Financial market report for the week ending May 23, 2014
This post is available in Google Documents format here.
1) … The beginning of the end of the world commenced May 13, 2014, as Jesus Christ pivoted the world out of the paradigm and age of liberalism, which featured nation state central bank economic stimulus, and into the paradigm and age of authoritarianism, which features regional fascist mandates.
The apostle Paul presents the concept in Ephesians 1:10, that Jesus Christ has been tasked with the economy of God, to mature and perfect all things in every age, bringing them to maturity and perfection, much like a ship’s captain completes the manifest before setting sail.
The rise of great inequality.
It was Christ who acted to complete the age of currencies which was fathered by Milton Friedman with his Free To Choose Manifesto, and to perfect the age of credit which was fathered by Ben Bernanke with his QEs, Mario Draghi with his LTRO1, 2, and OMT, and Hiroki Kuroda, with this Abenomics.
Each of economic geniuses, Bernanke, Draghi, and Kuroda, provided his own credit stimulus for trust in risk on investing; these birthed and defined the investor as the centerpiece of economic activity.
God purposed for a debt based money system, and provided the Banker regime to establish currencies and credit to achieve His purposes. It was by God’s design from eternity past, and ongoing fulfillment of His will that the central bank leaders’ provision of currencies and credit, provided seigniorage, that is moneyness, for investment gain, and very little stimulus for economic recovery since the Great Recession, as the investor was ordained from eternity past to be the centerpiece of economic activity.
Thus there was was no fluke, error, or failure of policy, whereby employment and household debt relief were given little regard despite the complaint of Tyler Durden US Manufacturing PMI Beats But Employment Slows To Worst In 2014; and of Brad DeLong Post-1980 Rise Of Extreme Inequality In America and of House of Debt authors Atif Mian and Amir Sufi Employment Scars of the Housing Bust. The central argument we make in our book is that the housing bust in combination with excessive household debt burdens were the key drivers of the economic downturn. Failure to more adequately address the housing disaster was the greatest policy mistake made in the Great Recession.
The peril of great inequality.
The sovereign’s monetary policies defined investment choice and established both the confidence and the platform for risk-on investing, and resulted in peak banking equity wealth, IXG, on May 13, 2014, and resulted in peak credit wealth, AGG, on May 15, 2014, thus establishing peak moral hazard.
The outcome of great inequality.
Sovereign monies, that is Major World Currencies, DBV, such as the Euro, FXE, are now trading lower. This loss of seigniorage communicates a dwindling of sovereign authority
On Tuesday, May 13, 2014, wealth destruction 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’s Sovereign Debt, ITLY, and Italy, EWI, and the European Financials, EUFN, the world has passed through an inflection point: the world has pivoted from the age of credit into the age of debt servitude, and started to enter into Kondratieff Winter, the final phase of the Business Cycle.
Having perfect peak moral hazard wealth on Friday May 23, 2014, with the S&P 500, manifesting a blow off market top, as is seen in TheWaveTrading Safehaven chart report $SPX: Follow Up of The Ending Diagonal Scenario, 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, and to produce the age of absolute poverty.
On Friday May 16, 2014, an unwinding of the Euro Yen Currency Carry Trade, that is EURJPY in nation investment in Ireland, EIRL, Greece, GREK, Italy, EWI, and Eurozone Stocks, EZU, as well as a derisking out of the European Financials Debt Trade, EUFN, introduced a see saw destruction of fiat wealth, and the age of debt servitude, and terminated all liberal things worthy of trust, such as a university education, home buying, and fiat wealth investing.
And out of soon coming economic chaos, people will come to trust in new sovereign authority and monetary and economic policies of regional economic governance and schemes of debt servitude to establish regional security, stability, and sustainability, where the debt serf is the centerpiece of economic activity, and ever increasing poverty is the way of economic life.
Under liberalism, meaning freedom from the state, it was the bankers, corporations, government, entrepreneurs, and citizens of democracies who were the legislators of economic value and the legislators of economic life that shape one’s means and one’s ends.
Now, under authoritarianism, it is the currency traders, bond vigilantes, and regional fascist leaders working in public private partnerships and in regional governance, who are the legislators of economic value and are the legislators that shape one’s means and one’s ends.
Scott Sumner writes What’s So Funny About The End Of The World? Nothing. What’s funny is thatno one cares. “I am finding it increasingly plausible that existential risk is the biggest moral issue in the world, even if it hasn’t gone mainstream yet,” Bostrom told Ross Andersen recently in an amazing profile in Aeon. Bostrom, along with Hawking, is an advisor to the recently-established Centre for the Study of Existential Risk at Cambridge University, and to Tegmark’s new analogous group in Cambridge, Massachusetts, the Future of Life Institute, which has a launch event later this month. Existential risks, as Tegmark describes them, are things that are “not just a little bit bad, like a parking ticket, but really bad. Things that could really mess up or wipe out human civilization.”
The Apostle John wrote in Revelation 1:1, of those thing which must shortly come to pass, meaning the end time events which when they start to occur will rapidly fall in place much lined dominoes topple one upon one another once the first is pushed; the eschatology details from futurism, that is futurist viewpoint, are as follows. And of note, Daniel Alejandro Flores writes that the word “Revelation” is found 18 times in the Greek, and means disclosure and manifestation.
As is seen in Revelation 6:1-2, Jesus Christ, on October 23, 2013, partially opened, on then again on May 13, 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, by calling the Benchmark Interest Rate, ^TNX, higher from 2.49%, 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.
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 the Interest Rate on the US Ten Year Note, $TNX, 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.
Out of a global credit bust and financial system breakdown, seen in Revelation 13:3-4, and through the First Horseman of the Apocalypse’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 in all of the world’s ten regions, and schemes of totalitarian collectivism in all of humanity’s seven institutions, this being foretold in Revelation 13:1-4, as well as Daniel 2:20-45.
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.
The end of the world is confirmed with The Red Eclipse, that is the recent blood moons, and is confirmed with the new normal of destructive weather. Paul Mitchell of WSWS posts The Balkan Floods And The Breakup Of Yugoslavia. The severity of the floods has been compounded by the fallout from the break-up of the former Yugoslavia, the Bosnian War (1991-95) and the NATO bombardment of Serbia in 1999. And Nebojsa Malic posts in Antiwar Deluge in Serbia and Bosnia.
For inspiration reading one might consider some Bill Muehlenberg’s Recommended Reading on Eschatology
2) … The age of currencies and the age of credit featured the dynamos of creditism, corporatism and globalism; the age of diktat and the age of debt servitude features the singular dynamo of regionalism.
Under the Banker Regime, credit intensity, defined as the amount of debt needed to create additional economic activity; now under the Beast Regime, diktat intensity is the amount of diktat needed to create additional regional security stability and security.
Benson te writes Phisix: The Speculative Mania Galore In Full Throttle! Essentially “growth” becomes a pretext for unbounded multiple expansion via sky high prices. Risk vanishes! This item is different! Yet this is another example of the one way trade. Yet the assumptions I make here is that the growth projections will be accurate. They are not. Inflated revenues, earnings and asset values will tank when the BSP pulls back on the 30+% money supply growth rate.
The Financial Times, in carrying the analysis of HSBC points to the increasing vulnerability of Emerging Asia’s growth model as she becomes deeply reliant on debt to produce statistical “growth”, or simply the diminishing returns of debt, which the HSBC calls “credit intensity”.
Asia is addicted to debt bannered the Financial Times Asia: Addicted To Debt. How? “From Credit levels have risen sharply since 2008 in Hong Kong, Singapore, Thailand and Malaysia, while already high levels of household debt in South Korea and Taiwan have tracked even higher. During times of accelerating growth, that might not be a cause for concern. But now much of Asia is faltering. Credit intensity, the amount of borrowing needed to generate a unit of output, has surged, while productivity growth has tumbled. The debt train appears to be fast running out of track just as the world prepares for higher interest rates.”
Benson te has consistently presented that credit expansion in the three sectors has been responsible for the growth of the Philippine Stock Market; these are 1) real estate, renting, and business services; 2) construction; 3) hotel and restaurant.
While a strong performer, the Philippines, EPHE, has been out-performed by Indonesia, IDX, India Small Caps, SCIN, Columbina, GXG, Turkey TUR, Brazil, EWZ. and Egypt, EGPT, as is seen in their combined Yahoo Finance Chart.
Credit Intensity is seen in the ongoing Yahoo Finance chart of Emerging Market Currencies, CEW, Emerging Market Local Currency Bonds, EMLC, Emerging Market Bonds, EMB, Emerging Market High Yield Debt, EMHD, and Emerging Market Corporate Debt. EMCD.
