Sovereign Bond Quotes

Art, literature, and philosophy are attempts to found the world anew on a human freedom: that of the creator; to foster such an aim, one must first unequivocally posit oneself as a freedom. The restrictions that education and custom impose on a woman limit her grasp of the universe...Indeed, for one to become a creator, it is not enough to be cultivated, that is, to make going to shows and meeting people part of one's life; culture must be apprehended through the free movement of a transcendence; the spirit with all its riches must project itself in an empty sky that is its to fill; but if a thousand fine bonds tie it to the earth, its surge is broken. The girl today can certainly go out alone, stroll in the Tuileries; but I have already said how hostile the street is: eyes everywhere, hands waiting: if she wanders absentmindedly, her thoughts elsewhere, if she lights a cigarette in a cafe, if she goes to the cinema alone, an unpleasant incident can quickly occur; she must inspire respect by the way she dresses and behaves: this concern rivets her to the ground and self. "Her wings are clipped." At eighteen, T.E. Lawrence went on a grand tour through France by bicycle; a young girl would never be permitted to take on such an adventure...Yet such experiences have an inestimable impact: this is how an individual in the headiness of freedom and discovery learns to look at the entire world as his fief...[The girl] may feel alone within the world: she never stands up in front of it, unique and sovereign.

A covenant is a bond in blood sovereignly administered. When God enters into a covenantal relationship with men, he sovereignly institutes a life-and-death bond. A covenant is a bond in blood, or a bond of life and death, sovereignly administered.

Men of today seem to feel more acutely than ever the paradox of their condition. They know themselves to be the supreme end to which all action should be subordinated, but the exigencies of action force them to treat one another as instruments or obstacles, as means. The more widespread their mastery of the world, the more they find themselves crushed by uncontrollable forces. Though they are masters of the atomic bomb, yet it is created only to destroy them. Each one has the incomparable taste in his mouth of his own life, and yet each feels himself more insignificant than an insect within the immense collectivity whose limits are one with the earth's. Perhaps in no other age have they manifested their grandeur more brilliantly, and in no other age has this grandeur been so horribly flouted. In spite of so many stubborn lies, at every moment, at every opportunity, the truth comes to light, the truth of life and death, of my solitude and my bond with the world, of my freedom and my servitude, of the insignificance and the sovereign importance of each man and all men.

The notion of marriage as a union between two sovereign selves affirms virtues like independence, initiative, and self-reliance. Yet while attending to the virtues associated with the integrity of the individual, our contemporary discourse on marriage entirely neglects the virtues that are essential to the integrity of bonds--virtues like fidelity, kindness, forgiveness, modesty, gratitude, loyalty, patience, generosity, and selflessness.

domination originates in a transformation of the relationship between self and other. Briefly stated, domination and submission result from a breakdown of the necessary tension between self-assertion and mutual recognition that allows self and other to meet as sovereign equals.

LTCM is now a classic case of “fat tails” in finance. Portfolio math mimics diffusion physics—a scattergram of the outcomes from trillions of small random movements maps smoothly onto a bell curve. In well-behaved markets, finance looks much the same. But markets are rarely well-behaved for long, and big deviations from the norm happen very frequently in finance—the finance bell curve, that is, has fat tails. When Russia defaulted on its sovereign bonds in 1998, it was a fat tail for LTCM, and it was on the wrong side of the trade, with very heavy leverage.

The case for bitcoin as a cash item on a balance sheet is very compelling for anyone with a time horizon extending beyond four years. Whether or not fiat authorities like it, bitcoin is now in free-market competition with many other assets for the world’s cash balances. It is a competition bitcoin will win or lose in the market, not by the edicts of economists, politicians, or bureaucrats. If it continues to capture a growing share of the world’s cash balances, it continues to succeed. As it stands, bitcoin’s role as cash has a very large total addressable market. The world has around $90 trillion of broad fiat money supply, $90 trillion of sovereign bonds, $40 trillion of corporate bonds, and $10 trillion of gold. Bitcoin could replace all of these assets on balance sheets, which would be a total addressable market cap of $230 trillion. At the time of writing, bitcoin’s market capitalization is around $700 billion, or around 0.3% of its total addressable market. Bitcoin could also take a share of the market capitalization of other semihard assets which people have resorted to using as a form of saving for the future. These include stocks, which are valued at around $90 trillion; global real estate, valued at $280 trillion; and the art market, valued at several trillion dollars. Investors will continue to demand stocks, houses, and works of art, but the current valuations of these assets are likely highly inflated by the need of their holders to use them as stores of value on top of their value as capital or consumer goods. In other words, the flight from inflationary fiat has distorted the U.S. dollar valuations of these assets beyond any sane level. As more and more investors in search of a store of value discover bitcoin’s superior intertemporal salability, it will continue to acquire an increasing share of global cash balances.

