1) … The Bear Market Intensified Today As Both Transports, IYT, And Industrials, traded lower; it is the Transports that are leading the Industrials lower.
Bloomberg reports BIS says Europe’s debt crisis is stoking global financial turmoil.
Airlines, FAA, Shipping, SEA, US Infrastructure, PKB, Coal, KOL, Uranium, URA, Aluminum, ALUM, Homebuilders, ITB, Investment Brokers, IAI, and Regional Banks, KRE, The Too Big To Fail Banks, RWW, Small Cap Materials, PSCM, Farm And Construction Machinery, TSCO, CASC, Industrial Electrical Equipment, ETN, ROK, AIMC, BGC, Small Tools, SNA, and Appliances, LII, traded lower today.
US Infrastructure Stocks, PKB, that once were risk-on momentum investing leaders, traded lower on the continuing exhaustion of neo liberal finance; these included, Z, OC, USG, PTGI, AVD, FBHS, MAS, SPW, BECN, MHK, WSO, NX, EXP, NP, ROP, MTRX, and BEAV.
South Korea Small Caps, SKOR, China Small Caps, HAO, China Infrastructure, CHXX, China Financials, CHIX, China Industrials, CHII, China Materials, CHIM, Vietnam, VNM, Philippines, EPHE, Shanghai, CAF, Indonesia,k IDX, Argentina, ARGT, amd Egypt, EGPT. traded lower.
Utilities SO, ED PGN, WEC, XEL, PNV, and DUK, traded to new highs; Gold miners, GDX, rose; but Junior Gold Miners, GDXJ, traded unchanged.
The chart of Bonds, BND, and the chart of the US Dollar, $USD, UUP, shows a terrific rise during May, 2012. Will it now be turning lower, as investors go long commodities, DBC? Jack Chan of JC’s Buy and Sell Signals, gave a buy signal to gold on June 1, 2012.
2) … German Newspaper Reveals Herman Van Rompuy Is Working On A Plan For Euro Zone Regional Governance As Zero Hedge Reports Soros Starts A Three Month Countdown To D(oom)-Day.
Christoph Dreier, writes in WSWS, SYRIZA presents its economic programme. SYRIZA leader Alexis Tsipras proposed to terminate loan agreements with Greece’s creditors and reverse the cuts imposed on Greece in recent years.
Landon Thomas reports The NYT reports Eurozone Is Lurching To A Crossroads Jens Nordvig, a senior bond and currency specialist at Nomura in New York “The euro zone is disintegrating and this has started to feed into institutional capital flight out of the euro zone. The crisis has reached a new level. Policy makers are realizing that there are only two options. Further integration or a breakup.”
EuroIntelligence provides the best of news analysis and reporting; I suggest that one purchase its daily email service which reports Mr Van Rompuy’s not quite so secret plan. German newspaper Welt am Sonntag spoke about a “secret master plan” to introduce a banking union, a fiscal union and a political union, masterminded by Herman van Rompuy. Having broken the story, the newspaper immediately, and predictably, denounced the idea in an editorial, as a superstate through the backdoor. The FDP talks about the re-introduction of centralised planning. FTD talks about the reintroduction centralised planning; the Bundesbank says it opposes the ECB’s designs of a banking union, warning of a mutualisation of all risk; the German saving banks federation says it does not want to subsidise foreign banks; Angela Merkel and Wolfgang Schauble are pushing banks into an EFSF programme.
German financial establishment opposes Draghi’s banking union. No surprises here. The idea of a banking union will be fiercely resisted by Germany’s financial establishment. The Bundesbank and the German banking lobby already signalled their opposition to Mario Draghi’s plan to set up a banking union to prevent and counter future crisis in the eurozone’s financial sector. In an interview with Frankfurter Allgemeine Zeitung Bundesbank vice president Sabine Lautenschläger warned the instauration of a EU deposit guarantee and a EU rescue fund could entail the mutualisation of risk”. This would be acceptable only if it come in parallel with “central (European) control and implementation rights like in fiscal union”. Since this would require changes in the EU treaties and the national constitutions a banking union could not be cure to the current problems, Lautenschläger cautioned. Also Georg Fahrenschon, president of the German saving bank’s lobby group opposes Draghi’s plans. It would be wrong “to hold other credit institutes responsible for the debt banks which work in an unsolid manner”, he wrote in a guest comment for Financial Times Deutschland. “German (bank) clients would have to supply money to support foreign banks.”
