Archive for March, 2012

Regionalization Will Begin To Replace Capitalism Beginning In The Second Quarter 2012

March 30, 2012

Financial Market Report for the Month of March 2012

1) … Introduction

Investment capital will be fading, and political capital will be emerging to govern mankind’s economic activities beginning in the second quarter of 2012.

2) … A New Europe will emerge out of soon coming chaos.

Graham Summers writes the Zero Hedge article Germany is Now Openly Engaging In Monetary Policies Against the ECB, and concludes that Germany is laying the groundwork for leaving the Euro. Rather than leaving the Euro, Germany’s current economic and political activities will establish it to arise out of Financial Armageddon, having a firm foundation to be preeminent in a European Super State.  Germany will be the leading political power in power in a EU ECB political, monetary, economic and fiscal union.  And Germany will be the lead country in a revived Roman Empire, where a Sovereign, Revelation 13:5-10 and a Seignior, Revelation 13:11-18, will the top dog leaders.

3) … The world is passing through Peak Global Trade.

Global trade has peaked, and China is going to experience a painful shift out of an unsustainable growth paradigm based upon world wide exports (CHII, CHIM), housing (TAO), business entrepreneurship (HAO), infrastructure development (CHXX).

The very nature of banking (CHIX), will shift from an economy based upon money to an economy based upon diktat.  The current fiat money system is going to be replaced by the diktat money system where diktat serves as both money and credit.

As the dynamos of growth and profit wind down, the paradigm of global export and trade will shift to a more sustainable model.  Regional blocs will become the sphere of economic activity, as mandated by the 1974 Club of Rome Clarion Call for regionalization.

China will become the bedrock of a regional trading bloc, that is the Shanghai Cooperative, where there will be trade in local currencies, ie the Australian Dollar for the Chinese Currency, as well as barter of all types; these will be largely un-dollar spheres of economic activity; that is areas where the dollar is absent in trade practice.

And with regard to India, the WSJ noted this week

India’s October-December current account deficit nearly doubled to $19.6 billion from $10.1 billion a year earlier due to a sharp slowdown in merchandise and services exports even as imports grew at a rapid pace, the central bank said Friday. The current account is made up of trade balance and other items such as software payments. The Reserve Bank of India said that the country’s balance of payments “experienced a significant stress as trade deficit widened and capital inflows fell far short of financing requirement, resulting in significant drawdown of foreign exchange reserves.”

In Quarter 2, of 2012, the dynamos of security stability and sustainability will be powering  up the new paradigm of regional export and trade, as regional global governance rises to replace capitalism.

4) … Stocks Outside Of The US, Bonds, Commodities, And Currencies Declined In Value In March 2012.

World Stocks, ACWX traded lower this month, trading 0.5% lower, being led so by EBB 4.5%, EEM 3.0.

Bonds, BND, traded 0.6% lower.

World Government Bonds, BWX, traded 0.8% lower.

Emerging Market Bonds, EMB, traded 0.1% lower.

Commodities, DBC, traded 1.8% lower, with Base Metals, DBB, down 4.8% and, GLD, trading 1.3% lower.

The Brazilian Real, BZF, traded 5.0% lower; the Australian Dollar, FXA 3.0%,  the Indian Pure, ICN 3.0%, the South African Rand 2.0%, and the Japanese Yen, FXY 2.0%, and the Emerging Markets, CEW 1.0.

Stocks leading the way down this month included CRBI, IEZ, OIH, ALUM, COPX, URA, REMX, WCAT, XOP, XME, SLX as well as CHII, CHIM.

Charts of the following bear market ETFs show a rise this week, BZQ, 3.4%, FXP 3.2%, and DUG 1.5%.

5) … The World Is Pivoting From Financial Liberation To Debt Servitude.

Doug Noland asks Financial Repression? And writes not at all, as the world has seen Financial Liberation, for the investor, as he cites the following:

March 30 – Bloomberg (Bodhidharma Natarajan):  “Bond sales globally have exceeded a record $1.16 trillion in the first three months of 2012 as moves by global central banks along with reduced risk from Europe’s sovereign debt crisis drive credit-market optimism.  Offerings by companies from Europe to Asia and the U.S. have surpassed the previous record of $1.155 trillion reached in the first quarter of 2009…  Yields on global corporate bonds fell to 4.12% on March 29, within 15 basis points of the lowest yield in records going back to 1997…”

March 27 – New York Times (Binyamin Appelbaum):  “In a speech that sought by turns to deflate optimism and pessimism about the labor market, the Federal Reserve chairman, Ben S. Bernanke, said Monday that the Fed’s efforts to stimulate growth were gradually reducing unemployment, but that the scale and duration of the problem could leave lasting scars on the economy.  ‘Recent improvements are encouraging,’ he said. However, he continued, ‘millions of families continue to suffer the day-to-day hardships associated with not being able to find suitable employment… Because of its negative effects on workers’ skills and attachment to the labor force, long-term unemployment may ultimately reduce the productive capacity of our economy…’”

March 27 – Bloomberg (Joshua Zumbrun):  “Federal Reserve Chairman Ben S. Bernanke said the central bank’s aggressive response to the 2007-2009 financial crisis and recession helped prevent a worldwide catastrophe.  ‘We did stop the meltdown,’ Bernanke said today in the third of four lectures to undergraduates at George Washington University. ‘We avoided what would have been, I think, a collapse of the global financial system.’”

March 27 – Wall Street Journal (Kristina Peterson):  “Federal Reserve Chairman Ben Bernanke said the central bank’s easy-money policies are still needed to confront deep problems in the labor market, moving to reinforce his plan to keep interest rates low for years.  His comments… were striking after several months of improvement in the jobs market. The comments also ran counter to a view that has emerged in financial markets recently that the Fed could back away from its low-interest-rate policies by next year.”

March 26 – Bloomberg (Nikolia Gammeltoft and Whitney Kisling):  “Hedge funds trailing the Standard & Poor’s 500 Index for the last five months are giving up on bearish bets and buying stocks at the fastest rate in two years.   A gauge of hedge-fund bullishness measuring the proportion of bets that shares will rise climbed to 48.6 last week from 42 at the end of November 2011, the biggest increase since April 2010… The Bloomberg aggregate hedge fund index gained 1.4% last month, lagging behind the Standard & Poor’s 500 Index by 2.65 percentage points.  Money managers struggling to catch up with the gains have contributed to the rally that pushed the S&P 500 up 27% since October…”

March 29 – Bloomberg (Sridhar Natarajan):  “Corporate bond sales in the U.S. soared to a record $427 billion in the first three months of 2012, beating a previous quarterly high set a year ago as companies tap the debt market at the lowest-ever borrowing costs.  Offerings by companies from the neediest to the most creditworthy surpassed the previous record of $397 billion reached in the first quarter of 2011…  Yields on investment-grade bonds fell to 3.4% on March 2, the lowest in records dating back to 1986…”

March 28 – Bloomberg (Sarah Mulholland):  “Sales of asset-backed bonds tied to U.S. consumer loans rose to pre-financial crisis levels as automakers led by Ford Motor Co. boosted offerings amid the fastest acceleration in the U.S. auto market since February 2008.  Firms… issued $33.7 billion of the securities in the three-month period ended March 23, the most since the first quarter of 2008…”

Mr. Noland is an adept communicator of the global government finance bubble that has grown since the US went off the gold standard. 

The Milton Friedman Free To Choose script of floating currencies has provided an ever increasing moneyness of credit since 1971. But begifnning in November 2010, with the trade lower in Chinese Industrials, CHII, and Chinese Small Caps, HAO, the seigniorage, that is the moneyness, of the world central banks’s monetary policies have begun to wane.

Through creative destruction, fate, not any human action, is now establishing the moneyness of diktat, as God’s Word is creating a monster of regional statism and totalitarian collectivism, that being Neoauthoritarianism. This behemoth is rising up out of the profligate Mediterranean Sea nations of Greece and Italy, to replace Neoliberalism, as foretold in Revelation 13:1-4. This behemoth has seven heads symbolic of its occupation in mankind’s seven institutions; and ten horns symbolic of its rule in each of the world’s ten regions.

The Economist Magazine writes, “Greece’s two big parties have become machines for dispensing patronage and pork on a scale that is amazing”.  And  Lorenzo Totaro of Bloomberg  reports on corruption in Italy, “Italy’s underground economy last year amounted to 35% of the country’s gross domestic product, research institute Eurispes said.  Transactions in the so called ‘black economy’ reached as much as 540 billion euros ($717bn) in 2011. The figures show ‘a loss of purchasing power, salaries among the lowest in Europe, a sharp rise of goods’ prices, wider use of consumer credit as a way to integrate salaries, and a subsequent increase of poverty,’ according to the report.”

John the Revelator wrote of his vision, a dream given to him by angels, where a head on this monster is wounded to death, Revelation 13:3. This head wound is a catastrophic global financial collapse. The head of finance, commerce and trade is going to suffer an apparent mortal wound. But through diktat, it will recover; and the people will be amazed, and give their allegiance to it; placing their trust and faith in the word, will and way of sovereign leaders, who rise to replace sovereign nation states, Revelation 13:3-4.

There is today, waiting in the wings of Europe’s stage, a seemingly one of little authority. This   Little Horn, will rise through knowledge of framework agreements to rule the Eurozone. He will be the Sovereign, the Ruler, of Revelation 13:5-10. He will be accompanied by the Seignior, the Banker, of  Revelation 13:11-18.

Eventually 10 kingdoms, each with their own king, will emerge as regional economic and political blocs, as foretold in Revelation 17:12; these will be the ten toes of iron and clay of Daniel 2:31-45, where iron is symbolic of diktat, and clay of democracy. Eventually this miry mixture will crumble and a totalitarian one world government government will emerge, as foretold in Daniel 7:7.

European Financials, Sweden And China Led Stocks Lower As Fears Of Unsustainable Sovereign Debt And The Reality Of China Slowdown Settled In

March 29, 2012

Financial Market Report for March 29, 2019

1) … European Financials, Sweden And China Led Stocks Lower As Fears Of Unsustainable Sovereign Debt And The Reality Of China Slowdown Settled In.

