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Financial Market Report for the week ending May 16, 2014
I) What is the meaning of credit? Who and what is worthy of trust?
Another word for credit is trust. World Stocks, VT, Nation Invesment, EFA, Small Cap Nation Investment, SCZ, Emerging Markets, EEM, Dividends Excluding Financials, DTN, topped out and turned lower value, communicating that investors no longer trust in the monetary policies of investment choice and schemes of credit of the world central bankers to produce ongoing investment gains and global growth.
The see saw destruction of fiat wealth, that is equity investments and credit investments, has commenced on the failure of credit.
The ongoing destructionism coming through competitive currency devaluation by the currency traders, acting on the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher from the range of 2.49% to 2.54%, can be followed with this Finviz Screener of 50 Common ETFs.
Out of soon coming economic chaos, people will come to trust in new monetary and economic policies of regional economic governance and schemes of debt servitude to establish regional security, stability, and sustainability.
2) In this week’s financial market trading.
A) On Monday May 12, 2014, World Stocks, VT, Nation Investment, EFA, traded to new highs, on India Presidential election results, and on China reforms to relax limits in listed companies.
Bloomberg reports India Exit Polls Signal Modi Bloc Winning Majority In Election. India’s main opposition bloc led by Narendra Modi is poised to win a majority in a national election, most exit polls signaled, boosting his chances of taking power in the world’s second-most populous country
Bloomberg reports China Stocks Rise Most in Seven Weeks On Market Access Measures. Chinese stocks rose as Council said it will deepen reforms of the nation’s capital markets including relaxing limits on foreign investment in listed companies; and as oversold sectors such as the Small Cap Industrials, PSCI, Biotechnology, IBB, Nasdaq Internet, PNQI, Internet Retail, FDN, and Retail, XRT, had a relief rally from being oversold. And Benson te posts China’s Central Bank: Solve Debt Problem with Even More Debt.
World Stocks, VT, traded to a new rally high, manifesting a blow off market top as the Defensive Sectors, Consumer Staples, KXI, such as REV, ADM, K, BUD, PEP, Insurance, KIE, such as AIG, GNW, PUK, AWH, ACE, Global Utilities, DBU, such as EDN, ELP, EOC, HNP, CPL, Global Real Estate, DRW, traded to a new rally highs.
Global Industrial Producers, FXR, such as CAT, ETN, ITW, GE, MMM, DOW, LYB, PPG, DOV, HON, GWW, traded to its previous rally high. Small Cap Industrials, PSCI, such as BEAV, IEX, CFX, AME, were the relief rallying sector of the day.
Aerospace and Defense PPA, such as GD, UTX, BA, LMT, RTN, Semiconductors, SOXX, such as NXPI, RFMD, MU, QCOM, TSM, STM, PLAB, TXN, AVGO, Copper Miners, COPX, such as SCCO, Global Industrial Miners, PICK, such as BHP, Metal Manufacturing, XME, such as AA, PCP, RS, CSTM, STLD, CMC, GPC, Paper Producers and Timber Producers, WOOD, such as MWV, IP, WY, Pharmaceuticals, PJP, such as JNJ, MRK, Medical Devices, IHI, such as COV, Energy Producers, XOP, such as COP, Software, IGV, such as MSFT, ADP, Consumer Discretionary, WYNN, Automobiles, CARZ, such as F, ALV, GPC, Shipping, SEA, such as CMRE, Telecom Services, IST, such as A, TI, NTT, TEF, Water Utilities, FIW, such as AWK, Retailers, XRT, such as JWN, Automobile Dealerships, PAG, SAH, KAR, AN, KMX, ABG, LAD, Computer Systems, HPQ, Drug Stores, RAD, WAG, CVS, Tobacco Companies, RAI, LO, Communications Equipment, AAPL, Business Services, ADP, DLX, CTAS, and Grocery Stores, KR, DEG, traded higher on an oversold relief rally.
Nation Investment, EFA and the Emerging Markets, EEM, traded to a new rally highs, as the Indian Rupe, ICN, traded higher, taking India, INP, and SCIN, to new rally highs. Norway, NORW, Denmark, EDEN, The UK, EWW, Switzerland, EWL, South Korea, EWY, Finland, EFNL, Peru, EPU, Chile, ECH, Brazil, EWZ, Indonesia, IDX, Turkey, TUR, Emerging Africa, GAF, and the Philippines, EPHE, traded to new rally highs. China, YAO, CHIX, CHII, CQQQ, ECNS, TAO, rallied strongly. However, Greece, GREK, plummeted yet lower in value.
Dividends Excluding Financials, DTN, traded higher to a new rally high, as China Real Estate, TAO, traded higher, taking US Small Cap Real Estate, ROOF, such as Retail REITs, such as GGP, Hotel REITS, such as CHSP, and Industrial Office REITS, such as STWD, to new rally highs.
Global Financials, IXG, traded higher, but still resides below its April high, as Life Insurance Company, GNW, Stockbrokers, IAI, and Regional Banks, KRE, such as HBAN, traded higher, taking the Pure Small Cap Revenue Stocks, RZV, and the Small Cap Pure Growth Stocks, RZG, higher. Chinese Financials, CHIX, traded higher. India Earnings, EPI, and Brazil Financials, BRAF, traded higher, taking Emerging Market Financials, EMFN, to a new rally high.
Major World Currencies, DBV, Emerging Market Currencies, CEW, and the US Dollar, $USD, UUP, traded unchanged, while currency traders strongly sold the Yen, FXY, and bought the Indian Rupe, ICN, on expectations that India’s main opposition Bharatiya Janata Party would win the elections,
Both Equity Investments, and Credit Investments, will be trading forever lower, on the destruction of fiat money, defined as Aggregate Credit, AGG, together with Major World Currencies, DBV, and Emerging Market Currencies, CEW.
As is seen in Revelation 6:1-2, Jesus Christ, on October 23, 2013, partially opened, on then again on May 12, 2014, fully opened, the First Seal of the Scroll of End Time Events, thereby releasing the Rider on the White Horse, who has the Bow of Economic Sovereignty, that is the Bow Without Any Arrows, to effect coup d etats world wide, to transfer sovereignty from democratic nation states to fascist regional leaders and bodies, thus destroying the monetary authority of the world central banks, and establishing the economic authority of regional governance in the world’s ten regions, and totalitarian collectivism in mankind’s seven institutions, as is seen in Revelation 13:1-4.
Robert Reich is totally disconnected from economic reality in suggesting How To Shrink Inequality, as in the age of the failure of credit, inequality will become greater, as more, and more people are pushed to the bottom of the economic pyramid. There are three chances of Robert Reich’s proposed reforms taking place: slim, none, and no way.
Elaine Meinel Supkis posts National Socialism Is Rising Rapidly As Long Depression Gets Worse Worldwide. The world is hurtling towards another world war. If we examine the previous two world wars, we can see a definite pattern: these always are followed, by a decade, a long depression. And they feature greater powers of central bankers and a widening gap between workers and oligarchs. Generally speaking, there is a quest to replenish government coffers not by taxation but by imperialist exploitation and clashes over distant exploitable territories become very violent very quickly.
Meanwhile, racist/religionist national socialism rises rapidly as dominant populations seek to maintain their grip on social services via cutting off services to minorities and others.