Merkel and Schäuble want Spain to apply for EFSF rescue. Angela Merkel and Wolfgang Schäuble agreed last week to push Spain into asking for rescue loans from the EFSF, Der Spiegel reports. The chancellor and the finance minister have reached the conclusion that the country is unable to help its ailing banking sector on its own since it had to pay interest rates of 6.7% for government bonds, a level at which Portugal and Ireland last year requested rescue loans at the EFSF. When Schäuble met his Spanish counterpart Luis de Guindos last week he urged him that Spain should apply for EFSF money. De Guindos, however, refused and said he wanted to wait first for the results of the ongoing independent assessment of the need for the country’s banking sector.
Financial Times columnist Wolfgang Münchau writes How to build a fiscal union to save the eurozone, stating, “I am, however, mildly encouraged by the sheer number of people in Brussels, Frankfurt, Paris and in Rome, who are now openly advocating a multi-stage fiscal union. There really is no alternative.
EurActiv updates its August 17, 2011 article Sarkozy, Merkel want Van Rompuy as ‘Mr Euro’. In a joint letter to European Council President Herman Van Rompuy, the two leaders said their proposal was for “a real economic government” for the euro zone,.
Zero Hedge reports Soros starts a three month countdown to D(oom)-Day
Ambrose Evans Pritchard reports The Week That Europe Stopped Pretending “Let’s not delude ourselves: If the euro falls apart, so will the European Union, triggering a global economic crisis on a scale that most people alive today have never experienced.” relates Joschka Fischer, Germany’s former vice-Chancellor.
Boston Herald Downtown’s incredible shrinking condo inventory
National Public Radio reports As Greeks Withdraw Cash, Banks Grow Vulnerable
3) … Bible Prophecy Reveals That Greece Is The First Domino To Fall As The Beast Regime Of Regional Governance Rises To Replace Crony Capitalism And European Socialism.
Many Austrian economists believe that there will be a breakup of the Eurozone, and a return to national currencies such as the Spanish peseta and the Greek drachma, as the Euro Project is an ill-conceived common currency scheme, exercised with poor oversight over fiscal spending, and impossibly based upon a fractional reserve lending.
I relate that money died in April 2011, when investors sold out of the World Major Currencies, DBV, and Emerging Market Currencies, CEW, and that global growth died in March 2012, when Steel Stocks, SLX, turned lower, and that credit died in April 2012, when investors sold out of Risk Assets, ONN. The fiat money system is dead and cannot be revived nor be sustained by any nation state, as the debt trade that wrote Neoliberalism is history. Under the new scheme of regional framework agreements, such as the two Greek Bailout agreements, the diktat money system of Neoauthoritarianism is rising, as destructionism is replacing inflationism. Out of creative destruction, diktat will come to provide both money and credit, as sovereign nations, and banking institutions collapse, in the soon coming Financial Armageddon, held forth in bible prophecy of Revelation 13:3-4, where the head of finance, commerce, trade, investment, lending and banking suffers an apparent mortal wound; but eventually recovers.
Mike Mish Shedlock writes in Nannycrats Proposals The “obtanium” is a eurozone breakup. The “unobtanium” is a fiscal nannyzone. And without a fiscal nannyzone and common bonds, the eurozone cannot stay intact. Eurozone Breakup is Destiny. A breakup is destiny. The important question is “how?”
The slow, painful, and highly disruptive breakup is for Greece to exit, followed by Spain, followed by Portugal, followed by Ireland, and ultimately Italy.The least painful way is for Germany to exit now.
The choice is not between pain and no pain, but on how soon to get it over with. Bear in mind, Spain, Italy, and Greece have much to do whether the choice is slow-and-painful or over-and-done. The PIIGS in general need to address work rules and pension reform. So does France. The immediate irony is Spain’s prime minister Rajoy says he wants this “Nannyzone”, but would he actually obey the dictates of the Nannycrats if they ordered Spain to live within it’s means and change union work rules as well? Clearly the answer is no, yet Rajoy argues forcefully for a “central nanny” enforcer.
Germany is going to suffer. No one should think Germany will get off Scot-Free. It’s export machine is going to break down either way. Debts owed to Germany will be paid back in depreciated euros not Deutschmarks. German banks can somewhat prepare for this scenario by dumping all external debt immediately.There are hundreds of other details to work out. However, there are thousands of very disruptive details to work out case-by-case if the nannycrats succeed in throwing billions or trillions more euros down the drain hoping to save the unsavable. Enough is enough. It’s time for economic writers to end these silly nannyzone proposals and instead concentrate on an intelligent discussion on how best to break apart the eurozone. The market is certainly moving in that direction even if the current crop of politicians is not.
