Financial market report for Monday November 28, 2011
1) … World Stocks led by the European Stocks rose today as Wolfgang Schaeuble called for the EU member states to create their own Stability Union.
World Stocks, ACWI, VSS, Material Stocks, XLB, IYM, Russell 2000, IWM, Financials, XLF, IXG, FGEM, EMFN, KCE, CHIX, and European Stocks, VGK, FEU, EWG, EWI, EWP, EWQ, EUFN, EWO, EWN, EWD, blasted higher today.
National Bank of Greece, NBG, Bank of Ireland, IRE, and Deutsche Bank, DB, led world banks seen in this Finviz Screener, and US Banks, RWW, KRE, IAT, KBE, higher. The FT reports that European Banks face a funding gap of 241 Billion this year. This means that the banks are insolvent and will all have to be and soon will be nationalized.
Energy producers, XOP, WCAT, PSCE, soared.
Chinese Materials, CHIM, Copper Miners, COPX, Steel, SXL, Silver Miners, SIL, Gold Miners, GDX, Uranium Miners, URA, Aluminum Miners, ALUM, Rare Earth Miners, REMX, and Coal Miners, KOL, rose strongly.
Turkey, TUR, led emerging markets, EEM, higher.
US Stocks, VTI, rose the most in a month on Euro hopes and strong retail sales.
Solar, TAN, Small Cap Value, RZV, Small Cap Growth, RZG, Energy Service, OIH, IEZ, XES, Homebuilders, XHB, ITB, rose strongly.
Miners, MXI, seen in this Finviz Screener, rose strongly.
Automobile Stocks, seen in this Finviz Screener rose strongly.
Industrial Equipment Manufacturers, seen in this Finviz Screener rose strongly.
The Networking shares seen in this Finviz Screener rose strongly.
The Construction, Environmental and Industrial companies seen in this Finviz Screener, rose strongly.
The Synthetics seen in this Finviz Screener, rose strongly.
Leveraged Buyouts, PSP, and Junk Bonds, JNK, rose strongly.
Utilities, XLU, were the sectors’ under performer, rising only 1.3%.
Airlines, FAA, and Shippers, SEA, seen in this Finviz Screener, rose strongly. Joanne Chiu of Market Watch reports Maersk Line, the world’s largest container shipper by volume, will announce plans to cut its shipping capacity on Asia-Europe routes next week due to the impact of the euro-zone debt crisis on international trade, a senior executive from the company said Friday.. While lingering concerns about the European debt crisis are weighing on demand for trade on European routes, Smith said the prospects for transpacific routes are better amid signs of a gradual recovery in the U.S. economy. Freight rates have plunged to unprofitable levels this year as a result of overcapacity in the market. Maersk Line said earlier it expected its container shipping business to post a loss for 2011 mainly due to weak rates on Asia-Europe routes.
Country stocks rose with Russia, RSX, South Africa, EZA, Australia, EWZ, India, INDY, Switzerland, EWL, Mexico, EWW, Canada, EWC, Brazil, EWZ, China, YAO, the UK, EWU, South Korea, EWY, leading the way. Japan, EWJ, and Japan Small Caps, JSC, and New Zealand, ENZL, eked out a tiny gain. Global sovereign insolvency has not been abated, it is only held in abeyance. We are entering into the age of sovereign insolvency which is accompanied by a crisis of over production as well, and where manufacturing is separated from the consumer by a long supply chain serviced by shipping firms that are loosing money. Out of the European debt crisis will come a sovereign insolvency regime with an emperor of insolvency, the Sovereign, and a government banker, the Seignior. Their combined word, will and way, will provide moneyness, that is seigniorage, for all those living in the Euro zone. Debt servitude will be required by all.