Credit intensity is defined as the amount of additional credit needed to satisfy risk appetite. Bloomberg reports Wall Street Finds New Subprime With 125% Business Loans. Zero Hedge reports Credit Mania Update: The Chase for CCC-Rated Bonds. And WSJ reports Demand High As Fannie Mae Sets Price Range For Risky Mortgage Securities. Bond buyers jockeyed to get a piece of $1.6 billion of riskier Fannie Mae securities, enabling the government-backed mortgage company to twice cut the yields it offered on the debt as 24/7 Wall Street reports Fannie And Freddie Looking for 5% Home Price Growth in 2014.
Bloomberg reports Junk-Rated? Horribly Illiquid? Perfect, I’ll Buy Them All. It’s getting harder to trade bonds. Hours, sometimes days can go by before investors can complete a transaction. That’s not dissuading them from piling into the most-illiquid debt out there. Junk-bond investors are earning practically nothing extra to own older, smaller bond issues that don’t typically trade as often as bigger, newer debt offerings, according to Barclays Plc (BARC) data. The gap has collapsed to almost zero from a 1.05 percentage point premium for the less-liquid notes in the fourth quarter of 2011. That means bondholders aren’t really being compensated for the risk that there might be no one who wants to buy their obscure securities if demand dries up and they’re forced to sell. They’re not worrying about that now, though, with volatility at historic lows and cash flowing into credit markets amid a sixth year of unprecedented Federal Reserve stimulus. “The ‘roach motel’ dynamic is as pernicious as ever,” Pacific Investment Management Co.’s Christian Stracke wrote in a May note posted on the Newport Beach, California-based firm’s website. “Investors should beware of credit funds that offer daily liquidity where managers are reaching for yield and are not paying close attention to the prospective liquidity profile of what they buy.
Credit intensity has a twin that being stock buybacks. Tyler Durden posts This Is Why Hewlett Packard Just Announced Another 16,000 Job Cuts. The soaring amount of stock buybacks, which rose by nearly 50% in Q2 from Q1 to $831 million and by 27,600% (!) from a year ago, the most since 2011, should provide all the answers. Other buyback achievers include Halliburton, HAL, and Time Warner, TWC.
3) … The see saw destruction of fiat wealth commenced as the bond vigilances called the Benchmark Interest Rate higher from 2.49%, causing the investor to derisk out of debt trades and deleverage out of currency carry trades.
The Apostle Paul communicates in Ephesians 1:10, 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, through His Dignitary, Ben Bernanke, built the very end of age of credit and age of currencies, with little regard for the worker and employment.
The WSJ posts For Those Out Of Work, Scant Optimism In Finding The Next Job.
James Pethokoukis reports Where Are US Jobs Being created? Not In The Middle
Jesus Christ has had the greatest regard for the investor and investment gain; with the reason being He wanted to perfect moral hazard.
For example, He had little regard for the unemployed living in North Philadelphia. It’s one of the worst places in America to live. Wikipedia relates it is termed theNorth Philly Badlands because of pervasive ongoing drug usage and an area where blighted and abandoned homes abound. Wikipediarelates unfettered poverty has earned North Philadelphia a reputation as a slum. Zip Atlas relates that ZIP codes, 19132, 19133, 19121, 19122, have very high levels of unemployment. Poverty rates run as high as 50% in some neighborhoods; unemployment in the area is over 10%, compared to 6.3% nationwide. Virtualtourist relatesThe City Is Burning To The Ground.
Wikipedia further relates Philadelphia is the largest city in the Commonwealth of Pennsylvania, the second largest city on the East Coast of the United States, and the fifth-most-populous city in the United States.
Popular nicknames for Philadelphia are Philly and The City of Brotherly Love, the latter of which comes from the literal meaning of the city’s name in Greek (Greek: Φιλαδέλφεια ([pʰilaˈdelpʰeːa], Modern Greek: [filaˈðelfia]) “brotherly love”, compounded from philos (φίλος) “loving”, and adelphos (ἀδελφός) “brother”).
During the 19th century, Philadelphia became a major industrial center and railroad hub that grew from an influx of European immigrants. It became a prime destination for African Americans during the Great Migration and surpassed two million occupants by 1950.
TheAfrican American population in Philadelphia is the third-largest in the country, after New York City and Chicago. Historically,West Philadelphia and North Philadelphia were largely black neighborhoods, but many are leaving these areas in favor of the Northeast and Southwest sections of Philadelphia. There is a higher proportion of Muslims in the African American population than most cities in America. West Philadelphia also has significant Caribbean and African populations.
ThePuerto Rican population in Philadelphia is the second-largest after New York City, and the second-fastest growing after Orlando. There are large Puerto Rican andDominican populations inNorth Philadelphia and the Northeast, as well as a significant Mexican population in South Philadelphia.
Samuel Davidson of WSWS reports Pennsylvania Faces A $1 billion Tax Shortfall, Setting Stage For New Budget Cuts. In April, the state collected $495 million less in tax revenue than projected.
3A) … On Monday, May 19, 2014, Global Growth Excluding The US, DNL, a Large Cap Blend ETF, likely peaked out, as Global Industrial Producers, FXR, Small Cap Industrials, PSCI, Small Cap Growth, RZG, Semiconductors, SOXX, and Transportation, XTN, traded higher. This included stocks such as MHK, AXE, TYC, ROK, FLS, CFX, EMN, DOW, DAKT, BHE, CR, IR, MEAS, ROC, RPM, POL, ECL, SXT, KWR, CHMT, WOR, KS, BERY, AOS, GPK, MAS, CTAS, SEE, TXN, F, MU, QCOM, GMED, COO, DAL, which traded higher on the day, largely on recovery trading from last week’s sell off.
Other High Beta Sectors, Regional Banking, KRE, Investment Bankers, KCE, Nasdaq Internet, PNQI, Networking, IGN, Internet Retail, FDN, Biotechnology, IBB, and Software, IGV, traded higher on the day as well in some investment recovery trading.
Emerging Market High Dividends, EMHD, and Emerging Market Financials, EMFN, traded to new rally highs, on higher Emerging Market Currencies, CEW.
New York based Stock Analyst Corey Rosenbloom posts Breakout And Trade Target Planning for Netflix. Like many other similar stocks today, Netflix, NFLX, generated a potential breakout buy signal on a shattering of overhead resistance. Price retraced all the way back to the 38.2% and price confluence into $300 per share which, of course, is a key level that buyers MUST hold firm (and so far, they have done so successfully. This led to a push up from positive divergences into the current $350 pivot level from which today’s breakout and short-term buy signal occurs.
This stimulate Nasdaq Internet, PNQI, and Nasdaq Large Caps, QQQ, to trade higher.
The seigniorage, that is the moneyness of the Banker Regime, started to give way more fully on May 19, 2014, as traders derisked from debt trades and delveraged out of currency carry trades in Australian Equity, AUSE, KROO, EWA, WBK, BHP, on the trade higher in the Yen, FXY, and a trade lower in the Australian Dollar, FXA, as bond vigilantes call Interest Rates in Australia.
And likewise investors took flight from the Middle East Equity, GULF, MES. All as Zero Hedge posts Conflict Between China And Vietnam Is Imminent – China Piles Troops, Tanks, Artillery And APCs Near Vietnam Border.
Brazil, EWZ, EWZS, traded lower as Brazil Banks, BBD, BSBR, traded lower, as Spain’s Bank, SAN, traded lower. However, Emerging Europe, ESR, and Russia, RSX, ERUS, traded higher. German Small Caps, GERJ, traded lower as Deutsche Bank, DB, traded lower, as Zero Hedge reports Deutsche Bank Scrambles To Raise Capital.
High Yield Interest Rate Hedge, HYHG, Brazil Electric Utilities, EBR, CPL, ELP, PAM, DEP, and US Electric Utilities, XLU, PUI, traded lower as the bond vigilantes called the Interest Rate on the US Ten Treasury Year Note, ^TNX, higher to 2.54%, and steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, which is seen in the Steepner ETF, STPP, steepening.
Junk Bonds, JNK, and Ultra Junk Bonds, UJB, traded to new all time high, while Aggregate Credit AGG, traded lower, on lower 30 Year US Treasury Bonds, EDV, and lower US Treasury Notes, TLT.
Agricultural Commodities, RJA, traded lower.
Liberal economist Mark Thoma writes Why the Fed Should Not Raise Interest Rates.
His viewpoint is a disconnect from reality as the bond vigilantes have taken control of the Benchmark Interest Rate, $TNX, when it began to trade higher from 2.49%, on October 23, 3013.
