BRICS, European Financials, Steel, Fall Lower On Competitive Currency Deflation … Great Depression II Is Underway

Financial Market Report for March 22, 2012

The Second Great Depression has commenced with the BRICS, EEB, INDY, RSX, EWZ, FXI, the Emerging Markets, EEM, Mining, and Steel, SLX, in full decline, as competitive currency devaluation picked up speed with the US Dollar, $USD, traded by the 200% ETF UUP, trading up 0.9% so far this Month.

Ireland Bank, IRE, and National Bank of Greece, GREK, led the European Financials, EUFN, World Financials, IXG, Financials, XLF, and Regional Banks, KRE lower. Banking insolvency has returned as an issue of global concern.

Both Transports, IYT, and Industrials, IYJ, traded lower.

The S&P, SPY, traded lower on lower Materials, MXI, and Financials, IXG.

Sectors trading lower included PSCE, WCAT, IEZ, RZV, PKB, PSCI.

Mining Shares trading lower included, CHIM, ALU, URA, REMX, COPX.

Country shares trading lower included INXX, SCIF, EPI, INP, EWZ, EPOL.

Bear Market Stock Shares rising included SKF, EEV, while Bear Market Bond Shares falling included, TBT.

Volatility, VIXY, and UVXY traded higher.

Base Metals, DBB, Oil, USO, Timber, CUT, traded lower, taking Commodities, USCI, and DBC, lower.

Emerging Market Currencies, CEW, traded lower, and World Major Currencies, DBV, trading lower included SZR, ICN, FXS, and FXA.

The debt trade, which has been based upon the seigniorage of the sovereign authority of sovereign nation states, is failing, as is seen in World Government Bonds, BWX, Emerging Market  Bonds, EMB, International Corporate Bonds, PICB, an Stocks, VT, VSS, EWX, trading lower.

The debt trade, aka, neo liberal credit, came by confidence in Neoliberalism, that is the Free To Choose Floating Currency Regime, which gave carry trade seigniorage, that is moneyness, to country stocks such as Sweden, EWP, Turkey, TUR, Thailand, EWT, Mexico, EWW, New Zealand, ENZL, Argentina, ARGT, US Shares, VTI, as well as to Growth Shares, such as JKE, and Value Shares, RZV.

Confidence is ebbing in the world central banks’ monetary policies, causing inflationism to turn deflationism, as fears of sovereign default rise on concerns of the debt sustainability of the PIIGS, that is Portugal, Italy, EWI, Greece, GREK, and Spain, EWP; and as fears of slowed growth and decreased global trade arise.

Neoliberalism, most obese industry, has been education, with APOL, DV, ESI, BPI, STRA, LOPE, falling the most, and the airline shares, FAA, have been struck down by falling rising oil prices.

Concern over sovereign default is seen in the Interest Rate on the US Ten Year Note, ^TNX, rising above 2.0%. Bond vigilantes are calling interest rates, both sovereign and corporate, higher globally, on fears of sovereign insolvency. Fiat sovereign wealth is starting to implode and investors are concerned about what constitutes money good.

As foretold in bible prophecy of Revelation 13:1-4, and Daniel, 2:31-33, the fiat floating currency regime, with its fiat money and credit is failing and creative destruction is actively creating a regionalization regime, known as the regional global governance, where diktat will serve as both money and credit. Fate is passing the baton of sovereignty from sovereign nation states to regional bodies such as the EU ECB and IMF Troika, giving rise to Neoauthoritarianism. Capitalism is dying and regionalism is rising. The fiat money system is being replaced with the diktat money system. There will no global debt relief, only regional totalitarian collectivism,and debt servitude for all.

The dynamos of profit and growth are winding down; and the dynamos of regional security, stability and sustainability are powering up.

From the viewpoint of Greek mythology, the Greek Goddess of Astraea, is rising to effect judgement; and the only protection one has is to call upon Arete, that is Virtue.

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