Financial Market Report for the week ending November 8, 2013
1) … Details of this week’s financial market trading
On Monday, November 4, 2013, Export centric ETFs and currency carry traded ETFs traded higher on short sell covering, however, Commodities, DBC, led by Base Metals, DBB, traded lower.
Sectors trading higher included Solar Energy, TAN, 8.3%, Metal Manufacturing, XME, 3.0, Steel, SLX, 2.4, Transportation, XTN 1.9, Coal, KOL, 1.8, Small Cap Pure Growth, RZG, 1.7, Small Cap Pure Value, RZV, 1.7, Healthcare, IHF, 1.9, Spin Offs, CSD, Industrial Miners, PICK, 1.1, Global Industrial Producers, FXR, 1.1, Small Cap Industrials, PSCI, 1.0, Leveraged Buyouts, PSP, 1.0, Social Media, SOCL, 1.0, Retail, XRT, 0.9. and Energy Production, XOP, 3.1, and Small Cap Energy, PSCE, 2.9.
Metal Manufacturers, XME, 3.1%. Steel, SLX, 2.4%, Coal Miners, KOL, 1.85, and Industrial Miners, PICK, 1.2%; all rising, as is seen in their combined ongoing Yahoo Finance Chart, while Base Metal Commodities, DBB, fell sharply lower. Natural Gas, UNG, plummeted to strong support. OilPrice relates Russia Opens LNG Floodgates. The Russian government has made room in the natural gas market by letting companies other than Gazprom export liquefied natural gas. The shale natural gas revolution in the United States is pushing Russia from its leadership position in terms of output. Gazprom, meanwhile, only has one LNG plant in service. On Monday, engineering company Foster Wheeler said it landed a contract to help with the initial phase of an LNG plant for Russia’s Far East. That plant, and Russia’s new export concessions, may wind up taking a slice out of the US natural gas pie.
Countries trading higher included Germany Small Caps, GERJ, 2.6%, Poland, EPOL, 2.1, China Industrials, CHII, 1.5, South Africa, EZA, 1.4, Argentina, ARGT, 1.3, Egypt, EGPT, 1.3, India Small Caps, SCIN, 1.2, New Zealand, ENZL, 1.2, Philippines, EPHE, 1.2, Vietnam, VNM, 1.2, Ireland, EIRL, 1.1, Norway, NORW, 1.0.
While Global Financials, IXG, traded slightly higher, on November 4, 2013, Swiss Banks, UBS AG, UBS, and Credit Suisse, CS, traded strongly lower. South Korea Banks, KB Financial, KB, and Shinhan Financial, SHG, as well as Royal Bank of Scotland, RBS, and National Bank of Greece, NBG, traded lower. It is these banks that are pivoting the Global Financials, IXG, lower.
The Global Financials, IXG, are leading World Stocks, VT, and Nation Investment, EFA, lower, as is communicated by the ongoing Combined Google Finance Chart of Global Financials, IXG, Transportation, XTN, Global Industrial Producers, FXR, Small Cap Pure Value, RZV, and Small Cap Pure Growth, RZG.
It’s important to review history. Milton Friedman truly was an economic genius, but cannot be considered a true libertarian along the lines of Hayek, Mises, and Rothbard, as he proposed the Free to Choose floating currency regime, which President Nixon embraced and took the world off the gold standard to commence the Vietnam War, which inaugurated President Nixon as an Imperial President and placed him in charge of the what would become the US Dollar Hegemonic Empire.
According to Milton Friedman’s doctrine, the US Dollar became the world’s reserve currency, and currencies began to float in relation to investment opportunities based upon investment opportunities in democratic nation states. Corporations embraced globalism, which drove Global Industrials Producers to seek ever increasing profit as well as debt. Investors embraced schemes of credit, such as Junk Bonds, JNK, Ultra Junk Bonds, UJB, Spin Offs, CSD, and Leveraged Buyouts, PSP, as well as schemes of currency and carry trade investing, such as the EURJPY, and the value of Risk Assets, like Small Cap Value Stocks, RZV, Small Cap Growth Stocks, RZG, Biotechnology, IBB, Solar Energy, TAN, Social Media, SOCL, Energy Producers, XOP, and Small Cap Energy, PSCE, soared.
Dr. Friedman should be honored as the father of liberalism credit system and currency carry trade system, which was built later upon by the many fathers of the leveraged speculative investment community, known as the banking system, to fully complete liberalism as the age of investment choice.
Benson te informs of the current banking elite relating Central Bankers Are The Real Centers Of Political Power The fiscal revenues in the Land of the Free rest exclusively in the hands of a tiny banking elite. Everything else is just an illusion to conceal the truth and make people think that they’re in control. Money, which represents half of almost every transactions made every day, has been in the control of a few unelected technocrats who have the capacity to run society aground. Said differently centralization of money equates to a top-down dynamic of risk distribution in terms of money thereby making risks systemic, e.g. boom bust cycles, stagflation and hyperinflation.
Liberalism pivots into authoritarianism as the Great Bear Market of 2013 commences. The trade lower in World Stocks, VT, Semiconductors, XSD, Nation Investment, EFA, Global Financials, IXG, Copper Miners, COPX, established Wednesday, October 23, 2013, as an epic and pivotal day in economic and political history, as fears arose that the greatly interventionist monetary policies of the world central banks have turned “money good” investment bad, and have thus turned Major World Currencies, DBV, such as the Euro, FXE, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, lower in value. The fiat money system died, and the diktat money system came into being turning the financial markets from bull to bear as money stopped growing on QEs. The pursuit of risk assets, such as Small Cap Growth Stocks, RZG, and Small Cap Value Stocks, RZV, and Vice Stocks, VICEX, and the pursuit of yield fed risk appetite in liberalism. But now under authoritarianism, risk aversion feeds the investment demand for possession of precious metals with the price of Gold, $GOLD, starting to rise beginning on October 14, 2013.
The Great Bear Market of 2013, commenced on October 23, 2013, as confirmed by the Market Off ETN, OFF, rising in value, terminating liberalism’s Milton Friedmans Free To Choose Floating Currency and Credit Banker Regime.
The world passed through peak democratic nation state sovereignty and peak banker seigniorage on October 23, 2013, as World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, turned lower from their PBOC Monetary Stimulus, and US Fed No Taper, and ECB Bank Supervision Rally highs.
And on October 23, 2013, The US Ten Year Notes, TLT, rose to strong resistance at 108 and turned lower, and on Friday November 1, 2013, fell parabolically lower when the Interest rate on the US Ten Year Note, ^TNX, rose to 2.62%.
Friday November 1, 2013, will be known as Black Friday for Bonds, as the following traded strongly lower, 30 Year US Government Bonds, EDV, 10 Year US Government Note, TLT, Government Short Term Bonds, SHY, Long Duration Corporate Bonds, BLV, Corporate Bonds, LQD, International Treasury Bonds, PICB, World Treasury Bonds, BWX, Emerging Market Bonds, EMB, Municipal bonds, MUB, Junk Bonds, JNK, Mortgage Backed Bonds, MBB, and even Short Duration Bonds, FLOT. The failure of liberalism’s credit was complete.
There are no safe bonds anywhere in the world. This puts what has been traditionally perceived as risk free money, like Short Term Bonds, FLOT, Short Term Government Bond, SHY, Enhanced Bonds, MINT, and GSY, and Money Market Mutual Funds which have traditionally maintained a constant one-dollar value, at risk for loss of capital.
Jason Kephart of Investment News reported on August 5, 2013, More Regulation Is Likely On The Way For Money Market Funds. The average money market fund yields just 0.01% today, according to money market research firm iMoneyNet.
The low yields that money market funds offer have caused companies that manage them to waive some of the fees tied to them, to ensure that investors aren’t investing in a losing proposition. Since 2008, for example, Schwab has waived more than $2 billion in money market fund fees.
The SEC has proposed two potential changes. One would direct prime institutional money market funds to disclose their daily net asset value rather than the stable $1 NAV that is the norm. The other proposal would limit withdrawals and charge withdrawal fees during times of market stress.
