Financial market report for September 27, 2011
1) … Commodities, DBC, oil, USO, metals, DBB, and stocks popped on Europe hope.
The yenguy news service reports stocks soared on a wave of hope that euro zone officials were working to add measures to cut Greece’s debt and shore up the region’s banks. While S&P warns that a leveraged EFSF would endanger Germany’s credit rating, and that the rating agency says the limit of what can countries can guarantee without damaging their positions, has been reached.
Stocks rising included the following: ACWI 1.9%, VSS 2.8, with European Shares, VGK 2.7, EWI 3.2, EWG 3.7, EWO 3.8, EWQ 4.0, GERJ 4.4.
Emerging Markets, EEM 3.1
Financials rising included EUFN 3.8, CHIX 7.2, KRE 1.5, BRAF 5.2, EMFN 5.7, EPI 3.2, PSP 2.7
China YAO 2.7, and HAO 3.1
CHIM 8.4, COPX 5.6, BARN 4.7 and CRBA 6.8, CRBI 5.5, ALUM 7.8, PSCE 3.1, URA 4.6, KOL 2.8,
SIL 2.5, PSCT 4.3, XME 2.7, SLX 2.8, FLM 3.2, PSCI 3.2
RZV rose 2.2 on soaring world currencies,DBV, and emerging market currencies, CEW, both of which took country stocks higher on a risk trade. The Yen, FXE, fell, and the whole spectrum of currencies, FXA, FXE, FXM, FXC, ICN, FXB, FXS, SZR, FXF, BZF, FXY, BNZ, DBV, CEW, CCX, rose as the US Dollar closed lower at 77.51. Countries rising strongly included SKOR, IDX, EWD, EWW, ECH, EWY, KROO, EWA, THD, EWT, CNDA, INP, THD, RSX, TUR and ARGT.
2) … The age of bond vigilantes is at hand as US Treasuries tumbled on exhaustion of Operation Twist, as well as exhaustion of Quantitative Easing.
It’s been theyenguy’s long standing contention that out of Gotterdammerung, a clash of the Gods, specifically European leaders and the rating agencies, a global economic collapse will emerge. Only time will tell if this assertion is correct.
The bond vigilantes started their call of interest rates higher, causing SBND to rise 6.5% rose and TMV to rise 4.6%.
Treasuries fell as follows: LBND -3.6%, TMF -4.8, ZROZ -2.4, EDV -2.4, TLT -1.5
Bonds, BND, fell 0.2% with BLV -0.8, and LQD -0.3%
3) … In today’s news
Peter Spiegel in FT article Europe thinks the unthinkable to solve crisis reports Once-unthinkable proposals for fiscal union and shared responsibility for sovereign debt are now being hurriedly readied for ministerial discussion. Senior European officials hope that by the time of a summit of European Union leaders in October, they will have: put in place powers for the eurozone’s €440bn rescue fund; agreed on the need to expand the fund’s firepower; and presented plans for further economic integration. But policymakers still have to work out countless disagreements that could doom the process. Eurozone leaders will also start debating wider-ranging reforms to establish more centralised EU authority over national economies. Herman Van Rompuy, the European Council president, will outline proposals at the October summit, including ideas for an EU finance minister and new bonds collectively backed by all 17 eurozone countries.
Associated Press reports Israel approves 1,100 new homes in east Jerusalem. Israel’s government on Tuesday granted the go-ahead for construction of 1,100 new housing units in occupied east Jerusalem, raising already heightened tensions fueled by last week’s Palestinian move to seek U.N. membership.
The WSJ reports Welcome to the Boardroom: Chelsea Clinton Joins Diller. She’s 31. She’s still a graduate student. And she’s held many different jobs in different industries over the last five years. But those factors didn’t prevent Chelsea Clinton from landing a plum assignment: joining the board of Barry Diller’s Internet media holding company. In her new role, the daughter of former President Bill Clinton and U.S. Secretary of State Hillary Clinton will be the youngest member of IAC’s board by seven years.
Joseph Koshore of WSWS relates Democrats agree to no additional disaster aid in US budget dispute The Democratic Party-controlled Senate passed a measure that includes no additional emergency aid to victims of natural disaster, a complete capitulation to Republican demands that additional spending be tied to cuts in other government programs. And Walter Gilberti of WSWS relates Governor-appointed official moves to dismantle Detroit public schools September 26 was the first day of work for John Covington, the former Kansas City schools superintendent who was selected by Michigan Governor Rick Snyder to head a proposed new school district in Detroit that will encompass so-called failed schools.
The AP reports Wife of Mexican drug lord gives birth in California. And Holly Bailey of The The Ticket relates Obama’s Wall Street donors shift support to Mitt Romney
4) … The Club of Rome’s Clarion Call can not be resisted … A EU fiscal union and a European economic government is Europe’s Fate.
Ambrose Evans Pritchard reports German turmoil over EU bail-outs as top judge calls for referendum. “Germany’s top judge has issued a blunt warning that no further fiscal powers may be surrendered to Europe without a new constitution and a popular referendum, vastly complicating plans to boost the EU’s rescue machinery to €2 trillion (£1.7 trillion).”
“Andreas Vosskuhle, head of the constitutional court, said politicians do not have the legal authority to sign away the birthright of the German people without their explicit consent.” … “The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution),” he said.
