The US Dollar And US Bonds Rise As Stocks, Currencies, And Commodities Trade Sharply Lower As Europe Fears Surge That Greece Will Have Unmet Funding Needs, That Spanish Banks And Spain Itself Is Insolvent And That Ten Italian Municipalities Are Broke

Combined Financial Market Report for Monday July 23, 2012 and Tuesday July 24, 2012.

1) … On Monday, Bernard Condon, AP Business writes Stocks Sharply Lower As Europe Fear Surges.

The US Dollar, $USD, UUP, and US Debt, the Zeroes, ZROZ, 30 Year US Government Bonds, the US Ten Year Note, TLT, Build America Bonds, BAB, Long Term Tips, LTPZ, traded higher, as the Interest Rate on the US Ten Year Norte, ^TNX, traded to a new low at 1.44%, and as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened, to trade to trade near a recent low, as the Flattner ETF, FLAT, traded near a recent high.

Junk Bonds, JNK, Senior Loans, BKLN, Short Term Tips, STPZ, International Corporate Bonds, PICB, Corporate Bonds, LQD, traded lower.

World Government Bonds, BWX, traded lower on lower Major World Currencies, DBV, with the South African Rand, SZR, the Australian Dollar, FXA, and the Indian Rupe, ICN, leading the way down. Bloomberg reports Euro Drops to 11-Year Low Versus Yen Before Spain Auction.

Emerging Market Bonds, EMB, traded lower on lower Emerging Market Currencies, CEW,

Utilities, XLU, US Preferred, PFF, and Biotechnology, XBI, traded lower from last week’s highs..

Reversing a six week trend, the small cap pure value shares, RZV, fell more than the small cap pure growth hares, RZG, communicating that competitive currency devaluation is underway again today. Specialized health care companies, ACHC, FMS, HLS, DVA, and MD traded lower. Gaming Shares, BJK, Credit provider, GCA, Office Supply Company, ACCO, and Apparel Retailiers, CROX, EXPR, BODY, HOTT, and GCO.

Australian Small Caps, KROO, South Korea Small Caps, SKOR, Russia Small Caps, ERUS, Brazil Small Caps, BRF, and India Small Caps, SCIF, led the World Small Caps, VSS, lower.

Russia, RSX, and India Infrastructure, INXX, led the BRICS, EEB, lower.

Taiwan, EWT, adnd South Korea, EWY, led Asia, EPP, lower.

Greece, GREK, Italy, EWI, Germany, EWG, Austria, EWO, Sweden, EWD, Europe, VGK, the UK, EWU, and Switzerland, EWL, traded lower. Mexico, EWW, fell from a double top

Emerging Market Mining Shares, EMMT, traded strongly lower, as Copper Miners, COPX, Rare Earth Miners, REMX, and Junior Gold Miners, GDXJ, traded sharply lower.

The National Bank of Greece, NBG, Deutsche Bank, DB, Europe Financials, EUFN, Brazil Financials, BRAF, South Korea’s SHG, KB, WF, India’s IBN, and HDB, the UK’s RBS, BCS, and HBC, and the Too Big To Fail Banks, RWW, led world banks, IXG, lower.

Prostate drug manufacturer, MDVN, rises to 52 week high.

Oil, USO, Copper, JJC, and Timber, CUT, led commodities, DBC, lower.

2) … In Monday’s news and commentary
Business Insider relates This Homicide Map Shows How Bad Things Are Getting In Chicago. (Hat Tip to Gary of Between The Hedges.

Open Europe relates Spanish crisis reaches critical stage as borrowing costs top 7.5%;  Up to six Spanish regions set to request financial aid from Spanish state
Spanish ten year borrowing costs reached a euro area record high of 7.54% this morning, with the rates on shorter term debt even rising as market jitters over Spain increase. Following the news on Friday that Valencia will seek financial aid from the central government, Ramón Luis Valcárcel, the governor of Murcia, said in an interview yesterday that his region could also seek a bailout soon, adding that the request could be for between €200m and 300m. On Saturday, El País suggested that up to five other Spanish regions are considering seeking financial assistance, including Catalonia and Andalusia – the country’s two most populous regions. However, in an interview with Spanish State TV Andreu Mas-Colell, Catalonia´s finance chief, dismissed such rumours. El Pais reported on Saturday that Spain’s 17 regions have €140bn in debt, €36bn of which needs to be refinanced this year. Spanish Economy Minister Luis de Guindos this morning ruled out a full sovereign bailout for Spain and will meet his German counterpart Wolfgang Schäuble in Berlin tomorrow to discuss the Spanish crisis, reports El Mundo.
Meanwhile, Spanish Foreign Minister José Manuel García Margallo launched a fresh call for action from the ECB on Saturday saying, “Somebody has to bet on the euro and now, given the architecture of Europe isn’t changed—who can make this bet but the ECB.” However, in an interview with Le Monde published the same day, ECB President Mario Draghi pre-emptively dismissed such calls stating that the “[ECB’s] mandate isn’t to solve the financial problems of states.”
El País El País 2 El País 3 El Mundo El Mundo 2 El Mundo 3 El Mundo 4 Expansión FT FT 2 CityAM WSJ Irish Times BBC Guardian FT 3 CityAM 2 WSJ 2 Telegraph: Evans-Pritchard CityAM: Evans Irish Times: Woodworth Handelsblatt

IMF set to withhold future funding from Greece due to significant delays in meeting programme conditions; German government rejects renegotiation of bailout package or further aid to Greece
Der Spiegel reported over the weekend that, according to unnamed EU officials, the IMF is considering withholding future tranches of Greek bailout aid since it is clear that Greece will not be able to make the target of a debt to GDP ratio of 120% by 2020. Bloomberg reports that delays in implementing reforms mean Greece could need between €10bn and €50bn in additional financial aid, something which the IMF and some eurozone states are unwilling to provide.
Meanwhile, Süddeutsche cites German government sources as saying that it would be “unthinkable” for Angela Merkel to ask the Bundestag to approve a third rescue package for Greece, while vice-Chancellor and FDP leader Philipp Rösler is quoted as saying that a Greek exit “had lost its terror”. Both German Foreign Minister Guido Westerwelle and CDU Parliamentary leader Volker Kauder had interviews over the weekend putting pressure on Greece.
Spiegel Süddeutsche Kathimerini Kathimerini 2 CityAM Bloomberg Irish Times WSJ Irish Times 2 WSJ 2 FAZ

Euro Intelligence relates in its for fee newsletter, which I recommend that one subscribe to, 10 Italian municipalities are at the verge of a financial crisis. Over 10 Italian big cities are on the verge of financial collapse, La Stampa claims. Debts, derivatives and mistakes: the Italian municipalities are in crisis. After the default of Alessandria, a big city in Piedmont (North-Western Italy), there are several risks for Turin, Milan, Napoli, Palermo, Reggio Calabria and other cities with over 50,000 inhabitants. “Too much debts, over 10 metropolitan cities should ask to Corte dei Conti (the Italian Court of Auditors) for an orderly default,” Graziano Del Rio, chairman of Italian Association of Commons, said to La Stampa. In last week the Sicily has asked for a financial support and has claimed over €1bn of credits to Italian government.

Doug Noland writes My thesis remains that, with Spain now fully engulfed, the European debt crisis has irreversibly afflicted the “core. Following in the footprints of Greece, Portugal and Ireland, markets assume the 100bn euro bailout will prove just the opening tranche of what would be an enormous financial commitment necessary to stabilize Spain within the eurozone.  In particular, Spain’s banking system is large and fragile.  And with Spain succumbing to crisis dynamics, the markets will now increasingly anticipate Italy as the next wobbling domino.  Italian banks appear especially susceptible, as does the European banking system more generally.  And let’s not forgot Greece, a troubled nation that very well could be a euro short-timer.  There is ample justification for markets further questioning the viability of euro monetary integration.

Christopher Drier of WSWS writes SYRIZA backs Greek government’s capitulation to the EU. The opposition party SYRIZA has reneged on its pre-election promises and now accepts the EU’s draconian conditions for financial aid to Greece.

Gary of Between The Hedges relates Wirtschafts Woche reports Samaras coalition may soon collapse, Papaconstantinou says. The Greek government led by Prime Minister Antonis Samaras may soon collapse amid conflict caused by his New Democracy party’s domination of the coalition, according to comments made by former finance minister George Papaconstantinou said. Samaras has overstaffed the Cabinet with New Democracy ministers “who weren’t exactly a success” in the last regime, Papaconstantinou is cited as saying. The Socialist Pasok party and the so-called Democratic Left Dimar party are underrepresented in the coalition, he said, adding he is “not optimistic” the alliance can survive.
Mike Mish Shedlock writes German Vice Chancellor “very skeptical” Greece can be rescued.  Robert Wenzel writes Is Germany about ready to kick Greece out of the Eurozone?  If Greece is kicked out of the EZ, it could be the best thing that could happen to it. It could default on its debt. Start out fresh with a new sound currency and eliminate the various government spending programs that caused the financial crisis in the first place.

I relate, Greece as well as the other periphery nations, such as Portugal, Italy, Ireland, and Spain, cannot be rescued; and according to bible prophecy of Revelation 13:1-4, they will not be kicked out of the Eurozone, as the Global Beast Regime of Totalitarian Collectivism, will rise from the profligate nation states of Italy and Greece, to establish a type of revived Roman Empire in Europe. The two iron legs of US and UK global hegemony, that have ruled the world since the late 1700s, seen in the Statue Of Empires.seen in Nebuchadnezzar’s Dream, of Daniel 2:17-44, will give way to form ten toes, that is ten regions of economic and political governance.  These being mired in the iron of diktat and the clay of democracy, will eventually crumble; and a one world government, with a global king coming from Europe, will rule mankind for 3 and ½ years, Daniel 9:25.

