World Financial Downturn Means Moving To The 666 Global Currency System

Today is a day that will live in financial infamy as I wrote in my article Bond Vigilantes Call Interest Rates Higher And Currency Traders Call Currencies Lower On Concerns That QE 2 Is Monetization Of US Debt:  A global bear stock and bond market commenced October 27, 2010, out of concern that the Federal Reserve’s QE II amounts to simply printing of dollars to sustain the value of short term US Government debt, as well as to support mortgage-backed securities.  

Interest rates on the US Government Debt, that is the 2 Year US Note, $UST2Y, the 10 Year US Note, $TNX, and the 30 Year US Treasury Bond, $TYX, rose sharply, not on concerns that the upcoming US Federal Reserve’s QE II is too little; but that it monetizes the nation’s debt. So investors sold bonds across the board: Total Bonds, BND, US Government Debt, SHY, IEF, TLT, ZROZ and MBB, the Inflation Protected Bonds, TIP, STPZ, LTPZ, the Corporate Bonds, LQD, BLV, PICB, the Emerging Market Bonds, EMB, and World Government Bonds, BWX

The fact that Junk Bonds, JNK, have now fallen lower means that the Great Global Financial Bubble has burst.

The world currencies traded lower continuing yesterday’s world-wide currency sell-off, as the currency traders are exercising their sovereignty over the world’s currencies and implementing competitive currency deflation, by selling the yen based carry trades, causing an unwinding of investment globally.

The US Dollar, $USD, rose to 78.10, as the Yahoo Currency Center shows the currencies in this Finviz Screener traded sharply lower:  SZR, XRU, FXA, BZF, FXS, BNZ, FXE, FXF, FXB,  FXC, CEW, FXY, FXM,  and ICN. The USD/JPY traded up to 81.50; causing its inverse ETF, JYN, to fall lower. 

Chart of the Australian Dollar, FXA, perhaps the world’s strongest currency, fell lower .

The fall of the small cap pure value shares, RZV, relative to the small cap pure growth shares, RZG, RZV:RZG, communicates that a bear market started today as the major currencies, DBV, turned strongly lower, as the Interest Rate on the 30 Year US Government bond, $TYX, rose above 4%, and as the emerging market currencies, CEW, have fallen lower since October 14, 2010, when the Interest Rate on the 30 Year US Government Bond, $TYX, first rose strongly higher. 

Falling emerging market currencies, CEW, has caused all the emerging market ETFs to fall.  Emerging market dividend payers, DGS, the emerging markets, EEM, and EET, such as Turkey, TUR, and Thailand, THD, and the emerging markets financial titans, EFN have all fallen lower.

The EUR/JPY traded lower to 112.42; which can be seen in the chart of FXE:FXY trading lower at 1.133.  

The Euro, FXE, fell from 138.04, to 137.17, causing European

Financials, EUFN, and European Shares, VGK, Spain, EWP, to fall lower. 

Chart of the Euro, FXE.  

Small cap shares sold off significantly; these included: Brazil Small Caps, BRF, Russell 2000, IWM, Small Cap Pure Value, RZV, South Korea Small Caps, SKOR, Small Cap Consumer Discretionary, XLYS, Australia Small Caps, Australia Small Caps, KROO, China Small Caps, HAO,  Canada Small Caps, CNDA.

Chart of Australia Small Caps, KROO

Countries trading lower included Sweden, EWD, Japan, EWJ, Mexico, EWW, Emerging Europe, ESR, India, INP, Singapore, EWS, Hong Kong, EWH, Emerging Markets, EEM, Australia, EWA, Poland, EPOL, Austria, EWO, Brazil, EWZ, and the Asian High Yielding Equity, DNH.

World Stocks, ACWI, and VT, the S&P, SPY, the New York Composite, NYC, energy producer Exxon Mobil, XOM, and basic material supplier BHP Billiton, BHP, and the Russell IWM, all fell lower.

Copper Miners, COPX, Metal Manufacturing, XME, Steel, SLX, traded lower on falling base metals, DBB, prices, particularly, Lead, LD, Tin, JJT, and Timber, CUT, prices. 

Oil, $WTIC, USO, and UCO, prices fell on reports of great abundance of product available in the marketplace.

Growth sectors falling lower included, Nuclear Energy, NLR, Solar Energy, TAN, Housing, ITB, Nanotechnology, PXN, Retail, XRT, and RTH,

Cyclical sectors falling lower included Gaming, BJK

Staples, XLP, fell lower.

