Financial Market Report for the week ending Friday March 8, 2013
1) … On Tuesday, March 5, 2013, World Stocks, VT, rose largely on US based stocks; sectors rising strongly included:
Solar Energy, TAN, 2.3%
Small Cap Energy, PSCE, 2.1%
Semiconductors, XSD, 2.1%
Too Big To Fail Banks, RWW, 2.0%, a new high
Automobiles, CARZ, 1.9%
US Infrastructure, PKB, 1.8%, a new high, includes companies such as those in this Finviz Screener.
Transportation, XTN, 1.8%, a new high
Small Cap Industrials, PSCI, 1.8%,
Home Construction, ITB, 1.7%
Global Producers, FXR, 1.6%
Energy Service, OIH, 1.6%
Industrial Office REITS, FNIO, 1.6%
Global Engineering, Design, and Build, FLM, 1.6%,
Aerospace and Defense, PPA, 1.6%,
Business Services, seen in this Finviz Screener, 1.4%
Airlines, FAA, 1.4%, a new high
Retail, XRT, 1.3%, a new high
North American Software, IGV, 1.2%, a new high
Biotechnology, XBI, 1.1%, a new high
Networking, IGN, 1.0%
World Banks, IXG, 1.0%
Internet Retail, FDN, 0.9%, a new high
Consumer Discretionary, IYC, 0.8%, a new high
IPO’s, FPX, 0.7%, a new high
Paper and Wood Producers, WOOD, 0.7%, a new high
Consumer Staples, KXI, 0.6%, a new high
Utilities, XLU, 0.5%, a new high
Brian Louis of Bloomberg reports Prices for U.S. commercial property are expected to climb in the next six months, extending a rebound that has sent values close to levels reached at the market’s peak in 2007, according to Green Street Advisors. Prices climbed 1% in February and are within 1 percentage point of their August 2007 high. The chart of Office REITS, FNIO, shows a 1.6% gain on the day, 9% gain y-t-d, and 18% gain in the last year.
North American Software, IGV, rising included MSFT, INTU, CRM, CDNS, N, WDAY, ADBE, N, PLUS. CVLT, MANH, ADSK, ORCL. Internet Retail, FDN, rising included EQIX, YHOO, GOOG, AMZN, TRIP, GSOL, OPEN, AOL, WWWW, SFLY, VCLK. Biotechnology, XBI, rising included, CELG, AMGN, GILD, BIIB.
Yield bearing sectors rose strongly; these included Dividend Appreciation, VIG, 0.9%, Dividend Excluding Financials, DTN, 0.8%, Mortgage REITS, REM, 0.7, US Real Estate, IYR, 0.7%, Small Cap Real Estate, ROOF, 0.6%, Utilities, XLU, 0.5%; Dividend Growth, VIG, all of these to new highs. Dividend paying large cap growth industrial stocks rising strongly included Verizon, VZ, Disney, DIS, Boeing, BA,General Electric, GE, 3M, MMM, United Technologies, UTX, Whirlpool, WHR, Chevron, CVX, Cisco Systems, CSCO,
Despite World Stocks, VT, and Small Cap Nation Investment, IFSM, rising to new highs, Nation Investment, EFA, Emerging Markets EEM, also rose, but closed below their recent highs.
2) … On Wednesday, March 6, 2013, World Stocks, VT, traded unchanged, sectors rising included:
Creditor Services, seen in this Finviz Screener, 0.6%
Business Services, seen in this Finviz Screener, 0.3%. Companies that have performed well in the last six months include USAT, ENOC, FLT, FNGN, TISI, ICGE, DLX, MMS, and ADS
Steel, SLX, 2.4%,
Mining. PICK, 1.4%
Copper Mining, COPX, 1.3%
Small Cap Energy, PSCE, 1.1%
Automobiles, CARZ, 1.0%
Networking, IGN, 0.7%,
Pharmaceuticals, XPH, 0.5%, new rally high
Leveraged Buyouts, PSP, 0.4%, new rally high
Small Cap Industrials, PSCI, 0.4%, new rally high
Homebuilding, ITB, 0.2%, new rally high
Regional Banks, KRE, 0.3%, new rally high
To Big To Fail Banks, RWW, 0.2%, new rally high
The chart of US Stocks, VTI, shows a 1.2% blast higher; and Global Producers, FXR, rose 0.3%, as US Based Companies, Banks and Asset Managers rallied strongly; these included:
Investment Banking, JPM,
Industrial Textiles, MHK
Industrial Gases, ARG,
Communications Equipment, QCOM, MSI, ARRS
Home Improvement Stores, HD, PIR, FBHS, LEG, LL,
General Building Materials, APOG, TREX, BECN, MAS
Railroads, ARII, WAB,
Heavy Construction, MTZ,
Small Tools, SNA, LECO, SWK, TTC
Industrial Equipment Distributors, DXPE, WCC, AIT,
Industrial Equipment, WTS, NPO, HEES, CIR, B, PH,
Industrial Electrical Equipment, AOS, AME, ETN,
Metal Manufacturing, WOR, VMI
Semiconductors, TXN, MU
Paper, BZ, KS, CLW, IP,
Packaging, MWV, PKG, GPK, SEE
Aerospace, BA, BEAV
Appliances, WHR, LII
Diversified Machinery, CFX, IEX, MIDD, BGG, GE, FLS, XYL, ITT, AVY, PLL,
Energy, COG, MPC, TSO, HFC, LNG, PSX,
Consumer Discretionary, VMED, TWX, CMCSA, VIAB, AOL, DISCA,
Recreational Vehicles, WGO
Cement, TXI, EXP
Advertising Agencies, LAMR, IPG, OMC
TV Broadcasting CBS, NXST,EVC, BLC, GTN, FSCI
Radio Broadcasting, SIRI
Data Storage, SNDK
Information Technology, CSC, VRTU, IT
Chemical Manufacturers, GRA, ECL
Scientific Instruments, ROP, BMI, BRKR, AFFX, FEIC
Dig and Dirt Moving Stocks, CR, MTW
Restaurants, KKD, LUB, JMBA, SONC, JACK, DPZ, DENN, DNKN, EAT, DFRG, BKW, RUTH, AFCE,
Gold and Silver Mining Stocks, GDX, GDXJ, SIL, SILJ, seen in this Finviz Screener rose strongly as Gold, GLD, rose, 0.6%, and Silver, SIL, rose 3.6%.
LED Manufacturer, CREE, blasted higher as GreenTech Media reports Lighting milestone: Cree unveils warm white LED for less than $10
Major World Currencies, DBV, rose, to its former high, being taken higher by the US Dollar, $USD, UUP, and being taken higher by World Stocks, VT, and US Stocks, VTI, which both rose higher. Emerging Market Currencies, CEW, continued lower from its recent high.
