Global ZIRP Drives The S&P 500, World Stocks, And Nation Investment To New Monthly Highs Producing Liberalism’s Peak Sovereignty, Peak Seigniorage, And Peak Prosperity

Financial Market Report for the month ending Tuesdy April 30, 2013

1) … Financial trading analysis for the Monday April 29, 2013 and Tuesday April 30, 2013

A)  … On Monday, April 29, 2013, Global ZIRP grossly warped wealth and pushed the S&P 500 to  a new high.

Global ZIRP is seen in World Treasury Bonds, BWX, Ultra High Yield Bonds, UJB, Junk Bonds, JNK, and Aggregate Credit, AGG, trading higher, and is seen in the Interest Rate on the US Ten Year Note, ^TNX, trading at 1.67, which is just above its lows of 2013.

The world central banks’ monetary policies of easing has produced Global ZIRP which in turn has  grossly warped wealth by making heavily indebted corporations more valuable, and by making corporations that are focused on finance, leisure, booze production, entertainment, recreation, retail, casinos, resorts and vice, more wealthy as well.           

In Orwellian fashion, under Liberalism, Global ZIRP has made debt wealth.  Countries and corporations that are heavily indebted, have become more valuable, as interest rates have fallen closer to zero. This is called “the zero effect” and distorts wealth so greatly, that a whiplash effect is imminent, whereby, a credit bust and global financial breakdown, will result.  Said another way, the world central banks, in pursuing monetary policies of easing and credit liquidity, have crossed the rubicon of sound monetary policy, and have made “money good” investments bad, beginning first with the basic material group of stocks, XLB, and then with the technology, XLK, group of stocks.  

As the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, has flattened, as is seen in the Flattner ETF, FLAT, flattening, and trading higher in value, and as seen in the Steepner, ETF, STPP, trading lower in value, and as Kuroda Economics has been embraced by the financial markets, wealth has flowed to lenders least likely to generate economic production, such as DB and SAN, and to corporations that make money through recreation and vice, such as SIX, and PINK, to highly indebted companies, such as IP, to Real Estate REITS which package mortgage backed bonds, such as IVR, to Real Estate REITS profiting from a flattening yield curve, such as O, to companies which package debt and transfer money, such as EEFT, and to companies which develop LBOs, by busingt the target apart only to lay off workers and repackaging them with debt, such as TCAP, and GBDC, and to corporations that make money through enviornmental pollution, such as AEP, and to financial guidance companies, such as BEN.    

Indebted countries becoming more wealthy include, Australia, EWA, with its bank, WBK, and New Zealand, ENZL, the Phillippines, EPHE, Indonesia Small Caps, IDXJ, and Japan, EWJ, with its banks, MTUSMFGMFG, its brokerage, NMR, and its credit services provider, IX, Ireland, EIRL, and its bank, IRE, the US and its Investment Banker, JPM, its Too Big To Fail Banks, BAC, C, and its Regional Banks, RF, FITB, OFG, HTBI.  

Real Estate REITS which package mortgage backed bonds soaring in value include ACAS, IVR;  And those profiting from a flattening yield curve include CORE, CUBE, STWD, SFI, LSE. 

Indebted corporations becoming more wealthy, include Small Cap Real Estate Companies, ROOF, and  Large Cap and Mid Cap Growth Companies, such as MTW, IP,

One of the most rewarding of Liberalism investments schemes was leveraged buyouts, PSP, which saw investment bankers disable companies and repackage them with debt, such as DLPH, FRGI, HII. Liberalisms wealth lords are modern day nephilim, or gods of financial fire, who through financial craft and financial engineering have produced exotic investment vehicles, which under Global ZIRP have soared in value.  Thus Liberalism’s money lords, have through genius created financial investments very extreme and alien to Liberalism’s father Milton Friedman, who birthed the idea Free to Choose, leaving one to ask what are these Prometheus and Alien creatures, and leaving the investor asking, Who am I? Who made me? What is my purpose?              

Corporations whose manufacturing capability depends upon currency carry trade advantage, such as Japan’s HMC, and whose sales depend upon easy credit, such as automobile manufacturing, CARZ, such as Sweden’s, ALV, and automobile dealerships, such as PAG, SAH, ABG, KAR, AN, KMX, LAD, have soared in value under Global ZIRP.     

The bible reveals that Jesus Christ is at the helm of the economy of God, that is He is overseeing the economic and political administrative plan of God, transferring investment out of basic materials, XLK, and technology, XLK, and into discretionary, XLY, for the very completion of the age of investment choice.  Having blown bubbles in the former groups, he is now blowing bubbles in the latter group, with cases in point being Media Companies, PBS, such as CBS, CGI, RUK, AOL, YHOO, Retailers, XRT, such as FRCOF, LUX, Entertainment Companies, such as DIS, TWX, SIX, CGSP, Cable TV Companies, such as VMED, CHTR, DISCA, LBTYA, and Communications Providers, such as SATS, thereby expanding and bringing the very fullness and completion of wealth to non-productive investment assets.      

