Archive for April, 2014

Regional Economic Governance Is Born Out Of The Failure Of Credit And The Death Of Currencies

April 30, 2014

Financial Market Report for the the last three days of April 2014

 

This post can be found in Google Document format here

 

1) … Investors rotated to the defensive sector in a desperate attempt to find a safe haven investment at the end of April 2014.

 

A) … On Monday, April 28, 2014, day traders took the defensive stocks, Electric Utilities, XLU, PUI, such as NEE, andConsumer Staples, KXI, to rally highs.

 

B) … On Tuesday April 29, 2014, day traders took International Energy Companies, IPW, TOT, E,  RDS-B, SNP,  STO, IMO, XOM, CVX, ECA, BP, SSL, SU, HES, CNQ, OXY, to rally highs, causing the Defensive ETF, DEF, as well as petroleum based nations Norway, NORW, Canada, EWC, the UK, EWU, Denmark, EDEN, and Italy, EWI, to rise to new rally highs, stimulating Nation Investment EFA, the Eurozone, EZU, and European Financials, EUFN, to new rally highs, despite a trade lower in the EURJPY.

 

Of note, the chart of the Eurozone Stocks, EZU, shows the diagonal ascending wedge pattern from which prices always fall sharply lower; stocks worthy of short selling include BUD, ASMI, COV, IR, DEG, NVS, NVO, MNK, AER, SNY, LUX, LYB, NXPI, ORAN, ST, TI-A, TS, CSTM, COV, SAN, UBS, LOGI, TEL, FWLT, NVS, ACE, TWM, WFT, GLOG, CMRE, TNP, TOT, and E.

 

The three defensive sectors, International Petroleum, IPW, Electric Utilities, PUI, XLU, and Consumer Staples, KXI, have rallied ten percent in the last three months, as is seen in their combined Yahoo Finance Chart.

 

Inasmuch as one sells into pips in a bear market, just as one buys into dips in a bull market, investors found numerous short selling opportunities, such as in the Life Insurance Companies, UK based PUK, US based GNW, and Netherlands based, ING, as well as in the Top Ten Energy Production Companies, SGY, GPOR, FANG, MTDR, WLL, CLR, EOG, EQT, BXE, and CRZO. The technology sector leader, Apple, AAPL, is an excellent short selling opportunity.

 

Outstanding Debt Trade Short Selling Opportunities include, ARLP, KR, HEES, URI, CE, HW, AHGP, WM, GE, SLCA, PKOH, TOWR, HUN, CAR, FISV, III, GNRC, MWA, BAH, IHG, IGTE, EXAM, POL, FUN, TUP, F, PGI, TOO, ABG, GLP.

 

One could use the Inverse Market ETFs as collateral in a short selling strategy, STPP, XVZ, JGBS, GLD, EUO, YCS, SAGG, DTYS, DNO, PPLT, PALL, HDGE, SBB, SBM, EFZ, YXI, SZK, SDP, KRS, REK, DDG, and CMD.

 

Inasmuch as the charts of the Agricultural Commodities, RJA, such as CORN, WEAT, JJG, SGG, JO, SOYB, have topped out, a farmer might consider might consider selling his farm and investigate International Living opportunities.

 

C) … On Wednesday, April 30, 2014,  India, INP, SCIN, Brazil, EWZ, EWZS, China, CQQQ, YAO,  ECNS, traded lower.

 

Steel, SLX, traded lower as Commodities, DBC, traded strongly lower as Base Metals, DBB, Copper, JJC, Aluminum, JJU, Silver, SLV, and Oil USO, BNO, plummeted.

 

The Interest Rate on the US Ten Year Note, $TNX, closed the month at 2.65%.

 

2) … News and Commentary

 

A) … Toyota to relocate its headquarters

Business Insider reports Toyota Is Moving Its US Headquarters From Torrance CA, To Dallas Texas. Texas Gov. Rick Perry reportedly courted Toyota by promising lower taxes and easier regulations,according to Bloomberg.

 

B) … By God’s design, the UK must be and will be subordinate to the Eurozone.

Jason Ditz of Antiwar posts UK Foreign Secretary William Hague Says Britain Will Accept Economic Damage to Sanction Russia … Insists anything that hurts Russia is a ‘price worth paying’.  

 

With the failure of credit seen in World Stocks, VT, trading lower from their rally highs, and the death of currencies seen in the Australian Dollar, FXA, and the Chinese Yuan, CYB, trading lower, it is God’s purpose and design  in the age of regional governance and totalitarian collectivism, that the UK, a signatory to Maastricht Treaty, exist as subordinate to the EU.

 

A new currency and governmental regime is rising out of the failure of credit and the death of currencies; it is the regime of regional diktat money and regional economic governance, something that is implicit in Daniel’s Statue of Empires, seen in bible prophecy of Daniel 2:25-45, where the two iron legs of global hegemonic power, these being the UK and the US, flow into the ten toes of iron diktat and clay totalitarian collectivism; these toes are the same reality seen in the governance of the ten horns, that is the ten world regions, and the totalitarian collectivism experience of mankind’s seven institutions, foretold in the Beast prophecy of Revelation 13:1-4.

 

C) … The price of oil, natural gas, and gasoline will be determined by diktat, as risk-on investing has turned to risk-off investing.

While Nation Investment, EFA, led by EWC, EWU, and Small Cap Nation Investment, SCZ, led by NORW, EDEN, and EWI, have risen to rally highs, global fiat asset prices are falling as the fiat money bubble has finally burst. Equity Investments, that is World Stocks, VT, and Global Financial Institutions, IXG, as well as Credit Investments, that is Aggregate Credit, AGG, are trading lower from their April 9, 2014, highs, this coming on the failure of credit in China, in Russia, and in the US.

 

Another word for credit is trust. Investors no longer trust that the monetary policies of the world’s central banks will stimulate investment gains, and thus are derisking out of debt trades, such as Leveraged Buyouts, PSP, and Mortgage Backed Real Estate, BX, and deleveraging out of currency carry trades.

 

With the bond vigilantes calling the Benchmark Interest Rate from 2.49% on October 23, 2013, to 2.6% on February 1, 2014, and now 2.65% at the end of April 2014, its  Global ZIRP no more. The Banker Regime of Pursuit Of Yield Bearing Investments, such as Water Resource, PHO, and more specifically High Yielding Debt Investments, such as Junk Bonds, JNK, is history.

 

The failure of credit came the week ending April 25, 2014, and constitutes the most significant economic event since President Nixon took the US off the gold standard in 1971

 

The failure of credit pivots  the world out of the age of credit and into the age of debt servitude, and is evidenced by the parabolic turn lower in Chinese Financials, CHIX, China Investments, YAO, China Technology, CQQQ, China Industrials, CHII, China Real Estate, TAO, as well as Regional Banks, KRE, the US small Caps, IWC, IWM, the National Bank of Greece, NBG, Greece, GREK, Ireland’s Bank, IRE, and Ireland, EIRL, as well as Credit  Providers Visa, V, and Mastercard, MA, the nation of Russia, RSX, ERUS, and Debt Trades, such as Blackstone, BX, and Leveraged Buyouts, PSP, and manifests as the death of Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB.

 

A new currency and governmental regime is being born out of the failure of credit and the death of currencies; it is the regime of regional diktat money and regional economic governance, something that is implicit in Daniel’s Statue of Empires, seen in bible prophecy of Daniel 2:25-45, where the two iron legs of global hegemonic power, these being the UK and the US, flow into the ten toes of iron diktat and clay totalitarian collectivism; these toes are the same reality seen in the governance of the ten horns, that is the ten world regions, and the totalitarian collectivism experience of mankind’s seven institutions, foretold in the Beast prophecy of Revelation 13:1-4.

 

The world economy will not be expanding; but prices may be headed higher on 1) global instability, 2) supply disruption, 3) lack of refinery capability, 4) diktat from regional leaders issuing mandates to refineries in the US, that is Valero, VLO, Marathon, MPC, Phillips 66, PSX, and Hollyfrontier, HFC; which may be restrained by diktat from exporting to certain countries and/or be told to whom and what price they will sell.

 

The price of energy, that is Crude Oil, USO, and its refined product, that is Gasoline, UGA, and its distributed product, that is Natural Gas, UNG, will be determined by diktat in the age of regional governance and totalitarian collectivism.

 

Regional leaders throughout the world, such as those in the US, in the Eurozone, will determine the economic value of things, and thus determine the distribution, and price of oil, gasoline and natural gas. There will be certainly be no free prices as desired by Austrian economists, and there will be no market determined prices as there has been by economic systems of Crony Capitalism, European Socialism, Russian Communism, and Chinese Communism. All of these isms are gone forever, and now there is the singular economic system, that is the singular ism of Regionalism, which provides policies of fascism to establish regional security, stability, and sustainability.

 

D) … Regional economic governance is born out of the see saw destruction of equity investments and credit investments, as bond vigilantes are calling the Benchmark Interest Rate higher from its October 23, 2013, value of 2.49%, and its February 1, 2014 value of 2.6%, to 2.65% at the end of April 2014.
A number of investors are still long stocks, or have gone long stocks, hoping for a bounce higher, and are short Treasuries. Those investors who are short Treasuries, such as the US Ten Year Note, TLT, are in for a rude surprise, as its chart shows it to be in the process of topping out and turning over.

 

 

John The Revelator wrote of debt deflation, beginning with Revelation 1:1, communicating those things which must shortly come to pass, meaning those events which when they occur, fall rapidly in place, like lined dominoes toppling one upon another. Both Equity Investments and Credit Investments are now trading lower; more specifically they are both  falling into the Pit of Financial Abandon, on the failure of fiat money, which is defined as the combination of Major World Currencies, DBV, and Emerging Market Currencies, CEW, together with Aggregate Credit, AGG.

 

The Small Cap Developed Market Nations, SCZ, that are at the greatest risk of debt deflation are MES, ENZL, EDEN, DFE, EWS, EWI, ENZL, and GERJ, as is seen in their ongoing Yahoo Finance Chart.

 

The Debt Loaded Emerging Market Nations, EMHD, that are at the greatest risk of debt deflation are IDX, THD, EPHE, THD, SCIN, EGPT, GXG, ARGT, GAF, and EMHD, as is seen in their ongoing Yahoo Finance Chart.

 

Not only are World Stocks, VT, Global Financial Institutions, IXG, trading lower from their April 9, 2014, highs; this coming on the failure of credit in China, in Russia, and in the US; but now Aggregate Credit, AGG, is also trading lower.

 

The collapse of fiat wealth is seen in the ratio of World Stocks, VT, unable to leverage higher over Bonds, BOND, VT:BOND.

 

A see saw destruction of fiat wealth is underway as the bond vigilantes are having success in calling the Interest rate on the US Ten Year Note, ^TNX, higher from its March 1, 2014, value of 2.6%, and are having success in steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, as Jesus Christ has released the Rider on the White Horse, that is the First Horseman of the Apocalypse of Revelation 6:1-2, to effect coup d’etats.

 

The US is increasingly losing its Dollar hegemonic power. In its place, the Ten Toed Kingdom of regional economic governance, as seen in Daniel 2:25-45, with toes of iron diktat and clay totalitarian collectivism, that is the diktat money system, which is defined as trust in the mandates of regional fascist leaders.

 

Some believe that Treasuries, GOVT, have many reasons to rally and will outperform their US equity counterparts into the end of 2014.

 

This will not be the case, as credit has failed; that is trust in the world central banks’ monetary authority has failed; and with currencies dying, there will be ever increasing inability to purchase US Debt, such as ZROZ, EDV, TLT, and MBB, as well as European Debt, EU.

 

Out of the death of fiat money, defined as the combination of Major World Currencies, DBV, and Emerging Market Currencies, CEW, together with Aggregate Credit, AGG, people will come to trust in the new money, that being diktat money, which is defined as trust in the mandates of regional fascist leaders.

 

New monetary authority will come out of a soon coming global financial system collapse, as leaders meet in summits to renounce national sovereignty, and announce regional framework agreements that establish policies of diktat and schemes of totalitarian collectivism for regional  security, stability and sustainability. Leading European Bankers such as those profiled on the Center for Financial Studies, CFS, a Rothschild organization, will be the talking heads establishing diktat money.

 

On Tuesday, April 29, 2014, the demand for defensive International Energy, IPW, was so strong that it took Italy, EWI, and France, EWQ, to rally highs based upon Italy’s ENI, E, and France’s Total, TOT; thus driving Dividends Excluding Financials, DTN, as well as European Financials, EUFN, and the Eurozone Stocks, EZU, to new rally highs; this despite a trade lower in the EUR/JPY, as the Euro, FXY, traded down lower more than the Yen, FXY.

 

According to logic flowing from Bible Prophecy of Revelation 13:1-4, in the Eurozone, EZU, after the crash of the European Financials, EUFN, the Eurozone Nations, and the Eurozone Stocks, the periphery nations, that is the Club Med Nations, Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, known as the PIGS, will exist as hollow moons revolving around economic planets Germany and  Brussels with confirmation coming from the Green Quiz post. Merkel Expects Structural Reforms In Rome. There is a certain expectation in Germany, given by the new style of Renzi, but also some skepticism dictated from above. “When it comes to reforms, will not be like his predecessor Mario Monti, recently wrote Thomas Mayer, the Center for Financial Studies and a former chief economist of Deutsche Bank, that after a good take-off is back on earth.”

 

Kumaran Ira of WSWS posts Pointing To Rise Of Neo Fascists, Banks Demand Austerity In France.

Financial markets are calling on the Socialist Party government of Prime Minister Manuel Valls to intensify attacks on the working class

 

3) … Where is the world headed?

Mark Thoma reports that the Milken Institute gathered the greatest economists of our time to ask  ‘Where the World Is Headed’

 

The panel brings together prominent economists to debate a range of issues with global scope: from inequality and emerging markets to austerity policies and the impact of technology on employment. This will be a free-ranging discussion focused on where the world is headed and what can be done to improve economies and people’s lives everywhere.

  • Speakers:Ken Rogoff, Professor of Economics, Harvard University; Former Chief Economist, International Monetary Fund
  • Nouriel Roubini, Chairman, Roubini Global Economics; Professor of Economics, Stern School of Business, New York University
  • John Taylor, Mary and Robert Raymond Professor of Economics, Stanford University; George P. Schultz Senior Fellow in Economics, Hoover Institution
  • Moderator:Gerard Baker, Managing Editor, The Wall Street Journal; Editor-in-Chief, Dow Jones & Company.

 

Justin Fox writes in Harvard Business Review Economics Is Due For A Paradigm Shift

 

I relate that one must look to the Author of Life and to the stewardship of His economic rule to understand where the world is going.

 

Life is an experience in sovereignty and seigniorage, where money is the credit and flow from sovereigns, who establish economic value.Money is created out of the trust in the policies and schemes of the prevailing sovereigns.  

 

With the repeal of the Glass Steagall Act and the creation of the Euro, both in 1999, the Banker Regime provided policies of investment choice and schemes of credit, which established fiat money, and generated stupendous prosperity in a number of communities; these include, Irvine, CA 92614, Carrollton, TX 75006, Lone Tree, CO, 80124, and Falls Church, VA, 22046.

 

As is seen in Revelation 6:1-2, Jesus Christ opened the First Seal of the Scroll of End Time Events, and enabled the Rider on The White Horse to begin his ride over the earth on October 23, 2013. This enabled the bond vigilantes to  wrest control of the Bow of Economic Sovereignty, that is the Interest Rate on the US Ten Year Note,  ^TNX, from the Banker Regime, and use it to transfer sovereignty to the Beast Regime, specifically  regional sovereign leaders, with the effect that credit has failed, and currencies are dying.

 

Debt deflation is causing disinvestment out of the most debt leveraged and currency carry trade leveraged investments, with the result that fiat money has died, and the Beast Regime is rising in power creating diktat money through policies of diktat and schemes of debt servitude. Diktat money is rising as the flag and standard of economic activity.

 

As is seen in Ephesians 1:10, Jesus Christ acting in the economy of God, perfected the former age and paradigm of credit and its seigniorage of investment choice, by producing peak wealth; and is now pivoting the world into the era and paradigm of diktat and its seigniorage of debt servitude.

xxxx

While Nation Investment, EFA, led by EWC, EWU, and Small Cap Nation Investment, SCZ, led by NORW, EDEN, and EWI, have risen to rally highs, global fiat asset prices are falling as the fiat money bubble has finally burst. Equity Investments, that is World Stocks, VT, and Global Financial Institutions, IXG, as well as Credit Investments, that is Aggregate Credit, AGG, are trading lower from their April 9, 2014, highs, this coming on the failure of credit in China, in Russia, and in the US.

Another word for credit is trust. Investors no longer trust that the monetary policies of the world’s central banks will stimulate investment gains, and thus are derisking out of debt trades, such as Leveraged Buyouts, PSP, and Mortgage Backed Real Estate, BX, and deleveraging out of currency carry trades.

With the bond vigilantes calling the Benchmark Interest Rate from 2.49% on October 23, 2013, to 2.6% on February 1, 2014, and now 2.65% at the end of April 2014, its  Global ZIRP no more. The Banker Regime of Pursuit Of Yield Bearing Investments, such as Water Resource, PHO, and more specifically High Yielding Debt Investments, such as Junk Bonds, JNK, is history.

 

 

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The See Saw Destruction Of Fiat Investments Commences On The Failure Of Credit In China, In Russia, And In The US

April 27, 2014

Financial Market Report for the week April 25, 2014

This post is found in Google format here

1) … Introduction

An inquiring mind asks, is it as Automatic Earth posts, QE: A Fraud Perpetuated By Made Men, …… or is it as Macronomics posts QE: The Hocus Pocus Of Magicians …… or is it as the Apostle Paul presents in Ephesians 1:10, QE: The Economy Of God By Jesus Christ?

He is perfecting every age, bringing it to full completion and maturity. He has been successful in perfecting the age and paradigm of credit and currency carry trade investing, by driving the Eurozone Stocks, EZU, up to their rally high on April 9, 2014, and then pivoting them lower, on April 10, 2014, and then pivoting them lower again on Friday, April 25, 2014.

The perfection of the age of credit and currency carry trade investing is seen in the trade lower in China, YAO, ECNS, TAO, CHIX, in Russia, RSX, ERUS, and in US Small Cap, IWC, IWM, as well as  US Regional Banks, KRE and Credit Providers, V, and Mastercard, MA.

In the final two years of the age of credit, Ireland’s Bank, IRE, and Ireland, EIRL, provided stellar debt trade and currency carry trade investment rewards to the savvy investor, as is seen in the combined  ongoing Yahoo Finance chart of Ireland’s Bank, IRE, Ireland, EIRL, Eurozone Stocks, EZU, Nation Investment, EFA, and the European Financials, EUFN.

The world passed through peak prosperity on April 9 2014, with the failure of credit in the Eurozone, in China, and in the US, as investors no longer trust that the monetary policies of the ECB, the PROC, or the US Fed to stimulate investment growth. The dynamos of creditism, corporatism and globalism are winding down as investors are derisking out of fiat money debt trades and currency carry trades.

Risk-on investing has turned to risk-off investing; the money bubble has finally burst, as both Equity Investments and Credit Investments as well as Nation Investment, and Small Cap Nation Investment, and Global Financial Institutions, are trading lower from their April 9, 2014, highs, this coming on the failure of credit in China, in Russia, and in the US.

Now, the investor is going extinct; especially the fixed income investor; that is those invested in a Pursuit Of Yield like those invested in Electricity Utility Stocks, PUI, XLU, such as New Era Energy,  NEE, Real Estate REITS, RWR, such as General Growth Properties, GGP, in Energy Partnerships, AMJ, such as Cheniere Energy, LNG, and Oiltanking Partners, OILT.

The failure of credit is an extinction event, that pivots the world economy out of liberalism, that is the paradigm and age of credit and investment choice, and into authoritarianism, that is the paradigm and age of diktat and debt servitude, which features the debt serf, is the centerpiece of economic activity.

Under the power of the Rider on the White Horse, as is seen in Revelation 6:1-2, the bond vigilantesare effecting a global economic coup d’etat, transferring sovereignty from democratic nation states to sovereign regional leaders and sovereign regional bodies, such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, and are powering up the singular dynamo of regionalism to establish regional security, stability, and sustainability, to deal with the destructionism of unwinding currency carry trades and debt trades, such as those now seen in Eurozone Small Cap Dividends, DFE, and the National Bank of Greece, NBG, trading lower.

Hans Werner Sinn provides the correct analysis of the European Debt Crisis writing Project Syndicate Europe’s Next Moral Hazard. The limit beyond which Eurozone governments’ creditors become anxious has been raised significantly by the bailout architecture put in place over the last two years. This will bring a few years of calm as debt levels climb steadily to that limit, before the architecture collapses, injuring ordinary citizens the most.

Europe and the world does not have several more years.

Out of a soon coming Financial Apocalypse, that is a credit bust and financial system breakdown, the Beast Regime, seen in Revelation 13:1-4, will rise to replace Banker Regime, and by implementing  policies of regional economic governance, and schemes of totalitarian collectivism, will establish regional panopticons of debt servitude, with the Eurozone Nations serving as the ultimate example of regional fascism.

There will be no European Mobility Assistance Scheme, as VOX authors hope. And there will be no UMP as Bruegel writes: The appeal of another LTRO-like operation seems quite small if not non-existent in such a context; therefore,The Time Has Come For Truly Unconventional Monetary Policy.

Jesus Christ is developing new sovereigns for a new age. Under liberalism, the speculative investment community provided seigniorage through money manager capitalism. Under authoritarianism, regional leaders provide seigniorage through the word, will and way of their diktat, a case in point being the Troika’s management of the Greek economy and the terms of assistance to Ireland. Ongoing policies, of diktat coming through the singular dynamo of regionalism, will be the basis for trust in diktat money to provide for regional security, stability and sustainability.

Specifically out of Eurozone sovereign, banking and corporate insolvency, leaders will meet in summits to renounce national sovereignty and announce pooled regional sovereignty, where regional framework agreements will provide the legal basis for regional economic fascism enabling leaders from Brussels and Berlin to rule in diktat establishing Europe as a preeminent world power.

All fiat investments, whether they be real estate, stocks or bonds, will for ever be going forever lower, as the cost of money, that is the Benchmark Interest Rate, that is the US 10-Year Treasury Constant Maturity Rate, … $TNX,  … will be going higher, from the range of 2.60% to 2.72%, as investors have concluded that the world central banks monetary policies can no longer stimulate investment growth.

 

2) … Financial market trading reveals that peak wealth was attained April 25, 2014.

 

On Monday, April 21, 2014, Russia Small Caps, ERUS, Emerging Europe, ESR, Mexico, EWW, and Chile, ECH, traded lower, leading Small Cap Nation Investment, IFSM, lower, as Robert Wenzel of EPJ reports Tensions Escalate In The Ukraine.

On Tuesday, April 22, 2014, the most speculative of all stock investments bounced higher. European Small Cap Dividends, DFE, Eurozone Stocks, EZU, and European Nations, such as Germany, EWG, as well as Australia, EWA, bounced higher, bouncing Nation Investment, EFA, higher.

 

Egypt, EGPT, German Small Caps, GERJ, Russell 2000, IWC, IWM, Gulf State, MES, Russia Small Caps, ERUS, Denmark, EDEN, Argentina, ARGT,  and Singapore, EWSS, bounced higher, bouncing Small Cap Nation Investment, IFSM, higher.

Regional Banks, KRE, Investment Bankers, KCE, Stockbrokers, IAI, European Financials, EUFN, and the Too Big To Fail Banks, RWW, bounced higher, bouncing Global Financials, IXG, higher.

Leveraged Buyouts, PSP, Australia Dividends, AUSE, Gulf Dividends, GULF, Smart Grid, GRID, International Telecom, IST, Emerging Markets High Dividend, EMHD, and Global Real Estate, DRW, bounced higher, bouncing Dividends Excluding Financials, DTN,  higher.

Sectors Solar Energy, TAN, Biotechnology, IBB, Pharmaceuticals, PJP, Nasdaq Internet, PNQI, Internet Retail, FDN, China Technology, CQQQ, Resorts and Casinos, BJK, Media, PBS, Cloud Computing, SKYY, Software, IGV, IPOs, FPX, Small Cap Pure Value, RZV, Small Cap Pure Growth, RZG, Consumer Services, IYC, Retail, XRT, Small Cap Consumer Discretionary, PSCD, Small Cap Consumer Staples, PSCD, Semiconductors, SOXX, Industrial Miners, PICK, bounced higher, bouncing World Stocks, VT, higher. Gold Miners, GDX, and Silver Miners, SIL, traded higher, on higher precious metal, JJP, prices.  Transports, XTN, such as Airlines, Trucking, and Railroads, traded higher on a lower price of Oil, USO. Energy Production, XOP, traded lower on a lower price of Oil, USO.

The Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher, to 2.73%, turning Aggregate, AGG, slightly lower.

Despite the trade higher in World Stocks, VT, Nation Investment, EFA, IFSM, and Global Financials, IXG, are unable to leverage higher over Aggregate Credit, AGG, as is seen in their combined ongoing Yahoo Finance Chart.

Economic Policy Journal posts the Tyler Durden Zero Hedge article The Fed’s Farcical Forecast Fiasco. In response, I write the age of jawboning is over; the Creature from Jekyll Island is having its teeth busted out by the bond vigilances; it has gone toothless; this is by God’s express design, as He has appointed His Son Jesus Christ to be sovereign in all things.

Jesus Christ has opened the first seal of the Scroll of End Times events, as is seen in Revelation 6:1-2, and has released the Rider on the White Horse, who has the Bow Without Any Arrows, that is the Bow of Economic Sovereignty, whereby the bond vigilantes have calling the Interest Rate on the US Ten Year Note, ^TNX, higher from its October 23, 2013 value of 2.48%, and have been steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, beginning in March 2014 and then again in April 2014, with the result of the failure of credit and the creation of coup d’etats worldwide, beginning in the Ukraine. Liberalism’s dynamos of creditism, corporatism and globalism, are winding down investment growth; and are powering up authoritarianism’s singular dynamo of regionalism establishing debt servitude.

A new sovereignty is emerging, that is the Beast of Revelation 13:1-4 is replacing the Creature from Jekyll Island; its seigniorage, that is its moneyness, of diktat money is replacing fiat money; this being evidenced by the Elaine Meinel Supkis post Biden gives Ukraine $70 Million In Bribes, Warns Of Corruption

 

On Wednesday, April 23, 2014, a see saw destruction of fiat investments commencedon the failure of credit in China.

China, YAO, China Real Estate, TAO, led by the Chinese Financials, CHIX, led Nation Investment, EFA, lower. And  Greece, GREK, led by the National Bank of Greece, NBG, Emerging Europe, ESR, Turkey, TUR, Philippines, EPHE, Thailand, THD, Mexico, EWW, and Chile, ECH, led Small Cap Nation Investment, IFSM, lower, as Mike Mish Shedlock posts China Manufacturing Output And New Orders Contract Once Again.

The concept is that credit stimulus of the PROC and world central banks is unable to produce on going economic growth, and as a result of this failure of credit, investments in the most credit stimulated investments, that is the most currency carry traded and debt traded investments is underway.

Robert Wenzel of EPJ posts US was the World’s Largest Petroleum Producer in December for the 14th Straight Month. Energy Production, XOP, and Energy Service, OIH, traded higher as Bill Van Auken of WSWS reports Kiev Regime Orders Crackdown As US Steps Up Threats Against Moscow. Biden’s visit to Ukraine produced an escalation of US threats against Russia and a resumption by the regime in Kiev of the crackdown against its opponents in the east of the country.

Dividend Excluding Financials. DTN, traded higher, as Gulf Dividends, GULF, Electric Utilities, PUI, XLU, North American Energy Partnerships, EMLP, Energy Partnerships, AMJ, Mortgage REITS, REM, traded higher, as the Benchmark Interest Rate, $TNX, traded strongly lower to 2.69%.

It is the Far East Financials, FEFN, such as Japan’s IX, MFG, SMFG, MTU, the Chinese Financials, CHIX, the Regional Banks, KRE, and the National Bank of Greece, NBG, that are leading all equity investments lower, on the exhaustion of the world central banks monetary authority, as investors greed has turned to fear; specifically fear that the world central banks policies no longer stimulate investment growth as is seen in their combined ongoing Yahoo Finance Chart.

Property And Casualty Insurance Firms, CB, TRV, ACE, AIG, ALL,most likely topping out in value.

And Closed End Funds, PTY, AWP, PFL, RCS, EIM, traded by the ETF, GCE, traded higher, most likely topping out in value, while CSQ, traded lower. The trade lower in Equity Closed End Fund, CSQ, relative to the Overall Equity Closed End Fund, GCE, CSQ:GCE, communicates that investors interest in closed end funds has likely peaked out.

Investors plowed money into Precious Metal Stocks, that is Gold Miners, GDX, GDXJ, and Silver Miners, SIL, SILJ. with the purest of plays, that being Allied Nevada, ANV, and Agnico Eagle Mines, AEM, rising the most. With high PE’s will Gold Mining Stocks, GDX, and Silver Mining Stocks, SIL, soar in value?

Aggregate Credit, AGG, bounced higher, as the Benchmark Interest Rate, $TNX, traded strongly lower to 2.69%. While US Treasuries, TLT, traded higher, Emerging Market Local Currency Bonds, EMLC, Emerging Market Bonds, EMB, and Chinese DSUM Bonds, DSUM, traded lower, turning the Chinese Yuan, CYB, and Emerging Currencies, CEW, lower, with Bloomberg reporting, Yuan Falls to Lowest Since 2012 as China Data Signals Slowdown, And Major World Currencies, DBV, turned lower on a lower Australian Dollar, FXA, largely on the fears that the world central bank’s monetary policies no longer stimulate investment growth, and in fact are now making “money good” investments bad.

 

On Thursday, April 24, 2014,  Nations, China, YAO,  ECNS, China Real Estate, TAO, and Russia, RSX,  ERUS, traded lower. and also Regional Banks, KRE, joined the debasement, and traded lower. The word trust is synonymous is credit. Their trade lower comes on the loss of trust in the PROC to cover debts of all types, the loss of trust in Russia to make good on its debt, and the loss of trust in Janet Yellen to provide sufficient stimulus to produce investments gains. This loss of trust represents a failure of credit in China, in Russia and in the US.

 

On Friday, April 25, 2014, Debt deflation, that is currency deflation, was active in the equity markets, driving stock investments of all types lower.

World Currencies, DBV, traded decisively lower, as the Canadian Dollar, FXC, traded lower, taking Canada, EWC, lower.

Emerging Market Currencies, CEW, traded lower, on a lower Ruble, FXRU, taking Russia, RSX, ERUS, lower; on a lower Brazilian Real, BZF, taking Brazil, EWZ, EWZS, lower; and on a lower Yuan, CYB, taking China, YAO, lower

Bloomberg reports G-7 Leaders Agree to Act Against Russia as Deal Falters. The Group of Seven nations are preparing new measures against Russia, German Chancellor Angela Merkel said, after U.S. Secretary of State John Kerry accused Russia of trying to impose its will at “the barrel of a gun.” And  Business Insider reports Merkel Warns Putin: You Have Failed The Peace Process, And New Sanctions Are Coming and Russia Says Kiev ‘Will Face Justice’ For ‘Bloody Crime’ In Ukraine.

Chinese Financials, CHIX, and Regional Banks, KRE, traded lower, leading Global Financials, IXG, as well as China, YAO, and the US Small Caps, IWC, IWM, lower. Of note, Visa, V, and Mastercard, MA, traded strongly lower, leading Credit Services, such as H&E Equipment Services, HEES, and United Rentals, URI lower; all evidencing the failure of credit, both in China, and in the US.

Russia, RSX,  ERUS, Emerging Europe, ESR, Taiwan, EWT, South Korea, EWY, Hong Kong, EWH, Singapore, EWS, Thailand, THD, US Small Caps, IWC, IWM, Brazil, EWZ, Brazil Small Caps, EWZS, China, YAO, China Small Caps, ECNS, Denmark, EDEN, Turkey, TUR, Chile, ECH, Greece, GREK, and Argentina, ARGT, trading lower, led Nation Investment, EFA, lower, evidencing the failure of currencies world wide.

Sectors Social Media, SOCL, Internet Retail, FDN, Nasdaq Internet, PNQI, Media, PBS, Solar Energy, TAN, Biotechnology, IBB, Cloud Computing, SKYY, Software, IGV, Resorts and Casinos, BJK, Automobiles, CARZ, Consumer Discretionary, IYC, Industrial Producers, FXR, Transportation, XTN, and Small Cap Pure Growth, RZG, traded lower, leading World Stocks, VT, lower. Building Materials traded lower. Semiconductor Equipment Manufacturers, such as AMAT, KLAC, TER, and  also Semiconductors, SOXX, traded lower on the trade lower in Taiwan, EWT, and South Korea, EWY, as John Glaser posts in Antiwar Obama Says Pact Obliges US to Protect Japan in Islands Fight. One can follow the ongoing debt deflation and failure of currencies with this Finviz Screener of Equity ETFs.

Dividends Excluding Financials, DTN, traded lower on the day, producing a rounded top high in these yield bearing stocks.

China Real Estate, TAO, led Global Real Estate, DRW, and US Real Estate, IYR, lower from their 10 Year Yield, ^TNX, credit induced market tops . Industrial Office REITS, FNIO, Residential REITS, REZ, and Retail REITS, traded lower lower, on the lower World Major Currencies, DBV, and lower Emerging Market Currencies, CEW.

Eurozone Stocks, EZU, traded lower on unwinding currency carry traded investing, as the Yen, FXY, traded higher than the Euro, FXE. Disinvestment out of the debt traded National Bank of Greece, NBG, and Greece, GREK, turned European Credit, EU, lower.

Energy Production, XOP, such as Gulfport Energy, GPOR, and Energy Partnerships, AMJ, such as Cheniere Energy, LNG, and Oiltanking Partners, OILT, and Refiners, such as Marathon, MPC,and Fracking Companies, such as Basic Energy Services, BAS, traded lower from their rally highs, on a sharply lower price of Oil, USO, as The California Beach Pundit posts Amazing Increase In US Oil Production. Look for the Ten Fastest Rising Energy Production Stocks, SGY, GPOR, FANG, MTDR, WLL, CLR, EOG, EQT, BXE, CRZO, to be the fastest fallers.

The Morgan Stanley Cyclical Index, $CYC, traded lower from its rally high as the WSJ reports Auto Maker Ford Reports Surprising 39% Profit Drop. Ford, F, cites costs to fix older vehicles, currency issues in South America; and as Alcoa Aluminum, AA, traded lower on a lower price of Aluminum, JJU. And the Serge Perreault chart of the $SPX, S&P 500, shows market top completion.

Aggregate Credit, AGG, traded higher, but resides below its April 10, 2014 high, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.66%, which, together with the 10:30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened, as is seen in the Steepner ETF, STPP, flattening, drove the Zeroes, ZROZ, 30 Year US Government Bonds, EDV, and the 10 Year US Notes, TLT, parabolically higher, to what is likely their rally highs.  Of note, the ongoing Yahoo Finance Chart of these US Debt Instruments shows that the Zeroes, ZROZ, have soared twelve percent in value since the first of the year, illustrating the dramatic movement that occurs in longer duration bond when the Benchmark Interest Rate, $TNX, trades lower. Mortgage Backed Bonds, MBB, traded lower from their April 9, 2014 high and Originator Times posts Freddie Mac: Mortgage Rates Reverse Course, Rise.  Emerging Market Local Currency Bonds, EMLC, Emerging Market Bonds, EMB, Emerging Market Corporate Bonds, EMCD, Chinese Bonds, DSUM, traded lower, on the lower Emerging Market Currencies, CEW.  European Credit, EU, traded lower from its all time high, evidencing failure of credit in the Eurozone.  One can follow the ongoing failure of credit with this Finviz Screener of Credit ETFs.  And one can follow the ongoing debt deflation and failure of currencies with this Finviz Screener of Equity ETFs.

Mortgage REITS, REM, and Electric Utilities, PUI,  XLU, traded higher to what is likely going to be their market tops, on the lower Benchmark Interest Rate, $TNX.

Gold Miners, GDX, traded higher as Gold, $GOLD, rose to $1,303, establishing that it has entered an Elliott Wave 3 of 3 Up; these are the strongest of all economic waves as the build the bulk of wealth on the way up to their Wave 5 high. It’s unlikely that Precious Metal Miners, GDX, and SIL, will rise much higher as companies such as American Barrick, ABX, already have a PE of 15.

 

3) … The week ending April 25, 2014, marked a pivotal week in the world’s economic history, as currencies are no longer floating, they are sinking, with the result that a see saw destruction of equity investments and credit investments has commenced; democratic nation state governance will soon literally crumble. The age of credit is history; the age of debt servitude has commenced.

The death of currencies commenced April 23, 2014. Major World Currencies, DBV, specifically the  the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB, the Russian Ruble, FXRU, traded lower, on the failure of credit in China, and in Russia.

The age of credit had its genesis and genius of the Milton Free To Choose economic doctrine, which encouraged President Nixon to go off the gold standard in 1971, and let currency float according to investment opportunities in democratic nation states.

Investors no longer trust the world central bankers, that is PROC banking leaders, Janet Yellen, or Mario Draghi, to sustain investment opportunities, as evidenced by the ongoing trade lower in the Chinese Financials, CHIX, Russia, RSX, ERUS, the Regional Banks, KRE, and the National Bank of Greece, NBG.

The failure of credit and the resulting death of currencies is seen in Nation Investment, EFA, Global Financials, IXG, and World Stocks, VT, trading lower from their rally highs; thus the destruction of equity investments has commenced; the destruction of credit investments, specifically Aggregate Credit, AGG, occurred in May, 2014. Hence a see saw destruction of fiat investments is underway.

Credit leveraged sectors experienced the sharpest decline on the failure of credit: these ten are Solar Energy TAN, Biotechnology, IBB, Internet Retail, FDN, Nasdaq Internet, PNQI, Media, PBS, Cloud computing, SKYY, China Technology, CQQQ, Small Cap Pure Growth, RZG, (as is seen in their combined ongoing Yahoo Finance Chart). Building Material Stocks have fallen strongly as well.

Technically speaking fiat money died the week ending April 25, 2014, as money is defined as the combination of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW. Inasmuch as Major World Currencies, DBV, and Emerging Market Currencies, CEW, have turned decisively lower, they now join Aggregate Credit, AGG, in trading lower, and thus fiat money died the week ending April 25, 2014.

Looking in the rear view mirror, Liberal writer Ambrose Evans Pritchard writes America Has Conquered Its Debt Crisis with incredible speed.  US Congressional Budget Office expects the budget deficit to drop to 2.8pc of GDP this year, and 2.6pc next year.

The age of debt servitude has its genesis out of the failure of credit and the death of currencies.

A new currency and governmental regime is coming out of the failure of credit and the death of currencies; it is the regime of regional diktat money and regional economic governance, something that is implicit in Daniel’s Statue of Empires, seen in bible prophecy of Daniel 2:25-45, where the two iron legs of global hegemonic power, these being the UK and the US, flow into the ten toes of iron diktat and clay totalitarian collectivism; these toes are the same reality seen in the governance of the ten horns, that is the ten world regions, and the totalitarian collectivism experience of mankind’s seven institutions, foretold in the Beast prophecy of Revelation 13:1-4.

Currency deflation is underway and it is going to be terrifically economically deflationary. Fiat money is failing; yes money is deflating in value. Currencies are the wheels that economies run on; their value comes from the coinage of sovereign authority. Now with the Benchmark Interest Rate, $TNX, rising, from 2.48% since October 28, 2013, destroying the value of money, sovereigns will be losing their shirts, and investors their skins, as the wheels of the world’s economies literally disintegrate causing the national economies to crash and burn; most certainly the Russian Ruble, and the economy of Russia being fatal examples of the disintegration of national sovereignty. Out of this disintegration, that is out of the death of money, will come an eastern economic fascist region replacing Russian communism.

New money will be coming from new sovereigns, that being regional sovereign economic leaders whose policies of diktat and schemes of debt servitude coin the new money, that being diktat money, and is defined as the word, will and way of regional leaders used to establish regional security, stability and sustainability.

Democracy no more; rather regional fascism will be the new normal. For Russia, as well as for China, economic capability will come via regional trade in commodities such a oil, natural gas, coal, and agricultural commodities featuring undollar, and non dollar bartering, and managed regional economies to establish regional security, stability, and sustainability.

Another word for credit is trust. Investors greed has turned to fear; fear that debtors will not repay lenders, with the result that the Pursuit Of Yield Investments such as Leveraged Buyouts, PSP, Emerging Market Financials, EMFN, Shipping, SEA, Chinese Real Estate, TAO,  Water Resources, FIW, Energy Partnerships, AMJ, and Global Utilities, DBU, which underwrote the age of credit, are now trading lower.  It’s “Hasta la vista baby” to Shippers, specifically the Greek shippers, NM, SB, DSX, NNA, TNP and GASS.

Global ZIRP, and the currency carry trade investing, such as the GBP/JPY, which drove up the value of the UK Small Caps, EWUS, as well as the debt trade, such as Prudential, PRU, it provided, ended on April 25, 2014, as the failure of credit, drove currency traders to sell the British Pound Sterling, FXB, relative to the Japanese Yen, FXY; seen in the chart of FXB:FXY.

Floating currencies no more: currencies, such as the Russian Ruble, FXRU, and the Chinese Yuan, CYB, are sinking. Debt deflation, that is competitive currency devaluation commenced at the hands of the currency traders on Wednesday April 23, 2014, on the failure of credit, causing deleveraging out of debt trades worldwide, such as Blackstone, BX, Leveraged Buyouts, PSP, such as Delphi, DLPH, and LKQ Corp, LKQ, and Global Real Estate, DRW, and derisking out of currency carry trades, such as Solar Energy, TAN, Biotechnology, IBB, Social Media, SOCL, Nasdaq Internet, PNQI, China Technology,  CQQQ, Cloud Computing, SKYY, Software, IGV, Media, PBS, Internet Retail, ITB, Retail, XRT, Homebuilding, ITB, Gaming, BJK, Industrial Miners, PICK, Timber Producers, WOOD, Steel Manufacturing, SLX, International Telecom, IST, as well as Small Cap Nation Investment, IFSM, such as the UK Small Caps, EWUS, Greece, GREK, Turkey, TUR, Thailand, THD, Mexico, EWW, Chile, ECH, India, SCIN, and Philippines, EPHE.

Liberal Economist Mark Thoma posts Assessing Fed Policy During the Great Recession. On the road again, will blog as I can; For now, I have a new column: Report Card on Fed Policy During the Great Recession, by Mark Thoma: If the economy evolves according to the Federal Reserve’s forecast, quantitative easing is on track to come to a close by the end of this year. Increases in the federal funds rate are likely to follow. Thus, as the Fed’s policies to combat the Great Recession are coming to an end, it’s time to ask: Did these policies work?

The policies of US Fed, have been under the direct supervision of Jesus Christ. Unknown to most, or at least unknown to Paul Krugman, the economy is very much a household, where Jesus Christ has worked behind the scenes, as presented by the Apostle Paul in Ephesians 1:10, serving in stewardship, maturing the Creature from Jekyll Island from its 1913 origins to the introduction of the Euro Currency in 1999, and the Repeal of the Glass Steagall in 1999, to perfect the speculative leveraged investment community, and its activities such as POMO, and to create policies that define the investor as the centerpiece of economic activity, and mature investment choice, which occurred on April 10, 2014, with the strong trade lower in World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG.

The policies worked in the US to secure economic growth both worldwide and in the US;  but not to secure employment. More importantly the policies worked worldwide to define, build and establish the investor as the centerpiece of economic activity. The April 2014 trade lower in Value Line 100 stocks, FVL, which has risen parabolically since 2008, documents that the life experience of investment choice is history, and by definition the identity of investor is being relegated to the dustbin of history.

Now, inflationism is turning into destructionism. Liberalism’s three dynamos of economic action, creditism, corporatism, and globalism, are winding down the age of credit, and in the process, terminating the investor as the centerpiece of economic activity.

The new normal is destructionism.

As the cost of money, that is the Benchmark Interest Rate, $TNX, rose from 2.48%, on October 23, 2014, to 2.66%, on April 25, 2014, investment derisking and deleveraging commenced, destroying the Banker Regime of democratic nation states and speculative leveraged investing, and introducing the Beast Regime of regional governance and totalitarian collectivism, which is establishing regional security, stability and sustainability. The singular economic dynamo of regionalism is powering up the economic life experience and the age of debt servitude, where the centerpiece of economic activity is the debt serf.

The bankers’ policies of investment choice created the most moral hazard based prosperity possible.

Now the bear market of all time, is underway, as the Distressed Investments, such as those taken in by the US Fed, and traded in the Fidelity Mutual Fund, FAGIX, and which underwrote the great investment swell since 2008, began trading lower on in March, 2014, and then again in April, 2014, communicating the failure of credit.

The failure of credit coming at the end of the week of April 25, 2014, constitutes the most significant economic event since President Nixon took the US off the gold standard in 1971, it pivots the world out of the age of credit and into the age of debt servitude, and is evidenced by the parabolic turn lower in Chinese Financials, CHIX, China Investments, YAO, as well as Regional Banks, KRE, the US small Caps, IWC, IWM, as well as Credit  Providers Visa, V, and Mastercard, MC, the nation of Russia, RSX, ERUS, and Leveraged Buyouts, PSP, and manifests as the death of Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB.

Commodities, DBC, manifested an evening star chart pattern, that is a reversal pattern.

Out of a soon coming global credit bust and worldwide financial system collapse, known as Financial Apocalypse, leaders will meet in summits, to renounce national sovereignty, and announce regional pooled sovereignty, where regional framework agreements establish regional leader’s policies of debt servitude.

Banks everywhere will be integrated into the government and known as Government Banks. Liz Capo McCormick of Bloomberg reports Demand for Fed Reverse Repos Rises as Treasury Cuts Bill Supply.

The age of credit featured the paradigm of liberalism; now, the age of debt servitude features that of authoritarianism. Todd Miller, publisher of The Truth, posts in Antiwar Creation of a Border Security State. And Michael Snyder writes in EPJ,The BLM Land Grab Endgame: Agenda 21.

Under liberalism, value to the economy came via the credit inspired investor; under authoritarianism, the debt serf laboring in policies of diktat and schemes of debt servitude, gives value to the economy.

 

4) … In the news

Dick Hogan posts in News-Press Palm Beach Gardens Based Kitson & Partners Moves To Establish An Autonomous Smart Grid Community.  Developers of Babcock Ranch are in a power struggle with the Lee County Electric Cooperative, and it’s not just about electrons, kilowatt hours and money. Palm Beach Gardens-based Kitson & Partners three weeks ago asked the Florida Public Service Commission to approve its plans for an independent electrical provider to the customers within the boundaries of the 16,000-acre ranch in northeast Lee and southeast Charlotte counties. The request was filed by the Babcock Ranch Community Independent Special District, created by the Legislature and controlled by Kitson, which owns all the property. The new utility would be formed by carving out its territory from the coverage area now controlled by LCEC, which has filed a scorching reply to Kitson’s proposal to establish the autonomous smart grid community known as Babcock Ranch.

Apparel retailer Coldwater Creek, CWTR, shares plummet as Lehigh Valley Live Coldwater Creek Files Bankruptcy: to close Promenade shops, Flemington stores.  And Zero Hedge reports Retail Store Closures Soar In 2014.

Zero Hedge reports Markit US Services PMI Drops; Job Creation Near 2-Year Lows.

WaPo reports The University of Maryland Wants To Build An 11-story, $115 Million Luxury Hotel And Conference Center Across From Its Main Entrance In College Park.

Mercury News reports Bay Area Home Prices Jump Year Over Year. The WSJ reports Home Sellers’ Asking Prices Hit Five Year High. And Money News reports Mortgage Lending Drops To 17 Year Low As Rates Curb Borrowing.

Bloomberg reports Sales of Existing US Homes Fall for a Third Month

Atif Mian and Amir Sufi House of Debt post Housing Recovery We are now five full years from the end of the recession (if you buy NBER dating). And housing starts are still below any level we’ve seen since the early 1990s!

Shaila Dewan of the NYT writes In Many Cities, Rent Is Rising Out of Reach of Middle Class. Fifty percent of all renters are now spending more than 30% of their income on housing, according to a comprehensive Harvard study, up from thirty eight percent of renters in 2000. In December, Housing Secretary Shaun Donovan declared “the worst rental affordability crisis that this country has ever known.” And Money News relates Rents No Longer Affordable For Most Americans.

Silvia Walker of Irvine Renter posts Irvine Housing Numbers by Neighborhood: January 2014. Typical square foot selling prices in Orange County are as follows, West Park, $406, … Quail Hill, $415, … Woodbridge, $421, … and Woodbury, $425.

Realtor Sylvia Sotomayor posts 5 Markets With Zombie Foreclosures There are cities with a higher percentage of vacant foreclosures out there, Jacksonville (30 percent), Palm Bay-Melbourne (30 percent) and Las Vegas (33 percent), but none have as many abandoned homes as The Vacation Capital of the World. In fairness, however, Orlando-Kissimmee home state of Florida has 54,908 vacant foreclosure total. That’s a ghost town bigger than Titusville, Fla., and roughly the size of Fond du Lac, Wis. Those houses tend to stay in foreclosure for a good, long time, too, with Florida’s 1,095-day foreclosure length trailing just Hawaii (1,112 days) and Arkansas (1,128). The good news is that Florida’s foreclosure rates have decreased each month for the past year, with foreclosure auctions down 2 percent from last February. Still, Orlando-Kissimmee has its issues. Its foreclosure rate is the sixth-highest in the U.S. in February, with one in every 370 housing units in foreclosure.

Mid Florida Investment Properties posts The Orlando Area Has One Of The Largest Concentrations Of Underwater Properties In The Country. 36 percent of the homes in the four counties that comprise the Orlando metro area are buried in home loans exceeding their present home value by at least 25 percent.

ZipRealty posts in EPJ, The 10 Most Affordable Housing Markets of 2014. As a result of the previous financial system crash, Dallas was one of the most severely affected by underwater mortgages. But through a strong energy economy, Steve Brown of Dallas News reports Fewer Than 5 Percent Of Dallas Home Loans Are Now Underwater.

Popular Dallas neighborhoods with Claritas Market Segments (A higher market segment number represents a lower socioeconomic group; thus the number 65,64, and 63 means the bottom of the economic ladder, whereas 12, 10, and 7, the top of society) include the following:

Lake Highlands, TX,75243, Claritas Segments, 54, 29, 31, 07, Income, 37,000,

Far North Dallas, TX, 75287, Claritas Segments, 47, 35, 24, 12, 10, Income, 46,000

Farmers Branch, TX,75234, Claritas Segments,  41, 34, 27, 10, Income, 50,000,

Carrollton, TX, 75006, Claritas Segments,  34, 22, 13, 12, Income, 53,000,

Global Research News Team posts American Conquest By Subversion: Victoria Nuland’s Admits Washington Has Spent $5 Billion To Subvert Ukraine.  Diana Johnstone relates Victoria Nuland is the wife of Robert Kagan, leader of the younger generation of “neo-cons”.  After serving as Hillary Clinton’s spokesperson, she is now under secretary of state for Europe and Eurasia.”  Hear Victoria Nuland’s very concise, almost victorious speech in Youtube December 13, 2013, US Ukraine Federation Video. And Prof Michel Chossudovsky asks Ukraine’s Gold Reserves Secretly Flown Out And Confiscated By The New York Federal Reserve?

Tyler Durden posts All You Need To Know About Russia, In Charts While total European exposure via the export and GDP channel is rather limited, Europe’s exposure via the financial/bank channel is more acute. Cross-border exposures of European banks to Russia and other parts of central and eastern Europe suggests (1) these balance sheet exposures are significant; (2) the magnifying effect of the impact via central and eastern Europe is more important than the direct exposure to Russia itself; and (3) the most significant exposures are in Austria, Italy and Sweden, whose banks play an important role in neighboring CEE countries.

Mike Mish Shedlock posts Japan Trade Deficit Largest in History; Imports Soar, Exports Barely Up In Spite of Collapsed Yen. And Reuters reports Japan Bond Market Liquidity Dries Up As BoJ Holding Top ¥200tn ($1.96TN)  The Bank of Japan’s massive purchases of government debt hit a milestone this week, sucking liquidity out of the market to such an extent that the benchmark 10-year bond went untraded for more than a day, the first time in 13 years. Data from the BoJ late on Monday showed its holding of Japanese government bonds topped ¥200tn ($1.96tn), or about 20% of outstanding issuance,  up by more than half from ¥125tn about a year ago. The fall in market liquidity looks set to intensify as the BoJ has vowed to continue its aggressive buying for at least another year.

There is another story in regards to Japan. Since the first of the year, investors have been short the Japanese Yen, FXY, and short the Japanese Financial Institutions, IX, SMFG, MFG, MTU, causing the Nikkei, NKY, to fall lower as is seen in their combined ongoing Yahoo Finance chart.  At the same time investors have been long a number of other currencies such as the India rupee, ICN, with the result of a carry trade rally India Small Caps, SCIN, and other small cap nations, such as New Zealand, ENZL, Singapore, EWS, Developing Africa, GAF, Philippines, EPHE, Indonesia, IDX, Gulf Dividends, GULF, Egypt, EGPT, and Denmark, EDEN, as is seen in their ongoing combined Yahoo Finance Chart.

Ross McCracken reported Japan Imports All Of Its Energy Needs. Japan is the world’s largest importer of LNG, the second biggest importer of coal, and the third largest importer of oil.

I relate that the coal currently comes from Australia. A huge political in Bellingham WA, and Whatcom County, is that of proposed coal trains running quite literally day and night through the city and county to the proposed SSA Marine’s Gateway Pacific Terminal at Cherry Point, which has signed an option agreement to obtain Wyoming Powder River Basin coal from Cloud Peak Energy, CLD.

 

5) … Investment strategies for the age of the failure of credit.

Bob Hoye asks in Safehaven Speculative Exhaustion? The fiat money system is failing. The chart of the Bear Market ETF, HDGE, shows that it entered an Elliott Wave 3 Up on April 23,204; the bear market of a lifetime is underway on the failure of credit in the China, in Russia, and in the US.

A portfolio of Inverse Market ETFs could serve as collateral; this might include STPP, XVZ, JGBS, GLD, PPLT, PALL, EUO, YCS, SAGG, DTYS, DNO, as well asHDGE, SBB, SBM, DDG, EFZ, YXI, SZK, SDP, KRS, REK.

One could sell a number of stocks short, such as the consumer staple stock Revlon, REV, which manifested an evening star candlestick in its chart pattern.

But before short selling, one might ask what is money, what determines the value of money, and who is sovereign in economics? There be libertarians who believe themselves to be sovereign individuals; but is this reality, or is such thinking only a mirage on the authoritarian desert of the real?

Money is the credit and flow coming from sovereigns. Money is coined by the policies of sovereigns, and is experienced and used in the schemes provided by the prevailing economic leaders.

Under the final phase of liberalism, defined as freedom from the state, the democracies of the world and the speculative leveraged investment community set persons free to be investors, according to their use of credit and their risk profile to invest in fiat investments, that is in real estate, equities and credit. All had identity and experience in the Milton Friedman Free to Choose architecture of floating currencies; fiat money ruled in liberalism.

The price of money is determined by trust in the ability of the sovereigns to provide economic gain.

Now with the failure of Major Currencies, DBV, such as the Australian Dollar, FXA, and the Emerging Market Currencies, CEW, such as the Chinese Yuan, CYB, sinking in value, a new trust must, and will emerge.

New trust is already emerging;  it is trust in the ability of regional sovereigns to provide economic security, stability, and sustainability; the diktat of the Troika in Greece is an example. The new money is diktat money.

Leaders will meet in summits to renounce national sovereignty, and to announce regional pooled sovereignty and regional framework agreements, which will be the constitution of economic experience. Diktat money rules in authoritarianism.

New sovereigns, that is regional leaders, will provide regional currencies, regional trading systems and fascist mandates for people’s trust and thus regional fascism will rise to replace crony capitalism, European Socialism, Greek Socialism, and Chinese Communism. Most definitely a new monetary authority is coming; the Banker Regime is being replace by the Beast Regime of Revelation 13:1-4.

All will have identity and experience in the required to comply architecture of diktat money.

As is seen in Ephesians 1:10, Jesus Christ operating in the economy of God, matured and completed the age of fiat money on April 10 with the failure of credit as evidenced by a trade lower in the European Financials, EUFN. And on April 23, 2014, He perfected the age of fiat money with the failure of credit, as evidenced by a trade lower in the Chinese Financials, CHIX, and Regional Banks, KRE.

The problem with short selling is that all it produces is fiat money, which will forever be trading lower in value, and which will be increasingly worthless as confidence grows in diktat money.

Gold is both a commodity and a currency; it is the safe haven which will bound higher and higher as investors derisk out of fiat investments. The chart of the Gold ETF, GLD, shows that it entered an Elliott Wave 3 of 3 Up. Short Side Of Long posts Gold Has Outperformed Other Asset Classes In First Quarter 2014. ETF Daily News posts Phantom Gold Inventories: has the Comex already defaulted?  Some think gold mining stocks are a good investment; yet it’s hard to justify an investment in Gold Miners, such as AEM, with its forward PE of 37. Something more reasonable might be Allied Nevada Gold, ANV, with a forward PE of 24; yet this is quite high for a starting point to build an investment.

One should not be invested in paper gold, such as the Gold ETF, GLD. One should take possession of the genuine article, that is gold bullion, as it will be trading awesomely higher, as in the age of the failure of credit, it and diktat of regional sovereigns, are the only two forms of sustainable economic activity.

As foretold in Bible Prophecy of Daniel 2:25-45, the British Empire rose to be the first of two global kick ass empires; the US followed in 1971, as President Nixon took the US off the gold standard to fund the Vietnam War, with  the US Dollar becoming the International Reserve currency.

Being Upfront author Amitayu Sen Gupta writes Historically, both gold and silver standards have been used by different countries, mostly depending on the relative abundance of precious metals. Much of Europe, for example, used the silver standard, a practice that can be traced back to the Romans. The discovery of large amounts of gold by the Spanish in Latin America led to Spain shifting to the gold standard. As Spain was a major power in international trade at that point, the gold standard soon became the international norm for global trade. The United Kingdom, the other major global power shifted to the gold standard despite having silver coins in circulation, based on a new mint ratio between silver and gold, established by the then master of the Royal Mint, Sir Isaac Newton, the famous mathematician, in 1717. Britain formally shifted to the gold standard only in 1821, and eventually all major countries adopted the gold standard over the nineteenth century.

Out of the chaos of the rise in the Benchmark Interest Rate, $TNX, rising from 2.48% on October 23, 2014, to 2.66% on April 25, 2014, the Rider on the White Horse, that is the First Horseman of the Apocalypse of Revelation 6:1-2, is riding with greater intensity over the nations of the world effecting coup d’etats. The US is increasingly losing its Dollar hegemonic power. In its place the Ten Toed Kingdom of regional economic governance, as seen in Daniel 2:25-45, with toes of iron diktat and clay totalitarian collectivism, that is the diktat money system, is rising to provide political rule and economic experience.

John Taylor heats up debate Re-Normalize or New-Normalize Policy. In comment, I relate the reality is that nothing can be done to renormalize the economy, as the Banker regime’s policies of Global ZIRP, have skewed the economy so far from anything normal, that normal can never ever be reattained.  Money manager capitalism created such great inequality, with the wealthy living in New York, NY and the poor living in Danville, IL, that only disaster can result. As foretold in Bible prophecy, the tail risk of such is coming; she is the Bad Bitch of Revelation 17:3-4, the Scarlet Harlot who rides the Scarlet Horse.

Economists Irving Fisher and Hyman Minsky correctly viewed the reality that debt deleveraging economic busts follow wall street credit booms; there has never been a credit boom like that since 2008, and thus there will never be a greater economic bust like the one that is coming.

Jeff Macke of Breakout reports Even After The Crash, Americans Still Love Real Estate Best. The  price of gold has dropped more than $600 an ounce, equal to almost ⅓ of its value in the last two and half years. A deeper dive into the numbers offers a disturbing explanation. Gallup Chart, presented below. shows gold is overwhelmingly favored in households earning less than $30,000 per year. In other words, those who can least afford to be investing in precious metals are the most likely to be putting their money in gold.

One should investigate International Living, perhaps relocating to Panama City or the beach on Ecuador. PathFinder reports A Red Hot Real Estate Bargain In Arenal For $69,000. And Nestman asks

Could They Really Take Away Your Citizenship?

One might think because I write on wealth, that I am a wealthy elite, that is one of those living in an Eastern Establishment Community, defined as an affluent United States eastern seaboard county, where those of Claritas Prizm Market Segments 01 through 10 live; this includes Falls Church County, VA, Loudoun County, VA, Fairfax County, VA, Arlington County, VA, Stafford County, VA, Howard County, MD, Hunterdon County, NJ, or Somerset County, NJ.

I disclose that I reside in poverty in the Sea Breeze Apartments, in downtown Bellingham WA, 98225; this is a Claritas Prizm 66 neighborhood, that is in Low Rise Living, and have no financial assets whatsoever; that’s right I have no fiat investments of any kind; the main meal for most every day comes from soup kitchens such as Maple Alley Inn.

Its a neighborhood like Danville, IL, as Barbara Green of Commercial News reports Heartland Alliance Institute Says Danville-Vermillion County Economy Is In Distress.

It is much like Rockford, IL, as Your Real Marketwatch reports Rockford County Home Appreciation  Rate Has Been Notably Below The National Average.

Another poor place is Harrisonburg, VA, as Jeannette Porter of VCU posts Harrisonburg-Rockingham County Cited As Virginia’s Poorest Locality.

 

6) … If you’ve got what it takes you can make money

The Center for Bioethics and Culture Network posts Elite Egg Donors.Over at The New Inquiry, Moira Donegan offersa compelling look at the realities of young women who choose to sell their eggs to infertile couples trying to get pregnant. Of particular interest in this article is how these donors aim to emphasize their education levels in order to appeal to the wealthy couples looking to use donor eggs.

 

7) … A Summary of the European debt crisis.

There will be no ECB unconventional monetary policy, as out of a soon coming Financial Apocalypse, that is a credit bust and financial system breakdown, the Beast Regime, seen in Revelation 13:1-4, will rise to replace Banker Regime, and by implementing policies of regional economic governance, and schemes of totalitarian collectivism, will establish regional panopticons of debt servitude, with the Eurozone Nations serving as the ultimate example of regional fascism.

As is seen in Ephesians 1:10, Jesus Christ operating in the economy of God, matured and completed the age of fiat money on April 10 with the failure of credit as evidenced by a trade lower in the European Financials, EUFN. And on April 23, 2014, He perfected the age of fiat money with the failure of credit, as evidenced by a trade lower in the Chinese Financials, CHIX, and Regional Banks, KRE, and by the Mike Mish Shedlock report Top tier Chinese Cities Discounting Property.

Through His genius, he has perfected clientelism as End Of The American Dream posts 18 Stats That Prove That Government Dependence Has Reached Epidemic Levels. And He perfected elitism, much to the complaint of Marion who writes of Billionaire Conclave The Ruling Elite Meet At Davos.

Jesus Christ is developing new sovereigns for a new age. Under liberalism, the speculative investment community provided seigniorage through money manager capitalism. Under authoritarianism, regional leaders provide seigniorage through the word, will and way of their diktat, a case in point being the Troika’s management of the Greek economy and the terms of assistance to Ireland. Ongoing policies, of diktat coming through the singular dynamo of regionalism, will be the basis for trust in diktat money to provide for regional security, stability and sustainability.

Specifically out of Eurozone sovereign, banking and corporate insolvency, leaders will meet in summits to renounce national sovereignty and announce pooled regional sovereignty, where regional framework agreements will provide the legal basis for regional economic fascism enabling leaders from Brussels and Berlin to rule in diktat establishing Europe as a preeminent world power.

Democracy no more; rather regional fascism will be the new normal. For Russia, as well as for China, economic capability will come via regional trade in commodities such a oil, natural gas, coal, and agricultural commodities featuring undollar, and non dollar bartering, and managed regional economies to establish regional security, stability, and sustainability, as is seen in the Tehran Times report China Keen to expand Economic Ties With Iran.

New sovereigns, that is regional leaders, will provide regional currencies, regional trading systems and fascist mandates for people’s trust and thus regional fascism will rise to replace crony capitalism, European Socialism, Greek Socialism, and Chinese Communism. Most definitely a new monetary authority is coming; the Banker Regime is being replace by the Beast Regime of Revelation 13:1-4.

Under liberalism, value to the economy came via the credit inspired investor; under authoritarianism, the debt serf laboring in policies of diktat and schemes of debt servitude, gives value to the economy.

 

8) … The Good News is that Jesus Christ is coming to abolish the Double Entry Bookkeeping System. Liberalism’s debt based money system is failing; and its replacement, the debt servitude money system, is not going to work. Bible prophecy of Daniel 7:7 foretells that it will end up in tatters, and then the Chargma money system, that is the Mark of the Beast Money System of Revelation 13:18, ruled by the Sovereign of Revelation 13:5-10, and the Seignior of Revelation 13:11-17, will be implemented and provide economic experience for 42 months, that is for 3 and 1/2 years, at which time Jesus will come to decisively rule mankind following the Battle of Armageddon. He will establish his Millenium Kingdom where the saints will rule and reign as priest kings in His Abundance.

Greece And The European Small Cap Dividends Begin To Lead The Eurozone Stocks Lower On The Failure Of Credit

April 19, 2014

Financial Market Report for the week ending Thursday April 17, 2014.

This post can be found in Google Documents format here

1)  … Details of this week’s financial market trading

On Monday, April 14, 2014, Greece, The National Bank of Greece, and the Eurozone Small Cap Dividends led the Eurozone Stocks lower, as is seen in the ongoing Yahoo Finance Chart of Greece, GREK, Eurozone Small Cap Dividends, DFE, European Financials, EUFN, and the National Bank of Greece, NBG, communicating the failure of European Credit, EU.

 

Yes, credit is dying in the EU, despite the BusinessWeek report Italy’s Bonds Post Weekly Advance On Stimulus Bets. Zero Hedge reports Bondholder Bail-ins Approved By EU. Said another way, given that equities are no longer leveraging higher over credit, communicating that investors no longer trust that the ECB’s policies will secure investment gains.

 

Investors are deleveraging out of EUR/JPY currency carry trade investments as is seen in the ongoing Yahoo Finance chart of EURJPY and the Eurozone Stocks, EZU, such as ALU, VE, ASMI, RYAAY,  AER, PHG, CRH, SI, LYB, BUD, and the Eurozone Nations, such as EWI, EWG, EFNL, EWN, EWQ, EIRL, EWP, EWO, PGAL, GREK, with the European Financials, EUFN, and the National Bank of Greece, NBG, leading lower.

 

Open Europe relates KathimeriniKathimerini 2Reuters report Paul Thomsen, head of the IMF’s mission to Greece, told Mega TV, “In our view, [Greece’s bailout] is not fully financed the whole way to 2016 and one would need…to find some more money.” Separately, Greek Prime Minister Antonis Samaras wrote in Kathimerini yesterday that “the country’s return to the markets rebuffs [speculation]” about the need for a third bailout.”

 

And credit is dying in the United States. The failure of credit in the US, VTI, is seen in Retail, XRT, US Infrastructure, PKB, Consumer Services, IYC, such as Chiptole Mexican Grill, CMG, Small Cap Consumer Discretionary, PSCD, such as the Automobile Dealers, the Credit Service Companies, MA, V, AXP, DFS, Asset Managers, BLK, AMG, STT, Regional Banks, KRE, Stockbrokers, IAI, Investment Bankers, KCE, the Too Big To Fail Banks, RWW, and the Russell 2000, IWC, trading lower from their highs.

 

The failure of credit worldwide is seen in Global Infrastructure, GII, topping out in value, having been driven higher by Emerging Market Infrastructure, EMIF, in particular, INXX, CHXX, and BRXX.

 

Investors are derisking out of debt trade leader Macquarie Infrastructure Company, MIC, as Infrastructure Municipal Bonds, RVNU, has been trading higher in short sell covering. Reuters reports RVNU focuses exclusively on municipal bonds issued to fund federal, state and local infrastructure projects, including water and sewer systems, public power systems and toll roads and bridges.

 

And, risk-on trading has turned to risk-off trading as the Small Cap Growth, RZG, and the Large Cap Growth, JKE, are leading the Small Cap Value, RZV, and the Large Cap Value, JKF, lower, as is seen in their combined ongoing Yahoo Finance chart.

 

Utilities, PUI, XLU, such as GXP, BKH, NEE, UGI,NI, VVC, MDU, D, and NYLD, are topping out on the trade lower in the Interest Rate on the US Note, ^TNX, to 2.62%, on Friday April 11, 2014,  and its close higher on Monday April 14, 2014 to 2.64%.

 

Eddy Elfenbein reports Best Retail Sales Report in 18 Months. While Atif Mian and Amir Sufiof House of Debt post The Consumer As A Shadow Of Its Former Self. Retail, XRT, bounced only slightly higher today, as did other ETFs, that had sold off most strongly last week. These included the Workplace Equality ETF, EQLT, which is comprised of companies that have a social mission to support workplace equality for lesbian, gay, bisexual and transgender employees; it is comprise of 164 companies that have scored 100% on the Human Rights Campaign Corporate Equality Index. The ETF follows in the line of socially responsible funds that are currently on the market; these products take into account social, environmental, and governance characteristics. The ETF has been a leading loss leader as Intuit relates that it is comprised of a number of large cap consumer discretionary, financial service stocks, and technology stocks such as GME, EA, MGM, WYNN, DIS, AAL.

 

Junk Bonds, JNK, bounced higher, taking Aggregate Credit, AGG, slightly higher to a new rally high as International Treasury Bonds, PICB, traded lower manifesting a massive dark cloud covering candlestick chart pattern in its weekly chart confirming the failure of credit.

 

The failure of credit on Thursday, April 10, 2014, marked an epic pivotal economic change in mankind’s history, as popular currency carry trades unwound trading in Small Cap Nation Investment, IFSM, and Nation Investment, EFA, as the ECB failed to come forward with any new credit stimulus,and turned World Stocks, VT, Global Financials, IXG, lower. The failure of equity investments can be followed with this Finviz Screener of Equity ETFs.

 

The age of investment choice and credit began with the repeal of the Glass Steagall Act and came to full power with the Mario Draghi, Do Whatever It Takes, July 26, 2012 Speech, which produced great investment reward in the Eurozone but as Ed Yardeni posts A Lackluster Recovery In The EU.

 

Spiegel postsCentral Banks’ Ability To Influence Markets Is Waning. Another word for credit is trust. Investors no longer trust in the monetary policies of the world central banks to stimulate global investment growth. Said another way the world central banks’ monetary policies have crossed the rubicon of sound monetary policy and have made “money good” investments bad.

 

The failure of credit, which commenced on Thursday, April 10, 2014, is the most remarkable turning point in all of economic history; and is seen in Call Write Bonds, CWB, trading lower from their March 2014 high, and is defined by the see saw destruction of equity investments (such as World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Global Financial Investments, IXG, and Dividends Excluding Financials, DTN) and credit investments, AGG, which began to trade lower in May 2013.

 

Investors no longer trust in the monetary policies of the world central banks to stimulate investment growth, despite TradingFloor reportingGlobal Manufacturing PMI Tracker Shows Growth Robust In March.  One can follow the destruction of credit investments with this Finviz Screener of Credit ETFs.

 

The failure of credit is established by Distressed Investments, such as those traded by Fidelity Investments, FAGIX, and by Junk Bonds, JNK, trading strongly lower on Thursday April 10, 2014 and Friday April 11, 2014. It was the Distressed Investments, that the US Fed took in and traded out “money good” US Treasuries in 2008 and 2009, as part of QE1 to regenerate the US and World Financial System. Regional Banks, KRE, lost 5% of their value last week, and thus document the failure of credit. Look for a strong destruction of Popular Notes And Bonds, such as SHY, EMCD, TLT, ZROZ, FLOT, QLTA, VCLT, PICB, BWX, MBB.

 

Bespoke Investment Group reports Sovereign Yields Continue Lower. Yet, look for Aggregate Credit, AGG, to very soon, once again, trade lower as Corporate Bonds, LQD, Long Duration Corporate Bonds, BLV, International Corporate Bonds, PICB, and World Treasury Bonds, BWX, which are seen peaking out, turn lower, commencing the failure of currencies.

 

Debt Deflation will be driving Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower. Said another way, bond vigilantes calling the Benchmark Interest Rate higher, $TNX, from 2.62% on Friday, April 11. 2014, and on steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, from 38.67, on the exhaustion of the world central banks’ monetary authority. Spectacular competitive currency devaluation will cause unwinding liberalism’s currency carry trades and debt trades worldwide. One can follow the destruction of currencies with thisFinviz Screener of Currency ETFs.

 

The pursuit of yield is history as Global ZIRP is history. The failure of credit is terminating risk driven investors, as the centerpiece of economic activity. Such include those invested in High Yield Debt, JNK, VCLT, EU, EMB, HYXU, EMLC, HYMB, QLTB, EMCD, RVNU, and those invested in Biotechnology, IBB, Social Media, SOCL, Small Cap Pure Value, RZV, and Small Cap Pure Growth, RZG, as well as fixed income investors, invested in Dividends Excluding Financials, DTN, and other Popular Yield Bearing ETFs, DFE, GRID, SEA, FIW, PUI, PSP, KBWD, IST, DBU, as well the high yielding Dividend ETF, DVYL, which is 200% leveraged the S&P High Yield Dividend Aristocrats Index.  Look for insurance companies around the world to fall strongly lower in value; these include Insurance Group Australia, ASX:AIG.

 

Credit died on Thursday, April 10, 2014, as evidenced by World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Global Financials, IXG, and Dividends Excluding Financials, DTN, trading lower, communicating that  the investor is no longer the centerpiece of economic activity.

 

With the failure of credit, the investor is being replaced by the debt serf, as the centerpiece of economic activity, as Robert Stevens of WSWS reports Greek Parliament Approves New Attacks On Workers. The latest agreement between the European Union led Troika and the Greek government includes measures to limit the right to strike.

 

Out of soon coming economic chaos stemming from derisking out of currency carry trade investments, such as the EUR/JPY, and the GBP/JPY, as well as out of deleveraging out of debt trades, such as Real Estate Company, Blackstone, BX, yield curves such as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, will be steepening, and short term interests rates will be rising, causing 1 to 3 Year US Government Note, SHY, to plummet.

 

As the Benchmark Interest rate rises from 2.62%, popular real estate investments Global Real Estate, DRW, Office REITS, FNIO, Mortgage REITS, REM, Residential REITS, REZ, and Retail REITS, such as General Growth Properties, GGP, will plummet.

 

There be many who complain about the order of things in the age of investment choice and credit that has produced peak wealth. Duke University Professor David Siegel asks Why Wouldn’t People Want To Reduce Inequality?  I respond, the very one appointed by God to head up the dispensation, that is, the household stewardship, of all things.  Jesus Christ, as is seen in Ephesians,1;10, perfected the age of credit on Thursday April 10, 2014, by turning World Stocks, VT, lower, and then on April 14, 2014, by turning Aggregate Credit, AGG, lower as well. Inequality was the express design and purpose of God’s Son, Jesus Christ. He had no interest in perfecting human talent in general by providing great employment, as Mike Konczal writes Struggling To Find Jobs. Rather, He fully developed the investment talent of the speculative leveraged investment community, to establish peak Global Financial Wealth, IXG, and the managerial talent of global businesses, governments, and institutions around the world through prestigious consulting firms such as McKinsey & Co, to establish the greatest possible investment in Nation Investment, EFA, as is seen in the Robert Wenzel poss Infrastructure Plotters Meet Privately With Treasury Secretary Lew To Divvy Up Tax Dollars. This week US Heavy Construction Companies, DY, ORN, MTRX, AEGN, TPC, GLDD traded higher.

 

The world is passing through peak moral hazard.  Libertarian Benson te writes of the Philippine economy “The only ‘inclusivity of economic growth’ here will be a NET transfer of resources from society to politicians and the cronies through ‘foolishly prodigal enterprises’, thereby lifting economic benefits again to a select politically privileged and politically connected few. Woe to the taxpayers and to the politically unconnected peso holders”.

 

It is the genius of Jesus Christ that has produced peak clientelism as Benson te writes quoting Richard Ebeling in EPJ Interventionism: Using Legal Coercion To Get Ahead in Life  When individuals began to ask government to do things for them, rather than merely to secure their individual rights and honestly acquired property, they began asking government to violate other’s rights and property for their benefit. These demands on government have been rationalized by intellectuals and social engineers who have persuaded people that what they wanted but didn’t have was due to the greed, exploitation, and immorality of others. Basic morality and justice has been transcended in the political arena in order to take from the “haves” and give to the “have not’s.” Theft through political means has become the basis of a “higher” morality: “social justice,” which is supposed to remedy the alleged injustices of the free market economy. But once the market becomes politicized in this manner, morality begins to disintegrate. Increasingly, the only way to survive in society is to resort to the same types of political methods for gain as others are using, or to devise ways to evade the controls and regulations. More and more people, therefore, have been drawn into the arena of political intrigue and manipulation or violation of the law for economic gain. Human relationships and the political process have become increasingly corrupted.

 

Now that the failure of credit has commenced, soon, money market funds will break the buck, that is the traditional constant $1 Dollar Value, with the result that capital controls will be implemented and banks everywhere will be integrated into the Government, and be known as Government Banks, and in the US, the Bank’s Excess Reserves will be captured, so as to speak, by the US Fed.

 

Banks everywhere will be integrated into regional governments, with the Eurozone and the US being leading examples of economic fascism. Savings and Loans, Regional Banks, KRE, such as BOFI, SIVB, HBAN, and RF, the Too Big To Fail Banks, RWW, seen in this Finviz Screener, will be integrated into the banks and be known as the Government Banks, or Gov Banks.

 

Money has been in an awesome bubble ever since it was underwritten by credit of the US Fed in taking in Distressed Investments, such as those traded by the Fidelity Mutual Fund,FAGIX, and in trading out money good US Treasuries, TLT, to underwrite faith in Regional Banks, KRE, and the Too Big To Fail Banks, RWW, under the Paulson Gift and Ben Bernake Stimulus of QE1.

 

Bloomberg reports China New Credit Declines as Money-Supply Growth Decelerates. And Ed Yardeni posts China Is Deflating. This is seen in its money, that is its currency, the Yuan, CYB, and its debt, the Dim Sum Bond, DSUM, trading lower in value. Clearly, the money bubble has finally burst and the investor is going extinct. The failure of credit is an extinction event, that pivots the world economy out of liberalism, that is the paradigm and age of credit and investment choice, and into authoritarianism, that is the paradigm and age of diktat and debt servitude, which features the debt serf, is the centerpiece of economic activity.

 

Bloomberg reports Chinese Police Confront Trust Investors Demanding Repayment. Chinese investors demanding their money back from a troubled 973 million-yuan ($156 million) high-yield product in Shanxi province were confronted by police in front of a China Construction Bank Corp. (939) branch. People wearing white masks with the words “despicable bank” and “pay back our money” were among at least 30 investors facing special-forces officers in dark uniforms in Taiyuan city, about 521 kilometers (324 miles) southwest of Beijing. The nation’s second-largest bank is the custodian of the Songhuajiang River No. 77 trust, which missed six payments as of last month, according to the Economic Observer. “We have been cheated by CCB,” said Wang Fengying, 60, a Shanxi resident who said her husband had invested 1 million yuan in the product. “Our parents are very old. We need the money for their medical bills and to buy a home for my child. We are so miserable and they won’t even let us demand our money back.”

 

Gabriel Wildau and Lu Jianxin of Reuters report Chinese companies that have lent money to other companies are facing a potential wave of defaults, with several listed firms already reporting missed loan repayments. Shipbuilder Sainty Marine became the latest listed firm to report that it had failed to receive principal and interest repayments on a 900 million yuan ($144.7 million) loan to a property developer. Chinese companies granted a net 2.55 trillion yuan ($411bn) in so-called entrusted loans in 2013, nearly double the 1.28 trillion yuan total in 2012, making them the second- biggest source of domestic credit behind bank loans, according to Reuters’ calculations based on published central bank data. Entrusted loans require banks to serve as an intermediary, but a company serves as the ultimate lender and records the loan asset on its balance sheet… Entrusted loans require banks to serve as an intermediary, but a company serves as the ultimate lender and records the loan asset on its balance sheet. ‘Companies offering entrusted loans typically want to lend while bypassing official restrictions for credit, such as lending quotas,’ said Zhang Weigang, head of investment at Shanghai Securities. ‘That means they typically lend to risky industries such as property, solar panel manufacturing and non-ferrous metals.’

 

Zero Hedge reports Chinese Yuan (And Copper) Tumbles As Money Supply Growth Plunges.

 

With the trade higher parabolically higher in Nickel, JJN, the rally in Commodities, DBC, DYY, especially Base Metals, DBB, despite the Bloomberg report Oil Climbs to Five-Week High on Ukraine-Russia Tension.

 

Buy and hold stock investing was an economic principle of the bygone era of credit. The greatest bear market of history has commenced: it will totally destroy all fiat investments, whether they be equities such as VT, EFA, IXG or DTN, or credit, AGG, such as JNK, MBB, TLT, their ongoing Yahoo Finance Chart shows that Global Financials, IXG, are now leading all lower.

 

One could use these Inverse Market ETFs as collateral for short selling: STPP, XVZ, JGBS, GLD, EUO, YCS, OFF, HDGE, SAGG, TYBS, PPLT, as well as DNO, KRS, REK, SBB, SBM, DDG, EFZ, YXI, SZK, SDP.

 

Libertarian Richard Eleling writes in EPJ The Free Market vs. the Interventionist State What people call the “free market” in the United States and around the world, is in fact the regulated economy — the Interventionist State. I explain the defining characteristics of a truly free market economy, as defined for example by the Austrian economist, Ludwig von Mises. And I contrast this with the meaning of the Interventionist State under which we all live. The Interventionist State distorts the economic activities of all those in society in various ways.

 

Through dispensation, that is through the economy of God, as seen in Ephesians, 1:10, Jesus Christ perfected what Libertarian Richard Eleling terms the Interventionist State, on Thursday, April 10, 2014, with a trade lower in World Stocks, VT, which featured the Banker Regime, that is the Creature from Jekyll Island, and its cohort, democratic nation state rule, which provided asset inflationism, coming from the three economic dynamos of creditism, corporatism, and globalism, by policies of investment choice and schemes of liberal credit.

 

The EU common currency union came about through the Maastricht Treaty; unification of Europe was made complete with the introduction of the Euro as a currency in January 1999. The Banker regime used the Euro for capital investment in the southern states, that is Portugal, Italy Greece and Spain, and even to greater advantage for debt trade investment in the PIGS treasury debt and in money market investment in municipal debt in France. The debt trade within the common currency produced awesomely lucrative reward as interest rates fell. And with LTRO 1, 2, and OMT, especially lucrative investment in Ireland, Greece and the European Small Cap Dividend Stocks.

 

Mike Mish Shedlock posts Europe Without €: Former EU Commissioner Says Monetary Union Has Failed. From the Italian website L’Anti Diplomatico, former EU Commissioner and and signatory of the Manifesto of European solidarity, Frits Bolkestein proclaims the “Monetary Union has Failed

 

In his conference “Europe Without €” held in Rome on Saturday 12 April, Fred Bolkestein, a former commissioner of the European Union and signatory of the Manifesto of European solidarity quotes former German Chancellor Helmut Kohl in his address to the European Parliament in 1991:

 

“EU policy is the essential counterpart to monetary union.” The political union had to precede the formation of the single currency and a real central bank.

 

The opposite happened. Maastricht policies to create a monetary union have not had an effect integral politics, but the opposite effect as we see today.

 

Economic cultures are different and there is no solidarity. The French view is that imbalances of payments and budgets should be adjusted and jointly funded by the surplus countries to finance the deficit countries. It is a vision not sustainable in the long run.

 

According to Bolkestein, Eurobonds will only dilute the responsibility and “veil” problems. The Germans, moreover, do not want transfers and Eurobonds. Moreover, as history teaches, transfers from rich regions to poor regions do not work.

 

Monetary union has failed, concludes Bolkestein, and the countries in deficit situation can not solve their problems by themselves. Indeed, this is an additional cause of suffering. Alternatives do not exist and “we have to think about a second step: the exit from the euro.”

 

Mr. Shedlock is wearing the blinders of Austrian Economics. When viewed through the lenses of Biblical dispensation economics, as presented by the Apostle Paul in Ephesians 1:10, Jesus Christ has been successful in perfecting the paradigm and age of credit and currency carry trade investing, by driving the Eurozone Stocks up to their rally high on Thursday April 10, 2014, and then pivoting them dramatically lower, on Monday April 14, 2014. With Him at the head of the economy of God, there will be no exit from the Eurozone, by any nation.

 

Under the power of the Rider on the White Horse, as is seen in Revelation 6:1-2, the bond vigilantes are effecting a global economic coup d’etat, transferring sovereignty from democratic nation states to sovereign regional leaders and sovereign regional bodies, such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, and thus are powering up the singular dynamo of regionalism to establish regional security, stability, and sustainability, to deal with the destructionism of unwinding currency carry trades and debt trades, such as those now seen in Eurozone Small Cap Dividends, DFE, and the National Bank of Greece, NBG, trading lower.

 

Out of a soon coming Financial Apocalypse, that is a credit bust and financial system breakdown, the Beast Regime, seen in Revelation 13:1-4, will rise to replace Banker Regime, and by implementing  policies of regional economic governance, and schemes of totalitarian collectivism, will establish regional panopticons of debt servitude, with the Eurozone serving as the ultimate example of regional fascism.

 

Even now, Jesus Christ is developing new sovereigns for a new age. Under liberalism, the speculative investment community provided seigniorage through money manager capitalism, Under authoritarianism, regional leaders provide seigniorage through the word, will and way of their diktat, a case in point being the Troika’s management of the Greek economy.

 

Specifically out of Eurozone sovereign, banking and corporate insolvency, leaders will meet in summits to renounce national sovereignty and announce pooled regional sovereignty, where regional framework agreements will provide the legal basis for regional economic fascism enabling leaders from Brussels and Berlin to rule in diktat establishing Europe as the preeminent world power. Alejandro López writes in WSWS Spanish Government Attacks Democratic Rights  Madrid is escalating its attacks on democratic rights in response to widespread opposition to the social catastrophe produced by its austerity measures. And Johannes Stern posts in WSWS German Government Planning Major Military Build-up. The German government is using the mounting conflict between NATO and Russia to massively rearm the army.

 

As foretold in bible prophecy of Revelation 13:5-10, there is waiting in the wings of Europe stage, the most capable of sovereigns. Out of the European Debt Crisis, the Sovereign will step into the limelight, and through cunning and shrewdness rise in power to rule as is seen in Daniel 8:6-8, and as foretold in Revelation 13:11-18, will be accompanied in power by the Seignior, that is top dog banker, who in coining money, takes a cut. This New Charlemagne and his Monetary High Priest will eventually come to rule the world, in a one world religion, from their capital in Jerusalem, as foretold in Daniel 9:25.

 

On Monday April 14, 2014, International Corporate Debt Weekly, PICB Weekly, shows the bearish dark cloud covering candlestick, indicating the failure of credit.

 

On Tuesday, April 15, 2014,deleveraging and arising out of debt trade investing and currency carry trade investments continued reflecting the death of credit.

 

The National Bank of Greece, NBG, Greece, GREK, European Small Cap Dividend, DFE, Germany, EWG, and German Small Caps, GERJ, continued to trade lower on the failure of the ECB to provide any new credit initiative, as well as on a lower Euro, FXE.  

 

Emerging Market Infrastructure, EMIF, PXR, China Industrials, CHII, Russia, RSX, ERUS, China, YAO, ECNS, Brazil, EWZ, EWZS, India, INP, SCIN, Vietnam, VNM, Turkey, TUR, Argentina, ARGT, Chile, ECH, and Peru, EPU, led the Emerging Markets, EEM, lower, on lower Emerging Market Currencies, CEW.  NYT writes Brazil’s Star, Petrobras, Is Hobbled By Scandal And Stagnation

 

Nations Sweden, EWD, traded lower on a lower Swedish Krona, FXS. Australia, EWA, and KROO, traded lower on a lower Australian Dollar, FXA.

 

Yield Bearing Investments, Leveraged Buyouts, PSP, and China Real Estate, TAO, traded lower, on  derisking out of debt trade investments.

 

Global Financials, China Financials, CHIX, Brazil Financials, BRAF, India Earnings, EPI, and European Financials EUFN, traded lower, on unwinding currency carry trade investing.

 

Industrials Miners, PICK, traded lower on lower Base Metal Commodity, DBB, prices, on the traded lower in the Australian Dollar, and the Emerging Market Currencies, CEW.

 

Energy Production, XOP, traded higher, on Ukraine tensions.

 

On Wednesday, April 16, 2014, Solar Energy, TAN, Automobiles, CARZ, Design Build, FLM, Nasdaq Internet, PNQI, Biotechnology, IBB, Media, PBS, Internet Retail, FDN, and Aerospace and Defense, PPA, bounced World Stocks, VT, higher.

 

Japan, NKY, traded higher on a lower Yen, FXY. Thailand, THD, Ephesians, EPHE, Indonesia, IDX, Egypt, EGPT, and Chile, ECH, bounced the Emerging Markets, EEM, and Nation Investment, EFA, higher, as the Emerging Market Currencies, CEW, bounded higher.

 

European Financials, EUFN, bounced higher, bouncing Global Financials, IXG, higher.

 

Defensive Stocks, DEF, Global Consumer Staples, KXI, Utilities, PUI, Global Utilities, DBU, World Real Estate, DRW, US Real Estate, IYR, Industrial Office REITS, FNIO, Residential REITS, REZ, Retail REITS, SLG, and General Growth Properties, GGP, and Dividends Excluding Financials, DTN, traded to new all time highs, as is seen in their combined ongoing Yahoo Finance Chart.

 

Energy Production, XOP, traded higher, on a higher price of Oil, USO.

 

On Thursday, April 17, 2014, Russia, RSX, ERUS, India Small Caps, SCIN, Emerging Middle East and Africa, GAF, Egypt, EGPT, Denmark, EDEN, Singapore, EWS,Indonesia, IDX, Philippines, EPHE, European Small Cap Dividends, DFE, Greece, GREK, Germany Small Caps, GERJ, Italy, EWI, Spain, EWP, and Portugal, PGAL, bouncing Nation Investment EFA, and Small Cap Nation Investment, IFSM, higher.

 

European Financials, EUFN, bounced higher, bouncing Global Financials, IXG, higher

 

World Stocks, VT, bounced higher  as Calculated Risk posts Industrial Production Increased 0.7% In March. Yet, Global Industrial Producers, FXR, are trading lower from their Thursday April 10, 2014 high. Zero Hedge reports Why IBM Is Tumbling: BRIC sales plunge, total revenue lowest since 2009.   US Health Care Providers, IHF, such as WLP, UNH, ESRX, WLP, AET, CI, traded sharply lower.

 

Dividends Excluding Financials, DTN, traded unchanged due to the rise in the Benchmark Interest Rate, $TNX.

 

Energy Production, XOP, Fracking Companies such as RPC Inc, RES, and Refiners, such as VLO, traded higher on a higher price of Oil, USO.

 

The Australian Dollar, FXA, traded lower, leading Major World Currencies, DBV, lower. And the Brazilian Real, BZF, traded lower, leading Emerging Market Currencies, CEW, lower.

 

European Credit, EU, traded to a new all time high as bond vigilantes took the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.72%, causing Aggregate Credit, AGG, to trade lower.

 

Peak M2 Money is being achieved:  M2 Money Supply rose $41.5bn to a record $11.194 TN.

 

2) … The mother of all bear markets has commenced; its epicenter is in the Eurozone.

In the final two years of the age of credit, Ireland’s Bank, IRE, and Ireland, EIRL, provided stellar debt trade and currency carry trade investment rewards to the savvy investor, as is seen in the cominbed  ongoing Yahoo Finance chart of Ireland’s Bank, IRE, Ireland, EIRL, Eurozone Stocks, EZU, Nation Investment, EFA, and the European Financials, EUFN.

 

Greece, GREK, and the European Small Cap Dividends, DFE, as well as the US Small Caps, IWC, are in the process of leading Nation Investment, EFA, lower, on the failure of credit in the US and the EU, as is seen in the ongoing Yahoo Finance Chart of GREK IWC, VTI, EZU, EWZ, EPHE, INP, YAO, EWA.

 

The National Bank of Greece, NBG, the European Financials, EUFN, and the Regional Banks, KRE, are leading Global Financials, IXG, the linchpin of equity investment lower.

 

The week ending April 17, 2014, Aggregate Credit, AGG, traded lower as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.75.

 

Now all forms of fiat investment, both Equity Investments, and Credit Investments, are trading lower from their April 10, 2014, highs.  Popular Notes and Bonds, SHY, EMCD, TLT, ZROZ, FLOT, QLTA, VCLT, PICB, BWX, MBB, traded lower at the end of the week of April 17, 2014.

 

The bear market of all time has commenced as is evidenced by the trade lower in Covered Call, HFIN, which reflects that the trend is now lower, in Value Shares, such as Large Cap Value, JKF, and Defensive Stocks, DEF.  The Risk Trade in Small Cap Value, RZV, and Small Cap Growth Stocks, RZG, is history. The trade lower in Call Write Bonds, CWB as well as the trade lower in Closed End Funds, JCE, GCE,  CSQ, PTY, AWP, PFL, RCS, and EIM, seen in their combined ongoing Yahoo Finance Chart, establishes that buy and hold investing is not working.  Hedging no longer works, as Hedged Japan, DXJ, Hedged Global Stocks, HEDJ, and Hedged Emerging Markets, DBEM, are trading lower.  Look out below!

 

Eddy Elfenbein asks Is More Inflation Headed Our Way? Those of you old enough to remember the 70s certainly remember inflation. It was the worst thing about that decade. Well, that and disco. Every week, it seemed, prices climbed higher, and the prime rate went up, up, up.

There’s no way to sugarcoat it. Inflation is devastating for investors. It eats away at savings, and it knocks stock prices for a loop. On December 31, 1964, right before inflation became a problem, the Dow closed at 874.13. Exactly seventeen years later, the index stood at 875.00. Stock prices had barely budged, yet the Consumer Price Index had tripled. Then, once inflation got under control, stock prices soared. So much of the 1980s bull market was really making up for lost ground.

Inflation also has an unusual impact on earnings. Not all earnings are the same, and inflation exacts a heavy toll on asset-heavy businesses. Companies with high assets relative to their profits tend to report ersatz earnings.

Let’s look at some recent figures. Last Friday, the Labor Department reported that the Producer Price Index rose by 0.5% last month. That was the biggest increase in nine months. Economists like to track prices at the wholesale level because it’s often an early warning sign of price increases at the consumer level. Digging into the details, the rise in the PPI was driven by a 0.7% increase in wholesale services and a 1.1% rise in food prices. The core rate, which excludes food and energy, rose by 0.6%.

Then on Monday, the Consumer Price Index report showed that consumer prices rose 0.2% last month. That’s still not much, but it was more than the 0.1% economists were expecting. The core consumer rate also rose by 0.2% for its biggest monthly increase in 14 months

I’m not going to try to predict if inflation will come back, but we have to be realistic and watch the data.

 

The ratio of the TIPS To Treasuries, such as Long Term TIPS to Long Term Treasuries, that is LTPZ:EDV, is reversing and communicates that bond market insiders are expecting headline inflation, and debt destruction. The long position in TIPS and short Treasuries is seen in the ongoing Yahoo Finance Chart of INFL, as well as RINF; both of these ETFs are now seeing monthly gains.  Investors have been building positions in the CPI Inflation ETF, CPI.

 

Benson te writes on inflation in Food Prices, FUD. In the US, Food Prices Have Been Rising Fast. The bottom line is that central bank inflationism has been increasingly spilling over to the real economy via rising food prices. And this is being aggravated by supply chain disruptions. This also means incidences of global hunger and poverty will rise. Such also implies of growing risks of a global food crisis.  And importantly this signals why the era of asset inflation boom is bound to reverse soon as sustained pressures on consumer prices will eventually reflect on interest rates (whether in the US, Philippines or elsewhere).

 

Debt deflation, and not so much inflation, will be driving Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower. Said another way, bond vigilantes calling the Benchmark Interest Rate higher, $TNX, from 2.62% on Friday, April 11. 2014, and on steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, from 38.67, on the exhaustion of the world central banks’ monetary authority. Spectacular competitive currency devaluation, coming from rising interest rates, will cause unwinding of liberalism’s currency carry trades and debt trades worldwide. One can follow the destruction of currencies with thisFinviz Screener of Currency ETFs.

 

John Rubino posts Bank Of Japan Only Buyer Left  for 10-Year Japanese Government Bonds Here’s something you don’t see very often: For a day and a half this week, the Japanese government’s benchmark 10-year bonds attracted not a single successful private sector bid. At today’s artificially-depressed yields, no one wants this paper, except of course the Bank of Japan, which is buying up the bonds with newly-created yen. As the Gulf Times noted:

 

The Bank of Japan’s massive purchases of government debt hit a milestone this week, sucking liquidity out of the market to such an extent that the benchmark 10-year bond went untraded for more than a day, the first time in 13 years. Data from the BoJ late on Monday showed its holding of Japanese government bonds topped ¥200tn ($1.96tn), or about 20% of outstanding issuance – up by more than half from ¥125tn about a year ago. The fall in market liquidity looks set to intensify as the BoJ has vowed to continue its aggressive buying for at least another year, with market players expecting it to expand its easing some time later this year.

 

The BoJ stepped up its bond buying last April when Haruhiko Kuroda became its governor, vowing to take radical easing steps to end deflation once and for all. The increasing dominance of the BoJ in the market, however, resulted in shortage of tradable bonds in the market, reducing trading flows between market players. The current 10-year cash bonds saw its first trade of the week yesterday afternoon, having gone untraded for more than a day and a half. Trade volume in the benchmark cash bonds so far this month dropped to less than one trillion yen, down about 70% from the same period last year.

 

What exactly does this mean? Well, it’s definitely weird. These are the most important fixed income instruments of the world’s third biggest economy, and the only entity willing to own them is the government that issues them.

 

The rest of the world now refuses to lend money for ten years at 0.6% to a government whose debt is 200% of GDP and rising, which leaves Tokyo with only two choices: monetize virtually all its future borrowing or allow interest rates to rise and pay two or three times as much in interest going forward. The latter choice would hobble, if not cripple, an economy that can only function when borrowed money is nearly free.

 

Google Finance chart shows that the Nikkei, NKY, has been leading Nation Investment EFA, lower, ever since the Benchmark Interest Rate, $TNX, began to trade higher on October 23, 2013.

 

Finviz Chart shows that this week the Weekly Inverse of the Japanese Government Bonds, JGBS, traded decisively higher.

 

Gulf Times reports Japan Bond Market Liquidity Dries Up As BoJ Holding Crosses ¥200tn.

 

Daily News Egypt posts the Joseph Hammond and James Wan, Think Africa Press report Egypt’s Military Economy: Money is power, power is money. In a poll in March, 39% of Egyptians said they were planning to vote for him, while fewer than 1% of respondents said they were planning to vote for any of the other candidates. Anything but an Al-Sisi victory seems highly unlikely, and come May, the military’s hold on power will have become even further entrenched. It was only in January 2011 that Hosni Mubarak, a military man too, like all his predecessors since 1952, was overthrown, but now it seems the Egyptian military is not only back in the seat of power, but perhaps stronger than ever. A look behind the political curtains at the backstage that is the Egyptian economy seems to bear this out.

 

With around 2 million personnel, including 500,000 in the army, the Egyptian military is the biggest in Africa, and one of the largest in the world. Arguably far more striking than the extent of its physical muscle, however, is the size of economic muscle. Its spokespeople consistently try to play down its role in Egypt’s economy, claiming the military is responsible for just 1% of the country’s GDP, but analysts tend to believe the military controls between 5 and 40% of the economy, with most leaning towards the higher end of that spectrum.

 

Exact figures are hard to come by. The military’s budget is kept confidential and its business dealings are typically untaxed and unaudited on apparent grounds of national security. It is known, however, that military is involved in countless different businesses in countless different industries. Military-owned companies engage in ventures from cement to shipbuilding, from fertiliser to fridges, and from tourism to televisions. The Egyptian army owns hospitals and child-care centres, it is a huge player in the country’s agricultural sector, and it has various contracts with foreign investors worth hundreds of millions of dollars. The military also owns vast tracts of land. In 1997, a presidential decree awarded the army the right to manage all of Egypt’s unused land. According to some estimates, that essentially gives the military de facto control of 87% of the entire country’s land mass.

 

3) … Investment gain will turn precipitously into investment loss; wealth can only be preserved by investing in and taking possession of gold bullion.

Defensive Stocks, DEF, Global Consumer Staples, KXI, Utilities, PUI, Global Utilities, DBU, World Real Estate, DRW, US Real Estate, IYR, Industrial Office REITS, FNIO, Residential REITS, REZ, Retail REITS, SLG, and General Growth Properties, GGP, and Dividends Excluding Financials, DTN, traded to new all time highs, as is seen in their combined ongoing Yahoo Finance Chart.  And Energy Production, XOP, traded higher, on a higher price of Oil, USO.

 

Now all forms of fiat investment, both Equity Investments, and Credit Investments, are trading lower from their April 10, 2014, highs.  Popular Notes and Bonds, SHY, EMCD, TLT, ZROZ, FLOT, QLTA, VCLT, PICB, BWX, MBB, traded lower at the end of the week of April 17, 2014.

 

The bear market of all time has commenced as is evidenced by the trade lower in Covered Call, HFIN, which reflects that the trend is now lower, in Value Shares, such as Large Cap Value, JKF, and Defensive Stocks, DEF.  The Risk Trade in Small Cap Value, RZV, and Small Cap Growth Stocks, RZG, is history. The trade lower in Call Write Bonds, CWB as well as the trade lower in Closed End Funds, JCE, GCE,  CSQ, PTY, AWP, PFL, RCS, and EIM, seen in their combined ongoing Yahoo Finance Chart, establishes that buy and hold investing is not working.  Hedging no longer works, as Hedged Japan, DXJ, Hedged Global Stocks, HEDJ, and Hedged Emerging Markets, DBEM, are trading lower.  Look out below!

 

The age of credit produced awesome investment gains for those invested in fiat money and fiat wealth such as stocks and real estate, and produce some global economic growth, via central bank investment inflationism, more specifically through the three dynamos of creditism, globalism and corporatism, which saw the Federal Reserve’s balance sheet inflate from $900bn to $4.5 TN in just six years. Bitcoin is not money and failed because it lacks any known sovereign, and thus is unable to provide seigniorage.

 

The age of debt servitude is one of investment loss and economic deflation, which comes via destructionism, and where the singular dynamo of regionalism prevails to establish regional security stability and sustainability, via regional fascism. Elaine Meinel Supkis writes on this relating Russia Hurt By Economic Warfare But US Is Being Utterly Destroyed By Our Trade Partner Allies.

 

The current economic deflation in the Eurozone is caused in large part by unemployment. EU Observer posts Regional Unemployment Highest In Spain. The WSJ reports Deflation Threat Becomes More Widespread in Europe. Consumer prices rise at slowest pace for more than four years in Year to March.

 

The week of Monday April 14, 204, through April 17, 2014, provided a short selling opportunity. One where investors could have been short selling as the week proceeded; as in a bear market one sells into pips, just as in a bull market one buys into dips.

 

A number of short selling opportunities arose. Doug Noland reports Ten-year Portuguese yields sank another 23 bps to 3.74% (down 239bps y-t-d). Italian 10-yr yields fell nine bps to 3.12% (down 100bps). Spain’s 10-year yields dropped 10 bps to 3.09% (down 107bps). As a consequence Portugal, PGAL, rose 0.5%, Italy, EWI,  2.3%, and Spain EWP, 1.9%.  Stockbrokers, IAI, led by SCHW, TROW, ITG, rose 5.1%. Large Cap Growth, JKF, Sectors rising included Aerospace And Defense, PPA, 4.2%, Transportation, XTN, 3.7%, led by UNP, DAL. Global Industrial Producers, FXR, 3.4%, led by PPG, QCOM, EMR, ETN, ROK, ITW, GRA, IFF, APH, DOW, SEE, MMM, WLK, JNJ, HON, WHR, Semiconductors, SOXX, 3.1%, led by MU. Energy Production, XOP, rose, 7.1%, manifesting three white soldiers candlestick pattern. Energy Services, OIH, rose 4.2%, led by CLB, manifesting an evening star candlestick.

 

A portfolio of Inverse Market ETFs could have served as collateral; this might have included STPP, XVZ, JGBS, GLD, PPLT, PALL, EUO, YCS, OFF, SAGG, DTYS, DNO, as well as HDGE, SBB, SBM, DDG, EFZ, YXI, SZK, SDP, KRS, REK.

 

Money is the credit and flow from sovereign authority.

 

The age of credit presented was an experience in fiat money, which provided the  opportunity to grow wealth by investing in fiat assets such as stocks, bonds, and real estate.

 

Now, in the age of the failure of credit, coming as bond vigilantes call the Benchmark Interest Rate, $TNX, higher from 2.74%, a new form of money will develop, that being diktat money.

 

Wealth can only be preserved by purchasing and taking possession of and safely storing gold bullion.

 

Those who own gold are economically sovereign and together with emerging regional fascist leaders possess seigniorage; the new money will have its value from the word, will and way of regional sovereign bodies, and regional sovereign leaders, whose authority comes from regional framework agreements. Public private partnerships will coin money as their edicts replace the leveraged speculative investment community’s schemes of credit and currency trade investing.

 

This week, that is the week ending April 17, 2014, Gold, $GOLD, traded lower to $1,293 on a higher US Dollar, $USD, UUP.  The Gold ETF, GLD, is in a area of strong resistance, and being a currency as well as a commodity, traded lower with the commodity currencies the Australian Dollar, FXA, the Brazilian Real, BZF, as well as the Emerging Market Currencies, CEW.

 

The chart of the Gold ETF, GLD, shows that it entered an Elliott Wave 3 of 3 Up in January 2014. Short Side Of Long posts Gold Has Outperformed Other Asset Classes In First Quarter 2014. ETF Daily News reports Phantom Gold Inventories: has the Comex already defaulted?.  It’s hard to justify investment in Gold Mining Companies, such as AEM, given its forward PE of 37.

 

It’s best to find a place where the effects of economic deflation will be felt the least; those with wealth should consider International Living, and begin to maintain a home in Ecuador and in Panama City.

 

In blogging I have come to appreciate that life is an economic journey in sovereignty and the seignorage it provides.

 

The current economic deflation in the Eurozone is caused in large part by unemployment.  The Ed Yardeni post Economic Recovery Is Lackluster communicates Socialist economies have not benefited LTRO 1, LTRO 2, and OMT, as much as the Crony Capitalist US economy, the reason being there is more clientelism in the EU, as The Economist posts, Structural Reform In Southern Europe: Some Patchy Progress, and less home ownership, less natural resources like oil and gas, and less securitization of investment risk.

 

EU Observer posts Regional Unemployment Highest In Spain.  And the WSJ reports Deflation Threat Becomes More Widespread in Europe.  Consumer prices rise at slowest pace for more than four years in Year to March.

 

Future economic deflation will be global in nature and caused mostly by disinvestment from debt trade investing, such as Real Estate Investment, Blackstone, BX, and currency carry trade investing, such as Budweiser, BUD, hitting hardest in the Most Carry Traded Nations, which includes Europe, DFE, Indonesia, IDX, Developing Europe, ESR, The UK, EWUS, Egypt, EGPT, Denmark, EDEN, India, SCIN, the US, IWM, New Zealand, ENZL, China, ECNS, Africa, GAF, Singapore EWS, and the Philippines, EPHE. Yes, look for fast falling currencies such as the Indonesia Rupiah, Egyptian Pound, New Zealand Dollar, Singapore Dollar, and the Philippine Peso.

 

The Apostle Paul in Ephesians 1:10 presents The Great Economic Blesser, that being Jesus Christ, who is now, has been, and always will be in Dispensation, that is in economic stewardship of all things, producing the ultimate economic experience.

 

The world passed through peak prosperity on Thursday April 10 with the failure of credit in the Eurozone.  Humanity has passed from the age of credit, which produced prosperity, into the age of debt servitude, where the new normal is austerity.

 

I appreciate all who have come to visit my blog.

 

This post’s short url is http://tinyurl.com/m5ru6lj

Authoritarianism Commences On The Failure Of Credit And Unwinding Liberalism’s Currency Carry Trades And Debt Investment Trades

April 12, 2014

Financial market report for the week ending April 11, 2014.

 

This document can be found in Google Documents format here.

 

1) … Jesus Christ consistently acts in dispensation, a concept developed by the Apostle Paul in Ephesians 1:10. The idea is that He acts in economic oversight to mature every age and paradigm, bringing it its completion, much like a ship’s captain completes the ship’s manifest, before setting sail on a new journey.

 

Christ fully developed liberalism, meaning freedom from the state, by creating the investor through the repeal of the Glass Steagall Act, maturing it with the world central banks’ Global ZIRp, and then perfected it as the age and paradigm of credit and investment choice, on April 4, 2014, by driving World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Dividends Excluding Financials, DTN, lower from their March 2014 highs.  On Monday April 7, he actively birthed authoritarianism by unwinding liberalism’s currency carry trades and debt trades, and is now creating the age and paradigm of debt servitude and the debt serf.

 

Short Side of Long PostsThe Fed’s Goal To Improve Employment By Printing Money Has Failed!  This remains the worst/weakest recovery ever; the real economy has grown very little. Confounded Interest postsLow Paying Services Jobs Lead Recovery.

 

In similar vein, Francesco Saraceno, the Gloomy European Economist posts ECB: One Size Fits None.  In addition to being unfit for individual countries, the ECB stance is now unfit to the Eurozone as a whole. And of course, a negative target rate can only mean, as Münchau forcefully argues, that the ECB needs to get its act together and put together a credible and significant quantitative easing program.

 

Robert Wenzel of Economic Policy Journal posts Federal Reserve Money Printing Makes the Rich RicherThe Fed’s Goal, as well as the ECB’s Goal, has never been to improve employment and global growth. Thomas Piketty, professor at the Paris School of Economics, communicates the world central banks have created a New Gilded Age, a second Belle Époque, defined by the rise of the one percent.

 

Though Federal Reserve QEs, ECB LTROs and OMT, PBOC Monetary Injections, and other similar world central bank monetary actions, credit was made widely available to investors, such as day traders, real estate investors, students, and even clients of liberal governments, such as those living in Greece Socialism, and those in the US living on welfare, TANF, SSI/SSD, and Section 8 Housing, all through the speculative leveraged investment community, creating a spectacular moral hazard based prosperity enjoyed by only a relative few, in particular those with fiat wealth and those earning executive incomes, as they profited from investment in currency trades in Ireland, EIRL, Greece, GREK, Germany, GERJ, The UK, EWUS, The Gulf, GULF, Egypt, EGPT, Denmark, EDEN, the US, IWM, Eurozone Small Cap Dividend, DFE, and New Zealand, ENZL, as is seen in thecombined ongoing Yahoo Finance Chart, as well as debt trades such as Real Estate Investment Company, Blackstone, BX.

 

Socialist news reports criticized the real estate investor in the fire that led to a child’s death. Pittsburg Action 4 News reports No Charges To Be Filed in Fatal Fire.  Ayanna Lisa Brooks perished in a fire on the 1700 block of SolesSt in McKeesport PA on March 23, 2013. McKeesport Fire Chief Kevin Lust said Ayanna’s aunt was caring for her and the other children in the home while the girl’s mother was visiting relatives out of town. He said he believes both women lived in the home with the five children.

 

Samuel Davidson of WSWS reports Deplorable Housing For Workers And Poor Leads To Tragedy. Steel City Realty reportedly bought the Soles Street home in 2010 for just $5,000. With rents in the area ranging from $450 for a one-bedroom to $850 for a three-bedroom house, the owners would have made their investment back in less than a year. The family had lived there about two years before the fire took place.

The real estate web site Zillow list 103 houses for sale in McKeesport. Forty-one of those homes are in some state of foreclosure. More than half are selling for less than $30,000, and eight are selling for less than $10,000. Rents are between $550 for a one-bedroom to $850 for a three-bedroom house.

The address listed as the owner of the Soles St house that burned down March 26 (Google Earth image)

Nor is Steel City Realty the only slumlord in the area. On Soles street and on the three neighboring streets, 22 homes have been sold in the past three years for between $10,000 and $35,000. Homes that sell for less than $10,000 are not listed. At least a third of these have investment companies listed as owners. The average sale price was just $15,000.

Mrs. Jones, who was walking to a convenience store with her two grandchildren, said she was very sad about the fire. “I used to see those children outside playing, their mothers were doing what they could to raise them. Times are hard and people don’t have jobs. The landlords do nothing to fix up the houses around here. Only when a family moves out; maybe they will clean it a little and paint the walls, but once someone moves in, they don’t do anything.

“That landlord should be arrested for not having a smoke alarm in the house,” she concluded.

 

Since 1998, Jesus Christ was not concerned in the least about any socialist desires for regulations requiring smoke in rental properties, His focus was perfecting liberalism’s moral hazard based prosperity, through the Banker and Democratic Nation State Regime, and its three dynamos of creditism, corporatism, and globalism.

 

Having achieved Peak Liberalism, meaning ultimate freedom from the state, on April 4, 2014 with Peak World Stocks, VT, Peak Nation Investment, EFA, Peak Wall Street, IXG, and Peak Dividend Investing, DTN, He is now pivoting the world into authoritarianism, via the singular dynamo of regionalism, to achieve authoritarianism’s debt servitude based austerity, through the Beast Regime and Regional Economic Government and Totalitarian Collectivism, seen in Revelation 13:1-4, where liberalism’s fiat wealth and fiat money will be utterly pulverized as is seen in Daniel 7:7.

 

Nor is Jesus Christ been concerned about the libertarian desires for No Aggressive Use Of Force, as presented by libertarian Chris Rossini writing in Economic Policy Journal, as He is seen in bible prophecy of Revelation 13:1-4, bringing out of Club Med, that is Portugal, Italy, Greece and Spain, sovereign, banking and corporate insolvency, the Beast Regime of regional economic governance, which will rule in diktat policies in the world’s ten regions and occupy in schemes of totalitarian collectivism in all of mankind’s seven institutions. Libertarian and Conservative United Kingdom, MP, John Redwood, complains of One Law For Everyone. Soon, all those in the EU will be at ground zero as a One Euro Government rises as a type of Revived Roman Empire, to establish regional security, stability and sustainability out of disintegrating currency carry trades and debt trades. News reports reflect that the Eurozone is rising to be a global military superpower. Ulrich Rippert posts in WSWS German Left Party MPs Vote For Military Deployments. The  vote by Left Party members for military intervention marks a further shift to the right by the party. And Johannes Stern of WSWS posts  German Government Planning Major Military Buildup. The German government is using the mounting conflict between NATO and Russia to massively rearm the army. I comment that the libertarian dream for a free society, that is one free from government interventionism, is a mirage on the authoritarian Desert of the Real.

 

In the age of liberalism, His sole concern was to maximize returns based upon the most leveraged currency carry trades and debt trades available. Now, in the age of authoritarianism, He will utterly destroy all currencies, pursuit of yield, and apply all of liberalism’s debt, every bit of it, to every man woman, and child on planet earth, Daniel 7:7. The imminent ECB decision of Thursday, April 10, 2014, will certainly be an effecting working of the dispensation of Jesus Christ, as is seen in Ephesians 1:10, for the completion of authoritarianism as the age of debt servitude.

 

2) … In this week’s financial marketplace trading.

 

On Monday April 7, 2014, The see saw destruction of fiat wealth got strongly underway as Aggregate Credit, AGG, traded higher as the Interest Rage on the US Ten Year Note, ^TNX, traded lower to 2.70%, and as World Stocks, VT, were led lower by Solar Energy, TAN, Uranium Producers, URA, China Technology, CQQQ, US Infrastructure, PKB, Social Media, SOCL, Resorts and Casinos, BJK, Transportation, XTN, Global Industrial Producers, FXR. IPOs, FPX, Nasdaq Internet, PNQI, Small Cap Consumer Discretionary, PSCD, Consumer Discretionary, IYC, and Retail, XRT, such as ANF.

 

Energy Producers, XOP, traded lower, on a lower price of Oil, USO.

 

Global Financials, IXG, were led lower by the National Bank of Greece, NBG, Stockbrokers, IAI, Investment Bankers, KCE, and the Too Big To Fail Banks, RWW.

 

Nation Investment, EFA, was led lower by Egypt, EGPT, Russia, RSX, Russia Small Caps, ERUS, China Industrials, CHII, China Small Caps, ECNS, German Small Caps, GERJ, Greece, GREK, and the Russell 2000, IWC.

 

The failure of credit has commenced, and is seen in Retail, XRT, US Infrastructure, PKB, Consumer Services, IYC, Small Cap Consumer Discretionary, PSCD, such as the Automobile Dealers, the Credit Service Companies, MA, V, AXP, DFS, Asset Managers, BLK, AMG, Regional Banks, KRE, Stockbrokers, IAI, Investment Bankers, KCE, the Too Big To Fail Banks, RWW, and the German Small Caps, GERJ, Greece, GREK, the Russell 2000, IWC, trading flower.

 

The Small Cap Growth, RZG, and the Large Cap Growth, JKE, are leading the Small Cap Value, RZV, and the Large Cap Value, JKF, lower, as is seen in their combined ongoing Yahoo Finance chart. And Utilities, PUI, are topping out on the trade lower in the Interest Rate on the US Note, ^TNX, to 2.70.

 

Greed has turned to fear with investors selling out of consumer stocks and credit intensive stocks on the exhaustion of trust in the world central banks’ monetary authority. Risk-on investing has turned to risk-off investing.

 

Yield chasing investing, as well as successful fixed income investing were a defining characteristic of liberalism. The Pursuit of Yield Investments, seen in this Finviz Screener of Yield Bearing Investments, such as Gulf Dividends, US Real Estate, IYR, Small Cap US Real Estate, ROOF, Industrial Office REITS, FNIO, Mortgage REITS, REM, Electric Utilities, PUI, Global Utilities, DBU, Shipping Stocks, SEA, Dividends Excluding Financials, DTN, Financial Preferreds, PGF, Leveraged Buyouts, PSP, Global Telecom, IST, and others, is over, through, finished and done, as the world central banks’ monetary policies have crossed the rubicon of sound monetary policy and have made “money good” investments bad. The Far East Financials, FEFN, largely Japanese Financials IX, SMFG, MFG, and MTU, falling lower on the failure of Abenomics, and Japanese Militaristic Foreign Policy, have put the nail in the coffin on yield bearing investing.

 

The world has passed through an inflection point. Inflationism has turned to destructionism. As is seen in Ephesians 1:10, Jesus Christ, operating in the economy of God, has pivoted the world out of liberalism, meaning freedom from the state, where the investor was “free to choose”, to the new normal of authoritarianism, where the debt serf is required to comply with the mandates of regional leaders.

 

Liberalism featured what Doug Noland termed wildcat investing. Authoritarianism features wildcat governance where leaders bit, rip, and tear one another apart to see who will be top dog as evidenced by the Johannes Stern of WSWS posts Pro-Russian Protesters In Eastern Ukraine Demand Crimean Style Referendum. And Mike Mish Shedlock posts Ukraine Parliament Erupts In Violent Brawl.

 

Bible prophecy of Revelation 13:1-4, foretells that out of soon coming Eurozone Club Med credit crisis, regional economic fascism will rise to govern the world as the Beast Regime with its policies of diktat in regional economic governance in each of the world’s ten regions, and schemes of totalitarian collectivism debt servitude in all of mankind’s seven institutions, replaces the Creature from Jekyll Island with its policies of credit and investment choice.

 

On Tuesday April 8, 2014, Emerging Markets, EEM, rose, as Turkey, TUR, Indonesia, IDX, Egypt, EGPT, Argentina, ARGT, Chile, ECH, China, YAO, CHII, India, INP, SCIN, Emerging Market Financials, EMFN, Chinese Financials, CHIX, India Earnings, EPI, traded higher, on higher Emerging Market Currencies, CEW; and as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.68%.  Australia, EWA, South Korea, EWY, Singapore, EWS, and South Africa, EZA, traded higher, on the lower Benchmark Interest Rate. Nation Investment, EFA, traded unchanged.

 

Global Financials, IXG, traded unchanged.

 

World Stocks, VT, bounced higher as Steel, SLX, Coal, KOL, Global Miners, PICK, and the sectors which have been selling off, such as Social Media, SOCL, and Biotechnology, IBB, traded higher.

 

The ongoing Yahoo Finance chart of Agricultural Commodities, RJA, which includes popular commodities such as CORN, WEAT, JJG, SGG, is seen topping out.

 

Yield Bearing Stocks, DTN, bounced higher, as Global Real Estate, DRW, China Real Estate, TAO, Gulf Dividends, GULF, Australia Dividends, AUSE, India Earnings, EPI, and Electric Utilities, PUI, traded higher; but gains were limited by Japanese Financials, such as IX, SMFG, MFG, and MTU, Global Telecom, IST, Europe Small Dividends, DFE, and Leveraged Buyouts, PSP, which traded lower.

 

Look for all interest rates to rise, including the Short Term Interest Rate, as well as the Benchmark Interest Rate, that is the Interest Rate on the US Ten Year Government Note, ^TNX, to rise from 2.62%.

 

In fact, soon, the short term rate will rise so much that money market funds will break the buck, that is the will not be able to maintain their constant one dollar value, as Short Term Government Bonds, SHY, and all Notes And Bonds, as well as High Yielding Bonds, fall lower in value.

 

Economic Deflation is a characteristic of the age of the failure of credit. Signs of economic deflation already abound in Europe Eurostat reports in PDF document Euro area house prices down by 1.4%; and reports in PDF document Labour Force Survey 2013 In the EU 28, 10 million part-timers are underemployed and 11 million persons considered as a potential additional labour force.

 

Liberal economist Mark Thoma posts in CBS Money Watch Why Is Deflation So Harmful First, the actual fall in prices, rather than just the inflation rate getting lower, which is call disinflation. falling prices shift consumption from the present to the future as consumers wait for prices to fall, and the drop in demand can further depress the economy, lead to more price decreases, more cuts in spending, and a downward spiral into a recession.

Second, deflation raises the inflation-adjusted interest rate, and that can cause consumers to spend less on durables like cars, appliances and houses that are purchased with credit. Rising inflation-adjusted interest rates also increase the cost of borrowing and can depress business investment.

Third, that’s not the end of the story. As consumption and investment spending fall, aggregate demand declines, and that causes prices to fall even further. The result is even more deflation, more cuts in consumption and spending, further decreases in prices and the economy crashes in what Irving Fisher called a debt-deflation spiral.

Another way to say this is that deflation discourages new borrowing and makes existing borrowers worse off because it raises the inflation-adjusted value of debts and makes the debts harder to pay off. So, it imposes a burden on borrowers.

 

On Wednesday, April 9, 2014, World Stocks, VT, bounded higher as a number of the sectors which had traded sharply lower, traded slightly higher; these included Social Media, SOCL, Biotechnology, IBB, Nasdaq Internet, PNQI, Solar Energy, TAN, Resorts And Casinos, BJK, Internet Retail, FDN, Pharmaceuticals, PJP, China Technology, CQQQ, and China Industrials, CHII. One can follow the destruction of World Stock Investments, with this Finviz Screener of World Stock Investment ETFs.

 

Nation Investment, EFA, traded higher, near its previous high, as Australia, EWA, South Korea, EWY, Canada, EWC, India, INP, and China, YAO, traded higher. One can follow the destruction of Nation Investment, with this Finviz Screener of Nation Investment ETFs.

 

Small Cap Nation Investment, IFSM, traded to a new rally high, as Canada, CNDA, Austria, EWO, Finland, EFNL, Denmark, EDEN, Ireland, EIRL, France, EWQ, Norway, NORW, Sweden, EWD, South Africa, EZA, Argentina, ARGT, New Zealand, ENZL, India, SCIN, traded higher. One can follow the destruction of Small Cap Nation Investment, with this Finviz Screener of Small Cap Nation Investment ETFs. The following ETFs have been largely responsible for most of the rally in Small Cap Nation Investment SCIN, CNDA, EWZS, ENZL, IDX, EPHE, TUR, THD, as is seen in their combined ongoing Yahoo Finance Chart.

 

Global Financials, IXG, bounced higher as the National Bank of Greece, NBG, India’s HDB, and IBN, Australia’s Bank, WBK, China Financials, CHIX, South Korea Banks, SHG, KB,WF, and Emerging Market Financials, EMFN, traded higher.  One can follow the destruction of Global Financial Investments, with this Finviz Screener of Global Financial Investment ETFs.

 

Dividends Excluding Financials, DTN, bounced higher as S&P International Dividends, DWX, Global Utilities, DBU, World Real Estate, DRW, China Real Estate, TAO, Gulf Dividends, GULF, India Earnings, EPI, Australia Dividends, AUSE, Emerging Market Small Cap Dividends, EDIV, and Energy Partnerships, AMJ, traded higher. One can follow the destruction of Yield Bearing Investments, with this Finviz Screener of Yield Bearing Investment ETFs.

 

Gold, $GOLD, GLD, rose, as the US Dollar, $USD, UUP, traded strongly lower, suggesting a likely low in front of Thursday’s ECB Meeting.

 

Major World Currencies, DBV, traded higher as currency traders took one of the most heavily sold off currencies, the Canadian Dollar, FXC, higher, driving Canada, EWC, to a new rally high.  And they took the Australian Dollar, FXA, driving Australia, EWA, to a new rally high.

 

Emerging World Currencies, CEW, traded higher as currency traders took the Brazilian Real BZF, to what also will likely be its rally high, driving Brazil, EWZ, to a new rally high.

 

Thursday April 10, 2014, marked a pivotal economic change in mankind’s history. The failure of credit commenced aspopular currency carry trades unwound trading in Small Cap Nation Investment, IFSM, and Nation Investment, EFA, as the ECB failed to come forward with any new credit stimulus.

 

Another word for credit is trust. Investors no longer trust in the monetary policies of the world central banks to stimulate global investment growth. Said another way the world central banks’ monetary policies have crossed the rubicon of sound monetary policy and have made “money good” investments bad.

 

Action Forex Chart Report shows the EUR/JPY trading lower from its rally high. Likewise the Yahoo Finance Chart Report of the EURJPY together with both Eurozone Stocks, EZU, and European Small Cap Dividend Stocks, DFE, traded lower from their Friday April 4, 2014 highs evidencing the failure of currency carry trade investing.

 

Greece, GREK, led Eurozone Nations, Italy, EWI, Germany, EWG, Netherlands, EWN, France, EWQ, Ireland, EIRL, Spain, EWP, Austria, EWO, and Portugal, PGAL, lower on the failure of European Credit, EU.

 

Many investors invest heavily at market tops; this is seen in the Liz Alderman and Landon Thomas NYT report Taking A Risk, Investors Snap Up Once-Shunned Greek Debt.

 

Vivianne Rodrigues and Tracy Alloway of Financial Times write: “Sales of a popular type of structured product have ballooned in the past couple of weeks to their highest levels since the build-up to the financial crisis, buoyed by investors’ continued thirst for yield. March saw the highest sales of collateralised loan obligations since May 2007, according to data from S&P Capital IQ. About $11.15bn of the bundled corporate loans were sold last month, topping the $10.74bn priced in March last year and eclipsing the $10.82bn issued in May 2007. CLOs typically bundle together leveraged loans made to companies but sometimes also include bonds and other securities to help boost returns for yield-hungry investors. The surge in sales has come in spite of market developments that, in theory, should have slowed them down significantly.”

 

Sarah McBride of Reuters reports: “Venture capital funding for U.S. startups hit its highest mark since 2001 during the first three months of the year and 11 companies were valued at $1 billion or more, underscoring the increasingly pricey environment for entrepreneurs, according to… consultancy CB Insights. Venture capitalists invested $9.99 billion across 880 deals in the first quarter of 2014. The dollar amount jumped by 44% compared with the same quarter in 2013.”

 

Oshrat Carmiel of Bloomberg reports: “Manhattan developer Bill Rudin hadn’t planned to start selling apartments at his Greenwich Village project until the end of this year. He began rethinking that strategy after getting cornered at a cocktail party. ‘People came up to me and said, ‘We want to buy, we want to buy. When can we buy?’ Rudin said… He opened a sales office in October for the Greenwich Lane, a complex under construction at the site of the shuttered St. Vincent’s Hospital, after an online sign-up list of would-be buyers for the 200 condominiums drew 1,100 names. More than half of the units at the development, still largely a field of dirt and skeletal towers, have sold at prices averaging $3,500 a square foot, in line with other projects downtown and a new luxury benchmark for the area.”

Bloomberg reports Spanish Billionaire Amancio Ortega Gaona, Outbids Pros to Build $10 Billion Property Empire, to complement his Madrid Spain based Inditex, the biggest integrated retail apparel company in the world, operates Zara retail stores as its flagship operations. Inditex has eight brands, 6300 stores, in 87 markets. MSN Money Chart shows Inditex, ES:ITX, had been a retail sector leader up until November 1, 2013l; but now is a retail sector loss leader. It has a PE ratio of 27, a Price to Book Ratio of 7. The WSJ reports Inditex Builds For The Futurefashion giant continues to invest in new stores; while Retail Detail Europe reports Inditex Profit Growth Lowest In Years.

 

Sweden, EWD, traded strongly lower on the sell of the Swedish Krona, FXS. Currency carry trade leader Denmark, EDEN, traded lower.

 

The export sensitive Nikkei, NKY, fell strongly on the rise of the Japanese Yen, FXY. And currency sensitive Indonesia, IDX, and Vietnam, VNM, also fell strongly lower.

 

The credit sensitive US Small Caps, IWM, traded strongly lower, as did their underlying credit providers, Regional Banks, KRE, which drove investors to derisk out Small Cap Pure Value Stocks, RZV, and Small Cap Pure Growth Stocks, RZG, all evidencing the failure of credit based investments on the exhaustion of the world central banks’s monetary authority.

 

Global Financials, IXG, were led lower by European Financial, EUFN, leaders, Ireland’s Bank, IRE, the National Bank of Greece, NBG, evidencing the failure of debt trade investing. Asset Managers, such as Blackrock, BLK, Affiliated Managers Group, AMG, Ameriprise Financial, AMP, and Blackstone, BX, traded strongly lower, evidencing the failure of money manager capitalism.

 

World Stocks, VT, were led lower by disinvestment from the sectors Biotechnology, IBB, Solar Energy, TAN, Internet Retail, FDN, Nasdaq Internet, PNQI, Pharmaceuticals PJP, Media, PBS, Software, IGV, Cloud Computing, SKYY, IPOs, FPX, Semiconductors, SOXX, Timber Producers, WOOD, Consumer Services, IYC, Retail, XRT, such as FDO, DLTR, DG, and Data Storage companies such as STX, BRCD, SNDK, IMN, HILL, CRDS, NMBL, and WDC.

 

Yield bearing investments were led lower by disinvestment from the sectors Water Resources, PHO, International Telecom, IST, Leveraged Buyouts, PSP, Shipping, SEA, International Dividends, DWX, Eurozone Small Cap Dividends, DFE, and Dividends Excluding Financials, DTN.

 

Utilities, PUI, traded lower even though the Benchmark Interest Rate, ^TNX, traded lower to 2.63%.

 

On Friday, April 11, 2014, World Stocks, VT, were led lower by Biotechnology, IBB, Solar Energy, TAN, Social Media, SOCL, Nasdaq Internet, PNQI, Internet Retail, FDN, IPOs, FPX, Semiconductors, SOXX, Pharmaceuticals, PJP, Global Industrial Producers, FXR, Retail, XRT, Media, PBS, Small Cap Pure Value Stocks, RZV, and Small Cap Pure Growth Stocks, RZG.

 

Nation Investments, EFA, was led lower by the US Small Caps, IWM, UK Small Caps, EWUS, and Ireland, EIRL, Denmark, EDEN, and European Small Cap Dividends, DFE.

 

Global Financials, IXG, were led lower by the Ireland’s Bank, IRE, Investment Bankers, KCE, The Too Big To Fail Banks, RWW, and Stockbrokers, IAI.

 

The failure of credit, commenced on April 10, 2014, and is seen in Call Write Bonds, CWB, trading lower from their March 2014 high, and is defined by the see saw destruction of equity investments (such as World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Global Financial Investments, IXG, and Dividends Excluding Financials, DTN) and credit investments, AGG, which began to trade lower in May 2013. Investors no longer trust in the monetary policies of the world central banks to stimulate investment growth, despite TradingFloor reporting Global Manufacturing PMI Tracker Shows Growth Robust In March.  One can follow the destruction of Credit with this Finviz Screener of Credit ETFs.

 

The Interest Rate on the US Ten Year Note, ^TNX, firmed lower at 2.62%; and the Steepner ETF, STPP, found support at 38.67, taking Aggregate Credit, AGG, higher on the day and week. The ongoing Yahoo Finance Chart of the Flattner ETF, together with ZROZ, EDV, TLT, AGG, FAGIX, and JNK, shows that the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened as some investors rushed into the Zeroes, ZROZ, as investors fled stocks the week ending April 11, 2014.

 

The failure of credit is established by Distressed Investments, such as those traded by Fidelity Investments, FAGIX, and by Junk Bonds, JNK, trading strongly lower on Thursday April 10, 2014 and Friday April 11, 2014. It was the Distressed Investments, that the US Fed took in and traded out “money good” US Treasuries in 2008 and 2009 as part of QE1 to regenerate the US and World Financial System. Regional Banks, KRE, lost 5% of their value this week, and thus document the failure of credit.

 

Look for Aggregate Credit, AGG, to very soon once again trade lower as Corporate Bonds, LQD, Long Duration Corporate Bonds, BLV, International Corporate Bonds, PICB, and World Treasury Bonds, BWX, which are seen peaking out, turn lower, commencing the failure of currencies.

 

Debt Deflation will be driving Major World Currencies, DBV, and Emerging Market Currencies, lower. Said another way, bond vigilantes calling the Benchmark Interest Rate higher, $TNX, on the exhaustion of the world central banks’ monetary authority, will commence spectacular competitive currency devaluation, unwinding liberalism’s currency carry trades and debt trades. One can follow the destruction of currencies with this Finviz Screener of Currency ETFs.

 

The pursuit of yield is history, terminating risk driven investors at large, such as those invested in Biotechnology, IBB, Social Media, SOCL, Small Cap Pure Value, RZV, and Small Cap Pure Growth, RZG, and fixed income investors in particular, as the centerpiece of economic activity; look for the valued Dividends Excluding Financials, DTN, such as those seen in this Finviz Screener of Leading Dividend Bearing Stocks, and Short Term Bonds, FLOT, to trade lower in value.

 

Out of soon coming economic chaos stemming from derisking out of currency carry trade investments, such as the EUR/JPY, and the GBP/JPY, as well as out of deleveraging out of debt trades, such as Real Estate Company, Blackstone, BX, yield curves such as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, will be steepening, and short term interests rates will be rising, causing 1 to 3 Year US Government Note, SHY, to plummet.

 

Money market funds will break the buck, that is the traditional constant $1 Dollar Value, with the result that capital controls will be implemented and banks everywhere will be integrated into the Government, and be known as Government Banks, and in the US, the Bank’s Excess Reserves will be captured, so as to speak, by the US Fed.

 

Banks everywhere will be integrated into regional governments, with the Eurozone and the US being leading examples of economic fascism. Savings and Loans, Regional Banks, KRE, such as BOFI, SIVB, HBAN, and RF, the Too Big To Fail Banks, RWW, seen inthis Finviz Screener, will be integrated into the banks and be known as the Government Banks, or Gov Banks.

 

Money has been in an awesome bubble ever since it was underwritten by credit of the US Fed in taking in Distressed Investments, such as those traded by the Fidelity Mutual Fund, FAGIX, and in trading out money good US Treasuries, TLT, to underwrite faith in Regional Banks, KRE, and the Too Big To Fail Banks, RWW, under the Paulson Gift and Ben Bernake Stimulus of QE1.

 

The failure of credit is an extinction event, where the investor is going extinct, that pivots the world economy out of liberalism, that is the paradigm and age of investment choice and credit, and into authoritarianism, that is the paradigm and age of diktat and debt servitude, which features the debt serf, as the centerpiece of economic activity.

 

Buy and hold stock investing was an economic principle of the bygone era of credit.  Gold, $GOLD, traded higher to $1,318, on a lower US Dollar, $USD, UUP. The chart of the Gold ETF, GLD, shows that it entered an Elliott Wave 3 of 3 Up in January 2014. Short Side Of Long posts Gold Has Outperformed Other Asset Classes In First Quarter 2014. In the age of the failure of credit, wealth can only be preserved by purchasing and taking possession of and safely storing gold bullion.

 

3) … In the news

India experienced a stock market boom in front of its forthcoming major election, as is seen in the charts of India, INP, and India Small Cap, SCIN. Keith Jones of WSWS reports India Stages National Election Amid Mounting Social Crisis. Whatever combination of parties forms India’s government after the tallying of votes on May 16, India will soon be beset by political crisis and convulsed by intensifying class struggle.

 

Atif Mian and Amir Sufi of House of Debt post Family Structure and Inequality

 

Merkelnomics posts German February Industrial Production Show Economy Is Powering Ahead, while Hellenic Statistical Authority posts in PDF Document Greece’s Exports Fall.

 

Bloomberg reports Draghi’s $1.4 Trillion Question Lingers as ECB Mulls QE

 

Reuters reports New French Finance Minister Promises ‘Tough, Brave’ Decisions on Deficit

 

Alex Lanier of WSWS posts Incoming French Prime Minister Valls Pledges Austerity, Appeals To Far Right.

 

Zero Hedge reports Donetsk Creates “People’s Army”.

 

Bloomberg reports Iron-Ore Bear Market Deepens as Aussie Mines Expand.  The world is mining more iron ore than steelmakers need. Australia, the largest supplier, sent 504 ships from Port Hedland during the first quarter carrying enough iron-ore exports to build more than 700 Golden Gate Bridges. Shipments jumped 35 percent to the biggest buyer, China, where inventories have ballooned to the highest ever. After companies including BHP Billiton Ltd. and Rio Tinto Group expanded capacity to meet surging steel demand, output is climbing just as China’s economy slows to the weakest since 1990. Prices that already are down 14 percent in the past year will slump at least 16 percent further in the second half to less than $100 a metric ton, the lowest level since 2012, according to Credit Suisse Group and Standard Chartered.

Good Morning America posts Black Bear Mauls Woman Drags Her Out Of Garage.

 

4) … Thoughts on Sickness

The Blessed Economist posts Spiritual Perceiving (10) Sickness

 

5) … Summary … What is money, and what gives money its value?

The reason why I write, is to communicate the sovereignty of Jesus Christ, and the seigniorage, that is the moneyness, of His economy, as it proceeds in the last days, in light of the Revelation of Jesus Christ.  Ralph Diehl posts The purpose of the Book of Revelation is to reveal to Jesus’ servants what would soon take place. Although there are moral lessons to learn from this book, the stated purpose of Revelation is to show things that are yet future, but will happen “soon”. We should not fear this book, but embrace it as a word of expectation.

 

What is money? Money is the credit and flow that comes from ruling political and banking authorities, that is from economic sovereigns.

 

What gives money its value? All money, with the exception of gold, is debt based and has its value from trust in the debtor to repay the lender; as well as trust from the investor, to derive profit from investments in nations which issue currencies.

 

Lately investors favored the nations of Eurozone Small Cap Dividends, DFE, Indonesia, IDX, UK Small Caps, EWUS, Gulf Dividends, GULF, Egypt, EGPT, Greece, GREK, Denmark, EDEN, India Small Caps, SCIN, US Small Caps, IWM, German Small Caps, GERJ, New Zealand, ENZL, and China Small Caps, ECNS, seen in this Finviz Screener of the Most Carry Traded Nations. Bloomberg reports Record Europe Dividends Keep $3 Trillion From Factories. Given the choice between investing in their businesses or paying off shareholders, European chief executive officers are choosing the latter.

 

Another word for money’s value is seigniorage; both money and wealth have seigniorage, that is moneyness. The Russian Ruble, has no value as investment opportunities in Russia, RSX, ERUS, have been ruined by political instability. The Japanese Yen, FXY, has suffered a loss of value, because currency traders have sold it off because of the great amount of debt written by Japanese Financial Institutions, FEFN, such as IX, SMFG, MFG, and MTU, as well as the liberal monetary policies of Abenomics in Japan, EWJ, JSC.

 

Jesus Christ, as seen in Ephesians 1:10, is in Dispensation, that is in oversight of the economy of all things, and appointed Milton Friedman as the father of modern day money. Through his simple genius, he declared that under liberalism one should be Free To Choose, and that currencies should float according to relative value amongst investment choices existing in the nations. President Nixon embraced his concepts and took the US Dollar off the gold standard. Nations embraced the Banker’s floating currency regime. The US funded the Vietnam war, and the US Dollar became the International Reserve Currency, and as a result it replaced the British Empire as the global kick-ass, might makes right empire, as foretold in the Statue of Empires prophecy of Daniel 2:25-45.

 

Conservative MP John Redwood asks The Death of Britain? and writes “We need a new settlement, which gives people back their power to sack accountable MPs and so change the government. In turn MPs need to take responsibility back for governing the country so they can serve the country well.” I reply, with Jesus Christ, being in control of the economy of God, there are three chances of that happening: slim, none, and no way.

 

Over the last several years, the world central banks drove down Interest Rates, that is the cost of money, through coordinated policies of Global ZIRP, ie QE, LTRO, OMT, Monetary Injections, and the Speculative Leveraged Investment community underwrote tremendous stock market gains, particularly in Risk Trades, in Small Cap Growth Stocks, RZG, in Small Cap Value Stocks, RZV, in Social Risk Sectors, such as Social Media, SOCL, Biotechnology, IBB, Internet Retail, FDN, Nasdaq Internet, PNQI, and in Debt Trades such as GGP, EAT, S, GPK, PUK, MKTAY, EMN, VIAB, ING, RPM, BAH, IHG, POL, URI, HEES, DISH, LABL, LUX, CE, KR, NCR,ST, HPQ, GNRC, CSU, MIC, F, DLPH, M, TUP, and in Currency Carry Trades such as the EUR/JPY, seen in this Finviz Screener of EURJPY Currency Carry Trades, which includes such companies as LUX.

 

Thus the Banker regime gave great seigniorage to money, which is defined as the combination of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW; the world has attained peak fiat money, on the sovereignty of the Banker Regime and the global community democratic nation states.

 

Look for a steepening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, which will be reflected in the Steepner ETF, STPP, trading higher from 38.67; and look for interest rates to continually move higher, from 2.62%, on the ongoing failure of the world central banks’ monetary authority.

 

This being seen in fulfillment of Revelation 6:1-2, where Jesus Christ opened the first seal of the Scroll of End Time Events, on October 23, 3013, releasing the Rider on the White Horse, who has a bow without any arrows, that is the Bow of Economic Sovereignty, to effect global economic coup d’etat to transfer sovereignty from democratic nation state to sovereign regional leaders and sovereign regional bodies, such as the ECB, by enabling the bond vigilantes to start calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.

Revelation 6:1-2

Revelation 6:1-2

 

Under liberalism, creditism, corporatism and globalism were the dynamos of economic activity which had effect though crony capitalism, European Socialism, Greek Socialism and Communism. These are being replaced by the singular dynamo of regionalism, which features regional currencies, bartering and undollar economic trading, and has affect through regional economic fascism. USA Watchdog posts Whole Eastern World Rebelling Against The Dollar and Voice of Russia posts Russia Prepares To Attack The Petrodollar. Elaine Meinel Supkis posts Russia Signs Big Gas Deal With China, Yuan Will Be Major Global Reserve Currency.

 

A rising Benchmark Interest Rate from 2.62%, and a steepening 10 30 US Sovereign Debt yield curve, seen in the Steepner ETF, STPP, steepening, wll evidence the onset and relentless drive of economic deflation, coming from derisking out of debt trades, such as Leveraged Buyouts, PSP, and deleveraging out of currency carry trades, such as the EUR/JPY, as World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Fixed Income Investing, DTN, trade lower from their market highs.

 

High Yield Debt, JNK, VCLT, EU, EMB, HYXU, EMLC, HYMB, QLTB, seen in this Finviz Screener of High Yielding Debt, are topping out, and will be falling quickly and awesomely in value. Under liberalism it was wise to invest in such liabilities; now under the new normal of authoritarianism it is financial death to invest in such things.

 

Libertarian Robert Wenzel posts the timely video article,The Road To Serfdom At 70. David Gordon discusses Friedrich Hayek’s The Road to Serfdom at the 2014 Austrian Economics Research Conference in Auburn, Alabama, on March 20, 2014.

 

Bible prophecy seen in the Statue of Empires in Daniel 2:25-45, and Revelation 13:1-4, foretells that out of corporate, sovereign and banking insolvency in the Club Med nations, that is the PIGS, Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, the Beast Regime of regional economic governance will rise to rule in policies of diktak in each of the world’s ten regions, and in schemes of debt servitude in all of mankind’s seven institutions.

And Bible Scripture of Revelation 13:5-10, foretells that out of regional framework agreements, a cunning and adept Sovereign, Daniel 8:6-8, will rise to rule the Eurozone, and that he will be accompanied in his rise to power by the Seignior of Revelation 13:11-18, that is the top dog banker who in minting money takes a cut.

 

A new money, that being diktat money, is replacing fiat money; it is being implemented by the word, will and way of regional economic leaders operating out of Brussels, Frankfurt and Berlin. Like fiat money it takes its value from trust in the debtor to repay the lender. Inasmuch as Jesus Christ has pivoted the world from liberalism to authoritarianism on the failure of credit, diktat money is based upon trust that regional economic fascism will exact demands from debtors, that is debt serfs, in exchange for regional economic security, stability and stability.

 

6) … Life is a journey in sovereignty and seigniorage. For two years, ever since Herman Van Rompuy, poet and President of the EU, championed the first Greek Bailout in May 2010, I have been blogging to introduce those things, which according to Revelation 1:1, “must shortly come to pass”, meaning that once they start to occur, will fall in place, like line dynamos toppling one upon another.

 

Along this line of thought, European Economic Governance coalesced on May 21, 2010, at the EU Finance Leaders’ Euro Stability and Growth Pact task force meeting, which was convened by incoming EU President Herman Van Rompuy, who said in a question and answer session that the EU Framework Agreement that was announced earlier this month, does not include any provisions for debt restructuring.

 

And he related there is a joint awareness of the urgency of fiscal consolidation that requires budgetary sacrifices be made by member states. He concluded by commending several states for expenditure reductions and relating that the round-table consensus is very clear that new financial and non financial sanctions will be forthcoming if needed; these came forth as austerity measures decried by Ambrose Evans Pritchard who writes Europe Has Subjected The Greek People To A Cruel Experiment.

 

For one’s enlightenment I provide the Video Q&A Session with Herman Van Rompuy on the 5-21-2010 Task Force Meeting On Economic Governance. On the orderly default procedure proposal: “Let’s be very concrete and precise, the ad-hoc mechanism that we have agreed to support Greece and to ensure the stability of the euro area as a whole does not include any provisions for debt restructuring. Crisis management is part of the mandate of the taskforce.

 

All things have a starting point and a father. Out of the European Debt Crisis, Herman Van Rompuy, fathered European Economic Governance; it will serve as basis for the Beast Regime of Revelation 13:1-4, to rise to power.

 

This weekend news reports reflect definite cracks in China’s credit, as Benson te posts More Signs of Cracks in China’s Massive Bubble: Bond Auction Failure, Rising NPLs, More Defaults. Aside from this week’s slump in external trade where bothChina’s export and imports fell in March y-o-y by 6% and 11% indicative of an intensifying economic slowdown, reports also say that property developers have substantially scaled back in raising money through the shadow banking system via trust sales. And CNBC posts Desperate For Credit, China Importers Default On Soy Cargoes.

 

Now with the failure of credit, fiat money and fiat wealth commencing, I will be involved in activities other than blogging; thanks for coming to read here on this site.

Stocks Turn Lower As The Failure Of Credit Commences On The Exhaustion Of The World Central Banks’ Monetary Authority … The Economic Dynamic Of Deflation Will Replace Inflation … Regional Economic Fascism Will Replace Democracy

April 6, 2014

Financial Market Report for Wednesday April 2, 2014

This post is presented in Google Documents format here.

On Wednesday April 2, 2014, Small Cap Pure Value, Transportation, Semiconductors, Global Producers, Dividend Bearing Stocks, as well as China Investments topped out, as the failure of credit commenced, turning High Yielding Debt, Notes and Bonds, as well as Global Utilities lower, as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.79%, on the failure of trust in the world central banks to stimulate economic growth. Major World Currencies traded lower and Agricultural Commodities fell lower.

Volatility, ^VIX, bottomed out, as is seen in most of the Volatility ETFS, TVIX, VIXY, VIXM, XVZ, trading slightly higher.

Small Cap Pure Value Leaders, RZV, Transportation, XTN, Semiconductors, SOXX, Global Producers, FXR, Dividend Bearing Stocks, DTN topped out; and China Investments rose to rally highs, as is seen in the combined ongoing Yahoo Finance Chart of DSUM, and CHIX, CQQQ, ECNS, CHII, TAO, YAO, HNP.

The failure of credit commenced, as evidenced by Aggregate Credit, AGG, trading lower, as the Interest Rate On The US Ten Year Note, ^TNX, traded higher to 2.80%, and as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened, seen in the Steepner ETF, STPP, steepening, forcing the US Ten Year Notes, TLT, lower.

US Treasuries, GOVT, High Yielding Debt, JNK, VCLT, EU, EMB, HYXU, EMLC, HYMB, QLTB, and Notes and Bonds, SHY, IEF, TLT, EDV, FLOT, QLTA, VCLT, PICB, BWX, MBB, as well as Global Utilities, DBU, turned lower on the rise of the Benchmark Interest Rate to 2.79%.

Bellwether Nation Investment, South Africa, EZA, and Interest Rate Sensitive New Zealand, ENZL, traded lower.

Meat Products Leader, TSN, traded lower as Livestock, COW, and Agricultural Commodities,  RJA, CORN, WEAT, JJG, SGG, traded lower.

Most of the Inverse Market Vane ETFs, STPP, XVZ, JGBS, GLD, EUO, YCS, OFF, HDGE, SAGG, TYBS, DNO, traded higher; these could be used as collateral for short selling in a brokerage account.

 

On Thursday, April 3, 2014, World Stocks, VT, and Nation Investment, EFA, were led lower by the credit sensitive US Small Caps, IWC, and by Greece, GREK, Russia, RSX, RSXJ, Sweden, EWD, on lower Major World Currencies, DBV, such as the Swedish Krona, FXS, the Swiss Franc, FXF, and the Euro, FXE, as well as by Emerging Markets, EEM, such as South Africa, EZA, India, INP, SCIN, Brazil, EWZ, EWZS, Thailand, THD,  Egypt, EGPT, Indonesia, IDX, IDXJ, Malaysia, EWM, on lower Emerging Market Currencies, CEW, such as the India Rupe, ICN, and the Brazilian Real, BZF.

Sectors trading lower included, Social Media, SOCL, Biotechnology, IBB, Solar Energy, TAN, Internet Retail, FDN, Nasdaq Internet, PNQI, China Technology, CQQQ, Software, IGV, and

Cloud Computing, SKYY, trade lower.

US Refiners, VLO, MPC, PSX, HFC, and Energy Production, XOP, rose as energy prices, that is Natural Gas, UNG, and Oil, USO, rose on short sell covering. Trefis Team asks What’s Fueling Anadarko’s U.S. Onshore Growth? Anadarko, APC, has identified around 4,000 potential drilling locations in the Niobrara and Codell formations of the Wattenberg field that are expected to provide substantial opportunity for continued activity. But Fracking Service Companies, CJES, BAS, RES, NOAH, EXH, traded lower.

Silver Mines, PAAS, SLW, HL, SSRI, having a PE of 30, are terrifically leverage investments, as is seen in their charts combined with Industrial Miners, PICK, having a PE of 12.

 

On Friday April 4, 2014, The chart of the S&P 500, SPY, shows a trade higher at  the opening bell and a thrust to it its all-time high a minute later; the index traded sideways for the next hour, and then began a steady selloff to its -1.2% mid-afternoon low.

The yield on the US Ten Year Note, ^TNX, plummeted to 2.72%, on the Non Farm Payroll Report, showing ongoing growth, in what the WSJ relates will keep the Federal Reserve Taper on track, taking Aggregate Credit, AGG, higher, but still below its March 2014 rally high.

Eddy Elfenbein posts March NFP +192K, Unemployment = 6.7%. March nonfarm payrolls came in at 192,000 which was below Wall Street’s consensus for 206,000. The number for January was revised higher by 15,000, and February was revised higher by 22,000. The unemployment rate stayed the same at 6.7%. If we split out the decimals, the unemployment rate fell from 6.716% to 6.712%. Over the last six years, the economy has lost 271,000 jobs. For the first time since August 2009, the jobs to population ratio crossed 58.9%. It had been stuck in a narrow range for more than four years.

Bloomberg posts Private U.S. Payrolls Top Pre-Recession Peak

Mike Shedlock posts Nonfarm Payrolls +192,000, Unemployment Rate Steady at 6.7%. Economy Poised to Accelerate? The official unemployment rate is 6.7%. However, if you start counting all the people who want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, etc., you get a closer picture of what the unemployment rate is. That number is in the last row labeled U-6, which is much higher at 12.7%. Both numbers would be way higher still, were it not for millions dropping out of the labor force over the past few years.

Labor Force Factors.Discouraged workers stop looking for jobs, People retire because they cannot find jobs, People go back to school hoping it will improve their chances of getting a job, People stay in school longer because they cannot find a job, Disability and disability fraud. Were it not for people dropping out of the labor force, the unemployment rate would be well over 9%.

Synopsis. This was a solid jobs report. Weather-related effects were taken back and then some. The only negatives were falling hourly wages and a rise in involuntary part-time employment. Finally, if people start looking for jobs, further declines in the unemployment rate will be difficult to come by, even if job reports are generally favorable.

Economy Poised to Accelerate? Is the economy out of the woods and poised to accelerate? I don’t think so. Global imbalances are still growing, Europe is generally a basket case and China is due for a rather hard landing. I did not believe the widely-held China decoupling theory in 2007, and I do not believe the widely-held US decoupling theory today.

NYT blogs It’s Still Bad for the Long-Term Unemployed

Fear has replaced greed. Volatility, ^VIX, rose, as World Stocks, VT, traded lower on fears that the world central banks monetary policies no longer stimulate global growth and corporate profitability. Sectors trading strongly lower included, Social Media, SOCL, Nasdaq Internet, PNQI, Biotechnology, IBB, Internet Retail, FDN, China Technology, CQQQ, Small Cap Pure Growth, RZG, Media, PBS, Semiconductors, SOXX, Networking, IGN, IPOs, FPX, Pharmaceuticals, PJP, Transportation, XTN, Small Cap Pure Value, RZV, Software, IGV, Solar Energy, TAN, Global Production, FXR, and Cloud Computing, SKYY.

Yield Bearing Equity Investments traded lower, despite the Benchmark Interest rate trading lower to 2.72%. The pursuit of yield in equities is over as is seen in ongoing Yahoo Finance Chart of the two best performing yield chasing ETFs, European Dividends, DFE, and Shipping, SEA, trading lower.

Likewise, the pursuit of yield in credit is over. Bloomberg reports Buying Bonds in Sellers’ World: Prepare to Fail. Want to buy a corporate bond? Good luck finding one. Traders trying to purchase investment-grade notes are failing about 46 percent of the time, close to the worst rate in more than four years as measured by activity on Market Axcess Holdings Inc.’s electronic platform. The Yahoo Finance chart of High Yield Bearing Credit Investments, JNK, VCLT, EU, EMB, HYXU, EMLC, HYMB, QLTB, traded up to rally highs.

Global Financials, IXG, traded lower despite Emerging Market Financials, EMFN, trading higher, on higher Emerging Market Currencies, CEW. Investment Bankers, KCE, Stockbrokers, IAI, and Regional Banks, KRE, all traded lower on fears that the world central banks monetary authority has crossed the rubicon of sound monetary policy making “money good” investments bad.

Nation Investment, EFA, traded lower despite the trade lower in the Benchmark Interest Rate to 2.72%.

Nations trading lower included Greece, GREK, and US Small Caps, IWC, trading lower.

Energy Production, XOP, traded lower despite Oil, USO, and Natural Gas, UNG, trading higher; these  rose on short sell covering.

Short Side of Long Posts The Fed’s Goal To Improve Employment By Printing Money Has Failed! This remains the worst/weakest recovery ever; the real economy has grown very little. Confounded Interest posts Low Paying Services Jobs Lead Recovery.

The Fed’s Goal has never been to improve employment. Though Federal Reserve QEs, ECB LTROs and OMT, PBOC Monetary Injections, and other similar world central bank monetary actions, credit was made widely available to investors and to developed nations and even students, through the speculative leveraged investment community, creating a spectacular moral hazard based prosperity enjoyed by only a relative few, in particular those with fiat wealth and those earning executive incomes, as they profited from investment in debt trades and currency trades in Ireland, EIRL, Greece, GREK, Germany, GERJ, The UK, EWUS, The Gulf, GULF, Egypt, EGPT, Denmark, EDEN, the US, IWM, Eurozone Small Cap Dividend, DFE, and New Zealand, ENZL, as is seen in the combined ongoing Yahoo Finance Chart.  

Federal Reserve Bank of Dallas President Richard Fisher spoke before the Asia Society in Hong Kong on April 4, 2014, in “Forward Guidance” stating The Fed’s large-scale asset purchases dramatically and more broadly impacted credit markets. The U.S. credit markets are awash in liquidity. As of March 14, our par holdings of fixed-rate MBS exceeded 30% of the outstanding stock of those securities… We now own just shy of 24% of the stock of Treasury coupon securities. Having concentrated our purchases of Treasuries further out on the yield curve, and done so in size, we have driven nominal interest rates across the credit spectrum to lows not seen in over a half century.

This has allowed U.S. businesses to restructure their balance sheets, manage their earnings per share through share buybacks financed with bargain-basement debt issuance, bolster stock prices through enhanced dividend payouts and position themselves for financing growth once they see the whites of the eyes of greater certainty about their economic future. By driving nominal interest rates to half-century lows, we have also reduced the hurdle rate by which future cash flows of publicly traded businesses are discounted. Thus, through financial engineering, we have helped bolster a roaring bull market for equities: The indexes for stocks have nearly tripled from the lows reached in March 2009.

Alongside these signs of rebound have been some developments that give rise to caution. I have spoken of these in recent speeches, echoing concerns I have raised in FOMC discussions: The price-to-earnings (PE) ratio of stocks is among the highest decile of reported values since 1881. Bob Shiller’s inflation-adjusted PE ratio reached 26 this week as the Standard & Poor’s 500 hit yet another record high. For context, the measure hit 30 before Black Tuesday in 1929 and reached an all-time high of 44 before the dot-com implosion at the end of 1999… Since bottoming out five years ago, the market capitalization of the U.S. stock market as a percentage of the country’s economic output has more than doubled to 145% — the highest reading since the record was set in March 2000. Margin debt has been setting historic highs for several months running and… now stands at $466 billion. Junk-bond yields have declined below 5.5%, nearing record lows…. In my Federal Reserve District… bankers are reporting that money center banks are lending on terms that are increasingly imprudent.

The former funds manager in me sees these as yellow lights. The central banker in me is reminded of the mandate to safeguard financial stability… At the current reduction in the run rate of accumulation, the exercise known as QE3 will terminate in October (when I project we will hold more than 40% of the MBS market and almost a fourth of outstanding Treasuries)…

Forward guidance can be a complicated monetary policy tool … This is the very best we can offer you … Those who think we can be more specific in stating our intentions and broadcasting our every next move with complete certainty are, in my opinion, clinging to the myth that economics is a hard science and monetary policy a precise scientific procedure rather than the applied best judgment of cool-headed, unemotional decision-makers.”

The ZIRP stimulus was focused upon the investor with the result of establishing the investor, and neither the consumer or the employee, as the centerpiece of economic action.

The Dispensation Economics Manifest presents the concept that Jesus Christ acting in Dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, was to perfect the final economic experience of liberalism, defined as freedom from the state, where the investor was set investor free by democratic nation state policies of investment choice and credit schemes of world central banks to pursue and secure investment gain according to his risk profile in debt trades and in currency carry trades.

That perfection was attained on April 4, 2014, and Jesus Christ is now pivoting the world into the experience of authoritarianism.

And Tim Duty writes The Baseline Case Remains Zero Rates Until The Middle To End Of 2015, followed by a gentle pace of rate hikes. And David Wessel of the IMF’s World Economic Outlook posts an even more radical report The Downward Drift in Real Interest Rates.

The Stockcharts.com chart of the Interest Rate on the US Ten Year Note, $TNX, shows just the opposite of those of the IMF Economist. Zero rates no more; the future is one of an ongoing relentless moderate pace of market place Interest Rate hikes by the bond vigilantes. Whether the Fed raises Interest Rates in the next two years is irrelevant, as the bond vigilantes are in control of interest rates. The chart of the Benchmark Interest Rate, from October 23 to April 4, 2014, is the chart of the century as it rises and falls, and is about to enter an Elliott Wave 3 of 3 Up, meaning the upward onslaught of Interest Rates is about to commence destroying credit as well as wealth, thus pivoting the world from democracy into authoritarianism, and from investment choice to debt servitude.

The see saw destruction of fiat wealth has commenced. The bond vigilantes in calling the Interest Rate on the US Ten Year Note higher from 2.48% on October 23, 2013, to its current 2.72%, on the failure of trust in the world central banks to stimulate global growth, is in the process of turning all fiat investments lower.  Aggregate Credit, AGG, is trading lower from its early March high communicating the failure of credit. And on April 4, 2014, investors derisked out of debt trades such as the US Small Caps, IWC, and Greece, GREK, and the Regional Banks, KRE, such as HBAN, SIVB, OZRK, EGBN, BBNK, SBNY, FITB, CASH, and National Bank of Greece, NBG, as well as the most global of  investments such as Industrial Producers, FXR, and Transportation, XTN, turning World Stocks, VT, Nation Investment, EFA, Dividends Excluding Financials, DTN, and Energy Production, XOP, lower.

Look for a steepening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, which will be reflected in the Steepner ETF, STPP, trading higher; and look for interest rates to continually move higher, from 2.72%, on the ongoing failure of the world central banks’ monetary authority.

This being seen in fulfillment of Revelation 6:1-2, where Jesus Christ opened the first seal of the Scroll of End Time Events, on October 23, 3013, releasing the Rider on the White Horse, who has a bow without any arrows, that is the Bow of Economic Sovereignty, to effect global economic coup d’etat to transfer sovereignty from democratic nation state to sovereign regional leaders and sovereign regional bodies, such as the ECB, by enabling the bond vigilantes to start calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.

Rising interest rates and a steepening yield curve will evidence the onset and relentless drive of economic deflation, coming from derisking out of debt trades and deleveraging out of currency carry trades, as World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Dividends Excluding Financials, DTN, will be trading lower from their market highs.

Libertarian Robert Wenzel posts the timely video article, The Road To Serfdom At 70. David Gordon discusses Friedrich Hayek’sThe Road to Serfdom at the 2014 Austrian Economics Research Conference in Auburn, Alabama, on March 20, 2014.

Liberalism was the age of freedom from the state, which began with the Reformation in Switzerland and ended with Money Manager Capitalism on Wall Street.

Jesus Christ finished perfected liberalism’s moral hazard based prosperity with the trade lower in World Stocks, VT, Nation Investment, EFA, Dividends Excluding Financials, DTN, and Energy Production, XOP, on April 4, 2014, where the investor, ruled by democracy, has been the centerpiece of economic activity.

Harold Meyerson writes in the WaPo How Capitalism Enriches The Few Rather Than The Many. Indeed, Piketty’s book provides a valuable explanatory context for America’s economic woes. Wages constitute the lowest share of U.S. GDP, and profits the highest, since the end of World War II. And with heightened accumulations of wealth come heightened accumulations of political power, a shift toward plutocracy to which Wednesday’s Supreme Court decision, permitting the wealthy to contribute to as many electoral campaigns as they wish, adds a helpful push.

Through Global ZIRP, the rent on capital, that is the cost of money fell, enabling the wily to garner awesome wealth inequality. This was the work of Jesus Christ perfecting the age of credit, bringing it to completion, much the same way that a ships steward completes the manifest before the captain sets sail.

Now, as is seen in Revelation 13:1-2, Christ has unleashed, the First Horseman of the Apocalypse, who has the Bow Without Any Arrows, that is the Bow of Economic Sovereignty, to effect global coup d etat terminating the sovereignty of choice of democratic nation states and the liberal schemes of the world central banks, where the speculative leveraged community established the seigniorage of fiat money.

Peter Schwarz of WSWS posts France’s new government: A political turning point for Europe. And Mike Mish Shedlock posts Brussels Says No to France Proposal for Deficit Target Leniency. Whether it be in the EU or in the US, it is as Laurence Kotlikoff writes in Macarthur Org Fiscal Sustainability Is The Defining Issue Of Our Time. The US fiscal gap now stands at an estimated $205 trillion, or 10.3 percent of all future US GDP. Closing this gap is imperative, and requires a fiscal adjustment of an immediate and permanent 37 percent reduction in spending (apart from servicing official debt), an immediate and permanent 57 percent increase in all federal taxes, or some combination of the two. The necessary size of this adjustment increases the longer it is put off.

Now, Jesus Christ is developing authoritarianism, where the debt serf, working through austerity establishes his debt servitude, ruled by regional fascism to establish regional security, stability and sustainability.

I relate that John the Revelator wrote of the dream given to him by angels, that being the Revelation of Jesus Christ, which forms the basis of bible prophecy of Revelation 13:1-4; which foretells that out of Club Med, that is Portugal, Italy, Greece and Spain, sovereign, banking and corporate insolvency, the Beast Regime of regional economic governance will rule in diktat policies in the world’s ten regions and occupy in schemes of totalitarian collectivism in all of mankind’s seven institutions.

Furthermore, through regional framework agreements, the Sovereign will rise to power in the Eurozone, as seen in Revelation 13:5-10. Being most keen and most adept, as is seen in Daniel 8:6-8. he will use his two horns to defeat all adversity; and will be accompanied by the Seignior, that is the monetary high priest who calls all to worship the former, Revelation 13:11-18.

The details of seigniorage will come regional leaders, as they work in regional framework agreements, to establish regional security, stability, and sustainability.  Most certainly, there will be no anarcho-capitalist libertarian economic leaders, that is those who believe in free markets, the non-aggression principle and respect for private property rights, as economic fascism will be replacing crony capitalism, European socialism and Greek socialism. UK Conservative John Redwood bemoans current EU Governance One Law For Everyone, as he reflects on comments 18,965,000 People Know The Euro Is Not Working; soon, libertarianism will be a mirage on the authoritarian desert of the real.

It is most likely that Europe’s New Charlemagne will use German industrial and military power to secure the Ukraine as part of a move to provide natural gas resources for the EU.

It’s as Elaine Meinel Supkis writes Ukraine’s Fake President, Yatseniuk, Is An ‘Economic Kamikaze’ Bombing The Workers. Reuters reports on Kamikaze Economics Ukraine PM says will stick to austerity despite Moscow pressure. He calls himself a ‘kamikaze’ government which is true, he came flying in violently and destroyed an elected government!  The lovely Western Ukraine uprising is now blowing up in their faces.  The leaders of this uprising tried their hardest to start a major war and thus tap into a trillion US dollars but that is now flagging badly due to the reality that Russia’s gas is vital for Europe’s survival. He believes that austerity and cruel crushing rules will fix everything there.  ’A tremendous step forwards,’ like here in the US where our same rulers ended up destroying jobs, crushing workers who have had zero pay hikes versus inflation in 30 years since Reagan and no right to strike. This economic kamikaze expects to shrink the GDP of Ukraine by ‘only 10%’.

Robert Bensh of Oilprice.com writes The Most Profitable Gas in the World. There is only one certainty in Ukraine: The energy sector must and will be transformed, and how long this takes will depend on who ends up in the driver’s seat and how serious they are about becoming a part of Europe and reducing dependence on Russia. But by then, investors will have missed the boat.

The driving factor for any energy investor in Ukraine is the pricing environment. There is nowhere else in Europe, or some would even argue in the world, where you are going to get significant access to resources and potential resources for the price. Gas is selling at $13.66/Mcf, while it costs $4-$5 to produce and operate. That means producers are netting anywhere between $8 and $9/Mcf.

Whether it likes it or not, kicking and screaming, Ukraine will have to transform its energy sector, if it hopes to see promised IMF money. Kiev will have to start selling off assets and making the industry much more transparent.

All the debts of liberalism will be applied to every man, woman and child on planet earth, until all of liberalism’s fiat wealth and fiat money is utterly pulverized into dust as is foretold in bible prophecy of Daniel 7:7.

The era of buy and hold investing, such as that posited by Eddy Elfenbein, is over through finished and done, as the age of world central bank fiat asset inflation is history.

 

Summary

The last bear market began on October 10, 2007 when the DJIA and SPX closed at bull market highs. We have Dow Theory confirmation of the entry of what will be the mother of bear market of all bear markets with both IYT, and IYJ, trading lower simultaneously, as is seen in their ongoing combined Yahoo Finance chart, stemming from the failure of credit as investors lose confidence in the ability of the world central banks to simulate global growth and corporate profitability.

One place the these Inverse Market Vane ETFs, STPP, XVZ, JGBS, GLD, EUO, YCS, OFF, HDGE, SAGG, TYBS, and DNO, in a brokerage account, and use them as collateral for short selling

Yet, an investment demand for gold commenced on the failure of credit. Spot Gold, $GOLD, traded higher to $1,302 taking the Gold ETF, GLD, higher. In the age of economic deflation, although short seller may obtain gains, wealth can be best preserved by investing in and taking possession of gold bullion.

 

In the news

Reuters reports Hillshire To Close 70 Year Old Alabama Plant, Cut 1,100 Jobs  Hillshire, HSH, will close its Florence, Alabama, plant, the site of its breakfast sandwich and breakfast sausage cooking operations, and cut roughly 1,100 jobs by December 30.

Peter Schwarz of WSWS posts France’s New Government: A political turning point for Europe. The appointment of Manuel Valls as France’s prime minister on a pro-austerity, law-and-order platform exemplifies the rightward shift in European politics.

Kumaran Ira of WSWS posts French Government Vows Deep Attacks On The Working Class. Socialist Party officials called for shock therapy against the working class as ministers of the new cabinet of Prime Minister Manuel Valls were named.

Robert Stevens of WSWS posts Greek Parliament Approves New Attacks On Workers.  The latest agreement between the European Union-led troika and the Greek government includes measures to limit the right to strike.

WSJ reports Rubber Prices Plunge on Fears of Thai Selling Spree. Rubber prices are down as much as 6% this week as traders rush to sell on fears the market will become awash in supply

Business Insider reports Ebola Outbreak Could Become An ‘Unprecedented Epidemic’ and also posts The American Farmland Price Boom Is Over

Charles Q. Choi, posts in SPACE.com Moon’s Age And Formation Revealed. Scientists have pinned down the birth date of the moon to within 100 million years of the birth of the solar system, the best timeline yet for the evolution of our planet’s natural satellite. This new discovery about the origin ofthe moon may help solve a mystery about why the moon and the Earth appear virtually identical in makeup, investigators added. Scientists have suggested the moon was formed 4.5 billion years ago by a gigantic collision between a Mars-size object named Theia and Earth, a crash that would have largely melted the Earth. Theoi relates Greek Mythology presents Theia, the Titan goddess of sight (thea) and shining light of the clear blue sky (aithre).

Jesus Christ Pivots The World From The Age Of Credit To The Age Of Debt Servitude

April 2, 2014

Financial Market report for the month of March 2014.

This post is available in Google Documents format here

 

On Monday March 31, 2013, Global Financials, IXG, led World Stocks, VT, Nation Investment, EFA, and Dividends Excluding Financials, DTN, higher, on a Yellen “Put”, as CNBC reports Stocks Rally As Yellen Vows To Support The Economy. Stocks traded higher on the final trading day of the quarter after Federal Reserve Chair Janet Yellen said there’s still room for the central bank to help.

 

Aggregate Credit, AGG, traded unchanged 0.0, with Junk Bonds, JNK, trading, 0.1% higher, and US Ten Year Notes,TLT, trading 0.2, lower, as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher to 2.72%. The Steepner ETF, STPP, rose 0.6%. Gold, GLD, traded 0.5% lower. WSJ Money Beat reportedJanet Yellen Gives ‘One of the Most Dovish Speeches I Have Ever Read. causing Volatility,^VIX, to plummet.

 

In the last six months, European Debt, EU, and German Debt, BUND, have become the most highly valued of all debt, as is seen in theongoing Yahoo Finance Chart of European Debt, EU, together with Aggregate Credit, AGG, German Debt, BUND, Junk Bonds, JNK, US Ten Year Notes, TLT,  World Government Bonds, BWX, and International Treasury Bonds, PICB.  This has driven theEurozone Stocks, EZU, the European Financials, EUFN, European Small Cap Dividend, DFE, and theEurozone Nations, especially theClub Med peripheral PIGS, Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, strongly higher.

 

Liberal Economist Mark Thoma whites in CBS News, How Economic “Rents” Affect Inequality. Jesus Christ acting in dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, perfected the age of credit bringing it to completion in March 2014, producing the most extreme possible moral hazard prosperity, which came through the economic rent of margin debt, as RTG posts NYSE Margin Debt Levels Have Hit New Highs. Rent seeking behavior and the inequality it produced was ordained of God from eternity past, as part of the economy of God.

 

The age of credit featured the investor and risk-on investing as the centerpiece of economic action, where the greatest investment gains came by investing in Small Cap Value Stocks, RZV, and Small Cap Growth Stocks, RZG, with over-the-counter stocks such as Conrad Industries,CNRD. and formally listed Energy Service Companies, IEZ, such as CJES, BAS, RES, NOAH, EXH, being the investors darlings as well as in the pursuit of yield ETFs, such as Leveraged Buyouts, PSP, and in investments such as Dividends Excluding Financials, DTN, such as Hewlett Packard, HPQ.

 

US Infrastructure Stocks, PKB, such as Watsco, WSO, which is loaded with Building Material Stocks, such as Mueller Water Products, MWA, finished the month of March, 2014, manifesting a questioning harami, as Number Nomics posts Construction Spending Seen Strong.

 

The monthly chart of Disney, DIS, manifested a questioning harami as well as the NYT reports  A Billion-Dollar Bracelet Is the Key to a Disney Park.  Walt Disney World has spent more than a year rolling out a $1 billion system that changes how visitors do everything from enter their hotel to pay for their entertainment via the MyMagic+ Fast Pass Braclet.

 

Automobile Dealers, such as PAG, SAH, ABG, KAR, AN, KMX, LAD, clearly topped out in March 2014, as is seen in their combined ongoing Yahoo Finance Chart, as California Beach Pundit posts Car Sales Still Strong and Atif Mian and Amir Sufi post Auto Sales And Weather. “We now have an out-of-sample test of our conclusion: March estimates of new auto sales are out, and they are higher than at any other point since 2007. They also beat consensus forecasts, which suggests that analysts didn’t fully account for the weather-related boost.” The monthly chart of Automobiles, CARZ, and supplier Delphi, DLPH, manifested the lollipop hanging man candlestick in March 2014, suggesting a rally finale.

 

The House of Debt authors also post Another Debt-Fueled Spending Spree? From 2009 to 2013, spending on new autos increased by 40% in nominal terms. All other spending increased by only 20%.  We know that the recovery in employment and income has been pretty weak in 2012 and 2013. Do we think that income growth justifies the large increase in auto debt? Who exactly is getting these loans? Are they borrowers who are seeing their income and employment fortunes improve? Will lenders continue to lend if risk-free rates rise? We will further explore these questions in the coming weeks. For now, we just want to flag this as a potential worry. Something to think about.

 

Benson te writes theUS Dollar Standard Has Spawned One Colossal Global Bubble Finance. The age of credit centered around currency carry trade investing Regional Airlines, such as Ireland’s RYAAY, the Nation of Ireland, EIRL, and its Bank, IRE, as well as debt trade investing in companies such as Real Estate Investment Company, Blackstone, BX, and Industrial Equipment Provider, HEES.  Global ZIRP supported Nation Investment, EFA, in countries such as Denmark, EDEN, and a pursuit of yield seen in Gulf Dividends, GULF, and the Netherlands’, EFNL, and its Life Insurance Company, ING.

 

Regional Bank Leaders, KRE, such as HBAN, SIVB, OZRK, PACW, EGBN, BBNK, SBNY, FITB, BNCN, and CASH, traded higher; but it was the Japanese Banks, SMFG, MFG, and Credit Provider, IX, as well as Stockbroker, NMR, that led Global Financials, IXG, lower in March 2014.

 

China Investments, such as, CHIX, CQQQ, ECNS, CHII, TAO, YAO, HNP, rallied at the end of March 2014, ABC and The Australian Broadcasting Corporation feature video interviews with James Rickards and Richard Duncan A Sign Emerges That China’s Economy Is On The Verge Of Collapse. New figures reveal that China’s big banks wrote off 10 billion dollars in bad debts last year, double the amount recorded in 2012. The doomsayers reckon the US dollar’s days are numbered as well, after five years of money printing.

 

Nation Investment, EFA, was led lower by Russia, RSX, ERUS, on the takeover of Crimea, Japan, EWJ, JSC, on the failure of Abenomics, and Peru, EPU, on the failure of Copper, JJC, in March 2014.

 

The Chart of Natural Gas, UNG, shows a cup and handle completion pattern, and thus Natural Gas,UNG, will be trading lower in price. The chart of Oil,USO, and Brent Oil, BNO, both show they have entered a decline, which will cause Energy Production Companies, XOP, to trade lower. The combined ongoing Yahoo Finance Chart of Energy Partnerships, such as Enbridge, ENB, as well as the chart of 200% Energy Partnerships, MLPW, shows these to be topped out.

 

Asset bubbles no more. Jesus Christ, acting in dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, completed the age of credit during March 2014, as the Bear Market Of 2014, both in equity investments, VT, and credit investments, AGG, picked up steam, on the exhaustion of the world central banks’ monetary authority; and pivoted the world into the age of debt servitude.

 

Confirmation of a bear stock market is seen in Nuveen Closed End Equity Fund, JCE, trading lower. And confirmation of the failure of credit is seen in Call Write Bonds, CWB, trading lower.

 

The inflationism of the US Fed is history and the sell of the Yen, FXY, relative to the Euro, FXE,FXE:FXY, has produced the greatest possibly currency carry trade investment leverage.

 

Currency carry trade investing drove major world currencies, DBV, and Emerging Market Currencies, CEW, to rally highs in March, 2014, producing peak Nation Investment, EFA, with Denmark, EDEN, Gulf Dividends, GULF, New Zealand, ENZL, trading higher; as well as Emerging Markets, EWM, with India, INP, SCIN, EPI, and Indonesia, IDX, IDXJ, recovering strongly.

 

The new normal economic dynamic is destructionism, which will be seen in economic deflation, and ever-increasing austerity, coming largely from disinvestment out of currency carry trade investments, such as theEUR/JPY, and derisking out of debt trade investing, such as Leveraged Buyouts, PSP, on the exhaustion of the world central banks’ monetary authority, as these have crossed the rubicon of sound monetary policy and have made money good investments bad.

 

MG investments postsCovenant Erosion in High Yield Bonds Documented, Caveat Emptor. Yes indeed, buyer be aware, the failure of credit has commenced.  The bond vigilantes calling the Interest Rate on the US Ten Year Note higher to 2.79%, in early March 2014, on the failure of trust in the world central banks to stimulate global growth, has caused the Global Growth ETFs, such as Semiconductors, SOXX, and Global Producers, FXR, the Consumer Spending ETFs, such as Internet Retail, FDN, and Distressed Investments,FAGIX, (as well as other High Yielding Debt such as JNK, BDCS, VCLT, HYXU, HYMB), which the US Fed took in  under QE 1, and traded out money good US Treasury Notes, TLT, to trade lower from their early March 2014 high.

 

Equity is no longer leveraging higher over debt as is seen in World Stocks, VT, relative to Aggregate Credit, AGG,VT:AGG, to trade lower. With the trade lower in World in World Stocks, VT, in March  2014, the world pivoted from the age of credit to the age of debt servitude on the failure of the seigniorage of the world central banks. Look for popular Notes and Bonds ETFs such as TLT to trade lower in value on the ongoing exhaustion of trust in the monetary policies of the world central banks.

 

Deleveraging out of currency carry trade investments and derisking out of debt trade investments is producing the Bear Stock Market of 2014 and is introducing Kondratieff Winter, the final phase of the Business cycle, and all four components of Total Spending will plummet introducing great economic recession, characterized by economic deflation, which will produce the new economic dynamo of regionalism replacing the former dynamos of creditism, corporatism and globalism.

 

The age of debt servitude features the debt serf as the centerpiece of economic action, working through his debt servitude in all austerity, where all the debts of the former age will be applied to every man, woman and child on plane earth until all fiat wealth is utterly pulverized into dust as is foretold in bible prophecy of Daniel 7:7.

 

Examples are now starting to flow in as WSWS writes Detroit water cutoffs, and as Ambrose Evans Pritchard writes with those in the Ukraine serving as an example. And In the news, Short Side of Long postsCitigroup’s US Economic Surprise Index has been dropping lower into the negative territory throughout the month of March, as Global leading indicators continue to show DM improvement.

East Cleveland serves as a foreshadowing of the age of economic deflation. Rust Wire post the video documentaryThe Fall of East Cleveland. Neighborhoodscout relatesThe per capita income in East Cleveland in 2010 was $13,818. East Cleveland also has one of the higher rates of people living in poverty in the nation, with 39% of its population below the federal poverty line. Similarly Biggest US Cities Demographic Data post forEast Cleveland, OH 44112, shows a poverty rate of 36%.

 

The age of credit was established upon the sovereignty of democratic nation states and the seigniorage of the Creature from Jekyll Island as well as the speculative leveraged investment community. The failure of credit is seen in World Treasury Bonds, BWX, and its closed end fund peer, Pimco Global Government Debt, RCS, both trading lower in value.

 

The age of debt servitude is being established by Jesus Christ opening the first seal of the Scroll of End Time Events, releasing the Rider on the White Horse, who has a bow without any arrows, that is the Bow of Economic Sovereignty, to effect global economic coup d’état to transfer sovereignty from democratic nation state to sovereign regional leaders and sovereign regional bodies, such as the ECB, by enabling the bond vigilantes to start calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013. Needless to say a steepening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, trading higher, will evidence the onset and relentless drive of economic deflation, which will be seen in the Most Currency Carry Traded Nations, DFE, IDX, EWUS, GULF, EGPT, GREK, EDEN, SCIN, IWM, GERJ ,ENZL, ECNS, falling rapidly in value.

 

Seigniorage will come regional leaders, as they work in regional framework agreements, to establish regional security, stability, and sustainability.  Most certainly, there will be no anarcho-capitalist libertarian economic leaders, that is those who believe in free markets, the non-aggression principle and respect for private property rights, as economic fascism will be replacing crony capitalism, European socialism and Greek socialism. Libertarianism is a mirage on the authoritarian desert of the real.

 

Look for a sharp rise in the value of the bear market, that is inverse ETFs, such as Direxion 300% ETFs, ERY, FAZ, SOXS, SPXS, EDZ, KORZ, DPK, EURZ, DRV, TMV, as well as the Proshares 200% ETFs, BIS, SQQQ, SDD, SSG, SKF, EPV, SCC, RXD, DUG, TTT.

 

One could commence short selling with the funding of a brokerage account with these Market Vane ETFs, STPP, XVZ, JGBS, GLD, EUO, YCS ,OFF, HDGE, SAGG, TYBS, DNO.

 

One can follow the destruction of fiat wealth with the use of this Finviz Screener.

 

Wealth will best be preserved, and in fact grown by investing in and taking possession of gold bullion and some silver bullion for bartering, as an investment demand for gold is going to soar as fiat wealth falls into the Pit of Financial Abandon; look for Spot Gold, $GOLD, to start rising from $1,280.

 

Monthly chart of US Infrastructure, PKB, manifesting a questioning harami during March 2014 communicating peak fiat wealth that came during the age of credit from the inflationism of the world central banks.

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