Financial market report form Monday June 11, 2012
The US Dollar, USD, UUP, traded unchanged, as Oil, USO, led commodities, DBC, lower today, Monday June 11, 2012. But the chart of gold, GLD, and silver, SLV, shows a small trade higher, continuing up from last week’s blast, and shows it poised to break out of its triangular consolidation. Silver miners, SIL, and gold miners, GDX, traded lower; and junior gold miners, GDXJ, traded strongly lower. Market Watch reports Oil slips below $84 as demand concerns prevail. The weekly chart of the US Dollar, $USD, shows a bearish harami candlestick for the week ending Friday, June 8, 2012, suggesting that it will be turning lower.
Bloomberg quotes Jens Weidmann in article, Weidmann Says Euro Area Need Changes, Welt am Sonntag Reports. Changes need to be made to the euro area if it is to become sustainable, European Central Bank council member Jens Weidmann was quoted by Germany’s Welt am Sonntag as saying. “The currency union can’t function sustainably the way it is at the moment,” Weidmann, who’s also Bundesbank president, was cited by the Berlin-based paper as saying. “We need more clarity if we want to go down the route to a fiscal union, or if we want to keep relying on self-responsible national budget policies. In the latter case, the common liabilities need to be narrowly limited.” Germany should stay in the single-currency zone because of the high costs and risks linked to leaving, Weidmann was quoted as saying. “A disintegration of the currency union would be linked to extremely high costs and risks,” he said. “That’s why such a scenario can’t be the goal of politicians.” This “should not mean that Germany becomes open to blackmail and promises guarantees without control,” Weidmann was quoted as saying. “That would erode the stability basis of the currency union.”
Zero Hedge reports the following (Hat Tip to Between The Hedges)
- Farage On The Spanish Bailout: “A Reinforcement Of Failure”.
- The Spanish Bank Bailout: A Complete Walk Thru From Deutsche Bank.
- German Opposition Threatens to Scuttle ESM, And Spanish Bailout, Ratification.
- Here They Come: Ireland Demands Renegotiation Of Its Bailout Terms To Match Spain.
- Spanish CDS Storms Above 600bps.
Egon von Greyerz has spoken quite well to the coming global financial collapse, and King World News provides a current Egon von Greyerz Interview. Yes, Financial Armageddon, that is a credit bust and global financial collapse is imminent.
Robert Wenzel in article The 30 Day Reading List that will Lead You to Becoming a Knowledgeable Libertarian writes Libertarian Murray Rothbard called for one to Repudiate The National Debt .
Sovereign debt cannot, and will not be repudiated, as the Sovereign Lord God, Ephesians, 3:1-21, and 2 Corinthians, 5:17-18, is bringing forth the Beast Regime of Revelation 13:1-4, which is the ten toed kingdom of regional governance, Daniel 2:30-33, to replace crony capitalism and European Socialism.
God intends to apply all the debt to all the people; so that everyone live in debt servitude, recognizing the Beast regime, Revelation 13:3-4, as a global empire. God’s aim is that one might come to trust in God’s Son for deliverance, Revelation 2:26-28. No one, anywhere will be free from the debt requirements of the Beast regime. There is no free land, as all land everywhere, will be under the Beast’s sovereignty and seigniorage, that is moneyness. There are only a few places where it will be relatively safe to live such as Panama. It is best that one own and possess gold and silver bullion; and own and trade the precious metals as well on Internet platforms such as Money Is Gold and Bullion Vault.
Liberty is a mirage on the Beast Regime’s desert of the real. Choice is a principle of the bygone era of Neoliberalism, which featured the Milton Friedman Free To Choose floating currency regime.
Money died in April 2011 when investors sold out of stocks, VT, commodities, DBC, and major world currencies, DBV, and emerging market currencies, CEW, as well. Credit died in April 2012 when stocks started to trade lower.
Mike Mish Shedlock in Modern Day Fairy Tale of 3 Economic Wizards (Except It’s True) writes
- Keynesian School of Fiscal Voodoo and Witchcraft
- Monetarist School of Monetary Voodoo and Witchcraft
- Austrian School of Sound Money, Sound Economic Principles and Common Sense.
Aspiring Grand Poobah Greg Mankiw (Professor of Economic Wizardry at Harvard University) put forth a proposal that caused a stir in both the real world and the world of wizards. Mankiw proposed that purposely making money go worthless over time would be of great economic benefit. Philosophical beliefs:
- Keynesian wizards believe governments can spend their way to economic health and although fiscal deficits may matter at some point in time, they never matter now, in practice.
