State corporate rule was rejected by both the currency traders and the stock investors today
Gaius Marius relates in article Dictatorship Of The Treasury
relates that the banking system is being nationalized piecemeal and that the facility of TARP is nationalization of the financial system.
I say that the announcements of our leaders Ben Bernanke and Hank Paulson relate a political and economic coup, for the purpose of establishing state capitalism, that is state corporatism.
John writes in The Beast Arises Through Economic Crisis
: "By using monetary inflation as a sapping device, the FED is knocking down the few federalist pillars that, at least in theory, separated the various layers of government. It is also preparing to nationalize key segments of the commercial economy. All of this is being done through the FED’s New Deal era “emergency powers” to extend “credit” to any entity it chooses, whether governmental, commercial, or “public-private partnership.”
The revolution of 1913-1933, which inflicted the Federal Reserve, income tax, and the New Deal apparatus upon the United States, left us with a system Mussolini described as a “corporate state,” more commonly known as Fascism.
Admittedly, the American version was milder than most, at least domestically. The Revolution of 2008 is consolidating the elements of that system into a monolithic, unitary State of the sort Lenin and his heirs would applaud.
The creation of the Federal Reserve in 1913 was a partial enactment of the fifth plank of the Communist Manifesto, which called for creation of “a national bank with State capital”; last week, with the creation of a de facto economic dictatorship under the Secretary of the Treasury, Congress implemented the other key element of that plank, “centralization of credit in the hands of the state.”
Approval of the new economic dictatorship was the irreducible purpose of the so-called Economic Stabilization Act, which — true to the measure’s pedigree of grandly named government interventions — has summarily failed to stabilize the economy.
The $700 billion disbursed by the bill was a trifle, in light of the magnitude of the debt flood to be “bailed out” and the ability of the FED to create what it’s pleased to call “money” in any amount it chooses. But that relatively trivial amount was enough to create a constituency for the bill not only on Wall Street, but also in statehouses, city halls, and wherever else the Horseleach’s Daughters convene.
With both the corporatist and political elements of the parasite class enlisted to support the revolution, all that remained was the neutralize the productive class — the common people, who found ourselves on the bad end of what the reliably perceptive Chris Floyd calls “one of the largest single redistributions of wealth since the Bolsheviks seized power in Russia in 1917.”
Unanimity is, almost without exception, a bad thing in politics. The near-unanimity of the electorate in rejecting the Wall Street “bailout” measure is one of those incalculably precious exceptions. In the teeth of this near-unanimity, Congress — led by the Senate, supposedly the more deliberative chamber — took the rejected bill, an austere 3-page Enabling Act for the economic dictatorship, plumped it up with several hundred pages of bureaucratic boilerplate and undisguised pork, and passed it four days later.
Bribing a Congressman is generally about as challenging as seducing Catherine the Great. Getting the institution to surrender its institutional control over the public purse was a bit more difficult. Some Congressmen — well, at least one, perhaps two or three others — recalled their duty to their constituents, as well as their constitutional mandate to control the public purse, and held fast. Many others opposed the Enabling Act/Plutocrat Bailout because of simple terror over the prospect of immediate unemployment.
But in this case, bribery was coupled with undisguised official terrorism — the use or threatened use of violence to achieve a radical change in the political system.
As Brad Sherman, a Democratic Congressman from California, testified in a remarkable address on the House Floor — an address the likes of which will soon be punishable as sedition — that representatives of the Regime candidly informed recalcitrant congressmen that refusal to pass the Enabling Act would result in nothing less than “martial law in America.”
The problem with that explanation, of course, is that the Bush Regime is actively preparing for martial law. So is the German government. So is the British government. Most likely, so are other governments throughout the Euro-Zone, and everywhere else central banks are still coupled to the rapidly disintegrating dollar.
There is no way we can honestly construe the comments reported by Rep. Sherman as anything other than a legitimate, credible threat to accomplish, through a coup de main, what Congress was being ordered to do: Surrender its power over the purse to an executive branch department that is an appendage of Wall Street".
I relate that laissez-faire capitalism is dead. The Milton Friedman neoliberal free-market ideology that enabled securitization of auction rate securities, CDOs, subprime mortgages, and monoline bond insurance, is history. The age of financial neoliberalism, whose claim was that modern global financial markets would provide for stability and growth, is over. The University of Chicago Professor's policies have only resulted in destabilizing speculation, spectacular asset deflation, runaway product price inflation, and enslavement of Americans to debt and the taskmasters of government and banking.