Corporations that make money through consumption, becoming wealthy include, Telecom Service Providers, IST, such as Indonesia’s TLK,  Britain’s, BT,  the Philippine’s, PHI,  Japan’s NTT, Argentina’s NTL, and the US’, VZ, and Retail REITS, such as O, GGP, NNN.  

Liberalism was an age where investment choice rewarded pharmaceutical manufacturers, PJP, such as NVS, SNY, LLY, MRK, PFE, JNJ, and investment speculation in Biotechnology, IBB. 

The world central banks’ monetary policies, in effect policies of money printing, have inflated up the value of corporations making money through vice.  Sin stocks given seigniorage by the world central banks include tobacco companies, PM, casinos, PNK, MPEL, and booze producers, DEO, BUD. SAM. 

Global ZIRP warping wealth, is seen in the chart of Fidelity Investments mutual fund VICEX, which has been underwritten by trust and confidence in the distressed investments taken in by the Fed under QE 1, and which were traded out for US Treasury Bonds, and are traded by Fidelity Investments’ FAGIX.  The world central banks monetary intrusion in stimulating vice stocks has truly warped wealth, and in that sense, the world central banks have created “warped money”.  Industrial mining stocks, PICK, once favored currency carry trade investments, such as RIO, VALE, and BHP, stand as tombstones to the age of fiat wealth investment and now the most speculative and interest rate sensitive stocks are seeing investment completion.

Sovereingty provides seigniorage. The world central banks and bankers of all types, using credit and carry trade investment have given seigiorage to fiat money. “Warped money” is short lived money, it is unsustainable, it is simply a flash in the pan at the end of the age of investment choice. A new age, the age of diktat is coming. Crony Capitalism, European Socialism, and Greek Socialism are even now giving way to Regionalism where diktat money replaces fiat money, as Nannycrats provide the seigniorage, that is the moneyness of diktat. 

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.            

The US Fed in providing QE, stimulated investment in the companies whose revenues come from the most discretionary of resources, these include the regional airlines, such as RJET, JBLU, ALK, ALGT, LUV, SKYW, small cap value companies, such as POOL, and recreational vehicle manufactures, such as WGO.

Global ZIRP, in particular Mario Draghi’s OMT has warped the very definition of sound money investments by giving seigniorage, that is moneyness to debt laden banks, such as Germany’s, DB, and Spain’s, SAN. And has driven investment up in Euronet Worldwide, EEFT, which processes transactions for a network of 17,600 ATMs and approximately 67,000 POS terminals in Europe, the Middle East, and the Asia Pacific.

With the rise of the Euro, FXE, since its low in August 2012, of 120 to 130.40 today, European Wealth, VGK, has been reinflated by Mario Draghi’s OMT, driving down nation treasury debt rates, and is largely determined by the trading value of Germany’s DB, and Spain Banks’ DB, and the other European Financial Institutions, EUFN, which are loaded to the gills with their nation state treasury debt.  Sharing a common currency, and sharing a common monetary policy, together with Global ZIRP, has produced Peak Wealth, VT, Peak National Sovereignty, EFA, IFSM, Peak Credit, AGG, JNK, and Peak Currencies, DBV, CEW. All backed by global hegemony of the Banker Regime’s prime central bank, the US Federal Reserve, and its prime global hegemonic empire, the United States, VTI. Thus Peak Sovereignty and Peak Seigniorage of Liberalism’s Banker Regime has been produced by Jesus Christ operating in dispensation to fulfill Liberalism’s age of investment choice, where fiat money has become become “warped money”.   

The final intrusion of Global ZIRP is that has benefited corporations that make money through enviornmental pollution, that is the Electric Utilities, XLU, such as AEP, DTE, NEE, D, CMS, PNW, WEC, HNP. 

Liberalism was an age not only characterized by debt, but also by carry trade investing, and hot money flowed to those countries characterized by a strong work ethic and access to Asia capital and manufacturing resources, the prime example has been Thailand, THD, which rightly earns the title as Liberalism’s most rewarding country for nation investment, EFA.  Ireland, EIRL, was another country rewarding nation invesment, as hot money flowed to bank, IRE, information services, ACN, pharmaceutical production, cement production, CRH, JHX, and equipment manufacturing, COV. And Switzerland, EWL, received carry trade investment favor, with a rising Euro, FXE, rallying due to global ZIRP, bubbling up, that is reflating, Electrical Equipment Manufacturer, ABB.  Switzerland’s economic fate of having just now attained Peak Wealth, VT, has been the direct result of its currency, the Swiss Franc, as being a hyper-variant of the Euro, FXE.  

