Financial Market report for Friday June 8, 2012; this is the tenth week of entry into the Second Great Depression,
The bonfire of the the world banks continued today, .with a slow burn as European Financials, EUFN, traded lower, (yet up 7.5% for the week), turning World Banks, IXG, lower, (yet up 5.4% for the week), while US Regional Banks, KRE, traded higher, this as Markets On Edge As Spain Blinks On Bailout and Obama Speaks Before Congress, Europe Must Stem Economic Crisis.
Today, Steel, SLX, Mining Stocks, MXI, EMMT, such as Copper, COPX, Uranium, URA, Rare Earth, REMX, Coal, KOL, and Aluminum, ALUM, traded lower. Asia Stocks led by Shanghai, CAF, Emerging Asia, GMF, and China Industrials, CHII, led Asia, EPP, lower, as China Financials, CHIX, blasted higher on China Central Bank easing as FT reports a surprise cut in interest rates by a quarter point, the first cut in rates since 2008.
And today, Utilities, XLU, traded higher as a number of Electric Utilities such as Duke Energy, DUK, and PGN, traded higher. This is the final risk on momentum trade; it is a left over relic of the bygone era of Neoliberalism as these stocks rose on low interest rates, this week’s rally in stocks, and terrifically lower prices for coal.
The see-saw destruction of fiat wealth has commenced as commodities, DBC, 1.7%, and stocks, VT, 3.6%, traded up this week, while bonds, BND, 0.6%, traded down, as the US Dollar, $USD, 0.5%, traded lower, and emerging market currencies, CEW, and major world currencies, DBV, traded up. FXA, 2.5%, SZR, 2.3%, FXS, 1.8%, BZF, 1.3%, FXC, 1.2%, FXB, 0.7%, FXF 0.7%, FXE. 0.7%, ICN 0.4%.
Agricultural commodities, RJA, 2.6%, CORN, 5.6%, SOYB, 4.3%, GRU, 4.0% WHET, 1.4%. and Oil, US 1.2%.
Stocks traded up this week as follows, EUFN, 7.5%, XSD, 5.8, IXG, 5.4, ITB, 5.2, QTEC, 5.1, XLF, 4.8, ONN, 4.7, IWO, 4.7, IGN, 4.7, PSCT, 4.5, XOP, 4.4, PSCE, 4.4, PNQI, 4.4, XBI, 4.3, BJK, 4.3, IWM, 4.2, SLX, 4.1, PSCH, 4.0, XLE, 4.0, PKB, 4.0.
Tyler Durden reports. The S&P 500 gained over 3.5% this week (with a dip-and-rip today on dismal volume). This is the best week of the year amid the lowest volume of the year (ex-holiday weeks). I comment that this dropped Volatility, TVIX, 29% for the week.
Since the 1950’s many have believed in fairy tales, such as the Cat In The Hat, the Dr. Seuss Character who wearing a tall, red and white-striped hat and red bow-tie, led the children in a riotous party, and then magically clearly up detritus.
The riotous economic and political party started with a number of ponzi finance schemes in the 1950s, such as Veteran loans, GSE lending, financial deregulation via Glass Steagall, the FASB 157 entitlement that allowed banks to value mortgages to manager’s best estimate rather than to market, the first Greek Bailout in May of 2010, that effectively made Jean-Claude Trichet the Seignior of the EU ECB Troika, providing seigniorag aid to primarily the banks owning Greek debt, and continued this week with the BBC reporting Angela Merkel Calls For A Political Union, which I am sure will begin with a Sovereign, such as Herman van Rompuy, ruling the EU.
Fate, neither any human action, nor evolutionary nature, determines all things, this being related in 2 Corinthians 5:17-18, and Ephesians 1:1-23. I have many fathers, that is starters, who have guided my faith such as Father Abraham, the father of genuine faith, and John Calvin, the father of the sound doctrine of Election. Yet, it is not so much, my faith, as it is the faith of Jesus Christ living in me, whereby I come to know myself as the elect of God, the very Israel of God, meaning Prince of God, and adding to that a seven step process that begins with virtue and ends in love, so as to partake of the Divine nature, experience His exceedingly great promises, and bear spiritual fruit pleasing to him, 2 Peter 1:1-10.
