Archive for April, 2013

World Stocks Rally To New Highs On Global ZIRP … Moral Hazard And Ethical Hazard Come Of Age … Angela Merkel Communicates That The Eurozone Member Fiscal Spending Is A European Issue … Jesus Christ Is Pivoting The Economy Of God From Liberalism Into Authoritarianism

April 29, 2013

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

 

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.[1] He studied agricultural economics at Wageningen University (1985–1991), majoring in business economics, agricultural policy, and social and economic history,[2] for which he received his academic degree of ingenieur in 1991,[1] which is equivalent to a Master of Science degree.

 

On 1 February 2013, he nationalized the financial institution SNS Reaal, preventing its bankruptcy.[8] 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.[9]  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.”[10]

 

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.[1]  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 [13], 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 [8]  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 [9] 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 [10] 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 [11], 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.

 

Automobile Dealerships, PAG, SAH, ABG, KAR, AN, KMX, LAD seen in this Finviz Screener 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.    

 

Global Consumer Staples, KXI, seen in this Finviz Screener, traded lower from its rally high as Proctor & Gamble, PG, disappointed.  

 

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.

 

Benton te Parallel Universe: Record US Stock markets and falling estimates of corporate earnings  

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

 

Commodities

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

Currencies

The chart of the Euro Yen Currency Carry Trade, EUR/JPY, closed lower on both the day and week at 127.72, which is also seen in the Stockcharts.com chart of FXE:FXY.  

 

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

 

Credit investments

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

AGG, +0.22

GOVT, +0.29

 

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

Banking Sectors

European Financials, EUFN 6.1

Too Big To Fail Banks, RWW 4.0

World Banks, IXG 3.2

 

General Sectors

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.

 

The chart of the S&P 500, $SPX, SPY, shows a 0.2%, decline, for the day, and a 1.8% rise for the week, after topping out the week ending April 12, 2013.

 

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.[1] The seat of Hidalgo County is Edinburg, while the largest city is McAllen.[2]. 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

  • laboratory accidents.

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.[5]

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.[6]

 

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 Children’s 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

Economic Policy Journal reports Boston Bomber got welfare benefits.  Marathon bombings mastermind Tamerlan Tsarnaev was living on taxpayer-funded state welfare benefits, reports the Boston Herald.

 

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.

 

CNBC reports Italy’s new leader Letta throws down the gauntlet on austerity.

 

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.

Advertisements

The World Pivots From Liberalism To Authoritarianism

April 22, 2013

Financial market report for the Week Ending April 19, 2013

I … Introduction

The prosperity portion of the Business Cycle attained completion Monday April 15, 2013, as Commodities, DBC, World Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower. The world has passed into Kondratieff Winter. Liberalism pivoted into Authoritarianism on Black Monday, April 15, 2013.

Breakout asks Are stocks set to ‘get scary’ in May?.  Charles Nenner, founder of the Charles Nenner Research Center, says those buying now in anticipation of an improving economy have missed the bus by four years.

I relate that the reason many people are four years late for investing and profiting in investment, is that  beginning four years ago, these were given stimulus by an audacious plan of Inflationism, by the world central banks’ monetary policies, beginning with Quantitative Easing I, where the Federal Reserve traded out “money good” Treasuries for Distressed Investments, such as those traded by Fidelity Mutual Funds, FAGIX, Now Bloomberg reports US Treasury’s Miller says Too Big To Fail bailouts are over. It is conceivable that under Authoritarianism, the To Big To Fail Banks, RWW, could be integrated into government, and become known as Govbanks. 

Wise investors exercised Credit based, JNK, and Carry Trade based, ICI, investment choice to invest Liberalism’s schemes, such as Risk Assets Leveraged Buyouts, PSP, IPOs, FPX, Casinos and Resorts, BJK, Spin Offs, CSD, as well as in countries such as the Phillippines, EPHE, Ireland, EIRL, New Zealand, ENZL and US Infrastructure PKB. 

Schemes of Liberalism rewarded investors trust.  Yet now they are impeded as Reuters reports BP may delay $10 billion ‘mad dog’ oil scheme in Gulf of Mexico

The week ending April 19, 2013, the world passed from the paradigm of Liberalism into the paradigm of Authoritarianism, which includes a new cultural and living experience as the WSJ reports Tech’s Rust Belt takes shape.

Schemes of Authoritarianism required for one’s compliance include labyrinthian new taxes, austerity measures, bank deposit bailins, and capital controls.

Wise investors should be thinking of Internationalizing their 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 son, 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.

 

And please consider that that God’s will is that one might come to trust that Christ 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.    

II) … This week’s trading activity

IIA) … On Monday, April 15, 2013, Risk ONN, ONN, to Risk Off, OFF, as the chart of Volatility, ^VIX, shows a strong rise taking Volatility, TVIX, and Volatility, VIXY, higher, as World Stocks, VT, Nation Investment, EFA, such as EZA, RSX, YAO, EWZ, EWW, Small Cap Nation Investment, IFSM, such as EWZS, ERIL,VNM, KROO, ENZL, IDXJ, EPHE, EPOL, EFNL, ARGT, EPU, IWM, and GREK, and Global Industrial Producers, FXR, traded sharply lower on the exhaustion of the world central bank’s monetary authority to stimulate global growth and trade, as well as corporate profits, as Daily Ticker reports Gold and stocks in sharp selloff amid global growth worries.  The chart of the S&P 500, $SPX, SPY, showed a 2.3% trade lower to close at 1,552.  Regional Banks, KRE, seen in this Finviz Screener traded 3.1%, lower, taking the credit sensitive Russell 2000, IWM, 3.8% lower. Japan, EWJ, traded only 0.8% lower; and Japan Small Caps, JSC, only 0.7% lower.

Pure Small Cap Value Stocks RZV, 4.6%, led by Industrial Wholesaler, DXPE, 6.1%, Automobile Dealership, LAD 5.6, Capital Senior Living, CSU, 5.2%.  Pure Small Cap Growth Stocks, RZG, 3.8%, led by Business Material Wholesalers, 6.6%.  The stronger fall in the former over the latter is due to the Small Cap Silver Miners, SILJ, and the Small Cap Gold Miners, GDXJ, participation in the trade lower in RZV.

Loss leaders of the day included the metal and industrial miners

Silver Miners, SIL, 13, SILJ, 13

Gold Miners, GDX, 9.8, GDXJ, 13.5

Copper Miners, COPX 8.9

Rare Earth Miners, REMX 7.5

Uranium Miners, URA 6.7

Industrial Miners, PICK 5.7

Coal Miners, KOL, 4.5

Yield bearing investment trading lower included

Dividend Excluding Financials, DTN, 2.2

Dividend Growth, VIG, 2.2

Pharmaceutical, XPH, 2.2

Telecom, IST, 2.0

Utilities, XLU 1.4

Economic Production Sectors, seen in this Finviz Screener, traded sharply lower included:

US Infrastructure, PKB, 5.0

Small Cap Industrial Producers, PSCI, 4.2

Paper Producers, WOOD, 4.1; International Paper, IP, traded strongly lower.

Global Industrial Producers, FXR, 3.5

Transportation XTN. 4.1

Industrials, XLI,  3.0

Networking, IGN, 3.0

Dynamic Media, PBS, 2.8

Internet Retail, FDN, 2.7

Aerospace, PPA, 2.3

Semiconductors, XSD,  2.3

Risk Assets, seen in this Finviz Screener, traded sharply lower included:

Spin Offs, CSD, 4.3

Clean Energy, PBD, 3.3

IPOs, FPX, 3.3

Gaming, Casinos, and Resorts, BJK, 3.0

Leverage, Buyouts, PSP, 2.8

Consumer Sectors, seen in this Finviz Screener, trading sharply lower included:

Home Building, ITB, 5.4

Retail, XRT, 3.1

Consumer Discretionary, IYC, 2.1

Real Estate Sectors, seen in this Finviz Screener, trading sharply lower included:

Small Cap Real Estate, ROOF, 2.8

Mortgage Reits, REM, 2.6 

Energy Stocks, seen in this Finviz Screener, traded 5.1% lower and included

Energy Service, OIH, 5.2

Energy Service, IEZ, 5.0

Energy, XOP, 6.0

Small Cap Energy, PSCE, 5.8

Energy, XLE, 4.1; Exxon Mobil, XOM, 2.6

Global Producers, seen in this Finviz Screener, traded 3.1% lower.

Global Industrial Producers, FXR, such as IR, seen in this Finviz Screener, traded 3.7% lower 

Industrial Electrical Equipment Manufacturers, seen in this Finviz Screener, traded 4.3% lower.

Diversified Equipment Manufacturers, XLI, seen in this Finviz Screener, traded 3.7% lower.

Business Service Providers, seen in this Finviz Screener, traded 3.6% lower. 

Metal manufacturers, XME, seen in this Finviz Screener, traded 4.0% lower.

Dig and Dirt Moving Stocks, MTW, IR, CR, CAT, KUB, seen in this Finviz Screener, traded 4.2% lower.

Paper Producers, WOOD, traded, seen in this Finviz Screener, 5.0% lower, International Paper, 5.9%

Real Estate, IYR, seen in this Finviz Screener, traded 3.0% lower.

US Infrastructure, PKB, seen in this Finviz Screener, 4.9% lower.

Retailers, XRT, seen in this Finviz Screener traded 3.2% lower.

Credit Service Providers, seen in this Finviz Screener, traded 3.4% lower; Visa, V, 2.7%

Commodities, DBC, seen in this Finviz Screener, traded lower as follows

Silver, SLV, -12.6

Gold, GLD, -8.9

Lumber, CUT, -4.3

Oil, USO -3.2

North Sea Oil, BNO -3.1

Commodities, DBC, -3.0

Agricultural Commodities, JJA, -2.1

The chart of Gold, $GOLD, shows close at $1,350 per ounce, as Reuters reports Gold has its biggest 2-day drop in 30 years.  And as Bespoke Invesment Group reports Gold Trades at Most Oversold Levels on Record  AP reports Oil falls to around $89 as China growth slows.

Major World Currencies, DBV, traded 2.1%, lower, and Emerging Market Currencies, CEW, 0.6%, lower. The chart of the US Dollar, $USD, UUP, shows a 0.3% trade higher to close at 82.50.

Bonds, BND, rose slightly higher to close at strong resistance; but Toxic Credit, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, traded lower on Black Mondy, April 15, 2013. 

Of note, just recently, 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’.

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, transitioning from bull to bear market. The markets have turned from Risk On, ONN, to Risk Off, OFF.

The two levers of Liberalism’s prosperity have failed to produce more wealth. First, a full expansion of both toxic credit investing, JNK.  And second, carry trade investing, ICI, built upon a falling Japanese Yen, FXY, have been achieved, as is witnessed by Resorts and Casinos, BJK, Leveraged Buyouts, PSP, and IPOs, FPX, Global Industrial Producers, FXR, Small Cap Pure Value, RZV, and Nation Investment, EFA, trading lower in value.

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 nine months ago with a Euro Yen, EUR/JPY, currency carry rally, have all turned lower.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, commencing competitive currency devaluation as the US Dollar, $USD, UUP, 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 Large Cap Dividend Stocks, DTN, such as S&P Telecom, IST, are no longer underwriting Dividend Growth, VIG.

Under Liberalism, moneyness came from Asset Managers, such as BLK, WDR, EV, STT, WETF, and AMG, and the Too Big To Fail Banks, RWW, such as BAC, C,  and JPM, and was  underwritten by Liberalism’s finance schemes, such as Free To Trade Agreements and Financial Deregulation.

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, thus terminating the concept of investment choice. 

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 measurfes, bank deposit bailins, and capital controls.

With the strong sell of the world major currencies, DBV, and the Emerging Market Currencies, CEW, on Monday, April 15, 2013, the concepts of currencies, credit and money, must be reexamined and redefined, as the dynamos of global growth and corporate profit are winding down capitalism, European socialism and Greek socialism, terminating, currencies, credit and money. 

The end of credit commenced, on Monday April 15, as  most all of the credit instruments in this Finviz Screener …  http://tinyurl.com/c4eouwr … EMLP, AUSE, BRAF, DRW, KBWY, DWX, JNK, SEA, IST, EMB, PGF, BKLN, PICB, VIG, XLU, ROOF, IYR, XPH, CWB, VNQ, DTN, MUB, DBU, FNIO, PHO, DWM, DOO, DLS, REM, EDIV, DGS, BWX, IHY, EFA, REZ, KBWD, EUFN, PSP, IFGL, TAO, IFSM, AMJ, DSUM, UJB, PCEF, FLOT, SHY, BND, MBB, GOVT, traded lower.

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 technocratic government, as in the Cyprus Bank Deposit Bailin, as the the world passed 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, debt servitude and diktat.  

Austrian economist Ludwig von Mises provides insight into the end of the crack up boom Liberalism’s money.  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.

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 Nordic Latin Divide, that is the Eurozone North South Divide, will be bridged by such agreements, 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. 

One can follow the downturn in stocks and bonds using this Finviz Portfolio of forty market trending ETFshttp://tinyurl.com/cbz4tcp  And one can follow the downturn in yield bearing stocks and bonds using this Finviz Portfolio of fifty yield bearing stocks and bondshttp://tinyurl.com/c4eouwr

Of note, its the end of whatever economic and political system that Slovenia had, as Bloomberg reports Slovenia asset sale plan fails to ease debt squeeze concern. Slovenia’s plan to sell shares in state owned companies failed to ease investor concern that the country will become the next euro-area nation to need a bailout. Slovenia’s default risk rose to a six-month high and bond yields hovered near records as the country prepares to tap markets this week. Prime Minister Alenka Bratusek’s April 12 announcement of plans to sell stakes in companies, including a bank, looks like an effort to stall rather than to obtain financing, according to Milan Smiljanic, head of trading at Perspektiva d.d. “There is skepticism that they are only buying time and will try to fix debt problems, avoiding privatization,” Smiljanic said by e-mail from Ljubljana. “There are no bank bidders at the moment.”

The strong currency action has opened the door to the short selling opportunity of a lifetime where corporations, non profits, educational organizations, should commence selling into rallies as they appear, as in a bull market one buys in dips, but in a bear market one sells into pips. ETFs, such as  DGP, OFF, STPP, UDN, EUO, should serve as a basis of margin, in their short selling account.

IIB) … On Tuesday April 16, 2013, World Stocks, VT, recovered some on Junk Bond, JNK, investing and carry trade investing. The US Dollar, USD, UUP, traded strongly lower, as the Euro, FXE, rose, taking other individual currencies, and Emerging Market Currencies, CEW, higher, while the Japanese Yen, FXY, traded lower, leaving Major World Currencies, DBV, unchanged from Monday’s April 15, 2013, sharp break lower.  Small Cap Growth, RZG, was the style gainer of the day. Japan, EWJ, and Japan Small Caps, JSC, recovered all of yesterday’s losses, rising close to recent highs; their charts show grossly overbought, just as Gold, GLD, shows greatly oversold. India, INP, and India Small Caps, bounced higher from recent lows. Probably the most currency carry traded stock of all time has been Junior Silver Miner, Silver Standard Resources Inc, SSRI, it traded 2.2%, lower to close at 7.23.  

I reside in Whatcom County, WA, which is probably one of the most recovered counties since the 2007 to 2008 financial system downturn; and Washington State relates the following:

Regional context. Whatcom County is bordered to its north by British Columbia, Canada, Skagit County to its south and Okanagan County to its east. The Salish Sea lies to the west and the Cascade Mountains rise to the east. Whatcom County ranges in elevation from sea level to a high point at 10,778 feet at the active volcano Mount Baker. In geological times past, the Fraser River in the lower mainland of British Columbia had one arm extending down to Bellingham Bay, creating the flat geography of a delta plain in that area that makes for very productive farmland for dairies and berry growing.

Local economy. Agriculture is a steadying influence in the northern parts of the county. Today, Whatcom County produces 65 percent of the red raspberries grown in the US.

Like the national economy, Whatcom County’s largest job-providing sector is in private services, with a 62.4 percent share of jobs. Also following national trends and due to the recent recession, goods-producing jobs have fallen from a 22 percent share of nonfarm jobs to a 17.3 percent share. The county has some heavy industry at Cherry Point in the northwest corner of the county with crude oil refineries and an aluminum smelter. There is some niche manufacturing and a large variety of other small businesses that create a well-rounded economy.

The proximity to the Canadian border is a strong influence on the economy. When the Canadian dollar is strong, it results in Canadian shoppers seeking retail bargains and real estate in Whatcom County. Even Canadian store owners have been coming to buy pallets of milk at the Bellingham Costco at retail prices to resell at their Canadian stores

Outlook. Whatcom County has some favorable factors that have aided job growth in the past and should provide some tailwinds for the near future. The proximity of Whatcom County to Canada and the appreciated Canadian dollar have been a huge draw for Canadian shoppers. Washington Department of Revenue supplies taxable sales data for all the counties in the state and ESD has inflation adjusted this for the following growth rate comparisons. The annual growth in general merchandise store taxable sales in Whatcom County for 2009, 2010 and 2011 were 1.6 percent, 7.5 percent and 6.4 percent respectively. The comparable figures for King County were -1.5 percent, -0.1 percent and -2.7 percent. In 2011 total retail trade sales grew 4.7 percent in Whatcom County while in King County the growth rate was 2.1 percent. With the duty free limit on bringing consumer goods back to Canada from the US increasing on June 1, 2012, that will reinforce this trend. Another favorable factor is that Canadians are increasingly using Bellingham International Airport for trips to Hawaii and other vacation destinations due to much lower costs compared to Vancouver BC departures.

Another plus for Whatcom County is that single family housing prices have not lost as much value from the peak prices as other areas.

Whatcom County’s economy is not only influenced by particular regional dynamics, but also by the greater economic environment of the national and global economies. What eventually put the brakes on Whatcom County’s vigorous job growth was the slowdown and eventual contraction of total household debt created during the prior credit bubble. The exponential growth of debt cannot continue indefinitely, especially when debt is growing faster on average than personal disposable income as it has been over the past 60 years or more

Whatcom County generally has lower wage rates for many occupations compared to counties south along the I-5 corridor. This makes the county attractive to manufacturing and service providing firms to relocate or expand in the county. Whatcom County has some appreciable economic tailwinds as noted above. The risks to the outlook for local economic growth come from national and global economic environments that the county is also subject to. In mid-2012 the risks stem from a possible deepening of the financial/economic crisis in Europe, the weakening of growth in developing countries and uncertainty over the direction of US fiscal policy on taxes and spending after 2013 begins. Another possible drag on growth associated the risks enumerated above is a strengthening of the US dollar against the Canadian dollar and a loss of that tailwind from eager Canadian shoppers

And Dave Gallagher of the Bellingham Herald reports New dryers at fire damaged milk plant will mean more production and export opportunities. The damaged dryer initially forced Whatcom Conty dairy farmers to decrase milk production. The new dryer will allow the plant to make whole milk powder for export to Asia.

Washington State relates that the Median Household Income for Whatcom County in 2011 is estimated to be $50,0000

IIC) … On Wednesday April 17, 2013, World Stocks, VT, and Global Industrial Producers, FXR, and Risk Assets such as Leveraged Buyouts, PSP, traded lower, on the beginning of the end of credit, as seen in Dividends, Excluding Financials, DTN, trading lower, and Junk Bonds, JNK, trading lower, and as Commodities, DBC, traded lower, on lower Oil, USO, Brent North Sea Oil, BNO, Timber, CUT, and Base Metals, DBB, which traded lower on failing carry trade investing, ICI, and as European Financials, EUFN, traded lower on fears that the European Sovereign Debt Crisis cannot be managed. Dividend Growth, VIG, paying 2.2%, has turned parabolically lower; the age of successful dividend investing is over.  The chart of 2.6%, dividend paying Exxon Mobil, XOM, shows that it is trading at the edeg of a massive head and shoulder pattern at 86 going back to August 2012, portending a significant fall lower.

Emerging Markets, EEM, traded lower on lower Emerging Market Financials, EMFN, and Emerging Market Mining, EMMT. Brazil Financials, BRAF, traded strongly lower, driving Brazil, EWZ, lower. 

US stocks,VTI, were led lower by US Commodities, USCI. A selloff in Apple, AAPL, led Networking,  IGN, Software, IGV, lower, taking the Nasdaq 100, QTEC, and the Nasdaq Large Caps, QQQ, lower. The end in technology stock investment, MTK, has commenced. The chart of the S&P 500, $SPX, SPY, shows a close 1.4% lower.

Europe, VGK, broke through support in what was its upward rally channel, as European Financials, EUFN, led World Banks, IXG, Regional Banks, KRE, Chinese Financials, CHIX, Emerging Market Financials, EMFN, the Too Big To Fail Banks, RWW, and the Small Cap Revenue Stocks, RWJ, lower.

Sectors trading lower included

Semiconductors, XSD, 4.3, broke through its rally channel

Steel, SLX, 2.5

Aerospace, PPA, 2.1

WOOD, 2.3, blasted lower on lower Timber, CUT Prices.

Mining

Copper Mining, COPX 6.0

Gold Mining, GDX , 5.0, Junior Gold Miner GDXJ, 5.3

Silver Mining, SIL, 6.0, Junior Silver Miner SILJ, 5.2

Metal Manufacturing, XME 3.3

Uranium Mining, URA, 3.4

Rare Earth Mining, REMX, 2.3

Coal Mining, KOL, 2.1

Industrial Metals Mining, PICK 2.1

Energy Service, IEZ, 3.4 and OIH 3.3

Small Cap Energy, PSCE, 2.6 and Energy Production, XOP, 3.0 and Energy, XLE, 2.2

Nation Investment, EFA, -2.1

EWZ, 2.2 on the trade lower in ITUB, BBD, BSBR, BBDO

EWP, 2.8 on the trade lower in SAN,

GREK, 2.0 on the trade lower in NBG,

EWG, 3.5 on the trade lower in DB

EIRL, 2.3 on the trade lower in IRE

EWL, 3.4 on the trade lower in UBS, CS, Semiconductor Manufacturer, STM,Industrial Electrical Manufacturer, ABB, Electronic Equipment Manufacturer, TEL, Design Build Company, FLR, Energy Producer, NE, Agricultural Chemical Producer, SYT,

EWD, 4.0, on the the trade lower in the Swedish Krona, FXS,

NORW, 3.1 on the trade lower in Brent North Sea Oil, BNO

RSX, 2.6 CNBC reports Putin’s popularity wanes as Russia’s boom ends Russia continued lower on a trend that began February 1, 2013 as part of the emerging markets trading lower.

EWN, 2.6 The Netherlands, uses the Euro, FXE, but it traded lower today on the trade lower on global growth concerns over Semiconductor Manufacturer, NXPI, Diversified Equipment Manufacturer, PHG, Business Services Provider, VPRT, Farm Equipment Manufacturer, CNH, Chemical Manufacturer, LYB, and Energy Services Provider, CLB.

Small Cap Nation Investment, IFSM, traded unchanged, as

Canada, CNDA -3.9

Germany, GERJ -3.6

Egypt, EGPT -3.5

Russia, ERUS, -3.0

Peru, EPU -2.7, on the trade lower in Bank, BAP, cement producer, CPAC, and gold miner BVN.

Brazil Small Caps, EWZS -2.0 on the trader lower in its banks

Argentina, ARGT -2.0, on the trade lower in its banks

Argentina, KROO, -2.0 on the exhaustion of carry trade investing.

Currencies trading lower today included

Swedish Krona, FXS 2.4

Swiss Franc, FXF 1.2

The Euro, FXE 1.1

The Australian Dollar, FXA 1.0

The British Pound Sterling, FXB 0.9

The Canadian Dollar, FXC 0.6

Bonds, BND, paying 2.5% and US Treasury Bonds, GOVT, paying 1.6%, rose to strong resistance.

The twin spigots of Liberalism’s Inflationism, First, 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 austeriy measures.

 

The style loss leaders of the day was Small Cap Pure Value, RZV, -2.0%, reflecting the junior mining shares trading lower, and that competitive currency devaluation has commenced, as reflected in the World’s Major Currencies, DBV, and Emerging Market Currencies, CEW, trading lower.  Debt deflation, that is, currency deflation is underway on the fact that Liberalism’s monetization of debt is now starting to destroy currencies. The US Dollar, $USD, UUP, traded strongly higher.

Currencies trading lower, is part of the pivotal shift out of Liberalism and into Authoritarianism, suggesting that these, together with its twin credit will have to be rethought, as the basis for money, that is wealth. 

Under Authoritarianism, wealth consists of diktat, coming from regional sovereign leaders and regional sovereign bodies, such as the EU Finance Ministers and the ECB.  Liberalism produced fiat money, but Authoritarianism produces diktat money, which 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.

The strong trade lower in Small Cap Pure Value Stocks, RZV, reflects the end of carry trade investing, ICI, as a driver in mankind’s economic experience. The failure of carry traded investing  is seen in the trade lower of Mexico’s Air Service Companies, ASR, and OMAB, as well as Peru’s Bank, BAP, Cement Producer, CPAC, and Gold Miner, BVN. all of which have been currency carry trade darlings under Liberalism’s theme of investment choice.

Devolution is underway. Nation state currencies will be less of an economic driver than they are today, as regional framework agreements, rise to provide non currency and most certainly non dollar, that is undollar, bourses or exchanges of goods and services. The strong trade lower in Small Cap Pure Value Stocks, RZV, reflects that risk appetite is waning and risk aversion is rising; the desire of investors to put money at risk in Junior Gold Miners, GDXJ, such as ANV, SAND, PPP, MGH, GSS, and Junior Silver Miners, SILJ, such as FSM, SSRI, is currently dead.  Investors started to derisk out of the Gold Mining and Silver Mining Stocks when Mario Draghi announced Open Monetary Transactions, OMT, which revived the European Shares, VGK, inducing investors out of the precious metal mining shares as is seen in this ongoing Yahoo finance chart

AP reports Textron cuts 2013 guidance on weak jet deliveries. Military and civilian aircraft maker Textron, TXT, said that first-quarter net income barely rose, and it expects its business jet deliveries to fall this year, inducing Aerospace and Defense Contractors, PPA, seen in this Finviz Screener, lower.  