Under liberalism debt became money, that is wealth, and debt was used to create even more money. The Liberty Crier presents the YouTube Paul Grignon’s 47-minute animated presentation of “Money as Debt” which tells in very simple and effective graphic terms what money is and how it is being created. It is an entertaining way to get the message out. The Cowichan Citizens Coalition and its “Duncan Initiative” received high praise from those who previewed it. I recommend it as a painless but hard-hitting educational tool and encourage the widest distribution and use by all groups concerned with the present unsustainable monetary system in Canada and the United States.
PowerShares Leveraged Buyouts, PSP, is an example of how Liberalism’s Asset Managers, which also includes Blackrock, BLK, Waddell and Reed, WDR, Eaton Vance, EV, State Street, STT, and Wisdom Tree Investments, WETF, coined debt as wealth. A current LBO example is seen in the Reuters report KKR to Acquire Gardner Denver for $3.74B.
Sridhar Natarajan of Bloomberg reports U.S. loan funds recorded $1.1 billion of inflows this week, extending their position as the best-performing asset class of 2013, according to Bank of America Corp. Investors added to record-setting deposits into funds that purchase floating-rate debt in January and February. The holdings have seen assets expand by 14% this year. The price of leveraged loans climbed to 97.85 cents on the dollar yesterday, the most since July 2007.
Kristen Haunss of Bloomberg reports Collateralized loan obligations paying the lowest rates in five years are being snapped up by investors, providing the fuel that’s contributing to the biggest surge in corporate buyouts since before the financial crisis. The top-rated portion of a $420 million CLO sold by a unit of Prudential Financial Inc. paid interest at 110 bps more than the London interbank offered rate, the least offered on slices rated AAA since February 2008. About $19 billion of CLOs have been sold this year, following sales of $52.6 billion in 2012 that were the most since the peak of $94 billion in 2007.
Another example of debt becoming wealth is carry traded investment leveraging up of corporations with high Long Term Debt To Equity Ratios, these include DENN, CPSS, HEES, ADS, CAR, LBTYA, FUN, ETE, SBAC, MAS, DNKN, AIV, KBH, NEE, TAL, CLX, FSM, PKOH, OI, SPG, RJET, NMR, SFI, TSLA, PT, CYH, HMA, S, SPB, NXPI, MTW, AEPI, TEF, ANGI, RCI, BYI, EAT, GMT, CIT, CAP, HSH, BKW, GE, BLX, NEWS, LAMR, R, GPK, IGTE, KOP, CMS, SCTY, MBT, PCL, TGH, RM, AFCE, CNP, CACC, CSV, CSU, AL, JAH, VIP, HOG, CZZ, ROC, IP, SLH, JPM, BA, NCR, DLX, TRN, HSY, GWR, WM, MIC.
High Yield Corporate Bonds, HYG, traded higher; these have been issued with ever increasing frequency to buy corporate shares, and thus create wealth, that is money. Holly Ellyatt of CNBC asks Credit boom warning? Buybacks hit $1 Trillion. Corporate buybacks have surpassed the $1 trillion mark for the first time since 2009, a sign the credit boom is reaching new heights, Brian Reynolds, chief market strategist at Rosenblatt Securities said on Wednesday. “Buyback announcements for the S&P have now topped the trillion dollar mark for this credit boom. And even though this boom is about to begin its fifth year, this past month has seen the fastest growth for buyback announcements, as if CEOs are making up for lost time,” Reynolds said in a note. (Read More: Is Corporate Behavior Too Bubblicious in Bond Market?) He said buybacks, where a company repurchases its own outstanding shares to reduce the number of shares in the market, have helped boost share prices. “Buybacks have been the main driver of higher equity prices during the current credit boom, which began in 2009, as all other major stock market participants combined have been net sellers.”
3) … On Thursday, March 7, 2013, World Stocks, VT, and US Stocks, VTI, continued higher with Long Term Care Facility, CSU, Capital Senior Living, leading its competitors higher as is seen in the ongoing combined Yahoo Finance chart. Sectors trading higher included Networking, IGN, Small Cap Energy, PSCE, Semiconductors, XSD, US Infrastructure, PKB, Energy Production, XOP, Airlines, FAA, Retail, XRT, Biotechnology, XBI, and Aerospace and Defense, PPA, seen in this Finviz Screener, being led higher by Boeing, BA.
Nation Investment, EFA, rose but remained below its recent high as Sweden, EWD, Norway, NORW, Finland, EFNL, Netherlands, EWD, Ireland, EIRL, led Italy, EWI, Spain, EWP, and Germany, EWG, higher. Thailand, THD, and Australia, EWA, led Asia, excluding Japan, EPP, higher. Taiwan, EWT, rose higher. Brazil, EWZ, EWZS, Russia, RSX, ERUS, India, INP, SCIN, traded higher. Mexico, EWW, and Argentina, ARGT, traded higher.Stefan Steinberg of WSWS reports European economy contracts as stock markets soar. Japan Small Caps, JSC, and Japan, EWJ, traded lower from their vertical rally.
Major World Currencies, DBV, traded unchanged at yesterday’s new high of 27.02. The Swedish Krona, FXS, the Swiss Franc, FXF, the Indian Rupe, ICN, the Euro, FXE, and the Brazilian Real, BZF, traded higher, as the Japanese Yen, FXY traded lower. The chart of the EUR/JPY showed a 2.0% blast higher to 124.38.
4) … On Friday, March 8, 2013, the world has most likely achieved peak money and currencies.
Marc Jones reports World shares hit their highest level since June 2008 and the dollar touched a fresh 3-1/2-year high against the yen on Friday, ahead of U.S. jobs data expected to point to a continuing pick up in the world’s biggest economy. China also gave markets a boost as official data showed February exports grew 21.8 percent versus a year ago, more than double the expected rise. European shares, VGK, which have rebounded strongly this week after last week’s Italian election and U.S. spending cuts-related wobble, opened up 0.5 percent. That put them on track for their biggest gains since the opening week of the year. In Asian trading Japan’s Nikkei had hit a 4-1/2 year high. “There appears to be a strong risk-on mood in the market at the moment,” said Ken Wattret, co head of European market economics at BNP Paribas. “The negativity from the Italian elections was shrugged off pretty quickly, the Fed has made it clear that its policy will remain accommodative. If we get a get a good set of payrolls numbers, that will further fuel that sentiment.”
Mark Santoli of Yahoo’s Unexpected Returns Blog writes Upbeat jobs data won’t sway a wait-and-see Fed The news on jobs was good, and the market discussion quickly pivoted to whether the U.S. economy was ready to be weaned from the Fed’s extra easy monetary nourishment. In related article, Jonathan Spicer of Reuters reports Fed mulls putting a “not for sale” sign on its assets. The Daily Ticker in video report relates Unemployment hits four year low: Time to break out the confetti? Jobs growth in February beat expectations and the unemployment rate hit a four-year low of 7.7%.