“There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit which might be politically legitimate and desirable – then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people,” he told newspaper Frankfurter Allgemeine.
“The extraordinary interview comes just days before the Bundestag votes on a bill to revamp the EU’s €440bn bail-out fund (EFSF), enabling it to purchase EMU bonds pre-emptively and recapitalise banks.”
“Carsten Schneider, finance spokesman for the Social Democrats, demanded that Chancellor Angela Merkel and finance minister Wolfgang Schäuble clarify their “true intentions ” before the vote on Thursday.” … “A new multi-trillion programme is being cooked up in Washington and Brussels, while the wool is being pulled over the eyes of Bundestag and German public. This is unacceptable,” he said.
“Prince Hermann Otto zu Solms-Hohensolms-Lich, the Bundestag’s deputy president and finance chief for the Free Democrats (FDP) in the ruling coalition, expressed outrage over the secret plans.”
“Unless the German finance minister can give an immediate assurance that there will be no leveraged formula, I will not vote for this law. We might as well dispense with months of negotiations if all this means is that the Bundestag will be circumvented and served cold left-overs,” he said.
“The accusation that German leaders are conspiring with EU officials to emasculate the Bundestag is highly sensitive, going to the core of the raging debate in recent months over EU encroachments on German democracy.”
The top judge’s call will not stand, eventually, a global economic collapse will occur as a result of the European Sovereign Debt Crisis, that is Eurocalypse, a Reggie Middleton term, possibly combined with a failed US Treasury auction and soaring US Treasury interest rates. European Leaders will soon announce regional framework agreements, waive national sovereignty, and through a EU wide coup d etat, form a Super European Government, as well as call for a President of the EU, who together with a European Banker, provide a new moneyness, that is a new seigniorage, based upon diktat, austerity and debt servitude. Their word, will, and way, will be the EU’s Common Vision, and the people will marvel, and follow after it, giving it their full allegiance as foretold in Bible prophecy of Revelation 13:3.
No secret plan exists. there is no conspiracy, Just the Sovereign Lord God described in Isaiah 4:9-14, exercising His Sovereign Will, Ephesian 1:1, to destroy all economic life, such as Greek Socialism, as well as sovereign nation states, such as Greece, so as to announce the rule of God’s Son Jesus, as is presented in Revelation 2:27.
There is only fateful working of the 1974 Call of the Club of Rome for regional economic government in all of the world’s ten regions, in response to the death of the Milton Friedman, free to choose, regime, which will come out of ongoing deleveraging, derisking, and disinvesting.
Neoliberalism was fathered by Milton Friedman, as he suggested floating currencies, and featured wildcat governance, a Doug Noland term. Neoauthoritarianism was fathered by the August 2011 Angela Merkel and Nicolas Sarkozy Joint Communique for a true European Economic Government, and features wildcat governance, where leaders bite, rip, and tear one another.
Bible prophecy of Daniel 2:32-42 communicates that God has operated to provide great leaders throughout history. These have included Nebuchadnezzar ruling Babylon; Cyrus and Cyrus and Darius ruling Merdo Persia; Charlemagne ruling Rome; Tony Blair ruling Great Britain, and George Bush, The Decider, ruling America with Unilateral Authority.
And Bible prophecy of Revelation 17:12-14, reveals that ten kings will come to rule, each in his own regional power base. Daniel 8:22-23 foretells that the coming President of the EU will be one knowledgeable with the scheme of framework agreements; he must have the quality of fierceness as he will have a whole spectrum of angry to deal with. A leading individual for this position is Herman Van Rompuy, as he orchestrated the original Greek bailout, and as who the Daily Mail reports as saying, the age of the nation state is over and the idea that countries can stand alone is an ‘illusion’ and a ‘lie’
Under Neoauthoritarianism, there are no sovereign individuals, as there are only sovereign leaders. God has ordained in Revelation 13:1-4, that Neoauthoritarianism manifest as a Beast Regime of state corporatism, that is statism, to govern mankind, putting an end to any free enterprise. Economic life will exist for the security and prosperity of the regional government.
Choice is the epitaph on the tombstone on the former regime of Neoliberalism. Freedom is a mirage on the Neoauthoritarian Desert of the Real.
Today’s rally base upon hope for the involvement of leaders to provide a solution to the sovereign crisis, is Neoliberalism last gasp and last stand as the traders rallied on the Spirit of the Cat In The Hat. The bond vigilantes and the short sellers, stand at the door enlivened with Neoauthoritarianism’s Spirit of Wilding as The Automatic Earth in Leveraged stability? Excuse me? which relates Marc Jones for Reuters, who writes ECB fights to avoid role in euro zone rescue fund. And relates Jeff Randall of the Telegraph writes There are no miracles in Greek tragedies, Lending ever greater sums to a mismanaged and corrupt economy won’t make it solvent. The bail-out of Greece began with a 100-billion-euro package. Very soon a second deal of the same order was required. Now we learn that the 440-billion-euro European Financial Stability Facility may need to be five times bigger to beat back the Debt Beast, which, having gobbled up Greece, is turning its attention to Italy, where Silvio Berlusconi is in a 1.9-trillion-euro hole. Finally, if you’re outraged by Greece and Greek Socialism, now, wait till you read Michael Lewis’ new book.