Tyler Durden writes European equity prices fell for the third day in a row and pulled back near six week lows, breaking below the 50DMA for the first time since it crossed above on 1/16. Today’s drop was the largest in three weeks as Italian banks were halted, plunging their most in over three months and back at levels not seen since mid January. Most Italian banks are down 9-11% in March but BMPS is down over 24% as Italian sovereign yields start to come unhinged again (ironically a day after Monti announced the crisis was over). 10Y BTPs broke back below last Friday’s lows (the moment the ECB stepped in last time to save the day) up over 5.2% yield – catching up to CDS levels (and ITA spreads are +23bps on the week). Spain is also weak (+15bps on the week) and heading for 3 month highs in its yields. Since the CDS roll (March 20th), the sell-off has accelerated with equity and credit markets tracking lower together (as opposed to the last few months where credit unperformed and then snaps back higher). We discussed the LTRO Stigma trade earlier and that has continued sliding notably wider today as LTRO-encumbered banks hugely underperform. We suspect hedges (sovereign credit, financial credit, and equity) placed early in the year for the 3/20 Greece event (among other things) have run off and now managers are reducing risk in real terms (selling) as opposed to replacing hedges which is why the uber-supported markets of Italy and Spain are losing the battle now. Lastly, Europe’s XVI is its richest relative to US VIX since the rally began, jumping dramatically today.
European Financials, EUFN, and European Shares, VGK, traded lower today as Forbes writes Citi Rings Warning Bell On Spain Debt, and Agence France writes Spain Likely To Need Bailout This Year, and as WSJ writes For Portugal Moment Of Truth Arrives. Bloomberg reports Sovereign, Corporate Bond Risk Rises, Credit-Default Swaps Show. The cost of insuring against default on European sovereign and corporate debt rose, according to traders of credit-default swaps.
Sweden, EWD,  whose economy is dependent upon export with Europe, and China, YAO, CAF,  where reports of economic slowdown abound, traded lower today. The global export paradigm that underwrites capitalism is faltering, as the dynamos of growth and profit, are winding down.
Country ETFs, Sweden, EWD, China, YAO, India, INP, Brazil, EWZ, Russia, RSX, are at the  forefront of the bull whip effect, that is yo yo effect, where there is a sharp retraction in global trade, and carry trade investment in sector ETFS such as infrastructure, CHIX, INXX, BRXX, CHXX, Industrial, CHII, Materials, CHIM, CRBI, particularly KOL, ALUM, and COPX, energy service, OIH, IEZ,  and banking, CHIX, EPI, BRAF  Argentina, ARGT, and its banks, have been a neo liberal finance darling; but now these are selling off strongly.
A strong recession in Spain and sovereign insolvency in the PIIGS, is causing a bank run in Italy Banking Stocks, and disinvestment out of Spain’s’ bank, Banco Santander, STD, as well as strong disinvestment out of Greece, GREK, Italy, EWI, and Spain, EWP.
Bloomberg reports Greek Deposit Run Update: Hopeless and Getting Worse.
Bloomberg reports Emerging Stocks Tumble to 2-Month Low on Slowdown Concern. Emerging-market stocks, EEM, fell to a two-month low as U.S. jobless claims exceeded economists’ estimates and Chinese earnings missed forecasts. The MSCI Emerging Markets Index (MXEF) declined 1.4 percent to 1,029.67 by 11:34 a.m. in New York, on course for its weakest close since Jan. 31. Information technology and energy companies led declines.
Diminished trade opportunities is causing competitive currency deflation in World Major Currencies, DBV, as well as Emerging Market Currencies, CEW, with the Australian Dollar,  FXA, and the Brazilian Real, BRF, selling off.
Bloomberg reports India Raises Heat on Foreign Companies. If businesses like certainty, then India has been a big turnoff for foreign companies. A series of recent developments have greatly increased the perception that the country has a risky business environment where policies suddenly can turn hostile. Tax proposals in the national budget unveiled in March stunned foreign firms. They could create significant retroactive tax liabilities for international mergers stretching back a half-century and eliminate a tax exemption many investors now have, wreaking havoc on corporate deal making, legal experts say. More than a half-billion dollars in foreign capital has left the Indian stock market in recent days. (Hat Tip to Between The Hedges)
Debt deflation, that is currency deflation, is causing disinvestment in world government bonds, BWX, and emerging market bonds, EMB.
A sell off in industrial mining stocks, CRBI, particularly copper mining stocks, COPX, and aluminum mining stocks, ALUM, metal mining stocks, XME, coal mining stocks, KOL, and steel stocks, SLX, gold mining stocks, GDX, silver mining stocks, SIL, as well as Energy Service, IEZ, OIH, and Wildcatters, WCAT, reflects risk aversion to digging  in the ground and drilling in the earth for natural resources, as the world central banks’ monetary policies have failed  to stimulate and sustain growth.
We are witnessing the end of the fiat money system and the end of credit as bonds, BND,  are now trading lower, as investors have called the interest rate on the US 10 Year Note, ^TNX , above 2.0%, and as investors see recession coming as the Steepner ETF, STPP, is rising and the Flattener ETF, FLAT, is falling. With the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, rising,  investors are selling Treasuries, ZERO, EDV, TLT, and with the currency demand curve, RSV:RZG, falling, investors are selling currencies, as evidenced in the dramatic fall of the Yen, FXY.
Retail REIT, Simon Property Group, is now trading lower. It has been the poster company for the Banker Regime of Neoliberalism, with its financial success in shopping malls, it has riden the consumer finance, V,  MC, DES, AXP, and retail, XRT, consumer goods, XLC, wave, higher for a 70% gain over the last two years, and now commands a PE of 42, with a 2.6% dividend.  Simon Property Group, as well as consumer goods producer, Nike, NKE, epitomize the gains of neo liberal financed, investment capital.

2) … Creative Destruction is At Work Replacing Investment Capital With Political Capital … This Is The Foreordained Plan Of God To Establish Regional Global Governance To Effect His Judgment Upon Humanity.

But with sovereign insolvency, banking insolvency, and failure of global export driven capitalism, and the exhaustion of world central banks’ monetary policy, investment capital is being replaced with political capital, as fate, not any human action, is passing the baton of sovereignty from nation states to 1) regional bodies such as the EU ECB and IMF Troika, 2) regional pacts such as the debt brake, 3) regional monetary authorities such as the ECB through subordination of sovereign debt, and 4) appointed leaders such as technocratic government installed in Italy and Greece.
Look and see, Jesus is opening the seven seals, and has released the rider on the white horse, having a bow but without any arrows, Revelation 6:1-2, to effect economic and political coup d etas, to introduce the ten toed kingdom of regional global governance as called for in bible prophecy of Daniel 2:31-33, and as to introduce the Beast Regime of Neoauthoritarianism in all of mankind’s seven institutions and ten world regions as related by John the Revelator in his dream of Revelation 13:1-4.
Out of Financial Armageddon, the fiat money system, and credit, will utterly fail, and in its place regionalization will emerge to replace capitalism, this being the 1974 Clarion Call of the Club of Rome. The diktat money system will provide diktat for both money and credit, as a Fiscal Union forms in the EU where Budget commissioners rule in debt servitude and austerity. And as a Monetary Union forms where Monetary Cardinals, working under the Monetary Pope Mario Draghi, that is stakeholders from industry, banking and government, manage the economy, direct trade, and oversee natural resources and production.  Even now the dynamos of regional security, stability, and sustainability are starting up as leaders meet to discuss the future of the ESM and EFSF. The global export trade paradigm is going to be replaced by a regional trade paradigm where the Euro will survive as a regional group and where in Asia, the Shanghai Cooperative will be the basis for regional exchange of currencies such as the Australian Dollar for the Chinese Yuan as well as the basis for trade in raw materials and finished goods.  
The way of the future, particularly in the Euro zone, is statism and totalitarian collectivism. The path of Jeremy Bentham for social justice, resulted in European Socialism, and the most extreme form of liberality in Greece with what The Economist Magazine relates is patronage and pork abounding, is now becoming the FA Hayek Road To Tyranny.

3) … Experience Produces The Person

Continuing on with thoughts from 2 Peter 1:1-10, Fiat experiences produces the Fiat person, whereas virtuous experience when manifested in the elect, produces the Divine person. The former has experience in death, the latter has experience in life.
There are two realms: the fiat realm and the virtuous realm. The fiat realm comes from man, while the virtuous real comes from the Divine.
Fiat experience can be morally neutral, or morally damaging, or morally beneficial, to oneself or others.
One’s social membership places one under fiat rule, unless the Divine rule supersedes, which presents responsibility: these rules will be morally neutral, damaging, or beneficial in one’s life. For example fiat community rule requires a seat belt and fitness club membership requires one follow rules such as 30 minutes on the exercise machines if others are waiting. Joining the pot dispensary club is not like joining Sam’s Club as it pus one at risk for moral damage.
There is either faith in fiat rule or faith in virtuous rule. The two are mutually exclusive. Many reference human laws for social experience. For example some reference criminal law and do not steal. Others reference a family law. For example, some have a nanny who prepares and serves food at 6:00 PM; and others have a mother who asks a son to prepare a meal three nights a week. When one places faith in fiat rule, one becomes a Fiat person.
On the other hand, when one of like precious faith of Jesus Christ, places faith in virtuous principles, that one becomes a Divine person.  So how does one place faith in virtuous rule. One places faith in virtuous rule through the addition process of adding to faith virtue, and to virtue, knowledge, and to knowledge, self moderation, and to self moderation, perseverance, and to perseverance, godliness, and to godliness, brotherly kindness, and to brotherly kindness, love.
Fiat is good if one uses it lawful. Knowing this the law, that is fiat anything, is not made for a righteous person, but for the lawless and subordinate, for the ungodly, for sinners, for the unholy and profane, for murderers of fathers, and murders of mothers, for man slayers, for fornicators for kidnappers, for liars, for perjurers, and anything outside of sound doctrine. It is sound doctrine that calls for virtuous living. 1 Timothy 1:8-11. In the community where I live, Preacher Mike, not his real name, frequents the soup kitchens where I have a meal. He continually wants himself and others to have identity and experience out of the Old Testament. Those laws were for the Jew, not Spiritual Israel. He continually wants to reference the nation of Israel, its prophets and priests, and its lawful experience. I avoid him because he refuses to live in virtue, that is a set of moral excellencies; he has no conscience, that is knowledge of the Present Truth, and thus cannot experience the Divine Nature and come to know the exceedingly great and precious promises of God. 

4) … There is a church that has honored God, is honoring God, and will honor God.

There was a small flock, who honored God in the first century. It was the Church at Philadelphia for it kept the Word and honored the Name of the Lord, Revelation 3:8.
There be “called out ones” today, a tiny flock, in these last days, that is the church of Brotherly Love, which maintains and preserves and has experience out of The Logos, and the holds dear the Presence and Authority of the Lord, Revelation 3:8.  It is this church amongst all the so called churches, that honors the lord, and has experience in the Divine nature; it is the Spiritual Israel of God, that is the Prince of God; and inherits His exceedingly great and precious promises. The elect seek divine moments to manifest in virtue, God’s Moral Excellencies, so as to participate in the Divine Realm and participate in the Divine Nature.

One of like precious faith prays for a good conscience, and examine oneself to see if one be of faith. That is one examines his motives, and examines his speech and actions to see if  they are morally beneficial to himself and to others.  And prays for the Blood, to cleanse impurities, and to wash away sin, and to make one’s person whole, removing blemishes, restoring dents and dings, and smooting rough spots. And one then feasts upon the Body of Christ, for spiritual food to go forward in life with Christ, and not carry out the desires of the flesh.