The US is celebrating the fact that oligarchs who support neonaziism are crushing citizens who protest their coup in the Ukraine. Billionaire Rinat Akhmetov Could Turn Tide In Ukraine as the oligarchs, exactly like Hitler’s relation with German oligarchs or Ford using military troops to put down a worker’s strike, or the suppression of mining unions, hiring mercenaries to kill and terrorize whole cities is heralded as a bright, happy future for us all!
A king among men here, his empire of steel plants, factories and coal mines spreads across Donbas, as many Ukrainians refer to their nation’s industrial heartland. Akhmetov is its largest private employer and is known as the “shadow governor” for his links to local and regional politicians. His businesses also maintain their own private, well-trained security force of more than 3,000, including former elite Ukrainian commandos.
There is all sorts of speculation that he is working with Putin and Kiev to suppress the uprising because it threatens Russian as well as Ukraine oligarchs. The fact is, he has a private army that is laying down the law and this isn’t ‘democracy’ at all. The oligarchs in Egypt, for example, were so annoyed with Morsi’s big win, they deliberately smashed the economy briefly by withdrawing from it in order to turn public opinion in the direction of a coup.
This is a secondary coup in Ukraine and looks an awful lot like other depression-era coups. Nothing to celebrate and it is also quite brutal. Ukraine Crisis: A City In Shock, But Who Is In Control Of Mariupol?
The bear market of all times commenced in April 2014, when the Credit Sensitive US Small Caps, IWM, IWC, the Chinese Stocks, YAO, CHIX, CHII, CQQQ, TAO, ECNS, Developing Europe, ESR, and Greece, GREK, as well as Japan, EWJ, JSC, traded lower, on the beginning of the exhaustion of the world central bank’s monetary authority.
Monday May 12, 2014, was a good day to go short, as in a bear market one sells into pips just as in a bull market one buys into dips. Currency Carry Trade Investments such as Peru’s Bank, BAP, and Other Currency Carry Trade Investments; these include EEFT, DOX, ERIC, ALU, NOK, ASML, NXPI, STM, SAP, SI, LYB, well as Debt Trade Investments, such as United Rentals, URI.
One could use these risk off Bear Market ETFs, as a basis of collateral for short selling in a brokerage account: STPP, XVZ, EUO, YCS, CMD, DNO, MLPS, OFF, SBB, SBM, EFZ, YXI, SZK, SDP, REK, DDG, MYY, EUM, SAGG, DTYS, JGBS, GLD, GYEN, GEUR, GGBP, HDGI, HDGE.
Look for the Proshares 200% Inverse Market ETFS, such as BZQ, SQQQ, EEV, SSG, SKF, EPV, SCC, RXD, DUG, to alternate in trading higher with TTT. And likewise look for the Direxion 300% Inverse Market ETFS, such as ERY, FAZ, SOXS, EDZ, GASX, DPK, EURZ, DRV, BRZS, to alternate in trading higher with TMV.
B) On Tuesday May 13, 2014, World Stocks, VT, and Nation Investment, EFA, traded to a new rally high, and the S&P 500, SPY, manifested a blow off market top, as the Yen, FXY, traded lower again, bouncing Japan, EWJ, JSC, higher.
World Stocks, VT, and Nation Investment, EFA, traded to new rally highs. Currency traders strongly sold the Euro, FXE, which turned Italy, EWI, lower. Greece, GREK, traded lower once again, as the National Bank of Greece, NBG, traded lower. This as Reuters reports Fitch Affirms Five Large Italian Banks. Fitch Ratings has affirmed the Long-term Issuer Default Ratings (IDRs) of Banca Monte dei Paschi di Siena (MPS), Banca Nazionale del Lavoro (BNL), Intesa Sanpaolo (IntesaSP), UBI Banca (UBI) and UniCredit. The Outlooks on BNL’s and IntesaSP’s Long-term IDRs have been revised to Stable from Negative.
South Africa, EZA, South Korea, EWY, Sweden, EWD, Gulf States, MES, and Canada, EWC, traded to new market highs. India, INP, SCIN, Mexico, EWW, Chile, ECH, Turkey, TUR, Emerging Africa, GAF, and Egypt, EGPT, traded to a new rally highs, taking the Emerging Markets, EEM, to new rally highs.
Likewise Closed End Funds, CGE, traded to a new rally high, manifesting a blow off market top.
Global Financials, IXG, traded higher, but reside below their April 2014 highs Regional Banks, KRE, traded lower, leading Small Cap Pure Value, RZV, such as the Automobile Dealerships, PAG, SAH, ABG, KAR, AN, KMX, LAD, and Small Cap Pure Growth, RZG, lower.
Eddy Elfenbein posts WSJ DTV/AT&T Could Happen in Two Weeks TheWSJ reported that AT&T (T) and DirecTV (DTV) are close to a deal that would value DTV at nearly $50 billion. The stock spiked to $91 per share in the after-hours market, though it’s come back down in today’s trading. It’s currently at $87 per share. According to the article, a deal could happen within two weeks. They also say that the deal would involve cash and stock. I’m assuming that any deal would value DTV somewhere in the mid-$90’s. It’s easier for a company to pay for a company with stock rather than cash, so it’s like printing your own currency. There’s a drawback with for higher-yielding stocks, which AT&T certainly is. The more shares mean more dividend checks. AT&T currently yields 5%.
The Fed, and its associates, the ECB, the Bank of Japan, and the PROC be dead. The Creature from Jekyll Island was literally slain by the Bond Vigilantes on Tuesday May 12, 2014, as they called the Interest Rate on the US Ten Year Note , ^TNX, higher to 2.62%, forcing investors out of investment in Italy, EWI, and its Euro Yen carry trade E, and its debt trade TI.
Its reasonable to expect strong deleveraging out of EUR/JPY Carry Trades to follow those of today Tuesday, May 13, 2014, which included Italy’s TI, E, and Netherlands’ ASMI, CSTM, INXN, and Luxembourg’s TS, seen in their combined Yahoo Finance Chart together with the EURJPY, which Adam Button shows in Forex Live chart article EURJPY Closes At The Middle Of A Broadening Top Pattern At 140.00.
On Tuesday May 13, 2014, The Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB, all started to die as a currency. Currency traders sold the Euro, FXE, to close lower at 135.28.
This as FT reports Germany’s Economy Powers Ahead As France And Italy Fall Behind
Out of soon coming credit system breakdown and worldwide financial collapse, centered out of Club Med waves of corporate, banking and sovereign insolvency, a new monster, the Beast Regime, will make landfall in the Eurozone, and eventually rise to rule in regional economic governance in all of the world’s ten regions, and occupy in totalitarian collectivism in every one of mankind’s seven institutions. As presented in Revelation 13:1-4, it 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.
On Tuesday, May 13, 2014, the see saw destruction of fiat wealth commenced in the Eurozone on the failure of credit. specifically the failure of trust in the world central banks to continue to stimulate investment gains as well as global growth.
With the trade lower in Italy, EWI, the world has passed through an inflection point: the world has pivoted from the age of credit into the age of debt servitude.
As investors derisk out of debt trades, such as Water Resources, PHO, and Leverage Buyouts, PSP, and Rental Properties, BX, Japanese Credit, IX, and deleverage out of currency carry trades, such as European Small Cap Dividends, DFE, on fears that the world central banks’ monetary policies have made “money good” investments bad, debt deflation, that is currency deflation will commence, taking Major World Currencies, DBV, and Emerging Market Currencies, CEW, lower from their May 9. 2014 highs.
There is no invested-long currency trading strategy, such as Forex, FORX, that can work, as all fiat money will be destroyed by debt deflation at the hands of the bond vigilantes.
C) On Wednesday May 14, 2014,There was a stock market reversal as World Stocks, VT, Nation Investment, EFA, and Dividends Excluding Financials, DTN, traded lower from their market highs, evidencing the failure of credit, that is trust in the world central banks’ monetary authority to simulate investment gains and global growth, even though a number of individual countries traded to new rally highs.
Nation Investment Weathervane Countries, South Africa, EZA, Switzerland, EWL, Australia, EWA, Gulf States, MES, Norway, NORW, Sweden, EWD, Egypt, EGPT, Emerging Africa, GAF, New Zealand, ENZL, Denmark, EDEN, Argentina, ARGT, and Asia Excluding Japan, EPP, traded to new market highs. The Emerging Markets, EEM, the Emerging Market Financials, EMFN, and Emerging Market Financials, EMIF, traded to new rally highs as China, YAO, TAO, CHIX, led Indonesia, IDX, Singapore, EWS, South Korea, EWY, Philippines, EPHE, and Malaysia, EWM, to new rally highs. Brazil, EWZ, traded to a new rally high. And as Emerging Market Bonds, EMB, Emerging Market Local Currency Bonds, EMLC, and Emerging Market Currency Bonds, EMCD, traded to rally highs.
In Yield Bearing Stocks, Global Real Estate, DRW, and Gulf Dividends, GULF, traded to a new rally highs; Shipping, SEA, traded up near its previous rally high; while Water Resources, PHO, traded lower.
Eight factors evidence the failure of credit; these include the trade lower in the following:
- The Russell 2000, IWM, IWC, traded lower as the credit sensitive Small Cap Pure Value Stocks, RZV, the Small Cap Pure Growth Stocks, RZG, the Small Cap Industrials, PSCI, the Small Cap Consumer Staples, PSCC, the Consumer Recreational Goods, POOL, THO, WGO, PII, ESCA, traded lower, on the traded lower in Regional Banks, KRE.
- Eurozone Nations, EZU, Portugal, PGAL, Ireland, EIRL, Austria, EWO, and Italy, EWI, traded lower. Ireland’s Bank, IRE, and the National Bank of Greece, NBG, traded lower; these are shown the way is lower in the European Financials, EUFN.
- European Credit, EU, traded lower.
- Credit Services, AXP, NNI,V, PRAA, DFS, FCFS, AGM, SLM, CACC, ECPG, CIT, MA, HEES, URI, traded lower
- Homebuilders, XHB, and ITB, traded lower; and US Infrastructure, PKB, such as MWA, FTK, WSO, FLT, MMM, AAON, and PRIM; and Building Materials, and Manufactured Housing, CVCO, traded lower.
- Life Insurance Companies, such as PUK, SYA, GNW, traded lower.
- Industrial Textile Manufacturers, DXYN, UFI, AIN, MHK, traded lower.
- Leasing Companies, HEES, URI, CAR, HTZ, UHAL, GMT, TGH, AER, traded lower.
Volatility, ^VIX, XVZ, traded higher, as the chart of the S&P 500, SPY, shows a trade lower from its blow off market high, as Aerospace, PPA, such as LMT, Semiconductors, SOXX, such as MU, Retail, XRT, such as DDS, JWN, Consumer Services, IYC, such as, DIS, Global Industrial Producers, FXR, such as WHR, FLS, HON, GE, Design Build Companies, FLM, such as Fluor, FLR, and Transports, XTN, such as UNP, DAL, SWFT, traded lower.
Credit Bubble Stocks posts From the Molycorp Earnings Call. A look at its Finviz chart, MCP, communicates that it would have been wise to establish a short in this stock sometime in the first quarter of 2014, as it lost 36% in the last week. Rare earth prices have tumbled. It’s only a matter of time before the UK, Europe and the US are involved in a war with the developing China Russia access where Rare Earth Minerals are produced. And then, where will the Western powers get the basic materials used in military weapons production? Probably not from this company.
Reuters posts Eurozone Industrial Output Unexpectedly Falls In March As Energy Production Slumps. This inquiring mind asks, where will Europe get the energy it needs to run its economy?
Oil, USO, as well as Copper, JJC, led Base Metals, DBB, higher, taking Commodities, DBC, higher, which took Copper Miners, COPX, and Global Industrial Miners, PICK, to new rally highs
The Yen, FXY, traded higher, causing the chart of the EURJPY currency carry trade pair, to fall lower through the middle of a broadening top pattern, which hit Ireland, EIRL, Ireland’s Bank, IRE, Cement Producer, JHX, Italy’s Telecom, TI, Energy Producer, E, Netherlands, Telecom, VIP, Energy Producer, RDS-B, and Metal Manufacturer, CSTM, and Internet Provider, INXN.
The Interest Rate on the US Ten Year Note, ^TNX, slipped from 2.62% to 2.54%, as investors traded out of equity investments and into credit investments, with the result that Credit Investments, ZROZ, EDV, LTPZ, TLT, SHY, BABS, MBB, PZA, MUB, LQD, LWC, EMCD, EMLC, EMB, traded to new rally highs, taking Aggregate Credit, AGG, to a new rally as well as an all time rally high.
The bond vigilantes in calling the Benchmark Interest Rate, ^TNX, higher from 2.49% on October 23, 2013, has been terrifically destabilizing to the Retail Industry, XRT, and its dividend paying leaders Walmart, WMT, and Nordstrom, JWN, as is seen in their combined Yahoo Finance Chart.
D) On Thursday, May 15, 2014, at market open, the Interest Rate on the US Ten Year Note, ^TNX, traded sharply lower to 2.50%, as the bond vigilantes anticipated huge flows out of Equity Investments and into Credit Investments, as is seen by Aggregate Credit, AGG, blasting to a new all time high, while Junk Bonds, JNK, traded lower. The Steepner ETF, STPP, plummeted, reflecting a flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as investors flocked to “so called” safety in US Ten Year Notes, TLT.
World Stocks, VT, traded sharply lower as investors sold Solar Energy, TAN, Nasdaq Internet, PNQI, Media, PBS, Biotechnology, IBB, Energy Production, XOP, Energy Service, OIH, Small Cap Industrials, PSCI, Global Industrial Producers, FXR, Retail, XRT, Internet Retail, FDN, Resorts and Casinos, BJK, Aerospace and Defense, PPA, Design Build, FLM, Transports, XTN, and Small Cap Pure Growth, RZG.
Nation Investment, EFA, and Small Cap Nation Investment, SCZ, traded sharply lower, as Greece, GREK, Ireland, EIRL, Italy, EWI, Portugal, PGAL, Spain, EWP, Finland, EFNL, Austria, EWO, France, EWQ, European Small Cap Dividend, DFE, as well as UK Small Caps, EWUS, traded lower.
Global Financials, IXG, traded sharply loweras Regional Banks, KRE, led by HBAN, FITB, and RF, European Financials, EUFN, led by the National Bank of Greece, NBG, Ireland Bank, IRE, and Spain’s Bank, SAN, and the Too Big To Fail Banks, RWW, led by Bank of New York Mellon, BK, Citigroup, C, and Bank of America, BAC, traded lower.
Base Metals, DBB, traded strongly lower.