The central fact of biblical history, the birth of the Messiah, more than any other, presupposes the design of Providence in the selecting and uniting of successive producers, and the real, paramount interest of the biblical narratives is concentrated on the various and wondrous fates, by which are arranged the births and combinations of the 'fathers of God.' But in all this complicated system of means, having determined in the order of historical phenomena the birth of the Messiah, there was no room for love in the proper meaning of the word. Love is, of course, encountered in the Bible, but only as an independent fact and not as an instrument in the process of the genealogy of Christ. The sacred book does not say that Abram took Sarai to wife by force of an ardent love, and in any case Providence must have waited until this love had grown completely cool for the centenarian progenitors to produce a child of faith, not of love. Isaac married Rebekah not for love but in accordance with an earlier formed resolution and the design of his father. Jacob loved Rachel, but this love turned out to be unnecessary for the origin of the Messiah. He was indeed to be born of a son of Jacob - Judah - but the latter was the offspring, not of Rachel but of the unloved wife, Leah. For the production in the given generation of the ancestor of the Messiah, what was necessary was the union of Jacob precisely with Leah; but to attain this union Providence did not awaken in Jacob any powerful passion of love for the future mother of the 'father of God' - Judah. Not infringing the liberty of Jacob's heartfelt feeling, the higher power permitted him to love Rachel, but for his necessary union with Leah it made use of means of quite a different kind: the mercenary cunning of a third person - devoted to his own domestic and economic interests - Laban. Judah himself, for the production of the remote ancestors of the Messiah, besides his legitimate posterity, had in his old age to marry his daughter-in-law Tamar. Seeing that such a union was not at all in the natural order of things, and indeed could not take place under ordinary conditions, that end was attained by means of an extremely strange occurrence very seductive to superficial readers of the Bible. Nor in such an occurrence could there be any talk of love. It was not love which combined the priestly harlot Rahab with the Hebrew stranger; she yielded herself to him at first in the course of her profession, and afterwards the casual bond was strengthened by her faith in the power of the new God and in the desire for his patronage for herself and her family. It was not love which united David's great-grandfather, the aged Boaz, with the youthful Moabitess Ruth, and Solomon was begotten not from genuine, profound love, but only from the casual, sinful caprice of a sovereign who was growing old.

Thou art my servant; I have chosen thee." Isaiah 41:9 If we have received the grace of God in our hearts, its practical effect has been to make us God's servants. We may be unfaithful servants, we certainly are unprofitable ones, but yet, blessed be his name, we are his servants, wearing his livery, feeding at his table, and obeying his commands. We were once the servants of sin, but he who made us free has now taken us into his family and taught us obedience to his will. We do not serve our Master perfectly, but we would if we could. As we hear God's voice saying unto us, "Thou art my servant," we can answer with David, "I am thy servant; thou hast loosed my bonds." But the Lord calls us not only his servants, but his chosen ones--"I have chosen thee." We have not chosen him first, but he hath chosen us. If we be God's servants, we were not always so; to sovereign grace the change must be ascribed. The eye of sovereignty singled us out, and the voice of unchanging grace declared, "I have loved thee with an everlasting love." Long ere time began or space was created God had written upon his heart the names of his elect people, had predestinated them to be conformed unto the image of his Son, and ordained them heirs of all the fulness of his love, his grace, and his glory. What comfort is here! Has the Lord loved us so long, and will he yet cast us away? He knew how stiffnecked we should be; he understood that our hearts were evil, and yet he made the choice. Ah! our Saviour is no fickle lover. He doth not feel enchanted for awhile with some gleams of beauty from his church's eye, and then afterwards cast her off because of her unfaithfulness. Nay, he married her in old eternity; and it is written of Jehovah, "He hateth putting away." The eternal choice is a bond upon our gratitude and upon his faithfulness which neither can disown.

in the history of the bond market.68 So successful did Argentina’s default prove (economic growth has since surged while bond spreads are back in the 300-500 basis point range) that many economists were left to ponder why any sovereign debtor ever honours its commitments to foreign bondholders.69

The Covenant of Grace is that eternal and intimate bond of friendship that God has established with His people in the Lord Jesus Christ; in which He is their sovereign friend and they are His servant friends; and in which God gives to them a communion of life with Him and a sovereignly dictated order of life.

Writing in 1895, the writer and translator Yan Fu described the differences between China and the West as stark: China values the Three [family] Bonds most highly, while the Westerners give precedence to equality. China cherishes relatives, while Westerners esteem the wealthy. China governs the realm through filial piety, while Westerners govern the realm with impartiality. China values the sovereign, while Westerners esteem the people. China prizes the one Way, while Westerners prefer diversity… In learning, Chinese praise depth and breadth of wisdom, while Westerners rely on human strength.