Jesus through the eternal Spirit offered Himself to God  to purify our conscience through purging all dead works so we serve the living God, in newnss of life, Hebrews 9:14.

In the Divine moment, as one partakes of the Divine nature, one is immersed into and lost in the Divine, where there is a union with the essence of God. In the Divine Moment, one comes to know and experience, “Christ in you, the hope of glory”, Colossians 1:27.  As Daniel Whittle’s, 1840-1901, hymn states in the stanza: As lives the flower within the seed, As in the cone the tree, So, praise the God of truth and grace, His Spirit liveth in me.  And in the chorus states:  Christ liveth in me, Christ liveth in me; Oh, what a salvation this, That Christ liveth in me!

One of the exceedingly great promises is that For now we see through a glass, darkly; but then face to face: now I know in part; but then shall I know even as also I am known, 1 Corinthians 13:12, KJV.

Dr. Michael Brown writes on the Genuine Honor of God so as to experience His Divine Nature  

5) … In today’s news

Open Europe reports To avoid being expelled from the EU border-free Schengen area, Greece is accelerating the construction of prison-style asylum centres, Euractiv reports. Greek authorities have defended the plans, citing similar facilities in France and Spain. EurActiv Guardian

World Stocks, Commodities, And Currencies Trade Lower With Mining And Steel Stocks Leading BRICS And Their Banks Lower

March 28, 2012

World Stocks, Commodities, And Currencies Trade Lower With Mining And Steel Stocks Leading BRICS And Their Banks Lower

Financial Market Report for March 28, 2012

1) … Copper Miners, COPX, Coal Producers, KOL, Steel Manufacturers, SLX, led BRICS, EEB, and Emerging Markets, EEM, lower on China And European data, which indicates a downturn in global trade and export worldwide.  Wildcatters, WCAT, led Energy shares lower, suggesting the failure of  US Federal Reserve monetary policy stimulus.
Investors deleveraged out of Copper, JJC, which led Commodities, DBC, lower on fears of recession and credit exhaustion. Oil, USO, trade lower as Bespoke Investment Group reports Crude Oil Inventories Shoot Higher
Both Industrials, IYJ, and Transports, IYJ, traded lower.
The failure of fiat wealth has commenced with a failure of neo liberal finance.
Small Cap Value Shares, RZV, traded lower as competitive currency devaluation picked up steam with the Euro, FXE, falling the most in three weeks on LTRO exhaustion. The chart of small cap value shares, RZV, shows a trade lower from a double top, communicating the end of a risk trade stemming neo liberal finance.  And the chart of large caps, JKE, shows a hanging man candlestick suggesting an end to a safe haven trade away from exposure to European Sovereign debt, as well as an end to the global growth trade and debt trade.   
The WSJ report Yen Slides As Bank Of Japan Policy Speculation Hits Fever Pitch.
The failure of fiat money has commenced; the Japanese Yen, FXY, the Brazilian Real, BZF, and the Australian Dollar, FXA, are now in a well defined downtrend.
World Government Bonds, BWX, traded lower on falling world currencies, DBV

2) … The Banker Regime, which came by the Milton Friedman Free To Choose Script of floating currencies, is fading.  The Beast Regime of Neoauthoritarianism is rising out of the PIIGS, that is the Eurozone peripheral nations.  
The National Bank of Greece, NBG, led Greece, GREK, and Santander Bank, STD, led Spain, EWP, and banking and country shares, lower world wide today. The Telegraph reports Spain Slumps Back Into Recession. This behemoth has mandate from the  1974 Club of Rome Clarion Call for regional global governance.
The BRICS, were led lower by Russia, RSX, India Earnings, EPI, India, INP, Brazil Banks, BRAF, Brazil, EWZ, and China, CAF, YAO.  Argentina Banks, BMA, BBVA, BFR, GGAL, led Argentina, ARGT, lower. Carry trade investment in Brazil Small Caps is unwinding as evidenced by the strong fall lower in Grafica, GFA.
Emerging  Market Infrastructure Stocks, EMIF, CHXX, INXX, and US Infrastructure Stocks, PKB, led World Stocks, VT, lower.
Emerging Market Mining, EMMT, and European Financials, EUFN, led World Financials, IXG, lower.
Small Cap Value leader, Synnex, SNX, snapped 13% lower signaling an end to carry trade investing in US Stocks, VTI.
Global Materials, MXI, traded lower, led by BTU, SLT, ACH, SCCO, CLF, AA, CF, POT, and RIO.
International commodity trading  firm Archer Daniel Midland, ADM, traded lower, turning Global Agriculture lower.
Debt laden International Paper, IP, traded lower, turning Paper Producers, WOOD, lower.
Carmart, CRMT, traded lower, turning Auto Dealerships lower.
Roper, ROP, traded lower, turning Scientific Instruments lower.
Manitowoc, MTW, and JOY, IR, TEX, all traded lower, turning Construction and Mining Equipment lower.
Fluor, FLR, traded lower, turning US Infrastructure lower.
Shufflemaster, SHFL, traded lower, turning  Gaming and Casino Stocks, that is Vice Stocks, lower.
Global Payment Networks, GPN, traded lower, turning Small Cap Revenue Stocks lower.
Semiconductor Equipment Manufacturer, Applied Materials, AMAT, traded lower, turning Semiconductors lower.
Caterpillar, CAT, and Cummins, CMI, traded lower, turning Industrials lower.
Dow, DOW, traded lower, turning Chemical Manufacturers lower.
Eaton, ETN, traded lower, turning Electrical Equipment Manufacturers lower.
Jabil Circuits, JBL, trade lower, turning Printed Circuit Board Manufacturers lower.
Nucor, NUE, traded lower, turning Steel lower.
Morgan Stanley, MS, traded lower, turning Financials lower.
Deere, DE, traded lower, turning Agricultural Equipment Manufacturers lower.
Amazon, AMZN, traded lower, turning Internet Retailers lower.
Exxon Mobil, XOM, traded lower, turning Energy Producers lower.  
LG Electronics, LPL, traded lower, turning Electronics lower.
Abercrombie and Fitch, ANF, traded lower, turning Retailers lower
Anixter, AXE, traded lower, turning Small Cap Industrials lower
TRW Inc, TRW,  traded lower, turning Automobile Part Manufacturers lower.  
FEIC traded lower, turning Nanotechnology, PXN, lower.
American Railcar, ARII, traded lower, turning Transportation lower.
British American Tobacco, BTI, traded lower, turning Tobacco lower.
Nike, NKE, traded lower, turning Consumer Discretionary lower.
Apollo, APOL, traded lower, turning Education lower.
Netsuite, N, traded lower, turning Cloud Computing lower.
Imperial Oil, IMO, traded lower, turning Refiners lower.
United Technology, UTX, traded lower, turning Conglomerates lower.
Honeywell, HON, traded lower, turning  Aerospace lower.
The chart of 200% Bear Market Brazil ETF, BZQ, shows a 4% gain, as it led Bear Market ETFs, SMN, EEV, FXP, DUG, SSG, and TWM, higher, as is seen in this Finviz Screener higher.

3) … The fiat of capitalism is being replaced by the fiat of mandate .
The fiat of capitalism which came when the US went off the gold standard in 1971, is failing to provide economic and political governance, as the dynamos of growth and profit are running down. Capitalism’s banner of choice, ie democracy and the free market money system, are failing. Capitalists are a dying breed.
The fiat of mandate, which comes as the world major currencies, DBV, and emerging market currencies, CEW,  trade lower in value, is rising.  The Euro, FXE, traded lower on LTRO exhaustion, and on a popular revolt of austerity measures, and as the spread between bonds and CDS compressed, on renewed confidence of CDS triggering. Eurosis, that is a fear of sovereign debt collapse, not LTRO Euphoria, now governs the FX currency markets.  
Mandate, such as technocratic government, the Euro zone debt brake, austerity measures, the ESM and ESFS subordination of debt, the ECB subordination of debt, the second Greek Bailout, are de rigueur. Mandate is rising to provide economic and political governance, as the dynamos of regional security, stability, and sustainability, are powering up regional global governance. Clearly and decisively, fate, Revelation 2:26-27, and Revelation 6:1-2, is passing  the baton of sovereignty from nation states, to sovereign bodies such as the EU ECB and and IMF Troika.  Mandate, and the diktat money system, where diktat serves as both money and credit, is rising to govern mankind’s economic and political activity. Authoritarians are rising in power.
There is no human action, rather all things are of God, 2 Corinthians 5:17-18, and He is causing the Beast Regime of Neoauthoritarianism to rise up out of the profligate Mediterranean Sea nations of Greece, GREK, and Italy, EWI.  This monster of statism and totalitarian collectivism will occupy in all of mankind’s seven institutions, and in the world’s ten regions.  This behemoth is the ten toed kingdom of regional global governance, that will emerge out of failure of the iron rule of EU UK and US global hegemony, that has governed since the late 1700s. as foretold in bible prophecy of Daniel 2:31-33. Imperialists are soon to be a dying  breed and regionalists who implement regionalization will be rising in power; these include Eurocrats such as Olli Rehn.

The fall lower in semiconductor equipment manufacturer Applied Materials, AMAT, is most significant as it marks the end of the last phase of capitalism, that is the silicon age. A New Europe is rising through comments by leaders such as Angela Merkel, Wolfgang Schauble and Jenz Weidmann; these are introducing the age of diktat and regional global governance.  
Soon out of financial armageddon, Revelation 13:3-4, mandate will rise to be sovereign, and leaders in the EU will meet in summits, waive national sovereignty, and pool sovereignty. The curtains will rise on a new act on EU’s stage, where one of seemingly Little Authority, will arise to be Europe’s Sovereign, Revelation 13:5-10, possibly Herman van Rompuy, as well as Europe’s Seignior, Revelation 13;11-18, possibly Mairo Draghi. Their diktat will be fiat for all. Together with budget commissioners working in a Fiscal Union, and monetary cardinals, working in a Monetary Union, with the ECB, empowered as a Bank, their word, will, and way, will replace all constitutional law and national law. These will change the times and the law. And the people will be amazed, and give their allegiance to these, as foretold by John the Revelator, as he wrote of a dream given to him by angels, Revelation 13:3-4.   