3) …On Tuesday, Chuck Mikolajczak of Reuters writes Wall Street Hit by Europe Woes: Apple Falls Below $600

Stocks added to sharp losses on Tuesday, with all key S&P sectors in negative territory amid ongoing worries over Spain and after officials said Greece may need further debt restructuring.

For the first two days, Transports, IYT, have fallen more than Industrials, IYJ, establishing a very bearish market sell off. And the Small Cap Pure Value Shares, RZV, have fallen more than the Small Cap Pure Growth Shares, establishing that competitive currency devaluation is underway.

Concerns about the euro zone focused on Spain’s high borrowing costs as the country paid the second highest yield on short-term debt since the launch of the euro. European Union officials said Greece had little hope of meeting the terms of its bailout.

Spanish five-year government bond yields rose above 10-year yields for the first time since June 2001 as investors fretted about the possibility that Madrid may need a full-blown sovereign bailout. The 10-year note last traded at around 7.6 percent.

The US Dollar, $USD, UUP, and US Debt, the Zeroes, ZROZ, 30 Year US Government Bonds, the US Ten Year Note, TLT, Build America Bonds, BAB, Long Term Tips, LTPZ, traded higher again today, as the Interest Rate on the US Ten Year Norte, ^TNX, traded to a new low at 1.40%.

Today, it was the Swedish Krona, FXS, and the Euro, FXE, leading currencies lower. Bloomberg reports Euro Near 11-Year Low Versus Yen on Spain, Italy Concern..

Spain, EWP, and Italy, EWI, traded strongly lower.

US Infrastructure, PKB, traded lower as Beacon Roofing, BECN traded sharply lower. Coal, KOL, Aluminum, and Steel, SLX, continued strongly lower again today. And Airlines, FAA, plummeted.

Banco Santander, and Deutsche Bank, DB, led European Financials, EUFN, lower.

Commodities, DBC, traded lower on lower as Agricultural Commodities, RJA, and JJA, traded down from their spike up high. Natural Gas, UNG, continued trading higher.

4) … In Tuesday news and commentary
Bloomberg reports China’s Stocks Decline to Lowest Since 2009 on Economy Concern. China’s stocks fell, dragging the benchmark index to its lowest level since 2009, on concern the slowing global growth will hurt earnings

Mike Mish Shedlock writes Spanish Finance Minister in Germany pleads for temporary credit line, and writes Social media panic in Italy, and writes Ten major Italian cities on verge of financial collapse, and writes Full Spanish bailout coming up.

Open Europe relates that FT notes that UKIP leader Nigel Farage has amassed a Europe-wide following on YouTube, with Italian, Greek and even Slovak versions of his speeches routinely pulling in hundreds of thousands of views.

I am considered a heretic and one involved in cults, in by most christians, as I believe in a reformed doctrine led by John Calvin, John Gill, and today by John McArthur, as well as recovery doctrine led by Witness Lee.

God’s Word presents that God has appointed Jesus Christ for the dispensation of the fullness of times; Witness Lee calls this The Economy of God. The Apostle Paul in Ephesians 1:10, communicates that Jesus is God’s administrative plan and element for experiencing life. There is no human action as perceived by natural law human philosophy. Christ is in the process of overseeing seven dispensations or ages:  1)  The Fall From Grace, 2) The Adddition Of The Law and Ordinances, 3) Grace And Truth, 4) Regional Governance, 5) Condemnation By The Two Witnesses, 6) The Kingdom of God On Earth, and 7) The New Jerusalem.

Christ was present in the Tree of Life in the Garden of Eden, He gave the Law and Ordinances, He came as Grace and Truth, John 1:17, and He has ordained that democracies and sovereign nation states be replaced by a ten toed king of regional sovereign leaders and sovereign bodies, Daniel 2:30-33, where toes, partly of iron diktat and partly of clay democracy, replace the iron global hegemony of the UK and the US, that has governed the world since the late 1700s. Regional governance is coming as the ten head seen in the beast regime of Revelation 13:1-4; this monster of totalitarian governance will occupy in all of mankind’s seven institutions. Jesus released the First Horseman of the Apocalypse, Revelation 6:1-2, to effect global economic and political coup d’etat, as the baton of sovereignty was passed from Greece to the Troika when Greece was bailed out when it lost its monetary sovereignty in May of 2010.

The Apostle Paul taught in Ephesians 3:10-11, that the All Inclusive Christ, another Witness Leeism, is to be one’s total life experience; there is neither Gentile or Jew, Austrian Economist or profligate Greek, psychopath or empath, as there is only the person of Christ with His Faith, His Virtues and His ethics living in the believer expressing God’s grace and truth, thereby overcoming the world, Revelation 12:7-11.


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