Risk-On Turns To Risk-Off …. Stocks Trade Lower From An Elliott Wave 5 High In Front Of Next Weeks Fed Meeting As Japan’s Central Bank Monetary Policy Of Kuroda Abenomics Fails

Financial Market report for the week ending July 28, 2013

1) … Steeling oneself is the virtue of growing in endurance and not denying Christ’s Name, that is His presence and authority, as presented in Revelation 3:8

John Rubino writes Bombs going off one level down. In response, I relate that I am preparing myself for anomic breakdown.

The Free Dictionary defines an·o·mie or an·o·my (n-m) n.

1. Social instability caused by erosion of standards and values.

2. Alienation and purposelessness experienced by a person or a class as a result of a lack of standards, values, or ideals: “We must now brace ourselves for disquisitions on peer pressure, adolescent anomie and rage” (Charles Krauthammer).

[French, from Greek anomi, lawlessness, from anomos, lawless : a-, without; see a-1 + nomos, law; see nem- in Indo-European roots.]

Reading of lawless abandon in today’s news, I’m starting to focus on virtue, which I define as the admirable qualities of Christ, and on ethics, which I define as economic, that is oikonomia, which is regard for the property and person of others, whether it be spiritual or philosophic or material, political or monetary.

Living Stream Mininstry and Google Books recommend Wtness Lee on the Economy of God. The central lane of the entire Bible is God’s economy, which is His household administration to dispense Himself in Christ into His chosen people that He may have a house, a household, to express Himself, which household is the church, the Body of Christ (1 Tim. 3:15). The word for economy, oikonomia, is used in the book of Ephesians three times. In 1:10 and 3:9 it is translated as “dispensation,” whereas in 3:2 it is translated as “stewardship.” God’s dispensation is His arrangement, which is His plan or purpose, His household administration.

Elaine Meinel Supkis writes Obama talks only about Trayvon being himself. The right will blame people and the left will ignore people. I comment, yes, this is true. To the left of right, is where most of society exists, and it has no virtue or ethics. Most want to enjoy their moral hazard, debt based prosperity and be left alone; those who reside downtown with me are either libertine or psychopathic.

Ms Supkis relates “When I walk around and spot someone aping the gangsta culture no matter what skin color, I am on full alert.  I expect some criminal action to occur.”

As for me, when I walk around I am alert for psychopaths. For the last thirteen years, I have resided with psychopaths or had psychopathic neighbors; this is a God thing; He continually places me in dens of psychopaths, that I might come to know His virtue and His ethics.

Yesterday I went to the Bellingham’ Farmer’s Market, which is hosted in a modern block long structure whose central building is surrounded by covered market stalls for use during weekend community events, doubling as covered parking during for businesses during the week.

I found a vendor with tree ripend fruit such as cherries and peaches; and waited in line behind a babushka with special summertime food coupons making slow payment for her purchase, it was like she was trying to haggle with the vendor.  While waiting, I was watching that no nut case would come along and purposefully bump into me, causing a disruption.   

On leaving, I had my psychotathic radar on all the way, scoping for trouble makers to avoid. And sure enough when walking by Rumors, the gay and lesbian disco, and Boundary Bay Bistro, the major beer garden, there on the sidewalk dead ahead was a man known to me as a psychopath. He had on a white t-shirt and a green military style baseball cap; appearing very much the exmilitary type.

So what was he doing? He was sitting in a chair that was not his; he didn’t bring a chair; no he doesn’t own one; he sits in chairs that belong to others; this is typical predator animal behavior; simply taking over the property that belongs to another and using it as a perch. He was salivating; watching the whole group of people at market. I simply passed on by; terrified all the time.   

An inquiring mind asks “Like whoabe Obama’s Father?  Obama could not have been Trayvon Martin, as he was raised to be a neoconservative by Jewish Chicago rabbis and Jewish Chicago mentors who fathered him and nurtured him in neoconservativism life.

As for me, I have many fathers of faith in God; these be Noah, Abraham, Moses, and most importantly Jesus, Wonderful, Counselor, Mighty God, Everlasting Father, Prince of Peace.

Benson te writes US part time jobs: Obamacare and regime uncertainty While US government sponsored surveys or the US Federal Reserve of Philadelphia and Minneapolis says that only a small portion has been affected by Obamacare, circumstantial developments (part time jobs and high cash by non-financial corporations due to reluctance to invest) says otherwise.

Nonetheless, Big firms producing most of the GDP growth with little help from small business” has been a common feature in today’s QE-ZIRP based global financial economy where monetary policies have been engineered to buoy asset markets (stocks, real estate) via credit fueled destabilizing speculations (bubbles).

The reality is that the Dr. Bernanke’s policies has substantially been responsible for these. FED easing policies combined with Obamacare and the increased regulatory mandates (the Federal Register is now over 81,000 pages long. Obamacare has 906 pages, Dodd Frank has 849 pages) and aside from a surge in taxes (US tax code now 72,000 pages) all contributes to the uncertainty over the investor’s property rights, hence the lack of commitment to invest and the corresponding changes in the hiring and employment dynamic.

I relate that Liberalism was the epoch of investment choice; authoritarianism is the age of diktat.  The bubbles Benson te writes of came via the world central banks’ moral hazard based monetary policies of investment choice, and all varities of credit schemes.  Christoph Dreier writes in WSWS Greek government bans demonstrations in central Athens. The latest ban on demonstrations is a further step towards authoritarian forms of rule in Europe. Jesus Christ, operating in the Economy of God, Ephesians, 1:10, is now overseeing that Liberalism’s bubbles are resolved via regional governance policies of diktat, and all types of debt servitude schemes.

Sound bible doctrine presents that The Messiah will return before the millennial period (2:31-3; 44-45; 7:13-14). God’s kingdom will literally be established on the earth with the Messiah-King as ruler (2:44-45 -45; 7:26-27). The four metals of Nebuchadnezzar’s dream image symbolize four empires: Babylonian, Medo-Persian, Macedonian-Greek, and Roman (2:37-40); the fourth kingdom, a revived Roman Empire, that is an authoritarian Super State will arise out of the profligacy of European Socialism and Greek Socialism, and their sovereign insolvency and failure of banking seigniorage. After the establishment of the Euro, Antonio Guterres, Portuguese Prime Minister, stated, “As Peter was the rock on which the church was built, so the Euro is the rock on which the European Union will be built.” This fourth kingdom, will exist with the PIGS being hollow moons, revolving about planet Brussels and planet Berlin. It is well on its way to maturity, now that “Woldgang Schäuble rejected proposals for a second restructuring of Greece’s debts. Instead he made clear that austerity policies must continue unabated and expanded via the implementation of structural reforms.”

“The night before Schäuble’s arrival, the Greek Parliament approved the austerity package, the seventh since 2010, to secure payment of its next tranche of credit of €2.5 billion. The package calls for firing 15,000 public employees, with 150,000 to be sacked by the end of 2014. The package was dictated to the Greek government by Schäuble and his European colleagues”.