4) … Tyler Durden writes on the true purpose of the EFSF and ESM, that being subordination of debt, and the creation of illusion of debt sustainability with the suggestion by Goldman Sachs Redemption Fund relating Seniority constraints (as with Greece, the EFSF/ESM will hugely subordinate existing bondholders should action be required, exacerbating rather than mitigating the crisis), and Governance limitations (the existing infrastructure cannot act pre-emptively and so timing – and admission of crisis – could become a limiting factor), it is unlikely that a more sustained realignment of rate differentials (with their macro underpinnings) can occur (especially at the longer-end of the curve). The re-appearance of the Redemption Fund idea (akin to Euro-bonds but without the paperwork) is likely the next step in countering reality.
Bloomberg reports ECB’s Weidmann Says Rescue Fund Expansion Won’t Solve Crisis. European Central Bank Governing Council member Jens Weidmann said boosting Europe’s rescue funds will not solve its debt crisis, days before finance ministers meet to discuss expanding the limit on bailout lending. “Just like the ‘Tower of Babel,’ the ‘Wall of Money’ will never reach heaven,” Weidmann said in a speech at Chatham House in London today. “If we continue to make it higher and higher, we will, in fact, run into more worldly constraints,” which might include setting “incentives that lead to new problems in the future.”

5) … Europe’s austerity push breaks the model of European Socialism providing social justice.
The father of social justice was Jeremy Bentham. His utilitarian fiat of expanding monetary policy and utilitarian ethic of happiness for the greatest number of people, is history.  It is being replaced by new fiat, the mandate of diktat, where austerity and debt servitude rule, this being seen in the
Bloomberg report Europe’s Austerity Push Breaks Mother’s  Promise of Social Model.

6) … The Apostle Peter relates the alternative of fiat, is elect, and the like precious faith of Jesus Christ, as he writes in 2Peter 1:1-10. It is these who pray for a good conscience, Psalm 51:10, and practice the additive process of virtue and love, so as to participate in the Divine Nature, and receive the exceedingly great and precious promises of God.
As for me, I am retired, and blog on sovereignty and seignirorage; and have nothing derogatory to say about anyone.  I increasingly pray for a good conscience, so I can discern what is right from wrong. And I reflect on virtue, meaning a set of moral excellencies, by reading the book Twenty Teachable Virtues, and by meditating on the cocoon stage of morality, that being virtue, knowledge, self moderation, perseverance, and then practice the butterfly stage of being a moral person, as I be godliness, brotherly kindness, and love, all by the Lord’s grace and truth, John 1:17.
An inquiring mind asks, if one reflects on principles known to be morally beneficial to others, will not the moral person develop?  
Like in the Morpheous Proposal, the fiat, those of the blue pill, participate in whatever their mandate dictates. However, those of the red pill, the elect by providence, participate in the divine nature, so to as receive His wonderful promises. The choice to fiat or to be elect, was made by God in eternity past, as will died in the garden of Eden. There are no sovereigns save God alone. This is known as the doctrine of the election of grace, and was trumpted by John Calvin, and is explained quite thoroughly in the John McArthur Study Bible.
One of my neighbors has a barking dog, it’s his dog to bark. Another beats his dog, it’s his dog to destroy. Another has a cat that poops on my front porch, its his to let poop. Another has trashed out cars parked in front of his place, they are his to display. Another prowls the neighborhood, being the social sheriff, continually giving me dreadful looks, he is the Lord’s poneros. I simply let them all be, as they exist in one fiat or another. I give my neighbors peace as I am not a busybody in another person’s affairs.

7) … In today’s news
EuropoliticsInfo reports Van Rompuy Says Eurozone Crisis Has Reached “Turning Point”.  Herman van Rompuy said that he was confident that an agreement among all member states regarding the extension of the European Financial Stability Facility, EFSF.

Guelda Volen of TRD relates Bloomberg Extends Rent Control For Three More Years.  Rent control and rent stabilization programs have been in place in New York City since 1969, and restrict either the price of a rented apartment or limit the increases in rent.

Open Europe relates Richard Sulik Says Helping The Greek State Was A Waste Of Taxpayers’ Money.  Open Europe hosted a debate in London entitled, “Are the Eurozone Bailouts Fair?”. The event was covered by CNBC and the BBC. Richard Sulik, Chairman of the Slovak Freedom and Solidarity Party (SaS), which opposed Slovakia’s participation in the bailouts argued that it was unfair for states such as Slovakia to have to bail out richer states such as Greece and pointed out that “the average pension in Slovakia was around €400 per month, three times lower than in Greece.” Slovakia had taken steps to restructure its economy while Greece continued to live beyond its means with 25% of the workforce employed in the public sector. As a result Sulik argued it would be far better for both sides if Greece left the euro. He said, “Helping the Greek state was a waste of taxpayers’ money” and would turn the eurozone into a “de facto transfer union”.

The Telegraph reports Spain To Slash Spending As Economy Slumps Back Into Recession.   Spain’s fragile economy has fallen back into recession and the country faces a year of grinding economic decline as premier Mariano Rajoy slashes spending yet further to meet EU demands.

Zero Hedge relates Bill Gross: The Game As We All Have Known It Appears To Be Over

Financial Times Economist Calls For A Eurozone Fiscal Union

March 27, 2012

Financial Market report for March 27, 2012

Greece, GREK, and Spain, EWP, led European Shares, VGK, lower today. Euro Intelligence provides the best of analysis; it comes via a subscription; I recommend that one purchase their daily newsletter which features the commentary of Stephen King who is HSBC Group’s chief economist and the bank’s global head of economics and asset allocation research. He is a member of the Financial Times Economists, and in the Financial Times he writes Growing Financial Crisis Calls For A Eurozone Fiscal Union The situation of Spain compares to that of Greece, where in the autumn of 2010, the IMF projected a fall in growth of 2.6%, whereas the economy really fell by 7%. When economies collapse, deficit reduction becomes impossible. He questions whether the rise in yields has really been due to the failure by the government to accept the Commission’s targets, or whether the creditor countries are simply running out of patience. In the old days, weak growth was synonymous with low interest rates. Now the opposite is the case. Austerity delivers weak growth, and higher interest rates. He concludes that the only way to solve this problem is a fiscal union.

The EU is currently a currency union, and has recently become a monetary union via the regionalization of banks via subordination of debt to the ECB and via the ECB’s LTRO 1 & 2 money printing operations. A fiscal union, with budget commissioners who effect technocratic government, and a full monetary union with monetary cardinals will provide credit and economic direction under the monetary pope Mario Draghi. He said today Governments Must Continue to Take Decisive Measures.  This is the ordained plan of the Sovereign Lord God, Psalm 2:4-5. Look and see, Jesus has opened the first of the seven seals, and is sent the First Horseman of the Apocalypse, riding on a white horse, with a bow and no arrows to effect a bloodless global economic and political coup, Revelation 6:1-2. He is passing the baton of sovereignty from sovereign nations states to the EU ECB and IMF Troika. Eventually a New Charlemagne will arise to be sovereign in the EU, where he rules with a seignior, as Germany rises to be preeminent in a revived Roman Empire. This Euro zone super state will be one of ten regions of global governance as foretold in bible prophecy of Daniel 2:31-33 and Revelation 13:1-4.       

Open Europe reports Germany settles on minimal combination of EFSF and ESM bailout funds; SPD accuse Merkel of leaving German public in the dark over real risk from eurozone bailouts.
The German government yesterday publicly confirmed its intention to run the ESM and the EFSF, the permanent and temporary eurozone bailout funds respectively, in parallel. German and European officials suggest that Germany now favours the minimum integration of the two funds whereby the €200bn already dispersed by the EFSF will be rolled into the ESM, increasing its size to €700bn, according to the WSJ. However, the effective lending capacity will remain at €500bn. The Commission has stated that it does not believe this will be enough to convince the IMF to increase its own resources.  
The SPD’s budgetary policy spokesman Carsten Schneider criticised the decision to combine the funds, saying, “The negotiating strategy of the Chancellor is a disaster, leaving the public in the dark about the true risks of the liability.” FTD notes that following the move, the total risk to Germany would amount to over €400bn by mid-2013.  
Meanwhile, talks between the German government and the opposition SPD and Green parties on the ratification of the ‘fiscal treaty’ on eurozone governance will get underway today, as the opposition have demanded a number of concessions in return for their support including the introduction of a financial transactions tax.  

And Open Europe reports  Bild columnist Jan Schäfer argues that Chancellor Merkel explicitly wants her junior coalition partner, the liberal FDP, to stay under the 5% threshold at the next federal elections so as to prevent a potential ‘traffic lights’ coalition between the SPD, Greens and the FDP.

The Italian prime minister threatens to resign if the parliament does not approve his reform programme as Open Europe reports Monti suggests he may leave before 2013 as new poll shows fall in public support for labour market reform; European Commission to send new monitoring mission to Spain. Italian Prime Minister Mario Monti has suggested that his government may dissolve itself before 2013 if faced with excessive resistance to its plans to reform the labour market and reduce the cost of dismissals, saying that “if the country, through its political and social forces, does not feel ready to cope with what, according to us, is a good work, we will certainly not ask to stay until a given date.” Meanwhile, a new ISPO poll published by Il Corriere della Sera shows that support for Monti’s government has shrunk from as high as 60% to 44% in less than one month – in large part due to the proposed labour market reforms.  
Separately, following his party’s failure to win an absolute majority in the Andalusian elections, Spanish Prime Minister Mariano Rajoy has said that his government’s plans for reform remain unchanged. The Spanish government is due to unveil a new austerity package on Friday, the day after a general strike. Expansión reports that the European Commission will send another monitoring mission to Spain by mid-April, only one month after the previous one.

Bloomberg reports US World Bank Nominee Under Fire Over Book. Jim Yong Kim, the US nominee to head the World Bank, is coming under fire over a book he co-authored that criticises “neoliberalism” and “corporate-led economic growth”, arguing that in many cases they had made the middle classes and the poor in developing countries worse off. Some economists are arguing that Dying for Growth, jointly edited by Dr Kim and published in 2000, puts too great a focus on health policy over broader economic growth. “Dr Kim would be the first World Bank president ever who seems to be anti-growth,” said William Easterly, professor of economics at New York University. “Even the severest of World Bank critics like me think that economic growth is what we want.”

I comment that the quest for growth and profit will change to be a quest for regional security, stability and sustainability. For the last forty years, the world has known neo liberal credit, which came via the Milton Friedman Free To Choose Script of floating currencies, where the US Dollar was the global reserve currency; and as a result capitalism thrived, which was experienced as a free market economy in the United States and socialism in Europe; with the standard of living of Republicans and European Socialists rising dramatically and the economic wannabes such as Libertarians salivating and whimpering.