Yield Bearing Investments trading lower included Leveraged Buyouts, PSP, Smart Grid, GRID, and Water Resources, PHO.
Dividends Excluding Financials, DTN, traded lower.
The death of currencies, and also the failure of credit, that is failure of trust in the monetary policies of the world central banks to continue to provide investment gains and global economic growth on May 13, 2014, comes from the Rider on the White Horse seen in Revelation 6:2, being given a crown, that is the authority to rule over the nations, with the Bow of Economic Sovereignty, calling Interest Rates higher from 2.49%, and is exemplified in the trade lower in Ireland, EIRL, Italy, EWI, Greece, GREK, and the European Financials, EUFN, coming from the strong trade lower in the Euro, FXE, and has commenced destructionism, replacing the former inflationism, as the dynamic of economic activity.
Through the First Horseman’s endeavors, a One Euro Government, that is a fiscal, banking, and totally fascist economic union, will emerge in the Eurozone; it will be the model for policies of regional governance, and schemes of totalitarian collectivism in all of the world’s ten regions.
Largely through the work on the soon to be revealed Sovereign, seen in Revelation 13:5-10, and his economic high priest, the Seignior, seen in Revelation 13:11-18, the EU’s power will become so great, that it will be the preeminent world power.
Investors deleveraged out of Currency Carry Trades, in Argentina’s EDN, YPF, TEO, EBR, TGS, PAM, in Norway’s STO, in Brazil’s EBR, TSU, CPL, in Philippines’ PHI, in Chile’s SQM, in Columbia’s CIB, in Turkey’s TKC, and in South Africa’s SSL.
Investors sold out of US Refiners, VLO, MPC, PSX, HFC, on the trade lower in the Euro, FXE.
Investors derisked out of Debt Trades, Leveraged Buyouts, PSP, Japanese Credit, IX, and Rental Properties, BX, Management Services, TOWR, BAH, Rental and Leasing, URI, Industrial Office REITS, FNIO, such as CUBE, STWD, DCT, EGP, EXR, HAS , PSA, SIR, BXP.
May 13, 2014, was a pivot point in mankind’s economic history. Major World Currencies, DBV, such as the Euro, FXE, are now trading lower; this means a soon coming crush of investment in Global Growth, DNL.
There are no investable markets anymore. Ireland, EIRL, was the crown jewel of debt trade investing and currency carry trade investing, in the age of credit and the age of currencies. Now with Ireland’s Bank, IRE, and its companies, JHX, IR, CRH, RYAAY, XL, ACN, trading lower. Ireland, Italy and Greece are the age of debt servitude loss leaders.
The death currencies, that is the wheels of economic activity, means the dissolution of traditional governance, this being clearly seen in Revelation 6:2, where the Rider on The White Horse is given “Stephanos” or “Victor’s Crown,” as a reward for his victories which are prolonged and bloodless.
A global economic crash is coming as investors derisk out of debt trades and deleverage out of currency carry trades. Fiat money will be replaced by diktat money, that is the mandates of regional fascist leaders for regional security, stability, and sustainability.
Democratic governance will be replaced by regional fascismas foretold in bible prophecy of Daniel 2:20-45, and in Revelation 13:1-4.
E) On Friday, May 16, 2014
World Stocks, VT, traded unchanged. Sectors trading lower included Solar Energy, TAN, China Technology, CQQQ, Energy Production, XOP, Steel, SLX, and Global Industrial Miners, PICK.
Nation Investment, EFA, traded unchanged as India, INP, India Small Caps, SCIN, and its banks, IDB, HDB, traded vertically higher, as currency traders called the India Rupe, ICN, higher, taking Emerging Market Currencies, CEW, Emerging Markets, EEM, Emerging Market Infrastructure, EMIF, and Emerging Market Corporate Bonds, EMCD, Emerging Market Bonds, EMB, and Emerging Local Currency Bonds, EMLC, to new rally highs. Tremendous short selling opportunities manifested in India’s Bank, HDB, IBN, and Industrials, TTM, SSLT.
Keith Jones of WSWS posts BJP Sweeps To Power In India. India’s BJP regime will be a government of extreme crisis, tasked with implementing socially incendiary “pro-market” reforms in the face of popular opposition. Antiwar posts Ultranationalists Win India Vote, Modi Swept Into Power. The BJP has won praise for its economic and anti-corruption policies, but has pushed draconian “anti-terror” laws in the past, and Modi’s own policy seems particularly extreme, even by his party’s standards, toward India’s Muslim minority. And WSWS posts India’s watershed election. The BJP’s victory and the collapse of the Congress and Stalinist parties reflect a realignment of Indian politics presaging a vast intensification of the class struggle
Small Cap Nation Investment, SCZ, traded lower as Greece, GREK, the UK Small Caps, EWUS, traded lower, on this weeks lower Euro, FXE, and lower British Pound Sterling, FXB.
Global Financial Institutions, IXG, traded unchanged
Dividends Excluding Financials, DTN, traded unchanged.
Aggregate Credit, AGG, traded slightly lower from its market rally high as 30 Year Government Bonds, EDV, 10 Year US Government Notes, TLT, and Junk Bonds, JNK, traded higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher to close the week at 2.52%.
One being a long-end treasury bull this year, has been most rewarding, as a bear market commenced in the growth stocks. This being see in the ratio of the 30 Year US Government Bonds, EDV, relative to the Ten Year US Treasury Notes, TLT, that is EDV:TLT, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, has flattened, which is seen in the Steepner, ETF, STPP, flattening. Now, this is very much overbought strategy, as the flight to safe haven investment from the riskiest of risk assets, SOCL, PNQI, FDN, IBB, PBS, ITB, IAI, IGV, RZG, and into the highest yielding of US Government Debt, EDV, is over, as is seen in their ongoing Yahoo Finance Chart. Yield curve risk is going to rebound very soon, causing the Steepner, ETF, STPP, to steepen; yield scarcity is going to end very soon.
Credit Bubble Stocks reports Conrad Industries Announces First Quarter 2014 Results. Inasmuch as the age of buy and hold investing is over, through, finished and done, the high flying over the counter stock, CNRD, is a Small Cap Pure Growth Company, RZG, that should be sold short.
One should be invested in a non-dollar wealth preservation strategy. Spot Gold,$GOLD, closed at $1,298; 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 Global Utilities, DBU, Utilities, PUI, XLU, Energy, XOP, IPW, Consumer Staples, KXI, Transports, XTN, Insurance companies, KIE, Real Estate, IYR, Global Real Estate, DRW, and into Gold, GLD.
Sprout posts Governments Will Loot Pensions, Savings – Hold Onto Your Gold. In God We Trusts aks Are The London Gold Vaults Running Empty? Ron Paul relates in Kitco News Gold Eins Out In The End.
Jack Chan posting in Safehaven This Week In Gold, presents the chart of the Gold ETF, in a consolidation triangle from which it will either pop higher or fall lower. His chart of the Gold Miners, GDX, shows a significant breakdown; these have disconnected from the price of gold and have utterly failed to leverage higher over gold.
In the age of the failure of credit, wealth is preserved only by the safe storage and physical possession of gold bullion.
II) An inquiring mind asks, did economics fail?
I am a Dispensationalist, meaning that I believe that Jesus Christ is in charge of economics, more specifically He is in stewardship of all things under heaven and upon earth in every epoch, and tasked with bringing them to maturity and completion, much like a ship’s captain completes the manifest before setting sail.
