dispensation, that is the oversight, fulfillment and completion of every age, era, epoch and time period, Ephesians, 1:10, has released the First Horseman of the Apocalypse, that is the Rider on the White Horse, with a bow, but without any arrows, has set the bond vigilantes loose to call the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, beginning on October 23, 2013, effected a global economic and political coup d’etat, that terminated democratic nation state sovereignty, together with its credit and currency seigniorage, that since 1971, underwrote global growth and trade, as well as corporate profitability.

The Fed be dead; yes the banker regime, that is The  Creature from Jekyll Island died on October 23, 2013; it exists today only as a zombie financial institution of the bygone era of liberalism.

Now, regional nannycrat pooled sovereignty, in particular the sovereignty of regional governance and totalitarian collectivism, and its debt servitude and diktat seigniorage, is underwriting regional security, stability, and sustainability.

The beast regime of regional governance and totalitarian collectivism, with its seven heads occupancy mankinds seven institutions, and its ten horns ruling in the world’s ten regional zones, Revelation 13:1-4, is rising from sovereign insolvency and banking insolvency of the nations, 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 the statist, collective experience of not only Obamacare but technocratic governance in Greece.

Salon’s Andrew Leonard posts Ayn Rand, of course, is herself one of the fountainheads of modern get-rid-of-government libertarianism. Alexander Hamilton was something quite different. The first secretary of the Treasury not only created the nation’s first central bank, but was also the earliest and most forceful advocate of a strong government role in developing the U.S. economy. In his Report on Manufactures he laid out in painstaking detail a program for industrial policy arguing that if the United States was to compete with the established nations of Europe and make the most productive use of its labor possible, the government needed to get involved. America’s budding manufacturing start-ups needed help! He wrote  “To be enabled to contend with success, it is evident, that the interference and aid of their own government are indispensable,” he wrote. To this day, hard-money libertarians, such as Thomas DiLorenzo, who writes in Mises.org, Alexander Hamilton: The Founding Father of Crony Capitalism, are aghast at Hamilton’s strong advocacy of issuing government debt to pay for infrastructural improvements and other measures that would implement federal economic policy.

Just as Alexander Hamilton fathered the interventionism of crony capitalism, there are those in the Eurozone today who are fathering the interventionism of regionalism; these fountainheads of regional governance and totalitarian collectivism include Prime Minister Antonis Samaras, Jeroen Dijsselbloem, Olli Rehn, Michel Barnier, Klaus Regling, Werner Hoyer, and Jorg Asmussen.

Summary of the financial market trading over the last week and month

The combined ongoing Yahoo Finance chart of the United States, VTI, Nikkei, NKY, Eurozone, EZU, Australia, EWA, Sweden, EWD, South Korea, EWY, China, YAO, Russia, RSX, Brazil, EWZ, EWZS, India, INP, SCIN, communicates that for the last month, the bond vigilantes in calling the Interest Rate higher on the US Ten Year Note, ^TNX, higher from 2.48%, has destroyed Aggregate Credit, AGG, and has commenced global competitive currency devaluation, in particular the Australian Dollar, FXA, and the Indian Rupe, ICN, causing disinvestment out of the periphery nations, evidencing the beginning of the failure of global growth and trade, and causing a crack up boom in the Nikkei, NKY, and US Stocks, in particular the Large Cap Growth Stocks, JKE, US Large Cap Value Stocks, Large Cap Nasdaq Stocks, QQQ, the Small Cap Value Stocks, RZV, and the Small Cap Growth Stocks, RZG, as is seen their combined ongoing Yahoo Finance chart, with the S&P 500, SPY, stocks, such as those in this Finviz Screener, such as MU, and DAL, being the primary beneficiaries of a rally in the US Dollar, $USD, UUP, and a sell of the Japanese Yen, FXY, as is seen in their combined ongoing Yahoo Finance chart.

The destruction of Aggregate Credit, AGG, is seen in combined ongoing Yahoo Finance chart of the Zeroes, ZROZ, 30 Year US Government Bonds, EDV, US Ten Year Notes, TLT, Longer Duration  Bonds, BLV, Short Duration Bonds, LQD, World Treasury Debt, BWX, and International Corporate Debt, PICB. Junk Bonds, JNK, and Ultra Junk Bonds, UJB, have experienced a melt up rally in conjunction with the S&P 500 Stocks, as is seen in their ongoing combined Yahoo Finance Chart.

The Janet Yellen confirmation rally drove the S&P 500, SPY, and US Stocks, VTI, higher to attain peak fiat wealth; but it failed to bring Nation Investment, EFA, and Global Financials, IXG, to new rally highs, thus communicating that a bear market stock market commenced October 23, 2013, when these two global bellwether investments turned lower in value, as the Interest Rate on the US Ten Year Note, ^TNX, rose from 2.48, with the result of commencing debt deflation, that is currency deflation in the Major World Currencies, DBV, and Emerging Market Currencies, CEW.

Nation Investment, EFA rose 1.5%; yet it is still trading below its October 23, 2013 high.

EEM rose 2.6% these received leverage on a slight rise in Emerging Market Currencies, CEW, and a rise in the Flattner ETF, FLAT, and a decline in the Steepner ETF, STPP, and 1.5% trade lower in the Interest Rate on the US Ten Year Note, ^TNX, which closed the week at 2.71%.

EMFN 2.2

EMMT 1.9

EMIF 4.0

VTI rose 1.7%, new high

EZU  1.2

EPP -0.3

NKY 6.1, new high; a gift from the currency traders on their sale of the Japanese Yen, FXY; Japanese 10-year “JGB” yields closed up slightly at 0.63%, which enabled a tiny rise in their inverse, JGBS.

Chikako Mogi of Bloomberg reports Japanese companies eased off on capital-spending growth in the third quarter and failed to step up exports even with a cheaper yen, contributing to an economic slowdown that puts pressure on Prime Minister Shinzo Abe. Gross domestic product rose at an annualized 1.9%, down from 3.8% the previous quarter, with the gain relying on government spending and an accumulation of inventories. A widening trade gap lopped off 1.8 percentage point from growth. Corporate investment increased 0.7%, down from 4.4%. ‘Warning lights are flashing for Abenomics,’ said Kiichi Murashima, chief economist at Citigroup Inc. in Tokyo. ‘With the absence of further weakening in the yen and a clear global recovery, Japan’s recovery is losing momentum.'”

Nations trading higher included

YAO rose 5.1%, new high

ECNS 4.0, new high

EWW 4.7

VNM 3.3

EWZ 3.3

EZA 3.1

THD 2.9

EPOL 2.8

ARGT 2.7

EIRL 2.6, new high

EPHE 2,4

EWZS 2.2; Brazil and its Small Cap Stocks is one of the first investor-recognized failed democracies.

The Nation of Brazil, EWZ, exists solely because it has currency swaps with the US Fed and other world central banks. Brazil’s Financials, BRAF, that is Brazil’s banks,  BBD, ITUB, BBDO, BSBR, are truly failed failed financial institutions  BBD, ITUB, BBDO, BSBR, are truly failed financial institutions.

EWY 2.1

TUR 1.9

NORW 1.6

GREK declined 3.4%, on NBG -5.9; Greece is an insolvent nation and receives seigniorage aid from the Troika for its fiscal spending needs. Doug Noland reports Ten-year Portuguese yields slipped 2 bps to 5.87%, Italian 10-yr yields fell 5 bps to 4.09%, Spain’s 10-year yields were down 5 bps to 4.06%, German bund yields declined 5 bps to 1.71%, French yields fell 5 bps to 2.18%,. Greek 10-year note yields rose 23 bps to 8.24%.

EPU, -2.8 on COPX -2.4 and SCCO -4.2

EGPT -2.6

Global Financials, IXG rose 1.5%; it is still trading below its October 23, 2013 high.

RWW 1.5, new high

IAI 1.9, new high, peak investment experience has been achieved.

KCE 1.5, new high

EUFN 0.3

FEFN 6.2, new high

CHIX 4.5, new high

EMFN 2.2

BRAF 1.4  Brazil’s banks,  BBD, ITUB, BBDO, BSBR, are truly failed failed financial institutions

KRE -1.0

Global Natural Resources,GNR rose 1.1%

XOP 1.8

PSCE 1.1

OIH, 0.2, new rally high

USO -0.4

UNG +2.2

World Stocks, VT, rose 1.5%, a new rally high; with sectors rising as follows

SOCL 6.0

ITB 4.4

XTN, 4.2, new high

PNQI 4.1, new high

IBB, 4.0

XRT 3.7 new high

CSD 3.3, new high

FDN 3.1, new high

PJP 3.0, new high

PBJ 2.9, new high

PBS 2.9, new high

FXR 2.5, new high

RXI 2.5, new high

IYC 2.5, new high

FPX 2.5, new high

PKB 2.3, new high

CARZ 2.1

RXI 1.7, new high

PSCI 1.7, new high

RZV 1.6, new high

RZG 1.5, new high

KXI 1.4, new high

PPA 1.0, new high

TAN 1.0, new high

Yield bearing sectors trading higher

PHO rose 2.8%

XLU 0.7, such as those in this Finviz Screener.