But the global tectonic economic and political plates have shifted as fears of sovereign default, and fears of diminished global growth have arisen. The bond vigilantes a have called sovereign interest rates higher, as is seen in the Flattner ETF, FLAT, falling and the Steepner ETF, STPP, rising. And the currency traders are selling world currencies, DBV, and emerging market currencies, CEW, with the result that the US Dollar, $USD, traded by the 200% ETF, UUP, is rising.
An authoritarian tsunami is on the way. Look and see, a coup d’etat is underway in the EU, Revelation 6:1-2. And Fate, Revelation 2:26-27, is passing the baton of sovereignty from sovereign nation states to the EU ECB and IMF Troika, with the result that the global governance of EU UK and US hegemony is ending, and a ten toed kingdom of regional global governance is forming, with the first toe being the Euro zone.
Export dependence has been a major characteristic of the Milton Friedman Free To Choose floating currency regime since its introduction in 1991, when the US went off the gold standard. For forty years, there has been an intensification of global integration through trade.
A global trade bubble has formed because the US Dollar has been the defacto reserve currency, and because a debt trade has recycled dollars into US Treasuries, ZROZ, EDV, TLT, with the result that a global government finance bubble has formed, as is seen in the ETFs, BWX, and EMB, growing over the years.
China, YAO, CAF, FXI, became an export superstar. India, INP, and South Korea, EWY, rose to be export giants; the former because of low wages and the latter because of ingenuity. Brazil, EWZ, saw exports grow. Australia grew as a major exporter of commodities. Sweden became a major exporter to the EU. Russia, RSX, became a major exporter of oil and natural gas. Mexico, EWW, was a strong exporter. Hot money flowed in Brazil Banks, BRAF, and India Banks, EPI.
As inflationism has turned to deflationism, The Bullwhip Effect, cited by Business Insider of Lakshman Achuthan of ECRI, writing in the Yo Yo Years, is at hand. Yoyo risk is at its maximum. Through trade synchronization, there is coming a strong unwinding of global trade, with asset price deflation, competitive currency devaluation, deleveraging out of commodities, and debt deflation in bonds.
Because of the yo yo effect, what was global trade will become regional trade, featuring regional bartering and currency exchanges.
Regionalization is the new direction of globalism. Regional blocs will form based upon regional framework agreements where leaders meet in summits, waive sovereignty, and pool sovereignty to establish regional global governance.
The dynamos of growth and profit that powered capitalism are winding down; and the dynamos of regional security, stability and sustainability are powering up regional global governance.

Peter Tchir of TF Market Advisors, writes of the securitization of Italian Sovereign Debt, Kicking The Can Not Too Far. Italy has issued €157 billion of debt between November of last year and the end of last week.  This is direct Italian government issuance and doesn’t include any of the debt the government has guaranteed in the meantime, which seems to be at least €70 billion more, but hey, who counts guaranteed debt. Of the €157 billion that has been issued, about €122 billion matures within the lifetime of LTRO.  So over 77.5% of Italian new debt is 3 years and in.  In fact, at least 56% was issued with maturities of less than a year.  So in spite of LTRO, in spite of a big rally in Italian yields, in spite of having a technocrat in charge of the country, they continue to issue well over half their debt so that it will mature within a year from now.  That means they will be continuously rolling over debt.  The prudent country would be trying to extend maturity, not shrink it. The market celebrates each “successful” auction, but we should be focusing on what they are actually issuing.  If Germany is serious about a firewall, they or the ECB, should be encouraging countries to pay up and borrow longer

Tyler Durden writes of The Coming Collapse In Fiat Asset Prices The sad truth is, we have seen this play out again and again and as the printing-press-pressure drives up asset prices (providing confirmation bias upon anchoring bias for any and every economist or long-only manager quoting the ‘recovery’ or decoupling), the truth is that as prices (and expectations) distend from value and actual reality, the central bank’s efforts to ‘maintain’ the status quo simply create a larger and larger vacuum for asset prices to fall through when sad reality is finally peeked.

The chart of Deutsche Bank, DB, manifested bearish engulfing today. Washington Post reports Deutsche Bank No 1 in Europe as Leverage Hits Market Valuation. Deutsche Bank AG, adding assets as other lenders trim their balance sheets, leapfrogged France’s BNP Paribas SA to reclaim the title of Europe’s largest bank. Assets at the Frankfurt-based company rose 14 percent to 2.16 trillion euros ($2.88 trillion) in 2011, making it the largest publicly traded bank in Europe for the first time in five years, according to data compiled by Bloomberg. Chief Executive Officer Josef Ackermann, who has called proposals to limit bank size “misguided,” will leave behind a balance sheet about 40 percent larger than in 2006, and more than 80 percent as big as Germany’s economy, when he steps down in May. The firm is the second-most leveraged and third-least capitalized of Europe’s 10 largest banks, even after Ackermann boosted reserves and trimmed dependence on borrowed money. “Deutsche Bank has been pretty decidedly opposed to reducing its balance sheet,” said Lutz Roehmeyer, who helps manage about $15 billion at Landesbank Berlin Investment. “It’s understandable: The higher your leverage, the higher the returns when times are good. They want to cut as little as possible to keep doing as much business as possi

Energy shares seen in this Finviz Screener, PSCE, XLE, IEZ, ENY, WCAT, XOP, IEO, XES, traded lower today, with US Energy Service IEZ, leading the way down. Global energy service shares are also strong fallers; investors are taking taking profit and short selling energy development stocks such as SLB.  

It will be the small cap value shares, RZV, such as those seen in this Finviz Screener, which will the fast fallers, once the global bear market commences. Other fast fallers include Copper Miners, COPX, and the others seen in this Finviz Screener.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, seen in this Screener, traded lower with the Russian Ruble, FXRU, and the Australian Dollar, FXA, leading the way down; these enjoining Sweden, EWD, Russian, RSX, and Australia, EWA, lower, which led World Stocks, VT, lower. Argentina, ARGT, traded strongly lower.

Greece, GREK, Spain, EWP, and Argentina, ARGT, China Industrials, CHII,  India, INP, and Brazil, EWZ, are stock market black holes that are opening up to suck up all fiat investment wealth. This was foretold by John the Revelator who foretold those things which must shortly come to pass, Revelation 1:1, which means that when they start to occur, they will proceed like lined up dominoes falling one upon another. In the dream given to him by angels, he relates in Revelation 13:1-4, that the Beast Regime of Neoauthoritarianism is rising up out of the Mediterranean nations of Greece, GREK, and Italy, EWI, to destroy the Banker Regime of Capitalism.  This monster of state corporatism and totalitarian collectivism is the same as the ten toed kingdom of regional global governance as seen and announced by the prophet Daniel as he wrote in Daniel 2:31-33.   

Eurosis, that is the failure of the PIIGS debt sovereignty, and the failure of the world central banks’ monetary policy to stimulate growth, is causing derisking out of stocks outside of the US, ACWX, a steepening of yield curves, STPP, the failure of credit, BND, a deleveraging out of commodities, DBC, particularly base metals, DBB, and the failure of fiat money via competitive currency deflation, DBV, CEW,  The only money good is possession of gold bullion.  

The fiat money system is dying and the diktat money system is developing, as Stephen King,  HSBC Group’s chief economist and the bank’s global head of economics and asset allocation research wrote today in Financial Times.

A number of stock Bear Market ETFs seen in this Finviz Screener, traded slightly up today; these included the Energy Shares, DUG, and the Emerging Markets, EEV.

Gold And Stocks Rise As Bernanke Says Continued Stimulus Needed

March 26, 2012

1) … Gold and stocks rose as Bernanke said continued stimulus needed.
Ben Bernanke’s statement that continued stimulus is needed ralled Gold, GLD,  US Stocks, VTI, and World Stocks, VT, as well as Major Currencies, DBV, and Emerging Market Currencies, CEW, and Commodities, DBC.  The Swedish Krona, FXS, led most currencies higher, causing the US Dollar, $USD, UUP to trade lower.

Retail, XRT, Pharmaceuticals, XPR, IHE, Consumer Services, IYC, Smallcap Consumer Discretionary, PSCD, Cloud Computing, SKYY, Small Cap Value, RZV, Gaming, BJK, Health Care Providers, IHF, Smallcap Technology, PSCT, and Financials, XLF, rose on end of month window dressing.  

Retail, XRT, shares rising FL, SHOO, ROST, LTD, ARO, ORLY, HIBB, HD, LOW, PIR, JWN.

Gaming, BJK, shares rising included, BUD, SHFL, LVS.

Tobacco Shares rising included those seen in this Finviz Screener, MO, PM, LO, RAI, CIGX, VGR.
Small Cap Value shares, RZV,  rising included GCA, TSCO, ACAT, TBHI, SNX, MNST, GPN, ADM, FLT, POOL, RCII, PII, BID, BC, ACAT, TBI, HOG, AEA.

Financial shares rising included Credit Providers, MA, V, COF, and ASP rose,  Regions Financial, RF, and Morgan Stanley, MS.

Country shares rising included, Mexico, EWW, South Africa, EZA, and Sweden, EWD.

Cloud Computing, SKYY, shares rising included INAP, AKAM, NTGR, N, FFIV, RHT, PCLN, AMZN, RSYS.

Gold mining shares, GDX, rose on a rising  price of gold, GLD.

Various news reports communicate that Institutional Investors and Hedge Funds have gone all in; this is a bearish signal.

It was a good day for short sellers to add to positions in those sectors that will be the fastest fallers seen in this Finviz Screener, EUFN,PFF,RZV, PKB, COPX, ITB, EWX, PSP, GREK, XBI, XSD, PSCI, EWD.

And it was a good day to add to positions in Bear Market ETFs, seen in this Finviz Screener. SKF, EEV, TWM, DUG, SMN, FXP, BZQ.

2) … In today’s monetary policy news
Agence France Merkel Says Catatrophic To Let Greece Leave The Eurozone.
Reuters Italy PM Monti Says The Higher The Firewall The Better.
Bloomberg Hirano Says Bank of  Japan Crosses Rubicon With Desperate Monetary Policy.

3) … What is right and what is wrong?
That which is right, is that which is morally beneficial to one’s self or another; in other words, that which upholds virtue is right.

That which is wrong, is that which is morally detrimental to one’s self or another; in other words,  that which denigrates virtue is wrong.

The Apostle Peter wrote in 2 Peter 1:1-10, that the elect live in the like precious faith of Jesus Christ. The implication is that others live in fiat, that is, the “so be it” of mandate.  Those  who live in the former are guided by a good conscience, Psalm 51:10, which comes by petitioning God, and by virtue, that is a set of moral excellencies, such as respect for others and fairness. Those who live in the latter, live by the decree of their belief system, or as in the case of those living in Greece, the client status of the EU ECB and IMF Troika.  

The moral cocoon develops by adding to faith, virtue, knowledge, self moderation and perseverance. The moral butterfly emerges, by adding godliness, brotherly kindness and love.

The elect participate in the divine nature, and experience the great and precious promises of God; whereas the fiat become whatever their mandate dictates, i.e. a utilitarian, or a bio ethicist.

The choice to be elect or to be fiat was made by God in eternity past, as will died in the Garden of Eden, man has never had any choice. There are no sovereigns but God alone. All things exist by and through His sovereign will. He is accountable to no one. His wisdom is unsearchable. He is no respecter of persons; he is fair to all, as has placed all under sin, that is doubt. This concept is known as the doctrine of the election of Grace; one of many sound doctrines known to those of like precious faith.  

