Financial market report for the week ending April 26, 2013
1) … Isms they are important for they define a person and establish a life view.
An inquiring mind asks, what is an ism? An ism is a life process, with an inherent authority, that creates a state of being and claims lives.
There be many isms; each is based upon an idea that is in short supply, and work through inherent authority, to produce a identity and experience which claims the life of an individual.
Beginning in 1913, with the creation of the Creature from Jekyll Island up until the First Greek Bailout in May of 2010, Liberalism and its principal investment choice ruled decisively as the world’s paradigm for economic and political experience. But increasingly Authoritarianism with its diktat is rising out of the Mediterranean nation states of Portugal, Italy, Greece, and Spain, that is the PIGS, to be the ruling architecture for mankind’s political and economic experience.
Liberalism’s dynamo of investment choice, is winding down capitalism, European socialism, and Greek Socialism on the exhaustion of the world central bank’s monetary authority to grow corporate profits and stimulate global trade.
Authoritarianism’s dynamo of diktat, is powering up regionalism, as European leaders work to provide for regional security, stability and sustainability.
Dispensationalism is the concept, that there is a God, that He has a Son, Jesus Christ, who has universal authority, that He supervises all authority in heaven and in earth, and is working in dispensation, that is the administrative plan of God, for the fullness and completion of every epoch, era and time period, Ephesians 1:10, and is producing the Element of Life, Colossians 3:1-4, in people, thereby creating saints, which stand out as His elect, that is His chosen, from the aints, and that He, Jesus Christ, is dispensing himself into the believer in Christ, as one’s All Inclusive Life Experience, Colossians 3:11.
The dispensationalist view is different, from all other life views. The dispensationalist view comes out of sound bible doctrine, and believes and trusts in Christ, and responds daily to God’s will. All other views come from the fiat, that is the mandate of will worship in philosophy or religion, Colossians 2:23. For example the libertarian view, is that one is a sovereign individual, and that one seeks liberty, specifically the use of personal property free from government interference in a gold based money system. Libertarianism claims lives establishing them as Free Individuals. This contrasts with the Dispensationalist view that only God is sovereign, and that man’s will died in the garden experience with Adam and Eve, and that Christ alone makes one free, and that He, has a group of Free People, known as the Church, that is the called out ones.
Authors and speakers on dispensationalism include,
Witness Lee, The Recovery Version of the Bible, and The Economy of God
John McArthur, The John McArthur Study Bible
From the Monergism website, Numerous Audio and Book Resources on the Book of Revelation
Wayne Grudem, The Gift of Prophecy in the New Testament and Today
Richard Sibbes, A Description of Christ
RC Sproul, The Reformation Study Bible
Matthew Henry, Exposition of the Old and New Testaments, and Complete Commentary,
John Gill, The Works of John Gill
John Bunyan, The Pilgrim’s Progress
Ryan Jankowski and Benjamin C. Richards, Reformed Audio Sermons
2) … The global economic and political paradigm pivoted from Liberalism into Authoritarianism last week, that is the week ending Friday April 19, 2013, when the S&P 500, SPY, Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, on the exhaustion of the world central bank’s monetary authority to stimulate global growth, and on the fears that the Cyprus Bank Bailin will be used as template in growing sovereign and banking insolvency in the Eurozone.
The prosperity portion of the Business Cycle has attained completion and the world has passed into Kondratieff Winter. The weekly chart of the S&P 500, SPY, shows an Elliott Wave 2 Low in March 2009, an Elliott Wave 3 High in March 2012, an Elliott Wave 4 Low in June 2012, and an Elliott Wave 5 High on April 12, 2013; it has advanced approximately 140% in just over four years.
Small Cap Pure Value Investment, RZV, Nation Investment, EFA, and Small Cap Nation Investment, IFSM, and Global Industrial Production Investment, FXR, were a highway to wealth for investors under Liberalism, especially beginning in May of 2012, as anticipation of Mario Draghi provision of OMT, as is seen in the ongoing Yahoo Finance chart of Copper, JJC, Gold, GLD, European Stocks, VGK. Its simply destiny, that the credit excess of Liberalism’s fiat money lords, Ben Bernanke, Mario Draghi and Haruhiko Kuroda, have fully paved the road to serfdom for use by Authoritarianism’s diktat money taskmasters, Olli Rehn and Angela Merkel.
Wise investors exercised Credit based, AGG, JNK, and Carry Trade based, ICI, investment choice to invest lucratively in Liberalism’s schemes, such as Free Trade Agreement, FXR, Government Sponsored Home Lending, REM, ITB, Risk Assets, Leveraged Buyouts, PSP, Biotechnology, IBB, IPOs, FPX, Spin Offs, CSD, Pharmaceuticals, XPH, Casinos and Resorts, BJK, as well as in countries such as the Phillippines, EPHE, Ireland, EIRL, New Zealand, ENZL and US Infrastructure PKB.
The failure of carry traded investing is seen in the trade lower of 1) Mexico’s Air Service Companies, ASR, and OMAB, 2) Peru’s Bank, BAP, Cement Producer, CPAC, and Gold Miner, BVN. 3) Global Producers, FXR, seen in this Finviz Screener, and 4) the Small Cap Pure Value Stocks, RZV..
Liberalism’s schemes rewarded investors trust; yet now they are impeded as Reuters reports BP may delay $10 billion ‘mad dog’ oil scheme in Gulf of Mexico. Authoritarianism’s schemes required for one’s compliance include labyrinthian new taxes, austerity measures, bank deposit bailins, and capital controls.
Investors should start thinking of an investment strategy that is based upon the concept that regional leaders, such as the EU Finance Ministers, and regional bodies such as the ECB, are going to introduce regional governance with new taxes, austerity measures, bank deposit bailins, and capital controls .One such strategy is Internationalizing one’s wealth through financial expatriation. Doug Casey of Casey Research writes on Financial Internationalization. At a bare minimum, you should have a meaningful amount of gold in a foreign safe deposit box. In addition, you should own some foreign property, preferably in a location where you would enjoy spending some time. These things are currently not reportable, and it would be impractical for the government to get you to repatriate that capital.
Please consider that the universe operates according to the mystery, that is the unknown known, of the dispensation of Jesus Christ, that is the household administration, that is the household stewardship of God’s sSn, for the fullness, and completion of every age, epoch, era, and time period, for the pleasure of God’s sovereign will and good pleasure, Ephesians 1:10, that excludes any meritocracy or personal sovereignty manifesting out will worship in human philosophy or world religion, Colossians 2:23.
Of note, on Monday March 18, 2013, a number of stock sectors entered a bear market, on the Cyprus Bank Deposit Bailin, as Reuters reported ‘Cyprus and European data rattle the Euro’, and as the NYT reported ‘Mood sours in Cyprus as E.C.B. gives bailout ultimatum’.
Then on Monday, April 15, 2013, the so called Black Monday, the world passed through an epic investment pivot point on the exhaustion of the world central banks’ monetary authority inability to stimulate global growth and trade, as World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, traded lower, on lowe Major World Currencies, DBV, and Emerging market Currencies, CEW, transitioning from bull to bear market. The markets have turned from Risk On, ONN, to Risk Off, OFF.
The most toxic of debt, such as Fidelity’s Distressed Investments, FAGIX, specifically assets taken in by the US Federal Reserve under QE1, Junk Bonds, JNK, and Emerging Market Bonds, EMB, have been the credit basis of Liberalism’s Grand Finale Stock Rally that that began in June 2012, months ago with a Euro Yen, EUR/JPY, currency carry rally, have all turned lower, suggesting that Peak Credit, AGG, has been achieved. The climax in of the demand for credit is seen in the chart of in closed end debt, PFL, relative to closed end equity, CSQ, that is the ratio of PFL:CSQ, trading lower. The end of the pursuit of yield, is seen in Real Estate ETFs, DRW, IYR, ROOF, FNIO, IFGL, REM, seen in this Finviz Screener, trading lower and Premium REITS, KBWY, topping out. The collapse of the credit system can be followed with the ETFs seen in this Finviz Screener.
Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, commencing competitive currency devaluation as the US Dollar, $USD, and the Japanese Yen, FXY, traded higher.
The seigniorage, that is the moneyness of the Milton Friedman Free To Choose Floating Currency Regime, was based upon national sovereignty of democratic states. It failed Monday April 15, 2013, on falling currencies, giving confidence to the concept that regionalism is rising to replace capitalism and all forms of socialism, with the result being that Dividend Growth, VIG, has failed.
Liberalism was defined by Inflationism. Through currency debasement, that is through monetization of debt, in particular the long term sell of the US Dollar, $USD, UUP, up until February 1, 2013, and recently the sell of the Japanese Yen, FXY, and through ever expanding moral hazard of the credit expansion, Money, that is Wealth, of all types has inflated in value, based upon peak democratic nation state sovereignty, producing peak democratic seigniorage, that is moneyness.
Peak Hegemony of the The Enemy-Industrial Complex, that is the iron like strength and formidability of US Dollar Hegemony, has been attained With the trade lower in Major World Currencies, DBV, and Emerging Market Currencies, CEW, the world is passing out of the era of democratic nation states, with the US being preeminent, nto the age of The Ten Toed Kingdom of Regional Governance, where ten zones of regional governance, seen in the Statue of Empires in Daniel 2:25-45, will emerge to eventually b ruled by ten kings, as foreseen seen by the 300 elite visionaries of the Club of Rome.
Under Liberalism, money was coined by Asset Managers such as BLK, WDR, EV, STT, WETF, AMG, seen in this Finviz Screener, with the provision of ETFs, and money was coined by the securitization of investments by banks, the Too Big To Fail Banks, RWW, such as BAC, JPM, and DEXIA, in being primary dealers issuance of US Government Bonds, TLT, in Permanent Open Market Operations, POMO, injections, as often reported by Chris Vermeulen, and in provision of GNMA Bonds, GNMA, and Mortgage Backed Securities, MBB, the Rydex Guggenheim Government Long Bond 1.2.Mutual Fund, Long 1.2, RYCGX; but its bear bond market opposite, Rydex Guggenheim Government Long Bond Inverse Mutual Fund, RYJCX. is starting to gain ground,.
It has been the implied backing of mortgage debt, as well as the Fed policy of ZIRP, that has given seigniorage, that is moneyness, to the highest yield bearing of all investments, Mortgage REITS, REM. Deborah Solomon of WSJ reports “A panel of top financial regulators is targeting mortgage real-estate investment trusts as a potential risk to the U.S. financial system, the latest example of Washington’s growing concern with market bubbles. Next week, the Financial Stability Oversight Council, a panel comprising the top U.S. financial regulators, is expected to cite mortgage REITs as a source of market vulnerability in its annual report. Mortgage REITs, which are publicly traded financial companies that borrow funds to invest in real-estate debt, have seen their assets quadruple to more than $400 billion since 2009.” As is seen in this ongoing MSN Finance Chart of REM, PSP, DTN, and BJK, once could have had not only growth of principal, but, 10.% yield on Mortgage Reits, REM, 3.5% yield on Leveraged Buyouts, 2.9% yield on Dividends Excluding Financials, and 3.5% Yield on Gaming, BJK.
The zenith of Peak Money is seen in the chart of Global Consumer Staples, KXI, reflects that there is no investment safe haven left. And Peak Money is seen in chart of Electric Utilities, XLU, such as AEP, DTE, NEE, D, CMS, PNW, WEC, seen in this Finviz Screener, topping out.
The era of speculation based upon ever increasing moral hazard is over, finished and done. The global debt bubble, seen in Junk Bonds, JNK, served to leverage up the most speculative of stocks, such as the vice stocks held in the Fidelity Mutual Fund VICEX, the Gaming ETF, BJK, as well as Small Cap Value Shares, RZV. But now, the dynamos of global growth and corporate profitability are winding down, and the dynamos of regional security, stability and sustainability are winding up regionalism, that is regional integration, thus terminating the concept of investment choice.
Most decisively on Monday, April 15, 2013, the dynamos of regional security, stability, and sustainability are winding up regionalism, establishing a new trust, the trust in mandates of regional governance such as in the Cyprus Bank Deposit Bailin, pivoting the world through Peak Currencies, DBV, and CEW, Peak Credit, AGG and JNK, and Peak Money, VT, communicating and end to Liberalism’s currencies, credit and money, and introducing Authoritarianism’s regional governance, totalitarian collectivism, and debt servitude, beginning in the Eurozone.
Diktat money was born out of the Cyprus Bank Deposit Bailin and issued in Authoritarianism; it is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity that is experienced, such as heavy losses on large bank deposits, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional sovereign leaders such as Olli Rehn, and sovereign regional sovereign bodies such as the EU Finance Ministers or the ECB, invoke mandates for regional security stability and sustainability.
Under Authoritarianism, ever increasing moneyness will come from the mandates of regional leaders, such as the EU Finance Ministers and regional bodies such as the ECB, underwritten by Authoritarianism schemes such as regional framework agreements, which will waive national sovereignty and pool sovereignty regionally. The Eurozone solvency and sovereignty crisis, which has its basis in the Nordic Latin Divide, that is the Eurozone North South Divide, will be resolved by regional framework greements, establishing a One Euro Government. While Germans, cannot be Greeks, they will be one, unified as residents of a region of “true European Government” as proposed by Angela Merkel, and reported by Spiegel and others.
The twin spigots of Liberalism’s Inflationism, first, Aggregate Credit, AGG, and more intensely Toxic Debt, consisting of Distressed Investments, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKNL, and second Carry Trade Investment, ICI, have been turned off and are now running toxic, as confidence in the world central banks monetary authority to continue to stimulate global growth and trade is waning, and fears of Eurozone sovereign insolvency and banking insolvency are rising. The trade lower in European Stocks, VGK, is based upon the reality that insolvent sovereigns and insolvent banks are unable to provide seigniorage.
Under Authoritarianism the diktat of sovereign regional leaders and sovereign regional bodies, will provide seigniorage, that is moneyness. Liberalism’s seigniorage, that is the seigniorage of investment choice, is waning on the failure of sovereign nation states; while the seigniorage of diktat is rising on the sovereignty of regional leaders and regional bodies such as the EU Finance Ministers and the ECB.
Destructionism has commenced, as the world central banks monetary policies of easing have crossed the rubicon of sound monetary policy, with the result that excessive credit, has resulted in turned “money good” assets bad. Austrian economist Ludwig von Mises provides insight into the end of the crack up boom in Liberalism’s money, relating The boom can last only as long as the credit expansion progresses at an ever-accelerated pace. The boom comes to an end as soon as additional quantities of fiduciary media are no longer thrown upon the loan market. But it could not last forever even if inflation and credit expansion were to go on endlessly. It would then encounter the barriers which prevent the boundless expansion of circulation credit. It would lead to the crack-up boom and the breakdown of the whole monetary system.
Liberalism was based upon credit expansion; but Authoritarianism is based upon debt servitude, consisting of things such as bank deposit bailins, capital controls, new taxes, and austerity measures.
Under Liberalism, wealth consisted largely of equity investments and credit investments. Under Authoritarianism, wealth consists of diktat, coming from regional sovereign leaders and regional sovereign bodies, such as the EU Finance Ministers and the ECB as well as physical possession of gold bullion in places of safety such as foreign safe deposit boxes, and in International Trading Vaults, such as Bullion Vault; those not possessing such wealth experience ever increasing poverty.