The chart of the S&P 500, $SPX, SPY, manifested a close at 1798; up 1.6% for the week; Finance My Money writes S&P Up 26% YTD

Of note, the charts of an number of commodities, such as Corn, CORN, suggest a bottoming out. Corn is either at a bottom of 31.49 or 31.00 or 30.

Ratios suggest peak fiat wealth has been achieved

VT:DBV 2.26

XLB:DBC 1.77

EZU:EU 1.74

PICK:DBD 1.25

VT:BWX 1.00

VTI:TLT 0.89

VT:AGG 0.54

The US is likely achieving a double top peak in M2 Money as recent readings are as follows

2013-11-04  10938.9

2013-10-28  10858.8

2013-10-21  10938.7

The spot price at gold, $GOLD, closed the week at a price of $1,289; The spot price of silver, $SILVER, closed the week at a price of $20.77

I believe that there will be an investment demand for gold, but none for silver. And as such I expect Silver, SLV, to be seen as an industrial metal, just like base metals, DBB, and its price will begin to depart from gold, GLD.

3) … In news of Brazil credit, failure of coherent fiscal policy and incestious corporate government credit policy, have destroyed infrastructure development, economic growth and investment opportunities in Brazil.

11/07/2013 Bloomberg reports Investors Fear Treasury Debt Downgrade After Tax Revenue Shortfall

11/07/2013 Brazil Portal and Agriculture.com reports Brazil’s Crop Logistics Drama

11/05/2013 Bloomberg reports Brazil Real Tumbles On Concern Government Lax On Budget Deficits

11/04/2013 Bloomberg reports Shiller’s Bubble Warning Dismissed In Brazil Loan Surge.  Brazil’s President Dilma Rousseff is disregarding warnings about a housing bubble and is stoking demand instead by helping people buy more homes as prices surge.

10/28/2013 Merco Press News And Brazil Portal report  Rousseff And Mantega Dispute IMF Report On Brazil As Incoherent.

10/21/2013 Brazil Portal and The Economist report Public Finances In Brazil: Going For Broke In this week’s print issue we wrote about the huge increase in government-subsidised credit in Brazil in recent years, funnelled through state-controlled institutions such as the national development bank, BNDES, and Caixa Econômica Federal, a state retail bank. This is weakening the banks’ balance-sheets and cutting their credit ratings—and damaging the credibility of official statistics as the government manoeuvres to try to hide the impact on its own finances.

On October 14th the finance minister signalled a change of course, saying that over the next few years the government would gradually stop capitalising BNDES with transfers from the treasury. But as we explained in print, the electoral appeal of cheap consumer credit and the government’s desire to use BNDES to fund a big upcoming infrastructure-concession programme make it doubtful that such good intentions will become reality.

Equally worrying for Brazil’s public finances is the news that the federal government is about to make it easier for states and municipalities to take on more debt. The Fiscal Responsibility Law of 2000 bailed out local governments who had taken on debts they could not repay, with one of the conditions being the acceptance of strict limits on total future indebtedness. The law is generally regarded as having been an essential precondition for Brazil’s subsequent economic stabilisation and growth, including keeping inflation under control, gaining investment-grade status, rescuing tens of millions from dire poverty and creating a vast new lower-middle class

10/18/2013 Bloomberg reports Ending Blind Loans to Aid Crackdown on 323% Rates  Brazil’s President Dilma Rousseff is disregarding warnings about a housing bubble and is stoking demand instead by helping people buy more homes as prices surge.

01/09/2013 Reuters reports Brazil Backs Away From Budget Target Policy Pillar Brazil goes after corporate taxpayers as revenue dwindles. Brazil’s hot, dry summer may lead to energy rationing.

Short URL for this post is http://tinyurl.com/ovgz7oc

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

November 4, 2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Corporations should set up margin accounts at the largest of stock brokerages and commence a short  selling strategy  The following 40 high beta ETFs/ETNs, IBB, PNQI, FDN, TAN, BJK, RZV, FPX, IST, FLM, CSD, PBS, IAI, PSCI, XTN, FXR, CARZ, XRT, EUFN, PJP, SMH, WOOD, PSP, RWW, PPA, SLX, RXI, ENZL, EIRL, GREK, EWP, YAO, TUR, ARGT, EPHE, SCIN, THD, EGPT, EWZS, EWY, UJB, seen in this Finviz Screener, might be comprise part of a short selling strategy.