Peak Money, that is Peak Stock Wealth, was likely established today February 8, 2013, as World Stocks, VT, rose 0.4%, to close at a new high of 52.45, manifesting a three white soldiers candlestick chart pattern suggesting that the rally in stocks globally is over. The Phillippines, EPHE, Thailand, THD, Australia, EWA, Australia Small Caps, KROO, Australia Dividend, AUSE, and Indonesia, IDX, rose to new highs.
US Stocks, VTI, rose 0.5%, to close at a new high of 80.27. Global Producers, FXI, rose 1.4%, to close at a new high 21.89, manifesting what may turn out to be an evening star candlestick. Sectors rising strongly included the following, all rising to new rally highs: Airlines, FAA, 1.5%, US Infrastructure, PKB, 1.4%, Small Cap Industrials, PSCI, 0.9%, Transportation, XTN, 1.3%, Retail, XRT, 0.9%, Home Building, ITB, 1.0% Consumer Discretionary, IYC, 1.0% Small Cap Energy, PSCE, 1.3%, Aerospace and Defense, PPA, 0.9%, Pharmaceuticals, XPH, 0.6%, Paper and Wood Producers, WOOD, 0.4%, IPOs, FPX, 0.4%, Internet Retail, FDN, 0.4%, LBOs, PSP, 0.4%.
World Banks, IXG, traded higher. Bank of America, BAC, led C, KEY, BK, higher taking the Too Big To Fail Banks, RWW, to a new high. Regions Financial, RF, led Regional Banks, KRE, seen in this Finviz Screener, to a new high. JP Morgan, JPM, led Investment Bankers, KCE, to a new high. The AP reports Fed says 18 biggest US banks in stronger position. The nation’s largest banks are more prepared to withstand a severe U.S. recession and a global downturn than at any time since the 2008 financial crisis, the Federal Reserve said Thursday following its annual “stress tests.”
The Too Big To Fail Banks are declared by Attorney General Eric Holder to be too big to hold accountable. Bloomberg reports Too-Big-To-Fail Banks limit prosecutor options, Holder testifies. The size of the largest financial institutions, RWW, has made it difficult for the U.S. Justice Department to bring criminal charges, Attorney General Eric Holder said. Criminal charges against a bank, something that could threaten its existence, may also endanger the national or global economies in the case of the largest ones, because of their size and interconnectedness. That has “made it difficult for us to prosecute” some of those institutions, Holder said today at a Senate Judiciary Committee hearing. And Bloomberg reports AIG betting on homeowners as Benmosche chases yield. American International Group, AIG, the insurer that was rescued by the U.S. government in 2008 after soured bets on mortgage securities, MBB, is building a unit to buy individual home loans amid a rebound in the housing market. AIG plans to buy loans, MBB, backed by its United Guaranty Corp. unit, the largest seller of traditional private mortgage insurance last year, according to Donna DeMaio, 54, the unit’s chief executive officer. The debt, MBB, will be held as long-term investments by AIG insurance companies. AIG has boosted investment in U.S. property markets less than five years after real-estate wagers forced the government to rescue the insurer, once the world’s largest. The Fed had to step in after AIG sold derivatives to banks protecting them against losses on housing debt, with the U.S. bailout reaching $182.3 billion.
China stocks, YAO, gained 0.9%, this week, which compares with Sweden, EWD, which gained 1.8%, and world stocks, VT, which gained 2.1%, both rising to new highs. Deutsche Welle reports Sweden’s State Owned Utility Vattenfall to cut 2,500 jobs
Bloomberg reports China’s property stocks, TAO, plunged the most since June 2008 after the government intensified a three year campaign to cool the real estate market, ordering higher down payments and stricter enforcement of sales taxes. The Shanghai Stock Exchange Property Index lost 9.3% at the close of trading, its biggest drop since June 19, 2008. China’s cabinet on March 1 told cities with ‘excessively fast’ price gains to raise down-payment requirements and interest rates on second-home mortgages and ordered individuals selling properties to ‘strictly’ pay a 20% tax on the sale profit when the original purchase price is available, a levy that is being easily avoided.
Bloomberg reports Bloomberg China’s property curbs in the past decade have been unsuccessful and the new round of measures will slow property sales, said billionaire Vincent Lo, also a member of the government’s advisory board. ‘Certainly they haven’t been,’ said Lo, chairman of Shui On Land Ltd., a Shanghai-based developer. ‘Had they been successful, home prices wouldn’t have risen higher the more the government curbed.’ China on March 1 imposed its toughest curbs in a year, ordering the central bank to raise down-payment requirements and interest rates for second mortgages in cities with excessive price gains, enforcing a property sales tax and telling local governments with the biggest price pressures to tighten home-purchase limits.
Aaron Back of Dow Jones reports Chinese policy makers sent signals that Beijing is preparing to tighten monetary policy, as inflation risks rise along with a recovering economy. At the annual meeting of the country’s legislature Tuesday, Chinese Premier Wen Jiabao set a lower target for money-supply growth, a clear sign authorities want to rein in lending and liquidity in the financial system. And Wednesday, a vice governor of the central bank and one of its external advisers both argued that excess liquidity needs to be mopped up to stop inflation from rising. Inflation in 2012 was subdued, but economists widely expect it to be rising again this year on higher food prices. Inflationary pressures also are showing up in the property market, prompting Beijing to unveil new taxes and restrictions on apartment sales last week.
The S&P 500, $SPX, traded by SPY, jumped 0.4% on the day, 2.2% on the week, and 9.2% y-t-d.
Bonds, BND, traded strongly lower, being led so by US Government Treasuries, GOVT, such as Mortgage Backed Bonds, MBB, from their peak on December 6, 2012, as World Stocks, VT, continued rising. Municipal Bonds, MUB, traded lower on the Sequester.
Monetization of debt by the World Central Banks, that is monetary policies of Quantitative Easing by the US Fed, Open Monetary Transactions by the ECB, Monetary Injections by China’s PBOC, and Abenomics by the Bank of Japan, has resulted in a strong sell of World Treasury Bonds, BWX, US Government Debt, GOVT, and Mortgage Backed Bonds, MBB; and has created a demand for the most toxic of debt, such as Senior Bank Loans, BKLN, Junk Bonds, HYG, and distressed investments taken in by the Fed under QE1, and traded by Fidelity Mutual Fund, FAGIX, and which accounts for a great deal of the debt held by investment banker JPMorgan, JPM, and which closed at an all time high of 9.69.
Closed End Stocks, CSQ, rose, as Closed End Debt, PFL, traded lower, suggesting that the Risk On Debt Drive Rally is coming to an end, with confirmation coming from the Risk On ETN, ONN, trading at strong resistance at 28.25 this week.
The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, has been steepening since December 6, 2012, when Aggregate Credit, AGG, traded lower. A Steepening Yield Curve, seen in the Steepner ETF, STPP, rising, reflects that bond vigilantes have loose control of interest rates, which will result soon in turning “money good; investments bad, when currency traders start a global currency war by introducing competitive currency devaluation, causing derisking out of World Stocks, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Emerging Markets, EEM, and Global Producers, FXR, and deleveraging out of US Commodities, USCI, and Global Commodities, DBC.
Doug Noland reports what is likely to be peak Sovereign Wealth. Federal Reserve Credit jumped another $7.2bn to a record $3.085 TN. Fed Credit expanded $299bn over the past 22 weeks. In the the past year, Fed Credit expanded $220bn, or 7.7%. Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $682bn y-o-y, or 6.6%, to $10.951 TN. Over two years, reserves were $1.586 TN higher, for 17% growth.
It is likely that Peak Consumer Wealth has been achieved as Doug Noland reports M2 (narrow) “money” supply fell $22.6bn to $10.390 TN. “Narrow money” expanded 6.4% ($622bn) over the past year. For the week, Currency increased $2.5bn.
Peak Currencies was likely achieved today February 8, 2013. The US Dollar, $USD, UUP, continued higher, as the Japanese Yen, FXY, traded strongly lower. Major World Currencies, DBV, of which the US Dollar is a component, traded to a new high of 44.26, manifesting a dark cloud covering candlestick in its chart pattern, suggesting that competitive currency devaluation is about to commence with world currencies selling off and carry trades unwinding, causing derisking out of stocks and deleveraging out of commodities. Emerging Market Currencies, CEW, topped out on February 5, 2013. Look for Yen, FXY, based carry trades, such as the EUR/JPY, featured in Action Forex Report with a close at 124.82, to trade lower. Ira Iosebashvili of the WSJ reported “Did China just lambaste Japan over its weaker yen, or did we witness an example of carefully crafted diplomacy? Gao Xiqing, president of the China Investment Corporation, minced few words in his interview with the Wall Street Journal. He warned Japan, which has seen its yen fall by 20% against the dollar since September, against treating its neighbors like a ‘garbage bin,’ and that starting a currency war would ‘not only be dangerous for others but eventually be bad for yourself.’ Mr. Gao’s words made a bold contrast with a statement issued by the Group of 20 nations, which includes China, last month.
The U.S. dollar, $USD, UUP, rose 0.6% to close at 82.77, up 3.8% y-t-d. For the week on the upside, the Brazilian Real, BZF, increased 2.3%, the Indian Rupe, ICN, 1.7%, the Mexican Peso 1.0%, the Swedish Krona, FXS, 0.5%,, the Norwegian Krone 0.5%, the Australian Dollar, FXA, 0.4% and Emerging Market Currencies, CEW, 1.7%. For the week on the downside, the Japanese Yen, FXY, declined 2.6%, the Swiss Franc, FXF, 0.9%, the British Pound Sterling, FXB, 0..6%, the Singapore Dollar 0.6%, the New Zealand Dollar 0.4%, the South African Rand 0.3%, the Canadian Dollar, FXC, 0.2%, the Danish krone 0.2%, the Euro, FXE, 0.2% and the Taiwanese dollar 0.1%.
The ratio of World Stocks, VT, to Commodities, DBC, VT;DBC, and the ratio of US Stocks, VTI, to US Commodities, USCI, VTI:USCI, are at all time highs indicating the overvalued and manic nature of today’s stock market.
Alex Kowalski of Bloomberg reports:Former Federal Reserve Chairman Paul Volcker said U.S. central bank officials may find it difficult to rein in their historic stimulus at the appropriate time because ‘there is a lot of liquor out there now.’ … ‘At some point when the worm turns and the party is getting under way, to use that old analogy, at what point do you begin retreating?’ Volcker said ‘You can make a mistake and go too quick, but the much more frequent mistake in my judgment is you go too slow, because it’s never popular to take the so-called punch bowl away or to weaken the liquor.’
Vivien Lou Chen of Bloomberg reports Benefits of Fed adopting a ‘no asset sale’ approach are ‘compelling enough’ that central bank has ‘good chance’ of adopting strategy, JPMorgan’s chief U.S. economist Michael Feroli writes. [The] move would provide ‘some modest’ further near-term stimulus, reduce concerns about financial instability risks, limit future losses on Fed balance sheet.
Bloomberg: reports China’s foreign currency reserves, which have surged more than 700% since 2004, are enough to buy every central bank’s official gold supply — twice. China’s foreign reserves surpassed the value of all official bullion holdings in January 2004 and rose to $3.3 trillion at the end of 2012. The price of gold increased 263%percent from 2004 through Feb. 28, with the registered volume little changed. By comparison, China’s reserves rose 721% through 2012, while the combined total among Brazil, Russia and India rose about 400% to $1.1 trillion. Dollars brought into China are sold to banks, which in turn sell the greenbacks to the central bank, increasing the reserves.”
5) … Commentary from Doug Noland in article Q4 2012 Flow of Funds. The quarter was noteworthy for the big jump in Credit growth and the even wider divergence between strong Credit and Financial markets and weak economic performance. A jump in (non-financial) Credit expansion to a 6.2% pace equated with a barely positive (0.1%) real GDP reading. It would be easier to dismiss this as an anomaly if it wasn’t such a prominent global dynamic (i.e. China, India, Brazil, etc.). As for the maladjusted U.S. economy, we’ve reached the phase were it requires exceptionally strong Credit expansion (and overheated markets!) to attain what most economists would view as “normal” growth.
Most of the ongoing inflation in asset prices and incomes is either directly or indirectly related to Washington’s extraordinary policymaking. Since mid-2008 (18 quarters), publicly held Treasury market debt has increased 120% to $11.569 TN. Federal debt (includes some other obligations) doubled to $13.469 TN, increasing over this period from 46% of GDP to 85%. State & Local debt increased 33% in 18 quarters to a record $3.732 TN.
Huge federal expenditures and deficits coupled with the Fed-induced collapse in borrowing cost have lavished inflated earnings and cash-flows upon corporate America. Despite these inflated earnings, ultra-loose financial conditions have nonetheless incited a mini boom in corporate borrowings. Corporate bonds increased SAAR $719bn during Q4 to a record $12.511 TN. For the year, Corporate bonds jumped $527bn, or 4.4%.
A few years back I opined that it would take roughly $2 TN of annual system Credit growth to more fully reflate the deeply maladjusted economy. After four years of outrageous fiscal and monetary stimulus, our Credit system is poised to possibly reach this milestone in 2013. The good news is that jobs are growing at a decent clip (as one would expect with ultra-loose financial conditions and strong corporate borrowings). The bad news is that this reflation has required a doubling of federal debt coupled with incredible Bubble-inducing monetary measures.