The chart of the US Dollar, $USD, UUP, shows a trade lower, to close $82.58, as most currencies rose. 

The chart of the Euro Yen Currency Carry Trade, EUR/JPY, FXE:FXY, shows a trade higher; yet its chart suggests that it is topping out and turning over.

The Euro, FXE, rose 0.50% to strong resistance at 128.91.

The Yen, FXY, rose 0.25 to strong resistance at 100.07.

Major World Currencies, DBV, rose 0.25%

Emerging Market Currencies, CEW, rose 0.33%

Small Cap Pure Value Shares, RZV, rose 1.0%, and Small Cap Pure Growth, RZG, rose 0.9%, yet the chart of the currency demand curve, RZV:RZG, suggests that disinvestment from currencies is underway.

The monthly chart of the Optimized Carry Trade ETN, ICI, has manifested bearish engulfing suggesting that currency carry trades are terminating.

The daily chart of Risk Off ETN, OFF, which had been trading higher, traded lower to strong support.

Yield bearing equity investments traded higher; the yield chasing boom continued today.

DBU 1.6

IST  1.5

DRW 1.4

REM 1.2

PSP 1.0

XLU 0.9

DTN 0.7

XPH 0.5

Sectors traded higher

TAN 4.4

FAN 2.4

XSD 1.3

CARZ 2.0

PBD 1.6

IXG 1.1

BJK 1.0

FXR 0.7

KXI 0.7

PJP 0.2

World Stocks traded to new highs

VT 1.0

VSS 1.0

EFA 1.3

IFSM 0.,7

Countries traded higher

EWUS 3.3

EWU 0.7

EWL 1.5

EWT  2.0

ARGT 1.0

The chart of the S&P 500, ^SPX, SPY showed a 0.7% trade higher to close at an all time new high of $1,593.

Asia countries traded higher

EPP 1.5

ENZL 2.0

EWA 1.5, with its Westpac Banking, WBK,  2.5

IDXJ 1.2

EPHE 1.0

THD 0.7

European countries traded higher

VGK 1.5

EWI 2.7

EWP 2.4

EFNL 1.6

EWG 1.5

GERJ 1.2

GREK 0.5

Banks traded higher

IXG 1.5

EUFN 1.2

EMFN 1.1

FEFN 2.0

KRE 0.7

RWW 0.3

Credit traded higher

BWX 0.6

UJB 0.3

JNK 0.2

AGG 0.06

FLOT -0.02

GOVT -0.04

B)  … On Tuesday, April 30, 2013, Global ZIRP drove the S&P 500, world stocks, and nation investment to new monthly highs producing Liberalism’s peak sovereignty, peak seigniorage, and peak prosperity.

Global ZIRP is seen in World Treasury Bonds, BWX, Ultra High Yield Bonds, UJB, Junk Bonds, JNK, and Aggregate Credit, AGG, trading at an all time high, and is seen in the Interest Rate on the US Ten Year Note, ^TNX, trading at 1.67, which is just above its lows of 2013.

Monthly charts show World Stocks, VT, World Small Cap Stocks, VSS, Nation Investment, EFA, and Small Cap Nation Infestment, IFSM, traded to new highs. The daily chart of the S&P 500, $SPX, SPY, rose 0.25%, to close at a new all time high of 1997.47. The monthly chart of SPY, shows Global ZIRPs stunning stimulus beginning in January 2013 and lasting through the end of April 2013.  

Sectors trading higher included

OIH 1.4

IEZ 1.3

XSD 1.4

PDP 1.1

FDN 0.9

PPA 0.8

PBD 0.7

Yield bearing sectors trading higher included; once again investors strongly pursued yield. 

REZ 1.3

IYR 1.0

PSP 1.0

ROOF 0.3

DRW 0.3

XLU 0.3

IST 0.3

XPH 0.2

DTN 0.2

Cuntries trading higher include the following with Asia, EPP, rising 0.7% higher.

INP 2.5

EWY 2.0

EWZ 1.8

ERUS 1.7

THD 1.6

JSC 1.6

RSX 1.4

GERJ 1.2

EWA 0.9

EWD 0.8

EWJ 0.8

EWG 0.8

EWL 0.4

EPHE 0.4

ENZL 0.2

Banks traded higher

IXG 0.7 with 11.5% YTD

EUFN 1.1 with 3.9% YTD

EMFN 1.0 with -0.9 YTD

FEFN 1.0 with 18.8% YTD; clearly a financial sector boom, that is a credit boom has been underway

KRE 0.0 with 11.4% YTD

RWW 0.0 with 15.2% YTD

The chart of the US Dollar, $USD, UUP, shows a trade lower, to close $82.18, as most currencies rose. 