Now on Monday May 19, 2014, the bond vigilantes have asserted their control over this Benchmark Interest Rate, by calling it higher yet to 2.54%, reflecting that the Rider on the White Horse, seen in Revelation 6:1-2, who has the Bow of Economic Sovereignty, and is effecting economic coups throughout the world, as is seen in the political instability in SE Asia, and as is seen in the Ambrose Evans Pritchard report Putin To Give Ground In China To Seal Gas Deal and as is seen in the Benson te report Thailand Military Declares Martial Law. And Bloomberg reports Thai Parties, Military Fail To Resolve Crisis At Meeting. Tom Peters of WSWS posts Thai Military Dispenses With Caretaker Government
Higher interest rates globally mean economic destabilization and economic deflation, coming largely from investors derisking out of debt trades and deleveraging out of currency carry trades: the much feared economic recession will soon emerge throughout the entire world.
Economic growth was a largely a side benefit, that came from investment gains, flowing from the credit stimulus of Global ZIRP. Economic growth was a function of the investor pursuing investment gain in the bygone era of currencies, and the age of credit. One follow the ongoing collapse of currencies with this Finviz Screener of leading currencies.
Austrian economist Mike Mish Shedlock writes Emerging Fed Policy If employment growth stalls, tapering will slow or halt. Long-term, hikes are longer off than most realize. Also, the Fed will never sell anything. Assets will be held to term.
Under the power of the Bow of Economic Sovereignty, that is the Interest Rate on the US Ten Year Note, ^TNX, and its enforcing authority of The Rider on the White Horse, galloping with greater intensity over planet earth, seen in Revelation 6:1-2, the bond vigilantes, not the Fed, is in control of the interest rates, and will continue to be hiking interest rates, and a rather quick pace.
The failure of credit, that is trust in the monetary policies of the world central banks’ monetary authority has failed, as evidenced by Global Financials, IXG, and Dividends Excluding Financials, DTN, trading lower, and has commenced economic destructionism.
Energy economist Gail Tverberg ofOur Finite World blog posts in Zero Hedge The Connection Between Oil Prices, Debt Levels, And Interest Rates. Because oil prices are too low for companies doing the extraction, we really need higher oil prices. But if oil prices are higher, they will put the country (and the world) back into recession. Interest rates are already very low, it is not possible to lower them further to offset higher oil costs. We are reaching the edge of how much central banks can do to hold economies together. As we have seen, rising interest rates will bring an end to our current equilibrium, by raising costs in many ways, without raising salaries. It will also reduce equity values and bond prices. A rise in the cost of extraction of oil, if it isn’t accompanied by high oil prices, will also put an end to our equilibrium, because oil producers will stop drilling the number of wells needed to keep production up. If oil prices rise (regardless of reason), this will tend to put the economy into recession, leading to job loss and debt defaults. The only way to keep things going a bit longer might be negative interest rates. But even this seems “iffy.” We truly live in interesting times.
Money market funds will soon break the buck, that is the traditional constant $1 Dollar Value, with the result that capital controls will be implemented and banks everywhere will be integrated into the Government, and be known as Government Banks, and in the US, the Bank’s Excess Reserves will be captured, so as to speak, by the US Fed.
Buy and hold investor Eddy Elfenbein posts The Timing Of The Fed’s Rate Increases. Jon Hilsenrath has an interesting piece in today’s WSJ onwhat will happen when the Fed decides to raise interest rates. Traditionally, the Fed has adjusted their target for the Fed Funds rate, but as Richard Fisher, the top dog at the Dallas Fed recently said, “It is my opinion that the fed funds rate is not the right tool going forward.”
The Fed now pays interest on the reserves kept at the Fed, so that could be the new all-important rate. The hitch is that there’s now a lot of money in short-term money market funds that are outside the banking system. Here’s Hilsenrath: To address that problem, the Fed is experimenting with another lever. It is conducting trades—called overnight reverse repurchase agreements—directly with nearly 100 money-market funds and other financial institutions. Through reverse repos the Fed pays interest to these nonbank entities.
In theory, the reverse repo rate and interest rate paid to banks on reserves could become the Fed’s new benchmark interest rates. Ms. Yellen in congressional testimony this month said both rates were part of the Fed’s tool kit. She and others say they are confident that the Fed can tighten credit conditions when needed. But unresolved issues abound.
One worry: As Fed officials move toward a new system, trading in the fed funds market could dry up and make the fed funds rate unstable. That could unsettle $12 trillion worth of derivatives contracts called interest rate swaps that are linked to the fed funds rate, posing problems for people and institutions using these instruments to hedge or trade. Another worry: If they make overnight reverse repo trades more appealing than bank reserves, they could drive activity in short-term lending markets away from banks and toward unregulated money funds.
There will be no raising of the US Feds Funds Rates; it simply will not happen. Banks everywhere will be integrated into regional governments, with the Eurozone and the US being leading examples of economic fascism. Savings and Loans, such as BOFI, Regional Banks, KRE, such as SIVB, HBAN, and RF, the Too Big To Fail Banks, RWW, such as BAC, will be integrated into the banks and be known as the Government Banks, or Gov Banks. The same will hold true in the United Kingdom, where banks LYG, RBS, BCS, HSBC, will be integrated into the Government as well as in the Eurozone where DB, SAN, IRE, NBG, will into what will soon emerge as a One Euro Government.
The dynamos of creditism, corporatism, and globalism are winding down on the failure of credit and breakdown of currencies. The singular dynamo of regionalism will be powering up the age of debt servitude, where regional economic stability, security and stability become the driving factors of economic activity.
Spectacular leveraged investment has come with credit growth far outpacing GDP growth. The only result can be a world wide credit implosion, and global financial system breakdown known as Financial Armageddon, and presented in Revelation 13:3-4. A new era of trust will emerge, that is one where residents of the world’s ten regions come to embrace and in fact give homage to policies of diktat of regional fascists governance, and comply with schemes of totalitarian collectivism in mankind’s seven institutions, as is held forth in the dream given by angels to the Apostle John, while he was in his 90s living on the Isle of Patmos, and presented as Bible scripture in Revelation 13:1-4.
3B) … On Tuesday, May 20, 2014, the world fully entered Kondratieff Winter, the final phase of the Business Cycle, with a credit market reversal and a partial equity market reversal, as investor’s greed turned somewhat to fear, specifically fear that the world central banks’ monetary policies, no longer sustain investment gains and global economic growth, and have made money good investments bad.
Global debt deflation commenced, as currency traders strongly sold the Australian Dollar, FXA, as is seen in the FX Sponsor chart report AUD/JPY Price Breaks Down Below Key Support, which turned Major World Currencies, DBV, parabolically lowerwith the result that Gulf States, MES, Australia, EWA, KROO, New Zealand, ENZL, Thailand, THD, Brazil, EWZ, BRF, and Chile, ECH, traded lower.
With the Australian Dollar, FXA, now following the Euro, FXE, lower, investors are derisking out of debt trade investments, and delveraging out of currency carry trade investments in Global Industrial Producers, FXR, Metal Manufacturers, XME, such as CMC, WOR, GHM, SCHN, GSM, STLD, RS, HAYN, CVR, MLI, CSTM, CRS, Steel Producers, SLX, Aerospace and Defense, PPA, Global Energy Producers, IPW, and Timber Producers and Paper Manufacturers, WOOD.
The sell of Australia’s Bank, WBK, and Germany’s Bank, DB, led Global Financials, IXG, lower.
The May 20, 2014, trade lower in Yield Bearing Investments such as Gulf Dividends, GULF, Australia Dividends, AUSE, Water Resources, PHO, European Small Cap Dividends, DFE, European Financials, EUFN, and Dividends Excluding Financials, DTN, from their high was an epic economic event: the investor, specifically the fixed income investor is going extinct.
The trade lower of Call Write Bonds, CWB, and the turn lower of Defensive Shares, DEF, such as International Energy, IPW, Global Agriculture, PAGG, Electric Utilities, XLU, PUI, from their rally highs, communicates the failure of credit and the termination of profitable equity investing. Of note, Zero Hedge reports Caterpillar Retail Sales Plunge By 13%, Most Since February 2010; Caterpillar, CAT, traded 3.5% lower on the day.
The see saw destruction of fiat investments commented Tuesday May 20, 2014. While World Stocks, VT, and Nation Investment, EFA, may trade higher, Global Financials, IXG, and Dividends Excluding Financials, DTN, as well as Credit Investments, AGG, are trading lower, as the bond vigilantes have control of the Benchmark Interest Rate, ^TNX, which traded lower to 2.51%, but remains above support at 2.49%.
The failure of credit, that is trust in the monetary authority of the world central banks, is beginning to cause the death of currencies, starting first with the Major World Currencies, DBV, such as the Euro, FXE, the Swiss Franc, FXF, the British Pound Sterling, FXB, and the Swedish Krona, FXS. And coups throughout the world, such as in Thailand, and the Ukraine, are starting to cause the dissolution of traditional democratic nation state governance.
