World Stocks And Nation Investment Trade To New Rally Highs, But The Trade Lower In US Small Caps, Greece, And Chinese Stocks Establishes The Failure Of Credit

Financial market trading for the week ending Friday May 9, 2014

This post is available in Google Documents format here .

 

1) … World Stocks, VT, and Nation Investment, EFA, trade to a new rally highs; but the trade lower in the US Small Caps, Greece, and Chinese Stocks, establishes the failure of credit.

 

On Monday, May 5, 2014, the chart of the 10 Year US Government Note, TLT, manifested a dark cloud covering candlestick, and traded lower, after having risen parabolically higher. suggesting a reversal lower from its rally high is imminent.

 

On Tuesday, May 6, 2014, the US Dollar, $USD, traded by the 200% ETF, UUP, fell vertically lower at open, with the result that the Major World Currencies, DBV, traded to a rally high, led by the British Pound Sterling, FXB, and the Australian Dollar, FXA, which stimulated the UK, EWU, and Australia, EWA, to trade higher. The Euro, FXE, sprang higher to close at 137.52. Emerging Market Currencies, CEW, traded to a new rally high. The chart of the US Dollar, $USD, closed strongly lower at 79.15.

While Aggregate Credit, AGG, traded unchanged at its rally high, Junk Bonds, JNK, Emerging Market Local Currency Bonds, EMLC, International Corporate Bonds, PICB, and World Government Bonds, BWX, traded to new rally highs. The 10 Year US Government Note, TLT, traded slightly higher, but closed below its recent rally high, as the Benchmark Interest Rate, ^TNX, closed at 2.6%.

Reuters reports Wall Street Falls In Broad Selloff. The death of credit, and the pivot from the experience of investment choice into that of debt servitude, which commenced in April 2014, has accelerated. Global Financials, IXG, trading lower, intensifying as the National Bank of Greece, NBG, led Greece, GREK, as well as the Regional Banks, KRE, the Too Big To Fail Banks, RWW, and the Stockbrokers, IAI, led the US Small Caps, IWM, in particular the Small Cap Pure Growth, RZG, US Infrasturcture, PKB, Metal Manufacturing, XME, Nasdaq Large Caps, QQQ, and Retail, XRT, such as the Apparel Retailers, WTSL, ARO, ANR, EXPR, CBK, DEST, DXLG, PLCE, URBN, PSUN, lower.

The trade lower in services communicates the investors fear that the zenith of reward has been reached from investing in developing best practices and in developing technology used in corporate endeavors. Finviz Groups reports Services are leading the way lower this year. On Tuesday May 6, 2014, Trulia, TRLA, plummeted 8%; it provides internet tools to research homes and neighborhoods for consumers through Web and mobile applications; competitors include Z and MOVE.  And Towers Watson, TW, plummeted 9%; it provides consulting, technology and solutions in the areas of benefits, talent management, rewards, risk and capital management; competitors include, BAH, HURN, HIL, ICFI, CEB, EXPO, III, TMNG, and NCI. And Athenahealth, ATHN, plummeted 14% on Tuesday May 6, 2014; it provides an Internet-based practice management application; competitors include MDSO, WBMD.

Soon all fiat Equity Investments are following Global Financials, IXG, in trading lower. World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, SCZ, New York Composite, NYC, and Dividends Excluding Financials, DTN, as well as the Defensive Investments, DEF, Utilities, PUI, Consumer Staples, KXI, International Energy, IPW, Energy Production, XOP, and Real Estate, IYR, will be commencing their fall lower into the Pit of Financial Abandon on the failure of trust in the world central banks monetary authority to stimulate ongoing investment gain, as well as global economic growth; this as Zero Hedge posts Global Manufacturing PMI Plunges To 6-month lows.

One Of The Big Ideas of the Last 50 Years was the contribution of Milton Friedman who proposed the Free To Choose Floating Currency Regime. President Nixon took the US off the Gold Standard, and the US became the International Reserve Currency, which enabled the US to rise to become the global hegemonic kick ass empire, beginning with the Vietnam War, replacing the former hegemon, that being the British Empire.

Another Big Idea was Clientelism. Tim Hartford posts The Final Reckoning in Healthcare. People are too used to the idea that someone else, the state or an insurer, will pay the bill. Free choice is nice but what everyone seems to prefer is free treatment.

The Ultimate Big Idea was the schemes of Global ZIRP, which began when in 2008, when the US Fed traded out “money good” US Treasuries for Distressed Investments of all types, such as those traded in Fidelity Investments FAGIX Mutual Fund, and which provided the basis for global growth, and more importantly, to generate investment, in what would become the Summer Bloom and Fall Glory of the age of credit, that was underwritten by the Milton Friedman Free To Choose Architecture.

And the schemes of Global ZIRP continue even to now as Ed Yardeni posts Fed Is Stepping On Accelerator And Brakes (excerpt)  The Fed’s senior loan officersurvey released Monday showed that banks are not making it easier for potential homebuyers. The survey of 74 domestic and 23 foreign banks operating in the US shows that banks are holding loan standards steady for prime mortgages and have raised them for nontraditional and subprime loans over the past three months.

Fed officials have frequently stated that their ultra-easy monetary policy is aimed at keeping mortgage rates low to revive home sales. Their tapering talk last spring caused the 30-year mortgage rate to jump by about 100bps. It is still 82 bps above the May 2, 2013 low. Meanwhile, the Fed is subjecting the banks to regular stress tests, which discourages them from making risky loans to would-be homeowners. In other words, the Fed is tapping on the mortgage-lending brakes and the monetary accelerator at the same time. This hasn’t stopped banks from making lots of business loans secured by inventories and other working capital as is seen the chart Short Term Business Credit And Inventories.

Soon deleveraging and derisking out of World Stocks, VT, will stimulate Major World Currencies, DBV, and Emerging Market Currencies, CEW, to trade lower, beginning Kondratieff Winter where  regional currencies, and non-dollar bartering, that is undollar currency regimes, will govern economic relations. A Ten Toed Kingdom of regional government of iron diktat and clay totalitarian collectivism, seen in Daniel’s Statue of Empires of Daniel 2:25-45, will soon replace the former two world empires. Debt deflation will stimulate Aggregate Credit, AGG, to trade lower, in a see-saw destruction of Equity Investments together with Credit Investments.

Liberalism was the paradigm that established the age of credit. Trust in the Banker Regime’s monetary policies, specifically the US Fed’s purchases of 30 Year US Government Bonds, EDV, Ten Year Notes, TLT, and Mortgage Backed Bonds, MBB, as well as the ECB’s purchase of European Debt, EU, increased the supply of money needed to provide investment liquidity, and to produce economic growth; more so in the US than in the Eurozone. Peak Wealth has been achieved via the US Fed’s purchase of US Government Debt.  Peak Wealth established an awesome moral hazard based prosperity. Now, the investor’s risk appetite has turned to risk aversion, as investors fear that the Fed’s monetary policies have crossed the rubicon on sound monetary policy, and have made money good investments, such as the Chinese Financials, CHIX, and the US Small Caps, IWM, bad

Patrick Martin reports Fed Chief Yellen Reassures Wall Street On Interest Rates. In testimony before Congress, Yellen indicated that the US Federal Reserve would keep interest rates at their current near-zero level for the foreseeable future.

While Valuewalk posts Jim Grant Relates Interest Rates Are Headed Lower, the reality is that it’s Global ZIRP no more. The bond vigilantes are in control of interest rates globally, and will be calling the Interest Rate on the US Ten Year Note, $TNX, higher from 2.6%, as well as steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening.

Successful investing in the Pursuit of Yield Investments, such as PHO, GRID, PSP, IST, DBU, DRW, PGF, PUI, and the High Yielding Debt Investments, such as JNK, and HYMB is history. Bloomberg reports Budget Strains Showing As S&P Warns On Local Debt The greatest investment gains came from those invested in Proshares 200% ETFs, and Direxion 300% ETFs.

The age of buy and hold investing is over, through finished and done. Profitable investing in Consumer Services, IYC, such as NFLX, TWC, CRWN, LBTYA, DTV, DISH, CMCSA, CHTR, and SATS, is history. One could begin a short selling strategy and use these Inverse Market ETFs as collateral in a brokerage account: STPP, XVZ, EUO, YCS, CMD, DNO, MLPS, OFF, SBB, SBM, EFZ, YXI, SZK, SDP, KRS, REK, DDG, MYY, EUM, SAGG, DTYS, JGBS, GLD, GYEN, GEUR, GGBP, HDGI, HDGE

Not only will the High Yield Debt Instruments, such as Junk Bonds, JNK, be trading lower, but the Zeroes, ZROS, the 30 Year US Government Bonds, EDV, and the 10 Year US Government Notes, TLT, as well. Yes all Credit Investments, together with Equity Investments, will be trading lower in a see saw destruction of fiat wealth.

Since the first of the year, that is from January 2014 through early May 2014, the longer duration US Government Debt, EDV, has been outperforming the Ten Year Debt, TLT, as is seen the chart of the ratio of EDV:TLT. This is going to change very soon, as the failure of credit seen in the Chinese Stocks, YAO, ECNS, CHIX, CQQQ, and TAO, Greece, GREK, as well as the US Small Stocks, IWM, carries forward to all Credit Investments and Equity Investments.

Liberalism featured the sovereignty of Banker Regime of democratic nation states, which provided policies of investment choice and schemes of credit in fiat money, producing seigniorage in Equity ETFs, and Credit ETFs, where the investor was the centerpiece of economic activity. Not only did Dividend Excluding Financial Investment, DTN, but also Nation Investment, EFA, and Small Cap Nation Investment, SCZ, figured prominently in the age of credit, through debt trade investing, seen in H&E Equipment Services, HEES, United Rental, URI,, and currency carry trade investing, seen in EU Small Cap Dividends, DFE, as well as AER, and presented in their combined Yahoo Finance Chart.

An inquiring mind asks what is the cost of a forklift from either one of the two aforementioned companies? This is a question implicit in the Robert P Murphy Econolog article The Importance of Capital in Economic Theory.

Since the GFC, through money manager capitalism, we have had investors strongly buying the Small Cap Pure Growth companies, H&E Equipment Services, HEES, and United Rental, URI, the two providers of forklifts, which began trading lower in April 2014 on the failure of credit. These companies represent short selling opportunities.

These providers of forklifts are toxic assets in the sense that they both have a Debt To Equity Ratio and a LT Debt To Equity Ratio that cannot be repaid, which suggests that the forklift providers are zombie companies.

The price of forklifts to businesses is the cost of a business loan, that is interest, secured by inventory and other assets that can be claimed and sold; it is in this economy, that is the May 2014 economy, zero.

These lynchpin companies became liabilities not assets to society, when they were transformed by Global ZIRP and became Frankensteins of the Creature from Jekyll Island. Once investors start aggressively disinvesting and derisking out of these lynchpin investments and other debt leveraged and currency carry trade leveraged investments, the much feared economic deflation, will commence; and what was in the age of credit, inflationism, becomes in the age of debt servitude, destructionism.

With the soon coming death of fiat money, defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, the new money, that being diktat money, defined as the mandates of regional leaders to establish regional security, stability, and sustainability, will serve as the wheels for the economy.

With the failure of credit, seen in China, YAO, ECNS, CHIX, Russia, RSX, ERUS, Emerging Europe, ESR, Greece, GREK, the US Small Caps, IWM, IWC, Credit Providers, MA, V, DFS, AXP, and Commodities, DBC, trading lower, authoritarianism is the new paradigm, which features the age of debt servitude, where the God ordained sovereignty of the Beast Regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, which provides economic life experience in policies of diktat and schemes of debt servitude in diktat money, and which establish seigniorage in Regional Fascism, and which establishes the debt serf as the centerpiece of economic activity.

Bible prophecy foretells in Revelation 13:1-4, it is out of the European Debt Crisis, that is out of tossing waves  of sovereign, banking, and corporate insolvency of the Club Med Nations, specifically Portugal, Italy, Greece, and Spain, that a New Monster is rising to replace the Creature from Jekyll Island.  It is completely different from the Interventionist of creditism, corporatism and globalism. The Regional Animal, has the form of a leopard, feet like those of a bear and a mouth like that of a lion; and thus operates by stealth, roots outs it enemies, and devours its prey by crushing, ripping and tearing them apart.

And as seen in Revelation 13:5-10, there is a Regional Leader waiting in the wings of Europe’s stage, who will soon step into the limelight, and through cunning and shrewdness, will rise to power through regional framework agreements, to rule the Eurozone, with the help of a Regional Monetary High Priest, seen in Revelation 13:11-18. The word, will and way of the Sovereign will replace all traditional constitution, national and historic law. And that of the Seignior will establish seigniorage for all residents of the EU. The mandates of fascist leaders will coin diktat money which will establish economic value and grease the wheels of economic activity.

In the age of credit the economy, there were two economic goods, consumable output and leisure, demanded by households. Now in the new economy, that is the age of debt servitude, there is increasingly one economic good, consumable output demanded by regional fascist leaders.

Captain Hook writes in Atlas Shrugged Is Emerging. The world has become Atlas, bearing a great burden of debt. The Debt Loaded Emerging Market Nations that are at the greatest risk of debt deflation are IDX, EPHE, SCIN, EGPT, GXG, ARGT, GAF, TUR, ECH, and EPU, as is seen in their ongoing Yahoo Finance Chart.  Of note, Banks, BSBR, ITUB, BBD, BFR, BMA, GGAL, IBN, HDB, BAP, BCH, CIB, have been leading the Emerging Market Financials, EMFN, higher since the first of the year. And also of note, the Philippines, EPHE, has swelled 17% year-to-date.

The investor is going extinct, and the debt serf is being created, as liberalism’s dynamos of economic activity, creditism, corporatism, and globalism are winding down on the failure of credit; and as authoritarianism’s singular dynamo of regionalism is winding up to provide regional security, stability, and sustainability. While Crimea will be part of the Eastern Kingdom of Russia and China, The Ukraine will be part of the Eurozone as Antiwar reports Ukraine Interior Ministry: More Than 30 Terrorists Killed in Slavyansk Fighting; and as Breitbart posts Van Rompuy: If The Public Doesn’t Want EU Expansion, ‘We Do It Anyway’. European Council President, Herman Van Rompuy, warns Vladimir Putin that the EU intends ultimately to control every country on the western flank of Russia; and as Global Research asks Is German Chancellor Angela Merkel Authorized to Rule Europe?

Atlas’ load of debt is so overwhelming that it cannot be forgiven and written off; it will be applied to every man, woman and child on planet earth through the economic system of Regional Fascism, which is rising to replace Capitalism, European Socialism, Greek Socialism, and Communism.

 

On Wednesday, May 7, 2014,  Energy Partnerships, AMJ, EMLP, International Energy, IPW, Consumer Staples, KXI, such INGR, IFF, PEP, BUD, TAP, FMX, Real Estate, IYR, FNIO, REZ, REM, DRW, Global Utilities, DBU, Electric Utilities, PUI, International Telecom, IST, and Specialty REITS, such as AMT, CCI, Hotel & Lodging REITs, such as FCH, SOHO, and Retail REITS, such as SL, GGP, SP, traded higher, continuing an ongoing trend, taking Defensive Investments, DEF, to a new rally high.  Junior Energy Partnerships, MLPJ, traded strongly lower.

Solar Energy, TAN, Social Media, SOCL, Nasdaq Internet, PNQI, Cloud Computing, SKYY, Internet Retail, FDN, Casinos and Resorts, BJK, Retail, XRT, Media, PBS, Biotechnology, IBB, Automobiles, CARZ, traded lower.

China, YAO, ECNS, CQQQ, CAF, CHII, CHIX, CHXX, TAO, Italy, EWI, and Austria, EWO, traded lower, establishing the failure credit.

Norway, NORW, Philippines, EPHE, Brazil, EWS, EWZS, Mexico, EWW, Argentina, ARGT, Gulf States, MES, and Columbia, GXG, traded higher.