The chart of the Euro Yen Currency Carry Trade, EUR/JPY, FXE:FXY, shows a trade higher; yet its chart suggests that it is topping out and turning over.

The Euro, FXE, rose 0.60% in breakout to close at 130.53.

The Yen, FXY, rose 0.40% to close at 100.96

Major World Currencies, DBV, traded 0.25% lower.

Emerging Market Currencies, CEW, rose 0.33% to close at a new high

The mix of Credit traded higher while Aggregate Credit, AGG, traded unchanged

BWX 0.5

UJB 0.2

JNK 0.7

AGG 0.0

FLOT 0.02

GOVT 0.0

Wikipedia relates The Miracle of Chile which came through Dr. Milton Friedman’s advice for economic liberalism According to the 2010 Index of Economic Freedom (of the Heritage Foundation, Fraser Institute and WSJ), Chile’s economy is the 10th freest.[24] Chile is ranked 3rd out of 29 countries in the Americas and has been a regional leader for over a decade. Chile’s annual GDP growth was 3.2% in 2008 and had averaged 4.8% from 2004 to 2008.[19] The percent of total income earned by the richest 20% of the Chilean population in 2006 was 56.8%, while the percent of total income earned by the poorest 20% of the Chilean population was 4.1%.[19] Chile’s Gini index (measure of income distribution) of 52.0 in 2006, compared to 24.7 of Denmark (most equally distributed) and 74.3 of Namibia (most unequally distributed).[19]

If Dr. Friedman were alive today, would he proclaim a Miracle of New Zealand, whose investment chart, ENZL, shows a spectacular rise in value. New Zealand stands out as a stunning example of the investment craft, in Liberalism’s age of investment choice.

Financial trade in New Zealand, ENZL, has soared spectacularly in value for two reasons, first, its banks have been adept in pursuing ZIRP and purchasing government securities to flatten the yield curve amongst other market distorting objectives, and secondly, because it offers no deposit insurance whatsoever, exposing small local depositors to moral hazard. Pricing in deposit insurance would detract from bank investment performance. New Zealand banks have been engaged in Liberalism’s wildcat finance, a Doug Noland term, to the investors delight, and now place New Zealand residents at risk of experiencing Authoritarianism’ wild cat governance, where leaders bit, rip and tear at one another, in their efforts to become top dog leader as crisis unfolds, and as they impose diktat on people which could takethe form of new taxes, austerity measures, bank deposit bailins, and capital controls. New Zealand banks do not expect to be accountable for the risks they incur through their practices. Gareth Vaughan writes in Interest.co.nz New Zealand depositors lack the insurance present in many other countries because the dangers of moral hazard issues and the difficulties of defining boundaries and because pricing is viewed by officials as bigger concerns than consumer protection.

Elizabeth Trotta writing in Smart Money gives insight into the danger of investment “bubble trap” that exists at the current time relating A bubble occurs when the price of an investment exceeds its underlying value, often because of panicked or irrational buying. When the bubble bursts, panicked selling can occur and prices can plummet, creating steep losses for those bought at the wrong time (or essentially paid too much). Both investors in New Zealand, ENZL, as well residents in New Zealand, are now at risk of financial loss because of moral hazard underlying investment in New Zealand.

Bubble trap is likened to the story of Icarus, the boy who fell to his death upon flying to close to the sun with wings of wax crafted by Daedalus, the one who makes or crafts with divinity, referring to works that are crafted so well that they can capture and hold divinity, yet are frail when exposed to natural processes. 

3) … Summary

Jesus Christ has used the world central bank’s monetary policies of easing to produce Global ZIRP which in turn has produced Liberalism’s Peak Wealth and Peak Prosperity by bringing investment completion and fullness to heavily indebted corporations, to corporations that are focused on banking and finance, leisure, booze production, entertainment, recreation, retail, gambling, vacationing and in vice in general.  The Banker Regime’s Global ZIRP has produced the very final part, that is the very apex of Liberalism great crack up boom in wealth, VT.         

Liberalism was an age best described as wildcat finance, a Doug Noland term, where investment bankers such as JP Morgan’s, JPM, Jamie Dimon, and Asset Managers such as BLK, WDR, EV, STT, WETF, AMG, waived wands of credit and carry trade investment creating wealth, and greatly rewarding investment choice.

Soon out of sovereign default, competitive currency devaluation, credit collapse, and financial system bust, as seen in bible prophecy of Revelation 13:1-4, the Beast Regime, where nannycrats such as Olli Rehn, will rise to rule in Authoritarianism’s age of wildcat governance, yielding clubs of diktat, enforcing regional governance, debt servitude and austerity.  

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: