The bonfire of the global financial institutions, IXG, is steadily growing more strong, as World Stocks, VT, were led lower today by Spain’s Banco Santander, STD, RBS, LYG, BCS, IRE, DB, which led European Financials, EUFN, and Europe, VGK, lower. Falling commodity prices, DBC, led mining shares, MXI, lower; yet gold mining, GDX, rose, from being oversold, despite falling precious metal, GLD prices. I recommend ABX and HL as investments at the current time for a six month investment.
India’s ITUB, drew India, INP, lower. Chines Financials, CHIX, drew, China, YAO, lower. Brizil’s BSBR drew Brazil, EWZ, lower.
It is the Banking Stocks, EUFN, EPI, BRAF, the Infrastructure Stocks, and the Country Small Cap Stocks, VSS, that are leading the major world stocks, VT, lower. These have experienced debt deflation, that is currency deflation, especially the India Rupe, ICN, the Brazil Real, BZF, and the Australian Dollar. Small Cap country shares falling strongly this month include PSCE, SCIF, ERUS, HAO, CNDA, LATM, and KROO. Sweden, EWD, Austrial, EWO, and Poland, EPOL, are trading lower on falling European, VGK, shares.
The fall in Makita Toools, MKTAY, reflects the failure of the world central banks to sustain growth and contain the European Soveign Debt Crisis.
Charles Hugh Smith of Two Minds writes in Zero Hedge The Death Spiral Of Debt, Risk And Jobs. What we have is a Central State and an economy that has borrowed and squandered trillions of dollars on consumption and malinvestment in unproductive “stranded” assets. The debt and risk pile up, while the labor that results from consumption is temporary and does not create wealth or permanent employment. Figuratively speaking, we’re stranded in a McMansion in the middle of nowhere, a showy malinvestment that produces no wealth or value.
The prophet Daniel communicates that there is waiting in the wings of Europe’s stage, the most capable of leaders. Soon, this one of seemingly little authority, that is the Little Horn, Daniel 7:8, will step into the limelight, and lead Euroland to be a type of revived Roman Empire, where Germany will be preeminent over peripheral client nation states such as Portugal, Ireland, Italy, Greece, and Spain. After a soon coming global Eurasia War, Ezekiel 38, Europe’s leader will set his sights on military occupation of Jerusalem, Daniel 8:9-10. This individual’s power will be so great that he will dramatically change our times, and even change the scope of law, replacing his word, will and way for constitutional and historical law, Daniel 9:25. The apostle John in Revelation 13:5-10 presents him as the Sovereign, and in Revelation 13:11-18, presents his partner, the Seignior, meaning top dog banker who takes a cut. Eventually these two will establish a one world government, Daniel 7:7, and provide a global money and credit system, that will provide world wide seigniorage, that is worldwide moneyness, Revelation 13:17-18.