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.
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 Future — fashion 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
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 Chinaâ€™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%.
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.