World Stocks, Commodities, And Currencies Trade Lower With Mining And Steel Stocks Leading BRICS And Their Banks Lower
Financial Market Report for March 28, 2012
1) … Copper Miners, COPX, Coal Producers, KOL, Steel Manufacturers, SLX, led BRICS, EEB, and Emerging Markets, EEM, lower on China And European data, which indicates a downturn in global trade and export worldwide. Wildcatters, WCAT, led Energy shares lower, suggesting the failure of US Federal Reserve monetary policy stimulus.
Investors deleveraged out of Copper, JJC, which led Commodities, DBC, lower on fears of recession and credit exhaustion. Oil, USO, trade lower as Bespoke Investment Group reports Crude Oil Inventories Shoot Higher
Both Industrials, IYJ, and Transports, IYJ, traded lower.
The failure of fiat wealth has commenced with a failure of neo liberal finance.
Small Cap Value Shares, RZV, traded lower as competitive currency devaluation picked up steam with the Euro, FXE, falling the most in three weeks on LTRO exhaustion. The chart of small cap value shares, RZV, shows a trade lower from a double top, communicating the end of a risk trade stemming neo liberal finance. And the chart of large caps, JKE, shows a hanging man candlestick suggesting an end to a safe haven trade away from exposure to European Sovereign debt, as well as an end to the global growth trade and debt trade.
The WSJ report Yen Slides As Bank Of Japan Policy Speculation Hits Fever Pitch.
The failure of fiat money has commenced; the Japanese Yen, FXY, the Brazilian Real, BZF, and the Australian Dollar, FXA, are now in a well defined downtrend.
World Government Bonds, BWX, traded lower on falling world currencies, DBV
2) … The Banker Regime, which came by the Milton Friedman Free To Choose Script of floating currencies, is fading. The Beast Regime of Neoauthoritarianism is rising out of the PIIGS, that is the Eurozone peripheral nations.
The National Bank of Greece, NBG, led Greece, GREK, and Santander Bank, STD, led Spain, EWP, and banking and country shares, lower world wide today. The Telegraph reports Spain Slumps Back Into Recession. This behemoth has mandate from the 1974 Club of Rome Clarion Call for regional global governance.
The BRICS, were led lower by Russia, RSX, India Earnings, EPI, India, INP, Brazil Banks, BRAF, Brazil, EWZ, and China, CAF, YAO. Argentina Banks, BMA, BBVA, BFR, GGAL, led Argentina, ARGT, lower. Carry trade investment in Brazil Small Caps is unwinding as evidenced by the strong fall lower in Grafica, GFA.
Emerging Market Infrastructure Stocks, EMIF, CHXX, INXX, and US Infrastructure Stocks, PKB, led World Stocks, VT, lower.
Emerging Market Mining, EMMT, and European Financials, EUFN, led World Financials, IXG, lower.
Small Cap Value leader, Synnex, SNX, snapped 13% lower signaling an end to carry trade investing in US Stocks, VTI.
Global Materials, MXI, traded lower, led by BTU, SLT, ACH, SCCO, CLF, AA, CF, POT, and RIO.
International commodity trading firm Archer Daniel Midland, ADM, traded lower, turning Global Agriculture lower.
Debt laden International Paper, IP, traded lower, turning Paper Producers, WOOD, lower.
Carmart, CRMT, traded lower, turning Auto Dealerships lower.
Roper, ROP, traded lower, turning Scientific Instruments lower.
Manitowoc, MTW, and JOY, IR, TEX, all traded lower, turning Construction and Mining Equipment lower.
Fluor, FLR, traded lower, turning US Infrastructure lower.
Shufflemaster, SHFL, traded lower, turning Gaming and Casino Stocks, that is Vice Stocks, lower.
Global Payment Networks, GPN, traded lower, turning Small Cap Revenue Stocks lower.
Semiconductor Equipment Manufacturer, Applied Materials, AMAT, traded lower, turning Semiconductors lower.
Caterpillar, CAT, and Cummins, CMI, traded lower, turning Industrials lower.
Dow, DOW, traded lower, turning Chemical Manufacturers lower.
Eaton, ETN, traded lower, turning Electrical Equipment Manufacturers lower.
Jabil Circuits, JBL, trade lower, turning Printed Circuit Board Manufacturers lower.
Nucor, NUE, traded lower, turning Steel lower.
Morgan Stanley, MS, traded lower, turning Financials lower.
Deere, DE, traded lower, turning Agricultural Equipment Manufacturers lower.
Amazon, AMZN, traded lower, turning Internet Retailers lower.
Exxon Mobil, XOM, traded lower, turning Energy Producers lower.
LG Electronics, LPL, traded lower, turning Electronics lower.
