Financial market report for the week ending Friday August 24, 2012; this is twentieth week of entry into the Second Great Depression.
The see saw destruction of fiat wealth is underway as Bonds, BND, traded higher and World Stocks, VT, traded lower as Euro-zone business activity continued to shrink at a steep pace in August, with a further deterioration in Germany sharpening fears that the bloc’s sovereign and banking crisis wracked economy is in recession; and as the US government reported a slight increase in unemployment benefit applications last week signaling economic contraction.
Steel, SLX, Metal Manufacturing, XME, Coal, KOL, Global Agriculture, PAGG, Retail, XRT, Banks, KRE, Nasdaq 100, QTEC, Semiconductors, XSD, Shipping, SEA, JPMorgan Alerian MLP, AMJ, and Utilities, XLU, traded strongly lower. Banco Santander, SAN, led European Financials, EUFN, lower. India Steel Stocks, led India Infrastructure, INXX, lower. Brazil Steel Stocks, led Brazil Infrastructure, BRXX, lower. Telecom, VOX, and Utilities, XLU, continued lower.
Caterpillar, CAT, traded sharply lower as Bloomberg reports Caterpillar cuts China production as Digger Slump reaches mining. Xu Biao could sit in his office waiting for orders to roll in during a Chinese building boom two years ago. Now, he’s hitting the road trying to drum up business. “Life is difficult,” said Xu, a sales manager at Maanshan Fangyuan Slewing Ring Co., which supplies parts to Sany Heavy Industry Co., XCMG Construction Machinery Co., and other equipment-makers. “Every client is cutting production.” Caterpillar which gets 25 percent of sales in Asia, Komatsu, and Sany have all slashed output in the world’s biggest construction equipment market this year as a demand slump caused by slower economic growth spreads from building to mining. Sales of large excavators, mainly used by miners, last month plunged the most since at least January 2009, contributing to the 15th straight decline in the overall market.
The currency demand curve, RZV:RZG, manifested bearish engulfing communicating that competitive currency devaluation is underway, which is confirmed in that Major World Currencies, DBV, and Emerging Market Currencies, CEW, are trading below their early August 2012 rally highs.
Gold, GLD, and Silver, SLV, popped higher, drawing up the Euro, as the US Dollar, $USD, UUP, fell lower, on the failure of the world central banks’ monetary authority. Commodities, DBC, and USCI, manifested bearish engulfing. The chart of the Steepner ETF, STPP, and the interest rate on the US Ten Year Note, ^TNX, show a rise during August 2012 to 1.67%, documenting that world central banks have lost their monetary authority. James Pethokoukis, of the American Enterprise Institute write in The Business Insider The end of US economic growth. Associated Press reports Orders fall for most durable goods in July. And Associated Press reports Weak recovery leaves laid-off US workers struggling to find new jobs; most take pay cuts. Bonds, BND, are now trading below their August 2012 high, despite Junk Bonds, JNK, International Corporate Bonds, PICB, Emerging Market Bonds, EMB, rising to new highs, and International Treasury Bonds, BWX, rising to its May 2012 high. Charles Mead of Bloomberg reports : “Yields on corporate bonds worldwide fell to a record low. Borrowing costs for the most creditworthy to the riskiest companies fell to an unprecedented 3.76% yesterday, from 3.8% on Aug. 21. Yields on global investment-grade debt dropped to a record 2.97% .” Doug Noland reports M2 (narrow) “money” supply surged $51.6bn to a record $10.070 TN. I relate that the fiat money system is failing and will be replaced by the diktat money system, where diktat serves as both money and credit.