In contrast to such thinking, I relate that the Apostle John wrote The Revelation of Jesus Christ which serves as a complement to Daniel’s Statue of Governance, foretelling of a series of world empires. The golden head (Babylon), silver chest and arms (Merdo Persia), bronze torso and thighs (Greece and Rome), two iron legs (the United States and the United Kingdom), and feet partly clay and partly iron (ten world regions of democracy and diktat). The statue stood until a rock (Jesus) struck its feet and crushed the statue into dust that blew away, Daniel 2:30-44. The purpose of The Book of Revelation is to provide clear insight into those “things which must shortly come to pass”as related in Revelation 1:1, meaning those events, which when they occur, fall like lined dominoes, one upon another.
God ordained in Revelation 13:1-4, that a Beast Regime of regional governance, rise from the profligate Mediterranean nation state of Greece, having ten horns, come to rule in the world’s ten regions, and having seven heads, come to occupy mankind’s seven institutions.
Not through any human action, but rather through the Sovereignty of God, Ephesians 1:1-23 and 2 Corinthians 5:17-18, Jesus has opened the first of the seven seals, Revelation 6:1-2, where has released the rider on the white horse, with a bow, but no arrows to effect global political and economic coup d’etat, with the eventual aim of introducing His Kingdom, Revelation 2:26-28.
The first Horseman of the Apocalypse is passing the baton of sovereignty from nation states such as Greece to sovereign regional leaders such as Angela Merkel and sovereign bodies as the Troika.
While Mike Mish Shedlock writes There are simply too many cultural and philosophical differences between countries in the eurozone to make the euro work. What can’t last won’t. The eurozone cannot last as we know it today, I relate out of Greece’s meltdown, as well as through Financial Armageddon, that is a global credit collapse and financial breakdown, Revelation 13:3, a One Euro Government, that is a European federal super state with unified political, economic, monetary, banking, and fiscal authority will emerge, as leaders meet in regional summits to waive national sovereignty and pool sovereignty regionally.
Germany will rise to be preeminent leading a type of revived Roman empire, where the periphery nations exist as client states. Germans cannot be Greeks, but all will be one, living in a regional gulag of totalitarian collectivism and debt servitude.
One of seemingly little authority, the little horn of Daniel 7:8, the king of fierce countenance of Daniel 8:23, the prince of the people of Daniel 9:26, the willful king of Daniel of 11:36-45, the one who comes in his own name of John 5:43, the lawless one of 2 Thessalonians 2:3, because he works in regional framework schemes of Daniel 8:23, to change our laws and our times Daniel 7:25, abrogating constitutional and historical law, and the Sovereign of Revelation 13:5-10, will rise to power with a Seignior, that is a banker, Revelation, 13:11-13, to govern the Euro zone. An inquiring mind asks, might today’s noted leaders, be the governors of tomorrow? Might the Sovereign be Herman van Rompuy, and might the Seignior, be Jenz Weidman or Olli Rehn?
Robert Wenzel in Economic Policy Journal article Keynes: A Deadly Ghost from the Past Who Keeps Reappearing, documents the origins of Crony Capitalism, that is Interventionist Capitalism, back to John Maynard Keynes. And Tyler Durden communicates Keynesianism is alive and well Progressive American think tank, Center For Economy And Policy Research begs Bernanke to bail out Spain. I relate that this economic system is in its dying days as its dynamos of global growth, global trade, profit and expanding debt are winding down; and in its place the dynamos of regional security, regional stability and regional sustainability, are powering up regional governance; regionalization will bring forth regional economic and political blocs to replace sovereign nation states. And Mr. Wenzel writes in article Soros predicts Euro will survive but could create German Empire, the banisters are pushing the Germans to a further bailout, and they are indeed using the crisis for a tighter fiscal union; in many ways such a union will look like a German empire with a hinterland.
John the Revelator communicates in Revelation 13:1-4 that God has designed regional governance to be unconquerable; yet this global menace can be resisted virtuously by the saints, by turning away from those who walk disorderly, and not according to the peaceable way shown by the Apostles, and by trusting in God who is faithful, until the end.