100 US Cities With Unique Economies

May 30, 2014

1) Mobile, AL, a shipyards community

Huntsville, AL, home to United States Army Aviation and Missile Command

Chandler, AZ, a bedroom community for Orbital

Scottsdale, AZ,  a snowbird community

Gilbert, AZ, corporate headquarters of Orbital

Burlingame, CA, Bay Area Rapid Transit has its final stop in Millbrae, just north of Burlingame.

Fremont, CA The closest East Bay city to Silicon Valley; and retail center for the area.

Irvine, CA

Laguna Woods Village, CA, senior adult community, 92651, Movers And Shakers

Rancho Sante Fe, CA, the ultimate master planned community

11) Redwood Shores, CA, corporate headquarters of Oracle

Rossmoor, CA a gated active senior adult community, 90720, Money And Brains

San Mateo, CA, retail center of Silicon Valley

Thousand Oaks, CA, corporate headquarters of Amgen

Boulder, CO

Greenwood Village, CO

Lakewood, CO, 80215

Highlands Ranch, CO

Greenwich, CT

Darien, CT

21) Century Village, FL referred to as “Cemetery Village“, 33417, Urban Elders

The Villages, FL,  golf cart retirement community, (Zip Code Map  32159, 32162, 34484, 34491)

Sarasota, FL, a beautiful beach community; world reknown Siesta Beach is nearby.

Dalton, GA, the carpet capital of the world,  30720,  Bedrock America

Sandy Springs, GA, 30328,  Brite Lites, Executive Suites, Up and Comers,

Honolulu, HI

Des Moines, IA, Hartford of the West

Iowa City, IA

Dubuque, IA

Cedar Rapids, IA

31) Naperville, IL

Overland Park, KS

Mission Hills, KS

Indian Hills, KY

Lexington, KY

Baton Rouge, LA

Dover, MA

Newton, MA

Weston, MA

Brookline, MA

41) Portland, ME

Gulfport-Biloxi, MI

Rochester, MN, home to Mayo Clinic

Pascagoula, MS

Apex, NC

Cary, NC

Chapel Hill, NC

Durham, NC

Charlotte, NC

Wilmington, NC

51)Wake Forest, NC

Raleigh, NC

Bismarck, ND

Manchester, NH

Nashua, NH

Hoboken, NJ,

Upper Saddle River, NJ, 07458, Winners Circle

Henderson, NV,

Dublin, OH

Westerville, OH

61) Oklahoma City, OK

Tulsa, OK

Fox Chapel, PA

Charleston, SC

Columbia, SC

Belle Meade, TN

Germantown, TN

Knoxville, TN

Nashville, TN

Andrews, TX, has two permitted radioactive waste landfills, 79714, New Homesteaders

71) Austin, TX,

Baytown, TX

Carrollton, TX, 75006, White Picket Fences

Corpus Christi, TX

Fort Worth, TX

Garland, TX

Hillshire Valley, TX

Irving, TX

Killeen, TX

McKinney, TX

81) Midland, TX

Odessa, TX

Plano, TX

Richardson, TX,

Round, Rock, TX

San Antonio, TX

San Marcos, TX

Sugar Land, TX

Tyler, TX

The Woodlands, TX

91) Uptown Houston, TX

Westover Hills, TX

Arlington, VA

Virginia Beach, VA

La Crosse, WI,  54601,  Boomtown Singles

Appleton, WI,  54911,  Sunset City Blues

Bellevue, WA

Bellingham, WA, 98225

Seattle, WA

Milwaukee, WI

the tinyurl for this document is http://tinyurl.com/l78b8cf

World Enters Kondratieff Winter, The Final Phase Of The Business Cycle, On May 20, 2014 …. As Aggregate Credit, Italy And European Financials Turn Lower From Their Market Tops … On The Exhaustion Of The World Central Banks’ Monetary Authority

May 24, 2014

Financial market report for the week ending May 23, 2014

This post is available in Google Documents format here.

1) … The beginning of the end of the world commenced May 13, 2014, as Jesus Christ pivoted the world out of the paradigm and age of liberalism, which featured nation state central bank economic stimulus, and into the paradigm and age of authoritarianism, which features regional fascist mandates.

The apostle Paul presents the concept in Ephesians 1:10, that Jesus Christ has been tasked with the economy of God, to mature and perfect all things in every age, bringing them to maturity and perfection, much like a ship’s captain completes the manifest before setting sail.

The rise of great inequality.

It was Christ who acted to complete the age of currencies which was fathered by Milton Friedman with his Free To Choose Manifesto, and to perfect the age of credit which was fathered by Ben Bernanke with his QEs, Mario Draghi with his LTRO1, 2, and OMT, and Hiroki Kuroda, with this Abenomics.

Each of economic geniuses, Bernanke, Draghi, and Kuroda, provided his own credit stimulus for trust in risk on investing; these birthed and defined the investor as the centerpiece of economic activity.

God purposed for a debt based money system, and provided the Banker regime to establish currencies and credit to achieve His purposes. It was by God’s design from eternity past, and ongoing fulfillment of His will that the central bank leaders’ provision of currencies and credit, provided seigniorage, that is moneyness, for investment gain, and very little stimulus for economic recovery since the Great Recession, as the investor was ordained from eternity past to be the centerpiece of economic activity.

Thus there was was no fluke, error, or failure of policy, whereby employment and household debt relief were given little regard despite the complaint of Tyler Durden US Manufacturing PMI Beats But Employment Slows To Worst In 2014; and of Brad DeLong Post-1980 Rise Of Extreme Inequality In America and of House of Debt authors Atif Mian and Amir Sufi Employment Scars of the Housing Bust.  The central argument we make in our book is that the housing bust in combination with excessive household debt burdens were the key drivers of the economic downturn. Failure to more adequately address the housing disaster was the greatest policy mistake made in the Great Recession.

The peril of great inequality.

The sovereign’s monetary policies defined investment choice and established both the confidence and the platform for risk-on investing, and resulted in peak banking equity wealth, IXG, on May 13, 2014, and resulted in peak credit wealth, AGG, on May 15, 2014, thus establishing peak moral hazard.

The outcome of great inequality.

Sovereign monies, that is Major World Currencies, DBV, such as the Euro, FXE, are now trading lower. This loss of seigniorage communicates a dwindling of sovereign authority

On Tuesday, May 13, 2014, wealth destruction commenced in the Eurozone on the failure of credit. specifically the failure of trust in the world central banks to continue to stimulate investment gains as well as global growth. With the trade lower in Italy’s Sovereign Debt, ITLY, and Italy, EWI, and the European Financials, EUFN, the world has passed through an inflection point: the world has pivoted from the age of credit into the age of debt servitude, and started to enter into Kondratieff Winter, the final phase of the Business Cycle.

Having perfect peak moral hazard wealth on Friday May 23, 2014, with the S&P 500, manifesting a blow off market top, as is seen in TheWaveTrading Safehaven chart report $SPX: Follow Up of The Ending Diagonal Scenario,  Jesus Christ has closed the chapter on the book of economic life, which reads the age of gilded wealth, and has set sail on a new mission, that is the destruction of all fiat money and fiat wealth, and to produce the age of absolute poverty.

On Friday May 16, 2014, an unwinding of the Euro Yen Currency Carry Trade, that is EURJPY in nation investment in Ireland, EIRL, Greece, GREK, Italy, EWI, and Eurozone Stocks, EZU, as well as a derisking out of the European Financials Debt Trade, EUFN, introduced a see saw destruction of fiat wealth, and the age of debt servitude, and terminated all liberal things worthy of trust, such as a university education, home buying, and fiat wealth investing.

And out of soon coming economic chaos, people will come to trust in new sovereign authority and monetary and economic policies of regional economic governance and schemes of debt servitude to establish regional security, stability, and sustainability, where the debt serf is the centerpiece of economic activity, and ever increasing poverty is the way of economic life.

Under liberalism, meaning freedom from the state, it was the bankers, corporations, government, entrepreneurs, and citizens of democracies who were the legislators of economic value and the legislators of economic life that shape one’s means and one’s ends.

Now, under authoritarianism, it is the currency traders, bond vigilantes, and regional fascist leaders working in public private partnerships and in regional governance, who are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

Scott Sumner writes What’s So Funny About The End Of The World?  Nothing. What’s funny is thatno one cares. “I am finding it increasingly plausible that existential risk is the biggest moral issue in the world, even if it hasn’t gone mainstream yet,” Bostrom told Ross Andersen recently in an amazing profile in Aeon. Bostrom, along with Hawking, is an advisor to the recently-established Centre for the Study of Existential Risk at Cambridge University, and to Tegmark’s new analogous group in Cambridge, Massachusetts, the Future of Life Institute, which has a launch event later this month. Existential risks, as Tegmark describes them, are things that are “not just a little bit bad, like a parking ticket, but really bad. Things that could really mess up or wipe out human civilization.”

The Apostle John wrote in Revelation 1:1, of those thing which must shortly come to pass, meaning the end time events which when they start to occur will rapidly fall in place much lined dominoes topple one upon one another once the first is pushed; the eschatology details from futurism, that is futurist viewpoint, are as follows. And of note, Daniel Alejandro Flores writes that the word  “Revelation” is found 18 times in the Greek, and means disclosure and manifestation.

As is seen in Revelation 6:1-2, Jesus Christ, on October 23, 2013, partially opened, on then again on May 13, 2014, fully opened, the First Seal of the Scroll of End Time Events, thereby releasing the Rider on the White Horse, who has the Bow of Economic Sovereignty, that is the Bow Without Any Arrows, to effect coup d etats world wide, to transfer sovereignty from democratic nation states to fascist regional leaders and bodies, by calling the Benchmark Interest Rate, ^TNX, higher from 2.49%, thus destroying the monetary authority of the world central banks, and establishing the economic authority of regional governance in the world’s ten regions, and totalitarian collectivism in mankind’s seven institutions, as is seen in Revelation 13:1-4.

The death of currencies, and also the failure of credit, that is failure of trust in the monetary policies of the world central banks to continue to provide investment gains and global economic growth on May 13, 2014, comes from the Rider on the White Horse seen in Revelation 6:2, being given a crown, that is the authority to rule over the nations, with the Bow of Economic Sovereignty, calling the Interest Rate on the US Ten Year Note, $TNX,  higher from 2.49%, and is exemplified in the trade lower in Ireland, EIRL, Italy, EWI, Greece, GREK, and the European Financials, EUFN, coming from the strong trade lower in the Euro, FXE, and has commenced destructionism, replacing the former inflationism, as the dynamic of economic activity.

Out of a global credit bust and financial system breakdown, seen in Revelation 13:3-4, and through the First Horseman of the Apocalypse’s endeavors, a One Euro Government, that is a fiscal, banking, and totally fascist economic union, will emerge in the Eurozone. It will be the model for policies of regional governance in all of the world’s ten regions, and schemes of totalitarian collectivism in all of humanity’s seven institutions, this being foretold in Revelation 13:1-4, as well as Daniel 2:20-45.

Largely through the work on the soon to be revealed Sovereign, seen in Revelation 13:5-10, and his economic high priest, the Seignior, seen in Revelation 13:11-18, the EU’s power will become so great, that it will be the preeminent world power.

The end of the world is confirmed with The Red Eclipse, that is the recent blood moons, and is confirmed with the new normal of destructive weather. Paul Mitchell of WSWS posts The Balkan Floods And The Breakup Of Yugoslavia. The severity of the floods has been compounded by the fallout from the break-up of the former Yugoslavia, the Bosnian War (1991-95) and the NATO bombardment of Serbia in 1999. And Nebojsa Malic posts in Antiwar Deluge in Serbia and Bosnia.

For inspiration reading one might consider some Bill Muehlenberg’s Recommended Reading on Eschatology

2) … The age of currencies and the age of credit featured the dynamos of creditism, corporatism and globalism; the age of diktat and the age of debt servitude features the singular dynamo of regionalism.

Under the Banker Regime, credit intensity, defined as the amount of debt needed to create additional economic activity; now under the Beast Regime, diktat intensity is the amount of diktat needed to create additional regional security stability and security.

Benson te writes Phisix: The Speculative Mania Galore In Full Throttle! Essentially “growth” becomes a pretext for unbounded multiple expansion via sky high prices. Risk vanishes! This item is different!  Yet this is another example of the one way trade. Yet the assumptions I make here is that the growth projections will be accurate. They are not. Inflated revenues, earnings and asset values will tank when the BSP pulls back on the 30+% money supply growth rate.

The Financial Times, in carrying the analysis of HSBC points to the increasing vulnerability of Emerging Asia’s growth model as she becomes deeply reliant on debt to produce statistical “growth”, or simply the diminishing returns of debt, which the HSBC calls “credit intensity”.

Asia is addicted to debt bannered the Financial Times Asia: Addicted To Debt. How? “From Credit levels have risen sharply since 2008 in Hong Kong, Singapore, Thailand and Malaysia, while already high levels of household debt in South Korea and Taiwan have tracked even higher. During times of accelerating growth, that might not be a cause for concern. But now much of Asia is faltering. Credit intensity, the amount of borrowing needed to generate a unit of output, has surged, while productivity growth has tumbled. The debt train appears to be fast running out of track just as the world prepares for higher interest rates.”

Benson te has consistently presented that credit expansion in the three sectors has been responsible for the growth of the Philippine Stock Market; these are 1) real estate, renting, and business services; 2) construction; 3) hotel and restaurant.

While a strong performer, the Philippines, EPHE, has been out-performed by Indonesia, IDX, India Small Caps, SCIN, Columbina, GXG, Turkey TUR, Brazil, EWZ. and Egypt, EGPT, as is seen in their combined Yahoo Finance Chart.

Credit Intensity is seen in the ongoing Yahoo Finance chart of Emerging Market Currencies, CEW, Emerging Market Local Currency Bonds, EMLC, Emerging Market Bonds, EMB,  Emerging Market High Yield Debt, EMHD, and Emerging Market Corporate Debt. EMCD.

Credit intensity is defined as the amount of additional credit needed to satisfy risk appetite. Bloomberg reports Wall Street Finds New Subprime With 125% Business Loans.  Zero Hedge reports Credit Mania Update: The Chase for CCC-Rated Bonds. And WSJ reports Demand High As Fannie Mae Sets Price Range For Risky Mortgage Securities. Bond buyers jockeyed to get a piece of $1.6 billion of riskier Fannie Mae securities, enabling the government-backed mortgage company to twice cut the yields it offered on the debt as 24/7 Wall Street reports Fannie And Freddie Looking for 5% Home Price Growth in 2014.

Bloomberg reports Junk-Rated? Horribly Illiquid? Perfect, I’ll Buy Them All. It’s getting harder to trade bonds. Hours, sometimes days can go by before investors can complete a transaction. That’s not dissuading them from piling into the most-illiquid debt out there. Junk-bond investors are earning practically nothing extra to own older, smaller bond issues that don’t typically trade as often as bigger, newer debt offerings, according to Barclays Plc (BARC) data. The gap has collapsed to almost zero from a 1.05 percentage point premium for the less-liquid notes in the fourth quarter of 2011. That means bondholders aren’t really being compensated for the risk that there might be no one who wants to buy their obscure securities if demand dries up and they’re forced to sell. They’re not worrying about that now, though, with volatility at historic lows and cash flowing into credit markets amid a sixth year of unprecedented Federal Reserve stimulus. “The ‘roach motel’ dynamic is as pernicious as ever,” Pacific Investment Management Co.’s Christian Stracke wrote in a May note posted on the Newport Beach, California-based firm’s website. “Investors should beware of credit funds that offer daily liquidity where managers are reaching for yield and are not paying close attention to the prospective liquidity profile of what they buy.

Credit intensity has a twin that being stock buybacks. Tyler Durden posts This Is Why Hewlett Packard Just Announced Another 16,000 Job Cuts. The soaring amount of stock buybacks, which rose by nearly 50% in Q2 from Q1 to $831 million and by 27,600% (!) from a year ago, the most since 2011, should provide all the answers. Other buyback achievers include Halliburton, HAL, and Time Warner, TWC.

3) … The see saw destruction of fiat wealth commenced as the bond vigilances called the Benchmark Interest Rate higher from 2.49%, causing the investor to derisk out of debt trades and deleverage out of currency carry trades.

The Apostle Paul communicates in Ephesians 1:10, that Jesus Christ is the mastermind of the economy of God; that is that He is responsible for designing, maturing and completing all things economic in every paradigm and age. And that He, through His Dignitary, Ben Bernanke, built the very end of age of credit and age of currencies, with little regard for the worker and employment.

The WSJ posts For Those Out Of Work, Scant Optimism In Finding The Next Job.

James Pethokoukis reports Where Are US Jobs Being created? Not In The Middle

Jesus Christ has had the greatest regard for the investor and investment gain; with the reason being He wanted to perfect moral hazard.

For example, He had little regard for the unemployed living in North Philadelphia. It’s one of the worst places in America to live. Wikipedia relates it is termed theNorth Philly Badlands because of pervasive ongoing drug usage and an area where blighted and abandoned homes abound. Wikipediarelates unfettered poverty has earned North Philadelphia a reputation as a slum. Zip Atlas relates that ZIP codes, 19132, 19133, 19121, 19122, have very high levels of unemployment. Poverty rates run as high as 50% in some neighborhoods; unemployment in the area is over 10%, compared to 6.3% nationwide. Virtualtourist relatesThe City Is Burning To The Ground.

Wikipedia further relates Philadelphia is the largest city in the Commonwealth of Pennsylvania, the second largest city on the East Coast of the United States, and the fifth-most-populous city in the United States.

Popular nicknames for Philadelphia are Philly and The City of Brotherly Love, the latter of which comes from the literal meaning of the city’s name in Greek (Greek: Φιλαδέλφεια ([pʰilaˈdelpʰeːa], Modern Greek: [filaˈðelfia]) “brotherly love”, compounded from philos (φίλος) “loving”, and adelphos (ἀδελφός) “brother”).[5]

During the 19th century, Philadelphia became a major industrial center and railroad hub that grew from an influx of European immigrants. It became a prime destination for African Americans during the Great Migration and surpassed two million occupants by 1950.

TheAfrican American population in Philadelphia is the third-largest in the country, after New York City and Chicago. Historically,West Philadelphia and North Philadelphia were largely black neighborhoods, but many are leaving these areas in favor of the Northeast and Southwest sections of Philadelphia. There is a higher proportion of Muslims in the African American population than most cities in America. West Philadelphia also has significant Caribbean and African populations.

ThePuerto Rican population in Philadelphia is the second-largest after New York City, and the second-fastest growing after Orlando.[61][62] There are large Puerto Rican andDominican populations inNorth Philadelphia and the Northeast, as well as a significant Mexican population in South Philadelphia.

Samuel Davidson of WSWS reports Pennsylvania Faces A $1 billion Tax Shortfall, Setting Stage For New Budget Cuts. In April, the state collected $495 million less in tax revenue than projected.

3A) … On Monday, May 19, 2014, Global Growth Excluding The US, DNL, a Large Cap Blend ETF, likely peaked out, as Global Industrial Producers, FXR, Small Cap Industrials, PSCI, Small Cap Growth, RZG, Semiconductors, SOXX, and Transportation, XTN, traded higher. This included stocks such as MHK, AXE, TYC, ROK, FLS, CFX, EMN, DOW, DAKT, BHE,  CR, IR, MEAS, ROC, RPM, POL, ECL, SXT, KWR, CHMT, WOR, KS, BERY, AOS, GPK, MAS, CTAS, SEE, TXN, F, MU, QCOM,  GMED, COO, DAL, which traded higher on the day, largely on recovery trading from last week’s sell off.

Other High Beta Sectors, Regional Banking, KRE, Investment Bankers, KCE, Nasdaq Internet, PNQI, Networking, IGN, Internet Retail, FDN, Biotechnology, IBB, and Software, IGV, traded higher on the day as well in some investment recovery trading.

Emerging Market High Dividends, EMHD, and Emerging Market Financials, EMFN, traded to new rally highs, on higher Emerging Market Currencies, CEW.

New York based Stock Analyst Corey Rosenbloom posts Breakout And Trade Target Planning for Netflix. Like many other similar stocks today, Netflix, NFLX, generated a potential breakout buy signal on a shattering of overhead resistance. Price retraced all the way back to the 38.2% and price confluence into $300 per share which, of course, is a key level that buyers MUST hold firm (and so far, they have done so successfully. This led to a push up from positive divergences into the current $350 pivot level from which today’s breakout and short-term buy signal occurs.

This stimulate Nasdaq Internet, PNQI, and Nasdaq Large Caps, QQQ, to trade higher.

The seigniorage, that is the moneyness of the Banker Regime, started to give way more fully on May 19, 2014, as traders derisked from debt trades and delveraged out of currency carry trades in Australian Equity, AUSE, KROO, EWA, WBK, BHP, on the trade higher in the Yen, FXY, and a trade lower in the Australian Dollar, FXA, as bond vigilantes call Interest Rates in Australia.

And likewise investors  took flight from the Middle East Equity, GULF, MES. All as Zero Hedge posts Conflict Between China And Vietnam Is Imminent – China Piles Troops, Tanks, Artillery And APCs Near Vietnam Border.

Brazil, EWZ, EWZS, traded lower as Brazil Banks, BBD, BSBR, traded lower, as Spain’s Bank, SAN, traded lower.  However, Emerging Europe, ESR, and Russia, RSX, ERUS, traded higher.   German Small Caps, GERJ, traded lower as Deutsche Bank, DB, traded lower, as Zero Hedge reports     Deutsche Bank Scrambles To Raise Capital.

High Yield Interest Rate Hedge, HYHG, Brazil Electric Utilities, EBR, CPL, ELP, PAM, DEP, and US Electric Utilities, XLU, PUI, traded lower as the bond vigilantes called the Interest Rate on the US Ten Treasury Year Note, ^TNX, higher to 2.54%, and steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, which is seen in the Steepner ETF, STPP, steepening.

Junk Bonds, JNK, and Ultra Junk Bonds, UJB, traded to new all time high, while Aggregate Credit AGG, traded lower, on lower 30 Year US Treasury Bonds, EDV, and lower US Treasury Notes, TLT.

Agricultural Commodities, RJA, traded lower.

Liberal economist Mark Thoma writes Why the Fed Should Not Raise Interest Rates.

His viewpoint is a disconnect from reality as the bond vigilantes have taken control of the Benchmark Interest Rate, $TNX, when it began to trade higher from 2.49%, on October 23, 3013.

Now on Monday May 19, 2014, the bond vigilantes have asserted their control over this Benchmark Interest Rate, by calling it higher yet to 2.54%, reflecting that the Rider on the White Horse, seen in Revelation 6:1-2, who has the Bow of Economic Sovereignty, and is effecting economic coups throughout the world, as is seen in the political instability in SE Asia, and as is seen in the Ambrose Evans Pritchard report Putin To Give Ground In China To Seal Gas Deal and as is seen in the Benson te report Thailand Military Declares Martial Law.  And Bloomberg reports Thai Parties, Military Fail To Resolve Crisis At Meeting. Tom Peters of WSWS posts Thai Military Dispenses With Caretaker Government

Higher interest rates globally mean economic destabilization and economic deflation, coming largely from investors derisking out of debt trades and deleveraging out of currency carry trades: the much feared economic recession will soon emerge throughout the entire world.

Economic growth was a largely a side benefit, that came from investment gains, flowing from the credit stimulus of Global ZIRP.  Economic growth was a function of the investor pursuing investment gain in the bygone era of currencies, and the age of credit. One follow the ongoing collapse of currencies with this Finviz Screener of leading currencies.

Austrian economist Mike Mish Shedlock writes Emerging Fed Policy If employment growth stalls, tapering will slow or halt. Long-term, hikes are longer off than most realize. Also, the Fed will never sell anything. Assets will be held to term.

Under the power of the Bow of Economic Sovereignty, that is the Interest Rate on the US Ten Year Note, ^TNX, and its enforcing authority of The Rider on the White Horse, galloping with greater intensity over planet earth, seen in Revelation 6:1-2, the bond vigilantes, not the Fed, is in control of the interest rates, and will continue to be hiking interest rates, and a rather quick pace.

The failure of credit, that is trust in the monetary policies of the world central banks’ monetary authority has failed, as evidenced by Global Financials, IXG, and Dividends Excluding Financials, DTN, trading lower, and has commenced economic destructionism.

Energy economist Gail Tverberg ofOur Finite World blog posts in Zero Hedge The Connection Between Oil Prices, Debt Levels, And Interest Rates.  Because oil prices are too low for companies doing the extraction, we really need higher oil prices. But if oil prices are higher, they will put the country (and the world) back into recession. Interest rates are already very low, it is not possible to lower them further to offset higher oil costs. We are reaching the edge of how much central banks can do to hold economies together. As we have seen, rising interest rates will bring an end to our current equilibrium, by raising costs in many ways, without raising salaries. It will also reduce equity values and bond prices. A rise in the cost of extraction of oil, if it isn’t accompanied by high oil prices, will also put an end to our equilibrium, because oil producers will stop drilling the number of wells needed to keep production up.  If oil prices rise (regardless of reason), this will tend to put the economy into recession, leading to job loss and debt defaults. The only way to keep things going a bit longer might be negative interest rates. But even this seems “iffy.” We truly live in interesting times.

Money market funds will soon break the buck, that is the traditional constant $1 Dollar Value, with the result that capital controls will be implemented and banks everywhere will be integrated into the Government, and be known as Government Banks, and in the US, the Bank’s Excess Reserves will be captured, so as to speak, by the US Fed.

Buy and hold investor Eddy Elfenbein posts The Timing Of The Fed’s Rate Increases. Jon Hilsenrath has an interesting piece in today’s WSJ onwhat will happen when the Fed decides to raise interest rates. Traditionally, the Fed has adjusted their target for the Fed Funds rate, but as Richard Fisher, the top dog at the Dallas Fed recently said, “It is my opinion that the fed funds rate is not the right tool going forward.”

The Fed now pays interest on the reserves kept at the Fed, so that could be the new all-important rate. The hitch is that there’s now a lot of money in short-term money market funds that are outside the banking system. Here’s Hilsenrath: To address that problem, the Fed is experimenting with another lever. It is conducting trades—called overnight reverse repurchase agreements—directly with nearly 100 money-market funds and other financial institutions. Through reverse repos the Fed pays interest to these nonbank entities.

In theory, the reverse repo rate and interest rate paid to banks on reserves could become the Fed’s new benchmark interest rates. Ms. Yellen in congressional testimony this month said both rates were part of the Fed’s tool kit. She and others say they are confident that the Fed can tighten credit conditions when needed. But unresolved issues abound.

One worry: As Fed officials move toward a new system, trading in the fed funds market could dry up and make the fed funds rate unstable. That could unsettle $12 trillion worth of derivatives contracts called interest rate swaps that are linked to the fed funds rate, posing problems for people and institutions using these instruments to hedge or trade. Another worry: If they make overnight reverse repo trades more appealing than bank reserves, they could drive activity in short-term lending markets away from banks and toward unregulated money funds.

There will be no raising of the US Feds Funds Rates; it simply will not happen. Banks everywhere will be integrated into regional governments, with the Eurozone and the US being leading examples of economic fascism. Savings and Loans, such as BOFI, Regional Banks, KRE, such as SIVB, HBAN, and RF, the Too Big To Fail Banks, RWW, such as BAC, will be integrated into the banks and be known as the Government Banks, or Gov Banks. The same will hold true in the United Kingdom, where banks LYG, RBS, BCS, HSBC, will be integrated into the Government as well as in the Eurozone where DB, SAN, IRE, NBG, will into what will soon emerge as a One Euro Government.

The dynamos of creditism, corporatism, and globalism are winding down on the failure of credit and breakdown of currencies. The singular dynamo of regionalism will be powering up the age of debt servitude, where regional economic stability, security and stability become the driving factors of economic activity.

Spectacular leveraged investment has come with credit growth far outpacing GDP growth. The only result can be a world wide credit implosion, and global financial system breakdown known as Financial Armageddon, and presented in Revelation 13:3-4.  A new era of trust will emerge, that is one where residents of the world’s ten regions come to embrace and in fact give homage to policies of diktat of regional fascists governance, and comply with schemes of totalitarian collectivism in mankind’s seven institutions, as is held forth in the dream given by angels to the Apostle John, while he was in his 90s living on the Isle of Patmos, and presented as Bible scripture in Revelation 13:1-4.

3B) …  On Tuesday, May 20, 2014, the world fully entered Kondratieff Winter, the final phase of the Business Cycle, with a credit market reversal and a partial equity market reversal, as investor’s greed turned somewhat to fear, specifically fear that the world central banks’ monetary policies, no longer sustain investment gains and global economic growth, and have made money good investments bad.

Global debt deflation commenced, as currency traders strongly sold the Australian Dollar, FXA, as is seen in the FX Sponsor chart report AUD/JPY Price Breaks Down Below Key Support, which turned Major World Currencies, DBV, parabolically lowerwith the result that Gulf States, MES, Australia, EWA, KROO, New Zealand, ENZL, Thailand, THD, Brazil, EWZ, BRF, and Chile, ECH, traded lower.

With the Australian Dollar, FXA, now following the Euro, FXE, lower, investors are derisking out of debt trade investments, and delveraging out of currency carry trade investments in Global Industrial Producers, FXR, Metal Manufacturers, XME, such as CMC, WOR, GHM, SCHN, GSM, STLD, RS, HAYN, CVR, MLI, CSTM, CRS, Steel Producers, SLX, Aerospace and Defense, PPA, Global Energy Producers, IPW, and Timber Producers and Paper Manufacturers, WOOD.

The sell of Australia’s Bank, WBK, and Germany’s Bank, DB, led Global Financials, IXG, lower.

The May 20, 2014, trade lower in Yield Bearing Investments such as Gulf Dividends, GULF, Australia Dividends, AUSE, Water Resources, PHO, European Small Cap Dividends, DFE, European Financials, EUFN, and Dividends Excluding Financials, DTN, from their high was an epic economic event: the investor, specifically the fixed income investor is going extinct.

The trade lower of Call Write Bonds, CWB, and the turn lower of Defensive Shares, DEF, such as International Energy, IPW, Global Agriculture, PAGG, Electric Utilities, XLU, PUI, from their rally highs, communicates the failure of credit and the termination of profitable equity investing. Of note, Zero Hedge reports Caterpillar Retail Sales Plunge By 13%, Most Since February 2010; Caterpillar, CAT, traded 3.5% lower on the day.

The see saw destruction of fiat investments commented Tuesday May 20, 2014. While World Stocks, VT, and Nation Investment, EFA, may trade higher, Global Financials, IXG, and Dividends Excluding Financials, DTN, as well as Credit Investments, AGG, are trading lower, as the bond vigilantes have control of the Benchmark Interest Rate, ^TNX, which traded lower to 2.51%, but remains above support at 2.49%.

The failure of credit, that is trust in the monetary authority of the world central banks, is beginning to cause the death of currencies, starting first with the Major World Currencies, DBV, such as the Euro, FXE, the Swiss Franc, FXF, the British Pound Sterling, FXB, and the Swedish Krona, FXS. And coups throughout the world, such as in Thailand, and the Ukraine, are starting to cause the dissolution of traditional democratic nation state governance.

Inflationism is turning to destructionism.

The three dynamos of creditism, corporatism and globalism are winding down, on the beginning of failure of trust in the monetary policies of the world central banks.

The singular dynamo of regionalism is starting to power up trust in regional regional fascism, as people come to trust in diktat for regional security, stability and sustainability; a case in point is the example of the technocratic governance of the Troika in Greece.

Nick Beams of WSWS writes The Australian Budget And The Dictatorship Of Finance Capital. The doctrine espoused by Hockey for ending the “age of entitlement” expresses the material interests of finance capital. And Mike Head of WSWS posts Australia: Labor Opposition Pledges To Match Government’s Budget Austerity. Shadow treasurer Bowen boasted that Labor had a proven track record of imposing the dictates of finance capital to slash public spending.

Junk Bonds, JNK, traded lower from what is likely its rally high. Aggregate Credit, AGG, traded higher on the day; yet the trade lower in Aggregate Credit, AGG, from its May 15, 2014 high, together with the beginning of the trade lower in Global Financials, IXG, and Dividends Excluding Financials, DTN,  is of historic importance: the world has entered into Kondratieff Winter.

Look for all Equity Investments, and all Yield Bearing Investments, to begin to trade lower with Credit Investments, which are now trading lower.

The world has passed through an economic inflection point, as the investor’s trust in the monetary policies of the world central banks is beginning to fail.

Fear is beginning to replace greed; specifically the fear that the monetary policies of the world central banks have crossed the rubicon of sound monetary policy and is starting to make “money good” investments, such as the European Small Cap Dividends, DFE, the Eurozone Stocks, EZU, the European Financials, EUFN, and Nation Investment in Eurozone Nations, such as Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, that is the PIGS, bad.

The world has pivoted from the age of currencies and the age of credit … and into the age of diktat and the age of debt servitude.

On going disinvestment of currency carry trades and debt trades will introduce the much feared economic deflation on a worldwide scale.

Peak credit experience in fiat money came Tuesday May 13, 2014, with the Fidelity Mutual Fund containing Distressed Investments, FAGIX, yielding 4.5%, topping out in value at 10.15.  Its terrific rise documents that the Banker Regime skill in ruling in a debt based money system.

Beginning with the Liberal scheme of QE1, where money good US Treasuries were traded out for the most toxic of debt, such as that traded in FAGIX, the process of Global ZIRP commenced, and the banks were regenerated to become the financial engine of economic endeavors.

The genius of the Greenspan Put, was that there was no capital investment in banks rather; rather banks were reestablished, and now exist one with the state, through the awesome rise in Excess Reserves.

Up until October 23, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose from 2.48%, the debt-to-equity ratio did not affect the cost of capital, and therefore hasn’t affected banks’ willingness to extend credit, credit has been liberally available. “There’s more capital out there than we can consume, a huge wall of money”, as Bloomberg quotes Shell’s CEO saying.

Patriot and Nature Economist Elaine Meinel Supkis writing in Steve Forbes Talks About Sovereign Wealth With Professor Prasad In A Childish Way, makes this astute comment “Third world countries at the mercy of the great empires have to buoy up their currencies lest currency traders ravage them.  But this isn’t the problem Japan faces. Japan faces the problem of a strong currency and the only reason they hoard US debt and dollars is to keep the yen artificially weak against the dollar and the euro so they can export more to both.  They make huge profits this way compared to third world countries.”

As stated earlier in this article, beginning on May 16, 2014, an unwinding of the Euro Yen Currency Carry Trade, that is EURJPY in nation investment in Ireland, EIRL, Greece, GREK, Italy, EWI, and Eurozone Stocks, EZU, as well as a derisking out of the European Financials Debt Trade, EUFN, introduced a see saw destruction of fiat wealth, terminated all liberal things worthy of trust, such as a university education, home buying, and fiat wealth investing, and introduced the age of debt servitude

Hence forth and forevermore Jesus Christ operating in the economy of God, a concept presented by the Apostle Paul in Ephesians 1:10, having wound up peak experience in carry trade investing, will be unwinding all global trade, nation investment, dividend investing, and traditional banking investment.

Investment in Japan, EWJ, and its Automobile Manufacturers TM, and HMC, and its Banks, SMFG, MTU, MFG, has taken a beating as is seen in their combined ongoing Yahoo Chart with Global Growth ETF, DNL, communicating that the smart investor was short these investments, as the global debt trade and currency carry trade, was winding up.

Its uncertain in my mind, what will happen to Japan.

But I know, what is going to happen to the Bilderbergers. According to Bible prophecy of  God, that is the sovereign Lord God of the Universe, ordained that the Beast Regime’s totalitarianism be the prevailing form of economic activity, replacing US crony capitalism, the Eurozone’s socialism, and Chinese communism; this is foretold in Revelation 13:1-4, as well as Daniel 2:20-45. Their sovereign wealth will be the empires they carve out, through cunning and one upmanship, in each of the world’s ten regions. Jason Ditz of Antiwar reports Ukrainian Billionaire Rinat Akhmetov Bid to Stop Separatists Fails

New seigniorage and new sovereigns are coming for the new economic age. Seigniorage, that is moneyness, will come from the regional bartering and also the mandates of regional sovereigns, that is regional fascist leaders. Zero Hedge reports China Signs Non-dollar Settlement Deal With Russia’s Largest Bank.  And Mike Head of WSWS reports Financial Ratings Agency Cracks The Whip On Australia’s Budget. Standard & Poor’s said Australia’s triple-A credit rating was at risk if the government did not overcome the popular opposition to the budget. And CNBC reports Putin Slams Sanctions, Seeks Eurasian Union. The Eurasian Economic Union would comprise former Soviet states Belarus and Kazakhstan as well as Russia – and possibly also Armenia, Kyrgyzstan and Tajikistan, he told CNBC during a session Friday at the St. Petersburg International Economic Forum.

The replacement for the Banker Regime’s Money Manager Capitalism is the Bad Bitch of Totalitarianism; she is described Revelation 17:3-4, the Scarlet Harlot who rides the Scarlet Horse. This means that the Bilderbergers will become tightly knit with regional fascists in installing policies of diktat in regional governance in each of the world’s ten regions, and establishing schemes of control unifying all seven human institutions within each region.

Jeff Mackey of Breakout reports Retailer Samples Slides As Strip Malls March Toward Extinction. Shares of Staples, SPLS, are getting reamed this morning after the struggling office supply retailer announced first quarter earnings fell short of analyst estimates and cautioned for the current period.

USA Today reports General Motors Slips Amid Recall Of Another 2.4 Million Vehicles, $200M Charge. The General Motors, GM, recall centers around four separate safety flaws.

The WSJ reports Maersk Raises Forecast for 2014 Danish shipping and oil conglomerate A.P. Møller-Maersk A/S Wednesday upgraded its outlook for the full year after a 62% increase in first-quarter net profit, as aggressive cost cutting outweighed falling freight rates at its container business. The company, which operates the world’s largest-capacity container-shipping fleet, raised its forecast of full-year underlying earnings to about $4 billion from an earlier estimate of $3.6 billion.

Bloomberg reports BlackRock’s Fink Says Housing Structure More Unsound Now. BlackRock Inc, BLK, Chief Executive Officer Laurence D. Fink said the U.S. housing market is “structurally more unsound” today than before the financial crisis because it depends more on government-backed mortgage companies such as Fannie Mae and Freddie Mac. “We’re more dependent on Fannie and Freddie than we were before the crisis,” Fink said today at a conference held by the Investment Company Institute in Washington, noting that he was one of the first Freddie Mac bond traders on Wall Street.

3C) …. On Wednesday, May 21, 2014, World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Dividends Excluding Financials, DTN, traded higher on the day, as bond vigilantes have called the Benchmark Interest Rate, ^TNX, higher to 2.54%, as Bespoke Investment Group reports Ten Year Sticking To The Script On Minutes Day. with the result that Aggregate Credit, AGG, traded lower on the day, and resides lower from its May 15, 2014 high.

World Stocks, VT, traded higher on the day, as two of the most sold off sectors, Solar Energy, TAN,  Nasdaq Internet, PNQI, Global Consumer Discretionary, RXI, Internet Retail, FDN, Pharmaceuticals, PJP, Media, PBS, Semiconductors, SOXX, Resorts And Casinos, BJK, Social Media, SOCL, Nasdaq Internet, PNQI, Media, PBS, rallied higher.  Energy Production, XOP, and International Energy, IPW, traded higher as Oil, USO, popped higher. Of note, Netflix, NFLX, traded parabolically higher.

Nation Investment, EFA, traded higher on the day as Ireland, EIRL, rallied, leading the European Nations higher. Emerging Europe, ESR, and Russia, RSX, ERUS, rallied higher, leading Turkey, TUR, Gulf States, MES, UK Small Caps, EWUS, Vietnam, VNM, Thailand, THD, China, YAO, Columbia, GXG, Emerging Africa, GAF, higher, which induced Global Nation Investment Flagships, Sweden, EWD, Denmark, EDEN, and South Africa, EZA, to new rally highs. Small Cap India, SCIN, traded still higher. However, German Small Caps, GERJ, and Philippines, EPHE, traded lower.

India Earnings, EPI, Investment Bankers, KCE, and Stockbrokers, IAI, traded higher on the day, leading Global Financials. IXG, higher.

Dividends Excluded Financials, DTN, traded higher on the day.

In Yield Bearing Sectors, Shipping, SEA Traded higher. American Realty Capital Partners, ARCP, led Retail REITS, Industrial Office REITS, FNIO, and Residential REITS, REZ, lower; while Mortgage REITS, REM, traded higher, but remains below its market top.

Aggregate Credit, AGG, continued to be led lower from its May 15, 2014, high, by the 30 Year US Government Bonds, EDV, and the US Ten Year Notes, TLT.  Junk Bonds, JNK, recovered from yesterday’s trade lower; yet these now reside below their recent market high. While Mortgage Backed Bonds, MBB, traded to a new rally high.

The Swiss Franc, FXF, traded strongly lower, but there was no corresponding change in Switzerland, EWL.

Bloomberg posts Europe’s Debt Time Bomb.  And ZH posts Italian Bad Loans Surge 26% YoY To Record High (59th Month In A Row.  And ZH posts Peripheral European bond Risk Surges To 2 Month High. And Xinhua posts Portuguese Debt Rises To 132.4% of GDP.  And Shaun Richards posts Cocaine And Prostitution Will Not Rescue Italy From Its Economic Depression. One of the themes of this blog has been that the economy of Italy has struggled through the credit crunch period as the initial impact was added to by the Euro area crisis. Unfortunately this exacerbated the issues raised by the fact that in the supposedly good times that preceded it, Italy only managed weak economic growth of around 1% per annum.

3D) …. On Thursday, May 22, 2014, Equities rallied but closed below their May 13, 2015 high.

World Stocks, VT, traded higher on the day, but resides below its May 13, 2014 high, as a strong rally drove Solar Energy, TAN, Transportation, XTN, Housing, ITB, US Infrastructure, PKB,Internet Retail, FDN,  Software, IGV, Small  Cap Pure Value, RZV, Networking, IGN, Pharmaceuticals, PJP,  Semiconductors, SOXX, Resorts and Casinos, BJK, Small Cap Pure Growth, RZG, Internet Retail, FDN, Automobiles, CARZ, Small Cap Industrials, PSCI, Media PBS, Design Build, FLM, Biotechnology, IBB, Global Consumer Discretionary, RXI, Consumer Services, IYC, Industrial Miners, PICK, Copper Miners, COPX, and Retail, XRT, higher on the day.

I hope you were not one of the those invested in the Asset Managers, such as BLK, or Regional Banks, KRE, high beta ETFS, such as SOCL, TAN, IBB, FDN, PBS, IGN, SKYY, IGV, PNQI, PKB, or in the credit sensitive Small Cap Pure Revenue, RZV, and Small Cap Pure Growth Stocks, RZG, over the last two months, as is seen in their combined ongoing Yahoo Finance Chart.  Smart investors shifted out of these and Defensive Stocks, DEF, and into debt trade investments, such as Emerging Market Bonds, EMB, and currency carry trade investments, such as Emerging Market Small Caps, EWX.

Nation Investment, EFA, traded higher on the day, but resides below its May 13, 2014 high. Emerging Markets EEM, EMIF, traded to a new rally high, as India, INP, SCIN, jumped to new rally highs as currency traders took the Indian Rupe, ICN, and The Brazilian Real, BZF, higher, causing Emerging Market currencies, CEW, to trade new rally high. Turkey, TUR, traded to a new rally high. Gulf States, MES, UK Small Caps, EWUS, Indonesia, IDX, Argentina, ARGT, rallied higher. Taiwan, EWT, traded to a new rally high. China, YAO, ECNS, CQQQ, and Canada, EWC, rallied. Flagship nations, South Africa, EZA, and Denmark, EDEN, traded to new all time highs.  Italy, EWI, and Thailand, THD, traded lower.

Global Financials, IXG, traded higher on the day, but resides below its May 13, 2014 high, as India Earnings, EPI, traded to a new rally high. Emerging Market Financials, EMFN, traded to a new rally high, as Chinese Financials, CHIX, Far East Financials, FEFN, India Earnings, INP,  Regional Banks, KRE, Stockbrokers, IAI, and Investment Bankers, KCE, rallied higher.

Dividends Excluding Financials, DTN, traded higher on the day, but resides below its May 13, 2014 high.

Yield Bearing Sectors trading to new rally highs included, Mortgage REITS, REM, Global Utilities, DBU, such as China’s HNP, Shipping, SEA, such as KEX, TK, and Energy Partnerships, EMLP, AMJ, Leveraged Buyouts, PSP, rallied.

Investors drove debt trade investment Credit Provider, United Rentals, URI, to a new rally high, and drove Manufactured Housing, CVCO, strongly higher.

Aggregate Credit, AGG, traded lower from its May 15, 2014 high, being led lower by 30 Year US Government Bonds, EDV, US Ten Year Notes, TLT, and Junk Bonds, JNK.

Volatility ETFs, VXZ, VIXM, VIIZ, as well as VXX, VIXY, traded higher from market lows. And Inverse Volatility ETFS, ZIV, XIV, SVXY, traded lower from market highs. Zero Hedge reports Market Instability Rising Fast As “Limit Up, Limit Down” Halts Surge.

3E) …. On Friday, May 23, 2014, World Stocks, VT, traded to a new all time high, as Home Builders, ITB, US Infrastructure, PKB, Solar Energy, TAN, Transportation, XTN, Global Industrial Producers, FXR, Social Media, SOCL, Semiconductors, SOXX, Global Consumer Discretionary, RXI, Nasdaq Internet, PNQI, Media, PBS, Automobiles, CARZ, Pharmaceuticals, PJP, Consumer Services, IYC, Internet Retail, FDN, Software, IVG, Biotechnology, IBB, Resorts and Casinos, BJK, and Small Cap Growth, RZG, traded higher on a recovery rally, what is properly termed the Netflix recovery rally.

Energy Production, XOP, such as MTDR, CRK, traded parabolically lower as OilPrice.com posts The California Shale Bubble Just Burst.

Jesse presents SP 500 Daily Charts: Sellers of systems, forecasts, and lucky amulets displaying the Three Flag Rally Ending Salute candlestick pattern. Once can follow the disintegration of the S&P 500 with this Finviz Screener of its leading stocks.

Nation Investment, EFA, traded higher matching its previous high. Emerging Markets, EEM, and Emerging Market Small Caps, EWX, traded to new rally highs.

India, INP, Emerging Europe, ESR, Russia, RSX, Russia Small Caps, ERUS, China, YAO, China Real Estate TAO, rallied higher. Finland EFNL, Denmark, EDEN, Egypt, EGPT, India Small Caps, SCIN, traded higher to new rally highs; Gulf States, MES, recovered strongly. Brazil, EWZ, traded lower on a lower Brazilian Real, BZF. Sweden, EWD, traded lower on a plummeting Swedish Krona, FXS.

Global Financials, IXG, traded higher, but remained below its May 13, 2014, high, as Regional Banks, KRE,  China Financials, CHIX, and Stockbrokers, IAI, rallied, and Canada’s Banks, BNS, RY, BMO, blasted higher.

Dividends Excluding Financials, DTN, traded lower, and remains below its May 13, 2014, high.

In Yield Bearing Sectors, Shipping, SEA, and Mortgage REITS, REM, traded to new rally highs; Global Real Estate, DRW, China Real Estate, TAO, Gulf Dividends, GULF,  and Leveraged Buyouts, PSP, recovered strongly.