The Management Network Group, TMNG, a management consulting company, providing professional services and technical solutions in the United States, the United Kingdom, and Western Europe, traded strongly lower, inducing the Business Services Stocks, seen in this Finviz Screener, lower.  Computer Services Company, CSG, Deluxe, DLX, Aecom Technology, AECM, FleetCor Technologies, FLT, Exelsevice, EXLS, Cerner, CERN, Cintas, CTAS, Reis, REIS, traded lower.

Investment choice under Liberalism drove business services higher. But under Authoritarianism, the diktat of regional governance working through Public Private Partnerships, will be a key component of regional governance, where overlords from banking, industry, labor, and government will work in task groups, overseeing the factors of production and working to provide regional security, stability and sustainability.    

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 July to August of 2012, as anticipation of Mario Draghi provision of OMT, as is seen in this ongoing Yahoo Finance chart of Commodities, DBC, Nickel, JJN, Silver, SLV, Gold GLD, and 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. 

Liberalism’s Asset Managers, such as BLK, WDR, EV, STT, WETF, and AMG, seen in this Finviz Screener, created investment vehicles of every type; these involved the securitization of debt in LBOs, PSP, the financialization of equity in IPOs, FPX, the development of nation investment in GREK, IWM, ARGT, EPU, EWD, EIRL, DXJ, ENZL, EPOL, and EPHE seen in this Finviz Screener, and the underwriting of investment in Global Producers, seen in this Finviz Screener, as well as carry trade funding of sector investment in  EUFN, ROOF, BJK, PSP, IYC, XRT, ITB, PPA, WOOD, and RZV, seen in this Finviz Screener.

But now, Authoritarianism 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, Ephesians 1:10, is terminating carry trade investing, ICI, and the use of credit, JNK, that marked the age of investment choice; and 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. The zenith of Peak Money is seen in the chart of Consumer Goods, that is Consumer Staples, Sanderson Farms, SAFM, trading 0.1%, lower from its rally high. The trade lower in Global Consumer Staples, KXI, reflects that there is no investment safe haven left. 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.    

IID) … On Thursday, April 18, 2013, Volatility, ^VIX, continued its rise that began on Monday April 15, 2013, as seen in the charts of TVIX, VIXY, VIXM, presented in this Finviz Screener, that caused both the S&P 500, SPY, and  World Stocks, VT, to break down and trade 0.7%, and 0.5% lower, taking both below their channel support levels, on the collapse of credit, seen in Junk Bonds, JNK, and the collapse of carry trade investing, ICI, that began on Black Monday, April 15, 201.   Sectors trading lower on the day included WOOD, FDN, ITB, XSD,IGN, IBB, PKB, IGV, PPA, XRT, FXR, and PSP. Bonds, BND, traded higher, to strong resistance, on the trade lower on stocks, VT. 

IIE) … On Friday, April 19, 2013, The chart of World Stock, VT, shows a 1.0% rise on the day; and the chart of the S&P 500, $SPX, SPY, shows a 0.9% rise on the day, but a 2.1% loss on the week. Nasdaq Biotech, rose IBB, 4.1%, including stocks like Gilead Sciences, GILD, and Amgen, AMGN, and those seen in this Finviz Screener, rose to a new high. Sectors rising today included ITB, COPX, PKB, WOOD, PICK and CARZ. Regional Airlines, RJET,  JBLU, ALK, ALGT, LUV, SKYW, seen in this Finviz Screener, rose, as did Foreign Airlines, ASR, PAC, OMAB, CPA, RYAAY, seen in this Finviz Screener. Stimulus came from a falling Japanese Yen, FXY, which closed at 98.44, which induced Japan Small Caps, JSC, to a new high, Japan, EWJ, near its previous high, and Hedged Japan, DXJ, near its previous high. 

World Real Estate, DRW, rose to a new high, and World Real Estate REITS, IFGL, rose near its previous rally high on the world central’s monetary policies of ZIRP. Debt laden US Utilities, XLU, whose interest payments have been reduced for now on a Ten Year US Treasury Interest Rate, ^TNX, of 1.70%, rose to a new high; and Pharmaceutical, XPH, rose to its previous high on cartel protection from the US Congress. 

Bonds, BND, traded basically unchanged at strong resistance. This week’s fall in World Stocks, VT, and US Stocks, VT, and the strength in Bonds, BND, flattened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as is seen in chart of the Steepner ETF, STPP, flattening near its lowest ever value. The Interest Rate on the US Ten Year Note, ^TNX, traded at 1.70%.      

 

Scott Grannis writes Money has accumulated in risk free assets When yields on risk-free assets (T Bills) are close to zero, it only makes sense to hold those assets if you need liquidity and/or are highly concerned about the potential for losses in other assets, most of which are yielding substantially more, as shown in the chart above. From a macro perspective, the fact that significant assets are being held with virtually a zero yield (e.g., bank savings deposits are now $6.8 trillion, up from $4 trillion in late 2008) can be interpreted as a sign that the market is very worried about a recession, since that is the one event most likely to create widespread losses in risky assets.

The pursuit of yield terminated on Black Monday April 15, 2013. Yes, we have finally attained the end of yield, meaning yield paying investments, such as those seen in this Finviz Screenerhttp://tinyurl.com/c4eouwr …  have topped out in value and are turning lower. Most notably Dividends, Excluding Financials, DTN, are failing to support Dividend Growth, VIG.  The end of profitable Small Cap Real Estate investing, ROOF, REIT investing, RWR, has commenced, as is seen in the high dividend paying investments, presented in this Finviz Screener, … http://tinyurl.com/chhr7r4 … trading trading lower.

Indices

QTEC 4.2

QQQ 2.6

IWM 3.2

SPY 2.1

VT 2.0

VTI 2,1

VGK 2.9

IFSM 3.6

EFA 2.1

FXR 3.5

Mining

GDX 11.2

GDXJ 14.1

SIL 14.2

SILJ 15.2 and SSRI 18.7

URA 9.8

COPX 8.6

CME 7.6

REMX 6.6

PICK 6.1

KOL 4.4

Energy

PSCE 6.7, XOP 6.1, XLE, 4.4

IEZ 6.6, OIH 5.6

Sectors

XSD 6.8

IGN 5.7

PKB 4.3

PPA 3.6

PSP 3.2

FLM 3.3

IHF 3.1

WOOD 3.0

Consumer sectors

ITB 4.3

XRT 3.5

IYC 1.8

BJK 1.2

KXI 0.1, Greece’s, GREK, Coca Cola Hellenic Bottling Company 14.8

Small Cap Nation Investment, IFSM, 3.6

CNDA 7.2

KROO  6,8

VNM 6.8

ARGT 5.1

EPU 5.8

EFNL 5.8

ERUS 5.5

EPOL 4.8

GREK 3.5

EWZS 3.4

NORW 3.2

EWN 2.3

EIRL 2.0

ENZL 1.1

Nation Investment, EFA, 2.1

EWD 6.5

EWG 4.5

RSX 4.4

EWW 3.8

EWC 3.5

EWA 3.2

EWZ 3.3

German stocks, EWG, had their worst week in ten week. Jana Randow of Bloomberg reports German investor confidence declined more than economists forecast in April, suggesting the recovery in Europe’s largest economy may struggle to gain momentum. The ZEW Center for European Economic Research… said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, fell to 36.3 from a three-year high of 48.5 in March… Business sentiment weakened in March amid renewed concerns about the sovereign debt crisis and the recession in the euro area, Germany’s largest export market.

Financials

EUFN 3.8 Greece’s, GREK, NBG, 20.6

EMFN 3.1

KRE 3.0

RWW 2.7

IXG 2.2

Wall Street

KCE 4.6 … JPM 3.6

IAI 3.8

Yield Bearing

PHO 4.6

DTN 1.5

VIG 1.7

PCEF 1.3

Real Estate

REM 2.1

ROOF 1.9

RWR 0.8

IFGL 0.1

Styles

RZV 4.2

RZG 3.3

Levers

ICI 1.1

JNK 0.3

Currencies,

DBV 1.4

CEW, 0.3

The chart of the US Dollar, $USD, UUP, shows a close at 82.88. up 0.8% for the week. For the week on the upside the Indian Rupe, ICN, 1.0, and Chinese Yuan, CYB, 0.3%, to what appears on the chart to be a rally high. For the week on the downside,  Swedish krona, FXS, 3.0%, Australian dollar, FXA, 2.1%, Brazilian real, BZF, 2.4%, Canadian dollar, FXC, 1.2%, Japanese yen, FXY, 0.9, British pound, FXB,  0.8%, Swiss franc, FXF, 0.6%, the euro, FXE, 0.3%.

Competitive currency devaluation, with the exception of the Yuan and the Pound Sterling, that began with the sell of the Yen, FXY, is now underway, as is seen in the ongoing Yahoo Finance Chart of FXY, FXE, FXC, FXB, FXS, FXF, CYB, BZF, FXA, ICN, CEW 

Countries rising included

INP 5.6

SCIN 5.2

THD 3.4

EPHE 1.6

JSC 2.5

EWJ 0.1

DXJ 0.6

III) … In this week’s news

Peter Schiff writes in Economic Policy Journal Japan steps into the void Japan’s rally will be costly.The Japanese government already spends 25% of tax revenue to service outstanding debt (compared to 6% in the US). These costs become even more astonishing when one considers the extremely low rates Japan pays. Ten-year Japanese government bonds now pay less than 0.6%, and five-year yields are now a little more than 0.20%. How much will debt service costs increase if Abe succeeds in pushing inflation to 2.0%? Two percent rates would triple long term borrowing costs. Given the size of its debts, increases of such magnitude could hit Japan with the force of 10 Godzillas. In addition to his plans for inflationary monetary policy, Abe is also attempting to wage war from the fiscal side as well. His Liberal Democratic Party has called for over $2.4 trillion USD worth of public works stimulus over the next 10 years. This spending represents approximately 40% of Japan’s current GDP and, adjusted for population, would be the equivalent of nearly $600 billion USD annually in the United States.

It should be obvious to anyone with even half a brain that Japan’s prior experiments with ever larger doses of quantitative easing have failed. Leaders in both Japan and the United States, however, are following this path with reckless abandon. According to Abe, the entirety of Japan’s economic problems can be blamed on the fact that consumer prices have been declining by one tenth of one percent per year. If only Japanese consumers were forced to pay two percent more per year for the things they need or desire, all would be well.

Abe’s wish may already be coming true. McDonald’s announced this morning that, for the first time in 5 years, the price of hamburgers and cheeseburgers in Japan will be rising by 20% and 25% respectively. No doubt the Japanese will be so excited by this development that they’ll rush to the stores to consume all the burgers they were planning on eating in 2014 before prices go up again. Of course there is no official concern that low-income Japanese will now have to pay more for low cost food.

The idea that informs Abe’s plan, that rising prices entice consumers to buy before the prices go up, is clearly suspect as economic law dictates that demand increases when prices fall. Any store owner will tell you that cutting prices is the best way to move merchandise. Apart from this problem, how does Abe expect consumers to buy more when their currency is losing purchasing power and more of their incomes will be needed to pay interest on the national debt?

The boldness of Abe’s plans should provide the rest of the world with a crash course in the ability of debt accumulation to jumpstart an economy. The good news is that the effects should not take too long to be seen. I believe that we will be treated with a stark lesson on the limitations of inflation as an economic panacea.

Hopefully, failure of this latest Japanese experiment will help convince leaders in the U.S. and Japan that the only true path to prosperity is free market capitalism. Rather than trying to reflate busted bubbles and micro-manage Keynesian style recoveries, politicians and central bankers should recognize their respective roles in creating the problems and get out of the way.

AP reports ECB chief Draghi says eurozone governments must press on with creating full banking union

International Business Times reports Greece to cut 15,000 jobs as part of Greek Bailout III

Dutch News reports Job centres to slash 4,000 jobs

The Business Insider relates The commodities market sell-off stinks of deflation

NYT Wheelies: the eurozone plunge edition

Globe And Mail Eurozone woes enter a new phase: political upheaval

AP reports Japan PM lays out next steps in growth revival

BBC reports Japan reports record annual trade deficit

Bespoke Investment Group reports Euro spreads decline  In the fixed income universe, markets are rallying. In Germany, according to the WSJ, the government auctioned off 10-year Bunds at a record low yield, and those Bunds are now trading at a yield of 1.24%

Reuters reports Strong Spanish debt auction extends periphery rally

Mike Mish Shedlock reports Spain’s community debt tops €42 billion as unpaid bills moun

Washington Post reports Euro-zone companies face massive debt overhang

Bloomberg reports Italy’s second president vote seen failing as Bersani sits in

Financial Sense reports Rise of the petroyuan

Max Keiser writes The Roman emperors of today

Liberty Classroom You signed a social contract!

Ambrose Evans Pritchard writes Cyprus bailin vote stirs fresh jitters as slump fears grow in Europe. Cyprus has stunned EU officials by ordering a vote in its parliament on the terms of the EU-IMF Troika bailout for the country, risking a rejection by angry lawmakers and a fresh eruption of the crisis.

Robert Wenzel posts Nigel Farage Video This EU is the new communism. It is power without limits.

Gold Money relates No property is safe in the EU, Gerald Casey says.

Ambrose Evans Pritchard writes Five German Wise Men propose wealth tax to pay for EU bail-outs. Wealthy households would face new taxes on property and other assets under German plans to prop up the struggling eurozone.

Senior advisers to Chancellor Angela Merkel are pushing for better-off households to pay towards the cost of any future bailouts for the weaker members of the single currency.

The proposals, from members of Germany’s council of economic experts, raise the prospect of taxes being imposed on property in a country like Spain if its government was forced to seek a bail-out.

The council, known as the “Five Wise Men”, is often used to test new policies that are later adopted officially.

The German suggestion is the latest sign that Berlin is intent on imposing even tougher rules on weaker southern euro members in exchange for using its economic might to support their finances.

As well as inflaming tensions between Germany and its smaller southern partners, the suggestion could also mean that Britons with holiday homes are dragged deeper into the eurozone crisis.

The council, known as the “Five Wise Men”, is often used to test new policies that are later adopted officially.

The German suggestion is the latest sign that Berlin is intent on imposing even tougher rules on weaker southern euro members in exchange for using its economic might to support their finances.

As well as inflaming tensions between Germany and its smaller southern partners, the suggestion could also mean that Britons with holiday homes are dragged deeper into the eurozone crisis.

Around 400,000 Britons live or own homes in the south of Spain, which is suffering a deep recession that is hampering Madrid’s attempts to balance the public finances and stave off a bail-out.

Senior figures in Germany are now arguing that some richer home owners in countries like Spain, Portugal and Greece have so far avoided paying their fair share to rescue the euro, leaving Germany paying too much.

Taxes on property or other assets would mark a significant change in Europe’s approach to funding bail-outs for eurozone members. Until now, the cost of rescue packages for countries like Ireland, Greece and Portugal has fallen largely on people who invest money in either those countries’ bonds or – in the case of Cyprus – bank accounts.

Prof Peter Bofinger, an adviser to Mrs Merkel, said that levies on bank accounts are the wrong way of funding bail-outs, because rich people are able to shift their money out of the country.

“The resourceful rich just move their money to banks in northern Europe and avoid paying,” Prof Bofinger told Der Spiegel, a German magazine.

Instead of taxing cash, European Union governments should in future target property and other, less mobile assets, he said.

“For example, over the next 10 years, the rich should give up a portion of their assets,” Prof Bofinger said. Spain was last year forced to seek international help to prop up its banks. Despite recent signs of progress, some analysts believe the Spanish government itself could also have to seek a bail-out in order to pay its debts.

Spain is suffering from the bursting of a huge property bubble that has left many home owners struggling to sell houses for much less than the price they paid.

A “sovereign rescue” of Spain would dwarf any previous eurozone bail-out package, with Germany again likely to pay the lion’s share.

Mrs Merkel, who seeks re-election later this year, is coming under increasing pressure to drive an even harder bargain in Europe from German voters unhappy at footing the bill for what they see as southern profligacy.

Southern eurozone governments have argued that it is right for Germany to pay more because it is wealthier and because its economy has gained so much from the single currency.

But German economists are now challenging that argument. They say that new figures taking into account property values show that people in many southern countries are actually wealthier than their German counterparts.

Prof Lars Feld, another “wise man”, highlighted a recent study by the European Central Bank, which Germans say show that the people in bailed-out countries are often better-off than those in Germany. Less than half of Germans own their own home, lower than the rate in many southern eurozone members.

The ECB study found that the “median” wealth in Cyprus is €267,000 (£227,600), compared to just €51,000 in Germany.

The median or midpoint level – which strips out the distorting effect of the super-rich – was €183,000 for Spain, €172,000 for Italy, and €102,000 for Greece, and even €75,000 for Portugal.

Average wealth in Cyprus is €671,000, far higher than in the four AAA creditor states: Austria (€265,000), Germany (€195,000), Holland (€170,000), Finland (€161,000).

Prof Feld said the report showed that people in the crisis countries are richer than the Germans. “This shows that Germany has been right to take a tough line of euro rescue loans,” he said.

Alternative für Deutschland, a German eurosceptic party, is putting Mrs Merkel under increasing pressure in her response to the eurozone’s prolonged crisis.

Many members of the new party, which held its first conference on Sunday, want Germany to pull out of the euro and revert to the Deutschmark.

Bloomberg reports Schaeuble favors Liability Hierarchy in European bank bailouts. German Finance Minister Wolfgang Schaeuble said he wants to see a “liability hierarchy” where owners and creditors of banks are first in line to bail them out before governments bolster equity and the European Stability Mechanism provides international aid. “It is not so that all banks can in future cover their capital requirements at the ESM,” Schaeuble told reporters in Dublin after a two-day meeting of European Union finance ministers and central bank governors. “Before the state gets involved in the liability hierarchy, owners and creditors of banks” will be asked to contribute, and the ESM will help if “the government itself can’t because its access to financial markets is restricted,” he said. Independently of the fact that Cyprus was a “unique case, we will no longer accept the moral hazard problem,” Schaeuble said. “In the future, it will have to be possible to wind down troubled banks just like any other company, without risking the stability of the financial sector as a whole.” To the extent necessary, a troubled bank’s home state has to ensure the provisioning of capital, Schaeuble said

ZeroHedge reports Railcar loadings drop most yea-to-date since crisis. (graphs)

Zero Hedge reports Fear the uncorrelated stock market. (graph)

Zero Hedge reports Eight divergences. (graphs)

Zero Hedge reports The return of the money cranks.

Zero hedge reports Five fund flow charts every Japanese stock investor should see.

Zero Hedge reports Exiting the Euro is a debate we must Have, Cyprus Mail says.

Zero Hedge reports Which nations are next? The credit market answers. (graphs)

Zero Hedge reports Priced for perfection – A return to nrmal won’t be enough. (graphs)

Business Insider reports The link between banks and sovereigns in most countries remains strong.

Business Insider reports Germany has picked its next two targets after Cyprus. After squashing Cyprus, gutting its offshore financial and money laundering center, and destroying its main resource, the EU has now trained its big guns on Austria and Luxembourg

Reuters reports BOJ’s Kuroda urges action on public spending, revenue

Ambrose Evans Pritchard writes Threat of ‘wealth tax’ on holiday homes

CNBC reports Wireless Fees Drive Verizon’s Earnings Beat CNBC

Michael Santoli reports on the greatest buyout in Liberalism’s history Dish’s $25B Sprint Bid: Wireless Spectrum Key to “all-in-one” strategy. Dish Network, DISH, down 2%, dramatic $25 billion bid for Sprint Nextel, S, up 13%, is a loud noise made when the unlimited bumps against the finite.

Growth in data transmission is unending, but the wireless spectrum available to handle it is constrained. Demand for an expanding variety of media content is boundless, yet any one company’s ability to deliver it is hindered by regulatory impediments and competitive habits.

Founder and CEO Charlie Ergen built Dish from nothing in 1980 to the third-biggest pay-television operator, with 14 million subscribers to its satellite-based broadband network. Yet he has long been clear about his view that the basic pay-TV business is in the process of being upended by consumers’ increasing willingness to grab entertainment content online wherever they are, a la carte or free of charge, through powerful mobile devices. A cheaper all-in-one, go-anywhere media and communications solution has seemed, to him, the best way both for his company to thrive and for customers to get what they want.

Acquiring Sprint – which is under agreement to sell a 70% stake to Japan’s SoftBank Corp. (SFTBY) – would allow Dish to fold nationwide cellular services into its broadband packages encompassing wireless voice and data, plus in-home TV and Internet. Sprint also owns valuable wireless spectrum that can be put to use in delivering the full array of mobile data and content.

As Dish wrote to Sprint’s board: “”We will be the only company able to offer a fully-integrated, nationwide bundle of in- and out-of-home video, broadband and voice services to meet rapidly evolving customer preferences.” In 20111, Dish picked up Blockbuster’s digital video assets to build its content pipeline.

Benton te writes The halcyon days of Abenomics appears to be numbered

Benton te writes Philippine Economy: Airline liberalization yields greatest number of cheap travel

Real structural reforms on the local economy should be modeled after the Philippine airline industry.  As post-war free market reformist, former Chancellor of Germany Ludwig Erhard, popularly known to have ushered in “Wirtschaftswunder” or German for “economic miracle”, wrote in his classic book Prosperity through Competition, page 1. Competition is the most promising means to achieve and to secure prosperity. It alone enables people in their role of consumer to gain from economic progress. It ensures that all advantages which result from higher productivity would eventually be enjoyed.

Paul Krugman is Liberalism’s icon and chief apologist. Mike Whitney writes Krugman vs Stockman.

Shane Feratu and jeff Lusane of WSWS report Mass layoffs in Illinois. A large number of companies in Illinois have announced closures and job cuts. BizJournals reports L&M Corrugated Container plans to move its Zion, IL, manufacturing plant and 45 jobs to Pleasant Prairie,WI.  Wikipedia relates Pleasant Prairie ranks as the fifth largest manufacturing municipality in the state of Wisconsin, exceeded only by Milwaukee, Green Bay, Madison, and Menomonee Falls.[7]

Inverse Japanese Government Bonds, JGBS, has experienced tremendous volatility, and is trading higher on the month, on Japan’s new monetary policies. Ben McLannahan of FT reports Japanese easing plays havoc with JGBs. So much for Haruhiko Kuroda’s plans to ease the flow of credit. Since the new governor of the Bank of Japan shouldered his ‘big bazooka’ two weeks ago, promising to buy up more government bonds than ever to drive down the cost of borrowing, yields have risen at every point along the country’s 30-year sovereign debt curve, prompting some banks to charge more for loans. At the same time, trading volumes in Japanese government bonds, or JGB, have collapsed, sending volatility to record highs and threatening the ability of the world’s most indebted government to keep funding itself at the world’s lowest rates. An auction last week of 30-year bonds was ‘horrendous’, in the words of one strategist.  Net annual asset purchases by the BoJ have risen to nearly 15% of nominal gross domestic product, notes Nomura, making Mr Kuroda’s ‘new phase’ of easing significantly bigger than any equivalent operation around the world.  Amid the ‘shock and awe’ of this radical policy shift, investors in Japan’s Y914tn ($9.4tn) government bond market, the world’s second-largest, have ‘lost their bearings’, says Naka Matsuzawa, chief Japan rates strategist at Nomura in Tokyo.  ‘For now, the easing programme that was announced with such fanfare must be judged a failure,’ says Jun Ishii, chief fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities.

Doug Noland writes Inflationism of the world central banks has created fualt lines around the globs. Over the years, I’ve highlighted the thinking of the old codgers (including Andrew Mellon) in the late-twenties that had witnessed enough boom and bust cycles during their lifetimes to confidently warn of impending collapse. They were convinced that attempts by our central bank to sustain a protracted inflationary boom (that commenced with the “Great War”) would risk destroying both the economy and the Credit system.

The more “money” central banks inject into the global system, the more this liquidity inflates and distorts securities markets. The greater the stimulus employed to combat deflation risk, the more the over- and mal-investment, especially in China and Asia. The more aggressively activist central banks work to inflate liquidity and market levels, the more encompassing the pool of global speculative finance working to profit from desperate policy measures. The more intensively policymakers in the U.S., Europe, Japan, China and elsewhere work to sustain (“terminal”) late-cycle global Credit excess, the more prominent the inequitable redistribution of wealth to a relatively small group of beneficiaries. We’re deeply into the phase where massive liquidity injections receive little real economy bang for the buck. From this perspective, global policymakers are fighting like crazy in a battle they cannot win. And perhaps that’s what the markets are just beginning to indicate.

IV … It pays to know the characteristics of a psychopath, as well as what gives such life satisfaction.

Psychopaths are distinguished by the manifestation of one of four characteristics 1) charisma or rudeness, 2) loudness, 3) a busybody or gossipy way, 4) derogatory speech, and obtain life satisfaction from being presentational,  confrontational or preeminent. They are chameleons, who while not having multiple personality disorder, do present different persons depending upon whatever is required to best suits their need at the current time. The MSNBC report Bombing suspects’ father calls son ‘a true angel’   

illustrates the chameleon nature of psychopaths.

There is a resolution process of dealing with psychopaths; it involves marking and turning away, as well as withdrawing, as presented in the bible in Romans 16:17, and 2 Thessalonians 3:2-6. Christians practice Biblical Separation daily; it is a tenet of sound christian doctrine: there are four aspects of Biblical separation: political (separation of church and state), personal (separation from sin), ecclesiastical (separation from false teaching), and practical (separation from others who walk disorderly). I am so thankful, that I have tiny space in the sea breeze apartments; it is located just of skid row, in the downtown area of the city of subdued excitement. Just recently I celebrated my fifth year anniversary of independent living by relating to a number of people in the building where I live that I am taking a conservative turn and “no longer speak with anyone in the building”.

