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

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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