Neoliberalism’s ponzi lending has reached its extreme — credit has reached its full expansion. Sovereign insolvency means the end of ponzi financing and the beginning of debt servitude. We are witnessing the last vestige of the minting of money as the Milton Friedman Free To Choose Regime is history. In this former regime, bankers, and government ministers waived magic wands of finance and created wealth. What we are seeing is only zombie financing. The Beast Regime of Neoauthoritarianism is rising out of the Mediterranean Sea profligates, Italy and Greece. In this regime, bankers and government ministers waive clubs and beat people into debt servitude. Irvine Renter relates FHA Loan Limits Go Back Up To $729,750 Congress has voted to increase the FHA loan limit to $729,750 through the end of 2013. The FHA has been perverted. It used to provide home ownership opportunities for low and middle income Americans. It was never intended for supporting overpriced markets dominated by high wage earners like here in Irvine. Markets with prices requiring loans over $417,000 are supposed to be supported by savings and equity from previous sales. Since most Americans have no savings, and since home equity has been largely wiped out in the crash, the markets for high wage earners are looking for the government to bail them out. This policy will undoubtedly cause more FHA losses because prices will continue to decline, and with the tiny down payments on FHA loans, borrowers will go underwater and many will strategically default. In short, this policy will shift losses from the private lenders and investors to the taxpayer — to you.
The rally in stocks caused world currencies, DBV, and emerging market currencies, CEW, seen in this Finviz Screener, to rise, while the yen, FXY, traded lower to the edge of a massive head and shoulders pattern at 126.34. The US Dollar, $USD, UUP, traded down slightly to close at 79.26. Action Forex provides the chart of the USD/JPY which I belive has bottomed out at 75.50 and is now headed higher.
Silver, SLV, Timber, CUT, Base Metals, DBB, led Commodities, DBC, een in this Finviz Screener, higher.
Michael Kitchen of MarketWatch reports German Finance Minister Wolfgang Schaeuble saying, “The goal is for the member states of the common currency to create their own Stability Union and to concentrate on that.” Germany and France are looking at how to deepen fiscal integration. Analysts at Brown Brothers Harriman said, “Germany is pressing hard for tougher budget rules. It requires real sanctions, tighter than the ones Germany and France wiggled out of a decade ago. This is nothing less than a new dimension to the governance of the euro zone.”
Sober Look writes The Stability Union Concept Is Not Dampening Financial Stress Indicators. the chart of the US 2-year swap spread which is maybe a basis point off the high; and the 3-month EUR/USD currency basis swap spread continues to widen, marching toward -150
Paul Krugman writes that the Eurozone leaders have no narrative of how their policy of expansionary fiscal contraction is consistent with a Eurozone recovery.
Expansionary fiscal contraction is the combination of structural reforms, such as austerity measures, pension overhauls, reworked national wage contracts and centralized fiscal supervision favored by German economic and expansionary fiscal contraction. political leaders, such as Wolfgang Schauble, Olli Rehn, and Guido Westerwelle, which eliminate labor privileges such as inflation inked wage rises, that eat away at intra Euro zone competitiveness. The economic theory of expansionary fiscal contraction is the concepts of Harvard’s Alberto Alesina, and Goldman Sachs’ Broadbent and Daly, writes George Irvin in the Social Europe Journal, stating, “it is very difficult to see how massive fiscal contraction can be expansionary in Britain today.” And Simon Johnson writes Under four conditions, fiscal contraction can be expansionary. But none of these conditions is likely to apply in the United States today. Wolfgang Muchau wrote in the FT, “I cannot see how somebody with a solid training in macroeconomics, and with a minimal sense of honesty, could come up with a fairy tale of an expansionary fiscal contraction. Or, that coordinated austerity programmes would not affect growth in the short run.”
Finland lawyer Grahnlaw wrote several days ago The CDU resolution Starkes Europa – Gute Zukunft für Deutschland underlines that solidarity requires massive reforms for stability and competitiveness in countries needing help. And the Euro Plus Pact is seen as an agreement among 17 eurozone leaders and six other EU members to strengthen the economic union in the EMU, by increasing competitiveness.