The Interest Rate on the US Ten Year Note, ^TNX, closed the week at 2.54%, up from last week’s close of 2.52%, yet Aggregate Credit, AGG, traded lower from its market top, being led lower by the 30 Year US Government Bonds, EDV, and the US Ten Year Notes, TLT, higher on the day.  Other Credit Investments trading lower this week included Global Corporate High Yield Bonds, HYXU, Corporate Long Duration Bond, LWC, PICB, Corporate Bonds, LQD, Municipal Bonds, MUB, Insured Municipal Bond, PZA, as is seen in their combined ongoing Yahoo Finance Chart.  Junk Bonds, JNK, traded higher on the day, but unchanged at its recent high.

Emerging Market Bond, EMB, Emerging Market Local Currency Bonds, EMLC, and Mortgaged Backed Bonds, MBB, ended the week higher.

Al Yoon of the WSJ reports “The latest place where investors are taking on more risk in exchange for apparently meager returns: the U.S. housing market. Bond buyers on Tuesday jockeyed to get a piece of $1.6 billion of riskier Fannie Mae securities, enabling the government-backed mortgage company to twice cut the yields it offered on the debt. The offering is Fannie’s third sale of so-called risk-sharing certificates that enlist investors to pay for potential defaults on the home loans Fannie guarantees. The riskiest of the securities, linked to loans to home purchasers who paid as little as 3% cash upfront, drew 19 times the bids necessary to complete the sale before yields were cut, said people familiar with the offering.”

The fiat money of democracies is dying. The diktat money of regional governance is rising to be the wheels on which economies run.

Investors are beginning to fear that the debtors will no longer repay the creditors, and as a result the fiat of money is no longer sovereign. Sovereign currencies, such as the Swedish Krona, FXS, joined the league of other Major World currencies, DBV, that is the Euro, FXE, and the Swiss Franc, FXF, in trading lower, while Emerging Market Currencies, CEW, led by the Indian Rupe, ICN, rallied to new market highs.

Out of soon coming credit collapse, and global financial system breakdown, that is Financial Apocalypse, seen in Revelation 13:3-4, people will come to trust in the new fiat, that being the sovereign currency of regional diktat.

Just as one had economic experience in Euros, Swiss Francs, in the age of credit, so one will have economic experience in Regional Diktat, such as Putintat, that is the word, will and way of Vladimir Putin, to establish stability, security and sustainability in Eurasia.

The death of currencies means one is decreasingly free to choose; and the failure of trust means one will be increasingly compelled to comply.

The week ending May 26, 2014, Junk Bonds, JNK, traded lower from what is likely its rally high. Aggregate Credit, AGG, traded higher on the day; yet the trade lower in Aggregate Credit, AGG, from its May 15, 2014 high.

And the week ending May 26, 2014, the beginning of the trade lower in Global Financials, IXG, and Dividends Excluding Financials, DTN,  is of historic importance: the world has fully entered into Kondratieff Winter.  

In the news

Denver Post reports Inventory Of For Sale Homes Down 17.5 Percent In Metro Denver. The inventory of homes for sale dropped in metro Denver for the fifth consecutive month in April, falling 17.5 percent from April 2013, one of 21 metro markets where inventories dropped, according to Zillow.

The Zillow Home Value Index, the midpoint of estimated home values for an area, for metro Denver was $248,000 in April, compared with $170,200 nationally. Home values were $257,900 in Denver; and $249,600 in Lakewood.

Zillow chief economist Stan Humphries said in a statement that first-time homebuyers are ready to buy, but they can’t because of the lack of homes for sale in their price range.

Spencer Jakab of the WSJ posts The Culprit In The Slowdown In Housing Affordability, is median new-home prices up by over 11% year-over-year, and 30-year mortgage rates a full percentage point higher than in March 2013.

4) … In fulfillment of bible prophecy, the Nephilim are returning; meet the new heroes, and men of stunning capability.

Genesis 6:4 relates The Nephilim were on the earth in those days, and also afterward, when the sons of God went to the daughters of humans and had children by them. They were the heroes of old, men of renown.

NBC reports Scientists Create Animals That Are Part Human. And Extreme Tech posts First Living thing With Alien DNA Created.

End of the American Dream posts The Era Of Chimeras: Scientists Fearlessly Create Bizarre Human/Animal Hybrids. Did you know that scientists are creating cow/human hybrids, pig/human hybrids and even mouse/human hybrids?  This is happening every single day in labs all over the western world, but most people have never even heard about it. How would you interact with a mouse that has a brain that is almost entirely human?  These are the kinds of questions that we will have to start to address as a society as scientists create increasingly bizarre human/animal hybrids.

5) … Is a holographic ecosystem under development?

VR News reports HP Develops A 3D Display Which Produces Hologram Like Videos.

An inquiring mind asks, is a holographic communication ecosystem under development, where an observer can track and respond to individual’s movement.

Will hologram technology provide a holographic experience to both watch a projected image and to be observed? Is a connected life, that is, a digital life, human network, visual networking, and telepresence experience, under development?

The Apostle John in Revelation 13:14-15, presents that although most of the world will initially hail the Sovereign as a political savior, at three-and-a-half years into a middle east peace covenant, he will revoke the pact by invading Israel and establishing Jerusalem as his world capital. He will outlaw all religions, except the worship of himself. And a hologram, that is a holographic image of himself,  will be empowered to speak and “cause those who refuse to worship it to be killed”.

Being half way through the Tribulation, this will introduce The Great Tribulation, at which time,a remnant of God’s people with find sanctuary in a wilderness place on Earth, for a time, times, and half a time, that is the last forty-two months of the Beast’s rule.

6) … Investment strategies

With the failure of trust in the world central banks’ monetary authority to stimulate investment gains, and economic growth the bond vigilantes are exercising ever greater control over the Benchmark Interest Rate, ^TNX, and this has started derisking out of debt trades, such as the European Financials,  and delveraging out of currency carry trades, such as Nation Investment in Italy, EWI, pivoting the world out of the age of credit and into the age of debt servitude, with the result that the investor is no longer the centerpiece of economic activity, but rather the debt serf will be established by regional fascism to be the lynchpin of all things economic, with the result that soon an investment demand for gold, GLD, will commence commence very soon, taking the price higher from $1,290.

Speculation has washed out of Silver, SLV. Investors have come to recognize the truth, there is currently no investment demand for physical silver, as it is now a commodity used in the production of economic goods. Of note, Gold, GLD, charts reveal that gold has been outperforming the price of silver since February 15, 2014. The price of Silver, SLV, is back to trading at its February 15, 2014 level.

Yahoo Finance communicates that the Silver Miners, SIL, such as AG, HL, SLW, PAAS, are the most overvalued of the Precious Metal Mining Stocks, and are a particularly bad investment choice, as they have a PE of 34, and since March, 2014, the silver miners have disconnected from the price of silver,   Given this high level of price to earnings, those who are invested in the silver mining stocks, must believe that the stocks have explosive potential for investment demand coming from hard assets once stocks tank in value.

I believe that Gold Bullion, such as The British Sovereign Gold Coin, is now the best value in preserving wealth, and that one should dollar cost average into taking possession of it. Yet many people object to this as investment, citing they pay a lot for a small amount of something, and relate concerns over safe storage. Gold investments should be placed in a gun safe, and be place on one’s home insurance policy.

With the May 23, 2014, rally in Transportation Stocks, XTN,  Automobile Dealerships, ABG, LAD, the Airlines, such as DAL, FDX, ALK, LUV, Truckers, such as JBT, SAIA, ODFL, UHAL, R, CNW, and Railroads, such as UNP, TRN, are peaking, up and over the Industrials, XLI, in value. The market direction trading pairs, XTN, XLI, and IYJ, IYT, are indicating a market top in World Stocks, VT, has been achieved.

Of note aggressive trading in Industrial Chemical Producer, LYB, Consumer Goods Manufacturer, UN, International Energy Producer, RDS-B, Publisher, ENL, Semiconductor Manufacturer, NXPI, and Leasing Company, AER, has Netherlands, EWN, taken to a new rally high.

Fiat money, defined as the combination of Major World Currencies, DBV, and Emerging Market Currencies, CEW, together with Aggregate Credit, AGG, is literally dying. Out of soon coming Financial Apocalypse, seen in bible prophecy of Revelation 13:3-4, diktat money, defined as the mandates of regional fascist leaders for regional security, stability, and security, will underwrite all economic activity.

The short selling opportunity of a lifetime has arrived, as the week ending May 26, 2014, Junk Bonds, JNK, traded lower from what is likely its rally high. Aggregate Credit, AGG, traded higher on the day; yet the trade lower in Aggregate Credit,AGG, from its May 15, 2014 high … And as the week ending May 26, 2014, the beginning of the trade lower in Global Financials, IXG, and Dividends Excluding Financials, DTN,  is of historic importance: the world has fully entered into Kondratieff Winter.

Look for High Yielding Debt, JNK, LWC, EU, EMB, HYD, EMLC, EMCD, BABS, HYXU, PZA, to soon trade lower in value. And look for Market Leading Banks and Financial Institutions to begin to rapidly fall lower in value;  these include, BOFI, IBN, SAN, BSBR, ITUB, BAP, BCA, SHG, WBK, GGAL, BMA, IX, CIB, RY, BNS, PUK, GNW, TMK, BANF, CBIN, TFSL, SFNC, CNS, LM, BR, VOYA.

Business Insider reports Here Are The 49 Stocks That Big Hedge Funds Love Most. There are likely many short selling possibilities here.

The transportations, XTN, and the Semiconductors, SOXX, are short selling opportunities.  The Terrific Five Nations, EFNL, EDEN, EGPT, SCIN, MES, are  short selling opportunities. And the Energy Pipelines, MMP, SEMG, TRGP, SXL, ACMP, ETE, OILT, MPLX, LNG, OKS, are as well.

Those who are into short selling may want to consider using a portfolio of Inverse Market ETFs as basis for collateral. One of these might be JGBS, that is a short of the Japanese Sovereign Debt. A portfolio might consist of the STPP, XVZ, EUO, YCS, CMD, DNO, MLPS, SBB, SBM, EFZ, YXI, REK, DDG, MYY, EUM, SAGG, DTYS, JGBS, GLD, GYEN, GEUR, GGBP, HDGI, HDGE.

7) … The foundations of economic education are established in the home, and are formed in Wildism, in Libertarianism, in Totalitarianism, in Christ or some other ism, that is state of being.

This inquiring mind asks how do you feel about the remarks of Janet Yellen presented by Robert Wenzel in Economic Policy Journal article Yellen Praises Bernanke at Yankee Stadium Commencement Speech. Fed Chairdelivered a speech this morning to the graduating class of New York University. The commencement was held at Yankee Stadium. During her remarks she praised her predecessor at the Fed, Ben Bernanke

“My predecessor at the Fed, Chairman Ben Bernanke, demonstrated such courage, especially in his response to the threat of the financial crisis. To stabilize the financial system and restore economic growth, he took courageous actions that were unprecedented in ambition and scope. He faced relentless criticism, personal threats, and the certainty that history would judge him harshly if he was wrong. But he stood up for what he believed was right and necessary. Ben Bernanke’s intelligence and knowledge served him well as Chairman. But his grit and willingness to take a stand were just as important. I hope you never are confronted by challenges this great, but you too will face moments in life when standing up for what you believe can make all the difference.”

An inquiring what is money? and what is fiat money? and asks what is economics? I encourage a read of TC Allen who asks What is Money?

In coming to a definition of money, one should ask what is economics, and what is an economy, as all three are intertwined.

Economics is a money based life experience that is experienced by all; money is defined as the credit and trade that comes from the administration of a household or stronghold; its value is determined by marketplace stakeholders; debt based money bears interest, which is defined as the cost of money. Furthermore, money is that thing that people accept as payment for their labor and products.

The word fiat comes from Latin and means let it be done; thus fiat is the mandate of a sovereign authority.

The debt based money system known as fiat money, defined as the mandates of the Banker Regime, was designed for investment gain, was used throughout the world community, was widely accepted in payment for goods and services, and in discharge of obligations; served as a measure of value, and was a storehouse of value.

Fiat money came to an end on May 13, 2014, with the failure of credit, that is trust in the world central banks to provide stimulus for continued investment gains and global economic growth, as evidenced by the trade lower in the Euro, FXE, and the British Pound Sterling, FXB, and the trade lower in Italy, EWI, and Italy’s Debt, ITLY, reflecting the investor’s fear that the monetary policies of the world central banks had crossed the rubicon of sound monetary policy and made “money good” investments bad.

CNBC reports European Bonds Signaling Trouble? The quick move higher in the yields of Europe’s weakest sovereigns from historic lows may be just the beginning and on the edges it could start to affect other low-rated credits where investors have hunted for yield, such as US Junk Bonds.

It was the quick move higher in Italy’s Sovereign Yield, reported by Global Risk Monitor,  is seen in Italy’s Sovereign Debt, ITLY, trading lower, on May 15, 2014; this caused Italy, EWI, to trade strongly lower.

The new debt based money system, known as diktat money, commenced as peak moral hazard wealth was obtained, reflected in Aggregate Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, topping out in value; and World Stocks, VT, Nation Investment, EFA, Dividends Excluding Financials, DTN, trading lower in value. As foretold in Revelation 13:1-4, diktat money has its origins out of waves of Club Med, read PIGS, sovereign, banking, and corporate insolvency.

Diktat money is defined as the mandates of the Beast Regime, specifically regional fascist leaders; it is designed to establish regional security, stability, and sustainability, and is centered around regional framework agreements, as leaders meet in summits, to renounce national sovereignty and announce regional pooled sovereignty as is seen in the Zero Hedge report The Birth Of Eurasia – Russia & China Do Pipelineistan. And Bloomberg reports Russia, China Sign $400B Gas Deal After Decade of Talks.

The end of empire has commenced. We are witnessing the beginning of the end of the US Dollar as the International Reserve Currency and the beginning of US Dollar Hegemony. This is fulfillment of the Statue of Empires Bible prophecy as foretold in Daniel 2:25-45, where the last of the two global superpowers, that is the British Empire, and the US Dollar Hegemonic Empire, dissolve away; and in their place the Ten Toed Kingdom, with toes of iron diktat and clay totalitarian collectivism, rises to rule the world; this monster is the same as the Beast Regime of Revelation 13:1-4, which rules in diktat in each of the world’s ten regions and occupies in all of mankind’s seven institutions.

The British empire and the age of manufacturing was built upon oil. The US Dollar Hegemonic Empire was built upon the Petro Dollar; and that resource is quickly evaporating as International Man posts   The Collapse Of The International Monetary System & Petrodollar, Part 2.

The Beast Regime will be very much a type of Revived Roman Empire, in that it has Latin speaking roots and will have a European ruler, seen in Revelation 13:5-10, much like Charlemagne, who will eventually rise to rule the rule the entire world from Jerusalem as is foretold in Daniel 9:25-27.

Dvsoul.org.uk posts World History And The Statue Of Empires: Feet of Iron And Clay History shows that the actual Roman kingdom due to several wars, rebellions and many other factors within itself was divided into ten nationalities. As we know each of these also went on to colonise nations across the world and pretty much divided the nations of the world amongst themselves. Rome’s existence is everywhere if you bother to investigate or research the issue.   Rome, though may be officially no more, it’s part of every modern society today. It confirms the biblical prophecy of the Feet of Iron and Clay as we see Rome disintegrate and mingles across the world mixing with all humankind. A good study of our laws, buildings, policies and many other aspects of governance is still Rome.

All be economists. Everyone has an an economy, which is defined as the life experience that comes from the administration of the credit, that is trust, and trade, that comes from the ethics of a household or stronghold. An economy exists for life and death experience, and is determined by the prevailing interest rate of the monetary regime and its monetary policies and schemes, as well as by education in one’s home.

Individuals have ethics, that is principles of relationships with others, and manifest these in speech and behavior, which communicates their values and establishes their identity; i.e. a Wild One, a Liberal, a Libertarian, a Totalitarian, or a Christian.

Elaine Meinel Supkis writes of the wilding of the black culture Mrs. Obama Complains About Increasing ‘Resegregation’ In Schools.

And Ms Supkis writes The Rising Tribe Of The Working Stiff. The rise of UKIP unsettles Labour, Tories and Liberal Democrats in England elections. Increasingly, British politics now is a three way battle. And if they let in even more Eastern Europeans, it will be eventually won by UKIP out of sheer desperation. In the US, the displacement of citizens is cruelly celebrated. The rulers who want no unions and low wages love this flood of aliens. Ditto with the rulers in England. Little worry about these people also causing local street crimes is due to the rich living in basically what are castles surrounded by armed guards. So long as their bank accounts continue to bulge bigger and bigger, they don’t give a damn. The US doesn’t have a UKIP party to appeal to the working stiffs. Instead, we have the dreary left/right game that has the leaders of both wings constantly betraying their followers and playing mind fuck games galore.

Jordan Shelton of WSWS posts The New Aristocracy In Britain. Britain’s super-rich elite now control wealth equivalent to one third of total economic output, or £519 billion. And Julie Hyland of WSWS posts Britain Has More Than 100 Billionaires, Says Sunday Times Rich List. The Times figures show that the UK now has one billionaire for every 600,000, the highest concentration in the G8. Citywire posts The Billionaire 100 Club: Peter Hargreaves’ Inexorable Rise. The number of billionaires living in the UK has exceeded 100 for the first time in history with Peter Hargreaves’ relentless rise up the wealth charts continuing

Robert Wenzel posts Sunday Morning Essay: The Objectives of Economic Education Extracts from a memorandum (1948) to Leonard E. Read, founder and president of the then newly established Foundation for Economic Education; previously published only in Spanish translation. The Objectives of Economic Education ByLudwig von Mises.

The struggle between the two systems of social organization, freedom and totalitarianism, will be decided in the democratic nations at the polls. As things are today, the outcome in the United States will determine the outcome for all other peoples too. As long as this country does not go socialist, socialist victories in other parts of the world are of minor relevance.

Some people, among them very keen minds, expect either a revolutionary upheaval of the communists, a war with Russia and its satellites, or a combination of both events.

However this may be, it is obvious that the final result depends on ideological factors. The champions of freedom can win only if they are supported by a citizenry fully and unconditionally committed to the ideals of freedom. They will be defeated if those molding public opinion in their own camp are infected with sympathies for the totalitarian program. Men fight unto death for their convictions. But nobody is ready to dedicate himself seriously to a cause which in his eyes is only 50% right.

Those who say: “I am not a Communist, but . . . ” cannot be counted upon to fight rigorously for freedom and against Communism.

In Russia, in 1917, the Bolsheviks numbered only a few thousand men. From the arithmetical point of view their forces were negligible. Yet, they were able to seize power and beat into submission the continue reading.

Jesus Christ is the ism of God, that is the divine nature of the Godhead. The experience of Him is one of holiness and of truth, this being presented in Hebrews 1:3, and John 14:7. His Apostle Peter, writes of addition of the elect in 2 Peter 1:5-7,  “Add to you faith virtue, to virtue knowledge,to knowledge self-control, to self-control perseverance, to perseverance godliness,  to godliness brotherly kindness, and to brotherly kindness love”; it is out of this practice that one has identity as a Christian and life experience in Christian ethics.  Perhaps one might enjoy reading Witness Lee The Triune God In His Economy.

On Tuesday, May 13, 2014, the see saw destruction of fiat wealth commenced in the Eurozone on the failure of credit. specifically the failure of trust in the world central banks to continue to stimulate investment gains as well as global growth. With the trade lower in Italy, EWI, the world has passed through an inflection point: the world has pivoted from the age of investment choice and the age of credit into the age of diktat and the age of debt servitude.

May 13, 2014, was a pivot point in mankind’s economic history. Major World Currencies, DBV, such as the Euro, FXE, and then on May 20, 204, the Australian Dollar, FXA, began trading lower.

Having produced peak Nation Investment, EFA, on Friday May 23, 2014, there are no investable markets anymore. Ireland,EIRL, was a crown jewel of debt trade investing and currency carry trade investing, in the age of credit and the age of currencies. Now with Ireland’s Bank, IRE, and its companies, JHX, IR, CRH, RYAAY, XL, ACN, trading lower, Ireland, EIRL, Italy, EWI,  and Greece, GREK, are the leading the way lower into the age of debt servitude, via the failure of the Euro Yen, EUR/JPY, carry trade.

Australia, EWA, was a crown jewel of Uranium Mining, URA, Coal Mining, KOL, and Industrial Mining, PICK, and in Dividend Investing, GULF, coming from debt investing  and currency carry trade investing in the age of investment choice.

Now with Australia’s Bank, WBK, and its iron ore miner, BHP, trading lower, this southeast asian country is joining the Eurozone Nations, in leading Nation Investment, EFA, lower, via the failure of the Australian Dollar Yen, AUD/JPY, carry trade. Nadia Simmons & Przemyslaw Radomski post in Safehaven Forex Trading Alert: AUD/USD – Double Trouble.

The bond vigilantes have control of interest rates globally and have favor from the Rider on the White Horse, that is First Horseman of Apocalypse, seen in Revelation 6:1-2, who yield the Bow of Economic Sovereignty effecting economic coups throughout the world, and their efforts are resulting in debt deflation.

The age of investment choice, and the age of credit, was based upon sovereign currencies, and they are beginning to be debased as sovereign debt becomes dishonored by the Benchmark Interest Rate, TNX, trading higher from 2.49%. Under ZIRP, inflationism came to a zenith on May 13, 2014. The result will be the dissolution of traditional sovereign authority, and the establishment of regional pooled sovereignty.

The Bond Vigilantes in calling the Benchmark Interest Rate, ^TNX, higher from 2.49%, and in steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening once again, is introducing destructionism, and the age of diktat and the age of debt servitude, where there sovereign currencies are falling to the diktat of sovereign regional leaders, whose economic and monetary authority comes from regional framework agreements, and not any traditional law such as constitutional law or international law, or historical precedent.

Jesus Christ will in relatively short time accomplish his purpose of establishing absolute poverty, with the activity of the Beast Regime, of Revelation 13:1-4, replacing the activity of the Creature from Jekyll Island, as foretold in Daniel 7:7.

And Elaine Meinel Supkis writes of economic coups as well; these are the work of the Rider on the White Horse of Revelation 6:1-2. One of the more interesting forces at work today is the confluence of the Hubbert Energy Peak which is very real and is causing energy prices to rise relentlessly while searching for new sources of CO2 producing energy runs very high while at the same time, the very same people launching energy coups and wars are yelling about how we are in a CO2 crisis and the peasants have to stop consuming energy or else the entire planet will burn up!

The fact that Russia now controls half of the Black Sea has enraged NATO Russia Now Owns Half Of Black Sea, NATO Enraged, Becomes More Violent.  She writes Russia wants answers on NATO troop movement in Eastern Europe as the US tries to sneak in troops there while whining about Russian troops inside Russia’s borders.  Note that the US is several thousand miles away while Russia is inside their own territory.

The one flaw in this insidious plan to tax energy used by peasants very high while fighting ferociously to take over world energy markets via hook or crook, is that the planet refuses to heat up.  It is so cold here yesterday, I had a fire going yet again and it is cool today and tomorrow and the Hudson Bay is totally locked in ice still and summer is around the corner.

At least the polar bears are happy, no?  Note that the Arctic in general is still frozen.  Sea Ice News Volume 5 #2 – NOAA forecasts above normal Arctic ice extent for summer 2014 which again shows us that global warming isn’t happening so much anymore.  This complicates the elites’ ability to shove the US peasants off the energy cliff.

Putin has limited powers to control world events especially this gigantic conspiracy of the very rich to simultaneously scream about CO2 killing us while killing everyone fighting over control of energy profits:  Crimea: an EU-US-Exxon Screwup » CounterPunch: Tells the Facts, Names the Names

The battle over the Ukraine’s eastern half rages onwards.  Ukraine crisis: 500 rebels attack troops, 20 killed and Russian journalists being banned entry to Ukraine to cover presidential election while Ukraine’s Yatsenyuk screams that ‘Bandits’ Will Not Disrupt Election.

As a reminder of the violent coup that took over Kiev, there is this video Ukraine Burning, made by Vice showing the fascists in Kiev and their Catholic actions.  Note how no one is shooting them and they are allowed to set fire to tires and buildings and wear masks

As for the liberals and libertarians, in fact all peoples, I hope they will wake up from their dream of freedom in the authoritarian desert of the real. But the only way this is going to happen, is if God exercises His Choice and takes the Red Pill and crams it down their throat, just as he did with me.

 

8) …This inquiring mind asks, whose brand do you carry, what is your tribe, and what is your ism?

All be of a brand and tribe. I am a Christian. Genuine Christians carry a brand, as they are the product of the ism of Christ.

An ism is defined as a process that produces a state-of-being from ideas; one adopts an ideology, and then embraces an ism, and the two produce the individual’s state-of-being, where one has identity and life experience.

There be many isms; every person, has an ism: each individual has economic action out of some movement; one has speech and behavior out of his ism; these manifest as virtues (morals) and ethics (the quality and type of relationships).

One has values, that is a framework of reading, capsule thinking, associates, activities, mentors, and family, that support one’s virtues and ethics.

One will carry a brand as one get’s branded by his ism.

Liberalism’s, meaning freedom from the state, dynamos of creditism, corporatism, and globalism, established economic systems such as India’s terrifically corrupt capitalism, France’s municipal finance socialism, Greece’s pork and patronage socialism, Australia’s crony capitalism. People living in democratic nation states had life experience out of liberalism’s isms.

Some strive to be libertarians, and read Hayek, Mises, and Rothbard, to have experience out of libertarianism.

In contrast, most people had economic action out of the movement of liberalism’s creditism, corporatism, and globalism, as bankers and nation state leaders operated in policies of investment choice and schemes of debt trade investing and currency carry trade investing.

And alternatively, Mike Head of WSWS writes Australia’s Auto closures pose need for a global workers’ strategy. The ending of production in an entire country is a concentrated expression of the ongoing, ruthless restructuring of the global auto industry; and calls for commitment to a life of Trotsky socialism, specifically a new international socialist strategy.

Now, authoritarianism’s is coming of age as investors derisk out of liberalism’s investments, and is starting to establish regional economic governance and totalitarian collectivism for regional security, stability and sustainability. Increasingly people have economic action out of the movement of authoritarianism’s regionalism, as regional fascist leaders operate in policies of regional diktat and schemes of debt servitude.

Libertarian Mike Mish Shedlock writes Twenty-Three hurt in Spain protest against anti protest legislation; Peripheral Europe powder keg ready to explode.  As bad as all this is, the Euro made matters far worse. It can’t and won’t last.

Please consider that the Euro was conceived and designed in eternity past by God to be enduring. He produced the Euro out of the concepts of the Euro’s Father, Columbia University Professor Robert Mundell, who received the 1999 Nobel Prize in Economics for his 1961 paper “A Theory of Optimum Currency Areas”, as cited by EconoLib.org and other internet resources.

Through the singular dynamo of regionalism, a European Superstate, that is a One Euro Government, will emerge, as is foretold in bible prophecy of Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.

For most people, the ism of regionalism, will produce debt servitude in the diktat of regional leaders as the way of life under authoritarianism.

Like I say. I am a Christian. I commit to keeping Christ’s Word, and not denying His Name, as I am committed to living in His presence and authority, and have movement out of His Spirit. I am of the brand of Christ. And I am of the tribe of Christ.

Jesus Christ is the ism of God, that is the divine nature of the Godhead. The experience of Him is one of holiness and of truth, this being presented in Hebrews 1:3, and John 14:7. His Apostle Peter, writes of addition of the elect in 2 Peter 1:5-7,  “Add to you faith virtue, to virtue knowledge, to knowledge self-control, to self-control perseverance, to perseverance godliness, to godliness brotherly kindness, and to brotherly kindness love”; it is out of this practice that one has identity as a Christian and life experience in Christian virtue and ethics.  Perhaps one might enjoy reading Witness Lee The Triune God In His Economy

The Euro Yen Currency Carry Trade Unwinds Turning Italy, Ireland And Greece Lower … World Stocks And Nation Investment Trade Lower … The See Saw Destruction Of Fiat Wealth Has Commenced On The Failure Of Credit

May 17, 2014

This post is available in Google Documents format here

 

Financial Market Report for the week ending May 16, 2014

 

I) What is the meaning of credit? Who and what is worthy of trust?

Another word for credit is trust.  World Stocks, VT, Nation Invesment, EFA, Small Cap Nation Investment, SCZ, Emerging Markets, EEM, Dividends Excluding Financials, DTN,  topped out and turned lower value, communicating that investors no longer trust in the monetary policies of investment choice and schemes of credit of the world central bankers to produce ongoing investment gains and global growth.

 

The see saw destruction of fiat wealth, that is equity investments and credit investments, has commenced on the failure of credit.

 

The ongoing destructionism coming through competitive currency devaluation by the currency traders, acting on the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher from the range of 2.49% to 2.54%, can be followed with this Finviz Screener of 50 Common ETFs.

 

Out of soon coming economic chaos, people will come to trust in new monetary and economic policies of regional economic governance and schemes of debt servitude to establish regional security, stability, and sustainability.

 

2) In this week’s financial market trading.

A) On Monday May 12, 2014, World Stocks, VT, Nation Investment, EFA, traded to new highs, on India Presidential election results, and on China reforms to relax limits in listed companies.

Bloomberg reports India Exit Polls Signal Modi Bloc Winning Majority In Election. India’s main opposition bloc led by Narendra Modi is poised to win a majority in a national election, most exit polls signaled, boosting his chances of taking power in the world’s second-most populous country

 

Bloomberg reports China Stocks Rise Most in Seven Weeks On Market Access Measures. Chinese stocks rose as Council said it will deepen reforms of the nation’s capital markets including relaxing limits on foreign investment in listed companies; and as oversold sectors such as the Small Cap Industrials, PSCI, Biotechnology, IBB, Nasdaq Internet, PNQI, Internet Retail, FDN, and Retail, XRT, had a relief rally from being oversold.  And Benson te posts China’s Central Bank: Solve Debt Problem with Even More Debt.

 

World Stocks, VT, traded to a new rally high, manifesting a blow off market top as the Defensive Sectors, Consumer Staples, KXI, such as REV, ADM, K, BUD, PEP, Insurance, KIE, such as AIG, GNW, PUK, AWH, ACE, Global Utilities, DBU, such as EDN, ELP, EOC, HNP, CPL, Global Real Estate, DRW, traded to a new rally highs.

 

Global Industrial Producers, FXR, such as CAT, ETN, ITW, GE, MMM, DOW, LYB, PPG, DOV, HON, GWW, traded to its previous rally high. Small Cap Industrials, PSCI, such as BEAV, IEX, CFX, AME, were the relief rallying sector of the day.

 

Aerospace and Defense PPA, such as GD, UTX, BA, LMT, RTN, Semiconductors, SOXX, such as NXPI, RFMD, MU, QCOM, TSM, STM, PLAB, TXN, AVGO, Copper Miners, COPX, such as SCCO, Global Industrial Miners, PICK, such as BHP, Metal Manufacturing, XME, such as AA, PCP, RS, CSTM, STLD, CMC, GPC, Paper Producers and Timber Producers, WOOD, such as MWV, IP, WY, Pharmaceuticals, PJP, such as JNJ, MRK, Medical Devices, IHI, such as COV, Energy Producers, XOP, such as COP, Software, IGV, such as MSFT, ADP, Consumer Discretionary, WYNN, Automobiles, CARZ, such as F, ALV, GPC, Shipping, SEA, such as CMRE, Telecom Services, IST, such as A, TI, NTT, TEF, Water Utilities, FIW, such as AWK, Retailers, XRT, such as JWN, Automobile Dealerships, PAG, SAH, KAR, AN, KMX, ABG, LAD, Computer Systems, HPQ, Drug Stores, RAD, WAG, CVS, Tobacco Companies, RAI, LO, Communications Equipment, AAPL, Business Services, ADP, DLX, CTAS, and Grocery Stores, KR, DEG, traded higher on an oversold relief rally.

 

Nation Investment, EFA and the Emerging Markets, EEM, traded to a new rally highs, as the Indian Rupe, ICN, traded higher, taking India, INP, and SCIN, to new rally highs. Norway, NORW, Denmark, EDEN, The UK, EWW, Switzerland, EWL, South Korea, EWY, Finland, EFNL, Peru, EPU, Chile, ECH, Brazil, EWZ, Indonesia, IDX, Turkey, TUR, Emerging Africa, GAF, and the Philippines, EPHE, traded to new rally highs. China, YAO, CHIX, CHII, CQQQ, ECNS, TAO, rallied strongly. However, Greece, GREK, plummeted yet lower in value.

 

Dividends Excluding Financials, DTN, traded higher to a new rally high, as China Real Estate, TAO, traded higher, taking US Small Cap Real Estate, ROOF, such as Retail REITs, such as GGP, Hotel REITS, such as CHSP, and Industrial Office REITS, such as STWD, to new rally highs.

 

Global Financials, IXG, traded higher, but still resides below its April high, as Life Insurance Company, GNW, Stockbrokers, IAI, and Regional Banks, KRE, such as HBAN, traded higher, taking the Pure Small Cap Revenue Stocks, RZV, and the Small Cap Pure Growth Stocks, RZG, higher. Chinese Financials, CHIX, traded higher. India Earnings, EPI, and Brazil Financials, BRAF, traded higher, taking Emerging Market Financials, EMFN, to a new rally high.

 

Major World Currencies, DBV, Emerging Market Currencies, CEW, and the US Dollar, $USD, UUP, traded unchanged, while currency traders strongly sold the Yen, FXY, and bought the Indian Rupe, ICN, on expectations that India’s main opposition Bharatiya Janata Party would win the elections,

 

Both Equity Investments, and Credit Investments, will be trading forever lower, on the destruction of fiat money, defined as Aggregate Credit, AGG, together with Major World Currencies, DBV, and Emerging Market Currencies, CEW.

 

As is seen in Revelation 6:1-2, Jesus Christ, on October 23, 2013, partially opened, on then again on May 12, 2014, fully opened, the First Seal of the Scroll of End Time Events, thereby releasing the Rider on the White Horse, who has the Bow of Economic Sovereignty, that is the Bow Without Any Arrows, to effect coup d etats world wide, to transfer sovereignty from democratic nation states to fascist regional leaders and bodies, thus destroying the monetary authority of the world central banks, and establishing the economic authority of regional governance in the world’s ten regions, and totalitarian collectivism in mankind’s seven institutions, as is seen in Revelation 13:1-4.

 

Robert Reich is totally disconnected from economic reality in suggesting How To Shrink Inequality, as in the age of the failure of credit, inequality will become greater, as more, and more people are pushed to the bottom of the economic pyramid. There are three chances of Robert Reich’s proposed reforms taking place: slim, none, and no way.

 

Elaine Meinel Supkis posts National Socialism Is Rising Rapidly As Long Depression Gets Worse Worldwide. The world is hurtling towards another world war.  If we examine the previous two world wars, we can see a definite pattern: these always are followed, by a decade, a long depression.  And they feature greater powers of central bankers and a widening gap between workers and oligarchs.  Generally speaking, there is a quest to replenish government coffers not by taxation but by imperialist exploitation and clashes over distant exploitable territories become very violent very quickly.

Meanwhile, racist/religionist national socialism rises rapidly as dominant populations seek to maintain their grip on social services via cutting off services to minorities and others.

The US is celebrating the fact that oligarchs who support neonaziism are crushing citizens who protest their coup in the Ukraine. Billionaire Rinat Akhmetov Could Turn Tide In Ukraine as the oligarchs, exactly like Hitler’s relation with German oligarchs or Ford using military troops to put down a worker’s strike, or the suppression of mining unions, hiring mercenaries to kill and terrorize whole cities is heralded as a bright, happy future for us all!

A king among men here, his empire of steel plants, factories and coal mines spreads across Donbas, as many Ukrainians refer to their nation’s industrial heartland. Akhmetov is its largest private employer and is known as the “shadow governor” for his links to local and regional politicians. His businesses also maintain their own private, well-trained security force of more than 3,000, including former elite Ukrainian commandos.

There is all sorts of speculation that he is working with Putin and Kiev to suppress the uprising because it threatens Russian as well as Ukraine oligarchs.  The fact is, he has a private army that is laying down the law and this isn’t ‘democracy’ at all.  The oligarchs in Egypt, for example, were so annoyed with Morsi’s big win, they deliberately smashed the economy briefly by withdrawing from it in order to turn public opinion in the direction of a coup.

This is a secondary coup in Ukraine and looks an awful lot like other depression-era coups.  Nothing to celebrate and it is also quite brutal.  Ukraine Crisis: A City In Shock, But Who Is In Control Of Mariupol?

 

The bear market of all times commenced in April 2014, when the Credit Sensitive US Small Caps, IWM, IWC, the Chinese Stocks, YAO, CHIX, CHII, CQQQ, TAO, ECNS, Developing Europe, ESR, and Greece, GREK, as well as Japan, EWJ, JSC, traded lower, on the beginning of the exhaustion of the world central bank’s monetary authority.

 

Monday May 12, 2014, was a good day to go short, as in a bear market one sells into pips just as in a bull market one buys into dips. Currency Carry Trade Investments such as Peru’s Bank, BAP,  and Other Currency Carry Trade Investments; these include  EEFT,  DOX, ERIC, ALU, NOK, ASML, NXPI, STM, SAP, SI, LYB, well as Debt Trade Investments, such as United Rentals, URI.

 

Nation Investment, EFA, and Small Cap Nation Investment, SCZ, is gone forever; it is a part of the bygone era of credit.

 

One could use these risk off Bear Market ETFs, as a basis of collateral for short selling in a brokerage account: STPP, XVZ, EUO, YCS, CMD, DNO, MLPS, OFF, SBB, SBM, EFZ, YXI, SZK, SDP, REK, DDG, MYY, EUM, SAGG, DTYS, JGBS, GLD, GYEN,  GEUR, GGBP, HDGI, HDGE.

 

Look for the Proshares 200% Inverse Market ETFS, such as BZQ, SQQQ, EEV, SSG, SKF, EPV, SCC, RXD, DUG, to alternate in trading higher with TTT.  And likewise look for the Direxion 300% Inverse Market ETFS, such as ERY, FAZ, SOXS, EDZ, GASX, DPK, EURZ, DRV, BRZS, to alternate in trading higher with TMV.

 

B) On Tuesday May 13, 2014, World Stocks, VT, and Nation Investment, EFA, traded to a new rally high, and the S&P 500, SPY, manifested a blow off market top, as the Yen, FXY, traded lower again, bouncing Japan, EWJ, JSC, higher.

World Stocks, VT, and Nation Investment, EFA, traded to new rally highs. Currency traders strongly sold the Euro, FXE, which turned Italy, EWI, lower. Greece, GREK, traded lower once again, as the National Bank of Greece, NBG, traded lower.  This as Reuters reports Fitch Affirms Five Large Italian Banks. Fitch Ratings has affirmed the Long-term Issuer Default Ratings (IDRs) of Banca Monte dei Paschi di Siena (MPS), Banca Nazionale del Lavoro (BNL), Intesa Sanpaolo (IntesaSP), UBI Banca (UBI) and UniCredit. The Outlooks on BNL’s and IntesaSP’s Long-term IDRs have been revised to Stable from Negative.

 

South Africa, EZA, South Korea, EWY, Sweden, EWD, Gulf States, MES, and Canada, EWC, traded to new market highs. India, INP, SCIN, Mexico, EWW, Chile, ECH, Turkey, TUR, Emerging Africa, GAF,  and Egypt, EGPT, traded to a new rally highs, taking the Emerging Markets, EEM, to new rally highs.

 

The S&P 500, SPY, with the help of Transports, XTN, such as DAL, ALK, UHAL, CP, FDX, TRN, traded to new market highs, both manifesting a blow off market top.

 

Likewise Closed End Funds, CGE, traded to a new rally high, manifesting a blow off market top.

 

Global Financials, IXG, traded higher, but reside below their April 2014 highs  Regional Banks, KRE, traded lower, leading Small Cap Pure Value, RZV, such as the Automobile Dealerships, PAG, SAH, ABG, KAR, AN, KMX, LAD, and Small Cap Pure Growth, RZG, lower.

 

Dividends Excluding Financials, DTN, traded to a new rally high; King of Dividend Paying Stocks, Caterpillar, CAT, manifesting a questioning harami in its chart pattern.

 

Eddy Elfenbein posts WSJ DTV/AT&T Could Happen in Two Weeks TheWSJ reported that AT&T (T) and DirecTV (DTV) are close to a deal that would value DTV at nearly $50 billion. The stock spiked to $91 per share in the after-hours market, though it’s come back down in today’s trading. It’s currently at $87 per share. According to the article, a deal could happen within two weeks. They also say that the deal would involve cash and stock. I’m assuming that any deal would value DTV somewhere in the mid-$90’s. It’s easier for a company to pay for a company with stock rather than cash, so it’s like printing your own currency. There’s a drawback with for higher-yielding stocks, which AT&T certainly is. The more shares mean more dividend checks. AT&T currently yields 5%.

 

The Fed, and its associates, the ECB, the Bank of Japan, and the PROC be dead. The Creature from Jekyll Island was literally slain by the Bond Vigilantes on Tuesday May 12, 2014, as they called the Interest Rate on the US Ten Year Note , ^TNX, higher to 2.62%, forcing investors out of investment in Italy, EWI, and its Euro Yen carry trade E, and its debt trade TI.

 

Its reasonable to expect strong deleveraging out of EUR/JPY Carry Trades to follow those of today Tuesday, May 13, 2014, which included Italy’s TI, E, and Netherlands’ ASMI, CSTM, INXN, and Luxembourg’s TS, seen in their combined Yahoo Finance Chart together with the EURJPY, which Adam Button shows in Forex Live chart article EURJPY Closes At The Middle Of A Broadening Top Pattern At 140.00.

 

On Tuesday May 13, 2014, The Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB, all started to die as a currency. Currency traders sold the Euro, FXE, to close lower at 135.28.

 

This as FT reports Germany’s Economy Powers Ahead As France And Italy Fall Behind

 

Out of soon coming credit system breakdown and worldwide financial collapse, centered out of Club Med waves of corporate, banking and sovereign insolvency, a new monster, the Beast Regime, will make landfall in the Eurozone, and eventually rise to rule in regional economic governance in all of the world’s ten regions, and occupy in totalitarian collectivism in every one of mankind’s seven institutions.  As presented in Revelation 13:1-4, it has the form of a leopard, feet like those of a bear and a mouth like that of a lion; and thus operates by stealth, roots outs it enemies, and devours its prey by crushing, ripping and tearing them apart.

 

On Tuesday, May 13, 2014, the see saw destruction of fiat wealth commenced in the Eurozone on the failure of credit. specifically the failure of trust in the world central banks to continue to stimulate investment gains as well as global growth.

 

With the trade lower in Italy, EWI, the world has passed through an inflection point: the world has pivoted from the age of credit into the age of debt servitude.

 

As investors derisk out of debt trades, such as Water Resources, PHO, and Leverage Buyouts, PSP, and Rental Properties, BX, Japanese Credit, IX, and deleverage out of currency carry trades, such as European Small Cap Dividends, DFE, on fears that the world central banks’ monetary policies have made “money good” investments bad, debt deflation, that is currency deflation will commence, taking Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower from their May 9. 2014 highs.

 

There is no invested-long currency trading strategy, such as Forex, FORX, that can work, as all fiat money will be destroyed by debt deflation at the hands of the bond vigilantes.

 

C) On Wednesday May 14, 2014,There was a stock market reversal as World Stocks, VT,  Nation Investment, EFA, and Dividends Excluding Financials, DTN, traded lower from their market highs, evidencing the failure of credit, that is trust in the world central banks’ monetary authority to simulate investment gains and global growth, even though a number of individual countries traded to new rally highs.

 

Nation Investment Weathervane Countries, South Africa, EZA, Switzerland, EWL, Australia, EWA, Gulf States, MES, Norway, NORW, Sweden, EWD, Egypt, EGPT, Emerging Africa, GAF, New Zealand, ENZL, Denmark, EDEN, Argentina, ARGT, and Asia Excluding Japan, EPP, traded to new market highs. The Emerging Markets, EEM, the Emerging Market Financials, EMFN, and Emerging Market Financials, EMIF, traded to new rally highs as China, YAO, TAO, CHIX, led Indonesia, IDX, Singapore, EWS, South Korea, EWY, Philippines, EPHE, and Malaysia, EWM, to new rally highs. Brazil, EWZ, traded to a new rally high. And as Emerging Market Bonds, EMB, Emerging Market Local Currency Bonds, EMLC, and Emerging Market Currency Bonds, EMCD, traded to rally highs.

 

In Yield Bearing Stocks, Global Real Estate, DRW, and Gulf Dividends, GULF, traded to a new rally highs; Shipping, SEA, traded up near its previous rally high; while Water Resources, PHO, traded lower.

 

Eight factors evidence the failure of credit; these include the trade lower in the following:

 

  1. The Russell 2000, IWM, IWC, traded lower as the credit sensitive Small Cap Pure Value Stocks, RZV, the Small Cap Pure Growth Stocks, RZG, the Small Cap Industrials, PSCI, the Small Cap Consumer Staples, PSCC, the Consumer Recreational Goods, POOL, THO, WGO, PII, ESCA, traded lower, on the traded lower in Regional Banks, KRE.
  2. Eurozone Nations, EZU, Portugal, PGAL, Ireland, EIRL, Austria, EWO, and Italy, EWI, traded lower. Ireland’s Bank, IRE, and the National Bank of Greece, NBG, traded lower; these are shown the way is lower in the European Financials, EUFN.
  3. European Credit, EU, traded lower.
  4. Credit Services, AXP, NNI,V, PRAA, DFS, FCFS, AGM, SLM, CACC, ECPG, CIT, MA, HEES, URI, traded lower
  5. Homebuilders, XHB, and ITB, traded lower; and US Infrastructure, PKB, such as MWA, FTK, WSO, FLT, MMM, AAON, and PRIM; and Building Materials, and Manufactured Housing, CVCO, traded lower.
  6. Life Insurance Companies, such as PUK, SYA, GNW, traded lower.
  7. Industrial Textile Manufacturers, DXYN, UFI, AIN, MHK, traded lower.
  8. Leasing Companies, HEES, URI, CAR, HTZ, UHAL, GMT, TGH, AER, traded lower.

 

Volatility, ^VIX, XVZ, traded higher, as the chart of the S&P 500, SPY, shows a trade lower from its blow off market high, as Aerospace, PPA, such as LMT, Semiconductors, SOXX, such as MU, Retail, XRT, such as DDS, JWN, Consumer Services, IYC, such as, DIS, Global Industrial Producers, FXR, such as WHR, FLS, HON, GE, Design Build Companies, FLM, such as Fluor, FLR, and Transports, XTN, such as UNP,  DAL, SWFT, traded lower.

Credit Bubble Stocks posts From the Molycorp Earnings Call. A look at its Finviz chart, MCP, communicates that it would have been wise to establish a short in this stock sometime in the first quarter of 2014, as it lost 36% in the last week. Rare earth prices have tumbled.  It’s only a matter of time before the UK, Europe and the US are involved in a war with the developing China Russia access where Rare Earth Minerals are produced. And then, where will the Western powers get the basic materials used in military weapons production? Probably not from this company.

