1) … Financial Armageddon and default by Greece within the EU will be the genesis event for regional global governance.
Financial Armageddon, coming at the time Greece defaults on its debt, or shortly before, will result in a credit bust and global financial collapse; this is foretold in bible prophecy of Revelation 13:3 where one of the seven heads on the Beast suffers an apparent mortal wound; this is the institution of finance, trade, investment and banking breaking down.
One of The New Compact Bible Dictionary meanings for the word Beast is an Apocalyptic symbol of brute force, sensual, lawless, and God-opposing. The New Strong’s Concordance relates that the word Beast in Revelation 13:1-4 comes from the Greek word therion and means a dangerous animal; and is used forty-two times in the Bible. The number forty-two is the number of a journey; as in the forty-two destinations of the Children of Israel between Egypt and the Promised Land, when one counts the former and the later as destinations. Therion, wild beast, is used as an oppressive system, and also refers to two oppressive potentates, Revelation 13:5-10, and Revelation 13:11-18, who are destined to control the affairs of the nations in the closing period of the human economic and political governance.
When Greece defaults on its debts it is likely to stay in the EU, as leaders meet in summits and announce regional framework agreements that waive national sovereignty, and announce regional global governance in the Euro zone, whereby a One Euro Government, that is a Federal Superstate, with political, monetary, economic, banking and fiscal authority is mandated by leaders’ agreement.
Mike Mish Shedlock writes What’s Best for Greece. Greece needs to do what is best for Greece. Short-term there will likely be intense breakup pain in Greece if it exits the eurozone. However, if Greece manages its cards correctly, Greece will recover far faster by telling the Troika to go to hell than by living the nightmare for 10 more years. Greece and Iceland are not the same. Iceland has exports and a work ethic. However, the facts show that Iceland recovered far faster because it had the courage to default, telling eurocrats where to go. Simply put, Greece has nothing to lose and everything to gain bu exiting the euro, the exact opposite of what Bloomberg and most of mainstream media would have you believe.
It is not a question of what is best for Greece, it is a question of what does God’s Word communicate regarding Greece. Bible prophecy of both the Old Testament and the New Testament are in complete agreement that the world is currently at a pivotal point in mankind’s history, and that capitalism and European socialism will give way to regional global governance, Revelation 13:1-4, and Daniel 2:31-33, as money died in April of 2011 when investors fled stocks, commodities and currencies on fears that a debt union had formed in the Euro zone, and credit died in April of 2012 as investors fled stocks for US Treasury Bonds, and longer duration US Corporate Bonds.
2) … Jesus the Christ, opened the first of the Seven Seals, in May 2010, resulting in the death of both money and credit as EU Finance Ministers announced European economic governance and a bail out of Greece, and in so doing sent the rider on the white horse, with a bow without any arrows, to effect global economic and political coup d etat, by passing the baton of sovereignty from sovereign nation states to sovereign leaders and bodies, as the dynamos of corporate profit and global growth and global trade that sustained capitalism and European socialism are winding down, and the dynamos of regional security, stability, and sustainability that establish regional global governance are winding up.
An inquiring mind asks, what is money? Money is the value of exchange, that is coinage given by governance, to fiat investments such as stocks and bonds, money market accounts, checking accounts, savings accounts, farmland, intellectual property, artwork, antiques, equipment, textiles, vehicles, personal services, real estate, commodities such as corn, base metals, like lead, and precious metals, like gold and silver, and currencies. After the soon coming Financial Armageddon, that is credit collapse and global financial breakdown, diktat will be considered to be money.
Some people have money and some do not. I do not have any money, neither do the Argentines, the Greeks, the Cubans, or the Egyptians. My blog does not feature pictures, as I don’t have money to buy the right to show intellectual property.
Money died with the rise of the US dollar in April 2011, as seen in the ETF, UUP, trading higher, on awareness of sovereign insolvency and banking insolvency in Greece, when investors sold out of the South African Rand, SZR, the Indian Rupe, ICN, the Brazilian Real, BZF, and the Euro, FXE; this stimulated disinvestment out of the BRICS, EEB. Competitive currency deflation since April 2011, has caused strong deleveraging out of commodities, DBC, such as natural gas, UNG, agriculatural commodities, RJA, base metals, DBB, silver, SLV, and gold, GLD.