The currency traders, with funding coming from 0.5% interest loans from the Bank of Japan, sold the EUR/JPY short, inducing those invested in stocks to sell ... FXE:FXY
And for short sellers, it was like shooting ducks in a pond; it was simply "click and shoot" to amass amazing returns. But beware, those who play with fire and financial alchemy, often get burned badly. There could come a liquidity run where brokerages globally will shut down without warning; and the day trader, and those still invested there, awaken to find their funds frozen like those in Iceland's banks: one may not always have full and immediate access to one's funds held in brokerage accounts.
The lending markets continued in freeze over mode: The Ted Spread
traded at 4.3 which suggests that a total world wide financial collapse is imminent.
It is important to understand that there is no, repeat no commercial lending going on at the current time. Chan Sue Ling in Bloomberg article Shipping Lines Say Tight Credit Cutting World Trade
relates that German banks with funds to lend are offering about 200 basis points above Libor, double previous rates, while in Singapore the rate is plus-350 points, according to Tobias Koenig, managing partner of Koenig & Cie. In the main though, shipping lines aren't able to borrow, he added.
``There is no rate because all banks are closed for business
,'' he said. ``You have a few banks rescuing their best customers, but that's it.''
More than two-thirds of 104 bankers polled said they were unable to obtain funding at or close to Libor, according to an October survey by trade publication Marine Money Asia. About 80 percent expect shipping bankers will not be able to raise enough financing for clients this year and next, the survey showed.
``There are a lot of banks that will do deals today but they will do it on a bilateral basis with good clients, which they have long relationships with,'' Tom Zachariassen, an executive at Nordea Bank, said yesterday.
Libor, set by 16 banks in a survey conducted by the British Bankers' Association each day in London, determines rates on $360 trillion of financial products worldwide, from home loans to derivatives. The cost of borrowing in dollars for three months fell 12 basis points to 4.64 percent yesterday.
I relate that the Federal Reserve will be unable to stimulate lending in the marketplaces and the credit gridlock, that is, the lending gridlock, will continue for a number of reasons:
1) the banks know they are walking dead men, and simply want the TARP swaps to help preserve their balance sheet.
2) they are aware the consumer is tapped out and overextended and at risk for non payment of loans.
3) they want to preserve capital as they and their customers have exposure to settlement of credit default swap derivatives on Lehman Brothers and others.
4) there is no trust between lender and debtor as the fair value accounting rule of the SEC, and the mark to market provisions of FASB 157 have been thrown out the window.
5) there is an awareness that the CPFF facilities are for the top tier Fed invested nine banks.
The municipal bond market has seized up again, and the municipal bond ETFs and mutual funds will be falling awesomely lower in value, as a run on these gets underway.
States and municipalities are going to dramatically reduce payrolls. Funding for new projects cease will cease, and countless municipalities will be going into foreclosure. Only the most basic of services, such as a low level of law enforcement, will be provided.
Corporations, finding the commercial paper market place shuttered, are in a desperate way. They lack the cash on hand to cut payroll and accounts payable checks, buy raw materials, and order ongoing services, and as such are going to quickly close. Others finding lending closed, are not going to be able to refinance debt, and will fail, and go into bankruptcy.
Investment grade debt traded flat ... LQD
Junk bonds, HYG, fell 4% ... HYG
The municipal bond market, MUB, fell 3% ... MUB
Eddy Elfenbein relates
today's carnage: "The Dow dropped today by 733.08 points to close at 8577.91. That's a loss of 7.87%. By percentage, this was worse than both October 9 (-7.33%) and September 29 (-6.98%). This was the worst day for the Dow since October 26, 1987, and it was the ninth-worst day ever".
Charts reflect the days transactions:
The gold ETF, GLD, traded slightly up to its 50 day moving average ... GLD
Gold, $GOLD, traded slightly down at its 50 day moving average at $840 ... $GOLD
The US Dollar, rose slightly to $82.09 ... $USD
US Treasuries, TLT, rose slightly to their 50 day moving average at 95.01 ... TLT
Oil, USO, fell 6% on an unwinding yen carry trade, that is, on a falling EUR/JPY. The media is reporting that oil is falling on grim economic data; however this is only partially true. Oil, like the stocks, are being driven lower by a falling yen carry trade, better termed euro carry trade. One of the greaest economic stories never told is that the Euro, FXE, as well as the other commodity currencies such as the Australian dollar, FXA, and the Canadian Dollar, FXC, in carry trades have carried stock values in great waves of gain and loss ... USO
Energy producers, XOP, fell 18% ... XOP
Energy services, OIH, fell 17% ... OIH
Metal and mining manufacturers, XME, fell 17%. Rio Tinto announced it is cutting production at some of its aluminum smelters in response to slowing Chinese growth. Rio Tinto chief executive Tom Albanese declared that the Chinese economy “is pausing for breath after spectacular GDP growth.” Shares in the mining giant plummeted by 16 percent in response to the announcement. Other energy and commodity firms’ stock also fell yesterday, including Alcoa (down 12.8 percent) and Exxon Mobil (14 percent) ... XME
Real estate fell 14% ... IYR
Real Estate REITS, RWR, fell 13% ... RWR
BRICS, EEB, fell 18% ... EEB
Emerging Markets, EEM, fell 16% ... EEM
World shares EFA, fell 11% ... EFA
The Nasdaq, QQQQ, fell 9% ... QQQQ
The Russell 2000, IWM, fell 9% ... IWMGold and gold alone is the measure and means of wealth preserving wealth in a deflationary investment world
David N. Vaughn relates in A Coming New Currency!
, the Alf Field statement: "The resulting massive creation of new liquidity would destroy or vastly reduce the purchasing power of currencies as we know them today" ... "The assets in the most secure category at the tip of the inverted pyramid are gold and silver bullion, assets that have performed the function of protecting wealth throughout the ages. In the layer above the precious metals lie the companies that mine and hold large deposits of gold and silver".
Adrian Ash presents the question Why choose gold when the Fed lowers the central bank interest rates
I recommend that one be invested in gold, because of financial system instability, lack of liquidity and because of possible inability of the US government to make good on its surety promises of insuring bank accounts, brokerages, money markets and now commercial paper. I recommend diversification of investment in gold in four locations immediately, yes immediately: the gold ETF, GLD, directly through streetTRACKS Gold Trust, and not in a brokerage account; two BullionVault, three GoldMoney; and four a limited number of gold coins purchased from sources like Kitco.com.The end of monetary expansion ends in all things being rented to the central bank
Elaine Meinel Supkis in article Burns, Nixon, Gold And The New World Order Chinese
relates "US government debt is now the ONLY really solid 'reserve' left as the Federal Reserve sells or rather, gives away, Treasuries in return for useless 'assets' which no banker in their right mind considers to have any realistic future value at this point. But the Treasuries themselves are drawn up against the biggest pool of potential wealth on earth: the accumulated holdings, belongings and future earnings of the American People, themselves!
Germany ended its monetary hyper-inflation collapse very simply: the government declared that all things in Germany were now going to be RENTED TO THE BANKS via fiat. The new currency was called, 'Renten Mark' which was a huge change from 'Reichsmark.' Governments can do this! When Germany finally went bankrupt less than 10 years later, all Germans were bankrupt. This total bankruptcy was dealt with very severely: the rise of Hitler and fascism coupled with the open looting first, of the Jews, then of all of Europe".
I relate that the United States is continuing down the same path as Germany, that is the end of monetary expansion ends in all things being rented to the central bank: all different types of debt is now being swapped out by the banks for US Treasuries as is seen in the US Federal Reserve Press Release of October 13, 2008
Because of this, there will be a run on the US Treasuries, TLT, producing a rise in interest rates, $TNX, and a sell off of the US Dollar, $USD, especially through the currency traders obtaining 0.5% interest loans from the Bank of Japan, and going short the USD/JPY and short the USD/CHF. This will cause gold to rise in value. And US stocks, VTI, will continue to tumble lower in a death spiral together with the world stocks, EFA.
To address an ongoing dearth of liquidity and financial instability, the world bankers will institute a new international financial architecture, which see the rise of a global monetary authority, which will institute unified regulation of banking globally.
Soon there will be no national seigniority, as sovereign nations and their constitutions become history, as principles of global governance work through regional economic and security pacts or agreements; and these will serve as the basis for regional currencies. The US Dollar will be replaced with the Amero for purposes of commerce and trading in the North American homeland.
A world banker, a Seignior, meaning top dog who takes a cut, will arise to take charge of finance, banking, commerce and trade world wide. He will install a global seigniorage wealth and commerce system. This individual will have such a commanding way that interest rate differentials between nations and regions will disappear. All seigniorage will come and go through him: all sovereign wealth funds, and banks will report to him.
Once financial institutions fail, and stocks and bonds fail, and currencies totally burn out, the principle that "the end of monetary expansion ends in all things being rented to the central bank" will compel the Seignior to institute a one world currency system which is based upon the "mark" which comes from the Greek word charagma meaning "etching in", or "tattoo upon", or "stamp", or "badge of servitude", which enables one to conduct economic activity, and which authorizes one to receive economic benefits; the mark will be required in order to buy or sell.
Between the soon coming world leader, the Sovereign, and the world banker, the Seignior, they will own the world "lock, stock and barrel". The Bible prophecy of Revelation Chapter 13 foretells the futureI. Introduction
The Apostle John wrote from prison, on The Isle of Patmos about 90 AD, the Revelation Of Jesus Christ, the last book of the Bible, which foretells those things which must shortly come to pass: meaning a series of events that once they begin, fall quickly into place one right after the other. II. Revelation Chapter 13 tells of three separate beasts which rise to sovereignly direct mankind's activities (1).
A. Revelation 13:1-4 tells of a sovereign system which directs all of mankind's activities through seven institutions and ten regions of global governance.
B. Revelation 13:5-10 tells of a sovereign king, that is a monarch, who has sovereign power and authority to rule.
C. Revelation 13:11-18 tells of a globally sovereign religious leader and banker[/B]
He is the Seignior, meaning, top dog
who takes a cut; in modern day terms, an investment banker, he is also the world's religious leader, and via investment and commerce connections institutes a global seigniorage wealth and commerce system (2).
This individual will have the financial experience or connections of CFR Co-Chairperson Robert E. Rubin
or a John Paulson or a George Soros
or a Tony Blair
.Photo of Treasury Secretary Robert Rubin, Treasury Secretary, and Alan Greenspan
, the Federal Reserve Chairman, at a House Hearing in 1995 Photo by Stephen Crowley of The New York Times from the article The Reckoning Taking Hard New Look At A Greenspan Legacy
by Peter S. Goodman who said of Alan Greenspan: "And his views held the greatest sway in debates about the regulation and use of derivatives, exotic contracts that promised to protect investors from losses, thereby stimulating riskier practices that led to the financial crisis. For more than a decade, Alan Greenspan has fiercely objected whenever derivatives have come under scrutiny in Congress or on Wall Street.
“What we have found over the years in the marketplace is that derivatives have been an extraordinarily useful vehicle to transfer risk from those who shouldn’t be taking it to those who are willing to and are capable of doing so,” Mr. Greenspan told the Senate Banking Committee in 2003. “We think it would be a mistake” to more deeply regulate the contracts, he added. III. Verse Commentary13:11 another beast
This is a third of three beasts, who is preceded by the beast system, and the beast political leader; this beast promotes the power of the former two; and convinces the world to worship them both. He is called 'false prophet' in Revelation 19:20 and Revelation 20:10.13:11 out of the earth
Just as the Antichrist is the embodiment of Lucifer, Satan, the Devil, the false religious leader will be sent forth and controlled by a demon from the pit of hell.13:11 two horns like a lamb
This describes the relative position of the false prophet compared to the beast system which has ten horns. The word horn in scripture symbolizes authority; and lamb symbolizes peacefulness: He uses his position to adeptly resolve global economic, religious, political and natural resource conflicts. Yet his outward gentleness belays his real deceptive dealings to lord it over mankind.13:11 like a dragon
He has a commanding way.13:12 exercises all the authority of the first beast
This oracle yields all the power and influence of the beast system.13:12 causes
The word causes is used eight times of him. He yields influence to establish false world religion, which is Luciferian in nature: he entices and induces to eventually dominate the world.13:12 to worship
People are compelled to accept and worship, both the beast system, and the beast world leader. 13:12 whose deadly head wound was healed
This refers to a catastrophic global financial breakdown.13:13 great signs
The words 'great signs' is used of Jesus in John 2:11 and John 2:23 and John 6:2. He works false miracles which cause the world to accept the beast system and the the Antichrist. 13:14 make and image to the beast
He directs construction of a symbol, that is, a representation of the beast system. 13:15 speak
The image of the beast system communicates, which is contrary to what is normal of idols. 13:15 causes to be killed
His gentle appearance is a lie, he is a killer.13:16 a mark
He introduces a seigniorage system which is based upon the "mark" which comes from the Greek word charagma meaning "etching in", or "tattoo upon", or "stamp", or "badge of servitude", which enables one to conduct economic activity, and which authorizes one to receive economic benefits; the mark will be required in order to buy or sell (3).
All seigniorage comes and goes through him: all sovereign wealth funds, and banks report to him. There is no national seigniority, as sovereign nations and their constitutions are history, as principles of global governance working through regional economic and security pacts or agreements exist; and these serve as the basis for regional currencies.
His religious and economic power complements the military and political power of the sovereign king; and between this false prophet and the Antichrist, they own the world "lock, stock and barrel". IV. Footnotes
means to rule in a monarch fashion; sovereign means to rule powerfully and authoritatively; the word came into use in 1250 to 1300. Dictionary.com
(2) Seigniorage means top dog bank note system, and comes from the Scottish and Bank of England financial system
which was devised to maintain the value of currency The History of Seigniorage Wealth Elaine Meinel Supkis February 7, 2008 Money Matters Blog
(3) David Deschesne Editor, Fort Fairfield Journal, A Mark in the Right Hand or in their Forehead
, Fort Fairfield Journal, July 6, 2005 in his explanation of Revelation Chapter 13:16-17. V. Revelation Chapter 13, Holman Christian Standard BibleThe Beast System Arises Out Of The Mass Of Humanity To Direct And Rule All Of Mankind's Activities
1 And I saw a beast coming up out of the sea; he had 10 horns and seven heads; on his horns were 10 diadems, and on his heads were blasphemous names.
2 The beast I saw was like a leopard, his feet were like a bear's, and his mouth was like a lion's mouth; the dragon gave him his power, his throne, and great authority.
3 One of his heads appeared to be fatally wounded; but his fatal wound was healed; the whole earth was amazed and followed the beast.
4 They worshiped the dragon because he gave authority to the beast; and they worshiped the beast, saying, "Who is like the beast? Who is able to wage war against him?"The Sovereign King Rules For 42 Months
5 A mouth was given to him to speak boasts and blasphemies; he was also given authority to act for 42 months.
6 He began to speak blasphemies against God: to blaspheme His name and His dwelling—those who dwell in heaven.
7 And he was permitted to wage war against the saints and to conquer them; he was also given authority over every tribe, people, language, and nation.
8 All those who live on the earth will worship him, everyone whose name was not written from the foundation of the world in the book of life of the Lamb who was slaughtered.
9 If anyone has an ear, he should listen:
10 If anyone is destined for captivity, into captivity he goes; if anyone is to be killed with a sword, with a sword he will be killed; here is the endurance and the faith of the saints. The Sovereign Banker Institutes The Mark, Greek Word Charagma, Meaning Etching In Or Tattoo Upon, Which Is Required In Order To Buy Or Sell
11 Then I saw another beast coming up out of the earth; he had two horns like a lamb, but he sounded like a dragon.
12 He exercises all the authority of the first beast on his behalf and compels the earth and those who live on it to worship the first beast, whose fatal wound was healed.
13 He also performs great signs, even causing fire to come down from heaven to earth before people.
14 He deceives those who live on the earth because of the signs that he is permitted to perform on behalf of the beast, telling those who live on the earth to make an image of the beast who had the sword wound yet lived.
15 He was permitted to give a spirit to the image of the beast, so that the image of the beast could both speak and cause whoever would not worship the image of the beast to be killed.
16 And he requires everyone—small and great, rich and poor, free and slave—to be given a mark on his right hand or on his forehead,
17 so that no one can buy or sell unless he has the mark: the beast's name or the number of his name.
18 Here is wisdom: The one who has understanding must calculate the number of the beast, because it is the number of a man. His number is 666.
VI. Further reading on Revelation Chapter 13
For continued reading on Revelation Chapter 13, I recommend: Beast System, Sovereign, And Seignior To Rule Mankind, Bible Reveals My personal application
I believe that God is Sovereign, and as such from eternity past, foreknew, foresaw, and worked out today's events; everything is working out according to his foreordained plan.
While some reference the rule of law, and others the rule of men, I reference the Word, Will and Way of The Lord; and what ever comes of that so be.
I do as I am commanded by the Lord, I keep the 'Luke 21:36 Watch', that is, I watch and pray always
that I might be accounted worthy to escape all these things (the end time horrors) that are coming, and stand before the Son Of Man.