Debt deflation enabled the currency traders to commence competitive currency devaluation in the beginning of what will be an epic currency war against the world central bankers, with the result that the US Dollar, $USD, stopped falling in value, and the Australian Dollar, FXA, Euro, FXE, British Pound Sterling, FXB, Swedish Krona, FXS, Swiss Franc, FXF, Brazilian Real, BZF, Indian Rupe, ICN, Emerging Market Currencies, CEW, all traded lower in value. The collapse of currencies is seen in their combined ongoing Yahoo Finance chart together with the 200% Dollar ETF, UUP.
In response to the downturn in financial stocks, the world central banks have came out with a new end game, that is to roll out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, where banks of all types, the Too Big To Fail Banks, RWW, the Regional Banks, KRE, the Nasdaq Community Banks, QABA, and Savings and Loans, S&Ls, such as BOFI, STSA, EBSB, ISBC, STSA, PULB, BANR, are going to be integrated into government, and will will be known as the government banks, or gov banks for short, and will serve as the bedrock for regional governance, which replaces democratic nation state rule.
The Fed, and other central banks don’t have an endgame that includes helping the investor, the working class or middle class. Monetary policies of easing and monetary tools such as $85 billion of purchasing of debt is history, that is history in the sense that it has any useful benefit.
The world central bankers are effecting a global economic and political coup d’etat, … with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … pivoting the world from liberalism’s regime of nation state democracy into authoritarianism’s regime of regional statism, specifically regional governance and totalitarian collectivism, except for the Big Apple, as the WSJ reports New York City Takes Left Turn. Election of Bill de Blasio as Mayor could be test of revival of liberalism in American political life.
Dollar Vigilante asks Are You Prepared For A US Bank Bail-In?
Mankind’s journey of liberalism came to an end on October 23, 2013 with the failure of credit, AGG, the collapse of currencies, such as Brazilian Real, BZF, the Australian Dollar, FXA, the Euro, FXE, and disinvestment out of Global Financials, IXG, World Stocks, VT, Nation Investment, EFA.
Mankind’s journey of authoritarianism commenced on October 23, 2013, with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio. The provision of new world central bank monetary policies and schemes was the Genesis Event, that terminated the world out of the twin global former empires of the British Empire and the US Hegemonic empire, and into the new rule of the Ten Toed Kingdom, where nannycrats rule establishing regional stability, security and sustainability in of the world’s ten regions.
Shaun Richards asks How long will the UK economy be run for the benefit of banks like RBS and the Co-op? The RBS has continued on a troubled path since its effective nationalisation back on October 13th 2008. The (new) measures will include the creation of an internal bad bank to manage the run-down of high risk assets projected to be £38 billion by the end of 2013.
John Redwood writes The Bad News Still Continues From RBS. The Bank reported more losses and still pays no dividends. It has published a report on its own small and medium sized business lending and service which is extremely critical.
Bloomberg reports Swiss Banks May Shrink on Higher Leverage, JPMorgan Says. UBS AG and Credit Suisse, AG, Switzerland’s biggest banks, may have to shrink their fixed income, currencies and commodities activities if the nation’s regulator imposes higher leverage ratios than currently planned, according to JPMorgan Chase & Co analysts.
On Tuesday, November 5, 2013, All forms of fiat money traded lower, strengthening the Bear Market which commenced October 23, 2013 on a number of fears, such as that the world central bank’s monetary policies no longer provide stimulus, that the global banks cannot provide the investment returns that they have in the past, that traditional democratic governance is at an impasse, and that debtors cannot repay lenders.
It was on October 23, 3013, that bond vigilantes regained control of interest rates globally, as is reflected in the Interest Rate on the US Ten Year Note, ^TNX, rising from 2.48%, to its current rate of 2.66%. Debt deflation commenced in World Treasury Bonds, BWX, and Emerging Market Bonds, EMB. And competitive currency commenced with the Major World Currencies, such as FXE, FXC, FXB, FXS ,FXF, FXA, and the Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF, trading lower in value, which caused the US Dollar, $USD, UUP to rise in value, stimulating investors to derisk out of World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG.
On Tuesday November 5, 2013, Global Financials, IXG, World Stocks, VT, and Nation Investment, EFA, traded lower with the Eurozone, EZU, traded sharply lower on lower European Financials, EUFN, such as UBS, CS, NBG, DB, SAN, RBS, BCS, and a lower European Debt, EU; and the Emerging Markets, EEM, also traded sharply lower, with Emerging Market Infrastructure, EMIF, Emerging Market Mining, EMMT, and Emerging Market Financials, EMFN, such as BFR, BMA, GGAL, BBVA, BBD, BBVA, ITUB, BSBR, BAP, BCH, and CHIC, trading lower on a lower Emerging Market Currencies, CEW, and lower Emerging Market Bond, EMB.
Global Financials, IXG, -0.9%
European Financials, EUFN, -2.0, with Spain’s Bank, SAN, -2.0, Germany’s Bank DB, -2.0, and Ireland’s Bank, IRE,-1.5,
Emerging Market Financials, EMFN, -1.2
Brazil’s, BBDO, -3.5, ITUB, -4.1, BBVA, -2.7, and BSBR, -2.4
India’s Banks, IBN, -2.0, and HDB, -2.0
Chinese Financials, CHIX, -1.7
UK Banks, RBS, -2.5, BCS, -2.0, and LYG,-1.0, all traded lower.
Japanese Banks, MTU, -1.7, and SMFG, -1.1, traded lower.
World Stocks, VT, -0.7%; sectors trading lower included
Paper and Lumber Producers, WOOD -2.0, and Homebuilding, ITB, -1.6
Yield bearing sectors trading lower included Real Estate, IYR, -1.5%, Global Real Estate, DRW, -0.9, Real Estate Reits, REZ, -2.1, Global Utilities, DBU, -0.8, and Leveraged Buyouts, PSP, -0.7
Energy Production, XOP, -2.1, and Small Cap Energy, PSCE, -2.0
Nation Investment, EFA, -0.9%; nations trading lower included
Turkey, TUR, -3.5
Mexico, EWW -3.2
Brazil, EWZ, -2.9 and EWZS, -3.1
South Africa, EZA, -2.4
Peru, EPU, -2.1
Poland, EPOL, -2.0
Taiwan, EWT, -1.7
Chile, ECH, -1.7
India, INP -1.7
Philippines, EPHE, -1.7
Russia, RSX, -1.7 and ERUS, -1.9
Spain, EWP, -1.7
Italy, EWI, -1.5
Sweden, EWD, -1.4
South Korea, EWY, -1.3
China, YAO, -1.2
Greece, GREK -1.2
The Nikkei, NKY, -0.9
Solar Stocks, TAN, traded 1.2% higher, manifesting a spinning top doji chart pattern; the same chart pattern is seen in GTAT, and SCTY.
Commodities, DBC, -0.3%, with Oil, USO, -1.2%.
The US Dollar, $USD, traded higher, as the Brazilian Real, BZF, -1.7%, led Emerging Market Currencies, CEW, -0.6 lower; and the Swiss Franc, -0.5%, and the Euro FXE, -0.4, led Major World Currencies, lower.
The expansionary part of the credit cycle has come to an end as the Steepner ETF, STPP, rose 0.9%, reflecting a steepening of the 10 30 US Sovereign Debt Yield Curve, as the Interest Rate on the US Ten Year Note, ^TNX, shows a rise to close at 2.66%, forcing Aggregate Credit, AGG, -0.3%, with the longer duration bonds traded more lower than the shorter duration bonds; Junk Bonds, JNK, -0.3%.
The chart of the EUR/JPY, showed a close lower at 132.79, as the Euro, FXE, closed lower at 133.27, and the Yen, FXY, closed higher at 95.17.
One definition of credit is trust, and it is clearly failing. Debt deflation, in Europe, and in the periphery, is destroying fiat wealth. The world central banks policies of monetization of debt, have finally crossed the rubicon of sound monetary policy and have destroyed credit as well as currency carry trade investing. With liberalism’s dual spigots of investment liquidity turned off and now running toxic, charts of Global Financials, IXG, Major World Currencies, DBV, Emerging Market Currencies, CEW, and Aggregate Credit, ACC, show fiat money died on October 23, 2013. And Japan with Japanese Government Debt At Record 1,011.2 Trillion Yen, according to the Global Post, is an example of the death in fiat money, with the Nikkei, NKY, trading lower and the inverse of its Treasury debt, JBGS, trading higher.
The very nature of credit, currencies, money, and economic systems is changing.
Under liberalism, investors trusted in the policy of investment choice and banker schemes of credit and carry trade investment of the speculative leveraged investment community for profitable investment returns. The Sarah Mulholland and Tim Higgins Bloomberg report Good Job Is Good Enough As Subprime Car Buyers Lift Sales, and the stunning rise in subprime automobile lender Nicholas Financial, NICK from $2 to $17 documents the schemes of credit that existed under liberalism.
With the failure of fiat money on October 23, 2013, people worldwide will increasingly come to trust the diktat of regional nannycrats and their schemes of debt servitude for regional security, regional stability, and regional sustainability, as the diktat money system rises to replace the fiat money system under authoritarianism.
News reports document the rise of diktat money. Christoph Dreir of WSWS reports Greek Police Storm ERT Broadcasting Centre To End Workers’ Occupation. That’s how fascism acts, shifty and in the dark,” another colleague called out as they left the building … Patraick O’Connor of WSWS reports Australian Treasurer Warns Of Spending Cuts, Declining Living Standards. Joe Hockey declared that “fiscal sustainability” required “winding back some spending that people have come to take for granted.” … And Mark Church and Richard Phillips of WSWS report Australia Public Housing Tenants Face Evictions. Australian governments, Labor, Liberal and Green, are stepping up their attacks on people living in public housing.
Crony capitalism European socialism and Greek Socialism are epitaphs on the bygone era of liberalism. Now regionalism is singular economic system under authoritarianism. Regional integration, that is regionalization is the wave of the future.
Open Europe reports Talks between the Greek government and the EU/IMF/ECB Troika resumed yesterday. According to Kathimerini Kathimerini 2 WSJ WSJ 2 Reuters the Troika is pressing for a cut in the level of social security contributions employers are obliged to pay, and for the closure or streamlining of the state-owned firm Hellenic Defense Systems (EAS).
The Euro Currency Union has expanded to its full limit, presenting the maximum stress in the South North divide, that is the Latin Nordic divide. Zero Hedge reports Greek Companies Unable To Pay Taxes Explode From 182K To Over Half A Million In One Month. And Ambrose Evans Pritchard writes EU Commission Opens Door To Showdown With Germany. The European Commission has warned Germany it could face disciplinary action for running excess trade surpluses at the expense of EU partners.
Isabella Rota Baldini, Paolo Manasse, post in VoxEU What’s wrong with Europe? Unlike the US, Europe is struggling to recover from the crisis. This is especially the case in certain European countries. This column discusses why the process of convergence in the Eurozone has slowed down. It proposes a way for European institutions to cope with the structural problems. with individual country level reforms and a federal budget. Otherwise, the alternative could be a disintegration of the Eurozone.
John Redwood, Conservative MP writes Its Slow Going In Europe As Its Economic Policies Make For A Recession Machine.
Aristides N Hatzis of GreekCrisisNet writes in FT Watch Greece As It May Be The Next Weimar Germany. And BBC reports General Strike Against Cuts Brings Greece To A Halt. Kathimerini posts Greece’s Biggest Telecom OTE To Cut 1,100 Fixed Line Telecoms Jobs. And Kathimerini also reports Biggest Deflation In Half A Century In Greece. Major drop in demand and in imports signalled a 2 percent annual shrinking of prices in October. Roger Bootle of Capital Economics writes in The Telegraph Survival Of The Eurozone May Have Been Greatly Exaggerated: Last week’s surprise interest rate cut by the ECB was largely a response to the looming danger of deflation in the eurozone.
Marianne Arens and Peter Schwarz, of WSWS report Italian government crisis remains unresolved. Even after surviving a second no-confidence vote at the beginning of October, the Italian government of Prime Minister Enrico Letta is staggering from one crisis to the next.
On Wednesday, November 6, 2013. World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, rose on short sell covering, recovering most of Tuesday’s losses. Spain’s SAN, rose helping European Financials, EUFN, recover some of its yesterday’s losses. But India’s Banks, IBN, and HDB, continued lower.
Sectors trading higher included
Industrial Miners, PICK, 1.9 on higher BHP, RIO, VALE,
Software, IGV, 1.0
Resorts and Casinos, BJK, 0.8
Stockbrokers, IAI, 0.8
Regional Banks, KRE, 0.8
Sectors trading lower included,
Biotechnology, IBB -2.9
Solar Energy, TAN, -1.9, as is seen in the stocks in this Finviz Screener trading lower.
Pharmaceuticals, PJP, -1.1
IPOs, FPX, -1.0
Transportation, XTN, -1.0
Yield Bearing Sectors trading higher included
Utilities, XLU, 1.4; with OGE, ITC, AES, D, NEE, LNT, recovering to their May 2013 highs.
Leveraged Buyouts, PSP, 0.9
Energy Production, XOP -2.2, and Small Cap Energy, PSCE, -1.4
Nations trading higher included
Norway, NORW, 2.2
Thailand, THD, 2.1
Sweden, EWD, 1.8
Nikkei, NKY, 1.7
Poland, EPOL, 1.6
New Zealand, ENZL, 1.5
Egypt, EGPT, 1.4
Turkey, TUR, 1.1
Switzerland, EWL, 1.1
German Small Caps, GERJ, 1.1
Netherlands, EWN, 1.1
Greece, GREK, 1.1
Italy, EWI, 1.1
Spain, EWP, 1.1
Ireland, EIRL, 1.0
The Eurozone, EZU, 1.0
Nations trading lower included
Argentina, ARGT, -2.2, on the trade lower in its Banks, GGAL, BFR, BMA,
India, INP, -1.0, SCIN, -1.6, on a lower India Rupe, ICN.
While Junk Bonds, Aggregate Credit, AGG, bounced higher; Ultra Junk Bonds, UJB, traded strongly lower from their rally high.
The US Dollar, USD, traded lower, as most major world currencies, such as the Swedish Krona, FXS, the Australian Dollar, FXA, the Euro, FXE, the British Pound Sterling, FXB, and the Swiss Franc, FXF, leveraged higher over the Japanese Yen, FXY, accounting for Wednesday’s November 5, 2013, short sell covering strength.
In wrote in my blog entry for the week ending October, 25, 2013, The New Economic And Political Paradigm Of Authoritarianism Emerges To Establish A Eurozone Banking Union And Fiscal Union Featuring The Diktat Of Nannycrats As Jesus Christ Opens The First Seal Of The Scroll. None of Europe’s banks are sound, as they are all loaded to the gills with nation state Treasury debt, EU, that cannot be and will not be repaid. The European Financial Institutions EUFN, such as Germany’s DB, Spain’s SAN, and Ireland’s IRE, are insolvent financial banks, and the European nations, at least the PIIGS, that is the periphery nations Portugal, Italy, EWI, Ireland, EIRL, Greece, GREK, and Spain, EWP, are insolvent sovereigns.
Insolvent sovereigns cannot govern, and insolvent banks cannot provide seigniorage. It is only through godsend, that is a lifesaver, that the European banks have financial life; it came through the genius of Mario Draghi, who provided the monetary policies of LTRO1, LTRO2, and OMT.
The Euro FXE, is trading at its rally high of 135.36; its strength is not a function of free market place trading between buyers and sellers of nation state treasury debt; but rather the Euro has been given seigniorage by the sovereignty of one man, that being the ECB’s Mario Draghi. Not only is the strength of the Euro, FXE, the European Financials, EUFN, and nation investment in Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, an awesome thing, it is truly an epic thing, as well as a pivotal thing, and a terminal thing. Liberalism has attained peak sovereignty, peak seigniorage, and peak prosperity.