V) … Summary … The World Pivots From Liberalism To Authoritarianism

A … Liberalism was birthed as a creature of Jekyll Island, and was strengthened by thought leaders who came out of the Chicago School of Economics. Paul Krugman writes correctly Milton Friedman, currency debaser. Friedman (promoted) the then Chicago (School of Economics) view, that banks should be rescued, government should act to reflate the economy, and that there was a strong case “for the use of large and continuous deficit budgets to combat the mass unemployment and deflation of the times.” The Chicago view he praised are now, according to conservatives, tyrannical socialism.

The Chicago School of Economics has always been known as a hotbed of forward thinking and radical thinking. Dr. Milton Friedman was a father, that is a starter, of the economic and political paradigm paradigm known as Liberalism, which began on November 22, 1910, when a handful of senators and bankers left Hoboken, New Jersey on a train to design the creature from Jekyll Island, that is what would become the US Federal Reserve in 1913. Wikipedia relates these included Senator Nelson Aldrich, Senator A.P. Andrew, Paul Warburg, Frank A. Vanderlip, Henry P. Davison, Charles D. Norton, and Benjamin Strong.

Liberalism was strengthened when the US Dollar, $USD, UUP, replaced the British Pound Sterling as the world’s reserve currency in 1945 with the introduction of Bretton Woods agreements.

In 1971 Milton Friedman proposed the Free To Choose Floating Currency Banker Regime. It was embraced by President Nixon, who took the US off the gold standard and was able to fund the Vietnam War. The World’s Major Currencies, DBV, and Emerging Market Currencies, CEW, began to rise and fall, in respect to relative Nation Investment, EFA, and Small Cap Nation Investment, IFSM, opportunities.  

Liberalism’s Banker Regime was greatly empowered by the the repeal of the Glass Steagall Act, by the Gramm–Leach–Bliley Act of 1999, which was spearheaded by Representative Jim Leach, Senator Phil Gramm, and Robert Rubin.

B … 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, as Daily Ticker reports Gold and stocks in sharp selloff amid global growth worries, and by the fears that the Cyprus Bank Bailin will be used as template in growing sovereign and banking insolvency in the Eurozone.   

Jesus Christ is operating at the helm of the economy 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 … Commodities, DBC, Stocks, VT, Major World Currencies, DBV, and Emerging Market Currencies CEW, traded lower on the inability of the world central banks to continue to stimulate global growth and trade and on fears of sovereign default in the Eurozone.

The week ending April 19, 2013, concludes an age of investment trust in the world central bank’s monetary authority.  Fears are growing that the world’s central bank monetary policies will be unable to stimulate global growth and trade and corporate profitability, and fears are rising as well that Eurozone regional governance presents investment risk, specifically the fear that the Cyprus Bank Deposit Bailin will be used as a blueprint in other eurozone countries.  

The failure of world central bank monetary authority is already strongly underway in the Emerging Markets, EEM, which is seen in the Emerging Market Financials, EMFN, and the Emerging Market Mining Stocks, EMMT, trading lower in the combined ongoing three month Yahoo Finance Chart.  Bloomberg reports Emerging Market losses break from global stock gains. For only the third time since 2001, emerging-market currencies are weakening as global stocks rise, revealing doubts about the ability of economies from South Africa to South Korea to reverse a slowdown. A group of 20 developing-nation currencies lost an average of 0.3 percent this year, including losses of more than 5 percent for the rand and won, while the MSCI World Index of equities advanced 8.3 percent. The 60-day correlation between the group and the stock index fell this month to the lowest since October 2008, data compiled by Bloomberg show. Currencies that typically benefit most from an increase in investors’ appetite for risk are falling out of favor as emerging-market nations struggle to boost growth. “The model of global growth has been broken,” Stephen Jen, the managing partner at SLJ Macro Partners LLP in London and the former head of currency strategy at Morgan Stanley, said in a phone interview. “Those countries with questionable fundamentals in emerging markets are exposed, one by one, by the deceleration. They are starting to feel the pain.”

Jesus Christ, through dispensationalism, that is through the household administration of God for the full completion of every age, era, epoch and time period. Ephesians 1:10, is completing Liberalism, and is introducing Authoritarianism, an era characterised by trust in the diktat of sovereign regional leaders, such as the EU Finance Ministers, and sovereign regional bodies, such as the ECB.  Said another way the age of investment choice has ended and the age of diktat has commenced,

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.   For example, World Stocks, VT, rose 17.6% in value in the last year.  The US Federal Reserve Policies of Quantitative Easing whereby “money good” US Treasuries, TLT, were exchanged for Distressed Investments, FAGIX, held by banks, assisted in inflating fiat wealth after the Financial Collapse of 2007 to 2008, producing Peak Sovereignty, and Peak Seigniorage.  Now Peak Hegemony of the The Enemy-Industrial Complex, that is the iron like strength and formidability of US Dollar Hegemony, is at its zenith.  With the trade lower in Major World Currencies, DBV, and Emerging Market Currencies, CEW, the world is passing into 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 be ruled by ten kings, as foreseen seen by the 300 elite visionaries of the Club of Rome.  

Toxic Credit, consisting of Distressed Investment, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, as well as Currency Carry Trade Investment, ICI, have been the two great levers of Inflationism producing Peak Credit, AGG, and JNK, Peak Major Currencies, DBV, and Peak Money, VT, on April 12, 2013.  

Doug Noland reports Peak Soveign Wealth, Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $675bn y-o-y, or 6.5%, to a record $11.082 TN. Over two years, reserves were $1.427 TN higher, for 15% growth … and reports Peak Peoples’ Available Wealth, M2 (narrow) “money” supply fell $26.3bn to $10.491 TN. “Narrow money” expanded 6.5% ($644bn) over the past year.

Tony Czuczka of Bloomberg reports Data suggesting that people in Spain, Cyprus and Greece are richer than Germans understate the level of prosperity in Germany, Chancellor Angela Merkel said. ‘The statistics are distorted,’ Merkel said. Many more people in southern euro-area countries own homes as a type of old-age insurance than in Germany, and the data exclude Germans’ retirement entitlements and assets abroad, she said. Debate about differences in household wealth in Europe was stoked by headlines in German media on a European Central Bank report that showed households in Cyprus with median net wealth of 266,900 euros ($349,320), the second highest in the euro area behind Luxembourg. Germany, at 51,400 euros, ranked last among the 15 euro countries surveyed”

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

Over the last two years, Liberalism’s Inflationism, was based upon in part on Mortgage Backed Bonds, MBB, paying 1.4%, and Junk Bonds, JNK, paying 6.7%, as well as Distressed Investments, FAGIX, paying 5.2%, taken in and held by the US Federal Reserve under QE 1, as is seen in the ongoing Yahoo Finance Chart of IFSM, EFA, FXR, EWJ, JSC, RZV, and JNK. All Quantitative Easings and especially the last one of Mortgage Backed Bond, MBB, purchases have nationalized credit risk, thus creating the crack up boom in equity investments and debt investments which have finally peaked.    

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.

Destructionism is causing Liberalism’s two spigots of Liberal Finance to be turned off, and in fact causing them to run toxic. The first being, Toxic Credit, consisting of Distressed Investment, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, and the second being Currency Carry Trade Investment, ICI, have both terminated on the exhaustion of the World Central Banks’ monetary authority, as these have crossed the rubicon of sound monetary policy and have finally turned “money good” investments bad; and on fears of intensification of eurzone regional governance consisting of bank deposit bailins, capital controls, new taxes, and austerity measures, replacing the rule of law consisting of constitutional law, parliamentary law, and even natural law.

Bible prophecy communicates that an All Lawful One, Revelation 13:5-10, and an all Lawful Banker, Revelation 13:11-18, will rise to be the Law of Everything and Everyone, as they establish emperor worship in Jerusalem, as foreseen in Daniel 9:25; this will be mankind’s economic and political experience for three and one half years known as The Great Tribulation.  

Yes, a singular, New Pharaoh, The Sovereign, Revelation 13:5-10, and his singular, New Monetary Pope, The Seignior, meaning top dog banker who takes a cut, Revelation 13:11-18, will rise to first rule Europa, in a One Euro Government, and eventually rise to rule the world, establishing a one world government, and a one world religion, Revelation 17:1, via the ‘the mystery of iniquity’, 2 Thessalonians, 2:7, which contrasts with ‘the mystery of Godliness’, 1 Timothy 2:16, with mysteries being unknown knowns, that is truths revealed by God to His saints as to His operations in Christ.

The New Pharaoh, will supercede all of Liberalism’s Pharaohs, such as Pharoah Obama, Pharaoh Merkel, Pharaoh Abe, and others; likewise the New Monetary Pope, will supplant all of Liberalism’s Monetary Popes, Pope Bernanke, Pope Draghi, Pope Kuroda, and others.

Liberalism’s building blocks of credit, which produced prosperity, will be replaced with Authoritarianism’s building blocks of debt servitude producing austerity. 

The failure of Liberalism’s finance, Credit, JNK, and Carry Traded Investing, ICI, has commenced and is evidenced by Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower in value, which also is likely to soon include the US Dollar, $USD, UUP, trading lower in value.  Competitive currency devaluation has commenced, causing disinvestment out of Nation Investment, EFA, Small Cap Nation Investment, EFA, Global Industrial Producers, FXR, Small Cap Value Stock, RZV, and Risk Assets, such as PSP,  FPX, BJK, and CSD, as well as out of International Corporate Debt, PICB, and National Treasury Bonds, BWX.

The Cyprus Bank Deposit Bailin, as covered by Edward Harrison of Credit Writedowns, was and continues to be a corruption of money. Money, took a turn lower in value the week ending April 5, 2013, only to recover in value the week ending April 12, on anticipation of continued US Federal Reserve monetary policies of ZIRP and Quantitative Easing.  But now the world central bank’s monetary expansion capabilities have reached their zenith, and on Monday, April 15, 2013, have actually started Destructionism terminating Inflationism.

Money as it has been known has taken a turn for the worse, as the seigniorage, that is the money producing capability of the world central banks’ monetary policies, is turning toxic on excessive credit, and as the terms of Cyprus Bank Deposit Bailin will be perceived as onerous presenting investment risk.

With the failure of the seigniorage, that is the moneyness, of Liberalism’s fiat money system, the seigniorage of the diktat money system, will come from the diktat of sovereign regional leaders, such as the EU Finance Ministers, and the diktat of sovereign regional bodies, such as the ECB.

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.

Money under Authoritarianism will consist of required compliance to the mandates of soveign regional leaders and sovereign regional bodies, trust in nannycrats, the experience of austerity by wealthy and poor alike, and debt servitude for every man woman and child on planet earth, all for the purpose of securing regional security stability and sustainability. This new money, Diktat Money, cannot be measured with metrics such as M2 Money, but should include metrics such as the degree of povertization and misery. Perhaps World Bank, or the UN will produce A Povertization And Misery Index, just as they have produced such things as a Prosperity Index and a Competitiveness Index. 

Its critical to understand that Diktat Money was born out of the Cyprus Bank Deposit Bailin; 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, austerity measure, 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.

The change from the fiat money system to the diktat money system means a transition from the Milton Friedman Free To Choose Banker Regime to the Beast Regime of Regional Governance, Totalitarian Collectivism and Debt Servitude, as foretold in bible prophecy of Revelation 13:1-4.  Yes, three Beasts are coming to rule mankind, the Beast System, Revelation 13:1-4, the Beast Ruler, Revelation 13:5-10, and the Beast Banker, Revelation 13:11-18. 

The beginning of the end of toxic credit, that is Distressed Investments, FAGIX, Junk Bonds, JNK and Senior Bank Loans, BKLN, and carry trade investing, ICI, poses risk to JP Morgan, JPM.  Reuters reports JPMorgan’s lukewarm results put Dimon under more pressure. I relate that JPMorgan’s, JPM, stock value is in large part based upon the toxic debt that is on its balance sheet which trades in relation to Distressed Investments, FAGIX, as well as in large part due to it being part of the Too Big To Fail Bank Regime, RWW, which was recently boosted by a purchase of the World Major Currencies, DBV, and a sale of the Japanese Yen, FXY, as is seen in their ongoing combined Yahoo Finance chart.

Authoritarianism is characterized by Deflationism: the age of deflation has commenced.  In particular the World Banks, IXG, seen in this Finviz Screener, will see strong disinvestment. The National Bank of Greece, NBG, has been leading all of the world’s financial organizations lower. And the trade lower in the National Bank of Greece has been the leading cause for the trade lower in Greece, GREK, which has been leading Small Cap Nation Investment, IFSM, lower.

GreekCrisisNet reports Statement by the European Commission, the ECB and the IMF on Greece, Press Release No.13/120, dated April 15, 2013. Actions to fully recapitalize the banking sector as envisioned under the program are nearing completion, and the authorities have undertaken to develop a comprehensive strategy for the banking sector following recapitalization. Most of the €50 billion available under the program for recapitalization has already been disbursed to Greece and injected into each of the four core banks by the HFSF as advances to cover their capital needs. The mission’s assessment is that this will provide adequate capital, even under a significantly adverse scenario. These capital buffers will thus ensure the safety and soundness of the banking system and of its deposits.

All the money poured into Greece and its banking system, beginning with the first of three Greek Bailouts since May of 2012, has been money down a rat hole to preserve a failed nation state. It’s just as God presents in the last book of the Bible, The Revelation Of Jesus Christ, in Revelation 13:1-4, that the Beast Regime of Regional Governance, Totalitarian Collectivism, and Debt Servitude, will rise from the profligacy clientelism and cronyism of the Mediterranean Nation States, that is PIGS, these being Portugal, Italy, Greece and Spain.  The banking insolvency and sovereign insolvency of Greece is the linchpin in what will soon be Financial Apocalypse, as presented in Revelation 13:3.   

Alexandros P. Mallias, the Ambassador of Greece, was born on October 1, 1949. His family roots are from the high mountains of Arcadia (Stemnitsa). In 1972, Alexandros Mallias obtained his B.Sc. in Economics from the Faculty of Economics, University of Athens. During the period 1972-1976, he studied Political Science at the University of Geneva and obtained a Postgraduate Certificate from the “Institut des Hautes Etudes Europeennes”, and writes in PDF Document the think tank Crisis Advisory, the article ”A Hymn to Sorrow” for Europe

Neo Magazine reporter Demetrios Rhompotis wrote in April 2008 President Bush salutes Greek Independence. In a straightforward manner rarely used by diplomats and politicians nowadays, Archbishop Demetrios of America, taking advantage of his warm rapport with President George W. Bush (the president has said the Archbishop “soothes my soul”) used the annual celebration of Greek Independence Day this past March 25 at the White House to deliver some unequivocal messages to the seat of power on behalf of American and global Hellenism.

Development Minister Christos Folias who crossed the Atlantic especially for the occasion, represented Greece, along with Ambassador Alexandros Mallias. Ambassador Andreas Kakkouris of the Republic of Cyprus was there on behalf of the other Hellenic state.

“The White House is a great symbol for independence and freedom and liberty, and it’s a fitting place to celebrate the independence of Greece,” George Bush declared. “All free people stand on the shoulders of Greece. In the ancient world where political power usually came from the sword, the people of Athens came together around a radical and untried idea that men were fit to govern themselves. It was this freedom that allowed them to create one of the most vibrant societies in history. And that society deeply influenced America’s founding fathers when they sought to establish a free state centuries later.” He went on to remind that “liberty only survives when brave men and women are ready to come to its defense. In the years leading up to Greece’s war of independence, one of the rallying cries of the Greek people was that it was better to be free for an hour than to be a slave for 40 years. Those were the kinds of folks who had their priorities straight.”

C … Corporations, institutional investors, such as banks and insurance companies, as well as non profit corporations, and educational institutions, should be short the stock market by investing in a number of ETFs which are inverse of the markets; these include Risk Off, OFF, Steepening Yield Curve, STPP, short The Dollar, UDN, short the Euro, EUO, and long Gold, DGP, seen in this Finviz Screener, and short individual stocks such as SVU, GME, BKS, which are some of the most heavily shorted stocks on the market. And should give consideration to investing in 200% inverses of the markets with KOLD, BIS, SDP, SRS, TBT, and JGBS, seen in this Finviz Screener.

Commodities, Stocks And Currencies Trade Sharply Lower On The Inability Of The World Central Banks To Continue To Stimulate Global Growth And Trade

April 16, 2013

On Monday, April 15, 2013, Risk ONN, ONN, to Risk Off, OFF, as the chart of Volatility, ^VIX, shows a strong rise taking Volatility, TVIX, and Volatility, VIXY, higher, as World Stocks, VT, Nation Investment, EFA, such as EZA, RSX, YAO, EWZ, EWW, Small Cap Nation Investment, IFSM, such as ERUS, EWZS, ERIL, VNM, KROO, ENZL, IDXJ, EPHE, EPOL, EFNL, ARGT, EPU, IWM, and GREK, and Global Industrial Producers, FXR, traded sharply lower on the exhaustion of the world central bank’s monetary authority to stimulate global growth and trade, as well as corporate profits, as Daily Ticker reports Gold and stocks in sharp selloff amid global growth worries.  The chart of the S&P 500, $SPX, SPY, showed a 2.3% trade lower to close at 1,552.  Regional Banks, KRE, seen in this Finviz Screener traded 3.1%, lower, taking the credit sensitive Russell 2000, IWM, 3.8% lower.

Loss leaders of the day included the metal and industrial miners

Silver Miners, SIL, 13.2, SILJ, 11.5

Gold Miners, CDX, 9.8, GDXJ, 13.5

Copper Miners, COPX 8.9

Rare Earth Miners, REMX 7.5

Uranium Miners, URA 6.7

Industrial Miners, PICK 5.7

Coal Miners, COAL, 4.5

Pure Small Cap Value Stocks RZV, 4.6, led by Automobile Dealership LAD 5.6, and Capital Senior Living, CSU, 5.2%. Pure Small Cap Growth Stocks, RZG, 3.8, led by Business Material Wholesalers, 6.6.  The stronger fall in the former over the latter is due to the Small Cap Silver Miners, SILJ, and the Small Cap Gold Miners, GDXJ, participation in the Small Cap Pure Value Shocks, RZV.

Yield bearing investment trading lower included

Dividend Excluding Financials, DTN, 2.2

Dividend Growth, VIG, 2.,2

Pharmaceutical, XPH, 2.2

Telecom, IST, 1.4

Utilities, XLU 1.4

Economic Production Sectors, seen in this Finviz Screener, traded sharply lower included:

US Infrastructure, PKB, 5.0

Small Cap Industrial Producers, PSCI, 4.2

Paper Producers, WOOD, 4.1

Global Industrial Producers, FXR, 3.5

Transportation XTN. 3.4

Industrials, XLI,  3.0

Networking, IGN, 3.0

Dynamic Media, PBS, 2.8

Internet Retail, FDN, 2.7

Automobile Manufacturers, CARZ, 2.3

Aerospace, PPA, 2.3

Semiconductors, XSD,  2.3

Risk Assets, seen in this Finviz Screener, traded sharply lower included:

Spin Offs, CSD, 4.3

Clean Energy, PBD, 3.3

Leverage, Buyouts, PSP, 2.8

IPOs, FPX, 3.3

Gaming, Casinos, and Resorts, BJK, 3.0

Biotechnology, IBI, 2.7

Consumer Sectors, seen in this Finviz Screener, trading sharply lower included:

Home Building, ITB, 5.4

Retail, XRT 3.1

Consumer Discretionary, IYC 2.1

Real Estate Sectors, seen in this Finviz Screener, trading sharply lower included ROOF, which traded 2.8% lower, and REM, which traded 2.6% lower. 

Global Producers, seen in this Finviz Screener, traded 3.1% lower.

Global Industrial Producers, FXR, such as IR, seen in this Finviz Screener, traded 3.7% lower 

Industrial Electrical Equipment Manufacturers, seen in this Finviz Screener, traded 4.3% lower.

Diversified Equipment Manufacturers, XLI, seen in this Finviz Screener, traded 3.7% lower.

Business Service Providers, seen in this Finviz Screener, traded 3.6% lower. 

Metal manufacturers, XME, seen in this Finviz Screener, traded 4.0% lower.

Dig and Dirt Moving Stocks, MTW, IR, CR, CAT, KUB, seen in this Finviz Screener, traded 4.2% lower.

Biotechnology Stocks, IBB, seen in this Finviz Screener, traded 3.1% lower.

Paper Producers, WOOD, traded, seen in this Finviz Screener, 5.0% lower,

Real Estate, IYR, seen in this Finviz Screener, traded 3.0% lower.

US Infrastructure, PKB, seen in this Finviz Screener, 4.9% lower.

Retailers, XRT, seen in this Finviz Screener traded 3.2% lower.

Credit Service Providers, seen in this Finviz Screener, traded 3.4% lower.

Energy Stocks, seen in this Finviz Screener, traded 5.1% lower and included

Energy Service, OIH, 5.2

Energy Service, IEZ, 5.0

Energy, XOP, 6.0

Small Cap Energy, PSCE, 5.8

Energy, XLE, 4.1

Commodities, DBC, seen in this Finviz Screener, traded lower as follows

Silver, SLV, -12.6

Gold, GLD, -8.9

Lumber, CUT, -4.3

Oil, USO -3.2

North Sea Oil, BNO -3.1

Commodities, DBC, -3.0

Agricultural Commodities, JJA, -2.1

The chart of Gold, $GOLD, shows close at $1,350 per ounce, as Reuters reports Gold has its biggest 2-day drop in 30 years.  And as Bespoke Invesment Group reports Gold Trades at Most Oversold Levels on Record  AP reports Oil falls to around $89 as China growth slows.

Major World Currencies, DBV, traded 2.1%, lower, and Emerging Market Currencies, CEW, 0.6%, lower. The chart of the US Dollar, $USD, UUP, shows a 0.3% trade higher to close at 82.50. Action Forex reports that the EUR/JPY closed lower from its recent burst higher at 128.30. 

Bonds, BND, rose slightly higher to close at strong resistance; but Toxic Credit, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, traded lower. 

A number of stock sectors entered a bear market on Thursday March 21, 2013, 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’.

Today, Monday, April 15, 2013, 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, transitioning from bull to bear market. The markets have turned from Risk On, ONN, to Risk Off, OFF.

A full expansion of both toxic credit investing, JNK, and carry trade investing, ICI, built upon a falling Japanese Yen, FXY, have been achieved, as is witnessed by Leveraged Buyouts, PSP, and IPOs, FPX, and Global Industrial Producers, FXR, trading lower in value.

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 nine months ago with a Euro Yen, EUR/JPY, currency carry rally; these have all turned lower; Action Forex report that the Euro Yen trade closed lower from its recent burst higher at 128.30.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, commencing competitive currency devaluation as the US Dollar, $USD, UUP, 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 European socialism and Greek Socialism, with the result being that Large Cap Dividend Stocks, Excluding Financials, DTN, such as S&P Telecom, IST, Utilities, XLU, and Pharmaceuticals, XPH, are no longer underwriting Dividend Growth, VIG.

Under Liberalism, moneyness came from Asset Managers, such as BLK, WDR, EV, STT, WETF, and AMG, and the Too Big To Fail Banks, RWW, such as BAC, C, BK, KEY, and JPM, underwritten by Liberalism finance schemes, such as Free To Trade Agreements and Financial deregulation.

The global debt bubble 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, with the result being that the dynamos of global growth and corporate profitability are winding down, and the dynamos of regional security, stability and sustainability are winding up regionalism, and is terminating the concept of investment choice. 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, bank deposit bailins, and capital controls.

With the strong sell of the world major currencies, DBV, and the Emerging Market Currencies, CEW, on Monday, April 15, 2013, the concepts of both credit and money must be reexamined and redefined.

The dynamos of global growth and corporate profit are winding down capitalism, European socialism and Greek socialism, terminating credit.

The end of credit has commenced, on Monday April 15, as seen in most all of the credit instruments seen in this Finviz Screener, EMLP, AUSE, BRAF, DRW, KBWY, DWX, JNK, SEA, IST, EMB, PGF, BKLN, PICB, VIG, XLU, ROOF, IYR, XPH, CWB, VNQ, DTN, MUB, DBU, FNIO, PHO, DWM, DOO, DLS, REM, EDIV, DGS, BWX, IHY, EFA, REZ, KBWD, EUFN, PSP, IFGL, TAO, IFSM, AMJ, DSUM, UJB, PCEF, FLOT, SHY, BND, MBB, GOVT, trading lower in value.

The dynamos of regional security, stability, and sustainability are winding up regionalism, establishing a new trust, the trust in mandates of technocratic government.

On Monday, April 15, 2013, the world passed through Peak Money, VT, Peak Currencies, DBV, and CEW, and Peak Credit, JNK, communicating and end to Liberalism’s Money.

Austrian economist Ludwig von Mises provides insight into the end of  crack up boom Liberalism’s money 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.

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 Nordic Latin Divide, that is the Eurozone North South Divide, will be bridged by such agreements, 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 perceived by Angela Merkel.

Of note, its the end of whatever economic and political system that Slovenia had, as Bloomberg reports Slovenia asset sale plan fails to ease debt squeeze concern. Slovenia’s plan to sell shares in state owned companies failed to ease investor concern that the country will become the next euro-area nation to need a bailout. Slovenia’s default risk rose to a six-month high and bond yields hovered near records as the country prepares to tap markets this week. Prime Minister Alenka Bratusek’s April 12 announcement of plans to sell stakes in companies, including a bank, looks like an effort to stall rather than to obtain financing, according to Milan Smiljanic, head of trading at Perspektiva d.d. “There is skepticism that they are only buying time and will try to fix debt problems, avoiding privatization,” Smiljanic said by e-mail from Ljubljana. “There are no bank bidders at the moment.”

The strong currency action has opened the door to the short selling opportunity of a lifetime where one should commence selling into rallies as they appear, as in a bull market one buys in dips, but in a bear market one sells into pips.