Hence in no sense, did economics fail.
Christ developed the age of billionaires as Julie Hyland writes in WSWS Britain has more Than 100 billionaires, Says Sunday Times Rich List. The Times figures show that the UK now has one billionaire for every 600,000, the highest concentration in the G8. And Andre Damon of WSWS posts The Wall Street Bonanza. The vast redistribution of wealth from the bottom to the top that has taken place since the 2008 crash is expressed in the colossal rise in stock prices, which have nearly tripled since March 2009.
And Christ developed the age of credit with Paulson’s Gift, also known as Bernanke’s QE1, where the Fed Chairman regenerated trust in the banking system and its ability to stimulate economic growth via trading out “money good” US Treasures, EDV, TLT, for the most toxic of all debt, that being Distressed Investments, such as those traded in Fidelity Mutual Funds, FAGIX, mutual fund.
Buy and hold investor Eddy Elfenbein posts The S&P 500 And Its Earnings. Wall Street currently expects earnings of $120 for the S&P 500 this year, and $137 for 2015. If the index trades at 16 times next year’s earnings by the end of next year, then the S&P 500 would be at 2,200. That’s a gain of 17.5% over the next 19.5 months.
Peak credit experience in fiat money came Tuesday May 13, 2014, with the Dogs of Debt Mutual Fund, FAGIX, yielding 4.5%, topping out in value. Its terrific rise documents that the Banker Regime skill in ruling in a debt based money system.
Look for Popular Notes And Bonds, SHY, EU, TLT, ZROZ, FLOT, LQD, LWC, PICB, BWX, MBB; and look for High Yielding Debt, JNK, LWC, EU, EMB, HYD, EMLC, EMCD, BABS, HYXU, PZA, to begin to fall first and hardest.
There were two significant deaths the week ending May 16,2014. The first death was that of Milton Friedman’s age of floating currencies, on the trade lower in the Euro, FXE, the Swiss Franc, FXC, and the British Pound Sterling, FXB, and the second death was that of Ben Bernanke’s age of credit.
Having created the perfect moral hazard peak wealth on Tuesday May 13, 2014, with the S&P 500, SPY, manifesting a blow off market top, Jesus Christ has closed the chapter on the book of economic life, which reads the age of gilded wealth, and has set sail on a new mission, that is the destruction of all fiat money and fiat wealth. He will in relatively short time accomplish his purpose of establishing absolute poverty, with the activity of the Beast Regime, replacing the activity of the Creature from Jekyll Island, as foretold in Daniel 7:7. Tuesday May 13, 2014, was a pivotal day in the economy of God, as His Son, pivoted the world out of the dispensation of credit driven prosperity, and into the dispensation of debt servitude driven austerity.
The Free Market is gone forever. Disinvestment out debt trades and currency carry trades will cause the much feared economic deflation, and will quite soon cause Financial Armageddon, that is a global credit bust and worldwide financial system breakdown, foretold in 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 the entire world, in policies of diktat and schemes of totalitarian collectivism, as leaders meet in summits to renounce national sovereignty, and announce regional pooled 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, where their diktat serves as the new money replacing fiat money.
UK Conservative MP John Redwood posts Let People Express Their Identity. One of the worst features of the EU is the way it wants to suppress people’s natural senses of identity. England is the country they do not allow on a map. At the very least the Ukrainian government should talk to the rebels. Sending in the army and trying to remove them by force is not the right answer, and will intensify the civil war in the making. It will increase the bitterness on both sides. The Ukrainian regime needs to discuss whether a much greater degree of autonomy within the Ukraine would satisfy enough easterners. Are there guarantees that the Ukrainian government can offer on Russian language and customs that would be credible? If it is not possible to find a way of jointly governing in the Ukrainian state, then the Ukrainian government needs to offer a legal and properly organised referendum with sensible propositions on the ballot paper that could attract consent. The EU that has played an important part in fomenting regional identities which may now affect not just the individual member states but also EU policy itself.
Clearly bible prophecy of Revelation 13:1-4, and Daniel 2:25-45, where regional economic governance replaces democratic nation states, is being fulfilled, as the singular dynamo of regionalism is powering up economic activity, as the dynamos of creditism, corporatism and globalism are winding down on the failure of trust in the monetary policies of world central bank to provide investment gain and global economic growth.
The age of floating currencies, and the age of credit, is history, given the trade lower in the Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB. The rule of Wall Street Bankers, BAC, C, JPM, and City of London Bankers, PUK, LYG, BCS, HSBC, RBS, is diminishing. Said another way the role of what Doug Noland terms wildcat finance is history.
At the power of the Rider on the White Horse of Revelation 6:1-2, the age of debt servitude is dawning, with the rise of undollar, regional bartering agreements. The rule of regional fascist economic leaders is increasing. Said another way, the role of wildcat governance, where regional leaders bite, rip, and tear one another apart to see who will be top dog, is the new normal.
Peter Symonds of WSWS posts Australian Budget Ends Age Of Entitlement. The budget sets new global benchmarks for dismantling the welfare state established following World War II
God’s foreordained plan is unfolding. There be no longer any citizens having national identity; rather all be residents of regional panopticons of debt servitude.
Zero Hedge posts Hedge Russia Holds “De-Dollarization Meeting”: China, Iran Willing To Drop USD From Bilateral Trade. And Business Insider posts Forget Sanctions Over Ukraine: Russia Scores Massive Gas Pipeline Deal With China. And International Man posts The Collapse Of The International Monetary System And The Petrodollar. And ETF Daily News posts Russia Is On The Verge Of Dealing A Massive Blow To The Petrodollar. And GoldSilverWorlds posts The Fall Of The Dollar Based Monetary System. This as AP reports Foreign Holdings Of US Treasury Debt Hits Record.
Jerry White of WSWS posts Detroit Serves As The Model: Permanent Rule By The Banks. The Michigan legislature is debating a series of bills to impose a permanent financial authority on Detroit that would remain in place long after the city emerges from bankruptcy
The dynamic of inflationism that came with the creation of the US Fed in 1913, and which intensified in 1971 when President Nixon took the US off the gold standard and let currencies float at the advice of Milton Friedman, and in 1999 when the Euro was introduced and when the Glass Steagall Act was repealed, and in 2008, when Ben Bernanke’s commenced QE1, creating the age of credit, that is the age of trust in the monetary policies of the world central banks, is history.
What are currencies? Currencies are the wheels of economic systems, such as capitalism communism, and socialism.
The death of the Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB, on May 13, 2014, defines not only the failure of the age of credit, but also the failure of the sovereignty and the seigniorage, that is the moneyness, of the Banker Regime, consisting of democratic nation states and the speculative leveraged investment community.
The age of profitable fixed income investing is over, with the result, that the fixed income investor as well as all investors, are going extinct. It’s Global ZIRP no more, as investors no longer trust in the monetary authority of the world central banks to stimulate investment gains and global growth.
The age of profitable global growth investment is gone. Global Growth Outside the US, DNL, has topped out, this on the peaking out of the debt trade, as is seen in Ultra Junk Bonds, UJB, and Junk Bonds, JNK, peaking out.
The age of vice investing, that is investing in vice is history as Benso te asks Has Macau’s Casino Bubble Been Pricked? And as the chart of the Vice Fund, VICEX, and stocks, LMT, RTN, UTX, LO, BTI, RAI, WYNN, MGM, TAP, communicates.