(The NYT writes) Ignazio Angeloni is one of the more multifaceted lieutenants of Mario Draghi, the president of the European Central Bank. The immediate task is to prepare for the inception of a quasi-independent supervisory branch of the central bank, which will have its own chairman. I wrote as Mario Draghi’s banking lieutenant, he is one of many regional nannycrats rising in power to effect regional economic governance.
Since liberalism’s peak experience in peak money on October 22, 2013, the Euro, FXE, has traded parabolically lower to trade at 133.77. The European Financials, EUFN, have slid from 24.75 to 24.00, and the Eurozone, EZU, have slid from 40.30 to 39.70
Interest rates are headed dramatically higher: the expansionary part of the credit cycle ended on October 23, 2013, as the Interest Rate on the US Ten Year Note, ^TNX, rose from 2.49%, causing World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, to turn lower from their PBOC Monetary Stimulus, and US Fed No Taper, and ECB Bank Supervision Rally highs, as bond vigilantes now have control of Interest Rates globally, enabling currency traders to short sell major world currencies, such as the Euro, FXE, and emerging market currencies, such as Brazilian Real, BZF. It has been the currency carry traded countries which have experienced the greatest debt deflation since the world entered Kondratieff Winter on October 23, 2013, as is seen in the combined ongoing Yahoo Finance chart of Turkey, TUR, Argentina, ARGT, Brazil, EWZ, and Indonesia, IDX.
Given the failure of money, that is stocks, credit, and currencies on October, 23, 2013, economies cannot and will not grow; expect economic contraction, especially in China which saw a dramatic rise in fiat asset values, beginning in late June 2013, only to experience a sell off since October 23, 2013, as is seen in the combined ongoing Yahoo Finance Chart of YAO, CHIX, CHII, ECNS, and TAO.
Liberalism was the age of investment choice, which came from the world central bank’s loose monetary policies and banker schemes of credit and currency carry trade investment. Liberalism’s flag was the Milton Friedman free to choose fiat money system, coming on line in 1971.
But Jesus Christ, acting in dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, that is in the economic and political plan of God to complete every age, epoch, era and time period, fully matured liberalism on October 23, 2013, producing its peak fiat money experience, as is seen in the value of risk free money, Short Term Bonds, FLOT, trading lower.
Jesus Christ, has pivoted the world into the age of diktat, and is changing the dynamic of banking, where the world central bank elite are rolling out the antifragile financial system, an Alberto Mingardi Econolog Econolib term, where the banks, that is the Too Big To Fail Banks, RWW, the Regional Banks, KRE, the Nasdaq Community Banks, QABA, and Savings and Loans, S&Ls, such as EBSB, ISBC, COLB, PULB, BANR, NYCB, and BOFI, are going to be integrated into government, and will be known as the government banks, or gov banks for short, as is seen with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, where nannycrat schemes of diktat and debt servitude will prevail. While Scott Grannis writes The Fed’s Objective Is To Destroy The Demand For Cash, I believe that the Fed’s objective, as well as all the other world central banks’ objective, is to corner all cash and place cash everywhere under regional control as part of the growing dynamic of regionalism which is replacing globalism. Authoritarianism’s flag is the diktat money system.
Obamacare is a leading example of diktat money as Robert Wenzel posts in Economic Policy Journal Obama personally apologizes for americans losing health coverage … and asks So what the hell is he going to do, give us our healthcare liberties back? Not a chance. Many are appalled by the debt servitude and totalitarian collectivism of Obamacare, Mike Mish Shedlock relates New Obamshock Rules. Obamacare reflects one of the lynchpin failings of democracy, that being Obamacare has nothing to do with social justice but rather documents regulatory capture, as Mish continues Five Reasons Obamacare Legislation Failed. First, Lobbyists wrote the ACA legislation. When Nancy Pelosi stated “We have to pass the health care bill so that you can find out what is in it“, she was referring to you , me, and Congress. An extremely tiny number of people knew what was in the bill: lobbyists for hospitals, lobbyists for insurance companies, lobbyists for HMOs, and lobbyists for major pharmaceutical companies. For historical record, the second lynchpin failing of democracy, is that of capitulation to whoever the president in exercise of his will as is seen in the Jason Ditz Antiwar report Kerry: Obama Willing to Attack Iran At Any Time.
The major concept here is that with the rolling out of the antifragile financial system, an Alberto Mingardi Econolog Econolib term, as well as the rollout of Obamacare, the US has passed though liberalism’s peak democracy and has entered into authoritarianism.
There is a risk reward relationship in all things, and it is a fundamental reality to investing. For every investment there is a reward. When risks arise to lessen the rewards, or when risks arise which present the risk of losing one’s investment, then one sells, and seeks a safe haven and safe haven assets.
I do not consider money market funds or saving accounts, safe investments, as they are all bond based, and are likely to be subject to capital controls, where for all practical purposes one’s wealth will be confiscated. One might consider investing in the Grizzly Short Bear Market Mutual Fund, GRZZX, as well as the non yield bearing ETFs, OFF, STPP, HDGE, XVZ, GLD, JGBS, YCS, SAGG, HYHG, seen in this Finviz Screener, as all of these ETFs are now rising from their recent lows.
Some will read the chilling and stirring Robert Wenzel, Economic Policy Journal article, You Have To Prepare and Act Very Early, and make a decision to begin to move some of their funds offshore.
Yet moving one’s investment funds out of US banks, such as Bank of America, BAC, or in US investment banks, such as JP Morgan, JPM, or in Stockbrokers, such as E*Trade, ETFC, or TD Ameritrade, AMTD, presents currency risks. One might consider a bank in Hong Kong where one can place one’s investments in any number of currencies or even denominate it in gold; yet overseas financial centers whether they be London, or Hong Kong, could very well be the epicenter of the next financial system meltdown. Be advised that there exists the risk that one’s margined brokerage account will be swept-up into litigation in the event of a financial market collapse.
Inasmuch as the world has pivoted from liberalism’s risk-on age of investment choice to authoritarianism’s risk-off age of diktat, risk aversion will drive investors out of traditional safe haven investments, such as savings accounts into gold, the classic refuge from monetary risk and political risk. The age of the investment demand for gold commenced in July 2013, as is seen in the chart of the gold ETF, GLD, trading higher. I recommend that one start to dollar cost average an investment in, and take possession of, gold and silver bullion.
Open Europe in their for fee newsletter, which I recommend that one purchase, reports Lord Jones: If we can’t change the EU, we must leave. Lord Jones, the former director-general of the CBI writes in Times … Times: Jones … Telegraph: Cameron “Staying in a reformed Europe has to be the right course, but should we stay in the current mess? Frankly, our nation just can’t afford to, if we are to provide our grandchildren with a globally competitive economy.” Meanwhile, the House of Commons is due to vote on the next stage a Bill legislating for a referendum on British membership of the EU by 2017. Conservatives are expected to back James Wharton MPs’ Private Member’s Bill with between 5 and 20 rebels, who want an immediate referendum
And Open Europe also relates Euractiv … EUobserver reports German MEP Martin Schulz has been nominated as “candidate designate” for President of the European Commission by 19 out of 28 parties in the Party of European Socialists (PES).
On Thursday, November 7, 2013, The seesaw destruction of fiat money that commenced October 23, 2013, accelerated as the Euro, FXE, and European Debt, EU, plummeted, forcing Eurozone Stock, EZU, European Financials, EUFN, and Base Metals, DBB, Gold, GLD, and Commodities, DBC, lower, after Reuters reported ECB Unexpectedly Announced Cuts In Interest Rates; the fall of these forced the Interest Rate on the US Ten Year Note, ^TNX, down to 2.61%, which caused Aggregate Credit, AGG, to weakly rise.
This sawing asunder of fiat money is seen in both the world’s largest equity ETF, VTI, and the world’s largest credit ETF, BOND, now both falling lower in value.
Of note equities of all types are no longer able to leverage higher over credit, as the twin spigots of liberalism’s leveraged speculative investment, these being the debt trade, seen in Junk Bonds, JNK, and currency carry trades, seen in the EUR/JPY, both trading lower in value. Investors are no longer interested in convertible securities, as is seen in Barclays Convertible Securities, CWB, trading parabolically lower; the age of financialization of stocks, and the securitization of debt is over, through, finished and done.
With US Stocks are no longer leveraging higher over US Ten Year US Treasury Bonds, VTI:TLT, and Eurozone Stocks are no longer leveraging higher over EU Credit, EZU:EU, the sovereignty of democratic nation states, EFA, and their banker driven, IXG, seigniorage is history.
The era of liberalism, and its monetary policies of investment choice, has failed on the liberalization of credit. QEs whether they be by the US Fed, the ECB, the BoJ, or the PBOC, not only do not work, they are now turning money good investments bad. And as a result, economic conditions, in particular economic growth can no longer be stimulated by liberal monetary policies of the world central banks. Now, economic deflation will surely accelerate and Monty Pelerin of Economic Noise warns Another Step Closer To Economic Armageddon.
World Stocks, VT, -1.4%, Nation Investment, EFA, -1.6%, and Global Financials, IXG, -1.4, with Asset Managers, such as Blackrock, BLK, seen in this Finviz Screener, -2.6%, India Earnings, EPI, -3.2%, Chinese Financials, CHIX, -1.7%, Brazil Financials, BRAF, -1.4%, and European Financials, EUFN, -1.4%.
The BRICS, EEB, -2.0, with Brazil, EWZ, -2.6, Russia, RSX, -1.4, India, INP, -2.1, and China, YAO, -1.6. And the Emerging Markets, EEM, -1.8, with Philippines, EPHE, -3.2, Argentina, ARGT, -2.9, Poland, EPOL, -2.9, Egypt, -2.7, South Africa, EZA, -2.2, New Zealand, ENZL, -2.0, Thailand, THD, -1.9, Indonesia, -1.7.
Norway, NORW, -2.9, Nikkei, NKY, -2.4, The UK, EWU, -2.0, US Small Caps, IWM, -1.7, Sweden, EWD, -1.7.
Benson te writes ECB Cuts Interest Rates While it may be true that general bank lending has been falling, in breaking down the details we find the Eurozone’s banking system credit to the government has exploded even as credit to the private sector has weakened. In short, government borrowing has taken the slack from the private sector. The complex maneuvering by the troika, the ECB, the banking system and the government to keep rates low has resulted to a massive expansion of debt. The Eurozone’s debt as % to the GDP has been skyrocketing.
I remark that today November 7, 2013, the benefit of all that credit burst, as Eurozone Stocks, EZU, fell 1.7%, and Italy, EWI, fell 3.7%, Spain, EWP, 2.8%, Netherlands, EWN, 1.8%. This suggests to me that the late June 2013 through October 23, 2013, rally in Eurozone Stocks is over.
Benson te continues Contra policymakers and the mainstream, the risks of deflation remains a popular bogeyman used to justify the “euthanasia of the rentier” via zero bound rates and QE.
While the Eurozone’s banking system remains clogged or the transmission mechanism broken due to impaired balance sheets, substantial credit growth has been taking place at the bond markets.
And credit growth in the bond markets fired up by ECB and government policies has been redistributing resources or has been benefiting the asset markets (via asset inflation) at the expense of the real economy (revealed by CPI disinflation). The real intent of the ECB’s rate cut has been to keep interest payments low for the rapidly swelling the Eurozone’s government debts since the Eurozone government’s refusal to reform, France should serve as an example. A second unstated goal has been to boost asset markets in order to keep their ‘broken’ banking system afloat.
European politicians, bureaucrats and their mainstream lackeys have been pulling a wool over everyone’s eyes. Has the global financial markets seen ECB’s actions as insufficient? Or has the positive impact on financial markets from credit easing policies reached a tipping point in terms of diminishing returns?
I respond that yes a tipping point has been reached, the world is tipping from liberalism into authoritarianism; where capitalism, European socialism, and Greek socialism, no longer exist as economic systems, but rather regionalism exists as the sole economic system. Regional integration is rising to support regional currencies, and bartering agreements in each of the world’s ten regions, as undollar transactions rise to be the norm. The Caixin Online report, Canadian Province Issues Offshore Yuan Denominated Bonds, supports the concept that regional sovereignty and seigniorage is rising to provide regional security, stability, and sustainability, replacing democratic nation state rule and wall street banker seigniorage.
The S&P 500, SPY, manifested 1.3% parabolica fall lower to close at 1747.
Sectors trading lower included
Solar Energy, TAN, -5.1%
Social Media, SOCL, -3.5 … with FB, LNKD, ZNGA, GRPN, P, RENN, lower
Spin Offs, CSD, -3.0 … with FENG, LMOS, XLS, TAXI, SXC, FBHS, AMCX, MSG, lower
Nasdaq Internet, PNQI, -2.8 … with RAX, VRSN, SFLY, CCOI, BIDU, TRIP, YHOO, AOL, lower
Copper Miners, COPX, -2.8 … with FCX, SCCO, lower
Metal Manufacturing, XME, -2.7 … GSM, PKOH, WOR, PCP, MLI, CRS, BOOM, RS, SCHN, STLD
Industrial Miners, PICK, -2.5 … with RIO, VALE, BHP, lower
Food and Beverage, PBJ, -2.5
Resorts and Casinos, BJK, -2.5 … with IGT, MCRI, SGMS, MPEL, BYI, BYD, CZR, MGAM, PENN,
Media, PBS, -2.4 … with SBGI, SNI, CBS, CMLS, NYT, AHC, GCI, MEG, ROAI, lower
Semiconductors, XSD, -2.3 … with PLAB, DSPG, NXPI, lower
Design Build, FLM, -2.3 … with JEC, FLR, FRM, URS, TTEK, lower
IPOs, FPX, -2.3 … with Z, TRLA, VNET, YNDX, GOGO, lower
Steel, SLX, -2.3 … with TS, SID, GGB, SSLT, PKX, NUE, lower
Internet Retail, FDN, -2.2 … with AMZN, PCLN, lower
Small Cap Industrial, PSCI, -2.1 … BEAV, B, DXPE, ROLL, MWA, TTC, LECO, HEES, lower
Consumer Services, IYC, -2.0 … with TWX, DIS, STRZA, FOXA, NFLX, AMCX, DISCA, DISH, DTV, TIVO, TWC, VIAB, lower
Small Cap Consumer Staples, PSCC, -1.9 … with AGRO, BDBD, CQB, lower
Global Consumer Discretionary, RXI, -1.8 … with TWX, DIS, STRZA, FOXA, NFLX, AMCX , DISCA, DISH, DTV, TIVO, TWC, VIAB, lower
Paper Producers, WOOD, -1.7
Biotechnology, IBB, -1.7 … with REGN, AMGN, BIIB, GILD, ALXN, ILMN, lower
Transportation, XTN, -1.7.
Global Industrial Producers, FXR, -1.7 … with ETN, FLS, ITW, GWW, PLL, ITT, CFX, lower.
Yield Bearing Sectors trading lower included
DBU, -2.2 % with HNP, EBR, ELP, CIG, lower
IST, -1.9% with TI-A, VOD, ORAN, lower
PSP, -1.7% with DLPH, MRO, LUK, lower
Energy Production, XOP, -2.8% and Small Cap Energy, PSCE, -2.5%.
Aggregate Credit, AGG, closed weakly higher.
The chart of the US Dollar, $USD, UUP, manifested a strong rise to close at 80.92. The Euro, FXE, closed sharply lower at 132.74; and the Japanese Yen, FXY, closed higher at 99.73, propelling the master currency carry trade, that is the EURJPY sharply lower, taking Commodities, DBC, lower.
Currencies traded lower as follows: Australian Dollar, FXA, -0.9%, Euro, FXE, – 0.8%, Swedish Krona, FXS, -0.7%, Swiss Franc, FXF, -0.5%, and Emerging Market Currencies, CEW, -0.4%, such as the Brazilian Real, BZF, -0.9%, and the Indian Rupe, ICN, -0.3%.