Corporations, Institutional Investors, such as Banks, Insurance Companies, and Nonprofits, should all be short the stock market using DGP, OFF, STPP, UDN, EUO, as a basis of margin, in their short selling account.

This article has been posted to the Internet http://tinyurl.com/dx4k78r

Keywords: diktatmoney

The S&P Rises On Anticipation Of Continued Federal Reserve Easing Yet A Global Tectonic Economic And Political Paradigm Shift Commenced When The ECB Announced A Cyprus Bank Deposit Bailin … Liberalism Is Giving Way To Authoritarianism

April 14, 2013

Financial Market report for the week ending April 12, 2013

I) … Soon bears will be appearing in the stock market bringing tombstones for the leaders of investment choice … as EU Finance Ministers such as Olli Rehn raise the banner of diktat ever more prominently over the Eurozone economic scene.

Scott Grannis writes Corporate profits today are almost 200% above the levels of late 2000. Today’s S&P 500 PE ratio is just above 15, which is below its long-term average of 16. Shouldn’t PE ratios be much higher than average considering that risk-free discount rates are at all-time lows? Bonds and stocks are both priced to pessimistic assumptions about the future health of the U.S. economy, no matter how you look at it.  And Scott Grannis also writes (David Stockman is) dead wrong when he says “the Fed has resorted to a radical, uncharted spree of money printing.” I explain here why this is not true. The Fed is only swapping bank reserves for notes and bonds, and the evidence suggests that they have been doing this to satisfy the world’s demand for safe assets. The Fed may well make an inflationary mistake in the future if it fails to unwind its QE in a timely fashion, but that remains to be seen, it is not yet baked in the cake.

I respond monetary policy is most assuredly a preordained disaste

The swapping bank reserves for seemingly “money good” US Treasuries is going to turn toxic to the Fed Balance Sheet very soon, as the value of assets taken in by QE1 are Distressed Investments which trade in value with those in Fidelity Mutual Fund, FAGIX, are topping out in value. 

The Fed has no exit plan, save only to pay interest on the Excess Reserve; ti will have a load of Distressed Investments and a whole bunch of currencies on its books, which will be rapidly falling in value on competitive currency devaluaion. 

Thus, the world stands at Peak Toxic Credit, as is seen in the charst of Distressed Investment, FAGIX,  Senior Bank Loans, BKLN, and Junk Bonds, JNK, topping out. And indeed for a while as stocks, VT, trade lower, the US Government Debt, ZROZ, EDV, and TLT, will be increasing in value before they too fall dramatically lower in value. Point being all fiat assets, both credit and equities will be deflating in value.  

Shortly the banks will become integrated with the Fed, and be known as the government banks, or Govbanks, for short. The Too Big To Fail Banks, RWW, such as BAC, C, KEY, BK, will be seen and will exist as Big Enough To Help Govern. The same will be true in the Eurozone, the European Financials, EUFN, will be unified into a One Euro Government, as leaders meet in summits to waive national sovereignty and pool sovereignty regionally, and announce regional framework agreements to establish EU regional governance.

With the failure of credit, that is trust in the world central banks’ monetary authority to simulate global growth and trade, as well as to grow corporate earnings, investors will rapidly derisk out of small cap pure value stocks, RZV.  And the Currency Demand Curve, RZV:RZG, will turn increasing lower in value, confirming that competitive currency devaluation is underway, and confirming that the fiat money system is beginning to die; this will be reflected in Major World Currencies, DBV, and possibly also the US Dollar, $USD, UUP, trading lower in value.

Please consider that traditional carry trade investing, which is long currencies, and short the Japanese Yen, FXY, is coming to an end, as is seen in the chart of the Optimized Carry Trade ETFN, ICI, rising along an ascending wedge pattern; soon this will be falling sharply out of its consolidation pattern as the World Major Currencies, DBV and the Emerging Market Currencies, CEW, trade strongly lower on competitive currency devaluation, as the desire for risk assets evaporates, and the Risk On ETN, ONN, falls lower in value, as investors deleverage out of toxic debt such, as Distressed Investments, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, stimulating investors to derisk out of the most debt enhanced stocks such as Leveraged Buyouts, PSP, and the most carry traded stocks such as  Global Producers, FXR, such as KUB, FMX, ERIC, ABB, NVS, IR, BA, QCOM, CR, MTW, JBT, CFX, GE, HUB-B, FLS, MIDD, ZBRA, IEX, ROP, DOV, GPC, MMM, ETN, APH, ROK, ITW, MKTAY, SNA, LECO, IP, WY, PKG, BLL, GPK, KS, MWV, seen in this Finviz Screener.

Institutional Investors such as banks and insurance companies as well as nono profit corporations should be short the stock market using FSG, DGP, OFF, STPP, UDN, EUO, seen in this Finviz Screener, as a basis for their margin short selling account, and not only selling the Global Producers listed above but also the Small Cap Pure Value Stocks seen in this Finviz Screenerhttp://tinyurl.com/bujhr78  … and in this Finviz Screener …  http://tinyurl.com/d7etvm3   

The Milton Friedman Free To Choose Floating Currency Regime, that is the Banker Regime, is giving way to the Beast Regime of regional governance, totalitarian collectivism, and debt servitude, as foretold in bible prophecy of Revelation 13:1-4.  Soon in Euroland, after a European sovereign Default, presented in Revelation 13:3, the periphery countries, especially the PIIGS, will exist as hollow moons, revolving around Planet Germany, for which the Troika, will write the script for eurozone technocratic governance, this being seen in the Reuters report Luxembourg minister says Germany seeks euro zone “hegemony”

A economic and political collapse is coming very soon to Europe, as Reuters reports German imports, exports slump unexpectedly in February, and as the profligate PIGS, that is the periphery countries, Portugal, Italy, EWI, Greece, GREK, and Spain, EWP, are insolvent nations; and the European Financial Institutions, EUFN, are insolvent banks.

Insolvent sovereigns, and insolvent banks cannot provide seigniorage, that is moneyness.    

Jesus Christ is at the helm of the economy of God, Ephesians 1:10, and out of His dispensation, that is out of His administrative rule of the Eurozone sovereign debt and banking crisis, He is pivoting the world from the paradigm of Liberalism into the paradigm of Authoritarianism.

Sovereignty begets seigniorage, that is moneyness. Insolvent sovereigns and their banks are unable to govern and are unable to provide moneyness. Zero Hedge reports 97% of Spanish social security pension fund in domestic bonds. There are a number of reasons why EU banks and retirement funds have loaded up on their own country treasury debts; one being that the purchase of the debt provides funding for the country’s fiscal spending that the financial markets no longer provide. This fake seigniorage, this fake moneyness, cannot continue forever. The purchase of national treasury debt by national banks and national retirement agencies in insolvent countries only concentrates moral hazard for all Euro using nations.

Liberalism was an era characterized by sovereign nations states, whose central banks practiced liberal policies of monetary expansion. The monetary authority of the world central banks gave seigniorage to fiat assets producing Peak Credit Providers, AXP, DFS, V, MA, Peak US Stock Wealth, VTI, and Peak Large Cap Stock Wealth, SPY, Peak US Real Estate, IYR, Peak Banking, IXG, Peak Leverage Investment, PSP, Peak IPOs, FPX, and Peak Dividend Investing, VIG,

Out of growing sovereign crisis will come the new economic and political paradigm of Authoritarianism, as well as a new money system, that being the diktat money system, where diktat of sovereign regional leaders and sovereign regional bodies, serves as currency, money and power directing both economic and political activity most likely through public private partnerships, that is statist organizations, led by representatives from industry, banking and government, to oversee the factors of production. 

Seigniorage that is moneyness, will no longer come from the Banker Regime of Investment Choice, but rather seigniorage will come from the Beast Regime of Diktat, manifesting in the world’s ten regional zones, and in all of mankind’s seven institutions. A world, governed by the Iron Hegemony of The British Empire and the US OIl for Blood Empire, is giving way to a Ten Toed Kingdom of Regional Governance as communicated by the Statue of Empires present in Nebuchadnezzar’s Dream interpreted by the prophet Daniel in Daniel 2:25-45, where toes of iron diktat and clay democracy form an unstable mixture of governance. Inasmuch as Peak Wealth, VT, has been achieved  Peak Hegemony has been achieved.    

EU Finance Ministers such as Olli Rehn are raising the banner of diktat ever more prominently over the Eurozone economic scene, as is seen in the Reuters report The European Commission supports Italy’s plan to accelerate the liquidation of trade debt accumulated by its public administration, Olli Rehn says.

II … Daily stock market trading

IIA) … Monday April 8, 2013

Quartz writes Margaret Thatcher’s Legacy for Business and Economics—the World Weighs in

Despite the fact that her tenure as prime minister ended nearly 25 years ago, Margaret Thatcher continues to divide opinion. Here’s a roundup of views on her economic and business legacy. The AP reports Margaret Thatcher, Iron Lady, dead at 87.Thatcher’s Thoughts from a Life in Politics

The chart of the Japanese Yen, FXY, shows three days of collapse in value causing a blast higher in Hedged Japan, DXJ.

Emerging market Financials, EMFN, are being led lower by Argentine, ARGT, Banks, BBVA, BRF, BMA, GGAL, and India, INP, Banks, HDB, IBN, as is seen in their ongoing Yahoo Finance Chart. The UK, EWW, area banks, LYG, BCS, and especially RBS have fallen sharply as is seen in their ongoing combined Yahoo Finance Chart. South Korea, EWY, Banks KB, and WF, have fallen sharply as is seen in their ongoing combined Yahoo Finance Chart, on the threat of war on the Korean Peninsula. Antiwar reports North Korea closes border industrial region.

IIB) … Tuesday April 9, 2013

Major World Currencies, DBV, blasted higher as investors when long a number of currencies, causing the US Dollar, $USD, UUP, to trade lower.   A rising Euro, FXE, took Greece, GREK, Spain, EWP, Italy, EWI, and Ireland, EIRL, higher.  A rising Australian Dollar, FXA, took Australia, EWA, Australia Dividend, AUDE, Westpac Banking, and Australia Small Caps, KROO, higher.  A rising Canadian Dollar, FXC, took Canada, EWC, and its banks, RY, BMO, BNS, TD, CM, higher, as seen in their combined Yahoo Finance Chart.  A rising Swedish Krona, FXS, took Sweden, EWD, higher.  A rising British Pound Sterling, FXB, took the UK, EWU, higher.  A rising Brazilian Real, BZF, took Brazil, EWZ, and Brazil Small Caps, EWZS, higher.  Rising Emerging Market Currencies, CEW, took the Emerging Markets, EEM, higher.  Mexico, EWW, rose to a triple high.  New Zealand, ENZL, rose to a new high.  Of note, Finland, EFNL, and Poland, EPOL, which had been selling off strongly over the last month as seen in their ongoing Yahoo Finance Chart, traded strongly higher on the day.  Rising currencies gave strong seigniorage, that is strong moneyness to Large Cap Dividend Stocks, Excluding Financials, DTN; these are in a terrific currency and credit based bubble and include S&P Telecom, IST, Utilities, XLU, and Pharmaceuticals, XPH.  

A parabolic rise seen in a number of stock charts suggest that a market top is being achieved; these include IYR, KBWD, ROOF, AMJ, as seen in their combined ongoing Yahoo Finance chart with Dividend Appreciation, VIG. Gold Miners, GDX, SILJ, and Silver Mines, SIL, SILJ, seen in this Finviz Screener, rose strongly. 

Megan Greene of Atlantic Council and chief economist at Maverick Intelligence, previously director of European economic research at Roubini Global Economics, and graduate of Princeton University and of Nuffield College, Oxford University, who worked at JP Morgan Chase & Co. and as an advisor to the Liechtenstein royal family, writes a blog at www.economistmeg.com and ediorializes in Bloomberg relating Cyprus can save itself by fleeing the Euro.  And C. Boyden Gray also of Atlantic Council writes An Economic NATO: A new alliance for a new global insider.  Gary of Between the Hedges relates China Securities Journal reports China risks collapse on outflow, Yu Yongding says. Unexpected outflows without capital account control will lead to massive capital flights, currency depreciation, inflation, asset-bubble bursts, bankruptcy, debt default and finally the collapse of China’s financial system, Yu Yongding, wrote.

IIC) … Wednesday, April 10, 2013

The chart of the S&P 500, $SPX, SPY, shows a strong rise to a new record high as Large Cap Value Shares Excluding Financials, DTN, Real Estate, IYR, and risk assets such as Biotechnology, XBI, rose strongly on anticipation of the Federal Reserve Minutes showing continuing Fed Easing, this despite charts show that a global tectonic economic and political paradigm shift commenced when the ECB announced a Cyprus Bank Deposit Bailin.  The twin spigots of credit liquidity, these being Carry Trade Investing, ICI, with seen in Major World Currencies, DBV, rising higher, and Toxic Credit, consisting of Distressed Investments, FAGIX, Senior Bank Loans, BKLN, and Junk Bonds, JNK, were open and running full-on, supporting the rally in the the S&P 500.  

Briefing.com reports After alternating between gains and losses for 14 straight sessions, the S&P 500 has pulled a hat trick this week.  It has now scored gains in every session this week and, boy, the third time was a charm.

The market rallied sharply, bolstered by its confidence in the support of the Federal Reserve and healthy gains in influential leadership groups that helped both the Dow and S&P 500 register all-time intraday highs and closing highs today.

The minutes from the March FOMC meeting were the focal point throughout the session.  To begin, they caused a stir after being released early (9:00 a.m. ET) since the Fed discovered they were inadvertently released to 100 Congressional staffers and employees of trade organizations around 2:00 p.m. ET on Tuesday.  The matter of their premature release is under investigation, yet the minutes themselves underpinned today’s gains.

Several views were expressed in the minutes, but the compilation of those views pointed to a majority view that the Fed should at least start tapering its purchases by the end of the year on the assumption labor market conditions are improved by then.  It is important not to forget that what the FOMC decides to do will ultimately be dictated by incoming data. The Fed has been clear on that reminder for a long time. To that end, the minutes also pointed out that a couple of members noted the pace of purchases might appropriately be increased (emphasis our own) if progress toward the committee’s economic goals was not maintained. Our view is that the minutes were supportive for the equity market for the following reasons:

  • Not many participants want the Fed to stop or to taper purchases without proof that improving economic conditions are sustainable. Therefore, when the time comes it will be against a backdrop of sustained economic improvement that bodes well for consumer and business spending, and earning prospects.

  • The minutes are working toward reducing the element of surprise for market participants as it relates to future policy decisions.

  • The March nonfarm payrolls report, out after the FOMC meeting, does not fit with the tapering parameters maintained by Fed Chairman Bernanke, Vice Chairman Dudley, and Fed Governor Yellen who will continue to steer the policy directive.

The debate about the inferences of the FOMC Minutes will persist, yet the equity market certainly did not act as if it feared an earlier-than-expected tapering.  The major averages moved steadily higher from the sound of the opening bell before leveling off around 1:00 p.m. ET.  From that point on, they held in tight trading ranges that left them in close proximity to their best levels of the day by the time the closing bell rang.

John Carney of CNBC relates It wasn’t just Capitol Hill staffers and trade groups that received the Federal Reserve minutes a day early. Many banks and other financial institutions also got an early look at the minutes. A list of recipients obtained by CNBC reveals that at least 12 banks, a Wall Street law firm, a hedge fund, and a private equity fund were on the distribution list that got the minutes early.

The banks included Fifth Third, FITB, Citigroup, C, UBS Bank, UBS, Barclays, BCS, Goldman Sachs GS, Wells Fargo, WFC, HSBC Holdings, HSBC, BB&T, BBT, JPMorgan, JPM,  and PNC Financial Services, PNC.  Sullivan & Cromwell, one of the most powerful Wall Street law firms, also got the email.

Indices … A striking divergence has arisen between the S&P 500, SPY, and the Russell 2000, IWM, on the ongoing assumption that the US Federal Reserve will continue QE, supporting the S&P 500, and and the reality that the end of credit is commencing, destabilizing the credit sensitive Russell 2000.  

SPY 1.2 Rose strongly on the rise of the Large Cap Value Excluding Financials, DTN, 1.2

IWM 1.8

VT 1.4 … New rounded top high

Small Caps … The small cap sector stock charts show a total breakdown beginning in April 1, 2013

RZV 2.1

RZG 1.4

Banking … Banking and the Asset Managers, BLK,WDR, EV, STT, WETF, AMG seen in this Finviz Screener which rose 3.6% today, 

EUFN 2.7

KCE 2.1

IXG 1.9

IAI 1.9

KRE 1.6

EMFN 1.4

RWJ 1.1

RWW 1.1

Risk assets rose to or above recent rally highs in anticipation of the Federal Reserve Minutes

IBB 2.7

PBS 1.9

BJK 1.7

FPX 1.2 … Rose parabolically to a new high

PSP 1.1 … Rose parabolically to a new high

KBWD 0.7

Yield bearing sectors seen in this Finviz Screener Screener, 0.7

DBU 1.7

AUSE 1.4 … Australia Dividends rose to a double top high on a rally in the Australian Dollar, FXA.

XPH 1.3

DTN 1.2 … It has been the rise in Large Cap Value Excluding Financials, DTN, that has underwritten rising stocks globally. These have risen on an ongoing assumption that the US Federal Reserve will continue its QE program. Large Cap Value Excluding Financials, DTN, rose parabolically above upper channel resistance on anticipation of the US Federal Reserve Minutes.   

XLU 0.8 … Utilities, XLU, have risen strongly since the Interest Rate on the Ten Year Note, ^TNX, has fallen from below 2.0% since March 15, 2013, when the ECB announced a Cyprus Bank Deposit Bailin as covered by Edward Harrison of Credit Writedowns, which commenced a safe haven rally in US Government Bonds, TLT

VIG 0.8

IST 0.7

IYR 0.6  … Real Estate, IYR, has risen vertically on anticipation of continued US Federal Reserve QE.

Country Investment

EFA 1.5 Chart shows a new rounded top high

GREK 3.2

EWP 3.1

EWI 2.5

DXJ 2.5 New high on a continued fall in the Yen, FXY, to 98.16

EFNL 2.1

EWN 1.9

EWJ 1.8 New high on a continued fall in the Yen, FXY, to 98.16

EWD 1.4

EWW  1.4 New high

EWA 1.1 Rose strongly on a rally in the Australian Dollar, FXA.

EIRL 0.8

Small Cap Nation Investment

IFSM  1.7 Rose near its recent high

EPHE 2.3 Triple top high

KROO 1.7 Rose strongly on a rally in the Australian Dollar, FXA.

ENZL 1.5 New high

JSC 0.3  New high on a continued fall in the Yen, FXY, to 98.16

Real Estate has risen parabolically in anticipation of the Federal Reserve Minutes

KBWY 0.9

FNIO 0.9 … Rose parabolically to a new high

IYR 0.7 … Rose parabolically to a new high

ROOF 0.4

REZ 0.3

REM 0.1

Global Economic Producers … All the charts of the Global Economic Producers show sell off since March 15, 2013, when the ECB announced a Cyprus Bank Deposit Bailin as covered by Edward Harrison of Credit Writedowns.  

IGN 2.8

IGV 2.8

FDN 2.5

XSD 2.0

CARZ 1.9

XTN 1.8

FXR 1.6

XLI 1.3

WOOD 1.1

Retail

XRT 1.5 New high

IYC  1.0 New high

Emerging Markets show a bear market beginning in January 2013

EEM 1.3

EFMN 1.4

EMMT 2.5

Diversified Equipment Manufacturers, seen in this Finviz Screener 1.7

Business Service Providers seen in this Finviz Screener 2.3%

The spigot of Toxic Debt has risen parabolically in anticipation of the Federal Reserve Minutes.

FAGIX 0.4

BKLN  0.1

JNK 0.5

The spigot of both Major World Currencies and Emerging Market Currencies, rose vertically in anticipation of the Federal Reserve Minutes.

DBV 0.6 rose vertically

CEW 0.2 rose vertically

UUP  0.1

IID) … Thursday, April 11, 2013, a broad number of S&P 500 stocks attain 52 week highs.

It was a currency carry trade day. again today.Hedged Japan, DXJ rose 2.1%, establishing a new high on a continued fall in the Yen, FXY, to 98.00. Sweden, EWD, rose on a higher Swedish Krona, FXS. The UK, EWU, EWUS, continued higher on a higher British Pound Sterling, FXB. Europe, VGK, and the European Financials, EUFN, continue higher on a higher Euro, FXE. Australia, EWA, continued higher on a higher Australian Dollar, FXA.

A broad range of sectors rose to new highs on renewed confidence that the US Federal Reserve will continue its monetary policies of Inflationism, specifically ZIRP and Quantitative Easing; these included

1) Risk-on Sectors such as seen in this Finviz Screener.

2) Consumer Sectors seen in this Finviz Screener.

3) Economic Producers seen in this Finviz Portfolio.

4) Real Estate Sectors seen in this Finviz Screener

Bespoke Investment Group writes We finally saw a breakout in new 52-week highs that hasn’t been seen since April 26th, 2010, which was right around the one-year mark after the 2009 bear market low.  As shown below, 31.6% of S&P 500 stocks made new 52-week highs today.  When an index like the S&P 500 is making new highs, technicians like to see a large number of individual stocks in the index also making new highs.  When that is happening, it means there is broad participation in the rally, which is indicative of a healthy bull market.  That’s certainly happening now. An inquiring mind asks, a health bull market or a market top, as Bespoke Investment Group writes Stocks in extreme overbought territory.  The chart of the S&P 500, $SPX, SPY, rose to a new all time high.

IIE) … Weekly  Summary for the week ending Friday, April 12, 2013

This week, the chart of the Major World Currencies, DBV, shows a vertical rise, producing a crack up boom in World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Global Producers, FXR, Dividend Excluding Financials, DTN, and Small Cap Pure Value, RZV, rose higher, as is seen in their ongoing Yahoo Finance chart, producing Peak Stock Wealth.

This week the US Dollar, $USD, -0.5%, UUP -0.1% as DBV 1.1, CEW 0.8. On the upside,  the Swedish Krona, FXS 1.7, the Australian Dollar, FXA 1.1, the Euro, FXE 0.7, the Brazilian Real, BZF, 0.7, the Swiss Franc, FXF 0.5, the Canadian Dollar, FXC 0.3; and on the downside, the Japanese Yen, FXY- 0.9.

Marketwatch reports 30-year mortgage rate falls to 3.43%.

Yahoo Finance reports that the Interest Rate on the 10 Year US Government Note, ^TNX, traded to close at 1.72%

The strong rally in anticipation of the Federal Reserve minutes has now provided short sellers an entry point at the end of this week, as in a bull market one buys in dips, but in a bear market one sells into pips. Daily Ticker video interview reports S&P 500 may fall more than 40% by fall: Chris Martenson  And Breakout video interview reports Bet Against the Herd by Buying Stocks Making New Highs: Detrick. One could go short the ETFs, seen in this Finviz screener as they were as a group are at market top : PSP, IBB, RZV, CARZ ,BJK ,FXR, TAO, WOOD, ITB ,FEMS, AUSE, FPX, ECNS, XSD, FDN, XRT, PXE, PKB, EUFN, IYC, PJP, PBS, XOP, PSCE, ROOF, KBWY, REM, DLS, EWW, THD, EPHE, EIRL, TUR, IDXJ, NMR, RWW, DXJ, KROO, ENZL, IGN, JNK, IAI, KBWD

As revealed in the last book of the Bible, The Revelation of Jesus Christ,  He is now bringing forth ten new things; these are:

  • a New Age, (from the age of investment choice to the age of diktat),

  • New Economic Action (from inflationism to destructionism),

  • New Dynamos (from the dynamos of corporate profit and global growth to the dynamos of regional security, stability and sustainability),

  • a New Trust (from trust in bankers, carry trade investing and credit to trust in nannycrats , totalitarian collectivism, public private partnerships and debt servitude),

  • a New Paradigm, (from liberalism to authoritarianism),

  • a New Sovereignty, (from the Banker Regime of democratic nation states to the Beast Regime of regional governance),

  • a New Seigniorage, (from the seigniorage of investment choice to the seigniorage of diktat),

  • a New Economy (from crony capitalism, european socialism, and Greek socialism, to Regionalism),

  • a New Religion (from religions and philosophies based upon the worship of one’s own will to a mandatory one world religion consisting of emperor worship)

  • a New Money System, (from the fiat money system to the diktat money system)

Spot Gold, $GOLD, traded at $1480 on Friday April, 12, 2013, making for a new low. Yet, wealth will increasingly be preserved and owing by physical ownership of gold, in bullion coins, and in global trading forms, that is in Internet trading vaults, such as BullionVault.  Its only a short matter of time before gold trades higher, recovering from its death cross as is seen in Jack Chan’s chart of the Gold ETF, GLD.

Money, that is wealth as it has been known, is going to be extinguished, yes wiped out, as the monetary policies of the world central banks have passed the rubicon of sound monetary policy; monetization of debt by the world central banks have made “money good” investments bad. While Reuters reports BOJ’s Kuroda: have taken all steps needed for inflation goal, the world is actually at a point where excessive credit liquidity has finally blown the top off the stock market.

Japan is a nation overwhelmed with debt. When one cannot go to the left or to the right, and one can not go up on down, and one cannot return to the light of day, then one must go further in. Japan, EWJ, has gone all in; it has received all the inflation it is going to receive; the benefit of the inflationary stimulus went to those who invested in the stock market beginning in October 2012. On this subject of going all in, Doug Noland provides the following news clippings:

April 10 – Bloomberg (John Detrixhe): “Japanese and investors following them may have purchased about $13.5 billion of non-Japanese bonds since the Bank of Japan announced its unprecedented stimulus last week, 10 times more than the previous period, according to a Societe Generale SA estimate. Speculation has intensified that money will flow out of Japan in search of higher yields elsewhere after BOJ Governor Haruhiko Kuroda said… the central bank will double its monthly bond purchases to 7.5 trillion yen ($76bn).”