I believe that Adam and Eve lived in the Garden of Eden, and fell from grace; and as one of their offspring, I have often have gone ape, because I have a fallen carnal nature that competes with the nature of Christ. I have personally known many bad things and done bad things; these happen because of my ineptitude and fleshly impulses; yet God, who is faithful, has come to communicate many lessons through the bad things, and develop the person of His Son in me.
I don’t believe that people have evolved from hominoids; rather I believe according to Acts 17:26, that God appoints the times and places where people should live, and that He ordained them to be either fiat, that is having a mandate to live in philosophy, ethics or rules; or that He ordained them, from eternity past, to be elect.
I place faith in the Apostle John’s dream given to him by angels in his 90s, while on exile to the Isle of Patmos, this is known as the Revelation of Jesus Christ. And specifically in Revelation 13:1-4, I believe that God foretells of the formation of regional economic and political blocs, where the Beast regime of Neoauthoritarianism, with its seven heads symbolic of its domination mankind’s seven institutions, and ten horns symbolic of its rule in the world’s ten regions. This behemoth is currently rising from the profligate nation-state of Greece to replace the Banker of Neoliberalism.
This monster of totalitarianism, statism, and debt servitude, is the ten toed kingdom prophesied in Daniel 2:30-33, where ten toes of regional governance coalesce from a miry mixture of iron diktat and clay democracy, hence the ten toed kingdom of regional global governance.
Last Friday, June 1, 2012, was an pivotal day in mankind’s political and economic history, as Mario Draghi communicated that the Euro zone is unsustainable in its current form.
Mario Draghi’s words shattered the two iron legs of global economic, political and financial rule by the UK and the US, that have governed the world from the late 1700s to 2012. Wall Street Financial seigniorage, that is ability to provide moneyness, was dealt a mortal wound, as Financial Shares, IXG, fell 3.7%, turning World Stocks, VT, and US Stocks, VTI, lower. Mario Draghi’s words have set in motion a global sell off of financial stocks that will result in Financial Armageddon, that is a global credit breakdown and economic collapse, this being foretold in Revelation 13:3, where one of the seven heads, that is the institution of ecomics, banking, finance, and trade suffers what appears to be a fatal wound; but nevertheless recovers. Leaders will meet in summits and waive national sovereignty and pool sovereignty regionally.
The Neoliberal schemes of ponzi finance, that underwrote corporate profit and global trade, will be replaced by the Neoauthoritarian schemes of regional framework agreements, which provide for regional security, stability, and sustainability, through appointment of public private partnerships, and regional banking, credit, monetary, trade, and fiscal authorities, which replace sovereign nation states.
Ludwig von Mises Institute writes The fiasco of fiat money. There will never ever be a commodity money system as desired by the Austrian economists. The current fiat money system will be replaced with the diktat money system, where diktat will serve as both money and credit.
Eventually, the ten toes of regional governance, being non compatible building materials will eventually crumble, and a one world government, and a global dictator will arise, who will overthrow three global leaders, Daniel 7:7-8
The Ezekilel 38 War, the global Eurasia war that draws Russia to its destruction in Syria, that will engulf Iran, as well as Turkey and israel, is about to commence as Johanns Stern reports WSWS reports Calls for deployment of German navy against Syria The Süddeutsche Zeitung recently published an article calling for the participation of the German navy in a military intervention in Syria.
In today’s news
Bloomberg reports Europe Crisis Key Risk to U.S. Lies in Emerging Markets Impact. Porcelli believes Europe’s troubles may hit U.S. exports in a more roundabout way. Emerging markets such as Brazil, Mexico, and China have accounted for the bulk of U.S. export growth over the last few years. Since the recession began in 2007, exports to Brazil have increased by more than 70 percent. Emerging market countries get the majority of their lending from European banks. So if Europe continues to deteriorate and its financial system tightens, some emerging markets could lose a key source of financing, which in turn could squeeze their ability to keep buying U.S. goods. “That’s a very important aspect that can’t be overlooked,” says Porcelli.
The Telegraph reports British banks among the most unprofitable in the world. The British banking industry was the second most unprofitable in the world in 2011, according to an analysis of lenders in major economies
Fox Business Merkel: we’re ready to help stabilize eurozone.
In as much as the implosion of the Eurozone is at hand, and a EU Superstate is inevitable, according to Angela Merkel, I will most likely be reporting only once a week.