Sovereignty begets seigniorage. Out of banking crisis as well out of sovereignty crisis, perhaps better termed solvency crisis, nannycrats are creating means of debt servitude and austerity as seen in the Cyprus Bank Deposit Bailin, capital controls, new taxes, and austerity measures. Patrick Donahue of Bloomberg reports Chancellor Angela Merkel said that austerity in the euro area will claim victims as European leaders struggle to resolve the debt crisis, though the pain will be worth it to regain sustainable economic growth. The German leader dismissed the notion that increasing debt is necessary to generate growth. ‘We know that there will have to be victims from this in many countries,’ Merkel told a forestry conference. ‘But I believe that in the long term we’ll have to have a growth strategy without always having to pile on debt. And Christoph Dreier of WSWS writes German SPD conference approves election program.
Jesus Christ, working in Dispensation, that is in the household administration of God, for the full completion of every age, era, epoch and time period. Ephesians 1:10, is terminating carry trade investing, ICI, and the use of credit, AGG, JNK, to produce equity wealth, VT, that marked the era of investment choice. Now He is introducing new taxes, austerity measures, bank deposit bailins, and capital controls, that mark the age of diktat. Jesus Christ exercised His sovereign rule to maximize moral hazard, fully completing Liberalism’s prosperity.
Authoritarianism was birthed the week ending April 19, 2013, when World Stocks, Major World Currencies, and Emerging Market Currencies, CEW, traded lower, by the exhaustion of the world central bank’s monetary authority to stimulate global growth and trade, and by fears that the Cyprus Bank Bailin will be used as template in growing sovereign and banking insolvency in the Eurozone.
Thus Jesus Christ is operating at the helm of the economic and political plan of God, Ephesians 1:10, pivoting the world from the Milton Friedman Free To Choose Banker Regime … into the Beast Regime of Regional Governance, Totalitarian Collectivism, And Debt Servitude … as Commodities, DBC, Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies CEW, trade lower. Out of soon coming Eurozone sovereign and banking default, will come fiscal consolidation.
Authoritarianism’s fathers or starters include Angela Merkel and Nicolas Sarkozy who Spiegel reports have called for a region of true European economic government. The Telegraph reports that EU Finance Ministers Jeroen Dijsselbloem, Michel Barnier, and Olli Rehn spearheaded the Cyprus Bank Deposit Bailin. These will replace Liberalism’s thought leader Milton Friedman.
Please meet the Eurozone nannycrats. Presented below are profiles of the EU’s top dog economic and political leaders, who are introducing conditionality, against the unlimited cheap nation state fiscal funding contained in the ECB’s Outright Monetary Transactions, OMT, one of Liberalism’s schemes, which has failed to provide monetary transmission for economic growth in Europe’s periphery.
Jeroen Dijsselbloem. Wikipedia relates he is a Netherland politician, currently serving as President of the Eurogroup since 21 January 2013, and president of the Board of Governors of the European Stability Mechanism (ESM) since 11 February 2013. Dijsselbloem went to the Roman Catholic primary school in Son en Breugel and the Roman Catholic secondary school Eckart College (1978–1985) in Eindhoven. He studied agricultural economics at Wageningen University (1985–1991), majoring in business economics, agricultural policy, and social and economic history, for which he received his academic degree of ingenieur in 1991, which is equivalent to a Master of Science degree.
On 1 February 2013, he nationalized the financial institution SNS Reaal, preventing its bankruptcy. Shareholders and owners of subordinated debt are expropriated with no compensation and others banks of the country have to contribute to the takeover up to one billion euros. In March 2013, Dijsselbloem took a lead in the negotiation, conclusion and subsequent public promotion of the “Cyprus bail-in“. He attracted criticism for the precedent of taking depositors’ balances as part of bank rescues but said “I’m pretty confident that the markets will see this as a sensible, very concentrated and direct approach instead of a more general approach…It will force all financial institutions, as well as investors, to think about the risks they are taking on because they will now have to realise that it may also hurt them.”
Michel Barnier. Wikipedia relates he is French politician currently serving as European Commissioner for Internal Market and Services; having been confirmed in February 10, 2010. Barnier served as a European Commissioner for regional policy in the Prodi Commission from 1999 until 31 March 2004 having been made the Foreign Minister of France in the government of Jean-Pierre Raffarin. He served in this function until 5 June 2005 when upon the establishment of the new government under Dominique de Villepin he was replaced by Philippe Douste-Blazy. He considered he was unjustly sanctioned for the victory of the “No” in the French referendum over the European Constitution.
Olli Rehn. Wikipedia relates he is a Finnish politician, currently serving as European Commissioner for Economic and Monetary Affairs and the Euro and vice president of the European Commission. ANSAmed relates EU can slow down on fiscal rigor, Olli Rehn says
Silver Doctors relates that CNBC gave Ron Paul an opportunity to talk about the moral hazard of paper fiat currency.
With Peak Prosperity having been achieved, Jesus Christ is now transitioning the world into Authoritarianism, where He will oversee the utter destruction of all existing economic and political life, producing the very depths of Authoritarianism’s austerity, so that one might come to trust that He is one’s life, Colossians 3:4-5, and one’s all inclusive life experience, where one has identity and experience out of the New Man, that being Jesus Christ, Colossians 3:11.
3) … In this week’s trading
On Monday, April 22, 2013,
The Philippines, EPHE, blasted 2.0% higher in what is likely to be an evening star pattern. Benton Te writes Booming Phisix-ASEAN equities amidst more signs of global distribution Finally signs are pointing to a growing dynamic of divergence dynamic among global asset markets. Among major equities, US and Japan continues to post gains even as much of the world appears to turning over. Of course this is with the exception of ASEAN. Despite the material year to date 9.1% gains by the S&P 500, internally the sectoral performance has diverged. Health Care, Consumer Staples, Utilities, Cyclicals and Financials have boosted the S&P while materials, technology energy and industrials have weighed on the index. While I believe that much of the world will likely endure more pangs from growing signs of financial market weakness, it is unclear whether this will also impact the ASEAN markets whose mania phase has been running in full throttle. This is of course unless there would be a major external financial smash up that could trigger a domino effect.
False assumptions and illusions brought about by a credit boom will eventually be unmasked. I may add that for the mainstream, bubbles are after the fact knowledge. As author Philip Coggan, and Economist contributor under the pen name of Buttonwood notes , Ireland and Spain looked OK on government debt-to-GDP before the crisis but then they didn’t.
Navigating today’s treacherous market requires prudence, as incessant interventions has rendered markets highly susceptible to magnified volatility and whose state of fragility raises the risks of bubble busts, whose trigger may emanate from anywhere.
And Benton Te writes Kuroda’s Abenomics may trigger Global Financial Market Earthquake. Consider these figures. According to James Gruber at the Forbes.com  Government debt to GDP in Japan is now 245%, far higher than any other country. Total debt to GDP is 500%. Government expenditure to government revenue is a staggering 2000%. Meanwhile interest costs on government debt equal 25% of government revenue.
Add to this Shinzo Abe’s fiscal stimulus package announced last January amounting of ¥10.3 trillion  US $116 billion (January), US $103.5 billion (current) and the Liberal Democratic Party LDP’s proposed US$ 2.4 trillion of public work spending programs  spread over 10 years which should expand on the current levels of debt.
In other words, Japan’s unsustainable debt structure has been founded on the continuance of zero bound rates. Thus a further spike in yields from the prospects of “crushing deflation” via monetary inflation will bring to the fore, Japan’s credit and rollover risks. For instance a doubling of interest rate levels will translate to a doubling of interest costs on government debt and so on. Remember, BoJ’s Kuroda set a supposed “flexible” inflation target of 2% in two years , while paradoxically expecting bond markets to remain nonchalant or placid.
Thus any signs of the emergence of a loss of confidence that may resonate to a debt or currency crisis may unsettle global markets. The Japanese government via Abenomics has essentially been underwriting their economic “death warrant”. It would be a mistake to infer “decoupling” or “immunity” from a debt or currency crisis in Japan. A Japan crisis will hardly be an isolated event but could be the flashpoint to a global finance-banking-economic crisis given the increasingly fragile state from debt financed economic growth and debt financed political system
I comment that one sign of the emergence of a loss of confidence in Kuroda’s Abenomics is seen in the chart of Powershares DB Inverse Jap Gov Bond ETN, JGBS, beginning to rise on April 1, 2013.
On Tuesday April 23, 2013
European Financials, EUFN, rose 2.4%, taking Europe, VGK, EWP, EWI, EFNL EIRL, EWN, EWG, the Too Big To Fail Banks, RWW, and Regional Banks, and World Stocks, VT, Nation Investment, EFA, Small Cap Nation Invesment, IFSM, and Global Producers, FXR, higher. Hedged Japan, DXJ, new high, and Australia and Indonesia, IDX, rose strongly, as various news services report Euorpean Treasury Debt yields plummet, and as Italy president Italy Giorgio Napolitano appeared ready to announce his choice of prime minister; te deputy head of the center-left Democratic Party (PD), Enrico Letta, is seen as the front-runner to head a coalition government that Napolitano is expected to announce on Wednesday. PowerShares DB Italian Treasury Bond Futures ETN, ITLY, rose 0.8%.
Global ZIRP stimulated the Defensive Equity ETF, DEF, containing a number of interest rate sensitive sector stocks, such as CNP, consumer staple stocks, such as CPB, as well as yield chasing stocks, such as the Energy Partnerships, AMJ, PPA, MMP, KMR, ETE, EPD, to rise to a new high.
On Wednesday, April 24, 2013
World Stocks, VT, Nation Investment, EFA, Hedged Japan, DXJ, and Japan, EWJ, rose to a new highs, and Small Cap Nation Invesment, IFSM, Japan Small Caps, JSC, New Zealand, ENZL, rose to a new highs as well; but US Stocks, VTI, and the S&P 500, SPY, traded unchanged, as Reuters reports Durable Goods Orders fell more than expected, pointing to weakening growth. US Small Caps, IWM, traded only slightly higher, on slightly higher Regional Banks, KRE. Rising European Financials, EUFN, pushed Europe, VGK, and World Banks, IXG, up near their recent highs.
Global Producers, FXR, rose slightly, but remain depressed from their recent highs of a depressed Basic Materials Group, XLB, on a depressed Industrial Goods Group, XLI, and a depressed Technology Group, XLK.
US Health Care Providers, IHF, rose as Healthcare Plans, AET, WLP, CVH, CI, rose strongly.
Global Real Estate, DRW, International REITS, IFGL, Industrial Office REITS, FNIO, Premium REITS, KBWY, Small Cap Real Estate, ROOF, and Real Estate, IYR, rallied to new highs on Global ZIRP. The world central banks’ ZIRP, in inflating nominal prices has warped and distorted genuine value.
Gold Mining, GDX, GDXJ, and Silver Mining, SIL, SILJ, rose strongly.
In yield bearing stocks, Utilities, XLU, such as AEP, DTE, NEE, D, CMS, PNW, WEC, seen in this Finviz Screener, are topping out. Energy Limited Partnerships, AMJ, such as KMR, ETE, EPD, MMP, seen in this Finviz Screene, and International Utilities, DBU, rallied to new highs, as did Telecom Services, IST.
On Thursday, April 25, 2013
Reuters provides an exclusive report Verizon eyes roughly $100 billion bid for Verizon Wireless stake. Verizon Communications Inc has hired advisers to prepare a possible $100 billion cash and stock bid to take full control of Verizon Wireless from joint venture partner Vodafone Group Plc, two people familiar.with events said.
Reuters reports Republicans slam U.S. bet on electric carmaker Fisker. Republican lawmakers said the U.S. government missed early warning signs that its loans to electric carmaker Fisker Automotive could be in trouble, and kept money flowing even after the startup missed
Christina Scolaro of Big Data Download reports Energy giant Exxon Mobil is expected to report earnings before the opening bell on Thursday. And comments Exxon Mobil, XOM, is often the primary place for investors to get exposure to the energy sector, however Weiss argues there are peer companies with stronger balance sheets, higher dividend yields and better production mixes, in particular Chevron, CVX. During the day, Exxon Mobil, XOM, fell 1.5% with investors expressing discontent with the company’s falling revenue.
Ambrose Evans Pritchard writes World factory orders flash warning signals despite booming markets. A rash of weak manufacturing data from America, Europe and Asia has cast serious doubts on the strength of the global economy and was starkly at odds with surging stock markets in the West.
Mike Mish Shedlock reports Germany private sector output declines first time since Novemeber.
t seems that a speculative frenzy has been in motion in US equity markets. The above also reveals of the parallel universe or of the flagrant disconnect between fundamentals and market prices. Bento te, adds that the performance is sign of monetary distress.
I comment that yes indeed there is a disconnect between US Stock Market performance and falling estimates of corporate estimates. And their traded lower from their rally high does suggest monetary distress. What is noteworthy of the record US Stock Market performance, is not that monetary distress is beginning, but that the US Stock Market’s, VTI, performance is the result of monetary excesses of the world central banks, specifically that the world central banks in effecting Global ZIRP, have crossed the rubicon of sound monetary policy and have finally made “money good” investments bad.
Which “money good” investments have the world central banks’ monetary policies, made bad, one ask? The answer comes back, the Materials Group, XLB, the Industrial Goods Group, XLI, and the Technology Group, XLK, as is seen in combined ongoing Yahoo Finance chart; individual stocks of note include:
Basic Material Group stocks, XLB, ….. GMO, WLT, BTU, CLF, MCP, ACH, CENX, SLT, RIO, BHP, GSM, SCCO, SHLM, AVD WLK, FUL, POL, SYT, KWR, CHMT, ACET …..
and Industrial Goods Group stocks, XLI, ….. ETN, AME, ROK, BDC, CMC, VMI, USAP, AZZ, RS, MUE .
and Technology Group stocks, XLK, ….. MSI, QCOM, CRM, JNPR, CSCO, JDSU, ORCL, RHT, CVLT, NTAP, EMC, NXPI, FCS, HITT, MSCC, LLTC, LSI, MPWR, SMTC, ALCU, ADI, PMCS, DIOD, ONNN
The reality that inflationism is turning to destructionism; this is also seen in Global Industrial Producers, FXR, trading lower, which includes stocks such as GE, FLS, MMM, HUB-B, IEX, ARG, CFX, ROP, PH, MTW, PHG, FLS, DE, CAT. .
There will be no Joseph Schumpeter Creative Destruction at work; rather Regionalism is already at work. The Economist Magazine presents the Schumpeter Columnist and his colleagues who reflect on business, finance and management, in a blog named after the economist Joseph Schumpeter which writes German bank reform: do not pass go, do not collect £200, “BAD risk manager faces two years in jail.” That might be the headline if Germany’s draft law on ring-fencing financial risks ever hits the statute books in its present form. Among other things, the proposal would not only allow punishing those who endanger their financial institution by breaking legal banking limits, but risk managers whose negligence led to such breaches in the first place.
The desire to criminalise bad management is understandable, given the cost of such failures to the German taxpayer and the payoffs enjoyed by disgraced managers in the past. But expert witnesses at a hearing of the finance committee of Germany’s federal parliament (Bundestag) on April 22nd outlined how difficult it would be nail down such responsibility as criminal.
