The Seigniorage Of Neoliberalism Fails As Inflation Destruction Turns Oil And Stocks Lower

Financial Market Report For April 11, 2011

1) … Inflation destruction turns oil and stocks lower.
Bloomberg reports  Oil Drops From 30-Month High as IMF Cuts Growth Forecasts. Oil fell from a 30-month high after the International Monetary Fund cut its growth forecasts for the U.S. and Japan, indicating high oil prices pose a risk to global economic expansion. Crude tumbled as much as 2.9 percent as the IMF predicted in its World Economic Outlook that the U.S. economy will expand at a slower pace than in 2010 amid an unemployment rate above 8 percent and a drop in consumer confidence. Oil for May delivery fell $2.59, or 2.3 percent, to $110.20 a barrel at 1:31 p.m. on the New York Mercantile Exchange. Futures settled at $112.79 a barrel on April 8, the highest closing price since Sept. 22, 2008. Prices have risen 30 percent in the past year.

And Bloomberg also reports Drivers Starting to Cut Back as Gasoline Prices Keep Rising. With the price of gas above $3.50 a gallon in all but one state, there are signs that Americans are cutting back on driving, reversing a steady increase in demand for fuel as the economy improves. Gas sales have fallen for five straight weeks, the first time that has happened since November, according to MasterCard SpendingPulse, which tracks spending at 140,000 service stations nationwide.

Associated Press reports Stocks head lower after the International Monetary Fund lowers its estimate for US growth

2) … The seigniorage of neoliberalism fails, as the precious metal mining stocks, GDX, and the small cap pure value stocks, RZV, lead the world stocks lower, ACWI, 0.45% lower.  

Gold mining stocks relative to the 30 year US Treasuries always falls lower at market turns.

$HUI:$USB

Distressed securities traded by Fidelity Mutual Fund FAGIX turned lower indicating that the seigniorage of quantitative easing has failed.

FAGIX

World stocks relative to world government bonds turned lower suggesting that the seigniorage of the world central banks has failed.

VT:BWX

The ratio of US Stocks relative to the 10 Year US Government Note has turned lower suggesting that the seigniorage of the US Federal Reserve has failed.

VTI:TLT

3) … Stocks Falling Lower Today Included
Manufactured Housing Manufacturer: Cavco Industries, CVCO, -5.2
NUGT 5.5%
SIL 4,9
GDXJ 3.8
GDX 2.9
DRAM Chips: Micron Technology, MU, 3.0
EPU 2.9
PSCE (XLES) 2.5
IEZ 2.4
KOL 2.3
XME, 2.2
CNDA 2.0
XLE 2.0
AFK 1.8
Processing Systems And Equipment: Polycom, PLCM, 1.8%
RSX1.8
EZA 1.8
OIH, 1.8
INDY 1.6
SCIN 1.6
ECH 1.6
IYM 1.6
PXN 1.6
TWON 1.4
THD 1.4
EWZ 1.4
LATM 1.3
COPX 1.3
SEA 1.3
XLU 1.3
THD 1.3
KWT 1.3
FONE 1.2
XSD 1.2%
Processing Systems And Equipment: Polycom — PLCM
PSCT, XLKS 1.2%
SKOR 1.2
EEM 1.2
XLB 1.2
IHF 1.0
YAO 1.0
WOOD 1.0
HAP 1.0
EWD 1,0
RZV 1.0

4) … The US Dollar, $USD, rises as world currencies fall lower.
BZF -0.87
FXS -0.85
ICN -0.51
CEW -0.47
CCX -0.44
DBV -0.44
BNZ -0.42
FXA, -0.39
FXM -.0.17

5) … Commodities Turning Lower Today Included
DBB -0.9
CUT -0.9
DJP -1.1
USO -3.4
BN0 -2.7
JJU -1.1
JJC -1.2
JJP -1.0

6) … Junk Bonds Fell Lower Today
JNK -0.15 Financial Times reports Junk-bond funds had record inflows last week as retail investors’ appetite for high-yield corporate debt reasserted itself after a lull in March, citing EPFR, which tracks fund flows. Globally, $1.47 billion was invested in high-yield funds last week, the highest weekly figure ever; in the U.S., inflows amounted to $933 million.

7) … Morgan Stanley Cyclical Index,  $CYC, -0.7

Failure of Quantitative Easing, Seigniorage, Exhaustion of Quantitative Easing, Inflation Destruction, Neoliberalism, Morgan Stanley Cyclical Index.

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