The death of money developed a safe haven in Zeroze, ZROZ, +60%, 30 Year Treasuries, EDV, 55%, Ten Year US Notes, TLT, 30%, Long Duration Bonds BLV, 20%, Build America Bonds, BAB, 18%, but deleveraged commodities, DBC,-13%, JJC, -19%, SLV, -25%, and deveastated stocks, EWZ, -27%, RSX, -32%, INP-, 27%, YAO, -23%, VGK, -20%, EZA, -15%, EWY, -15%, EWT, -20%. ARGT, -43%, COPX, -37%, SLX, -35%. One of the last remaining successful investments is Utilities, XLU, owing to the fact they have risen with falling interest rates; Next Era Energy, NEE, is one such Utility.
Neoliberalism, that is the Milton Friedman, Free To Choose, floating currency regime, which commenced in 1971, died in June of 2011, as Angela Merkel and Nicolas Sarkozy, called in joint communique, for ”true European economic government”.
Neoauthoritarianism, the Beast regime seen in bible prophecy of Revelation 13:1-4, is rising from the profligate Mediterranean country of Greece, GREK, to rule the world, as the Sovereign Lord God, Ephesians 1:1-21, and 2 Corinthians 5:17-18, has appointed his Heir, Jesus The Christ, to open the seven seals. Look and see in Revelation 6 as a rider on a white horse has been sent to pass the baton of sovereignty from sovereign nation states to regional authorities and bodies, and the rider on the black horse has been sent to bring death, to all existing forms of political and economic life; this so as to reveal the Son’s Kingdom, Revelation 2:26-27.
The Beast regime has seven heads, symbolic of its occupation in all of mankind’s institutions, and ten horns, symbolic of its rule in the world’s ten regions. This is the same monster as the Ten Toed Kingdom of Daniel 2:31-33, where regional global governance comes to replace the global hegemony of the UK and the US, as ten toes of iron diktat and clay democracy, replace crony capitalism and European socialism.
Under regionalization, ten global regional blocs will from as state sovereignty will be surrendered for a pooling of regional sovvereignty as managers from government and corporations are appointed to public private partnerships for coordination of resources and common industrial production.
Germans cannot be Greeks, yet both will be one, living as serfs in a totalitarian collective, under statism, and in debt servitude. Germany will rise to be preeminent leading a type of revived Roman empire where the periphery nations exist as client states.
Charles Hugh Smith writes in Zero Hedge The E.U., Neofeudalism And the Neocolonial-Financialization model. The capital foundation of the principal—housing and the crippled budgets of post-bubble Member States has eroded to the point of mass insolvency. Faced with rising interest rates resulting from the now inescapable heightened risk, the citizenry of the colonized states are rebelling against the loss of their credit-dependent lifestyles and against the steep costs of servicing their debts to the big Eurozone banks.
Now the losses resulting from these excesses of rampant exploitation and colonization by the forces of financialization are being unmasked, and a blizzard of simulacrum reforms have been implemented, none of which address the underlying causes of this arbitrage, exploitation and financialization.
Understood in this manner, it is clear there is no real difference between the monetary policies of the European Central Bank and the Federal Reserve: each seeks to preserve and protect the “too big to fail” banks which are integral to the Neoliberal State-cartel partnership.
The “too big to fail” Eurozone banks were offered a double bonanza by this implicit guarantee by the E.U. to make everything right: not only could they leverage to the hilt to fund a private housing and equities bubble, but they could loan virtually unlimited sums to the weaker sovereign states or their proxies. This led to over-consumption by the importing States and staggering profits for the TBTF Eurozone banks. And all the while, the citizens enjoyed the consumerist paradise of borrow and spend today, and pay the debts tomorrow.
Both are attempting to rectify an intrinsically unstable private-capital/State arrangement– profits are private but losses are public–by shoving the costs of the bad debt and rising interest rates onto the backs of the core-country taxpayers (now indentured serfs). The profits from the euro arbitrage and Neocolonial exploitation were private, but the costs are being borne by the taxpaying public of both core and periphery.
The Power Elites are attempting to set the serfs of the periphery against the serfs of the Core, and this is necessary to keep both sets of serfs from realizing they are equally indentured to the Core’s pathological Financial Elite-State partnership.