And today Granhlaw writes Merkel And Sarkozy Brewing Faustian Pact. A new week, and a new episode in the eurozone cliffhanger is about to begin. Only democratic and legitimate government with sufficient powers at European level can lay the robust and politically acceptable foundations needed. Euro bonds won’t work without a political authority that backs them up, says the European Economic Policy blog, but continues that we have seen over the last week that the EU has no intention of establishing such a government. In the Wall Street Journal, Irwin Stelzer states: One thing is certain: The euro cannot survive without a major change in the governance structure of the euro zone.
In a fairly detailed blog post Arend Jan Boekestijn wonders if it is five past twelve, instead of five to twelve for the eurozone (in Dutch). We are still not offered any useful and open information by the German and French governments, but we see more and more reports about a new disciplinarian code among eurozone governments in the making. The Wall Street Journal article adds important details to what it calls fiscal union.
The pact, it is hoped, could liberate the ECB to intervene massively in the bond markets, something many see as necessary to prevent the eurozone from collapsing. Have I understood correctly? If things go bad, and they already have, this intergovernmental agreement would put in place a state of emergency in individual countries, based on their prior consent. Formally democratic government would be preserved, but the policies dictated by the pact.
For all we know, these extraordinary powers could be assumed outside the political and institutional framework of the European Union (and the eurozone) with nothing in the way of transparency and public debate to influence execution. And we still have no convincing promises of democratic European level government where the national level has failed? A Faustian pact, if I may say, dear Angela Merkel and Nicolas Sarkozy.
A EU wide coup d etat is underway. Reuters reports EU Leaders To Brief Obama On Debt Crisis At Oval Office Summit. President Obama and Treasury Secretary Geithner will confer at the White House with European Council President Herman Van Rompuy, European Commission President Jose Manuel Barroso and EU foreign policy chief Catherine Ashton. “He understands that it is a European leadership issue,” said Heather Conley of the Center for Strategic and International Studies in Washington. Obama and the EU officials will release a statement after their summit ends, with Obama almost certain to restate his confidence that Europe’s leaders can handle the crisis if they show the political leadership to do so. He has previously said that calming markets would require “some tough decisions” in Europe.
Bloomberg reports IMF Readying Loan Of As Much As $794 Billion For Italy.
A New Stability Pact is forthcoming for a Stability Union. Reuters reports Germany, France Plan Quick New Stability Pact. France and Germany are planning a quick new pact on budget discipline that might persuade the European Central Bank to ramp up its government bond purchases, German National Newspaper Welt am Sonntag reported on Sunday. Echoing a Reuters report on Friday from Brussels, the Sunday newspaper said the French and German leaders were prepared to back a deal with other euro countries that might induce the ECB to intervene more forcefully to calm the euro debt crisis. The newspaper report quoted German government sources as saying that the crisis fighting plan could possibly be announced by German Chancellor Angela Merkel and French President Nicolas Sarkozy in the coming week. In an advance release before publication, Welt am Sonntag said that because it would take too long to change existing European Union treaties, Euro zone countries should just agree among themselves on a new Stability Pact to enforce budget discipline, possibly implemented at the start of 2012.
It could be similar to the Schengen Agreement which applies to EU countries that choose to take part and enables their citizens to enjoy uninhibited cross border travel. Among the countries in the Stability Pact, there would be a treaty spelling out strict deficit rules and control rights for national budgets. The European Central Bank should also emerge more as a crisis fighter in the euro zone, Welt am Sonntag wrote, saying that while governments cannot tell the independent ECB what to do, the expectations are clear. “Based upon these measures, there should be a majority within the ECB for a stronger intervention in capital markets,” Welt am Sonntag said. It quotes a central banker as saying: “If the politicians can agree to a comprehensive step, the ECB will jump in and help.”
The ECB, which cannot directly finance governments, has been buying Italian and Spanish bonds on the open market since August to try to keep down borrowing costs for the euro zone’s third and fourth largest economies. Yields on Italian and Spanish debt have nonetheless climbed in recent weeks, despite the ECB intervention and the appointment of a new technocrat government in Rome and the election of the conservative Popular Party in Madrid.