Emerging Market Bonds, EMB, EMLC, EMCD, traded higher, taking the whole spectrum of High Yielding Debt Investments, as well as Aggregate Credit, AGG, higher.

 

On Thursday, May 8, 2014,Equity Investments, that is World Stocks, VT, traded to a new rally high, as the European Financials, EUFN, The Eurozone, EZU, popular EURJPY Currency Carry Trade Investments, and Spain, EWP, and its Banco Santander, SAN, traded higher, to new rally highs, on a lower EUR/JPY as the Euro, FXE, traded lower, and as the Yen, FXY, traded higher to strong resistance. European Debt, EU, traded lower.

The Euro, FXE, fell strongly. Look for the Euro to continue to trade lower forever lower than the Yen, with the result of disinvestment of these Debt Trade Investments, and these Debt Trade Investments, and these Currency Carry Trade Investments, and these Currency Carry Trade Investments, not only in the Eurozone, but worldwide, as well.

Nation Investment, EFA, traded to a new rally high as currency traders continued taking Major World Currencies, DBV, higher. The Canadian Dollar, FXC, higher, led Canada, EWC, and its banks, BNS, CM, TD, higher; the Australian Dollar, FXA, led Australia, EWA, higher, and its bank,WBK, The UK, EWU, Norway, NORW, and South Africa, EZA, rallied higher, while Egypt, EGPT, Gulf States,  MES, and EDEN, traded lower from their rally highs.

And Currency traders continued taking the Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, higher with the result that Turkey, TUR, Columbia, GXG, Emerging Africa, GAF, Philippines, EPHE,, Singapore, EWS, EWSS, Taiwan, EWT, and Malaysia, EWM, traded higher.

While, Semiconductors, SOXX, Retail, XRT, and the Too Big To Fail Banks, RWW, traded higher, Solar Energy, TAN, Biotechnology, IBB, Resorts and Casinos, BJK, Automobile Producers, CARZ, Coal, KOL, and Energy Production, XOP, traded lower.  Natural Gas, UNG, traded strongly lower.

The US Small Caps, IWM, IWC, Regional Banks, KRE, Greece, GREK, Vietnam, VNM, Thailand, THD, Hong Kong, EWH, EWHS, traded lower, following China, YAO, ECNS, CHIX, CQQQ, and TAO, lower, establishing the failure of credit.

The World’s Banks, that is Global Financials, IXG, traded higher, but reside below its April 2014, high, establishing the failure of credit. Of note, the National Bank of Greece, NBG, traded strongly lower, taking Greece, GREK, lower.

Barclays, BCS, traded higher, as The Guardian posts Barclays To Cut Up To 8,000 Investment Banking Jobs.

Emerging Market Bonds, EMB, EMLC, EMCD, traded higher, on the higher Emerging Market Currencies, CEW, taking the whole spectrum of High Yielding Debt Investments higher.

Credit Investments, that is Aggregate Credit, AGG, rose to a new rally high, on the rallying Major World Currencies, DVB, and rallying Emerging Market Currencies, CEW. US Treasuries, TLT,  traded lower from its recent high, manifesting a questioning harami. The Interest Rate on the US Ten Year Note, ^TNX, traded unchanged at 2.6%.

 

On Friday May 9, 2014 there was a global currency event. Debt deflation commenced with most Equity Investments and most Credit Investments trading lower, as all The Currencies, that is the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, except the India Rupe, ICN, traded lower at opening, with the result that the US Dollar, $USD, UUP, popped higher, and closed higher at 79.95, causing disinvestment out of Global Financials, IXG, Nation Investment, EFA, Dividends Excluding Financials, DTN, and World Stocks, VT, as the Bond Vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.60% to 2.62%, in exercising their control over the US Federal Reserve.  Electric Utilities, PUI, XUI, and Global Utilities, DPU, such as China Utility, HNU, traded strongly lower on the higher Benchmark Interest Rate, $TNX.

Inasmuch as investors fear that the word central banks have crossed the rubicon of sound monetary policy, and have made money good investments bad, currency traders sold out of the Euro, FXE, and investors sold out of Banco Santander, STD, which led the European Financials, EUFN, the European Stocks, EZU, and the European Small Cap Dividend Stocks, DFE, lower. Greece, GREK, led the Eurozone Nations, lower. The Euro, FXE, fell strongly lower form its recent high near 138 to close at 136.

Deleveraging out of the Euro Yen Currency Carry Trade, EUR/JPY caused Spain’s Telecom Company, TEF, to trade strongly lower.

The Canadian Dollar, FXC, traded lower, causing disinvestment out of Canada Small Caps, CNDA, -2.7%, and Canada, EWC, -0.8%. Deleveraging out of the Canadian Dollar – Japanese Yen Currency Carry Trade, caused Global Energy Producer IPW, Encana, ECN, to trade 2.2% lower.

Most of the High Beta ETFs, such as Retail, XRT, that had sold off so strongly, traded slightly higher.

