Financial Market Report for Wednesday, February 6, 2013.
Agricultural Commodities, JJA, and Base Metals, DBB, traded lower. Oil, USO, and Unleaded Gas, UGA, traded lower, but recovered as Bespoke Investment Group reports Crude Oil and Gasoline stockpiles both increase. Commodities, DBC, and US Commodities, USCI, traded only slightly lower to strong support.
Commodity Currencies, CCX, traded slightly lower as the Australian Dollar, FXA, fell sharply, after the Australian Central Bank announced a decision not to reduce interest rates. Currency traders are calling, that is bringing forth, competitive currency devaluation. Not only is the Yen, FXY, trading lower, but the Canadian Dollar, FXC, -0.9%, the British Pound Sterling, FXB, -2.7%, and now the Australian Dollar, FXA, -1.6%, as is seen in their Google Finance Chart for the last month.
The US Dollar, $USD, traded higher; its 200% ETF, UUP, traded up from a multiple bottom. The US Dollar, is going to rise fairly strongly soon, as investors derisk strongly out of Stocks, VT, specifically out of Global Producers, FXR, and out of Nation Investment, EFA, and Small Cap Nation Investment, IFSM, and as investors delever out of Commodities, DBC, which will induce Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower, if currency traders do not call these lower. Soon, the EUR/JPY will fall lower from today’s February 6, 2013, close at 126.35, seen in this Action Forex Chart, causing unwinding of carry trade investments worldwide; an intraday top in the EUR/JPY came in on February 6, 2013, at 127.60 .
With a rising US Dollar, $USD, UUP, at least for a period of time, there is now no International Reserve Currency. Sinking Major World Currencies, DBV, and Emerging Market Currencies, CEW, will destabilize Liberalism’s global economy, and establish Authoritarianism’s regional economies, where new commodity exchanges and public private partnerships will support trade and economic activity in un-dollar, that is dollar-less, transactions.
Malaysia, EWM, traded strongly lower today surpassing the exit of investors from South Africa, EZA, and Turkey, TUR, at the first of the year. South Korea, EWY, and Poland, EPOL, traded lower again. Despite the Australian Dollar, FXA, joining the British Pound Sterling, FXB, and The Yen, FXY, in trading lower, neither Australia, EWA, or The UK, EWU, as nation investments, have traded lower.
The Era of Nation Investment ended, as Deutsche Bank, DB, led Germany, EWG, lower for the first time; and Ireland, EIRL, traded lower on the recent sell of Ireland’s Bank, IRE, shares. The Netherlands, EWN, traded lower on accumulated losses of Royal Dutch Shell, RDS-B, and Unilever, UN. Now Germany, Ireland, and the Netherlands, join Italy, Spain, and Greece, in turning Europe, VGK, lower, making Europe as the regional loss leader, with Asia, EPP, next, and the US, VTI, still at its rally high.
Today’s trade lower in Germany’s and Ireland’s and Netherland’s shares, is a pivotal event in mankind’s economic history, as investors began derisking out of country shares, being led so by the trade lower in the those nation’s banks.
Insolvent sovereigns, and their insolvent banks, are incapable of governing. As nation states fail, state leaders will meet in summits to renounce national sovereignty and announce regional framework agreements, which pool sovereignty regionally for regional governance, and which appoint sovereign regional leaders, and establish sovereign regional bodies, such as the ECB, to establish regional governance for regional security, stability and sustainability. Look for a fiscal and monetary pope, to rise to rule in the Eurozone; he will be assisted by economic cardinals, who will work in public private partnerships to oversee the region’s factors of production and economic activity.
The trade lower in the Australian Dollar to join the trade lower in the British Pound Sterling and the Japanese Yen, establishes competitive currency devaluation, which comes not at the hands of governments, but at the hands of currency traders.
Today’s stock market trading events reflect two biblical principles.
The first principle being that Jesus Christ is at the helm of the Economy of God, Ephesians 1:10, pivoting one dispensation, that is one era, to another; specifically pivoting Liberalism, where bankers ruled, to Authoritarianism, where nannycrats rule.
The second principle being the termination of the fiat money system, where nation states rule via currencies, and the introduction of the diktat money system where regional governance rules via diktat, this being foretold in bible prophecy of Revelation 13:1-4, where the Beast Regime, rises out of the Mediterranean Sea nations’ banking and debt crisis, specifically the PIGS, that is Portugal, Italy, Greece, and Spain, to rule in the world’s ten regions, and occupy in all of mankind’s seven institutions. Milton Friedman and his Free To Choose Floating Currency System, which underwrote the fiat money system, is an experience of the bygone era of Liberalism. Now, Mario Draghi and the Regional Diktat System, is rising to establish the diktat money system of Authoritarianism, where regions will rule.
Gaming Stocks, BJK, traded parabolically lower, and Energy Service, OIH, IEZ, traded strongly lower, on the exhaustion of the world central banks’ monetary authority. The US Fed’s, the ECB’s, and the BoJ’s monetary policies of ZIRP and quantitative easing, have crossed the rubicon of sound monetary policy and have made “money good” investments bad, with the most risky of vice stocks, and the most growth oriented of energy service stocks, now trading lower in value.