- Monetarist wizards believe money will cure any and every problem if enough is dropped from helicopters and interest rates held low.
- Austrian wizards believe that economic problems are created by unsound money, haphazard loans, excessive debts, and government manipulations.
The average non-wizard non-union employee has long ago figured out the moral of this story. Those in ivory towers in “Academic Wonderland” have not, so I need to spell it out. It is indeed possible to have a genuine economic debt-free recovery, along with austerity, as long as other sound economic measures are incorporated at the same time. Yes, there will be some short-term pain. However, any attempt to avoid pain via heaps of fiscal and monetary stimulus is nothing but voodoo economics and can-kicking witchcraft.
The Austrian Economist dream for a commodity money system to replace the fiat money system will never occur, as I believe from bible prophecy, that the diktat money system is rising to govern humanity, on the failure of the world central banks’ monetary authority.
Diktat will soon serve as both money and credit, as sovereign leaders and sovereign bodies rise through announcement of regional framework agreements to replace sovereign nation states.
European Financial Institutions, EUFN, will first be nationalized, and then regionalized, with the Bundesbank or ECB mandated as Europe’s bank.
Ambrose Evans Pritchard writes Europe’s democracies must not subcontract their destiny to the Bundebank. Europe has lit the fuse on an economic and financial bomb. The rescue package for Spain cannot plausibly be contained to €100bn once it begins, given the subordination of private creditors and collapse of global confidence in the governing structure of monetary union.
Bloomberg reports Spanish Bondholders to Rank Behind Official Loans After Bailout
Italy shares, EWI, traded strongly lower as investors feared that its debt will be subordinated.
Such thinking is already too little and too late, as all debt in the EU, from my perspective is already subordinated to the ECB. Furthermore, the EU ECB and IMF Troika is today, the only sovereign authority in the Eurozone; sovereign leaders rule from Brussels and Berlin, mostly Berlin. Through Greek Bailout I and II, and now with the Spain Bailout, democracy and traditional sovereignty, seigniorage, economics, and finance are history.
Out of the soon coming Financial Armageddon, that is a global credit bust and financial breakdown, and through regionalization, particularly regional framework agreements, announced by EU leaders who waive national sovereignty, and pool sovereignty regionally, Germany will come to be preeminent in the EU, leading in a type of revived Roman Empire over the vassal peripheral PIIGS. No one will be considered a citizen of a European country; rather, one be identified as a resident, in a region of economic and political governance. Regional economic and trading blocs will follow in all of the world’s ten regions. The North Ameircan continent will be a North American Union, which I call Can Mex America, which is being built upon the North American Security Perimeter Talks as reported by Keith Jones in WSWS article Canada and US launch continental “security perimeter” talks.
Dana Gabriel writes in Prison Planet Laying the Foundation for a North American Security Perimeter. It further builds on initiatives included in the Beyond the Border agreement and is part of ongoing efforts to lay the foundation for a North American security perimeter. On June 5, DHS Secretary Janet Napolitano announced he Northern Border Strategy (NBS) aimed at deterring and preventing terrorism, smuggling, trafficking and illegal immigration. In a press release she explained how the new plan, “provides a unifying framework for the Department’s work focused on enhancing the security and resiliency along our northern border while expediting legitimate travel and trade with Canada.” In order to accomplish these objectives, the NBS seeks to, “improve information sharing and analysis within DHS, as well as with key partners. The Department will also enhance coordination of U.S.-Canada joint interdictions and investigations, deploy technologies to aid joint security efforts along the border, and continue to update infrastructure.” The NBS parallels the National Northern Border Counternarcotics Strategy issued in January.
It also supports goals outlined in the U.S.-Canada Beyond the Border action plan which focuses on addressing security threats early, facilitating trade, economic growth and jobs, integrating cross-border law enforcement, as well as improving infrastructure and cyber-security.
Another facet of the perimeter security deal is the U.S.-Canada Regulatory Cooperation Council (RCC) action plan. It seeks greater regulatory alignment in the areas of agriculture and food, transportation, the environment, health, along with consumer products. In January, government representatives, as well as industry officials held regulatory meetings in Washington. The RCC has now published work plans in some of the specific areas noting that the rest of them will be posted when they are finalized.