Natural Gas, UNG, traded strongly lower. Bloomberg reports Iron Ore Slumps to Lowest Since 2012 as Surplus Deepens. Iron ore retreated to the lowest level since 2012, capping a fourth weekly loss and nearing $100 a ton, as increased seaborne supplies of the steelmaking raw material boosted a global glut. Ore with 62 percent content delivered to the Chinese port of Tianjin fell 1 percent to $102.70 a dry ton, the lowest level since September 2012, according to data from The Steel Index Ltd. The commodity dropped 23 percent this year, after falling 7.4 percent last year

The failure of credit, that is trust in the monetary policies of the world central banks to stimulate investment gains on May 9, 2014, marked by the trade lower in the Worlds Major Currencies, DBV, and Emerging Market Currencies, CEW, was a defining inflection point and was the most significant event in economic history since President Nixon took the US off the gold standard in 1971; the world  pivoted from the age of credit, where the investor was the centerpiece of economic activity, into the age of debt servitude, where the debt serf is the centerpiece of economic activity.

While Junk Bonds, JNK, traded higher on May 9, 2014, other High Yielding Debt, such as European Debt, EU, led Aggregate Credit, AGG, lower; the 30 Year US Government Bond, EDV, traded down more than the US Ten Year Note, TLT; Floating Rate Notes, FLOT, traded lower; the Steepner ETF, STPP, traded higher, reflecting a steepening of the US Sovereign Debt Yield Curve, $TNX:$TYX; and the Zeroes, ZROZ, led Popular Notes And Bonds lower; all establishing the failure of credit.

From May 9, 2014 forward, all Credit Investments, together with all Equity Investments, will be trading lower in a see saw destruction of fiat wealth.

On May 9, 2014, derisking out of Debt Trade Investments, and deleveraging out of Currency Carry Trade Investments, caused Global Growth Investment, DNL, such as Mexico Cement Manufacturer, Cemex, CX, to trade lower.

Deleveraging out of currency carry trade investments such as Cemex, CX,  and derisking out of debt trade investments, such as Blackstone, BX, introduces Destructionism which replaces Inflationism, with the result that the much feared global economic deflation is inevitable.

Look for strong disinvestment to come out of The Most Carry Traded Nations, such as Canada, EWC, Spain, EWP, Italy, EWI, Philippines, EPHE, ias Major World Currencies, DBV, and Emerging Market Currencies, CEW, collapse on the ongoing failure of credit, that began in April 2014 when, China, Russia, Developing Europe, Greece, and the US Small Caps trading lower.

Fiat money was coined by the Creature from Jekyll Island, and was a function of the age of credit. The new money, diktat money, defined as the mandates of regional fascism for regional security, stability and sustainability, is coined by the Beast Regime of regional economic governance and totalitarian collectivism, and is a function of the age of debt servitude.

The chart of the Dollar, $USD, UUP, which is actually a basket of currencies, is terrifically bearish.

Look for Major World Currencies, DBV, and Emerging Market Currencies, CEW, to sell off, bringing the US Dollar, into a global currency, credit, and equity collapse, known as Financial Armageddon, and foretold in bible prophecy of Revelation 13:3-4.

It is out of this crisis that the Beast Regime of regional economic governance and totalitarian collectivism, seen in Revelation 13:1-4, will rise to rule in policies of diktat and schemes of totalitarian collectivism, as leaders meet in summits to renounce national sovereignty, and announce regional sovereignty, which will come through regional framework agreements.

People will come to trust in a cadre of regional fascist leaders who establish regional fascism for regional security, stability, and security.

One should be invested in a non-dollar wealth preservation strategy.

Spot Gold, $GOLD, traded lower to close at $1,289; it is in an Elliott Wave 3 Up, on its way to an Elliott Wave 5 High. There is coming an investment demand for gold as investors move out of the Defensive Stocks, DEF, that is Utilities, PUI, XLU, Energy, XOP, IPW, and Consumer Staples, KXI, and into Gold, GLD.

In the age of the failure of credit, wealth is preserved only by the safe storage and physical possession of gold bullion.

 

2) … What can economics explain?

Economics can explain a paradigm and an age, as well as a life mindset.

Dispensation economics presents the concept that economics is the ordained life experience of humanity, and is a paradigm presenting the experience of money in an age.

The Apostle Paul communicates in Ephesians 1:10 that economics is the paradigm and stewardship of all things by Jesus Christ in every epoch, bringing them to maturity and perfection, much like a ship’s captain completes the manifest before setting sail.

Economics is defined as the life experience between a person and another, a corporation, and the state, that is government; either it be ethical or pathological; economics is the trust and flow that comes from sovereignty, and the model that best presents economics is theDispensation Economics Manifest.

An economy is defined as the life experience that comes from the administration of the credit and trade that comes from a household or stronghold. An economy exists for life and death experience, and is determined by the prevailing interest rate of the monetary regime and its monetary policies and schemes. For example, UK based Shaun Richards reports Full Speed Ahead. UK Manufacturing PMI (Purchasing Managers Index) accelerating to 57.3 in April. The Bank of England helped with its Funding for Lending Scheme … The numbers for consumer credit: the three-month annualised and twelve-month growth rates were 6.2% and 5.3% respectively.

All be economists, as economics is not restricted to news pundits such as Paul Krugman, or to ivory tower academicians such as Oxford’s Simon Wren-Lewis, or to free market proponents such as Robert P. Murphy, or to libertarians such as Ralph Raico, who asks What Is Classical Liberalism?

Economics is a money based life experience that is experienced by all; money is defined as the credit and trade that comes from the administration of a household or stronghold; debt based money bears interest, which is defined as the cost of money. The debt based money system known as fiat money came to an end on May 9, 2014 with the failure of credit. The new debt based money system known as diktat money commenced as peak moral hazard wealth was attained.