The end has come to Pursuit Of Yield Investing, with the result that Dividends Excluding Financials, DTN, and High Yielding Debt, such as JNK, LWC, EU, EMB, HYD, EMLC, EMCD, BABS, PZA, EMLC, HYXU, have peaked out.
Profitable investing in silver mining companies is over. SRSrocco Report posts US Mint Sells More Silver Eagles In A Week Than Gold Eagles Over 3 Years. I comment that Silver, SLV, although bought by the wise as a medium for bartering, is a product used in the production of economic goods.
Seeking Alpha posts The Investment Case Appears To Be Broken For Silver Standard Resources Inc.
SSRI has been one of the most carry trade investments of all times; and that the charts of Silver Miners, SIL, and the Junior Silver Miners, SILJ, are bearish. Casey Research reports The London Silver Fix To Be Scrapped.
The Milton Friedman Free To Choose era, came to an end on Tuesday May 13, 2014, with the trade lower in the Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB. And the Ben Bernanke Credit era, came to an end as Eurozone Nations, EZU, Portugal, PGAL, Ireland, EIRL, Austria, EWO, and Italy, EWI, traded lower; as Ireland’s Bank, IRE, and the National Bank of Greece, NBG, traded lower; and as European Credit, EU, traded lower.
The age of diktat and the age of debt servitude, will come through the death of fiat money, which is defined as Aggregate Credit, AGG, together with Major World Currencies, DBV, and Emerging Market Currencies, CEW, and will feature the new money, that being diktat money, defined as the mandates of regional fascists designed to establish regional security, security and sustainability. One can follow the failure of currencies with this Finviz Screener of Currency ETFs. One can follow the collapse of the Global Financial Institutions with this Finviz Screener of the World’s Leading Banks.
The US Fed’s and the ECB’s Policy Statements were fully worthy of risk-on investing; but now that investment greed has turned to fear, risk-off investing is the order of the day.
Out of ashes of currencies, the new economic system of regionalism will rise to serve as a basis of economic activity of debt servitude. Diktat will be the wheels upon which regional economies function, and will be a continuation of the Troika’s technocratic governance.
Bible prophecy of Daniel and Revelation, communicates that there is waiting in the wings of Europe’s stage, the most capable of economic leaders; soon he will step into the limelight and take up his ordained rule. He is described as The Little Horn,Daniel 7: 7,8, Another King,Daniel 7:20-25, The Lawless One,2 Thess 2:3-10, The One Opposed to Christ,1 John 2:18, And The Sovereign Revelation 13:5-10. His rise to power will be accompanied by The Seignior, Revelation 13:11-18, meaning top dog banker, who in coining money takes a cut.
A new basis of trust is coming. Bible prophecy of Revelation 13:3-4, communicates that people will follow after and give homage to the diktat of the Beast Regime, which will rule sovereignly in all of the world’s ten regions, and occupy in seigniorage in every one of mankind’s seven institutions.
III) Is there Global Warming or Is there Ice Age Winter?
A) Paul Krugman asks, Can anything reverse the growing hostility to science within the Republican Party?
He writes Points of No Return. Recently two research teams, working independently and using different methods, reached an alarming conclusion: The West Antarcticice sheet is doomed. … Even if we took drastic action to limit global warming right now, this particular process of environmental change has reached a point of no return.
Meanwhile, Senator Marco Rubio of Florida, much of whose state is now fated to sink beneath the waves confidently declared the overwhelming scientific consensus on climate change false, although in a later interviewhe was unable to cite any sources for his skepticism.
So why would the senator make such a statement? The answer is that like that ice sheet, his party’s intellectual evolution (or maybe more accurately, its devolution) has reached a point of no return, in which allegiance to false doctrines has become a crucial badge of identity.
I’ve been thinking a lot lately about how support for a false dogma can become politically mandatory, and how overwhelming contrary evidence only makes such dogmas stronger and more extreme. To see how it works, consider a topic I know well: the recent history of inflation scares.
Inflation phobia has always been closely bound up with right-wing politics; to admit that this phobia was misguided would have meant conceding that one whole side of the political divide was fundamentally off base about how the economy works. So most of the inflationistas have responded to the failure of their prediction by becoming more, not less, extreme in their dogma.
The same kind of thing is clearly happening on the issue of global warming.As the evidence for a changing climate keeps accumulating, the Republican Party’s commitment to denial just gets stronger.
Andtruly crazy positions are becoming the norm. A decade ago, only the G.O.P.’s extremist fringe asserted that global warming was a hoax concocted by a vast global conspiracy of scientists (although even then that fringe included some powerful politicians). Today, such conspiracy theorizing is mainstream within the party, and rapidly becoming mandatory;witch hunts against scientists reporting evidence of warming have become standard operating procedure, and skepticism about climate science is turning into hostility toward science in general.
It’s hard to see what could reverse this growing hostility to inconvenient science. As I said, the process of intellectual devolution seems to have reached a point of no return. And that scares me more than the news about that ice sheet
B) Elaine Meinel Supkis claims the world is in a period of global cooling.
C) The new normal is destructive weather.
Business Standard relates Nature Magazine posts Intensity Of Tropical Cyclones Shifting Poleward. A new study suggests that the intensity of tropical cyclones is shifting poleward. According to the study, the latitude at which tropical cyclones reach their greatest intensity is gradually shifting from the tropics toward the poles at rates of about 33 to 39 miles per decade. The new study was led by Jim Kossin, a National Oceanic and Atmospheric Administration (NOAA) National Climatic Data Center scientist stationed at the University of Wisconsin-Madison’s Cooperative Institute for Meteorological Satellite Studies. The research documents a poleward migration of storm intensity in both the Northern and Southern Hemispheres through an analysis of 30 years of global historical tropical cyclone data.
The term “tropical cyclone” describes a broad category of storms that includes hurricanes and typhoons, large and damaging storms that draw their energy from warm ocean waters. The findings are important, Kossin said, because they suggest that some areas, including densely populated coastal cities, could experience changes in risk due to large storms and associated floods and storm surges. Regions closer to the equator, he noted, could experience a reduced risk, and places more distant from the equator could experience an increased risk. The trend observed by Kossin and his colleagues is particularly important given the devastating loss of life and property that can follow in the wake of a tropical cyclone. The study is published in the journal Nature.
IV) Headline Inflation is seen increasing.
The failure of credit is evidenced in Floating Rate Notes, FLOT, trading lower from its market high and in World Stocks, VT, unable to leverage higher over Aggregate Credit, AGG, that is VT:AGG, is trading lower; and in the ratio of the Long Term Tips, LTPZ, to 30 Year US Government Bonds, EDV, that is LTPZ:EDV, is trading higher, and in the Proshares UltraPro 10 Year TIPS/TSY Spread, UINF, trading higher. Out of the failure of credit, Headline Inflation is seen in the Reuters report Consumer Prices Post Biggest Gain In 10 months.
Eddy Elfenbein posts Disinflation Is (Probably) Over. Interesting market action today. The stock market is currently down about 0.9%. We had three big economic reports this morning. The first, and probably the biggest, is the U.S. Industrial Production which dropped 0.7% in April. This caught Wall Street off guard. The consensus was for an unchanged report. However, the March report was revised higher to a gain of 0.9%.