Inflationism is turning to destructionism.
The three dynamos of creditism, corporatism and globalism are winding down, on the beginning of failure of trust in the monetary policies of the world central banks.
The singular dynamo of regionalism is starting to power up trust in regional regional fascism, as people come to trust in diktat for regional security, stability and sustainability; a case in point is the example of the technocratic governance of the Troika in Greece.
Nick Beams of WSWS writes The Australian Budget And The Dictatorship Of Finance Capital. The doctrine espoused by Hockey for ending the “age of entitlement” expresses the material interests of finance capital. And Mike Head of WSWS posts Australia: Labor Opposition Pledges To Match Government’s Budget Austerity. Shadow treasurer Bowen boasted that Labor had a proven track record of imposing the dictates of finance capital to slash public spending.
Junk Bonds, JNK, traded lower from what is likely its rally high. Aggregate Credit, AGG, traded higher on the day; yet the trade lower in Aggregate Credit, AGG, from its May 15, 2014 high, together with the beginning of the trade lower in Global Financials, IXG, and Dividends Excluding Financials, DTN, is of historic importance: the world has entered into Kondratieff Winter.
Look for all Equity Investments, and all Yield Bearing Investments, to begin to trade lower with Credit Investments, which are now trading lower.
The world has passed through an economic inflection point, as the investor’s trust in the monetary policies of the world central banks is beginning to fail.
Fear is beginning to replace greed; specifically the fear that the monetary policies of the world central banks have crossed the rubicon of sound monetary policy and is starting to make “money good” investments, such as the European Small Cap Dividends, DFE, the Eurozone Stocks, EZU, the European Financials, EUFN, and Nation Investment in Eurozone Nations, such as Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, that is the PIGS, bad.
The world has pivoted from the age of currencies and the age of credit … and into the age of diktat and the age of debt servitude.
On going disinvestment of currency carry trades and debt trades will introduce the much feared economic deflation on a worldwide scale.
Peak credit experience in fiat money came Tuesday May 13, 2014, with the Fidelity Mutual Fund containing Distressed Investments, FAGIX, yielding 4.5%, topping out in value at 10.15. Its terrific rise documents that the Banker Regime skill in ruling in a debt based money system.
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 FAGIX, the process of Global ZIRP commenced, and the 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, credit has been liberally available. “There’s more capital out there than we can consume, a huge wall of money”, as Bloomberg quotes Shell’s CEO saying.
Patriot and Nature Economist Elaine Meinel Supkis writing in Steve Forbes Talks About Sovereign Wealth With Professor Prasad In A Childish Way, makes this astute comment “Third world countries at the mercy of the great empires have to buoy up their currencies lest currency traders ravage them. But this isn’t the problem Japan faces. Japan faces the problem of a strong currency and the only reason they hoard US debt and dollars is to keep the yen artificially weak against the dollar and the euro so they can export more to both. They make huge profits this way compared to third world countries.”
As stated earlier in this article, beginning on May 16, 2014, an unwinding of the Euro Yen Currency Carry Trade, that is EURJPY in nation investment in Ireland, EIRL, Greece, GREK, Italy, EWI, and Eurozone Stocks, EZU, as well as a derisking out of the European Financials Debt Trade, EUFN, introduced a see saw destruction of fiat wealth, terminated all liberal things worthy of trust, such as a university education, home buying, and fiat wealth investing, and introduced the age of debt servitude
Hence forth and forevermore Jesus Christ operating in the economy of God, a concept presented by the Apostle Paul in Ephesians 1:10, having wound up peak experience in carry trade investing, will be unwinding all global trade, nation investment, dividend investing, and traditional banking investment.
Investment in Japan, EWJ, and its Automobile Manufacturers TM, and HMC, and its Banks, SMFG, MTU, MFG, has taken a beating as is seen in their combined ongoing Yahoo Chart with Global Growth ETF, DNL, communicating that the smart investor was short these investments, as the global debt trade and currency carry trade, was winding up.
Its uncertain in my mind, what will happen to Japan.
But I know, what is going to happen to the Bilderbergers. According to Bible prophecy of God, that is the sovereign Lord God of the Universe, ordained that the Beast Regime’s totalitarianism be the prevailing form of economic activity, replacing US crony capitalism, the Eurozone’s socialism, and Chinese communism; this is foretold in Revelation 13:1-4, as well as Daniel 2:20-45. Their sovereign wealth will be the empires they carve out, through cunning and one upmanship, in each of the world’s ten regions. Jason Ditz of Antiwar reports Ukrainian Billionaire Rinat Akhmetov Bid to Stop Separatists Fails
New seigniorage and new sovereigns are coming for the new economic age. Seigniorage, that is moneyness, will come from the regional bartering and also the mandates of regional sovereigns, that is regional fascist leaders. Zero Hedge reports China Signs Non-dollar Settlement Deal With Russia’s Largest Bank. And Mike Head of WSWS reports Financial Ratings Agency Cracks The Whip On Australia’s Budget. Standard & Poor’s said Australia’s triple-A credit rating was at risk if the government did not overcome the popular opposition to the budget. And CNBC reports Putin Slams Sanctions, Seeks Eurasian Union. The Eurasian Economic Union would comprise former Soviet states Belarus and Kazakhstan as well as Russia – and possibly also Armenia, Kyrgyzstan and Tajikistan, he told CNBC during a session Friday at the St. Petersburg International Economic Forum.
The replacement for the Banker Regime’s Money Manager Capitalism is the Bad Bitch of Totalitarianism; she is described Revelation 17:3-4, the Scarlet Harlot who rides the Scarlet Horse. This means that the Bilderbergers will become tightly knit with regional fascists in installing policies of diktat in regional governance in each of the world’s ten regions, and establishing schemes of control unifying all seven human institutions within each region.
Jeff Mackey of Breakout reports Retailer Samples Slides As Strip Malls March Toward Extinction. Shares of Staples, SPLS, are getting reamed this morning after the struggling office supply retailer announced first quarter earnings fell short of analyst estimates and cautioned for the current period.
USA Today reports General Motors Slips Amid Recall Of Another 2.4 Million Vehicles, $200M Charge. The General Motors, GM, recall centers around four separate safety flaws.
The WSJ reports Maersk Raises Forecast for 2014 Danish shipping and oil conglomerate A.P. Møller-Maersk A/S Wednesday upgraded its outlook for the full year after a 62% increase in first-quarter net profit, as aggressive cost cutting outweighed falling freight rates at its container business. The company, which operates the world’s largest-capacity container-shipping fleet, raised its forecast of full-year underlying earnings to about $4 billion from an earlier estimate of $3.6 billion.
Bloomberg reports BlackRock’s Fink Says Housing Structure More Unsound Now. BlackRock Inc, BLK, Chief Executive Officer Laurence D. Fink said the U.S. housing market is “structurally more unsound” today than before the financial crisis because it depends more on government-backed mortgage companies such as Fannie Mae and Freddie Mac. “We’re more dependent on Fannie and Freddie than we were before the crisis,” Fink said today at a conference held by the Investment Company Institute in Washington, noting that he was one of the first Freddie Mac bond traders on Wall Street.
3C) …. On Wednesday, May 21, 2014, World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Dividends Excluding Financials, DTN, traded higher on the day, as bond vigilantes have called the Benchmark Interest Rate, ^TNX, higher to 2.54%, as Bespoke Investment Group reports Ten Year Sticking To The Script On Minutes Day. with the result that Aggregate Credit, AGG, traded lower on the day, and resides lower from its May 15, 2014 high.
World Stocks, VT, traded higher on the day, as two of the most sold off sectors, Solar Energy, TAN, Nasdaq Internet, PNQI, Global Consumer Discretionary, RXI, Internet Retail, FDN, Pharmaceuticals, PJP, Media, PBS, Semiconductors, SOXX, Resorts And Casinos, BJK, Social Media, SOCL, Nasdaq Internet, PNQI, Media, PBS, rallied higher. Energy Production, XOP, and International Energy, IPW, traded higher as Oil, USO, popped higher. Of note, Netflix, NFLX, traded parabolically higher.
Nation Investment, EFA, traded higher on the day as Ireland, EIRL, rallied, leading the European Nations higher. Emerging Europe, ESR, and Russia, RSX, ERUS, rallied higher, leading Turkey, TUR, Gulf States, MES, UK Small Caps, EWUS, Vietnam, VNM, Thailand, THD, China, YAO, Columbia, GXG, Emerging Africa, GAF, higher, which induced Global Nation Investment Flagships, Sweden, EWD, Denmark, EDEN, and South Africa, EZA, to new rally highs. Small Cap India, SCIN, traded still higher. However, German Small Caps, GERJ, and Philippines, EPHE, traded lower.