The banker regime established the freest of all economies in the history of mankind; beginning in 1999 with the repeal of the Glass Steagall Act and the provision of the Euro; it birthed and established the investor as the centerpiece of economic action; and with the financial recovery of QE1 and the ensuing Global ZIRP, the investor was set totally free to pursue investment choice, according to his risk profile.

Those who risked the most and invested in Pure Small Cap Growth Stocks, RZG, and Small Cap Value Stocks, RZV, such as RYAAY, and who invested in the Euro Yen,EUR/JPY, currency carry trade, such as IRE, TRIB, MNK, IR, COV, and CRH, garnered the greatest reward in the creation of the greatest moral hazard mankind has ever known.

There has been a paradigm shift. Casino Capitalism, also known as money manager capitalism, is over, through, finished and done; the banker regime of democratic nation states is being replaced with the beast regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, as on October 23, 2013, Jesus Christ opened the first seal of the scroll of end time events, seen in Revelation 6:1-2, releasing the Rider on the White Horse, who has the Bow of Economic Sovereignty, to effect global coup d’etat, to replace fiat money with diktat money.

The bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, from 2.48%, and thus pivoted the world from the paradigm of liberalism, meaning freedom from the state, into that of authoritarianism. Diktat money is defined as the mandates of regional fascist leaders ,which establish debt servitude for the purpose of regional security, stability and sustainability.

Liberalism featured the sovereignty of democratic nation states which provided policies of investment choice and schemes of credit, producing seigniorage in equity investments and credit investments.  But now with the failure of credit, seen in China, Russia, Developing Europe, Greece, and the US Small Caps trading lower, and commodities trading lower being the tipping point, authoritarianism is the new normal, and features the sovereignty of regional governance which provides policies of diktat and schemes of debt servitude in regional fascism, where the debt serf is the centerpiece of economic activity, as the investor is going extinct.

The age of credit no more. With the failure of credit, seen in China, YAO, ECNS, CHIX, Russia, RSX, ERUS, Emerging Europe, ESR, Greece, GREK, the US Small Caps, IWM, IWC, Credit Providers, MA, V, DFS, AXP, and Commodities, DBC, trading lower, authoritarianism is the new paradigm, which features the age of debt servitude.

In the age of debt servitude it behooves one to have an elect mindset.

 

3) … In the age of debt servitude it behooves one to have an elect mindset. Arnold King in The Elite vs. The Elect writes Bottum suggests that a better term for progressive intellectuals than “elite” is “elect.” A difference is that an elite must prove its merit. An elect starts from an assumption of superiority and proceeds from there.

Dr. King continues, Do conservatives and libertarians also have an “elect” mindset? By that, I mean a mindset in which you believe that you occupy a moral high ground that others do not. I believe that the three-axes model would say that conservatives and libertarians also have an “elect” mindset. It would say that the progressives think of themselves as the elect that fights for the oppressed against the oppressors, conservatives (including Bottum) think of themselves as the elect that fights to preserve civilization against barbarism, and libertarians think of themselves as the elect that fights for liberty against coercion.

Elaine Meinel Supkis writes Apocalypse, Ja: Neo Nazi Israel Jews Want Jews-Only State And Eviction Of Everyone Else

Libertarian Robert Wenzel posts the Victor J. Ward comment The NBA/Donald Sterling Situation Has Been A Great Reminder Of A Very Valuable Lesson.

I am not a libertarian, I am the Elect of God, a born again Christian along the lines of Witness Lee who has organic union with God, and who endeavors to have the virtue of Christ and the ethics of the New Testament, where virtue is defined as morals, and where ethics is defined as quality and type of relationships.

I do not make any remarks private or public that have racist overtones, as such are not part of my character set!

I ask “is a private conversation that may have racist overtones” indicative of antipathy, ill will, malice, maliciousness? And this inquiring mind asks further “would a libertarian ask Mr. Sterling to be more objective, along the lines of Ayn Rand”? or would a libertarian just keep quiet?

Having the mindset that one is The Elect of God, as presented by the Apostle Paul in 1 Peter 1:1, and in Titus 1:1, enables one to live in holiness, Colossians 3:12, and to commune with God. Blogging With Elaine posts Man eats to sustain his physical life and communes with God to sustain his spiritual life.

 

4) … The new normal in weather is Ice Age Freezing replacing the former Global Warming.

Elaine Meinel Supkis writes White House Warns Of Global Warming While Global Cooling Wins Weather War North AND South Hemispheres.

 

5) … In considering what motivates individuals, one should consider the work of Gary Becker in and libertarians coming to a conclusion.

Stumbling and Mumbling posts Beckerian Economics has given us some useful insightsintocrime, familylife (pdf)  And Benson te writes Gary Becker’s Economic Approach.

Motivation is life orientation and movement, and for most comes out of early childhood education. Either motivation is noble, that is good and altruistic; or motivation is malevolent, that is wicked and selfish. Motivation primarily comes from teachable moments in one’s childhood; and is largely determined by interaction with either a coaching parent and mentor, or a mean spirited parent and life example. Thus  one grows up either on Faith Street or on Mean Street.

However, for a significant minority of individuals, either illustriousness or preeminence comes by happenstance, destiny and design, where one’s character is molded by intervening life event, and is further shaped by capsule-thinking, where living is think-and-link, that is what Capsulscape presents as purposeful and invitation-only gathering of the like minded.

I suggest that for most Libertarians and all of The Lord’s recovery, capsule thinking and think and link living is life’s design, that is a fortuitous experience.