Business Week reports Super Typhoon Haiyan Hits The Philippines. Super Typhoon Haiyan, the equivalent of a Category 5 hurricane, slammed into the Philippines today after forcing thousands of people to evacuate. Haiyan had top winds of almost 196 miles (315 kilometers) per hour when it was about 489 miles southeast of Manila, the US Navy’s Joint Typhoon Warning Center said at 2 p.m. East Coast time. Winds gusted to as high as 235 mph, the Navy said. About 125,600 people in 22 provinces have been evacuated, the nation’s disaster monitoring agency said in a 6 a.m. bulletin. “If it maintains its strength, there has never been a storm this strong making landfall anywhere in the world,” said Jeff Masters, founder of Weather Underground in Ann Arbor, Michigan. “This is off the charts.”
Killer storms and their related social issues have been expected and should serve as a spiritual wake-up call as Jesus Christ warned, “There will be famines, pestilences, and earthquakes in various places; all these are the beginning of sorrows”, Matthew 24:7-8. And The Apostle John wrote of end time events relating, When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. 6 And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.” Revelation 6:5-6.
Tyler Durden reports Typhoon Death Count Surpasses 10,000; People “Walk Like Zombies Looking For Food; Martial Law Imminent With over 10,000 dead in the Philippines, here is a selection of what the survivors in the aftermath of the tragic hurricane saw: “The devastation is so big.”… “I don’t know how to describe what I saw. It’s horrific.”…”People are walking like zombies looking for food,” said Jenny Chu, a medical student in Leyte. “It’s like a movie.”…”It’s like the end of the world.”
On Friday, November 8, 2013, The Interest Rate on the US Ten Year Note, ^TNX, exploded higher to 2.75%, and the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened dramatically, as is seen in the Steepner ETF, STPP, steepening,sending Aggregate Credit, AGG, plummeting.
The Emerging Market Financials, EMFN, tumbled as India’s Banks, IBN, and HDB, and as Brazil’s Banks, ITUB, BBD, BBDO, BSBR, and as Peru’s Banks, BAP, and as Chile’s Banks, BCH, BCA, all tumbled lower on the higher Interest Rate on the US Ten Year Note, ^TNX, and as debt deflation struck Emerging Market Currencies, CEW, and as Emerging Market Bonds, EMB, causing Emerging Market Infrastructure, EMIF, China Infrastructure, CHXX, and Emerging Market Mining EMMT, as well as China Minerals, CHIM, to sell off. India, INP, Brazil, EWZ, Turkey, TUR, Peru, EPU, Chile, ECH, Philippines, EPHE, Argentina, ARGT, Mexico, EWW, and Russia, RSX, traded lower.
Homebuilders, ITB, -1.5%, Mortgage REITS, REM, -1.9%, US Real Estate, IYR, -1.3%, Small Cap Real Estate, ROOF, -1,.2%, Industrial Office REITS, FNIO, -1.5%, traded lower, on the higher Interest Rate on the US Ten Year Note, ^TNX, which closed at 2.75%.
The Bear Market that commenced October 23, 2013, is still in place as World Stock, VT, Nation Investment, EFA, and Global Financials, IXG, although trading higher, are still well below their late June 2013 through late October 2013 rally highs.
The leveraged speculative investment community, took the US Financial Institutions to a new rally high. Regional Banks, KRE, 3.9%, Stock Brokers, IAI, 3.0%, The Too Big To Fail Banks, RWW, 2.6%, Invesment Bankers, KCE, 2.6%, Asset Managers, such as Blackrock, BLK, seen in this Finviz Screener, 2.6%,
Yet, Mike Mish Shedlock writes Establishment Survey Were it not for people dropping out of the labor force, the unemployment rate would be over 9%. In addition, there are 8,050,000 workers who are working part-time but want full-time work. Digging under the surface, much of the drop in the unemployment rate over the past two years is nothing but a statistical mirage coupled with a massive increase in part-time jobs starting in October 2012 as a result of Obamacare legislation. Of note, Zero Hedge reports Obamacare’s Biggest Failure So Far: Just 18% Of Uninsured Have Expressed An Interest In Enrolling.
And My Budget 360 writes Those Not In The Labor Force Surged By Nearly 1,000,000. A large portion of added jobs were in low wage sectors.
Sectors trading higher included
Solar Energy, TAN 4.5%
Pharmaceuticals, PJP 3.8, a new rally high
Biotechnology, IBB 3.2
Small Cap Pure Growth, RZG 2.5
Media, PBS 2.3
Internet Retail, FDN 1.9
Small Cap Pure Growth, RZV 1.8
Nasdaq Internet, PNQI 1.8
Spin Offs, CSD 1.8
Small Cap Industrial, PSCI 1.7
Transportation, XTN 1.7
Global Industrial Producers, FXR 1.5
Retail, XRT 1.4
Design Build, FLM 1.4
Aerospace, PPA 1.4
Consumer Services, IYC 1.4
Semiconductors, XSD 1.4
US Small Cap Stocks, IWM, 1.8%
The S&P 500, SPY, rose 1.4%, recovering all of yesterday’s losses.
Energy Production, XOP, +2.5%, and Small Cap Energy, PSCE, +2.7%. And Gold Miners, GDX, +0.5%, on lower Gold, GLD, -1.5%. And Silver Miners, SIL, -0.3%, Silver Standard Resources Inc, SSRI +4.0%, on lower, Silver, SLV, -0.7%.
Prashant Gopal of Bloomberg reports Home Prices Climb In 88% Of US Cities. Most regions of the country are experiencing strong home-price appreciation off a low base,” Neil Dutta, head of US economics at Renaissance Macro Research LLC in New York, said yesterday in a telephone interview. “Cities with the biggest price appreciation are in places that had bigger busts.” Price gains are at unsustainable levels, with cities such as San Francisco and San Jose, California, approaching records, Fitch Ratings said today in a report. Much of coastal California is more than 20 percent overvalued. .
The areas with the biggest declines were all in Illinois, led by Peoria, where prices fell 13.9 percent from a year earlier. Following were Kankakee, with a 9.9 percent drop, and Rockford, with an 8.4 percent decrease. San Jose was the most expensive market in the third quarter, with a median home price of $805,000, the Realtors said. Following were San Francisco, at $705,000, and Honolulu, at $679,800. The most affordable areas were Toledo, Ohio, with a median price of $87,500; Rockford, at $88,900; and Decatur, Illinois, at $91,000.
A summary of this week’s financial market trading
World Stocks, VT -0.9%
Nation Investment, EFA -0.5
Global Financials, IXG +0.1
The chart of the S&P 500, $SPX, seen in Safehaven.com TheWaveTrading Weekly Technical Analysis Saturday November 9, 2013, manifested a 0.6% weekly rise to a new all time high at 1770, as the chart of the Finanical Sector, XLF, has already achieved its high at 21, and is now falling sharply lower; this suggests to me that the $SPX has finally achieved its all time high.
The Weekly Finviz Chart of the S&P 500, SPY, shows its rise beginning in August 2011, with an Elliott Wave 1 Up, on September, 12, 2011, at 116; and an Elliott Wave 2 Down on September 19, 2011, at 108; from which it began its Elliott Wave 3 Up rise to achieve its Elliott Wave 5 High on November 8, 2013, at 177.
George Krum writes in Safehaven The State of the Trend Saturday Nov 9, 2013. QE3 kicked off in November ’12, and its first leg lasted until Bernanke decided to conduct a little experiment by mentioning taper in the Summer of ’13. The second leg of the QE3 rally began at the end of June ’13, when taper was dismissed as just crazy talk. So far the second leg of the rally is matching the trend and magnitude of the first leg pretty closely. There is another commonality, though. Now, just like in May ’13, the SPX is trading at the upper channel line defining the whole ’09 – ’13 rally. So the question at this juncture becomes whether the SPX will break above that channel, and continue on the trajectory started in November ’12, or will taper concerns, once again, derail the continuation of the rally and keep it confined within the broader channel lines.