 

Reuters posts Eurozone Industrial Output Unexpectedly Falls In March As Energy Production Slumps. This inquiring mind asks, where will Europe get the energy it needs to run its economy?

 

Oil, USO, as well as Copper, JJC, led Base Metals, DBB, higher, taking Commodities, DBC, higher, which took Copper Miners, COPX, and Global Industrial Miners, PICK, to new rally highs

 

The Yen, FXY, traded higher, causing the chart of the EURJPY currency carry trade pair, to fall lower through the middle of a broadening top pattern, which hit Ireland, EIRL, Ireland’s Bank, IRE, Cement Producer, JHX, Italy’s Telecom, TI, Energy Producer, E, Netherlands, Telecom, VIP, Energy Producer, RDS-B, and Metal  Manufacturer, CSTM, and Internet Provider, INXN.

 

The Interest Rate on the US Ten Year Note, ^TNX, slipped from 2.62% to 2.54%, as investors traded out of equity investments and into credit investments, with the result that Credit Investments, ZROZ, EDV, LTPZ, TLT, SHY, BABS, MBB,  PZA, MUB, LQD, LWC, EMCD, EMLC, EMB, traded to new rally highs, taking Aggregate Credit, AGG, to a new rally as well as an all time rally high.

 

The bond vigilantes in calling the Benchmark Interest Rate, ^TNX, higher from 2.49% on October 23, 2013, has been terrifically destabilizing to the Retail Industry, XRT, and its dividend paying leaders Walmart, WMT, and Nordstrom, JWN, as is seen in their combined Yahoo Finance Chart.

 

D) On Thursday, May 15, 2014, at market open, the Interest Rate on the US Ten Year Note, ^TNX, traded sharply lower to 2.50%, as the bond vigilantes anticipated huge flows out of Equity Investments and into Credit Investments, as is seen by Aggregate Credit, AGG, blasting to a new all time high, while Junk Bonds, JNK, traded lower.  The Steepner ETF, STPP, plummeted, reflecting a flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as investors flocked to “so called” safety in US Ten Year Notes, TLT.

 

World Stocks, VT, traded sharply lower as investors sold Solar Energy, TAN, Nasdaq Internet, PNQI, Media, PBS, Biotechnology, IBB, Energy Production, XOP, Energy Service, OIH, Small Cap Industrials, PSCI, Global Industrial Producers, FXR, Retail, XRT, Internet Retail, FDN, Resorts and Casinos, BJK, Aerospace and Defense, PPA, Design Build, FLM, Transports, XTN, and Small Cap Pure Growth, RZG.

 

Nation Investment, EFA, and Small Cap Nation Investment, SCZ, traded sharply lower, as Greece, GREK, Ireland, EIRL, Italy, EWI, Portugal, PGAL, Spain, EWP, Finland, EFNL, Austria, EWO, France, EWQ, European Small Cap Dividend, DFE, as well as UK Small Caps, EWUS, traded lower.

 

Global Financials, IXG, traded sharply loweras Regional Banks, KRE, led by HBAN, FITB, and RF, European Financials, EUFN, led by the National Bank of Greece, NBG, Ireland Bank, IRE, and Spain’s Bank, SAN, and the Too Big To Fail Banks, RWW, led by Bank of New York Mellon, BK, Citigroup, C, and Bank of America, BAC, traded lower.

 

Base Metals, DBB, traded strongly lower.

 

Yield Bearing Investments trading lower included Leveraged Buyouts, PSP, Smart Grid, GRID, and Water Resources, PHO.

 

Dividends Excluding Financials, DTN, traded lower.

 

The death of currencies, and also the failure of credit, that is failure of trust in the monetary policies of the world central banks to continue to provide investment gains and global economic growth on May 13, 2014, comes from the Rider on the White Horse seen in Revelation 6:2, being given a crown, that is the authority to rule over the nations, with the Bow of Economic Sovereignty, calling Interest Rates higher from 2.49%, and is exemplified in the trade lower in Ireland, EIRL, Italy, EWI, Greece, GREK, and the European Financials, EUFN, coming from the strong trade lower in the Euro, FXE, and has commenced destructionism, replacing the former inflationism, as the dynamic of economic activity.

 

Through the First Horseman’s endeavors, a One Euro Government, that is a fiscal, banking, and totally fascist economic union, will emerge in the Eurozone; it will be the model for policies of regional governance, and schemes of totalitarian collectivism in all of the world’s ten regions.

 

Largely through the work on the soon to be revealed Sovereign, seen in Revelation 13:5-10, and his economic high priest, the Seignior, seen in Revelation 13:11-18, the EU’s power will become so great, that it will be the preeminent world power.

 

Investors deleveraged out of Currency Carry Trades, in Argentina’s EDN, YPF, TEO, EBR, TGS, PAM, in Norway’s STO, in Brazil’s EBR, TSU, CPL, in Philippines’ PHI, in Chile’s SQM, in Columbia’s CIB, in Turkey’s TKC, and in South Africa’s SSL.

 

Investors deleveraged out of the Euro Yen Carry, EUR/JPY, in TOT, E, IR, CRH, RYAAY, TI, ALU, AER, CBI, ING, STM, CSTM, ASMI, LYB, ST.

 

Investors sold out of US Refiners, VLO, MPC, PSX, HFC, on the trade lower in the Euro, FXE.

 

Investors derisked out of Debt Trades, Leveraged Buyouts, PSP, Japanese Credit, IX, and Rental Properties, BX, Management Services, TOWR, BAH, Rental and Leasing, URI, Industrial Office REITS, FNIO, such as CUBE, STWD, DCT, EGP, EXR, HAS , PSA, SIR, BXP.

 

May 13, 2014, was a pivot point in mankind’s economic history. Major World Currencies, DBV, such as the Euro, FXE, are now trading lower; this means a soon coming crush of investment in Global Growth, DNL.

 

There are no investable markets anymore. Ireland, EIRL, was the crown jewel of debt trade investing and currency carry trade investing, in the age of credit and the age of currencies. Now with Ireland’s Bank, IRE, and its companies, JHX, IR, CRH, RYAAY, XL, ACN, trading lower.  Ireland, Italy and Greece are the age of debt servitude loss leaders.

 

The death currencies, that is the wheels of economic activity, means the dissolution of traditional governance, this being clearly seen in Revelation 6:2, where the Rider on The White Horse is given “Stephanos” or “Victor’s Crown,” as a reward for his victories which are prolonged and bloodless.

 

A global economic crash is coming as investors derisk out of debt trades and deleverage out of currency carry trades. Fiat money will be replaced by diktat money, that is the mandates of regional fascist leaders for regional security, stability, and sustainability.

 

Democratic governance will be replaced by regional fascismas foretold in bible prophecy of Daniel 2:20-45, and in Revelation 13:1-4.

 

E) On Friday, May 16, 2014

World Stocks, VT, traded unchanged. Sectors trading lower included Solar Energy, TAN, China Technology, CQQQ, Energy Production, XOP, Steel, SLX, and Global Industrial Miners, PICK.

 

Nation Investment, EFA, traded unchanged as India, INP, India Small Caps, SCIN, and its banks, IDB, HDB, traded vertically higher, as currency traders called the India Rupe, ICN, higher, taking Emerging Market Currencies, CEW, Emerging Markets, EEM, Emerging Market Infrastructure, EMIF, and Emerging Market Corporate Bonds, EMCD, Emerging Market Bonds, EMB, and Emerging Local Currency Bonds, EMLC, to new rally highs.  Tremendous short selling opportunities manifested in India’s Bank, HDB, IBN, and Industrials, TTM, SSLT.

 

Keith Jones of WSWS posts BJP Sweeps To Power In India. India’s BJP regime will be a government of extreme crisis, tasked with implementing socially incendiary “pro-market” reforms in the face of popular opposition. Antiwar posts Ultranationalists Win India Vote, Modi Swept Into Power. The BJP has won praise for its economic and anti-corruption policies, but has pushed draconian “anti-terror” laws in the past, and Modi’s own policy seems particularly extreme, even by his party’s standards, toward India’s Muslim minority. And WSWS posts India’s watershed election. The BJP’s victory and the collapse of the Congress and Stalinist parties reflect a realignment of Indian politics presaging a vast intensification of the class struggle

 

Small Cap Nation Investment, SCZ, traded lower as Greece, GREK, the UK Small Caps, EWUS, traded lower, on this weeks lower Euro, FXE, and lower British Pound Sterling, FXB.

 

Global Financial Institutions, IXG, traded unchanged

 

Dividends Excluding Financials, DTN, traded unchanged.

 

In Yield Bearing Investments, Leveraged Buyouts, PSP, which had been propelled higher by Merger and Acquisition, M&A, investing, and European Small Cap Dividend, DFE, traded lower.

Aggregate Credit, AGG, traded slightly lower from its market rally high as 30 Year Government Bonds, EDV, 10 Year US Government Notes, TLT, and Junk Bonds, JNK, traded higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher to close the week at 2.52%.

 

One being a long-end treasury bull this year, has been most rewarding, as a bear market commenced in the growth stocks. This being see in the ratio of the 30 Year US Government Bonds, EDV, relative to the Ten Year US Treasury Notes, TLT, that is EDV:TLT, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, has flattened, which is seen in the Steepner, ETF, STPP, flattening.  Now, this is very much overbought strategy, as the flight to safe haven investment from the riskiest of risk assets, SOCL, PNQI, FDN, IBB, PBS, ITB, IAI, IGV, RZG, and into the highest yielding of US Government Debt, EDV, is over, as is seen in their ongoing Yahoo Finance Chart.  Yield curve risk is going to rebound very soon, causing the Steepner, ETF, STPP, to steepen; yield scarcity is going to end very soon.

Credit Bubble Stocks reports Conrad Industries Announces First Quarter 2014 Results.  Inasmuch as the age of buy and hold investing is over, through, finished and done, the high flying over the counter stock, CNRD, is a Small Cap Pure Growth Company, RZG, that should be sold short.

 

One should be invested in a non-dollar wealth preservation strategy. Spot Gold,$GOLD, closed at $1,298; it is in an Elliott Wave 3 Up, on its way to an Elliott Wave 5 High. There is coming an investment demand for gold as investors move out of the Defensive Stocks, DEF, that is Global Utilities, DBU, Utilities, PUI, XLU, Energy, XOP, IPW, Consumer Staples, KXI, Transports, XTN, Insurance companies, KIE, Real Estate, IYR, Global Real Estate, DRW, and into Gold, GLD.

 

Sprout posts Governments Will Loot Pensions, Savings – Hold Onto Your Gold. In God We Trusts aks Are The London Gold Vaults Running Empty? Ron Paul relates in Kitco News  Gold Eins Out In The End.

 

Jack Chan posting in Safehaven This Week In Gold, presents the chart of the Gold ETF, in a consolidation triangle from which it will either pop higher or fall lower. His chart of the Gold Miners, GDX, shows a significant breakdown; these have disconnected from the price of gold and have utterly failed to leverage higher over gold.

 

In the age of the failure of credit, wealth is preserved only by the safe storage and physical possession of gold bullion.

 

II) An inquiring mind asks, did economics fail?

Long and Variable asks Did Economics Fail? And Mainly Macros responds Yes, Economic Policy Did Fail.

 

I am a Dispensationalist, meaning that I believe that Jesus Christ is in charge of economics, more specifically He is in stewardship of all things under heaven and upon earth in every epoch, and tasked with bringing them to maturity and completion, much like a ship’s captain completes the manifest before setting sail.

 

Hence in no sense, did economics fail.

 

Christ developed the age of billionaires as Julie Hyland writes in WSWS Britain has more Than 100 billionaires, Says Sunday Times Rich List. The Times figures show that the UK now has one billionaire for every 600,000, the highest concentration in the G8. And Andre Damon of WSWS posts The Wall Street Bonanza. The vast redistribution of wealth from the bottom to the top that has taken place since the 2008 crash is expressed in the colossal rise in stock prices, which have nearly tripled since March 2009.

 

And Christ developed the age of credit with Paulson’s Gift, also known as Bernanke’s QE1, where the Fed Chairman regenerated trust in the banking system and its ability to stimulate economic growth via trading out “money good” US Treasures, EDV, TLT, for the most toxic of all debt, that being Distressed Investments, such as those traded in Fidelity Mutual Funds, FAGIX, mutual fund.

 

Buy and hold investor Eddy Elfenbein posts The S&P 500 And Its Earnings. Wall Street currently expects earnings of $120 for the S&P 500 this year, and $137 for 2015. If the index trades at 16 times next year’s earnings by the end of next year, then the S&P 500 would be at 2,200. That’s a gain of 17.5% over the next 19.5 months.

 

Peak credit experience in fiat money came Tuesday May 13, 2014, with the Dogs of Debt Mutual Fund, FAGIX, yielding 4.5%, topping out in value. Its terrific rise documents that the Banker Regime skill in ruling in a debt based money system.

 

Look for Popular Notes And Bonds, SHY, EU, TLT, ZROZ, FLOT, LQD, LWC, PICB, BWX, MBB; and look for High Yielding Debt, JNK, LWC, EU, EMB, HYD, EMLC, EMCD, BABS, HYXU, PZA, to begin to fall first and hardest.

 

There were two significant deaths the week ending May 16,2014. The first death was that of Milton Friedman’s age of floating currencies, on the trade lower in the Euro, FXE,  the Swiss Franc, FXC, and the British Pound Sterling, FXB, and the second death was that of Ben Bernanke’s age of credit.

 

Having created the perfect moral hazard peak wealth on Tuesday May 13, 2014, with the S&P 500, SPY, manifesting a blow off market top, Jesus Christ has closed the chapter on the book of economic life, which reads the age of gilded wealth, and has set sail on a new mission, that is the destruction of all fiat money and fiat wealth. He will in relatively short time accomplish his purpose of establishing absolute poverty, with the activity of the Beast Regime, replacing the activity of the Creature from Jekyll Island, as foretold in Daniel 7:7.  Tuesday May 13, 2014, was a pivotal day in the economy of God, as His Son, pivoted the world out of the dispensation of credit driven prosperity, and into the dispensation of debt servitude driven austerity.

 

The Free Market is gone forever. Disinvestment out debt trades and currency carry trades will cause the much feared economic deflation, and will quite soon cause Financial Armageddon, that is a global credit bust and worldwide financial system breakdown, foretold in Revelation 13:3-4.

 

It is out of this crisis that the Beast Regime of regional economic governance and totalitarian collectivism, seen in Revelation 13:1-4, will rise to rule the entire world, in policies of diktat and schemes of totalitarian collectivism, as leaders meet in summits to renounce national sovereignty, and announce regional pooled sovereignty, which will come through regional framework agreements. People will come to trust in a cadre of regional fascist leaders who establish regional fascism for regional security, stability, and security, where their diktat serves as the new money replacing fiat money.

 

UK Conservative MP John Redwood posts Let People Express Their Identity. One of the worst features of the EU is the way it wants to suppress people’s natural senses of identity. England is the country they do not allow on a map. At the very least the Ukrainian government should talk to the rebels. Sending in the army and trying to remove them by force is not the right answer, and will intensify the civil war in the making. It will increase the bitterness on both sides. The Ukrainian regime needs to discuss whether a much greater degree of autonomy within the Ukraine would satisfy enough easterners. Are there guarantees that the Ukrainian government can offer on  Russian language and customs that would be credible? If it is not possible to find a way of jointly governing in the Ukrainian state, then the Ukrainian government needs to offer a legal and properly organised referendum with sensible propositions on the ballot paper that could attract consent. The EU that has played an important part in fomenting regional identities which may now affect not just the individual member states but also EU policy itself.

 

Clearly bible prophecy of Revelation 13:1-4, and Daniel 2:25-45, where regional economic governance replaces democratic nation states, is being fulfilled, as the singular dynamo of regionalism is powering up economic activity, as the dynamos of creditism, corporatism and globalism are winding down on the failure of trust in the monetary policies of world central bank to provide investment gain and global economic growth.

 

The age of floating currencies, and the age of credit, is history, given the trade lower in the Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB. The rule of Wall Street Bankers, BAC, C, JPM, and City of London Bankers, PUK, LYG, BCS, HSBC, RBS, is diminishing. Said another way the role of what Doug Noland terms wildcat finance is history.

 

At the power of the Rider on the White Horse of Revelation 6:1-2, the age of debt servitude is dawning, with the rise of undollar, regional bartering agreements. The rule of regional fascist economic leaders is increasing. Said another way, the role of wildcat governance, where regional leaders bite, rip, and tear one another apart to see who will be top dog, is the new normal.

 

Peter Symonds of WSWS posts Australian Budget Ends Age Of Entitlement. The budget sets new global benchmarks for dismantling the welfare state established following World War II

 

God’s foreordained plan is unfolding. There be no longer any citizens having national identity; rather all be residents of regional panopticons of debt servitude.

 

Zero Hedge posts Hedge Russia Holds “De-Dollarization Meeting”: China, Iran Willing To Drop USD From Bilateral Trade. And Business Insider posts Forget Sanctions Over Ukraine: Russia Scores Massive Gas Pipeline Deal With China. And International Man posts The Collapse Of The International Monetary System And The Petrodollar. And ETF Daily News posts Russia Is On The Verge Of Dealing A Massive Blow To The Petrodollar. And GoldSilverWorlds posts The Fall Of The Dollar Based Monetary System. This as AP reports Foreign Holdings Of US Treasury Debt Hits Record.

 

Jerry White of WSWS posts Detroit Serves As The Model: Permanent Rule By The Banks. The Michigan legislature is debating a series of bills to impose a permanent financial authority on Detroit that would remain in place long after the city emerges from bankruptcy

 

The dynamic of inflationism that came with the creation of the US Fed in 1913, and which intensified in 1971 when President Nixon took the US off the gold standard and let currencies float at the advice of Milton Friedman, and in 1999 when the Euro was introduced and when the Glass Steagall Act was repealed, and in 2008, when Ben Bernanke’s commenced QE1, creating the age of credit, that is the age of trust in the monetary policies of the world central banks, is history.

 

What are currencies? Currencies are the wheels of economic systems, such as capitalism communism, and socialism.

 

The death of the Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB, on May 13, 2014, defines not only the failure of the age of credit, but also the failure of the sovereignty and the seigniorage, that is the moneyness, of the Banker Regime, consisting of democratic nation states and the speculative leveraged investment community.

 

The age of profitable fixed income investing is over, with the result, that the fixed income investor as well as all investors, are going extinct. It’s Global ZIRP no more, as investors no longer trust in the monetary authority of the world central banks to stimulate investment gains and global growth.

 

The age of profitable global growth investment is gone. Global Growth Outside the US, DNL, has topped out, this on the peaking out of the debt trade, as is seen in Ultra Junk Bonds, UJB, and Junk Bonds, JNK, peaking out.

 

The age of vice investing, that is investing in vice is history as Benso te asks Has Macau’s Casino Bubble Been Pricked?  And as the chart of the Vice Fund, VICEX, and stocks, LMT, RTN, UTX, LO, BTI, RAI, WYNN, MGM, TAP, communicates.

 

The end has come to Pursuit Of Yield Investing, with the result that Dividends Excluding Financials, DTN, and High Yielding Debt, such as JNK, LWC, EU, EMB, HYD, EMLC, EMCD, BABS, PZA, EMLC, HYXU, have peaked out.

 

Profitable investing in silver mining companies is over. SRSrocco Report posts US Mint Sells More Silver Eagles In A Week Than Gold Eagles Over 3 Years. I comment that Silver, SLV, although bought by the wise as a medium for bartering, is a product used in the production of economic goods.

 

Seeking Alpha posts The Investment Case Appears To Be Broken For Silver Standard Resources Inc.

SSRI has been one of the most carry trade investments of all times; and that the charts of Silver Miners, SIL, and the Junior Silver Miners, SILJ, are bearish. Casey Research reports  The London Silver Fix To Be Scrapped.

 

The Milton Friedman Free To Choose era, came to an end on Tuesday May 13, 2014, with the trade lower in the Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB. And the Ben Bernanke Credit era, came to an end as Eurozone Nations, EZU, Portugal, PGAL, Ireland, EIRL, Austria, EWO, and Italy, EWI, traded lower; as Ireland’s Bank, IRE, and the National Bank of Greece, NBG, traded lower; and as European Credit, EU, traded lower.

 

The age of diktat and the age of debt servitude, will come through the death of fiat money, which is defined as Aggregate Credit, AGG, together with Major World Currencies, DBV, and Emerging Market Currencies, CEW, and will feature the new money, that being diktat money, defined as the mandates of regional fascists designed to establish regional security, security and sustainability.  One can follow the failure of currencies with this Finviz Screener of Currency ETFs.  One can follow the collapse of the Global Financial Institutions with this Finviz Screener of the World’s Leading Banks.

 

The US Fed’s and the ECB’s Policy Statements were fully worthy of risk-on investing; but now that investment greed has turned to fear, risk-off investing is the order of the day.

 

Out of ashes of currencies, the new economic system of regionalism will rise to serve as a basis of economic activity of debt servitude. Diktat will be the wheels upon which regional economies function, and will be a continuation of the Troika’s technocratic governance.

 

Bible prophecy of Daniel and Revelation, communicates that there is waiting in the wings of Europe’s stage, the most capable of economic leaders; soon he will step into the limelight and take up his ordained rule. He is described as The Little Horn,Daniel 7: 7,8, Another King,Daniel 7:20-25, The Lawless One,2 Thess 2:3-10, The One Opposed to Christ,1 John 2:18, And The Sovereign Revelation 13:5-10.  His rise to power will be accompanied by The Seignior, Revelation 13:11-18, meaning top dog banker, who in coining money takes a cut.

 

A new basis of trust is coming. Bible prophecy of Revelation 13:3-4, communicates that people will follow after and give homage to the diktat of the Beast Regime, which will rule sovereignly in all of the world’s ten regions, and occupy in seigniorage in every one of mankind’s seven institutions.

 

III)  Is there Global Warming or Is there Ice Age Winter?

A) Paul Krugman asks, Can anything reverse the growing hostility to science within the Republican Party?

He writes Points of No Return. Recently two research teams, working independently and using different methods, reached an alarming conclusion: The West Antarcticice sheet is doomed. … Even if we took drastic action to limit global warming right now, this particular process of environmental change has reached a point of no return.

Meanwhile, Senator Marco Rubio of Florida, much of whose state is now fated to sink beneath the waves confidently declared the overwhelming scientific consensus on climate change false, although in a later interviewhe was unable to cite any sources for his skepticism.

 

So why would the senator make such a statement? The answer is that like that ice sheet, his party’s intellectual evolution (or maybe more accurately, its devolution) has reached a point of no return, in which allegiance to false doctrines has become a crucial badge of identity.

I’ve been thinking a lot lately about how support for a false dogma can become politically mandatory, and how overwhelming contrary evidence only makes such dogmas stronger and more extreme. To see how it works, consider a topic I know well: the recent history of inflation scares.

Inflation phobia has always been closely bound up with right-wing politics; to admit that this phobia was misguided would have meant conceding that one whole side of the political divide was fundamentally off base about how the economy works. So most of the inflationistas have responded to the failure of their prediction by becoming more, not less, extreme in their dogma.

The same kind of thing is clearly happening on the issue of global warming.As the evidence for a changing climate keeps accumulating, the Republican Party’s commitment to denial just gets stronger.

 

Andtruly crazy positions are becoming the norm. A decade ago, only the G.O.P.’s extremist fringe asserted that global warming was a hoax concocted by a vast global conspiracy of scientists (although even then that fringe included some powerful politicians). Today, such conspiracy theorizing is mainstream within the party, and rapidly becoming mandatory;witch hunts against scientists reporting evidence of warming have become standard operating procedure, and skepticism about climate science is turning into hostility toward science in general.

It’s hard to see what could reverse this growing hostility to inconvenient science. As I said, the process of intellectual devolution seems to have reached a point of no return. And that scares me more than the news about that ice sheet

 

B) Elaine Meinel Supkis claims the world is in a period of global cooling.

She writes Blizzards In Rocky Mountains: History Of El Ninos Shows Increasing Cooling Since Medieval Warm Period

 

C) The new normal is destructive weather.

Business Standard relates Nature Magazine posts Intensity Of Tropical Cyclones Shifting Poleward. A new study suggests that the intensity of tropical cyclones is shifting poleward. According to the study, the latitude at which tropical cyclones reach their greatest intensity is gradually shifting from the tropics toward the poles at rates of about 33 to 39 miles per decade. The new study was led by Jim Kossin, a National Oceanic and Atmospheric Administration (NOAA) National Climatic Data Center scientist stationed at the University of Wisconsin-Madison’s Cooperative Institute for Meteorological Satellite Studies. The research documents a poleward migration of storm intensity in both the Northern and Southern Hemispheres through an analysis of 30 years of global historical tropical cyclone data.

The term “tropical cyclone” describes a broad category of storms that includes hurricanes and typhoons, large and damaging storms that draw their energy from warm ocean waters. The findings are important, Kossin said, because they suggest that some areas, including densely populated coastal cities, could experience changes in risk due to large storms and associated floods and storm surges. Regions closer to the equator, he noted, could experience a reduced risk, and places more distant from the equator could experience an increased risk. The trend observed by Kossin and his colleagues is particularly important given the devastating loss of life and property that can follow in the wake of a tropical cyclone. The study is published in the journal Nature.

 

 

IV)  Headline Inflation is seen increasing.

The failure of credit is evidenced in Floating Rate Notes, FLOT, trading lower from its market high and in World Stocks, VT, unable to leverage higher over Aggregate Credit, AGG, that is VT:AGG, is trading lower; and in the ratio of the Long Term Tips, LTPZ, to 30 Year US Government Bonds, EDV, that is LTPZ:EDV, is trading higher, and in the Proshares UltraPro 10 Year TIPS/TSY Spread, UINF, trading higher. Out of the failure of credit, Headline Inflation is seen in the Reuters report Consumer Prices Post Biggest Gain In 10 months.

 

Eddy Elfenbein posts Disinflation Is (Probably) Over. Interesting market action today. The stock market is currently down about 0.9%. We had three big economic reports this morning. The first, and probably the biggest, is the U.S. Industrial Production which dropped 0.7% in April. This caught Wall Street off guard. The consensus was for an unchanged report. However, the March report was revised higher to a gain of 0.9%.

The initial jobless claims report dropped to 297,000 which is the lowest figure in seven years. This matches the report from May 12, 2007. Today’s report may hint of another good monthly jobs report. The May jobs report won’t come out until June 6.

The other report showed that consumer prices rose by 0.3% last month. I say this rather tentatively, but I think the evidence now says that disinflation is over. Please note that this isn’t quite the same as saying that inflation is definitely moving upward. It’s simply stopped trending down (I think).

 

V) Holiness and truth are the only trustworthy things.

On Tuesday May 13, 2014, The Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB, all started to die as a currency. Currency traders sold the Euro, FXE, as well as the Swiss Franc, FXF, and the British Pound Sterling, FXB; the Euro, FXE, closed the week lower at 136.25.

 

The see saw destruction of fiat wealth commenced in the Eurozone on the failure of credit. specifically the failure of trust in the world central banks to continue to stimulate investment gains as well as global growth. With the trade lower in the Eurozone Nations, Ireland, EIRL, Italy, EWI, Greece, GREK, European Small Cap Dividends, DFE, and the European Financials, EUFN, the world has passed through an inflection point: the world has pivoted from the age of currencies and the age of credit, into the age of diktat and the age of debt servitude; as the sovereignty and seigniorage of the Banker Regime has failed to support ongoing investment gain and global growth; out of the ashes of failed debt trades and currency carry trades the sovereignty and seigniorage of the Beast Regime, foretold in Daniel 2:20 and Revelation 13:1-4, will rise to provide regional security, stability and sustainability.

 

On Wednesday May 14, 2014, there was a stock market reversal as Volatility, ^VIX, XVZ, traded higher, as the S&P 500, SPY, traded lower from its blow off market high, as Aerospace, PPA, such as LMT, Semiconductors, SOXX, such as MU, TXN, Retail, XRT, such as KORS, DDS, JWN, Consumer Services, IYC, such as, DIS, Global Industrial Producers, FXR, such as WHR, FLS, HON, PPG, DOW, CAT, ETN, IR, Design Build Companies, FLM, such as Fluor, FLR, Business Services, such as DLX, ADP, Major Energy Companies, such as CVX, Industrial Textiles, such as MHK, and Transports, XTN, such as UNP,  DAL, SWFT, traded lower.

 

On Thursday May 15, World Stocks, VT,  Nation Investment, EFA, specifically Ireland, EIRL, Italy, EWI, and Greece, GREK, and Dividends Excluding Financials, DTN, traded strongly lower from their market highs, evidencing the failure of credit, that is trust in the world central banks’ monetary authority to simulate investment gain and global growth.

 

Eight factors evidence the failure of credit; these include the trade lower in the following:

1) The Russell 2000, IWM, IWC, traded lower as the credit sensitive Small Cap Pure Value Stocks, RZV, the Small Cap Pure Growth Stocks, RZG, the Small Cap Industrials, PSCI, the Small Cap Consumer Staples, PSCC, the Consumer Recreational Goods, POOL, THO, WGO, PII, ESCA, traded lower, on the traded lower in Regional Banks, KRE.

2) Eurozone Nations, EZU, Portugal, PGAL, Ireland, EIRL, Italy, EWI, Austria, EWO, and Greece, GREK, traded lower.  Ireland’s Bank, IRE, and the National Bank of Greece, NBG, traded lower; these are shown the way is lower in the European Financials, EUFN.

3) European Credit, EU, traded lower.

4) Credit Services, AXP, NNI,V, PRAA, DFS, FCFS, AGM, SLM, CACC, ECPG, CIT, MA, HEES, URI, traded lower

5) Homebuilders, XHB, and ITB, traded lower; and US Infrastructure, PKB, such as MWA, FTK, WSO, FLT, MMM, AAON, and PRIM; and Building Materials, and Manufactured Housing, CVCO, traded lower.

6) Life Insurance Companies, such as PUK, SYA, GNW, traded lower.

7) Industrial Textile Manufacturers, DXYN, UFI, AIN, MHK, traded lower.

8) Leasing Companies, HEES, URI, CAR, HTZ, UHAL, GMT, TGH, AER, traded lower

 

On Thursday, May 15, 2014, at market open, the Interest Rate on the US Ten Year Note, ^TNX, traded sharply lower to 2.50%, as the bond vigilantes anticipated huge flows out of Equity Investments and into Credit Investments, as is seen by Aggregate Credit, AGG, blasting to a new all time high.  The Steepner ETF, STPP, plummeted, reflecting a flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as investors flocked to “so called” safety in US Ten Year Notes, TLT, as Ireland, EIRL, Italy, EWI, Greece, GREK, the Eurozone Small Cap Dividends, DFE, and European Financials, EUFN, traded strongly lower.

 

The death of currencies, specifically the Euro, the Swiss Franc, and the British Pound Sterling, and the failure of credit, seen in the Eurozone Stocks, EZU, and the European Financials, EUFN, trading lower, has commenced destructionism, replacing the former inflationism as the dynamic of economic activity.

 

Ongoing falling Major World Currencies, DBV, and soon coming falling Emerging Market Currencies, CEW, means the crush of investment in Global Growth, DNL. While Econobrowser posts Estimates Of Monthly GDP Indicate A Rebound, So Too Do Forecasts, there are no profitable investment markets anymore. Ireland, EIRL, was the crown jewel of debt trade investing and currency carry trade investing, in the age of credit and the age of currencies; now with IRE, JHX,  IR, CRH, RYAAY, XL, ACN, trading lower, it is one of the age of debt servitude loss leaders. The death of the wheels of economic activity, that is currencies, means economic deflation, and the dissolution of traditional governance. Fiat money will be replace by diktat money. And democratic governance will be replaced by regional fascism, as communicated in Bible Prophecy of Daniel 2:20-45 and Revelation 13:1-4.

 

In the age of credit, and in the age of currencies, people trusted in the investment choice of the Banker Regime. A new basis of trust is coming. Bible prophecy of Revelation 13:3-4, communicates that people will follow after and give homage to the diktat of the Beast Regime, which will rule sovereignly in all of the world’s ten regions, and occupy in seigniorage in every one of mankind’s seven institutions.

 

William Pesek posts The Kuroda Put Is Coming. Global markets long ago got used to the “Greenspan put.” But they haven’t seen anything like the “Kuroda put” that Japan’s central bank governor may soon implement.

 

Ignore today’s dramatic Japanesegrowth figures. When you raise sales taxes in a deflation-wracked economy for the first time in 17 years, you’re going to get a surge in anticipatory shopping. Therein lies the explanation to the 5.9 percent jump in gross domestic product in the first quarter from the previous one. But do pay attention to Haruhiko Kuroda’s comments after the data were released: The urgency to increase Japan’s growth is increasing.

 

Paul Sheard, chief global economist at Standard & Poor’s, thinks Kuroda’s Bank of Japan may soon “double or even triple down” on the size of its already huge monetary easing. The 12 percent rout in Japanese equities this year is irking the ruling Liberal Democratic Party. The pressure is on Kuroda to do more than just double bond purchases as he did a year ago — much more. Hence the chatter about a Kuroda put.

 

The monetary put concept became a matter of market convention duringAlan Greenspan‘s 1987-2006 tenure as Federal Reserve chairman. Greenspan rarely saw a disturbance in the economy that didn’t warrant a market-soothing injection of credit. Kuroda has thus far adopted a quieter strategy; much of the BOJ’s market-supporting efforts have involved buying up government bonds, in contrast to the gong-ringing moves Greenspan favored.

 

That’s about to change. Kuroda is finding that his monetary largess isn’t boosting credit creation as hoped. Inflation, yes, as Japan imports more energy with a weaker yen. But the kind of monetary multiplier effect the BOJ hoped to unleash by now remains elusive, as the experience of Mizuho Financial Group and Japan’s other two biggest banks demonstrate. All three are forecasting a drop in earnings for this year as loan growth loses momentum and returns from stock investments wane.

Kuroda is a respected economist who’s staked his entire legacy on ending Japan’s deflation. What’s more, Prime Minister Shinzo Abe isn’t coming through with sweeping structural reforms to boost consumer demand and business confidence.

However unfairly, that puts the onus on Kuroda. It also places Japan in uncharted territory. Will bond traders sit back passively if the BOJ adds lots more stimulus to the economy? It’s impossible to tell.

 

Serendipitously, Greenspan re-entered the debate this week, telling a Washington forum that it’s a mistake to believe that inflation isn’t a threat. Of course, that’s a bit rich coming from a man whose legacy is more “Mr. Bubble” than “Maestro,” the title of Bob Woodward’s gushing 2001 biography. Still, Greenspan isn’t alone inwondering whether the surprising 0.6 percent surge in U.S. producer prices in April is an aberration or a sign of trouble to come.

 

One challenge for Kuroda is filling the void that the Janet Yellen Fed appears set on creating. As the U.S. central bank tapers, the BOJ may feel compelled to offset any loss of global liquidity,  especially if it hits demand in China, Japan’s biggest customer. The odds don’t favor a big inflation problem in Japan. The nation’s fast-aging population and China’s slowdown could just as easily exacerbate deflationary forces. But the question is what the bond vigilantes do.

 

Japan gets away with the world’s biggest debt burden because more than 90 percent of government debt is held domestically. That doesn’t ensure that banks, pension funds, insurance companies and retirees will sit by passively if they fear the BOJ is going the way of Weimar Germany. Only time will tell if the Kuroda put can maintain calm in global markets. But it’s far from a sure bet.

 

Please consider the concept of the Apostle Paul, that Jesus Christ is the mastermind of the economy of God; that is that He is responsible for designing, maturing and completing all things economic in every paradigm and age. And that He built the very end of age of credit and age of currencies, with little regard for the worker and employment;  He had the greatest regard for the investor and investment gain; with the reason being He wanted to perfect moral hazard

 

The age of currencies, was fathered by Milton Friedman with his Free To Choose Manifesto, and the age of credit was fathered by Ben Bernanke with his QEs, Mario Draghi with his LTRO1, 2, and OMT, and Hiroki Kuroda, with this Abenomics. Each genius provided his own credit stimulus for trust in risk on investing; these birthed and defined the investor as the centerpiece of economic activity. Their provision of credit centered on providing seigniorage, that is moneyness, for investment gain, and very little for recovery from the Great Recession, and have resulted in peak moral hazard.

 

Beginning the week ending May 16, 2014, an unwinding of the Euro Yen Currency Carry Trade, that is EURJPY in Ireland, EIRL, Greece, GREK, Italy, EWI, and a derisking out of the European Financials Debt Trade, EUFN, has terminated all liberal things worthy of trust, such as a university education, home buying, and fiat wealth investing, which have been based upon monetary policies of democratic nation state governance and schemes of credit provided for investment gain.

 

Out of soon coming economic chaos, people will come to trust in new monetary and economic policies of regional economic governance and schemes of debt servitude to establish regional security, stability, and sustainability, where the debt serf will be the centerpiece of economic activity.        

 

What is truth? Truth is that which is reliable for belief, or that which is a trustworthy promise.

 

Countless many fail to perceive truth, and having no holiness, will be swept away by the soon coming cataclysms. Jesus foretold that countless many would have no idea of end time events which will bring on cataclysm after cataclysm. “As it was in the days of Noah, so it will be at the coming of the Son of Man.  For in the days before the flood, people were eating and drinking, marrying and giving in marriage, up to the day Noah entered the ark; and they knew nothing about what would happen until the flood came and took them all away. That is how it will be at the coming of the Son of Man.”

 

Randy A Brown writes I Come Quickly … Hold Fast.  Jesus says in Revelation 3:11, “Behold I come quickly”. Those who persevere and hold fast in truth and holiness, will be given crowns at the Bema Seat of Christ.

 

Jack of the Oak Pulpit writes Casting Crowns. There are two words for “crown” in the New Testament: diadema, which means “a royal crown” and gives us the English word diadem; the second word for crown is stephanos, the “victor’s crown”.

 

The Greek word for crown, diadema, carries that meaning.  It comes from two words which literally mean “to bind (deo) through (dia),” as twisting the ends of an olive branch through each other to make a circle.  Diadema is one of two words for “crown” in the N.T.

 

The word diadema refers to the crown of a king.  It is a crown given to honor one’s position in life.  It is given to someone who possessed the right to be a king, usually by lineage. You could not in the usual case win a diadem as a reward.

 

The other word for crown,  stephanos, refers to a twisted branch, usually of the olive tree, that was awarded to the winner of a contest—as in the ancient Olympics.  It was something one “earned” through performance.

Here’s five crowns that can be gained by believers

 

IV) I have been blogging for four years; it has been a life transforming experience for me.

With the use of Google Documents and Finviz Stock Screener, I have spent eight hours a day, six days a week since May of 2010, blogging on the concepts of sovereignty and seigniorage, in the economy of God, that is the stewardship of Jesus Christ, a concept presented by the Apostle Paul in Ephesians 1:10.

 

One of the first articles I wrote wasEU Finance Ministers Reach Accord For EFSF Monetary Authority To Float Eurobonds To Aid Nations In Sovereign Debt Distress, The Euro Stability Task Force, of European Finance Ministers, led by Herman Van Rompuy, president of the European Council, has reached agreement on the technical aspects of the special purpose vehicle, SPV, that would borrow up to 440 billion euros with euro zone country guarantees for euro members in trouble.

 

The Euro was saved for the purpose of fully establishing and defining the investor as the centerpiece of economic activity, in debt trade investing and currency carry trade investing, so as to develop a peak moral hazard based prosperity, as well as to unite the polar opposite nordics and latins, in a regional gulag of debt servitude, which will emerge under the leadership of the soon rising Sovereign and Seignior, to be the world’s preeminent regional economically fascist and military power, as foretold in Revelation 13:1-8.

 

Today’s economic backdrop features a coup in the Ukraine as Antiwar posts Ukraine Declares Eastern Govts ‘Terrorist Orgs’. And Energy Sanctions Against Russia Would Be ‘Inappropriate’, EU Says. And Russia To Ukraine: We’ll Talk Gas Discount If You Pay Off Debt.

 

Residing in Bellingham, WA, has been a refuge of peace, where through the graciousness of others, I have come to the insights I have today.

 

Bellingham is a unique small city which has been transformed by real estate investing of gentrification and real estate investing in rental properties to students attending Western Washington University.

 

Bellingham is exemplary in improving its streets and water system infrastructure, with sidewalk, fire hydrants, turnabouts, storm drains, and bike lanes.

Economic tourists from Canada come to Bellingham to purchase gasoline at Costco, groceries at Winco Foods, and apparel at Bellis Fair Mall.

 

Entrepreneurial investment in unique service businesses has given the city a cultural renaissance, these include FurEver Friends Doggie Daycare and Grooming, Perch And Play, and Vital Climbing Gym.

 

I refuse to buy a vehicle; I say let the unsold vehicles continue to pile up in places where where the world’s unsold cars go to die, as Tyler Durden posts in Zero Hedge.

 

I anticipate moving on to new experiences; thanks for having visited my blog

World Stocks And Nation Investment Trade To New Rally Highs, But The Trade Lower In US Small Caps, Greece, And Chinese Stocks Establishes The Failure Of Credit

May 10, 2014

Financial market trading for the week ending Friday May 9, 2014

This post is available in Google Documents format here .

 

1) … World Stocks, VT, and Nation Investment, EFA, trade to a new rally highs; but the trade lower in the US Small Caps, Greece, and Chinese Stocks, establishes the failure of credit.

 

On Monday, May 5, 2014, the chart of the 10 Year US Government Note, TLT, manifested a dark cloud covering candlestick, and traded lower, after having risen parabolically higher. suggesting a reversal lower from its rally high is imminent.

 

On Tuesday, May 6, 2014, the US Dollar, $USD, traded by the 200% ETF, UUP, fell vertically lower at open, with the result that the Major World Currencies, DBV, traded to a rally high, led by the British Pound Sterling, FXB, and the Australian Dollar, FXA, which stimulated the UK, EWU, and Australia, EWA, to trade higher. The Euro, FXE, sprang higher to close at 137.52. Emerging Market Currencies, CEW, traded to a new rally high. The chart of the US Dollar, $USD, closed strongly lower at 79.15.

While Aggregate Credit, AGG, traded unchanged at its rally high, Junk Bonds, JNK, Emerging Market Local Currency Bonds, EMLC, International Corporate Bonds, PICB, and World Government Bonds, BWX, traded to new rally highs. The 10 Year US Government Note, TLT, traded slightly higher, but closed below its recent rally high, as the Benchmark Interest Rate, ^TNX, closed at 2.6%.

Reuters reports Wall Street Falls In Broad Selloff. The death of credit, and the pivot from the experience of investment choice into that of debt servitude, which commenced in April 2014, has accelerated. Global Financials, IXG, trading lower, intensifying as the National Bank of Greece, NBG, led Greece, GREK, as well as the Regional Banks, KRE, the Too Big To Fail Banks, RWW, and the Stockbrokers, IAI, led the US Small Caps, IWM, in particular the Small Cap Pure Growth, RZG, US Infrasturcture, PKB, Metal Manufacturing, XME, Nasdaq Large Caps, QQQ, and Retail, XRT, such as the Apparel Retailers, WTSL, ARO, ANR, EXPR, CBK, DEST, DXLG, PLCE, URBN, PSUN, lower.

The trade lower in services communicates the investors fear that the zenith of reward has been reached from investing in developing best practices and in developing technology used in corporate endeavors. Finviz Groups reports Services are leading the way lower this year. On Tuesday May 6, 2014, Trulia, TRLA, plummeted 8%; it provides internet tools to research homes and neighborhoods for consumers through Web and mobile applications; competitors include Z and MOVE.  And Towers Watson, TW, plummeted 9%; it provides consulting, technology and solutions in the areas of benefits, talent management, rewards, risk and capital management; competitors include, BAH, HURN, HIL, ICFI, CEB, EXPO, III, TMNG, and NCI. And Athenahealth, ATHN, plummeted 14% on Tuesday May 6, 2014; it provides an Internet-based practice management application; competitors include MDSO, WBMD.

Soon all fiat Equity Investments are following Global Financials, IXG, in trading lower. World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, SCZ, New York Composite, NYC, and Dividends Excluding Financials, DTN, as well as the Defensive Investments, DEF, Utilities, PUI, Consumer Staples, KXI, International Energy, IPW, Energy Production, XOP, and Real Estate, IYR, will be commencing their fall lower into the Pit of Financial Abandon on the failure of trust in the world central banks monetary authority to stimulate ongoing investment gain, as well as global economic growth; this as Zero Hedge posts Global Manufacturing PMI Plunges To 6-month lows.

One Of The Big Ideas of the Last 50 Years was the contribution of Milton Friedman who proposed the Free To Choose Floating Currency Regime. President Nixon took the US off the Gold Standard, and the US became the International Reserve Currency, which enabled the US to rise to become the global hegemonic kick ass empire, beginning with the Vietnam War, replacing the former hegemon, that being the British Empire.

Another Big Idea was Clientelism. Tim Hartford posts The Final Reckoning in Healthcare. People are too used to the idea that someone else, the state or an insurer, will pay the bill. Free choice is nice but what everyone seems to prefer is free treatment.

The Ultimate Big Idea was the schemes of Global ZIRP, which began when in 2008, when the US Fed traded out “money good” US Treasuries for Distressed Investments of all types, such as those traded in Fidelity Investments FAGIX Mutual Fund, and which provided the basis for global growth, and more importantly, to generate investment, in what would become the Summer Bloom and Fall Glory of the age of credit, that was underwritten by the Milton Friedman Free To Choose Architecture.

And the schemes of Global ZIRP continue even to now as Ed Yardeni posts Fed Is Stepping On Accelerator And Brakes (excerpt)  The Fed’s senior loan officersurvey released Monday showed that banks are not making it easier for potential homebuyers. The survey of 74 domestic and 23 foreign banks operating in the US shows that banks are holding loan standards steady for prime mortgages and have raised them for nontraditional and subprime loans over the past three months.

Fed officials have frequently stated that their ultra-easy monetary policy is aimed at keeping mortgage rates low to revive home sales. Their tapering talk last spring caused the 30-year mortgage rate to jump by about 100bps. It is still 82 bps above the May 2, 2013 low. Meanwhile, the Fed is subjecting the banks to regular stress tests, which discourages them from making risky loans to would-be homeowners. In other words, the Fed is tapping on the mortgage-lending brakes and the monetary accelerator at the same time. This hasn’t stopped banks from making lots of business loans secured by inventories and other working capital as is seen the chart Short Term Business Credit And Inventories.

Soon deleveraging and derisking out of World Stocks, VT, will stimulate Major World Currencies, DBV, and Emerging Market Currencies, CEW, to trade lower, beginning Kondratieff Winter where  regional currencies, and non-dollar bartering, that is undollar currency regimes, will govern economic relations. A Ten Toed Kingdom of regional government of iron diktat and clay totalitarian collectivism, seen in Daniel’s Statue of Empires of Daniel 2:25-45, will soon replace the former two world empires. Debt deflation will stimulate Aggregate Credit, AGG, to trade lower, in a see-saw destruction of Equity Investments together with Credit Investments.

