Financial Market Report For April 13, 2011
1) ETFs falling lower today included
KRE -1.4 and RWW, -0.9 on the Associated Press news that the US Government orders 14 lenders to reimburse homeowners as Irvine Renter relates Nevada foreclosure sales rise sharply in March.
2) Commodities falling lower today included Base Metals, DBB, -1.4
3) Many stocks such as the Russell 2000, IWM, manifested black filled candlesticks and rose a small amount on the fall lower in bank shares.
4) The Ludwig von Mises Institute, editorializes that the monetary expansion must stop. I am a peoples economist, not an Austrian economist and I relate:
The seigniorage of the world’s central banks has clearly failed in that the value of stocks relative to world government bonds, VT:BWX, has turned lower.
World stocks, ACWI, are floundering because of the lack seigniorage provided by the US Federal Reserve, which came from the quantative easing of distressed securities and US Treasuries, as well as seigniorage of QE2, which came from the printing of money out of thin by Ben Bernanke.
The great developments in manufacturing, energy production, technology, medical technology and overall growth was underwritten by the securitization of investments and the expansion of credit that came by the liberal policies of the Free to Choose Milton neoliberal economic and political regime. But neoliberalism failed on March 22, 2011, and then again April 11, 2011 as evidenced by world stocks turning lower.
Monetary policy has become something quite grotesque and has especially awarded asute investors in resource development and biotechnology companies such as Silver Standard Resource Development, SSRI, Hercules Offshore, HERO, Universal Display, PANL, Clayton Williams Energy, CWEI, and Cyton Therapeutics, CYTX, just to name a few.
The world is transitioning from … an age of leverage, credit expansion, moneyness and neoliberalism … and into … an age of deleveraging, debt deflation, failure of seigniorage and the rise of sovereign authority.
Out of soon coming sovereign debt failure, either by a run on banks, European Financial Institutions
or failed European or US Treasury Auctions, an economic flameout is coming, yes Götterdämmerung Could Happen At Any Time.
And out of that, a German led Europe and nine other regions of global economic global economic governance will rise, to fulfill the call of world government made by the Club of Rome in 1974. These regions will be led by a world Chancellor, the Sovereign, and a world banker, the Seignior; the former will provide strong rule, and the latter, will be a prophet presenting a unifying vision for mankind. The Sovereign will be one like Herman Van Rompuy and the Seignior, one like George Soros or a Tony Blair.
A one world government will be complemented by a global federal reserve; specifically unified regulation of banking globally, as called for by Timothy Geithner and reported by James Politi and Gillian Tett in the Financial Times.
I wrote recently Seigniorage Is Based On Credit .. Seigniorage Is Based On Trust. The people of the world will come to trust in the Seignior, as he will provide a new moneyness.
5) .. Charts for one’s consideration.
Distressed Securities, FAGIX turned lower April 8, 2011
10 Year US Government Bonds, TLT turned lower March 18, 2011
Junk Bonds, JNK turned lower April 8, 2011
World Stocks Relative to World Government Bonds VT:BWX turned lower April 6, 2011