With today’s trade lower in vice stocks, investors are no longer able to profit from investing in stocks traded by the Fidelity Mutual Funds, VICEX, which includes, Casinos such as Las Vegas Sands, LVS, and Wynn Resorts, WYNN, … Cigarette Manufacturers such as Philip Morris, PM, and British American Tobacco, BTI, … Alcoholic Beverage Producers such as Diageo PLC, DEO, and Brown Forman, BF-B, … or Brewers such as Fomento, FMX, and Budweiser, BUD.
And with today’s trade lower in Energy Service Companies, investors are no longer able to profit from investing in stocks such as Schlumberger, SLB, Halliburton, HAL, National Oilwell Varco, NOV, or Baker Hughes, BHI.
It is sovereignty that begets seigniorage, that is moneyness.
In the former dispensation of Liberalism, that is age of Liberalism, the sovereign authority of nation states provided seigniorage. Jesus Christ is at the helm of the economy of God, Ephesians 1:10, pivoting the world from the dispensation of Liberalism to the dispensation of Authoritarianism. In the current dispensation of Authoritarianism, the sovereign authority of nannycrats provides seigniorage.
Under the Banker Regime of Liberalism, the fiat money system, provided the seigniorage of investment choice. One could have invested in either the vice stocks such as Las Vegas Sands, LVS, or the energy service stocks, such as Halliburton, HAL, and experienced the meritocracy of one’s choice.
But under the Beast Regime of Authoritarianism, the diktat money system, provides the seigniorage of dikat. Today’s news reflects the new seigniorage. Christoph Dreier of WSWS reports Greek government imposes martial law on ferry strikers. The criminalization of striking workers harks back to the police state conditions that prevailed under the fascist regime of the Greek colonels some 40 years ago. Now there is no meritocracy, there is only the word, will and way of sovereign nannycrats providing reward to those who obey.
An inquiring mind asks, who will rise to be named Europe’s Sovereign, as who will rise to be its Seignior, that is top dog banker who takes a cut? Will a German rise to be the Sovereign, might it be Philipp Rösler, Germany’s vice-chancellor and economy minister, who said the eurozone’s top priority should be “strengthening competitiveness, rather than weakening the currency”, in a press conference, after meeting with French Finance Minister Pierre Moscovici as Global Post reports.
In the age of Liberalism, Global central bank “international reserve assets” (excluding gold), as tallied by Bloomberg, and M2 Money, as reported by the US Federal Reserve served as metrics of sovereign wealth. In the age of Authoritarianism, diktat and physical possession of gold will be measures of sovereign wealth.
There are no sovereign nations; there are no sovereign peoples; and there are no sovereign individuals, there is only the Sovereign Lord God, who directs all things, and who has appointed His Son, Jesus Christ, heir of all things. He as the All Sovereign One, Colossians 1:15-16, all sovereignty coalesces in Christ, Colossians, 1:17.
Jesus Christ has and is the Key of David, and He has unleashed the First Horseman of the Apocalypse to pass the baton of sovereignty from nation states to regional rulers and regional bodies, Revelation 6:1-2. Mike Mish Shedlock writes in Illusions of stability Imbalances grow and German taxpayers keep funneling tax dollars to the Southern states to keep them afloat. How long German citizens are willing to put up with this sorry state of affairs (in addition to the shenanigans of the Mario Draghi ECB) remains to be seen.
Destiny, that is Fate is operating, Revelation 1:1. There are no sovereign individuals making any choice of any kind; there is no human action whatsoever, as all things are of God, 2 Corinthians 5:17-18.
Germans are entirely different from Greeks, historically, culturally and economically. The Nordic Latin divide is as great as the Grand Canyon Chasm, yet Germans and Greeks will be one, unified in debt servitude and austerity, bonded together, yes yoked together, by Authoritarianism’s schemes, that is by regional framework agreements, which leaders will soon announce, as the dynamos of regional security, stability, and sustainability are winding up Regionalism, just as the dynamos of corporate profit and global trade, are winding Crony Capitalism, Greek Socialism and European Socialism.
Germany will rise to be preeminent over vassal European sovereign nation states; yes, Germany will rise to be a type of authoritarian Revived Roman Empire, Daniel 7:7, heading up the EU, as the prime example of Regionalism.
There is waiting in Europe’s wings, the most capable of Sovereigns, the Little Horn, Daniel 7:8; this one of seemingly little authority, is thoroughly familiar with Authoritarianism’s schemes, Daniel 8:23, and will rise to be the first of ten regional kings, Daniel 8:21.
The Mario Draghi Carry Trade, that is the Euro Yen Carry Trade, the EUR/JPY, which was the funding source for Liberalism’s final risk-on toxic credit based rally, is going to unwind, and will be the genesis for a soon coming Financial Apocalypse, that is a credit bust and financial system breakdown, as foretold in Revelation 13:3.
As all forms of fiat wealth die, that is as the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, World Stocks, VT, Sovereign Debt, BWX, and Commodities, DBC, such as Base Metals, DBB, perish on the exhaustion of the world central banks’ monetary authority, will physical possession of Platinum, PGM, and Silver, SLV, rise to join Gold, GLD, as measures of soveign wealth? I believe that Silver is a base metal, and that while its price may be suppressed by a financial contracts and a number of investment schemes, it will forever be just a base metal used in the production of material goods. One can follow Platinum, Silver, and Gold, together with Base Metal, in this ongoing Yahoo Finance Chart.
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