Liberalism was the paradigm that established the age of credit. Trust in the Banker Regime’s monetary policies, specifically the US Fed’s purchases of 30 Year US Government Bonds, EDV, Ten Year Notes, TLT, and Mortgage Backed Bonds, MBB, as well as the ECB’s purchase of European Debt, EU, increased the supply of money needed to provide investment liquidity, and to produce economic growth; more so in the US than in the Eurozone. Peak Wealth has been achieved via the US Fed’s purchase of US Government Debt.  Peak Wealth established an awesome moral hazard based prosperity. Now, the investor’s risk appetite has turned to risk aversion, as investors fear that the Fed’s monetary policies have crossed the rubicon on sound monetary policy, and have made money good investments, such as the Chinese Financials, CHIX, and the US Small Caps, IWM, bad

Patrick Martin reports Fed Chief Yellen Reassures Wall Street On Interest Rates. In testimony before Congress, Yellen indicated that the US Federal Reserve would keep interest rates at their current near-zero level for the foreseeable future.

While Valuewalk posts Jim Grant Relates Interest Rates Are Headed Lower, the reality is that it’s Global ZIRP no more. The bond vigilantes are in control of interest rates globally, and will be calling the Interest Rate on the US Ten Year Note, $TNX, higher from 2.6%, as well as steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening.

Successful investing in the Pursuit of Yield Investments, such as PHO, GRID, PSP, IST, DBU, DRW, PGF, PUI, and the High Yielding Debt Investments, such as JNK, and HYMB is history. Bloomberg reports Budget Strains Showing As S&P Warns On Local Debt The greatest investment gains came from those invested in Proshares 200% ETFs, and Direxion 300% ETFs.

The age of buy and hold investing is over, through finished and done. Profitable investing in Consumer Services, IYC, such as NFLX, TWC, CRWN, LBTYA, DTV, DISH, CMCSA, CHTR, and SATS, is history. One could begin a short selling strategy and use these Inverse Market ETFs as collateral in a brokerage account: STPP, XVZ, EUO, YCS, CMD, DNO, MLPS, OFF, SBB, SBM, EFZ, YXI, SZK, SDP, KRS, REK, DDG, MYY, EUM, SAGG, DTYS, JGBS, GLD, GYEN, GEUR, GGBP, HDGI, HDGE

Not only will the High Yield Debt Instruments, such as Junk Bonds, JNK, be trading lower, but the Zeroes, ZROS, the 30 Year US Government Bonds, EDV, and the 10 Year US Government Notes, TLT, as well. Yes all Credit Investments, together with Equity Investments, will be trading lower in a see saw destruction of fiat wealth.

Since the first of the year, that is from January 2014 through early May 2014, the longer duration US Government Debt, EDV, has been outperforming the Ten Year Debt, TLT, as is seen the chart of the ratio of EDV:TLT. This is going to change very soon, as the failure of credit seen in the Chinese Stocks, YAO, ECNS, CHIX, CQQQ, and TAO, Greece, GREK, as well as the US Small Stocks, IWM, carries forward to all Credit Investments and Equity Investments.

Liberalism featured the sovereignty of Banker Regime of democratic nation states, which provided policies of investment choice and schemes of credit in fiat money, producing seigniorage in Equity ETFs, and Credit ETFs, where the investor was the centerpiece of economic activity. Not only did Dividend Excluding Financial Investment, DTN, but also Nation Investment, EFA, and Small Cap Nation Investment, SCZ, figured prominently in the age of credit, through debt trade investing, seen in H&E Equipment Services, HEES, United Rental, URI,, and currency carry trade investing, seen in EU Small Cap Dividends, DFE, as well as AER, and presented in their combined Yahoo Finance Chart.

An inquiring mind asks what is the cost of a forklift from either one of the two aforementioned companies? This is a question implicit in the Robert P Murphy Econolog article The Importance of Capital in Economic Theory.

Since the GFC, through money manager capitalism, we have had investors strongly buying the Small Cap Pure Growth companies, H&E Equipment Services, HEES, and United Rental, URI, the two providers of forklifts, which began trading lower in April 2014 on the failure of credit. These companies represent short selling opportunities.

These providers of forklifts are toxic assets in the sense that they both have a Debt To Equity Ratio and a LT Debt To Equity Ratio that cannot be repaid, which suggests that the forklift providers are zombie companies.

The price of forklifts to businesses is the cost of a business loan, that is interest, secured by inventory and other assets that can be claimed and sold; it is in this economy, that is the May 2014 economy, zero.

These lynchpin companies became liabilities not assets to society, when they were transformed by Global ZIRP and became Frankensteins of the Creature from Jekyll Island. Once investors start aggressively disinvesting and derisking out of these lynchpin investments and other debt leveraged and currency carry trade leveraged investments, the much feared economic deflation, will commence; and what was in the age of credit, inflationism, becomes in the age of debt servitude, destructionism.

With the soon coming death of fiat money, defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, the new money, that being diktat money, defined as the mandates of regional leaders to establish regional security, stability, and sustainability, will serve as the wheels for the economy.

With the failure of credit, seen in China, YAO, ECNS, CHIX, Russia, RSX, ERUS, Emerging Europe, ESR, Greece, GREK, the US Small Caps, IWM, IWC, Credit Providers, MA, V, DFS, AXP, and Commodities, DBC, trading lower, authoritarianism is the new paradigm, which features the age of debt servitude, where the God ordained sovereignty of the Beast Regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, which provides economic life experience in policies of diktat and schemes of debt servitude in diktat money, and which establish seigniorage in Regional Fascism, and which establishes the debt serf as the centerpiece of economic activity.

Bible prophecy foretells in Revelation 13:1-4, it is out of the European Debt Crisis, that is out of tossing waves  of sovereign, banking, and corporate insolvency of the Club Med Nations, specifically Portugal, Italy, Greece, and Spain, that a New Monster is rising to replace the Creature from Jekyll Island.  It is completely different from the Interventionist of creditism, corporatism and globalism. The Regional Animal, has the form of a leopard, feet like those of a bear and a mouth like that of a lion; and thus operates by stealth, roots outs it enemies, and devours its prey by crushing, ripping and tearing them apart.

And as seen in Revelation 13:5-10, there is a Regional Leader waiting in the wings of Europe’s stage, who will soon step into the limelight, and through cunning and shrewdness, will rise to power through regional framework agreements, to rule the Eurozone, with the help of a Regional Monetary High Priest, seen in Revelation 13:11-18. The word, will and way of the Sovereign will replace all traditional constitution, national and historic law. And that of the Seignior will establish seigniorage for all residents of the EU. The mandates of fascist leaders will coin diktat money which will establish economic value and grease the wheels of economic activity.

In the age of credit the economy, there were two economic goods, consumable output and leisure, demanded by households. Now in the new economy, that is the age of debt servitude, there is increasingly one economic good, consumable output demanded by regional fascist leaders.

Captain Hook writes in Atlas Shrugged Is Emerging. The world has become Atlas, bearing a great burden of debt. The Debt Loaded Emerging Market Nations that are at the greatest risk of debt deflation are IDX, EPHE, SCIN, EGPT, GXG, ARGT, GAF, TUR, ECH, and EPU, as is seen in their ongoing Yahoo Finance Chart.  Of note, Banks, BSBR, ITUB, BBD, BFR, BMA, GGAL, IBN, HDB, BAP, BCH, CIB, have been leading the Emerging Market Financials, EMFN, higher since the first of the year. And also of note, the Philippines, EPHE, has swelled 17% year-to-date.

The investor is going extinct, and the debt serf is being created, as liberalism’s dynamos of economic activity, creditism, corporatism, and globalism are winding down on the failure of credit; and as authoritarianism’s singular dynamo of regionalism is winding up to provide regional security, stability, and sustainability. While Crimea will be part of the Eastern Kingdom of Russia and China, The Ukraine will be part of the Eurozone as Antiwar reports Ukraine Interior Ministry: More Than 30 Terrorists Killed in Slavyansk Fighting; and as Breitbart posts Van Rompuy: If The Public Doesn’t Want EU Expansion, ‘We Do It Anyway’. European Council President, Herman Van Rompuy, warns Vladimir Putin that the EU intends ultimately to control every country on the western flank of Russia; and as Global Research asks Is German Chancellor Angela Merkel Authorized to Rule Europe?

Atlas’ load of debt is so overwhelming that it cannot be forgiven and written off; it will be applied to every man, woman and child on planet earth through the economic system of Regional Fascism, which is rising to replace Capitalism, European Socialism, Greek Socialism, and Communism.

 

On Wednesday, May 7, 2014,  Energy Partnerships, AMJ, EMLP, International Energy, IPW, Consumer Staples, KXI, such INGR, IFF, PEP, BUD, TAP, FMX, Real Estate, IYR, FNIO, REZ, REM, DRW, Global Utilities, DBU, Electric Utilities, PUI, International Telecom, IST, and Specialty REITS, such as AMT, CCI, Hotel & Lodging REITs, such as FCH, SOHO, and Retail REITS, such as SL, GGP, SP, traded higher, continuing an ongoing trend, taking Defensive Investments, DEF, to a new rally high.  Junior Energy Partnerships, MLPJ, traded strongly lower.

Solar Energy, TAN, Social Media, SOCL, Nasdaq Internet, PNQI, Cloud Computing, SKYY, Internet Retail, FDN, Casinos and Resorts, BJK, Retail, XRT, Media, PBS, Biotechnology, IBB, Automobiles, CARZ, traded lower.

China, YAO, ECNS, CQQQ, CAF, CHII, CHIX, CHXX, TAO, Italy, EWI, and Austria, EWO, traded lower, establishing the failure credit.

Norway, NORW, Philippines, EPHE, Brazil, EWS, EWZS, Mexico, EWW, Argentina, ARGT, Gulf States, MES, and Columbia, GXG, traded higher.

Emerging Market Bonds, EMB, EMLC, EMCD, traded higher, taking the whole spectrum of High Yielding Debt Investments, as well as Aggregate Credit, AGG, higher.

 

On Thursday, May 8, 2014,Equity Investments, that is World Stocks, VT, traded to a new rally high, as the European Financials, EUFN, The Eurozone, EZU, popular EURJPY Currency Carry Trade Investments, and Spain, EWP, and its Banco Santander, SAN, traded higher, to new rally highs, on a lower EUR/JPY as the Euro, FXE, traded lower, and as the Yen, FXY, traded higher to strong resistance. European Debt, EU, traded lower.

The Euro, FXE, fell strongly. Look for the Euro to continue to trade lower forever lower than the Yen, with the result of disinvestment of these Debt Trade Investments, and these Debt Trade Investments, and these Currency Carry Trade Investments, and these Currency Carry Trade Investments, not only in the Eurozone, but worldwide, as well.

Nation Investment, EFA, traded to a new rally high as currency traders continued taking Major World Currencies, DBV, higher. The Canadian Dollar, FXC, higher, led Canada, EWC, and its banks, BNS, CM, TD, higher; the Australian Dollar, FXA, led Australia, EWA, higher, and its bank,WBK, The UK, EWU, Norway, NORW, and South Africa, EZA, rallied higher, while Egypt, EGPT, Gulf States,  MES, and EDEN, traded lower from their rally highs.

And Currency traders continued taking the Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, higher with the result that Turkey, TUR, Columbia, GXG, Emerging Africa, GAF, Philippines, EPHE,, Singapore, EWS, EWSS, Taiwan, EWT, and Malaysia, EWM, traded higher.

While, Semiconductors, SOXX, Retail, XRT, and the Too Big To Fail Banks, RWW, traded higher, Solar Energy, TAN, Biotechnology, IBB, Resorts and Casinos, BJK, Automobile Producers, CARZ, Coal, KOL, and Energy Production, XOP, traded lower.  Natural Gas, UNG, traded strongly lower.

The US Small Caps, IWM, IWC, Regional Banks, KRE, Greece, GREK, Vietnam, VNM, Thailand, THD, Hong Kong, EWH, EWHS, traded lower, following China, YAO, ECNS, CHIX, CQQQ, and TAO, lower, establishing the failure of credit.

The World’s Banks, that is Global Financials, IXG, traded higher, but reside below its April 2014, high, establishing the failure of credit. Of note, the National Bank of Greece, NBG, traded strongly lower, taking Greece, GREK, lower.

Barclays, BCS, traded higher, as The Guardian posts Barclays To Cut Up To 8,000 Investment Banking Jobs.

Emerging Market Bonds, EMB, EMLC, EMCD, traded higher, on the higher Emerging Market Currencies, CEW, taking the whole spectrum of High Yielding Debt Investments higher.

Credit Investments, that is Aggregate Credit, AGG, rose to a new rally high, on the rallying Major World Currencies, DVB, and rallying Emerging Market Currencies, CEW. US Treasuries, TLT,  traded lower from its recent high, manifesting a questioning harami. The Interest Rate on the US Ten Year Note, ^TNX, traded unchanged at 2.6%.

 

On Friday May 9, 2014 there was a global currency event. Debt deflation commenced with most Equity Investments and most Credit Investments trading lower, as all The Currencies, that is the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, except the India Rupe, ICN, traded lower at opening, with the result that the US Dollar, $USD, UUP, popped higher, and closed higher at 79.95, causing disinvestment out of Global Financials, IXG, Nation Investment, EFA, Dividends Excluding Financials, DTN, and World Stocks, VT, as the Bond Vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.60% to 2.62%, in exercising their control over the US Federal Reserve.  Electric Utilities, PUI, XUI, and Global Utilities, DPU, such as China Utility, HNU, traded strongly lower on the higher Benchmark Interest Rate, $TNX.

Inasmuch as investors fear that the word central banks have crossed the rubicon of sound monetary policy, and have made money good investments bad, currency traders sold out of the Euro, FXE, and investors sold out of Banco Santander, STD, which led the European Financials, EUFN, the European Stocks, EZU, and the European Small Cap Dividend Stocks, DFE, lower. Greece, GREK, led the Eurozone Nations, lower. The Euro, FXE, fell strongly lower form its recent high near 138 to close at 136.

Deleveraging out of the Euro Yen Currency Carry Trade, EUR/JPY caused Spain’s Telecom Company, TEF, to trade strongly lower.

The Canadian Dollar, FXC, traded lower, causing disinvestment out of Canada Small Caps, CNDA, -2.7%, and Canada, EWC, -0.8%. Deleveraging out of the Canadian Dollar – Japanese Yen Currency Carry Trade, caused Global Energy Producer IPW, Encana, ECN, to trade 2.2% lower.

Most of the High Beta ETFs, such as Retail, XRT, that had sold off so strongly, traded slightly higher.

Natural Gas, UNG, traded strongly lower. Bloomberg reports Iron Ore Slumps to Lowest Since 2012 as Surplus Deepens. Iron ore retreated to the lowest level since 2012, capping a fourth weekly loss and nearing $100 a ton, as increased seaborne supplies of the steelmaking raw material boosted a global glut. Ore with 62 percent content delivered to the Chinese port of Tianjin fell 1 percent to $102.70 a dry ton, the lowest level since September 2012, according to data from The Steel Index Ltd. The commodity dropped 23 percent this year, after falling 7.4 percent last year

The failure of credit, that is trust in the monetary policies of the world central banks to stimulate investment gains on May 9, 2014, marked by the trade lower in the Worlds Major Currencies, DBV, and Emerging Market Currencies, CEW, was a defining inflection point and was the most significant event in economic history since President Nixon took the US off the gold standard in 1971; the world  pivoted from the age of credit, where the investor was the centerpiece of economic activity, into the age of debt servitude, where the debt serf is the centerpiece of economic activity.

While Junk Bonds, JNK, traded higher on May 9, 2014, other High Yielding Debt, such as European Debt, EU, led Aggregate Credit, AGG, lower; the 30 Year US Government Bond, EDV, traded down more than the US Ten Year Note, TLT; Floating Rate Notes, FLOT, traded lower; the Steepner ETF, STPP, traded higher, reflecting a steepening of the US Sovereign Debt Yield Curve, $TNX:$TYX; and the Zeroes, ZROZ, led Popular Notes And Bonds lower; all establishing the failure of credit.

From May 9, 2014 forward, all Credit Investments, together with all Equity Investments, will be trading lower in a see saw destruction of fiat wealth.

On May 9, 2014, derisking out of Debt Trade Investments, and deleveraging out of Currency Carry Trade Investments, caused Global Growth Investment, DNL, such as Mexico Cement Manufacturer, Cemex, CX, to trade lower.

Deleveraging out of currency carry trade investments such as Cemex, CX,  and derisking out of debt trade investments, such as Blackstone, BX, introduces Destructionism which replaces Inflationism, with the result that the much feared global economic deflation is inevitable.

Look for strong disinvestment to come out of The Most Carry Traded Nations, such as Canada, EWC, Spain, EWP, Italy, EWI, Philippines, EPHE, ias Major World Currencies, DBV, and Emerging Market Currencies, CEW, collapse on the ongoing failure of credit, that began in April 2014 when, China, Russia, Developing Europe, Greece, and the US Small Caps trading lower.

Fiat money was coined by the Creature from Jekyll Island, and was a function of the age of credit. The new money, diktat money, defined as the mandates of regional fascism for regional security, stability and sustainability, is coined by the Beast Regime of regional economic governance and totalitarian collectivism, and is a function of the age of debt servitude.

The chart of the Dollar, $USD, UUP, which is actually a basket of currencies, is terrifically bearish.

Look for Major World Currencies, DBV, and Emerging Market Currencies, CEW, to sell off, bringing the US Dollar, into a global currency, credit, and equity collapse, known as Financial Armageddon, and foretold in bible prophecy of Revelation 13:3-4.

It is out of this crisis that the Beast Regime of regional economic governance and totalitarian collectivism, seen in Revelation 13:1-4, will rise to rule in policies of diktat and schemes of totalitarian collectivism, as leaders meet in summits to renounce national sovereignty, and announce regional sovereignty, which will come through regional framework agreements.

People will come to trust in a cadre of regional fascist leaders who establish regional fascism for regional security, stability, and security.

One should be invested in a non-dollar wealth preservation strategy.

Spot Gold, $GOLD, traded lower to close at $1,289; it is in an Elliott Wave 3 Up, on its way to an Elliott Wave 5 High. There is coming an investment demand for gold as investors move out of the Defensive Stocks, DEF, that is Utilities, PUI, XLU, Energy, XOP, IPW, and Consumer Staples, KXI, and into Gold, GLD.

In the age of the failure of credit, wealth is preserved only by the safe storage and physical possession of gold bullion.

 

2) … What can economics explain?

Economics can explain a paradigm and an age, as well as a life mindset.

Dispensation economics presents the concept that economics is the ordained life experience of humanity, and is a paradigm presenting the experience of money in an age.

The Apostle Paul communicates in Ephesians 1:10 that economics is the paradigm and stewardship of all things by Jesus Christ in every epoch, bringing them to maturity and perfection, much like a ship’s captain completes the manifest before setting sail.

Economics is defined as the life experience between a person and another, a corporation, and the state, that is government; either it be ethical or pathological; economics is the trust and flow that comes from sovereignty, and the model that best presents economics is theDispensation Economics Manifest.

An economy is defined as the life experience that comes from the administration of the credit and trade that comes from a household or stronghold. An economy exists for life and death experience, and is determined by the prevailing interest rate of the monetary regime and its monetary policies and schemes. For example, UK based Shaun Richards reports Full Speed Ahead. UK Manufacturing PMI (Purchasing Managers Index) accelerating to 57.3 in April. The Bank of England helped with its Funding for Lending Scheme … The numbers for consumer credit: the three-month annualised and twelve-month growth rates were 6.2% and 5.3% respectively.

All be economists, as economics is not restricted to news pundits such as Paul Krugman, or to ivory tower academicians such as Oxford’s Simon Wren-Lewis, or to free market proponents such as Robert P. Murphy, or to libertarians such as Ralph Raico, who asks What Is Classical Liberalism?

Economics is a money based life experience that is experienced by all; money is defined as the credit and trade that comes from the administration of a household or stronghold; debt based money bears interest, which is defined as the cost of money. The debt based money system known as fiat money came to an end on May 9, 2014 with the failure of credit. The new debt based money system known as diktat money commenced as peak moral hazard wealth was attained.

The banker regime established the freest of all economies in the history of mankind; beginning in 1999 with the repeal of the Glass Steagall Act and the provision of the Euro; it birthed and established the investor as the centerpiece of economic action; and with the financial recovery of QE1 and the ensuing Global ZIRP, the investor was set totally free to pursue investment choice, according to his risk profile.

Those who risked the most and invested in Pure Small Cap Growth Stocks, RZG, and Small Cap Value Stocks, RZV, such as RYAAY, and who invested in the Euro Yen,EUR/JPY, currency carry trade, such as IRE, TRIB, MNK, IR, COV, and CRH, garnered the greatest reward in the creation of the greatest moral hazard mankind has ever known.

There has been a paradigm shift. Casino Capitalism, also known as money manager capitalism, is over, through, finished and done; the banker regime of democratic nation states is being replaced with the beast regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, as on October 23, 2013, Jesus Christ opened the first seal of the scroll of end time events, seen in Revelation 6:1-2, releasing the Rider on the White Horse, who has the Bow of Economic Sovereignty, to effect global coup d’etat, to replace fiat money with diktat money.

The bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, from 2.48%, and thus pivoted the world from the paradigm of liberalism, meaning freedom from the state, into that of authoritarianism. Diktat money is defined as the mandates of regional fascist leaders ,which establish debt servitude for the purpose of regional security, stability and sustainability.

Liberalism featured the sovereignty of democratic nation states which provided policies of investment choice and schemes of credit, producing seigniorage in equity investments and credit investments.  But now with the failure of credit, seen in China, Russia, Developing Europe, Greece, and the US Small Caps trading lower, and commodities trading lower being the tipping point, authoritarianism is the new normal, and features the sovereignty of regional governance which provides policies of diktat and schemes of debt servitude in regional fascism, where the debt serf is the centerpiece of economic activity, as the investor is going extinct.

The age of credit no more. With the failure of credit, seen in China, YAO, ECNS, CHIX, Russia, RSX, ERUS, Emerging Europe, ESR, Greece, GREK, the US Small Caps, IWM, IWC, Credit Providers, MA, V, DFS, AXP, and Commodities, DBC, trading lower, authoritarianism is the new paradigm, which features the age of debt servitude.

In the age of debt servitude it behooves one to have an elect mindset.

 

3) … In the age of debt servitude it behooves one to have an elect mindset. Arnold King in The Elite vs. The Elect writes Bottum suggests that a better term for progressive intellectuals than “elite” is “elect.” A difference is that an elite must prove its merit. An elect starts from an assumption of superiority and proceeds from there.

Dr. King continues, Do conservatives and libertarians also have an “elect” mindset? By that, I mean a mindset in which you believe that you occupy a moral high ground that others do not. I believe that the three-axes model would say that conservatives and libertarians also have an “elect” mindset. It would say that the progressives think of themselves as the elect that fights for the oppressed against the oppressors, conservatives (including Bottum) think of themselves as the elect that fights to preserve civilization against barbarism, and libertarians think of themselves as the elect that fights for liberty against coercion.

Elaine Meinel Supkis writes Apocalypse, Ja: Neo Nazi Israel Jews Want Jews-Only State And Eviction Of Everyone Else

Libertarian Robert Wenzel posts the Victor J. Ward comment The NBA/Donald Sterling Situation Has Been A Great Reminder Of A Very Valuable Lesson.

I am not a libertarian, I am the Elect of God, a born again Christian along the lines of Witness Lee who has organic union with God, and who endeavors to have the virtue of Christ and the ethics of the New Testament, where virtue is defined as morals, and where ethics is defined as quality and type of relationships.

I do not make any remarks private or public that have racist overtones, as such are not part of my character set!

I ask “is a private conversation that may have racist overtones” indicative of antipathy, ill will, malice, maliciousness? And this inquiring mind asks further “would a libertarian ask Mr. Sterling to be more objective, along the lines of Ayn Rand”? or would a libertarian just keep quiet?

Having the mindset that one is The Elect of God, as presented by the Apostle Paul in 1 Peter 1:1, and in Titus 1:1, enables one to live in holiness, Colossians 3:12, and to commune with God. Blogging With Elaine posts Man eats to sustain his physical life and communes with God to sustain his spiritual life.

 

4) … The new normal in weather is Ice Age Freezing replacing the former Global Warming.

Elaine Meinel Supkis writes White House Warns Of Global Warming While Global Cooling Wins Weather War North AND South Hemispheres.

 

5) … In considering what motivates individuals, one should consider the work of Gary Becker in and libertarians coming to a conclusion.

Stumbling and Mumbling posts Beckerian Economics has given us some useful insightsintocrime, familylife (pdf)  And Benson te writes Gary Becker’s Economic Approach.

Motivation is life orientation and movement, and for most comes out of early childhood education. Either motivation is noble, that is good and altruistic; or motivation is malevolent, that is wicked and selfish. Motivation primarily comes from teachable moments in one’s childhood; and is largely determined by interaction with either a coaching parent and mentor, or a mean spirited parent and life example. Thus  one grows up either on Faith Street or on Mean Street.

However, for a significant minority of individuals, either illustriousness or preeminence comes by happenstance, destiny and design, where one’s character is molded by intervening life event, and is further shaped by capsule-thinking, where living is think-and-link, that is what Capsulscape presents as purposeful and invitation-only gathering of the like minded.

I suggest that for most Libertarians and all of The Lord’s recovery, capsule thinking and think and link living is life’s design, that is a fortuitous experience.

Capsule thinking comes from reading. The illustrious read such things as The Quotable Mises or The Open Hymnal. Yes, one is what one reads.

Capsule thinking and think and link then replace the motivation that comes out of early childhood education to the point where one is branded Christian or Libertarian. One matures in this life identity by meeting with others on the internet, in weekly assembly, or in seminars; that is by practicing Libertarianism or Christianity.

Thus one becomes involved in the movement of Libertarianism or the Living Stream Ministry; and one has economic life experience in Liberty or in  The Way.

Crime and antisocial behavior comes out of repeatedly crossing numerous moral and ethical rubicons.

Criminal and psychopathic behavior patterns become habits in adolescence; and then become the ongoing centerpiece of one’s adult life to the point where some are morally insane and/or criminally insane individuals.

I am in favor of execution of the morally insane and the criminally insane. Free Beacon posts Botched’ Oklahoma Execution Proves It’s Time to Bring Back the Guillotine. The pursuit of a bloodless execution seems to have backfired pretty badly here. And there’s evidence that previous lethal injection cocktails weren’t much better; a rather radical alternative: the guillotine. There are other, less dramatic, ways, of course. Hanging and firing squads would probably be quicker and more painless than lethal injection or the electric chair. But the guillotine really seems to solve everyone’s problems: It was designed to deliver an efficient, quick, and painless death. It performs that task admirably.

Libertarian Benson te posts Quote of the Day: Tenets of Individualism Metaphysically, individualism holds that the person is unique, not a sample of the mass, owing his peculiar composition and his allegiance to his Creator, not his environment. Because of his origin and existence, he is endowed with inalienable rights, which it is the duty of all others to respect, even as it is his duty to respect theirs; among these rights are life, liberty, and property.

 

6) In the news.

Duane and Shelley Muir of Signposts of the Times post April Had a Record Number of Big Earthquakes. It is these that are a sign of the arrival of the end times.

Business Insider posts The 10 Highest Paid Hedge Fund Managers Made $21.5 Billion Last Year. And Deal Book posts Hedge Fund Moguls’ Pay Has the 1% Looking Up. And CNBC Charts The Top 100 Fee-only Wealth Management Firms.

Bloomberg reports China Manufacturing Gauge Signals Risk of Deeper Slowdown

James Pethokoukis posts in AEIdeas 3 Disturbing Charts Showing The Alarming Decline Of US Economic Dynamism

Research Dynamics posts America’s Structural Jobs Depression – Part 1

New entrants into the workforce may have stalled. Mark Thoma asks in CBS News Why Did The Labor Force Shrink So Much in April The main reason for the fall in labor force is a large decline in the number of new entrants rather than an increase in the number of “discouraged workers” (those who want to work but can’t find a job) exiting the labor force. Plus, the decline appears to be concentrated among younger workers who have not yet decided to begin seeking work.

Bloomberg reports GE Offer for Alstom Is Not Acceptable, Hollande Says. And Ambrose Evans Pritchard writes France Invokes National Security Over Alstom.

Marc to Market posts Bank Exposures to Russia. While the US, German, UK, and Swedish banks cut back on exposure to Russia in Q4 2013, French banks did not very much. France’s $50 bln is by far the greatest exposure. Moreover, they note that a good part of France’s exposure is illiquid as it is in the form of Socgen’s ownership stake of Russia’s 9th largest bank Rosbank, worth about $22 bln.

Shaun Richards asks Can Italy Escape From The Economic Problems Posed By Its History And Euro Membership?

Forbes reports Tyson Sinks 10% After Blaming Earnings Miss On Weather, Hog Virus.  And WSJ reports Tyson Profit Surges, But Hog Virus Mutes Guidance.

Antiwar posts Eastern Ukraine Locks Down As Civil War Looms. And posts Eastern Ukraine To Hold Sunday Referendum as Planned.  And posts Ukraine Troops Destroy Police Station In East. Alex Lantier posts in WSWS The US, Kiev Puppet Regime Escalate Ukraine Conflict After Russian Concessions. Western officials stepped up threats against Russia, as the far-right puppet regime in Kiev dismissed Moscow’s attempt to fashion a truce in east Ukraine.

Johannes Stern posts in WSWS German Politicians, Media Support Build-up Of NATO Forces In Eastern Europe. Leading German politicians, the military and media support the massive rearmament of NATO in Eastern Europe announced by top officials of the imperialist alliance.

James Cogan posts in WSWS The US Pivot And The Threat Of War In Asia. With staggering recklessness, US imperialism, supported by Japan and Australia, is pursuing an agenda that threatens to provoke war with China.

Reuters reports Egypt’s Sisi Turns Islam on the Islamists

 

7) … How do you feel about magic? Would you take a trip to the Magic Kingdom or purchase the movie Frozen?

On Tuesday May 6, 2014, Disney, DIS, manifested a dark cloud covering candlestick in its chart suggesting a trade lower. In press release, Disney attributed a surge in earning in part to the home entertainment performance of blockbusters Frozen and Thor: The Dark World.

In review of the Disney song, Let It Go in the movie Frozen, The Tatermeister writes Let It Go, is just a great song, flat out. It teaches us to be ourselves, don’t let society tell you what you can or cannot do. Also, Elsa is my favorite disney character, and I have in lot in common with her. I’m technically sort of a mix of all the Frozen characters, but I like Elsa the best. Elsa in the movie can’t control her powers, in the process she’s scared. I’m scared that I make mistake to much and I mess up, hurting people around me. But this song keeps me going. Elsa teaches me that I can still be myself, I don’t have to change. And the end of the movie she controls her powers anyway, this gives me hope.

And Eric Toribio writes The best thing about this movie is that the characters are really human. They’re animated, but showcase the right amount of emotion and fluidity to feel like you’re watching live action.

And Niles Wyatt writes I have one complaint: how is it that Elsa goes from having no control of her powers to having pretty much full on control?! I mean first she has no control of what she does with the ice, yet in this it’s as if she’s totally mastered them. Has anyone else noticed that?

And Mugglesam post GMA’s Frozen “Let it Go” Epic Live Sing-A-Long — 8 and 10 Year Olds.

 

8) .. Enter Humanity 2.0: the new genetic breed; their prophesied date of return has arrived.   

The Nephilim were on the earth in Noah’s days and also afterward, when the sons of God went to the daughters of humans and had children by them. They were the heroes of old, men of renown.

Ever wonder why the Nephilim get such a bad rap these days when even the bible says, “They were the heroes of old, men of renown. They sure don’t sound like bad guys?

Genesis 6:1-6 provides the account where alien creatures intruded themselves into the human reproductive process. The Nephilim were the genetic offspring of fallen angels who were of devious mindset to preempt the creation of life by God in the womb. They were helpful idiots, as they assisted in building the ark, doing such things as cutting wood, transporting timber, installing roofing materials.

Creation posts The Return Of The Nephilim, and DailyBG posts Prophetic Investigator Thom Horn Presents An Astonishing Prophetic Discovery To Steve Quayle. Exactly 4,900 years have come from the The Flood to 2008, that is, the prophesied date for the Return of the Nephilim.

Today’s central bank leaders are modern day Nephilim, that is giants amongst us, who rebuilt the economy after the GFC, which came out the former credit swell as Doug Noland posts Mortgage Credit growth averaged about $270 billion annually during the decade of the nineties (no slouch period for Credit growth!). Total Mortgage debt began growing at double-digit rates in 2002 as the Fed aggressively reflated (post-“tech” Bubble). Surging annual mortgage debt growth surpassed $1.0 Trillion for the first time in 2003. It then inflated to $1.27 Trillion in 2004 and hit an all-time record $1.45 Trillion in 2005.

Trust in their Liberal schemes of Quantitative Easing has produced great gains for the speculative leveraged investment community, and has produced a fantastic moral risk induced prosperity supporting a huge amount of disposable wealth existing in savings accounts as evidenced by the awesome rise in thechart of M2 Money (adjusted monthly) to 11,158.7.

Beginning with the Liberal scheme of QE1, where money good US Treasuries were traded out for the most toxic of debt, such as that traded in Fidelity Mutual Fund, FAGIX, and the ongoing process of Global ZIRP, banks were regenerated to become the financial engine of economic endeavors. The genius of the Greenspan Put, was that there was no capital investment in banks rather; rather banks were reestablished and now exist one with the state through the awesome rise in Excess Reserves.

Up until October 23, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose from 2.48%, the debt-to-equity ratio did not affect the cost of capital, and therefore hasn’t affected banks’ willingness to extend credit.

With the failure of trust in the world central banks’ monetary authority to stimulate investment gains, the bond vigilantes are exercising ever greater control over the Benchmark Interest Rate, and this has started derisking out of debt trades and delveraging out of currency carry trades, pivoting the world out of the age of credit and into the age of debt servitude, with the result that the investor is no longer the centerpiece of economic activity, but rather the debt serf is the lynchpin of all things economic.

Out of soon coming Financial Armageddon, that is a global credit bust and financial system breakdown, people will come to trust in a cadre of regional fascist leaders to establish regional security, stability, and security.

Christina posts Christ Communicated That Immediately Before His Return, Nephilim Would Once Again Appear. Now even Greater Nephilim are on the way, as scientist are creating the New Human, via genetic engineering, once again interfering with the right of God alone to create life.

CNET postsScientists Create Alien Life Form With Artificial Genetic Code. Scientists made a substantial breakthrough in understanding how to alter the fundamental nature of life, and they did so by creating for the first time a partially artificial life form that passes along lab-engineered DNA. Throughout the entire history of life on Earth, the genetic code of all organisms has been uniform, from the simplest of bacteria all the way up to human beings, meaning our genetic code is composed of the same four nucleotides labeled A, C, T, and G. Those nucleotides join to form base pairs, which are used in the creation of genes that cells use to produce proteins. Researchers at Scripps created two new nucleotides, X and Y, and fused them into the E. coli bacterium. The organism was able to reproduce normally with six, instead of the standard four, nucleotides, meaning it genetically passed along the first combination of manmade and natural DNA.

NYT posts Scientists Add Letters To DNA’s Alphabet, Raising Hope And Fear. Scientists reported Wednesday that they had taken a significant step toward altering the fundamental alphabet of life creating an organism with an expanded artificial genetic code in its DNA. The accomplishment might eventually lead to organisms that can make medicines or industrial products that cells with only the natural genetic code cannot.

Jesus foretold that countless many would have no idea of end time events which portend yet another global cataclysm. “As it was in the days of Noah, so it will be at the coming of the Son of Man.  For in the days before the flood, people were eating and drinking, marrying and giving in marriage, up to the day Noah entered the ark; and they knew nothing about what would happen until the flood came and took them all away. That is how it will be at the coming of the Son of Man”.

The Failure Of Credit Gets Underway As Commodities Trade Lower On The Failure Of Currencies

May 4, 2014

Financial Market report for the first two days of May 2014

 This post is presented in Google Documents format here

1) Introduction

The failure of credit is underway as investors no longer trust the monetary policies of the world central banks to stimulate investment gain. The failure of credit came the week ending April 25, 2014, and constitutes the most significant economic event since President Nixon took the US off the gold standard in 1971, and is seen in China, YAO, ECNS, CHIX, TAO, Russia, RSX, ERUS, and the US, IWC, IWM, KRE, trading lower in value.

The failure of credit pivots the world out of the age of credit and into the epoch of debt servitude, and is evidenced by the parabolic turn lower in Chinese Financials, CHIX, China Investments, YAO, China Technology, CQQQ, China Industrials, CHII, China Real Estate, TAO, as well as Regional Banks, KRE, the US small Caps, IWC, IWM, the National Bank of Greece, NBG, Greece, GREK, Ireland’s Bank, IRE, and Ireland, EIRL, as well as Credit  Providers Visa, V, and Mastercard, MA, the nation of Russia, RSX, ERUS, and Debt Trades, such as Blackstone, BX, and Leveraged Buyouts, PSP, and manifests as the death of Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB. 24hGold reports Contrary To The Media Spin, Greece Keeps On Sinking.

2) Financial activity in the first two days of May 2014.

On Thursday May 1, 2014, Aggregate Credit, AGG, traded unchanged, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower from 2.65% to 2.61%, and the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened, as is seen in the Steepner ETF, STPP, flattening, with the result that the US Treasuries, TLT, the 30 Year US Government Bonds, EDV, and the Zeroes, ZROZ, traded to new rally highs, which took Financial Preferreds, PGF. Mortgage REITS, REM, such as IVR, Residential REITS, REM, Industrial Office REITS, FNIO, and Retail REITS, to rally highs.

The failure of credit is seen in Global Financials, IXG, in particular the National Bank of Greece, NBG, is leading World Stocks, VT, lower from their April 2014, highs. The rally in High Yielding Debt Investments, JNK, VCLT, EU, EMB, HYD, EMLC, QLTB, EMCD, BABS, HYXU, presented in their ongoing Yahoo Finance Chart, is history. Australia Dividends, AUSE, which pays 4.3%, traded lower, and shows the way is now down in the debt behemoths.

On April 16, 2014 Christine Idzelis of Bloomberg reported The US Junk Loan Market Has Never Fueled So Much Dealmaking. A total of $85 billion of Junk Loans, JNK, have been raised this year to finance acquisitions, topping 2007’s record pace.

Bloomberg reports Junk Loans Pulled as Buyers Say No After Fed Raises Concern. The tide is turning in the market for speculative-grade loans as investors refuse to buy some deals deemed too risky. Rocket Software pulled $725 million of loans from the market this week that would have refinanced debt and paid for a dividend to its co-founders and private equity firm Court Square Capital Partners LP, according to data compiled by Bloomberg. The deal is at least the third to be withdrawn in the last month, with cable TV provider WideOpenWest Finance LLC canceling $1.97 billion in loans and Dutch LLC, which does business as women’s apparel company Joie, scrapping a $200 million debt offering. The loan market is starting to show signs of tightening more than six months after the Federal Reserve and Office of the Comptroller of the Currency sent letters to banks telling them to improve their deteriorating underwriting standards. Investors are demanding better terms and pulled cash from leveraged-loan funds the last two weeks, snapping an unprecedented 95 straight weeks of inflows.

The trade lower in Education Services, High Beta ETFS, such as Internet Retail, FDN, Call Write Bonds, CWB, International Treasury Bonds, BWX, bearing 1.52% interest. the Floating Rate Note, FLOT, bearing a 0.43% interest, give additional evidence that the failure of credit has commenced.

The failure of credit comes with debt deflation, that is currency deflation. Said another way, investors no longer trust in the monetary policies of the world central banks to stimulate investment gain, and as a result currencies, the wheels on which investments drive, and the life blood on which nation states exist, are dying; these include Major World Currencies, DBV, such as the Australian Dollar, FXA, as well as Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB.

What Doug Noland of Prudent Bear terms the Global Government Finance Bubble, consisting of such things as US Government Bonds, GOVT, International Treasury Bonds, BWX, and International Corporate Bonds, PICB. is about to burst.

While Nation Investment, EFA, led by EWC, EWU, and Small Cap Nation Investment, SCZ, led by NORW, EDEN, and EWI, have risen to rally highs, on a safe haven rally in International Energy Companies, IPW, TOT, E,  RDS-B, SNP,  STO, IMO, XOM, CVX, ECA, BP, SSL, SU, HES, CNQ, OXY, as well as Global Utilities, DBU, and Consumer Staples, KXI, global fiat asset prices are falling as the fiat money bubble has finally burst.

Transportation Shares, XTN, are at their rally highs. Global Industrial Producers, FXR, and Design Build Companies, FLM, are trading just below their rally highs.

Equity Investments, that is World Stocks, VT, and Global Financial Institutions, IXG, are trading lower from their April 9, 2014, highs, this coming on the failure of credit in China, in Russia, and in the US.

Investors are derisking out of debt trades, such as Leveraged Buyouts, PSP, such as DLPH, and Mortgage Backed Real Estate, BX, and deleveraging out of currency carry trades, such as China, YAO, ECNS, CQQQ, CHII, Russia, RSX, ERUS, and US Small Caps, IWC, IWM.

With the bond vigilantes calling the Benchmark Interest Rate from 2.49% on October 23, 2013, to 2.61% on May 1, 2014, its Global ZIRP no more. The Banker Regime ofPursuit Of Yield Bearing Equity Investments, such as Water Resources, PHO, Dividends Excluding Financials, DTN, and Mid Cap Value Stocks, FVL, and Global Telecom, IST, such as ORAN, PHI, VZ, T, and Nation Investment, EFA, particularly in Greece, GREK, Ireland, EIRL, and its companies, a IR,  COV, MNK, CRH, and RYAAY, are topping out and turning over. The extinction of the fixed income investor, whose love for Utility Stocks, PUI, XLU, has commenced on the failure of credit.

All fiat currencies will be debased and devalued by the ongoing failure of credit; some economies will experience faster debt deflation than others.

The Small Cap Developed Market Nations, SCZ, that are at the greatest risk of debt deflation are MES, ENZL, EDEN, DFE, EWS, EWI, ENZL, and GERJ, as is seen intheir ongoing Yahoo Finance Chart.

The Debt Loaded Emerging Market Nations,EMHD, that are at the greatest risk of debt deflation are IDX, THD, EPHE, THD, SCIN, EGPT, GXG, ARGT, GAF, and EMHD, as is seen intheir ongoing Yahoo Finance Chart.  Benson te writes Phisix Mania Rages As Money Supply Sizzles for the 9th Month!

Commodities, DBC, traded parabolically lower, on Thursday May 1, 2014, as Agricultural Commodities, RJA, Natural Gas, UNG, UNL, Oil, USO, Base Metals, DBB, and Silver, SLV, traded strongly lower on the failure of currencies, specifically Commodity Currencies, CCX.

On Friday May 2, 2014,Credit Investments, that is Aggregate Credit, AGG, that is traded to a new rally high, as the chart of the Interest Rate on the US Ten Year Note, ^TNX, shows a return to its  February 1, 2014 value of 2.60%, and the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened, as is seen in the Steepner ETF, STPP, flattening, with the result that the US Treasuries, TLT, the 30 Year US Government Bonds, EDV, and the Zeroes, ZROZ, traded vertically higher to new rally highs.

Notes and Bonds, such as European Debt, EU, traded to a new all time high as Bloomberg reports Spanish, Italian, Irish Bond Yields Drop To Records. Credit Madness drove the Highest Yielding Debt such as Build America Bonds, BABS, higher.

3) The trade lower in Commodities evidences the pivoting of the world from prosperity into austerity and opens the door to the opportunity of short selling.  

Trust in the monetary authority of Banker Regime and its schemes of Global ZIRP, which began when the US Fed traded out “money good” US Treasuries for Distressed Investments of all types, such as those traded in Fidelity Investments FAGIX Mutual Fund, provided the basis for global growth and more importantly investment in an age of credit that was underwritten by the Milton Friedman Free To Choose Architecture.

The failure of credit is getting strongly underway with Commodities, DBC, trading lower; thus the short selling opportunity of a lifetime has commenced, just as the WSJ reports Retirement Investors Flock Back to Stocks. Equities account for highest percentage of new contributions into 401(k) plans since crisis.

Numerous authors report that the institutional investor is selling and the retail investor is buying, confirming a market top has been achieved.  One could begin short selling from the top using these Inverse Market ETFs, as collateral in a brokerage account STPP, XVZ, GLD, EUO, YCS, CMD, DNO, PPLT, PALL, SBB, SBM, EFZ, YXI, SZK, SDP, KRS, REK, DDG, MYY, EUM, HDGE, SAGG, DTYS, JGBS

Countless short selling opportunities exist and include CVCO,  BSBR,  BAP,  AA,  CSTM,  RAD,  WM, TPL, MWV, AOS, CE, IR, ALV, URI, ABG, POOL, LACO, VNDA, REX, APH,  RCL, MOG-A,  FISV,  MU,  ASMI,  PSIX,  INFU,  KFY,  SNDK,  AWH,  DAL,  GNW,  AIG,   GE,  QCOM,  TEL.  PUK,  NP,  HEES,  NNI,  JNJ,  MMM,  EMR, WHR,  NXPI,  BEAV,  SNA,  IR,  COV,  ALK,  OILT,  THO,   ORLC,  HBI,  MHK,  BKW,  TROW,  DECK,  KR,  HPQ,  DV,  DJCO,  PCYC, HD,  GASS, GLP,  ODFL, DXPE, AXE, NNBR, EEFT, TSS,  FIS, WLP,  UNP, KMB, BOFI, FDX, R, UHAL, COP,  HAL, WY, DLX, DOV, MRK, BMY, BXE, KO, PEP, WM, ECOL, WTR, AWK, MIC, AWR, RSG, GWW, DIS, ECL, SNX, DDS, DISH, DTV, CMCSA, STLD, PCP, SBNK, BBW, MTOR, SANM, HURN, IBKR, JNJ, AAPL, MSFT, SLB, HAL, SNE, MKTAY, NJ, NTT , TEF, PHI, ORAN, NTL, VZ, VE, VOD, S, RNET, CHU, TSU,  TKC, SKM, PT, IQNT, TMUS, IRS, CRESY, APSA, LMNR, PME, ADM, OINK, GRO, SANW, WBK, DEG, KR, HELE, SIG, GSOL, FNHC, UIHC, UVE, AFH, HAL, BHI,HP, DOX, BSAC, CIB, BAP, UBS, SNY, KORS, CHU, TLK, MNK, CRH, JHX, LUX, NTZ, CHT, TI, KT, TEF, PHI, TV, PAC, ASR, OMAB, IBA, GMK, INXN, QGEN, CSTM, UN, LYB, ASMI, OFIX, AVGO, KEP, ALV, FWLT, NVS, SYT, STM, AUO, SPIL, TSM, ASX, AZN, CUK, PSO, IH, PUK, SMN, UL, DLPH, GSK,and Vice Stocks such as B, BUD, TAP, DEO, BF-B, FMX, KOF, GD, LMT, UTX, LO,  MO, RAI, LVS, MGM. ROX, STZ,

The world is pivoting from prosperity into austerity. The age of credit supported an investor centric, moral hazard based prosperity; but with investors derisking out of debt trades and deleveraging out of currency trades, the debt serf centric, age of debt servitude is emerging.

Many news reports document the fulfillment of Bible prophecy of Revelation 13:1-4. The age of debt servitude has commenced, which centers around a debt serf grinding austerity, which will be underwritten by a Regional Fascist Architecture in each of the world’s ten regions and which establishes a unifying gulag of totalitarian collectivism in mankind’s seven institutions. Bloomberg reports Australian Asset Sales, Cuts to Welfare Urged to Lower Debt. Australia should privatize its rail and postal assets and cut family welfare payments as Prime Minister Tony Abbott seeks to meet election pledges to rein in record public debt, a report ordered by his government advised. And WSWS reports Irish Government Creates Police Unit To Target Social Welfare Claimants. The government’s 2014 budget aims to slash social spending by €2.5 billion.