Higher interest rates means inflation; this caused US Healthcare Provider, IHF, Utilities, XLU, to trade sharply lower; this marks five consecutive days of trading lower in the Utilities.   

Inverse Volatility, XXV, fell lower. The S&P Mid Term Futures Volatility, VXZ, and Volatility, VXX, rose.

Gold, GLD, and the Junior Gold Miners, GDXJ, fell lower, as carry traders took profit on the precious metals.

The turning down today of the real estate sector, PSR,  and IYR, REZ, FIO, Apartment Investment and Management Co., AIV, and Brookfield Properties, BPO, confirms that competitive currency devaluation by the currency traders has started a debt deflationary bear market.

Yahoo Finance Industry Center reports Foreign Telecom, Health Care Plans, Foreign Regional Banks, and Railroads fell lower; the turn lower in these industry groups is additional evidence that a bear stock market is underway. 

Historical records show that monetization of sovereign debt stimulates an investment demand for gold, $GOLD; and that it inflates agricultural commodity, RJA, and food commodity, FUD, prices.

II … The world has gone beyond an important tipping point: the world’s population has passed from the age of prosperity to the age of austerity and debt servitude, with the currency traders acting as currency vigilantes selling the worlds major currencies, DBV, and emerging market currencies, CEW, causing yen based carry trade trades to unwind globally, that is, causing disinvestment from world stocks, ACWI, and the emerging markets, EEM, and the frontier markets, FRN. 

A debt deflationary bear market has commenced in both stocks, VT, and in bonds, BND, in response to the US Federal Reserve’s planned massive dollar printing QE 2.  Currency traders also acted as bond vigilantes, in calling the Interest Rate on the US 30 Year Government Bond, $TYX, above 4%, and the Interest Rate on the US 10 Year Note, $TNX, to 2.7% 

Simon Rabinovitch of Reuters reports: “China Minister Says Dollar Printing “Out of Control”.  Dollar issuance by the United States is “out of control”, leading to an inflation assault on China, the Chinese commerce minister said in comments reported on Tuesday. Chen Deming, speaking at a trade fair in southern China, said that exporters had done a good job of preparing themselves for exchange rate changes as well as rising labour costs, but were suddenly confronted with new challenges. “Because the United States’ issuance of dollars is out of control and international commodity prices are continuing to rise, China is being attacked by imported inflation. The uncertainties of this are causing firms big problems,” Chen was quoted as saying by the official Xinhua news agency.”

Debt deflation is the contraction and crisis that follows credit expansion.  One of the most famous quotations of Austrian economist Ludwig von Mises is from page 572 of Human Action: “There is no means of avoiding the final collapse of a boom brought about by credit expansion.  The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency involved.”

Global Debt Deflation commenced on April 26, 2010, when the value shares failed to outperform the growth shares.

It was on April 26, 2010, the currency traders went long the yen and short the global currencies FXA, FXE, FXM, FXC, ICN, FXB, FXS, SZR, FXF, BZF, XRU, FXY causing the US Dollar to rise; as can be seen in this chart from April 26, 2010 to June 7, 2010.

On June 7, 2010, the US Dollar, $USD, turned down as the Euro, FXE, rallied on news of the call for the EFSF Monetary Authority to be established. This seigniorage authority may be called upon soon for seigniorage aid to Portugal.

Global debt deflation commenced again today, as the currency traders sold the major world currencies, DBV, and the emerging market currencies,  CEW, and called interest rates higher globally in anticipation that the US Federal Reserve’s QE 2, one week out, will be monetization of debt.   

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.”

III … Bible prophecy reveals that the Beast System of Revelation 13:1-4, will arise to rule mankind.

In addition to foretelling of a beast system, the bible heralds the Sovereign, rising to rule mankind, Revelation 13:5-10

The world leader will be complemented by the Seignior, Revelation 13:11-18, meaning top dog banker who takes a cut.

He is a also a Spiritual Leader with a unifying Global Vision. Eventually he will direct the 666 credit system,  Revelation 13:17-18, where one will be given the charagma, or mark, necessary to conduct commercial activity. Those interested can read more in article Beast System, Sovereign, and Seignior to rule mankind.

Keywords: globalcurrencysystem, unifiedregulationofbankingglobally, unifiedregulation.

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