Credit died in March 2012, when debt deflation, that is competitive currency deflation, caused the US Dollar, $USD, UUP, to rise once again, and falling Major World Currencies, DBV, and Emerging Market Currencies, CEW, caused derisking out of risk assets such as ONN, AMJ, IEZ, URA, ALUM, KOL, COPX, REMX, CHIM, PXR, SLV, GDX, GLDX, SSRI, EUFN, BRAF, EPI, MXI, seen in this Finviz Screener; but came most intensely to China Minerals, CHIM, such as Aluminum Corporation of China, ACH, which has fallen 52% over the last year, as the US Dollar, $USD, UUP, started to rise.
The fiat money system will be replaced by the diktat money system, where diktat serves as both money and credit.
3) … Financial market report for May 22, 2012.
In the third week of May 2012, a nascent investment demand for gold has commenced, as the chart of the gold ETF, GLD, shows that it is on the verge of breaking out of a triangle consolidation pattern at a price of 150 to 153; but failed to do so as it closed at 152, as currency traders sold the world major currencies, DBV, and the emerging market currencies, CEW, which caused the US Dollar to rise; it has been hard for gold to breakout on fears of sovereign insolvency and banking insolvency when the US Dollar rises. The chart of the US Dollar, $USD, shows a close 0.5% higher at 81.49.
Today, currencies traded lower as follows, BZF, -1.5%, SZR, -1.5%, FXE, -1.1%, FXF, -1.0%, FXA, -1.0%, ICN, 0.9%, FXY, 0.8%, FXB, -0.6%, FXS, -0.5%, FXC, -0.5%, FXRU, -0.5%.
Stocks trading lower included, PSCE, -2.5%, KOL, -2.4% , ONN, -2.1%, XSD, -1.4%, FAA, -1.3%, EMIF, -1.3%.
India Bank HDB, -4.4%, and India Infrastructure, INXX, -2.9%, led the BRICS, EEB, -1.6%, EWZ, -2.8%, RSX, -1.0%, INDY, -2.8%, FXI, -.7% lower.
Falling currencies, DBV, and CEW, led Agricultural Commodities, RJA, -2.4%, Commodities, DBC, -1.4%, Oil, USO, -1.9%, Base Metals, DBB, -1.9%, Copper JJC, -1.7%, Gold, -1.7%, Silver, -1.3%, and Timber CUT, -0.5%.
Total Bonds, traded, 0-.2%, as the Steepner ETF, STPP, rose; and the Flattner ETF, FLAT, traded lower, as the 10 30 US Sovereign Debt Yield curve, $TNX:$TYX, rose on a rising us 10 Year US Treasury Note Yield, ^TNX, of 1.79%.
ZROZ -2.1%, EDV, -1.7%, TLT, -1.1%, PICB, -0.8%, BWX, -0.8%, BLV, -.7%, LTPZ, -0.7%, CMF, -.5%, BAB, 0-.4%
4) … In today’s news
Open Europe reports
Open Europe reports Greek conservatives and liberals form alliance ahead of elections as left-wing SYRIZA leader warns Angela Merkel there are no vassal states in the EU. Alexis Samaras, leader of the conservative New Democracy party, and Dora Bakoyannis, head of the liberal Democratic Alliance announced yesterday that they would run on a common platform in the upcoming Greek elections on June 17.
Alexis Tsipras, leader of the radical left-wing SYRIZA party which currently leads on 28% in the polls, warned in Paris yesterday that German Chancellor Angela Merkel “must understand that she is an equal partner with others in a eurozone which has no tenants and owners. She should not allow herself to behave as if we are a protectorate”. EUobserver Les Echos Le Monde Le Monde 2 FT Kathimerini Telegraph IHT Les Echos 2 Le Monde 3 Guardian Guardian:Traynor Spiegel FAZ FT: Rachman FT: Blejer Independent: Lawson Mail: Leader WSJ: Swoboda Welt Welt: Eder Bild: Blome
Speaking in Berlin yesterday, Germany’s ECB Executive Board member Jörg Asmussen said, “The benefits of a currency union are so outstanding that they should be stabilised by deepening, which means a fiscal union and banking union as well as a democratic legitimised political union”, the Irish Times reports. City AM EUobserver Irish Times Irish Independent FTD Reuters
An article in Der Spiegel runs with the headline, “Merkel is losing her Triple A”, noting that “she is getting more and more isolated in Europe.” The article suggests that, also in light of the recent defeats in local elections, Merkel “won’t be able to maintain her strict attitude on austerity policies towards European partners in the long run.” Spiegel
International Institute of Finance: Spanish bank losses could total €260b. The International Institute of Finance warned yesterday that Spanish bank losses on bad loans could be as high as €260bn, with up to €60bn of extra capital needed to shore up the country’s troubled banking system, reports Expansión. Separately, El Paísreports that the European Commission will speed up the disbursement of €939m from the EU’s Cohesion Fund for infrastructure projects which have already been completed in Spain, but are still awaiting payment.