April 9 – Bloomberg (Anchalee Worrachate): “Euro-area bonds are rallying as the Bank of Japan’s unprecedented stimulus pushes Japanese investors to Europe for higher returns, neutralizing the impact of Cypriot bank meltdowns and an Italian political stalemate. The BOJ said last week it plans to purchase 7.5 trillion yen ($75.8bn) of bonds a month. That strategy exceeded economists’ median estimate of 5.2 trillion yen a month and is the biggest such move since the nation began a program of so-called quantitative easing in 2001 to stimulate its economy.”

April 11 – Bloomberg (Katie Linsell): “The world’s biggest fund managers see Europe’s junk-bond boom continuing as the prospect of further interest-rate cuts and sustained demand for higher- yielding assets push issuance to a record. BlueBay Asset Management LLP predicts sub-investment grade European companies will sell more than $100 billion of debt this year to lock in cheap funding, beating a 2011 record of $70.5 billion…”

April 11 – Bloomberg (Lisa Abramowicz): “Investors are favoring the riskiest, hardest-to-trade junk bonds by the most in 17 months as confidence mounts that central banks from Japan to the U.S. will prop up debt markets through year-end. The extra yield investors demand to buy the least-traded bonds with the lowest speculative-grade ratings instead of more liquid securities narrowed to 1.2 percentage points on April 9, the smallest gap since November 2011… Yields on the smallest and oldest CCC rated notes contracted by 1.9 percentage points this year, three times the drop on yields for more active notes with comparable grades. Bond buyers seeking to escape the financial repression brought on by near zero interest rates are venturing deeper into the market in search of returns.”

April 12 – Bloomberg (Boris Korby and Julia Leite): “Gerdau SA and JBS SA are leading a revival in overseas corporate debt sales from Brazil as unprecedented bond buying from Japan fuels the biggest drop in emerging-market borrowing costs since November. After the slowest start to a year since 2009, at least six Brazilian companies have sold or are marketing debt abroad this week.”

April 11 – Bloomberg (Yumi Teso and Fion Li): “Borrowing costs in emerging markets sank to record lows as Japan’s unprecedented monetary easing spurs demand for higher-yielding assets. The average yield on developing-nation local-currency debt tracked by JPMorgan Chase & Co. fell 16 basis points since April 3, the day before the Bank of Japan expanded its asset-purchase program, to an all-time low of 5.39 percent yesterday. Ten-year government yields dropped to levels not seen before in Mexico, Czech Republic, Poland and South Africa this week, while comparable rates in South Korea and the Philippines touched all- time lows in the past month. The BOJ said last week it will buy 7.5 trillion yen ($75 billion) of bonds a month and double its monetary base in two years…” 

April 12 – Bloomberg (Toru Fujioka and Masahiro Hidaka): “Governor Haruhiko Kuroda said the Bank of Japan will not set a time limit for easing and will continue until it achieves sustainable inflation. ‘It is not appropriate to say that the monetary easing will only last for two years,’ Kuroda said… ‘The bank will continue with monetary easing, aiming to achieve the price stability target of 2 percent, as long as it is necessary.’”

April 11 – Financial Times (Jeremy Grant): “When a team of analysts at Credit Suisse visited Indonesia a few weeks ago to take the temperature of Southeast Asia’s biggest economy, they were startled by what they were told by one of the country’s biggest property developers. Ciputra Development, which builds luxury condominiums, said that, while prices in central Jakarta, the capital, had been growing at a rapid clip – about 30-40% a year – a new trend had emerged. Demand had started to spill over to greater Jakarta and even to so-called second-tier cities, where Ciputra had seen property prices jump by 50% last year. ‘We felt this was evidence of a property bubble,’ says Robert Prior-Wandesforde, director of research… While the economies of the 10-nation Association of Southeast Asian Nations grew by an average of 5.6% last year… there are dark clouds gathering. ‘The price of key assets, such as property, is rising fast as monetary easing in developed countries continues to send ‘hot’ money from advanced economies in the west, chasing anything that will produce yield.”

The whole concept of God is mysterious, and He loves mysteries, that is secrets revealed to those of His choosing, where His choice is not based upon meritocracy, or the exercise of one’s own will or choice, but the exercise of His Will, from eternity past.

These secrets are known unknowns and revolve around His Son Jesus Christ, who is working according to the law of Universal Administration, that being Dispensationalism, for the fullness of every age, epoch, era and time period, completing it, much as a ship’s captain, assures that everything on the manifest is present before the ship sets sail, Ephesians 1:10.

One of the greatest known unknowns is the Revelation of Jesus Christ, that is, the future today; it is truth for end-times living, Revelation 1:1, which God gave to the Apostle John, in his 90s, in a dream by angels while he was living in exile on the Isle of Patmos, to edify His servants, the saints, as to what must soon take place and fall in place, like lined dominoes toppling one upon another, once the first is knocked over. 

These last days events began in May of 2010 when Herman van Rompuy arranged for the first Greek bailout which began a gradual loss of its national sovereignty, and which served to undermine Liberalism’s democracy based nation investment, crony capitalism, European socialism, Greek Socialism, and started to introduce Authoritarianism’s regionalism, totalitarian collectivism and debt servitude.     

The road to serfdom is paved with the expansion of credit that has come from the two spigots of credit liquidity. The first spigot of credit liquidity has been the world central banks monetization of debt. And the second spigot of credit liquidity has been the sell of the Yen, FXY, beginning October 1, 2013.

Liberalism’s credit liquidity was based upon the Banker Regime’s Fiat Money System, where currencies, founded on national sovereignty, or in the case of the Euro, the Maastricht Treaty, created money, that is wealth. Money was also coined by Asset Managers, BLK, WDR, EV, STT, WETF, AMG, and the securitization of debt and equity by banks such as BAC, JPM, and DEXIA. 

Authoritarianism’s debt servitude is based upon the Beast’s Diktat Money System, where diktat money is coined by the diktat of sovereign regional leaders and the diktat of sovereign regional bodies. The schemes of LIberalism included the repeal of the Glass Steagall Act, and the provision of Quantitative Easing; but the schemes of Authoritarianism include the following:

1) Regional framework agreements such as Greek Bailout I, II, III.

2) Mandates of sovereign regional bodies, that is nannycrats, such as the EU Finance Ministers,  meeting in summits and workgroups, as in the case of the Cyprus Bank Deposit Bailin

3) Policies of regional sovereign leaders, such as the Monetary Pope, Mario Draghi, and his LTRO1, LTRO2, and OMT.

4) Directives of regional public private partnerships, that is where Monetary Cardinals, leaders from industry, banking and government, meet in task forces for statist oversight of the factors of production to manage regional economies, and provide for regional security, stability, and sustainability.  

Sovereignty produces seigniorage, that is moneyness.

Under Liberalism’s fiat money system, the sovereignty of democratic nation states provided  seigniorage, specifically the seigniorage of investment choice establishing credit and prosperity.

But under Authoritarianism’s diktat money system, the word, will and way of sovereign regional leaders, such as the nannycrats, that is the EU Finance Ministers, and regional sovereign bodies, such as the ECB, provides seigniorage, specifically the seigniorage of diktat establishing debt servitude and austerity.

Peak monetary expansion and peak credit liquidity has been achieved, as evidenced by the crack up boom, in S&P Telecom, IST, Utilities, XLU, Pharmaceuticals, XPH, as well as the Global Industrial Shares seen in this Finviz Screener, and by the Elliott Wave 5 High of Major World Currencies, DBV, and the Elliott Wave 2 High of Emerging Market currencies, CEW.  Debt deflation will be getting underway very soon as the FX currency traders sell currencies short, inducing Financial Apocalypse, that is a credit bust and global financial breakdown, as foretold in Bible Prophecy of Revelation 13:3.

Diktat Money is the compliance required, as well as the trust that is engendered, the austerity that is experienced, and the debt servitude that is enforced, when sovereign regional leaders such as Olli Rehn, and sovereign regional bodies such as the EU Finance Ministers or the ECB, invoke mandates for regional security stability and sustainability.

Diktat money is the replacement for fiat money that comes from the paradigm shift tinto Authoritarianism and out of Liberalism where the fiat money system produced fiat wealth via securitization of stocks and bonds by Asset Managers, such as BLK, WDR, EV, STT, WETF, AMG, seen in this Finviz Screener, and the Too Big To Fail Banks, RWW, such as BK, BAC, C,WFC, and Investment Bankers, KCE,  such as JP Morgan, JPM.

The coming of age of diktat money is a characteristic of devolution that comes from the failure of credit seen which will be seen in Leveraged Buyouts, PSP, and Credit Providers, AXP, NNI, COF, MA, V, PRAA,  WRLD, RCII, DFS, FSC, FCFS, CPSS, AGM, SLM, CSE, GPN, NICK , CSH, CACC, ECPG, CIT, NEWS, WU, IX, seen in this Finviz Screener, that comes from the two spigots of Liberal Finance being turned off and running toxic; this being first, Toxic Credit, consisting of Distressed Investments, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, and the second being Currency Carry Trade Investment, ICI, terminating on the exhaustion of the World Central Banks’ monetary authority, which will be evidenced by Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower in value, which also soon may include the US Dollar, $USD, UUP trading lower in value. Competitive currency devaluation, will cause disinvestment out of Nation Investment, EFA, Small Cap Nation Investment, EFA, Global Industrial Producers, FXR, Small Cap Value Stock, RZV, and Risk Assets, such as PSP, PBD, IBB, FPX, BJK, CSD, as well as out of International Corporate Debt, PICB, and National Treasury Bonds, BWX.

Out of ever increasing European sovereign debt crisis, and out of  soon coming Financial Armageddon, that is a credit bust and global financial system breakdown, as foretold in bible prophecy of Revelation 13:3, the diktat money system will rise to replace the fiat money system. This mega financial extinction of investors will occur like the extinction of the woolly mammoth, which died out around the time of the last glacial retreat, as part of a mass extinction of megafauna in northern Eurasia and the Americas, except that Financial Apocalypse will come on with lighting velocity and intensity, catching most investors off guard. 

III) … Disclosure

I exist in poverty, and while I do have an investment account, that is a savings account, it is unfunded; and I use credit and have a big, big, big bill to pay off. 

I live in the faith of Jesus Christ; He provides the His Life indemnity policy, whereby I exchanged my old self for the New Man, and He is now my All Inclusive Life Experience.

I reside in the city of subdued excitement, in the downtown area, near skid row, in the seabreeze apartments, where many “live free” on social security disability, food stamps, have the Obama Phone, and receive assistance from charity non profit organizations such as Opportunity Council providing Springwire community voice mail service, and the Mission providing three hots and a cot if needed.

Ever since a teenager I have lived with antisocial people, but it is only recently that I have come to understand them as psychopaths, a term which likely came into use around 1985, and became increasingly known in 2000 when the Google search engine came into wide use.

I devote time every day to thinking about, and reflecting upon psychopathy, and psychopathic behavior, as it intrudes into my life so frequently, largely because there is so much of it in my two Claritas Lifestyle Prizms, that is Big City Blues (the low income, the uneducated, and the unskilled) and Low Rise Living (the disabled, the derelict, the delusioned, the devoid, and the defunct.)  

The New Testament is written in Greek, a very powerful language, and was wisely translated into English by the King James authors who provided strong presentation of words.

A bible word used to describe psychopaths is poneros, Strong’s word #4190, pronounced pon-ay-ros’,  which depending upon the context of use, means bad, evil, and worst of all wicked, manifesting as full of labours and annoyances producing hardships in lives of all who come into contact with the individual, basically a troublemaker; it occurs 76 times.

In the end times, love of all types will grow cold because of the poneros: love for others, love for God, love for a knowledge of the truth, all will grow cold.     

An important question one should ask is What motivates me and others?  Psychopaths are unreasonable individuals, and get life satisfaction from being poneros, who manifest as bears, lions, and leopards, the three animal characters of the Beast System of Revelation 13:1-4; these be crude, rude, and lewd.

Psychopaths operate in territories as predators, with you being the prey; their territory can be the personal space surrounding them, their workplace, a club they visit, or their neighborhood; and the economy. Their aim is to be an overlord of their territory; they see themselves as cultural warriors, seeking to both assert and protect their culture, that is their way of thinking and things that they themselves determine to be right or wrong according to their own subjective standards; in short they are self appointed social sheriffs who are driven by a need to confront others about everything and anything and to be preeminent.   There are three types of psychopaths:  

1) the bears … gossips,  neighborhood bullies,  busybodies, corporation presidents,  punditsTV personalitiestalk show hosts, and  think tank organizations; they want to rule over you, or make a meal out of you; they are like Diotrephes, “who loves to have the preeminence”, 3 John 1:9;   

2) the lions … nicolaitans, the church clergy, Revelation 2:6, 14-15; they want to make merchandise out of you, 2 Peter 2:3.

3) the leopards … eurozone nannycrats, that is the sovereigns of the Beast Regime; they want to Cyprus you, that is put capital controls on you, place you under totalitarian collectivism, and force you into debt servitude.

All  psychopaths are chameleons and learn through mimicry to act a certain way, which advances their opportunity to engage in devious and mischievous behaviors because who would suspect?

Abuse Sanctuary Blog relates April Wilkinson writes Psychologist explains the psyche of psychopaths. Dr. Sue Stone is a clinical psychologist at the Citizen Potawatomi Nation in Shawnee, a position she’s held since January. Although her work here is in general psychology and therapy, her specialty area is psychopathy, and she came from three years’ work at the Department of Corrections, doing criminal court evaluations, consulting on capital murder cases and more.

Psychopaths also differ in that their intellectual and emotional understanding of things don’t match. Stone said psychologist Robert Hare has a saying for this condition: Psychopaths know the words but don’t know the music when it comes to emotions. “They know intellectually what it is to be sad, but their empathy and regard for other people is not there,” Stone said. “They can mimic the feeling, but they really can’t put words to how they feel because they don’t have that internal experience.”

There is no known treatment for psychopaths; rather, behavior management is the course of action, Stone said. Psychopaths don’t say, “I need help” because they see others as the cause of their problems; they don’t have anxiety to prohibit their behavior, she said. And studies have shown that group therapy not only doesn’t work for psychopaths, it makes their behavior worse, Stone said. They use the therapy setting as practice for manipulating people.

I relate that there is a resolution process of dealing with psychopaths; it involves marking and turning away, as well as withdrawing, as presented in the bible in Romans 16:17, and 2 Thessalonians 3:2-6. Christians practice  Biblical Separation daily; it is a tenet of sound christian doctrine: there are four aspects of Biblical separation: political (separation of church and state), personal (separation from sin), ecclesiastical (separation from false teaching), and practical (separation from others who walk disorderly). 

IV … Sound and beneficial ideas are in scarce, that is in the general sense of the word in limited supply … Sound and beneficial ideas help one understand reality and make sound and beneficial decisions

One’s ideology is based upon either the fiat of philosophy or religion which is basically will worship, that is, the worship of one’s own will. On the other hand, one’s idea are based upon Scripture, that is the Gospel, or Good News of the objective reality of Christ, Ephesians 4:21-24, which provides Grace and Truth, John 1:17.

Unfortunately, much of today’s christian religion is based upon the false premise that one chooses Jesus.  However, sound doctrine is both reformed based, along the lines of John McArthur, John Gill, and John Calvin, as well as restored based, along the lines of Witness Lee and Watchman Nee; and presents that God chose the believer in Christ from eternity past, predestined him, appointed him, and made him accepted in The Beloved.  

Isms are processes that produce states-of-beings from ideas. For example dispensationalism is the  concept that Jesus Christ is exercising administrative management of all things in each of mankind’s epochs, eras, eras, and time periods, to make them full, Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, Colossians 1:25.

Dispensationalism comes from Strong’s Greek word oikonomia, #3622, dispensation, literally means household dispensing, household stewardship, household management and economic oversight of property. Dispensations are epochs, ages, eras, and time periods of mercy and judgement.

MB-Soft relates Dispensational theology grows out of a consistent use of the hermeneutical principle of normal, plain, or literal interpretation. This principle does not exclude the use of figures of speech, but insists that behind every figure is a literal meaning. Applying this hermeneutical principle leads dispensationalism to distinguish God’s program for Israel from his program for the church. Thus the church did not begin in the OT but on the day of Pentecost, and the church is not presently fulfilling promises made to Israel in the OT that have not yet been fulfilled.

The objective reality is that this week’s robust stock market performance is concluding an age of investment trust in the world central bank’s monetary authority, as Jesus Christ through dispensationalism is completing Liberalism, and is introducing Authoritarianism, an era where trust will be in the diktat of sovereign regional leaders, such as the EU Finance Ministers, and sovereign regional bodies, such as the ECB.

Through currency debasement, in particular the long term sell of the US Dollar, $USD, UUP, up until February 1, 2013, and now the sell of the Japanese Yen, FXY, money, that is wealth, inflated in value.

Under Liberalism, money was coined by Asset Managers such as BLK, WDR, EV, STT, WETF, AMG, with the provision of ETFs, and money was coined by the securitization of investments by banks such as BAC, JPM, and DEXIA.

Yet Liberalism’s two spigots of Liberal Finance will soon be turned off and will be running toxic. The first t being, Toxic Credit, consisting of Distressed Investment, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, and the second being Currency Carry Trade Investment, ICI, terminating on the exhaustion of the World Central Banks’ monetary authority, which will be evidenced by Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower in value, which also soon may included the US Dollar, $USD, UUP trading lower in value. Soon coming competitive currency devaluation, will cause disinvestment out of Nation Investment, EFA, Small Cap Nation Investment, EFA, Global Industrial Producers, FXR, Small Cap Value Stock, RZV, and Risk Assets, such as PSP, PBD, IBB, FPX, BJK, CSD, as well as out of International Corporate Debt, PICB, and National Treasury Bonds, BWX.

The Cyprus Bank Deposit Bailin, as covered by Edward Harrison of Credit Writedowns, was and continues to be a corruption of money. Money, took a turn lower in value the week ending April 5, 2013, only to recover in value this week on anticipation of continued US Federal Reserve monetary policies of ZIRP and Quantitative Easing.

Money as it has been known will be taking a turn for the worse, as the seigniorage, that is the money producing capability of the world central banks’ monetary policies, is turning toxic on excessive credit, and as the terms of Cyprus Bank Deposit Bailin will be perceived as onerous presenting investment risk.

With the failure of the seigniorage of the fiat money system, the seigniorage of the diktat money system, will arise from the diktat of sovereign regional leaders, such as the EU Finance Ministers, and the diktat of sovereign regional bodies, such as the ECB. 

Money under authoritarianism will consist of required compliance to mandates of soveign regional leaders and sovereign regional bodies, trust in nannycrats, the experience of austerity, and debt servitude, all for the purpose of securing regional security stability and sustainability; and thus cannot be measured with metrics such as M2 Money. 

Diktat Money was born out of the Cyprus Bank Deposit Bailin; 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.

V … Ideas come from fathers, that is from starters, and serve as the basis for eveyr age, epoch, era and time period … their ideas form the basis for economic and political authority.

Liberalism began on November 22, 1910, when a handful of senators and bankers left Hoboken, New Jersey on a train to design the creature from Jekyll Island, that is what would become the US Federal in 1913; Wikipedia relates these included Senator Nelson Aldrich,  Senator A.P. Andrew, Paul Warburg Frank A. Vanderlip,  Henry P. Davison, Charles D. Norton,  and Benjamin Strong

David Ben-Gurion led Israel in the 1948 war which the Israelis referred to as the War of Independence and thus Israel expanded the territory awarded by the British Empire under the Balfour Declaration of November 2, 1917, to become a nation state. His nation craft was one of many events that diminished the global hegemonic power of the British Empire.  About.com Geography relates that in 1954, Egypt and the UK signed a seven year contract that resulted in the withdrawal of British forces from the canal area and allowed Egypt to take control of the former British installations.  The handing back of Hong Kong to China on July 1, 1997, closed the final chapter on the British Empire as it was the last significant colony.

Thus the first of the two global hegemonic powers to fall, as seen in bible prophecy of King Nebuchadnezzar’s Statue of Empires, Daniel 2:25-45. was the British Empire. The other kick-ass, commerce and debt based global hegemonic power, is the United States.

This second iron leg of prophesied global hegemonic power, rose to preeminence beginning in 1971 when Milton Friedman proposed the Free To Choose Floating Currency Banker Regime.  It was embraced by President Nixon, who took the US off the gold standard and was able to fund the Vietnam War.  In 1997, neoconservative writers and pundits advocated aggressive US foreign policies and rallied support for American global leadership via the Project for the New American Century, PANC, which according to William Rivers Pitt writing in Information Clearing House, resulted in the organization of the US military into regions and a Blood for Oil War in Iraq.  Al Jazeera reports that    dozens of US and allied forces present a globe-spanning American archipelago of bases. The goal of the Free To Choose Floating Currency Banker Regime was never ever to promote Freedom, but rather to ground, that is make Democracy firm, that is make the currencies of democratic republics reliable for nation investment. Democracy was strengthened by Free Trade Agreements, cooked up by think tanks, which opened the door for corporations to grow profits and expand global growth and trade. The world central banks’ monetary policies of ZIRP and Easing facilitated Inflationism to the point where Nation Investment, EFA, Small Cap Nation Investment, IFSM, and Global Industrial Production, FXR, rose to new highs this week reflecting Peak Democracy. Wherever there be a central bank, and participation in the Free To Floating Currency Regime, there will never ever be a Free People.               

Liberalism’s Banker Regime was greatly empowered by the the repeal of the Glass Steagall Act, spearheaded by Representative Jim Leach, Senator Phil Gramm, and Robert Rubin.

Scott Grannis in Come and get it,  communicates that Liberalism featured Free Money. With the deductibility of mortgage interest and inflation, a 30-yr fixed-rate mortgage is essentially free money. The CPI has averaged about 2.5% for the past 15 years, and most folks with a jumbo loan should be able to deduct about 35% of the interest. The after-tax interest cost would be about 2.5%, and subtracting inflation of 2.5% gives you zero.

Today, through trust in monetary expansion policies of the world central banks, the world stands at Peak US Hegemony, as Liberalism’s Banker Regime has succeeded in coining Peak Money, that is Peak Wealth, measured by World Stocks, VT,  Global Industrial Producers, FXR,  rising to a new weekly highs. The crack up boom, which came on rising credit of all types,  has reached its zenith.  

Peak Credit has been achieved as is seen by the rise in Toxic Credit to new heights, this includes Distressed Investments, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, as well as the credit providers, AXP, V, MA, IX, residing near record highs.

Peak Carry Trade Investing has been achieved, as is seen in the Optimized Carry Trade ETN, ICI, residing at the apex of an ascending wedge, and Major World Currencies, DBV, having risen to a new rally high, and Emerging Market Currencies, CEW, rising near its recent high. 

And Peak Mortgage Recovery has been achieved as Jeff Macke of Breakout reports Mortgage recovery has peaked: Whalen says Chris Whalen, managing director of Institutional Risk Analytics, says there’s turmoil under the surface for big ban.

This the Golden Age of America. The online dictionary informs, a time period when some activity or skill was at its peak; and the Oxford dictionary defines, an idyllic, often imaginary past time of peace, prosperity, and happiness. the period when a specified art, skill, or activity is at its peak.

This week stock sector gainers included Nasdaq Biotechnology, IBB, 5.9%, Biotechnology, XBI, 5.1%

Dynamic Media, 4.4%, Semiconductors, XSD, 4.1%, Retail, XRT, 4.1%, Gaming Stock, BJK, 3.7%,  Networking, IGN, 3.5%, Consumer Discretionary, IYC, 3.1%, Leveraged Buyouts, PSP, 3.0%, Industrial Office REITS, 3.0%, Real Estate, IYR. 2.7%, Small Cap Real Estate, 1.3%.

This week stock sector losers included Gold Mining, GDX, -8.1% as GLD, -5.8 and Silver Mining, SIL, -5.3% as SLV, -4.2.

Vice Stocks, VICEX, have performed quite well. Benton te writes of this and the risks in The Philippine casino bubble.

Countries taking Nation Investment, EFA, to a new high include Japan, EWJ, Sweden, EWD, US, VTI

Switzerland, EWL, Australia, EWA, Mexico, EWW, The UK, EWU, and Turkey, TUR.

Countries taking Small Cap Nation Investment, IFSM, to a new high include The Philippines, EPHE,

Indonesia Small Caps, IDXJ, Ireland, EIRL, Australia Small Caps, KROO, Japan Small Caps, JSC

UK Small Caps, EWUS.

Doug Noland reports weekly on sovereign wealth that the wealth of the sovereigns has continued on to a new high:  Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $674bn y-o-y, or 6.5%, to a record $11.082 TN. Over two years, reserves were $1.433 TN higher, for 15% growth. The world has achieved Peak Sovereign Wealth.

And Mr. Noland reports M2 (narrow) “money” supply surged $67.8bn to a record $10.518 TN. “Narrow money” expanded 7.0% ($684bn) over the past year. The world has achieved Peak Discretionary Wealth reflected in investment in Retail, XRT, Consumer Services,  IYC, Global Consumer Consumer Staples, KXI, Global Consumer Discretionary, RXI, Homebuilding, ITB, and US Health Care Providers, IHF, rising to new highs or trading just under recent highs. 

It is sovereignty that begins seigniorage. Liberalism through the monetary policies of the world central banks has succeed in producing Peak Sovereignty and Peak Seigniorage. 

On the topic of Peak Money Doug Noland writes Things have gone to far. As difficult as it may be for most to believe, the world’s preeminent central bankers are a select group of highly intelligent public servants that suffer from a huge void in their understanding of contemporary finance.

They subscribe to an erroneous and outdated doctrine of how finance operates and seem to share a flawed perspective with respect to the interplay of contemporary finance, financial markets and economies. Worse yet, Dr. Bernanke is wedded to a (Milton) “Friedmanite” revisionists view that the “Roaring Twenties” was the “Golden Age of Capitalism” brought needlessly to an end by negligent central bankers unwilling to print and inflate. His fixation has been with policy mistakes in the 1930s – with little apparent interest in those from the 20s, 70s, 80s, 90s or 2000s.