The government finance Bubble has significantly inflated household incomes and corporate earnings, a Bubble dynamic that has worked to incite speculation and inflation throughout equities and corporate debt markets. The reflation in securities and, increasingly, real estate markets has again inflated Household Net Worth. Perceived gains in wealth and ongoing (government policy-induced) income growth have spurred boom-time spending levels, in the process sustaining the consumption and services-based U.S. economy. Ignore the underlying Credit dynamics and things almost look OK.
Importantly, the government finance Bubble has succeeded in sustaining the U.S. “Bubble Economy” structure that evolved over the prolonged Credit Bubble period. This has ensured unending Current Account Deficits and endless dollar liquidity; historic global financial and economic imbalances; and attendant myriad Bubbles around the world. Desperate global central bankers, meanwhile, are content to disregard precarious Bubble excess throughout global risk markets – fixated instead on acute economic and financial fragilities. Flawed economic doctrine, analytical frameworks and policies over years fostered deep economic maladjustment and market Bubbles. Resulting fragilities these days ensure even more aggressively “activist” policy measures viewed as necessary to bolster an acutely vulnerable global “system.” Two of the savviest “macro” analysts of this era – Stan Druckenmiller and Marc Faber – this week separately warned that this central banker-induced boom will end badly.
6) … The world has achieved peak sovereignty. News reports illustrate that political chaos is developing in Italy. The diktat money system will arise out of a Financial Apocalypse stemming from political and economic chaos in Portugal, Italy, Greece and Spain, more specifically out of Europe’s Nordic Latin ethical divide.
This week the National Bank of Greece, NBG, -5.6%, led Greece, GREK, -4.9%, lower as Robert Stevens of WSWS writes Austerity demands provoke Greek government crisis. The primary demand of the Troika is that there be no retreat on plans to slash the number of civil service employees.
Ambrose Evans Pritchard writes Italy’s Bersani on collision course with Germany and ECB over austerity. Italy’s Pier Luigi Bersani vowed to break free of the country’s austerity regime as he laid out plans for a centre-Left government, risking a serious clash with Germany and the ECB.
We must leave the austerity cage,” he told leaders of his Democrat Party (Pd), responding to Italy’s electoral earthquake by tearing up his pre-election programme.
“A change of course is absolutely necessary given that five years of austerity and attacks on workers have pushed up public debt levels across Europe,” he said.
“The vicious circle between belt-tightening and recession is putting representative government at risk and making it impossible to govern. The immediate emergency is the real economy and joblessness,” he said.
The pledge puts Mr Bersani on a collision course with the ECB, which is constrained from helping to shore up the Italian bond market unless Rome complies with Europe’s austerity agenda.
“Italian voters may have effectively voted away the ECB safety net,” said Christian Schulz from Berenberg Bank. The central bank cannot activate its bond purchase programme (OMT) unless Italy requests a rescue from the EMU bail-out fund, and that in turn requires a vote in Germany’s Bundestag
“The ECB cannot – and will not want to – do anything to help Italy after the inconclusive election result, even if borrowing costs spiral out of control,” he said.
Mr Bersani’s Democrats (Pd) and its allies control the lower house but failed to win the senate. He is hoping for tacit support on a law-by-law basis from the Five Star Movement of comedian Beppe Grillo.
Mr Grillo has responded with a volley of anathemas, calling Mr Bersani a relic from a defunct political order that must be swept away by civic revolution. Yet many of his 163 senators and deputies say the movement should seek common ground with the Pd.
Mr Bersani said Italy should mobilize its EU voting weight to push for an EU-wide change of course. He has natural allies in Paris.
French finance minister Pierre Moscovici warned EMU colleagues on Monday that current policies “risk a loss of social and political confidence across Europe. We must not pile austerity on top of recession”.
Mr Moscovici said France would need an extra year to meet its deficit target of 3pc of GDP and called for action to tackle the root of the crisis with an EMU-wide growth strategy.
Italy, France, and Spain toyed with a Latin bloc alliance last year to confront Germany over EMU’s contractionary policy mix, but the initiative faded.
Mr Hollande pulled back from a showdown with Berlin and ultimately pushed through further fiscal cuts and reforms, while Italy’s Mario Monti was never willing to jeopardise the European Project that he served for ten years as a commissioner.
Critics says Mr Monti, whose Civic Choice list won just 10pc of the vote, went native in Brussels long ago and has been slow to understand the deeper political crisis unfolding in Italy.
The outgoing premier gave them fresh ammunition today, saying that it would be better to hold fresh elections than to see an anti-EU government to take power.
It is unclear whether a second vote would achieve what he intends. The latest snap polls show that Mr Grillo’s support is still rising, jumping from 25pc to 28pc.
Ominously, nostalgia for Fascist leader Benito Mussolini has started to emerge as the post-War order crumbles. Two key figures have praised elements of Fascist rule over the last two days.
A leader of the Five Star Movement professed “fascination” with the Fascist sense of the Italian state and the family, while the deputy state secretary of the economy said Mussolini “governed well until 1935.” The taboos are falling one.
Bloomberg reports Draghi confronts Italy impact as ECB seen keeping rates on hold. The European Central Bank has to decide how big a threat Italy poses to Europe’s recovery. A rejection of austerity in the euro area’s third-largest economy has produced a political stalemate that’s driven up bond yields and undermined confidence in ECB President Mario Draghi’s scenario of a gradual economic upturn. While that’s prompted some observers to bring forward expectations for lower interest rates, economists from Nomura International Plc to ABN Amro Bank NV say the ECB is more likely to hold fire and keep the pressure on governments to enact reforms. “The Italian election has brought the centrifugal force of dysfunctional politics back into focus, but rate cuts are not the answer,” said Richard Barwell, senior economist at Royal Bank of Scotland Group Plc in London. “The ECB cannot save governments and countries that do not want to save themselves.”
Bloomberg reports Monti won’t back Italian government that threatens EU reforms. Italian Prime Minister Mario Monti said he won’t back a new government that would threaten his country’s commitments to the Europe Union and that Italy should hold a new vote rather than install an administration that could reverse fiscal discipline. In his most detailed comments since Feb. 24-25 elections produced a hung parliament and saw his coalition win less than 10 percent of the vote, Monti said none of Italy’s political parties is capable of addressing the country’s problems. “If the alternative is a government oriented to interrupting Italy’s European path or the way of reforms, I believe it would be better to hold new elections,” Monti said at a press conference in Rome today
Bloomberg reports Napolitano girds for battle to resolve Italy election impasse. President Giorgio Napolitano, a former communist resistance fighter who negotiated Silvio Berlusconi’s resignation, is preparing his final political battle as he seeks to steer Italy out of its latest government crisis before his term expires in May. Napolitano, 87, is charged with resolving the political logjam caused by elections last month that produced a hung parliament. To avoid a new vote, he can try to forge a national unity government, accept an administration without a majority or appoint a non-politician to head a so-called technical government, similar to that of Prime Minister Mario Monti. Markets are pricing in two scenarios, “another technical government or the possibility, which is less and less likely, of a bipartisan government,” Mario Spreafico, who manages 1.5 billion euros ($1.95 billion) as chief investment officer at Schroders Private Banking for Italy, said in a phone interview. “Both would be temporary solutions” before new elections.”