The attempt to criminalise negligence is only part of the bill which aims “separate risks and to plan recovery and resolution of financial groups”. It is Germany’s stab at ring-fencing dangerous trading from the bits of banking in which deposits of up to €100,000 are ultimately guaranteed by the taxpayer. The general view of experts is that the bill has not just been badly thought out, but will complicate things—mainly because the European Commission is working on an overlapping EU regulation based on recommendations in the Liikanen Report. At some point the German law, and a very similar French reform, would have to be harmonised with the EU’s rule book.
The record US Stock Market Performance VTI, is due to monetary inflation, coming from world central banks’ monetary policies of easing and ZIRP, and the ongoing pursuit of the highest yield bearing investments, DTN, together with a high Euro, and a low Yen, resulting in a very strong Euro Yen Currency Carry Trade, EUR/JPY, which blasted Technical Leaders, PDP, to a new rally high; which includes stocks seen in this Finviz Screener ….. http://tinyurl.com/b6j7pdu … which includes AMGN, RF, DIS, TWX, DISH, GGP, ACAS, HAL, XOM, PPG, DD, ADSK, CSCO, QCOM, IP, PKG, LVS, BA, JPM, BAC, TSM, ETN, GM, MMM, MAS, KUB, HD, WHR, MON, SWY, PFE, VZ, WOR, ADS, KMX, V, ITW, MMP, BLK, MHK, NKE, SBUX, DXPE, POOL, AMZN, MMS, PG, DTE. Of note Safeway, SWY, which had been rising strongly, rifell 14% today.
The record performance of the US Stock Market reflects Jesus Christ, working in dispensation, Ephesians 1:10, to fully complete Liberalism’s credit expansion. Another word for credit is trust. Jesus Christ is developing and maintaining absolute and full trust in the monetary authority of the world central bankers to continue Global ZIRP, which has greatly rewarded ongoing investment speculation; in particular speculation in the Technical Leaders, PDP, in Pharmaceuticals, PJP, in Biotechnology, IBB, in Casinos and Resorts, BJK, in Retail, XRT, Automobiles, CARZ, in Small Cap Real Estate, ROOF, and in Telecom Stocks, IST,. Of a detailed investment note, it has been the Technical Leaders, PDP, that have led the S&P 500 higher over the last six months, but it has been the Pharmaceuticals, PJP, that have provided the best investment returns over the last two and the last five years as is seen in the ongoing combined chart of PJP, PDP, XLU, DTN, and SPY.
The investment returns of the Pharmaceutical Companies is due to regulatory capture, which has led to Big Pharma being a cartel, which effectively prohibits product competition and which enforces high prescription prices, thus assuring excellent investment returns, all to the frustration of Libertarian and Austrian Economist Robert Wenzel who writes Rand Paul fails the big test.
Jesus Christ is sovereign in all matters, even in the most minute of political and economic activity. Through dispensation, that is the administrative plan of God for the completion of every age, era, epoch and time period. He has assured maximum investment return even to the point of establishing and overseeing FDA and medical totalitarianism. Regulatory capture of Big Pharma, is just a part of Jesus Christ terminating liberty, to produce Liberalism’s Peak Prosperity.
The global investment crack up boom is based upon full leverage coming from the two levers of investment growth, these being the expansion of credit, AGG, and JNK, and currency carry trade investment such, as the Euro Yen Currency Carry Trade, EUR/JPY. It has been investors buying Junk, JNK, and keep the Yen, FXY, low relative to the Euro, FXE, that pushed European Financials, EUFN, higher, and re-energized zombie Swiss Electrical Equipment Manufacturer, ABB, pushing Switzerland, EWL, to a new rally high.
World stock, VT, and World Small Caps, VSS, rose to a new rally high as AP relates Stocks move higher after unemployment claims ease. Sectors rising to new rally highs today included Resorts and Casinos, BJK, Retail, XRT, Automobiles, CARZ, Global Consumer Discretionary, RXI, and World Banks, IXG, …. and sectors rising near recent rally highs included Biotechnology, IBB, Aerospace, PPA, Homebuilding, ITB, IPOs, FPX, … sectors rising strongly included, Home Building, ITB, and Paper Producers, WOOD.
The Vice Mutual Fund, VICEX, containing casino, gaming, and high yielding tobacco stocks, has been strongly leveraged higher on Distressed Investments, FAGIX, that the US Fed took in under QE1, and on ongoing purchases of Junk Bonds, JNK, as well as senior bank loans.
Nation Investment, EFA, and Small Cap Nation Investment, IFSM, rose to new highs. Countries rising higher on the day included Taiwan, EWT, Australia, EWA, Switzerland, EWL, Japan, EWJ, Japan Small Caps, JSC, Hedged Japan, New Zealand, ENZL, all to new highs, … and Phillippines, EPHE, the US, VTI, as well as the Russell 2000, IWM, rising near their recent high … and included some of those that have been lagging such as Greece, GREK, Finland, EFNL, and Argentina, ARGT.
Investors rushed into high yielding Global Real Estate Excluding The US, DRW, pushing it parabolically higher to a new rally high, on the world central banks’ monetary policies. establishing global ZIRP.
Global Industrial Producers, FXR, rose only slightly, and is still well below its recent rally high with Steel, SLX, and Farming and Construction Equipment, such as DE, and CAT, having been sold off.
The divergence between Global Real Estate, DRW, and Global Industrial Producers, FXR, in the last month, seen in their combined ongoing Yahoo Finance chart, makes the reality of the world central banks’ monetary policies “wearing thin”, in the global industrials, a more visible reality.
Countries remaining distant from their recent highs include the following
Brazil, EWZ, EWZS, which is laboring under strongly rising price inflation, as well as a Ten Year Interest Rate on its Treasury Debt of about 10%. These two factors have taken a toll on the high yielding Brazil Financials, BRAF, that it the Brazil Banks,
Russia, RSX, ERUS, on its natural resource economy and possible entrance into a middle east war.
South Africa, EZA, on lower gold mining stocks.
Canada, EWC, CNDA, on lower natural resource stocks,
Egypt, EGPT, on a vicious revolution
Chile, ECH, and Peru, EPU, on silver and copper mining economies.
Poland, EPOL, on abandonment of carry trade investing by the Chinese.
On Friday April 26, 2013
On Friday itself, World Stocks, VT, and US Stocks, VTT, the S&P, SPY, the Russell 2000, IWM, Emerging Markets, EEM, Nation Investment, EFA, Small Cap Nation Investment, IFSM Technical Leaders, PDP, Global Industrial Producers, FRX, traded lower as Breakout Videos reports Economic growth rebounds less than expected. This morning’s weaker than expected first quarter GDP report was a disappointment.
Sectors trading lower on the day included
Silver Mining, SIL 3.5, SILJ 0.2,
Gold Mining, GDX 3.6, GDXJ, 2.7
Metal Manufacturing, XME 1.7
Copper Mining, COPX, 2.0
Steel, SLX 1.7
Industrial Mining, PICK 1.1
Internet Retailers, FDN 0.7 on AMZN 7.6
Semiconductors, XSD 1.1
Technical Leaders, PDP 0.4, SWY 4.1, GM 1.6,
Energy Production, XOP 0.9
Small Cap Energy, PSCE 1.1
Yield bearing equity sectors
Dividends Excluding Financials, DTN 0.2
Water Resources, PHO 1.1
International Property REITS, IFGL 0.6
World Real Estate, DRW 0.4
Utilities, XLU +0.2% on the trade lower in the US Ten Year Interest Rate, ^TNX to 1.6%
The Style loss leader of the day was RZV 1.2
The Interest Rate on the US Ten Year Note, ^TNX , close at 1.66%.
