Financial Market Report for Monday March 5, 2012
World Shares, VT, VSS, traded lower as Great Depression 2 commenced, as the Two Hundred Percent Volatility, TVIX, rose, but Volatility, VIXY, traded lower, as investors sold the BRIC, EEB, the Emerging Markets, EEM, EWX, on exhaustion of the world central banks’ monetary policies and fear of Greek, GREK, debt contagion. The Nasdaq, QTEC, QQQ, turned lower as MU, JBL, SIRI, QCOM traded lower. Transports, IYT, and Industrials, IYJ, lower.
Boeing, BA, Eaton, ETN, Intel, INTC, Micron, MU, Applied Materials, AMAT, JBL Circuits, JBL, Caterpillar, CAT, Approach Resources, AREX, Sea Drill, SDRL, Transocean, RIG, Ford, F, General Motors, GM, American Axle, AXL, Magna International, MGA, Intel, INTC, CF Holdings, CF, Potash CORP, POT, led Agriculture, MOO, PAGG, Energy, WCAT, PSCE, IEZ, XES, XOP, Growth, JKE,, Steel, SLX, Metal Manufacturing, XME, Copper Mining , COPX, Coal, KOL, Aluminum, ALUM, Uranium, URA, Semiconductors, XSD, Airlines, FAA, Shipping, SEA, lower.
The 4% trade lower in Copper Mining, COPX, the 3% trade lower in Steel, SLX, and Coal Producer, KOL, as well as trade lower in Industrial Metal Producers, VALE, RIO, CLF, BHP, ZINC, turned S&P Materials, MXI, lower.
Automobiles, VROM, and Cars, CARZ, traded lower as the Associated Press reports European automakers forced to face overcapacity issues as austerity and crisis hit sales.
Country shares trading lower included YAO, CHII, CHXX, CHIX, HAO, EPI, SCIF, EWT, GMF, EPOL, TUR, EWD, EWC, EWW, EZA, EWA. The trade lower in European Financials, EUFN, turned European shares, VGK, lower.
Commodities, DBC, Base Metals, DBB, and Silver, SLV, and Gold, GLD, traded lower, causing Emerging Market Mining Shares, EMMT, Gold Mining shares, GDX, GDXJ, Silver Mining, SIL, and Canada Small Caps, CNDA, to trade lower.
The failure of neo liberal finance was so pronounced that credit collapsed, as reflected in Bonds, BND, trading lower. Bond vigilantes called the Interest Rate on the US 10 Year Note, ^TNX, higher to 2.0%, which caused TLT, EDV, ZROZ to trade lower. Risk aversion turned Junk bonds, JNK, lower for the second straight day.
Fiat money died today, as is seen in the chart of the world major currencies, DBV, and emerging market currencies, CEW, turning lower. Currencies from this Finviz Screener trading lower included Indian Rupe, ICN, the Mexico Peso, FXM, the South Africa Rand, SZR, the Canadian Dollar, FXC, the Australian Dollar, FXA, the Brazilian Real, BZF, and the Swedish Krona, FXS. Currencies in this ongoing Yahoo Finance chart are seen trading lower.
Summary: Currencies died today … regional global goverance is rising to replace capitalism.
All fiat wealth traded lower as Stocks, ACWI, Commodities, DBC, US Commodities, USCI, Bonds, BND, Major World Currencies, DBV, and Emerging Market Currencies, CEW, as the seigniorage, that is the moneyness, of Capitalism, aka, the Banker Regime of Neoliberalism, which came via the Milton Friedman Free To Choose floating currency script, exhausted on the failure of world central banks’ monetary policies, and fears of sovereign debt contagion, from a likely default by Greece on its sovereign debt.
Sovereign exhaustion, that is exhaustion of the world central banks’ monetary policies, and fears of Greek sovereign default, have resulted in debt deflation, that is currency deflation. The fiat money system died today, and as a result the Second Great Depression commenced.
Indeed today was a historic and pivotal point in human history, as bible prophecy was fulfilled, as the world’s former governance, consisting of the global hegemony of two iron legs, that is the US, and the UK and EU, flowed by the failure of fiat money, into the ten toed kingdom of regional global governance, Daniel 2:31-33. The toes will be an miry mixture of iron diktat and clay democracy, that will eventually crumble. And out of that, amalgamation will come a one world government, Daniel 7:7, a one world currency, and global seigniorage, Revelation 13:11-18.