In Brussels on Friday, euro zone officials said a push by euro zone countries toward very close fiscal integration could give the ECB the necessary room for maneuver to scale up euro zone bond purchases and stabilize markets. France’s Journal du Dimanche newspaper said reforms to Europe’s economic governance would be the focus of a speech which Sarkozy will deliver in the Mediterranean port of Toulon on Thursday. “The European Commission could take on supra-national powers,” said one French presidency source, according to the newspaper, saying that Brussels would supervise the decisions of countries at risk of default, provided they request this. “National parliaments will retain the initiative over the (policy) efforts to be made,” one French negotiator told the paper.
The European Commission, the EU executive arm, put forward proposals on Wednesday to grant it intrusive powers of approval of euro zone budgets before they are submitted to national parliaments, which, if approved, would effectively mean ceding some national sovereignty over budgets. Berlin, meanwhile, is pushing to change the European Union treaty so that a country could be sued for breach of EU budget rules in the European Court of Justice. Le Figaro said there was resistance within Sarkozy’s government to allowing France’s budgets to be submitted for scrutiny by an “intergovernmental conference” in Brussels, but the president would seek to rally support for this. A closer fiscal union could eventually pave the way for joint debt issuance for the euro zone, where countries would be liable for each others’ debts.
Reuters reports World Stocks Rise From 7 Week Low On Europe Hope World stocks rose from last week’s 7-week low on Monday as hopes grew euro zone leaders would unveil fresh measures to resolve the two-year-old debt crisis, while caution ahead of next week’s key summit.
Reuters reports Moodys Warns Euro Area Crisis Threatens EU Sovereign Ratings Moody’s Investors Service warned on Monday the rapid escalation of the euro zone sovereign and banking crisis threatens the credit standing of all European.
Reuters reports Germany And France Examine Radical Push For Eurozone Integration.
Tyler Durden relates that European Banks Are Moving From A Liquidity Crisis To A Solvency Crisis. That all important metric of the 3 month EUR/USD basis swap not only did not improve but has continued to deteriorate, the worst since October 10, 2008. What is ironic is that while we know banks have a USD funding problem, they also seem to be having a EUR sourcing issue, despite being able to pull as much cash from the ECB as they want. That is of course assuming they have sufficient collateral for the repo market. Which then begs the question: is the European liquidity crisis shifting to one of evaporating repoable assets? And if the repo market is drying up, that means that the ECB will soon be forced to accept staplers are worthwhile collateral before it all falls apart.
Ambrose Evans Pritchard writes Europe’s Shrinking Money Supply Flashes Slump Warning All key measures of the money supply in the eurozone contracted in October with drastic falls across parts of southern Europe, raising the risk of severe recession over coming months.
Between The Hedges reports The 2-Year Swap spread is very near the highest since May 2010. The FRA/OIS Spread is near the highest since May 2010. The 2yr Euro Swap Spread is near the highest since Nov. 2008. The 3M Euro/Dollar Cross Currency Basis Swap is down -1.75% to -148.50 bps, which is the worst since October 2008 on a closing basis. The Libor-OIS spread is the widest since June 2009, which is also noteworthy considering the equity bounce off the recent lows.
The chart of M2 Money Stock (M2) shows a parabolic rise. I believe that this is due to a flight to safety in US Treasury Bonds, ZROZ, EDV, TLT, IEF, SHY on the flattening of the yield curve as is seen in the rise of the Flattner EFT, FLAT.
Robert A. Weigand writes an upward sloping curve implies economic expansion, and a flattening or inverting of the curve implies slowdown or contraction. Two key points here. First, the graph shows that the curve has been flattening throughout 2011, accurately foretelling the slowing economy in which we find ourselves. Second, as pointed out in a thoughtful article by Chris Turner via Advisor Perspectives, domestic and global Central Bank intervention has made it impossible to know (or even guess) what market determined interest rates would or should be anymore. Thus far we’ve accounted for 70% of the magical, mystical LEI index, and on this more granular level, it’s difficult to see the unequivocally positive information that is so apparent to bulls like Ken Fisher. Still not convinced? Okay, let’s take a look at indicator number four, Manufacturer’s New Orders for Consumer Goods, weighted almost 8% in the LEI index. If we consider the change in the nominal series, the signal appears positive. Non-Defense Durable Goods Orders are almost back up to their 2002 post-recessionary lows. With a little luck, we might soon be back where we were 10 years ago. Having accounted for almost 80% of the LEI, I rest my case. Ken Fisher’s exhortations notwithstanding, the LEI appears to be flashing positive signals because, like most averages, it obscures those always devilish details. The economy has slowed and continues to slow. Unless businesses lay off even more workers to further boost profits, or stock valuations simply continue to ignore fundamental information, stocks may face considerable headwinds in 2012.
Bloomberg reports OECD Reduces Global Growth Forecasts, Blames Euro Doubts: Economy. The Organization for Economic Cooperation and Development said growing doubts about the survival of Europe’s monetary union has caused global growth to stall and represents the main risk to the world economy. The 34 OECD nations will grow 1.9 percent this year and 1.6 percent next, down from 2.3 percent and 2.8 percent predicted in May, the Paris-based organization said in its twice-annual global economic outlook released today. In a separate report, Morgan Stanley cut its forecast for 2012 global growth. “Skepticism has grown that euro-area policy makers can deal effectively with the key challenges they face,” OECD Chief Economist Pier Carlo Padoan wrote in the report. Serious downside risks remain, linked to “loss of confidence in sovereign-debt markets and the monetary union itself.” The remarks are the first from a major government body to highlight the possibility of a euro breakup and reflect the shift in the two-year-old crisis from the region’s periphery to its so-called core. Government bond yields for both Germany and France, Europe’s two largest economies, climbed last week as a German bond auction failed to get bids for 35 percent of the 10 year debt.
Bloomberg reports Mounting Euro Breakup Risk Seen by Banks as Debt Crisis Festers. Banks around the world are sounding their loudest warnings yet that the euro area risks unraveling unless its guardians quickly intensify efforts to beat the two year sovereign debt crisis. As European finance chiefs prepare to meet this week, and Italy seeks to raise as much as 8.8 billion euros ($11.7 billion) in bond sales, economists from Morgan Stanley, UBS AG, Nomura International Plc and other banks say governments and the European Central Bank must step up their crisis response. Failure to do so threatens to break the 17-nation currency bloc, they told clients in reports published over the past week. “Markets continue to move faster than politicians,” Mansoor Mohi-uddin, Singapore-based head of foreign exchange strategy at UBS, said in a Nov. 26 note. Investors are starting to “price in the endgame” for the euro, he said. What Deutsche Bank AG calls “a new stage of the crisis” and Nomura labels a “far more dangerous phase” is dawning as signs mount that investors are even concerned about Germany, the euro’s linchpin economy. It failed to draw bids for 35 percent of 10-year bunds sold last week and the yield on its 30-year securities had the biggest weekly gain in 14 months.
Reuters reports BOJ Shirakawa Warns Japan Economic Outlook Severe
Reuters reports China 2011 Inflation To Be About 5.5 Percent Minister Relates
IBD reports Kansas City Southern Firing On All Cylinders, yet the stock value of KSU fell 7.6% last week. US Railroads are the final market sector to turn lower as fears of sovereign insolvency and failure of global growth arise, as is communicated by the chart of Kansas City Southern relative to US Basic Materials, KSU:IYM. The railroads seen in this Finviz Screener rose strongly today.
Oakland Tribune reports California Ports Slump Ahead of Holiday Shopping Season. The Port of Oakland and other California ports have suffered a slump in volume in recent months — an unsettling sign that could portend sluggish sales ahead of the crucial holiday shopping season. The slowdown for imports suggests merchants curbed orders for overseas products due to fears of lackluster consumer demand.