The initial jobless claims report dropped to 297,000 which is the lowest figure in seven years. This matches the report from May 12, 2007. Today’s report may hint of another good monthly jobs report. The May jobs report won’t come out until June 6.
The other report showed that consumer prices rose by 0.3% last month. I say this rather tentatively, but I think the evidence now says that disinflation is over. Please note that this isn’t quite the same as saying that inflation is definitely moving upward. It’s simply stopped trending down (I think).
V) Holiness and truth are the only trustworthy things.
On Tuesday May 13, 2014, The Euro, FXE, the Swiss Franc, FXF, and the British Pound Sterling, FXB, all started to die as a currency. Currency traders sold the Euro, FXE, as well as the Swiss Franc, FXF, and the British Pound Sterling, FXB; the Euro, FXE, closed the week lower at 136.25.
The see saw destruction of fiat wealth commenced in the Eurozone on the failure of credit. specifically the failure of trust in the world central banks to continue to stimulate investment gains as well as global growth. With the trade lower in the Eurozone Nations, Ireland, EIRL, Italy, EWI, Greece, GREK, European Small Cap Dividends, DFE, and the European Financials, EUFN, the world has passed through an inflection point: the world has pivoted from the age of currencies and the age of credit, into the age of diktat and the age of debt servitude; as the sovereignty and seigniorage of the Banker Regime has failed to support ongoing investment gain and global growth; out of the ashes of failed debt trades and currency carry trades the sovereignty and seigniorage of the Beast Regime, foretold in Daniel 2:20 and Revelation 13:1-4, will rise to provide regional security, stability and sustainability.
On Wednesday May 14, 2014, there was a stock market reversal as Volatility, ^VIX, XVZ, traded higher, as the S&P 500, SPY, traded lower from its blow off market high, as Aerospace, PPA, such as LMT, Semiconductors, SOXX, such as MU, TXN, Retail, XRT, such as KORS, DDS, JWN, Consumer Services, IYC, such as, DIS, Global Industrial Producers, FXR, such as WHR, FLS, HON, PPG, DOW, CAT, ETN, IR, Design Build Companies, FLM, such as Fluor, FLR, Business Services, such as DLX, ADP, Major Energy Companies, such as CVX, Industrial Textiles, such as MHK, and Transports, XTN, such as UNP, DAL, SWFT, traded lower.
On Thursday May 15, World Stocks, VT, Nation Investment, EFA, specifically Ireland, EIRL, Italy, EWI, and Greece, GREK, and Dividends Excluding Financials, DTN, traded strongly lower from their market highs, evidencing the failure of credit, that is trust in the world central banks’ monetary authority to simulate investment gain and global growth.
Eight factors evidence the failure of credit; these include the trade lower in the following:
1) The Russell 2000, IWM, IWC, traded lower as the credit sensitive Small Cap Pure Value Stocks, RZV, the Small Cap Pure Growth Stocks, RZG, the Small Cap Industrials, PSCI, the Small Cap Consumer Staples, PSCC, the Consumer Recreational Goods, POOL, THO, WGO, PII, ESCA, traded lower, on the traded lower in Regional Banks, KRE.
2) Eurozone Nations, EZU, Portugal, PGAL, Ireland, EIRL, Italy, EWI, Austria, EWO, and Greece, GREK, traded lower. Ireland’s Bank, IRE, and the National Bank of Greece, NBG, traded lower; these are shown the way is lower in the European Financials, EUFN.
3) European Credit, EU, traded lower.
4) Credit Services, AXP, NNI,V, PRAA, DFS, FCFS, AGM, SLM, CACC, ECPG, CIT, MA, HEES, URI, traded lower
5) Homebuilders, XHB, and ITB, traded lower; and US Infrastructure, PKB, such as MWA, FTK, WSO, FLT, MMM, AAON, and PRIM; and Building Materials, and Manufactured Housing, CVCO, traded lower.
6) Life Insurance Companies, such as PUK, SYA, GNW, traded lower.
7) Industrial Textile Manufacturers, DXYN, UFI, AIN, MHK, traded lower.
8) Leasing Companies, HEES, URI, CAR, HTZ, UHAL, GMT, TGH, AER, traded lower
On Thursday, May 15, 2014, at market open, the Interest Rate on the US Ten Year Note, ^TNX, traded sharply lower to 2.50%, as the bond vigilantes anticipated huge flows out of Equity Investments and into Credit Investments, as is seen by Aggregate Credit, AGG, blasting to a new all time high. The Steepner ETF, STPP, plummeted, reflecting a flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as investors flocked to “so called” safety in US Ten Year Notes, TLT, as Ireland, EIRL, Italy, EWI, Greece, GREK, the Eurozone Small Cap Dividends, DFE, and European Financials, EUFN, traded strongly lower.
The death of currencies, specifically the Euro, the Swiss Franc, and the British Pound Sterling, and the failure of credit, seen in the Eurozone Stocks, EZU, and the European Financials, EUFN, trading lower, has commenced destructionism, replacing the former inflationism as the dynamic of economic activity.
Ongoing falling Major World Currencies, DBV, and soon coming falling Emerging Market Currencies, CEW, means the crush of investment in Global Growth, DNL. While Econobrowser posts Estimates Of Monthly GDP Indicate A Rebound, So Too Do Forecasts, there are no profitable investment markets anymore. Ireland, EIRL, was the crown jewel of debt trade investing and currency carry trade investing, in the age of credit and the age of currencies; now with IRE, JHX, IR, CRH, RYAAY, XL, ACN, trading lower, it is one of the age of debt servitude loss leaders. The death of the wheels of economic activity, that is currencies, means economic deflation, and the dissolution of traditional governance. Fiat money will be replace by diktat money. And democratic governance will be replaced by regional fascism, as communicated in Bible Prophecy of Daniel 2:20-45 and Revelation 13:1-4.
In the age of credit, and in the age of currencies, people trusted in the investment choice of the Banker Regime. A new basis of trust is coming. Bible prophecy of Revelation 13:3-4, communicates that people will follow after and give homage to the diktat of the Beast Regime, which will rule sovereignly in all of the world’s ten regions, and occupy in seigniorage in every one of mankind’s seven institutions.
William Pesek posts The Kuroda Put Is Coming. Global markets long ago got used to the “Greenspan put.” But they haven’t seen anything like the “Kuroda put” that Japan’s central bank governor may soon implement.
Ignore today’s dramatic Japanesegrowth figures. When you raise sales taxes in a deflation-wracked economy for the first time in 17 years, you’re going to get a surge in anticipatory shopping. Therein lies the explanation to the 5.9 percent jump in gross domestic product in the first quarter from the previous one. But do pay attention to Haruhiko Kuroda’s comments after the data were released: The urgency to increase Japan’s growth is increasing.
Paul Sheard, chief global economist at Standard & Poor’s, thinks Kuroda’s Bank of Japan may soon “double or even triple down” on the size of its already huge monetary easing. The 12 percent rout in Japanese equities this year is irking the ruling Liberal Democratic Party. The pressure is on Kuroda to do more than just double bond purchases as he did a year ago — much more. Hence the chatter about a Kuroda put.
The monetary put concept became a matter of market convention duringAlan Greenspan‘s 1987-2006 tenure as Federal Reserve chairman. Greenspan rarely saw a disturbance in the economy that didn’t warrant a market-soothing injection of credit. Kuroda has thus far adopted a quieter strategy; much of the BOJ’s market-supporting efforts have involved buying up government bonds, in contrast to the gong-ringing moves Greenspan favored.
