Financial Report for Monday August 13, 2012
1) … World Currencies, DBV, and Emerging Market Currencies, CEW, turned World Stocks, VT, lower today. Base Metals, DBB, led Commodities, DBC, lower. Of note, the chart of Gasoline, UGA, shows a trade lower. The currency demand curve, RZV:RZG, manifested bearish harami, portending another major turn lower, since it turned massively lower in March 2012. Debt deflation, that is currency deflation will be driving stocks lower. Small cap mining shares GDXJ, CNDA, and SSRI traded lower today, suggesting a turn lower from their recent rallies. The EUR/JPY and the Euro, FXE, traded higher today, but the trend since August 7, 2012, is now down. The AUD/JPY, and the Australian Dollar, FXA, are trading down from their August 9, 2012 highs. Gary of Between the Hedges notes, The CRB Commodities Index is now down -19.3% since May 2nd of last year despite the recent surge in food/energy prices; it was at this time that Major World Currencies, DBV, turned lower on fears that a debt union had formed in the Eurozone. And this week, the second week of August 2012, marks another turn lower in Major World Currencies, DBV, and Emerging Market Currencies, CEW, as the Morgan Cyclicals Index, ^CYC, traded lower on fears of a global Eurasia war, as well as fears of diminished global growth and corporate profit opportunities.
AP reports World stock markets fell Monday after a slowdown in Japan’s growth gave investors another reason to worry about the health of the global economy. Japan’s economy grew at a slower than expected annual rate of 1.4 percent in April-June as Europe’s debt crisis and the strong yen weighed on the country’s powerhouse export sector. That was a sharp drop from a revised 5.5 percent in the previous quarter. The news comes on top a slew of reports out of Asia that point to a region losing momentum. In mainland China, the Shanghai Composite Index fell 1.5 percent to 2,136.08. The Shenzhen Composite Index slid 2.1 percent to 887.65. Shares in agriculture-related companies led the gains while real estate and cement producers weakened. Chinese construction shares fell. Shanghai-listed Fujian Cement Inc. dived 4.4 percent. Hong Kong-listed China National Building Material Co. lost 2.9 percent. Poly Real Estate Group fell 4.1 percent in Hong Kong.
Robert Wenzel of Economic Policy Journal relates Bank of Israel is preparing for aftermath of an Israeli dtrike on Iran. Governor of the Bank of Israel Stanley Fischer said that the BOI has formed a special task force to deal with the economic crisis that is likely to follow an Israeli strike on Iran’s nuclear facilities, Ynetnews reports, “A strike would have dire effects; we are gearing for such a situation,” he told Channel 2 news over the weekend.
Shanghai, CAF, -2.1%
South Korea, EWY, -1.2%, with electronics exporter, LPL, trading lower and Banks, KB, WF, and SHG, trading lower.
Sweden, EWD, -1.4%
South Africa, EZA, -1.8%
Australia, EWA, -1.0%
Israel, EIS, -5.0%
Cement Manufacturers, CRH, CX, JHX, TXI, traded lower, while EXP rose on short sell covering.
Small Cap Pure Value, RZV, -0.6%, with GSA, CENT, SHFL, TBI, CATM, ELRC, trading lower.
Small Cap Energy, PSCE, -1.5%
Copper Mining, COPX, -1.9%
Steel, SLX, -1.4% with SCHN, CHOP, PKX, CLF, AKS, X, STLD, CMC, WOR, SXC, NWPX, SID, MTL, MT, GGB, trading lower.
Metal Manufacturing, XME, -2.4% with STLD, RS, NUE, CRS, ATI, trading lower.
Semiconductors, XSD, -0.6% with TSEM, TSM, FCB, TQNT, CCMP, HITT, and DIOD, trading lower.
Energy Production, XOP, -1.4%, with Chevron, CVX, and Exxon Mobil, XOM, traded lower from recent highs.
Coal, KOL, -2.0%
Rare Earth Mining, REMX, -1.3%
Electrical Equipment Manufacturers, ETN, ROK, AIMC, AMRC, BGC, traded lower,.
Automobile Parts Suppliers, CVGI, MTOR, TWI, traded lower.
2) … We are witnessing the change of global empires, as foretold in Bible prophecy of Daniel 2:30-33, where the iron hegemony of the UK and the US, is shifting to the ten toed kingdom of iron democracy and clay democracy of regional goverance, as the dynamos of global growth and corporate profitability are winding down the Neoliberal Banker Regime of crony capitalism and European Socialism; and powering up the dynamos of regional security, stability and sustainability, powering up the Neoauthoritarian Beast Regime of totalitarian collectivism, Revelation 13:1-4; as the economy of God, Ephesians 1:10, is operating for the fullness of times, to introduce the Kingdom of Jesus Christ on Planet Earth, Revelation 2:26-28..
