Financial Market Report as of April 24, 2012
1) … Capitalism died on the failure of credit and money in early April 2012.
Out of soon coming Financial Armageddon, regional global governance will rise as totalitarian collectivism is established by leader’s framework agreement to occupy in all of mankind’s seven institutions and in the world’s ten regions as called for by the Club of Rome in 1972 to 1976 by such declarations as Mankind At The Turning Point.
An inquiring mind asks, can there be any doubt that money and credit have died? The chart of major world currencies, DBV, as well as the chart of emerging market currencies, CEW, have been trending lower since March 1, 2012. Debt deflation has come to both world government bonds, BWX, and emerging market bonds, EMB. With the result that volatility, TVIX, rose, and world stocks, VT, fell lower in April 2012, on exhaustion of the world central Banks’ monetary authority and policies; the following led stocks lower.
National Bank of Greece, NBG, and Spain’s Banco Santander, STD, and Ireland’s Bank, IRE, lede European Financials, EUFN, Spain, EWP, Italy, EWI, France, EWQ, and Germany, EWG, EWGJ, lower.
Carry trade financed Sweden, EWD, Austria, EWO, and Poland, EPOL, traded lower.
The Industrial Metal Manufacturers traded lower REMX, URA, COPX, ALUM,
Energy traded lower WCAT, PSCE, OIH, IEZ,
The global growth shares SLX, XSD, traded lower evidencing the end of global growth and trade.
Telecom, XTL, homebuilding ITB, US Infrastructure, PKB, traded lower on exhaustion of the safe haven trade in US Stocks.
Argentina Banks BBVA, BFR, BMA, GGAL, led Argentina, ARGT, lower.
UK area banks, RBS, LYG, led the UK lower EWU.
Brazil Banks, BRAF, and India Banks, EPI, led the BRICS, EEB, RSX, EWZ, INDY, HAO, lower.
Failure of the seigniorage of Apple Ecosystem, as well as the failure of neoliberal finance to support Networking Stocks, IGN, SKYY, FONE.
Failure of the seigniorage of neo liberal finance turned Small Cap Pure Value RZV lower. The parabolic trade lower in these shares witnesses debt deflation, that is currency deflation and is litmus test evidence of the failure of credit and money as they have been known.
The chart in Bespoke Investment Group article Consumer Confidence communicates to me that consumer confidence has entered an Elliott Wave 3 of 3 Down decline.
All forms of fiat wealth, stocks, VT, international government treasury bonds, BWX, junk bonds, JNK, commodities, DBC, major world currencies, DBV, emerging market currencies, CEW, are experiencing debt deflation.
The global government finance bubble that has underwritten capitalism when the world went off the gold standard and embraced the Milton Friedman Free To Choose script, has burst, and bank stocks, IXG, mining stocks, MXI, energy development stocks, OIH, IEZ, energy stocks, WCAT, PSCE, semiconductors, XSD, large cap growth stocks, JKE, are all now falling into the Pit of Financial Abandon.
A number of conventional electricity utilities, such as NEE, rose to new highs; as well as a number of REITS rose to new highs; these included Simon Property Group, SPG, which rose 25%, that is from 120 to 150 since the first of the year; the only reminder of the seigniorage, that is the moneyness of LTRO neo liberal finance.
Gold, in terms of currencies, started to stabilize and increase this week, suggesting the start of an investment demand for gold, as fears that the world central banks’ expansionary monetary policies have failed, and that wealth can only be preserved by investing in and taking possession of gold bullion.
2) … News of the day
Bloomberg reports Weidmann Says Bundesbank Is Preserving Euro Stability. Bundesbank President Jens Weidmann said the German central bank’s actions are aimed at maintaining the stable foundation of the euro and preventing an erosion of the single currency’s acceptance. “What we are doing is preserving the stability foundation of the single currency,” Weidmann said today in an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “If the stability foundation of the euro is eroded, then we will also see the acceptance of the single currency eroded.” The Bundesbank has faced criticism, including from billionaire George Soros, for speaking out against some European Central Bank crisis-fighting measures such as government bond purchases. Weidmann said Soros’s charge that the Bundesbank is preparing for the end of the euro is “ridiculous.” “We shouldn’t get so excited about bond yields rising for a limited period of time,” Weidmann said. “They also constitute an incentive to reform, to embark on consolidation.” The ECB, which has pumped more than 1 trillion euros ($1.3 trillion) into the banking sector since December in a bid to avert a credit crunch, has “done its job,” Weidmann said. Weidmann added that governments must now press on with budget cuts and structural reforms to encourage economic growth. “It’s important to get the message to governments, ‘this is your job now,’” Weidmann said. (Hat Tip to Between The Hedges)
WSJ reports Running Mate Dance Begins. Mitt Romney worked to lock up the Republican presidential nomination in a Pennsylvania campaign swing Monday that also served a general-election purpose: debuting a potential running mate. The likely GOP nominee shared the stage in this Philadelphia suburb with Florida Sen. Marco Rubio, a 40-year-old Cuban-American conservative, as he focused his attention on the November matchup with President Barack Obama. (Hat Tip to Between The Hedges)
Mike Mish Shedlock writes Eurozone manufacturing PMI hits 34 month low
The California Beach Pundit relates The Argentine Way of Business.
