Thinking about the Crisis

In July 2011, investors became aware that a debt union formed in the EU, and sold out of the world major currencies, DBV, and emerging market currencies, CEW, and derisked out of stocks, and deleveraged out of commodities, DBC. Fiat money died, only to be revived by the ECB's LTRO money printing ponzi scheme.

Capitalism is marked by bad money, poisoned credit, insolvent banks and insolvent nations. The European Financial, EUFN, are insolvent banks, brought back to life by the ECB zombification maneuver. Strong risers have included NBG, and IRE. The PIIGS are insolvent nations, yet Italy, EWI, Spain, EWP, and Ireland, EIRL, were all zombified by Bernankeism and rose through the Fed's announcement of ongoing policy action. The death of fiat money, the failure of credit, banking insolvency and sovereign insolvency are bringing about the death of capitalism. Debased currencies, insolvent banks and insolvent nations cannot support growth and profit. These are diseases destroying democracy and capitalism.

Capitalism is going to be replaced by true socialism. Wikipedia relates true socialism is an economic system based on direct production of utility rather than on the capitalist laws of accumulation and value. Wikipedia also relates Immanuel Wallerstein, writing in 1979, maintained that “There are today no socialist systems in the world-economy any more than there are feudal systems because there is only one world-system. It is a world-economy and it is by definition capitalist in form. Socialism involves the creation of a new kind of world-system, neither a redistributive world-empire nor a capitalist world-economy but a socialist world-government. I don't see this projection as being in the least utopian but I also don't feel its institution is imminent. It will be the outcome of a long social struggle in forms that may be familiar and perhaps in very few forms, that will take place in all the areas of the world-economy.”

Please consider that bible prophecy is being fulfilled in our times. The Sovereign Lord God, Psalm 2:4-5, has ordained current events, as a means of reveling the sovereignty of His Son, Revelation 2:6-7.

Joseph Schumpeter coined the term creative destruction ; “A process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one”.

The credit based fiat system known as Neoliberalism is entering a debt deleveraging cycle. Out of a credit bust, creative destruction will bring forth a diktat based system, that is Neoauthoritarianism, where a Federal Europe will be one component of a ten toed kingdom of regional global governance, as foretold in Daniel 2:31-45.

Fate is operating to replace the Banker Regime with the Beast Regime which is rising out of the profligate Mediterranean Sea nations of Italy and Greece. This monster of statism has seven heads, which will come to occupy in all of mankind's institutions, and will rule in all of the world's ten regions, Revelation 13:1-4.

Despite the stated intentions and stated monetary policies of US Federal Reserve to maintain inflation, as reported by Binyamin Appelbaum in the NYT article Fed to Maintain Rates Near Zero Through Late 2014, the global debt economy is deflating, as is seen in the chart of world government bonds, BWX, international corporate bonds, PICB, world stocks, ACWX, VT, VSS, EWX, EEM, EEB. The rise accompanying the Fed announcement is likely the final rise in Neoliberalism's death rattle rally.

Democracy is giving way to diktat. Out of a soon coming financial armageddon, that is a credit bust and global financial collapse, stemming from a Greek Default, a New Constitution and a Deep Restructuring will produce a New Europe. EU leaders will meet in crisis summits and announce regional frame work agreements to establish a United States of Europe, that is a Federal Europe, with the ECB or Bundesbank empowered as Europe's Bank, and a Fiscal Union to oversee dramatically reduced government spending. A New EU Policy Infrastructure, will feature monetary cardinals, that is regional stake holders, appointed to work for the region's security and stability. These will provide credit to grease the wheels of economic action and provide coordination of structural economic policies.

The dynamos of growth and profit that powered Neoliberalism, will give way to the dynamos of regional security and stability, that will empower Neoauthoritarianism. Regionalization is the Clarion Call of the 300 elite who met in 1974 at the Club of Rome. Their Call is clear, distinctive and ringing for regional global governance to replace democracy, at a time when destructionism replaces inflationism, as the global dynamic of political and economic activity. Ten regional blocs will coalesce to form a ten toed kingdom of regional global governance, characterized by a miry mixture of clay democracy and iron diktat, featuring dollar restriction zones, and un-dollar transactions, such as bartering and the exchange of local currencies as is communicated in the Robert Wenzel Economic Policy Journal, Marin Katusa, Lew Rockwell, article The Demise Of The Petro Dollar. The global hegemony of the UK and the US will soon be history.

Revelation 6:1-2 relates Look ! And See ! God has sent the First Horseman, riding on the white horse ; he has a bow without any arrows, to pass the baton of sovereignty to new sovereigns, that is the EU ECB and IMF Troika, giving them sovereign authority over all of the Euro zone. Fate, not any human action, will also soon open the curtains, and onto the world's stage, will step the most credible of leaders. A seemingly Little Authority, Daniel 7:24-25, will come to be known as the Sovereign, Revelation 13:1-4, and together with his banking partner, The Seignior, Revelation 13:5-10, will change our times and laws, Daniel 7:25. By working in the schemes of regional framework agreements, they will make sweeping economic and political changes. Their word, will and way, will replace the rule of law, and provide the seigniorage of diktat, replacing the seigniorage of neo liberal credit. They will lead Germany to become preeminent in a type of revived Roman Empire.

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Thinking about the Crisis