Countries trading lower included
Peru, EPU, 1.6
Mexico, EWW, 1.6
India Small Caps, 1.5, India, INP, 1.1
Chile, ECH, 1.0
South Korea, EWY, 0.9
Ireland, EIRL 0.8, COV 6.7, IR 1.4
Hedged Japan, DXJ 1.4, on the rise of the Yen, FXY, to close at 99.33
Japan, EWJ 0.3, KUB 2.8
Japan Small Caps, JSC 1.0, MKTAY +7.4
China, YAO 0.6
China Industrials, CHII 1.7
China Small Caps, ECNS 2.1
China Real Estate, TAO 1.1
Base Metals, DBB, 2.4
Silver, SLV 1.8
Gold, GLD 0.5
Oil, USO 0.4
Commodities, DBC 0.6
Agricultural Commodities, JJA 0.2
For the week
For the week, the chart of the The US Dollar, $USD, UUP, shows a 0.3%, close lower at 82.60. On the upside, FXB, 1.6, FXY, 1.4, FXC, 0.9, BZF, 0.8, and on the downside, FXF, -1.0, ICN, -0.4, FXS, -0.4, FXE, -0.2, CEW, -0.1
Junk, JNK, +1.0 WSJ reports Junk debt yields fall to new record low. The party rages on for borrowers tapping the high-yield debt markets. On Thursday, yields on so-called junk bonds slipped to a record low of 5.39%, according to a Barclays index dating back to July 1983
Although Aggregate Credit, AGG, traded higher, the end of credit is at hand as subprime auto lender, NICK, and the other lenders such as Visa, V, seen in this Finviz Screener traded lower on the day . And Bloomberg reports Borrowing costs for top-rated Chinese companies rose to a three-month high as the central bank’s probe into the $3.7 trillion interbank bond market drove investors into safer government securities.
The Steepner ETF, STPP, traded to its lowest level ever, and the Flattner ETF, FLAT, rose to its highest ever level, indicating a historic flattening of the 10 30 US Sovereign Yield Curve, $TNX:$TYX, with the US contributing to Global ZIRP.
It was Global ZIRP, seen in Junk Bonds, JNK, rising 1.0%, and Aggregate Credit, AGG, rising 0.2%, that drove World Stocks, VT, 2.1, World Small Cap Stocks, VSS 2.6, Nation Investment, EFA, 3.3, Small Cap Nation Investment, IFSM, 3.5, to new highs this week.
being led so by Europe, VGK, 3.9, and Switzerland, 2.2, on falling Eurozone Treasury Debt Yields …
and being led hich led Japan, EWJ, and Japan, Small Caps, JSC, on Kuroda Abenomics …
and being led so by Asia Excluding Japan, EPP, 3.1, specifically New Zealand, ENZL, 2.6, Austra EWA, 3.6, and the Philippines, EPHE, 0.9.
Carry trade investment flowed into the following sectors this week
European Financials, EUFN 6.1
Too Big To Fail Banks, RWW 4.0
World Banks, IXG 3.2
Home building, ITB 10.0
Resorts and Casinos BJK 5.7
Automobiles CARZ 5.5
Clean Energy PBD 5.3
IPOs, FPX 3.7
Retail, XRT 3.6
Pharmaceuticals, PJP 3.2
Paper Producers, WOOD 3.1
Small Cap Pure Value, RZV 2.7
Small Cap Real Estate, ROOF 2.0
Leaders PDP 1.9
Utilities, XLU 0.6
Biotechnology, IBB 0.3
Consumer Staples, KXI 0.3
Pharmaceuticals, PJP 0.3
Silver and Gold Mining Sectors
SIL 5.3, SILJ 5.6
GDX 3.0, GDXJ 4.0
Silver, SLV, 3.1
Gold, GLD, 4.0
The end of equity investing commenced, on Friday April 26, 2013, when most all of the yield based equity investments in this Finviz Screener traded lower.
Doug Noland reports sovereign wealth, that is the wealth of sovereign democratic states’ central banks, that is, global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $662bn y-o-y, or 6.3%, to a record $11.097 TN. Over two years, reserves were $1.427 TN higher, for 15% growth. And Doug Noland reports people’s accessible wealth, M2 (narrow) “money” supply surged $44.4bn to a record $10.536 TN. “Narrow money” expanded 6.7% ($662bn) over the past year
4)… Hidalgo County Texas is a land of the walking economically dead. Chagas disease stalks Hidalgo County Texas and it is a semi-rural area characterized by poverty and the failure of education.
Wikipedia relates Hidalgo County is a county in the U.S. state of Texas. Located in the Rio Grande Valley of South Texas, Hidalgo County is one of the fastest-growing counties in the United States, and is the eighth most-populous county in Texas. Its population in 2010 was 774,769, a 35% increase from 2000. The seat of Hidalgo County is Edinburg, while the largest city is McAllen.. And Hidalgo County ranks the 22nd poorest county in the US, according to Wikipedia.
Hidalgo county is the poorest place in Texas, and has a high incidence of chagas infection.Percent of total population living in poverty statistics, courtesy of USDA Economic Research Service, shows south and central counties and their zip codes in Texas to be areas of elevated poverty … Hidalgo, 48215, 37% ….. Brooks, 38061, 35% ….. Bee, 38047, 29% ….. Kleberg, 48272, 27%.
Austin CERT reports Chagas disease strikes south and central Texas. Chagas disease, a tropical parasitic disease that can lead to life-threatening heart and digestive disorders, may be more widespread in Texas than previously thought, according to research from The University of Texas at Austin. A composite risk map for Chagas disease in Texas. According to Sahotra Sarkar’s analysis eleven counties are at particular risk: Bee, Bexar, Brooks, Cameron, DeWitt, Goliad, Hidalgo, Jim Wells, Kenedy, Kleberg, and Nueces.
“We’ve been studying this for four years now, and this year the number of disease-causing insects is quite amazing,” says Sahotra Sarkar, professor of integrative biology and philosophy at The University of Texas at Austin and lead author of a paper on the disease published in PLoS Neglected Tropical Diseases.
Endemic to rural areas of Latin America, Chagas disease is often transmitted by triatomine bugs, also known as “kissing bugs.”
In order to assess the prevalence of Chagas disease in Texas, Sarkar is working with a network of health professionals and researchers around the state. After collecting and classifying insects from the field, Sarkar sends them to Philip Williamson, an assistant professor at The University of North Texas Health Science Center. Williamson determines how many of the bugs carry the protozoa Trypanosoma cruzi, which causes the disease.
From the data Sarkar creates epidemiological maps showing the number and location of carrier insects, recorded human Chagas infections and hospitable habitats for the insects. The maps suggest South Texas is an area of high risk for Chagas infection
WHO relates These bugs typically live in the cracks of poorly-constructed homes in rural or suburban areas. Normally they hide during the day and become active at night when they feed on human blood. They usually bite an exposed area of skin such as the face, and the bug defecates close to the bite. The parasites enter the body when the person instinctively smears the bug faeces into the bite, the eyes, the mouth, or into any skin break. T. cruzi can also be transmitted by:
food contaminated with T. cruzi through for example the contact with triatomine bug faeces
blood transfusions using blood from infected donors
passage from an infected mother to her newborn during pregnancy or childbirth
organ transplants using organs from infected donors
Treatment. To kill the parasite, Chagas disease can be treated with benznidazole and also nifurtimox. Both medicines are almost 100% effective in curing the disease if given soon after infection at the onset of the acute phase. However, the efficacy of both diminishes the longer a person has been infected. Treatment is also indicated for those in whom the infection has been reactivated (for example due to immunosuppression), for infants with congenital infection and for patients during the early chronic phase. Infected adults, especially those with no symptoms, should be offered treatment. The potential benefits of medication in preventing or delaying the development of Chagas disease should be weighed against the long duration of treatment (up to 2 months) and possible adverse reactions (occurring in up to 40% of treated patients).