Weak banks endangered sovereigns that were called upon to save them, and weak sovereigns endangered banks holding bonds at risk of default. Recession worsened the debt ratio, but austerity to reduce borrowing suppressed growth, or caused even worse recession.

Imagine that you knew Greece was still Greece and Italy was still Italy and that the prices quoted in the markets represented the bond-buying activities of banks pushing down yields rather than an estimate of the risk of the bond itself. Why would you buy such securities if the yield did not reflect the risk? You might realize that if you bought enough of them—if you became really big—and those assets lost value, you would become a danger to your national banking system and would have to be bailed out by your sovereign. If you were not bailed out, given your exposures, cross-border linkages to other banks, and high leverage, you would pose a systemic risk to the whole European financial sector. As such, the more risk that you took onto your books, especially in the form of periphery sovereign debt, the more likely it was that your risk would be covered by the ECB, your national government, or both. This would be a moral hazard trade on a continental scale. The euro may have been a political project that provided the economic incentive for this kind of trade to take place. But it was private-sector actors who quite deliberately and voluntarily jumped at the opportunity.

Collecting the shards, the pieces shattered long ago with each step Reminding me, I am whole, sovereign now Sealing the bond are my footprints laden with stardust

Strange as it may seem — and irrational as it would be in a more logical system of world diplomacy — the dollar glut is what finances America’s global military build-up. It forces foreign central banks to bear the costs of America’s expanding military empire. The result is a new form of taxation without representation. Keeping international reserves in dollars means recycling dollar inflows to buy U.S. Treasury bills — U.S. government debt issued largely to finance the military spending that has been a driving force in the U.S. balance-of-payments deficit since the Korean War broke out in 1950. [...] “China National Offshore Oil Corporation go home” is the motto when foreign governments try to use their sovereign wealth funds (central bank departments trying to figure out what to do with their dollar glut) to make direct investments in American industry, as happened when China’s national oil company sought to buy Unocal in 2005.[...] So Europeans and Asians see U.S. companies pumping more dollars into their economies not only to buy their exports (in excess of providing them with goods and services in return), not only to buy their companies and commanding heights of privatized public enterprises (without giving them reciprocal rights to buy important U.S. companies), and not only to buy foreign stocks, bonds and real estate. The U.S. media neglect to mention that the U.S. Government spends hundreds of billions of dollars abroad — not only in the Near East for direct combat, but to build military bases to encircle the rest of the world, and to install radar systems, guided missile systems and other forms of military coercion, including the “color revolutions” that have been funded all around the former Soviet Union.

The medical profession has had an especially persuasive claim to authority. Unlike the law and the clergy, it enjoys close bonds with modern science, and at least for most of the last century, scientific knowledge has held a privileged status in the hierarchy of belief.

It nevertheless remains true that, in most countries for which long-run data are available, stocks have out-performed bonds – by a factor of roughly five over the twentieth century.9 This can scarcely surprise us. Bonds, as we saw in Chapter 2, are no more than promises by governments to pay interest and ultimately repay principal over a specified period of time. Either through default or through currency depreciation, many governments have failed to honour those promises. By contrast, a share is a portion of the capital of a profit-making corporation. If the company succeeds in its undertakings, there will not only be dividends, but also a significant probability of capital appreciation. There are of course risks, too. The returns on stocks are less predictable and more volatile than the returns on bonds and bills. There is a significantly higher probability that the average corporation will go bankrupt and cease to exist than that the average sovereign state will disappear. In the event of a corporate bankruptcy, the holders of bonds and other forms of debt will be satisfied first; the equity holders may end up with nothing. For these reasons, economists see the superior returns on stocks as capturing an ‘equity risk premium’ – though clearly in some cases this has been a risk well worth taking.

1. Defense of Reformed Presbyterian religion in Scotland. 2. Promotion of uniformity among the Churches of the three kingdoms. 3. Extirpation of Popery, Prelacy, and all unsound forms of religion. 4. Preservation of Parliaments, and of the liberties of the people. 5. Defense of the sovereign in his maintaining the Reformed religion, the Parliaments, and the liberties of the people. 6. Discovery and punishment of malignants, and disturbers of the peace and welfare of the nations. 7. Mutual defense and protection of each individually, and of all jointly, who were within the bonds of the Covenant. 8. Sincere and earnest endeavor to set an example before the world of public, personal, and domestic virtue and godliness.