India Earnings, EPI, Investment Bankers, KCE, and Stockbrokers, IAI, traded higher on the day, leading Global Financials. IXG, higher.
Dividends Excluded Financials, DTN, traded higher on the day.
In Yield Bearing Sectors, Shipping, SEA Traded higher. American Realty Capital Partners, ARCP, led Retail REITS, Industrial Office REITS, FNIO, and Residential REITS, REZ, lower; while Mortgage REITS, REM, traded higher, but remains below its market top.
Aggregate Credit, AGG, continued to be led lower from its May 15, 2014, high, by the 30 Year US Government Bonds, EDV, and the US Ten Year Notes, TLT. Junk Bonds, JNK, recovered from yesterday’s trade lower; yet these now reside below their recent market high. While Mortgage Backed Bonds, MBB, traded to a new rally high.
The Swiss Franc, FXF, traded strongly lower, but there was no corresponding change in Switzerland, EWL.
Bloomberg posts Europe’s Debt Time Bomb. And ZH posts Italian Bad Loans Surge 26% YoY To Record High (59th Month In A Row. And ZH posts Peripheral European bond Risk Surges To 2 Month High. And Xinhua posts Portuguese Debt Rises To 132.4% of GDP. And Shaun Richards posts Cocaine And Prostitution Will Not Rescue Italy From Its Economic Depression. One of the themes of this blog has been that the economy of Italy has struggled through the credit crunch period as the initial impact was added to by the Euro area crisis. Unfortunately this exacerbated the issues raised by the fact that in the supposedly good times that preceded it, Italy only managed weak economic growth of around 1% per annum.
3D) …. On Thursday, May 22, 2014, Equities rallied but closed below their May 13, 2015 high.
World Stocks, VT, traded higher on the day, but resides below its May 13, 2014 high, as a strong rally drove Solar Energy, TAN, Transportation, XTN, Housing, ITB, US Infrastructure, PKB,Internet Retail, FDN, Software, IGV, Small Cap Pure Value, RZV, Networking, IGN, Pharmaceuticals, PJP, Semiconductors, SOXX, Resorts and Casinos, BJK, Small Cap Pure Growth, RZG, Internet Retail, FDN, Automobiles, CARZ, Small Cap Industrials, PSCI, Media PBS, Design Build, FLM, Biotechnology, IBB, Global Consumer Discretionary, RXI, Consumer Services, IYC, Industrial Miners, PICK, Copper Miners, COPX, and Retail, XRT, higher on the day.
I hope you were not one of the those invested in the Asset Managers, such as BLK, or Regional Banks, KRE, high beta ETFS, such as SOCL, TAN, IBB, FDN, PBS, IGN, SKYY, IGV, PNQI, PKB, or in the credit sensitive Small Cap Pure Revenue, RZV, and Small Cap Pure Growth Stocks, RZG, over the last two months, as is seen in their combined ongoing Yahoo Finance Chart. Smart investors shifted out of these and Defensive Stocks, DEF, and into debt trade investments, such as Emerging Market Bonds, EMB, and currency carry trade investments, such as Emerging Market Small Caps, EWX.
Nation Investment, EFA, traded higher on the day, but resides below its May 13, 2014 high. Emerging Markets EEM, EMIF, traded to a new rally high, as India, INP, SCIN, jumped to new rally highs as currency traders took the Indian Rupe, ICN, and The Brazilian Real, BZF, higher, causing Emerging Market currencies, CEW, to trade new rally high. Turkey, TUR, traded to a new rally high. Gulf States, MES, UK Small Caps, EWUS, Indonesia, IDX, Argentina, ARGT, rallied higher. Taiwan, EWT, traded to a new rally high. China, YAO, ECNS, CQQQ, and Canada, EWC, rallied. Flagship nations, South Africa, EZA, and Denmark, EDEN, traded to new all time highs. Italy, EWI, and Thailand, THD, traded lower.
Global Financials, IXG, traded higher on the day, but resides below its May 13, 2014 high, as India Earnings, EPI, traded to a new rally high. Emerging Market Financials, EMFN, traded to a new rally high, as Chinese Financials, CHIX, Far East Financials, FEFN, India Earnings, INP, Regional Banks, KRE, Stockbrokers, IAI, and Investment Bankers, KCE, rallied higher.
Dividends Excluding Financials, DTN, traded higher on the day, but resides below its May 13, 2014 high.
Yield Bearing Sectors trading to new rally highs included, Mortgage REITS, REM, Global Utilities, DBU, such as China’s HNP, Shipping, SEA, such as KEX, TK, and Energy Partnerships, EMLP, AMJ, Leveraged Buyouts, PSP, rallied.
Investors drove debt trade investment Credit Provider, United Rentals, URI, to a new rally high, and drove Manufactured Housing, CVCO, strongly higher.
Aggregate Credit, AGG, traded lower from its May 15, 2014 high, being led lower by 30 Year US Government Bonds, EDV, US Ten Year Notes, TLT, and Junk Bonds, JNK.
Volatility ETFs, VXZ, VIXM, VIIZ, as well as VXX, VIXY, traded higher from market lows. And Inverse Volatility ETFS, ZIV, XIV, SVXY, traded lower from market highs. Zero Hedge reports Market Instability Rising Fast As “Limit Up, Limit Down” Halts Surge.
3E) …. On Friday, May 23, 2014, World Stocks, VT, traded to a new all time high, as Home Builders, ITB, US Infrastructure, PKB, Solar Energy, TAN, Transportation, XTN, Global Industrial Producers, FXR, Social Media, SOCL, Semiconductors, SOXX, Global Consumer Discretionary, RXI, Nasdaq Internet, PNQI, Media, PBS, Automobiles, CARZ, Pharmaceuticals, PJP, Consumer Services, IYC, Internet Retail, FDN, Software, IVG, Biotechnology, IBB, Resorts and Casinos, BJK, and Small Cap Growth, RZG, traded higher on a recovery rally, what is properly termed the Netflix recovery rally.
Energy Production, XOP, such as MTDR, CRK, traded parabolically lower as OilPrice.com posts The California Shale Bubble Just Burst.
Jesse presents SP 500 Daily Charts: Sellers of systems, forecasts, and lucky amulets displaying the Three Flag Rally Ending Salute candlestick pattern. Once can follow the disintegration of the S&P 500 with this Finviz Screener of its leading stocks.
Nation Investment, EFA, traded higher matching its previous high. Emerging Markets, EEM, and Emerging Market Small Caps, EWX, traded to new rally highs.
India, INP, Emerging Europe, ESR, Russia, RSX, Russia Small Caps, ERUS, China, YAO, China Real Estate TAO, rallied higher. Finland EFNL, Denmark, EDEN, Egypt, EGPT, India Small Caps, SCIN, traded higher to new rally highs; Gulf States, MES, recovered strongly. Brazil, EWZ, traded lower on a lower Brazilian Real, BZF. Sweden, EWD, traded lower on a plummeting Swedish Krona, FXS.
Global Financials, IXG, traded higher, but remained below its May 13, 2014, high, as Regional Banks, KRE, China Financials, CHIX, and Stockbrokers, IAI, rallied, and Canada’s Banks, BNS, RY, BMO, blasted higher.
Dividends Excluding Financials, DTN, traded lower, and remains below its May 13, 2014, high.
In Yield Bearing Sectors, Shipping, SEA, and Mortgage REITS, REM, traded to new rally highs; Global Real Estate, DRW, China Real Estate, TAO, Gulf Dividends, GULF, and Leveraged Buyouts, PSP, recovered strongly.
The Interest Rate on the US Ten Year Note, ^TNX, closed the week at 2.54%, up from last week’s close of 2.52%, yet Aggregate Credit, AGG, traded lower from its market top, being led lower by the 30 Year US Government Bonds, EDV, and the US Ten Year Notes, TLT, higher on the day. Other Credit Investments trading lower this week included Global Corporate High Yield Bonds, HYXU, Corporate Long Duration Bond, LWC, PICB, Corporate Bonds, LQD, Municipal Bonds, MUB, Insured Municipal Bond, PZA, as is seen in their combined ongoing Yahoo Finance Chart. Junk Bonds, JNK, traded higher on the day, but unchanged at its recent high.
Emerging Market Bond, EMB, Emerging Market Local Currency Bonds, EMLC, and Mortgaged Backed Bonds, MBB, ended the week higher.