Capsule thinking comes from reading. The illustrious read such things as The Quotable Mises or The Open Hymnal. Yes, one is what one reads.

Capsule thinking and think and link then replace the motivation that comes out of early childhood education to the point where one is branded Christian or Libertarian. One matures in this life identity by meeting with others on the internet, in weekly assembly, or in seminars; that is by practicing Libertarianism or Christianity.

Thus one becomes involved in the movement of Libertarianism or the Living Stream Ministry; and one has economic life experience in Liberty or in  The Way.

Crime and antisocial behavior comes out of repeatedly crossing numerous moral and ethical rubicons.

Criminal and psychopathic behavior patterns become habits in adolescence; and then become the ongoing centerpiece of one’s adult life to the point where some are morally insane and/or criminally insane individuals.

I am in favor of execution of the morally insane and the criminally insane. Free Beacon posts Botched’ Oklahoma Execution Proves It’s Time to Bring Back the Guillotine. The pursuit of a bloodless execution seems to have backfired pretty badly here. And there’s evidence that previous lethal injection cocktails weren’t much better; a rather radical alternative: the guillotine. There are other, less dramatic, ways, of course. Hanging and firing squads would probably be quicker and more painless than lethal injection or the electric chair. But the guillotine really seems to solve everyone’s problems: It was designed to deliver an efficient, quick, and painless death. It performs that task admirably.

Libertarian Benson te posts Quote of the Day: Tenets of Individualism Metaphysically, individualism holds that the person is unique, not a sample of the mass, owing his peculiar composition and his allegiance to his Creator, not his environment. Because of his origin and existence, he is endowed with inalienable rights, which it is the duty of all others to respect, even as it is his duty to respect theirs; among these rights are life, liberty, and property.

 

6) In the news.

Duane and Shelley Muir of Signposts of the Times post April Had a Record Number of Big Earthquakes. It is these that are a sign of the arrival of the end times.

Business Insider posts The 10 Highest Paid Hedge Fund Managers Made $21.5 Billion Last Year. And Deal Book posts Hedge Fund Moguls’ Pay Has the 1% Looking Up. And CNBC Charts The Top 100 Fee-only Wealth Management Firms.

Bloomberg reports China Manufacturing Gauge Signals Risk of Deeper Slowdown

James Pethokoukis posts in AEIdeas 3 Disturbing Charts Showing The Alarming Decline Of US Economic Dynamism

Research Dynamics posts America’s Structural Jobs Depression – Part 1

New entrants into the workforce may have stalled. Mark Thoma asks in CBS News Why Did The Labor Force Shrink So Much in April The main reason for the fall in labor force is a large decline in the number of new entrants rather than an increase in the number of “discouraged workers” (those who want to work but can’t find a job) exiting the labor force. Plus, the decline appears to be concentrated among younger workers who have not yet decided to begin seeking work.

Bloomberg reports GE Offer for Alstom Is Not Acceptable, Hollande Says. And Ambrose Evans Pritchard writes France Invokes National Security Over Alstom.

Marc to Market posts Bank Exposures to Russia. While the US, German, UK, and Swedish banks cut back on exposure to Russia in Q4 2013, French banks did not very much. France’s $50 bln is by far the greatest exposure. Moreover, they note that a good part of France’s exposure is illiquid as it is in the form of Socgen’s ownership stake of Russia’s 9th largest bank Rosbank, worth about $22 bln.

Shaun Richards asks Can Italy Escape From The Economic Problems Posed By Its History And Euro Membership?

Forbes reports Tyson Sinks 10% After Blaming Earnings Miss On Weather, Hog Virus.  And WSJ reports Tyson Profit Surges, But Hog Virus Mutes Guidance.

Antiwar posts Eastern Ukraine Locks Down As Civil War Looms. And posts Eastern Ukraine To Hold Sunday Referendum as Planned.  And posts Ukraine Troops Destroy Police Station In East. Alex Lantier posts in WSWS The US, Kiev Puppet Regime Escalate Ukraine Conflict After Russian Concessions. Western officials stepped up threats against Russia, as the far-right puppet regime in Kiev dismissed Moscow’s attempt to fashion a truce in east Ukraine.

Johannes Stern posts in WSWS German Politicians, Media Support Build-up Of NATO Forces In Eastern Europe. Leading German politicians, the military and media support the massive rearmament of NATO in Eastern Europe announced by top officials of the imperialist alliance.

James Cogan posts in WSWS The US Pivot And The Threat Of War In Asia. With staggering recklessness, US imperialism, supported by Japan and Australia, is pursuing an agenda that threatens to provoke war with China.

Reuters reports Egypt’s Sisi Turns Islam on the Islamists

 

7) … How do you feel about magic? Would you take a trip to the Magic Kingdom or purchase the movie Frozen?

On Tuesday May 6, 2014, Disney, DIS, manifested a dark cloud covering candlestick in its chart suggesting a trade lower. In press release, Disney attributed a surge in earning in part to the home entertainment performance of blockbusters Frozen and Thor: The Dark World.

In review of the Disney song, Let It Go in the movie Frozen, The Tatermeister writes Let It Go, is just a great song, flat out. It teaches us to be ourselves, don’t let society tell you what you can or cannot do. Also, Elsa is my favorite disney character, and I have in lot in common with her. I’m technically sort of a mix of all the Frozen characters, but I like Elsa the best. Elsa in the movie can’t control her powers, in the process she’s scared. I’m scared that I make mistake to much and I mess up, hurting people around me. But this song keeps me going. Elsa teaches me that I can still be myself, I don’t have to change. And the end of the movie she controls her powers anyway, this gives me hope.