The following large cap value and large cap growth stocks have been leading the S&P 500, SPY, higher.
Consumer Discretionary, DISH, DTV, AMZN, CMCSA, GOOG, TWC, TWX, PCLN
Transportation, DAL, LCC, FDX, KSU, ODFL
Food Retail, KR
Life Insurance GNW,
Research Services, ELN
Communications Services, VZ
Credit Provider, MA
Real Estate, BX
Office Supplies Retailer, ODP
Design Build, FLR, JEC,
Chemicals, DD, PPG
Pharmaceuticals, BMY, PFE,
Consumer Staples, CL, KMB, ECL
Aerospace, BA, RTN, LMT, NOC,
Energy Service HAL,
Industrial Textiles, MHK,
Medical Devices, COV,
Industrial Machinery Manufacturers, ROK, ITW,
Steel Manufacturer, MT
Research Services, ELN
Iron Ore Miner, BHP
Communications Equipment Manufacturer, PHG
Energy Producer, APC
Business Services, ADS, SNX
US Stocks, VTI +0.4
Eurozone, EZU -0.7
Asia Excluding Japan, EPP -0.4
Nikkei, NKY -0.5
Emerging Markets, EEM -3.1 for the week; and -3.5 for the month
Global Financials, IXG +0.1%
European Financials, EUFN -2.0
Chinese Financials, CHIX, -3.1
Emerging Market Financials, EMFN -5.0
Regional Banks, KRE +3.8
Stockbrokers, IAI, +2.6
Too Big To Fail Banks, RWW +1.8
Aggregate Credit, AGG -0.6%
This week nations trading lower included the following; note how they almost all are emerging market nations, EEM. Nation Investment, EFA, has turned lower on the periphery on debt deflation as the Interest Rate on the US Ten Year Note has induced debt deflation in Emerging Market Bonds, EMB, enabling competitive currency deflation in Emerging Market Currencies, CEW, such as the Indian Rupe, ICN, and the Brazilian Real, BZF, causing derisking out of nation banks
Brazil, EWZ, -5.2%, Banks BBD, BBDO, ITUB, BSBR, are sharply lower,
India, INP, -5.0, Banks, HDB, IBN, are lower
Mexico, EWW -4.2
Turkey, TUR -4.0
Peru, EPU -4.0, Bank BAP is sharply lower
Philippines, EPHE -3.2
South Africa, EWY, -2.8, Banks, WF, KB, SHG, are lower
Chile, ECH, -2.8, Banks BCH, and BCA are lower
Argentina, ARGT, -2.6, Banks BFR, BMA, GGAL, BBBA, are sharply lower.
South Africa, EZA -2.5
Thailand, THD, -2.3
China, YAO -2.3, Chinese Financials, CHIX, are lower
Russia, RSX, -2.4
This week sectors trading lower included
Social Media, SOCL -3.2%
Automobiles, CARZ -2.2 such as DLPH, LKQ, GM, and VC,
Resorts and Casinos, BJK -1.8
Nasdaq Internet, PNQI -1.5
Paper Producers, WOOD -1.5 such as LPX, WY, IP and NP
This week yield bearing sectors trading lower included; the real estate REITS, RWR, did not participate in the late June 2013 through October 2013 rally because they were heavily burdened by the Interest Rate on the US Ten Year Note; but Global Utilities, DBU, had no such restriction and enjoyed both the global debt trade and global currency carry trade investment.
Industrial Office REITS, FNIO -5.1%
Residential REITS, REZ -4.5;
Mortgage REITS, REM -4.0
Real Estate, IYR -3.9
Small Cap Real Estate, ROOF, -3.5
Global Utilities, DBU -2.1
Many of the Washington DC beltway elite, that is the Federal Government employees, lobbyists, consultants, and media commentators, live in Falls Church, VA, 22046. Wikipedia relates that In 2011, Falls Church was named the richest county in the United States with median annual household income of $113,313. While Fortune 500 companies Computer Sciences Corporation, General Dynamics, and Northrop Grumman have headquarters addressed in Falls Church, they are physically in Fairfax County.
Only the affluent can afford to live in Falls Church as houses list for $699,0000, such as the 3 Bedroom and 2 Bath houses available on Redfin … 501 Great Falls St … and 524 Greenwich St
Quick facts from the Census Bureau for Falls Church VA relates only 3.9% of persons live below the poverty level in Falls Church, VA, and 10.7% overall in Virginia.
Falls Church is Super Zip, a term coined by American Enterprise Institute scholar and author Charles Murray to describe the country’s most prosperous, highly educated demographic clusters.
The Connecticut Gold Coast is a bastion of financial wealth; the wealthiest include Darien, or Greenwich or New Canaan, depending on which statistic you use. The Higley 1000, reports on The Gold Coast of Long Island. Long Island has 53 Higley 1000 neighborhoods that I have divided into four distinct geographic clusters.
2) … The very nature of credit, currencies, money, and economic systems changed the week ending November 8, 2013, as the Eurozone emerged as a regional bloc having common credit foundation in the monetary policy and banking seigniorage of ECB Chairman Mario Draghi.
Through the word, will, and way of Mario Draghi, all those living in the EU now have a common credit experience. His assurance of Eurozone credit liquidity mandated an EU debt union.
Through Mario Draghi’s assurance of credit liqudity, he monetized all debt within the EU, and single handedly crafted a region, having not only a common currency experience, but also a common credit experience. Through the assurance of credit liquidity, he effected regioncraft and laid the foundation of trust for More Europe, that is the foundation for unified economic governance which will consist of nannycrats overseeing the factors of production, commerce and trade via statist public private partnerships.
All those living in the EU now have economic identity, experience and monetary life, in the seigniorage, that is the moneyness, of Mario Draghi. He is rightly titled the confidence man, running as Robert Wenzel posts in Economic Policy Journal The Ship Of Confidence In The Eurozone.
Seigniorage no longer comes through the traditional credit marketplace. Now, through mandate, that is through diktat, Mario Draghi has become the EU’s Seignoir, that is the top dog banker who mints money, and takes a cut. He single handedly created diktat money replacing traditional fiat money, terminating the age of liberalism and introducing the age of authoritarianism in Europe.
Under liberalism, Mario Draghi, provided ECB monetary policies supporting investment choice via schemes of credit liquidity, specifically LTRO 1, LTRO 2, and OMT. Joseph Salerno of Ludwig Von Mises Institute reports How The Fed Learned To Stop Worrying And Love Easy Money. Now under authoritarianism, the ECB Chairman provides monetary policies of diktat supporting a banking supervision union as well as a debt union.
Just as Milton Friedman was the father of the Free To Choose fiat money system in 1971; Mario Draghi is the father of the diktat money system in 2013. An inquiring mind asks, could Mario Draghi be the great high monetary priest presented in Revelation 13:11-18.
I believe that Money Market Funds, MMF, being bond based cannot stand the strain of rising interest rates and will break the buck, meaning that they will not retain their constant one dollar value, and investors will panic and attempt to run for the doors, which may be closed through capital controls, resulting in great financial loss. Furthermore, Alasdair Macleod writes in Gold Money. There’s A Liquidity Crunch Developing. I agree and relate that a Financial Apocalypse, that is a global credit bust and financial system breakdown, is imminent; and is foretold by John The Revelator in Revelation 13:3-4; it’s origin is in the credit excess of the world central banks monetary policies of credit easing and Global ZIRP.
Bible prophecy of Revelation 5-10, reveals that there is waiting in Europe’s wings, the Sovereign, who will rise to political power to complement the Seignior’s monetary power, through his adept knowledge of regional framework agreements, which will be created by national leaders who meet in summits and workgroups to renounce national sovereignty and announce regional pooled sovereignty for regional security, stability and sustainability.
All those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The periphery nations, that is the PIIGS, will exist as hollow moons revolving around planet Belgium and planet Germany. The Portugese, Irish, Italians, Greeks and Spaniards, can be neither Belgians nor Germans, yet all will be one, living in a gulag of austerity and debt servitude existing under the fiscal sovereignty of regional technocrats. Spiegel reports World From Berlin: A Last Warning Shot For Southern Europe.