For too many years (going back to the 90’s) the Fed and global central bank policies have incentivized leveraged speculation. This has fostered a massive inflation in this global pool of speculative finance that has ensured too much market-based liquidity (“money”) has been chasing too few risk assets. Speculative excess today encompasses all markets, including gold and the commodities. Over recent months, these Bubbles have become increasingly unwieldy and unstable. Commodities are the first to crack.

Forecasting Bubble behavior is a tricky, tricky business. Yet I’ll stick with the view that Europe is the initial major crack in the “global government finance Bubble.” And while Draghi resuscitated “risk on” throughout Europe, this actually works to exacerbate fragilities as that region struggles with a deep and evolving crisis. I’ll stick with the view that five years of global financial excess has helped push China to the status of a crazy dangerous Bubble. And I see no reason to back away from the analysis that the emerging economies in general suffer from a dangerous Bubble mix of rampant Credit excess, problematic imbalances and deteriorating economic performance. Moreover, I’m content with the view that the “global leveraged speculating community” is one huge accident in the making.

I relate that Jesus Christ is working Dispensationalism to pivot the world from Liberalism into Authoritarianism, Ephesians 1:10.

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.

Daily Silver News reports Draghi orders Cyprus to sell all gold reserves to cover shortfall in Emergency Loan Assistance by the ECB. relating that the ECB chief said “the government must abide by the central bank’s handling of the gold stock, since it is independent from political control under European rules.” 

Mike Mish Shedlock writes of Cyprus Band Deposit Bailin Liar, liar, pants on fire; spoon-fed demands by the number. About that Cyprus shortfall, As I expected, it’s a lot bigger than the Troika expected, assuming you believe the Troika was telling the truth about the size of the needed bailout. The Guardian reports Cyprus forced to find extra €6bn for bailout, leaked analysis shows. Cypriot politicians have reacted with fury to news that the crisis-hit country will be forced to find an extra €6bn (£5bn) to contribute to its own bailout, much of which is expected to come from savers at its struggling banks.

A leaked draft of the updated rescue plan, which emerged late on Wednesday night, revealed that the total bill for the bailout has risen to €23bn, from an original estimate of €17bn, less than a month after the deal was agreed – and the entire extra cost will be imposed on Nicosia.

Visiting Athens, the Cypriot parliament’s president, Yannakis Omirou, said the tiny island nation had been “served poison” by its EU partners.

The €23bn overall bill is larger than an entire year’s output from the Cypriot economy.

Cyprus hammered into submission.

Step by step, Cyprus has been hammed into submission. Its economy has been ruined for at least a decade.

Recall the original deal was €13bn. It is now €23bn.

Recall that Cyprus Popular Bank, Laiki, was supposed to have 30% losses. Guess what?

Spoon-fed demands by the number

  1. Laiki 100% wiped out

  2. Capital controls

  3. Losses exceed the size of the entire Cypriot economy

  4. Cyprus would have to sell its gold

  5. The Cypriot Central Bank would lose its independence

  6. Cyprus will go into an economic depression for a decade to pay for the “bailout”

Cyprus has been spoon-fed a pack of escalating demands by the Troika.

Had Cyprus initially understood the totality of what was going to happen, Cyprus may have done the right thing which should now be obvious: Tell the Troika to go to hell, default, exit the eurozone. It’s still not too late, but Cyprus needs to do so before it sells its gold.

Zero Hedge relates The European Commission lays out the true blueprint for the future pf every European country.

Tobias Buck in Madrid and Michael Steen of Financial Times report Mariano Rajoy, the Spanish prime minister, has called for the European Central Bank to be handed more powers, highlighting renewed north-south political tensions about the bank’s role in battling the eurozone debt crisis. ‘I think in Europe we must all ask ourselves whether the ECB should have the same powers as other central banks around the world,’ the Spanish leader said.

CNBC relates El-Erian: Cyprus Rescue goes from bad to worse.

Reuters reports Germany puts brakes on EU bank union with treaty call

Christoph Dreier of WSWS relates The Cypriot bailout marks a new stage in the euro crisis.    Fifty-five years after the founding of the European Economic Community, the project of unifying Europe on a capitalist basis has been irrevocably shattered by the global economic crisis. And Robert Stevens of WSWS relates European Union imposes austerity bailout on Cyprus. The terms dictated to Cyprus by the European Union in exchange for a bailout are predicated on the destruction of the pay and conditions of the working class.

The Telegraph reports Cyprus faces economic meltdown as EU-IMF refuses extra aid:.Cyprus must take on an extra €5.5bn in the cost of its bail-out, a sum equivalent to a third of the island’s annual GDP, without any additional help from the European Union and IMF.

Marketwatch reports Cyprus causing fresh market pain as doubts grow over ability to meet bailout terms

CNBC reports Confusion over Cyprus’ Bailin funding grows

The NYT reports Bailout terms are eased for Ireland and Portugal

Reuters reports Slovenia eyes bank sell-off, budget revision to avoid bailout

I relate that The Luminaries of Authoritarians are providing the few scarce ideas that are powering up the Beast Regime of regionalism, totalitarianism, and debt servitude, as foretold in bible prophecy of Revelation 13:-14. This monster is rising from EU sovereign default and from the banking crisis of the PIGS, that is the Mediterranean Sea nations of Portugal, Italy, Greece, and Spain. 

Tom Stoukas of Bloomberg reports Greece’s unemployment rate increased to a record in January as the country’s economic downturn entered a sixth year. The rate rose to 27.2% from a revised 25.7% in December.  I comment that the Troika’s Diktat is producing its fruit of increasing austerity and debt servitude.

Andrew Davis and Lorenzo Totaro of Bloomberg report Italy’s debt will reach a postwar record this year as the recession-hit country borrows to contribute to bailouts and pay arrears to suppliers. The public debt will rise to 130.4% of gross domestic product in 2013 from 127% last year. The budget deficit will drop to 2.9% of GDP this year, putting Italy within the European Union’s 3% limit.

Angeline Benoit of Bloomberg reports Spain’s failure to honor budget-deficit goals has hurt the country’s credibility and justifies a negative outlook on the sovereign’s credit rating, Moodys’ said. ‘The continued deviations from agreed budgetary targets as well as the repeated revisions of budget deficit outcomes are weakening the credibility of the Spanish government in the area of public finance,’ Moody’s analysts Kathrin Muehlbronner and Bart Oosterveld wrote.

It is the debt issuance, run away fiscal spending, national wage laws, anti-competitive legislation, and clientelism of European socialism and Greek socialism, as well as the excesses of the world central banks’ monetary policies that have crossed the rubicon of sound monetary policy, that will make “money good” investment bad, and will result in the collapse of the second iron leg of global hegemony, that being the US, and the rise of the Ten Toed Kingdom of regional governance as seen in King Nebuchadnezzar’s Statue of Empires, Daniel 2:25-45.

Liberalism featured the fiat money system where sovereign nation states gave the seigniorage, that is moneyness, of investment choice to credit and currencies, producing prosperity

Authoritarianism features the diktat money system where sovereign regional leaders and sovereign regional bodies provide the seigniorage of diktat, where mandates serve as currency, money and power, producing debt servitude and austerity.

Wealth can only be preserved by investing in and taking possession of gold , either in bullion form or by trading on Internet vaults such as Bullion Vault. John Rubino relates The Long Wave  ersus the printing Press: Another 2008?  Marc Faber of the Gloom Doom Boom Report was interviewed by Bloomberg on Friday, and of course topic number one was the brutal takedown of gold. Reassuringly, he likes the resulting buying opportunity and expects “a major low in gold within the next two weeks.” 

An inquiring mind asks, Emulate Ron Paul, as the Daily Bell suggests, or imitate the Apostle Paul, as Scripture suggests?

Jesus Christ will oversee the destruction of all existing economic and political life as the pivots the world out of Liberalism and into Authoritarianism, in order that one might come to see Him as the Light of the world, John 8:12, and trust in Him for Life, Colossians  3:3-4, and as one’s All Inclusive Life Experience, Colossians 3:11.  

If you are looking for Freedom, that is the right to use personal property and intellectual property without state intervention, I must tell you that you are wasting your time, as Jesus Christ never, ever intended that be a Free People anywhere outside of The Church, that is the collection of believers in Him, Jesus Christ, Savior and Lord God Almighty.

Liberalism featured a Free To Choose Floating Currency Regime that awarded fantastic investment prosperity through the facilitation of moral hazard.  Risk Assets such as PSP, PBD, IBB, FPX, BJK, CSD, performed quite well on the World Central Banks’ Cool Aid of Toxic Debt, which included Distressed Investments FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, as well as their Cool Aid of Carry Trade Investing, ICI, which came on the purchase of Major World Currencies, DBV, Emerging Market Currencies, CEW, and sell of the Japanese Yen, FXY.  

Austrian economist Mike Mish Shedlock writes The Eurozone is a failed experiment. The Eurozone is a failed experiment. Structural flaws were too great initially, and they have increased over the years. No currency union in history has ever survived unless there was also a fiscal union. Current politics says it cannot happen, on meaningful terms. A breakup is inevitable, just as it has been from the beginning. The key is to manage a breakup in the least destructive manner.

The Eurozone has been and will continue to be the lynchpin in Christ’s Dispensation, Ephesians 1:10, to bring Democracy and Investment Choice to completion, that is its fulfillment, but these are coming to an end with the Cyprus Bank Deposit Bailin. Now Diktat is coming to underwrite mankind’s economic and political activities, as Jesus Christ is bringing forth a New Regime, that is the Beast Regime of Regional Governance, Totalitarian Collectivism, and Debt Servitude, Revelation 13:1-4, which will be accompanied by the rise to power of a New Pharaoh, Revelation 13:5-10, and a New Monetary Pope, Revelation 13:11-18.  To accomplish His aims, He is unleashing the Four Horsemen of the Apocalypse, the First Horseman of the Apocalypse is the Rider on The White Horse, who has a bow, without any arrows to effect a bloodless global and economic coup d’etat, to transfer the baton of sovereignty from nation states to regional leaders and regional sovereign bodies such as the EU Finance Ministers and the ECB, Revelation 6:1-2

VI … Suggested reading. Hat Tip to Dollar Collapse for most of these items.

Ron Paul’s Podcast Nation: Cyprus Fair Warning – Liberty Crier

Ron Paul’s Podcast Nation – Liberty Crier

Neo-Con War Addiction Threatens Our Future – Liberty Crier

Internationalizing Your Assets Webinar – Casey Research

Doug Casey On Internationalizing Your Assets – Casey Research

The Destruction Of Offshore Banking Tolls For Thee – Daily Bell

Don’t Depend On Bank Deposit Insurance: Mike Shedlock Says— Daily Ticker

Taking Distortion at Face Value – John Mauldin

A Big Week For IPOs, And More Are Coming –CNBC

Profiting From The End Of The Monetary System As We Know It – GoldSeek

Japan Move Raises Talk Of Currency Controls — BBC

5 Of 10 Top Economies In The World Drop The Dollar – Activist Post

Australia To Abandon The US Dollar  — TheTrumpet.com

China’s Shadow Banking Boom Rings Alarm Bells — Ambrose Evans Pritchard 

Taking Distortion at Face Value – John Mauldin

The Theology of Inflation – John Mauldin

Witches Brew: Part 4 – Reality Bites – Ty Andros, 24hGold

Buying Dead Flowers – Rick Mills, Ahead of the Herd

ZIRP (0%) is Not Stimulus, Rather a Death Knell – Jim Willie

Doug Casey: All Banks Are Bankrupt – Casey Research

The Confiscation Scheme Planned For US And UK Depositors – Counterpunch

We’ve Been Lied To, Robbed, And Misled – Peak Prosperity

Countries Are Now Printing Paper Without Limit – Bull Market Thinking

Ron Paul’s Worldview Forged in Early Family Life – David Halbfinger, New York Times

US Government Debt Monetization – Michael Pollaro, Forbes

Crony Economist Mark Zandi Likely to Head Agency that Regulates Fannie Mae — Robert Wenzel of Economic Policy Journal

Ron Paul To Launch New Policy Institute: The Ron Paul Institute For Peace And Prosperity — Robert Wenzel of Economic Policy Journal

The Future Of The Euro: Lessons from History” Conference. It’s sponsored by the University of California, Institute of European Studies, the Austrian Marshall Plan Foundation and the Austrian National Bank, will be held at the University of California, Berkeley. According to the event organizers, the event will focus on the following questions: Will the Euro survive? Should it survive? Will the current crisis lead to the banking, fiscal, and political union ultimately required for monetary union and envisioned when the euro was created? Or will current efforts to stabilize the monetary union with only limited moves in the direction of banking, fiscal and political union suffice to save the euro? Is there danger that pressure for deeper integration will only worsen the “democratic deficit problem” and create a backlash against the larger European project? Helene Schuberth, Senior Advisor, Austrian National Bank and Brad DeLong will be among the participants. (Hat Tip to Robert Wenzel)

VII … Coming up in future reports

1) Is morality inherited? Does antipathy or empathy come by nature or nurture? Is virtue established in the womb or even before conception?

2) Defining characteristics of psychopaths. If one knows these characteristics, one can spot a psychopath a mile off and avoid them.

3) What is truth? It’s the most important question ever asked?

4) What establishes Scripture as authoritative and reliable for belief? 

5) Who’s that woman dressed in purple and riding the Beast?

6) Women can be psychopaths too.

7) Some claim to be Jews but are not.

8) Is there such a thing as a sovereign individual? Does a person have a soul, and what is the definition of a soul?

Keywords: diktatmoney

Peak Credit Achieved ….. Stocks Trade Lower As The Age of Investment Choice Transitions Into The Age of Diktat ….. On US Job Market And Service Businesses Weakness As Well As Fears Of Eurozone Sovereign And Banking Insolvency … Capital Controls Will Eventually Be A Reality

April 8, 2013

Financial Market Report for April 5, 2013

1) … Introduction: There is a God, that is an eternal spiritual being, whose nature is love, who exists in light, and operates with dynamic power in an electrical and physical universe; sound ideas are scarce, that is in using the general sense of the word, genuine and reliable wisdom and knowledge is limited, as God works to enlighten who He chooses, and works his dispensation, that is economic and economic plan, through the sovereign authority of His Son, Jesus Christ.

 

All things in the universe are governed by sovereign authority and operate by isms, that is processes, such as dispensationalism, liberalism, authoritarianism, crony capitalism, european socialism, Greek socialism, regionalism, etc.  A dispensation is a period of time during in which Christ works God’s will to completion, that is fulfillment.

 

Dispensationalism, is the ideology that Jesus Christ, God’s Son, is the power of God, 1 Corinthians 15:24, and He having all sovereignty, and being the all Sovereign One, Colossians 2:10, is in charge of the administration, that is the management, of all things, Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, Colossians 1:25, and presents that He created Liberalism, as an age where trust in credit produced prosperity.

 

Strong’s Greek word oikonomia, #3622, dispensation, literally means household dispensing, household stewardship, household management and economic oversight of property. Dispensations are epochs, ages, and time periods of mercy and judgement.

 

MB-Soft relates Dispensational theology grows out of a consistent use of the hermeneutical principle of normal, plain, or literal interpretation. This principle does not exclude the use of figures of speech, but insists that behind every figure is a literal meaning. Applying this hermeneutical principle leads dispensationalism to distinguish God’s program for Israel from his program for the church. Thus the church did not begin in the OT but on the day of Pentecost, and the church is not presently fulfilling promises made to Israel in the OT that have not yet been fulfilled.

 

The greatest idea of all is that there is a God who operates with eternal power Romans 1:20, that He is Love, John 15:9 1 John 4-8-10, and that He is Light, Luke 1:79, John 3:19, John 8:12, John 12;46 and 1 John 1:5, and that in Him all live and move and have their being, Acts 17;28.

 

The New Testament is God’s most recent, and therefore most relevant and direct communication; it establishes the Present Truth, which suggest that there was a Past Truth consisting of such things as 1) The Law, spiritual precepts for personal obedience, 2) The Priesthood, agents of spiritual sacrifice, 3) God’s Holy City, Jerusalem, 4) The Temple, God’s dwelling place, and 5) A Name by which God was called and in which people had identity and experience, Jehovah.      

 

In the fullness of time, Christ came; unrest in area surrounding Jerusalem, led the Romans to make Herod The Great, “King of the Jews”, Matthew 2:1-2.

 

There are many ideas as to what constitutes good news. The Bible, God’s Scripture, presents the Gospel, consisting of the Gospels, the Acts of the Apostles, and the Epistles, as the best of news, which reveals that there are three distinct persons in The Godhead, Colossians 2:9. The first two are identified as the Father, and the Son, Colossians 1:2-3, and the third is the Holy Spirit.

 

The object of the Gospel is to bring forth ideas based upon God’s Will, so that one might be filled with heartfelt wisdom and intellectual knowledge, Colossians 1:9, to have conduct pleasing God and to bear spiritual fruit, Colossians 1:10, as well as to live a life of empowerment with all endurance, long suffering and joy, Colossians 1:11.  

 

There is no meritocracy by which one earns God’s favor, rather God, by His choice qualifies one and allots one enlightment, Colossians 1:12.

 

God the Son is the express image and likenes of God, who has material form in the Godhead. He is preeminent before all of creation, Colossians 1:15.   

 

In God the Son, all things were created, all sovereignty is appointed by Him, and all things serve Him, Colossians 1:16.  All things cohere in Him, Colossians, 1:17.

 

Christ resides in the believer, Colossians 1:27, and makes known to that believer the ideas of God, which constitute spiritual heartfelt wisdom and intellectual knowledge, Colossians 2:2-3.   

 

Competing against Christ are fiat ideas, that is ideas which come out of philosophy and religion, Colossians 2:8.  Such things constitute will worship, that is the worship of one’s own will, Colossians 2:23.

 

Christ constitutes life and when He appears, those who exist by faith in Him, will be glorified, Colossians 3:3-4.

 

The Son offered Himself as a sacrifice for sin, that is doubt, and provides freedom for all trust in Him; this provides one to experience the only right there is as put forth in John 1:12, “But as many as received Him, to them He gave the right to become children of God, to those who believe in His name.”

 

The Spirit came at Pentecost to present spiritual truth for the church age, with an unfolding of that truth coming through the Apostles, God’s sent ones.

 

The Acts of the Apostles was written by the historian and physician Luke to give a record of the apostles’ ministry, and to introduce sound spiritual doctrines, such as the election of grace, beginning with the idea that God appoints the very times and places in which one should live, Acts 17:26.

 

Reliable ideas are scarce, 1 Corinthians 15:34.

 

God delights in mysteries, that is unknown knowns, which He reveals to believers in Christ, Ephesians 1:8-9.  One of these mysteries, is that God has appointed Jesus Christ as His plan administrator, and that Christ operates in dispensations, that is administrations, for the fullness, that is for the completion of every age, epoch and time period, that Christ be sovereign in all things, Ephesians 1:10-11. So that the believer has an inheritance, being predestinated according to the purpose of God who works all things according the the purpose of His will, which excludes any meritocracy or self choice on the part of the believer in Christ, Ephesians 1:12.

 

Reality exists in Christ, spiritual truth is exclusive to Christ, Ephesians 4:21.

 

The Apostles made known the Present Truth, 2 Peter 1:12.  It presents that those in Christ have devine experience as they trust in God’s promises, 2 Peter 1:1-4. And for this reason, one adds the seven elements of divine nature living to one’s faith, so that one be fruitful and not barren in one’s knowledge of Christ, as well as to make one’s calling and election a genuine personal experience, not stumble, and have a broad entrance at heaven’s gate, 2 Peter 1:5-11. Not only does one have devine experience by trusting in God’s promises, but one also one has Christ as one’ all inclusive life experience Colossians 3:11.      

 

2) … On Monday April 1, 2013, Stocks, Currencies, and Bonds, traded lower, on the failure of junk bonds, consumer and small business credit services and regional banking.  

The Risk On ETN, ONN, traded lower, and the Risk Off ETN, OFF, traded higher, indicating that risk on investment has turned to risk off investment, as the toxic credit that was taken in by the US Fed under QE1, and high yield debt and junk bonds, that have financed corporate buybacks and corporate expansion, consumer and small business finance, and regional banks which provide credit of all types, as well as all yield bearing investments traded lower.  

 

The trade lower in Ultra Short Loans, FLOT, communicates the beginning of the end of credit.  Another word for credit is trust; investors no longer trust that the world central bank monetary policies of debt monetization are able to stimulate global industrial production and world trade. The US Infrastructure Stocks, PKB, that have been at the very center of a safe haven trade, away from eurozone debt issues, traded lower.  Another indicator of the end of credit is the divergence between the Russell 2000 and the S&P as seen in Bespoke Investment Group chart. The Small Cap US Shares, IWM, are highly dependent upon low cost financing for inventory replenishment, cutting payroll checks and running accounts payable.    

 

Most ominously it’s the dividend yielding stocks, excluding financials, DTN, that has supported investment growth over the last two years, trading lower on the day. And of note, the Assets Managers BLK, WDR, EV, STT, WETF, and AMG, seen in this Finviz Screener, traded lower, suggesting that these financial wizards are no longer able to coin wealth. Confirmation that a bear market is underway comes from Dow Theory, which holds that when Transports, IYT, and Industrials, IYJ, trade lower together, from a market high, that a bear market is underway.  Another indicator that a bear market is underway is that the Closed End Stock Fund, CSQ, traded lower, and it no longer leverages higher over the Closed End Debt Fund, PFL, as is seen the chart of CSQ:PFL.

 

Sectors trading lower included

Small Cap Energy PSCE, -2.5%

Metal Manufacturers, XME, seen in this Finviz Screener, -2.5%, AZZ, RS, VMI, WOR,

Rare Earth Manufacturers, REMX -2.5%

Semiconductors, XSD, -2.5%, CREE, SUPX, MU, NXPI, FXI, SMTC, ADI, ONNN, MXIM,

Copper, COPX, -2.2%, Coal, KOL, -2.0%, Industrial, PICK, -1.9%, and SIlver Miners, -1.6%

Steel, SLX, -2.2%

China Industrials, CHII, -2.2%

US Infrastructure, PKB, -2.0%, ARII, AMWD, AXLL, MWA, AOS, MTZ, EME, TREX, NPO, CBI,

Transportation, XTN, -1.9%

Small Cap Industrials, PSCI, -1.7%, HEES, AIT, MTW, DXPE, AEPI,

Automobiles, CARZ, seen in this Finviz Screener,-1.7%

Regional Banks, KRE, seen in this Finviz Screener, -1.7%,  

Diversified Equipment Manufacturers, seen in this Finviz Screener, -1.6 %, CFX, HUB-B. FLX, IEX

Industrial Electrical Equipment Manufacturers, seen in this Finviz Screener, -1.6%, ROK, BDC, LFS,

Home Builders, ITB, -1.6%

Global Industrial Providers, FXR, -1.5%, in this Finviz Screener, WHR, KUB, LPL, LYB, QCOM,

Small Cap Revenue, RWJ, -1.6%

Energy Service, IEZ, -1,6, and OIH, -1.4%

Casinos, BJK, -1.4%, BYI,

Dynamic Media, PBS, -1.4%

Consumer and Small Business Credit Services seen in this Finviz Screener, -1.3%.

Asset Managers seen in this Finviz Screener, -1.3%

IPOs, FPX, finally traded lower, -0.5%

 

Interest bearing sectors trading lower included International Small Cap Dividend, DLS, -1.6%, Dividend Excluding Financials, DTN, -0.5%, Water Utilities, PHO, Shipping, SEA, and International High Yield Bonds, IHY.

 

The Russell 2000, IWM, which are highly sensitive to falling regional bank shares, -1.6%, led US Stocks, VTI, -0.5%, Nasdaq 100, QTEC, -1.7%, Nasdaq Large Caps, QQQ, -0.6%, S&P, SPY, -0.4%, European Stocks, VGK, -0.5%, Asian Stocks, EPP, -0.5%, and World Stocks, VT, -0.5% lower. With the trade lower in the S&P 500, $SPX, SPY, -0.4%, these large cap shares are falling from at an Elliott Wave 5 High; the Business Cycle is complete; inflationism is turning to destructionism; the world is entering Kondratieff Winter, which will see all existing political and economic life eventually  destroyed.

 

Japanese Banks, such as NMR, and MTU, led Japan Small Cap, JSC, -5.2%, The Nikkei, NKY, -2.6%, Greece, GREK, -1.4%, Italy, EWI, -1.4%, Spain, EWP, -1.3%, Egypt, EGPT, -1.3% Nation Investment, EFA, -1.4% and Small Cap Nation Investment, IFSM, -1.1%,, lower. Of note, the Philippines, EPHE, traded lower from a second blow off top, and Ireland, EIRL, and New Zealand, ENZL, traded lower from rally highs.  

 

The US Dollar, $USD, -0.3%, and the 200% US Dollar, UUP, -0.4% traded lower. The Optimized Carry Trade ETN, ICI, traded lower as The Japanese Yen, FXY, rose +0.8%, leading the Euro, FXE, the British Pound Sterling, FXB, the Swiss Franc, FXF, the Chinese Yuan, CYB, the Brazilian Real, BZF, and the Indian Rupe, ICN, higher. Major World Currencies, DBV, -0.5% and Emerging Market Currencies, CEW, -0.2%, lower.  

 

Distressed Investments, FAGIX, -0.1% which constitute the investments taken in by the US Fed under QE1, Junk Bonds, JNK, High Yield Corporate Debt, HYG, traded lower, taking Bonds, BND, lower, communicating the beginning of the end of corporate debt funding as well as stock buybacks.  

 

A tectonic geopolitical and economic shift has commenced. The global economic paradigm of Liberalism has passed through a pivot point and the world is now entering Authoritarianism, as the world central banks monetary policies of debt monetization and ZIRP, have crossed the rubicon of sound monetary policy, resulting in the exhaustion of monetary expansion.