Al Yoon of the WSJ reports “The latest place where investors are taking on more risk in exchange for apparently meager returns: the U.S. housing market. Bond buyers on Tuesday jockeyed to get a piece of $1.6 billion of riskier Fannie Mae securities, enabling the government-backed mortgage company to twice cut the yields it offered on the debt. The offering is Fannie’s third sale of so-called risk-sharing certificates that enlist investors to pay for potential defaults on the home loans Fannie guarantees. The riskiest of the securities, linked to loans to home purchasers who paid as little as 3% cash upfront, drew 19 times the bids necessary to complete the sale before yields were cut, said people familiar with the offering.”
The fiat money of democracies is dying. The diktat money of regional governance is rising to be the wheels on which economies run.
Investors are beginning to fear that the debtors will no longer repay the creditors, and as a result the fiat of money is no longer sovereign. Sovereign currencies, such as the Swedish Krona, FXS, joined the league of other Major World currencies, DBV, that is the Euro, FXE, and the Swiss Franc, FXF, in trading lower, while Emerging Market Currencies, CEW, led by the Indian Rupe, ICN, rallied to new market highs.
Out of soon coming credit collapse, and global financial system breakdown, that is Financial Apocalypse, seen in Revelation 13:3-4, people will come to trust in the new fiat, that being the sovereign currency of regional diktat.
Just as one had economic experience in Euros, Swiss Francs, in the age of credit, so one will have economic experience in Regional Diktat, such as Putintat, that is the word, will and way of Vladimir Putin, to establish stability, security and sustainability in Eurasia.
The death of currencies means one is decreasingly free to choose; and the failure of trust means one will be increasingly compelled to comply.
The week ending May 26, 2014, Junk Bonds, JNK, traded lower from what is likely its rally high. Aggregate Credit, AGG, traded higher on the day; yet the trade lower in Aggregate Credit, AGG, from its May 15, 2014 high.
And the week ending May 26, 2014, the beginning of the trade lower in Global Financials, IXG, and Dividends Excluding Financials, DTN, is of historic importance: the world has fully entered into Kondratieff Winter.
In the news
Denver Post reports Inventory Of For Sale Homes Down 17.5 Percent In Metro Denver. The inventory of homes for sale dropped in metro Denver for the fifth consecutive month in April, falling 17.5 percent from April 2013, one of 21 metro markets where inventories dropped, according to Zillow.
The Zillow Home Value Index, the midpoint of estimated home values for an area, for metro Denver was $248,000 in April, compared with $170,200 nationally. Home values were $257,900 in Denver; and $249,600 in Lakewood.
Zillow chief economist Stan Humphries said in a statement that first-time homebuyers are ready to buy, but they can’t because of the lack of homes for sale in their price range.
Spencer Jakab of the WSJ posts The Culprit In The Slowdown In Housing Affordability, is median new-home prices up by over 11% year-over-year, and 30-year mortgage rates a full percentage point higher than in March 2013.
4) … In fulfillment of bible prophecy, the Nephilim are returning; meet the new heroes, and men of stunning capability.
Genesis 6:4 relates The Nephilim were on the earth in those 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.
NBC reports Scientists Create Animals That Are Part Human. And Extreme Tech posts First Living thing With Alien DNA Created.
End of the American Dream posts The Era Of Chimeras: Scientists Fearlessly Create Bizarre Human/Animal Hybrids. Did you know that scientists are creating cow/human hybrids, pig/human hybrids and even mouse/human hybrids? This is happening every single day in labs all over the western world, but most people have never even heard about it. How would you interact with a mouse that has a brain that is almost entirely human? These are the kinds of questions that we will have to start to address as a society as scientists create increasingly bizarre human/animal hybrids.
5) … Is a holographic ecosystem under development?
VR News reports HP Develops A 3D Display Which Produces Hologram Like Videos.
An inquiring mind asks, is a holographic communication ecosystem under development, where an observer can track and respond to individual’s movement.
Will hologram technology provide a holographic experience to both watch a projected image and to be observed? Is a connected life, that is, a digital life, human network, visual networking, and telepresence experience, under development?
The Apostle John in Revelation 13:14-15, presents that although most of the world will initially hail the Sovereign as a political savior, at three-and-a-half years into a middle east peace covenant, he will revoke the pact by invading Israel and establishing Jerusalem as his world capital. He will outlaw all religions, except the worship of himself. And a hologram, that is a holographic image of himself, will be empowered to speak and “cause those who refuse to worship it to be killed”.
Being half way through the Tribulation, this will introduce The Great Tribulation, at which time,a remnant of God’s people with find sanctuary in a wilderness place on Earth, for a time, times, and half a time, that is the last forty-two months of the Beast’s rule.
6) … Investment strategies
With the failure of trust in the world central banks’ monetary authority to stimulate investment gains, and economic growth the bond vigilantes are exercising ever greater control over the Benchmark Interest Rate, ^TNX, and this has started derisking out of debt trades, such as the European Financials, and delveraging out of currency carry trades, such as Nation Investment in Italy, EWI, 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 will be established by regional fascism to be the lynchpin of all things economic, with the result that soon an investment demand for gold, GLD, will commence commence very soon, taking the price higher from $1,290.
Speculation has washed out of Silver, SLV. Investors have come to recognize the truth, there is currently no investment demand for physical silver, as it is now a commodity used in the production of economic goods. Of note, Gold, GLD, charts reveal that gold has been outperforming the price of silver since February 15, 2014. The price of Silver, SLV, is back to trading at its February 15, 2014 level.
Yahoo Finance communicates that the Silver Miners, SIL, such as AG, HL, SLW, PAAS, are the most overvalued of the Precious Metal Mining Stocks, and are a particularly bad investment choice, as they have a PE of 34, and since March, 2014, the silver miners have disconnected from the price of silver, Given this high level of price to earnings, those who are invested in the silver mining stocks, must believe that the stocks have explosive potential for investment demand coming from hard assets once stocks tank in value.
I believe that Gold Bullion, such as The British Sovereign Gold Coin, is now the best value in preserving wealth, and that one should dollar cost average into taking possession of it. Yet many people object to this as investment, citing they pay a lot for a small amount of something, and relate concerns over safe storage. Gold investments should be placed in a gun safe, and be place on one’s home insurance policy.
With the May 23, 2014, rally in Transportation Stocks, XTN, Automobile Dealerships, ABG, LAD, the Airlines, such as DAL, FDX, ALK, LUV, Truckers, such as JBT, SAIA, ODFL, UHAL, R, CNW, and Railroads, such as UNP, TRN, are peaking, up and over the Industrials, XLI, in value. The market direction trading pairs, XTN, XLI, and IYJ, IYT, are indicating a market top in World Stocks, VT, has been achieved.
Of note aggressive trading in Industrial Chemical Producer, LYB, Consumer Goods Manufacturer, UN, International Energy Producer, RDS-B, Publisher, ENL, Semiconductor Manufacturer, NXPI, and Leasing Company, AER, has Netherlands, EWN, taken to a new rally high.
Fiat money, defined as the combination of Major World Currencies, DBV, and Emerging Market Currencies, CEW, together with Aggregate Credit, AGG, is literally dying. Out of soon coming Financial Apocalypse, seen in bible prophecy of Revelation 13:3-4, diktat money, defined as the mandates of regional fascist leaders for regional security, stability, and security, will underwrite all economic activity.
The short selling opportunity of a lifetime has arrived, as the week ending May 26, 2014, Junk Bonds, JNK, traded lower from what is likely its rally high. Aggregate Credit, AGG, traded higher on the day; yet the trade lower in Aggregate Credit,AGG, from its May 15, 2014 high … And as the week ending May 26, 2014, the beginning of the trade lower in Global Financials, IXG, and Dividends Excluding Financials, DTN, is of historic importance: the world has fully entered into Kondratieff Winter.
Look for High Yielding Debt, JNK, LWC, EU, EMB, HYD, EMLC, EMCD, BABS, HYXU, PZA, to soon trade lower in value. And look for Market Leading Banks and Financial Institutions to begin to rapidly fall lower in value; these include, BOFI, IBN, SAN, BSBR, ITUB, BAP, BCA, SHG, WBK, GGAL, BMA, IX, CIB, RY, BNS, PUK, GNW, TMK, BANF, CBIN, TFSL, SFNC, CNS, LM, BR, VOYA.
Business Insider reports Here Are The 49 Stocks That Big Hedge Funds Love Most. There are likely many short selling possibilities here.
The transportations, XTN, and the Semiconductors, SOXX, are short selling opportunities. The Terrific Five Nations, EFNL, EDEN, EGPT, SCIN, MES, are short selling opportunities. And the Energy Pipelines, MMP, SEMG, TRGP, SXL, ACMP, ETE, OILT, MPLX, LNG, OKS, are as well.
Those who are into short selling may want to consider using a portfolio of Inverse Market ETFs as basis for collateral. One of these might be JGBS, that is a short of the Japanese Sovereign Debt. A portfolio might consist of the STPP, XVZ, EUO, YCS, CMD, DNO, MLPS, SBB, SBM, EFZ, YXI, REK, DDG, MYY, EUM, SAGG, DTYS, JGBS, GLD, GYEN, GEUR, GGBP, HDGI, HDGE.