Chris Marsden writes in WSWS Netherlands government falls over austerity budget. Dutch Prime Minister Mark Rutte resigned on Monday after his government failed to get backing for austerity measures agreed with the European Union.
Alex Lantier and Johannes Stern write in WSWS Large neo-fascist vote shakes French presidential race. The large first-round vote for neo-fascist candidate Marine Le Pen has shaken the French presidential election, which continues towards the May 6 run-off between Socialist Party candidate François Hollande and incumbent President Nicolas Sarkozy.
There is something called the sinker; it goes on the fishing line near the hook and the bait. It is placed there so that the presentation goes all the way down to the bottom where the deep and more substantial things live.
Please consider letting these words sink in … money and credit as they have traditionally be known are dead, they are history; and as a result the political and economic way of life of capitalism, that has existed since positivism and pluralism first commenced in the 1950s, with the Cat In The Hat, being taught in schools and libraries, is gone, finished, done and over.
Capitalism is dead, it is history, gone forever; regional global governance, with diktat being implied, as called for the Club or Rome in 1972 to 1976, is rising and will continue to rise to govern mankind’s economic and political activities.
Mike Mish Shedlock asks Does it Matter if Obama Beats Romney? Does it Matter if Hollande Beats Sarkozy? and presents the Austrian Economics position that “Many disagree with my supposition that a breakup of the Eurozone is going to happen regardless. No currency union in history has ever survived in the absence of a political union, and it should now be clear that a political union is impossible.”
Graham Summers writes in Zero Hedge article Merkel Back Is Against The Wall … Time For Germany’s Plan B, In short, Germany has given the SoFFIN:
- €400 billion to be used as guarantees for German banks.
- €80 billion to be used for the recapitalization of German banks
- Legislation that would permit German banks to dump their euro-zone government bonds if needed.
That is correct. Any German bank, if it so chooses, will have the option to dump its EU sovereign bonds into the SoFFIN during a Crisis. So in simple terms, Germany has put a €480 billion firewall around its banks thereby allowing Germany to potentially pull out of the Euro if it has to.
Now, I’m not suggesting that Merkel will suddenly opt to do pull Germany out of the Euro. Doing that would only worsen EU relationship and arouse more anti-German sentiment.
However, I wouldn’t be surprised to see Merkel start threatening this in the coming weeks as German outrage grows regarding their exposure to back-door EU bailouts. Remember, her political popularity is largely due to her appearing tough on the PIIGS. She has to regain that appearance as quickly as possible in order not to face serious political consequences.
On that note, I fully believe the EU in its current form is in its final chapters. Whether it’s through Spain imploding or Germany ultimately pulling out of the Euro, we’ve now reached the point of no return: the problems facing the EU (Spain and Italy) are too large to be bailed out. There simply aren’t any funds or entities large enough to handle these issues.
For the longest time, Bible teachers such as Garner Ted Armstrong, have presented from Daniel 2:31-33, that a United States Of Europe, that is a One Euro Government and a One Euro Bank, led politically and economically by Germany, is coming as part of the ten toed kingdom, with toes of iron diktat and clay democracy, to replace the iron rule of UK and US Hegemony, that has ruled the world since the late 1700s.
Destiny, Revelation 2:26-27, and 2 Corinthians 5:17-18, Revelation 6:1-2, not any human action, drives all the events of history. There is waiting in the wings of Europe’s stage, the most credible of sovereigns, one of seeming little authority, the Little Horn, Daniel 7:8, Revelation 13; 5-10.