“The package won the support of 153 of 300 deputies. After the withdrawal of the Democratic Left (DIMAR) from the coalition in June, the Greek government was left with a majority of just 5 seats. All of the opposition parties voted against the law, but DIMAR chairman Fotis Kouvelis stressed that his party agreed in principle to the cuts”

I relate that Dispensationalism presents the concept that National Israel is God’s prophetic time clock for last-day events. CoG writer posts Israel releasing prisoners in order to resume peace talks. Israel has decided to release prisoners, that it has considered to be a threat to its security, as a ‘good faith’ gesture so that ‘peace talks’ with the Palestinians can resume. Israel has agreed to release a “limited” number of Palestinian prisoners, a day after the two governments agreed to head back to negotiations in hopes of settling long-standing differences. Israeli government minister Yuval Steinitz made the announcement Saturday, without giving specific details about the number of prisoners or their identities.

Late Friday, U.S. Secretary of State John Kerry…praised both Israeli Prime Minister Benjamin Netanyahu and Palestinian President Abbas for making some difficult choices.

Peace talks between Israel and the Palestinians collapsed in 2010. White House officials said President Barack Obama called Israeli Prime Minister Benjamin Netanyahu on Thursday to ask him to work with Kerry to “resume negotiations with the Palestinians as soon as possible.”

Earlier this week, in Jordan, Kerry met with representatives of Arab states that support a comprehensive peace plan. He said many of the Arab League ministers told him “the core issue of instability in this region and in many other parts of the world is the Palestinian-Israeli conflict.”

Israel has said it will release “heavyweight” Palestinian prisoners as part of an agreement to enter preliminary talks in Washington, with the aim of an eventual resumption of long-stalled peace negotiations.

Hours after the US secretary of state, John Kerry, announced that the two sides in the conflict had agreed to discuss terms for negotiations, Yuval Steiniz, Israel’s minister for international relations, said a prisoner release would be carried out in stages.

“I don’t want to give numbers but there will be heavyweight prisoners who have been in jail for tens of years,” he told Israel Radio. The release of long-serving prisoners has been a key Palestinian demand.

But Steinitz said Israel would balk at agreeing on the pre-1967 border as the parameter for territorial negotiations. “There is no chance we will agree to enter any negotiations that begin with defining territorial borders or concessions by Israel, nor a [settlement] construction freeze,” he said.

Interesting developments the past few days. On Wednesday, the EU announced that it would pressure Israel and again indicated that wants Israel to basically go back to its pre-1967 borders (see EU to put more pressure on Israel: A prelude to Daniel 9:27?). On Thursday, US President Obama pressures Israel to do something to get the talks resumed. On Friday, US Secretary of State says the talks will resume. On Saturday (today), Israel says it will release prisoners.

It appears that Israel is responding to international pressure, not from the Palestinians, but from its biggest trading partners and military suppliers (Israel, not only trades with both, but also buys certain military items from both the USA and EU).

It has long been my view that Israel will not agree to the type of seven-year covenant what the Bible mentions in Daniel 9:27 without pressure. Though, in my view, Israel will require more pressure than this for that specific deal–but it could make various ‘peace deals’ prior to the prophesied one.

The ‘one week’ has generally been understood by prophecy watchers to mean a seven year deal, that is broken in the middle of it (after 3 1/2 years). More on this deal can be found in the article When Will the Great Tribulation Begin?

As it turns out, because of concerns that Israel has about it own safety and survival, Israel will not likely to agree to this type of deal without additional pressure. This pressure likely will include military and/or economic pressures.

However, there will also likely need to be pressure affecting the Arab/Palestinian side, and this very well may come as the result of a regional war or conflict (likely involving Israel), including possibly a conflict that will result in the prophesied destruction of Damascus, Syria (Isaiah 17:1).

The result of the deal in Daniel 9:27 is that 3 1/2 years after it is confirmed, a military force from Europe will enter Israel (Daniel 11:31). Notice what Jesus said about that: 15 “Therefore when you see the ‘abomination of desolation,’ spoken of by Daniel the prophet, standing in the holy place” (whoever reads, let him understand), 16 “then let those who are in Judea flee to the mountains. 17 Let him who is on the housetop not go down to take anything out of his house. 18 And let him who is in the field not go back to get his clothes. 19 But woe to those who are pregnant and to those who are nursing babies in those days! 20 And pray that your flight may not be in winter or on the Sabbath. 21 For then there will be great tribulation, such as has not been since the beginning of the world until this time, no, nor ever shall be. 22 And unless those days were shortened, no flesh would be saved; but for the elect’s sake those days will be shortened. (Matthew 24:15-22)

A deal that is ‘confirmed’ for seven years by the Europeans is a key event that will result in destruction ultimately coming. The situation is tense in the Middle East, and while peace is good, the coming ‘peace deal’ will disappoint and result in destruction (though there could be, and probably will be, other deals first that are not the deal in Daniel 9:27). Some articles of possibly related interest may include:

When Will the Great Tribulation Begin? 2013, 2014, or 2015? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? Why do many think that Daniel 9:27 is referring to a peace deal? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? See also the video The Great Tribulation Will Not Begin Before 2017.

Jerusalem: Past, Present, and Future What does the Bible say about Jerusalem and its future? Is Jerusalem going to be divided and eliminated? Is Jesus returning to the area of Jerusalem?

The Future King of the South is Rising Does the Bible teach that there will be a future King of the South in Daniel 11? Is this kingdom rising up now? Did the old Worldwide Church of God (WCG) teach that there would be another one? And who is the King of the South? How will this involve Egypt? Is the final King of the South some type of Arab-Muslim confederation? Can Iran be involved? Is there a group that seems to be supporting the goals of the King of the South? Has the Obama Administration supported the rise of this power? This sermon video answers those questions.

The Muslim Brotherhood and the Rise of the King of the South The Bible tells of the formation of a power of nations that are in the Middle East and North Africa that are part of the final “King of the South” (Daniel 11:40-43) The Muslim Brotherhood wishes to have an Islamic empire with basically the same nations. This YouTube video explains what to expect from such a confederation.

Is There A Future King of the South? Some no longer believe there needs to be. Might Egypt, Islam, Iran, Arabs, or Ethiopia be involved? Might this King be called the Mahdi? What does the Bible say?

The Arab and Islamic World In the Bible, History, and Prophecy The Bible discusses the origins of the Arab world and discusses the Middle East in prophecy. What is ahead for the Middle East and those who follow Islam? What about the Imam Mahdi? What lies ahead for Turkey, Iran, and the other non-Arabic Muslims?

Damascus and Syria in Prophecy Will Bashar Assad hold power as he has it? Does the Bible show that Damascus, the capital of Syria, will be destroyed? What will happen to Syria? Will the Syrians support the final King of the South that the Bible tells will rise up? Which scriptures discuss the rise and fall of an Arabic confederation? Does Islamic prophecy predict the destruction of Syria. This is a YouTube video.

I am a Christian Citizen, I am by birth living in the heavenlies. Revelation by Jesus Christ posts Summary of Daniel 9: The Seventy Weeks. Jack Kelley relates The 70 Weeks Of Daniel.  Pastor Jim writes 3065 – 70 Weeks – An Introduction to the 70 Weeks of Daniel. And CalvinistGuy writes Examining the dispensational parenthesis theory of Daniel’s Seventy Weeks prophecy.   

Englewood, Chicago, IL, is inhabited by the Spirit of Murder as Wikipedia relates Englewood was the home of Dr. H. H. Holmes, one of the first publicized serial murderers in America. I know of such things, because I reside in the Sea Breeze Apartments, in Bellingham; one of the apartments here at one time was a morgue. The Spirit of Morbidity pervades: that is why so many antisocial people live in my building and in “the hood “.  Yet, I like it here because I have a nice ocean view and goda low rent. Wikiepedia further relates Englewood is noted for Rappers Chief Keef, Lil Durk, and Lil Reese. And also relates Englewood has a poverty rate of 44%, which is substantially higher than the overall poverty rate in Chicago of 20%. Natalie Moore reports in WBEZ 91.5 Chicago’s highest murder rate in Englewood. Harvey, a young black male, relates The Englewood police district clocked in more murders in 2011 than any other district. The area’s crime problem is amplified because of other urban ills afflicting the neighborhood. Unemployment in and around Englewood is a whopping 35 percent. The article concludes It’s like what 16-year-old Harvey, the teenager who has had five friends die, says: He’s tired of going to funerals.

2) … Ambrose Evans Pritchard calls for a stop to austerity measures, a defacto debt jubilee, as well a periphery European government union.

Ambrose Evans Pritchard proposes that Europe’s crisis states should fight back with a ‘debtors’ cartel‘. The former head of the IMF’s team in Ireland, Professor Ashoka Mody, has called for “a complete rethinking” of the austerity strategy. He confirmed what the Irish trade unions and others have said along: that fiscal overkill is self-defeating, especially if compounded by tight money. “Given the debt dynamics, if debt levels remain where they are and growth remains where it is, there is never going to be a reduction in the debt ratio the foreseeable future. Moving away from austerity at this stage is a sensible course of action,” he said. Ireland is certainly not a basket case. It has a fat trade surplus. Exports are 105pc of GDP, compared to 30pc or less most for Club Med. It is well able to compete at the current exchange rate. Ireland’s policy of austerity cuts and “internal devaluation” has done wonders for the trade account, but only at the cost of an even deeper debt-deflation crisis. This is the fundamental contradiction of EMU crisis strategy in every high-debt country. The more these economies deflate wages, the more they raise the real cost of debt.

“These countries are walking a very fine line,” said Marchel Alexandrovich from Jeffereies Fixed Income. “Once debt gets to the 130pc level there is a risk that markets will start to wake up. The moment truth could come as soon as political stability is called into question in any one of these countries.” Portugal has been flirting with just such a crisis ever since the finance minister and austerity chief, Vitor Gaspar, stormed out three weeks ago.

Having now imposed the “Cyprus template” of losses on bank depositors above €100,000 as was all bond-holders if lenders get into trouble, how can they hope to contain systemic banking crisis in Portugal if investors start to fear that the situation is getting out of hand again.

The North still refuse to accept its joint responsibility for capital and trade imbalances that lie behind the EMU debacle, and still refuse to recognize that excess northern savings flooded Club Med, with the complicity of the European Central Bank.  

(I comment that this is a pejorative statement coming from a liberal talking head, that is Europe’s version of politically incorrect Paul Krugman, its like Wikipedia which refers to the renaming of French-fried potatoes to “Freedom fries”.[38]  Furthermore such a political line denies the Nordic Latin Divide that is the EMU North South Chasm which has its origins in cultural and natural differences and denies the meritocracy of the industrious North as contrasted with the profligate south. Germany traveled along a line of industry, thrift and Capitalism, while the periphery nations traveled along a line of moral hazard European Socialsm; and worse yet patronage, pork, anticompetitiveness, and clientelsism Greek Socialism. It seems Mr Pritchard doesn’want to pay Liberalism’s EU pied pipers such as Nigel Farage)  

There is condign retort to the creditor cartel. The peoples of southern Europe could at any time choose to form their own debtors cartel and turn the tables. They could confront the creditors with a stern ultimatum. Either you change the entire structure of EMU crisis policy, agree to a reflation strategy, and accept your share of the clean-up costs for this collective disaster, or we repudiate our debts. Either you meet us half way, or we take long overdue steps to protect our societies against mass unemployment, and to prevent our industrial base. It is time for Southern Europe to look after its own interest once again

(I comment that the fallout of the abandonment of the  terms of the Maastricht Treaty means a change in governance is coming, that being national democracies will fall to the governance of regional tyranny.

Bloomberg reports Spanish pension raids spell bad news for bond sales. Spain’s Treasury may find one of its best customers less eager to buy its bonds as budget woes lead Prime Minister Mariano Rajoy to raid a government piggy-bank for a second year. “The fund isn’t in a position to accumulate assets anymore, it may even have to sell,” said Jose Antonio Herce, a partner at consultancy firm Analistas Financieros Internacionales in Madrid. “There are more and more pensions to pay and less and less money coming into the Social Security, the fund will melt quickly no that we’ve started taking money out of it. And Tyler Durden of Zero Hedge writes Euro area government debt rises to new record high.

The EMU’s debts both sovereign and banking reflect the failure of European socialism and Greek Socialism, and the creation of insolvent soeverigns and insolvent financial institutions, whose seigniorage, that is moneyness comes from the diktat of the monetary authority of the ECB, and not from the marketplace trust of investors.  While indeed the debt are one day going to be repudiated, they can never be disannulled, they will be applied to every man woman and child in the Eurozone by nannycrats whose soveignty will come from EU leaders who meet in summits, to renounce national sovereignty and pool soveregnty regionally to establish statist regional governance and totalitarian collectivism for regional security, stability, and sustainability.

The collective disaster was planned in eternity past by God, and announced by the prophet Daniel in Nebuchadnezzar’s Statue of Empires dream of Daniel 2:25-45, where the Eurozone will be the first toe of iron diktat and clay democracy coming out of the failure of iron impression of a company of nations, that being the British Empire, and the US Dollar hegemony of the great nation, the US.  And was foretold by the aposlte John in Revelaton 13:1-4, where the Beast Regime of regional governance and totalitarian collectivism will arise out of the profiligacy of the Mediterranean Sea nations of Portugal, Italy Greece and Spain.)

3) … Financial market activity for this week

On Monday, July 22, 2013, Gold, $GOLD, rose so strongly that it drove the US Dollar, $USD, to trade lower at $82.32. Zero Hedge reported over the weekend that Gold breaks above $1300 as shorts cover most in 4 months. Gold, $GOLD, closed higher at its 50 day moving average at $1,334. The Gold ETF, GLD, closed up 3.0% at 128.84. And the Silver ETF, SLV, closed up 4.7% at 19.77.

Any presentation of the traditional measure of wealth, that being the S&P 500, SPY, should now be presented with a presentation of Gold, GLD, as the very basis of wealth is transitioning from fiat to physical. Bond vigilantes gained control of the credit market calling the Interest Rate on the Ten Year Note, ^TNX, rising to 2.01% on May 24, 2013, and that this was an “extermination event” which terminated Liberalism, ending both its policy of investment choice and its credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, currency carry trade investing, securitization of debt, dollarization, financialization of stocks and ETFs, such as corporate bonds which convert into stocks, all of which created capital for corporations to operate and revenue for governments to operate. Debt deflation is underway as currency traders are selling Major World Currencies, DBV, and Emerging Market Currencies, CEW, short. In the age of Authoritarianism, wealth can only be preserved by investing in and taking possession of gold bullion either in physical form or by trading on an Internet Platform such as Bullion Vault or Gold is Money.