The whole process of regulatory reform has received more attention with President Barack Obama signing an Executive Order in early May, Promoting International Regulatory Cooperation. This will build on the work already underway by the RCC. In Canada, there are fears that deepening regulatory integration with the U.S. could weaken and erode any independent regulatory capacity, thus threatening its sovereignty. Further harmonization could result in Canada losing control over its ability to regulate food safety. This could also lead to a race to the bottom with respect to other regulatory standards.
As part of the Beyond the Border agreement, the U.S. and Canada are also working towards an integrated cargo security strategy. In May, they agreed to a new mutual recognition initiativewhereby, “cargo shipped on passenger aircraft will now be screened only once for transportation security reasons, at the point of origin and will not need to be rescreened prior to upload on an aircraft in the other country.” Deputy Chief of Mission at the U.S. Embassy James Nealon proclaimed that, “Through this program, we will be able to move goods between U.S. and Canada faster, more efficiently, and most securely.
A Transport Canada backgrounder acknowledged that, “Air cargo is just the start. Canada and the U.S. are working together to strengthen co-ordination, co-operation and timely decision-making at the border for cargo shipped by sea or land with a view to increasing two-way trade, and reducing travel and commercial disruptions. When the Action Plan is fully implemented, the principle of ‘screened once, accepted twice’ is intended to apply to all modes of shipping cargo.”
In order to keep trade flowing across the northern border, Canada is being pressured to further take on U.S. security priorities.
Last month, there were a series of U.S.-Canada joint consultation sessions with stakeholders regarding facilitating cross-border business. In addition, Public Safety Canada and the DHS issued the document, Considerations for United States-Canada Border Traffic Disruption Management.
According to a news release it, “fulfills one of the first commitments under the Canada-U.S. Action Plan on Perimeter Security and Economic Competitiveness.” The joint emergency guide, “outlines best practices and identifies critical issues to consider when developing or updating traffic management plans to ensure they are tailored to address regional requirements and individual border crossings.”
Minister of Public Safety Vic Toews stated that, “This plan is the result of close collaboration with a wide range of stakeholders, including government officials from the local, state, and provincial/territorial level, to manage the flow of traffic near the border during a disruption.” He went on to say, “Implementation of this guide will help maintain economic stability and ensure that priority traffic moves freely towards and away from the secure Canada-U.S. border during times of crisis.”
Through various initiatives, NAFTA partners are laying the foundation for a fully integrated North American security perimeter. In the advent of a terrorist attack, disaster or any other perceived threat to the continent, the U.S. could then execute control over the security perimeter. The global elite are not ones to let a serious crisis go to waste. Such a scenario would also provide the perfect cover needed to officially usher in a North American Union.
Reuters reported Saturday June 9, 2010, that Europe works on developing new euro zone bond plan, together with developing a EU Fiscal Union and establishing a European finance minister.
The Eurozone will feature totalitarian collectivism, where a finance minister, perhaps Jens Weidmann, or Mario Draghi, will rule as seignior, that is top dog banker who takes a cut, as seen in Revelation 13:11-13. And where an emperor, perhaps Herman van Rompuy, or Jean Claude Junker, or Jean Claude Trichet, will rule as sovereign, that is king, as foretold in Revelation 13:5-10.
Fiat wealth died June 1, 2012, on debt saturation, and on the presentation by Mario Draghi, that the Eurozone is not sustainable in its current form, and the call by Angela Merkel for a political union, and the affirmation by Jens Weidmann for a Euro zone fiscal and banking union, as related in Reuters article Bundesbank’s Weidmann Presses Spain On Reform, and the announcement of the June 10 and June 11, 2012 weekend’s finance work group, led by Herman Van Rompuy, highlights that a One Euro Government is coming, and has also started the fall of the US Dollar, $USD, UUP, and the steeping of the 10 30 US Sovereign Debt Yield Curve, $TNX:TYX, as is seen in the Steepner ETF, STPP, rising, and the Flattner ETF, FLAT, falling, causing US Debt, ZROZ, EDV, TLT, IEF, BAB, LTPZ, as well as longer duration corporate bonds, BLV, to trade lower, as the benchmark interest rate on the 10 Year US Government Note, ^TNX, has risen from its low of 1.44%.
Rather than trust in oneself, and hope for freedom. I encourage one believe in what Witness Lee calls The Economy of God, and call upon the Name of the Lord for salvation, and thus be set free by Jesus Christ, to know the only right there is: To as many as receive Him, to those who belive in His Name, he gives the power to become a child of God, John 1:12.