FAZ also reports on analysis by Deutsche Bank, the eurozone’s permanent bailout fund, the ESM, would have to be doubled to a total of €1tr to effectively shield Spain, Belgium and Italy from resorting to capital markets and to prolong the Irish and Portuguese programmes for three years in the event of a Greek exit. The bank also argues that in order to reduce the risk of capital flight from Spain and Italy and to support their banks, the (ECB) will have to launch a renewed liquidity program and loosen its security requirements as well as agree for Target 2 balances to increase. Open Europe research City AM Expansión BBC Expansión 2 El Mundo Il Sole 24 Ore El Mundo 2 Expansión 3 El País WSJ Real Time Economics FAZ Telegraph
Euro Intelligence provides the best of news reporting and analysis; I suggest that one subscribe to its daily email reports, which today reports
Alexis Tsipras styles himself as the front man against capitalism. Here is what Alexis Tsirpas said during his press conference in Paris after meeting with the leader of France’s Left Front, Jean-Luc Melenchon: “In Greece, we are fighting on behalf of Germans, French and all European people…. Financial capital, bankers and capitalists have joined forces in a European union against Greeks. They want to destroy Greece so they can attack Europe.” About the EU-IMF bailout programme he said: ““The memorandum cannot be negotiated because hell cannot be negotiated” (as quoted by Kathimerini, more quotes on Guardian).
Jörg Asmussen proposes a wide-ranging banking union with a single supervisory system for large, cross-border bank. Creating a fiscal and financial market union that would be underpinned with its own budget and stronger democratic control, Financial Times Deutschland reports. The German ECB board member wants to break the link between banks and their sovereigns through the ESM and by creating a “special fund in the EU budget for the eurozone”, which could be financed by the financial transaction tax that most euro members want to introduce. Also there should be a real financial market union for the eurozone with a banking supervisory and bank resolution authority with real competencies. In order to enhance democratic legitimacy, Asmussen proposes to give the EU parliament the right of initiative, which it does not have, and to set up a subcommittee, which would convene regularly with members of the eurozone only.
Thomas Mayer, meanwhile, is proposing a “geuro” to save us from “grexit”. The idea of a parallel currency for Greece is hardly new. A large number of economists have been thinking about how it could be accomplished. The basic idea is that Greece introduces a new financial markets instrument – an IOU – that is used in domestic transactions and that will soon float against the euro, against which it will devalue. Domestic prices and wages will be dominated in that new currency. At the end of the process the IOU will be abolished at then prevailing market rates. (The parallel currency is essentially a way to reduce wages and prices. But why would Greek trade unions accept a geuro over a direct wage cut, when the two mean exactly the same? Do we assume perfect money illusion? If this is an involuntary arrangement, then we wonder what could be the legal basis of this inside the EU? Legally, all contracts are denominated in euros.)
Diego Valiante calls for Building a political Euro area. The gap between democratic representation and political decision-making is widening in Europe. Not only the economy, but also the institutional setup in Europe needs to change.
Reuters reports
Euro area bonds to be discussed at informal EU summit
New York Times reports
Fitch downgrades Japan’s sovereign debt rating
WSWS reports Greek SYRIZA leader Tsipras pledges to repay banks in European tour. Alex Lantier writes Alexis Tsipras, the leader of Greece’s Coalition of the Radical Left (SYRIZA), visited Paris yesterday to meet with Left Front officials, before traveling on to Berlin today. In Berlin Tsipras is slated to meet leaders of Germany’s Left Party, Gregor Gysi and Klaus Ernst.