Bloomberg reports Italy’s debt highest since dictator Mussolini. Italy’s public debt rose to the highest level since Benito Mussolini won elections 89 years ago, paving the way for his 20-year dictatorship. The CHART OF THE DAY shows debt jumped in 2012 to 127 percent of gross domestic product from 120.8 percent a year earlier. That’s the most since 1924, when Mussolini won 64 percent of the popular vote in elections that opposition members said were marked by irregularities
Mike Mish Shedlock writes What’s next for Italy? No working government for 7 months, Then elections in September. Pier Luigi Bersani has twice ruled out the possibility of a grand coalition with Silvio Berlusconi’s centre-right coalition, and Beppe Grillo’s Five Star Movement wants no part of overtures from Bersani. There is insufficient support for another technocrat. So, the logical conclusion is new elections are forthcoming. Mr Shedlock writes further Eurozone downturn accelerates despite German growth.
Jean Pisani-Ferry is a French economist and public policy thought leader; he is currently Director of Bruegel, the Brussels-based economic think tank. In Project Syndicate he writes The Euro’s House Divided.
“The European Commission’s latest economic outlook paints a disheartening picture: unemployment rates close to or above 5% in Austria, Germany, and the Netherlands in 2014, but above 25% in Greece and Spain and roughly 15% in Ireland and Portugal. In the same year, per capita GDP is expected to be almost 7% above its pre-crisis level in Germany, but about 7% below in Ireland, Portugal, and Spain, and a terrifying 24% below in Greece. So the deep economic and social divide that has emerged within the eurozone is expected to persist.
Such a gulf within a monetary union cannot be sustained for very long. As Abraham Lincoln said, “a house divided against itself cannot stand.” The same monetary policy cannot possibly fit the needs of a country that is in depression and another that is at or close to full employment. Indeed, the single most important question for the future of the eurozone is whether the gap between prospering and struggling members is being closed
During the euro’s first decade, the countries that are now struggling recorded persistently higher wage and price inflation than those in Europe’s north. To recover and return to both internal and external balance, they must not only close the cost gap, but actually reverse it, thereby generating the trade surpluses needed to repay the foreign debt that they accumulated in the meantime.
The process of internal devaluation, as economists call it, is occurring very slowly. Employees have suffered wage cuts, but prices have not declined accordingly, so their loss of purchasing power is higher than it should be. Likewise, economies have not recovered lost competitiveness, so employment, especially in the traded-goods sector, is lower than it should be.
Austerity and reforms were supposed to deliver rebalancing within the eurozone. And so they have, at least insofar as external balances are concerned. But, despite visible progress on the export front and noticeable labor-cost reductions, this rebalancing is mostly the result of the same collapse in domestic demand that is driving mass unemployment.
Ultimately, perhaps, all the pain will pay off. But societies may lose patience in the meantime. This should be enough to prompt a reassessment. The issue is not whether fiscal consolidation and external rebalancing are necessary – they are. It is how to make them politically and socially sustainable.”
I respond that there is currently no government in Italy, it is currently ungovernable, peak sovereignty that is peak national sovereignty has been achieved. In Europe, there is something greater than a labor price and debt divide; the dynamos of corporate profit and trade, based upon sovereign nation states are winding down, on demand destruction, the dynamos or regional security, stability and sustainability are powering up; the Eurozone’s Great Divide will result in the rise of a one euro government.
Europe’s great cultural and economic divide is The Nordic Latin Ethical Divide; and out of it will come true European regional governance. The European Divide is both striking and is widely known. Norway, Sweden, Denmark, and Finland, have debt loads significantly below those of the eurozone. Sweden’s government spending as a percent of GDP has fallen from 55% to 50% since the introduction of the Euro. And the Nordics are progressive in every way for example, they have high rates of female labor force participation and are accepting of gays and lesbians.
On all international metrics of competitiveness, entrepreneurship, innovation, creativity, responsible government, and human development, the Nordics consistently rank at the top, as the Economist Magazine reports on pages 14 to 16, of the February 2, 3013 print edition, which relates that Nordic countries pride themselves on the honesty and transparency of their governments; citizens pay their taxes and play by the rules. This has led Norway, Sweden, which have national currencies, and Denmark and Finland which use the Euro, to being ranked as the world’s four most prosperous nations. The Nordic people are a creative, innovative, industrious, corruption free, and socially responsible people, which contrasts sharply with the Latin people, that is the Portugese, Italian, Greek and Spanish people, who rank at the bottom of prosperity.
A known unknown, is that Jesus Christ is at the helm of the economy of God, Ephesians 1:10, where He is effecting The Great Paradigm Shift from Liberalism to Authoritarianism, where political governance will change from the rule of sovereign nation states to sovereign regional leaders and regional bodies in regional governance; and economic experience from investment choice and prosperity to debt servitude and austerity; as leaders meet in summits to renounce national sovereignty and pool sovereignty regionally, a concept that has been presented by Herman van Rompuy for a long time.
Please consider the horror, revulsion and anger that the Nordics will experience, especially the Euro using Danes and Finns, being a creative, innovative, industrious, corruption free, and socially responsible people, realize, when their prosperity is decimated by a soon coming Financial Apocalypse, and that have to share in a European gulag of regional governance, totalitarian collectivism and debt servitude, that has arisen through the insolvency of their Latin peers, which is yet another unknown known, presented in bible prophecy of the Beast Regime of Revelation 13:1-4, and in the prophecy of The Ten Toed Kingdom of regional governance of Daniel 2:25-45.
Peak Prosperity is now being achieved. Prosperity comes by good ethics, that is by having right relations with others. The Nordic people are a creative, innovative, industrious, corruption free, and socially responsible people, which contrasts sharply with the Latin people, that is the Portugese, Italian, Greek and Spanish people, who rank at the bottom of prosperity. The most prosperous people, the Norwegians and the Finns, have national currencies which have floated highly in value, and have the least amount of treasury debt.
The Financial Times reports Dutch support EU referendum. Dutch lawmakers have been forced to debate a referendum on any further transfers of power to the EU after a citizens’ petition demanding a plebiscite garnered 40,000 signatures in two weeks. Although parliament is not obliged to follow through with legislation, the move underlines the surge euroscepticism in one of the EU’s founding members, which could pose an obstacle to any further integration needed to bolster the eurozone.