 

The Apostle Paul writes that Jesus Christ is at the helm of the Economy of God, Ephesians 1:10. He has been expanding credit globally through the Fed’s QE 1 through 4, the ECB’s OMT, the BoJ Unlimited Easing, and PBOC monetary injections to expand both money and credit to its greatest capability. Ambrose Evans Pritchard writes Helicopter QE will never be reversed.  It is not liquidity management as claimed so vehemently at the outset; it really is the same as printing money.  

 

Evidence of peak credit expansion comes from the CNN report Credit card delinquencies reach 18 year low.

 

Peak money was achieved on March 14 2013, when word stocks, VT, traded lower. And Peak credit was achieved on April 1, 2013, when junk bonds, JNK, consumer and small business credit service providers and regional banks traded lower. Evidence of peak credit expansion comes from the CNN report Credit card delinquencies reach 18 year low.

 

Jesus is commencing the destruction of credit on Eurozone sovereign and banking insolvency, and on exhaustion of the world central banks monetary authority, the result being the inability to stimulate corporate profitability and global trade, as is seen in European Stocks, VGK, and the European Financial Institutions, EUFN, trading lower, which have turned World Banks, IXG, and the Asset Managers, BLK, WDR, EV, STT, WETF, AMG, seen in this Finviz Screener, and the Consumer and Small Business Credit Service Companies, such as V, MA, DFS, AXP, seen in this Finviz Screener, as well as Junk Bonds, JNK, and High Yield Corporate Bonds, HYG, lower in value.

 

World Stocks, VT, traded lower once again on April 1, 2013, as the Age of Credit transitioned into the Age of Debt Servitude. Money, that is wealth died, on the failure of the Milton Friedman Banker Free To Choose Floating Currency System, as is seen in the Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower in value.  The Beast Diktat Money System is rising from the Mediterranean Sea sovereign and banking debt crisis, as foretold in Bible Prophecy of Revelation 13:1-4. where a minotaur of regional governance will govern in the world’s ten regions and occupy in totalitarian collectivism and debt servitude in all of mankind’s seven institutions.  

 

The world central banks’ policies of debt monetization, which served for years to expand credit and grow investments, as well as promote global growth and trade, have finally made all forms of fiat wealth, that is Stocks, VT, Commodities, DBC, Bonds, BND, and now Currencies, such as the Euro, FXE, and  the Australian Dollar, FXA, untrustworthy.  Gold and the diktat of sovereign regional leaders and sovereign regional bodies, such as the ECB and the EU Finance Ministers, will be rising from the ashes of nation investment, EFA, IFSM, to become sovereign wealth. The new age of collapsing central bank monetary authority will create an investment demand for gold, $GOLD.     

 

Inflationism is turning to destructionism as the dynamos of global growth and corporate profitability, that have underwritten crony capitalism and eurozone socialism are winding down; and the dynamos of regional security, stability, and sustainability, are winding up, establishing regionalism. The world is passing from being a credit and carry trade banker centric world, to a diktat and regional governance centric nannycrat world, as is seen in the NYT report Troika sets tough terms for Cyprus bailout.

 

The world has passed through Peak Toxic Credit, as is seen in the chart of Fidelity Investments Mutual Fund FAGIX, topping out and trading lower. This mutual fund contains the most distressed of investments, which were taken in under QE 1 and exchanged for “money good” US Treasuries, which were returned to the Fed and are now classified as Excess Reserves. The banks really do own the US Treasuries residing at the Fed, but will not, repeat not be selling them at any time. And indeed for a while as stocks, VT, trade lower, Government Bonds, TLT, EDV and ZROZ,  will be increasing in value before they too fall dramatically lower in value. Very soon the largest of banks will be integrated with the Fed, and be known as the Government Banks, or Govbanks, for short.

 

News reports herald the death of credit; these include the Reuters report Italy sovereign spread rise hurts firms fast, IMF working paper relates.

 

With the failure of credit, the nature of banking and investment will change. The Too Big To Fail Banks, RWW, will no longer serve to provide credit, market financial instruments, and help to procure real estate, but rather will be participating in statist governance, by becoming one with government in public private partnerships for management of debt and overseeing ongoing economic activity. The Too Big To Fail Banks, such as JPM, BAC, C, KEY, and BK, will exist as Big Enough To Help Govern. The same will be true in the Eurozone, where the European banks, will be unified into a One Euro Government, as leaders meet in summits to waive national sovereignty and pool sovereignty regionally, and announce regional framework agreements which establish EU regional governance.

3) … On Tuesday, April 2, 2013, Consumer Staples, Health Care Providers and Real Estate rose strongly, taking the S&P to a new rally high; World Stocks, rose, but traded below their recent high.

The chart of the S&P 500, $SPX, SPY, shows a new rally high, on April 2, 2013, due largely to Consumer Staples, KXI, seen in this Finviz Screener, Health Care Providers, IHF, such as Cigna, CI, and Real Estate, IYR, such as FNIO, IFGL, KBWY, REZ, Services, such as FIS, FISV, Telecom, IST, such as V, S, VZ,  and Paper Producers, WOOD, such as IP, BLL, PKG, rising strongly …  Countries, Mexico, EWW, New Zealand, ENZL, and Turkey, TUR, rose to new rally highs …  Consumer Discretionary Stocks, IYC, seen in this Finviz Screener, traded to a new high … And Nasdaq Biotechnology, IBB, seen in this Finviz Screener, also traded to a new high … Sectors trading lower included the following: Gold Miners, GDX, -4.3% Silver Miners, SIL, 3.3%, Uranium Miners, URA,-1.8% and Copper Miners, COPX, -1.6%,  Metal Manufacturing, XME, -2.8% and Steel Producers, SLX, -2.5%, Semiconductors, XSD, -1.8%, Energy Production, XOP, -1.8%, Small Cap Energy, PSCE, -1.6%, and Energy, XLE, -0.6%, Regional Banks, KRE, -0.8% and Small Cap Pure Value, RZV, -0.6.

 

It has been the pursuit of high yielding investments that drove the S&P, SPY, to its rally high, these include Pharmaceuticals, XPH, Utilities, XLU, International Telecom, IST, such as A, and VZ,  Residential REITS, REZ and Premium REITS, KBWY, such as HPT, and is reflected in the closed end real estate equity fund, IGR, racing to a new high.

 

The pursuit of yield bearing financial instruments reflects the support of real estate assets directly by US Fed Reserve intervention as certain facilities within its QE initiative, its stated purpose of purchasing Mortgage Backed Bonds, MBB, its overall ZIRP initiative, and its monetary expansion policy, which created money, as seen in M2 money peaking recently. The Fed’s magnetic pull on the markets is seen most clearly in International REITS, IGFL, being drawn up strongly, as presented in this ongoing Yahoo Finance chart of IYR, FNIO, IFGL, KBWY, REZ, and IGR. Said another way the final rally in the S&P 500, SPY, is a grand final climax of US Federal Reserve Monetary Policies which reflects the AP report U.S. home prices rose in February by most in 7 Years.

 

Peak US Federal Reserve Monetary Authority is seen in Financial Preferred, PGF, and Senior Bank Loans, BKLN, rising to rally highs, in Leveraged Buyouts, PSP, topping out March 14, and in both High Yield Corporate Bonds, HYG, and Junk Bonds, JNK, topping out March 28. The bedrock of US Monetary Policy that has underwritten investment in US large Cap Stocks, SPY, has been investment in Distressed Investment, such as those traded in Fidelity Mutual Funds, FAGIX, which were taken in by the Fed, in exchange for “money good” US Treasuries under QE1; these traded lower in value on March 28, 2013.  

 

Yield bearing stocks, DTN, have been the foundation of investment in the S&P 500, SPY, as well as the foundation of investment in Global Industrial Producers, FXR, which peaked March 28, 2013, as is seen in their ongoing combined Yahoo Finance Chart.  Dividend Growth, VIG, peaked April 2, 2013, on the climax of the world central bank’s monetary authority.

 

The S&P 500, $SPX, SPY, peaked April 2, 2013, not only on the exhaustion of the world central banks’ monetary authority, but also on rising fears of eurozone sovereign and banking insolvency, the latter will be the albatross, that is the dead bird, that investors just will not be able to get off their neck, and will terminate not only the rally in the S&P 500, SPY, but the rally in the Global Industrial Producers, FXR, such as GE, ITW, BA, IR, IP, NVS, WHR, KUB, LPL, LYB, QCOM, as well.   

 

The full value of “money good” fiat financial assets has been achieved.  Monetary expansion of the world central banks’ monetary authority has fully expanded; the rally in US Stocks, VTI, was completed April 2, 2013. Jesus Christ acting as God’s dispensation manager, that is economic and political manager, Ephesians 1:10,  has made the age of investment choice is fully complete.

 

The age of Inflationism is history; and the age of Destructionism is commencing. Nation Investment, EFA, and Small Cap Nation Investment, IFSM, turned lower when European Financials, EUFN, broke lower on March 14, 2013. World Stocks, VT, also climaxed, March 14, 2013.   The ratio of closed end equity, CSQ, relative to closed end debt, PFL, CSQ:PFL, traded decisively lower indicating that stocks are unable to leverage higher over debt.

 

Peak Prosperity was achieved on April 2, 2013, when Peak Credit came in with Creditors, AXP, V, MA, DFS, topping out in value, and High Yield Corporate Debt, HYG, and Junk Bonds, JNK, and with US Large Cap Stocks, SPY, as well US Stocks, VTI, topping out in value.  With Money, that is Wealth, VT, and Major World Currencies, DBV, having peaked, an investment demand for Gold, GLD, will commence when investors fear that Government Debt, TLT, EDZ, and ZROZ, is unsustainable and that Capital Controls are coming.

 

Jesse’s Cafe Americain asks Are all G20 bank depositors exposed to a Cyprus style seizure?  Ellen Brown relates Bank confiscation scheme for US and UK Depositors. And Cliff Kule relates How the US is planning the Cyprus Approach. And 24th Gold reports Danger in bank accounts. And Bloomberg reports Head of Italy’s UniCredit Says global rule needed to bail in big deposits.

 

Spot Gold, $GOLD, traded lower to $1575. Wealth will increasingly be preserved by physical ownership of gold, in bullion coins, and in global trading forms, that is in Internet trading vaults, such as BullionVault.      

 

4) …. On Wednesday April 3, 2013, Stocks traded lower after reports showed signs of weakness in the US job market and service businesses.  

World Stocks, VT, traded -1.1% lower as the Risk Off ETN, rose, and the Risk On ETN, traded lower, as AP reported Stocks slip after weak reports on hiring, services, and CNBC ADP says job creation declining. The S&P, SPY, traded -1.0% lower and the Russell 2000, IWM, -1.6%, lower.

 

Industrial and Mining sectors declined included  

Gold Miners, GDX, -4.5%,  Silver Miners, SIL, -3.7%

Uranium Miners, URA, -2.9%, Copper Miners, COPX, -2.6%, Rare Earth Miners, REMX, -2.6%

Industrial Miners, PICK -2.0%,

Metal Manufactuers, XME, -1.8%,

Global Industrial Producers, FXR, 1.5%, Small Cap Industrials, PSCI, -1.5%

Diversified Industrial Manufacturers seen in this Finviz Screener, -1.1%

Industrial Electrical Manufacturers seen in this Finviz Screener, -1.2%

 

Energy sectors declining included

Dynamic Energy, PXE, -3.0%, Small Cap Energy, PSCE. -2.8%

Natural Gas Producers, FCG, -2.2%

Energy Service, OIH, -2.1% , Energy Service, IEZ, -2.1%

Energy Production, XOP, -2.1%, Energy, XLE, -1.7%

 

Global sectors declining included

Home Building, ITB, -3.0%

US Infrastructure, PKB, -2.8%

Solar Energy, KWT, -2.5%

Design Build, FLM, -2.5%

Semiconductors, XSD -2.3%

Paper Producers, WOOD, -1.9%

Semiconductors, XSD, -1.9%

Internet Retail, FDN, -1.5%

Dynamic Media, PBS, -1.7%

US Health Care Providers, IHF -1.5%

IPO’s, FPX, -1.5%

Nasdaq Biotechnology, IBB -1.5%

Casinos, BJK, -1.2%

Consumer Services, IYC, -1.0%

 

Banking sectors declining included

National Bank of Greece, NBG, -7.05

Chinese Financials, CHIX, -2.3%

Too Big To Fail Banks, RWW, -2.2%

Small Cap Revenue, RWJ, -1.8%

Banking, IXG, -1.5%

Regional Banks,KRE, -1.5%

Eurozone Financials, EUFN, -1.2%

 

Credit Providers seen in this Finviz Screener traded lower, -2.4%

 

Business Service Providers seen in this Finviz Screener traded lower, 1.7%  

 

Yield bearing sectors declining included

Shipping, SEA, -1.7%

Alerian Partnerships AMJ, -1.5%

North American Energy Partnerships, EMLP, -1.5%

Premium REITS, KBWD, -1.5%

Chinese Real Estate, TAO, -1.2%

Small Cap Real Estate, ROOF, -1.1%

Mortgage REITS, REM -1.2%

Dividends Excluding Financials, DTN, -0.9

Dividend Growth, VIG, -0.7%

 

Countries declining included

India, INP, -2.6%

Russia, RSX, -2.0%

Canada, EWC, -2.0

Australia, EWA, -1.5%

China, YAO, -1.7%

South Africa, EZA, -1.7%

Mexico, EWW, -1.5%

US Real Estate, VTI, -1.0%

Netherlands, EWN, -0.3, Spiegel Online reports The Netherlands falls prey to economic crisis. The Netherlands, Berlin’s most important ally in pushing for greater budgetary discipline in Europe, has fallen into an economic crisis itself. The once exemplary economy is suffering from huge debts and a burst real estate bubble, which has stalled growth and endangered jobs.

 

Small cap countries declining included

Indonesia Small Caps, IDXJ, -2.1%

Russia Small Caps, ERUS, -2.1%

Thailand, THD, -2.0%

Argentina, ARGT, -2.0%

Australia Small Caps, KROO, -2.0

Egypt, EGPT, -1.9%

Vietnam, VNM, -1.8%

Turkey, TUR, -1.9%

Small Cap India, SCIN, -1.7%

Poland, EPOL, -1.7%

China Small Cap, ECNS, -1.6%

Ireland, EIRL, -1.6%

Russell 2000, IWM, -1.6%

 

Debt trading lower included, Corporate High Yield Debt, HYG, -0.0, Junk Bonds, JNK, -0.0, Senior Banks Loans, BKLN, -0.4%, Leveraged Buyouts, PSP, -0.6%, Distressed Investments, FAGIX, -0.2%

 

5) …. On Thursday, April 4, 2013, Japan announced a new unprecedented monetary policy to devalue its currency, this sent the Nikkei, and US Government Bonds, blasting higher.

The chart of the Yen, FXY shows a 3.5% drop in just one day, which induced the Euro, FXE, to rise higher to 128.28, the Swiss Franc, FXF, to 104.57, and the British Pound Sterling, FXB, to 105.56, and  causing the Major World Currencies, DBV, to blast higher to 27.38.  The chart of the Nikkey, NKY, shows a 3.5% crack up asset boom blast higher;  Japanese Banks rose strongly, SMFG, 10%, NMR, 9%, MFG, 9%, and MTU, 8%; all on Mr. Kuroda’s “shock and awe” opening salvo. US Government Bonds, that is the US Ten Year Notes, TLT, the 30 Year US Government Bonds, EDV, and Zeroes, ZROZ, seen in their combined chart, blasted higher.   

 

Reuters reports BOJ to pump $1.4 Trillion into economy in unprecedented stimulus.  The Bank of Japan unleashed the world’s most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.

Ambrose Evans Pritchard writes Japan makes history with monetary blitz. The Bank of Japan has launched the most daring monetary experiment of modern times, aiming to double the money base within two years to overpower deflation and catapult the economy out of slump.

Nature Economist Elaine Meinel Supkis writes Bank of Japan will double money printing/risky debt bond holding.

The Globe and Mail of Toronto reports Japan’s central bank enters bold ‘new dimension’ of monetary policy.

Nasdaq reports BoJ has announced staunch new easing policies aimed at reflating the economy. The Bank of Japan is clearly backing up the rhetoric of the past six months with new easing measures. First of all, the Bank of Japan is set to increase asset purchases to seven trillion yen, or more than $73 billion, per month in bonds and will increase the monetary base some 50 percent by this time next year and expects to double bond holdings in two years. For comparison, the most the Fed has increased the monetary base in one year is about 20 percent.

However, asset purchases are just one of the many policy tools announced overnight. The Bank of Japan first has announced that it will extend the average maturities of its bond holdings to seven years from three years, giving it the leeway to purchase longer dated bonds. Also, the Bank of Japan is switching its policy target to targeting the size of the monetary base from targeting an overnight borrowing rate, a very strong indication that easing efforts will be strong.

The Bank of Japan also announced that it will merge its two asset purchase programs into the quantitative easing to make purchases more clear to markets. The Bank followed this by announcing that it is temporarily suspending the Bank Note Rule, with a view to permanently suspend the rule, and also announced that QE will continue until inflation reaches two percent, ideally in 2 years time.

For reference, the Bank Note Rule was a self-imposed rule on the Bank of Japan upon its creation to make sure that the BoJ’s balance sheet did not become over-leveraged. Effectively, the rule limits the amount of bonds the BoJ can hold to the amount of currency in circulation. However, by abolishing the rule, the BoJ can effectively lever itself up and buy more bonds

Austrian Economist Benton te reports BoJ’s Kuroda’s Opening Salvo: 7 trillion yen ($74 billion) of Bond Purchases a Month.  In pursuit of Shinzo Abe’s parlous economic policies popularly known as Abenomics, Bank of Japan’s new chief, former ADB head Haruhiko Kuroda began his term with a baptism of fire. While Abenomics may create a short term boom, this will be equivalent to an economic Hara-Kiri in the fullness of time as Abenomics magnifies the risks of a debt, or if not a currency crisis. The worst is that the BoJ’s inflationism amplifies the risks of war.  As I pointed out in the past this hasn’t been about the strong yen (or deflation), which Japanese officials use as smokescreen, but “about saving the banks and financial institutions who constitutes as the major financiers or creditors or owners of Japan’s Government Bonds (JGBs)”.  Nonetheless the aggressive deployment of asset purchasing will bring BoJ’s balance sheet to the levels of her western counterparts.  As fund manager Axel Merk of Merk Investment warned, BOJ governor Kuroda will unveil which tools from his toolbox he may deploy. We refer to it as monetary madness because we don’t see how this can have a good ending for Japan, the yen, or the world. Japan has a $6 trillion economy, more than 200 times that of Cyprus. Should the market express its discomfort with Japan’s policies, there will be ripple effects to global markets. For now, the most direct implication is that we are rather negative on the yen. But don’t kid yourself: there may not be a place to hide, there may not be such a thing anymore as a safe asset. We have long argued that investors may want to take a diversified approach to something as mundane as cash. Given precarious Japan’s debt position, Mr. Kuroda’s embrace of “Abenomics” is like playing with fire…where everyone gets burned.

 

Emily Gosden of The Telegraph reports Europe faces slow death while Japan is trying to escape, Soros relates. George Soros, the billionaire investor, said Europe is adopting the same policies that led Japan into a quarter of a century of “slow death” that it is desperately trying to escape with “dangerous” new monetary expansion.

 

Doug Noland write Kuroda Leapfrogs Bernanke.The Bank of Japan, BOJ, announced the Japanese version of “Do Whatever it Takes.” What commenced during the Greenspan era as central planning of pegged interest-rate and market liquidity backstops, later evolving to ever-expanding crisis-period bailouts, market interventions and debt monetization, has escalated to an unprecedented global free-for-all of monetary inflation and debt purchases in a non-crisis environment. Amazingly, the Japanese, with 4.3% unemployment and approaching 25 years since the bursting of their Bubble, somehow succeeded in leapfrogging the Bernanke Federal Reserve.

 

A few notable Kuroda quotes courtesy of Dow Jones: “This is an entirely new dimension of monetary easing, both in terms of quantity and quality… I will not use my fighting power in an incremental manner… Our stance is to take all the policy measures imaginable at this point to achieve the 2% target in two years.”

 

“Charles Evans, president of the Chicago Fed, called the move ‘pretty aggressive’, adding:’ ‘I certainly hope that every foreign central bank around the world is able to adopt policies that ultimately lead to the most vibrant economies that those economies can have because we need it around the world.'”

 

Leika Kihara and Stanley White of Reuters report “Bank of Japan Governor Haruhiko Kuroda played down concerns his unprecedented burst of monetary stimulus would create asset-price bubbles even as it delivered an immediate pay-off in global markets, with government bond yields at a record low, the yen hitting a 3-1/2 year trough and stocks surging to multi-year highs… ‘We will be vigilant of the risk of a bubble. I don’t think there’s a bond or stock market bubble now and I don’t see one emerging any time soon. But we will be vigilant of the risk,’ Kuroda told the lower house of parliament.”

 

I’ll have to disagree with Mr. Kuroda. Japanese debt is a historic Bubble – and I’d suggest a rather conspicuous one at that. And Japan’s move to follow the Fed down the path of 24/7 monetary inflation is a key facet of the “global government finance Bubble” more generally. Japanese institutions were said to be major buyers of European bonds this week. French 10-year yields dropped 24 bps Thursday and Friday to a record low 1.75%. I have a hard time believing anyone with a sound grasp of monetary history can see this as anything other than an unfolding disaster.

 

In our 21st Century age of runaway electronic debits and Credits based finance, the distinction between “money” and Credit has completely blurred. I’ve tried to make the case that there is in reality an exceedingly important difference: Credit is much about confidence, while money is “precious.” Credit, as was on full display between 2006 and 2008, can be robust, whimsical, fleeting and frighteningly fragile. “Money” – perceived as a trusted liquid store of nominal value – is the rock foundation for the entire financial system. As such, “money” enjoys almost insatiable demand. And this attribute has ensured repeated episodes of gross over-issuance that has plagued mankind for centuries. These days, “money” is the domain of the government debt and central banking nexus. The monetary black plague is back and it has spread globally like never before. Yet it’s virtually invisible and comes with a surprisingly protracted incubation period.

 

When his “Mississippi Bubble” scheme was faltering in 1720, John Law moved to devalue competing hard currencies. He was desperate to keep investors and, particularly, the manic crowd of speculators in his monetary instruments to stave off Credit collapse. The Fed, BOJ, BOE, ECB and others have been working desperately to keep investors and speculators fully engaged in global debt, equities and risk markets. With near zero interest-rates and Trillions of monetization, “money” is being methodically devalued around the world. Federal Reserve devaluation is forcing savers out of “money” and into risk markets, apparently believing that asset inflation will spur wealth-creation, risk-taking and economic activity. The Bank of Japan is devaluing yen-denominated “money,” hoping a weaker yen and expectations for higher inflation will jumpstart the Japanese economy.

 

These central bankers seem oblivious to the fact they are on a perilous course that risks a crisis of confidence in “money,” not to mention global risk markets. The history of monetary fiascos is replete with out of control inflations. Once the money printing gets heated up, there is a strong proclivity for one year of elevated money printing ensuring only more intense pressure for even greater printing the next. This dynamic has been in play for years now. After having carefully studied these types of dynamics, I’ll confess it’s almost surreal to witness them in real time.

 

Bloomberg quotes George Soros in CNBC TV interview saying, What Japan is doing is actually quite dangerous because they’re doing it after 25 years of just simply accumulating deficits and not getting the economy going,”. “If the yen starts to fall, which it has done, and people in Japan realize that it’s liable to continue and want to put their money abroad, then the fall may become like an avalanche.

 

I thediktatreporter relate that with Japan’s debt accounting for more than 20x tax revenue Japan is definitely insolvent. Japan will soon implode under the weight of its debt.

 

The age of stimulus is over as the the world central banks monetary policies of debt monetization and ZIRP, have crossed the rubicon of sound monetary policy, resulting in the exhaustion of monetary expansion. Peak Monetary Expansion has been achieved as

1) Investors no longer trust in carry trade investing to leverage stocks higher, this being reflected in the Optimized Carry Trade ETN, ICI, manifesting bearing engulfing at the edge of a massive ascending wedge, portending a disinvesting out of stocks driven up by the Mario Draghi OMT EUR/JPY rally, and the Shinzo Abe Unlimited Quantitative Easing rally.

2) Toxic debt, traded by the Fidelity Mutual Fund, FAGIX, that the US Federal Reserve took in as exchange for “money good” US Treasuries under QE 1, to restimulate global banking, IXG, and global trade, FXR, has turned lower in value.

3) The funding for stock buybacks, that is High Yield Corporate Bonds, HYG, and the pursuit of risk assets, Junk Bonds, BND, are no longer being purchased.

4) Leveraged Buyouts, PSP, began trading lower on March 14, 2013.  

5) Fox news Unemployment claims climb as layoffs surge to highest level since 2011 Freshly released employment numbers show more lows than highs for the U.S. economy. For the third straight week, the number of Americans seeking unemployment aid rose. Bespoke Investment Group follows up with the uptick in Initial Jobless Claims Chart.

6) Reuters reports American employers hired at the slowest pace in nine months. And Andre Damon of WSWS report US jobs growth slows to a crawl. Hundreds of thousands drop out of the workforce. The US economy created 88,000 jobs in March, far less than had been expected, as $1.2 trillion in sequester cuts began to take effect.

 

All central bank stimulus efforts, such as the MarketWatch report Bank of Korea to focus on supporting growth, will fail. Such will only result in currency traders conducting competitive currency devaluation and investors derisking out of South Korea, EWY, as is seen in its 1.8% trade lower.   

 

The failure of world central banks’ monetary policies to provide stimulus marks the end of stimulus and commences the beginning of the end of credit.

 

The exhaustion of the world central bank’s monetary authority means that national sovereignty, as well as the experience of Crony Capitalism, European Socialism, and Greek Socialism is coming to an end.      