And Eric Toribio writes The best thing about this movie is that the characters are really human. They’re animated, but showcase the right amount of emotion and fluidity to feel like you’re watching live action.

And Niles Wyatt writes I have one complaint: how is it that Elsa goes from having no control of her powers to having pretty much full on control?! I mean first she has no control of what she does with the ice, yet in this it’s as if she’s totally mastered them. Has anyone else noticed that?

And Mugglesam post GMA’s Frozen “Let it Go” Epic Live Sing-A-Long — 8 and 10 Year Olds.

 

8) .. Enter Humanity 2.0: the new genetic breed; their prophesied date of return has arrived.   

The Nephilim were on the earth in Noah’s days and also afterward, when the sons of God went to the daughters of humans and had children by them. They were the heroes of old, men of renown.

Ever wonder why the Nephilim get such a bad rap these days when even the bible says, “They were the heroes of old, men of renown. They sure don’t sound like bad guys?

Genesis 6:1-6 provides the account where alien creatures intruded themselves into the human reproductive process. The Nephilim were the genetic offspring of fallen angels who were of devious mindset to preempt the creation of life by God in the womb. They were helpful idiots, as they assisted in building the ark, doing such things as cutting wood, transporting timber, installing roofing materials.

Creation posts The Return Of The Nephilim, and DailyBG posts Prophetic Investigator Thom Horn Presents An Astonishing Prophetic Discovery To Steve Quayle. Exactly 4,900 years have come from the The Flood to 2008, that is, the prophesied date for the Return of the Nephilim.

Today’s central bank leaders are modern day Nephilim, that is giants amongst us, who rebuilt the economy after the GFC, which came out the former credit swell as Doug Noland posts Mortgage Credit growth averaged about $270 billion annually during the decade of the nineties (no slouch period for Credit growth!). Total Mortgage debt began growing at double-digit rates in 2002 as the Fed aggressively reflated (post-“tech” Bubble). Surging annual mortgage debt growth surpassed $1.0 Trillion for the first time in 2003. It then inflated to $1.27 Trillion in 2004 and hit an all-time record $1.45 Trillion in 2005.

Trust in their Liberal schemes of Quantitative Easing has produced great gains for the speculative leveraged investment community, and has produced a fantastic moral risk induced prosperity supporting a huge amount of disposable wealth existing in savings accounts as evidenced by the awesome rise in thechart of M2 Money (adjusted monthly) to 11,158.7.

Beginning with the Liberal scheme of QE1, where money good US Treasuries were traded out for the most toxic of debt, such as that traded in Fidelity Mutual Fund, FAGIX, and the ongoing process of Global ZIRP, banks were regenerated to become the financial engine of economic endeavors. The genius of the Greenspan Put, was that there was no capital investment in banks rather; rather banks were reestablished and now exist one with the state through the awesome rise in Excess Reserves.

Up until October 23, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose from 2.48%, the debt-to-equity ratio did not affect the cost of capital, and therefore hasn’t affected banks’ willingness to extend credit.

With the failure of trust in the world central banks’ monetary authority to stimulate investment gains, the bond vigilantes are exercising ever greater control over the Benchmark Interest Rate, and this has started derisking out of debt trades and delveraging out of currency carry trades, pivoting the world out of the age of credit and into the age of debt servitude, with the result that the investor is no longer the centerpiece of economic activity, but rather the debt serf is the lynchpin of all things economic.

Out of soon coming Financial Armageddon, that is a global credit bust and financial system breakdown, people will come to trust in a cadre of regional fascist leaders to establish regional security, stability, and security.

Christina posts Christ Communicated That Immediately Before His Return, Nephilim Would Once Again Appear. Now even Greater Nephilim are on the way, as scientist are creating the New Human, via genetic engineering, once again interfering with the right of God alone to create life.

CNET postsScientists Create Alien Life Form With Artificial Genetic Code. Scientists made a substantial breakthrough in understanding how to alter the fundamental nature of life, and they did so by creating for the first time a partially artificial life form that passes along lab-engineered DNA. Throughout the entire history of life on Earth, the genetic code of all organisms has been uniform, from the simplest of bacteria all the way up to human beings, meaning our genetic code is composed of the same four nucleotides labeled A, C, T, and G. Those nucleotides join to form base pairs, which are used in the creation of genes that cells use to produce proteins. Researchers at Scripps created two new nucleotides, X and Y, and fused them into the E. coli bacterium. The organism was able to reproduce normally with six, instead of the standard four, nucleotides, meaning it genetically passed along the first combination of manmade and natural DNA.

NYT posts Scientists Add Letters To DNA’s Alphabet, Raising Hope And Fear. Scientists reported Wednesday that they had taken a significant step toward altering the fundamental alphabet of life creating an organism with an expanded artificial genetic code in its DNA. The accomplishment might eventually lead to organisms that can make medicines or industrial products that cells with only the natural genetic code cannot.

Jesus foretold that countless many would have no idea of end time events which portend yet another global cataclysm. “As it was in the days of Noah, so it will be at the coming of the Son of Man.  For in the days before the flood, people were eating and drinking, marrying and giving in marriage, up to the day Noah entered the ark; and they knew nothing about what would happen until the flood came and took them all away. That is how it will be at the coming of the Son of Man”.

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