China Infrastructure, CHXX, and Industrials, CHII, led China, YAO, lower as Bloomberg reported China’s stocks fall, head for weekly loss. China’s stocks fell, extending weekly losses for the benchmark index, after PetroChina Co. posted a decline in profit and the Xinhua News Agency reported the government is studying further measures to strengthen its control of the property market. PetroChina, China’s biggest oil producer and the most heavily weighted stock on the Shanghai Composite Index, retreated after it reported a 6 percent drop in first-half net profit. Bank of China Ltd. paced declines for lenders after it reported the slowest increase in profit in three years. Poly Real Estate Group Co. tumbled to a four-month low. The government is “closely monitoring” changes in the real estate market and has ordered local governments not to relax property controls, the unidentified official with China’s Ministry of Housing and Urban-Rural Development was quoted as saying in the Xinhua report. And Mike Mish Shedlock writes China flash manufacturing PMI at 9-Month low, new export orders plunge at sharpest rate since March 2009.
Homebuilding Stocks, ITB, continued to a new high. The Madison Square Garden Company, MSG, jumped 4% to a new high. Biotechnology stocks, AMGN, CBST, and REGN, rise to new highs as is seen in this ongoing Yahoo Finance Chart. Mortgage REITS, REM, such as STWD, rose to new highs. Bloomberg reports Retail gasoline in U.S. rises to record high for season. The chart of UGA shows rise to a new high. Natural Gas, UNG, trades lower on the day, week, and month.
Raw Story reports Cardinal Dolan to give closing prayer after Romney’s nomination Clergyman Dolan has received criticism this year for his handling of sex abuse cases. Earlier this year, it was revealed that he authorized paying accused priests to leave the church while he served as the Archdiocese of Milwaukee. Dolan has also fought against proposals to ease the statute of limitations for sexual abuse cases, giving victims a chance to file lawsuits against the church despite how long ago the alleged crime occurred.
God is calling for overcomers as the world is pivoting from choice to diktat as the Milton Friedman Free to Choose, Neoliberal, Banker Regime is being replaced by the Regional Governance, Neoauthoritarian, Beast Regime. .
In August 2012, the world entered into a new era, the age of devolution, as BBC reported Mario Draghi, said, ”he would do whatever it takes to preserve the euro”. And as Eva Kuehnen of Reuters reported Mario Draghi and the ECB Governing Council to draw up plans for further bond purchases to support price stability and will consider further non-standard monetary policy measures according to what is required to repair monetary policy transmission. The European Central Bank will draw up a mechanism in the coming weeks to make outright purchases to stabilise stressed euro zone borrowing costs, ECB President Mario Draghi said on Thursday. “The Governing Council, within its mandate to maintain price stability over the medium term and in observance of its independence in determining monetary policy, may undertake outright open market operations of a size adequate to reach its objective.” Draghi said after the bank kept euro zone interest rates at 0.75 percent. “The Governing Council will consider further non-standard monetary policy measures according to what is required to repair monetary policy transmission. In the coming weeks we will design the appropriate modalities for such policy measures.”.
Traditional sovereign authority is being replaced by regional monetary authority and political authority; regional blocs as called for by the Club of Rome in 1974, are rising to replace sovereign nation states. Open Europe blog Open Europe research Reuters City AM Irish Times.reports German banking association backs new supervisory powers for ECB. Germany’s BDB banking association, which represents Deutsche Bank and Commerzbank among others, has backed proposals to give the ECB broad supervisory powers, arguing that “the influence of national politics in supervision would be removed.” And Reuters reports Merkel and Hollande unite in tough message for Greece and AP reports Germany’s Merkel and France’s Hollande: Greece must keep pursuing key economic reforms and Ambrose Evans Pritchard reports Germany backs Draghi bond plan against Bundesbank.Germany’s director at the European Central Bank has thrown his weight behind mass purchases of Spanish and Italian debt to prevent the disintegration of the euro, marking a crucial turning point in the eurozone debt crisis. And Christoph Dreier, in WSWS writes German chancellor demands tougher austerity in Greece. And the WSJ reports Germany Tells Athens to Stick to Plan German Chancellor Angela Merkel said she wants to keep Greece in the euro zone through a regime of painful austerity, after Greek Prime Minister Antonis Samaras made an impassioned appeal that after six years of recession his beleaguered country needs breathing room. The two leaders were speaking at a news conference Friday after talks in the Berlin chancellery, capping a week in which Berlin and Athens exchanged verbal blows in the media over whether Greece should be allowed to slow down its efforts to overhaul its economy and cut its deficit. Mr. Samaras has argued in a series of high-profile interviews that Greece needs time to get its economy growing again. Ms. Merkel insists Greece stick to its commitments. “I want Greece to remain a part of the euro zone and that’s what I am working on,” Ms. Merkel said. “We expect from Greece that the promises that were made are implemented, that actions follow words.”