The 10 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, are what I term the market vane ETFs,  and could serve as the basis for a margin account, as these will increase in value with rapidly growing financial instability, as carry trades, such as the EUR/JPY and the AUD/JPY start to aggressively unwind, and as credit becomes more expensive, as will be seen in the Short Term Bond ETF, FLOT, trading lower in value.

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

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as those reported by the such as The Irish Times report Troika Seeking Tough Post Bailout Terms In Ireland In Exchange For Precautionary Loan, heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal policy councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, for Eurozone wide fiscal governance, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke all kinds of mandates for regional security, stability, and sustainability.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The traditional Fed be dead, its previous interventionist monetary policies and monetary tools no longer provide stimulus, only death. The fiat asset inflation that came via the grand experiment by the US Federal Reserve policies of monetary intervention is over, finished and done. Fiat asset deflation has arrived and is bearing down on the World Financial Institutions, IXG, and on currency trading and credit sensitive nations, such as Greece, GREK, Ireland, EIRL, Spain, EWP, Brazil, EWZ, EWZS, India, INP, SCIN, China, YAO, ECNS, with Greece’s National Bank of Greece, NBG, Ireland’s Bank, IRE, and Spain’s Banco Santander, SAN, Brazil Financials, BRAF, leading lower.

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

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

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

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

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

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

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

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

Danny Hakim of the NYT writes The Man Who’ll Do Triage on Europe’s Banks. Ignazio Angeloni, is a man with a mission: “You have to supervise what banks do,” Mr. Angeloni of the ECB said.  He heads the European Central Bank’s financial stability division, giving him a lead role in a task about to begin: examining the books of the 130 or so largest banks in the 17 members of the European Union who use the euro, European Press Release reports.

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

The world attained peak prosperity on October 22, 2013, when Global Financial Institutions, IXG, traded to an all time new high, which came through the world central banks monetary policies of investment choice, and provision of credit and carry trade investment, through the speculative leveraged investment community, consisting of the Too Big To Fail Banks, RWW,  Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, as well as real estate investor, BX, and which produced a terrific moral hazard based peak prosperity.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Israel Issues Plans for 5,000 New Settlement Homes

Syria Peace Talks Face Delay as Big Powers Split

Forget Sanctions: House Hawks Push for Iran War

House: Israel Attacked Syria Airbase.

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

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

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

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

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

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

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

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

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

And The 10 ETFs/ETNs, OFF, STPP, HDGE, XVZ, GLD, FSG, JGBS, YCS, SAGG, GSY, seen in this Finviz Screener, are what I term the market vane ETFs, constitute risk free money, and could serve as the basis for a margin account, as these will increase in value with rapidly growing financial instability, as carry trades, such as the EUR/JPY and the AUD/JPY start to aggressively unwind, and as credit becomes more expensive, as will be seen in the Short Term Bond ETF, FLOT, trading lower.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sectors trading lower this week included

Homebuilding, ITB, -4.0

European Financials, EUFN, -3.0

Social Media, SOCL -2.9

Biotechnology, IBB, -2.5

Small Cap Pure Growth, RZG, -2.5

Small Cap Pure Value, RZV, -1.7

Automobiles, CARZ, -1.7

Resorts and Casinos, BJK, -1.6

Paper Producers, WOOD, -1.4

Global Financials, IXG, -1.3

Yield Bearing Sectors trading lower this week included

Mortgage REITS, REM, -3.5

Residential REITS, REZ, -2.7

US Real Estate, IYR, -2.3

Small Cap Real Estate, ROOF, -2.1

Leveraged Buyouts,  PSP, -2.0

Nations trading lower this week included

Indonesia, IDX, -7.0

Turkey, TUR, -5.5

Argentina, ARGT, -5.0

Sweden, EWD, -4.2

South Africa, EZA, -3.9

Brazil Small Caps, EWZS, -3.8

Greece, GREK, -3.2

Chile, ECH, -3.1

Thailand, THD, -2.9

German Small Caps, GERJ, -2.9

Malaysia, EWM, -2.3

Switzerland, ESL, -2.2

US Small Caps, IWM, -2.1

Nation trading higher this week included

China, YAO, +2.8

India, SCIN, +2.3

Natural resource stocks trading lower this week included

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

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