An economic and political polar vortex has formed. With the failure of credit the world has pivoted from the paradigm and age of liberalism where bankers waived magic wands of wealth creation in what Doug Noland termed wildcat finance; and into the that of authoritarianism where fascist leaders warn with clubs of poverty infliction. Automatic Earth post How America Grows Its Way Into Poverty. Bloomberg reports Xi Vows to Combat Terrorism After Blast Kills 3 in Xinjiang. President Xi Jinping vowed to combat “violence and terrorism” after three people were killed in an explosion and knife attack in the capital of northwestern China’s Xinjiang region hours after he visited the city, according to state-run Xinhua News Agency. “Knife-wielding mobs” slashed travelers and set off explosives at the Urumqi’s south train station at about 7:10 p.m. local time yesterday, Xinhua said, citing the publicity department of the ruling Communist Party’s regional committee. The attack injured 79 people, four seriously, it reported.

The recovery since 2008, was primarily both investor centric and client centric, yet provided some economic growth. The Bespoke Investment Group report Ford F-150 Pickup Truck Sales Post Best April Since 2006, draws out the idea that the Fed’s policies, while not only focusing on and thus developing and defining the investor as the centerpiece of economic activity, underwrote small business development, and established Automobile Production, CARZ,  and Automobile Dealerships as credible investment opportunities.

The California Beach Pundit writes of clientelism The one thing that changed in a really big and durable way, starting in 2008, was fiscal policy. The Bush administration launched TARP in late 2008, and the Obama administration followed up with ARRA in 2009. Then came Obamacare in 2010, which purported to restructure fully one-sixth of the US economy within the space of a few years. Then came the Dodd-Frank super-regulation of the financial industry. Beginning in 2013, top marginal tax rates were increased.

As the first of the above two charts shows, massive fiscal stimulus increased the federal government’s debt from $5.34 trillion in June ’08 to $12.45 trillion as of this week. As the second chart shows, that surge of borrowing doubled the federal debt burden, raising it from 36% of GDP to 72% of GDP in a mere four and a half years. The only other time something of this magnitude happened with fiscal policy was WW II.

The federal government borrowed $7.1 trillion over the course of five and a half years and handed most of the proceeds out in the form of various transfer payments. Our leaders in Washington did this in the belief that this would stimulate spending and that would convince businesses to create more jobs. The federal government restructured the entire healthcare industry in the belief that this would lower costs and give everyone healthcare insurance coverage.

If anything, the massive growth of government intervention in the economy since 2008 looks to be the Occam’s Razor explanation for what caused the weakest recovery in history.

I comment that the fiscal path is unsustainable. The Fed’s borrowing defined and created the investor and the age of credit. Now with investors derisking out of debt trades and deleveraging out of currency carry trades, the world is entering into Kondratieff Winter, and a deadly Financial Apocalypse, that is credit bust and financial system breakdown, presented in Revelation 13:3-4, is imminent.

The Federal Reserve’s policies provided an investment renaissance in Energy Producers, Fracking Companies, and Refiners. The California Beach Pundit writes Amazing Increase In US Oil Production,

Brandeis International Business School Professor Stephen G. Cecchetti and NYU Stern’s Center for Global Economy and Business Director Kermit L. Schoenholtz call for Regulating Money Market Funds.

Now that the failure of credit has commenced, soon, money market funds will break the buck, that is the traditional constant $1 Dollar Value, with the result that capital controls will be implemented and money market funds, MMF, as well as banks everywhere will be integrated into the Government, and be known as Government Banks; and in this sense the Bank’s Excess Reserves will be captured, so as to speak, by the US Fed.

Banks everywhere will be integrated into regional governments, with the Eurozone and the US being leading examples of economic fascism. Savings and Loans, such as BOFI, Regional Banks, KRE, such as SIVB, HBAN, and RF, the Too Big To Fail Banks, RWW, such as C, seen inthis Finviz Screener, will be integrated into the banks and be known as the Government Banks, and the money market funds known as the Government Money Market Funds.

With the failure of the three dynamos of creditism, corporatism and globalism, the singular dynamo of regionalism is establishing regional economic fascism. Henry Meyer of Bloomberg reports China plans to give the developers of its military planes, ships and weapons access to the nation’s capital markets by folding them into listed state-owned companies, according to people familiar with the matter. The plan would allow military research institutes to be incorporated into the state-owned companies. The policies, being drafted by the Ministry of Finance and other agencies, could be released as soon as next month. The changes fit with the ruling Communist Party’s pledge to give markets a ‘decisive’ role in the allocation of resources. They may also promote the formation of higher-quality defense companies, according to James Hardy, Asia Pacific editor of IHS Jane’s Defence Weekly. ‘There has been a trend to streamline originally fully-state owned enterprises and make them a lot more competitive internationally,’ Hardy said. ‘Generally these research institutes are where a lot of the high end, high-tech stuff like missiles tend to get designed and road-tested.’

4) Economics is the ordained life experience of humanity, and is a paradigm presenting the experience of money in an age.

As communicated by the Apostle Paul in Ephesians 1:10, economics is the paradigm and stewardship of all things by Jesus Christ in every epoch, bringing them to maturity and perfection, much like a ship’s captain completes the manifest before setting sail.

Economics is defined as the life experience between a person and another, a corporation, and the state, that is government; either it be ethical or pathological; economics is the trust and flow that comes from sovereignty, and the model that best presents economics is the Dispensation Economics Manifest.

An economy is defined as the life experience that comes from the administration of the credit and trade that comes from a household or stronghold. An economy exists for life and death experience, and is determined by the prevailing interest rate of the monetary regime and its monetary policies and schemes.

All be economists, as the field of economics is not restricted to NYT pundit Paul Krugman, or to ivory tower academicians, such as Oxford’s Simon Wren-Lewis.

Economics is money based; money is defined as the credit and trade that comes from the administration of a household or stronghold; debt based money bears interest, which is defined as the cost of money.

The banker regime established the freest of all economies in the history of mankind; beginning in 1999 with the repeal of the Glass Steagall Act and the provision of the Euro, it birthed and established the investor as the centerpiece of economic action; and with the financial recovery of QE1, and the ensuing Global ZIRP, the investor was set totally free to pursue investment choice, according to his risk profile. Those who risked the most and invested in Pure Small Cap Growth Stocks, RZG, and Small Cap Value Stocks, RZV, and who invested in the Euro Yen, EUR/JPY, currency carry trade, such as TRIB, MNK, IR, COV, RYAAY, and CRH, garnered the greatest reward in the creation of the greatest moral hazard mankind has ever known.

David Hay of Evergreen Gavekal writes in Zero HedgeCasino Capitalism. When central banks are bombarding the system with trillions of synthetic money, and anchoring interest rates close to zero, financial assets go bonkers.

Money flows into the capital markets (like stocks) rather than capital assets (like new factories); hence, the result is high frequency financial velocity and low frequency economic velocity.

Very low interest rates encourage companies to leverage up and buy back their own stock (or buy out competitors)

Paradarch Advisors in their provocatively titled, Sex, Drugs, and Debt (who knew those three were connected!?!). In their most recent missive, they included some commentary that I thought was so good I should just relay it as is: “The entire edifice of the 2009-2013 economic recovery has been built upon the foundation of wealth effects, i.e., higher stock prices.

This was precisely the intent of the recovery’s bearded architect. The wealth created has certainly been enormous: Since bottom ticking 666 on March 6, 2009, the S&P 500 is now up roughly 208%. But like all spectacular bubbles, behind all of that newly created paper wealth stands a mountain of debt.

Since the beginning of 2009, total outstanding US corporate debt has increased by $3.376 trillion to a total of $9.766 trillion at year-end 2013. Of that $3.376 trillion increase in net issuance, nearly 87% has been used to fund share buybacks and dividend payments. In other words, the last five years have been one massive, market-wide leveraged buyout/dividend recapitalization.”

Paradarch notes “This situation has the potential to devolve into something extraordinarily dangerous very little of the post-recovery corporate debt issuance has gone into either the building or purchase of productive assets, meaning a deeper long-term economic contraction is more likely whenever the (bear market) comes. The current situation seems perversely worse than the housing bubble, because at least after that iteration of the credit mania we were left with something tangible (i.e., cheaper houses).“

Lest you think this is an off-the-wall, renegade view, the iconic Jeremy Grantham was just interviewed in Fortune, where he echoed this same sentiment. Given that Mr. Grantham previously issued early warnings on both the tech-wreck and the housing-hosing, it’s wise to heed his words.

As with Charles Gave and Paradarch, Grantham wants to know where all of the long-term investing has gone, per this line from his Fortune interview: “The theory is that lower interest rates are supposed to spur capital spending, right? Then why is capital spending so weak at this stage of the cycle?” As you can see from the chart below, it’s hard to argue that over the last 15 years that we’ve been adequately investing in productive assets.

Could it be that by letting ourselves get caught up in a series of bubbles we’ve been engaging in a societal version of what the Austrian school of economics calls malinvestment? If the answer is yes, we should all be doing some serious thinking about future implications.

There has been a paradigm shift. Casino Capitalism is over, through, finished and done; the banker regime of democratic nation states is being replaced with the beast regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, as on October 23, 2013, Jesus Christ opened the first seal of the scroll of end time events, seen in Revelation 6:1-2, releasing the Rider on the White Horse, who has the Bow of Economic Sovereignty, to effect global coup d’etat, to replace fiat money with diktat money, as the bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, from 2.48%, and thus pivoted the world from the paradigm of liberalism, meaning freedom from the state, into that of authoritarianism. Diktat money is defined as the mandates of regional fascist leaders ,which establish debt servitude for the purpose of regional security, stability and sustainability.

Liberalism featured the sovereignty of democratic nation states which provided policies of investment choice and schemes of credit, producing seigniorage in equity investments and credit investments.  But now with the failure of credit, seen in China, Russia, and the US Small Caps trading lower, and commodities trading lower being the tipping point, authoritarianism is the new normal, and features the sovereignty of regional governance which provides policies of diktat and schemes of debt servitude in regional fascism, where the debt serf is the centerpiece of economic activity, as the investor is going extinct.

5) In the news

The Street reports Why Sallie Mae Stock Plummeted to a One-Year Low. Sallie Mae, SLM, plummeted more than 65% to a one-year low of $8.98 on Thursday after the company completed the spin off its loan-management, servicing and asset-recovery business into a new entity called Navient, NAVI, Navient will service almost $300 billion in student loans, according to a statement. The consumer banking business keeps the Sallie Mae name.

Julie Miecamp and Katie Linsell of Bloomberg report Billionaire Patrick Drahi is offering concessions to win over U.S. investors as he finances the acquisition of Vivendi SA’s French phone unit with the world’s biggest junk bond offering. As part of about $23 billion of funding in euro and dollar bonds and loans to buy SFR, Drahi may pay about 7.75% in interest on $2.9 billion of eight-year junk notes with a preliminary B rating from Standard & Poor’s.

The WSJ reports Entrusted Lending Raises Risks In Chinese Finance. Companies Turn to Other Firms, Not Banks, for Loans. With credit tight in China, companies in industries beset by overcapacity are turning to an unconventional source for cash—other companies—in a new rising risk for the country’s financial system. These company-to-company loans, known as entrusted lending, have emerged as the fastest-growing part of China’s shadow-banking system, which provides credit outside of formal banking channels. Net outstanding entrusted loans.

ZeroHedge reports on employment

Doug Noland reports ten-year Portuguese yields dropped six bps to 3.63% (down 251 bps y-t-d). Italian 10-yr yields fell six bps to a record low 3.04% (down 108bps). Spain’s 10-year yields dropped nine bps to a record low 2.98% (down 118 bps). German bund yields declined three bps to 1.45% (down 48 bps). French yields fell five bps to 1.93% (down 63 bps). The French to German 10-year bond spread narrowed two to 48 bps. Greek 10-year yields sank another 20 bps to 6.13% (down 229bps).

Ambrose Evans Pritchard posts The Euro Sovereign Markets Have Gone Mad. Irish 10-year yields are nearing US Treasury yields , the global benchmark price of money, and Spain is not far behind, Neil Mellor’s of Bank of New York Mellon relates. Borrowing costs are back to 2008 levels, yet the debt burdens are massively higher, and still rising. As Mr Mellor reminds us, Germany has shot down any prospect of an EMU fiscal union, and the Draghi backstop plan for Italian and Spanish debt (OMT) has been declared a treaty violation and probably ultra vires by the German constitutional court.

The deflationary/lowflation climate is eroding the debt dynamics of the Club Med bloc. “Japan has managed a similar scenario over the years but only with the active connivance of the Bank of Japan and its acquiescence to debt monetisation – something that is worlds away in the euro-area,” he said.

“All considered, it is difficult not to conclude that the euro-area debt markets are therefore in the grip of speculative forces – forces that convey progress and confidence, but belie an underlying economy that is only just getting to its feet after four years of penury.

“Greece is the euro-area microcosm: its growth remains anaemic, its unemployment queues long with a generation of youth part structurally disengaged, and with debt of 175 per cent of GDP and rising, it is far from clear whether the country can pay its way and avoid further assistance: but despite these profound uncertainties, its government recently returned to the market and despite numerous defaults in recent years, saw its allocation of five year bonds oversubscribed to the tune of 7-1 despite offering a return of less than 5 per cent. If nothing else this surely speaks volumes about the forces permeating markets in 2014.”

Credit Madness, has sustained the EURJPY Currency Carry Trade Investments, such as Luxottica, LUX, Shipping Stocks, SEA, such as KEX, TK, TOO, TGP, SFL, GLNG, GLOG, SBLK, CMRE, NM, DLNG, GLBS, CPLP, GASS, Eurozone Nations, such as Netherlands, EWN, and the European Financial Institutions, EUFN, such as Switzerland’s, UBS, as well as the Design Build Companies, FLM, such as Switzerland’s FWLT.  The EUR/JPY is about to unwind as investors derisk out of the Euro, FXE. which closed at 136.95 on Friday May 2, 2014; look for great deleveraging to reward stock market short sellers.

On March 12, 2014, Tyler Durden wrote Baltic Dry Plunges 8%, Near Most In 6 Years As Iron Ore At Chinese Ports Hits All Time High.  I comment that Shipping Stocks, SEA, relative to the Baltic Dry Index, $BDI, that is SEA:$BDI, is trading quite high; and is going to plummet, driving bulk shipping rates down further; there is coming a wipe out of shipping companies; these will be the first going into the Pit of Financial Abandon.

6) An investment in gold is a significant better investment than short selling.

In the age of the failure of credit, physical possession of gold bullion will be the only sustainable investment.

An investment demand for gold is imminent as investors panic in a flight to safety out of Financial Armageddon, that is credit collapse and financial breakdown foretold in Bible prophecy of Revelation 13:3-4.

The chart of Spot Gold, $GOLD, showed a closed at $1,300; the US Dollar, $USD, closed at $79.56. Gold is in an Elliott Wave 3 of 3 up, rising from an Elliott Wave 2 Down of $1,280; the 3 of 3 up wave is the most dynamic and sweeping of all waves, as it establishes bhe bulk of the wealth on the way up to the wave 5 top.

Jack Chan presents the Gold ETF, GLD, in Safehaven Chart article, This Week In Gold, trading at support of 125 and resting above support at 124.

7) Times of Israel reports Even If Israel Doesn’t Like It, Palestinians Will Get State, US Officials Say. American officials directly involved in the failed Israeli-Palestinian peace process over the last nine months gave a leading Israeli columnist a withering assessment of Prime Minister Benjamin Netanyahu’s handling of the negotiations, indicated that Palestinian Authority President Mahmoud Abbas has completely given up on the prospect of a negotiated solution, and warned Israel that the Palestinians will achieve statehood come what may, either via international organizations or through violence.

The soonest that Palestinian statehood might be achieved is when the Sovereign moves into Jerusalem and announces a middle east peace plan. As foretold in bible prophecy of Revelation 13:5-10, there is waiting in the wings of Europe stage, the most capable of sovereigns. Out of the European Debt Crisis, the Sovereign will step into the limelight, and through cunning and shrewdness rise in power to rule as is seen in Daniel 8:6-8, and as foretold in Revelation 13:11-18, be accompanied in power by the Seignior, that is top dog banker, who in coining money, takes a cut. This New Charlemagne and his Monetary High Priest, will eventually come to rule the world, in a one world religion, from their capital in Jerusalem, as foretold in Daniel 9:25.

8) An improved information sources is now available from Trading Floor

Trading Floor announces New Format On Quant Corner Starts Next Week.

Regional Economic Governance Is Born Out Of The Failure Of Credit And The Death Of Currencies

April 30, 2014

Financial Market Report for the the last three days of April 2014

 

This post can be found in Google Document format here

 

1) … Investors rotated to the defensive sector in a desperate attempt to find a safe haven investment at the end of April 2014.

 

A) … On Monday, April 28, 2014, day traders took the defensive stocks, Electric Utilities, XLU, PUI, such as NEE, andConsumer Staples, KXI, to rally highs.

 

B) … On Tuesday April 29, 2014, day traders took International Energy Companies, IPW, TOT, E,  RDS-B, SNP,  STO, IMO, XOM, CVX, ECA, BP, SSL, SU, HES, CNQ, OXY, to rally highs, causing the Defensive ETF, DEF, as well as petroleum based nations Norway, NORW, Canada, EWC, the UK, EWU, Denmark, EDEN, and Italy, EWI, to rise to new rally highs, stimulating Nation Investment EFA, the Eurozone, EZU, and European Financials, EUFN, to new rally highs, despite a trade lower in the EURJPY.

 

Of note, the chart of the Eurozone Stocks, EZU, shows the diagonal ascending wedge pattern from which prices always fall sharply lower; stocks worthy of short selling include BUD, ASMI, COV, IR, DEG, NVS, NVO, MNK, AER, SNY, LUX, LYB, NXPI, ORAN, ST, TI-A, TS, CSTM, COV, SAN, UBS, LOGI, TEL, FWLT, NVS, ACE, TWM, WFT, GLOG, CMRE, TNP, TOT, and E.

 

The three defensive sectors, International Petroleum, IPW, Electric Utilities, PUI, XLU, and Consumer Staples, KXI, have rallied ten percent in the last three months, as is seen in their combined Yahoo Finance Chart.

 

Inasmuch as one sells into pips in a bear market, just as one buys into dips in a bull market, investors found numerous short selling opportunities, such as in the Life Insurance Companies, UK based PUK, US based GNW, and Netherlands based, ING, as well as in the Top Ten Energy Production Companies, SGY, GPOR, FANG, MTDR, WLL, CLR, EOG, EQT, BXE, and CRZO. The technology sector leader, Apple, AAPL, is an excellent short selling opportunity.

 

Outstanding Debt Trade Short Selling Opportunities include, ARLP, KR, HEES, URI, CE, HW, AHGP, WM, GE, SLCA, PKOH, TOWR, HUN, CAR, FISV, III, GNRC, MWA, BAH, IHG, IGTE, EXAM, POL, FUN, TUP, F, PGI, TOO, ABG, GLP.

 

One could use the Inverse Market ETFs as collateral in a short selling strategy, STPP, XVZ, JGBS, GLD, EUO, YCS, SAGG, DTYS, DNO, PPLT, PALL, HDGE, SBB, SBM, EFZ, YXI, SZK, SDP, KRS, REK, DDG, and CMD.

 

Inasmuch as the charts of the Agricultural Commodities, RJA, such as CORN, WEAT, JJG, SGG, JO, SOYB, have topped out, a farmer might consider might consider selling his farm and investigate International Living opportunities.

 

C) … On Wednesday, April 30, 2014,  India, INP, SCIN, Brazil, EWZ, EWZS, China, CQQQ, YAO,  ECNS, traded lower.

 

Steel, SLX, traded lower as Commodities, DBC, traded strongly lower as Base Metals, DBB, Copper, JJC, Aluminum, JJU, Silver, SLV, and Oil USO, BNO, plummeted.

 

The Interest Rate on the US Ten Year Note, $TNX, closed the month at 2.65%.

 

2) … News and Commentary

 

A) … Toyota to relocate its headquarters

Business Insider reports Toyota Is Moving Its US Headquarters From Torrance CA, To Dallas Texas. Texas Gov. Rick Perry reportedly courted Toyota by promising lower taxes and easier regulations,according to Bloomberg.

 

B) … By God’s design, the UK must be and will be subordinate to the Eurozone.

Jason Ditz of Antiwar posts UK Foreign Secretary William Hague Says Britain Will Accept Economic Damage to Sanction Russia … Insists anything that hurts Russia is a ‘price worth paying’.  

 

With the failure of credit seen in World Stocks, VT, trading lower from their rally highs, and the death of currencies seen in the Australian Dollar, FXA, and the Chinese Yuan, CYB, trading lower, it is God’s purpose and design  in the age of regional governance and totalitarian collectivism, that the UK, a signatory to Maastricht Treaty, exist as subordinate to the EU.

 

A new currency and governmental regime is rising out of the failure of credit and the death of currencies; it is the regime of regional diktat money and regional economic governance, something that is implicit in Daniel’s Statue of Empires, seen in bible prophecy of Daniel 2:25-45, where the two iron legs of global hegemonic power, these being the UK and the US, flow into the ten toes of iron diktat and clay totalitarian collectivism; these toes are the same reality seen in the governance of the ten horns, that is the ten world regions, and the totalitarian collectivism experience of mankind’s seven institutions, foretold in the Beast prophecy of Revelation 13:1-4.

 

C) … The price of oil, natural gas, and gasoline will be determined by diktat, as risk-on investing has turned to risk-off investing.

While Nation Investment, EFA, led by EWC, EWU, and Small Cap Nation Investment, SCZ, led by NORW, EDEN, and EWI, have risen to rally highs, global fiat asset prices are falling as the fiat money bubble has finally burst. Equity Investments, that is World Stocks, VT, and Global Financial Institutions, IXG, as well as Credit Investments, that is Aggregate Credit, AGG, are trading lower from their April 9, 2014, highs, this coming on the failure of credit in China, in Russia, and in the US.

 

Another word for credit is trust. Investors no longer trust that the monetary policies of the world’s central banks will stimulate investment gains, and thus are derisking out of debt trades, such as Leveraged Buyouts, PSP, and Mortgage Backed Real Estate, BX, and deleveraging out of currency carry trades.

 

With the bond vigilantes calling the Benchmark Interest Rate from 2.49% on October 23, 2013, to 2.6% on February 1, 2014, and now 2.65% at the end of April 2014, its  Global ZIRP no more. The Banker Regime of Pursuit Of Yield Bearing Investments, such as Water Resource, PHO, and more specifically High Yielding Debt Investments, such as Junk Bonds, JNK, is history.

 

The failure of credit came the week ending April 25, 2014, and constitutes the most significant economic event since President Nixon took the US off the gold standard in 1971

 

The failure of credit pivots  the world out of the age of credit and into the age of debt servitude, and is evidenced by the parabolic turn lower in Chinese Financials, CHIX, China Investments, YAO, China Technology, CQQQ, China Industrials, CHII, China Real Estate, TAO, as well as Regional Banks, KRE, the US small Caps, IWC, IWM, the National Bank of Greece, NBG, Greece, GREK, Ireland’s Bank, IRE, and Ireland, EIRL, as well as Credit  Providers Visa, V, and Mastercard, MA, the nation of Russia, RSX, ERUS, and Debt Trades, such as Blackstone, BX, and Leveraged Buyouts, PSP, and manifests as the death of Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB.

 

A new currency and governmental regime is being born out of the failure of credit and the death of currencies; it is the regime of regional diktat money and regional economic governance, something that is implicit in Daniel’s Statue of Empires, seen in bible prophecy of Daniel 2:25-45, where the two iron legs of global hegemonic power, these being the UK and the US, flow into the ten toes of iron diktat and clay totalitarian collectivism; these toes are the same reality seen in the governance of the ten horns, that is the ten world regions, and the totalitarian collectivism experience of mankind’s seven institutions, foretold in the Beast prophecy of Revelation 13:1-4.

 

The world economy will not be expanding; but prices may be headed higher on 1) global instability, 2) supply disruption, 3) lack of refinery capability, 4) diktat from regional leaders issuing mandates to refineries in the US, that is Valero, VLO, Marathon, MPC, Phillips 66, PSX, and Hollyfrontier, HFC; which may be restrained by diktat from exporting to certain countries and/or be told to whom and what price they will sell.

 

The price of energy, that is Crude Oil, USO, and its refined product, that is Gasoline, UGA, and its distributed product, that is Natural Gas, UNG, will be determined by diktat in the age of regional governance and totalitarian collectivism.

 

Regional leaders throughout the world, such as those in the US, in the Eurozone, will determine the economic value of things, and thus determine the distribution, and price of oil, gasoline and natural gas. There will be certainly be no free prices as desired by Austrian economists, and there will be no market determined prices as there has been by economic systems of Crony Capitalism, European Socialism, Russian Communism, and Chinese Communism. All of these isms are gone forever, and now there is the singular economic system, that is the singular ism of Regionalism, which provides policies of fascism to establish regional security, stability, and sustainability.

 

D) … Regional economic governance is born out of the see saw destruction of equity investments and credit investments, as bond vigilantes are calling the Benchmark Interest Rate higher from its October 23, 2013, value of 2.49%, and its February 1, 2014 value of 2.6%, to 2.65% at the end of April 2014.
A number of investors are still long stocks, or have gone long stocks, hoping for a bounce higher, and are short Treasuries. Those investors who are short Treasuries, such as the US Ten Year Note, TLT, are in for a rude surprise, as its chart shows it to be in the process of topping out and turning over.

 

 

John The Revelator wrote of debt deflation, beginning with Revelation 1:1, communicating those things which must shortly come to pass, meaning those events which when they occur, fall rapidly in place, like lined dominoes toppling one upon another. Both Equity Investments and Credit Investments are now trading lower; more specifically they are both  falling into the Pit of Financial Abandon, on the failure of fiat money, which is defined as the combination of Major World Currencies, DBV, and Emerging Market Currencies, CEW, together with Aggregate Credit, AGG.

 

The Small Cap Developed Market Nations, SCZ, that are at the greatest risk of debt deflation are MES, ENZL, EDEN, DFE, EWS, EWI, ENZL, and GERJ, as is seen in their ongoing Yahoo Finance Chart.

 

The Debt Loaded Emerging Market Nations, EMHD, that are at the greatest risk of debt deflation are IDX, THD, EPHE, THD, SCIN, EGPT, GXG, ARGT, GAF, and EMHD, as is seen in their ongoing Yahoo Finance Chart.

 

Not only are World Stocks, VT, Global Financial Institutions, IXG, trading lower from their April 9, 2014, highs; this coming on the failure of credit in China, in Russia, and in the US; but now Aggregate Credit, AGG, is also trading lower.

 

The collapse of fiat wealth is seen in the ratio of World Stocks, VT, unable to leverage higher over Bonds, BOND, VT:BOND.

 

A see saw destruction of fiat wealth is underway as the bond vigilantes are having success in calling the Interest rate on the US Ten Year Note, ^TNX, higher from its March 1, 2014, value of 2.6%, and are having success in steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, as Jesus Christ has released the Rider on the White Horse, that is the First Horseman of the Apocalypse of Revelation 6:1-2, to effect coup d’etats.

 

The US is increasingly losing its Dollar hegemonic power. In its place, the Ten Toed Kingdom of regional economic governance, as seen in Daniel 2:25-45, with toes of iron diktat and clay totalitarian collectivism, that is the diktat money system, which is defined as trust in the mandates of regional fascist leaders.

 

Some believe that Treasuries, GOVT, have many reasons to rally and will outperform their US equity counterparts into the end of 2014.

 

This will not be the case, as credit has failed; that is trust in the world central banks’ monetary authority has failed; and with currencies dying, there will be ever increasing inability to purchase US Debt, such as ZROZ, EDV, TLT, and MBB, as well as European Debt, EU.

 

Out of the death of fiat money, defined as the combination of Major World Currencies, DBV, and Emerging Market Currencies, CEW, together with Aggregate Credit, AGG, people will come to trust in the new money, that being diktat money, which is defined as trust in the mandates of regional fascist leaders.

 

New monetary authority will come out of a soon coming global financial system collapse, as leaders meet in summits to renounce national sovereignty, and announce regional framework agreements that establish policies of diktat and schemes of totalitarian collectivism for regional  security, stability and sustainability. Leading European Bankers such as those profiled on the Center for Financial Studies, CFS, a Rothschild organization, will be the talking heads establishing diktat money.

 

On Tuesday, April 29, 2014, the demand for defensive International Energy, IPW, was so strong that it took Italy, EWI, and France, EWQ, to rally highs based upon Italy’s ENI, E, and France’s Total, TOT; thus driving Dividends Excluding Financials, DTN, as well as European Financials, EUFN, and the Eurozone Stocks, EZU, to new rally highs; this despite a trade lower in the EUR/JPY, as the Euro, FXY, traded down lower more than the Yen, FXY.

 

According to logic flowing from Bible Prophecy of Revelation 13:1-4, in the Eurozone, EZU, after the crash of the European Financials, EUFN, the Eurozone Nations, and the Eurozone Stocks, the periphery nations, that is the Club Med Nations, Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, known as the PIGS, will exist as hollow moons revolving around economic planets Germany and  Brussels with confirmation coming from the Green Quiz post. Merkel Expects Structural Reforms In Rome. There is a certain expectation in Germany, given by the new style of Renzi, but also some skepticism dictated from above. “When it comes to reforms, will not be like his predecessor Mario Monti, recently wrote Thomas Mayer, the Center for Financial Studies and a former chief economist of Deutsche Bank, that after a good take-off is back on earth.”

 

Kumaran Ira of WSWS posts Pointing To Rise Of Neo Fascists, Banks Demand Austerity In France.

Financial markets are calling on the Socialist Party government of Prime Minister Manuel Valls to intensify attacks on the working class

 

3) … Where is the world headed?

Mark Thoma reports that the Milken Institute gathered the greatest economists of our time to ask  ‘Where the World Is Headed’

 

The panel brings together prominent economists to debate a range of issues with global scope: from inequality and emerging markets to austerity policies and the impact of technology on employment. This will be a free-ranging discussion focused on where the world is headed and what can be done to improve economies and people’s lives everywhere.

  • Speakers:Ken Rogoff, Professor of Economics, Harvard University; Former Chief Economist, International Monetary Fund
  • Nouriel Roubini, Chairman, Roubini Global Economics; Professor of Economics, Stern School of Business, New York University
  • John Taylor, Mary and Robert Raymond Professor of Economics, Stanford University; George P. Schultz Senior Fellow in Economics, Hoover Institution
  • Moderator:Gerard Baker, Managing Editor, The Wall Street Journal; Editor-in-Chief, Dow Jones & Company.

 

Justin Fox writes in Harvard Business Review Economics Is Due For A Paradigm Shift

 

I relate that one must look to the Author of Life and to the stewardship of His economic rule to understand where the world is going.

 

Life is an experience in sovereignty and seigniorage, where money is the credit and flow from sovereigns, who establish economic value.Money is created out of the trust in the policies and schemes of the prevailing sovereigns.  

 

With the repeal of the Glass Steagall Act and the creation of the Euro, both in 1999, the Banker Regime provided policies of investment choice and schemes of credit, which established fiat money, and generated stupendous prosperity in a number of communities; these include, Irvine, CA 92614, Carrollton, TX 75006, Lone Tree, CO, 80124, and Falls Church, VA, 22046.

 

As is seen in Revelation 6:1-2, Jesus Christ opened the First Seal of the Scroll of End Time Events, and enabled the Rider on The White Horse to begin his ride over the earth on October 23, 2013. This enabled the bond vigilantes to  wrest control of the Bow of Economic Sovereignty, that is the Interest Rate on the US Ten Year Note,  ^TNX, from the Banker Regime, and use it to transfer sovereignty to the Beast Regime, specifically  regional sovereign leaders, with the effect that credit has failed, and currencies are dying.

 

Debt deflation is causing disinvestment out of the most debt leveraged and currency carry trade leveraged investments, with the result that fiat money has died, and the Beast Regime is rising in power creating diktat money through policies of diktat and schemes of debt servitude. Diktat money is rising as the flag and standard of economic activity.

 

As is seen in Ephesians 1:10, Jesus Christ acting in the economy of God, perfected the former age and paradigm of credit and its seigniorage of investment choice, by producing peak wealth; and is now pivoting the world into the era and paradigm of diktat and its seigniorage of debt servitude.

xxxx

While Nation Investment, EFA, led by EWC, EWU, and Small Cap Nation Investment, SCZ, led by NORW, EDEN, and EWI, have risen to rally highs, global fiat asset prices are falling as the fiat money bubble has finally burst. Equity Investments, that is World Stocks, VT, and Global Financial Institutions, IXG, as well as Credit Investments, that is Aggregate Credit, AGG, are trading lower from their April 9, 2014, highs, this coming on the failure of credit in China, in Russia, and in the US.

Another word for credit is trust. Investors no longer trust that the monetary policies of the world’s central banks will stimulate investment gains, and thus are derisking out of debt trades, such as Leveraged Buyouts, PSP, and Mortgage Backed Real Estate, BX, and deleveraging out of currency carry trades.

With the bond vigilantes calling the Benchmark Interest Rate from 2.49% on October 23, 2013, to 2.6% on February 1, 2014, and now 2.65% at the end of April 2014, its  Global ZIRP no more. The Banker Regime of Pursuit Of Yield Bearing Investments, such as Water Resource, PHO, and more specifically High Yielding Debt Investments, such as Junk Bonds, JNK, is history.

 

 

The See Saw Destruction Of Fiat Investments Commences On The Failure Of Credit In China, In Russia, And In The US

April 27, 2014

Financial Market Report for the week April 25, 2014

This post is found in Google format here

1) … Introduction

An inquiring mind asks, is it as Automatic Earth posts, QE: A Fraud Perpetuated By Made Men, …… or is it as Macronomics posts QE: The Hocus Pocus Of Magicians …… or is it as the Apostle Paul presents in Ephesians 1:10, QE: The Economy Of God By Jesus Christ?

He is perfecting every age, bringing it to full completion and maturity. He has been successful in perfecting the age and paradigm of credit and currency carry trade investing, by driving the Eurozone Stocks, EZU, up to their rally high on April 9, 2014, and then pivoting them lower, on April 10, 2014, and then pivoting them lower again on Friday, April 25, 2014.

The perfection of the age of credit and currency carry trade investing is seen in the trade lower in China, YAO, ECNS, TAO, CHIX, in Russia, RSX, ERUS, and in US Small Cap, IWC, IWM, as well as  US Regional Banks, KRE and Credit Providers, V, and Mastercard, MA.

In the final two years of the age of credit, Ireland’s Bank, IRE, and Ireland, EIRL, provided stellar debt trade and currency carry trade investment rewards to the savvy investor, as is seen in the combined  ongoing Yahoo Finance chart of Ireland’s Bank, IRE, Ireland, EIRL, Eurozone Stocks, EZU, Nation Investment, EFA, and the European Financials, EUFN.

The world passed through peak prosperity on April 9 2014, with the failure of credit in the Eurozone, in China, and in the US, as investors no longer trust that the monetary policies of the ECB, the PROC, or the US Fed to stimulate investment growth. The dynamos of creditism, corporatism and globalism are winding down as investors are derisking out of fiat money debt trades and currency carry trades.

Risk-on investing has turned to risk-off investing; the money bubble has finally burst, as both Equity Investments and Credit Investments as well as Nation Investment, and Small Cap Nation Investment, and Global Financial Institutions, are trading lower from their April 9, 2014, highs, this coming on the failure of credit in China, in Russia, and in the US.

Now, the investor is going extinct; especially the fixed income investor; that is those invested in a Pursuit Of Yield like those invested in Electricity Utility Stocks, PUI, XLU, such as New Era Energy,  NEE, Real Estate REITS, RWR, such as General Growth Properties, GGP, in Energy Partnerships, AMJ, such as Cheniere Energy, LNG, and Oiltanking Partners, OILT.

The failure of credit is an extinction event, that pivots the world economy out of liberalism, that is the paradigm and age of credit and investment choice, and into authoritarianism, that is the paradigm and age of diktat and debt servitude, which features the debt serf, is the centerpiece of economic activity.

Under the power of the Rider on the White Horse, as is seen in Revelation 6:1-2, the bond vigilantesare effecting a global economic coup d’etat, transferring sovereignty from democratic nation states to sovereign regional leaders and sovereign regional bodies, such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, and are powering up the singular dynamo of regionalism to establish regional security, stability, and sustainability, to deal with the destructionism of unwinding currency carry trades and debt trades, such as those now seen in Eurozone Small Cap Dividends, DFE, and the National Bank of Greece, NBG, trading lower.

Hans Werner Sinn provides the correct analysis of the European Debt Crisis writing Project Syndicate Europe’s Next Moral Hazard. The limit beyond which Eurozone governments’ creditors become anxious has been raised significantly by the bailout architecture put in place over the last two years. This will bring a few years of calm as debt levels climb steadily to that limit, before the architecture collapses, injuring ordinary citizens the most.

Europe and the world does not have several more years.

Out of a soon coming Financial Apocalypse, that is a credit bust and financial system breakdown, the Beast Regime, seen in Revelation 13:1-4, will rise to replace Banker Regime, and by implementing  policies of regional economic governance, and schemes of totalitarian collectivism, will establish regional panopticons of debt servitude, with the Eurozone Nations serving as the ultimate example of regional fascism.

There will be no European Mobility Assistance Scheme, as VOX authors hope. And there will be no UMP as Bruegel writes: The appeal of another LTRO-like operation seems quite small if not non-existent in such a context; therefore,The Time Has Come For Truly Unconventional Monetary Policy.

Jesus Christ is developing new sovereigns for a new age. Under liberalism, the speculative investment community provided seigniorage through money manager capitalism. Under authoritarianism, regional leaders provide seigniorage through the word, will and way of their diktat, a case in point being the Troika’s management of the Greek economy and the terms of assistance to Ireland. Ongoing policies, of diktat coming through the singular dynamo of regionalism, will be the basis for trust in diktat money to provide for regional security, stability and sustainability.

Specifically out of Eurozone sovereign, banking and corporate insolvency, leaders will meet in summits to renounce national sovereignty and announce pooled regional sovereignty, where regional framework agreements will provide the legal basis for regional economic fascism enabling leaders from Brussels and Berlin to rule in diktat establishing Europe as a preeminent world power.

All fiat investments, whether they be real estate, stocks or bonds, will for ever be going forever lower, as the cost of money, that is the Benchmark Interest Rate, that is the US 10-Year Treasury Constant Maturity Rate, … $TNX,  … will be going higher, from the range of 2.60% to 2.72%, as investors have concluded that the world central banks monetary policies can no longer stimulate investment growth.

 

2) … Financial market trading reveals that peak wealth was attained April 25, 2014.

 

On Monday, April 21, 2014, Russia Small Caps, ERUS, Emerging Europe, ESR, Mexico, EWW, and Chile, ECH, traded lower, leading Small Cap Nation Investment, IFSM, lower, as Robert Wenzel of EPJ reports Tensions Escalate In The Ukraine.

On Tuesday, April 22, 2014, the most speculative of all stock investments bounced higher. European Small Cap Dividends, DFE, Eurozone Stocks, EZU, and European Nations, such as Germany, EWG, as well as Australia, EWA, bounced higher, bouncing Nation Investment, EFA, higher.

 

Egypt, EGPT, German Small Caps, GERJ, Russell 2000, IWC, IWM, Gulf State, MES, Russia Small Caps, ERUS, Denmark, EDEN, Argentina, ARGT,  and Singapore, EWSS, bounced higher, bouncing Small Cap Nation Investment, IFSM, higher.

Regional Banks, KRE, Investment Bankers, KCE, Stockbrokers, IAI, European Financials, EUFN, and the Too Big To Fail Banks, RWW, bounced higher, bouncing Global Financials, IXG, higher.

Leveraged Buyouts, PSP, Australia Dividends, AUSE, Gulf Dividends, GULF, Smart Grid, GRID, International Telecom, IST, Emerging Markets High Dividend, EMHD, and Global Real Estate, DRW, bounced higher, bouncing Dividends Excluding Financials, DTN,  higher.

Sectors Solar Energy, TAN, Biotechnology, IBB, Pharmaceuticals, PJP, Nasdaq Internet, PNQI, Internet Retail, FDN, China Technology, CQQQ, Resorts and Casinos, BJK, Media, PBS, Cloud Computing, SKYY, Software, IGV, IPOs, FPX, Small Cap Pure Value, RZV, Small Cap Pure Growth, RZG, Consumer Services, IYC, Retail, XRT, Small Cap Consumer Discretionary, PSCD, Small Cap Consumer Staples, PSCD, Semiconductors, SOXX, Industrial Miners, PICK, bounced higher, bouncing World Stocks, VT, higher. Gold Miners, GDX, and Silver Miners, SIL, traded higher, on higher precious metal, JJP, prices.  Transports, XTN, such as Airlines, Trucking, and Railroads, traded higher on a lower price of Oil, USO. Energy Production, XOP, traded lower on a lower price of Oil, USO.

The Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher, to 2.73%, turning Aggregate, AGG, slightly lower.

Despite the trade higher in World Stocks, VT, Nation Investment, EFA, IFSM, and Global Financials, IXG, are unable to leverage higher over Aggregate Credit, AGG, as is seen in their combined ongoing Yahoo Finance Chart.

Economic Policy Journal posts the Tyler Durden Zero Hedge article The Fed’s Farcical Forecast Fiasco. In response, I write the age of jawboning is over; the Creature from Jekyll Island is having its teeth busted out by the bond vigilances; it has gone toothless; this is by God’s express design, as He has appointed His Son Jesus Christ to be sovereign in all things.

Jesus Christ has opened the first seal of the Scroll of End Times events, as is seen in Revelation 6:1-2, and has released the Rider on the White Horse, who has the Bow Without Any Arrows, that is the Bow of Economic Sovereignty, whereby the bond vigilantes have calling the Interest Rate on the US Ten Year Note, ^TNX, higher from its October 23, 2013 value of 2.48%, and have been steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, beginning in March 2014 and then again in April 2014, with the result of the failure of credit and the creation of coup d’etats worldwide, beginning in the Ukraine. Liberalism’s dynamos of creditism, corporatism and globalism, are winding down investment growth; and are powering up authoritarianism’s singular dynamo of regionalism establishing debt servitude.

A new sovereignty is emerging, that is the Beast of Revelation 13:1-4 is replacing the Creature from Jekyll Island; its seigniorage, that is its moneyness, of diktat money is replacing fiat money; this being evidenced by the Elaine Meinel Supkis post Biden gives Ukraine $70 Million In Bribes, Warns Of Corruption

 

On Wednesday, April 23, 2014, a see saw destruction of fiat investments commencedon the failure of credit in China.

China, YAO, China Real Estate, TAO, led by the Chinese Financials, CHIX, led Nation Investment, EFA, lower. And  Greece, GREK, led by the National Bank of Greece, NBG, Emerging Europe, ESR, Turkey, TUR, Philippines, EPHE, Thailand, THD, Mexico, EWW, and Chile, ECH, led Small Cap Nation Investment, IFSM, lower, as Mike Mish Shedlock posts China Manufacturing Output And New Orders Contract Once Again.

The concept is that credit stimulus of the PROC and world central banks is unable to produce on going economic growth, and as a result of this failure of credit, investments in the most credit stimulated investments, that is the most currency carry traded and debt traded investments is underway.

Robert Wenzel of EPJ posts US was the World’s Largest Petroleum Producer in December for the 14th Straight Month. Energy Production, XOP, and Energy Service, OIH, traded higher as Bill Van Auken of WSWS reports Kiev Regime Orders Crackdown As US Steps Up Threats Against Moscow. Biden’s visit to Ukraine produced an escalation of US threats against Russia and a resumption by the regime in Kiev of the crackdown against its opponents in the east of the country.

Dividend Excluding Financials. DTN, traded higher, as Gulf Dividends, GULF, Electric Utilities, PUI, XLU, North American Energy Partnerships, EMLP, Energy Partnerships, AMJ, Mortgage REITS, REM, traded higher, as the Benchmark Interest Rate, $TNX, traded strongly lower to 2.69%.

It is the Far East Financials, FEFN, such as Japan’s IX, MFG, SMFG, MTU, the Chinese Financials, CHIX, the Regional Banks, KRE, and the National Bank of Greece, NBG, that are leading all equity investments lower, on the exhaustion of the world central banks monetary authority, as investors greed has turned to fear; specifically fear that the world central banks policies no longer stimulate investment growth as is seen in their combined ongoing Yahoo Finance Chart.

Property And Casualty Insurance Firms, CB, TRV, ACE, AIG, ALL,most likely topping out in value.

And Closed End Funds, PTY, AWP, PFL, RCS, EIM, traded by the ETF, GCE, traded higher, most likely topping out in value, while CSQ, traded lower. The trade lower in Equity Closed End Fund, CSQ, relative to the Overall Equity Closed End Fund, GCE, CSQ:GCE, communicates that investors interest in closed end funds has likely peaked out.

Investors plowed money into Precious Metal Stocks, that is Gold Miners, GDX, GDXJ, and Silver Miners, SIL, SILJ. with the purest of plays, that being Allied Nevada, ANV, and Agnico Eagle Mines, AEM, rising the most. With high PE’s will Gold Mining Stocks, GDX, and Silver Mining Stocks, SIL, soar in value?

Aggregate Credit, AGG, bounced higher, as the Benchmark Interest Rate, $TNX, traded strongly lower to 2.69%. While US Treasuries, TLT, traded higher, Emerging Market Local Currency Bonds, EMLC, Emerging Market Bonds, EMB, and Chinese DSUM Bonds, DSUM, traded lower, turning the Chinese Yuan, CYB, and Emerging Currencies, CEW, lower, with Bloomberg reporting, Yuan Falls to Lowest Since 2012 as China Data Signals Slowdown, And Major World Currencies, DBV, turned lower on a lower Australian Dollar, FXA, largely on the fears that the world central bank’s monetary policies no longer stimulate investment growth, and in fact are now making “money good” investments bad.

 

On Thursday, April 24, 2014,  Nations, China, YAO,  ECNS, China Real Estate, TAO, and Russia, RSX,  ERUS, traded lower. and also Regional Banks, KRE, joined the debasement, and traded lower. The word trust is synonymous is credit. Their trade lower comes on the loss of trust in the PROC to cover debts of all types, the loss of trust in Russia to make good on its debt, and the loss of trust in Janet Yellen to provide sufficient stimulus to produce investments gains. This loss of trust represents a failure of credit in China, in Russia and in the US.

 

On Friday, April 25, 2014, Debt deflation, that is currency deflation, was active in the equity markets, driving stock investments of all types lower.

World Currencies, DBV, traded decisively lower, as the Canadian Dollar, FXC, traded lower, taking Canada, EWC, lower.