Germany will rise to lead a revived Roman Empire in Europe over peripheral the vassal PIIGS. Angela Merkel, is God’s appointed forerunner, a precursor, of one greater. A diktat money system is rising to replace the fiat money system. There is waiting in the stage of Europe’s wings, the most capable of sovereigns. Soon the Sovereign Lord God, Ephesians, 1:1-23, will open the curtains, and into the limelight will step the Sovereign, the EU’s Leader, Revelation 13:5-10; he will be accompanied by the Seignior, the EU’s Finance Minister, Revelation 13:11-18. Candidates for the Sovereign include Olli Rehn, Herman van Rompuy, Jean-Claude Juncker, and Guido Westerwelle; and candidates for the Seignior include Jens Weidmann and Mario Draghi. The Telegraph reports Olli Rehn warns of ‘decisive juncture’ in eurozone as he reveals ‘economic and monetary union 2.0’. Olli Rehn, the vice-president of the European Commission, has warned that the eurozone is at a “decisive juncture” as he revealed his plans for “Economic and Monetary Union 2.0”.
Justin Raimondo of Antiwar relates The Marketing of Paul Ryan; Romney’s ‘libertarian’ running mate is anything but … The decline of imperial America.
Mike Mish Shedlock writes Europe’s Most Dangerous Politicians: Angela Merkel, Francois Hollande, David Cameron, Jean-Claude Juncker, Jose Barroso, Mario Monti, Herman Van Rompuy. Der Spiegel has published an inane article about Europe’s 10 most dangerous politicians. Der Spiegel is not only clueless, but dangerous, because it fans myths that the eurozone can survive intact (it cannot), and the myth the euro is worth saving in the first place (it’s not). Angela Merkel, Chancellor of Germany, deserves special mention (as one of Europe’s most dangerous politicians). Merkel is widely blamed for not doing enough to keep the eurozone crisis from spreading. However, her hands are tied by constitutional issues as well as political issues within her coalition. Yet, every step of the way Merkel caved in to demands of those desperately attempting to save the unsaveable. Nothing is more dangerous that ranking politicians on a mission to do the wrong thing, hoping to preserve their legacy. Merkel is an extremely skilled, as well as widely respected if not charismatic leader, with a seriously misguided notion there needs to be a European nannyzone super-state. Worse yet, she appears willing to sell her soul and the future of Germany to secure that outcome. As noted above, nothing is more dangerous that ranking politicians on a mission to do the wrong thing, hoping to preserve their legacy.Without a doubt, Merkel’s attributes make her the most dangerous politician in Europe.
Open Europe relates Former German Finance Minister backs eurozone debt-pooling. In an interview with Süddeutsche published over the weekend, former German Finance Minister and one of the SPD’s most likely chancellor candidates Peer Steinbrück became the latest senior party figure to publicly back eurozone debt-pooling and closer fiscal integration, arguing that “Germany ought to make its creditworthiness and its solidarity available to weaker countries, for which it could demand something in return. There must be an EU authority which will have direct access to national financial policy making.” Steinbrück also dismissed opposition to debt-pooling as “featherbrained”. Meanwhile, SPD Chairman Sigmar Gabriel also defended the policy, arguing on Deutschlandfunk that “Mrs Merkel is [already] establishing a secret debt union. We are constantly ratifying new bailout funds for which Germany is liable.”
However, a new TNS Emnid poll published by German magazine Focus found that 52% of respondents were opposed to joint debt liability between states, with 31% in favour. FAZ’s political editor Rainer Hank warns that “Europe risks breaking up”, adding that calls for a “political union” are “nothing more than a fantasy of poets.” He writes, “It’s time to save Europe from the European saviours and put forward alternatives”, and calls for “a strengthening of national sovereignty…which is often dubbed as going backwards, if not anti-European.”
Reuters Süddeutsche Welt am Sonntag: Schuster Dow Jones Hamburger Abendblatt Welt FAZ: Hank
Zero Hedge reports taly’s latest record debt load: bigger, faster, more.
Alex Lantier of WSWS reports Egyptian President Mursi claims military junta’s dictatorial powers. Egyptian President Mohamed Mursi sought to assume the dictatorial powers of the Supreme Council of the Armed Forces (SCAF) and force its leaders to retire.
Niall Green of WSWS reports Clinton visits Turkey to step up Syrian proxy war. Washington is intensifying its bloody intervention to overthrow Syrian President Bashar al-Assad.
Ester Galen of WSWS reports Detroit to cut 81 percent of water and sewage jobs. Mayor Dave Bing and the Detroit Water Board have announced support for a plan to cut 1,600 jobs.
Jean Shaoul of WSWS reports Israeli cabinet reveals draconian austerity budget. Israel’s cabinet has approved austerity measures aimed at increasing taxes by NIS13 billion ($3.25 billion) and slashing state expenditure by NIS12 billion ($3 billion).
Calculated Risk reports that The Community’s Bank of Stamford, CT, is a troubled bank;.and the Stamford Advocate reports that it is the state’s only minority-owned bank and its loan portfolio is primarily made up of commercial loans in urban centers of Bridgeport, New Haven and Hartford. Why the banking authorities don’t shut banks like this one down is beyond me.