3) … In the age of authoritarianism, dikat and the physical possession of gold bullion will be the two forms of sovereign wealth.
On Monday, October 14, 2013, the Gold ETF, GLD, entered an Elliott Wave 3 of 3 Up, at a price of 122.83; these are the most expansive of all economic waves; they create the bulk of the wealth, as they increase, going up to peak at an Elliott Wave 5 High. The beginning of the great rise in the price of Spot Gold, that is $GOLD, started at $1260, with first price objective of 1,570, seen in Brian Bloom of BeyondNeanderthal chart article Extraordinary Dangerous Equity Markets. Of note, Jack Chan in October 26, 2013, Safehaven article This Past Week in Gold, gave his Buy Signal to the Gold ETF. And then in November 9, 2013, Safehaven article This Past Week In Gold, gave his Sell Signal.
On Monday, October 14, 2013, Jason Cozen wrote Gold Price Opens Up The Week Higher. You can see that sell-order hit the tape just after 13:00, taking the price as low as $1260. However today Gold has taken back all those losses.
The chart of Gold, $GOLD, showed closed lower due to the surge in the Too Big To Fail Banks, at 1,290 on November 8, 2013, with strong support at its October 14, 2013 breakout price of 1,260.
4) … Strange ideologies arise at the end of one age and the beginning of another, as Mike Mish Shedlock writes Prime Minister Abe Calls For Wage Price Spiral To Create “Virtuous Circle”, and as he writes Czech Republic Enters Currency Debasement Club.
5) … News events reflect the fulfillment of bible prophecy as well as two soon coming middle east conflagrations.
Duane and Shelly Muir of Sign Posts Of The Times relate two end time prophecy signs. First, the division of the Temple Mount Groundbreaking Law to Facilitate Jewish Prayer on Temple Mount. and second, Staking A Jewish Claim To The Temple Mount.
News events are lining up for a Isaiah 17 War in Syria and a Ezekiel 38 war in the Middle East as . WND reports Israel Must Make Fateful Decision On Iran Strike, Bolton Says … and Duane and Shelly Muir of Sign Posts Of The Times report Geneva fallout: Iran becomes a nuclear power, followed by Saudis. Israel loses trust in Obama … and Jason Ditz of Antiwar reports Cleared of Corruption Charges, New FM Lieberman Eyes Role of PM and Jason Ditz continues French Sabotaged Iran Pact for Arms Deal and Times of Israel reports Israel Will Attack if You Sign the Deal, French MP Told Fabius and Iran Nuclear Deal in Danger of Unravelling and Jason Ditz of reports Netanyahu Vows Action Against Iran Diplomacy and continues Major Split Between US and Israel on Iran and Reuters reports Israel’s Netanyahu Pleased No Iran Deal Reached and CS Monitor reports Failure to Reach Iran Nuclear Deal May Fortify Hardline Opponent and The Guardian reports Iranians Angry and Bewildered After French Torpedo Nuclear Entente and Haaretz reports Netanyahu Urges Jews: Rally Behind Me Against Iran Deal.
Elaine Meinel Supkis writes on Zionist Media Power US/Saudi/Israeli attacks using puppets like Saddam have been relentless for decades and won’t stop now, it is amping up. When Congress stabbed the negotiations in the back in a blatant power play by AIPAC, no US media organization analyzed this or talked about AIPAC which flies under the radar nearly totally thanks to the ‘invisibility cloak’ given to them by the US media owners many of whom are Jewish Zionists.
The ‘con game’ is the business of hiding who is pulling the strings here: Netanyahu and his gang operating via a few dozen very rich Jews and the entire Saudi royal family. This toxic alliance of the super rich and powerful means the people of Iran, the core of the Shi’ite power base, will be strangled as much as possible forever until they collapse into chaos like so many other rivals of Saudi/Israeli power.
Back to France, the Jews and Saudis decided France should scuttle the talks in Paris because the Jewish power base there isn’t as notable as in the US. So it could fly under the radar which is why the Iranians were shocked when hit by France out of the blue at midnight. The previous President of France was Nicolas Sarkozy, Wikipedia relates, whose father was Jewish but he converted to Catholic. What Francois Hollande Means for French Jews, Jewish & Israel News Algemeiner.com relates.
The very first person killed by the Saudis on 9/11 was a top Mossad plane hijacking agent who just so happened to sit right next to the hijackers and whose throat was suddenly slit by the attackers that day. To this day, the ‘coincidence’ of all this is carefully hidden from view with the great assistance of the DARPA push to delude everyone into the ‘bombs in the buildings’ scam.
I have pointed out this ‘coincidence’ since November of 2001. And it is steadily ignored for obvious reasons. Even the ‘dancing Israelis’ in New Jersey get more attention from ‘truthers’ than this very salient event. Blindness to the dark side of espionage is typical as we see with the Kennedy assassination, successfully derailed by the fake ‘second assassin’ tale. Untangling the many threads that run in the dark is very difficult especially if one is easily distracted by spectacular tales of derring do that are unlikely or even silly.
And Mossad, the CIA and others know this very well which is why they participate in spreading lies. They need the cover of these lies especially if the truth begins to emerge from the dark murk. And I lost a LOT of readers over the years because I refuse to fall for these stories.
The Iranians thought they were having real negotiations not believing that the forces aimed at destroying them are going to give up. Even as the entire planet knows that Israel has secret bombs and chemical weapons and that the Saudis have or want the same and that the US has used both chemical weapons and nuclear bombs on civilians in the past, most recently chemical weapons in Iraq, the farce that Iran is the problem will continue so long as the US/Saudi/Israeli empire rules the Middle East with an iron fist.
I relate accompanying the rise of the Beast Regime as foretold in Revelation 13:1-4, which is replacing the Milton Friedman Free to Choose Banker Regime, that commenced beginning with the Greek Bailout I in May 2010, and intensified with the rise of the Interest Rate on The US Ten Year Note, ^TNX, to 2.1% in May 2013, that there will soon be a war in Syria as foretold in Isaiah, 17, resulting in the total and absolute destruction of Damascus, and a third world war, foretold in Ezekiel 38.
Illuminati Prophet Albert Pike had Luciferian insight that there would be three world wars. D. Robert Singer writes the article The Modern State of Israel: Providence, Miracle, or What Really Happened. In 1871 Albert Pike founder of one of the Rothschild secret societies, Order of Perfectibilists, received a vision, which he described in a letter dated August 15, 1871 that graphically outlined plans for three world wars that were seen as necessary to bring about the One World Order.
ThreeWorldWars.com writes The Third World War must be fomented by taking advantage of the differences caused by the “agentur” of the “Illuminati” between the political Zionists and the leaders of Islamic World. The war must be conducted in such a way that Islam (the Moslem Arabic World) and political Zionism (the State of Israel) mutually destroy each other. Meanwhile the other nations, once more divided on this issue will be constrained to fight to the point of complete physical, moral, spiritual and economical exhaustion…We shall unleash the Nihilists and the atheists, and we shall provoke a formidable social cataclysm … Then everywhere, the citizens, obliged to defend themselves against the world minority of revolutionaries, will exterminate those destroyers of civilization, and the multitude, disillusioned with Christianity, whose deistic spirits will from that moment be without compass or direction, anxious for an ideal, but without knowing where to render its adoration, will receive the true light through the universal manifestation of the pure doctrine of Lucifer, brought finally out in the public view.  [Cmdr. William Guy Carr: Quoted in Satan: Prince of This World, Albert Pike received a vision, which he described in a letter that he wrote to Mazzini, dated August 15, 1871.
Bible Prophecy foretells there will soon be a war in Syria as foretold in Isaiah, 17, resulting in the total and absolute destruction of Damascus, and that following this there will be a third world war as foretold in Ezekiel 38, which will be the basis for the rise of power of Europe’s Sovereign, Revelation 13:5-10, and Europe’s Seignior, Revelation 13:11-18, as they establish their joint global regime in Jerusalem, through promotion of a middle east peace plan, Daniel 9:25.