Swiss Banks, UBS, CS, rose strongly driving European Financials, EUFN, higher.

Bank of America, BAC, and Citigroup, C, rose strongly driving the too Big To Fail Banks, RWW, higher.

Regions Financial, RF, rose strongly, taking Regional Banks, KRE, higher, and the Small Cap Pure Value Stocks, RZV, higher.

Brazil Banks rose strongly taking Brazil, EWZ, EWZS, higher.

Argentina Banks rose strongly taking Argentina, ARGT, higher.  

Celgene, CELG, rose strongly taking Biotechnology, IBB, higher.

A number of stocks are greatly ovevalued. These include Electric Utilities, ITC, BKH, UNS, OGE, NEE, IDA, LNT, seen in this Finviz Screener. And these include Small Cap Pure Growth Companies, RZG, such as the following. Homebuiling supply company PGTI which engages in the manufacture of residential impact resistant windows and doors. US Infrastructure company MWA which engages in the manufacture of products used in the transmission, distribution, and measurement of water. Industrial equipment manufacturer TRS. And industrial equiment rental company HEES which rents aerial work platforms, cranes, earthmoving equipment, and industrial lift trucks. The companies, PGTI, MWA, TRS, HEES, are seen together in this ongoing Yahoo Finance chart.

Zero Hedge reports 25 facts about the fall of Detroit that will leave you shaking your head.

On Tuesday, July 23, 2013, Regional Banks, KRE, Emerging Market Financials, EMFN, Far East Financials, FEFN,  and Chinese Financials, CHIX, rallied, to produce what is likely a grand finale completion of liberalism’s fiat wealth seen in the charts ofWorld Stocks, VT, US Stocks, VTI, Nation Investment, EFA, and Small Cap Nation Investment, IFSM, and as is seen in the combined on going Yahoo Finance Chart of KRE, EMFN, FEFN, CHIX, and EUFN. Banks, BPOP,  SMFG, LYG, all rose to a new rally highs today. Investment Banker, JPM,  and Stockbrokers, IAI, rose to a new rally high.

The slight trade lower seen in the chart of the S&P 500, $SPX, SPY, to $1,692, very likely reflects a market high yesterday Monday, July 22, 2013, at 1696, as an Elliott Wave 5 High, as S&P High Beta, SPBH, traded, 0.3%, lower today, and, S&P Transports, XTN, traded 1.2% lower, today.  Large Cap Financials, JKF, including Life Insurance companies, such as, PRU, seen in this Finviz Screener, rose to new rally highs, suggesting that a market top in the S&P 500 has been attained. S&P overweight Exxon Mobil, XOM, traded to an all time new high of 95.    

Today’s financial rally took the fifty leading Eurozone ADR’s, seen in this Finviz Screener, to a new rally highs. Netherlands’ Life Insurance companies, ING, and AEG, rallied the Netherlands, EWN, to a new all time high. Banco Santander, SAN, rallied Spain, EWP, strongly today. Ireland’s, COV, and IR, traded lower, suggesting that the rally in Ireland, EIRL, to a new high, is now complete.

The Small Cap Countries which have recovered the most in the last month include EPHE, THD, KROO, EWW, EZA, and EGPT, seen in their combined ongoing Yahoo Finance Chart.  The Major Countries which have recovered the most in the last month include, NORW, EWD, EWL, EWT, and EWY, seen in their combined ongoing Yahoo Finance Chart.

The 200% ETF of the US Dollar, $USD, UUP, traded to middle of a massive broadening top pattern at 22.19, suggesting a soon rise once again, before the US Dollar, $USD, falls lower with all of the world currencies into the Pit of Financial Abandon.  Action Forex reports the EUR/JPY closed at 131.59; and Yahoo Finance Chart shows the EURJPY ralling higher at market close, taking the Eurozone, EZU, higher.   

Aerospace, PPA, and Automobiles, CARZ, rose to new highs.

In yield bearing equities, International Telecom, IST, and Leveraged Buyouts, PSP, rose to new rally highs. Global Utilities, DBU, and Electric Utilities, XLU, rose strongly

China recovery, FXI, recovey over the last month is seen in the rallying of the following, CHXX, 9.1, CHII, 6.5, CHIX, 6.4.  

Emerging Market, EEM, recovery over the last month is seen in the rallying of the following:

Emerging Markets, EEM, 8.6%, with EWW, 14.0, EPHE, 13.5, EZA, 11.0, THD, 11.0, KROO, 9.0.

Far East Financials, FEFN, 11.9 %, such as WF, and SHG.  

Emergning Market Financials, EMFN, 7.9

Brazil Financials, BRAF, 7.9

China Financials, CHIX, 6.4

Emerging Market Small Cap Dividend, DGS, 6.1

India Earnings, EPI, 5.9; of note IBN traded 1.7, and HDB, traded 2.2, lower today; the latter is a train wreck waiting to hasppen.

Emerging Market Technical Leaders, PIE, 9.2%

Emerging Market Infrastrcture, EMIF, 9.1

Steel, SLX, 8.8, which has taken practically all of the following US Metal Manufacturing companies,  STLD, RS, NUE, CRS, GTLS, WOR, NWPX, VMI, MLI, GHM, CMC, PCP, ITW, PKOH, seen in this Finviz Screener to rally highs; giving zombie life to BUT, WLT, CLF, as well as SLC..  

Industrial Mining, PICK, 7.3

Emerging Market Mining EMMT, 7.1

A recovery from debt deflation, reflecting somewhat of a recovery in sovereignty, is seen in the rallying of the seigniorage of democratic country governance over the last month.     

World Treasury Bonds, BWX, 2.5  

Emerging Market Bonds, EMB, 6.7

Emerging Market Currencies, CEW, 2.8

Aggregate Credit, AGG, 1.2

And a recovery from debt deflation is seen in the Inverse of the Japanese Bonds, JGBS, trading to a two month low, with Business Week reporting Japan bonds rise to 2-month high after elections, BOJ purchases.

A recovery from interest rate increase shock, specifically the sharp rise in the Interest Rate on the US Ten Year Note, ^TNX, on a Steepening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, is seen in the rallying of the following over the last month,

Small Cap Real Estate, ROOF, 8.4

Residential REITS, REZ, 9.1

Commercial Office REITS, FNIO, 12.1

The short selling opportunity of a lifetime has developed. Look for strong derisking to come out of fiat asset invesment leaders, such as these forty, XIV, FDN, CARZ, PBS, IGV, IBB, RZV, PSCI, PBD, PPA, IAI, SPHB, SMH, XRT, PJP, EWN, PSP, UJB, KRE, TAN, RXI, WOOD, FLM, LNKD, LYG, ,MFG, BPOP, SLM, JPM, NNI, UBS, BLK, NMR, MKTAY, PSUN, DORM, GE, IP, CHTR, and ING, seen in this Finviz Screener. The days of risk on investing, ONN, are over, though, done, and finished. Small Cap Pure Value, RZV, and Biotechnology, IBB, both traded lower today from market highs. And Banks and Creditors such as NMR and SLM are disasters waitning to happen.

Jesus Christ, operating in the economy of God, Ephesians 1:10, that is the political and financial administration plan of completing every age, epoch, era and time period, bringing forth its total fufillment, likely pivoted the world fully out of the era of investment choice and into the age of ditkat, today July 23, 2013; a process which He began on May 24, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose strongly to 2.01%, serving as an “extermination event” which terminated Liberalism and introduced Authoritarianism; this rate rose again today from its recent low of 2.49% to 2.52%.    