Abercrombie and Fitch, ANF, traded lower, turning Retailers lower
Anixter, AXE, traded lower, turning Small Cap Industrials lower
TRW Inc, TRW, traded lower, turning Automobile Part Manufacturers lower.
FEIC traded lower, turning Nanotechnology, PXN, lower.
American Railcar, ARII, traded lower, turning Transportation lower.
British American Tobacco, BTI, traded lower, turning Tobacco lower.
Nike, NKE, traded lower, turning Consumer Discretionary lower.
Apollo, APOL, traded lower, turning Education lower.
Netsuite, N, traded lower, turning Cloud Computing lower.
Imperial Oil, IMO, traded lower, turning Refiners lower.
United Technology, UTX, traded lower, turning Conglomerates lower.
Honeywell, HON, traded lower, turning Aerospace lower.
The chart of 200% Bear Market Brazil ETF, BZQ, shows a 4% gain, as it led Bear Market ETFs, SMN, EEV, FXP, DUG, SSG, and TWM, higher, as is seen in this Finviz Screener higher.
3) … The fiat of capitalism is being replaced by the fiat of mandate .
The fiat of capitalism which came when the US went off the gold standard in 1971, is failing to provide economic and political governance, as the dynamos of growth and profit are running down. Capitalism’s banner of choice, ie democracy and the free market money system, are failing. Capitalists are a dying breed.
The fiat of mandate, which comes as the world major currencies, DBV, and emerging market currencies, CEW, trade lower in value, is rising. The Euro, FXE, traded lower on LTRO exhaustion, and on a popular revolt of austerity measures, and as the spread between bonds and CDS compressed, on renewed confidence of CDS triggering. Eurosis, that is a fear of sovereign debt collapse, not LTRO Euphoria, now governs the FX currency markets.
Mandate, such as technocratic government, the Euro zone debt brake, austerity measures, the ESM and ESFS subordination of debt, the ECB subordination of debt, the second Greek Bailout, are de rigueur. Mandate is rising to provide economic and political governance, as the dynamos of regional security, stability, and sustainability, are powering up regional global governance. Clearly and decisively, fate, Revelation 2:26-27, and Revelation 6:1-2, is passing the baton of sovereignty from nation states, to sovereign bodies such as the EU ECB and and IMF Troika. Mandate, and the diktat money system, where diktat serves as both money and credit, is rising to govern mankind’s economic and political activity. Authoritarians are rising in power.
There is no human action, rather all things are of God, 2 Corinthians 5:17-18, and He is causing the Beast Regime of Neoauthoritarianism to rise up out of the profligate Mediterranean Sea nations of Greece, GREK, and Italy, EWI. This monster of statism and totalitarian collectivism will occupy in all of mankind’s seven institutions, and in the world’s ten regions. This behemoth is the ten toed kingdom of regional global governance, that will emerge out of failure of the iron rule of EU UK and US global hegemony, that has governed since the late 1700s. as foretold in bible prophecy of Daniel 2:31-33. Imperialists are soon to be a dying breed and regionalists who implement regionalization will be rising in power; these include Eurocrats such as Olli Rehn.
The fall lower in semiconductor equipment manufacturer Applied Materials, AMAT, is most significant as it marks the end of the last phase of capitalism, that is the silicon age. A New Europe is rising through comments by leaders such as Angela Merkel, Wolfgang Schauble and Jenz Weidmann; these are introducing the age of diktat and regional global governance.
Soon out of financial armageddon, Revelation 13:3-4, mandate will rise to be sovereign, and leaders in the EU will meet in summits, waive national sovereignty, and pool sovereignty. The curtains will rise on a new act on EU’s stage, where one of seemingly Little Authority, will arise to be Europe’s Sovereign, Revelation 13:5-10, possibly Herman van Rompuy, as well as Europe’s Seignior, Revelation 13;11-18, possibly Mairo Draghi. Their diktat will be fiat for all. Together with budget commissioners working in a Fiscal Union, and monetary cardinals, working in a Monetary Union, with the ECB, empowered as a Bank, their word, will, and way, will replace all constitutional law and national law. These will change the times and the law. And the people will be amazed, and give their allegiance to these, as foretold by John the Revelator, as he wrote of a dream given to him by angels, Revelation 13:3-4.
4) … Tyler Durden writes on the true purpose of the EFSF and ESM, that being subordination of debt, and the creation of illusion of debt sustainability with the suggestion by Goldman Sachs Redemption Fund relating Seniority constraints (as with Greece, the EFSF/ESM will hugely subordinate existing bondholders should action be required, exacerbating rather than mitigating the crisis), and Governance limitations (the existing infrastructure cannot act pre-emptively and so timing – and admission of crisis – could become a limiting factor), it is unlikely that a more sustained realignment of rate differentials (with their macro underpinnings) can occur (especially at the longer-end of the curve). The re-appearance of the Redemption Fund idea (akin to Euro-bonds but without the paperwork) is likely the next step in countering reality.