Massive and total Eurozone integration is coming very soon. New regional sovereign authority is coming out of the European Sovereign Debt Crisis, where those living in Euroland will no longer be citizens of any nation, but rather residents living in a region of fascist economic governance where nannycrats manage the factors of production via public private partnerships, and oversee regional resources under the direction of a monetary pope, Revelation 13:10-11, and a regional king, Revelation 13:5-10. Regionalism will displace national investment, national wealth and national currencies, as country leaders meet in summits, renounce national sovereignty and pool sovereignty regionally.
Regional governance is presented in the Statue of Empires of Daniel 2:25-45, as ten toes of iron and clay, a miry mixture of diktat and democracy, form out of failure of the two iron legs of governance that have rule the world since the late 1700s. First, came the failure of the British Empire in 1948 with the the UK being kicked out of Palestine with establishment of the State of Israel, then the ceding of the Suez Canal at the behest of the US, and finally the transfer of authority over Hong Kong. And secondly with the soon coming failure of US Hegemony, and its war for oil, and war on Muslims. The world is at Peak Dollar Hegemony with Richard Norton Taylor of the UK writing Donald Rumsfeld must be indicted over Iraq militias. What he knew of detention centres is not the only point. He was in charge, and if he had a plan the militias wouldn’t have existed. A Guardian investigation reports that Colonel James Steele, a special forces veteran, was nominated by Rumsfeld to help organise paramilitaries to quell a growing Sunni insurgency in Iraq. Steele reported directly to Rumsfeld. The paramilitary groups were drawn from Shia militia and set up detention centres where Iraqis were tortured.
7) … Summary
Please consider the veracity of bible prophecy as given by angels to the Apostle John in a dream while he was in his 90s living in exile on the Isle of Patmos, Revelation 1:1; specifically that being Authoritarianism’s Beast Regime of ten heads and seven heads will replace Liberalism’s Milton Friedman Banker Regime of US Dollar Hegemony. Out of soon coming Financial Apocalypse, Revelation 13:3, a European gulag of regional governance, totalitarian collectivism and debt servitude, Revelation 13:1-4, will rise from the profligacy and insolvency of the Mediterranean Sea nations of Portugal, Italy, EWI, Greece, GREK, and Spain, EWP, where a Sovereign, Revelation 13:5-10, and a Seignior, that is a top dog banker who takes a cut, Revelation 13:11-18, are going to rule Euroland; their word, will and way will be the law of all those using the Euro currency, replacing and superseding all traditional rule of law, corporate, constitutional and national laws, which are part of the former age of Liberalism, as Jesus Christ is in charge of the economy of God, Ephesians 1:10, pivoting the world to the new era of Authoritarianism. The peripheral European states will be exist as hollow moons of technocratic government revolving around Planet Germany, which will rise to be the core strength of a type of revived Roman Empire, Daniel 7:23. Sven Heymanns and Johannes Stern of WSWS report German trade unions march in step with German army. The German Trade Union Federation is publicly backing the increasingly aggressive role of the German army.
Liberalism featured sovereign nation states, and their central banks provided ever increasing credit liberality which stimulated economic growth, global trade and prosperity. It is sovereignty that provides seigniorage, that is moneyness. With the failure of national sovereignty, the seigniorage of investment choice will fail.
Authoritarianism features regionalism. Regional sovereignty in the Eurozone will be the model for governance throughout the entire world. Europe will be the leading example of regional fascism where leaders from industry, banking and state rule via public private partnerships in all of the world’s ten regions and totalitarian collectivism occupies in every one of mankind’s seven institutions.
Under Liberalism, the seigniorage of investment choice drove economic production. Under Authoritarianism, the seigniorage of diktat will direct the factors of production. Liberalism’s fiat money system will be replaced with Authoritarianism’s diktat money system, where diktat serves as money, currency, power and prosperity for nannycrats whose rule replace that of bankers.
Some are inveterate silver investors, believing that silver has value; it does not; it is simply a base metal used in the production of economic goods. King World New writes Massive silver short positions to force COMEX default. Itinerant writes in Seeking Alpha Effects of dilution for silver mining companies which reviews PAAS, HL, CDE, and SSRI. Three out of the four companies have managed to outperform the price of silver by market capitalization over a 10-year time frame; however, all of them have grossly underperformed when using the share price as a yardstick. The only explanation that comes to mind would be dilution that has translated into increasing market capitalization, but has not created value for shareholders. I relate that when looking at CDE, and SSRI, and the Silver Mining ETF, SIL, in their combined ongoing Yahoo Finance chart, it is my contention that finally, yes finally, all currency carry trade investment has washed out of Silver Standard Resources Inc, SSRI, which traded at $10.02; and investors are willing to buy the stock at a PE of 24. I never have and still do not recommend any investment in either silver or silver mining stocks.
Soon an investment demand for gold, $GOLD, which traded at 1,575 will arise, and traded by the ETF, GLD, on falling major world currencies, DBV, and emerging market currencies, CEW. Liberalism is passing away and Authoritarianism is rising, where gold, held in one’s physical possession or owned in Internet Trading Vaults such as BullionVault, and diktat will be the only two forms of sovereign wealth.
As for me, I relate that I live in abject poverty and have no money whatsoever. Physorg reports Poverty rate is highest in 15 years. The Great Recession leaves behind the largest number of long-term unemployed people, or 4.7 million, since records were first kept in 1948, according to research from the University of Michigan. I do not participate in any political action, because I belong to the Lord. GreekCrisisNet presents The Economist article Golden Dawn’s “national awakening” sessions, noting that opinion polls show support for Golden Dawn jumped from 6.9% to 11.5%. I had a personal awakening when Morpheus, the God of Dreams, came forth with the Morpheus Proposal; yet it was a foregone conclusion as God knew I would take the Red Pill, Ephesians 1:5, because he had been working from eternity past to make me accepted in the Beloved, Ephesians 1:6.
There is a God, in Him we move and live and have our very being, Acts 17:28. He is responsible for all things, 2 Corinthians 5:18. Since Pentecost, when the Holy Spirit came with power, we have The Present Truth, 2 Peter 1:12, which relates that The Almighty is know as, and is called, God The Father, and that He has appointed Apostles, meaning Sent Ones, to proclaim Him, Colossians 1:1-2.
It is God who provides the threads and substance of life. The threads are trust and credit; the substance is Christ. These are woven together through meditation, prayer and singing of songs and spiritual hymns to produce the fabric and texture of one’s inner life which manifests in the virtues, that is morals of Christ, and New Testament ethics, that is right relationships of living with others.
Virtues present in graceful and benevolent ways. Ethics manifest in responsible, respectful, peaceful and accepting relationships.
God has a Son, Colossians 1:3; this concept is offensive to both Jews and Muslim. God’s Son has been appointed heir of all things. His name is Jesus Christ, and he being the very image of God, is now the firstborn of all creation, Colossians 1:15. He is the creator of all that exists and is the Sovereign King of the Universe, and is Lord of all things and of all peoples. There is no human action as perceived by Libertarians, there is only Christ working His Will, and His Way in all things, Colossians 1:16. All sovereignty coalesces in Christ, Colossians 1:17.