Volatility, ^VIX, finally rose. The walking dead market, that is the zombie market is likely over. Liberalism’s schemes of credit liquidity, AGG, FLAT, and carry trade, ICI, funded safehaven investing probably came to an end today, Tuesday, July 23, 2013. The safe haven rally in US Based stocks appears to be over, as the premium of Biotechnoloy over Emerging Markets, seen in the chart of IBB:EEM, has exhausted. And the safehaven rally in the Netherlands, EWN, appears over as its Electronic Equipment Manufacturer, PHG, and its Scientific Instrument Manufacturer, ST, traded lower. And the safehaven rally in Design Build Companies, FLM, appears over as its leader,  JEC, traded lower. And the safe haven rally in Leveraged Buyouts, PSP, appears over as two of its leaders, IP, and GE, traded lower.  There now be no more safe haven investments from the terror of bond vigilantes calling interest rates higher globally and the currency traders following suit with competitive currency devaluation, and as Zero Hedge reports SEC warns: prepare for repo defaults.

The rise of Authoritarianism’s schemes of debt servitude, such as Greek Bailout III, and the Cyprus Bank Deposit Bailin, mean that wealth can only be preserved in the physical possession of gold bullion, or in Internet trading vaults such as Gold Is Money or Bullion Vault, which reports Gold prices “driven by short covering”.

Jim Sinclair writes in JS Mineset Comex must change its delivery mechanism soon  The cause of today’s spectacular rise in the gold price is the reality that with Friday continues large drops in the Comex warehouse gold inventory. No cogent argument can be formed against the reality that because of the continued fall in gold inventory that within in 90 days or sooner the Comex must change its delivery mechanism. With manipulation coming to an end the true value of gold will be discovered by the cash exchanges that are now taking birth. The advent of the cash spot exchanges around the world is the natural demise of the Comex set up as convertible and now being converted. As long as one can buy spot, pay insurance, transportation and re-casted by Rand Refinery to Asian products sold profitably, the demands for real gold are ending the hay days or even existence of the futures exchanges. Gold is headed back to be traded as it was before 1973.

 

A genuine statement is that Gold is not Gold Mining Stocks, and Silver is not Silver Mining Stocks. Junior Gold Stocks, GJXJ, such as TRX, Gold Mining Stocks, such as EGO, Junior Silver Mining Stocks, SILJ, such as, SSRI, and Silver Mining Stocks, such as SLW, continued rising strongly, as is seen in their combined ongoing Yahoo Finance Chart.  I have never recommended these types of stocks. and never will; I have always advocated ownership of gold bullion.   

On Wednesday, July 24, 2013, With the Interest Rate on the US Ten Year Note, ^TNX, rising to 2.59%, debt deflation recommenced, turning Aggregate Credit, AGG, lower, as The Zeroes, ZROZ, 30 Year Government Bonds, EDV, The 10 Year Notes, TLT, World Government Bonds, BWX, Emerging Market Bonds, EMB, and Junk bonds, JNK, traded sharply lower.

Inverse Volatility, XIV, traded lower as Volatility, ^VIX, TVIX, VIXY, rose as World Stocks, VT, the S&P 500, SPY, and Global Industrial  Producers, FXR, traded lower. All of these forms of fiat wealth traded lower from an Elliott Wave 5 high, as the monetary policies of the world central banks, are no longer able to support global growth, corporate profitability, and economic trade; and have actually  turned “money good” investments bad.    

Today, the divergence between economic data and investment experience began to narrow as Tyler Durden writes Stocks had their worst day in a month and Treasuries their worst day in 3 weeks. Via Markit: The pace of manufacturing growth nevertheless remains well below that seen at the start of the year, in part reflecting weaker demand from many export markets, notably China and other emerging economies. Employment growth is disappointingly weak as a result, as firm focus on cost-cutting to boost competitiveness.

The Business Insider writes Caterpillar just downgraded the whole world.

And The Business Insider writes China Manufacturing weakens further as slowdown deepens.

Bond vigilantes will increaingly be calling the Interest Rate on the US Ten Year Note, ^TNX, higher, as well as Steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, causing debt deflation, that is bond, stock, and competitive currency deflation.

Yield bearing investments trading lower included, Brazil Financials, BRAF, Utilities, XLU, India Earnings, EPI, and Global Utilities, DBU, as well as Residential RETIS, REZ, Mortgage REITS, REM, Industrial Office REITS, and Small Cap Real Estate, ROOF.  

Sectors trading lower included, Solar, TAN, Metal Manufacturing, XME, Coal, KOL, Metal Mining,  PICK, Steel, SLX, Home Building, ITB, and Semiconductors, SMH. Energy sectors trading lower included Small Cap Energy, PSCE, Energy Production, XOP, Energy Service, OIH, IEZ. Gold Miners, GDX, and Silver Miners, SIL, gave back yesterday’s gains.

Banks trading lower included, Chinese Financials, CHIX, Japanese Banks, MTU, SMFG, Bank of America, BAC, and Regions Financial, RF.  

The Emerging Markets, EEM, traded lower, being led so by Turkey, TUR, Egypt, EGPT, Vietnam, VNM, Thailand, THD, Indonesia, IDX, Peru, EPU, Brazil, EWZ, India, INP, and China, FXI.

Emerging Market Currencies, CEW, and Major Currencies, DBV, such as the Australian Dollar, FXA, and the Brazilian Real, BZF, traded lower.

Robert Wenzel posts The best introduction to Austro Libertarianism ever given. Walter Block writes  writes in Lew Rockwell that Tom Woods gave the opening address for Mises University July 21 -27 2013 where he spoke on the subject of “A life changing event”, and conveyed the resource of Mises University as a school of Austrian Economics, providing a cornucopia of material free of charge.

The video helped me to sharpen my understanding that true liberalism is the conviction that Jesus Christ is at the helm of the economy of God, and that He is acting in dispensation, that is the household administration of things, to terminate all empires outside of His Kingdom.         

In May 2010, God started replacing credit with debt servitude with Greek Bailout I, and then more so with the Cyprus Bank Bailin, in May 2013, with the ultimate aim of eliminating the double entry accounting system with the soon coming Advent of Christ, and the establishment of His 1000 year rule and reign of humanity from Jerusalem.  Thus there will never ever be any free market economy as conceived of the Austrian economists. The rise of the Interest Rate on the US Ten Year Note, ^TNX, to 2.1% on May 21, 2013, was an extinction event that terminated Liberalism and introduced Liberalism.       

And the video helped me to sharpen my thinking that ethics is defined as economic regard for the person and property of another, where there is a process of the household administration of things monetary, political, spiritual and physical, involving stewardship and responsibility of action, which is free from intervention and preemince of nonhouse hold parties.  A dispensation based definition of ethics comes from the development of spiritual understanding, and evolution of wisdom, where a person is increasingly receptive to the movement of God’s Spirit in his life, and is based upon the restoration ideas of John Calvin, and the recovery ideas of Witness Lee, whereby one becomes a person of God’s grace, and experiences Christ as one’s all inclusive life experience.