WHO recommends the following approaches to prevention and control:
insecticide spraying of houses and surrounding areas;
house improvements to prevent vector infestation;
personal preventive measures such as bednets;
good hygiene practices in food preparation, transportation, storage and consumption;
screening of blood donors;
testing of organ, tissue or cell donors and receivers; and
screening of newborns and other children of infected mothers to provide early diagnosis and treatment.
Hidalgo County Texas is a county where only 60% of the population over 25 has a high school degree, the US Census relates, and Hidalgo County residents considerably lag residents in Texas and the U.S. in educational attainment, that is go on to higher education, Hidalgo County reports.
City Data reports Hidalgo County is ranked on top lists as follows
#4 on the list of “Top 101 counties with the highest number of births per 1000 residents 2000-2003 (pop 50,000+)”
#45 on the list of “Top 101 counties with the most emergency room visits per 100,000 population in 2004 (pop. 50,000+)”
Wikipedia relates that The McAllen Foreign-Trade Zone (FTZ) is south of McAllen between McAllen and Reynosa. Commissioned in 1973, it was the first inland foreign trade zone in the United States and continuously ranks among the most active FTZs in the nation. By 1988 more than $1 billion a year in goods passed through the foreign trade zone located south of McAllen in south central Hidalgo County. After its warehouses filled up that year, the foreign trade zone had to turn away tenants. In 1988 Hidalgo County hosted 80,000 “winter Texans.” Retail sales rose 22.6 percent that year. Little profit found its way to the poorest people, however, a fact reflected in the standard of living of colonia dwellers, of whom an estimated 52,000 lived in 366 colonias in 1986. The problems of inadequate water supply and substandard housing were rife among colonia residents, many of whom were migrant farm-workers.
Since the 1980s and especially since the ratification of the North American Free Trade Agreement in 1994, the focal point of economic activity has shifted from agriculture to international trade, health care, retail and tourism. By 2000, the county population was 569463. McAllen is the retail center of South Texas and Northern Mexico, drawing from a consumer base of over 10 million people within a 200-mile radius. McAllen is represented by 40 of America’s top 100 retailers and is ranked 3rd in Texas in per capita sales tax receipts. The retail sales sector has become the driving force in McAllen’s economy, growing a staggering 138% over the last 10 years, to over $ 3.58 billion and employing 27% of the workforce. The Chamber of Commerce estimates that at least 35% of all retail sales in McAllen are purchased by visitors from Mexico.
The Food Stamp program came via LBJ’s War on Poverty. Neal Asbury relates the state with the highest average number of participants per month in 2012 was Texas, with 4 million citizens drawing from the program. The participation rate in Texas, which has an estimated population of 26.1 million, is 15.5 percent. According to the Texas Health and Human Services Commission, there are more than 238,000 people on SNAP in Hidalgo County, costing taxpayers in February more than $28 million.
CFED reports Hidalgo County is one of the most unbanked places in America. Of counties with more than 100,000 households, Hidalgo County, TX has the highest proportion of unbanked households (21.6%), closely followed by Bronx County, NY (20.8%). Miami-Dade County, FL (14.4%) and Philadelphia County, PA (14.3%) also made the top 10 list
Hidalgo County, TX, contrasts in “wealth gap” and in “income gap”, with the wealthiest counties which include the following:
Loudoun County, VA, Washington, DC political establishment wealth
Fairfield County, CT, Wall Street financial system wealth
Douglas County, CO, DTC Meridian International Business Center wealth
Santa Clara County, CA. Silicon Valley high tech wealth
Not being pejorative but factual, Liberalism has produced McAllen and Hidalgo County Texas as a colony of Federal Clientelism; it is a land of the living economically dead. It is a place where LBJ’s grandchildren live in poverty, clientelism and in dependency upon transfer payments from government for housing, food, income, student aid, or other assistance once considered to be the responsibility of individuals, families, neighborhoods, churches, and other civil society institutions. A place having a large number of immigrants, an economy best described as a trailer park economy, a slum of manufactured home residences, an epicenter of endemic poverty, a community of educational failure, and a living experience that supports and transmits the kissing bug disease, all of which stands in sharp contrast with the economic life and wealth that Liberalism has produced in other localities. Google Books relates that endemic poverty is caused by low productivity and poor resource base and results in low income, poor nutrition and poor health.
Ethics is defined as right relations with others. Liberalism has created ethical hazard, which is defined as the loss experienced when political leaders pass the rubicon of propriety and reward dependence on society resources.
Those living in clientelism have crossed the rubicon of ethical living, as they live outside of personal responsibility, and live in dependency on debt based prosperity.
Liberalism’s ethical hazard presents loss to responsible charity, entrepreneurship and responsible living. Jesus Christ, working in dispensation, Ephesians 1:10, has given strong delusion to both facilitators and recipients of Federal Clientelism, while providing good investment return to those invested in Maximus, MMS, which provides business process services to government health and human services agencies in the United States, Australia, Canada, Saudi Arabia, and the United Kingdom. It focuses on administering government-sponsored programs, such as Medicaid, the Childrens Health Insurance Program, health care reform, welfare-to-work, Medicare, child support enforcement, and other government programs.
While socialists complain about wealth, and social justice advocates deplore poverty, both are economic experiences under dispensation, that is under the economic and political administration plan of God, for the fullness and completion of the era of Liberalism, Ephesians 1:10.
The Washington Post reports As the economy recovers, the richest get richer, study shows. Wealth inequality widened dramatically during the first two years of the economic recovery, as the upper 7 percent of American households saw their average net worth increase 28 percent, while the wealth of the other 93 percent declined. And The Washington Post Table showing change in financial net worth by household category A new study shows that wealth disparity has been accelerating in the two years since the recession ended. The study by the Pew Research Center underscored other data showing that the economic growth that has followed the Great Recession has benefited mainly those at the top. Richard Fry and Paul Taylor of Pew Social and Demographic Trends reports A rise in wealth for the wealthy; Declines for the lower 93%. And the Wall Street Journal reports Only richest 7% saw wealth gains from 2009 to 2011.
With the turn of Liberalism into Authoritarianism, eventually the world will become an entire planet of the walking economically dead, where one will be required to take the Sovereign’s Charagma that is the Mark of etching in or tattoo upon, in order to buy or sell, Revelation 13:16, at a time when all currency, credit and money fails. Its number, 666, communicates an all inclusive currency credit and wealth system, encompassing the entire world, establishing an all inclusive life, economic, political and spiritual experience.
5) … Boston Bomber got welfare benefits
State officials confirmed last night that Tsarnaev was receiving benefits along with his wife, Katherine Russell Tsarnaev, and their 3-year-old daughter. The state’s Executive Office of Health and Human Services said those benefits ended in 2012 when the couple stopped meeting income eligibility limits. Russell Tsarnaev’s attorney has claimed Katherine — who had converted to Islam — was working up to 80 hours a week as a home health aide while Tsarnaev stayed at home, according to BH.
In addition, both of Tsarnaev’s parents received benefits, and accused brother bombers Dzhokhar and Tamerlan were recipients through their parents when they were younger, according to the state.
6) … Through dispensation, Jesus Christ is pivoting the world out of Liberalism and into Authoritarianism, and is also presenting and bringing forth The Element of Life.