Like Jim Davidson relates in the Morpheus Proposal, Neo and those who have taken the Red Pill, perhaps better said, had the Red Pill crammed down their throats, know that fate governs all things, 2 Corinthians 5:17-18.

Utilitarian Ethicists, such as Jeremy Bentham, would question, was it right or wrong that Dick Cheney received a heart transplant on March 24th, 2010.

From Wikipedia, the Jeremy Bentham ethic is that pannomion rule society; that is a utilitarian code of law govern; the fiat (the to be) here is that the greatest happiness of the greatest number is the measure of what is right and what is wrong.

In Principles Of Morals And Legislation,  he wrote that nature has placed mankind under the governance of two sovereign masters, pain and pleasure. It is for them alone to  point  out what we ought to do. They govern us in all we do and say.

Bentham favored monetary expansion. If one receives social justice, ie a transfer payment, then one owes it to Bentham, as he became a major element in the liberal concept of state policy objectives.

So, an inquiring mind asks, Dick Cheney deserve that heart? Does Cheney’s heart transplant reveal a virtue question, or an ethical question?

An inquiring mind asks, who be you? Are you of like precious faith? or are you of fiat ethics? That is, does the faith of Jesus Christ rule your life, or does ethical precept rule your life. If the former, then, according to 2 Peter 1:1-10, you partake of the divine nature, know right from wrong, and are receiving the exceedingly great and precious promises of God. If the latter, then you have your soap box, and an identity, and experience out of ethics.

The question is what heart governs you? Are you governed by a heart of conscience coming from God and virtue, or are you governed by a heart of ethical belief?

The question is one of identity! Are you the elect of God? or are you a bio ethicist or some other fiat creature?

The Collapse Of Portugal Town Hall Governments Will Be A Leading Factor Introducing The Fiat Rule Of Regional Global Governance And The Diktat Monetary System.

March 24, 2012

I …  Financial report for Friday March 23, 2012
Bloomberg reports Portugal Town Halls Face Default Amid $12 Billion Debt. Portugal’s town halls face default amid 9 billion euros ($12 billion) of debt unless the government provides aid soon, said Fernando Ruas, president of the nation’s association of municipalities. “At a company we call it insolvency,” Ruas said in a telephone interview from Lisbon on March 21. “It could happen that some town halls could have to restructure their debt if the government doesn’t intervene.” Ruas blamed a sharp decline in money transfers from the government in Lisbon to municipalities for their growing financial woes. Portugal last year became the third euro-area country to request external aid, following Greece and Ireland. Prime Minister Pedro Passos Coelho is cutting spending and raising taxes to meet the terms of the 78 billion-euro rescue. “A sharp decrease in money transfers has made it harder for many town halls to comply with their ongoing commitments,” said Ruas. His association estimates town halls face about 9 billion euros in liabilities. The southern European country’s 308 town halls and two semi-autonomous regions face similar problems to those of Spain, whose regions have been shut out of capital markets due to the credit squeeze, leaving many bills to suppliers unpaid. Spain’s government is offering credit lines to help regions meet bond redemptions and pay suppliers.

Reuters reports China factories falter, euro zone business wilts.

Tyler Durden writes on Eurosis, and the unsustainability of Eurozone Sovereign Debt, which communicates both banking insolvency and sovereign insolvency. The stress level on Insolvent banks and insolvent nations will increase dramatically by slowed growth. “If ever there were banks that were truly Too-Big-Too-Fail, Europe has them – is it any wonder the Greek Bailout was so focused on rescuing the bank balance sheets. Swiss banks dominate the worst end of the spectrum along with Dutch banks (huge covered bond markets) but the French, Spanish, and Belgian banks are all around two times their nation’s GDP!”

“Perhaps the cleanest measure of ‘stress’ or service-ability for the currency-using sovereigns shows that the amount European sovereigns pay in interest relative to their productive gains as an economy is rising rapidly and forecast to rise even faster. This will obviously get worse as the recession deepens from both rising costs (as post-LTRO rate normalize) and lower GDP (as austerity and balance sheet recession impacts come home to roost).”

“Gross Government Debt to Government Revenue is over 150% on average, rising fast, and at decade highs.”

2) … The mother of all bear markets is underway

The Second Great Depression, that is Great Depression 2, commenced this week with investors derisking out of stocks, VT, which traded 1% lower this week, and investors deleveraging out Commodities, DBC, which traded 1.5% lower this week. The failure of fiat money is seen in Major World Currencies, DBV, decreasing 1.2%, and Emerging Market Currencies, CEW, decreasing 0.8%. The end of the global trade regime is seen Sweden, EWD, deacreasing 3%, the BRICS, EEB, 2%, Steel, SLX, 4%, and Copper Mining, COPX, 3%, as well as Energy, XLE, decreasing 3%, and Enegry Service, XES, 4%.   

Bear Market ETFs rose as follows this week. DUG 6%, SMN, 2%, FXP, 10, BZQ. 5%.

Neoliberal finance, particularly LTRO II financing has boosted US Stocks, VTI, to an all time high; and the S&P, SPY, has double topped, but the BRICS, EEB, are now in all out decline. An Elliott Wave 2 Down has commenced in World Stocks, VT.  

On a monthly basis, the Steepner ETF, STPP, rose 5.4%, as the 10 30 US Sovereign Yield Curve, $TNX:$TYX, steepened this month, evidencing the failure of the world central banks’ monetary policies, and the end of the fiat money system, which is being replaced by a diktat money system.

Fears of decreased global growth have caused disinvestment out of stocks, ACWX, and bonds, BND, especially US Treasuries, ZROZ, EDV and TLT, over the last month, with the China stocks, CHIX, CHXX, CHIM, CHII, leading the way down, with the China Infrastructure stocks falling the most. Fears that the world central banks’ monetary policies have failed to stimulate growth, terminated the age of inflationism and started the age of deflationism.  We now live in the Age of Asset Deflation, which is marked by the failure of both credit and money; competitive currency deflation is underway with world currencies trading lower in value.

2) … What be you? Are you one of like precious faith, or are you one of fiat?
All things be of God, 2 Corinthians 5:17-18.

Either one be of the of the like precious faith, 2 Peter 1:1, or one be one of fiat, which means be it so, as well as mandate, and as well as to be of mandate.

Thus either one be called, that is elect, and be made accepted in the Beloved, or one be of fiat. that is of madate, established so by authoritative decree.

Examples of those of fiat, that is those who be by authoritative decree include the following:
1) … a person with inalienable rights, a citizen of the Unites States of America by decree of national constitution.
2) … a religious person, by declaration of membership in a church.
3) … a resident in a client state of a sovereign region, one of ten, called for by the Club of Rome in 1974;  such as those living in Greece be residents of a client state, living under the sovereign authority of the EU ECB and IMF Troika in technocratic government, and by receiving seigniorage aid.
4) … a political person, a Republican, as these are such, by reference to and participation in social conservative values.
5) … an ethical person, by embracing and announcing and receiving affirmation by others, in  statement, ie a Libertarian statement.
6) … or self appointmented ruler over others, ie a sociopath.

All of these are fiat persons,  which contrasts with the elect, those of like precious faith, who participate in the divine nature, as they add to their faith seven things: virtue, knowledge, self moderation, perseverence, godliness, brotherly kindness, and love, 2 Peter 1:5-7. 

A good conscience is a gift from God that comes in answer to prayer, Psalm 51:10. With practice, one can develop conscience so as to be acceptable to God and approved by others, Romans 14:18. It is through a good conscience, together with the additive process, and one another living, that one becomes a moral person in Christ. As one is accountable to a God given conscience, and keeps, that is maintains, that is has resource in the Word so as not to spoil, or sour, and lives in godliness with others, and has life out of virtues, and participates in the divine nature, that person emerges like a butterfly as a moral person in Christ.    

The conscience is used to be reflective on one’s attitudes, behavior and speech, so as to show oneself to God, a worker who need not be ashamed, 2 Timothy 2:15.  It is in consistent application of the additive process, in keeping Gods word, that is in maintaining and practicing His Word in attitude, speech and action, as well as respecting His presence and authority, Revelation 3:8, that one is able  to maintain good works, as called for in Titus 3:8. 

The Believer receives the Word in faith and love, and attends to it with preparation, thanksiving, parayer, and diligence, laying it up in his heart and practicing it in his life, so as to experience the divine nature and receive the exceeding great and precious promises of God, 2 Peter 1: 5-7.
 
Good character flows from conscience, the additive process, living th one another lifestyle, and maintaining good works. Faith of God.Net provides bible references for character.
 
Having life out of moral identity, one experiences a morally benefical and spiritually furitful life,  2 Peter 1:8.   As one makes his calling and election sure, 2 Peter 1:10, he has wide acceptance into the everlasting Kingdom, 2 Peter 1:11.
 
One can be self deceived as James says in James 1:26, If anyone amoung you thinks he is religious and does not bridle his tongue, he deceives himself and his religion is useless.
 
Those of the divine nature have neither values nor ethics, rather they have moral excellencies, and live assured of exceedingly great and precious promises.

As foretold in bible prophecy of Revelation 13:1-4, and Daniel, 2:31-33, the fiat floating currency regime, with its fiat money and credit is failing and creative destruction is actively creating a regionalization regime, known as the ten toed kingdom of regional global governance, where diktat will serve as both money and credit. The fiat money system is being replaced with the diktat money system. There will no debt relief, only regional totalitarian collectivism, and debt servitude for all.

The dynamos of profit and growth are winding down; and the dynamos of regional security, stability and sustainability are powering up to establish the ten toed kingdom of regional global governance.

Fate is passing the baton of sovereignty from sovereign nation states to regional bodies such as the EU ECB and IMF Troika, giving rise to Neoauthoritarianism. Capitalism is dying and regionalism is rising.

In the age of judgement, the only protection one has from God’s Judgement, is to call upon virtue, and to partake in the Divine Nature, 2 Peter 1:5-7, and receive the exceedingly great and precious promises of God.

In asking what be you? Are you one of like precious faith, or are you fiat? Please consider that the choice was made by God from eternity past. The choice is not that one that an individual makes;  as will died in the Garden of Eden; there are no sovereign individuals there is only a Sovereign Lord God, Psalm 2:4-5; The choice of one’s be, was made by God from eternity past; this concept is known as the doctrine of the election of grace.

The saints are called to keep the Lord’s word and and not deny His name, Revelation 3:8. The word keep means to maintain and to observe and to have resource in; and the word name means presence and authority. Thus one is to observe God’s instruction and to respect his desires, in attitude, conduct and speech.

Sound doctrine reveals that God has made those of faith accepted in the Beloved, Ephesians 1:6. The faithful add seven additives to their faith, and in so doing become partakers of the divine nature and know the exceedingly great and precious promises of God, 2 Peter 1:5-7.