 

The dynamos of Liberalism, being global growth, and corporation profitability are winding down investment choice. The dynamos of Authoritarianism, being regional security, stability, and sustainability are winding up diktat.

 

Seigniorage that is moneyness, will no longer come from the Banker Regime of Investment Choice, but rather seigniorage will come from the Beast Regime of Diktat, manifesting in the world’s ten regional zones, and in all of mankind’s seven institutions. A world, governed by the Iron Hegemony of The British Empire and the US OIl for Blood Empire, is giving way to a Ten Toed Kingdom of Regional Governance as communicated by the Statue of Empires present in Nebuchadnezzar’s Dream interpreted by the prophet Daniel in Daniel 2:25-45, where toes of iron diktat and clay democracy form an unstable mixture  of governance.      

 

Spot Gold, $GOLD, closed lower at $1,550.  Of note, Gold Mining Stocks, GDX, rose 2.8%, to strong support at 35.22, and Silver Miners, SIL, rose 2.7%, to strong support at 17.04; individual gold and silver miners can be followed in this Finviz Screener.

 

6) …  On Friday, April 5, 2013, Volatility rose from its recent low and World Stocks traded decisively lower on the exhaustion of the world central banks’ monetary authority.

Volatility, ^VIX,  rose this week as is seen in the Volatility ETFs, VXX, VIXY, and VIXM, rising as is seen in their ongoing Google Finance chart, and World Stocks, VT,  traded decisively 0.3% lower, Nation Investment, EFA, 0.5%, and Small Cap Nation Investment, IFSM, 0.6% lower. Global Industrial Producers, FXR, trading lower included, MAT, SAP, PPG, HNP, EWC, DEO, AMZN, FLS, MTD, PHG, IP, ABB, ROP, LPL, QCOM, TTM, IR, NVS. TSM, ETN, ERIC, and LYB

 

Sectors trading lower included the following,  Networking, IGN, -3.3%, China Industrials, CHII, -1.6%

Industrial Miners, PICK, -1.5% , Paper Producers, WOOD, -1.5%. Yield bearing sectors trading lower included, TAO, AUSE, SEA , PHO, DTN and VIG.

 

World Stock, VT, and US Stocks VTI, SPY, IWM, QQQ, QTEC, traded lower. The Nikkei, NKY, traded slightly lower yesterday’s strong blast higher to a rally high, while its banks,   Japanese Banks rose strongly with SMFG, rising 3%, NMR, 1%, MFG, 1% and MTU, 5%  

 

This week ending April 5, 2013, stocks traded lower. World Stocks, VT, traded, -0.7%, Nation Investment, EFA, -1.0%, Small Cap Nation Investment, IFSM, -2.7%, and Global Industrial Producers, FXR, -2.7%.  Small Cap Value, RZV,  traded -3.3%, and Small Cap Growth, RZG, traded -3.1%. The chart of the S&P 500, $SPX, shows a 1.0% trade lower from an Elliott Wave 5 High; its ETF, SPY, -0.3%. And the chart of the Russell 2000, $RUT, shows a 3.0% trade lower, IWM, -2.3%.  A bear market is now in full operation as the Risk On ETN, ONN, traded lower, and the Risk Off, OFF, traded higher. This as Jody Shenn of Bloomberg reports Real-estate investment trusts that invest in mortgage debt, REM, sold the most stock in two years last quarter, bolstering demand for government-backed home-loan bonds as other investors prepare for the Federal Reserve’s retreat. Equity offerings by mortgage REITs jumped to $7.4 billion from $1.7 billion in the three months ended Dec. 31, 2012.

 

Small Cap Value, RZV, sectors, trading lower included the following seen in this Finviz Screener.

Automobile Dealerships, PAG, LAD, ABG, CRMT, RUSHB,

Rental and Leasing Services, TAL, FLY, CAP, RCII, GATX, CAR,

Sporting Goods, JOUT, NLS, ESCA

Personal Services, CSV, GK, STEI,

Consumer Services, LOV,

Business Services, FLT, MMS, ENV, IILG, HCSG,

Long Term Care Facilities, CSU, FVE,

Specialized Health Services, HGR, IPCM,

Staffing and Outsourcing, TMH, AHS, ASGN, TBI, KFRC, MHH, BBSI, JOBS

Apparel Stores, DEST, SMRT, ASNA, MW,

Restaurants, KKD, AFCE, RRGR, BAGL, CAKE, SONC, DRI, DENN, ARKR, TRRH, PZZA, CBRL

Home Furnishings and Fixtures, AMWD, FBHS, LZB, BSET, ETN, FLXS,

Credit Sevices, WRLD, CPSS, GDN, CSH, ECPG, NEWS,

 

Small Cap Growth, RZG, sectors trading lower included

Specialty Chemicals, FTK, IOSP, FUL, KWR, POL, WDFC, OLN,

Industrial Equipment Wholesale, DXPE, AIT,

Railroads, ARII

General Contractors, EMC,

Building Materials Wholesale, BECN,

Paper Products, KS, BZ, WPP, CLW, GLT, SWM, TIS,

Packaging and Containers, GPK,

General Building Materials, TREX, APOG,

Industrial Electrical Equipment, AIMC, BDC, AOS, LFUS,  ENS,

Rubber and Plastic, AEPI, CTB.

Industrial Equipment, SXWI, WTS, HEES,

Diversified Machinery, BGG, JBT

 

Sectors trading strongly lower this week include:

Semiconductors, XSD, and Solar Energy, KWT, and Wind Energy, FAN,

Gold Miners, GDX, GDXJ, and Silver Miners, SIL, SILJ,

Steel, SLX, and Metal Manufacturing, XME,

Miners: Industrial, PICK, Rare Earth, REMX, Copper, COPX, Uranium, URA, Coal, KOL,

Energy: Dynamic Energy, PXE, Small Cap Energy, PSCE, Energy Production, XOP,

Industrials: China Industrial, CHII, Small Cap Industrial, PSCI, Automobiles, CARZ,

Homebuilding, ITB,

Internet Retail, FDN,

US Infrastructure, PKB,

Transportation, XTN

Design Build, FLM,

Networking, IGN

North American Software, IGV,

Financials: Chinese Financials, CHIX, European Financials, EUFN, Too Big To Fail Banks, RWW, Regional Banks, KRE, Small Cap Revenue, RWJ,

 

This week ending April 5, 2013, the world entered into competitive currency devaluation as the Japanese Yen, FXY, fell 1.6%, lower, following a 3.5% trade lower April 4, 2013, to close at 100.17. The US Dollar, $USD, traded lower from 83.14 to close at 82.66, as the BZF, FXS, FXF, FXB, FXE, FXC, and CEW rose, while the FXA, traded lower. The Euro, FXE, closed up at 128.98.

 

Competitive Currency Devaluation is confirmed by the Currency Demand Curve, that is the ratio of the Small Cap Pure Value Stocks, RZV, relative to the Small Cap Growth Stocks, RZG, RZV:RZG, trading below its 50 day moving average. Additional confirmation comes from the Optimized Carry Trade ETN, ICI, falling from an ascending wedge pattern. Todd Buell of Dow Jones reports European Central Bank Executive Board member Benoit Coeure saying ‘the temptation to divert global demand and foreign capital towards the domestic economy at the expense of other ailing countries could be dangerously alluring.’ He added economic literature shows the dangers of individual countries pursuing ‘beggar thy neighbor’ policies

 

Peak Currencies, that is Peak Major Currencies, DBV, was achieved April 5, 2013 at 27.47.  Peak Emerging Market Currencies, CEW, was achieved February 15, 2013.

 

An inquiring mind asks, if competitive currency devaluation has commenced, will the US Dollar, $USD,  fall lower from it April 5, 2013, value of 82.66/ and seen in the Jack Chan’s chart of its 200% ETF, UUP, I believe that is possible, even if US Treasuries rise higher.  And an inquiring mind asks, if competitive currency devaluation has commenced, will the Japanese Yen, FXY, traded lower from April 5, 2013, value of 108.17, while other major world currencies, trade range bound? I do not know.

Mike Mish Shedlock writes Competitive Easing Madness; Japan to Double Monetary Base; Draghi Signals More Easing; Yen Plunges.  As one might expect on such a surprise announcement, the Yen had a spectacular plunge.

 

Draghi Signals More Easing.  Bloomberg reports German Yields Fall to 8-Month Low as Draghi Signals More Easing.  German government bonds rose, pushing 10-year yields to the lowest since August, after European Central Bank President Mario Draghi signaled further stimulus is possible should economic conditions deteriorate. French and Austrian 10-year yields fell to records as Draghi said monetary policy will “remain accommodative for as long as needed” to boost growth. Spanish and Italian bonds pared gains as the ECB president said the central bank won’t immediately implement measures to ease funding strains for smaller companies.

 

Fed Uncertainty Principle.  This is all in accordance with the Fed Uncertainty Principle Corollary Three.  Corollary Number Three: Don’t expect the Fed [central banks in general] to learn from past mistakes. Instead, expect the Fed to repeat them with bigger and bigger doses of exactly what created the initial problem. Japan is eventually going to achieve “escape velocity” on deflation, and I assure you Japanese citizens will not like the results when it happens. When the Japanese bond market finally reacts to this inane policy, there is going to be a global currency crisis.

 

As competitive currency devaluation picks up speed at the hands of the currency traders, commodity producers such as Brazil, Canada, and Australia, EWZ, will see loss of stock value, EWZ, EWC, and EWZ, as well as loss of currency value, BZF, FXC, and FXA; debt deflation is coming to Brazil Financials, BRAF, Canadian Banks, BMO, BNS, CM, TD, and Australia Dividend, AUSE.      

 

This week Commodities, ending April 5, 2013, DBC, -1.8%, and US Commodities, USCI, -2.4%, DBB, -3.3%, JJN, -3.3%, JJC, -3.7%, JJT, -0.6%, LD, +1.7%, CUT, -1.7%, BAL, -.6%, JJA, -6.1%, JO, +3.2%, GRU, -7.6%, COW, -0.3%, FUD, -3.8%, CORN, -8.7%, SOYB, -3.6%, WEAT, -2.3%, UNG, +4.1%, USO, -1.0%, BNO, -2.8%, UGA, -5.7%, GLD, -1.7%, SLV, -4.9%. This week ending April 5, 2013, Spot Gold,  $GOLD, rose from its April 4, 2013, spike down low,  to close the week at $1,580.

 

This week ending April 5, 2013, Bonds, BND, blasted vertically higher, as the Zeroes, ZROZ,  the 30 Year US Government Bonds, EDV, and the US Ten Year Note, TLT, traded parabolically higher, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX,  flattened to 0.59; this flattening of the Yield Curve, is seen in the Steepner ETF, STPP, dropping vertically to 33.27.  Corporate High Yield Debt, HYG, Junk Bonds, JNK, Senior Banks Loans, BKLN, and Distressed Investments, FAGIX, closed higher or unchanged.

 

Doug Noland reports sovereign wealth, that is the wealth of the sovereigns of Liberalism rose. Federal Reserve Credit increased $3.3bn to a record $3.191 TN. Fed Credit expanded $405bn over the past 26 weeks. In the past year, Fed Credit expanded $348bn, or 12.2%. And Global central bank international reserve assets (excluding gold), as tallied by Bloomberg, were up $668bn y-o-y, or 6.5%, to $10.954 TN. Over two years, reserves were $1.508 TN higher, for 16% growth.

 

7) … New bird flu has markings of being able to be spread by humans.

Bloomberg reports New bird flu seen having some markers of airborne killer. The new bird influenza that’s killed six people in eastern China has some of the genetic hallmarks of an easily transmissible virus, according to the scientist who showed how H5N1 avian flu could become airborne. The H7N9 strain, which is a new virus formed as a result of two others merging their genetic material, has features of viruses that are known to jump easily from birds to mammals, and a mutation that may help it attach to cells in the respiratory tract, said Ron Fouchier, a professor of molecular virology at Erasmus Medical Center in the Netherlands, in a telephone interview yesterday. “That’s certainly not good news,” said Fouchier, who reviewed a gene sequencing of H7N9 published by Chinese health authorities. “This virus really doesn’t look like a bird virus anymore; it looks like a mammalian virus.”

 

8) … Boondoggles at the end of the age of credit

Kevin Martinez of WSWS reports Disney shuts down video game developer LucasArts, lays off 150 staff.  Following the $4 billion acquisition of the parent company Lucasfilm by the Walt Disney Company, all current projects and staff at LucasArts have been suspended. And John Stark of the Bellingham Herald reports Airport area Holiday Inn gets nod for $20 Million,160 room development from Port of Bellingham Commissioners.  

9)  … Summary … The week ending April 5, 2013 marked the pivoting of ages … liberalism has pivoted into authoritarianism … the world has pivoted from the age of investment choice into the age of diktat … the age of sovereign nation states is history and the age of regionalism commenced with the topping out of the S&P 500 on fears of eurozone sovereign and banking insolvency, and weakness in the US job market and service businesses.  

Sovereignty begets seigniorage, that is moneyness. Insolvent sovereigns and their banks are unable to govern and are unable to provide moneyness. Zero Hedge reports 97% of Spanish social security pension fund in domestic bonds. There are a number of reasons why EU banks and retirement funds have loaded up on their own country treasury debts; one being that the purchase of the debt provides funding for the country’s fiscal spending that the financial markets no longer provide. This fake seigniorage, this fake moneyness, cannot continue forever. The purchase of national treasury debt by national banks and national retirement agencies in insolvent countries only concentrates moral hazard for all Euro using nations

 

Out of growing sovereign crisis will come a new economic and political paradigm, that being Authoritarianism, and a new money system, that being the diktat money system.

 

Liberalism was an era characterized by sovereign nations states, whose central banks practiced liberal policies of monetary expansion. The monetary authority of the world central banks gave seigniorage to fiat assets producing Peak Credit, AXP, DFS, V, MA, Peak US Stock Wealth, VTI, and Peak Large Cap Stock Wealth, SPY, Peak US Real Estate, IYR, and Peak Banking, IXG, Peak Dividend Investing, VIG,

 

It was the sovereign authority of nation states that produced the age of investment choice, which produced Peak Nation Investment, EFA, Peak Small Cap Nation Investment, IFSM, Peak Global Industrial Production, FXR, Peak Major Currencies, DBV, Peak Emerging Market Currencies, CEW, and Peak Leveraged Investing, PSP.  Countries such as Mexico, EWW, New Zealand, ENZL, Turkey, TUR, Thailand, THD, the Phillippines, EPHE, Indonesia, IDX, and Ireland, EIRL, became investment carry trade darlings. The age of investment choice was underwritten by the Banker Milton Friedman Free To Choose Floating Currency Regime, which had its origins in the creation of the creation of Federal Reserve in 1913, and the development of the Milton Friedman fiat money system in 1971.

 

Robert Wenzel writes The Stockman Backlash. Peter Schiff writes that the fiat money system was doomed ever since its inception. Despite David Stockman’s misalignment with the Republican hierarchy, the Left has an even greater revulsion for Stockman. Since the crisis, he has become perhaps the most respected figure (with the possible exception of Alan Meltzer) to take the position that a system based on fiat currency is doomed. Those who most visibly argue these points, like Ron and Rand Paul, and myself, come from the libertarian movement. As a result, we can be easily dismissed as cranks. However, Stockman was once a card carrying member of the power elite. His embrace of these principles is taken more seriously and is thus ripe for instant attack from liberal economists.  While the usual suspects of Jared Bernstein and Joe Weisenthal weighed in with heaps of invective, the loudest heckles have come from, whom else, Paul Krugman. He began his multi-post campaign by questioning the “mystery” of why the New York Times would sully Krugman’s own gravitas by forcing him to share column inches with someone as “non serious” as Stockman. He then offers the back of his hand: “I thought Stockman would offer some kind of real argument, some presentation, however tendentious, of evidence. Instead it’s just a series of gee-whiz, context- and model-free numbers embedded in a rant – and not even an interesting rant. It’s cranky old man stuff.” In actuality, Stockman’s NYT piece offers a litany of objectively dismal facts and cogent explanations of how we got here.

 

Three bailouts of Greece, GREK, the just announced bailout of Cyprus, the absence of government in Italy, EWI, the failure of economy in France, EWQ, with Mike Mish Shedlock reporting Sharp deterioration in French manufacturing, and Gary of Between The Hedges relating the Los Echos report

French confidence in Hollande Falls Below 30% as CSA polls finds President Francois Hollande is least popular president since establishment of Fifth Republic, and the economic collapse of Spain, EWP, turned European Financials, EUFN, lower on February 1, 2013, and then again on March 14, 2013, bringing in Peak Wealth, VT, on March 14, 2013, and Peak Credit April 5, 2013.

 

Trust in the US Federal Reserve and the other world central bank’s monetary policies of debt monetization and monetary expansion, gave strong seigniorage, that is strong moneyness, to the Small Cap Pure Value Stocks, RZV, as is seen in their chart combined together with nation Investment, EFA, Global Industrial Producers, FXR, Small Cap Real Estate, ROOF, Mortgage REITS, REM, Residential REITS, REZ, and Industrial Office REITS, FNIO.  With global policies of ZIRP in place investors have pursued high yield bearing investments especially Small Cap Real Estate, ROOF, and Residential REITS, REZ.  

 

But now, the expansion of the Business Cycle is complete, and the World Banks, IXG, seen in this Finviz Screener, are turning lower in value, on the exhaustion of the world central banks’ monetary authority.  

 

The world is passing into Kondratieff Winter as investors derisk out of the most carry trade and credit sensitive stocks, that is out of the Small Cap Value Stocks, RZV. The age of speculative leveraged investment is over.  

 

Now on fears of EU nation default, the age of diktat is commencing, where the Beast Regime of Regional Governance, Totalitarian Collectivism, and Debt Servitude, will be established in ten regional zones, as leaders meet in summits and workgroups to announce regional framework agreements which waive national sovereignty and pool sovereignty regionally, as foretold in Bible Prophecy of Daniel 2:25-45 and Revelation 13:1-4.        

 

Liberalism featured wildcat finance, a Doug Noland term where wizards of finance waived magic wands of debt and carry trade investment producing prosperity. Authoritarianism features wildcat governance, where lizards of technocratic government yield clubs of debt servitude enforcing austerity.

 

Liberalism’s seigniorage was produced by World Banks, IXG, such as BAC, C, KEY, BK, JPM, and coined by Asset Managers, such as BLK, WDR, EV, STT, WETF, and AMG, providing the seigniorage of investment choice.  Authoritarianism’s moneyness will come from nannycrats working in public private partnerships of government, industrial and banking oversight of the factors of production.  Macquarie Infrastructure Company, MIC, will likely be a leader in providing regional economic direction throughout the world.  Under regionalism, seigniorage, that is moneyness, will come from sovereign regional leaders, and sovereign regional bodies, such as the EU Finance Ministers and the ECB. providing the seigniorage of diktat such as Capital Controls seen in Cyprus.

 

Zero Hedge relates Bridgewater asks Could Italy blow up the Euro? And The Irish Times reports European funding for banks will be invaluable if recovery in Ireland is to occur. The ninth review of Ireland’s bailout programme warns of significant obstacles ahead. And The Irish Independent reports Draghi signals support for debt deal after push by IMF. And Kevin O’Rourke of Irish Economy writes Political asymmetries and EMU. My quote of the week is from another must-read article, this time by Wolfgang Münchau, who says “I have believed for some time that it is impossible for Germany, Finland and the Netherlands to be in a monetary union with Cyprus, Greece and Portugal. Either the two sides agree to adjust more symmetrically, politically and economically, or this experiment should end.” The argument about economically asymmetric adjustment has at this stage been done to death, and almost everyone understands it, although the German government remains resolutely, proudly, and vocally, macro economically illiterate. Another reason why anti-German posters at mass demonstrations are something that we will have to get used to, which is tragic. But Wolfgang’s point about politically asymmetric adjustment is just as important, and gets to the heart of the matter. When the EU club works according to its rules, people accept the outcomes, but in crises policies are made on the hoof, and it is the powerful who call the shots. This is inevitable, but it is also very dangerous, especially since the decisions that are made at times like this have a much bigger impact on peoples’ lives than anything that typically comes out of Brussels. We have been in crisis mode for much too long now, the crisis shows no signs of going away any time soon, and the political asymmetry is becoming intolerable. A meaningful banking union, that had the power to stick its nose into the German banking system, and had a set of ex ante mutually agreed principles regarding how to resolve banks in all member states, would help reduce political asymmetries. More expansionary monetary and fiscal policies would help make economic adjustment more symmetric. I suspect we’re going to get neither, in which case we need to end the EMU experiment before it drags the broader European project down with it.

 

As liberalism pivots into authoritarianism, there will be no free people anywhere.  In Euroland, there will be no citizens of democratic states; rather there only be residents living in a region of true economic government. While Germans can’t be Greeks or Cypriots, they will all be one living in debt servitude and totalitarian collectivism, accountable to nannycrats in Brussels and Berlin. The Nordic Latin Divide, that is Europe’s North South Divide, will be bridged by statist and technocratic regional governance.    

 

The topping out in Dividend Growth, VIG, and Mortgage REITS, REM, as well as all the yield bearing ETFs seen in this Finviz Screener, is prime evidence that the moneyness of investment choice is dissipating. The moneyness of diktat is coalescing and is seen in the EU Finance Ministers and ECB’s Cyprus Deposits Levy and Capital Controls.    

 

The ETFs of Liberalism which produced wealth, will increasingly be seen as dead men walking investment vehicles, zombified by world central bank money policies of debt monetization and ZIRP.

 

Liberalism’s better investments will increasingly be seen as toxic will include AUSE, BJK, CARZ, CUT, EIRL, EPHE, EWW, FDN, FPX, FXR, IBB, IDXJ, ITB, IYC, KBWY, PJP, PKB, PSP, PXE, REM, ROOF, RZV, TAO, THD, TUR, WOOD, XRT, and XSD, seen in this Finviz Screener.   

 

The Asset Managers which coined these ETFs will increasingly be seen as burnt out wealth foundries abandoned by burned investors. Anachronistic financial enterprises will include Van Eck, Wisdom Tree, First Trust, Guggenheim, iShares, Powershares, SPDR State Street, State Street Global Advisors, Vanguard, Eaton Vance, Waddell & Reed, Affiliated Managers Group, and Blackrock. The layoffs in the financial industry are just now beginning as Dow Jones Newswires reports Bank of America to lay off 1,320 employees in upstate New York.

 

The financial wealth belt covering an area from Millbrook in Dutchess County and Westchester County in upstate New York, and extending throughout the Gold Coast will become like the rust belt, or like McDowell County, the southernmost county in West Virginia; its county seat is Welch, it use to be a major be a metallurgical coal mining town; but now the biggest employer is Walmart at Big Four.       

In summary, a global paradigm shift is underway, Liberalism is falling to Authoritarianism with the failure of investment choice, as is seen in the trade lower in world stocks, and the rise of diktat, as is seen in the mandate of the deposits levy and capital controls in Cyprus.    

 

Regionalism is supplanting democracy. The Eurozone is setting the model for the sovereignty of regional governance to supercede the rule of law, whether it be nation state constitutional law, parliamentary legislation, election results, or natural law of Libertarianism, as championed by libertarians such as Lew Rockwell and Ron Paul.  

 

News reports documents creeping regionalism is starting to dismantle Greek Socialism. Robert Stevens of WSWS reports Greek parliament overturns right to free, universal education. The cynically-named Athena Plan, calling for mass closures of universities and technical institutions, was passed in flagrant violation of the Greek constitution. And Mr Stevens writes again After Cyprus, more austerity in Greece. Fresh from its financial looting of Cyprus, the European bourgeoisie is threatening to withhold funds from Greece unless it complies with mass sackings in the public sector.

 

In the US, Detroit sets the model for public private partnerships to rise in preeminence to rule society as Bryan Dyne of WSWS reports Emergency manager’s ex-law firm hired to oversee Detroit restructuring. Jones Day, the law firm where Kevyn Orr worked before becoming Detroit’s emergency financial manager, has been retained by the city of Detroit as its restructuring counsel.  And Jerry White of WSWS reports New law granting Detroit emergency manager sweeping authority goes into effect. Powerful financial interests are using Detroit as a test case for imposing deeply unpopular measures in line with what is occurring in Cyprus, Greece and other European countries. And Lawrence Porter of WSWS reports Multi-billionaire Dan Gilbert seeks to cash in on Detroit’s financial dictatorship. Dan Gilbert, the multi-billionaire owner of Quicken Loans, has unveiled a plan to gentrify downtown Detroit with the aid of the newly installed emergency manager.

 

Benton te reports Debt papers, may be used in Portugal.  “More debt leads to higher taxes which will pose as a hindrance to productive commercial enterprises” …  “If and when Portugal defaults, then public workers and pensioners and all those other sovereign debt holders will become the “greater fools” (greater fool theory). I comment that the introduction of the Euro, FXE, has multiplied and intensified moral hazard.  and since the Euro came into use interest rates on German Treasury Debt, started to move to zero. Eurozone ZIRP became a reality with LTRO 1, and LTRO 2, as well as OMT, moving even more capital to Germany’s Treasury. German industriousness and German productivity has risen to the point where Germany became not only Europe’s exporting state but also a global exporting superstar. Now with the collapse of government in Italy, EWI, the only EU country with productive, viable, and sustainable commercial enterprises is Germany.  As the world continues transitioning from Liberalism into Authoritarianism where diktat, that is mandate of leaders, becomes credit, money and power debt papers could be a form of dikat money used by country leaders in technocratic government.  

 

I conclude by relating that faith in the current fiat based money and banking system is now starting to erode. Spot Gold, $GOLD, traded at $1590 on September 5, 2013. Wealth will increasingly be preserved and owing by physical ownership of gold, in bullion coins, and in global trading forms, that is in Internet trading vaults, such as BullionVault.  

 

Its only a short matter of time before gold trades higher, recovering from its death cross as is seen in Jack Chan’s chart of the Gold ETF, GLD.