It is Christ who stands at the helm of the Economy of God, directing all political and economic activity. It is Christ who is effecting His Administrative Plan for the fullness of every dispensation, that is every age, time period, epoch and era, Ephesians 1:10.
Jesus Christ has been working to perfect, that is mature, Liberalism, and is now pivoting that paradigm to Authoritarianism. Christ commenced Liberalism with the Federal Reserve Act of 1913 and also with World War 1 in 1914, and brought Liberalism forth strongly in 1948 with the establishment of the nation state of Israel, and more solidly with the deployment of the Milton Friedman Free to Choose Floating Currency Regime in 1971, which produced Liberalism’s Banker Regime for one to trust in.
It has been very rewarding for one to place faith in the most toxic of debt such as Fidelity Investment’s FAGIX, as well as Junk Bonds, HYG, and Senior Bank Loans, BKLN, and the most speculative of equity such as Fidelity Investment’s VICEX, as well as the most risky of debt such as PowerShares’ Leveraged Buyouts, PSP. Reliance on Dividend Stocks, DLN, and Dividend Appreciation, VIG, has been the bedrock upon which investors have relied for investing in Large Cap Growth, JKE, Small Cap Growth, RZG, MidCap Growth, JKH, Russell 1000 Growth, IWF, and Russell 2000 Growth, IWO, the latter being the most credit and banking sensitive of all growth shares, as is seen in their combined Yahoo Finance five day chart for the week ending Friday February 8, 2013. It is the genius of Christ which has produced the insight to develop the life sciences that MarketGrader reveals has provided lucrative reward in the Russell Small Cap Growth Shares such as NRCI, MWIV, SRDX, RGEN, SNTS, VIVO, TMH, ABAX, PDLI, ACOR, CHE, STE, JAZZ, HMSY, CBST, PCYC, as well as the Biotechnology Stocks seen in this Finviz Screener.
Through the national sovereignty of democracies, and through the monetary authority of the world central banks, seigniorage, that is moneyness, has flowed through Asset Managers such as BlackRock, Eaton Vance, Affiliated Managers Group, Waddell & Reed, Wisdom Tree Investments, that have coined wealth, especially in the Mid Cap Stocks, as John D Hartman reveals in Why the mid caps have outpaced the large indices.
Through carry trade leverage, in a spectacular nine month risk-on toxic debt based rally, investors have experienced stellar rewards in Global Producers, FXR, such as Whirlpool, WHR, and International Paper, IP, as well as in Nation Investment, EFA, such as Australia, EWA, Thailand, THD, and the Phillippines, EPHE, and most recently in the Nikkei, NKY.
The world now exists at Peak National Sovereignty, as is seen in Peak Money, that is Peak Wealth being achieved as follows:
Peak Commodities, DBC, September 14, 2012,
Peak Credit, BND, and AGG, December 6, 2012,
Peak M2 Money, January 7, 2013,
Peak Emerging Market Currencies, CEW, February 1, 2013
Peak Nation Investment, EFA, February 1, 2013
Peak Major Currencies, DBV, March 8, 2013
Peak Stock Wealth, VT, March 8, 2013
Paek Global Central Bank “International Reserve Assets” (excluding gold) March 8, 2013, as tallied by Bloomberg and reported by Doug Noland to stand at $10.951 TN.
The paradigm of sovereign nation states has supported the Milton Friedman Free To Choose floating Currency Regime, where Major world Currencies, DBV, and Emerging Market Currencies, CEW, have floated and the US Dollar, $USD, has sunk. But now the US Dollar, $USD, traded by the 200% ETF, UUP, is rising and it no longer serves as the world’s reserve currency. There is now no international reserve currency. The world’s Fiat Money System, that has underwritten corporate profitability, global growth and trade since 1971, when the world went off the gold standard, is literally disintegrating.
Jesus Christ is bringing forth the new paradigm of regionalism, based upon the sovereignty of regional leaders and regional bodies, where the Diktat Money System, will underwrite regional security, stability and sustainability.
As of the week ending February 8, 2013, the world exists at the very pivot of two eras. Jesus Christ is transitioning the world from Liberalism into Authoritarianism.
To achieve His aim of producing the Beast Regime of Diktat to replace the Banker Regime of Investment Choice, which will rule in all of the world’s ten regions and in all of mankind’s seven institutions, Revelation 13:1-4, as well as to produce the Ten Toed Kingdom of Regional Governance, Daniel 2:25-24, Jesus Christ has released the First Horseman of the Apocalypse, that is the Rider on the White Horse, who has a bow but no arrows, Revelation 6:1-2, to effect global economic and political coup d etat. This rider is seen having great success in Argentina, ARGT, with Kirchnerism, in Egypt, EGPT, with Morsi’s rise to power, and in Greece, GREk with the Troika’s technocratic rule. Greece is no longer a sovereign nation; it is a vassal colonial state ruled by bankers and oligarchs residing in Brussels, and Berlin. The Greeks rely totally for the provision of their fiscal needs upon the regional sovereignty existing in the ECB.
And now the First Horseman of The Apocalypse, Revelation 6:1-2, has taken sovereignty that is rulership from Italy; it exists as a country having no head, that is no rule, no government. Italy is no longer a democracy, rather it is a zombie state existing governed by Christ’s First Henchman, and whose fiscal needs are provided courtesy of Mario Draghi and the monetary authority of the European Central Bank
The Netherlands Cry for Freedom reported in the Financial Times article Dutch support EU referendum, will go unheeded, as God’s Clarion Call, Revelation 1:1, is for fascist technocratic government in the Eurozone, Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:23. Rest assured that God will accomplish his aim as the Rider on the White Horse, Daniel 6:1-2, has all authority and power to fully displace all existing sovereignty as well as dislocate all current seigniorage.
In mankind’s final dispensation, that is humanity’s last time period, Jesus Christ is bringing forth the Church, literally meaning the Called Out Ones, to be Overcomers in Him, as Bible Org relates and asks Who are the Overcomers of Revelation 2 and 3. The saints trust in Christ, and give Him credit for all accomplishments, and take their spiritual life from Him, Colossians 3:4.
Either one will be genuine, having real life experience in Christ, Ephesians 4:21; or one will be fiat, having worldly experience in fiat mandate of religion, philosophy or political party. Christians know Christ as the All Sovereign One, and as the All Sufficient One.
Thanks for visiting this blog; this is most likely my last post here. I began writing in May 2010 as Herman van Rompuy worked to provide a regional framework agreement known as the First Greek Bailout, a seigniorage aid scheme which served to keep Greece in the Eurozone and provided for destruction of the national sovereignty of Greece. I appreciate Finviz for their complimentary charting and portfolio service and Google for their document service.