At the ports of Oakland, Los Angeles and Long Beach, the year started out great. Month after month, volumes were up compared with the same month a year ago. Signs pointed to an improved economy. By midsummer, though, things began to go awry for the California ports as the volume of cargo began to sink. The slump arrived in August and continued through September and October. “Those months are our peak season, the run-up before the holiday season,” said Lawrence Dunnigan, manager of business development with the Port of Oakland. “All of the imports are very soft this year.” From August to October of this year, the ports of Oakland, Los Angeles and Long Beach all endured a decline in total volume compared with the same period the year before. The statistics are based on a combined total of imports and exports at the trio of commerce hubs. (Hat Tip to Between The Hedges)
2) … EU leaders are calling for a Stability Union; it necessitates a fiscal union with the pooling of sovereignty, led by a credible sovereign who possesses sovereign authority.
A stability union can only be achieved through a sovereignty union, that is a Eurozone where leaders meet in summits and announce regional framework agreements, which waive national sovereignty for the security and stability of the EU as a whole. A stability union will require both a fiscal union and a credible sovereign who possesses sovereign authority.
Neoliberalism provided prosperity, but Neoauthoritarianism provides security. The world has passed from inflationism and into destructionism, yet there will be no death of the Euro currency union. Economic sovereignty of the EU leaders, in particular the EU ECB and IMF Troika, will manifest through announcement of regional framework agreements, as implied in the 1974 Call of the Club of Rome for regional economic government, as a means of coping with the deleveraging and disinvesting out of the Milton Friedman Free to Choose floating currency, that has come with the implosion of sovereign debt and which has produced a European banking crisis, as well as a exhaustion of credit induced growth in Chinese industrial production.
MacroBusiness provides A Picture Of Deleveraging and writes that overnight, the New York Fed released its quarterly report into US credit trends. To cut a long story short, US consumers continue to deleverage. The research has some killer charts, including the one above, which shows that after all of the fear and loathing of the past three years, aggregate credit has slid back only to 2007 levels.
The Milton Friedman Free To Choose Regime featured the moneyness of freedom, where Wall Street securitized lending of all types, which provided credit liquidity for economic growth. But the Beast Regime of Neoauthoritarianism features the seigniorage of diktat, that is the moneyness of diktat, where leaders announce mandates of global governance, which provide for regional economic stability.
Rosemary Righter, an associate editor at the Times of London, relates on page 9 of the Septemeber 26, 2011 issue of Newsweek that José Manuel Barroso, the European Commission president, asserts that the “fight for the economic and political future of Europe” requires “a new federal moment.”
An inquiring mind asks, do you believe that a new federal moment is at hand?
3) … Milton Friedman was the “great liberator of women” as well as the “great liberator of investors”; but, the Beast Regime of Neoauthoritarianism is going to claw back many of the advances of the former regime of Neoliberalism.
And Lauren Streib in the same September 26, 2011, issue of Newsweek Magazine, in article entitled, Where Women Are Winning, documents that women living in the Nordic Countries of Iceland, Sweden, Denmark, Finland, Norway and Netherlands, are in the top ten best places to be a woman.
It was Milton Friedman, who provided the Free To Choose script of floating currencies that has underwritten the northern european socialist regimes’ capability to provide better justice, health, education, government, and political gains than anywhere else in the world. But now the Beast Regime of Neoauthoritarianism is rising out of the Mediterranean Sea profligates, The Beast System has seven heads, symbolic of occupation in mankind’s seven institutions, and ten horns, symbolic of governance in all of the world’s ten regions; and it will claw back many of the advances of the former regime of Neoliberalism, as it uproots democracies throughout the world. And it will enforce a totalitarian collective in each of the world’s ten regions. Totalitarian Collectivism is the the EU’s future. Liberty and Free Enterprise are mirages on the Neoauthoritarian Desert of the Real. Choice is the epitaph on the tombstone of Neoliberalism. Diktat is the order of the future, and serves as the sovereign authority of the Ten Toed Kingdom of regional economic government.