Emerging Market Currencies, CEW, traded lower, on a lower Ruble, FXRU, taking Russia, RSX, ERUS, lower; on a lower Brazilian Real, BZF, taking Brazil, EWZ, EWZS, lower; and on a lower Yuan, CYB, taking China, YAO, lower

Bloomberg reports G-7 Leaders Agree to Act Against Russia as Deal Falters. The Group of Seven nations are preparing new measures against Russia, German Chancellor Angela Merkel said, after U.S. Secretary of State John Kerry accused Russia of trying to impose its will at “the barrel of a gun.” And  Business Insider reports Merkel Warns Putin: You Have Failed The Peace Process, And New Sanctions Are Coming and Russia Says Kiev ‘Will Face Justice’ For ‘Bloody Crime’ In Ukraine.

Chinese Financials, CHIX, and Regional Banks, KRE, traded lower, leading Global Financials, IXG, as well as China, YAO, and the US Small Caps, IWC, IWM, lower. Of note, Visa, V, and Mastercard, MA, traded strongly lower, leading Credit Services, such as H&E Equipment Services, HEES, and United Rentals, URI lower; all evidencing the failure of credit, both in China, and in the US.

Russia, RSX,  ERUS, Emerging Europe, ESR, Taiwan, EWT, South Korea, EWY, Hong Kong, EWH, Singapore, EWS, Thailand, THD, US Small Caps, IWC, IWM, Brazil, EWZ, Brazil Small Caps, EWZS, China, YAO, China Small Caps, ECNS, Denmark, EDEN, Turkey, TUR, Chile, ECH, Greece, GREK, and Argentina, ARGT, trading lower, led Nation Investment, EFA, lower, evidencing the failure of currencies world wide.

Sectors Social Media, SOCL, Internet Retail, FDN, Nasdaq Internet, PNQI, Media, PBS, Solar Energy, TAN, Biotechnology, IBB, Cloud Computing, SKYY, Software, IGV, Resorts and Casinos, BJK, Automobiles, CARZ, Consumer Discretionary, IYC, Industrial Producers, FXR, Transportation, XTN, and Small Cap Pure Growth, RZG, traded lower, leading World Stocks, VT, lower. Building Materials traded lower. Semiconductor Equipment Manufacturers, such as AMAT, KLAC, TER, and  also Semiconductors, SOXX, traded lower on the trade lower in Taiwan, EWT, and South Korea, EWY, as John Glaser posts in Antiwar Obama Says Pact Obliges US to Protect Japan in Islands Fight. One can follow the ongoing debt deflation and failure of currencies with this Finviz Screener of Equity ETFs.

Dividends Excluding Financials, DTN, traded lower on the day, producing a rounded top high in these yield bearing stocks.

China Real Estate, TAO, led Global Real Estate, DRW, and US Real Estate, IYR, lower from their 10 Year Yield, ^TNX, credit induced market tops . Industrial Office REITS, FNIO, Residential REITS, REZ, and Retail REITS, traded lower lower, on the lower World Major Currencies, DBV, and lower Emerging Market Currencies, CEW.

Eurozone Stocks, EZU, traded lower on unwinding currency carry traded investing, as the Yen, FXY, traded higher than the Euro, FXE. Disinvestment out of the debt traded National Bank of Greece, NBG, and Greece, GREK, turned European Credit, EU, lower.

Energy Production, XOP, such as Gulfport Energy, GPOR, and Energy Partnerships, AMJ, such as Cheniere Energy, LNG, and Oiltanking Partners, OILT, and Refiners, such as Marathon, MPC,and Fracking Companies, such as Basic Energy Services, BAS, traded lower from their rally highs, on a sharply lower price of Oil, USO, as The California Beach Pundit posts Amazing Increase In US Oil Production. Look for the Ten Fastest Rising Energy Production Stocks, SGY, GPOR, FANG, MTDR, WLL, CLR, EOG, EQT, BXE, CRZO, to be the fastest fallers.

The Morgan Stanley Cyclical Index, $CYC, traded lower from its rally high as the WSJ reports Auto Maker Ford Reports Surprising 39% Profit Drop. Ford, F, cites costs to fix older vehicles, currency issues in South America; and as Alcoa Aluminum, AA, traded lower on a lower price of Aluminum, JJU. And the Serge Perreault chart of the $SPX, S&P 500, shows market top completion.

Aggregate Credit, AGG, traded higher, but resides below its April 10, 2014 high, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.66%, which, together with the 10:30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened, as is seen in the Steepner ETF, STPP, flattening, drove the Zeroes, ZROZ, 30 Year US Government Bonds, EDV, and the 10 Year US Notes, TLT, parabolically higher, to what is likely their rally highs.  Of note, the ongoing Yahoo Finance Chart of these US Debt Instruments shows that the Zeroes, ZROZ, have soared twelve percent in value since the first of the year, illustrating the dramatic movement that occurs in longer duration bond when the Benchmark Interest Rate, $TNX, trades lower. Mortgage Backed Bonds, MBB, traded lower from their April 9, 2014 high and Originator Times posts Freddie Mac: Mortgage Rates Reverse Course, Rise.  Emerging Market Local Currency Bonds, EMLC, Emerging Market Bonds, EMB, Emerging Market Corporate Bonds, EMCD, Chinese Bonds, DSUM, traded lower, on the lower Emerging Market Currencies, CEW.  European Credit, EU, traded lower from its all time high, evidencing failure of credit in the Eurozone.  One can follow the ongoing failure of credit with this Finviz Screener of Credit ETFs.  And one can follow the ongoing debt deflation and failure of currencies with this Finviz Screener of Equity ETFs.

Mortgage REITS, REM, and Electric Utilities, PUI,  XLU, traded higher to what is likely going to be their market tops, on the lower Benchmark Interest Rate, $TNX.

Gold Miners, GDX, traded higher as Gold, $GOLD, rose to $1,303, establishing that it has entered an Elliott Wave 3 of 3 Up; these are the strongest of all economic waves as the build the bulk of wealth on the way up to their Wave 5 high. It’s unlikely that Precious Metal Miners, GDX, and SIL, will rise much higher as companies such as American Barrick, ABX, already have a PE of 15.

 

3) … The week ending April 25, 2014, marked a pivotal week in the world’s economic history, as currencies are no longer floating, they are sinking, with the result that a see saw destruction of equity investments and credit investments has commenced; democratic nation state governance will soon literally crumble. The age of credit is history; the age of debt servitude has commenced.

The death of currencies commenced April 23, 2014. Major World Currencies, DBV, specifically the  the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB, the Russian Ruble, FXRU, traded lower, on the failure of credit in China, and in Russia.

The age of credit had its genesis and genius of the Milton Free To Choose economic doctrine, which encouraged President Nixon to go off the gold standard in 1971, and let currency float according to investment opportunities in democratic nation states.

Investors no longer trust the world central bankers, that is PROC banking leaders, Janet Yellen, or Mario Draghi, to sustain investment opportunities, as evidenced by the ongoing trade lower in the Chinese Financials, CHIX, Russia, RSX, ERUS, the Regional Banks, KRE, and the National Bank of Greece, NBG.

The failure of credit and the resulting death of currencies is seen in Nation Investment, EFA, Global Financials, IXG, and World Stocks, VT, trading lower from their rally highs; thus the destruction of equity investments has commenced; the destruction of credit investments, specifically Aggregate Credit, AGG, occurred in May, 2014. Hence a see saw destruction of fiat investments is underway.

Credit leveraged sectors experienced the sharpest decline on the failure of credit: these ten are Solar Energy TAN, Biotechnology, IBB, Internet Retail, FDN, Nasdaq Internet, PNQI, Media, PBS, Cloud computing, SKYY, China Technology, CQQQ, Small Cap Pure Growth, RZG, (as is seen in their combined ongoing Yahoo Finance Chart). Building Material Stocks have fallen strongly as well.

Technically speaking fiat money died the week ending April 25, 2014, as money is defined as the combination of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW. Inasmuch as Major World Currencies, DBV, and Emerging Market Currencies, CEW, have turned decisively lower, they now join Aggregate Credit, AGG, in trading lower, and thus fiat money died the week ending April 25, 2014.

Looking in the rear view mirror, Liberal writer Ambrose Evans Pritchard writes America Has Conquered Its Debt Crisis with incredible speed.  US Congressional Budget Office expects the budget deficit to drop to 2.8pc of GDP this year, and 2.6pc next year.

The age of debt servitude has its genesis out of the failure of credit and the death of currencies.

A new currency and governmental regime is coming out of the failure of credit and the death of currencies; it is the regime of regional diktat money and regional economic governance, something that is implicit in Daniel’s Statue of Empires, seen in bible prophecy of Daniel 2:25-45, where the two iron legs of global hegemonic power, these being the UK and the US, flow into the ten toes of iron diktat and clay totalitarian collectivism; these toes are the same reality seen in the governance of the ten horns, that is the ten world regions, and the totalitarian collectivism experience of mankind’s seven institutions, foretold in the Beast prophecy of Revelation 13:1-4.

Currency deflation is underway and it is going to be terrifically economically deflationary. Fiat money is failing; yes money is deflating in value. Currencies are the wheels that economies run on; their value comes from the coinage of sovereign authority. Now with the Benchmark Interest Rate, $TNX, rising, from 2.48% since October 28, 2013, destroying the value of money, sovereigns will be losing their shirts, and investors their skins, as the wheels of the world’s economies literally disintegrate causing the national economies to crash and burn; most certainly the Russian Ruble, and the economy of Russia being fatal examples of the disintegration of national sovereignty. Out of this disintegration, that is out of the death of money, will come an eastern economic fascist region replacing Russian communism.

New money will be coming from new sovereigns, that being regional sovereign economic leaders whose policies of diktat and schemes of debt servitude coin the new money, that being diktat money, and is defined as the word, will and way of regional leaders used to establish regional security, stability and sustainability.

Democracy no more; rather regional fascism will be the new normal. For Russia, as well as for China, economic capability will come via regional trade in commodities such a oil, natural gas, coal, and agricultural commodities featuring undollar, and non dollar bartering, and managed regional economies to establish regional security, stability, and sustainability.

Another word for credit is trust. Investors greed has turned to fear; fear that debtors will not repay lenders, with the result that the Pursuit Of Yield Investments such as Leveraged Buyouts, PSP, Emerging Market Financials, EMFN, Shipping, SEA, Chinese Real Estate, TAO,  Water Resources, FIW, Energy Partnerships, AMJ, and Global Utilities, DBU, which underwrote the age of credit, are now trading lower.  It’s “Hasta la vista baby” to Shippers, specifically the Greek shippers, NM, SB, DSX, NNA, TNP and GASS.

Global ZIRP, and the currency carry trade investing, such as the GBP/JPY, which drove up the value of the UK Small Caps, EWUS, as well as the debt trade, such as Prudential, PRU, it provided, ended on April 25, 2014, as the failure of credit, drove currency traders to sell the British Pound Sterling, FXB, relative to the Japanese Yen, FXY; seen in the chart of FXB:FXY.

Floating currencies no more: currencies, such as the Russian Ruble, FXRU, and the Chinese Yuan, CYB, are sinking. Debt deflation, that is competitive currency devaluation commenced at the hands of the currency traders on Wednesday April 23, 2014, on the failure of credit, causing deleveraging out of debt trades worldwide, such as Blackstone, BX, Leveraged Buyouts, PSP, such as Delphi, DLPH, and LKQ Corp, LKQ, and Global Real Estate, DRW, and derisking out of currency carry trades, such as Solar Energy, TAN, Biotechnology, IBB, Social Media, SOCL, Nasdaq Internet, PNQI, China Technology,  CQQQ, Cloud Computing, SKYY, Software, IGV, Media, PBS, Internet Retail, ITB, Retail, XRT, Homebuilding, ITB, Gaming, BJK, Industrial Miners, PICK, Timber Producers, WOOD, Steel Manufacturing, SLX, International Telecom, IST, as well as Small Cap Nation Investment, IFSM, such as the UK Small Caps, EWUS, Greece, GREK, Turkey, TUR, Thailand, THD, Mexico, EWW, Chile, ECH, India, SCIN, and Philippines, EPHE.

Liberal Economist Mark Thoma posts Assessing Fed Policy During the Great Recession. On the road again, will blog as I can; For now, I have a new column: Report Card on Fed Policy During the Great Recession, by Mark Thoma: If the economy evolves according to the Federal Reserve’s forecast, quantitative easing is on track to come to a close by the end of this year. Increases in the federal funds rate are likely to follow. Thus, as the Fed’s policies to combat the Great Recession are coming to an end, it’s time to ask: Did these policies work?

The policies of US Fed, have been under the direct supervision of Jesus Christ. Unknown to most, or at least unknown to Paul Krugman, the economy is very much a household, where Jesus Christ has worked behind the scenes, as presented by the Apostle Paul in Ephesians 1:10, serving in stewardship, maturing the Creature from Jekyll Island from its 1913 origins to the introduction of the Euro Currency in 1999, and the Repeal of the Glass Steagall in 1999, to perfect the speculative leveraged investment community, and its activities such as POMO, and to create policies that define the investor as the centerpiece of economic activity, and mature investment choice, which occurred on April 10, 2014, with the strong trade lower in World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG.

The policies worked in the US to secure economic growth both worldwide and in the US;  but not to secure employment. More importantly the policies worked worldwide to define, build and establish the investor as the centerpiece of economic activity. The April 2014 trade lower in Value Line 100 stocks, FVL, which has risen parabolically since 2008, documents that the life experience of investment choice is history, and by definition the identity of investor is being relegated to the dustbin of history.

Now, inflationism is turning into destructionism. Liberalism’s three dynamos of economic action, creditism, corporatism, and globalism, are winding down the age of credit, and in the process, terminating the investor as the centerpiece of economic activity.

The new normal is destructionism.

As the cost of money, that is the Benchmark Interest Rate, $TNX, rose from 2.48%, on October 23, 2014, to 2.66%, on April 25, 2014, investment derisking and deleveraging commenced, destroying the Banker Regime of democratic nation states and speculative leveraged investing, and introducing the Beast Regime of regional governance and totalitarian collectivism, which is establishing regional security, stability and sustainability. The singular economic dynamo of regionalism is powering up the economic life experience and the age of debt servitude, where the centerpiece of economic activity is the debt serf.

The bankers’ policies of investment choice created the most moral hazard based prosperity possible.

Now the bear market of all time, is underway, as the Distressed Investments, such as those taken in by the US Fed, and traded in the Fidelity Mutual Fund, FAGIX, and which underwrote the great investment swell since 2008, began trading lower on in March, 2014, and then again in April, 2014, communicating the failure of credit.

The failure of credit coming at the end of the week of April 25, 2014, constitutes the most significant economic event since President Nixon took the US off the gold standard in 1971, it pivots the world out of the age of credit and into the age of debt servitude, and is evidenced by the parabolic turn lower in Chinese Financials, CHIX, China Investments, YAO, as well as Regional Banks, KRE, the US small Caps, IWC, IWM, as well as Credit  Providers Visa, V, and Mastercard, MC, the nation of Russia, RSX, ERUS, and Leveraged Buyouts, PSP, and manifests as the death of Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB.

Commodities, DBC, manifested an evening star chart pattern, that is a reversal pattern.

Out of a soon coming global credit bust and worldwide financial system collapse, known as Financial Apocalypse, leaders will meet in summits, to renounce national sovereignty, and announce regional pooled sovereignty, where regional framework agreements establish regional leader’s policies of debt servitude.

Banks everywhere will be integrated into the government and known as Government Banks. Liz Capo McCormick of Bloomberg reports Demand for Fed Reverse Repos Rises as Treasury Cuts Bill Supply.

The age of credit featured the paradigm of liberalism; now, the age of debt servitude features that of authoritarianism. Todd Miller, publisher of The Truth, posts in Antiwar Creation of a Border Security State. And Michael Snyder writes in EPJ,The BLM Land Grab Endgame: Agenda 21.

Under liberalism, value to the economy came via the credit inspired investor; under authoritarianism, the debt serf laboring in policies of diktat and schemes of debt servitude, gives value to the economy.

 

4) … In the news

Dick Hogan posts in News-Press Palm Beach Gardens Based Kitson & Partners Moves To Establish An Autonomous Smart Grid Community.  Developers of Babcock Ranch are in a power struggle with the Lee County Electric Cooperative, and it’s not just about electrons, kilowatt hours and money. Palm Beach Gardens-based Kitson & Partners three weeks ago asked the Florida Public Service Commission to approve its plans for an independent electrical provider to the customers within the boundaries of the 16,000-acre ranch in northeast Lee and southeast Charlotte counties. The request was filed by the Babcock Ranch Community Independent Special District, created by the Legislature and controlled by Kitson, which owns all the property. The new utility would be formed by carving out its territory from the coverage area now controlled by LCEC, which has filed a scorching reply to Kitson’s proposal to establish the autonomous smart grid community known as Babcock Ranch.

Apparel retailer Coldwater Creek, CWTR, shares plummet as Lehigh Valley Live Coldwater Creek Files Bankruptcy: to close Promenade shops, Flemington stores.  And Zero Hedge reports Retail Store Closures Soar In 2014.

Zero Hedge reports Markit US Services PMI Drops; Job Creation Near 2-Year Lows.

WaPo reports The University of Maryland Wants To Build An 11-story, $115 Million Luxury Hotel And Conference Center Across From Its Main Entrance In College Park.

Mercury News reports Bay Area Home Prices Jump Year Over Year. The WSJ reports Home Sellers’ Asking Prices Hit Five Year High. And Money News reports Mortgage Lending Drops To 17 Year Low As Rates Curb Borrowing.

Bloomberg reports Sales of Existing US Homes Fall for a Third Month

Atif Mian and Amir Sufi House of Debt post Housing Recovery We are now five full years from the end of the recession (if you buy NBER dating). And housing starts are still below any level we’ve seen since the early 1990s!

Shaila Dewan of the NYT writes In Many Cities, Rent Is Rising Out of Reach of Middle Class. Fifty percent of all renters are now spending more than 30% of their income on housing, according to a comprehensive Harvard study, up from thirty eight percent of renters in 2000. In December, Housing Secretary Shaun Donovan declared “the worst rental affordability crisis that this country has ever known.” And Money News relates Rents No Longer Affordable For Most Americans.

Silvia Walker of Irvine Renter posts Irvine Housing Numbers by Neighborhood: January 2014. Typical square foot selling prices in Orange County are as follows, West Park, $406, … Quail Hill, $415, … Woodbridge, $421, … and Woodbury, $425.

Realtor Sylvia Sotomayor posts 5 Markets With Zombie Foreclosures There are cities with a higher percentage of vacant foreclosures out there, Jacksonville (30 percent), Palm Bay-Melbourne (30 percent) and Las Vegas (33 percent), but none have as many abandoned homes as The Vacation Capital of the World. In fairness, however, Orlando-Kissimmee home state of Florida has 54,908 vacant foreclosure total. That’s a ghost town bigger than Titusville, Fla., and roughly the size of Fond du Lac, Wis. Those houses tend to stay in foreclosure for a good, long time, too, with Florida’s 1,095-day foreclosure length trailing just Hawaii (1,112 days) and Arkansas (1,128). The good news is that Florida’s foreclosure rates have decreased each month for the past year, with foreclosure auctions down 2 percent from last February. Still, Orlando-Kissimmee has its issues. Its foreclosure rate is the sixth-highest in the U.S. in February, with one in every 370 housing units in foreclosure.

Mid Florida Investment Properties posts The Orlando Area Has One Of The Largest Concentrations Of Underwater Properties In The Country. 36 percent of the homes in the four counties that comprise the Orlando metro area are buried in home loans exceeding their present home value by at least 25 percent.

ZipRealty posts in EPJ, The 10 Most Affordable Housing Markets of 2014. As a result of the previous financial system crash, Dallas was one of the most severely affected by underwater mortgages. But through a strong energy economy, Steve Brown of Dallas News reports Fewer Than 5 Percent Of Dallas Home Loans Are Now Underwater.

Popular Dallas neighborhoods with Claritas Market Segments (A higher market segment number represents a lower socioeconomic group; thus the number 65,64, and 63 means the bottom of the economic ladder, whereas 12, 10, and 7, the top of society) include the following:

Lake Highlands, TX,75243, Claritas Segments, 54, 29, 31, 07, Income, 37,000,

Far North Dallas, TX, 75287, Claritas Segments, 47, 35, 24, 12, 10, Income, 46,000

Farmers Branch, TX,75234, Claritas Segments,  41, 34, 27, 10, Income, 50,000,

Carrollton, TX, 75006, Claritas Segments,  34, 22, 13, 12, Income, 53,000,

Global Research News Team posts American Conquest By Subversion: Victoria Nuland’s Admits Washington Has Spent $5 Billion To Subvert Ukraine.  Diana Johnstone relates Victoria Nuland is the wife of Robert Kagan, leader of the younger generation of “neo-cons”.  After serving as Hillary Clinton’s spokesperson, she is now under secretary of state for Europe and Eurasia.”  Hear Victoria Nuland’s very concise, almost victorious speech in Youtube December 13, 2013, US Ukraine Federation Video. And Prof Michel Chossudovsky asks Ukraine’s Gold Reserves Secretly Flown Out And Confiscated By The New York Federal Reserve?

Tyler Durden posts All You Need To Know About Russia, In Charts While total European exposure via the export and GDP channel is rather limited, Europe’s exposure via the financial/bank channel is more acute. Cross-border exposures of European banks to Russia and other parts of central and eastern Europe suggests (1) these balance sheet exposures are significant; (2) the magnifying effect of the impact via central and eastern Europe is more important than the direct exposure to Russia itself; and (3) the most significant exposures are in Austria, Italy and Sweden, whose banks play an important role in neighboring CEE countries.

Mike Mish Shedlock posts Japan Trade Deficit Largest in History; Imports Soar, Exports Barely Up In Spite of Collapsed Yen. And Reuters reports Japan Bond Market Liquidity Dries Up As BoJ Holding Top ¥200tn ($1.96TN)  The Bank of Japan’s massive purchases of government debt hit a milestone this week, sucking liquidity out of the market to such an extent that the benchmark 10-year bond went untraded for more than a day, the first time in 13 years. Data from the BoJ late on Monday showed its holding of Japanese government bonds topped ¥200tn ($1.96tn), or about 20% of outstanding issuance,  up by more than half from ¥125tn about a year ago. The fall in market liquidity looks set to intensify as the BoJ has vowed to continue its aggressive buying for at least another year.

There is another story in regards to Japan. Since the first of the year, investors have been short the Japanese Yen, FXY, and short the Japanese Financial Institutions, IX, SMFG, MFG, MTU, causing the Nikkei, NKY, to fall lower as is seen in their combined ongoing Yahoo Finance chart.  At the same time investors have been long a number of other currencies such as the India rupee, ICN, with the result of a carry trade rally India Small Caps, SCIN, and other small cap nations, such as New Zealand, ENZL, Singapore, EWS, Developing Africa, GAF, Philippines, EPHE, Indonesia, IDX, Gulf Dividends, GULF, Egypt, EGPT, and Denmark, EDEN, as is seen in their ongoing combined Yahoo Finance Chart.

Ross McCracken reported Japan Imports All Of Its Energy Needs. Japan is the world’s largest importer of LNG, the second biggest importer of coal, and the third largest importer of oil.

I relate that the coal currently comes from Australia. A huge political in Bellingham WA, and Whatcom County, is that of proposed coal trains running quite literally day and night through the city and county to the proposed SSA Marine’s Gateway Pacific Terminal at Cherry Point, which has signed an option agreement to obtain Wyoming Powder River Basin coal from Cloud Peak Energy, CLD.

 

5) … Investment strategies for the age of the failure of credit.

Bob Hoye asks in Safehaven Speculative Exhaustion? The fiat money system is failing. The chart of the Bear Market ETF, HDGE, shows that it entered an Elliott Wave 3 Up on April 23,204; the bear market of a lifetime is underway on the failure of credit in the China, in Russia, and in the US.

A portfolio of Inverse Market ETFs could serve as collateral; this might include STPP, XVZ, JGBS, GLD, PPLT, PALL, EUO, YCS, SAGG, DTYS, DNO, as well asHDGE, SBB, SBM, DDG, EFZ, YXI, SZK, SDP, KRS, REK.

One could sell a number of stocks short, such as the consumer staple stock Revlon, REV, which manifested an evening star candlestick in its chart pattern.

But before short selling, one might ask what is money, what determines the value of money, and who is sovereign in economics? There be libertarians who believe themselves to be sovereign individuals; but is this reality, or is such thinking only a mirage on the authoritarian desert of the real?

Money is the credit and flow coming from sovereigns. Money is coined by the policies of sovereigns, and is experienced and used in the schemes provided by the prevailing economic leaders.

Under the final phase of liberalism, defined as freedom from the state, the democracies of the world and the speculative leveraged investment community set persons free to be investors, according to their use of credit and their risk profile to invest in fiat investments, that is in real estate, equities and credit. All had identity and experience in the Milton Friedman Free to Choose architecture of floating currencies; fiat money ruled in liberalism.

The price of money is determined by trust in the ability of the sovereigns to provide economic gain.

Now with the failure of Major Currencies, DBV, such as the Australian Dollar, FXA, and the Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB, sinking in value, a new trust must, and will emerge.

New trust is already emerging;  it is trust in the ability of regional sovereigns to provide economic security, stability, and sustainability; the diktat of the Troika in Greece is an example. The new money is diktat money.

Leaders will meet in summits to renounce national sovereignty, and to announce regional pooled sovereignty and regional framework agreements, which will be the constitution of economic experience. Diktat money rules in authoritarianism.

New sovereigns, that is regional leaders, will provide regional currencies, regional trading systems and fascist mandates for people’s trust and thus regional fascism will rise to replace crony capitalism, European Socialism, Greek Socialism, and Chinese Communism. Most definitely a new monetary authority is coming; the Banker Regime is being replace by the Beast Regime of Revelation 13:1-4.

All will have identity and experience in the required to comply architecture of diktat money.

As is seen in Ephesians 1:10, Jesus Christ operating in the economy of God, matured and completed the age of fiat money on April 10 with the failure of credit as evidenced by a trade lower in the European Financials, EUFN. And on April 23, 2014, He perfected the age of fiat money with the failure of credit, as evidenced by a trade lower in the Chinese Financials, CHIX, and Regional Banks, KRE.

The problem with short selling is that all it produces is fiat money, which will forever be trading lower in value, and which will be increasingly worthless as confidence grows in diktat money.

Gold is both a commodity and a currency; it is the safe haven which will bound higher and higher as investors derisk out of fiat investments. The chart of the Gold ETF, GLD, shows that it entered an Elliott Wave 3 of 3 Up. Short Side Of Long posts Gold Has Outperformed Other Asset Classes In First Quarter 2014. ETF Daily News posts Phantom Gold Inventories: has the Comex already defaulted?  Some think gold mining stocks are a good investment; yet it’s hard to justify an investment in Gold Miners, such as AEM, with its forward PE of 37. Something more reasonable might be Allied Nevada Gold, ANV, with a forward PE of 24; yet this is quite high for a starting point to build an investment.

One should not be invested in paper gold, such as the Gold ETF, GLD. One should take possession of the genuine article, that is gold bullion, as it will be trading awesomely higher, as in the age of the failure of credit, it and diktat of regional sovereigns, are the only two forms of sustainable economic activity.

As foretold in Bible Prophecy of Daniel 2:25-45, the British Empire rose to be the first of two global kick ass empires; the US followed in 1971, as President Nixon took the US off the gold standard to fund the Vietnam War, with  the US Dollar becoming the International Reserve currency.

Being Upfront author Amitayu Sen Gupta writes Historically, both gold and silver standards have been used by different countries, mostly depending on the relative abundance of precious metals. Much of Europe, for example, used the silver standard, a practice that can be traced back to the Romans. The discovery of large amounts of gold by the Spanish in Latin America led to Spain shifting to the gold standard. As Spain was a major power in international trade at that point, the gold standard soon became the international norm for global trade. The United Kingdom, the other major global power shifted to the gold standard despite having silver coins in circulation, based on a new mint ratio between silver and gold, established by the then master of the Royal Mint, Sir Isaac Newton, the famous mathematician, in 1717. Britain formally shifted to the gold standard only in 1821, and eventually all major countries adopted the gold standard over the nineteenth century.

Out of the chaos of the rise in the Benchmark Interest Rate, $TNX, rising from 2.48% on October 23, 2014, to 2.66% on April 25, 2014, the Rider on the White Horse, that is the First Horseman of the Apocalypse of Revelation 6:1-2, is riding with greater intensity over the nations of the world effecting coup d’etats. The US is increasingly losing its Dollar hegemonic power. In its place the Ten Toed Kingdom of regional economic governance, as seen in Daniel 2:25-45, with toes of iron diktat and clay totalitarian collectivism, that is the diktat money system, is rising to provide political rule and economic experience.

John Taylor heats up debate Re-Normalize or New-Normalize Policy. In comment, I relate the reality is that nothing can be done to renormalize the economy, as the Banker regime’s policies of Global ZIRP, have skewed the economy so far from anything normal, that normal can never ever be reattained.  Money manager capitalism created such great inequality, with the wealthy living in New York, NY and the poor living in Danville, IL, that only disaster can result. As foretold in Bible prophecy, the tail risk of such is coming; she is the Bad Bitch of Revelation 17:3-4, the Scarlet Harlot who rides the Scarlet Horse.

Economists Irving Fisher and Hyman Minsky correctly viewed the reality that debt deleveraging economic busts follow wall street credit booms; there has never been a credit boom like that since 2008, and thus there will never be a greater economic bust like the one that is coming.

Jeff Macke of Breakout reports Even After The Crash, Americans Still Love Real Estate Best. The  price of gold has dropped more than $600 an ounce, equal to almost ⅓ of its value in the last two and half years. A deeper dive into the numbers offers a disturbing explanation. Gallup Chart, presented below. shows gold is overwhelmingly favored in households earning less than $30,000 per year. In other words, those who can least afford to be investing in precious metals are the most likely to be putting their money in gold.

One should investigate International Living, perhaps relocating to Panama City or the beach on Ecuador. PathFinder reports A Red Hot Real Estate Bargain In Arenal For $69,000. And Nestman asks

Could They Really Take Away Your Citizenship?

One might think because I write on wealth, that I am a wealthy elite, that is one of those living in an Eastern Establishment Community, defined as an affluent United States eastern seaboard county, where those of Claritas Prizm Market Segments 01 through 10 live; this includes Falls Church County, VA, Loudoun County, VA, Fairfax County, VA, Arlington County, VA, Stafford County, VA, Howard County, MD, Hunterdon County, NJ, or Somerset County, NJ.

I disclose that I reside in poverty in the Sea Breeze Apartments, in downtown Bellingham WA, 98225; this is a Claritas Prizm 66 neighborhood, that is in Low Rise Living, and have no financial assets whatsoever; that’s right I have no fiat investments of any kind; the main meal for most every day comes from soup kitchens such as Maple Alley Inn.

Its a neighborhood like Danville, IL, as Barbara Green of Commercial News reports Heartland Alliance Institute Says Danville-Vermillion County Economy Is In Distress.

It is much like Rockford, IL, as Your Real Marketwatch reports Rockford County Home Appreciation  Rate Has Been Notably Below The National Average.

Another poor place is Harrisonburg, VA, as Jeannette Porter of VCU posts Harrisonburg-Rockingham County Cited As Virginia’s Poorest Locality.

 

6) … If you’ve got what it takes you can make money

The Center for Bioethics and Culture Network posts Elite Egg Donors.Over at The New Inquiry, Moira Donegan offersa compelling look at the realities of young women who choose to sell their eggs to infertile couples trying to get pregnant. Of particular interest in this article is how these donors aim to emphasize their education levels in order to appeal to the wealthy couples looking to use donor eggs.

 

7) … A Summary of the European debt crisis.

There will be no ECB unconventional monetary policy, as out of a soon coming Financial Apocalypse, that is a credit bust and financial system breakdown, the Beast Regime, seen in Revelation 13:1-4, will rise to replace Banker Regime, and by implementing policies of regional economic governance, and schemes of totalitarian collectivism, will establish regional panopticons of debt servitude, with the Eurozone Nations serving as the ultimate example of regional fascism.

As is seen in Ephesians 1:10, Jesus Christ operating in the economy of God, matured and completed the age of fiat money on April 10 with the failure of credit as evidenced by a trade lower in the European Financials, EUFN. And on April 23, 2014, He perfected the age of fiat money with the failure of credit, as evidenced by a trade lower in the Chinese Financials, CHIX, and Regional Banks, KRE, and by the Mike Mish Shedlock report Top tier Chinese Cities Discounting Property.

Through His genius, he has perfected clientelism as End Of The American Dream posts 18 Stats That Prove That Government Dependence Has Reached Epidemic Levels. And He perfected elitism, much to the complaint of Marion who writes of Billionaire Conclave The Ruling Elite Meet At Davos.

Jesus Christ is developing new sovereigns for a new age. Under liberalism, the speculative investment community provided seigniorage through money manager capitalism. Under authoritarianism, regional leaders provide seigniorage through the word, will and way of their diktat, a case in point being the Troika’s management of the Greek economy and the terms of assistance to Ireland. Ongoing policies, of diktat coming through the singular dynamo of regionalism, will be the basis for trust in diktat money to provide for regional security, stability and sustainability.

Specifically out of Eurozone sovereign, banking and corporate insolvency, leaders will meet in summits to renounce national sovereignty and announce pooled regional sovereignty, where regional framework agreements will provide the legal basis for regional economic fascism enabling leaders from Brussels and Berlin to rule in diktat establishing Europe as a preeminent world power.

Democracy no more; rather regional fascism will be the new normal. For Russia, as well as for China, economic capability will come via regional trade in commodities such a oil, natural gas, coal, and agricultural commodities featuring undollar, and non dollar bartering, and managed regional economies to establish regional security, stability, and sustainability, as is seen in the Tehran Times report China Keen to expand Economic Ties With Iran.

New sovereigns, that is regional leaders, will provide regional currencies, regional trading systems and fascist mandates for people’s trust and thus regional fascism will rise to replace crony capitalism, European Socialism, Greek Socialism, and Chinese Communism. Most definitely a new monetary authority is coming; the Banker Regime is being replace by the Beast Regime of Revelation 13:1-4.

Under liberalism, value to the economy came via the credit inspired investor; under authoritarianism, the debt serf laboring in policies of diktat and schemes of debt servitude, gives value to the economy.

 

8) … The Good News is that Jesus Christ is coming to abolish the Double Entry Bookkeeping System. Liberalism’s debt based money system is failing; and its replacement, the debt servitude money system, is not going to work. Bible prophecy of Daniel 7:7 foretells that it will end up in tatters, and then the Chargma money system, that is the Mark of the Beast Money System of Revelation 13:18, ruled by the Sovereign of Revelation 13:5-10, and the Seignior of Revelation 13:11-17, will be implemented and provide economic experience for 42 months, that is for 3 and 1/2 years, at which time Jesus will come to decisively rule mankind following the Battle of Armageddon. He will establish his Millenium Kingdom where the saints will rule and reign as priest kings in His Abundance.

Greece And The European Small Cap Dividends Begin To Lead The Eurozone Stocks Lower On The Failure Of Credit

April 19, 2014

Financial Market Report for the week ending Thursday April 17, 2014.

This post can be found in Google Documents format here

1)  … Details of this week’s financial market trading

On Monday, April 14, 2014, Greece, The National Bank of Greece, and the Eurozone Small Cap Dividends led the Eurozone Stocks lower, as is seen in the ongoing Yahoo Finance Chart of Greece, GREK, Eurozone Small Cap Dividends, DFE, European Financials, EUFN, and the National Bank of Greece, NBG, communicating the failure of European Credit, EU.

 

Yes, credit is dying in the EU, despite the BusinessWeek report Italy’s Bonds Post Weekly Advance On Stimulus Bets. Zero Hedge reports Bondholder Bail-ins Approved By EU. Said another way, given that equities are no longer leveraging higher over credit, communicating that investors no longer trust that the ECB’s policies will secure investment gains.

 

Investors are deleveraging out of EUR/JPY currency carry trade investments as is seen in the ongoing Yahoo Finance chart of EURJPY and the Eurozone Stocks, EZU, such as ALU, VE, ASMI, RYAAY,  AER, PHG, CRH, SI, LYB, BUD, and the Eurozone Nations, such as EWI, EWG, EFNL, EWN, EWQ, EIRL, EWP, EWO, PGAL, GREK, with the European Financials, EUFN, and the National Bank of Greece, NBG, leading lower.

 

Open Europe relates KathimeriniKathimerini 2Reuters report Paul Thomsen, head of the IMF’s mission to Greece, told Mega TV, “In our view, [Greece’s bailout] is not fully financed the whole way to 2016 and one would need…to find some more money.” Separately, Greek Prime Minister Antonis Samaras wrote in Kathimerini yesterday that “the country’s return to the markets rebuffs [speculation]” about the need for a third bailout.”

 

And credit is dying in the United States. The failure of credit in the US, VTI, is seen in Retail, XRT, US Infrastructure, PKB, Consumer Services, IYC, such as Chiptole Mexican Grill, CMG, Small Cap Consumer Discretionary, PSCD, such as the Automobile Dealers, the Credit Service Companies, MA, V, AXP, DFS, Asset Managers, BLK, AMG, STT, Regional Banks, KRE, Stockbrokers, IAI, Investment Bankers, KCE, the Too Big To Fail Banks, RWW, and the Russell 2000, IWC, trading lower from their highs.

 

The failure of credit worldwide is seen in Global Infrastructure, GII, topping out in value, having been driven higher by Emerging Market Infrastructure, EMIF, in particular, INXX, CHXX, and BRXX.

 

Investors are derisking out of debt trade leader Macquarie Infrastructure Company, MIC, as Infrastructure Municipal Bonds, RVNU, has been trading higher in short sell covering. Reuters reports RVNU focuses exclusively on municipal bonds issued to fund federal, state and local infrastructure projects, including water and sewer systems, public power systems and toll roads and bridges.

 

And, risk-on trading has turned to risk-off trading as the Small Cap Growth, RZG, and the Large Cap Growth, JKE, are leading the Small Cap Value, RZV, and the Large Cap Value, JKF, lower, as is seen in their combined ongoing Yahoo Finance chart.

 

Utilities, PUI, XLU, such as GXP, BKH, NEE, UGI,NI, VVC, MDU, D, and NYLD, are topping out on the trade lower in the Interest Rate on the US Note, ^TNX, to 2.62%, on Friday April 11, 2014,  and its close higher on Monday April 14, 2014 to 2.64%.

 

Eddy Elfenbein reports Best Retail Sales Report in 18 Months. While Atif Mian and Amir Sufiof House of Debt post The Consumer As A Shadow Of Its Former Self. Retail, XRT, bounced only slightly higher today, as did other ETFs, that had sold off most strongly last week. These included the Workplace Equality ETF, EQLT, which is comprised of companies that have a social mission to support workplace equality for lesbian, gay, bisexual and transgender employees; it is comprise of 164 companies that have scored 100% on the Human Rights Campaign Corporate Equality Index. The ETF follows in the line of socially responsible funds that are currently on the market; these products take into account social, environmental, and governance characteristics. The ETF has been a leading loss leader as Intuit relates that it is comprised of a number of large cap consumer discretionary, financial service stocks, and technology stocks such as GME, EA, MGM, WYNN, DIS, AAL.

 

Junk Bonds, JNK, bounced higher, taking Aggregate Credit, AGG, slightly higher to a new rally high as International Treasury Bonds, PICB, traded lower manifesting a massive dark cloud covering candlestick chart pattern in its weekly chart confirming the failure of credit.

 

The failure of credit on Thursday, April 10, 2014, marked an epic pivotal economic change in mankind’s history, as popular currency carry trades unwound trading in Small Cap Nation Investment, IFSM, and Nation Investment, EFA, as the ECB failed to come forward with any new credit stimulus,and turned World Stocks, VT, Global Financials, IXG, lower. The failure of equity investments can be followed with this Finviz Screener of Equity ETFs.

 

The age of investment choice and credit began with the repeal of the Glass Steagall Act and came to full power with the Mario Draghi, Do Whatever It Takes, July 26, 2012 Speech, which produced great investment reward in the Eurozone but as Ed Yardeni posts A Lackluster Recovery In The EU.

 

Spiegel postsCentral Banks’ Ability To Influence Markets Is Waning. Another word for credit is trust. Investors no longer trust in the monetary policies of the world central banks to stimulate global investment growth. Said another way the world central banks’ monetary policies have crossed the rubicon of sound monetary policy and have made “money good” investments bad.

 

The failure of credit, which commenced on Thursday, April 10, 2014, is the most remarkable turning point in all of economic history; and is seen in Call Write Bonds, CWB, trading lower from their March 2014 high, and is defined by the see saw destruction of equity investments (such as World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Global Financial Investments, IXG, and Dividends Excluding Financials, DTN) and credit investments, AGG, which began to trade lower in May 2013.

 

Investors no longer trust in the monetary policies of the world central banks to stimulate investment growth, despite TradingFloor reportingGlobal Manufacturing PMI Tracker Shows Growth Robust In March.  One can follow the destruction of credit investments with this Finviz Screener of Credit ETFs.

 

The failure of credit is established by Distressed Investments, such as those traded by Fidelity Investments, FAGIX, and by Junk Bonds, JNK, trading strongly lower on Thursday April 10, 2014 and Friday April 11, 2014. It was the Distressed Investments, that the US Fed took in and traded out “money good” US Treasuries in 2008 and 2009, as part of QE1 to regenerate the US and World Financial System. Regional Banks, KRE, lost 5% of their value last week, and thus document the failure of credit. Look for a strong destruction of Popular Notes And Bonds, such as SHY, EMCD, TLT, ZROZ, FLOT, QLTA, VCLT, PICB, BWX, MBB.

 

Bespoke Investment Group reports Sovereign Yields Continue Lower. Yet, look for Aggregate Credit, AGG, to very soon, once again, trade lower as Corporate Bonds, LQD, Long Duration Corporate Bonds, BLV, International Corporate Bonds, PICB, and World Treasury Bonds, BWX, which are seen peaking out, turn lower, commencing the failure of currencies.

 

Debt Deflation will be driving Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower. Said another way, bond vigilantes calling the Benchmark Interest Rate higher, $TNX, from 2.62% on Friday, April 11. 2014, and on steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, from 38.67, on the exhaustion of the world central banks’ monetary authority. Spectacular competitive currency devaluation will cause unwinding liberalism’s currency carry trades and debt trades worldwide. One can follow the destruction of currencies with thisFinviz Screener of Currency ETFs.

 

The pursuit of yield is history as Global ZIRP is history. The failure of credit is terminating risk driven investors, as the centerpiece of economic activity. Such include those invested in High Yield Debt, JNK, VCLT, EU, EMB, HYXU, EMLC, HYMB, QLTB, EMCD, RVNU, and those invested in Biotechnology, IBB, Social Media, SOCL, Small Cap Pure Value, RZV, and Small Cap Pure Growth, RZG, as well as fixed income investors, invested in Dividends Excluding Financials, DTN, and other Popular Yield Bearing ETFs, DFE, GRID, SEA, FIW, PUI, PSP, KBWD, IST, DBU, as well the high yielding Dividend ETF, DVYL, which is 200% leveraged the S&P High Yield Dividend Aristocrats Index.  Look for insurance companies around the world to fall strongly lower in value; these include Insurance Group Australia, ASX:AIG.

 

Credit died on Thursday, April 10, 2014, as evidenced by World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Global Financials, IXG, and Dividends Excluding Financials, DTN, trading lower, communicating that  the investor is no longer the centerpiece of economic activity.

 

With the failure of credit, the investor is being replaced by the debt serf, as the centerpiece of economic activity, as Robert Stevens of WSWS reports Greek Parliament Approves New Attacks On Workers. The latest agreement between the European Union led Troika and the Greek government includes measures to limit the right to strike.

 

Out of soon coming economic chaos stemming from derisking out of currency carry trade investments, such as the EUR/JPY, and the GBP/JPY, as well as out of deleveraging out of debt trades, such as Real Estate Company, Blackstone, BX, yield curves such as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, will be steepening, and short term interests rates will be rising, causing 1 to 3 Year US Government Note, SHY, to plummet.

 

As the Benchmark Interest rate rises from 2.62%, popular real estate investments Global Real Estate, DRW, Office REITS, FNIO, Mortgage REITS, REM, Residential REITS, REZ, and Retail REITS, such as General Growth Properties, GGP, will plummet.

 

There be many who complain about the order of things in the age of investment choice and credit that has produced peak wealth. Duke University Professor David Siegel asks Why Wouldn’t People Want To Reduce Inequality?  I respond, the very one appointed by God to head up the dispensation, that is, the household stewardship, of all things.  Jesus Christ, as is seen in Ephesians,1;10, perfected the age of credit on Thursday April 10, 2014, by turning World Stocks, VT, lower, and then on April 14, 2014, by turning Aggregate Credit, AGG, lower as well. Inequality was the express design and purpose of God’s Son, Jesus Christ. He had no interest in perfecting human talent in general by providing great employment, as Mike Konczal writes Struggling To Find Jobs. Rather, He fully developed the investment talent of the speculative leveraged investment community, to establish peak Global Financial Wealth, IXG, and the managerial talent of global businesses, governments, and institutions around the world through prestigious consulting firms such as McKinsey & Co, to establish the greatest possible investment in Nation Investment, EFA, as is seen in the Robert Wenzel poss Infrastructure Plotters Meet Privately With Treasury Secretary Lew To Divvy Up Tax Dollars. This week US Heavy Construction Companies, DY, ORN, MTRX, AEGN, TPC, GLDD traded higher.

 

The world is passing through peak moral hazard.  Libertarian Benson te writes of the Philippine economy “The only ‘inclusivity of economic growth’ here will be a NET transfer of resources from society to politicians and the cronies through ‘foolishly prodigal enterprises’, thereby lifting economic benefits again to a select politically privileged and politically connected few. Woe to the taxpayers and to the politically unconnected peso holders”.

 

It is the genius of Jesus Christ that has produced peak clientelism as Benson te writes quoting Richard Ebeling in EPJ Interventionism: Using Legal Coercion To Get Ahead in Life  When individuals began to ask government to do things for them, rather than merely to secure their individual rights and honestly acquired property, they began asking government to violate other’s rights and property for their benefit. These demands on government have been rationalized by intellectuals and social engineers who have persuaded people that what they wanted but didn’t have was due to the greed, exploitation, and immorality of others. Basic morality and justice has been transcended in the political arena in order to take from the “haves” and give to the “have not’s.” Theft through political means has become the basis of a “higher” morality: “social justice,” which is supposed to remedy the alleged injustices of the free market economy. But once the market becomes politicized in this manner, morality begins to disintegrate. Increasingly, the only way to survive in society is to resort to the same types of political methods for gain as others are using, or to devise ways to evade the controls and regulations. More and more people, therefore, have been drawn into the arena of political intrigue and manipulation or violation of the law for economic gain. Human relationships and the political process have become increasingly corrupted.

 

Now that the failure of credit has commenced, soon, money market funds will break the buck, that is the traditional constant $1 Dollar Value, with the result that capital controls will be implemented and banks everywhere will be integrated into the Government, and be known as Government Banks, and in the US, the Bank’s Excess Reserves will be captured, so as to speak, by the US Fed.

 

Banks everywhere will be integrated into regional governments, with the Eurozone and the US being leading examples of economic fascism. Savings and Loans, Regional Banks, KRE, such as BOFI, SIVB, HBAN, and RF, the Too Big To Fail Banks, RWW, seen in this Finviz Screener, will be integrated into the banks and be known as the Government Banks, or Gov Banks.