The WSJ reports Bond investors turn to cash. Investors are cashing out of bonds but remain hesitant to plunge into stocks. An inquiring mind asks, will this show up in inflating M2 Money?  

Mike Mish Shedlock writes General Obligation bondholders beware: Detroit bankruptcy affirmed, Governor shielded from lawsuits; Triumph of math over unions. So, pensioners and bondholders both should take it on the chin. Expect a lot of municipal bond downgrades before too long.  I hope to be able to find news sources reporting on the hardships experienced by residents of Detroit as they deal with municipal service cuts.

On Thursday, July 25, 2013, Risk-On, ONN, turned to Risk-Off, OFF, as is seen in the former trading lower, and the latter trading higher, as Japanese Banks, MFG, SMFG, NMR, and Far East Financials, FEFN, traded lower, turning the Nikkei, NKY, and Sony, SNE, Tool Manufacturer, MKTAY, Semiconductor Equipment and Material Provider, ATE, lower, as Japanese Bonds traded lower, as their inverse, JGBS, traded higher, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened, as is seen in the Steepner ETF, STPP, steepening, thus documenting the failure of Kuroda Abenomics.  

It is Jesus Christ working in The Economy of God, specifically Dispensation, Ephesians, 1:10, to pivot the world out of Liberalism’s Age of Investment Choice, and into Authoritarianism’s Age of Diktat, by enabling bond vigilantes to call interest rates higher globally, brining forth debt deflation, terminating Inflationism, and starting Destructionism.    

US Homebuilders, ITB, fell 3.2%, as Home Improvement Stores, HD, LL, LOW, traded lower.  And US Infrastructure, PKB, traded 1.0% lower, as the following traded lower,

Industrial Textile Manufacturer, MHK,

Packaging and Container Manufacturer, GPK

Lumber Producer, LPX

Cement Manufacturer, EXP

Contractors, EME,

Building Material Providers, MAS, USG

Appliance Manufacturers, WHR, LII

Home Furninshing And Fixture Provider, FBHS

Specialty Retailer, TSCO

Business Services, CTAS

Producers MHK, GPK, LPX, EXP, EME, MAS, and USG, have been US Infrastructure, PKB, leaders.  

Appliance Manufacturers, WHR, and LII, have been Global Industrial, FXR, leaders.

Home Furnishing and Fixture Provider, FBHS, and Specialty Retailer, TSCO, have been Small Cap Pure Value, RZV, leaders.  

Workplace Uniform Provider, CTAS, has been a Business Services, BUSE, leader.

On the upside, Biotechnology, IBB, seen in this Finviz Screener, traded higher, as well as those in this Finviz Screener, traded higher.  And of note, Netherlands’, EWN, ASMI, fell 15%, while most its Semiconductor Materials And Equipment Manufacturers seen in this Finviz Screener, rose, and while most of the Semiconductors, SMH, led by TNQT, seen in this Finviz Screener rose, after Broadcom’s great fall lower earlier this week.  And Netherlands, EWN, Publisher, ENL, and UK, EWU, Publisher, RUK, blasted higher, taking Media, PBS, higher.

The disconnect between Eurozone stock values and economic conditions grew even greater today. Despite Charles Gave of GaveKal writing in Zero Hedge, Southern Europe walks on thin air, European Banks, SAN, IRE, DB, continued rallying, taking Emerging Market Financials, EMFN, European Financials, EUFN, Netherlands, EWN, Ireland, EIRL, France, EWQ, Germany, EWG, Spain, EWP, Italy, EWI, and Eurozone, EZU, with its ADRs, seen in this Finviz Screener, to new rally highs. Sweden, EWD, rose to a new rally high, Norway, NORW, and Poland, EPOL, rose strongly.

The strong rally in all of the Euro, FXE, centric Nation Investments, EWN, EIRL, EWG, EWQ, EWP, EWI, seen in their combined ongoing Yahoo Finance Chart, and the trade lower in the US Dollar, $USD, UUP, establishes the crack up boom nature of Liberalism’s grand finale boom-bust business cycle that comes via leveraged speculative investment choices under the interventionist world central banks’ monetary policies of easing, in front of next week’s US Federal Reserve policy meeting.

It has been Jesus Christ, operating at the helm of the Economy of God, specifically Dispensation, presented in Ephesians 1:10, producing a moral hazard based prosperity, that has created Liberalism’s Peak Wealth, seen in World Stocks, VT, the S&P 500, SPY, and Global Industrial Producers, FXR, Automobiles, CARZ, and Small Cap Pure Value Stocks, RZV, to name just a few, trading up to and then lower from their recent highs.

It is the interest rate sensitive stocks, ITB, XLU, DBU, REM, ROOF, REZ, FNIO, IYR, and DRW, and the Emerging Markets, EEM, EMFN, EMIF, EMMT, and Mining Stocks, PICK, REMX, KOL, COPX, and Growth Stocks, SLX, that have traded lower since May 21, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose to 2.01%, which literally destroyed Nation Investment, EFA, and IFSM, in countries such as ARGT, EPU, ECH, EWZ, INP, EZA, TUR, EWW, CHII, seen in their combined ongoing Yahoo Finance Chart, as well as in Asia Excluding Japan, EPP, FXI, EWA, THD, IDX, EPHE, ENZL, seen in their combined ongoing Yahoo Finance Chart.    

Jesus Christ has commenced the termination of Liberalism beginning with the announcement of Greek Bailout I in May 2013, with the provision of Christ’s “extinction protocol” whereby He released the Four Horsemen of the Apocalypse.  And He intensified His judgment upon mankind’s Banker centric, US Dollar Hegemonic Empire, with His “extinction event” of enabling the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher on May 21, 2013, to 2.1%, and then again higher today July 25, 2013, to 2.6%.  

For more details of how Jesus Christ is in dispensation, terminating the moral hazard based prosperity of Liberalism and introducing the austerity of Authoritarianism, one can read the Dispensation Economics Manifest presented here https://theyenguy.wordpress.com/about/

Facebook, FB, blasted higher, taking IPOS, FPX, to a new rally high.

Juniper Networks, JNPR, Amazon, AMZN, and Priceline, PCLN, traded higher, taking Internet Retail, FDN, to a new high.  

International Paper, IP, rose, taking Paper Producers, WOOD, seen in this Finviz Screener, to a new rally high.  

ETrade, ETFC, rose strongly taking, Stockbrokers, IAI, seen in this Finviz Screener, to a new rally high.

Life Insurance companies, seen in this Finviz Screener, rose to new rally highs.

Apparel Retailers, PSUN, DXLG, BEBE, and GPS, led Retailers, XRT, seen in this Finviz Screener, rose to a new high.

Delphi, DLPH, and others rose, taking Automobiles, CARZ, seen in this Finviz Screener, to a new rally high.

Visa, V, traded to a new rally high.

On Friday, July 26, 2013,   

Volatility, ^VIX, XVZ, TVIX, VIXM, rose during the morning, but closed lower, as the Yen, FXY, continued rising in overnight and day trading, stimulating the Nikkei, NKY, led by the Japanese Small Caps, JSC, such as the Makita, MAKTY, to trade lower, and causing investor angst, stimulating the most currency and carry traded of all investments, the Small Cap Pure Value Stocks, RZV, to manifest massively bearish engulfing, to trade 1.3% lower on the day.  Gary of Between The Hedges relates Bloomberg reports VIX contracts retreat to five year low. The cost of options protecting against U.S. stock swings fell to a five-year low, a sign to Russell Investments and Credit Suisse Group AG that investors are too confident in more equity gains after this year’s rally. Implied volatility for options on the Chicago Board Options Exchange Volatility Index has dropped 37% to 48.4 from a peak on June 20, according to data complied by Bloomberg on three-month contracts with an exercise price near the gauge. It reached 44.8 last week, the lowest since May 2008.