Greek Crisis.Net relates the Suzanne Daley NYT report Greeks Balk At Paying Steep new Property Tax, where Mr. Ioannis Chatzis now has a responsibility to pay a new real estate tax bill. This is an example of the economic policy of expansionary fiscal contraction and the Euracracy’s seigniorage of diktat.
Today’s stock market rise is simply noise, it is Neoliberalism’s death rattle.
MarketWatch’s report of German Finance Minister Wolfgang Schaeuble statement, “The goal is for the member states of the common currency to create their own Stability Union and to concentrate on that”, is the bedrock for global regional economic governance that characterizes Neoauthoritarianism.
The 1974 Call of the Club or Rome for regional economic government is clarion, that is, trumpeting for the New Europe, where the word, way and way of sovereign leaders underwrites regional economic stability.
Angela Merkel will speak December 2, 2011. Tony Czuczka of Bloomberg reports Germany spurned investor calls to maximise financial firepower to calm markets, saying its fast track proposals for European Union treaty change are key to solving the euro-area debt crisis. The Chancellor will deliver a speech on the crisis to the lower house of parliament in Berlin on Dec. 2, previewing a Dec. 9 summit of European leaders that is due to discuss proposals for treaty change, Merkel’s chief spokesman, Steffen Seibert, told reporters today. Germany is working with “an ambitious timeline because we believe that Europe can’t wait for this forever, but that it should also be possible to put such limited change into effect in what for some is a surprisingly short time,” Seibert said in Berlin.
As the largest contributor to euro-area bailouts, Germany is stepping up its demands for treaty change to lock in tighter budget controls for the 17 euro member states as the chief means of tackling the debt crisis and restoring market confidence. Michael Meister, parliamentary finance spokesman for Merkel’s party, has said that fiscal integration is a precondition for any German rethink of its opposition to “joint liability.”
In the age of sovereign insolvency, the only forms of sovereign wealth are gold and diktat.
4) … Will the Fed buy mortgage backed securities?
Bloomberg reports Dealers See Fed Buying $545B Mortgage Bonds; this to me seems to be rumor and a vestige of Neoliberalism.
5) … A Global Eurasia War is coming.
Associated Press reports Unprecedented Move For Arab League. Union approves economic sanctions against Syria’s Assad regime amid a bloody eight-month uprising. And BBC News reports France Says Days Of Syrian Government Are Numbered French Foreign Minister Alain Juppe has said time is running out for the Syrian leader after the Arab League agreed sanctions against Damascus over its crackdown on pro democracy protests.
6) … Either there will be monetary freedom, or there will be monetary diktat.
Either there will be the monetary freedom, or there will be monetary diktat: that is, either there will be currency backed by gold, or there will be the seigniorage of diktat providing fiat currencies, eventually resulting in a one world government, and a one word bank, which provides global seigniorage and a global currency; such is the end result of globalism.
Tyler Durden relates Ron Paul on the International Monetary Fund and International Money, communicating that the world is marching ever onward on the road to serfdom. “We know what to do, we did it once after the Civil War period, we went from a paper standard back to the gold standard, and the event wasn’t that dramatic. But today the big problem is that both the conservatives and liberals have an big apetite for big government for different reasons, therefore they need the Fed to tie them over and monetize the debt. So if you don’t get rid of that appetite it’s going to be more difficult, but the transition isn’t that difficult. You have to get your house in order; you have to balance the budget, you have to not run up debt, and you have to promise not to print any more money. I would like to have a transition period and just legalize gold money, gold and silver as legal tender, and work our way back. We want to legalize the use of gold and silver as the constitution dictates, rather than punishing the people who try to do that. I am quite convinced that the system we have will not be maintained, that’s what these last 4 years was all about, and that’s what the turmoil in Europe is all about. The question is are they going to move toward a constitutional form of money. or are we going to go another step further into international money, instead of having an international gold standard based on the market, are we going to go toward a UN, IMF standard where they are going to control with the use of force another fiat standard. I consider that a very, very dangerous move.”