The World Transitioned From The Age Of Prosperity Into The Age Of Debt Servitude On October 26, 2010

Competitive currency devaluation commenced October 26, 2010 

A Finvis Screener shows the currency traders sold a number of currencies,  except for the British Pound Sterling, FXB.  All of the following traded down: FXA, FXE, FXM, FXC, ICNFXS, SZR, FXF, CYB, BZF, XRU, FXY, BNZ, DBV, and CEW. 

The emerging market currencies, CEW, is -0.65%, the Euro, FXE, -0.66%, the Swedish Krona, FXS, often a fast downer, is -1.97%, and the enigmatic Yen, FXY, -0.65. The Euro, FXE, closed down from the prior day’s value of  139.19 to 138.04.

The US Dollar 200% ETF, UUP, is trading up today, suggesting that the US dollar, $USD, is up.

The USD/JPY is trading up 0.37% at 81.08; and its inverse ETF, JYN, is trading 1.02% lower.

A rise in the US Dollar, $USD, is not conducive to investing long stocks.

The Euro Yen Carry Trade, EUR/JPY, is trading down at 112.87; this can be seen in the chart of FXE:FXY, falling lower out of a consolidation triangle from 1.140 to 1.135. Carry trade investment is coming out of European Shares, VGK,  which is down 0.60%, the 200% European ETF, UPV, -1.61%,  Ireland, EIRL, -2.1%, European Financials, EUFN, -0.94%, Spain, EWP, -0.85%.

The currency traders are exercising their sovereignty, and acting as currency vigilantes, introducing competitive currency deflation, and taking profits on the currencies and carry trade investing that they have rung up.
Debt deflation is manifesting as bond deflation, in the longer out corporate bonds, BLV, falling  0.59%, while the shorter duration corporate bonds, LQD, falling only 0.27%. World corporate bonds, PICB, are down 1.15%. 

I envision the day when regional governments will form out of Leaders’ Framework Agreements such as the Security And Prosperity Partnership, the SPP, and a Financial Regulator will arise to oversee banking, lending, credit, investment, and housing.  Soon the word, will and way of The Financial Regulator will be the law of the land superseding sovereign nations, and their constitutions and laws.  One will no longer be a citizen of a nation state, rather one will be a residence living in a region of global governance.

The world’s sovereign debt, BWX, as well as all the mortgage-backed securities, MBB, that the currency traders cannot run down through currency deflation, must be and will be applied to every man, woman and child, on planet earth. 

I believe a Global Seignior, that is a top dog banker, will institute unified regulation of banking globally, as referred to in the James Politi and Gillian Tett Financial Times article NY Fed Chief In Push For Global Bank Framework, and that The Seignior will oversee all matters of debt and credit, and will implement a global currency system.


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