Bonds And Currencies Trade Lower On Exhaustion Of LTRO Financing And Operation Twist Commencing Both The End Of Fiat Money And The Beginning Of The Second Great Depression

Financial Market Report For March 14, 2012

The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened once again forcing Bonds, BND, sharply lower again today, as US Treasuries, ZROZ, EDV, TLT, IEF, IEI, fell strongly lower, forcing longer duration corporate bonds, BLV, and corporate bonds, LQD, vertically lower, wiping out most of the gains made from the first of year, which came via LTRO financing, and operation twist.

Emerging Market Bonds, EMB, traded lower. The Flattener ETF, FLAT, traded sharply lower, and the Steepner ETF, STPP, traded strongly higher.

The Interest Rate on the US The Year Note, ^TNX, rose to 2.3%, reflecting the bond vigilantes being able to call interest rates higher, as the seigniorage, that is the moneyness of the US Central Bank’s monetary policies, has failed. This with the strong trade lower in the Yen, FXY, and the strong trade lower in the South African Rand, SZR, Australian Dollar, FXA, the Brazilian Real, BZF, and the Swedish Krona, FXS, and the Emerging Market currencies,CEW, documents the failure of world central banks’ monetary policies, and the death of fiat money, with confirmation coming from the rise in the US Dollar, $USD, UUP . With the rise in US Treasury yields and the rise in the US Dollar, $USD, capitalism has died, and regional global governance will rise in its place.

The monetization of debt globally finally has resulted in a rise in sovereign and corporate interest rates globally, causing derisking out of stocks, and deleveraging out of commodities, on debt deflation, that is currency deflation, which commences the Second Great Depression.

With sovereign national governments failing, Bonds, BND, and currencies, such as the Emerging Market Currencies, CEW, the Brazilian Real, BZF, the Australian Dollar, FXA, the South African Rand, the Swedish Krona, FXS, the Indian Rupe, ICN, and the Euro, FXE, turning lower, both fiat money and credit are dying..

Fiat wealth consisting of stocks and bonds, will now literally be sawn asunder, and fall ever lower, as currencies trade increasingly lower, on the exhaustion of the worlds’ central bank monetary authority, causing competitive currency devaluation.

Fate, through creative destruction, is passing the baton of sovereignty authority to new sovereigns, such as the EU ECB and IMF Troika, who are providing diktat as both money and credit. The fiat money system is history and the diktat money system is rising in its place. Sovereign insolvency and bank insolvency are the factors causing the seigniorage, that is the moneyness, of the global debt trade to fail. Soon the seigniorage of diktat, will arise to underwrite debt servitude for all. An inflection point in economic history has been reached as the monetization of debt is causing the destruction of currencies, leading all down the road to serfdom, into a global gulag of debt servitude and loss of national sovereignty.

With stocks, rising to previous highs, and bonds, and currencies trading lower on competitive currency devaluation, the fiat money system is history; and the diktat money system will rise to govern mankind in regional totalitarian collectivism and regional statism. Regionalization is the way forward in globalism.

Capitalism’s dynamos of growth and profit are exhausting on the failure of neo liberal credit and carry trade investing. New dynamos of regional security, stability and sustainability will establish the ten toed kingdom of regional global governance, terminating the Anglo American hegemony that began in the late 1700s, even though Oliver Knox reports Obama, Cameron reaffirm Afghan strategy; the two leaders say NATO is still committed to shifting to a support role in Afghanistan in 2013.

Stocks trading lower included Copper Miners, Small Cap Energy, US Energy Service, IEZ.

Countries trading lower include Greece GREK, China YAO, Russian, RSX, India, INP, Brazil, EWZ,  the BRICS, EEB, the Emerging Marketd,s EEM, and South Korea, EWY.

Silver, SLV, and Gold, GLD, Timeber, CUT, Base Metals, DBB, Timber, CUT, and Oil, USO, traded lower, taking commodities, DBC, USCI, lower as well.

Stock bear market ETFs, such as TWM, and EEV, traded higher on rising volatility, VIXY;  UVXY, and bond bear market TBT rose as well. Yes a number of stock bear market and debt bear market investments traded lower introducing debt deflation, that is currency deflation, in both stock and bonds.

The rise of the global  growth trade and the global government debt trade is over, as World Stocks Outside The US, ACWX, and World Government Bonds, BWX, are trading lower from their recent highs.

Annaly Capital Management, NLY, led Mortgage REITS, REM, lower; wealth can no longer be procured by the financialization of mortgage bonds and US Intermediate Bonds.

DTE Energy, DTE,  led Utilities, XLU, lower.

At major market turns lower, US Treasury Bonds, ^USB, and the HUI, Precious Metal MINing Stocks, ^HUI,  make market turns lower together. The downturn in the 30 Year US Treasuries, EDV, comes at a time when Mining Stocks, GDX, have been trading lower. The gold miners, GDX, may be ready for a dead cat bounce higher now,  from 50 to 54, before they turn lower yet again, and fall lower with all stocks in the Pit Of Financial Abandon.

Debasement of World Currencies, DBV, and Emerging market Currencies, CEW, by world central banks’ monetary authorities had created inflation; but now currency debasement is causing destruction to bonds globally, that is to bothy sovereign debt BWX, and international corporate debt, PICB,

Debasement of currencies world wide is causing despotism to rise to power in the EU, as the EU ECB and IMF Troika effect a Eurozone Coup D Etat.

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