June Marks The Two Month Milestone Of The Failure Of The Seigniorage Of Neoliberalism

Financial market report for June 30, 2010

The Greek parliament voted 155 to 138 for the austerity package, and approved the implementation bill today.

Nicolas Sarkozy appointed budget minister Francois Baroin as France’s new finance minister.

Bloomberg reports German Banks Near Greek Plan. German financial companies pushed toward an agreement to roll over their Greek debt holdings as Deutsche Bank AG, DB, Chief Executive Officer Josef Ackermann predicted banks would contribute to help avert a “meltdown.” Representatives of German banks and insurers hammered out a draft proposal to present at a meeting today with Finance Minister Wolfgang Schaeuble and top industry executives, including Ackermann. The German firms, which are using a French proposal as a blueprint for discussions, are likely.

Zero Hedge reports It’s Official: China Is The “Mystery” Daily Buyer of Billions of Euros.

The failure of seigniorage of Neoliberalism, and the exhaustion of quantitative easing is seen in competitive currency deflation, the downturn in commodities, DJP, and bond prices, BND, especially world government bonds, BWX, and US Treasuries, EDV and TLT, as well as the following sectors and countries falling lower. Since April 27, 2010, competitive currency deflation has brought debt deflation, that is currency deflation as follows:

FXS -6.4%
FXB -3.8%
SZR -3.4%
FXA -2.5%
FXE -2.0%
FXC -1.9%
FXM -1.8%
XRU -1.7%
CEW -1.3%



Business Insider reports A Huge Number of Americans Believe The Economy Has Now Entered “Permanent Decline”. 39% of Americans believe the US economy has now entered “permanent decline” according to a new poll from CBS and NYT.

Tyler Durden reports QE 2 POMOs are no longer available. Going forward the Fed will only roll maturing debt and he asks asks “the biggest question of who will buy bonds now that Primary Dealers will be unable to roll debt to the Fed remains.”

Bloomberg reports Rice Supplies Tightening in China May Increase Imports, Bolster Inflation.

Financial Timers reports IMF warns US of global debt shock.

The failure of the seigniorage of Neoliberalism  is seen in the chart of VT relative to BWX.

Chart of World Stocks, ACWI, shows that stocks globally have entered an Elliott Wave 3 Down.

The Seigniorage Of Neoliberalism was based upon the Milton Friedman floating currency regime and credit liquidity provided by the US Federal Reserve as well as 1% interest carry trade investing financed by the Bank of Japan.  The Seigniorage Of Regional Economic Governance will be based upon Framework Agreements and Leaders Diktat. In Europe, a Chancellor, and a Banker, will arise to provide a new seigniorage based upon their word, will and way. The power of the Sovereign and the Seignior will rival that of Charlemagne as they rule in authority that rivals that of the former Roman Empire.


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