One’s economic life experience will be decreasingly in choices in capitalism, and increasingly in diktat of regional global governance, as fiat money died Monday March 5, 2012, on the exhaustion of central banks’ monetary policies and fears of Greek default. Libertarianism is dead on arrival in the age of deleveraging. The Ron Paul agenda of freedom, freedom enterprise, and the free market monetary system, are simply mirages on the neo authoritarian desert of the real. There will be ever decreasing expression of sovereign nation states, as regionalization increasingly replaces democracy.
Fate, not any human action, is operating through creative destruction, and the 1974 Clarion Call of the Club of Rome to produce Regional Global Governance, aka the Beast Regime of Neoauthoritarianism, where all of mankind’s seven institutions will be integrated with statism, in each of the world’s ten regions, Revelation 13:1-4, as political capital replaces investment capital to govern mankind’s economic activities.
Under Neoauthoritarianism there are no sovereign individuals, nor are there any sovereign nations. Instead, there are sovereign bodies, such as the EU ECB IMF Troika, the ECB, and sovereign leaders, who will be appointed by country leaders meeting in summits as they announce regional framework agreements, waive national sovereignty, and pool sovereignty, for the region’s security, stability and sustainability. The diktat money system will replace the fiat money system. Diktat will serve as both money and credit.
Soon out of financial armageddon, that is a credit bust and global financial collapse, the most credible leader will rise to provide order out of chaos. This seemingly Little Authority, Daniel 7:24-25, will be a New Charlemagne, who will rise to rule the Euro zone, where Germany will be preeminent, as a type of revived Roman Empire that governs the European continent. Reuters reports EU’s Van Rompuy warns over complacency in euro debt crisis.
In a world of insolvent and failed sovereigns, gold is the only money good. I encourage one to buy and take possession of gold bullion and store it safely, as well as to buy gold on Internet vaults.
Society will become dramatically pyramidal as the middle class is wiped out. Richard (Rick) Mills of Ahead of the Herd suggest in The Great Sharing that the middle class of developing nations will expand in number. This will not be the case as debt deflation commenced today with the failure of fiat money, and the exhaustion of the world central banks’ monetary policies. The weekly chart of world stocks, ACWI, shows that an Elliott Wave 3 Down has commenced. These are the most destructive of all economic waves as they for all practical purposes destroy the wealth created in the previous five waves up.
In today’s news
Open Europe reports Slow take-up of voluntary Greek write-down plan raises prospect of forced restructuring. There has been a slow take-up of the Greek voluntary restructuring offer, despite investors having only until Thursday evening to decide if they wish to participate or not. Charles Dallara, Head of the Institute for International Finance (IIF) which negotiated on behalf of a large number of private bondholders, warned that the complexity of the deal meant that investors were taking time to fully understand it, adding, “They’re asking a lot of questions”. Meanwhile, Der Spiegel yesterday reported that the ECB doubts that the participation rate will be high enough to push through the voluntary restructuring, citing an ECB source as saying that “probably the Collective Action Clauses (CACs) will have to be activated,” which would force all bondholders to take part. Open Europe’s Raoul Ruparel was quoted by the Sunday Telegraph and the Telegraph arguing that CACs will most likely be triggered. This would give rise to big questions over the funding of Greek banks.
The Morgan Stanley Cyclicals Index, ^CYC, traded lower today. Just last week, capitalist Jim Paulsen, chief investment strategist at Wells Capital Management, said in Yahoo Finance Breakout Forget Defensive Stocks, Stick With Financials and Cyclicals. By now, you’re likely well aware of the declining rate of weekly jobless claims, that have steadily fallen to their lowest level in 4 years after peaking in 2009. While this weekly statistic has offered investors a nice dose of confidence, at least one pro is looking to them for another reason; stock market indicator. “Cyclicals (^CYC) tend to do really well as long as unemployment claims are continuing to come down,” says Jim Paulsen, chief investment strategist at Wells Capital Management. “Historically, they have tended to outperform until claims get down below 250,000, but I would suggest you stay over-tilted towards cyclicality, or economic sensitivity, until unemployment claims get down below 300,000.” “Clearly we have cleaned up the large cap Financial industry dramatically and created a good operational environment for them,” he says, adding “confidence is probably more beneficial to the financial industry than any other sector of the economy.”
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