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Seigniorage Continues To Break Down As China Buys Spanish Debt And Aids Spanish B

Financial Market Report For April 12, 2011

1) … The seigniorage of neoliberalism continue to fail today6 , as the precious metal mining stocks, GDX, and the small cap pure value stocks, RZV, lead the world stocks lower, ACWI, lower yet again.  

Gold mining stocks, GDX,  relative to the 30 year US Treasuries, EDV, always falls lower at market turns. $HUI:$USB as the risk trade based upon expanding seigniorage failed.

Distressed securities traded by Fidelity Mutual Fund FAGIX turned lower indicating that the seigniorage of quantitative easing has failed.  A new moneyness is coming … out of a global economic collapse a Seignior, a Global Banker, will arise to provide moneyness.

World stocks relative to world government bonds turned lower suggesting that the seigniorage of the world central banks has failed. VT:BWX



The ratio of US Stocks relative to the 10 Year US Government Note has turned lower suggesting that the seigniorage of the US Federal Reserve has failed. VTI:TLT


The Euro, FXE, rose and the US Dollar, $USD, fell lower as Bloomberg reports China will invest in Spanish debt, savings banks.  However carry trades fell lower as the Yen, FXY, and Swiss Franc rose,

World currencies, DBV, and Emerging Market Currencies, CEW, fell lower confirming the loss of seigniorage and establishing an entrance into Kondratieff Winter.  Commodity currencies, CCX, turning commodities, DJP, lower.


2) Stocks leading the way lower included
Technology: Computer Peripheral: Universal Display, PANL, -8.4%
Metal Manufacturing and Energy Service: Precision Drilling Corp,  PDS, -8.4
Basic Materials: Small Cap Energy: Clayton Williams Energy, CWEI, -7.0
Basic Materials: Small Energy Service: ION Geophysical. IO, -6.5
Morgan Stanley Cyclical Index: Basic Materials Component: Alcoa Aluminum, AA, -6.0
Consumer Goods: Clean Technology: Batteries Exide Technologies, XIDE, -5.3
Networking: Aruba Networks, ARUN, -5.1
Basic Materials: Global Industrial Metals: Horsehead Holding,  ZINC, -5.0
Consumer Goods: Tableware products: Libbey,  LBY, -4.9
Metal Manufacturing: Circor, CIR, -4.7
Technology: Active Power, ACPW, -4.8
Industrial: General Building Materials: Fastneal, FAST, -4.3
Basic Materials: Steel Industry: Recycler Metalico,  MEA, -4.2
Basic Materials: Natural Gas: Chesapeake Energy, CHK, -4.2
Basic Materials: Steel Industry: Insteel Industries. IIIN, -4.0
Basic Materials: Energy Services: National Oilwell Varco, NOV, -3.7
Basic Materials: Coal: Alpha Natural Resources, ANR, -3.7
Semiconductors: NetLogic Microsystems, NETL, -3.6
Industrial MRO Services: DXP Enterprises, DXPE, -3.4
Consumer Discretionary: Rental Centers: RSC Holdings,  RRR, -3.3
Industrial: Design And Build: KBR Inc,  KBR, -3.3
Consumer Discretionary: Select Comfort Corporation, : SCSC, -3.1
Deflationary: Timber Products: Deltic Timber, DEL, -3.1
Technology: Computer Peripherals: Kemet, KEM, -3.2%
Internet: Internet Software: Internet Capital Group,  ICGE, -3.0