Through Dispensation, Ephesians 1:10, Jesus Christ, is completing Peak Wealth, VT, Peak Nation Investment, EFA, Peak Small Cap Nation Investment, IFSM, Peak US Stock Wealth, VTI, Peak Major Currencies, DBV, Peak Emerging Market Currencies, CEW, and Peak Credit, AGG.
Peak Seigniorage, that is Peak Moneyness, is being achieved by rally highs in Banking, IXG, in Asset managers, BLK, STT, and others, and in Premium REITS, KBWY, such as Mortgage REITS, REM, as ACAS. The Seigniorage of the Milton Friedman Free To Choose Floating Currency Regime is at its zenith
Through every means at His disposal, that is through regulatory capture, moral hazard, leveraged buyouts, Free Trade Agreements, Jesus Christ has Produced Peak Prosperity, not the kind of prosperity that a Libertarian would approve of. There will never ever be a free economy, that the Libertarians dream of, only an ever increasing strong state.
Crony Capitalism, European Socialism, even the most extreme form of Socialism, Greek Socialism, was based upon the bedrock of floating currencies of vibrant democracies, and fiscally responsible nation states. It was Milton Friedman who proposed that all be fiat money users. Everyone, everywhere has economic base on Dr Friedman’s platform of floating currency, credit and wealth.
Yet, that bedrock and platform has been split asunder by sovereign and banking insolvency in Greece and in Cyprus. And the spotlight of German proprietary has been increasingly focused on the EU’s sovereign crisis and solvency crisis, with The Daily Mail reporting Merkel warns eurozone that the EU ‘has the last word’ on national budgets ahead of crunch talks on saving the single currency.And AP reports Germany rejects EU hint at easing austerity drive.
The call of Angela Merkel for fiscal accountability for all Eurozone members is very much in line with her views of a New Europe, one with true European economic government. Angela Merkel is calling for Eurozone regional governance.
Dr. Friedman introduced the Floating Currency System and investment choice with his Free To Choose ideology. Angela Merkel is introducing regional accountability for one’s economic and political experience. More specifically, Angela Merkel is introducing the Diktat Money System for economic and political life.
Liberalism was based upon democracies. But out of soon coming failure of money, that is Stock Wealth, VT, Nation Wealth, EFA, Small Cap Nation Wealth, IFSM, as well as Major World Currencies, DBV, Emerging Market Currencies, CEW, and also Credit, AGG, specifically Junk Bonds, JNK, Senior Bank Loans, BKLN, Nation State Treasuries, BWX, International Corporate Bonds, PICB, and Municipal Bonds, MUB, Authoritarianism’s accountable regional economic and political experience will arise, where Europe will be the model for replication in all of the world’s ten regions.
Having completed Liberalism’s age of investment choice, and credit based prosperity, Jesus Christ is working in dispensation, Ephesians 1:10, to introduce Authoritarianisms’ era of diktat and debt servitude based austerity. Out of monetary disorder, that is out of money crisis, specifically sovereign crisis, and solvency crisis, currency failure, and credit collapse, Jesus Christ will bring forth the Beast Regime of regional governance, totalitarian collectivism and debt servitude to rule in every one of he world’s ten regional zones, and in each of mankind’s seven institutions. Out of soon coming Eurozone sovereign and banking default, will come fiscal consolidation.
Yet Ambrose Evans Pritchard, Europe’s equivalent of Paul Krugman, relates It is hard to imagine a man less inclined to throw down the gauntlet and force a radical change in EU policy before Italy’s economy chokes to death. He grew up in Strasbourg. He wrote his PhD on EU community law. He is just as wedded to the EU Project as the man he replaces, ex-EU commissioner Mario Monti, who surrounded himself in Rome with Brussels emigres still on the EU payroll. Italy’s business lobby Confindustria said this week that austerity policies had caused “devastating damage, comparable with a war”. This follows its warning that the country faces a “full credit emergency”.
Italy’s elemental problem is that it is in the wrong currency, with a chronically overvalued exchange within EMU and against the dollar and yuan. All else is manageable. How it got to this point is by now a tedious subject. Suffice to say that 15 years of creeping pay deals under the Scala Mobile have left it high and dry, with unit labour costs 30pc out of kilter with Germany.
Bank of Italy data show that the economy contracted by 2.4pc last year, national demand fell 5.3pc, and fixed investment fell 8pc. House sales have crashed and the economy has shrunk by 6.9pc since 2007. This is the profile of a country in depression. To crown it all, public debt jumped from 121pc to 127pc of GDP last year
Citigroup expects Italy’s GDP to contract by 1.6pc in 2013 and by 1.2pc in 2014, with near zero growth thereafter, ending in debt restructuring anyway.
Without Churchillian leadership, Italy seems doomed to this fate, attempting to restore viability within EMU by means of an “internal devaluation”, with youth unemployment pushing above 50pc in Naples and the cities of the Mezzorgiorno.
If Mr Letta thinks EU policy elites are retreating from the austerity, he will be disabused soon.
The Commission’s position was clear in a joint op-ed last week by currency chief Ollie Rehn. It claimed a string of successes – all dubious – and concluded that “the eurozone has shown a degree of resilience and problem-solving capacity that many observers and policymakers would not have predicted even a year ago”.
This is humbug. Only one thing has changed. The ECB has agreed to buy Spanish and Italian bonds if need be, under strict terms. It did so because the euro would have blown apart last summer if Chancellor Merkel had not authorised the bank to act.
The op-ed was co-signed by the Dutch head of the Eurogroup and two top German officials, and that is the point. The policy is being set by the AAA core. The Commission bends to power, and will not move unless the rest of EMU mobilises superior counter-power. All else has become irrelevant in the euro snake pit.
Mrs Merkel has not resiled from austerity, or “balancing the budget” as she says with seductive simplicity. By the time Mr Letta has learnt the hard way what this means, Italy will have lost yet more time to a pre-modern economic belief system.
it is possible that Berlin will warm to monetary stimulus now that Germany itself is flagging, with new orders crumbling, but it would take more than a quarter-point rate cut to repair the broken credit channels in Italy, Spain and Portugal.
If Mr Letta is lucky, he can hope to hold together a fractious “grand coalition” for a few months. It is hard to see how this can reverse the slow rot of debt deflation and job wastage.
The deeper crisis will grind on until the Italian people find a leader willing to play rough.
Through dispensation, Ephesians 1:10, Jesus Christ is presenting the Element Of Life, Colossians 3:4-5, as one’s all inclusive life experience, where one has identity and experience out of the New Man, that being Himself, Jesus Christ, Colossians 3:11; that those of faith in Him, might trust in the promises of God, and partake of His divine nature, and make their calling and election sure, that is a genuine thing, 2 Peter 1:10.
Said another way, through the sovereign oversight of the economy of God, that is through the administration of the household of God, Ephesians 1:10, Christ is dispensing Himself into the believer as life within and godliness without, 2 Peter 1:10.
The Element of Life is not an ephemeral or misty thing; rather it is reality, Ephesians 4:21-24, and it is by the sovereignty of God, that all things cohere in Christ, Colossians 1:17.
There is no resource for gain in the diktat money system, given the mandates of nannycrats for new taxes, austerity measures, bank deposit bailins, and capital controls. The alternative is to have identity and experience in the reality of Jesus Christ, who provides His righteousness for one’s life experience, Ephesians 4:24.
Soon Jesus will soon be transition the world out of Liberalism, and into Authoritarianism, where the Diktat Money System will rise to replace Fiat Money System, where diktat will serve as currency, money and power; and the Beast Regime of Regional Governance, Totalitarian Collectivism and Debt Servitude will govern all of mankind’s economic and political activities in ten regional zones and in in all of mankind’s seven institutions, as foretold in Bible Prophecy of Revelation 13:1-4, and in Daniel’s Statue of Empires, 2:25-45.