God is sending the poneros, pronounced pawn-ay-os, that is the sociopath as part of his end time judgement upon the earth which began in May of 2010, with the announcement of the first Greek Bailout; this is when he opened the seven seals, Revelation 2:1-2. The word poneros, is defined as bad, evil, or wicked, and carries the meaning of diseased, calamitous, morally culpable, derelict, mischievous and malicious.

The sociopath is a human predator of total cunning and capability. He is presented in scripture in 2 Thes 3:2. These individuals have a seared conscience, which for many comes from birth, and which is useless for discerning morally good or morally bad behavior, 1 Tim 4:2.

They act without regard for the rights and feelings of others. They disregard all social mores, norms, and lawful rule, as they set themselves up to be God. They become fiat rule itself. And being totally self serving, they have a win at all cost attitude. They are reprobate chameleons who have multiple personas to best serve the situation at hand. They can switch between charisma and charm and all out aggression in an instant.  2 Tim 3:1-9.

They are secretive and manipulative. Some are organized while other are impulsive and thus easily agitated. Yet nevertheless, they are busybodies in others affairs, continually seeing just how far they can go. 2 Tim 3:11.

The Bible instructs those of faith and reason to offer no resistance to these individuals and to withdraw and turn away from them 2 Thes 3:6, 1 Tim 6:5, Rom 6:17-18.

This article has been posted on the Internet http://tinyurl.com/7b82vfx

Deleveraging And Derisking Out Of The Fiat Of Neoliberalism Introduces The New Fiat Of Regionalism

March 24, 2012

Financial Market Report for the Week Ending March 23, 2012

For the last forty years, the world has known neo liberal credit, which came via the Milton Friedman Free To Choose Script of floating currencies, where the US Dollar was the global reserve currency; and as a result capitalism thrived, which was experienced as a free market economy in the United States and socialism in Europe; with the standard of living of Republicans and European Socialists rising dramatically and the economic wannabes such as Libertarians salivating and whimpering.

But the global tectonic economic and political plates have shifted as fears of sovereign default, and fears of  diminished global growth have arisen. The bond vigilantes a have called  sovereign interest rates higher, as is seen in the Flattner ETF, FLAT, falling and the Steepner ETF, STPP, rising. And the currency traders are selling world currencies, DBV, and emerging market currencies, CW, with the result that the US Dollar, $USD, traded by the 200% ETF, UUP,  is rising .

An authoritarian tsunami is on the way. Look and see, a coup  d etat is underway in the EU, Revelation 6:1-2.  Fate,  Revelation 2:26-27, is passing the baton of sovereignty from sovereign nation states to the EU ECB and IMF Troika, with the result that the global governance of EU UK and US hegemony is ending, and a ten toed kingdom of regional global governance is forming, with  the first toe being the Euro zone.

Export dependence has been a major characteristic of the Milton Friedman Free To Choose floating currency regime since its introduction in 1991, when the US went off the gold standard. For forty years, there has been an intensification of global integration through trade.

A global trade bubble has formed because the US Dollar has been the defacto reserve currency, and because a debt trade has recycled dollars into US Treasuries, ZROZ, EDV, TLT, with the result that a global government finance bubble has formed, as is seen in the ETFs, BWX, and EMB, growing over the years.

China, YAO, CAF, FXI,  became an export super star. India, INP, and South Korea, EWY, rose to be export giants; the former because of low wages and the latter because of ingenuity.  Brazil, EWZ, saw exports grow. Australia grew as a major exporter of commodities. Sweden became a major exporter to the EU. Russia, RSX,  became a major exporter of oil and natural gas. Mexico, EWW,  was a strong exporter. Hot money flowed in Brazil Banks, BRAF, and India Banks, EPI.

As inflationism has turned to deflationism, the bullwhip effect, cited by Lakshmah Achuthan of ECRI, writing in the Yo Yo Years, is at hand. Yoyo risk is at its maximum. Through trade synchronization, there is coming a strong unwinding of global trade, with asset price deflation, competitive currency devaluation, deleveraging out of commodities, and debt deflation in bonds.

Because of the yo yo effect, what was global trade will become regional trade, featuring regional bartering and currency exchanges.

Regionalization is the new direction of globalism. Regional blocs will form based upon regional framework agreements where leaders meet in summits, waive sovereignty, and pool sovereignty to establish regional global governance.

The dynamos of growth and profit that powered capitalism are winding down; and the dynamos of regional security, stability and sustainability are powering up regional global governance.

The ECBs LTRO created a short squeeze in Gold, GLD,  causing a fall in its value, and a rise in Emerging Market Infrastructure, EMIF, CHXX, INXX, BRXX, seen in their rising, giving the bull market in US Infrastructure, PKB, legs.

Loosened neo liberal credit, that is easing central banks’ monetary policies, have reached their maximum benefit. Financialization of debt by Mortgage REITS, REM, such as Annaly Capital Management, NLY, has reached maximum benefit, with Mortgage Backed Bonds, MBB, trading lower. A slowdown in China, CHXX, CHII, CHIM, CHIX, HAO,  and a smackdown of the BRICS, EEB, has commenced.

Deleveraging out of debt laden countries, such as Argentina, ARGT, has commenced. Camila Russo of Bloomberg reports Argentina’s budget deficit is swelling to the widest in at least a decade as government spending surges, eroding confidence in the outlook for economic growth and reducing demand for longer-term bonds.  Argentina posted a 2.7 billion peso ($619 million) deficit in January and February, a record in data going back to 2000, after spending jumped 34% last month from a year earlier while revenue increased 30%.”

Global trade will be replaced to some extend by regional trade; the end of age of the long supply chain is at hand.

Greeks cannot be Germans, yet they will all be one in governance and in debt servitude, as they share a common currency, Target 2 imbalances,  and are overseen by the ECB which has subordinated European Financial institutions, EUFN,  to itself ; the  regionalization of banks in the EU has created the ECB, as the regional monetary authority, and as the backbone for a soon coming Federal Euro zone government.  A Federal Super state has already been born in Europe.

Out of a soon coming Financial Armageddon, Germany will rise as overlord to peripheral client states.

The PIIGS cannot be more like Germany as they are culturally, industrially, and fiscally night and day.  Yet through the creative destruction of Neoliberalism, specifically through regionalization, a EU Super State, will arise and be the forerunner of regional global governance, in all of the ten world regions, as called for by the Club of Rome in 1974.

Regional statism and totalitarian collectivism is God’s fiat, that is God’s be, as foretold in bible prophecy of Revelation 13:1-4 and in Daniel 2:31-33.  It’s polar opposite is the be of like precious faith and the additive process of 2 Peter 1:1-9 . The are only two experiences,  the fiat of regional global governance, or the like precious faith of Jesus Christ and the practice of virtue, whereby one experiences the divine nature, and knows the exceedingly great and precious promises of God.

The soon coming sovereign default of the PIIGS will be most painful to Germany.  Yet, never the less, Germany will emerge as a type of leader in a revived Roman Empire.

Ben Bernanke did not save the world. Soon the most credible of leaders will step onto the world’s stage. This seeming Little Authority, will emerge as a New Charlemagne, to rule Europe. Possibly Herman van Rompuy, will be Europe’s sovereign, Revelation 13:5-10. He will be accompanied by a European Banker, possibly Mario Draghi, Revelation 13:11-18.  People will be amazed by this development and place their trust in their word, will and way. Yes the people will give their allegiance to their rule, Revelation 13:3-4.

The fiat money system is dying, and the diktat money system is rising in its place, where diktat will serve as both money and credit.

A global rebalancing is coming; a new fiat of regional global governance and diktat is coming to replace the old fiat of capitalism and choice. This is God’s so be it, as foretold by the Prophet Daniel in Daniel 2:31-33, and by John the Revelator in Revelation 13:1-18. Yes the Fiat of Choice is history and the fiat of Beast is the future; this monster is of God’s Judgment is rising  up out of the profligate Mediterranean nation state of Greece

BRICS, European Financials, Steel, Fall Lower On Competitive Currency Deflation … Great Depression II Is Underway

March 22, 2012

Financial Market Report for March 22, 2012

The Second Great Depression has commenced with the BRICS, EEB, INDY, RSX, EWZ, FXI, the Emerging Markets, EEM, Mining, and Steel, SLX, in full decline, as competitive currency devaluation picked up speed with the US Dollar, $USD, traded by the 200% ETF UUP, trading up 0.9% so far this Month.

Ireland Bank, IRE, and National Bank of Greece, GREK, led the European Financials, EUFN, World Financials, IXG, Financials, XLF, and Regional Banks, KRE lower. Banking insolvency has returned as an issue of global concern.

Both Transports, IYT, and Industrials, IYJ, traded lower.

The S&P, SPY, traded lower on lower Materials, MXI, and Financials, IXG.

Sectors trading lower included PSCE, WCAT, IEZ, RZV, PKB, PSCI.

Mining Shares trading lower included, CHIM, ALU, URA, REMX, COPX.

Country shares trading lower included INXX, SCIF, EPI, INP, EWZ, EPOL.

Bear Market Stock Shares rising included SKF, EEV, while Bear Market Bond Shares falling included, TBT.

Volatility, VIXY, and UVXY traded higher.

Base Metals, DBB, Oil, USO, Timber, CUT, traded lower, taking Commodities, USCI, and DBC, lower.

Emerging Market Currencies, CEW, traded lower, and World Major Currencies, DBV, trading lower included SZR, ICN, FXS, and FXA.

The debt trade, which has been based upon the seigniorage of the sovereign authority of sovereign nation states, is failing, as is seen in World Government Bonds, BWX, Emerging Market  Bonds, EMB, International Corporate Bonds, PICB, an Stocks, VT, VSS, EWX, trading lower.

The debt trade, aka, neo liberal credit, came by confidence in Neoliberalism, that is the Free To Choose Floating Currency Regime, which gave carry trade seigniorage, that is moneyness, to country stocks such as Sweden, EWP, Turkey, TUR, Thailand, EWT, Mexico, EWW, New Zealand, ENZL, Argentina, ARGT, US Shares, VTI, as well as to Growth Shares, such as JKE, and Value Shares, RZV.

Confidence is ebbing in the world central banks’ monetary policies, causing inflationism to turn deflationism, as fears of sovereign default rise on concerns of the debt sustainability of the PIIGS, that is Portugal, Italy, EWI, Greece, GREK, and Spain, EWP; and as fears of slowed growth and decreased global trade arise.

Neoliberalism, most obese industry, has been education, with APOL, DV, ESI, BPI, STRA, LOPE, falling the most, and the airline shares, FAA, have been struck down by falling rising oil prices.

Concern over sovereign default is seen in the Interest Rate on the US Ten Year Note, ^TNX, rising above 2.0%. Bond vigilantes are calling interest rates, both sovereign and corporate, higher globally, on fears of sovereign insolvency. Fiat sovereign wealth is starting to implode and investors are concerned about what constitutes money good.