That’s about to change. Kuroda is finding that his monetary largess isn’t boosting credit creation as hoped. Inflation, yes, as Japan imports more energy with a weaker yen. But the kind of monetary multiplier effect the BOJ hoped to unleash by now remains elusive, as the experience of Mizuho Financial Group and Japan’s other two biggest banks demonstrate. All three are forecasting a drop in earnings for this year as loan growth loses momentum and returns from stock investments wane.
Kuroda is a respected economist who’s staked his entire legacy on ending Japan’s deflation. What’s more, Prime Minister Shinzo Abe isn’t coming through with sweeping structural reforms to boost consumer demand and business confidence.
However unfairly, that puts the onus on Kuroda. It also places Japan in uncharted territory. Will bond traders sit back passively if the BOJ adds lots more stimulus to the economy? It’s impossible to tell.
Serendipitously, Greenspan re-entered the debate this week, telling a Washington forum that it’s a mistake to believe that inflation isn’t a threat. Of course, that’s a bit rich coming from a man whose legacy is more “Mr. Bubble” than “Maestro,” the title of Bob Woodward’s gushing 2001 biography. Still, Greenspan isn’t alone inwondering whether the surprising 0.6 percent surge in U.S. producer prices in April is an aberration or a sign of trouble to come.
One challenge for Kuroda is filling the void that the Janet Yellen Fed appears set on creating. As the U.S. central bank tapers, the BOJ may feel compelled to offset any loss of global liquidity, especially if it hits demand in China, Japan’s biggest customer. The odds don’t favor a big inflation problem in Japan. The nation’s fast-aging population and China’s slowdown could just as easily exacerbate deflationary forces. But the question is what the bond vigilantes do.
Japan gets away with the world’s biggest debt burden because more than 90 percent of government debt is held domestically. That doesn’t ensure that banks, pension funds, insurance companies and retirees will sit by passively if they fear the BOJ is going the way of Weimar Germany. Only time will tell if the Kuroda put can maintain calm in global markets. But it’s far from a sure bet.
Please consider the concept of the Apostle Paul, that Jesus Christ is the mastermind of the economy of God; that is that He is responsible for designing, maturing and completing all things economic in every paradigm and age. And that He built the very end of age of credit and age of currencies, with little regard for the worker and employment; He had the greatest regard for the investor and investment gain; with the reason being He wanted to perfect moral hazard
The age of currencies, was fathered by Milton Friedman with his Free To Choose Manifesto, and the age of credit was fathered by Ben Bernanke with his QEs, Mario Draghi with his LTRO1, 2, and OMT, and Hiroki Kuroda, with this Abenomics. Each genius provided his own credit stimulus for trust in risk on investing; these birthed and defined the investor as the centerpiece of economic activity. Their provision of credit centered on providing seigniorage, that is moneyness, for investment gain, and very little for recovery from the Great Recession, and have resulted in peak moral hazard.
Beginning the week ending May 16, 2014, an unwinding of the Euro Yen Currency Carry Trade, that is EURJPY in Ireland, EIRL, Greece, GREK, Italy, EWI, and a derisking out of the European Financials Debt Trade, EUFN, has terminated all liberal things worthy of trust, such as a university education, home buying, and fiat wealth investing, which have been based upon monetary policies of democratic nation state governance and schemes of credit provided for investment gain.
Out of soon coming economic chaos, people will come to trust in new monetary and economic policies of regional economic governance and schemes of debt servitude to establish regional security, stability, and sustainability, where the debt serf will be the centerpiece of economic activity.
What is truth? Truth is that which is reliable for belief, or that which is a trustworthy promise.
Countless many fail to perceive truth, and having no holiness, will be swept away by the soon coming cataclysms. Jesus foretold that countless many would have no idea of end time events which will bring on cataclysm after 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.”
Randy A Brown writes I Come Quickly … Hold Fast. Jesus says in Revelation 3:11, “Behold I come quickly”. Those who persevere and hold fast in truth and holiness, will be given crowns at the Bema Seat of Christ.
Jack of the Oak Pulpit writes Casting Crowns. There are two words for “crown” in the New Testament: diadema, which means “a royal crown” and gives us the English word diadem; the second word for crown is stephanos, the “victor’s crown”.
The Greek word for crown, diadema, carries that meaning. It comes from two words which literally mean “to bind (deo) through (dia),” as twisting the ends of an olive branch through each other to make a circle. Diadema is one of two words for “crown” in the N.T.
The word diadema refers to the crown of a king. It is a crown given to honor one’s position in life. It is given to someone who possessed the right to be a king, usually by lineage. You could not in the usual case win a diadem as a reward.
The other word for crown, stephanos, refers to a twisted branch, usually of the olive tree, that was awarded to the winner of a contest—as in the ancient Olympics. It was something one “earned” through performance.
IV) I have been blogging for four years; it has been a life transforming experience for me.
With the use of Google Documents and Finviz Stock Screener, I have spent eight hours a day, six days a week since May of 2010, blogging on the concepts of sovereignty and seigniorage, in the economy of God, that is the stewardship of Jesus Christ, a concept presented by the Apostle Paul in Ephesians 1:10.
One of the first articles I wrote wasEU Finance Ministers Reach Accord For EFSF Monetary Authority To Float Eurobonds To Aid Nations In Sovereign Debt Distress, The Euro Stability Task Force, of European Finance Ministers, led by Herman Van Rompuy, president of the European Council, has reached agreement on the technical aspects of the special purpose vehicle, SPV, that would borrow up to 440 billion euros with euro zone country guarantees for euro members in trouble.
The Euro was saved for the purpose of fully establishing and defining the investor as the centerpiece of economic activity, in debt trade investing and currency carry trade investing, so as to develop a peak moral hazard based prosperity, as well as to unite the polar opposite nordics and latins, in a regional gulag of debt servitude, which will emerge under the leadership of the soon rising Sovereign and Seignior, to be the world’s preeminent regional economically fascist and military power, as foretold in Revelation 13:1-8.
Today’s economic backdrop features a coup in the Ukraine as Antiwar posts Ukraine Declares Eastern Govts ‘Terrorist Orgs’. And Energy Sanctions Against Russia Would Be ‘Inappropriate’, EU Says. And Russia To Ukraine: We’ll Talk Gas Discount If You Pay Off Debt.
Residing in Bellingham, WA, has been a refuge of peace, where through the graciousness of others, I have come to the insights I have today.
Bellingham is a unique small city which has been transformed by real estate investing of gentrification and real estate investing in rental properties to students attending Western Washington University.
Bellingham is exemplary in improving its streets and water system infrastructure, with sidewalk, fire hydrants, turnabouts, storm drains, and bike lanes.
Economic tourists from Canada come to Bellingham to purchase gasoline at Costco, groceries at Winco Foods, and apparel at Bellis Fair Mall.
Entrepreneurial investment in unique service businesses has given the city a cultural renaissance, these include FurEver Friends Doggie Daycare and Grooming, Perch And Play, and Vital Climbing Gym.
I refuse to buy a vehicle; I say let the unsold vehicles continue to pile up in places where where the world’s unsold cars go to die, as Tyler Durden posts in Zero Hedge.
I anticipate moving on to new experiences; thanks for having visited my blog