Hireling and True Shepherd

October 28, 2022 key news items this week:

 1. Hireling and True Shepherd: This week we saw new government leadership changes in China and UK. The former the West labeled as dictatorship, the latter as democratic. It is sad that even with today’s unmitigated flow of information, there is no universal code of ethics on mislabeling. Politics is a game of trade offs and compromises. True politik has never been just one person whether he is Xi, Putin, Trump, Biden or Sunak. It is just the simple minded readers of MSM are more easily manipulated with comics of heroes and villains in pure black and white than 50 shades of grey. In two weeks time, US will have her midterm election and with that, the effectiveness of Biden in the next two years will be put to the test. Some US politicians like Tulsi Gabbard have already jumped ship ahead of ETA. Others like Pelosi is grabbing all she could before her baton is lost. In the meantime, we, the poor citizens of this world, will go through, as Putin described, a most dangerous decade. (Fig. 1).

The transition from a uni-polar world to a multi-polar world is inevitable and volatile. There will be   hot wars on a global scale interspersed with sabotages, disruptions, civil unrest and colour revolutions. Be guided my friends, we may not know everything that is to know but we all can discern the difference between a true shepherd and a hireling. A true shepherd feeds his flock, a hireling feed on his flock. The outcome over the next 10 years will be determined by who is a true shepherd.

Psalm 23:1  The LORD is my shepherd; I shall not want. 2  He makes me to lie down in green pastures; He leads me beside the still waters. …..(Fig. 2)

 

2. Game of Thrones: As expected Sunak negotiated his entry into 10 Downling Street. This represents a small victory for WEF but there are compromises on Sunak’s cabinet appointments. WEF will run a more co-operative UK with Europe but the House of Windsor still call the shots in Foreign Affairs and Defense. (Fig. 3)

But whilst everyone is looking at the magician’s right hand, the left hand continued to push for war with Boris Johnson, now a backbencher, off to US for War lobby (Fig. 4).

 

3. Proxy War of Anglo American Empire Against Russia in Ukraine:

(i) The US puppet Ursula von der Leyen is pushing to seize Russian assets along the UK model rather than just freezing. (Fig. 5).

This is an escalation as compared with a more diplomatic approach proposed by Macron. My chips are on the side of France, Germany and Italy for deescalation over the Anglo American Establishment and Brussels for show down.

(ii) Chinese news sources mentioned that 70% of AFU Counter Offensive is now manned by foreign mercenaries (US, UK and Polish army in changed uniforms). No wonder Putin and General Armageddon has taken the gloves off with continuous bombing and drone strikes. The 600,000 strong AFU is already the largest and best trained army of the Anglo American Empire in Europe, sending in another 4700 men from the 101^st Air Borne Division to Bulgaria is more for optics for Ukrainians than a surge in combat forces with Russia.(Fig. 6)

Sadly loosing is neither an option for Russia, China nor the Anglo American Empire and this conflict will not end until much more bloodshed and human suffering.

 

The past week’s financial markets:

 A. Stock Market: Dow rose 1,779.24 points for the week (+5.72%) (Fig. 7).

 The echoes of a pending Fed pivot continued to resonate throughout this week and reinforced by a drop of USGG10YR yield. Towards end of the week third quarter GDP growth was released with a better than expected 2.6% (Fig. 8).

Just two weeks before the midterm election, I won’t pay too much attention to broad numbers as such when a slight adjustment to the nominal GDP deflator can swing a contraction into an expansion. I bet the next inflation index release would also be smaller than expected. A better finger on the pulse would be Amazon’s results which missed expectations and the stock tanked 20%.(Fig. 8 red framed window).

 

B. Debt Market: (Fig. 9): USGG10YR ended the week at 4.01% a drop of 20.9 basis points or -4.95% change from the previous week.

On the US Treasury Yield Curve, rates tend to rise on the short end with next week FOMC meeting looming but rates 1 year and above dropped between 3 to 20 basis points.(Fig.10)

Rumor began to circulate after Janet Yellen’s discussed in a public forum to enhance the Treasury Market liquidity implicit with some form of Operation Twist buyback of longer term notes and bonds. Please read my previous week’s report of lack of buyers.(Fig. 11)

 

C. FX Market (Fig.12): for the week ended October 28, 2022, DXY opened at 111.875 and closed at 110.668 (Down -1.08%).

This week we saw major recovery of GBP as Sunak became UK Prime Minister and reverse Truss’s spent thrift by borrowing policy. BOJ again intervened at the Yen FX market but Janet Yellen refused to comment when asked. (Fig. 13).

DXY briefly went blow 110 during the week so keep an eye on volatility.

 

D. Precious Metals & Crypto :(Fig. 14) Gold price opened at $1656.6, and closed the week at $1644.3, a drop of $12.3 (-0.74%).

Further paper shorting is seen in the Leveraged Money category whilst all other sectors either reduced their forward sales or increased their longs in a tight physical environment. Silver in similar fashion moved in a narrow range down 0.29% for the week whilst Bitcoin followed a jubilant stock market and up 7.36%.(Fig. 15)

 

John 10:11  "I am the good shepherd. The good shepherd gives His life for the sheep.:12  But a hireling, he who is not the shepherd, one who does not own the sheep, sees the wolf coming and leaves the sheep and flees; and the wolf catches the sheep and scatters them. 13  The hireling flees because he is a hireling and does not care about the sheep. 14  I am the good shepherd; and I know My sheep, and am known by My own.15  As the Father knows Me, even so I know the Father; and I lay down My life for the sheep. 16  And other sheep I have which are not of this fold; them also I must bring, and they will hear My voice; and there will be one flock and one shepherd. 17  "Therefore My Father loves Me, because I lay down My life that I may take it again. 18  No one takes it from Me, but I lay it down of Myself. I have power to lay it down, and I have power to take it again. This command I have received from My Father."