Bloomberg reports ECB’s Weidmann Says Rescue Fund Expansion Won’t Solve Crisis. European Central Bank Governing Council member Jens Weidmann said boosting Europe’s rescue funds will not solve its debt crisis, days before finance ministers meet to discuss expanding the limit on bailout lending. “Just like the ‘Tower of Babel,’ the ‘Wall of Money’ will never reach heaven,” Weidmann said in a speech at Chatham House in London today. “If we continue to make it higher and higher, we will, in fact, run into more worldly constraints,” which might include setting “incentives that lead to new problems in the future.”
5) … Europe’s austerity push breaks the model of European Socialism providing social justice.
The father of social justice was Jeremy Bentham. His utilitarian fiat of expanding monetary policy and utilitarian ethic of happiness for the greatest number of people, is history. It is being replaced by new fiat, the mandate of diktat, where austerity and debt servitude rule, this being seen in the
Bloomberg report Europe’s Austerity Push Breaks Mother’s Promise of Social Model.
6) … The Apostle Peter relates the alternative of fiat, is elect, and the like precious faith of Jesus Christ, as he writes in 2Peter 1:1-10. It is these who pray for a good conscience, Psalm 51:10, and practice the additive process of virtue and love, so as to participate in the Divine Nature, and receive the exceedingly great and precious promises of God.
As for me, I am retired, and blog on sovereignty and seignirorage; and have nothing derogatory to say about anyone. I increasingly pray for a good conscience, so I can discern what is right from wrong. And I reflect on virtue, meaning a set of moral excellencies, by reading the book Twenty Teachable Virtues, and by meditating on the cocoon stage of morality, that being virtue, knowledge, self moderation, perseverance, and then practice the butterfly stage of being a moral person, as I be godliness, brotherly kindness, and love, all by the Lord’s grace and truth, John 1:17.
An inquiring mind asks, if one reflects on principles known to be morally beneficial to others, will not the moral person develop?
Like in the Morpheous Proposal, the fiat, those of the blue pill, participate in whatever their mandate dictates. However, those of the red pill, the elect by providence, participate in the divine nature, so to as receive His wonderful promises. The choice to fiat or to be elect, was made by God in eternity past, as will died in the garden of Eden. There are no sovereigns save God alone. This is known as the doctrine of the election of grace, and was trumpted by John Calvin, and is explained quite thoroughly in the John McArthur Study Bible.
One of my neighbors has a barking dog, it’s his dog to bark. Another beats his dog, it’s his dog to destroy. Another has a cat that poops on my front porch, its his to let poop. Another has trashed out cars parked in front of his place, they are his to display. Another prowls the neighborhood, being the social sheriff, continually giving me dreadful looks, he is the Lord’s poneros. I simply let them all be, as they exist in one fiat or another. I give my neighbors peace as I am not a busybody in another person’s affairs.
7) … In today’s news
EuropoliticsInfo reports Van Rompuy Says Eurozone Crisis Has Reached “Turning Point”. Herman van Rompuy said that he was confident that an agreement among all member states regarding the extension of the European Financial Stability Facility, EFSF.
Guelda Volen of TRD relates Bloomberg Extends Rent Control For Three More Years. Rent control and rent stabilization programs have been in place in New York City since 1969, and restrict either the price of a rented apartment or limit the increases in rent.
Open Europe relates Richard Sulik Says Helping The Greek State Was A Waste Of Taxpayers’ Money. Open Europe hosted a debate in London entitled, “Are the Eurozone Bailouts Fair?”. The event was covered by CNBC and the BBC. Richard Sulik, Chairman of the Slovak Freedom and Solidarity Party (SaS), which opposed Slovakia’s participation in the bailouts argued that it was unfair for states such as Slovakia to have to bail out richer states such as Greece and pointed out that “the average pension in Slovakia was around €400 per month, three times lower than in Greece.” Slovakia had taken steps to restructure its economy while Greece continued to live beyond its means with 25% of the workforce employed in the public sector. As a result Sulik argued it would be far better for both sides if Greece left the euro. He said, “Helping the Greek state was a waste of taxpayers’ money” and would turn the eurozone into a “de facto transfer union”.
The Telegraph reports Spain To Slash Spending As Economy Slumps Back Into Recession. Spain’s fragile economy has fallen back into recession and the country faces a year of grinding economic decline as premier Mariano Rajoy slashes spending yet further to meet EU demands.
Zero Hedge relates Bill Gross: The Game As We All Have Known It Appears To Be Over