In Paris, Tsipras met with Pierre Laurent, the head of the Stalinist French Communist Party (PCF), and the Left Front’s candidate in this spring’s presidential elections, Jean-Luc Mélenchon. In addition to a press conference with Laurent and Mélenchon, he gave a speech to roughly 300 Left Front members gathered in front of the National Assembly building.
SYRIZA is leading in polls in Greece for elections next month, due to its criticisms of austerity measures imposed by the European Union (EU) on Greece since 2009. A poll published Sunday in Kathemerini showed that SYRIZA is set to win a plurality and possibly form a government after the June 17 elections. The elections were called after Greece’s parties failed to form a government coalition based on the May 6 election. With 28 percent of the anticipated vote, SYRIZA leads Greece’s main right-wing party, New Democracy, which has 24 percent, as well as the social-democratic PASOK party.
The purpose of Tsipras’ tour is to reassure the banks and the major imperialist powers that, despite his criticisms of the bailouts, he will be a safe pair of hands should SYRIZA win the elections and form a government. In a long interview Sunday with Reuters—excerpted in the Guardian and in France’s business daily Les Echos—Tsipras stressed that he supports the EU and intends both to repay the banks and to continue “reforms” begun by PASOK.
Tsipras told Reuters that he was traveling abroad because “we want the governments of these important European Union countries, France and Germany, to see what we stand for: what is being transmitted in Europe about us is not what we represent and want.” He added, “We are not at all an anti-European force.”
Noting that European taxpayers’ funds had been “wasted” in two previous multi-billion-euro bank bailouts of Greece, Tsipras explained that he sought to create better conditions for repaying the banks.
He said, “We want to make use of Europe’s solidarity and funding to create the basis for our long-term reforms. But we need to know that in two-three years we’ll have escaped this downward vortex, we will have growth, and we’ll be able to pay back the money they gave us. There is no way we could pay them off if we continued” with the bailouts on the current terms.
5) … Summary
Greece, Spain and Italy are insolvent nations and their banks are insolvent financial institutions. Insolvent nations cannot govern and insolvent banks cannot provide for growth, nor can they sustain lending. Sovereign insolvency, coupled with maxed out lending by Chinese Banks, CHIX, and failure of banking in India, EPI, and Brazil, BRAF, are at the root of the termination of global growth and global trade. which has caused disinvestment out of Emerging Market Infrastructure, PXR, EMIF, China Mining, CHIM, China Small Caps, HAO, South Korea Small Caps, SKOR, Australia Small Caps, KROO, India Small Caps, SCIF, Brazil Small Caps, BRF, EWZS, Russia Small Caps, ERUS, and Poland, EPOL.
The European periphery nation states, the PIIGS, have lost their debt sovereignty; this evidences they have lost their sovereign authority. After Financial Armageddon, that is a credit bust and global financial breakdown, and default by Greece within the EU, new sovereigns, specifically sovereign leaders, and sovereign bodies, will be announced as Euro zone leaders meet in summits and establish regional framework agreements, that call for a One Euro Government, that is a European Super State and Federal EU Government, with political monetary, economic, banking, and fiscal authority as national sovereignty is waived and sovereignty is pooled regionally. Regionalization will follow with private public partnerships managing resources and economic production as the dynamos of growth and profit that have powered capitalism and European Socialism wind down, and the dynamos of security, stability, and sustainability power up regional global governance.
Fate, not any human action, is working through creative destruction, as the monetary authority of the world central banks’ fails to stabilize banks worldwide, and in fact is a toxic factor, in turning the global economic economic paradigm of inflationism to destructionism.
It is God’s will to bring forth the Kingdom of his Son, Jesus The Christ, Revelation 2:26-27, by putting an end to UK and US global hegemony, and bringing forth the Ten Toed Kingdom of regional global governance, Daniel 2:30-33. To accomplish this, He in May of 2010, opened the first of the seven seals, Revelation 6:1-2, to effect a global economic and political coup d etat, to destroy all current economic and political life; and furthered his aim by releasing the Beast of totalitarianism, statism, and debt servitude, to rise from the profligate Mediterranean nation of Greece, Revelation 13:1-4, to rule in all of mankind’s seven institutions, and in the world’s ten regions.
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