7) … The foundations of economic education are established in the home, and are formed in Wildism, in Libertarianism, in Totalitarianism, in Christ or some other ism, that is state of being.
This inquiring mind asks how do you feel about the remarks of Janet Yellen presented by Robert Wenzel in Economic Policy Journal article Yellen Praises Bernanke at Yankee Stadium Commencement Speech. Fed Chairdelivered a speech this morning to the graduating class of New York University. The commencement was held at Yankee Stadium. During her remarks she praised her predecessor at the Fed, Ben Bernanke
“My predecessor at the Fed, Chairman Ben Bernanke, demonstrated such courage, especially in his response to the threat of the financial crisis. To stabilize the financial system and restore economic growth, he took courageous actions that were unprecedented in ambition and scope. He faced relentless criticism, personal threats, and the certainty that history would judge him harshly if he was wrong. But he stood up for what he believed was right and necessary. Ben Bernanke’s intelligence and knowledge served him well as Chairman. But his grit and willingness to take a stand were just as important. I hope you never are confronted by challenges this great, but you too will face moments in life when standing up for what you believe can make all the difference.”
An inquiring what is money? and what is fiat money? and asks what is economics? I encourage a read of TC Allen who asks What is Money?
In coming to a definition of money, one should ask what is economics, and what is an economy, as all three are intertwined.
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; its value is determined by marketplace stakeholders; debt based money bears interest, which is defined as the cost of money. Furthermore, money is that thing that people accept as payment for their labor and products.
The word fiat comes from Latin and means let it be done; thus fiat is the mandate of a sovereign authority.
The debt based money system known as fiat money, defined as the mandates of the Banker Regime, was designed for investment gain, was used throughout the world community, was widely accepted in payment for goods and services, and in discharge of obligations; served as a measure of value, and was a storehouse of value.
Fiat money came to an end on May 13, 2014, with the failure of credit, that is trust in the world central banks to provide stimulus for continued investment gains and global economic growth, as evidenced by the trade lower in the Euro, FXE, and the British Pound Sterling, FXB, and the trade lower in Italy, EWI, and Italy’s Debt, ITLY, reflecting the investor’s fear that the monetary policies of the world central banks had crossed the rubicon of sound monetary policy and made “money good” investments bad.
CNBC reports European Bonds Signaling Trouble? The quick move higher in the yields of Europe’s weakest sovereigns from historic lows may be just the beginning and on the edges it could start to affect other low-rated credits where investors have hunted for yield, such as US Junk Bonds.
It was the quick move higher in Italy’s Sovereign Yield, reported by Global Risk Monitor, is seen in Italy’s Sovereign Debt, ITLY, trading lower, on May 15, 2014; this caused Italy, EWI, to trade strongly lower.
The new debt based money system, known as diktat money, commenced as peak moral hazard wealth was obtained, reflected in Aggregate Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, topping out in value; and World Stocks, VT, Nation Investment, EFA, Dividends Excluding Financials, DTN, trading lower in value. As foretold in Revelation 13:1-4, diktat money has its origins out of waves of Club Med, read PIGS, sovereign, banking, and corporate insolvency.
Diktat money is defined as the mandates of the Beast Regime, specifically regional fascist leaders; it is designed to establish regional security, stability, and sustainability, and is centered around regional framework agreements, as leaders meet in summits, to renounce national sovereignty and announce regional pooled sovereignty as is seen in the Zero Hedge report The Birth Of Eurasia – Russia & China Do Pipelineistan. And Bloomberg reports Russia, China Sign $400B Gas Deal After Decade of Talks.
The end of empire has commenced. We are witnessing the beginning of the end of the US Dollar as the International Reserve Currency and the beginning of US Dollar Hegemony. This is fulfillment of the Statue of Empires Bible prophecy as foretold in Daniel 2:25-45, where the last of the two global superpowers, that is the British Empire, and the US Dollar Hegemonic Empire, dissolve away; and in their place the Ten Toed Kingdom, with toes of iron diktat and clay totalitarian collectivism, rises to rule the world; this monster is the same as the Beast Regime of Revelation 13:1-4, which rules in diktat in each of the world’s ten regions and occupies in all of mankind’s seven institutions.
The British empire and the age of manufacturing was built upon oil. The US Dollar Hegemonic Empire was built upon the Petro Dollar; and that resource is quickly evaporating as International Man posts The Collapse Of The International Monetary System & Petrodollar, Part 2.
The Beast Regime will be very much a type of Revived Roman Empire, in that it has Latin speaking roots and will have a European ruler, seen in Revelation 13:5-10, much like Charlemagne, who will eventually rise to rule the rule the entire world from Jerusalem as is foretold in Daniel 9:25-27.
Dvsoul.org.uk posts World History And The Statue Of Empires: Feet of Iron And Clay History shows that the actual Roman kingdom due to several wars, rebellions and many other factors within itself was divided into ten nationalities. As we know each of these also went on to colonise nations across the world and pretty much divided the nations of the world amongst themselves. Rome’s existence is everywhere if you bother to investigate or research the issue. Rome, though may be officially no more, it’s part of every modern society today. It confirms the biblical prophecy of the Feet of Iron and Clay as we see Rome disintegrate and mingles across the world mixing with all humankind. A good study of our laws, buildings, policies and many other aspects of governance is still Rome.
All be economists. Everyone has an an economy, which is defined as the life experience that comes from the administration of the credit, that is trust, and trade, that comes from the ethics of 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, as well as by education in one’s home.
Individuals have ethics, that is principles of relationships with others, and manifest these in speech and behavior, which communicates their values and establishes their identity; i.e. a Wild One, a Liberal, a Libertarian, a Totalitarian, or a Christian.
Elaine Meinel Supkis writes of the wilding of the black culture Mrs. Obama Complains About Increasing ‘Resegregation’ In Schools.
And Ms Supkis writes The Rising Tribe Of The Working Stiff. The rise of UKIP unsettles Labour, Tories and Liberal Democrats in England elections. Increasingly, British politics now is a three way battle. And if they let in even more Eastern Europeans, it will be eventually won by UKIP out of sheer desperation. In the US, the displacement of citizens is cruelly celebrated. The rulers who want no unions and low wages love this flood of aliens. Ditto with the rulers in England. Little worry about these people also causing local street crimes is due to the rich living in basically what are castles surrounded by armed guards. So long as their bank accounts continue to bulge bigger and bigger, they don’t give a damn. The US doesn’t have a UKIP party to appeal to the working stiffs. Instead, we have the dreary left/right game that has the leaders of both wings constantly betraying their followers and playing mind fuck games galore.
Jordan Shelton of WSWS posts The New Aristocracy In Britain. Britain’s super-rich elite now control wealth equivalent to one third of total economic output, or £519 billion. And Julie Hyland of WSWS posts 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. Citywire posts The Billionaire 100 Club: Peter Hargreaves’ Inexorable Rise. The number of billionaires living in the UK has exceeded 100 for the first time in history with Peter Hargreaves’ relentless rise up the wealth charts continuing
Robert Wenzel posts Sunday Morning Essay: The Objectives of Economic Education Extracts from a memorandum (1948) to Leonard E. Read, founder and president of the then newly established Foundation for Economic Education; previously published only in Spanish translation. The Objectives of Economic Education ByLudwig von Mises.
The struggle between the two systems of social organization, freedom and totalitarianism, will be decided in the democratic nations at the polls. As things are today, the outcome in the United States will determine the outcome for all other peoples too. As long as this country does not go socialist, socialist victories in other parts of the world are of minor relevance.
Some people, among them very keen minds, expect either a revolutionary upheaval of the communists, a war with Russia and its satellites, or a combination of both events.
However this may be, it is obvious that the final result depends on ideological factors. The champions of freedom can win only if they are supported by a citizenry fully and unconditionally committed to the ideals of freedom. They will be defeated if those molding public opinion in their own camp are infected with sympathies for the totalitarian program. Men fight unto death for their convictions. But nobody is ready to dedicate himself seriously to a cause which in his eyes is only 50% right.
Those who say: “I am not a Communist, but . . . ” cannot be counted upon to fight rigorously for freedom and against Communism.
In Russia, in 1917, the Bolsheviks numbered only a few thousand men. From the arithmetical point of view their forces were negligible. Yet, they were able to seize power and beat into submission the continue reading.