 

Money has been in an awesome bubble ever since it was underwritten by credit of the US Fed in taking in Distressed Investments, such as those traded by the Fidelity Mutual Fund,FAGIX, and in trading out money good US Treasuries, TLT, to underwrite faith in Regional Banks, KRE, and the Too Big To Fail Banks, RWW, under the Paulson Gift and Ben Bernake Stimulus of QE1.

 

Bloomberg reports China New Credit Declines as Money-Supply Growth Decelerates. And Ed Yardeni posts China Is Deflating. This is seen in its money, that is its currency, the Yuan, CYB, and its debt, the Dim Sum Bond, DSUM, trading lower in value. Clearly, the money bubble has finally burst and the investor is going extinct. The failure of credit is an extinction event, that pivots the world economy out of liberalism, that is the paradigm and age of credit and investment choice, and into authoritarianism, that is the paradigm and age of diktat and debt servitude, which features the debt serf, is the centerpiece of economic activity.

 

Bloomberg reports Chinese Police Confront Trust Investors Demanding Repayment. Chinese investors demanding their money back from a troubled 973 million-yuan ($156 million) high-yield product in Shanxi province were confronted by police in front of a China Construction Bank Corp. (939) branch. People wearing white masks with the words “despicable bank” and “pay back our money” were among at least 30 investors facing special-forces officers in dark uniforms in Taiyuan city, about 521 kilometers (324 miles) southwest of Beijing. The nation’s second-largest bank is the custodian of the Songhuajiang River No. 77 trust, which missed six payments as of last month, according to the Economic Observer. “We have been cheated by CCB,” said Wang Fengying, 60, a Shanxi resident who said her husband had invested 1 million yuan in the product. “Our parents are very old. We need the money for their medical bills and to buy a home for my child. We are so miserable and they won’t even let us demand our money back.”

 

Gabriel Wildau and Lu Jianxin of Reuters report Chinese companies that have lent money to other companies are facing a potential wave of defaults, with several listed firms already reporting missed loan repayments. Shipbuilder Sainty Marine became the latest listed firm to report that it had failed to receive principal and interest repayments on a 900 million yuan ($144.7 million) loan to a property developer. Chinese companies granted a net 2.55 trillion yuan ($411bn) in so-called entrusted loans in 2013, nearly double the 1.28 trillion yuan total in 2012, making them the second- biggest source of domestic credit behind bank loans, according to Reuters’ calculations based on published central bank data. Entrusted loans require banks to serve as an intermediary, but a company serves as the ultimate lender and records the loan asset on its balance sheet… Entrusted loans require banks to serve as an intermediary, but a company serves as the ultimate lender and records the loan asset on its balance sheet. ‘Companies offering entrusted loans typically want to lend while bypassing official restrictions for credit, such as lending quotas,’ said Zhang Weigang, head of investment at Shanghai Securities. ‘That means they typically lend to risky industries such as property, solar panel manufacturing and non-ferrous metals.’

 

Zero Hedge reports Chinese Yuan (And Copper) Tumbles As Money Supply Growth Plunges.

 

With the trade higher parabolically higher in Nickel, JJN, the rally in Commodities, DBC, DYY, especially Base Metals, DBB, despite the Bloomberg report Oil Climbs to Five-Week High on Ukraine-Russia Tension.

 

Buy and hold stock investing was an economic principle of the bygone era of credit. The greatest bear market of history has commenced: it will totally destroy all fiat investments, whether they be equities such as VT, EFA, IXG or DTN, or credit, AGG, such as JNK, MBB, TLT, their ongoing Yahoo Finance Chart shows that Global Financials, IXG, are now leading all lower.

 

One could use these Inverse Market ETFs as collateral for short selling: STPP, XVZ, JGBS, GLD, EUO, YCS, OFF, HDGE, SAGG, TYBS, PPLT, as well as DNO, KRS, REK, SBB, SBM, DDG, EFZ, YXI, SZK, SDP.

 

Libertarian Richard Eleling writes in EPJ The Free Market vs. the Interventionist State What people call the “free market” in the United States and around the world, is in fact the regulated economy — the Interventionist State. I explain the defining characteristics of a truly free market economy, as defined for example by the Austrian economist, Ludwig von Mises. And I contrast this with the meaning of the Interventionist State under which we all live. The Interventionist State distorts the economic activities of all those in society in various ways.

 

Through dispensation, that is through the economy of God, as seen in Ephesians, 1:10, Jesus Christ perfected what Libertarian Richard Eleling terms the Interventionist State, on Thursday, April 10, 2014, with a trade lower in World Stocks, VT, which featured the Banker Regime, that is the Creature from Jekyll Island, and its cohort, democratic nation state rule, which provided asset inflationism, coming from the three economic dynamos of creditism, corporatism, and globalism, by policies of investment choice and schemes of liberal credit.

 

The EU common currency union came about through the Maastricht Treaty; unification of Europe was made complete with the introduction of the Euro as a currency in January 1999. The Banker regime used the Euro for capital investment in the southern states, that is Portugal, Italy Greece and Spain, and even to greater advantage for debt trade investment in the PIGS treasury debt and in money market investment in municipal debt in France. The debt trade within the common currency produced awesomely lucrative reward as interest rates fell. And with LTRO 1, 2, and OMT, especially lucrative investment in Ireland, Greece and the European Small Cap Dividend Stocks.

 

Mike Mish Shedlock posts Europe Without €: Former EU Commissioner Says Monetary Union Has Failed. From the Italian website L’Anti Diplomatico, former EU Commissioner and and signatory of the Manifesto of European solidarity, Frits Bolkestein proclaims the “Monetary Union has Failed

 

In his conference “Europe Without €” held in Rome on Saturday 12 April, Fred Bolkestein, a former commissioner of the European Union and signatory of the Manifesto of European solidarity quotes former German Chancellor Helmut Kohl in his address to the European Parliament in 1991:

 

“EU policy is the essential counterpart to monetary union.” The political union had to precede the formation of the single currency and a real central bank.

 

The opposite happened. Maastricht policies to create a monetary union have not had an effect integral politics, but the opposite effect as we see today.

 

Economic cultures are different and there is no solidarity. The French view is that imbalances of payments and budgets should be adjusted and jointly funded by the surplus countries to finance the deficit countries. It is a vision not sustainable in the long run.

 

According to Bolkestein, Eurobonds will only dilute the responsibility and “veil” problems. The Germans, moreover, do not want transfers and Eurobonds. Moreover, as history teaches, transfers from rich regions to poor regions do not work.

 

Monetary union has failed, concludes Bolkestein, and the countries in deficit situation can not solve their problems by themselves. Indeed, this is an additional cause of suffering. Alternatives do not exist and “we have to think about a second step: the exit from the euro.”

 

Mr. Shedlock is wearing the blinders of Austrian Economics. When viewed through the lenses of Biblical dispensation economics, as presented by the Apostle Paul in Ephesians 1:10, Jesus Christ has been successful in perfecting the paradigm and age of credit and currency carry trade investing, by driving the Eurozone Stocks up to their rally high on Thursday April 10, 2014, and then pivoting them dramatically lower, on Monday April 14, 2014. With Him at the head of the economy of God, there will be no exit from the Eurozone, by any nation.

 

Under the power of the Rider on the White Horse, as is seen in Revelation 6:1-2, the bond vigilantes are effecting a global economic coup d’etat, transferring sovereignty from democratic nation states to sovereign regional leaders and sovereign regional bodies, such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, and thus are powering up the singular dynamo of regionalism to establish regional security, stability, and sustainability, to deal with the destructionism of unwinding currency carry trades and debt trades, such as those now seen in Eurozone Small Cap Dividends, DFE, and the National Bank of Greece, NBG, trading lower.

 

Out of a soon coming Financial Apocalypse, that is a credit bust and financial system breakdown, the Beast Regime, seen in Revelation 13:1-4, will rise to replace Banker Regime, and by implementing  policies of regional economic governance, and schemes of totalitarian collectivism, will establish regional panopticons of debt servitude, with the Eurozone serving as the ultimate example of regional fascism.

 

Even now, Jesus Christ is developing new sovereigns for a new age. Under liberalism, the speculative investment community provided seigniorage through money manager capitalism, Under authoritarianism, regional leaders provide seigniorage through the word, will and way of their diktat, a case in point being the Troika’s management of the Greek economy.

 

Specifically out of Eurozone sovereign, banking and corporate insolvency, leaders will meet in summits to renounce national sovereignty and announce pooled regional sovereignty, where regional framework agreements will provide the legal basis for regional economic fascism enabling leaders from Brussels and Berlin to rule in diktat establishing Europe as the preeminent world power. Alejandro López writes in WSWS Spanish Government Attacks Democratic Rights  Madrid is escalating its attacks on democratic rights in response to widespread opposition to the social catastrophe produced by its austerity measures. And Johannes Stern posts in WSWS German Government Planning Major Military Build-up. The German government is using the mounting conflict between NATO and Russia to massively rearm the army.

 

As foretold in bible prophecy of Revelation 13:5-10, there is waiting in the wings of Europe stage, the most capable of sovereigns. Out of the European Debt Crisis, the Sovereign will step into the limelight, and through cunning and shrewdness rise in power to rule as is seen in Daniel 8:6-8, and as foretold in Revelation 13:11-18, will be accompanied in power by the Seignior, that is top dog banker, who in coining money, takes a cut. This New Charlemagne and his Monetary High Priest will eventually come to rule the world, in a one world religion, from their capital in Jerusalem, as foretold in Daniel 9:25.

 

On Monday April 14, 2014, International Corporate Debt Weekly, PICB Weekly, shows the bearish dark cloud covering candlestick, indicating the failure of credit.

 

On Tuesday, April 15, 2014,deleveraging and arising out of debt trade investing and currency carry trade investments continued reflecting the death of credit.

 

The National Bank of Greece, NBG, Greece, GREK, European Small Cap Dividend, DFE, Germany, EWG, and German Small Caps, GERJ, continued to trade lower on the failure of the ECB to provide any new credit initiative, as well as on a lower Euro, FXE.  

 

Emerging Market Infrastructure, EMIF, PXR, China Industrials, CHII, Russia, RSX, ERUS, China, YAO, ECNS, Brazil, EWZ, EWZS, India, INP, SCIN, Vietnam, VNM, Turkey, TUR, Argentina, ARGT, Chile, ECH, and Peru, EPU, led the Emerging Markets, EEM, lower, on lower Emerging Market Currencies, CEW.  NYT writes Brazil’s Star, Petrobras, Is Hobbled By Scandal And Stagnation

 

Nations Sweden, EWD, traded lower on a lower Swedish Krona, FXS. Australia, EWA, and KROO, traded lower on a lower Australian Dollar, FXA.

 

Yield Bearing Investments, Leveraged Buyouts, PSP, and China Real Estate, TAO, traded lower, on  derisking out of debt trade investments.

 

Global Financials, China Financials, CHIX, Brazil Financials, BRAF, India Earnings, EPI, and European Financials EUFN, traded lower, on unwinding currency carry trade investing.

 

Industrials Miners, PICK, traded lower on lower Base Metal Commodity, DBB, prices, on the traded lower in the Australian Dollar, and the Emerging Market Currencies, CEW.

 

Energy Production, XOP, traded higher, on Ukraine tensions.

 

On Wednesday, April 16, 2014, Solar Energy, TAN, Automobiles, CARZ, Design Build, FLM, Nasdaq Internet, PNQI, Biotechnology, IBB, Media, PBS, Internet Retail, FDN, and Aerospace and Defense, PPA, bounced World Stocks, VT, higher.

 

Japan, NKY, traded higher on a lower Yen, FXY. Thailand, THD, Ephesians, EPHE, Indonesia, IDX, Egypt, EGPT, and Chile, ECH, bounced the Emerging Markets, EEM, and Nation Investment, EFA, higher, as the Emerging Market Currencies, CEW, bounded higher.

 

European Financials, EUFN, bounced higher, bouncing Global Financials, IXG, higher.

 

Defensive Stocks, DEF, Global Consumer Staples, KXI, Utilities, PUI, Global Utilities, DBU, World Real Estate, DRW, US Real Estate, IYR, Industrial Office REITS, FNIO, Residential REITS, REZ, Retail REITS, SLG, and General Growth Properties, GGP, and Dividends Excluding Financials, DTN, traded to new all time highs, as is seen in their combined ongoing Yahoo Finance Chart.

 

Energy Production, XOP, traded higher, on a higher price of Oil, USO.

 

On Thursday, April 17, 2014, Russia, RSX, ERUS, India Small Caps, SCIN, Emerging Middle East and Africa, GAF, Egypt, EGPT, Denmark, EDEN, Singapore, EWS,Indonesia, IDX, Philippines, EPHE, European Small Cap Dividends, DFE, Greece, GREK, Germany Small Caps, GERJ, Italy, EWI, Spain, EWP, and Portugal, PGAL, bouncing Nation Investment EFA, and Small Cap Nation Investment, IFSM, higher.

 

European Financials, EUFN, bounced higher, bouncing Global Financials, IXG, higher

 

World Stocks, VT, bounced higher  as Calculated Risk posts Industrial Production Increased 0.7% In March. Yet, Global Industrial Producers, FXR, are trading lower from their Thursday April 10, 2014 high. Zero Hedge reports Why IBM Is Tumbling: BRIC sales plunge, total revenue lowest since 2009.   US Health Care Providers, IHF, such as WLP, UNH, ESRX, WLP, AET, CI, traded sharply lower.

 

Dividends Excluding Financials, DTN, traded unchanged due to the rise in the Benchmark Interest Rate, $TNX.

 

Energy Production, XOP, Fracking Companies such as RPC Inc, RES, and Refiners, such as VLO, traded higher on a higher price of Oil, USO.

 

The Australian Dollar, FXA, traded lower, leading Major World Currencies, DBV, lower. And the Brazilian Real, BZF, traded lower, leading Emerging Market Currencies, CEW, lower.

 

European Credit, EU, traded to a new all time high as bond vigilantes took the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.72%, causing Aggregate Credit, AGG, to trade lower.

 

Peak M2 Money is being achieved:  M2 Money Supply rose $41.5bn to a record $11.194 TN.

 

2) … The mother of all bear markets has commenced; its epicenter is in the Eurozone.

In the final two years of the age of credit, Ireland’s Bank, IRE, and Ireland, EIRL, provided stellar debt trade and currency carry trade investment rewards to the savvy investor, as is seen in the cominbed  ongoing Yahoo Finance chart of Ireland’s Bank, IRE, Ireland, EIRL, Eurozone Stocks, EZU, Nation Investment, EFA, and the European Financials, EUFN.

 

Greece, GREK, and the European Small Cap Dividends, DFE, as well as the US Small Caps, IWC, are in the process of leading Nation Investment, EFA, lower, on the failure of credit in the US and the EU, as is seen in the ongoing Yahoo Finance Chart of GREK IWC, VTI, EZU, EWZ, EPHE, INP, YAO, EWA.

 

The National Bank of Greece, NBG, the European Financials, EUFN, and the Regional Banks, KRE, are leading Global Financials, IXG, the linchpin of equity investment lower.

 

The week ending April 17, 2014, Aggregate Credit, AGG, traded lower as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.75.

 

Now all forms of fiat investment, both Equity Investments, and Credit Investments, are trading lower from their April 10, 2014, highs.  Popular Notes and Bonds, SHY, EMCD, TLT, ZROZ, FLOT, QLTA, VCLT, PICB, BWX, MBB, traded lower at the end of the week of April 17, 2014.

 

The bear market of all time has commenced as is evidenced by the trade lower in Covered Call, HFIN, which reflects that the trend is now lower, in Value Shares, such as Large Cap Value, JKF, and Defensive Stocks, DEF.  The Risk Trade in Small Cap Value, RZV, and Small Cap Growth Stocks, RZG, is history. The trade lower in Call Write Bonds, CWB as well as the trade lower in Closed End Funds, JCE, GCE,  CSQ, PTY, AWP, PFL, RCS, and EIM, seen in their combined ongoing Yahoo Finance Chart, establishes that buy and hold investing is not working.  Hedging no longer works, as Hedged Japan, DXJ, Hedged Global Stocks, HEDJ, and Hedged Emerging Markets, DBEM, are trading lower.  Look out below!

 

Eddy Elfenbein asks Is More Inflation Headed Our Way? Those of you old enough to remember the 70s certainly remember inflation. It was the worst thing about that decade. Well, that and disco. Every week, it seemed, prices climbed higher, and the prime rate went up, up, up.

There’s no way to sugarcoat it. Inflation is devastating for investors. It eats away at savings, and it knocks stock prices for a loop. On December 31, 1964, right before inflation became a problem, the Dow closed at 874.13. Exactly seventeen years later, the index stood at 875.00. Stock prices had barely budged, yet the Consumer Price Index had tripled. Then, once inflation got under control, stock prices soared. So much of the 1980s bull market was really making up for lost ground.

Inflation also has an unusual impact on earnings. Not all earnings are the same, and inflation exacts a heavy toll on asset-heavy businesses. Companies with high assets relative to their profits tend to report ersatz earnings.

Let’s look at some recent figures. Last Friday, the Labor Department reported that the Producer Price Index rose by 0.5% last month. That was the biggest increase in nine months. Economists like to track prices at the wholesale level because it’s often an early warning sign of price increases at the consumer level. Digging into the details, the rise in the PPI was driven by a 0.7% increase in wholesale services and a 1.1% rise in food prices. The core rate, which excludes food and energy, rose by 0.6%.

Then on Monday, the Consumer Price Index report showed that consumer prices rose 0.2% last month. That’s still not much, but it was more than the 0.1% economists were expecting. The core consumer rate also rose by 0.2% for its biggest monthly increase in 14 months

I’m not going to try to predict if inflation will come back, but we have to be realistic and watch the data.

 

The ratio of the TIPS To Treasuries, such as Long Term TIPS to Long Term Treasuries, that is LTPZ:EDV, is reversing and communicates that bond market insiders are expecting headline inflation, and debt destruction. The long position in TIPS and short Treasuries is seen in the ongoing Yahoo Finance Chart of INFL, as well as RINF; both of these ETFs are now seeing monthly gains.  Investors have been building positions in the CPI Inflation ETF, CPI.

 

Benson te writes on inflation in Food Prices, FUD. In the US, Food Prices Have Been Rising Fast. The bottom line is that central bank inflationism has been increasingly spilling over to the real economy via rising food prices. And this is being aggravated by supply chain disruptions. This also means incidences of global hunger and poverty will rise. Such also implies of growing risks of a global food crisis.  And importantly this signals why the era of asset inflation boom is bound to reverse soon as sustained pressures on consumer prices will eventually reflect on interest rates (whether in the US, Philippines or elsewhere).

 

Debt deflation, and not so much inflation, will be driving Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower. Said another way, bond vigilantes calling the Benchmark Interest Rate higher, $TNX, from 2.62% on Friday, April 11. 2014, and on steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, from 38.67, on the exhaustion of the world central banks’ monetary authority. Spectacular competitive currency devaluation, coming from rising interest rates, will cause unwinding of liberalism’s currency carry trades and debt trades worldwide. One can follow the destruction of currencies with thisFinviz Screener of Currency ETFs.

 

John Rubino posts Bank Of Japan Only Buyer Left  for 10-Year Japanese Government Bonds Here’s something you don’t see very often: For a day and a half this week, the Japanese government’s benchmark 10-year bonds attracted not a single successful private sector bid. At today’s artificially-depressed yields, no one wants this paper, except of course the Bank of Japan, which is buying up the bonds with newly-created yen. As the Gulf Times noted:

 

The Bank of Japan’s massive purchases of government debt hit a milestone this week, sucking liquidity out of the market to such an extent that the benchmark 10-year bond went untraded for more than a day, the first time in 13 years. Data from the BoJ late on Monday showed its holding of Japanese government bonds topped ¥200tn ($1.96tn), or about 20% of outstanding issuance – up by more than half from ¥125tn about a year ago. The fall in market liquidity looks set to intensify as the BoJ has vowed to continue its aggressive buying for at least another year, with market players expecting it to expand its easing some time later this year.

 

The BoJ stepped up its bond buying last April when Haruhiko Kuroda became its governor, vowing to take radical easing steps to end deflation once and for all. The increasing dominance of the BoJ in the market, however, resulted in shortage of tradable bonds in the market, reducing trading flows between market players. The current 10-year cash bonds saw its first trade of the week yesterday afternoon, having gone untraded for more than a day and a half. Trade volume in the benchmark cash bonds so far this month dropped to less than one trillion yen, down about 70% from the same period last year.

 

What exactly does this mean? Well, it’s definitely weird. These are the most important fixed income instruments of the world’s third biggest economy, and the only entity willing to own them is the government that issues them.

 

The rest of the world now refuses to lend money for ten years at 0.6% to a government whose debt is 200% of GDP and rising, which leaves Tokyo with only two choices: monetize virtually all its future borrowing or allow interest rates to rise and pay two or three times as much in interest going forward. The latter choice would hobble, if not cripple, an economy that can only function when borrowed money is nearly free.

 

Google Finance chart shows that the Nikkei, NKY, has been leading Nation Investment EFA, lower, ever since the Benchmark Interest Rate, $TNX, began to trade higher on October 23, 2013.

 

Finviz Chart shows that this week the Weekly Inverse of the Japanese Government Bonds, JGBS, traded decisively higher.

 

Gulf Times reports Japan Bond Market Liquidity Dries Up As BoJ Holding Crosses ¥200tn.

 

Daily News Egypt posts the Joseph Hammond and James Wan, Think Africa Press report Egypt’s Military Economy: Money is power, power is money. In a poll in March, 39% of Egyptians said they were planning to vote for him, while fewer than 1% of respondents said they were planning to vote for any of the other candidates. Anything but an Al-Sisi victory seems highly unlikely, and come May, the military’s hold on power will have become even further entrenched. It was only in January 2011 that Hosni Mubarak, a military man too, like all his predecessors since 1952, was overthrown, but now it seems the Egyptian military is not only back in the seat of power, but perhaps stronger than ever. A look behind the political curtains at the backstage that is the Egyptian economy seems to bear this out.

 

With around 2 million personnel, including 500,000 in the army, the Egyptian military is the biggest in Africa, and one of the largest in the world. Arguably far more striking than the extent of its physical muscle, however, is the size of economic muscle. Its spokespeople consistently try to play down its role in Egypt’s economy, claiming the military is responsible for just 1% of the country’s GDP, but analysts tend to believe the military controls between 5 and 40% of the economy, with most leaning towards the higher end of that spectrum.

 

Exact figures are hard to come by. The military’s budget is kept confidential and its business dealings are typically untaxed and unaudited on apparent grounds of national security. It is known, however, that military is involved in countless different businesses in countless different industries. Military-owned companies engage in ventures from cement to shipbuilding, from fertiliser to fridges, and from tourism to televisions. The Egyptian army owns hospitals and child-care centres, it is a huge player in the country’s agricultural sector, and it has various contracts with foreign investors worth hundreds of millions of dollars. The military also owns vast tracts of land. In 1997, a presidential decree awarded the army the right to manage all of Egypt’s unused land. According to some estimates, that essentially gives the military de facto control of 87% of the entire country’s land mass.

 

3) … Investment gain will turn precipitously into investment loss; wealth can only be preserved by investing in and taking possession of gold bullion.

Defensive Stocks, DEF, Global Consumer Staples, KXI, Utilities, PUI, Global Utilities, DBU, World Real Estate, DRW, US Real Estate, IYR, Industrial Office REITS, FNIO, Residential REITS, REZ, Retail REITS, SLG, and General Growth Properties, GGP, and Dividends Excluding Financials, DTN, traded to new all time highs, as is seen in their combined ongoing Yahoo Finance Chart.  And Energy Production, XOP, traded higher, on a higher price of Oil, USO.

 

Now all forms of fiat investment, both Equity Investments, and Credit Investments, are trading lower from their April 10, 2014, highs.  Popular Notes and Bonds, SHY, EMCD, TLT, ZROZ, FLOT, QLTA, VCLT, PICB, BWX, MBB, traded lower at the end of the week of April 17, 2014.

 

The bear market of all time has commenced as is evidenced by the trade lower in Covered Call, HFIN, which reflects that the trend is now lower, in Value Shares, such as Large Cap Value, JKF, and Defensive Stocks, DEF.  The Risk Trade in Small Cap Value, RZV, and Small Cap Growth Stocks, RZG, is history. The trade lower in Call Write Bonds, CWB as well as the trade lower in Closed End Funds, JCE, GCE,  CSQ, PTY, AWP, PFL, RCS, and EIM, seen in their combined ongoing Yahoo Finance Chart, establishes that buy and hold investing is not working.  Hedging no longer works, as Hedged Japan, DXJ, Hedged Global Stocks, HEDJ, and Hedged Emerging Markets, DBEM, are trading lower.  Look out below!

 

The age of credit produced awesome investment gains for those invested in fiat money and fiat wealth such as stocks and real estate, and produce some global economic growth, via central bank investment inflationism, more specifically through the three dynamos of creditism, globalism and corporatism, which saw the Federal Reserve’s balance sheet inflate from $900bn to $4.5 TN in just six years. Bitcoin is not money and failed because it lacks any known sovereign, and thus is unable to provide seigniorage.

 

The age of debt servitude is one of investment loss and economic deflation, which comes via destructionism, and where the singular dynamo of regionalism prevails to establish regional security stability and sustainability, via regional fascism. Elaine Meinel Supkis writes on this relating Russia Hurt By Economic Warfare But US Is Being Utterly Destroyed By Our Trade Partner Allies.

 

The current economic deflation in the Eurozone is caused in large part by unemployment. EU Observer posts Regional Unemployment Highest In Spain. The WSJ reports Deflation Threat Becomes More Widespread in Europe. Consumer prices rise at slowest pace for more than four years in Year to March.

 

The week of Monday April 14, 204, through April 17, 2014, provided a short selling opportunity. One where investors could have been short selling as the week proceeded; as in a bear market one sells into pips, just as in a bull market one buys into dips.

 

A number of short selling opportunities arose. Doug Noland reports Ten-year Portuguese yields sank another 23 bps to 3.74% (down 239bps y-t-d). Italian 10-yr yields fell nine bps to 3.12% (down 100bps). Spain’s 10-year yields dropped 10 bps to 3.09% (down 107bps). As a consequence Portugal, PGAL, rose 0.5%, Italy, EWI,  2.3%, and Spain EWP, 1.9%.  Stockbrokers, IAI, led by SCHW, TROW, ITG, rose 5.1%. Large Cap Growth, JKF, Sectors rising included Aerospace And Defense, PPA, 4.2%, Transportation, XTN, 3.7%, led by UNP, DAL. Global Industrial Producers, FXR, 3.4%, led by PPG, QCOM, EMR, ETN, ROK, ITW, GRA, IFF, APH, DOW, SEE, MMM, WLK, JNJ, HON, WHR, Semiconductors, SOXX, 3.1%, led by MU. Energy Production, XOP, rose, 7.1%, manifesting three white soldiers candlestick pattern. Energy Services, OIH, rose 4.2%, led by CLB, manifesting an evening star candlestick.

 

A portfolio of Inverse Market ETFs could have served as collateral; this might have included STPP, XVZ, JGBS, GLD, PPLT, PALL, EUO, YCS, OFF, SAGG, DTYS, DNO, as well as HDGE, SBB, SBM, DDG, EFZ, YXI, SZK, SDP, KRS, REK.

 

Money is the credit and flow from sovereign authority.

 

The age of credit presented was an experience in fiat money, which provided the  opportunity to grow wealth by investing in fiat assets such as stocks, bonds, and real estate.

 

Now, in the age of the failure of credit, coming as bond vigilantes call the Benchmark Interest Rate, $TNX, higher from 2.74%, a new form of money will develop, that being diktat money.

 

Wealth can only be preserved by purchasing and taking possession of and safely storing gold bullion.

 

Those who own gold are economically sovereign and together with emerging regional fascist leaders possess seigniorage; the new money will have its value from the word, will and way of regional sovereign bodies, and regional sovereign leaders, whose authority comes from regional framework agreements. Public private partnerships will coin money as their edicts replace the leveraged speculative investment community’s schemes of credit and currency trade investing.

 

This week, that is the week ending April 17, 2014, Gold, $GOLD, traded lower to $1,293 on a higher US Dollar, $USD, UUP.  The Gold ETF, GLD, is in a area of strong resistance, and being a currency as well as a commodity, traded lower with the commodity currencies the Australian Dollar, FXA, the Brazilian Real, BZF, as well as the Emerging Market Currencies, CEW.

 

The chart of the Gold ETF, GLD, shows that it entered an Elliott Wave 3 of 3 Up in January 2014. Short Side Of Long posts Gold Has Outperformed Other Asset Classes In First Quarter 2014. ETF Daily News reports Phantom Gold Inventories: has the Comex already defaulted?.  It’s hard to justify investment in Gold Mining Companies, such as AEM, given its forward PE of 37.

 

It’s best to find a place where the effects of economic deflation will be felt the least; those with wealth should consider International Living, and begin to maintain a home in Ecuador and in Panama City.

 

In blogging I have come to appreciate that life is an economic journey in sovereignty and the seignorage it provides.

 

The current economic deflation in the Eurozone is caused in large part by unemployment.  The Ed Yardeni post Economic Recovery Is Lackluster communicates Socialist economies have not benefited LTRO 1, LTRO 2, and OMT, as much as the Crony Capitalist US economy, the reason being there is more clientelism in the EU, as The Economist posts, Structural Reform In Southern Europe: Some Patchy Progress, and less home ownership, less natural resources like oil and gas, and less securitization of investment risk.

 

EU Observer posts Regional Unemployment Highest In Spain.  And the WSJ reports Deflation Threat Becomes More Widespread in Europe.  Consumer prices rise at slowest pace for more than four years in Year to March.

 

Future economic deflation will be global in nature and caused mostly by disinvestment from debt trade investing, such as Real Estate Investment, Blackstone, BX, and currency carry trade investing, such as Budweiser, BUD, hitting hardest in the Most Carry Traded Nations, which includes Europe, DFE, Indonesia, IDX, Developing Europe, ESR, The UK, EWUS, Egypt, EGPT, Denmark, EDEN, India, SCIN, the US, IWM, New Zealand, ENZL, China, ECNS, Africa, GAF, Singapore EWS, and the Philippines, EPHE. Yes, look for fast falling currencies such as the Indonesia Rupiah, Egyptian Pound, New Zealand Dollar, Singapore Dollar, and the Philippine Peso.

 

The Apostle Paul in Ephesians 1:10 presents The Great Economic Blesser, that being Jesus Christ, who is now, has been, and always will be in Dispensation, that is in economic stewardship of all things, producing the ultimate economic experience.

 

The world passed through peak prosperity on Thursday April 10 with the failure of credit in the Eurozone.  Humanity has passed from the age of credit, which produced prosperity, into the age of debt servitude, where the new normal is austerity.

 

I appreciate all who have come to visit my blog.

 

This post’s short url is http://tinyurl.com/m5ru6lj

Authoritarianism Commences On The Failure Of Credit And Unwinding Liberalism’s Currency Carry Trades And Debt Investment Trades

April 12, 2014

Financial market report for the week ending April 11, 2014.

 

This document can be found in Google Documents format here.

 

1) … Jesus Christ consistently acts in dispensation, a concept developed by the Apostle Paul in Ephesians 1:10. The idea is that He acts in economic oversight to mature every age and paradigm, bringing it its completion, much like a ship’s captain completes the ship’s manifest, before setting sail on a new journey.

 

Christ fully developed liberalism, meaning freedom from the state, by creating the investor through the repeal of the Glass Steagall Act, maturing it with the world central banks’ Global ZIRp, and then perfected it as the age and paradigm of credit and investment choice, on April 4, 2014, by driving World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Dividends Excluding Financials, DTN, lower from their March 2014 highs.  On Monday April 7, he actively birthed authoritarianism by unwinding liberalism’s currency carry trades and debt trades, and is now creating the age and paradigm of debt servitude and the debt serf.

 

Short Side of Long PostsThe Fed’s Goal To Improve Employment By Printing Money Has Failed!  This remains the worst/weakest recovery ever; the real economy has grown very little. Confounded Interest postsLow Paying Services Jobs Lead Recovery.

 

In similar vein, Francesco Saraceno, the Gloomy European Economist posts ECB: One Size Fits None.  In addition to being unfit for individual countries, the ECB stance is now unfit to the Eurozone as a whole. And of course, a negative target rate can only mean, as Münchau forcefully argues, that the ECB needs to get its act together and put together a credible and significant quantitative easing program.

 

Robert Wenzel of Economic Policy Journal posts Federal Reserve Money Printing Makes the Rich RicherThe Fed’s Goal, as well as the ECB’s Goal, has never been to improve employment and global growth. Thomas Piketty, professor at the Paris School of Economics, communicates the world central banks have created a New Gilded Age, a second Belle Époque, defined by the rise of the one percent.

 

Though Federal Reserve QEs, ECB LTROs and OMT, PBOC Monetary Injections, and other similar world central bank monetary actions, credit was made widely available to investors, such as day traders, real estate investors, students, and even clients of liberal governments, such as those living in Greece Socialism, and those in the US living on welfare, TANF, SSI/SSD, and Section 8 Housing, all through the speculative leveraged investment community, creating a spectacular moral hazard based prosperity enjoyed by only a relative few, in particular those with fiat wealth and those earning executive incomes, as they profited from investment in currency trades in Ireland, EIRL, Greece, GREK, Germany, GERJ, The UK, EWUS, The Gulf, GULF, Egypt, EGPT, Denmark, EDEN, the US, IWM, Eurozone Small Cap Dividend, DFE, and New Zealand, ENZL, as is seen in thecombined ongoing Yahoo Finance Chart, as well as debt trades such as Real Estate Investment Company, Blackstone, BX.

 

Socialist news reports criticized the real estate investor in the fire that led to a child’s death. Pittsburg Action 4 News reports No Charges To Be Filed in Fatal Fire.  Ayanna Lisa Brooks perished in a fire on the 1700 block of SolesSt in McKeesport PA on March 23, 2013. McKeesport Fire Chief Kevin Lust said Ayanna’s aunt was caring for her and the other children in the home while the girl’s mother was visiting relatives out of town. He said he believes both women lived in the home with the five children.

 

Samuel Davidson of WSWS reports Deplorable Housing For Workers And Poor Leads To Tragedy. Steel City Realty reportedly bought the Soles Street home in 2010 for just $5,000. With rents in the area ranging from $450 for a one-bedroom to $850 for a three-bedroom house, the owners would have made their investment back in less than a year. The family had lived there about two years before the fire took place.

The real estate web site Zillow list 103 houses for sale in McKeesport. Forty-one of those homes are in some state of foreclosure. More than half are selling for less than $30,000, and eight are selling for less than $10,000. Rents are between $550 for a one-bedroom to $850 for a three-bedroom house.

The address listed as the owner of the Soles St house that burned down March 26 (Google Earth image)

Nor is Steel City Realty the only slumlord in the area. On Soles street and on the three neighboring streets, 22 homes have been sold in the past three years for between $10,000 and $35,000. Homes that sell for less than $10,000 are not listed. At least a third of these have investment companies listed as owners. The average sale price was just $15,000.

Mrs. Jones, who was walking to a convenience store with her two grandchildren, said she was very sad about the fire. “I used to see those children outside playing, their mothers were doing what they could to raise them. Times are hard and people don’t have jobs. The landlords do nothing to fix up the houses around here. Only when a family moves out; maybe they will clean it a little and paint the walls, but once someone moves in, they don’t do anything.

“That landlord should be arrested for not having a smoke alarm in the house,” she concluded.

 

Since 1998, Jesus Christ was not concerned in the least about any socialist desires for regulations requiring smoke in rental properties, His focus was perfecting liberalism’s moral hazard based prosperity, through the Banker and Democratic Nation State Regime, and its three dynamos of creditism, corporatism, and globalism.

 

Having achieved Peak Liberalism, meaning ultimate freedom from the state, on April 4, 2014 with Peak World Stocks, VT, Peak Nation Investment, EFA, Peak Wall Street, IXG, and Peak Dividend Investing, DTN, He is now pivoting the world into authoritarianism, via the singular dynamo of regionalism, to achieve authoritarianism’s debt servitude based austerity, through the Beast Regime and Regional Economic Government and Totalitarian Collectivism, seen in Revelation 13:1-4, where liberalism’s fiat wealth and fiat money will be utterly pulverized as is seen in Daniel 7:7.

 

Nor is Jesus Christ been concerned about the libertarian desires for No Aggressive Use Of Force, as presented by libertarian Chris Rossini writing in Economic Policy Journal, as He is seen in bible prophecy of Revelation 13:1-4, bringing out of Club Med, that is Portugal, Italy, Greece and Spain, sovereign, banking and corporate insolvency, the Beast Regime of regional economic governance, which will rule in diktat policies in the world’s ten regions and occupy in schemes of totalitarian collectivism in all of mankind’s seven institutions. Libertarian and Conservative United Kingdom, MP, John Redwood, complains of One Law For Everyone. Soon, all those in the EU will be at ground zero as a One Euro Government rises as a type of Revived Roman Empire, to establish regional security, stability and sustainability out of disintegrating currency carry trades and debt trades. News reports reflect that the Eurozone is rising to be a global military superpower. Ulrich Rippert posts in WSWS German Left Party MPs Vote For Military Deployments. The  vote by Left Party members for military intervention marks a further shift to the right by the party. And Johannes Stern of WSWS posts  German Government Planning Major Military Buildup. The German government is using the mounting conflict between NATO and Russia to massively rearm the army. I comment that the libertarian dream for a free society, that is one free from government interventionism, is a mirage on the authoritarian Desert of the Real.

 

In the age of liberalism, His sole concern was to maximize returns based upon the most leveraged currency carry trades and debt trades available. Now, in the age of authoritarianism, He will utterly destroy all currencies, pursuit of yield, and apply all of liberalism’s debt, every bit of it, to every man woman, and child on planet earth, Daniel 7:7. The imminent ECB decision of Thursday, April 10, 2014, will certainly be an effecting working of the dispensation of Jesus Christ, as is seen in Ephesians 1:10, for the completion of authoritarianism as the age of debt servitude.

 

2) … In this week’s financial marketplace trading.

 

On Monday April 7, 2014, The see saw destruction of fiat wealth got strongly underway as Aggregate Credit, AGG, traded higher as the Interest Rage on the US Ten Year Note, ^TNX, traded lower to 2.70%, and as World Stocks, VT, were led lower by Solar Energy, TAN, Uranium Producers, URA, China Technology, CQQQ, US Infrastructure, PKB, Social Media, SOCL, Resorts and Casinos, BJK, Transportation, XTN, Global Industrial Producers, FXR. IPOs, FPX, Nasdaq Internet, PNQI, Small Cap Consumer Discretionary, PSCD, Consumer Discretionary, IYC, and Retail, XRT, such as ANF.

 

Energy Producers, XOP, traded lower, on a lower price of Oil, USO.

 

Global Financials, IXG, were led lower by the National Bank of Greece, NBG, Stockbrokers, IAI, Investment Bankers, KCE, and the Too Big To Fail Banks, RWW.

 

Nation Investment, EFA, was led lower by Egypt, EGPT, Russia, RSX, Russia Small Caps, ERUS, China Industrials, CHII, China Small Caps, ECNS, German Small Caps, GERJ, Greece, GREK, and the Russell 2000, IWC.

 

The failure of credit has commenced, and is seen in Retail, XRT, US Infrastructure, PKB, Consumer Services, IYC, Small Cap Consumer Discretionary, PSCD, such as the Automobile Dealers, the Credit Service Companies, MA, V, AXP, DFS, Asset Managers, BLK, AMG, Regional Banks, KRE, Stockbrokers, IAI, Investment Bankers, KCE, the Too Big To Fail Banks, RWW, and the German Small Caps, GERJ, Greece, GREK, the Russell 2000, IWC, trading flower.

 

The Small Cap Growth, RZG, and the Large Cap Growth, JKE, are leading the Small Cap Value, RZV, and the Large Cap Value, JKF, lower, as is seen in their combined ongoing Yahoo Finance chart. And Utilities, PUI, are topping out on the trade lower in the Interest Rate on the US Note, ^TNX, to 2.70.

 

Greed has turned to fear with investors selling out of consumer stocks and credit intensive stocks on the exhaustion of trust in the world central banks’ monetary authority. Risk-on investing has turned to risk-off investing.

 

Yield chasing investing, as well as successful fixed income investing were a defining characteristic of liberalism. The Pursuit of Yield Investments, seen in this Finviz Screener of Yield Bearing Investments, such as Gulf Dividends, US Real Estate, IYR, Small Cap US Real Estate, ROOF, Industrial Office REITS, FNIO, Mortgage REITS, REM, Electric Utilities, PUI, Global Utilities, DBU, Shipping Stocks, SEA, Dividends Excluding Financials, DTN, Financial Preferreds, PGF, Leveraged Buyouts, PSP, Global Telecom, IST, and others, is over, through, finished and done, as the world central banks’ monetary policies have crossed the rubicon of sound monetary policy and have made “money good” investments bad. The Far East Financials, FEFN, largely Japanese Financials IX, SMFG, MFG, and MTU, falling lower on the failure of Abenomics, and Japanese Militaristic Foreign Policy, have put the nail in the coffin on yield bearing investing.

 

The world has passed through an inflection point. Inflationism has turned to destructionism. As is seen in Ephesians 1:10, Jesus Christ, operating in the economy of God, has pivoted the world out of liberalism, meaning freedom from the state, where the investor was “free to choose”, to the new normal of authoritarianism, where the debt serf is required to comply with the mandates of regional leaders.

 

Liberalism featured what Doug Noland termed wildcat investing. Authoritarianism features wildcat governance where leaders bit, rip, and tear one another apart to see who will be top dog as evidenced by the Johannes Stern of WSWS posts Pro-Russian Protesters In Eastern Ukraine Demand Crimean Style Referendum. And Mike Mish Shedlock posts Ukraine Parliament Erupts In Violent Brawl.

 

Bible prophecy of Revelation 13:1-4, foretells that out of soon coming Eurozone Club Med credit crisis, regional economic fascism will rise to govern the world as the Beast Regime with its policies of diktat in regional economic governance in each of the world’s ten regions, and schemes of totalitarian collectivism debt servitude in all of mankind’s seven institutions, replaces the Creature from Jekyll Island with its policies of credit and investment choice.

 

On Tuesday April 8, 2014, Emerging Markets, EEM, rose, as Turkey, TUR, Indonesia, IDX, Egypt, EGPT, Argentina, ARGT, Chile, ECH, China, YAO, CHII, India, INP, SCIN, Emerging Market Financials, EMFN, Chinese Financials, CHIX, India Earnings, EPI, traded higher, on higher Emerging Market Currencies, CEW; and as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.68%.  Australia, EWA, South Korea, EWY, Singapore, EWS, and South Africa, EZA, traded higher, on the lower Benchmark Interest Rate. Nation Investment, EFA, traded unchanged.

 

Global Financials, IXG, traded unchanged.

 

World Stocks, VT, bounced higher as Steel, SLX, Coal, KOL, Global Miners, PICK, and the sectors which have been selling off, such as Social Media, SOCL, and Biotechnology, IBB, traded higher.

 

The ongoing Yahoo Finance chart of Agricultural Commodities, RJA, which includes popular commodities such as CORN, WEAT, JJG, SGG, is seen topping out.

 

Yield Bearing Stocks, DTN, bounced higher, as Global Real Estate, DRW, China Real Estate, TAO, Gulf Dividends, GULF, Australia Dividends, AUSE, India Earnings, EPI, and Electric Utilities, PUI, traded higher; but gains were limited by Japanese Financials, such as IX, SMFG, MFG, and MTU, Global Telecom, IST, Europe Small Dividends, DFE, and Leveraged Buyouts, PSP, which traded lower.

 

Look for all interest rates to rise, including the Short Term Interest Rate, as well as the Benchmark Interest Rate, that is the Interest Rate on the US Ten Year Government Note, ^TNX, to rise from 2.62%.

 

In fact, soon, the short term rate will rise so much that money market funds will break the buck, that is the will not be able to maintain their constant one dollar value, as Short Term Government Bonds, SHY, and all Notes And Bonds, as well as High Yielding Bonds, fall lower in value.

 

Economic Deflation is a characteristic of the age of the failure of credit. Signs of economic deflation already abound in Europe Eurostat reports in PDF document Euro area house prices down by 1.4%; and reports in PDF document Labour Force Survey 2013 In the EU 28, 10 million part-timers are underemployed and 11 million persons considered as a potential additional labour force.

 

Liberal economist Mark Thoma posts in CBS Money Watch Why Is Deflation So Harmful First, the actual fall in prices, rather than just the inflation rate getting lower, which is call disinflation. falling prices shift consumption from the present to the future as consumers wait for prices to fall, and the drop in demand can further depress the economy, lead to more price decreases, more cuts in spending, and a downward spiral into a recession.

Second, deflation raises the inflation-adjusted interest rate, and that can cause consumers to spend less on durables like cars, appliances and houses that are purchased with credit. Rising inflation-adjusted interest rates also increase the cost of borrowing and can depress business investment.

Third, that’s not the end of the story. As consumption and investment spending fall, aggregate demand declines, and that causes prices to fall even further. The result is even more deflation, more cuts in consumption and spending, further decreases in prices and the economy crashes in what Irving Fisher called a debt-deflation spiral.

Another way to say this is that deflation discourages new borrowing and makes existing borrowers worse off because it raises the inflation-adjusted value of debts and makes the debts harder to pay off. So, it imposes a burden on borrowers.

 

On Wednesday, April 9, 2014, World Stocks, VT, bounded higher as a number of the sectors which had traded sharply lower, traded slightly higher; these included Social Media, SOCL, Biotechnology, IBB, Nasdaq Internet, PNQI, Solar Energy, TAN, Resorts And Casinos, BJK, Internet Retail, FDN, Pharmaceuticals, PJP, China Technology, CQQQ, and China Industrials, CHII. One can follow the destruction of World Stock Investments, with this Finviz Screener of World Stock Investment ETFs.

 

Nation Investment, EFA, traded higher, near its previous high, as Australia, EWA, South Korea, EWY, Canada, EWC, India, INP, and China, YAO, traded higher. One can follow the destruction of Nation Investment, with this Finviz Screener of Nation Investment ETFs.

 

Small Cap Nation Investment, IFSM, traded to a new rally high, as Canada, CNDA, Austria, EWO, Finland, EFNL, Denmark, EDEN, Ireland, EIRL, France, EWQ, Norway, NORW, Sweden, EWD, South Africa, EZA, Argentina, ARGT, New Zealand, ENZL, India, SCIN, traded higher. One can follow the destruction of Small Cap Nation Investment, with this Finviz Screener of Small Cap Nation Investment ETFs. The following ETFs have been largely responsible for most of the rally in Small Cap Nation Investment SCIN, CNDA, EWZS, ENZL, IDX, EPHE, TUR, THD, as is seen in their combined ongoing Yahoo Finance Chart.

 

Global Financials, IXG, bounced higher as the National Bank of Greece, NBG, India’s HDB, and IBN, Australia’s Bank, WBK, China Financials, CHIX, South Korea Banks, SHG, KB,WF, and Emerging Market Financials, EMFN, traded higher.  One can follow the destruction of Global Financial Investments, with this Finviz Screener of Global Financial Investment ETFs.

