The Seigniorage Of Neoliberalism Fails Once Again as Shanghai, And Mining Shares Trade Lower

Financial Market Report for April 25, 2011

Inflation destruction and the exhaustion of the quantitative easing turned world stocks, ACWI, and the world small cap stocks, VSS, lower today.

Inflation destruction is seen in the Wall Street Journal report Truckers idle rigs in Shanghai and the Bloomberg report that China Stocks Drop to 3-Week Low as Rising Oil Prices Boost Inflation Risk. China’s stocks fell, driving the benchmark index to the lowest level in three weeks, as higher oil prices boosted concerns inflation will accelerate and spur more policy tightening measures.   

ETFs trading lower included
Shanghai Shares, CAF, -2.1
Silver Miners, SIL, -3.1
Gold Miners, GDX -2.2
Junior Gold Miners GDXJ, -3.1
Peru, EPU, -1.7
Coal, KOL, -1.5
Thailand, THD, -1.3

Middle East , MES, -1.0
China Small Cap, HAO -1.0
Timber Producers, WOOD, -1.0
Apple Ecosystem, FONE, -1.0
India Small Caps, SCIN, -1.0
China Small Caps, HAO, -1.0
India, INDY, -1.0
Latin America, LATM, -1.0

Stocks trading lower included
Real Estate: Property Management: CB Richard Ellis, CBG, -3.8
Textiles: Unifi. UFI, -1.8
Agriculture, Monsanto, MON, -2.3
The Morgan Stanley Cyclicals Index: Paper: International Paper, IP, -1.5
Semiconductors: DRAM Chips: Micron Technology, MU, -1.7
Taiwan Semiconductors, TSM, -2.2
Zip Car, ZIP, -3.4

Base Metals, DBB, and Timber, CUT, traded lower included

The failure of seigniorage is seen in the World Stocks relative to World Government Bonds, turning lower, VT:BWX

And the failure of seigniorage is seen in the the HUI Precious Metal Mining Stocks Relative To US Treasuries turning flower GDX:EDV.

In today’s news on the war of terror

Bloomberg reports Taliban Helps 500 Prisoners Break Out of Afghanistan Jail. Taliban guerrillas tunneled into the main jail in Kandahar, the southern Afghan city at the center of their fight with U.S. forces, releasing about 500 prisoners including insurgent commanders.

Keywords,
Neoliberalism, Failure of seigniorage, Seigniorage, Exhaustion of Quantitative Easing, Quantitative Easing Exhaustion, Inflation Destruction,

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