When emerging markets cannot pay foreign debts, options vanish. Unavoidable defaults shut off access to global capital markets. Without access to capital, economies contract. Local currency becomes worthless. Printing more money invites inflation and hyperinflation. Poverty proliferates. Governments that cannot provide for their populations do not last long. Chaos opens the door to empty promises by authoritarians armed with populist slogans and freelance militias. Advanced economies are not invulnerable, as history has shown repeatedly. It’s worth noting that in 1899 cautious investors sought safety in one-hundred-year bonds issued by the Habsburg Empire that ruled Austria-Hungary. When the anarchist Gavrilo Princip assassinated Austria’s archduke Ferdinand in June 1914, an act that ignited World War I, sovereign Habsburg bonds were still holding their value relative to other European bonds. In other words, no experts saw the end coming. Within four years, the Habsburg Empire was history. Two decades later, the postwar debt and reparations bills that nearly smothered Germany helped usher in World War II.

The word of the Lord came to me.  Son of man, the house of Israel has become dross to me; all of them are the copper, tin, iron and lead left inside a furnace.  They are but the dross of silver.  Therefore this is what the Sovereign Lord says: ‘Because you have all become dross, I will gather you into Jerusalem.  As men gather silver, copper, iron, lead and tin into a furnace to melt it with a fiery blast, so I will gather you in my anger and my wrath and put you inside the city and melt you.  I will gather you and I will melt you with my fiery wrath, and you will be melted inside her.  As silver is melted in a furnace, so you will be melted inside her, and you will know that I the Lord have poured out my wrath upon you.’  As surely as I live, declares the Sovereign Lord, I will rule over you with a mighty hand and an outstretched arm and with outpoured wrath.  I will bring you from the nations and gather you from the countries where you have been scattered – with a mighty hand and an outstretched arm and with outpoured wrath.  I will bring you into the desert of the nations and there, face to face, I will execute judgment upon you.  As I judged your fathers in the desert of the land of Egypt, so I will judge you, declares the Sovereign Lord.  I will take note of you as you pass under my rod, and I will bring you into the bond of the covenant.  I will purge you of those who revolt and rebel against me.  Although I will bring them out of the land where they are living, yet they will not enter the land of Israel.  Then you will know that I am Lord.

Being an ally, for example, means not insisting that Israel, a sovereign country with a globally renowned judicial system, conduct “swift and transparent investigations” of security incidents. Americans would surely be offended if such demands were leveled at them by a foreign government, yet the United States routinely makes them of Israel. But being an ally also means that Israel should not repay America for supporting it in the Security Council by building in isolated settlements. Being an ally, on the one hand, means releasing Jonathan Pollard and recognizing Israel’s capital in Jerusalem, and on the other, respecting American Jewish pluralism and the prerogatives of the world’s mightiest power. Allies respect the decisions of one another’s democratically chosen leaders, even when they disagree. They back one another on principle and not merely to placate domestic constituents. Their bonds are elemental, meaningful, and mutually, enduringly beneficial.

Personalism therefore includes among its leading ideas, the affirmation of the unity of mankind, both in space and time, which was foreshadowed by certain schools of thought in the latter days of antiquity and confirmed in the Judeo-Christian tradition. For the Christian there are neither citizens nor barbarians, neither bond nor free, neither Jew nor gentile, neither white, black or yellow, but only men created in the image of God and called to salvation in Christ. The conception of a human race with a collective history and destiny, from which no individual destiny can be separated, is one of the sovereign ideas of the Fathers of the Church. In a secularised form, this is the animating principle of eighteenth century cosmopolitanism, and later of Marxism. It is flatly opposed to the ideas of absolute discontinuity between free spirits (as in Sartre) or between civilizations (in Malraux or Frobenius). It is against every form of racialism or of caste, against the ‘elimination of the abnormal’ , the contempt of the foreigner, against the totalitarians’ denigration of political adversaries—in short, it is altogether against the fabrication of scapegoats. Any man, however different, or even degraded, remains a man, for whom we ought to make a human way of life possible.

But a Prime Minister cannot escape till he has succeeded in finding a successor; and though the successor be found and consents to make an attempt, the old unfortunate cannot be allowed to go free when that attempt is shown to be a failure. He has not absolutely given up the keys of his boxes, and no one will take them from him. Even a sovereign can abdicate; but the Prime Minister of a constitutional government is in bonds.

According to BIS data, professionally managed funds increased their stake in emerging market equity and bonds from $900 billion to $1.4 trillion between 2008 and 2014.11 Set against global totals running into the tens of trillions, those were not huge numbers. But they were comparable to the stock of toxic subprime assets, which had caused such havoc in 2007–2008, and to the debts of Greece, Spain and Ireland, which had destabilized the eurozone in 2010–2012. After subprime and after eurozone sovereign debt, were emerging markets to be the next volume in the “trilogy” of debt crises?12

Where is the justice,” Triste demanded, “in murdering men in their sleep? Where is the justice in killing children? In cutting down the good along with the evil?” “Precisely there—Ananshael spares no one. Emperor or orphan, slave or sovereign, priest or prostitute—he comes for us all.