 

Dividends Excluding Financials, DTN, bounced higher as S&P International Dividends, DWX, Global Utilities, DBU, World Real Estate, DRW, China Real Estate, TAO, Gulf Dividends, GULF, India Earnings, EPI, Australia Dividends, AUSE, Emerging Market Small Cap Dividends, EDIV, and Energy Partnerships, AMJ, traded higher. One can follow the destruction of Yield Bearing Investments, with this Finviz Screener of Yield Bearing Investment ETFs.

 

Gold, $GOLD, GLD, rose, as the US Dollar, $USD, UUP, traded strongly lower, suggesting a likely low in front of Thursday’s ECB Meeting.

 

Major World Currencies, DBV, traded higher as currency traders took one of the most heavily sold off currencies, the Canadian Dollar, FXC, higher, driving Canada, EWC, to a new rally high.  And they took the Australian Dollar, FXA, driving Australia, EWA, to a new rally high.

 

Emerging World Currencies, CEW, traded higher as currency traders took the Brazilian Real BZF, to what also will likely be its rally high, driving Brazil, EWZ, to a new rally high.

 

Thursday April 10, 2014, marked a pivotal economic change in mankind’s history. The failure of credit commenced aspopular currency carry trades unwound trading in Small Cap Nation Investment, IFSM, and Nation Investment, EFA, as the ECB failed to come forward with any new credit stimulus.

 

Another word for credit is trust. Investors no longer trust in the monetary policies of the world central banks to stimulate global investment growth. Said another way the world central banks’ monetary policies have crossed the rubicon of sound monetary policy and have made “money good” investments bad.

 

Action Forex Chart Report shows the EUR/JPY trading lower from its rally high. Likewise the Yahoo Finance Chart Report of the EURJPY together with both Eurozone Stocks, EZU, and European Small Cap Dividend Stocks, DFE, traded lower from their Friday April 4, 2014 highs evidencing the failure of currency carry trade investing.

 

Greece, GREK, led Eurozone Nations, Italy, EWI, Germany, EWG, Netherlands, EWN, France, EWQ, Ireland, EIRL, Spain, EWP, Austria, EWO, and Portugal, PGAL, lower on the failure of European Credit, EU.

 

Many investors invest heavily at market tops; this is seen in the Liz Alderman and Landon Thomas NYT report Taking A Risk, Investors Snap Up Once-Shunned Greek Debt.

 

Vivianne Rodrigues and Tracy Alloway of Financial Times write: “Sales of a popular type of structured product have ballooned in the past couple of weeks to their highest levels since the build-up to the financial crisis, buoyed by investors’ continued thirst for yield. March saw the highest sales of collateralised loan obligations since May 2007, according to data from S&P Capital IQ. About $11.15bn of the bundled corporate loans were sold last month, topping the $10.74bn priced in March last year and eclipsing the $10.82bn issued in May 2007. CLOs typically bundle together leveraged loans made to companies but sometimes also include bonds and other securities to help boost returns for yield-hungry investors. The surge in sales has come in spite of market developments that, in theory, should have slowed them down significantly.”

 

Sarah McBride of Reuters reports: “Venture capital funding for U.S. startups hit its highest mark since 2001 during the first three months of the year and 11 companies were valued at $1 billion or more, underscoring the increasingly pricey environment for entrepreneurs, according to… consultancy CB Insights. Venture capitalists invested $9.99 billion across 880 deals in the first quarter of 2014. The dollar amount jumped by 44% compared with the same quarter in 2013.”

 

Oshrat Carmiel of Bloomberg reports: “Manhattan developer Bill Rudin hadn’t planned to start selling apartments at his Greenwich Village project until the end of this year. He began rethinking that strategy after getting cornered at a cocktail party. ‘People came up to me and said, ‘We want to buy, we want to buy. When can we buy?’ Rudin said… He opened a sales office in October for the Greenwich Lane, a complex under construction at the site of the shuttered St. Vincent’s Hospital, after an online sign-up list of would-be buyers for the 200 condominiums drew 1,100 names. More than half of the units at the development, still largely a field of dirt and skeletal towers, have sold at prices averaging $3,500 a square foot, in line with other projects downtown and a new luxury benchmark for the area.”

Bloomberg reports Spanish Billionaire Amancio Ortega Gaona, Outbids Pros to Build $10 Billion Property Empire, to complement his Madrid Spain based Inditex, the biggest integrated retail apparel company in the world, operates Zara retail stores as its flagship operations. Inditex has eight brands, 6300 stores, in 87 markets. MSN Money Chart shows Inditex, ES:ITX, had been a retail sector leader up until November 1, 2013l; but now is a retail sector loss leader. It has a PE ratio of 27, a Price to Book Ratio of 7. The WSJ reports Inditex Builds For The Futurefashion giant continues to invest in new stores; while Retail Detail Europe reports Inditex Profit Growth Lowest In Years.

 

Sweden, EWD, traded strongly lower on the sell of the Swedish Krona, FXS. Currency carry trade leader Denmark, EDEN, traded lower.

 

The export sensitive Nikkei, NKY, fell strongly on the rise of the Japanese Yen, FXY. And currency sensitive Indonesia, IDX, and Vietnam, VNM, also fell strongly lower.

 

The credit sensitive US Small Caps, IWM, traded strongly lower, as did their underlying credit providers, Regional Banks, KRE, which drove investors to derisk out Small Cap Pure Value Stocks, RZV, and Small Cap Pure Growth Stocks, RZG, all evidencing the failure of credit based investments on the exhaustion of the world central banks’s monetary authority.

 

Global Financials, IXG, were led lower by European Financial, EUFN, leaders, Ireland’s Bank, IRE, the National Bank of Greece, NBG, evidencing the failure of debt trade investing. Asset Managers, such as Blackrock, BLK, Affiliated Managers Group, AMG, Ameriprise Financial, AMP, and Blackstone, BX, traded strongly lower, evidencing the failure of money manager capitalism.

 

World Stocks, VT, were led lower by disinvestment from the sectors Biotechnology, IBB, Solar Energy, TAN, Internet Retail, FDN, Nasdaq Internet, PNQI, Pharmaceuticals PJP, Media, PBS, Software, IGV, Cloud Computing, SKYY, IPOs, FPX, Semiconductors, SOXX, Timber Producers, WOOD, Consumer Services, IYC, Retail, XRT, such as FDO, DLTR, DG, and Data Storage companies such as STX, BRCD, SNDK, IMN, HILL, CRDS, NMBL, and WDC.

 

Yield bearing investments were led lower by disinvestment from the sectors Water Resources, PHO, International Telecom, IST, Leveraged Buyouts, PSP, Shipping, SEA, International Dividends, DWX, Eurozone Small Cap Dividends, DFE, and Dividends Excluding Financials, DTN.

 

Utilities, PUI, traded lower even though the Benchmark Interest Rate, ^TNX, traded lower to 2.63%.

 

On Friday, April 11, 2014, World Stocks, VT, were led lower by Biotechnology, IBB, Solar Energy, TAN, Social Media, SOCL, Nasdaq Internet, PNQI, Internet Retail, FDN, IPOs, FPX, Semiconductors, SOXX, Pharmaceuticals, PJP, Global Industrial Producers, FXR, Retail, XRT, Media, PBS, Small Cap Pure Value Stocks, RZV, and Small Cap Pure Growth Stocks, RZG.

 

Nation Investments, EFA, was led lower by the US Small Caps, IWM, UK Small Caps, EWUS, and Ireland, EIRL, Denmark, EDEN, and European Small Cap Dividends, DFE.

 

Global Financials, IXG, were led lower by the Ireland’s Bank, IRE, Investment Bankers, KCE, The Too Big To Fail Banks, RWW, and Stockbrokers, IAI.

 

The failure of credit, commenced on April 10, 2014, and is seen in Call Write Bonds, CWB, trading lower from their March 2014 high, and is defined by the see saw destruction of equity investments (such as World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Global Financial Investments, IXG, and Dividends Excluding Financials, DTN) and credit investments, AGG, which began to trade lower in May 2013. Investors no longer trust in the monetary policies of the world central banks to stimulate investment growth, despite TradingFloor reporting Global Manufacturing PMI Tracker Shows Growth Robust In March.  One can follow the destruction of Credit with this Finviz Screener of Credit ETFs.

 

The Interest Rate on the US Ten Year Note, ^TNX, firmed lower at 2.62%; and the Steepner ETF, STPP, found support at 38.67, taking Aggregate Credit, AGG, higher on the day and week. The ongoing Yahoo Finance Chart of the Flattner ETF, together with ZROZ, EDV, TLT, AGG, FAGIX, and JNK, shows that the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened as some investors rushed into the Zeroes, ZROZ, as investors fled stocks the week ending April 11, 2014.

 

The failure of credit is established by Distressed Investments, such as those traded by Fidelity Investments, FAGIX, and by Junk Bonds, JNK, trading strongly lower on Thursday April 10, 2014 and Friday April 11, 2014. It was the Distressed Investments, that the US Fed took in and traded out “money good” US Treasuries in 2008 and 2009 as part of QE1 to regenerate the US and World Financial System. Regional Banks, KRE, lost 5% of their value this week, and thus document the failure of credit.

 

Look for Aggregate Credit, AGG, to very soon once again trade lower as Corporate Bonds, LQD, Long Duration Corporate Bonds, BLV, International Corporate Bonds, PICB, and World Treasury Bonds, BWX, which are seen peaking out, turn lower, commencing the failure of currencies.

 

Debt Deflation will be driving Major World Currencies, DBV, and Emerging Market Currencies, lower. Said another way, bond vigilantes calling the Benchmark Interest Rate higher, $TNX, on the exhaustion of the world central banks’ monetary authority, will commence spectacular competitive currency devaluation, unwinding liberalism’s currency carry trades and debt trades. One can follow the destruction of currencies with this Finviz Screener of Currency ETFs.

 

The pursuit of yield is history, terminating risk driven investors at large, such as those invested in Biotechnology, IBB, Social Media, SOCL, Small Cap Pure Value, RZV, and Small Cap Pure Growth, RZG, and fixed income investors in particular, as the centerpiece of economic activity; look for the valued Dividends Excluding Financials, DTN, such as those seen in this Finviz Screener of Leading Dividend Bearing Stocks, and Short Term Bonds, FLOT, to trade lower in value.

 

Out of soon coming economic chaos stemming from derisking out of currency carry trade investments, such as the EUR/JPY, and the GBP/JPY, as well as out of deleveraging out of debt trades, such as Real Estate Company, Blackstone, BX, yield curves such as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, will be steepening, and short term interests rates will be rising, causing 1 to 3 Year US Government Note, SHY, to plummet.

 

Money market funds will break the buck, that is the traditional constant $1 Dollar Value, with the result that capital controls will be implemented and banks everywhere will be integrated into the Government, and be known as Government Banks, and in the US, the Bank’s Excess Reserves will be captured, so as to speak, by the US Fed.

 

Banks everywhere will be integrated into regional governments, with the Eurozone and the US being leading examples of economic fascism. Savings and Loans, Regional Banks, KRE, such as BOFI, SIVB, HBAN, and RF, the Too Big To Fail Banks, RWW, seen inthis Finviz Screener, will be integrated into the banks and be known as the Government Banks, or Gov Banks.

 

Money has been in an awesome bubble ever since it was underwritten by credit of the US Fed in taking in Distressed Investments, such as those traded by the Fidelity Mutual Fund, FAGIX, and in trading out money good US Treasuries, TLT, to underwrite faith in Regional Banks, KRE, and the Too Big To Fail Banks, RWW, under the Paulson Gift and Ben Bernake Stimulus of QE1.

 

The failure of credit is an extinction event, where the investor is going extinct, that pivots the world economy out of liberalism, that is the paradigm and age of investment choice and credit, and into authoritarianism, that is the paradigm and age of diktat and debt servitude, which features the debt serf, as the centerpiece of economic activity.

 

Buy and hold stock investing was an economic principle of the bygone era of credit.  Gold, $GOLD, traded higher to $1,318, on a lower US Dollar, $USD, UUP. The chart of the Gold ETF, GLD, shows that it entered an Elliott Wave 3 of 3 Up in January 2014. Short Side Of Long posts Gold Has Outperformed Other Asset Classes In First Quarter 2014. In the age of the failure of credit, wealth can only be preserved by purchasing and taking possession of and safely storing gold bullion.

 

3) … In the news

India experienced a stock market boom in front of its forthcoming major election, as is seen in the charts of India, INP, and India Small Cap, SCIN. Keith Jones of WSWS reports India Stages National Election Amid Mounting Social Crisis. Whatever combination of parties forms India’s government after the tallying of votes on May 16, India will soon be beset by political crisis and convulsed by intensifying class struggle.

 

Atif Mian and Amir Sufi of House of Debt post Family Structure and Inequality

 

Merkelnomics posts German February Industrial Production Show Economy Is Powering Ahead, while Hellenic Statistical Authority posts in PDF Document Greece’s Exports Fall.

 

Bloomberg reports Draghi’s $1.4 Trillion Question Lingers as ECB Mulls QE

 

Reuters reports New French Finance Minister Promises ‘Tough, Brave’ Decisions on Deficit

 

Alex Lanier of WSWS posts Incoming French Prime Minister Valls Pledges Austerity, Appeals To Far Right.

 

Zero Hedge reports Donetsk Creates “People’s Army”.

 

Bloomberg reports Iron-Ore Bear Market Deepens as Aussie Mines Expand.  The world is mining more iron ore than steelmakers need. Australia, the largest supplier, sent 504 ships from Port Hedland during the first quarter carrying enough iron-ore exports to build more than 700 Golden Gate Bridges. Shipments jumped 35 percent to the biggest buyer, China, where inventories have ballooned to the highest ever. After companies including BHP Billiton Ltd. and Rio Tinto Group expanded capacity to meet surging steel demand, output is climbing just as China’s economy slows to the weakest since 1990. Prices that already are down 14 percent in the past year will slump at least 16 percent further in the second half to less than $100 a metric ton, the lowest level since 2012, according to Credit Suisse Group and Standard Chartered.

Good Morning America posts Black Bear Mauls Woman Drags Her Out Of Garage.

 

4) … Thoughts on Sickness

The Blessed Economist posts Spiritual Perceiving (10) Sickness

 

5) … Summary … What is money, and what gives money its value?

The reason why I write, is to communicate the sovereignty of Jesus Christ, and the seigniorage, that is the moneyness, of His economy, as it proceeds in the last days, in light of the Revelation of Jesus Christ.  Ralph Diehl posts The purpose of the Book of Revelation is to reveal to Jesus’ servants what would soon take place. Although there are moral lessons to learn from this book, the stated purpose of Revelation is to show things that are yet future, but will happen “soon”. We should not fear this book, but embrace it as a word of expectation.

 

What is money? Money is the credit and flow that comes from ruling political and banking authorities, that is from economic sovereigns.

 

What gives money its value? All money, with the exception of gold, is debt based and has its value from trust in the debtor to repay the lender; as well as trust from the investor, to derive profit from investments in nations which issue currencies.

 

Lately investors favored the nations of Eurozone Small Cap Dividends, DFE, Indonesia, IDX, UK Small Caps, EWUS, Gulf Dividends, GULF, Egypt, EGPT, Greece, GREK, Denmark, EDEN, India Small Caps, SCIN, US Small Caps, IWM, German Small Caps, GERJ, New Zealand, ENZL, and China Small Caps, ECNS, seen in this Finviz Screener of the Most Carry Traded Nations. Bloomberg reports Record Europe Dividends Keep $3 Trillion From Factories. Given the choice between investing in their businesses or paying off shareholders, European chief executive officers are choosing the latter.

 

Another word for money’s value is seigniorage; both money and wealth have seigniorage, that is moneyness. The Russian Ruble, has no value as investment opportunities in Russia, RSX, ERUS, have been ruined by political instability. The Japanese Yen, FXY, has suffered a loss of value, because currency traders have sold it off because of the great amount of debt written by Japanese Financial Institutions, FEFN, such as IX, SMFG, MFG, and MTU, as well as the liberal monetary policies of Abenomics in Japan, EWJ, JSC.

 

Jesus Christ, as seen in Ephesians 1:10, is in Dispensation, that is in oversight of the economy of all things, and appointed Milton Friedman as the father of modern day money. Through his simple genius, he declared that under liberalism one should be Free To Choose, and that currencies should float according to relative value amongst investment choices existing in the nations. President Nixon embraced his concepts and took the US Dollar off the gold standard. Nations embraced the Banker’s floating currency regime. The US funded the Vietnam war, and the US Dollar became the International Reserve Currency, and as a result it replaced the British Empire as the global kick-ass, might makes right empire, as foretold in the Statue of Empires prophecy of Daniel 2:25-45.

 

Conservative MP John Redwood asks The Death of Britain? and writes “We need a new settlement, which gives people back their power to sack accountable MPs and so change the government. In turn MPs need to take responsibility back for governing the country so they can serve the country well.” I reply, with Jesus Christ, being in control of the economy of God, there are three chances of that happening: slim, none, and no way.

 

Over the last several years, the world central banks drove down Interest Rates, that is the cost of money, through coordinated policies of Global ZIRP, ie QE, LTRO, OMT, Monetary Injections, and the Speculative Leveraged Investment community underwrote tremendous stock market gains, particularly in Risk Trades, in Small Cap Growth Stocks, RZG, in Small Cap Value Stocks, RZV, in Social Risk Sectors, such as Social Media, SOCL, Biotechnology, IBB, Internet Retail, FDN, Nasdaq Internet, PNQI, and in Debt Trades such as GGP, EAT, S, GPK, PUK, MKTAY, EMN, VIAB, ING, RPM, BAH, IHG, POL, URI, HEES, DISH, LABL, LUX, CE, KR, NCR,ST, HPQ, GNRC, CSU, MIC, F, DLPH, M, TUP, and in Currency Carry Trades such as the EUR/JPY, seen in this Finviz Screener of EURJPY Currency Carry Trades, which includes such companies as LUX.

 

Thus the Banker regime gave great seigniorage to money, which is defined as the combination of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW; the world has attained peak fiat money, on the sovereignty of the Banker Regime and the global community democratic nation states.

 

Look for a steepening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, which will be reflected in the Steepner ETF, STPP, trading higher from 38.67; and look for interest rates to continually move higher, from 2.62%, on the ongoing failure of the world central banks’ monetary authority.

 

This being seen in fulfillment of Revelation 6:1-2, where Jesus Christ opened the first seal of the Scroll of End Time Events, on October 23, 3013, releasing the Rider on the White Horse, who has a bow without any arrows, that is the Bow of Economic Sovereignty, to effect global economic coup d’etat to transfer sovereignty from democratic nation state to sovereign regional leaders and sovereign regional bodies, such as the ECB, by enabling the bond vigilantes to start calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.

Revelation 6:1-2

Revelation 6:1-2

 

Under liberalism, creditism, corporatism and globalism were the dynamos of economic activity which had effect though crony capitalism, European Socialism, Greek Socialism and Communism. These are being replaced by the singular dynamo of regionalism, which features regional currencies, bartering and undollar economic trading, and has affect through regional economic fascism. USA Watchdog posts Whole Eastern World Rebelling Against The Dollar and Voice of Russia posts Russia Prepares To Attack The Petrodollar. Elaine Meinel Supkis posts Russia Signs Big Gas Deal With China, Yuan Will Be Major Global Reserve Currency.

 

A rising Benchmark Interest Rate from 2.62%, and a steepening 10 30 US Sovereign Debt yield curve, seen in the Steepner ETF, STPP, steepening, wll evidence the onset and relentless drive of economic deflation, coming from derisking out of debt trades, such as Leveraged Buyouts, PSP, and deleveraging out of currency carry trades, such as the EUR/JPY, as World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Fixed Income Investing, DTN, trade lower from their market highs.

 

High Yield Debt, JNK, VCLT, EU, EMB, HYXU, EMLC, HYMB, QLTB, seen in this Finviz Screener of High Yielding Debt, are topping out, and will be falling quickly and awesomely in value. Under liberalism it was wise to invest in such liabilities; now under the new normal of authoritarianism it is financial death to invest in such things.

 

Libertarian Robert Wenzel posts the timely video article,The Road To Serfdom At 70. David Gordon discusses Friedrich Hayek’s The Road to Serfdom at the 2014 Austrian Economics Research Conference in Auburn, Alabama, on March 20, 2014.

 

Bible prophecy seen in the Statue of Empires in Daniel 2:25-45, and Revelation 13:1-4, foretells that out of corporate, sovereign and banking insolvency in the Club Med nations, that is the PIGS, Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, the Beast Regime of regional economic governance will rise to rule in policies of diktak in each of the world’s ten regions, and in schemes of debt servitude in all of mankind’s seven institutions.

And Bible Scripture of Revelation 13:5-10, foretells that out of regional framework agreements, a cunning and adept Sovereign, Daniel 8:6-8, will rise to rule the Eurozone, and that he will be accompanied in his rise to power by the Seignior of Revelation 13:11-18, that is the top dog banker who in minting money takes a cut.

 

A new money, that being diktat money, is replacing fiat money; it is being implemented by the word, will and way of regional economic leaders operating out of Brussels, Frankfurt and Berlin. Like fiat money it takes its value from trust in the debtor to repay the lender. Inasmuch as Jesus Christ has pivoted the world from liberalism to authoritarianism on the failure of credit, diktat money is based upon trust that regional economic fascism will exact demands from debtors, that is debt serfs, in exchange for regional economic security, stability and stability.

 

6) … Life is a journey in sovereignty and seigniorage. For two years, ever since Herman Van Rompuy, poet and President of the EU, championed the first Greek Bailout in May 2010, I have been blogging to introduce those things, which according to Revelation 1:1, “must shortly come to pass”, meaning that once they start to occur, will fall in place, like line dynamos toppling one upon another.

 

Along this line of thought, European Economic Governance coalesced on May 21, 2010, at the EU Finance Leaders’ Euro Stability and Growth Pact task force meeting, which was convened by incoming EU President Herman Van Rompuy, who said in a question and answer session that the EU Framework Agreement that was announced earlier this month, does not include any provisions for debt restructuring.

 

And he related there is a joint awareness of the urgency of fiscal consolidation that requires budgetary sacrifices be made by member states. He concluded by commending several states for expenditure reductions and relating that the round-table consensus is very clear that new financial and non financial sanctions will be forthcoming if needed; these came forth as austerity measures decried by Ambrose Evans Pritchard who writes Europe Has Subjected The Greek People To A Cruel Experiment.

 

For one’s enlightenment I provide the Video Q&A Session with Herman Van Rompuy on the 5-21-2010 Task Force Meeting On Economic Governance. On the orderly default procedure proposal: “Let’s be very concrete and precise, the ad-hoc mechanism that we have agreed to support Greece and to ensure the stability of the euro area as a whole does not include any provisions for debt restructuring. Crisis management is part of the mandate of the taskforce.

 

All things have a starting point and a father. Out of the European Debt Crisis, Herman Van Rompuy, fathered European Economic Governance; it will serve as basis for the Beast Regime of Revelation 13:1-4, to rise to power.

 

This weekend news reports reflect definite cracks in China’s credit, as Benson te posts More Signs of Cracks in China’s Massive Bubble: Bond Auction Failure, Rising NPLs, More Defaults. Aside from this week’s slump in external trade where bothChina’s export and imports fell in March y-o-y by 6% and 11% indicative of an intensifying economic slowdown, reports also say that property developers have substantially scaled back in raising money through the shadow banking system via trust sales. And CNBC posts Desperate For Credit, China Importers Default On Soy Cargoes.

 

Now with the failure of credit, fiat money and fiat wealth commencing, I will be involved in activities other than blogging; thanks for coming to read here on this site.

Stocks Turn Lower As The Failure Of Credit Commences On The Exhaustion Of The World Central Banks’ Monetary Authority … The Economic Dynamic Of Deflation Will Replace Inflation … Regional Economic Fascism Will Replace Democracy

April 6, 2014

Financial Market Report for Wednesday April 2, 2014

This post is presented in Google Documents format here.

On Wednesday April 2, 2014, Small Cap Pure Value, Transportation, Semiconductors, Global Producers, Dividend Bearing Stocks, as well as China Investments topped out, as the failure of credit commenced, turning High Yielding Debt, Notes and Bonds, as well as Global Utilities lower, as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.79%, on the failure of trust in the world central banks to stimulate economic growth. Major World Currencies traded lower and Agricultural Commodities fell lower.

Volatility, ^VIX, bottomed out, as is seen in most of the Volatility ETFS, TVIX, VIXY, VIXM, XVZ, trading slightly higher.

Small Cap Pure Value Leaders, RZV, Transportation, XTN, Semiconductors, SOXX, Global Producers, FXR, Dividend Bearing Stocks, DTN topped out; and China Investments rose to rally highs, as is seen in the combined ongoing Yahoo Finance Chart of DSUM, and CHIX, CQQQ, ECNS, CHII, TAO, YAO, HNP.

The failure of credit commenced, as evidenced by Aggregate Credit, AGG, trading lower, as the Interest Rate On The US Ten Year Note, ^TNX, traded higher to 2.80%, and as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened, seen in the Steepner ETF, STPP, steepening, forcing the US Ten Year Notes, TLT, lower.

US Treasuries, GOVT, High Yielding Debt, JNK, VCLT, EU, EMB, HYXU, EMLC, HYMB, QLTB, and Notes and Bonds, SHY, IEF, TLT, EDV, FLOT, QLTA, VCLT, PICB, BWX, MBB, as well as Global Utilities, DBU, turned lower on the rise of the Benchmark Interest Rate to 2.79%.

Bellwether Nation Investment, South Africa, EZA, and Interest Rate Sensitive New Zealand, ENZL, traded lower.

Meat Products Leader, TSN, traded lower as Livestock, COW, and Agricultural Commodities,  RJA, CORN, WEAT, JJG, SGG, traded lower.

Most of the Inverse Market Vane ETFs, STPP, XVZ, JGBS, GLD, EUO, YCS, OFF, HDGE, SAGG, TYBS, DNO, traded higher; these could be used as collateral for short selling in a brokerage account.

 

On Thursday, April 3, 2014, World Stocks, VT, and Nation Investment, EFA, were led lower by the credit sensitive US Small Caps, IWC, and by Greece, GREK, Russia, RSX, RSXJ, Sweden, EWD, on lower Major World Currencies, DBV, such as the Swedish Krona, FXS, the Swiss Franc, FXF, and the Euro, FXE, as well as by Emerging Markets, EEM, such as South Africa, EZA, India, INP, SCIN, Brazil, EWZ, EWZS, Thailand, THD,  Egypt, EGPT, Indonesia, IDX, IDXJ, Malaysia, EWM, on lower Emerging Market Currencies, CEW, such as the India Rupe, ICN, and the Brazilian Real, BZF.

Sectors trading lower included, Social Media, SOCL, Biotechnology, IBB, Solar Energy, TAN, Internet Retail, FDN, Nasdaq Internet, PNQI, China Technology, CQQQ, Software, IGV, and

Cloud Computing, SKYY, trade lower.

US Refiners, VLO, MPC, PSX, HFC, and Energy Production, XOP, rose as energy prices, that is Natural Gas, UNG, and Oil, USO, rose on short sell covering. Trefis Team asks What’s Fueling Anadarko’s U.S. Onshore Growth? Anadarko, APC, has identified around 4,000 potential drilling locations in the Niobrara and Codell formations of the Wattenberg field that are expected to provide substantial opportunity for continued activity. But Fracking Service Companies, CJES, BAS, RES, NOAH, EXH, traded lower.

Silver Mines, PAAS, SLW, HL, SSRI, having a PE of 30, are terrifically leverage investments, as is seen in their charts combined with Industrial Miners, PICK, having a PE of 12.

 

On Friday April 4, 2014, The chart of the S&P 500, SPY, shows a trade higher at  the opening bell and a thrust to it its all-time high a minute later; the index traded sideways for the next hour, and then began a steady selloff to its -1.2% mid-afternoon low.

The yield on the US Ten Year Note, ^TNX, plummeted to 2.72%, on the Non Farm Payroll Report, showing ongoing growth, in what the WSJ relates will keep the Federal Reserve Taper on track, taking Aggregate Credit, AGG, higher, but still below its March 2014 rally high.

Eddy Elfenbein posts March NFP +192K, Unemployment = 6.7%. March nonfarm payrolls came in at 192,000 which was below Wall Street’s consensus for 206,000. The number for January was revised higher by 15,000, and February was revised higher by 22,000. The unemployment rate stayed the same at 6.7%. If we split out the decimals, the unemployment rate fell from 6.716% to 6.712%. Over the last six years, the economy has lost 271,000 jobs. For the first time since August 2009, the jobs to population ratio crossed 58.9%. It had been stuck in a narrow range for more than four years.

Bloomberg posts Private U.S. Payrolls Top Pre-Recession Peak

Mike Shedlock posts Nonfarm Payrolls +192,000, Unemployment Rate Steady at 6.7%. Economy Poised to Accelerate? The official unemployment rate is 6.7%. However, if you start counting all the people who want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, etc., you get a closer picture of what the unemployment rate is. That number is in the last row labeled U-6, which is much higher at 12.7%. Both numbers would be way higher still, were it not for millions dropping out of the labor force over the past few years.

Labor Force Factors.Discouraged workers stop looking for jobs, People retire because they cannot find jobs, People go back to school hoping it will improve their chances of getting a job, People stay in school longer because they cannot find a job, Disability and disability fraud. Were it not for people dropping out of the labor force, the unemployment rate would be well over 9%.

Synopsis. This was a solid jobs report. Weather-related effects were taken back and then some. The only negatives were falling hourly wages and a rise in involuntary part-time employment. Finally, if people start looking for jobs, further declines in the unemployment rate will be difficult to come by, even if job reports are generally favorable.

Economy Poised to Accelerate? Is the economy out of the woods and poised to accelerate? I don’t think so. Global imbalances are still growing, Europe is generally a basket case and China is due for a rather hard landing. I did not believe the widely-held China decoupling theory in 2007, and I do not believe the widely-held US decoupling theory today.

NYT blogs It’s Still Bad for the Long-Term Unemployed

Fear has replaced greed. Volatility, ^VIX, rose, as World Stocks, VT, traded lower on fears that the world central banks monetary policies no longer stimulate global growth and corporate profitability. Sectors trading strongly lower included, Social Media, SOCL, Nasdaq Internet, PNQI, Biotechnology, IBB, Internet Retail, FDN, China Technology, CQQQ, Small Cap Pure Growth, RZG, Media, PBS, Semiconductors, SOXX, Networking, IGN, IPOs, FPX, Pharmaceuticals, PJP, Transportation, XTN, Small Cap Pure Value, RZV, Software, IGV, Solar Energy, TAN, Global Production, FXR, and Cloud Computing, SKYY.

Yield Bearing Equity Investments traded lower, despite the Benchmark Interest rate trading lower to 2.72%. The pursuit of yield in equities is over as is seen in ongoing Yahoo Finance Chart of the two best performing yield chasing ETFs, European Dividends, DFE, and Shipping, SEA, trading lower.

Likewise, the pursuit of yield in credit is over. Bloomberg reports Buying Bonds in Sellers’ World: Prepare to Fail. Want to buy a corporate bond? Good luck finding one. Traders trying to purchase investment-grade notes are failing about 46 percent of the time, close to the worst rate in more than four years as measured by activity on Market Axcess Holdings Inc.’s electronic platform. The Yahoo Finance chart of High Yield Bearing Credit Investments, JNK, VCLT, EU, EMB, HYXU, EMLC, HYMB, QLTB, traded up to rally highs.

Global Financials, IXG, traded lower despite Emerging Market Financials, EMFN, trading higher, on higher Emerging Market Currencies, CEW. Investment Bankers, KCE, Stockbrokers, IAI, and Regional Banks, KRE, all traded lower on fears that the world central banks monetary authority has crossed the rubicon of sound monetary policy making “money good” investments bad.

Nation Investment, EFA, traded lower despite the trade lower in the Benchmark Interest Rate to 2.72%.

Nations trading lower included Greece, GREK, and US Small Caps, IWC, trading lower.

Energy Production, XOP, traded lower despite Oil, USO, and Natural Gas, UNG, trading higher; these  rose on short sell covering.

Short Side of Long Posts The Fed’s Goal To Improve Employment By Printing Money Has Failed! This remains the worst/weakest recovery ever; the real economy has grown very little. Confounded Interest posts Low Paying Services Jobs Lead Recovery.

The Fed’s Goal has never been to improve employment. Though Federal Reserve QEs, ECB LTROs and OMT, PBOC Monetary Injections, and other similar world central bank monetary actions, credit was made widely available to investors and to developed nations and even students, through the speculative leveraged investment community, creating a spectacular moral hazard based prosperity enjoyed by only a relative few, in particular those with fiat wealth and those earning executive incomes, as they profited from investment in debt trades and currency trades in Ireland, EIRL, Greece, GREK, Germany, GERJ, The UK, EWUS, The Gulf, GULF, Egypt, EGPT, Denmark, EDEN, the US, IWM, Eurozone Small Cap Dividend, DFE, and New Zealand, ENZL, as is seen in the combined ongoing Yahoo Finance Chart.  

Federal Reserve Bank of Dallas President Richard Fisher spoke before the Asia Society in Hong Kong on April 4, 2014, in “Forward Guidance” stating The Fed’s large-scale asset purchases dramatically and more broadly impacted credit markets. The U.S. credit markets are awash in liquidity. As of March 14, our par holdings of fixed-rate MBS exceeded 30% of the outstanding stock of those securities… We now own just shy of 24% of the stock of Treasury coupon securities. Having concentrated our purchases of Treasuries further out on the yield curve, and done so in size, we have driven nominal interest rates across the credit spectrum to lows not seen in over a half century.

This has allowed U.S. businesses to restructure their balance sheets, manage their earnings per share through share buybacks financed with bargain-basement debt issuance, bolster stock prices through enhanced dividend payouts and position themselves for financing growth once they see the whites of the eyes of greater certainty about their economic future. By driving nominal interest rates to half-century lows, we have also reduced the hurdle rate by which future cash flows of publicly traded businesses are discounted. Thus, through financial engineering, we have helped bolster a roaring bull market for equities: The indexes for stocks have nearly tripled from the lows reached in March 2009.

Alongside these signs of rebound have been some developments that give rise to caution. I have spoken of these in recent speeches, echoing concerns I have raised in FOMC discussions: The price-to-earnings (PE) ratio of stocks is among the highest decile of reported values since 1881. Bob Shiller’s inflation-adjusted PE ratio reached 26 this week as the Standard & Poor’s 500 hit yet another record high. For context, the measure hit 30 before Black Tuesday in 1929 and reached an all-time high of 44 before the dot-com implosion at the end of 1999… Since bottoming out five years ago, the market capitalization of the U.S. stock market as a percentage of the country’s economic output has more than doubled to 145% — the highest reading since the record was set in March 2000. Margin debt has been setting historic highs for several months running and… now stands at $466 billion. Junk-bond yields have declined below 5.5%, nearing record lows…. In my Federal Reserve District… bankers are reporting that money center banks are lending on terms that are increasingly imprudent.

The former funds manager in me sees these as yellow lights. The central banker in me is reminded of the mandate to safeguard financial stability… At the current reduction in the run rate of accumulation, the exercise known as QE3 will terminate in October (when I project we will hold more than 40% of the MBS market and almost a fourth of outstanding Treasuries)…

Forward guidance can be a complicated monetary policy tool … This is the very best we can offer you … Those who think we can be more specific in stating our intentions and broadcasting our every next move with complete certainty are, in my opinion, clinging to the myth that economics is a hard science and monetary policy a precise scientific procedure rather than the applied best judgment of cool-headed, unemotional decision-makers.”

The ZIRP stimulus was focused upon the investor with the result of establishing the investor, and neither the consumer or the employee, as the centerpiece of economic action.

The Dispensation Economics Manifest presents the concept that Jesus Christ acting in Dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, was to perfect the final economic experience of liberalism, defined as freedom from the state, where the investor was set investor free by democratic nation state policies of investment choice and credit schemes of world central banks to pursue and secure investment gain according to his risk profile in debt trades and in currency carry trades.

That perfection was attained on April 4, 2014, and Jesus Christ is now pivoting the world into the experience of authoritarianism.

And Tim Duty writes The Baseline Case Remains Zero Rates Until The Middle To End Of 2015, followed by a gentle pace of rate hikes. And David Wessel of the IMF’s World Economic Outlook posts an even more radical report The Downward Drift in Real Interest Rates.

The Stockcharts.com chart of the Interest Rate on the US Ten Year Note, $TNX, shows just the opposite of those of the IMF Economist. Zero rates no more; the future is one of an ongoing relentless moderate pace of market place Interest Rate hikes by the bond vigilantes. Whether the Fed raises Interest Rates in the next two years is irrelevant, as the bond vigilantes are in control of interest rates. The chart of the Benchmark Interest Rate, from October 23 to April 4, 2014, is the chart of the century as it rises and falls, and is about to enter an Elliott Wave 3 of 3 Up, meaning the upward onslaught of Interest Rates is about to commence destroying credit as well as wealth, thus pivoting the world from democracy into authoritarianism, and from investment choice to debt servitude.

The see saw destruction of fiat wealth has commenced. The bond vigilantes in calling the Interest Rate on the US Ten Year Note higher from 2.48% on October 23, 2013, to its current 2.72%, on the failure of trust in the world central banks to stimulate global growth, is in the process of turning all fiat investments lower.  Aggregate Credit, AGG, is trading lower from its early March high communicating the failure of credit. And on April 4, 2014, investors derisked out of debt trades such as the US Small Caps, IWC, and Greece, GREK, and the Regional Banks, KRE, such as HBAN, SIVB, OZRK, EGBN, BBNK, SBNY, FITB, CASH, and National Bank of Greece, NBG, as well as the most global of  investments such as Industrial Producers, FXR, and Transportation, XTN, turning World Stocks, VT, Nation Investment, EFA, Dividends Excluding Financials, DTN, and Energy Production, XOP, lower.

Look for a steepening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, which will be reflected in the Steepner ETF, STPP, trading higher; and look for interest rates to continually move higher, from 2.72%, on the ongoing failure of the world central banks’ monetary authority.

This being seen in fulfillment of Revelation 6:1-2, where Jesus Christ opened the first seal of the Scroll of End Time Events, on October 23, 3013, releasing the Rider on the White Horse, who has a bow without any arrows, that is the Bow of Economic Sovereignty, to effect global economic coup d’etat to transfer sovereignty from democratic nation state to sovereign regional leaders and sovereign regional bodies, such as the ECB, by enabling the bond vigilantes to start calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.

Rising interest rates and a steepening yield curve will evidence the onset and relentless drive of economic deflation, coming from derisking out of debt trades and deleveraging out of currency carry trades, as World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Dividends Excluding Financials, DTN, will be trading lower from their market highs.

Libertarian Robert Wenzel posts the timely video article, The Road To Serfdom At 70. David Gordon discusses Friedrich Hayek’sThe Road to Serfdom at the 2014 Austrian Economics Research Conference in Auburn, Alabama, on March 20, 2014.

Liberalism was the age of freedom from the state, which began with the Reformation in Switzerland and ended with Money Manager Capitalism on Wall Street.

Jesus Christ finished perfected liberalism’s moral hazard based prosperity with the trade lower in World Stocks, VT, Nation Investment, EFA, Dividends Excluding Financials, DTN, and Energy Production, XOP, on April 4, 2014, where the investor, ruled by democracy, has been the centerpiece of economic activity.

Harold Meyerson writes in the WaPo How Capitalism Enriches The Few Rather Than The Many. Indeed, Piketty’s book provides a valuable explanatory context for America’s economic woes. Wages constitute the lowest share of U.S. GDP, and profits the highest, since the end of World War II. And with heightened accumulations of wealth come heightened accumulations of political power, a shift toward plutocracy to which Wednesday’s Supreme Court decision, permitting the wealthy to contribute to as many electoral campaigns as they wish, adds a helpful push.

Through Global ZIRP, the rent on capital, that is the cost of money fell, enabling the wily to garner awesome wealth inequality. This was the work of Jesus Christ perfecting the age of credit, bringing it to completion, much the same way that a ships steward completes the manifest before the captain sets sail.

Now, as is seen in Revelation 13:1-2, Christ has unleashed, the First Horseman of the Apocalypse, who has the Bow Without Any Arrows, that is the Bow of Economic Sovereignty, to effect global coup d etat terminating the sovereignty of choice of democratic nation states and the liberal schemes of the world central banks, where the speculative leveraged community established the seigniorage of fiat money.

Peter Schwarz of WSWS posts France’s new government: A political turning point for Europe. And Mike Mish Shedlock posts Brussels Says No to France Proposal for Deficit Target Leniency. Whether it be in the EU or in the US, it is as Laurence Kotlikoff writes in Macarthur Org Fiscal Sustainability Is The Defining Issue Of Our Time. The US fiscal gap now stands at an estimated $205 trillion, or 10.3 percent of all future US GDP. Closing this gap is imperative, and requires a fiscal adjustment of an immediate and permanent 37 percent reduction in spending (apart from servicing official debt), an immediate and permanent 57 percent increase in all federal taxes, or some combination of the two. The necessary size of this adjustment increases the longer it is put off.

Now, Jesus Christ is developing authoritarianism, where the debt serf, working through austerity establishes his debt servitude, ruled by regional fascism to establish regional security, stability and sustainability.

I relate that John the Revelator wrote of the dream given to him by angels, that being the Revelation of Jesus Christ, which forms the basis of bible prophecy of Revelation 13:1-4; which foretells that out of Club Med, that is Portugal, Italy, Greece and Spain, sovereign, banking and corporate insolvency, the Beast Regime of regional economic governance will rule in diktat policies in the world’s ten regions and occupy in schemes of totalitarian collectivism in all of mankind’s seven institutions.

Furthermore, through regional framework agreements, the Sovereign will rise to power in the Eurozone, as seen in Revelation 13:5-10. Being most keen and most adept, as is seen in Daniel 8:6-8. he will use his two horns to defeat all adversity; and will be accompanied by the Seignior, that is the monetary high priest who calls all to worship the former, Revelation 13:11-18.

The details of seigniorage will come regional leaders, as they work in regional framework agreements, to establish regional security, stability, and sustainability.  Most certainly, there will be no anarcho-capitalist libertarian economic leaders, that is those who believe in free markets, the non-aggression principle and respect for private property rights, as economic fascism will be replacing crony capitalism, European socialism and Greek socialism. UK Conservative John Redwood bemoans current EU Governance One Law For Everyone, as he reflects on comments 18,965,000 People Know The Euro Is Not Working; soon, libertarianism will be a mirage on the authoritarian desert of the real.

It is most likely that Europe’s New Charlemagne will use German industrial and military power to secure the Ukraine as part of a move to provide natural gas resources for the EU.

It’s as Elaine Meinel Supkis writes Ukraine’s Fake President, Yatseniuk, Is An ‘Economic Kamikaze’ Bombing The Workers. Reuters reports on Kamikaze Economics Ukraine PM says will stick to austerity despite Moscow pressure. He calls himself a ‘kamikaze’ government which is true, he came flying in violently and destroyed an elected government!  The lovely Western Ukraine uprising is now blowing up in their faces.  The leaders of this uprising tried their hardest to start a major war and thus tap into a trillion US dollars but that is now flagging badly due to the reality that Russia’s gas is vital for Europe’s survival. He believes that austerity and cruel crushing rules will fix everything there.  ’A tremendous step forwards,’ like here in the US where our same rulers ended up destroying jobs, crushing workers who have had zero pay hikes versus inflation in 30 years since Reagan and no right to strike. This economic kamikaze expects to shrink the GDP of Ukraine by ‘only 10%’.

Robert Bensh of Oilprice.com writes The Most Profitable Gas in the World. There is only one certainty in Ukraine: The energy sector must and will be transformed, and how long this takes will depend on who ends up in the driver’s seat and how serious they are about becoming a part of Europe and reducing dependence on Russia. But by then, investors will have missed the boat.

The driving factor for any energy investor in Ukraine is the pricing environment. There is nowhere else in Europe, or some would even argue in the world, where you are going to get significant access to resources and potential resources for the price. Gas is selling at $13.66/Mcf, while it costs $4-$5 to produce and operate. That means producers are netting anywhere between $8 and $9/Mcf.

Whether it likes it or not, kicking and screaming, Ukraine will have to transform its energy sector, if it hopes to see promised IMF money. Kiev will have to start selling off assets and making the industry much more transparent.

All the debts of liberalism will be applied to every man, woman and child on planet earth, until all of liberalism’s fiat wealth and fiat money is utterly pulverized into dust as is foretold in bible prophecy of Daniel 7:7.

The era of buy and hold investing, such as that posited by Eddy Elfenbein, is over through finished and done, as the age of world central bank fiat asset inflation is history.

 

Summary

The last bear market began on October 10, 2007 when the DJIA and SPX closed at bull market highs. We have Dow Theory confirmation of the entry of what will be the mother of bear market of all bear markets with both IYT, and IYJ, trading lower simultaneously, as is seen in their ongoing combined Yahoo Finance chart, stemming from the failure of credit as investors lose confidence in the ability of the world central banks to simulate global growth and corporate profitability.

One place the these Inverse Market Vane ETFs, STPP, XVZ, JGBS, GLD, EUO, YCS, OFF, HDGE, SAGG, TYBS, and DNO, in a brokerage account, and use them as collateral for short selling

Yet, an investment demand for gold commenced on the failure of credit. Spot Gold, $GOLD, traded higher to $1,302 taking the Gold ETF, GLD, higher. In the age of economic deflation, although short seller may obtain gains, wealth can be best preserved by investing in and taking possession of gold bullion.

 

In the news

Reuters reports Hillshire To Close 70 Year Old Alabama Plant, Cut 1,100 Jobs  Hillshire, HSH, will close its Florence, Alabama, plant, the site of its breakfast sandwich and breakfast sausage cooking operations, and cut roughly 1,100 jobs by December 30.

Peter Schwarz of WSWS posts France’s New Government: A political turning point for Europe. The appointment of Manuel Valls as France’s prime minister on a pro-austerity, law-and-order platform exemplifies the rightward shift in European politics.

Kumaran Ira of WSWS posts French Government Vows Deep Attacks On The Working Class. Socialist Party officials called for shock therapy against the working class as ministers of the new cabinet of Prime Minister Manuel Valls were named.

Robert Stevens of WSWS posts Greek Parliament Approves New Attacks On Workers.  The latest agreement between the European Union-led troika and the Greek government includes measures to limit the right to strike.

WSJ reports Rubber Prices Plunge on Fears of Thai Selling Spree. Rubber prices are down as much as 6% this week as traders rush to sell on fears the market will become awash in supply

Business Insider reports Ebola Outbreak Could Become An ‘Unprecedented Epidemic’ and also posts The American Farmland Price Boom Is Over

Charles Q. Choi, posts in SPACE.com Moon’s Age And Formation Revealed. Scientists have pinned down the birth date of the moon to within 100 million years of the birth of the solar system, the best timeline yet for the evolution of our planet’s natural satellite. This new discovery about the origin ofthe moon may help solve a mystery about why the moon and the Earth appear virtually identical in makeup, investigators added. Scientists have suggested the moon was formed 4.5 billion years ago by a gigantic collision between a Mars-size object named Theia and Earth, a crash that would have largely melted the Earth. Theoi relates Greek Mythology presents Theia, the Titan goddess of sight (thea) and shining light of the clear blue sky (aithre).


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