Philosopher Andre Glucksmann writes in Spiegel that Pursuing a United States Of Europe is the wrong goal. Yet the Apostle Paul communicates that administration plan of Jesus Christ, Ephesians 1:10, for the fullness of our times, is that of regional governance as foretold by Daniel in Daniel 2:30:-33. And John The Revelator, relates that there is no human action, rather Jesus is acting sovereignly to introduce his kingdom on planet earth, Revelation 2:26-28, by bringing forth the beast regime of totalitarian collectivism to destroy all existing economic and political life, Revelation 13:1-4. All of mankind’s seven human institutions and every one of the world’s ten regions will be occupied by the most vicious kind of government that the world has ever seen.
In the age of deleveraging and derisking, sovereignty will no longer come from nation states; instead sovereignty will come regional leaders in Berlin and Brussels, as well as the ECB having been granted new monetary authority through regional framework agreements.
Seigniorage, that is moneyness, will no longer come from securitization of debt, for example, in Mortgage REITS, STWD, Subprime Automobile Lenders, NICK, Junk Bonds, JNK, Senior Loans, BKLN, Sovereign Debt, ZROZ, EDV, TLT, BWX, Emerging market Bonds, EMB, or Municipal bonds,EMB; nor from extension of credit, by lenders such as DFS, MA, V, COF, AXP, as seen in this ongoing Yahoo Finance Chart; nor leveraged buyout deals, PSP; instead seigniorage will come from diktat and debt servitude.
Are you an overcomer, that is are you one keeping His Word of endurance, and not denying His Name; are you relying on hidden manna and have you received your new name?
In Revelation 12:11, those in the Philadelphia Church, that is the church of Brotherly Love, are commended for overcoming Lucifer, by the blood of the Lamb, and the word of their testimony, they love not their life even to death. One can reflect on Living Stream Ministry Hymns #1270 to #1273, #894, and #889, to become the Overcomer.
In Revelation 3:8, those in the Smyrna Church, that is the church married to the world, are told to keep, Christ’s Word (of endurance, perseverance, and long suffering), and not to deny the His Name, that is not to deny his Presence and Authority. To keep his word is bear rejection and persecution. The word keep here is Strong’s word #3083, and means to observe, not guard. One is to maintain His Word as a resource so it does not go stale or go sour. One can reflect on Hymns #816, and #817 to aid one in keeping God’s Word.
In Revelation 2:10, the Lord commands, “Be Faithful unto death and I will give you the crown of life”.
One can reflect on Hymn #161 to appreciate the Lord’s faithfulness … and Hymn #472, to instill a willingness to suffer … and Hymn #473, to understand that one possesses all in the Lord..
In Revelation 2:17, the Lord promises “To him who overcomes, I will give some of the hidden manna. I will also give him a white stone with a new name written on it, known only to him who receives it”
Hymns for becoming fully consecrate to the Lord include
Answering the Call, #470,
Acknowledging the Lord, #466- 467,
Suffering with the Lord, #472
Separated unto the Lord, #438
Abiding in the Lord, #561-567
Trusting the Lord, #568-578
Following the Lord, #460-462
Resting On The Lord, #579-581
Living In The Lord, #455-459; 588
Serving The Lord, #460-465
Walking With The Lord, #587
Reflecting The Lord, #592.