JR in article Election writes of the doomed future of the Beast Regime and the nature of those who come to believe in Christ’s Name. ”Election has nothing to do with our will or our efforts. “So then [it is] not of him that willeth, nor of him that runneth, but of God that sheweth mercy.” (Romans 9:16) … Election of an individual is purely by God’s own pleasure, nothing of our own. “Having predestinated us unto the adoption of children by Jesus Christ to himself, according to the good pleasure of his will,” (Ephesians 1:5) …“The beast that thou sawest was, and is not; and shall ascend out of the bottomless pit, and go into perdition: and they that dwell on the earth shall wonder, whose names were not written in the book of life from the foundation of the world, when they behold the beast that was, and is not, and yet is. (Revelation 17:8) … These verses teach that God wrote the names of the elect in the Book of Life and those who were not elect, where not written in the Book of Life. A clear distinction between elect and no elect, saved people and unsaved people. All before the world was created. The Elect were chosen based on God’s mercy. Not because of anything these people would do during their lifetime. God refers to His people as the elect. “And except those days should be shortened, there should no flesh be saved: but for the elect’s sake those days shall be shortened.”(Matthew 24:22).
Martin Pakula writs on The Comfort Of Predistination. My experience is that churches with the word Bible, Sovereign, Grace, or Reformed in their name, conform to the sound doctrine of the Election of Grace. All Living Stream Ministry meetings present this bible view as well.
In today’s news
The chart of PGN, shows a 3% blast higher, which will likely turn out to be an evening star candlestick; Electric Utilities, XLU, closed slightly lower manifesting a bearish harami at the top of a parabolic rise.
Yahoo Finance reports EU’s €100 billion bailout not enough to buy a relief rally
Bespoke Investment Group reports Spain closes 6% off of its intraday high. What started off as a monumental rally for Spanish stocks earlier this morning has turned into major disappointment now that its equity market has closed. After trading up as much as 6.2% in early trading, Spain’s benchmark IBEX 35 index actually finished down on the day! While there is no way to sugarcoat today’s decline, it was somewhat surprising to see that the index has actually had 27 prior days where the index closed more than 5% off of its intraday high, and in 15 of those days the index was up more than 1% intraday before reversing. In fact, three of them came over a 7-day period in August of last year. I comment that the chart of Spain, EWP, showed a stunning rally week, as its President acknowledged a need for a bailout; and as Mario Draghi communicated that the EU is not sustainable in its current form.
Trading today was marked by depression and bearishness as stock prices slid all day long. Networking, IGN, Uranium, URA, Rare Earth Mining, REMX, Coal Mining, KOL, Copper Mining, COPX, Energy Service, IEZ, OIH, Steel, SLX, Homebuilding, ITB, Semiconductors, XSD, Airlines, FAA, Biotech, XBI, Cloud Computing, SKYY, Small Cap Growth, IWO, Small Cap Energy, PSCE, Small Cap Tech, PSCT, Small Cap Industrial, PSCI, Small Cap Discretionary, PSCE, US Infrastructure, PKB, North American Software, Retail, XRT, led world World Small Cap Shares, VSS, lower today.
Egypt, EGPT, and Italy EWI, led country shares, VT, lower.
The bonfire of world financial institutions continued today with Argentina Banks, BFR, BMA, GGAL, BBVA, Banco Santander, STD, Ireland’s IRE, Citibank, C, Bank of America, BAC, Key Bank, KEy, ETrade, ETFC, JP Morgan, JPM, Morgan Stanley, MS, Goldman Sachs, GS, as well as Regional Banks, KRE, Small Cap Revenue, RWJ, led European Financials, EUFN, and World Banks, IXG, lower.
The chart of Bonds, BND, shows a rise, but fell short of their former three white soldiers grand finale of last week.
Breakout reports EU’s €100 Billion Bailout Goes Only So Far.
Mike Mish Shedlock writes Socialists Score Well in First Round of French Parliamentary Elections, Poised to Take Control of Assembly and Senate for First Time Ever; Economically Insane Ideas Coming Up
The PEU Report relates The Bankruptcy Trustee’s Investigation Report on MF Global asks Did MF Global commit fraud? And states MF Global consistently priced above industry prices for repo and reverse repo transactions; and questions, Is Jon Corzine, disastrous gambler or pathological criminal?