Far East Financials, FEFN, and India Earnings, EPI, as well as Brazil Financials, and European Financials, EUFN, and Regional Banks, KRE, led Global Financials, IXG, lower.   

Semiconductors, SMH, led by MU, TSM, FSL, SMTC, RFMD, ONNN, Semiconductor Materials, ATE, SEMA, TSRA, BRKS, Networking, IGN, Dig And Dirt Moving Stocks, DIDI, led by DRC, HEES, MTW, CR, Aerospace and Defense, PPA, led by BA, Automobiles, CARZ, led by GM, PCP, Design Build, FLM, led by JEC, URS, Paper Producers, WOOD, led by IP, Education Services, EDSE, led by LINC, and Credit Services, CRSE, led by DFS, traded lower.

Japan, EWJ, led Nation Investment, EFA, and Small Cap Naiton Investmetn, IFSM lower; countries trading lower included TUR, EPHE, RSX, EZA, EGPT, EPOL, NORW, ECH, and INP.

Switzerland’s CS and UBS, and Ireland’s IRE, led European Financials, EUFN, the Eurozone, EZU, and the Eurozone ADRs, seen in this Finviz Screener, lower.

Life Insurance Companies, such as PUK, seen in this Finviz Screener, traded lower  

The all time master carry trade, the Euro Yen currency carry trade, traded lower from yesterday’s rally high, as is seen in the chart of the EUR/JPY to close at 130.4; it has given the greatest seigniorage that is the greatest moneyness to the riskiest of assets, these being the Small Cap Pure Value Stocks, RZV, with, US Stocks, VTI, Eurozone Stocks, EZU, the Emerging Markets, EEM,  and lastly, Asia Excluding Japan, EPP, since the collapse of credit beginning in May 2013, as is seen in the combined ongoing chart of EURJPY, EZU, EEM, EPP, VTI, RZV, and AGG.   

Major Airlines, MAAI, seen in this Finviz Screener, rose on a lower price of Oil, USO.

Health Care, PTH, seen in this Finviz Screener, Biotechnology, IBB, seen in this Finviz Screener, and Pharmaceuticals, PJP, traded to a new rally highs.  

Washington Post writes Detroit: Liberalism can’t go on forever.

4) Financial Commentary for the week

Benson te writes governments in the US, Europe, Japan, England, etc. are all too broke to bail out their central banks. These governments are already insolvent. So if the central bank becomes insolvent, there won’t be anyone to bail them out..

I respond that insolvent central banks are unable to maintain control over interest rates (bond vigilantes are now in control of the interest rates, and thus currency treaders, through debt deflation, are in control of currencies), and that the traditional monetary policies of the central banks can no longer be maintained, and as a result corporate profitability, gloal growth and trade are disintegrating.

Inflationism is turning into Destructionism. Furthermore the democracies of  the Eurozone, Japan, the UK, Canada, and the US, being insolvent can no longer provide traditional governance. The very nature of governance and money is changing, all on the rise of the Interest Rate on the US Ten Year Note, ^TNX, as it soared past 2.1% on May 21, 2013, to today’s rate of 2.5% . Through a soon coming global credit bust and financial system breakdown, leaders will meet in summits and workgroups to annul tradtional sovereignty and pool sovereignty regionally to establish regional governance, where nannycrats will form public private partnerships with leaders from banking, industry, commerce and trade to establish regional security, stability, and sustainability.

Benson te continues For a central bank, assets are typically securities or commodities which have value in the international marketplace, such as gold or US Treasuries. Central bank liabilities are all the trillions of currency units floating around… dollars, euros, yen, etc.

I respond that the Assets owned by the Fed are the Distressed Investments taken in under QE1, and trade in value like the Fidelity Mutual Fund FAGIX, which has decreased 5% in value since the beginning of May, thus putting a bind on the balance sheet worth of the US Fed.

And Benson te writes This is one of the strongest indicators of all that the financial system as we know it is finished. When central banks can no longer credibly issue liabilities, and their home government are too broke to bail them out, this paper currency standard can no longer function.

I respond that out of soon coming credit and financial crisis, the fiat money system will be replaced by the diktat money system wherewhere diktat serves as trust, medium of exchange, wealth and power. Liberalism was characterized by full faith and credit in the world central bankers. Revelation 13:3-4, foretells that Authoritaritarianism will characterised by worship of the Beast Regime and its nannycrats. And Revelation 13:5-18, communicates that it will also be characterized by worship of a New Pharaoh and a New Prohpet.   

And Benson te writes As been repeatedly noted here, QEs by major central banks have been meant to shore up asset markets which underpins the assets on the balance sheets of crony banks, and their guardians, the central banks.

I respond the asset markets that have experienced the greatest inflation under QE have been the following ETFs: XIV, FDN, CARZ, PBS, IGV, IBB, RZV, PSCI, FPX, PPA, IAI, SPHB, SMH, XRT, PJP, EWN, PSP, UJB, KRE, TAN, RXI, WOOD, and FLM. And debt in the form of Ultra Junk Bonds, UJB. And individual stocks such as LNKD, LYG, SMFG, BPOP, SLM, JPM, NNI, UBS, BLK, NMR, MKTAY, PSUN, FB, GE, IP, CHTR, and ING, all seen in this Finviz Screener  

The rise of the Interest Rate on the US Ten Year Note, ^TNX, while rewarding investment choice in the above assets has decimated those exericing choice to remain in the interest rate sensitive stocks, ITB, XLU, DBU, REM, ROOF, REZ, FNIO, IYR, and DRW, and the Emerging Markets, EEM, EMFN, EMIF, EMMT, and Mining Stocks, PICK, REMX, KOL, COPX, and Growth Stocks, SLX, that have traded lower since May 21, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose to 2.01%, which literally destroyed Nation Investment, EFA, and IFSM, in countries such as ARGT, EPU, ECH, EWZ, INP, EZA, TUR, EWW, CHII, seen in their combined ongoing Yahoo Finance Chart, as well as in Asia Excluding Japan, EPP, FXI, EWA, THD, IDX, EPHE, ENZL, seen in their combined ongoing Yahoo Finance Chart.    

And Benson te writes Of course QEs has fostered a low interest rate environment, which in effect, subsidizes debt financed government spending and the welfare warfare bureaucracy that the banking system, by virtue of Basel regulations, holds mainly as ‘risk free’ collateral.

I respond that the greatest welfare has been to those receiving Social Security Disability, SSD/SSI, as well as free health care, surgery, prescriptions, Section 8 Housing Benefits, or Public Housing Assistance, with of course energy subsidies, and food stamps.  Millions of Americans live in dependency and clientelism, even though I believe they could work, after having going through the disability process of ajudication, and have “worked the system”, rather than work in any meritocracy. The worst offenders from my viewpoint are veterans with antisocial diagnosis as well as time spent in prison and now live as predators with all kinds of preeminent and mischevious behavior and even “make my day” killings.  

And Benson te writes So all these ‘merry-go-around” or ‘cul-de-sac’ or ‘loop-a-loop’ arrangement has been designed to eliminate the threat of insolvencies of the cartelized unsustainable centralized debt-based political economic system.

I respond that I see the day coming when, banks by edict, will be intergrated into the govrnment and be known as the government banks, or gov banks for short.

Doug Noland writes The yen rallied 2.6% this week. The big “macro” players are short the yen and long Japanese equities. The Nikkei was hit for 3.0% Friday. Yen strength seemed to play an important role in what was at the brink of developing into a bout of global market de-risking/de-leveraging back in June. Markets reversed sharply on assurances from the Fed, along with support from global central Banks and Chinese officials. Short covering and the reversal of hedges helped fuel a speculative run in stocks, especially U.S. and Japanese markets favored by the global speculators.

As a whole, the global hedge fund community continues to struggle for performance. The volatile and policy-dominated “risk on, risk off” dynamic is tough on many trading strategies. Global risk markets – currencies, commodities, EM, bonds and equities – remain minefields, particularly for multi-asset class approaches. I believe enormous leverage has been employed by myriad strategies, certainly including global “carry trade,” corporate, MBS and municipal debt. I’ll assume there’s no egregious LTCM-like leveraging, but I still worry a lot about global derivatives markets. I believe the world of speculative finance is full of problematic “crowded trades.”

A few weeks back the markets were again indicating fragility – and the Fed once again demonstrated its market-pleasing low tolerance for market weakness. The flaw in aggressive QE is the notion that the Fed will be able to back away from market intervention without major consequences. Fed stimulus can spur debt issuance, market risk embracement and speculation. But if that debt is mispriced and predominantly non-productive, the system faces unavoidable debt problems. If speculative leverage is playing a prominent role in inflating securities and asset markets, the system face unavoidable de-leveraging problems. If the already vulnerable household sector continues to load up on mispriced stocks and bonds, there will be negative consequences.

If there are major risk misperceptions endemic in the global marketplace – including with ETFs, the hedge funds, derivatives and perceived low-risk strategies – then there is latent market fragility that is only exacerbated by central bank liquidity injections and backstop assurances. I fully expect history to look back at the past year’s Draghi Plan, Fed open-ended QE, and Bank of Japan “Hail Mary” monetary inflation as misguided market interventions that set loose historic market Bubble excess. I will posit that global systemic risk is significantly higher today than it was a year ago. And if the current trajectory of global central bank market intervention continues, systemic risk will be even more problematic one year from now.

The U.S. dollar index declined 1.2% to 81.66 (up 2.4% y-t-d). For the week on the upside, the Japanese yen increased 2.5%, the New Zealand dollar 2.1%, the Swiss franc 1.1%, the Danish krone 1.1%, the South African rand 1.1%, the euro 1.0%, the Australian dollar 1.0%, the South Korean won 0.9%. the Canadian dollar 0.9%, the Swedish krona 0.8%, the British pound 0.8%, the Norwegian krone 0.7%, the Singapore dollar 0.2% and the Taiwanese dollar 0.2%. For the week on the downside, the Mexican peso declined 1.1% and the Brazilian real 0.4%.

Dave Ramsey writes 20 things the rich do every day.  So what do the rich do every day that the poor don’t do? Tom Corley, on his website RichHabits.net, outlines a few of the differences between the habits of the rich and the poor. Of note, 63% of wealthy parents make their children read 2 or more non-fiction books a month vs. 3% for poor, 6% of wealthy say what’s on their mind vs. 69% for poor. And 86% of wealthy love to read vs. 26% for poor. (Hat Tip to AskBlog)

Thank God for what amounts to free bus service here in Bellingham WA. I purchase a disability pass good for 3 months for $45; it enables me to ride the local bus system, which has all the new busses, courtesy of Patty Murray Earmarks; they are hybrid, energy efficient, and have the new comfort-ride braking and suspension system.  The bus system is supported by sales tax approved of by the voters. The wealthy of Bellilngham have gifted the poor with transportation. Not many ride the bus, only the poorest of the poor like me, the disabled, elderly, and Western Washington University students.

Today I was on the 331 bus, coming back from Bellis Fair Mall,  and as it went through Taco Flats, the poorest part of town, where the single moms living on TANF, Section 8 vouchers and Food Stamps reside. One physically fit young Hispanic man, with a tub full of dirty clothes dashed across the street to make the bus driver wait at the bus stop. In tow, was an obese, Hispanic single mom, with a gaggle of two children, who made the traffic stop in both ways. He put cash bus fair in for all. And they slipped into seating at the front of the bus. From my seat in the back, I saw two university coeds, shiver in dread at the sight enfolding in front of all. They both had the cosmetic look, you know, tanned, and oiled bodies, looking like the Liberalism’s Queen of Sheba, fit, trim and all things young and beautiful, adorned with Pacific Sunwear togs.  What a cultural contrast between those at the bottom, and those at the top. I see Liberalism’s upper crust children here in Bellingham, as generally one must have scholastic apptitude to attend WWU with both a high grade point average, high SAT scores, and some outstanding attributes on one’s application.  Bellingham’s economy has been one largely of an ocean tide of students coming to attend WWU; there is a fresh inflow of residents to the Sehome and York neighbors where there is a sea of homes rented out to students, where the upper crust students live; yet only 28% of the students go on to graduate!  Well back to the laundry crew on the bus; they got off at the new laundry, that is Q Laundry,which is near Trader Joe’s, located at 810 Alabama Street in Sunnyland Square, which was formerly the Bank of America lending branch office, which underwrote much of the rental property development and improvement here in Bellingham.

I’ve been poor since 1998, and have economic life, largely by the charity of others; in fact my John McArthur Study Bible, and my Witness Lee Recovery Version of the Bible, the only two forms of physical wealth I own, were both gifted to me!  I have no vehicle and have gotten around by bike and bus; but now I am too old to bicycle, so I have only the bus left.  Yes, thank God, for what amounts to Liberalim’s charity: the bus fare comes out to be about $0.50 a day; and a dollar a day is all the resource I have for transportation.

I appreciate those who have read my blog; I am giving serious thought to stop writing, as the chart of the S&P 500, $SPX, traded by SPY, topped out this week, losing 0.04%, World Stocks, VT, traded 0.26%, lower; the Small Cap Pure Value Stocks, RZV, traded 1.32% lower, and the Nikkei, NKY 2.2%, lower, documenting that the seigniorage, that is the moneyness of Liberalism, that being investment choice has failed. News reports communicate that both the seigniorage of Authoritarianism, that being diktat, and sovereignty of Authoritarianism, that being regional governance is increasing.  Robert Wenzel of Economic Policy Journal reports The EU is planning to ‘own and operate’ spy drones as part of a New Security Agency

Jesus Christ operating in the Economy of God, Ephesians, 1:10, terminating the sovereignty of the US Dollar Hegemonic Banker regime of democratic nation states and introducing the sovereignty of the Beast regime of regional governance where ten horns, that is ten world zones of nannycrat rule will emerge, and totalitarian collectivism will come to occupy in each of mankind’s seven institutions, as foretold by John the Revelator in Revelation 13:1-4.  

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