Soon fate will open the curtains, and he will step into the political and economic limelight. He will be accompanied in rise to power by a banker, Revelation 13:11-18. This sovereign will play the lead role in brokering a future middle east peace plan, Daniel 9:25-27, which comes after the global Eurasia War, the Ezekiel 38 War.
The sovereign’s rise to power will be characterized by working in regional framework agreements, Daniel 8:23, to change our times and laws, Daniel 7:25. He will be one who honors a god of military power, Daniel 11:38-39.
Inflationism is turning to destructionism on the failure of world central bank monetary authority, and failure of carry trade investing to stimulate global growth and global trade as Tyler Durden reports in Zero Hedge G-10 Macro Data Plunges To Worst In Six Months, Turns Negative .
The dynamos that of growth and profit, that powered the paradigm of capitalism and European Socialism, are winding down; and the dynamos of regionalization, particularly the dynamos of regional security, stability, and sustainability are powering up the paradigm of regional global governance. As a result, the fiat money system is dying, and the diktat money system is rising where diktat will serve as both money and credit. This is a fulfillment of bible prophecy of Revelation 13:1-4, where the Beast regime of Neoauthoritarianism, rises from the profligate Mediterranean nations of Greece and Italy, to rule in seven heads, symbolic of mankind’s seven institutions, and ten horns, symbolic of the world’s ten regions to replace the Banker regime of Neoliberalism that has governed the world.
Eventually a handful of derivative laden banks will play a large role in guiding regional global governnace as Business Insider relates How 9 Banks Are Exposed to $200 Trillion Worth of Derivatives.
3) … I ask who is my father?
I have many fathers. I am the product of these individuals. These have been my life mentors. I am who I am today, because of who these people are and what they have done, written and communicated. My life’s attitude, and my behavior and speech reflects things learned from these individuals.
I practice liberalism in the additive process of 2 Peter 1:1-10, where I as the elect of God, add virtue and love to the like precious faith of Jesus Christ. Carnal life is gradually diminishing and spiritual life in Christ and His attributes is gradually emerging, as I grow in knowledge, pray for and practice a good conscience that has come by petition to God and the mercy of God. By practicing a quiet life, minding my own business, and living in virtues, that is a set of moral excellencies, and interpersonal austerity of purity and holiness, I hope to attain to the personhood of Christ.
Father of Faith, Abraham
Father of the Churches, the Apostle Paul
Father of Liberalism, the Apostle Peter
Father of Spiritual Living and The Revelation of Jesus Christ, the Apostle John
Father Of Reformation and Father of Liberty, John Calvin; he set many free from Roman Catholicism. History Learning Site UK relates, In September 1541 Calvin returned to Geneva after the Libertines had fallen from power in 1540. It took Calvin 14 years before he could fully impose his version of liturgy, doctrine, organisation of the church and moral behaviour. Calvin’s services were plain and simple. He placed great importance on the sermon. His sermons were very logical and learned. Though he himself liked music, he distrusted its use in religious services believing that it distracted people from the matter in hand, the worship and the seeking knowledge of God. Musical instruments were banned from churches, though congregational singing was permitted and this proved to be both popular and an effective way of ‘spreading’ the message. All matters relating to worship came from the Scriptures, so psalms took the place of hymns in services.
Father of Grace and Election, John McArthur of the Grace To You Ministries, and Author of the John McArthur Study Bible.
Father of Restoration, Witness Lee, who has called for restoration of New Testament worship, doctrine, and one another living, for the church to be the perfect bride and life expression of Christ.
Father of Understanding Of English Language, A Native American English Professor who I met while living in a bed and breakfast in Sitka Alaska.
My understanding from 2 Peter 1:1-10, is that one is of the like precious faith of Jesus Christ and thus is elect, appointed, and chosen to partake of the Divine nature, or either, that one is an ethical person, or a poneros person, or some other fiat person, having experience in the death of Adam.
Liberalism of virtue in the like precious faith of Jesus Christ is not pluralism, that is the way of respect for diversity and alternative views, proposed by the Global Center For Pluralism; and pluralist authors Jack Reardon, Edward Fullbrook, John Groenewegen, and Mark Maier and Julie Nelson. I recommend home schooling so that one’s child not be exposed to a pluralistic school system where values education is taught.
And liberalism of virtue in the like precious faith of Jesus Christ is not positivism as presented by positivist authors Barry Bazan and Richard Little in International Systems In World History.