Jesus Christ is the ism of God, that is the divine nature of the Godhead. The experience of Him is one of holiness and of truth, this being presented in Hebrews 1:3, and John 14:7. His Apostle Peter, writes of addition of the elect in 2 Peter 1:5-7, “Add to you faith virtue, to virtue knowledge,to knowledge self-control, to self-control perseverance, to perseverance godliness, to godliness brotherly kindness, and to brotherly kindness love”; it is out of this practice that one has identity as a Christian and life experience in Christian ethics. Perhaps one might enjoy reading Witness Lee The Triune God In His Economy.
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 investment choice and the age of credit into the age of diktat and the age of debt servitude.
May 13, 2014, was a pivot point in mankind’s economic history. Major World Currencies, DBV, such as the Euro, FXE, and then on May 20, 204, the Australian Dollar, FXA, began trading lower.
Having produced peak Nation Investment, EFA, on Friday May 23, 2014, there are no investable markets anymore. Ireland,EIRL, was a 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, EIRL, Italy, EWI, and Greece, GREK, are the leading the way lower into the age of debt servitude, via the failure of the Euro Yen, EUR/JPY, carry trade.
Australia, EWA, was a crown jewel of Uranium Mining, URA, Coal Mining, KOL, and Industrial Mining, PICK, and in Dividend Investing, GULF, coming from debt investing and currency carry trade investing in the age of investment choice.
Now with Australia’s Bank, WBK, and its iron ore miner, BHP, trading lower, this southeast asian country is joining the Eurozone Nations, in leading Nation Investment, EFA, lower, via the failure of the Australian Dollar Yen, AUD/JPY, carry trade. Nadia Simmons & Przemyslaw Radomski post in Safehaven Forex Trading Alert: AUD/USD – Double Trouble.
The bond vigilantes have control of interest rates globally and have favor from the Rider on the White Horse, that is First Horseman of Apocalypse, seen in Revelation 6:1-2, who yield the Bow of Economic Sovereignty effecting economic coups throughout the world, and their efforts are resulting in debt deflation.
The age of investment choice, and the age of credit, was based upon sovereign currencies, and they are beginning to be debased as sovereign debt becomes dishonored by the Benchmark Interest Rate, TNX, trading higher from 2.49%. Under ZIRP, inflationism came to a zenith on May 13, 2014. The result will be the dissolution of traditional sovereign authority, and the establishment of regional pooled sovereignty.
The Bond Vigilantes in calling the Benchmark Interest Rate, ^TNX, higher from 2.49%, and in steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening once again, is introducing destructionism, and the age of diktat and the age of debt servitude, where there sovereign currencies are falling to the diktat of sovereign regional leaders, whose economic and monetary authority comes from regional framework agreements, and not any traditional law such as constitutional law or international law, or historical precedent.
Jesus Christ will in relatively short time accomplish his purpose of establishing absolute poverty, with the activity of the Beast Regime, of Revelation 13:1-4, replacing the activity of the Creature from Jekyll Island, as foretold in Daniel 7:7.
And Elaine Meinel Supkis writes of economic coups as well; these are the work of the Rider on the White Horse of Revelation 6:1-2. One of the more interesting forces at work today is the confluence of the Hubbert Energy Peak which is very real and is causing energy prices to rise relentlessly while searching for new sources of CO2 producing energy runs very high while at the same time, the very same people launching energy coups and wars are yelling about how we are in a CO2 crisis and the peasants have to stop consuming energy or else the entire planet will burn up!
The fact that Russia now controls half of the Black Sea has enraged NATO Russia Now Owns Half Of Black Sea, NATO Enraged, Becomes More Violent. She writes Russia wants answers on NATO troop movement in Eastern Europe as the US tries to sneak in troops there while whining about Russian troops inside Russia’s borders. Note that the US is several thousand miles away while Russia is inside their own territory.
The one flaw in this insidious plan to tax energy used by peasants very high while fighting ferociously to take over world energy markets via hook or crook, is that the planet refuses to heat up. It is so cold here yesterday, I had a fire going yet again and it is cool today and tomorrow and the Hudson Bay is totally locked in ice still and summer is around the corner.
At least the polar bears are happy, no? Note that the Arctic in general is still frozen. Sea Ice News Volume 5 #2 – NOAA forecasts above normal Arctic ice extent for summer 2014 which again shows us that global warming isn’t happening so much anymore. This complicates the elites’ ability to shove the US peasants off the energy cliff.
Putin has limited powers to control world events especially this gigantic conspiracy of the very rich to simultaneously scream about CO2 killing us while killing everyone fighting over control of energy profits: Crimea: an EU-US-Exxon Screwup » CounterPunch: Tells the Facts, Names the Names
The battle over the Ukraine’s eastern half rages onwards. Ukraine crisis: 500 rebels attack troops, 20 killed and Russian journalists being banned entry to Ukraine to cover presidential election while Ukraine’s Yatsenyuk screams that ‘Bandits’ Will Not Disrupt Election.
As a reminder of the violent coup that took over Kiev, there is this video Ukraine Burning, made by Vice showing the fascists in Kiev and their Catholic actions. Note how no one is shooting them and they are allowed to set fire to tires and buildings and wear masks
As for the liberals and libertarians, in fact all peoples, I hope they will wake up from their dream of freedom in the authoritarian desert of the real. But the only way this is going to happen, is if God exercises His Choice and takes the Red Pill and crams it down their throat, just as he did with me.
8) …This inquiring mind asks, whose brand do you carry, what is your tribe, and what is your ism?
All be of a brand and tribe. I am a Christian. Genuine Christians carry a brand, as they are the product of the ism of Christ.
An ism is defined as a process that produces a state-of-being from ideas; one adopts an ideology, and then embraces an ism, and the two produce the individual’s state-of-being, where one has identity and life experience.
There be many isms; every person, has an ism: each individual has economic action out of some movement; one has speech and behavior out of his ism; these manifest as virtues (morals) and ethics (the quality and type of relationships).
One has values, that is a framework of reading, capsule thinking, associates, activities, mentors, and family, that support one’s virtues and ethics.
One will carry a brand as one get’s branded by his ism.
Liberalism’s, meaning freedom from the state, dynamos of creditism, corporatism, and globalism, established economic systems such as India’s terrifically corrupt capitalism, France’s municipal finance socialism, Greece’s pork and patronage socialism, Australia’s crony capitalism. People living in democratic nation states had life experience out of liberalism’s isms.
Some strive to be libertarians, and read Hayek, Mises, and Rothbard, to have experience out of libertarianism.
In contrast, most people had economic action out of the movement of liberalism’s creditism, corporatism, and globalism, as bankers and nation state leaders operated in policies of investment choice and schemes of debt trade investing and currency carry trade investing.
And alternatively, Mike Head of WSWS writes Australia’s Auto closures pose need for a global workers’ strategy. The ending of production in an entire country is a concentrated expression of the ongoing, ruthless restructuring of the global auto industry; and calls for commitment to a life of Trotsky socialism, specifically a new international socialist strategy.
Now, authoritarianism’s is coming of age as investors derisk out of liberalism’s investments, and is starting to establish regional economic governance and totalitarian collectivism for regional security, stability and sustainability. Increasingly people have economic action out of the movement of authoritarianism’s regionalism, as regional fascist leaders operate in policies of regional diktat and schemes of debt servitude.
Libertarian Mike Mish Shedlock writes Twenty-Three hurt in Spain protest against anti protest legislation; Peripheral Europe powder keg ready to explode. As bad as all this is, the Euro made matters far worse. It can’t and won’t last.
Please consider that the Euro was conceived and designed in eternity past by God to be enduring. He produced the Euro out of the concepts of the Euro’s Father, Columbia University Professor Robert Mundell, who received the 1999 Nobel Prize in Economics for his 1961 paper “A Theory of Optimum Currency Areas”, as cited by EconoLib.org and other internet resources.
Through the singular dynamo of regionalism, a European Superstate, that is a One Euro Government, will emerge, as is foretold in bible prophecy of Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.
For most people, the ism of regionalism, will produce debt servitude in the diktat of regional leaders as the way of life under authoritarianism.
Like I say. I am a Christian. I commit to keeping Christ’s Word, and not denying His Name, as I am committed to living in His presence and authority, and have movement out of His Spirit. I am of the brand of Christ. And I am of the tribe of Christ.
Jesus Christ is the ism of God, that is the divine nature of the Godhead. The experience of Him is one of holiness and of truth, this being presented in Hebrews 1:3, and John 14:7. His Apostle Peter, writes of addition of the elect in 2 Peter 1:5-7, “Add to you faith virtue, to virtue knowledge, to knowledge self-control, to self-control perseverance, to perseverance godliness, to godliness brotherly kindness, and to brotherly kindness love”; it is out of this practice that one has identity as a Christian and life experience in Christian virtue and ethics. Perhaps one might enjoy reading Witness Lee The Triune God In His Economy