As foretold in bible prophecy of Revelation 13:1-4, and Daniel, 2:31-33, the fiat floating currency regime, with its fiat money and credit is failing and creative destruction is actively creating a regionalization regime, known as the regional global governance, where diktat will serve as both money and credit. Fate is passing the baton of sovereignty from sovereign nation states to regional bodies such as the EU ECB and IMF Troika, giving rise to Neoauthoritarianism. Capitalism is dying and regionalism is rising. The fiat money system is being replaced with the diktat money system. There will no global debt relief, only regional totalitarian collectivism,and debt servitude for all.

The dynamos of profit and growth are winding down; and the dynamos of regional security, stability and sustainability are powering up.

From the viewpoint of Greek mythology, the Greek Goddess of Astraea, is rising to effect judgement; and the only protection one has is to call upon Arete, that is Virtue.

Stocks Trade Lower As Growth And China Shares Fall Lower … World Enters Strongly Into Second Great Depression

March 20, 2012

Financial Market Report for March 20, 2012

Bonds, BND, traded unchanged, Copper Miners, COPX, and China Shares, YAO, CHXX, CHIX, CHIM, CHII, HAO, CAF traded lower on fears of diminished world growth.  Now the growth trade is over as Growth Stocks, RZG, and the Value Stocks, RZV, and the Transportation Stocks, IYT, and Industrial Stocks, IYJ, traded lower. The debt trade, particularly the Sovereign Debt trade, BWX, and EMB, and to a lesser extend, the Junk Bond trade, JNK, traded lower. Thus the seigniorage of world central banks’ monetary policies has failed. Neither sovereign nation authority, nor growth potential, gives moneyness to bonds or stocks. Currency deflation is underway as the US Dollar, USD, UUP, is trading up on the month; and currencies, DBV, and CEW, traded lower, on the day. The currency demand curve, RZV:RZG, shows that investors are no longer risking investing value shares as currencies are loosing value globally.

Capitalism is dying as both credit and money have failed as the dynamos of growth and profit are turning off.  Regional global governance is powering up on the need for regional security, stability, and sustainability.   

European Financials, EUFN, led Euorpean Shares, VGK, lower; while JP Morgan, JPM, Bank of America, BAC, and Citigroup, C, rose; these latter two are high beta stocks so it is not surprising to see them rise.  The Financial Sector, XLF, traded up 0.5%, which made for a good entry point on the two hundred percent bear market financial SKF.   

The S&P, SPY, traded lower as Word Financials, IXG, and Materials, MXI, traded lower. It is the BRICS, EEB, and the emerging Markets EEM, EWX, that are leading the way down.

Nations turning lower today included, RSX, EWA, CAF, EWI, EWD, ARGT.

Growth Stocks trading lower included, MTW, TEX,  JOY.

Energy Service, IEZ, and XES, traded lower.

Leveraged Buyouts, PSP traded lower.

Small Cap Value, RZV, trading lower included SNX, MAIN.

Biotechnology, XBI, traded lower included GILD, AMGN.

Homebuilders, ITB, trading lower included, DHI.

Semiconductors, XSD, trading lower included TSM.   

Internet Retailers trading lower included PCLN, GOOG,

Agriculture, MOO, PAGG, shares trading lower included DE, AGCO.

Design Build Construction, PKB, traded lower included CAT, EXP,

Large Cap stocks, JKE, trading lower included UTX, CMI,

Mining Shares, MXI, trading lower included , RIO, ACH.

Energy Shares, XLE, trading lower included SLB, CVX,

Small Cap Energy, PSCE, traded lower.

Automobile Shares, VROM, CARZ, trading lower included GM, TTM,

Credit Companies traded lower included V, MA,

Health Care Companies, IHF, trading lower included UNH, WCG,

Electrical Equipment Manufacturers, traded lower included ETN. BGC

Internet Retailers traded lower included PCLN, GOOG.

Agricultural Equipment Shares, DE, AGCO, traded lower,

Aerospace companies, traded lower included HON,

Paper Manufactures, WOOD, traded lower included IP,

Chemical Manufacturers trading flower included, DD,

Refiner, IMO, traded lower.

Small Cap Technology,  PSCT, trading lower included, FFIV, JBL,

Steel. SLX, trading lower included NUE,

Real Estate Shares, IYR, trade lower, including FNIO.

Small Cap Industrial , PSCI, traded lower included DXPE, SNA, ROLL,

Vice StocKs, BJK, trading lower included SHFL, PM,

Volatility, VIXY, and VIXM, traded lower

Bear Bond Market ETF, TBT, traded unchanged, and Bear Stock Market ETF, SKF, traded unchanged, and EEV rose.

The recent rally was in Stocks, VT, only, as Commodities, DBC, traded lower: the rally in stocks was not confirmed in commodities, which traded lower again today, on lower Base Metals, DBB, Copper, JJT, Timber, CUT, Agriculture, JJA, and Oil, USO,   

Competitive currency devaluation, is underway, with the Brazilian Real, BZF, the Brazilian Real, BZF, the Australian Dollar, FXA, and now the Mexico Peso, FXM, trading lower.

Debt deflation, is underway, in Bonds, AGG, Stocks, ACWI, Commodities, DBC, Major Currencies, DBV, and Emerging Market Currencies, CEW. Destruction of fiat wealth has commenced. Wealth can only be preserved by dollar cost averaging into gold bullion as the world has entered in Great Depression II.

This document has been posted on the Internet

Bonds And Currencies Trade Lower On Exhaustion Of LTRO Financing And Operation Twist Commencing Both The End Of Fiat Money And The Beginning Of The Second Great Depression

March 15, 2012

Financial Market Report For March 14, 2012

The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened once again forcing Bonds, BND, sharply lower again today, as US Treasuries, ZROZ, EDV, TLT, IEF, IEI, fell strongly lower, forcing longer duration corporate bonds, BLV, and corporate bonds, LQD, vertically lower, wiping out most of the gains made from the first of year, which came via LTRO financing, and operation twist.

Emerging Market Bonds, EMB, traded lower. The Flattener ETF, FLAT, traded sharply lower, and the Steepner ETF, STPP, traded strongly higher.

The Interest Rate on the US The Year Note, ^TNX, rose to 2.3%, reflecting the bond vigilantes being able to call interest rates higher, as the seigniorage, that is the moneyness of the US Central Bank’s monetary policies, has failed. This with the strong trade lower in the Yen, FXY, and the strong trade lower in the South African Rand, SZR, Australian Dollar, FXA, the Brazilian Real, BZF, and the Swedish Krona, FXS, and the Emerging Market currencies,CEW, documents the failure of world central banks’ monetary policies, and the death of fiat money, with confirmation coming from the rise in the US Dollar, $USD, UUP . With the rise in US Treasury yields and the rise in the US Dollar, $USD, capitalism has died, and regional global governance will rise in its place.

The monetization of debt globally finally has resulted in a rise in sovereign and corporate interest rates globally, causing derisking out of stocks, and deleveraging out of commodities, on debt deflation, that is currency deflation, which commences the Second Great Depression.

With sovereign national governments failing, Bonds, BND, and currencies, such as the Emerging Market Currencies, CEW, the Brazilian Real, BZF, the Australian Dollar, FXA, the South African Rand, the Swedish Krona, FXS, the Indian Rupe, ICN, and the Euro, FXE, turning lower, both fiat money and credit are dying..

Fiat wealth consisting of stocks and bonds, will now literally be sawn asunder, and fall ever lower, as currencies trade increasingly lower, on the exhaustion of the worlds’ central bank monetary authority, causing competitive currency devaluation.

Fate, through creative destruction, is passing the baton of sovereignty authority to new sovereigns, such as the EU ECB and IMF Troika, who are providing diktat as both money and credit. The fiat money system is history and the diktat money system is rising in its place. Sovereign insolvency and bank insolvency are the factors causing the seigniorage, that is the moneyness, of the global debt trade to fail. Soon the seigniorage of diktat, will arise to underwrite debt servitude for all. An inflection point in economic history has been reached as the monetization of debt is causing the destruction of currencies, leading all down the road to serfdom, into a global gulag of debt servitude and loss of national sovereignty.

With stocks, rising to previous highs, and bonds, and currencies trading lower on competitive currency devaluation, the fiat money system is history; and the diktat money system will rise to govern mankind in regional totalitarian collectivism and regional statism. Regionalization is the way forward in globalism.

Capitalism’s dynamos of growth and profit are exhausting on the failure of neo liberal credit and carry trade investing. New dynamos of regional security, stability and sustainability will establish the ten toed kingdom of regional global governance, terminating the Anglo American hegemony that began in the late 1700s, even though Oliver Knox reports Obama, Cameron reaffirm Afghan strategy; the two leaders say NATO is still committed to shifting to a support role in Afghanistan in 2013.

Stocks trading lower included Copper Miners, Small Cap Energy, US Energy Service, IEZ.

Countries trading lower include Greece GREK, China YAO, Russian, RSX, India, INP, Brazil, EWZ,  the BRICS, EEB, the Emerging Marketd,s EEM, and South Korea, EWY.

Silver, SLV, and Gold, GLD, Timeber, CUT, Base Metals, DBB, Timber, CUT, and Oil, USO, traded lower, taking commodities, DBC, USCI, lower as well.

Stock bear market ETFs, such as TWM, and EEV, traded higher on rising volatility, VIXY;  UVXY, and bond bear market TBT rose as well. Yes a number of stock bear market and debt bear market investments traded lower introducing debt deflation, that is currency deflation, in both stock and bonds.

The rise of the global  growth trade and the global government debt trade is over, as World Stocks Outside The US, ACWX, and World Government Bonds, BWX, are trading lower from their recent highs.

Annaly Capital Management, NLY, led Mortgage REITS, REM, lower; wealth can no longer be procured by the financialization of mortgage bonds and US Intermediate Bonds.

DTE Energy, DTE,  led Utilities, XLU, lower.

At major market turns lower, US Treasury Bonds, ^USB, and the HUI, Precious Metal MINing Stocks, ^HUI,  make market turns lower together. The downturn in the 30 Year US Treasuries, EDV, comes at a time when Mining Stocks, GDX, have been trading lower. The gold miners, GDX, may be ready for a dead cat bounce higher now,  from 50 to 54, before they turn lower yet again, and fall lower with all stocks in the Pit Of Financial Abandon.

Debasement of World Currencies, DBV, and Emerging market Currencies, CEW, by world central banks’ monetary authorities had created inflation; but now currency debasement is causing destruction to bonds globally, that is to bothy sovereign debt BWX, and international corporate debt, PICB,

Debasement of currencies world wide is causing despotism to rise to power in the EU, as the EU ECB and IMF Troika effect a Eurozone Coup D Etat.


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